Lowe's Bets on Kids, Creators and Gen Z as Americans Delay Homebuying

Why It Matters

Capturing Gen Z and family shoppers could provide Lowe's with a sustainable revenue stream as the housing market stalls, making the retailer more resilient against macro‑economic pressures.

Key Takeaways

• Lowe's revamps kids club, offering lollipops and workshops.
• New programs target Gen Z and millennial shoppers via influencers.
• DIY shoppers now represent 70% of Lowe's sales mix.
• Housing market slowdown pushes Lowe's to focus on younger consumers.
• Forecasted FY sales $86 billion, modest growth despite industry dip.

Summary

Lowe's is betting on the next generation of consumers, relaunching its kids club with free workshops, lollipops and plans for teen‑focused projects. The retailer is also courting Gen Z and young millennials through influencer partnerships and a refreshed loyalty program, hoping to turn family visits into long‑term brand loyalty.

The strategy arrives as the home‑improvement market cools from pandemic highs. Lowe's projects $86 billion in sales for the current fiscal year, a slight uptick but still below peak levels. DIY shoppers now account for roughly 70% of its revenue, compared with Home Depot’s roughly 50/50 split between contractors and homeowners. With the median age of first‑time homebuyers at an all‑time high of 40, the company is seeking growth beyond traditional housing‑driven demand.

Analysts note the shift toward younger shoppers, citing the new kids workshops and influencer‑driven content as ways to embed the brand early. One analyst highlighted that Lowe's “gets a larger share of its total sales from everyday shoppers rather than home professionals,” positioning it to benefit from the resurgence of lower‑cost DIY projects.

If the program succeeds, Lowe's could secure a pipeline of loyal customers as today’s children become tomorrow’s homeowners, offsetting headwinds from high mortgage rates and stiff competition from Home Depot, Ace, Walmart and Amazon. The initiative underscores a broader retail trend of building lifelong brand relationships early.

Original Description

Lowe’s sales have been in a slump since its pandemic highs, but the home improvement retailer is hoping to tap into new generations as part of the solution.

CNBC’s Melissa Repko breaks down Lowe’s latest retail initiatives.