Lowe's To Build Smaller Stores

Mooresville, NC, Sept. 24, 2008--Lowe's Cos. Inc. said Wednesday it is scaling down the size of most new stores and considering even smaller locations in some rural areas to improve efficiency.

Company officials told investors at the company's annual meeting that new stores in medium and large markets will be about 103,000 square feet -- roughly 19,000 square feet smaller than many of its locations today.

The new format will help Lowe's cut capital outlay costs by almost $2 million per store.

"As we go forward, we can better match the right store with the right market," said Larry Stone, the company's president and chief operating officer.

Lowe's is also testing a 66,000-square-foot store in rural North Carolina, featuring a smaller selection of items and a drive-thru lumber yard.

The company, which originally planned to open 140 stores this year, said Wednesday it has reduced that forecast to 120.

Next year, Lowe's will slash the number of stores it opens even further, opening  75 to 85 new sites -- including seven locations slated for Mexico and Canada.