Lowe’s has provided an update on its long-term growth strategy, which includes the use of AI to drive productivity and boost customer experience.

The home improvement retailer announced its updated Total Home Strategy during an investor conference on Wednesday. 

For next year, the strategy will include key initiatives such as accelerating online sales, expanding home services and creating a loyalty ecosystem.

To achieve these targets, the company said it has developed an AI framework to enhance the customer experience and productivity. The firm is also piloting new solutions based on its success with early AI models in online search and product recommendations, sourcing engines and demand planning tools.

Lowe’s plans to launch a marketplace for home improvement products to expand its online assortment. This allows the company to offer a wider selection of products without carrying the inventory, managing pricing or investing in new fulfillment centers. 

The retailer will relaunch its Pro loyalty program early next year and bring its DIY and Pro loyalty programs into one ecosystem, creating a simple and compelling value proposition for different customers.  

With regard to footprint expansion, the company plans to open 10-15 stores per year over the next several years in fast-growing markets in the US. It will also extend its rural assortments to 150 more stores.

For FY24, Lowe’s continues to expect total sales of $83.0 to $83.5 billion and a 3-3.5 per cent decline in comparable sales. The company reported a 1.5 per cent decrease in net sales and 4.4 per cent drop in income for the third quarter.