Lowe's 1998 Annual Report Download - page 3

To Our Shareholders
Bob Tillman at Lowe’s National Sales Meeting
Better is Good –
But, Best is Better.
At Lowe’s, we continually strive for excellence —
in our stores, in our product offering and in our people.
In 1998 these efforts paid off handsomely for
Lowe’s and our shareholders. We topped $12 billion in
sales, an increase of 21% over
last year, while serving more than
four million customers weekly.
We opened 76 new stores in
1998 for a year-end store count
of 484 stores. We staked out new
territory, opening our first stores
in Connecticut and New Jersey,
the 26th and 27th states where
Lowe’s puts customers first.
We also had a stock split in
1998, the tenth split in Lowe’s
52-year history. When all was
said and done, we ended the year
with record earnings of $482.4
million, up 35% from 1997.
In April of 1998, we an-
nounced our West Coast expan-
sion plans. Soon thereafter, we
opened an office in California to
chart Lowe’s course for success in
the western U.S., where we’ll open more than 100
stores over the next three to four years.
On April 2, 1999 Lowe’s finalized its merger with
Eagle Hardware & Garden, an integral part of our
westward expansion. At the close of fiscal 1998, Eagle,
based in Renton, Washington, operated 36 stores in ten
western states (see page 11).
Eagle is one of the most respected names in home
improvement retailing, with successful stores and more
than 6,000 well-trained employees. Incorporating
Eagle’s employees and stores into the Lowe’s family
strengthens and accelerates our entry into the western
United States — especially in a number of key metro-
politan markets.
The success that we experienced during 1998
reflects our commitment to customer service and the
positive impact of three key initiatives that were
enhanced this past year. These
programs focused on Installed
Sales, Special Order Sales and
the Commercial Business
Customer.
Lowe’s performs extensive
research and demographic
tracking about our customers
and their needs. We’re well
aware of trends such as the
aging baby-boomer population,
the fast-paced families of today
who are struggling to balance
limited time with needed home
improvements, and a nationwide
housing stock that will need
more and more maintenance
and repairs as it ages.
Combine all these factors,
and you have a significant
portion of the population that
needs home improvement but often does not have the
time — or the inclination — to undertake those
projects. Lowe’s research shows that 41% of our
customers say it’s important to them that we arrange
experienced or professional help on some projects.
We realize we have an opportunity — almost an
obligation — to better serve this large segment of
customers. Therefore, in May of 1998, we rolled out a
comprehensive Installed Sales program, through which
we now install more than 20 major product categories
— from flooring to countertops to garage doors.
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