Lowe’s responds to housing slump with new shopper perks

A lot of people are frustrated by the state of the housing market. And who can blame them?

In February, the median existing home sold for $398,000, according to the National Association of Realtors. That's the 32nd month in a row of year-over-year price gains.

It's been extremely difficult for new buyers to break into the market when both home prices and mortgage rates remain high. In fact, mortgage rates dipped at the start of the year, only to soar in the wake of the Iran war.

These factors have been keeping buyers out of the market. And that, combined with broad economic conditions, has put pressure on home-improvement giants Home Depot and Lowe's.

Despite beating earnings, Lowe's operating income fell during its most recent quarter. And in its full 2026 outlook, Lowe's said it expects comparable sales to range from flat to up 2%, compared to the prior year.

But that doesn't mean the company is giving up. Instead, Lowe's continues to work on strategies to earn customers' business.

Lowe's rolls out some great new benefits

Despite facing a host of challenges, Lowe’s is leaning into value, convenience, and loyalty to attract shoppers during the upcoming spring season — a critical time for business. The retailer recently touted a new slate of seasonal promotions and customer perks, headlined by free same-day delivery on mulch for loyalty members. 

For the first time, members of MyLowe’s Rewards and MyLowe’s Pro Rewards can get free same-day delivery on eligible orders over $25, a move designed to make time-sensitive outdoor projects easier and more appealing.

Related: Home Depot shows it has faith in a housing market rebound

The benefit is part of a broader SpringFest campaign running from late March through April. It includes rolling deals across key categories like lawn and garden, outdoor living, grills, and power equipment. 

Shoppers can enjoy fantastic promotions such as discounted mulch, garden soil, patio sets, and tools. 

"Spring is one of the most energizing times of year for homeowners, and you can feel that momentum the moment you walk into Lowe's," said Lowe's chief marketing officer Jen Wilson.

A smart strategy for Lowe's

At a time when so many consumers are curbing their spending to cope with economic uncertainty and persistent inflation, Lowe's is smart to focus on value and loyalty. 

Given sluggish housing market conditions, Lowe's needs to focus on getting former or existing customers in the door instead of waiting for new ones. 

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Of course, the company is no doubt hoping that its spring deals and new benefits will push foot traffic in a positive direction. Recent data from Placer.ai found that on a year-over-year basis, Lowe’s same-store visits fell 2.2% in October, rose 2.9% in November, and dropped 1.5% in December.

In January, however, same-store visits increased 4%. And introducing new spring deals and loyalty perks is a great way to capitalize on that momentum.

Lowe's has to really pay attention to what customers need right now. Convenience is typically a high priority for consumers, but savings may be even more crucial in today's economy.

Recent Clever data found that 50% of homeowners need critical renovations that they can't afford. What Lowe's really needs to do beyond its spring promotion is take steps to offer customers the best prices possible if it wants to keep winning business. 

Maurie Backman owns shares of Lowe's.

Related: Walmart sees troubling shift in consumer behavior