Lowe’s is getting out of the product side of the smart home business as part of what it calls a strategic reassessment.
The retailer announced it will be selling off its Iris smart home platform to “focus on its core home improvement business and improve profitability.”
Iris by Lowe’s, which connects with more than 75 smart devices, provides consumers with IoT capabilities to manage, monitor and maintain their homes, all controlled via mobile app.
“Lowe’s intends to sell the Iris business and is in the process of finding a buyer that remains committed to providing customers with the same level of service they have come to expect from Iris,” a Lowe’s spokesperson told the AI & IoT Daily. “We do not have timing or additional details to share at this time, and it remains business as usual. There are no changes to Lowe’s support of the brand, product or service as we search for a buyer.”
While Lowe’s plans to sell its Iris business, it will continue to sell smart home products.
“We will continue to carry Iris and other smart products on our shelves,” said the Lowe’s spokesperson. “However, we will focus on the retail side of the Iris business, not on supporting our own smart-home platform. The smart home category continues to be an important part of our customers’ home improvement journey, and Lowe’s remains committed to carrying the breadth and depth of smart home products and brands to meet our consumers’ needs now and in the future.”
Lowe’s was the first company to target the mass consumer market with a broad home automation solution using the open platform by Iris for devices from different brands to connect with each other.
The company plans a write-down of $14 million related to the decision to exit its Iris Smart Home and Alacrity Renovation Services units.
“Our top priority in the third quarter was positioning Lowe’s for long-term success by identifying underperforming or non-core businesses and stores for divestiture,” stated Marvin R. Ellison, Lowe’s president and CEO. “With our strategic reassessment substantially completed, we can now intensify our focus on the core retail business.”
In 2015, Lowe’s joined the Z-Wave Alliance, a global consortium of more than 300 companies, with its Iris smart home solution, which the retailer launched in 2012.