Expansion check

In 2008 Lowe’s, the second-largest home improvement retailer in the United States, will open only about 120 new stores and expand its sales area by 7 to 8 per cent. As recently as September 2007 the group’s plans for this year envisaged 135 to 145 new openings. Management is assuming sales growth of around 1 per cent for this year, and expects a like-for-like decline of 6 to 7 per cent. Lowe’s has announced the opening of 75 to 85 stores for 2009, which amounts to 5 per cent growth in retail area. Sales are expected to grow by 2.5 to 6.5 per cent (-3 to +1 per cent like-for-like).