In an effort to engage younger consumers, Lowe’s recently relaunched its Kids Club program, hosting DIY workshops where children can create projects, such as washing machine-themed piggy banks. While the initiative directly serves children, it aims to draw in their parents, particularly millennials and Gen Z, who are often prospective homeowners but may not be actively purchasing homes.
With rising home prices and borrowing costs delaying homeownership—seen with the median age of first-time buyers now at a record 40—Lowe’s is adjusting its strategy to appeal to a demographic that is delaying home improvement projects. Efforts include expanding product offerings through partnerships with influencers on social media and launching a customer loyalty program, My Lowe’s Rewards, which has grown significantly since its debut.
Lowe’s executives, including Chief Marketing Officer Jen Wilson, highlighted the importance of maintaining relevance among consumers who do not yet own homes or face financial barriers to home purchases. The company is also shifting its marketing focus to attract families and children. Interestingly, market research shows children influence their parents’ shopping choices significantly, particularly among younger parents.
As competition increases with other retailers, such as Home Depot, Lowe’s is looking to differentiate itself through unique events and merchandise appealing to both kids and parents. Analysts note that while Lowe’s current reliance on DIY shoppers presents challenges, it may also provide an advantage as the housing market stabilizes.
Why this story matters
- The home improvement sector is adapting to changing consumer demographics and economic conditions, focusing on engaging future homeowners.
Key takeaway
- Lowe’s is strategically targeting younger families to enhance customer loyalty and drive in-store traffic amid a challenging housing market.
Opposing viewpoint
- Competitors like Home Depot are also innovating with programs and faster delivery options, intensifying the battle for market share in home improvement retail.
