Lowe's 2013 Annual Report Download - page 13

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5
to further simplify the shopping experience. In addition, we also operate 72 Orchard stores that serve similar customers as the
Lowe’s home improvement store, but in more densely populated markets.
Online
Through Lowes.com, Lowes.ca, ATGstores.com and mobile applications, we seek to empower consumers by providing a 24/7
shopping experience and help reduce the complexity of product decisions and home improvement projects by providing online
product information, customer ratings and reviews, online buying guides and how-to videos and information. These tools help
consumers make more informed purchasing decisions and give them confidence as they undertake home improvement
projects. Providing mobile technology and applications to customers and to our associates is an important step towards
seamless and simple experiences, and allows us to participate in the evolution to mobile technology. In 2013, sales through our
online selling channels, which include Lowes.com, Lowes.ca and ATGstores.com, accounted for approximately 2% of our total
sales. We also enable customers to choose from a variety of fulfillment options, including buying online and picking up in-
store as well as parcel shipment to their homes.
On-Site
We have on-site specialists available to retail and Pro customers to assist them in selecting products and services for their
projects. Account Executives ProServices meet with Pro customers at their place of business or on a job site and leverage
stores within the area to ensure we meet customer needs for products and resources. Our Project Specialist Exteriors (PSE)
program is available in all Lowe’s stores to discuss exterior projects such as roofing, siding, fencing, and windows, whose
characteristics lend themselves to an in-home consultative sales approach. In addition, our Project Specialist Interiors (PSI)
program is available in certain locations to provide similar consultative services on interior projects such as kitchens and
bathrooms.
Contact Centers
Lowe’s has two primary contact centers which are located in Wilkesboro, NC, and Albuquerque, NM. These contact centers
provide direct support to Lowe's customers by tendering sales, coordinating purchase deliveries, facilitating repair services, and
answering general customer questions via phone, e-mail, social media, or letters.
Employees
As of January 31, 2014, we employed approximately 167,000 full-time and 95,000 part-time employees. No employees in the
U.S. or Canada are subject to collective bargaining agreements. Certain employees in Mexico are subject to collective
bargaining agreements. Management considers its relations with employees to be good.
Seasonality and Working Capital
The retail business in general is subject to seasonal influences, and our business is, to some extent, seasonal. Historically, we
have realized the highest volume of sales during our second fiscal quarter (May, June and July) and the lowest volume of sales
during our fourth fiscal quarter (November, December and January). Accordingly, our working capital requirements have
historically been greater during our fourth fiscal quarter as we build inventory in anticipation of the spring selling season and as
we experience lower fourth fiscal quarter sales volumes. We fund our working capital requirements primarily through cash
flows generated from operations, but also with short-term borrowings, as needed. For more detailed information, see the
Financial Condition, Liquidity and Capital Resources section in Item 7, “Management’s Discussion and Analysis of Financial
Condition and Results of Operations”, of this Annual Report on Form 10-K.
Intellectual Property
The name “Lowe’s” is a registered service mark of one of our wholly-owned subsidiaries. We consider this mark and the
accompanying name recognition to be valuable to our business. This subsidiary has various additional trademarks, trade names
and service marks, many of which are used in our private brand program. The subsidiary also maintains various Internet
domain names that are important to our business. We also own registered and unregistered copyrights, and maintain patent
portfolios related to some of our products and services and seek to patent or otherwise protect certain innovations that we
incorporate into our products, services, or business operations.
Environmental Stewardship
Lowe’s recognizes how efficient operations can help protect the environment and our bottom line. We examine our operations
regularly to deliver efficiencies in energy and water use, fuel consumption, and waste and recycling. We also invest in
technology that will help us operate our facilities more efficiently and environmentally responsibly. For example, at our