{"id":76634,"date":"2025-11-21T19:01:29","date_gmt":"2025-11-21T19:01:29","guid":{"rendered":"https:\/\/dralysstore.com\/blog\/?p=76634"},"modified":"2025-11-21T19:01:29","modified_gmt":"2025-11-21T19:01:29","slug":"lowes-leans-on-ai-and-ecommerce-to-drive-2026-growth","status":"publish","type":"post","link":"https:\/\/dralysstore.com\/blog\/lowes-leans-on-ai-and-ecommerce-to-drive-2026-growth\/","title":{"rendered":"Lowe\u2019s leans on AI and ecommerce to drive 2026 growth"},"content":{"rendered":"
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Lowe\u2019s Cos. used its Q3 earnings call<\/a> to sharpen its message around where future growth will come from: artificial intelligence, deeper digital engagement from professional contractors, and the integration of Foundation Building Materials (FBM)<\/a> into its ecommerce and fulfillment network.<\/p>\n

President and CEO Marvin Ellison said Lowe\u2019s has embedded generative AI tools across customer-facing and internal digital workflows. The company\u2019s AI-powered virtual assistants \u2014 Mylow and Mylow Companion<\/a> \u2014 which it built on OpenAI<\/a> technology, are handling \u201cnearly 1 million questions per month about everything from product specs to project know-how to the status of a customer order.\u201d<\/p>\n

He said the shift in digital behavior is clear.<\/p>\n

\u201cWhen our customers engage with Mylow online, the conversion rate more than doubles,\u201d he said. And when associates use the in-store version, \u201cwe\u2019re seeing customer satisfaction scores increase 200 basis points.\u201d<\/p>\n

Lowe\u2019s is No. 11 in the\u00a0Top 2000 Database<\/a>. The database ranks North America\u2019s largest online retailers by annual ecommerce sales. Digital Commerce 360 projects Lowe\u2019s online sales will reach $12.17 billion in 2025.<\/p>\n

How Lowe\u2019s is expanding its AI usage<\/h2>\n

Lowe\u2019s is also expanding AI into engineering and software operations. Ellison said teams are using generative AI for \u201cdevelopment and code review,\u201d generating \u201cdouble-digit productivity gains.\u201d<\/p>\n

He added that Lowe\u2019s was recently recognized by OpenAI for reaching its 100-billion-token usage milestone. Ellison described that as evidence of the \u201cdepth and breadth of AI adoption throughout the organization.\u201d<\/p>\n

It has scheduled several additional AI initiatives to roll out in 2026, including tools designed to expand digital capabilities for Pro and DIY customers and support Lowe\u2019s participation in \u201cagentic commerce<\/a>.\u201d<\/p>\n

Digital engagement among Pro contractors continues to strengthen. Ellison said the retailer\u2019s Pro extended aisle \u2014 which connects associates directly to supplier systems \u2014 allows them to \u201csell directly from their product catalogs with the suppliers fulfilling their orders directly to the job site.\u201d<\/p>\n

The capability expands digital assortment, improves inventory depth and boosts large-order fulfillment. He said 75% of Pros remain confident in their job prospects.<\/p>\n

Where Lowe\u2019s is using technology, acquisitions to draw in Pros<\/h2>\n

Joseph McFarland, executive vice president of stores, added that Pros \u201care taking advantage of our enhanced digital capabilities as they shift to more shopping online.\u201d<\/p>\n

Lowe\u2019s closed its acquisition of FBM in October, expanding its interior building materials offering and adding significant digital-fulfillment capacity. Ellison described FBM as \u201ca leading distributor in interior building products\u201d and said the deal \u201cgives us a more comprehensive product portfolio, expands our revenue streams and further enhances our offering to our Pro customers.\u201d<\/p>\n

Integration is moving quickly. FBM\u2019s catalog is being linked to the Pro extended aisle, and FBM customers will gain access to Lowe\u2019s tools, safety gear and fasteners. FBM\u2019s 370 locations \u201cstrengthen our fulfillment capabilities, especially in high-density urban markets in California, the Northeast and the Midwest, where Lowe\u2019s has less of a physical store presence.\u201d<\/p>\n

Early commercial wins include data centers, medical facilities and a luxury high-rise.<\/p>\n

Ellison said the combination of AI, digital Pro tools and expanded fulfillment scale positions the company well heading into 2026.<\/p>\n

\u201cAchieving this milestone places Lowe\u2019s in an elite tier of companies that are not just experimenting with AI, but operating at a true enterprise scale,\u201d he said.<\/p>\n

Lowe\u2019s reported $1.6 billion in net earnings for its fiscal Q3 ended Oct. 31, down 4.7% from $1.7 billion a year earlier. Total sales rose 3.2% to $20.81 billion, compared with $20.17 billion in last year\u2019s third quarter.<\/p>\n

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