"It's The Holiday Season..."

...AND SANTA CLAUSE IS ON HIS WAY...the only problem is he has to deal with the economic crisis...

Lowe's Web Site is already decked out in Holiday colors and decorations and loaded with gift options. Lowe's is also utilizing several tactics in an attempt to avoid this economic obstacle that may negatively affect them this upcoming Christmas and Holiday Season!

New Media is all over the Lowe's website, but if you visit now, you will find a streaming banner publicizing new things happening with Lowes. If you click on the Youtube Holiday solution Center that is partnered with Lowes, you will be brought to a fun holiday cheery website with many different category youtube how-to and idea videos. You can choose from gift giving, decorating, cooking, featured, and MOST IMPORTANTLY How-To from Lowes.

http://www.youtube.com/holidaysolution

Viewers can even connect with Holiday Solutions by posting on the blog to the left of the website. People can comment on videos, ask for gift advice, and add friends to your friendlist. It's ALL about COMMUNICATION!!!
Also posted on the Lowe's Home Page is a link to Lower priced items!! I think that it is important to make a note of any money saving gift ideas and other ways to get a better deal at Lowes especially during this economic crisis. Lowe's is doing themselves a favor by already starting to address the potential drawbacks for this winter. In order to ensure their customers have the best opportunity to push through these economic times with full force, Lowe's also provides TOP 5 WAYS TO LIVE HEALTHILY AND SAVE MONEY:

1. Change your air filters.
Many times HVAC filters can get clogged enough to slow down airflow and hinder the efficiency of your air system. You can improve your home’s air quality and save money by replacing your home’s HVAC filters and making sure your air vents are cleared. Lowe’s can help you get started with premium electrostatic air filters that start at $8 and can save you up to $100 annually.

2. Thoroughly clean your carpet.
Dust mites and germs can hide in carpeting and upholstered furniture. If you’re updating your home décor, choose floor coverings and fabrics that make it more difficult for germs to hide, like wood or tile flooring and leather or vinyl upholstery. If you prefer carpeting and fabric upholstery, clean them regularly with a HEPA Filter Vacuum (starts at $80) and Dust Mite Spray (starts at $9) available at Lowe’s

3. Improve your indoor air quality.
According to the EPA, Americans spend 90% of their time indoors, and sometimes air quality can be 2 to 5 times more dangerous than outdoor air. A great way to help improve indoor air quality is with an air purifier, which you can find at Lowe’s starting at just $65.

4. Make sure your surfaces are clean.
The human influenza virus can live on a surface for up to 8 hours, so the cleaner your surfaces, the healthier your family will be. Using anti-bacterial cleaning solutions and wipes and replacing your sponges on a regular basis will help kill germs on common household surfaces in bathrooms and kitchens. All-purpose cleaners and disinfecting wipes start at $2 at Lowe’s.

5. Ensure healthy drinking water.
Make sure your family is drinking the cleanest and safest water possible. The EPA estimates that 10-20% of human exposure to lead is from contaminated drinking water. Simply installing a whole-house water filter, faucet-filter or under- sink filter can ensure the quality of every sip you take. Find water filter options at Lowe’s for as little as $10.

SOURCE: EPA and Money Magazine - October 2007

Another way they are appealing to their customers is by providing tips to maintain a happy and healthy home for the changing seasons. Viewers can first take the Healthy Home Quiz and see how healthy their home really is. Then they can read up on helpful seasonal tips such as lawn order, indoor air, and garage wash. They also list several family oriented activities that promote healthy living, as well as offer healthy related products that Lowe's offers at their stores.

http://www.lowes.com/lowes/lkn?action=pg&p=microsite/home_env.html&source=media&link=healthyhome/&lks=hpma5b

They are very clever when it comes to Community Relations, the strategic development of mutually beneficial relationships. Their focus on communicating to the public, providing better prices, and offering advice and tops to live a healthier life shows that they care about their customers happiness and welbeing. This innevitably contributes to Lowe's long-term objective of building a positive reputation . Reputation is KEY for a company to be successful and the thrive. It think that even with the economic situation at hand, Lowe's has a positive future to look foward to and will be providing us with good products, valuable advice, and new homes for those in need.

