Lowe's 2009 Annual Report Download - page 6

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do-it-for-me, or DIFM, with the cost
savings of doing it themselves. A good
example of this change in consumer
behavior is painting, one of the top DIY
projects. To save money, many consumers
are painting their own rooms. With
this in mind, our stores are staff ed with
knowledgeable employees to help
ensure we consistently off er customers
all the supplies and advice needed to
successfully complete their projects.
Over the past 10 years Lowe’s store
base has increased from 550 stores
to 1,710 at the end of fi scal 2009.
Going forward, how do you think
about your expansion opportunity?
BRIDGEFORD: We take a very
deliberate approach to store expansion
and have a disciplined real-estate
approval process that looks to ensure
we’re deploying capital that will achieve
great returns for shareholders. We’re
not going to open stores for the sake
of opening stores.  at said, there are
many markets today that are under-
served by Lowe’s. While current con-
ditions in the housing market and the
economy suggest a measured approach
to expansion, we see the opportunity
to add 40 to 45 stores in 2010, and
the opportunity to increase our store
count to as many as 2,400 in North
America over time. Included in our
2010 new store openings are our
fi rst two stores in Mexico in February
Robert Niblock
Chairman of the Board and Chief Executive Offi cer
Greg Bridgeford
Executive Vice President – Business Development
and an additional eight to 10 stores
in Canada.
In 2009, Lowe’s entered into a joint
venture (JV) with Australian
retailer Woolworths. In light of
that announcement, what is your
international expansion strategy?
NIBLOCK: Our approach to
expansion remains unchanged: the
investment must be in the best long-
term interest of our shareholders.
Our investment in this JV is an
opportunity for Lowe’s to enter an
attractive home improvement market
with Woolworths, a world-class retailer
with deep roots in the Australian and
New Zealand markets.  is JV is a
great opportunity for us to provide a
diff erentiated experience for Australian
consumers built from the foundation of
our home improvement expertise along
with Woolworths market knowledge.
More broadly, our approach to
international expansion mirrors our
approach to any deployment of capital.
It must generate appropriate returns
for our shareholders. Generally, there
are additional risks present when
entering new markets, but our rigor-
ous market assessment helps ensure
we are identifying the right locations
to mitigate those risks.
Regional Distribution Centers Existing Stores New Stores 2009