Is Lowe's Getting Ready To Take On Walmart And Costco? Unveils New Line Of Products $5 Or Less

Lowe's is shaking up the home improvement sector with a bold move that puts budget-conscious shoppers front and centre. The retail giant has introduced Lowe's Essentials — a new private-label range featuring everyday household items, all priced at no more than $5 (around £3).

In an era where rising inflation continues to squeeze household budgets, this latest initiative signals a shift in strategy as Lowe's aims to compete not only with rivals like Home Depot, but also discount titans such as Walmart, Costco and online disruptors Shein and Temu.

What Is Lowe's Essentials?

The Lowe's Essentials line includes seven simple but practical products, from work gloves and plastic storage bins to grill brushes, hangers, kneeling pads and gardening tools. The items are displayed prominently at the front of stores, making them easy to find during the launch.

So far, customer feedback has been overwhelmingly positive. All 328 online reviews have awarded the products high marks. Even the lowest-rated item, a grill brush, boasts an average of 4.3 out of 5 stars, with several products earning perfect scores.

A Direct Response to Inflation and Digital Competition

In an interview with CNBC, Lowe's CEO Marvin Ellison explained that the new budget range is part of a broader strategy to attract value-driven customers and compete head-to-head with Home Depot.

'Rather than having a customer go to a dollar store environment, or even to a mass merchant for a lower price for a home goods item, we're going to create a brand with products at opening price points,' Ellison said. 'We're very excited about it.'

Retail analyst Neil Saunders of GlobalData Retail told the Daily Mail that the move is also aimed at countering the rising threat of ultra-low-cost online marketplaces like Shein and Temu.

'The Lowe's Essentials range is designed to provide the consumer with good value on everyday products,' he said. 'However, it is also likely a response to the rise of cheaper marketplaces like Temu and the value offered by Amazon.'

Private Label Arms Race

Lowe's joins a growing number of major retailers introducing their own exclusive brands. Costco famously relies on its Kirkland Signature line, while Target offers a variety of brands like Good & Gather, All in Motion, and Dealworthy. Supermarket chain Safeway has launched its own label called Overjoyed.

This is not Lowe's first foray into private branding. The retailer also sells its Kobalt line of tools and Allen + Roth home décor. However, Lowe's Essentials is the brand's most aggressive attempt yet to appeal to frugal consumers.

Retail experts believe that launching such entry-level brands is now a necessary defensive move. With inflation reducing consumer spending power and e-commerce giants eating into market share, traditional chains are under pressure to innovate or fall behind.

Industry Under Strain

The timing of the Essentials launch couldn't be more critical. The home improvement sector faced considerable headwinds in 2024. LL Flooring filed for bankruptcy in September, preparing to close 442 stores before a buyer stepped in. The Container Store also shuttered multiple locations after a December bankruptcy filing.

By offering high-use, low-cost items under a recognisable in-store label, Lowe's is betting on affordability to drive footfall and loyalty. Whether the strategy pays off in the long run remains to be seen — but for now, the Lowe's Essentials range looks like a timely and well-received play for shoppers watching their wallets.