Lowe's in Trouble

Feb 13, 2012 | Posted by: roboblogger | Full story: CNN

Lowe's Companies Inc. is offering certain corporate office staff in Mooresville and Wilkesboro a lump sum severance payment and other benefits to end their employment with the company through a "voluntary separation program" . "The majority of employees in Wilkesboro and Mooresville are eligible.

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Since: Oct 11

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#1
Feb 13, 2012
 

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It is not only at the home office. People in the stores got their pay cut too.
Good Grief

West Jefferson, NC

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#2
Feb 13, 2012
 

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Store employees didn't receive a pay cut. The company is no longer over compensating specialists. They are paying them a set amount forever in the form of a buyout of Spiffs and commissions in addition to a competitive salary which is much higher than a hourly associate. Home Depot and most retailers did this a long time ago. You should consider yourself lucky you have a job and if you don't think so become a customer!

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#3
Feb 13, 2012
 

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Grief, 30% pay cut is what I took. How would you feel if it happened to you? And before you start with "spiffs were not guaranteed", they were part of our compensation package when we hire/transfer in to the Appl dept. Why should I consider myself lucky? I've been there 14 yrs & worked my a$$ off. So if you were ever lucky enough to get SSEI maybe you should thank a specialist, cuz trust me they were trying to sell everything they could to make that $.
1 specialist

Angola, NY

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#4
Feb 13, 2012
 

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Over compensating specialists? These specialists have more selling , customer service skills and product knowledge then anyone else in the store and these overcompensated specialists are the reason lowes has been successful. I you were a little smarter and had these skills then you would be a specialist but your not smart enough and you don't have the skills to do this job so I suggest you shut you pie hole .
Going down

Laurel, MD

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#5
Feb 13, 2012
 

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Good Grief wrote:
Store employees didn't receive a pay cut. The company is no longer over compensating specialists. They are paying them a set amount forever in the form of a buyout of Spiffs and commissions in addition to a competitive salary which is much higher than a hourly associate. Home Depot and most retailers did this a long time ago. You should consider yourself lucky you have a job and if you don't think so become a customer!
LPMs received a 18.5% paycut. Now are working a mandatory 8 hrs ot. When OT goes away like we all know it will that will probably be on avg of an $8000 or more paycut. This is affecting multiple levels of this company so keep the consider yourself lucky comment to yourself.
a real employee

Acworth, GA

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#6
Feb 13, 2012
 

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Good Grief wrote:
Store employees didn't receive a pay cut. The company is no longer over compensating specialists. They are paying them a set amount forever in the form of a buyout of Spiffs and commissions in addition to a competitive salary which is much higher than a hourly associate. Home Depot and most retailers did this a long time ago. You should consider yourself lucky you have a job and if you don't think so become a customer!
Exactly where is my competitive salary? I made more per hour 9 years ago at another retailer doing essentially the same job. I came to blowes to get away from the stress and to just help customers get what they needed and took a huge pay cut to do so. Morons like you that just want to hate the specialist make me sick. Why do you blame the specialist for driving sales and being compensated BY THE MANUFACTURE for it.
For those stupid enough to believe this so called buy out is going to last forever, just look at what has already transpired and start your resume if you have not already.
NEDM

Pembroke, MA

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#8
Feb 14, 2012
 

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1 specialist
"These specialists have more selling , customer service skills and product knowledge then anyone else in the store and these overcompensated specialists are the reason lowes has been successful"

Well when you offer something that no other competitor has then yes it can be considered over compensating. There is no commissions or sos at HD (or employee discount for that manner). Show me another major retailer that has commissions in a box setting or in home improvement...

How do you know that all specialists knew the sell and give customer service when

1) There are no standards to become a specialist. There's no degree, experience, certification

2) There is no in store training program as a baseline to become one either.

I'd argue that much of the store management ran the company to the ground by having specialists open and close, psa's do general tasks. Also is that not all departments have specialists. Heck look at the margin reports. The highest margin in the store isn't appliances it is SOS decor products..it is nearly 80-90% margin! You can't sell appliances with a margin that high, there is way too much competition.

