Lowe's 2005 Annual Report Download - page 16

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Room For Expansion
Always Improving Convenience for Customers
As lifestyles change and families expand, Lowe’s is ready to help enhance the home to meet the evolving needs of customers.
From converting the guest room into a nursery to adding a third bathroom to accommodate three teenagers, Lowe’s has customers’
expansion needs covered. To better serve our customers, we are doing some expanding of our own. In fi scal 2005, we made shopping
at Lowe’s more convenient than ever by opening an additional 150 stores in great locations, bringing the total number of Lowe’s
home improvement centers to 1,234 in 49 states. With each new Lowe’s store, we are increasing awareness of the Lowe’s brand
and winning more loyal customers.
Our expansion opportunity remains robust as we enter fi scal 2006 and is supported by favorable demographic trends, including near
record homeownership levels, an aging housing stock and the American homeowners’ continued desire to invest in their homes.
Our diligent real estate site selection process has fi lled our expansion pipeline with approximately 400 additional locations for our
117,000-square-foot (117K) and our 94,000-square-foot (94K) store prototypes, facilitating the opening of an estimated 155 new stores
in fi scal 2006. In addition, our 2007 store opening plan of 150 to 160 new stores includes an estimated six to 10 stores in Canada,
our fi rst stores outside the U.S. Our store expansion plan is primarily focused on the top 100 metro markets, which account for nearly
65 percent of the home improvement revenue potential in the United States. Approximately 65 percent of our approved locations are
in the nation’s top 100 markets, enabling Lowe’s to capitalize on the high-growth profi le of these regions. We will balance our metro
expansion with the opportunities presented in smaller markets, many of which are ideal locations for our 94K store.