Lowe’s Niblock Targets 2,000 U.S. Locations
Q: Like many retailers, Lowe's is expanding into international markets, including Canada this year and Mexico in 2009. How will globalization help Lowe's?
A: Obviously, we're only going to expand into any country if we think there's a chance at a good return for our shareholders. Canada is a great market. There are more challenges in Mexico, but it's a changing market.
We think we can build up to 2,000 stores in the U.S.--I don't believe you--[put as many stores as possible in] the whole U.S. market and then say "What's next?" Ninety percent of our focus is still in the U.S., but we're looking at other options all over the world.
Q: Will that growth slow as you approach 2,000 stores, and are you exploring options such as smaller stores to get more penetration?
A. Naturally, it's going to slow down. But as we get further along, the 2,000 [target] may become 2,200.
We are looking at some smaller store ideas. We prefer our 90,000-square-foot model, which does about $20 million [in annual sales]. But if there were a smaller store model that did, say, $15 million or $16 million and was a good return for our shareholders, we'd consider it.
Q: How are you affected by the changes at Home Depot, including the ousting of [former CEO] Robert Nardelli and its decision to sell or spin off its wholesale operation?
A: We haven't wavered, and what they're doing isn't going to change our focus.