The appliances specialist was the most coveted position in the chain. Yet what happens when Walmart gets into appliances (they are currently testing GE ones in Texas)? Heck sweethome3d you can design your own kitchen/bath and the program is free.
1 specialist

Angola, NY

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#9
Feb 14, 2012
 

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NEDM wrote:
1 specialist
"These specialists have more selling , customer service skills and product knowledge then anyone else in the store and these overcompensated specialists are the reason lowes has been successful"
Well when you offer something that no other competitor has then yes it can be considered over compensating. There is no commissions or sos at HD (or employee discount for that manner). Show me another major retailer that has commissions in a box setting or in home improvement...
How do you know that all specialists knew the sell and give customer service when
1) There are no standards to become a specialist. There's no degree, experience, certification
2) There is no in store training program as a baseline to become one either.
I'd argue that much of the store management ran the company to the ground by having specialists open and close, psa's do general tasks. Also is that not all departments have specialists. Heck look at the margin reports. The highest margin in the store isn't appliances it is SOS decor products..it is nearly 80-90% margin! You can't sell appliances with a margin that high, there is way too much competition.
The appliances specialist was the most coveted position in the chain. Yet what happens when Walmart gets into appliances (they are currently testing GE ones in Texas)? Heck sweethome3d you can design your own kitchen/bath and the program is free.
Thats fine if they take away spiffs for the future but don't screw over current employees. I would say your jealous because your not a specialist. The manufacturer paid spiffs not lowes. If other manufacturers paid spiffs then the amounts would be higher in other departments . Oh and what about the lack of raises we got because we can make more on spiffs. Are they going to increase our hourly rate now to offset this? How about I take 900$ a month out of your paycheck and we will see how your attitude is then when your the one being hurt by this.
robbed

Cape Coral, FL

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#10
Feb 14, 2012
 

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This is all so strange. I am an appliance specialist top 5% in the region in sales, beating all my benchmarks including epps, I busted my butt for 6years in flooring to EARN the position of appliance specialist. I have 3 kids and we are a single income family. Eliminating spiffs and sos now puts my financial situation from a career job where we could put away a little money each month to qualifying for food stamps and wondering how we can afford our mortgage and health care. I can understand weeding out underperformers, but to take a top performer in the region and cut his pay by 30% does not make very good business sense no matter how you spin it.
Chris Nolan

Charleston, SC

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#11
Feb 14, 2012
 

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please all of you, look at Home Depots % of the appliance business nationwide and compare it with Lowes, There is a huge difference. But I am sure those numbers will come more closely into line now that spiffs are gone.
app spec upstate ny

Rome, NY

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#12
Feb 14, 2012
 

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embrace L E F, the way of the future
LOWES Executives Flourish
LOWES Employees Flounder
app spec upstate ny

Rome, NY

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#13
Feb 14, 2012
 

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robbed wrote:
This is all so strange. I am an appliance specialist top 5% in the region in sales, beating all my benchmarks including epps, I busted my butt for 6years in flooring to EARN the position of appliance specialist. I have 3 kids and we are a single income family. Eliminating spiffs and sos now puts my financial situation from a career job where we could put away a little money each month to qualifying for food stamps and wondering how we can afford our mortgage and health care. I can understand weeding out underperformers, but to take a top performer in the region and cut his pay by 30% does not make very good business sense no matter how you spin it.
I feel your pain and share the same story. I earned my position as appliance sales specialist. Compared to the specialist I replaced, who transfered, I have added 25-30 topline sales to his average 5 years strong as well as top EPP in region, nd in region in installed sales, 3rd in region in SOS. Just lost 28% of my pay. I am now forced to find either a part time job, and work around the LOWES schedule, or seek other employment alltogether to be able to pay my bills and support my family. The ass. who replaces me will strive to do the same, right. L E F - LOWES Encourages Failure
app spec upstate ny

