Lowe’s takeover of Orchard

Takeover in the USA: Lowe’s acquires Orchard Supply Hardware, an insolvent DIY chain, for almost US $ 205 mio and plans to continue to operate at least 60 of the current total of 91 stores. Orchard is headquartered in San José, California, and operates the majority of its neighbourhood and garden stores in this state. These stores are “a natural complement” to Lowe’s big boxes, in the words of Lowe’s CEO Robert A. Niblock. A press statement reveals that the number two in both the American and global DIY markets is going for expansion by means of the smaller format, so reaching further customers in the heavily populated state of California, where the company is underrepresented, with only 110 outlets there so far. Orchard is to continue to function as an autonomous business unit under the current management team. The Orchard stores have an average sales area of 3 400 m² and concentrate heavily on paint, maintenance and garden product ranges. Last year they recorded sales of US $ 657 mio. The company belonged to the US retailer Sears until the end of 2011.