Lowe's 1999 Annual Report Download - page 5

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Robert L. Tillman
Chairman and Chief Execut ive Officer
April 21, 2000 Wilkesboro, NC
Best wishes,
the year as products are introduced on the
lowes.com web site.
Understanding w hat the customer w ants
and needs is Lowe’s top priority. That is w hy last
year w e created new avenues through w hich w e
can better serve our customers. We developed
relationship programs such as Lowe’s Garden
Club, Low e’s Woodw orker’s Club and Lowe’s Kids
Clinics to show customers that w e share their
enthusiasm for home improvement. M oving
forw ard, these burgeoning programs allow us to
effectively interact w ith these special customers –
giving them inspirations and solutions – building
loyalty in the Lowe’s brand.
We also steadily updated our award-
w inning w eb site (lowes.com), so customers can
find the home improvement advice they need –
no matter when they need it. Our site in 1999
w elcomed nearly four million hits each week and
generated ten times the online gift card sales of
1998. Other linked sites – such as
kobalttools.com and harborbreezefans.com –
tested the opportunity to sell Low e’s branded
products online, allowing us to gather experience
and know -how about this emerging retail
channel. In the next several months, Low e’s
Internet Business Group w ill launch the next
generation of home improvement e-commerce: a
redesigned Lowe’s w eb site that w ill combine our
existing Internet efforts with the convenience of
online shopping.
Whether w e receive customer feedback in
our stores or over the Internet, w e respond
proactively … assuring customers that Low e’s is
committed to providing solutions to their home
improvement needs. We also recognize that
properly training our associates – as w ell as
respecting their talents and rewarding their
efforts – results in a more productive, more
effective workforce. Quality, hardworking Lowe’s
associates remain part of the Lowe’s family for
years, often advancing to leadership positions,
further strengthening our ability to serve our
customers. M ost are shareholders of the
company via Low e’s Employee Stock Ow nership
Plan (ESOP), through w hich Lowe’s associates
ow n approximately eight percent of our stock.
We are sincerely appreciative of our 80,000
associates because Lowe’s could not have
achieved such substantial growth w ithout them.
In the years to come, there will be even more
opportunities – almost 200 positions in each new
Lowe’s store. Our challenge lies in recruiting,
training and retaining new associates that are as
dedicated as those who currently demonstrate
Lowe’s commitment to service. On our end, w e
w ill continue to seek associates’ feedback and
enhance our employee benefits to ensure that
Lowe’s is not only a great place to shop, but also
a great place to w ork.
As w e enter the new millennium, the
challenge to our associates is to again surpass
our achievements, to break new ground, both
literally and figuratively, and break aw ay from
the competition. Our research provides
compelling evidence that our existing store
format is preferred by the customer yet w e are
not w illing to rest on our accomplishments. The
retail industry in this new millennium w ill
constantly evolve. As Low e’s embarks upon a
new era in home improvement retailing, we look
forw ard to improving home improvement.