Rome, NY

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#14
Feb 14, 2012
 

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NEDM wrote:
1 specialist
"These specialists have more selling , customer service skills and product knowledge then anyone else in the store and these overcompensated specialists are the reason lowes has been successful"
Well when you offer something that no other competitor has then yes it can be considered over compensating. There is no commissions or sos at HD (or employee discount for that manner). Show me another major retailer that has commissions in a box setting or in home improvement...
How do you know that all specialists knew the sell and give customer service when
1) There are no standards to become a specialist. There's no degree, experience, certification
2) There is no in store training program as a baseline to become one either.
I'd argue that much of the store management ran the company to the ground by having specialists open and close, psa's do general tasks. Also is that not all departments have specialists. Heck look at the margin reports. The highest margin in the store isn't appliances it is SOS decor products..it is nearly 80-90% margin! You can't sell appliances with a margin that high, there is way too much competition.
The appliances specialist was the most coveted position in the chain. Yet what happens when Walmart gets into appliances (they are currently testing GE ones in Texas)? Heck sweethome3d you can design your own kitchen/bath and the program is free.
Did you ever hear of a small chain called SEARS, i think they pay spiffs. If walMart entered the game with the old incentives (spiffs) they would not stand up to the service LOWES provided. Now LOWES just became WalMart, maybe I'll go there and sell appliances. At least they will still be there in 5 years, which is more than I can say for LOWES.
app spec upstate ny

Rome, NY

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Feb 14, 2012
 

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Maybe WalMart can design kitchens too. That would be good, right?
Department Manager

Acworth, GA

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Feb 14, 2012
 

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To all of you so called Sales Specialist/Order Takers, if you don't like the new L E F program then get out! This is not your company and you should keep your trap shut! I love the new program and thank it should have all been done along time ago. I am sorry for your loss of money but I don't see how people could depend on that money cause it's just not the smart thing to do.

Since: Oct 11

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Feb 14, 2012
 

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Department Manager wrote:
To all of you so called Sales Specialist/Order Takers, if you don't like the new L E F program then get out! This is not your company and you should keep your trap shut! I love the new program and thank it should have all been done along time ago. I am sorry for your loss of money but I don't see how people could depend on that money cause it's just not the smart thing to do.
Hey clueless dm, you have NO idea what you are talking about. They tell you when they make you a specialist that commissions/Spiffs are part of the compensation. If you had ever been in sales you would know this.....
Canadagirl

Caledon East, Canada

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#19
Feb 14, 2012
 

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Department Manager wrote:
To all of you so called Sales Specialist/Order Takers, if you don't like the new L E F program then get out! This is not your company and you should keep your trap shut! I love the new program and thank it should have all been done along time ago. I am sorry for your loss of money but I don't see how people could depend on that money cause it's just not the smart thing to do.
Will you feel the same when you go on salary at 3% increase which after a 50 hr work week ends up being a 18% decrease?
MDLowes

Hudsonville, MI

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Feb 14, 2012
 

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Canadagirl wrote:
<quoted text>
Will you feel the same when you go on salary at 3% increase which after a 50 hr work week ends up being a 18% decrease?
That's not happening. Try again.
calmer

West Palm Beach, FL

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#21
Feb 14, 2012
 

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Spec too wrote:
<quoted text>
Hey clueless dm, you have NO idea what you are talking about. They tell you when they make you a specialist that commissions/Spiffs are part of the compensation. If you had ever been in sales you would know this.....
Any specialist worth his salt could count on that cash. Motivation to make extra money by selling as much as you can works. If you don't see that then your inexperience is showing. And I am a dm.
american

Smithfield, NC

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#22
Feb 14, 2012
 

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I read a article today about 5 major retail chains in danger of being the next Borders, Circuit City etc. Lowes was not one of the listed chain.I will say Lowes strategy of putting their customer base out of work by stocking their shelves with Asian sweat shop made goods will destine them to failure.Sounds like their only hope is to be the last man standing. Out of work americans can't afford to shop at Lowes. Of course a certain 1% is getting filthy rich.

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