Lowe's 1999 Annual Report Download - page 20

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18
STORE PERFORMANCE PERSPECTIVE
In 1992, Lowe’s began a more detailed reporting on the transformation from a chain of small, contractor-oriented stores to a
family of modern, home-improvement warehouses. In 1999, the transformation is nearly complete as the large stores contributed, on
average, 88% of sales and 86% of operating profits. The following tables are intended to assist in understanding the impact of that
transformation.
Store group categories, presented in these two tables, are defined as follows:
1. Yards : Focused Contractor Yards
2. Small : Average of 18,000 square feet
3. Medium : Average of 54,000 square feet
4. Large : Average of more than 100,000 square feet
All stores in excess of 80,000 square feet
Large store sales are reported on both a comparable (same store) basis and new (open less than fourteen months) basis. A
relocated store is removed from the comparable store computation until the fourteenth month following its grand opening.
Table 1 Store Group Unit Totals, Annual Average
Table 2 Sales & Operating Profits* by Store Group
*Operating Profits before corporate expense and intercompany charges, interest, and income taxes.
1999 1998 1997
% of % of % of
Total Units Total Units Total Units
Yards 6% 32 7% 31 7% 29
Small 4 23 8 41 13 55
Medium 8 45 14 67 19 84
Large Comp 60 304 52 245 43 187
Large New 22 112 19 90 18 77
Total 100% 516 100% 474 100% 432
1999 1998 1997
Sales O.P.* Sales O.P.* Sales O.P.*
Yards 4% 3% 4% 3% 4% 3%
Small 2 2 4 4 7 7
Medium 6 9 12 16 19 26
Large Comp 67 72 60 64 51 54
Large New 21 14 20 13 19 10
Total 100% 100% 100% 100% 100% 100%