Investor Relations

Within a company, I have learned that it is important to have strong Investor Relations. Company's reputations are greatly influence by how well their stock performs, and it is important to communicate to the public about any positive, or negative business changes. This includes annual reports, the CEO's letter to the shareholder, and any news releases about the company's earnings.

Lowe's investor relations information is easily accessible to shareholders and the overall public right on their website. By clicking investor relations on the Lowe's homepage, http://www.shareholder.com/lowes/index2.cfm, there are numerous links you can choose from to see how their company is really doing.

I was surprised by Lowe's annual report. http://images.lowes.com/animate/LOWES_2007AR_nav-FINAL.pdf

In Lowe's Fiscal 2007 year, they reported:
> $260 million invested in their distribution network to further enhance service to their stores.
> $350 million invested in ensuring that their stores remain easy-to-shop and feature informative signage, and great displays.
> $3.3 billion invested in new stores. They 153 more stores.

It has many beautiful pictures of families and their homes, smiling faces, happy customers, yet it was more like an economical piece than a marketing piece. I expected Lowe's to have something more creative. The company simply poseted its annual Securities and Exchange Commision 10-K filing. Althought that is what an annual report is supposed to do, it would be in their best interest to put some fun into the report. Perhaps, making the annual report more computer interactive, rather than just posting the report up on the web. The more fun people have with it, the more likely they will want to get involved.


Lowe's did however take this opportunity to incorporate a little bit about their goals, and what they stand for. This gives customers a sense of what Lowe's is all about, what they stand for, and what type of company people are supporting when they do business there. They explain that they are continuously looks for ways to become more efficient, and include the different measures they are taking to ensure company improvement. They touch upon distribution, expense management, technology, training, evaluation, and most importantly their community service and partnerships with charities.

"Our door of opportunity is finding greater efficiencies in every aspect of our business to drive long-term profitability."

Another important PR vehicle is the CEO's letter to the shareholders. This is conveniently found in the beginning of Lowe's annual report.
Robert A. Niblock, CEO and chairman of the Board, begins the letter by admitting in the very first paragraph that 2007 was a very difficult sales year for Lowe's and other home inmprovement companies. I think it is very smart to come right out with the negative news first, because that only means you can only get positive from there. He talks about the rapid decline in housing turnover, our current economic situation, and extreme weather that has affected the company negatively. However, he makes it a point to inform the shareholders that, "with more than 60 years of retail experience, we have weathered many cycles." He showed how duespite such challenging times, Lowe's continued to gain share, open up new stores covering all 50 states, as well as opening their first store outside the US in the Greater Toronto Area.

Niblock genuinely thanks his employees, and makes it known how important and valuable their work and dedication is to Lowe's. A picture of him is posted at the begining of the letter, which makes the letter more personable. It's as if he is directly addressing each reader, I can almost see him reaching out for a hand shake =)!!! I think that investors can feel at ease when reading this letter. The fact that the CEO was so honest when reporting their past and future challenges, shareholders feel as though they aren't being left in the dark about the company, and they constantly know what's going on. This letter sends messages of hard work and dedication, stability, honesty, and genuine concern. It is credible, because when reporting ALL the facts, including the BAD NEWS, the rest of the information is believable, because the company isn't hiding anything. It is important to make shareholders feel secure and part of the company, and Lowe's certainly does that. It instills confidence in their invesors. =)

YOU'RE THINKING ABOUT BECOMING ONE NOW AREN'T YOU!!!

Lowe's annual report and shareholder may be OLD SCHOOL, but their last news release on the company's earnings is NEW MEDIA. I thought it was interesting that Lowe's invited the public to join it's 2007 earnings conference call webcast. They posted the time, link, phone number, and directions for how to listen in. Although this is an exciting way for people to be able to experience the actual meeting, however it may be nice to also include a written out news release so that people can have a hard copy of the company's earnings. Some people may not have time to sit there and listen to the whole meeting, so it may be more convenient for people to be able to choose between the webcast and the typed version.

A company's Investor Relations can be a very touchy subject, especially during economicly difficult times. Lowe's really achieved SUCCESS based on the environmental circumstances, and did an exceptional job communicating the realities, and future expectations to its shareholders, customers, and the public. This really attracts people to the company, and makes them feel confident to do business with them.

THE FUTURE MAY LOOK CHALLENGING > BUT I THINK ITS SAFE TO SAY LOWES CAN HANDLE IT BEAUTIFULLY!!!