Lowe's 2006 Annual Report Download - page 8

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4
THE DOITFORME GENERATION:
Installed Sales Have Never Been More Timely
Lowe’s knows the importance of under-
standing customers’ changing preferences
and offering innovative products and
solutions to meet their needs. One com-
pelling trend we have seen is the changing
preference of baby boomers to do-it-for-me
(DIFM) from do-it-yourself (DIY).
Our Installed Sales strategy addresses
the needs of customers who prefer to
outsource their home improvement
projects. We oer more than 40 categories
of installation services and have a network
of more than 10,000 installers who perform
reliable, professional installation. The
relevant Installed Sales market is approxi-
mately $165 billion in labor alone. Our
commitment to continuously improve the
customer experience by managing the
installation at the store level with a
dedicated Installed Sales team positions
us to capitalize on this opportunity.
Our in-home selling model also
positions us to benet from the growing
DIFM segment. Currently, we are testing
this model and will continue to monitor
its performance in 2007. We will continue
to evaluate other opportunities to increase
Installed Sales.
In 2006, Lowe’s Installed Sales grew
9%, outpacing overall Company sales
growth. Over the past three years, sales
have grown at a compounded annual
growth rate of 22%.
Installed Sales
$ in Billions
$2.0
$2.6
$1.1
$1.6
02 03 04 05 06
$2.8
Our Installed Sales growth continues to be
fueled by evolving demographics and the
strong DIFM phenomenon in the U.S.