Lowe’s looks beyond gardening and grilling to prepare for peak season

Lowe's said it will add more merchandise to its website in addition to typical spring merchandise, such as gardening supplies .

Lowe's said shoppers' spring purchases will continue to be impacted by the Covid pandemic as the peak home decor sales season begins. The retailer said it will cater to consumers' holiday needs in addition to regular merchandise .

The spring platters, from tents to cocktail shakers, are part of the company’s strategy to sell a variety of items consumers might need to maintain, renovate or enjoy their homes, especially as they try to stay afloat. During the holidays, Lowe’s sold bedding , small kitchen appliances and more . The company added fitness equipment, such as spinning bikes, to its website and began testing them on sales floors.

Lowe's website now has more than 2 million different products, more than four times the number in 2018, said Bill Boltz, executive vice president of merchandising .

“We’re not going to get into the grocery market, but we think there’s an opportunity here to do something here and push it a little bit further into where we have a right to play, ” he said in an interview .

Lowe’s is turning its spring event, typically a weekend, into a month-long extravaganza. It will include pandemic-sensitive activities such as garden-away bags that customers can pick up in parking lots.

Rival Home Depot will also expand its spring promotions and tout items that make home cozier and more fun. It is featuring spring-themed DIY ideas and offering virtual and livestreamed workshops on its website.

Lowe's shares have risen 134% over the past year and hit an all-time high of $184.15 on Wednesday. As of Wednesday's close, its market value reached $129.6 billion, but some analysts believe its value will climb further.

Its comparable sales, a key metric that tracks sales at online stores that have been in business for at least one year, rose 26% in its most recent fiscal year from the year before .

However, even Lowe's itself warned that it is unlikely to keep up this pace of growth in the coming quarters. The retailer expects demand for the home improvement industry to fall 5% to 7% on a mixed-adjusted basis, assuming a favorable market. This would mean Lowe's net sales for the year of about $86 billion, down from $89.60 billion in 2020.

Both retailers are in a hot real estate market, and the growth in remote work is working in their favor right now.

As consumers await Covid-19 vaccine appointments or postpone travel and entertainment for months, they will likely continue to clean up their backyards and take on DIY projects, said Zack Fadem, senior equity analyst at Wells Fargo .

Travel has increased, but it's still far from pre -pandemic levels, especially during pandemic times like spring break. The Transportation Security Administration screened more than 1 million people on Tuesday , more than on the same day a year ago but 56% below the number in 2019.

Lowe ’s is betting that enthusiasm for home projects isn’t waning. Retailer leaders point to survey results. Nearly 70% of respondents with children plan to “vacation” at home rather than take a spring break trip, according to a late February survey of 2,000 homeowners commissioned by Lowe’s and conducted by Morning Consult. Of those who completed a home project since March 2020, 89% plan to add more this spring, the survey found.