New size

Lowe’s, the number two in the US home improvement business, has altered its store concept for catchment areas of up to 30 000 households. Whereas DIY stores of around 3 000 m² were previously regarded as relatively big units in such markets, the company now wants to build stores of almost 9 000 m² in such areas. The product assortment will be smaller than in the big boxes and concentrate on best sellers. Lowe’s estimates that such a store should cost $ 12 mio to build and another $ 3.5 mio to stock, and should produce sales of between $ 20 and $ 25 mio. This year should see the opening of about 25 of these smaller stores, with 70 planned for next year as well.