Lowe's Marketplace Could Be a Competitive Advantage | Fast Five Shorts

Lowe's has integrated its third party Marketplace directly into My Red Vest, the software its store associates use to help customers place orders, letting shoppers buy Marketplace only items like above ground pools and even even Ben decorative geese.

Yes, that was called out in the press release.

And you can get these for home delivery from inside any of its more than 1700 stores.

What's good for the goose is good for the gander at Lowe's A according to Modern retail.

The integration lets associates search Marketplace products alongside Lowe's own inventory and complete the purchase in store with the items shipped to the customer's home.

Lowe's VP of Marketplace, Michael McClusky.

Michael McCluskey said the goal is for customers to not even know whether an item is 1p or 3p.

They're just looking for the right solution.

And I 100% agree with Michael in his sentiment.

The future has already reached about 97% of stores and will be chain wide within weeks.

Lowe's says it's already exceeding internal expectations for store driven sales just weeks after launch.

Ben, is Lowe's onto something here with enabling its store associates to sell Marketplace products in store?

What do you think of this move?

Yeah, of course it's onto something.

I do okay.

All right, I like it.

I, I like it for Lowe's because Home improvement is high touch.

Yes.

Both Lowe's and Home Depot invest except in their store teams.

As a key point of difference, people know to go and ask for help.

So the more you can do to empower those teams just feels like really good omnichannel retailing.

And I think, look, we're all really used to sales experiences that start on the shop floor and continue online to access a wider assortment.

So look, adding Marketplace is just for me, a logical extension of that.

And it also, it also removes a disconnect.

Chris.

Now, if you're a shopper standing in a store, you've got the Lowe's app open and you're looking at an item that works for you.

You know, you really want that goose because they are on trend right now.

Decorative geese.

It makes no sense that the store team you're talking to can't help you with that and that, you know, that undermines the store associate.

So this is, it's great to see this investment.

It's, it's a win for customers access to a wider product range.

Especially as Lowe's Low said they've more than doubled their Marketplace assortment in the last year.

So big win for customers and it should be a big win for sellers as well.

Building on those in store recommendations.

Look, I've got, I've got a slight watch out on execution to make sure that the store gets credit, that he's store driven.

Sales.

That's important that, that last little bit, you know, if they haven't got that right, it'll disturb the flywheel.

But, you know, it should be a win for Olive anyway.

Look, Chris, I can see you nodding along.

Do you like it?

And if so, do you think more people should be doing this?

Oh, I freaking love it.

I freaking love it, Ben.

I mean, you even got me thinking about something I hadn't thought about until we just started recording here, which is like.

Yeah.

When you, when you put the power of the recommendation in the hands of the associate for an online item, you could even trigger like a deal to get that sales associate to close the transaction right then and there with the customer, in theory.

So, like, there's a whole range of things that happen from this.

So I like it.

But I think your point is really very, very shrewd, Ben, which is you like it because of the vertical.

You like it because of the vertical that Lowe's operates in, which is home improvement.

And, and again, which is one reason I love having you on this show as often as we do is you look to Europe and.

And I've interviewed executives from Kingfisher Leroy Merlin over the past two, three years, and they've all talked about the advantages of taking this approach in their own stores.

So you look to Europe.

It's a great place to get benchmarking for what you should be doing in your store.

And this is a great example of benchmarking marketplace practices.

And so it works in the vertical because of home improvement.

Right.

It's high touch, high services.

The employees are genuinely helpful.

There are items that you need to complete your home renovation products, your decorative lawn chore that you need.

You need those geese, like you said.

And those items aren't always carried in store, nor should they be.

So that is why this is going to work.

Is it going to work in a Target or Walmart?

Like what?

I tell them to do the same thing.

Absolutely.

100%.

No, I wouldn't.

Because you don't have the same quality of service and the same types of interactions day in and day out.

But would it work in like a Best Buy?

100%, Yes.

100%, Yes, I think it will.

So that's where I think if you've got a high touch, high service environment and you're looking at a marketplace, this is a smart, smart extension.