Lowe's 2000 Annual Report Download - page 15

Lowe’s Companies, Inc.
13
We’re constantly
refining our concept.
Markets change. Customers change. And Lowe’s is adapting to the needs of our growing consumer
base. We’re constantly improving our concept with customer-friendly environments and exclusive
products designed especially to satisfy the needs and wants of Lowe’s customers.
Our research tells us customers enjoy shopping our stores due to the bright store environment,
informative displays, and practical store layout. We’re able to devote more space to highly focused
merchandising efforts — providing customers with better product presentations that enhance their
shopping experience while boosting Lowe’s sales in categories such as home décor and appliances.
Lowe’s recognizes our customers may be looking for a low-cost option, a top-of-the-line solution, or
something in between. At Lowe’s they can find a comprehensive offering with clear, concise informa-
tion to easily differentiate the features and benefits associated with each product. For customers who
want even more selection, our Special Order Sales program brings hundreds of thousands of more
products into the picture.
Through our exclusive and proprietary brands, we are working to give our customers products that
have unique characteristics making them different and better than the alternatives previously available
in the market. Lowe’s Top Choice
®
Lumber, Kobalt
TM
Tools and Alexander Julian At Home
®
décor
products are only a few examples where Lowe’s has used exclusive or proprietary products to provide
customers with better value, through enhanced selection and quality at prices competitive with lesser
quality brands.
We’re perfecting logistics.
At Lowe’s we know the retailer who can move products from the manufacturer through the store
to the customer — as quickly and efficiently as possible, and at the lowest possible cost — is the retailer
who’ll reign supreme in the 21st Century. This conviction explains why inventory management and
logistics continued to be a top priority for Lowe’s in 2000, and why they remain an important focus
for 2001 and beyond.
One important component of Lowe’s inventory management plan is its network of distribution
centers, which stretches from coast to coast. With new regional distribution centers scheduled to open
in Ohio and Southern California in 2001, Lowe’s is uniquely positioned to keep products in stock at
our stores. This equates to better customer service and increased sales potential, while minimizing
Lowe’s distribution costs and inventory investment.
Our information systems are integrated with our inventory
management processes, our distribution centers, and the
internet to produce a strategic inventory management system
maximizing efficiency while minimizing supply-chain costs.
And that’s a crucial foundation for Lowe’s as we continue our
expansion in the 21st Century.
Customers have told us they want higher-end, better
quality, and uniquely different products. Exclusive
brands such as Alexander Julian At Home® ‚ are designed
to ensure Lowe’s provides products offering quality,
value and a unique sense of design to our customers.
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