The company has successfully extended its business operations all across America (1649 outlets) and Canada (11 outlets).
Lowe’s, after considering the statistics provided by different relevant institutions estimated that US home improvement retailing market is worth more than $695 billion including both product demand and installed labor opportunity. However, due to the economic downturn within USA, the market size reduced by 7% in 2008. It is also estimated that the market will show some improvement in upcoming 2009 and demand will rebound in late 2010 or early 2011 once the recession is completely over. Lowe’s faces competition with other plumbing, electrical, hardware and electrical manufacturers plus suppliers and with merchandise stores, warehouses and e-businesses. Taking this into account as well tough economic conditions, Lowe’s paid special attention to adopting innovation centered approach to update its machinery by employing modernized and sophisticated technology, improving the store-outlook, productivity and efficiency within the stores by including information systems and store expansion so that it could cater customers all across USA. It must be pinpointed that better employment opportunities and subsequent increase in real personal income, growing housing sector and property ownership are the major determinants that contribute to higher sales. Unemployment rate of 5.7% and negative growth in property sector did affect the sales but the expansion policy (115 new stores in 2008 117,000-square-foot (117K) and 103,000-square-foot (103K) stores for large markets and a 94,000-square-foot (94K) store to serve smaller markets) of top management saved Lowe’s from the negative consequences because of the contribution from new stores in sales revenue that dropped by 7.2%. This reduction would have easily crossed 10-12% if this expansion policy had not been adopted. Expenses were