View Single Post
  #47  
Old Posted Jun 6, 2005, 9:34 PM
SSLL's Avatar
SSLL SSLL is offline
samsonyuen
 
Join Date: Apr 2005
Location: Canary Wharf->CityPlace
Posts: 4,241
I wonder where in Toronto they'll be? How many Ronas are in GTA now (hmm...)?
____________________________________
Lowe's to enter Canada
By TAVIA GRANT
Monday, June 6, 2005 Updated at 4:32 PM EDT
Globe and Mail Update

Lowe's Companies Inc. confirmed Monday it plans to open its first Canadian store in 2007, vying with Rona Inc. and Home Depot Inc. in the Canadian home-improvement market.

The Mooresville, N.C. company said it will open as many as 10 stores in Toronto, its first venture outside the U.S.

The Globe and Mail reported last week that Lowe's was believed to be discussing deals for superstore sites and that an announcement was expected today.

The news comes as Canada has seen a multi-year housing and construction boom, spurred by low interest rates and easy credit — a pace of growth some economists say won't last. On the company's conference call, executives said Lowe's growth isn't traditionally affected by changes in the housing market.

“The Canadian economy is vibrant, stable, and our evaluation of the market indicates Lowe's can deliver value and provide meaningful choices to the Canadian consumer,” Greg Bridgeford, executive vice-president of business development, on the call. In the past year, the company has recorded more than 400,000 transactions from Canadians at Lowe's U.S. stores, he added.

The 59-year-old company plans to open six to 10 stores in Toronto in 2007, creating about 1,700 jobs. Each store will cost about $20-million and will be, on average, about 15,000 square metres.

Lowe's aims to differentiate itself from competitors primarily through high-quality customer service, the company said on the conference call.

Long-term plans include the potential for as many as 100 stores in Canada “as the company continues to evaluate additional opportunities for future expansion,” Lowe's said.

Asked about whether the company has been in partnership talks with Rona, an official said that its “primary and traditional way of expansion is through organic expansion.”

Lowe's will establish an office in the Toronto area later this year. It named Doug Robinson president of Canadian operations. Mr. Robinson, 45, joined Lowe's in 2003 after more than 20 years experience in the home improvement industry, the company said.

Lowe's had 2004 sales of $36.5-billion (U.S.) and operates more than 1,100 home-improvement stores in 48 states. It is the second-largest home-improvement retailer in the world.

Lowe's shares rose 97 cents to $57.93 in New York and Home Deport rose 23 cents to $39.95. In Toronto, Rona shares fell $1.83 (Canadian) or 7.1 per cent to $23.85.
Reply With Quote