“Lowe’s Presents at UBS Global Consumer Conference (3/13/13)” at Seeking Alpha.
Robert Niblock’s (Lowe’s Chairman and CEO) comments on the new line review process:
* I think it is obviously a more rigorous process than what our vendors have gone through before.
* If you think about in the past, if a vendor had a line review with one merchant versus a different one, there might’ve been some differences in the process. Much greater consistency in the processes now.
* So it has been — well, actually, it is a rigorous process that they go through. We are expecting them to bring their best price forward the first time that they quote us.
* But now that we’re well through the process and actually, we’ll be starting to plan the next round of line reviews in the future.
* And I think one of the things that will likely help there when you think about our merchants now as they go through the line review process, they’re really going to more dead net pricing.
Question to Niblock: “And is there an opportunity to go back to some of those earlier discussions and maybe go down that path of what you initially expected if you didn’t achieve what you were looking for the first time around?”
* Yes, certainly. As you go through the line review process, I think there’s been learnings on both sides.
* So as we get through the initial round of line reviews at the end of 2013, then we’ll basically operationalize that into our ongoing process.
* And as we’re doing line reviews in the future, they won’t be done at the pace at which were being done today, but certainly the opportunity to go back and even some of the line reviews we’ve done, do a better job the second time around.
* I think there was a lot of learnings that took place from the line reviews that we did last year, and that’s part of the reason that we slowed down the pace at which we were doing those line reviews.
* I think that the biggest challenge would be continue to get good realization on the inventory that we’ve displaced and selling through from a margin standpoint. And that’s part of the reason we slowed that cadence down was to ensure that we can do that and provide a great customer experience.
Read the full transcript (registration required): https://seekingalpha.com/article/1272021-lowe-s-companies-inc-presents-at-ubs-global-consumer-conference-mar-13-2013-02-20-pm
Listen to the webcast: https://cc.talkpoint.com/ubsx001/031313a_ep/?entity=5_R48TFQ6
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