Lowes Stagey

Company Overview

The first Lowe’s store first opened its doors In North Carolina in 1946. The co-owner of North Wilkesboro Hardware Company, Carl Buchanan, had a bigger vision than his other partners. So, he decided to buy out the other owners. Mr. Buchanan envisioned opening a chain of hardware stores, as he anticipated a huge building boom after World War II. By 1962, there were 15 stores that sold commodity type products to new home builders.

The chain continued to grow and by 2005, there were almost 1000 stores with over 99.5 million square feet of selling space making Lowe’s the second largest home improvement retailer in the United States. With Lowe’s intensive growth strategy they were able to 46 stores in less than two years. They currently have two prototype stores. The smaller stores are 94,000 square feet while the larger stores are 116,000 square feet. Lowe’s carries a variety of home improvement products including, plumbing, electrical, building materials, appliance, and garden to just name a few. Lowe’s serves both retail and commercial customers. The retail customers are primarily do-it-yourself homeowners and make up approximately 73% of the company’s sales. The commercial customers include contractors, electricians, landscapers, painters, and other maintenance professionals.

External Environment

The Natural Physical Environment of the home improvement industry presents both threats and opportunities for Lowe’s. Instances of natural disasters, such as snow storms, hurricanes, etc., could impact the quality or cost of some of Lowe’s products, such as lumber or the home and garden goods. Transportation delays could also be a result. However, these same natural disasters actually are opportunities, as the demand for certain products could increase. For example, if a hurricane or tornado hit a certain region. The people of that region would need products to protect or possibly rebuild their dwellings.

The current Societal Environment presents...