Lowe’s is awarding bonuses totaling $55 million to its front-line hourly employees to help soften the impact of inflation.
The home improvement store chain said on an earnings call Wednesday it is offering those workers limited-time discounts of up to 20% on everyday household and cleaning items.
"We will continue to look for meaningful ways to improve our associates’ work-life balance while providing them with the tools to build a career at Lowe’s," Executive Vice President Joe McFarland said.
Overall, the retailer said, customers are cutting back on discretionary purchases, even as a subset continue to hire professional contractors for home improvement projects.
Lowe's was one of several major retailers to announce earnings this week. Home Depot reported record earnings and sales in its most recent quarter, citing similar ongoing consumer interest in home improvement projects.
“Our team has done a fantastic job serving our customers, while continuing to navigate a challenging and dynamic environment,” CEO and President Ted Decker said in a statement.
Target also reported its fiscal quarterly earnings, noting it had almost completely sold through the glut of inventory it warned about earlier this summer. It also struck an upbeat tone about the resilience of its core customers.
“We’ve got a guest that is still out shopping,” CEO Brian Cornell said.
Meanwhile, Walmart said Tuesday that wealthier shoppers have been turning up in its checkout aisles and online in higher numbers as inflation continues to bite.
“Clearly, they’re stressed from higher gas prices, higher food prices and even housing,” Chief Financial Officer John Rainey said.