Lowe’s picks Charlotte for new pilot program for professional customer delivery services

Lowe’s chose Charlotte for its first fulfillment center just for professional customers, creating 40 jobs.

The 200,000-square-foot facility opened this month at 7800 Tuckaseegee Road, the Mooresville-based home improvement company said Wednesday in a statement to The Charlotte Observer. The west Charlotte site is off Interstate 85, near Interstate 485.

The center adds 40 Lowe’s jobs, and also helped create approximately 30 jobs for third-party delivery vendors, Lowe’s spokesman Steve Salazar said. The facility will be hiring year-round.

The fulfillment center offers pro customers next-day delivery to job sites, Lowe’s CEO Marvin Ellison said during an interview Wednesday with reporters following the first-quarter earnings call.

About Lowe’s Pro Fulfillment Center

The pilot program is meant to attract more pro customers of all sizes so they can stay on the job by offering direct-to-job site delivery, Lowe’s said. It’s part of Lowe’s Total Home Strategy that covers products and services for the home for pro and do-it-yourself customers.

More than 1,000 products are stocked at the fulfillment including lumber, building materials, roofing, sheetrock, shingles, insulation, windows and doors.

Deliveries can be scheduled, tracked online, and are available for delivery by box or flatbed truck.

Lowe’s new Pro Fulfillment Center in Charlotte delivers orders to job sites by box or flatbed truck.
Lowe’s new Pro Fulfillment Center in Charlotte delivers orders to job sites by box or flatbed truck.

Lowe’s ramps up delivery options

Ellison said the new pro fulfillment facility adds to Lowe’s expanding delivery platforms, including curbside pickup and lockers. In February, Lowe’s partnered with Instacart to pilot programs in Charlotte and Boston.

“We are the only home improvement retailer on Instacart’s platform,” Ellison said. The program has expanded to five states and is expected to be at nearly 700 stores by the end of June, he said.

In August 2020, Lowe’s said it would open 50 delivery terminals, seven distribution centers and four e-commerce fulfillment centers nationwide over 18 months. The goal: enable faster e-commerce shipping with more same-day and next-day delivery across the country.

Lowe’s pilot program Pro Fulfillment Center in Charlotte has more than 1,000 products in stock including lumber, building materials, roofing, sheetrock, shingles, insulation, and windows and doors.
Lowe’s pilot program Pro Fulfillment Center in Charlotte has more than 1,000 products in stock including lumber, building materials, roofing, sheetrock, shingles, insulation, and windows and doors.

Lowe’s earnings report

On Wednesday, Lowe’s reported that first-quarter sales ending April 29 were slightly down compared to last year.

Lowe’s saw 20% pro customer growth during the first quarter and 64% on a two-year basis, Ellison said. “We’re definitely headed in the right direction,” he said.

The company reported net income was in line with prior-year results at $2.3 billion. However, first-quarter sales were down $23.7 billion compared to $24.4 billion the same time last year.

Ellison said sales, while in line with expectations, took a hit because of the coldest April in over 20 years, pushing the spring selling season into the second quarter.

Do-it-yourself customers make up 75% of Lowe’s customer base, Ellison said. “Now that spring has finally arrived, we are pleased with the improved sales trends we are seeing in May,” Ellison said in a news release.

Lowe’s has more than 2,200 home improvement and hardware stores in the U.S. and Canada, and employs about 300,000 people. Lowe’s has more than 12,000 employees in the Charlotte area, including about 7,000 corporate workers.