Home improvement giant Lowe's Companies Inc. (LOW, Financial) announced May 1 it is expanding its long-running military discount program this month. The company, which has been offering a discount to veterans for decades, has not only streamlined the discount program, but extended it to include self-checkout and online shopping.
The program has also expanded to include all veterans.
Previously, the discount applied to active-duty members and retired veterans receiving benefits through the Veterans Administration. Honorably discharged veterans were only eligible for discounts on three days: Veterans Day, Independence Day and Memorial Day.
The home improvement chain's 10% discount for veterans will now apply to self-checkout stands and online orders. But the company has changed the way the program works.
Veterans now have to sign up for the program online through the Lowe's website. Members will get a card in the mail that will streamline the checkout process, but cannot be used as a credit card.
Dependent children and spouses are also eligible for the discount.
Along with the 10% discount, veterans also receive free shipping on online purchases with no minimum purchase requirements.
News of the expanded veteran's discount program comes just three weeks before Memorial Day, the federal holiday honoring those who have died serving the country.
Roert Niblock, the company's president, chairman and CEO, revealed in a statement that the company's founder, Carl Buchan, was an Army veteran who wanted to make building and home improvement projects more affordable for soldiers and their families.Â
"The values and leadership instilled through his military service formed the foundation of our company," Niblock said. "Enhancing our discount program honors his memory and the commitment servicemen and women and their families make to our country."
Lowe's, based in Mooresville, North Caroline, currently employs 10,000 U.S. military veterans and members of the Reserve or Guard. About 800 of those employees are deployed.
Enhancing and expanding the company's veterans program will make it easier and more enticing for members to make purchases, potentially improving sales for the home improvement chain.
Lowe's announced its fourth-quarter earnings in early March, topping analyst estimates. The retailer posted 86 cents per share on $15.78 billion in revenue. Analysts were expecting 79 cents per share and revenue of $15.39 billion.
Same-store sales increased 5.1%, far surpassing the 2.4% increase expected by analysts.
Last year, Lowe's reported 59 cents per share and $13.24 billion in revenue.
In the fourth quarter, the company also repurchased $551 million of stock as part of its repurchase program and paid out $306 million in dividends.
Despite a rosy quarter and outlook, Lowe's is still struggling to compete with Home Depot (HD, Financial), whose relationship with contractors has helped boost sales.
The company says it plans to focus on boosting productivity and reducing costs. The retailer laid off about 1% of its workforce to streamline operations and enhance customer service.
The company's stock closed at $86 today, up 0.73% in the last five days and 20% year to date.
Disclosure: Author does not have any stake in the above-mentioned equities.
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