A man walks past a Lowe’s store in Los Angeles, California.
Mario Tama | Getty Images
As many small businesses face challenges during the coronavirus pandemic, Lowe’s is giving them a shot to get their products on its store shelves and website.
Lowe’s CEO Marvin Ellison said Tuesday on CNBC’s “Squawk on the Street” that the home improvement retailer is teaming up with Daymond John, a star of ABC’s “Shark Tank,” to mentor entrepreneurs, listen to their pitches and narrow the pool to standouts. The initiative will ultimately culminate in a one-day pitch competition judged by Lowe’s executives and hosted by John.
The home improvement retailer has committed $55 million towards small business grants to support minority-owned and women-owned businesses and rural small businesses — many of which have struggled as Covid-19 spread, shuttered stores and created economic uncertainty.
Ellison said Tuesday that the new effort was inspired by the outpouring of interest and great need. He said Lowe’s has gotten over 800,000 applications for the grants since it began the program in May.
“The demand from this program led us to understand that there’s a lot more that we should be doing,” he said. “So we came up with an idea to try to get more products on our shelves and on Lowes.com that originate from diverse entrepreneurs.”
The new initiative is called “Making it… With Lowe’s.” Small businesses can apply for the contest from Sept. 15 through Sept. 25.
Along with spotlighting small businesses, the competition could help differentiate Lowe’s by adding a unique assortment of products that customers can’t find at other retailers. The retailer already carries some exclusive brands of power tools and other home improvement items.
Lowe’s has benefited during the pandemic, as Americans work, learn and spend more time at home. Customers have been sprucing up their lawns, replacing appliances and doing DIY projects. That caused second-quarter revenue to jump by 30% and website sales to soar by 135%.
Its shares are up nearly 38% so far this year.
Disclosure: CNBC owns the exclusive off-network cable rights to “Shark Tank.”