Robert Strickland
Robert Strickland came to Lowe's fresh from the Harvard Business School. Rising steadily through the ranks, Strickland had reached the position of chairman of the board in 1978 and, with newly appointed Lowe's President Leonard Herring, spearheaded the decision to attract consumers in a big way.
Using the easily recognizable acronym RSVP (standing for retail sales, volume, and profit), Lowe's embarked on the new marketing strategy. A consultant was hired to remodel the showrooms, and the resulting layout was similar to that of a supermarket. Seasonal items, such as lawn mowers, were placed in the front of the store. The traffic pattern drew customers to the interior decorating section, then moved on to the back of the store where traditional hardware materials were displayed. The theory behind this traffic pattern said that most consumers may come for the basics but, by walking through the other departments, end up purchasing more.
The store in Morganton, North Carolina, was the first location remodeled under the RVSP plan.
In another aspect of the redesign, poster-sized photographs depicting Lowe's merchandise as it would look in the consumer's home were used to identify departments rather than lettered signs. Product lines were updated, hours were extended, and advertising was increased.
The strategy worked; by 1982 sales had reached $1 billion, and when the figure reached $1.43 billion in 1983, it marked the first time that Lowe's had made more money selling to consumers than to contractors.
One aspect of the RSVP plan that did not work was Wood World, an extension of the retail floor into one long bay of the lumber warehouse. Fire code regulations required the installation of expensive fire walls and doors, and the idea was soon scrapped. Paneling and other wood products were then put out on the sales floor with the rest of the merchandise.
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