London, England, February 23, 2006--According to a report in the Sunday Telegraph, Lowe’s, the world's second largest home improvement retailer, is secretly plotting an assault on the European DIY market in a move that could see it swallow Kingfisher, the owner of the UK's struggling B&Q chain.
The Sunday Telegraph reported that Lowe's is in the process of appointing British headhunters to identify an individual with knowledge of the UK retail sector to spearhead its international development team. The company is thought to be keen to recruit a retail strategist from a management consultancy such as McKinsey or Bain.
The North Carolina-based retailer has 1,200 stores in the US, but none outside its home territory. However, its first non-US store is due to open in Canada next year as part of an internationalizsation program. The fact that Lowe's has asked headhunters to target an individual with knowledge of the UK retail scene is the strongest indication yet that it also plans to enter the European market.
The company could open its own stores but analysts have long speculated that it will swoop on Kingfisher, which has 600 stores in Europe and Asia. Two years ago Lowe's told investors that it was "evaluating retailing opportunities around the globe.'
A spokeswoman for the company said that Lowe's had an internal business development arm to evaluate these opportunities.
"As we continue to analyse opportunities and formulate strategy to succeed in Canada, we will continue to add additional support at the corporate level,'' she said.
Lowe's has annual sales of $36.5bn (pounds 21bn) compared with Kingfisher's pounds 7.6bn. It is in the middle of its largest ever expansion programme in the US.
