Lowe's AI Playbook: Practical Wins For Operations Leaders
Lowe's (LOW) is pushing its "Total Home" strategy with AI embedded across the stack - associates, customers and Pro services. In Q2 FY2025, sales hit $24 billion, up 1.1% year over year. Online grew 7.5%, driven by a cleaner digital experience and a Rewards engine that reinforces repeat behavior. For operations, the message is clear: AI is moving from pilot to production where it drives measurable throughput and better decisions.
Inside Lowe's: Where AI Meets Store Ops and Pro Services
Mylow Companion gives store associates a fast way to answer project questions, estimate materials and bridge knowledge gaps across departments. That means fewer handoffs, fewer trips to the aisle and shorter time-to-recommendation. The result: more confident associates and faster service at the point of need.
On the customer side, Mylow guides DIYers and Pros inside the app and site, reducing friction from project scoping to checkout. This aligns with the growth in online and repeat purchases through the Rewards program, translating to higher order frequency and better basket composition.
For Pros, the Foundation Building Materials (FBM) acquisition adds real operational leverage. FBM's AI Blueprint Takeoff, now integrated into Lowe's Pro Desk, automates quantities and measurements from digital plans. Pair that with a 370-branch footprint and the MyFBM app for real-time pricing, order tracking and delivery management, and you get faster planning, fewer misses and better regional coverage in California and the Northeast.
Why It Matters For Operations
- Associate productivity: AI-guided recommendations reduce time per inquiry and cut second trips.
- Order quality: Digital takeoffs improve accuracy on large projects, lowering rework and returns.
- Throughput: Guided buying and improved search raise pick speed and reduce customer wait.
- Repeat behavior: Rewards plus smarter digital flows lift reorder rates and lifetime value.
How HD, FND and WSM Are Competing
Home Depot (HD) is pushing AI into search, reorders and delivery routing. "Ship from best location" improves delivery speed and hit rates for same-day and next-day coverage. In-store, the Order Fulfillment Associate app enables batch picking for multiple orders to boost accuracy and speed.
Floor & Decor (FND) is investing in core systems - new ERP for finance and merchandising - and strengthening digital commerce. Current spend sits at $2.2 million this quarter, with $9 million planned for the year and $35-$40 million earmarked for IT, e-commerce and the store support center in FY2025. The focus: stable operations and clean data as the foundation for future AI gains.
Williams-Sonoma (WSM) is putting AI across customer service, supply chain and back-office automation. An AI service assistant runs across brands to lift resolution rates and lower cost. Their vertically integrated model feeds forecasting, inventory optimization and delivery accuracy, while a proprietary platform automates finance, HR and tech workflows to speed development, improve creative output and support conversion.
Action Plan: What Ops Leaders Can Ship In 90 Days
- Deploy an associate copilot: Start with a narrow set of high-frequency questions (sizing, compatibility, material estimates). Track handle time and escalation rate.
- Pilot guided buying in digital: Add project-based flows and "buy again" for repeat SKUs. Measure search-to-cart conversion and reorder frequency.
- Introduce blueprint takeoff for Pro accounts: Begin with top Pro segments. Tie estimates to inventory availability and delivery windows.
- Optimize fulfillment: Enable batch picking and route orders to the fastest ship-from node. Monitor pick rate, short-ship rate and cycle time.
- Strengthen the core: Clean product data, unify SKU hierarchies and standardize attributes. AI performance depends on data quality.
- Set guardrails: Stand up an AI review routine for accuracy, bias and drift. Use lightweight playbooks for exception handling and human-in-the-loop checks. A helpful reference: NIST AI Risk Management Framework.
Metrics To Watch
- Associate: time-to-answer, first-touch resolution, cross-department assist rate
- Pro: estimate accuracy, change-order rate, on-time delivery, claim rate
- Digital: search-to-cart conversion, "buy again" usage, repeat purchase rate
- Fulfillment: pick rate per labor hour, batching effectiveness, short-ship rate, delivery SLA hit rate
Operating Notes
- Start small, wire in measurement, then expand by SKU class or project type.
- Train associates on how to question the AI, not just accept it. Better prompts, better outputs.
- Make data contracts explicit between product, merchandising and supply chain. No clean data, no lift.
- Keep a human override path visible for customers and associates to maintain trust.
Bottom Line
Lowe's is threading AI through store operations, digital buying and Pro workflows, and it's showing up in growth and productivity. HD, FND and WSM are pushing along the same vector from different angles: routing and picking, ERP fundamentals, and end-to-end automation. For operations leaders, the play is simple - ship focused AI use cases tied to clear KPIs, prove the lift, then scale.
If you're upskilling your team on practical AI for operations, explore curated learning paths by role at Complete AI Training.
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