Lowe's keeps growing in sales, size, service

Ak.",*'r""# fJffi ",:TIi?l

dealing only in the merchandising of building materials, lumber and hardware, Lowe's Companies, Inc., North Wilkesboro, N.C., is determined to be No. I in all ways.

With 234 stores operating in 19 states, they plan to add from l0 to 20 new units in the same geographical area during 1983. All will be located within 50 miles of present stores. The location for a new store must maintain at least 30,000 households with a stable economic base and be close enough to an established Lowe's to profit from spill over marketing with radio, tv and newspaper advertising.

In the pa.st, Lowe's has frequently taken over edsting stores and reformatted them to their use. They also have recently found their way into shopping centers.

Total sales volume for 1982 was $1,025,000,0O0. Retail customer sales accounted for approximately 5590 of this total. To help boost that sales figure, the firm is implementing a new merchandising strategy called RSVP for Retail Sales Volume and Profit. As part of the program, 134 stores have been retrofitted to a floor plan that places emphasis on the four corners of the store. Eventually all stores will incorporate the plan although with some adaptation in each unit. All new units are builtwith the RSVP layout.

This plan places a fashion plumbing display of kitchen and bath fxtures and accessories including vignettes in the right front corner ofthe store. The right rear corner is devoted to home fashions including floor coverings, wall coverings and lighting fixtures. The left front corner is a home entertainment center with televisions, radio, stereo, video cassette recorders, video games and computers. The left rear corner houses a millwork arborof windows, doors and related products.

Sales and service are centered in the inner portion of the race track sales floor which connects the four corners and adjacent departments. Lowe's has no nursery or automotive sections.

The RSVP formula is adapted to suit the size of the store. For example, the millwork arbor comes in three basic versions, three, four and

February,1983

HIGH STYLE establishes the mood ol the home fashion corner where wall covering, flooring and lighting are located. A central service desk (lower photo) located in the middle ol the store provides a ready source of help for retail customers. Contractors are served from a seoarate office. five rows of display to accommodate the size of a particular store's sales floor.

When locating a new store, the real estate and expansion team looks for a minimum five acre site. A new store is designed and built with 13,250 sq. ft. of sales floor,2,250 sq. ft. of offices, 17,500 sq. ft. of warehouse,

Sfory at a Glance

Lowe's reshapes merchandising with RSVP .. proiects 10 to 20 new stores this year. consistent low prices private label credit card.

6,000 sq. ft. of loading docks and adjacent storage and 11,250 sq. ft. of accessory structures for storage, all totaling 50,250 sq. ft.

Buying for all stores is done centrally and delivered by fleets oftrucks from the central office warehouse. Merchandise is adapted regionally. Customers also may order items not stocked locally. Lowe's catalog is used only for reference at present, but management is looking into the possibility of a catalog sales department.

Low prices are policy at Lowe's. They consider buying right and giving the customer a price break as an ongoing promotion. The motto

(Please turn to page 21) ffilrq#$:t$!ii.rl.l$S.!r:',:i,l:.ji*il,.iilitit$${s-\-l}.f,}_1i,,i'ii'l',$$iili.it..nl:liliiiillili:l:i:lli

C0BP0RATE IMAGE is lostered by the easily recognized appearance of all Lowe's stores. Sign is idenlical on all lree standing buildings with the L always measuring 10 ft. high.0ther standard featufes include 77 paved parking spaces, a minimum five acre site wilh fence and security lights.

Housing starts in 1982 were 1,060,600, down from 1,084,200 in '81, hitting the lowest level in 36 years .. . starts declined in every area of the country except the South, where they rose 5.590 it is widely expected that starts will be up this year from '81 &'82 levels .

In Dec. (latest figs.) housing starts slumped I3 Vo to a seasonally adjusted annual rate of 1,222,W0 units from Nov.'s revised 1,404,000 annual pace single family home nos. dropped 9.4V0, multi-family slippedl9Vo...

Some Southern areas outpaced the rest of the South: Dallas County (Tx.) housing starts in Dec. sel a record high, with single family starts up a whopping 14090 from Dec. '81 permits for future construction rose a remarkable 280V0 from the year earlierfigures...

Neighboring Fort Worth, Tx. (Tarrant County) had the strongest mo. in the 23 years they've kept records: Dec. housing starts rose I 77 9o over the same period a year earlier, bldg. permits shot up a startling 245V0 over the year earlier figure . .

W.P. Stephens Lumber Co., a 76-year-old Marietta, Ga., landmark, has been purchased by Ed Inman of Atlanta. no name change planned Roy T. Hoke Lumber Co., Stillwater, Ok., is adding a 10,000 sq. ft. retail hardware store . . Rodgers Lumber and Supply Co., Hot Springs, Ar., has added a 4,000 sq. ft. decoratingcenter...

Arling Lumber Co. has acquired the American Can Co.'s distribution yard on the Southern RR at Ludlow, Ky., to work in tandem with their Crescent Springs, Ky., distribution center

Burlington Northern will add I 50 high capacity boxcars and 300 centerbeam flatcars in the 2nd quarter for forest product customers in the Southeast and Southwestmarkets...

Payless Cashways plans to add three stores in the Houston Tx., market . The Home Depot, Atlanta, Ga., is adding two new stores in the Orlando, Fl., area; one in a renovated building at Eastland Center and one in new quarters at Oak Tree Plaza . . Diamond International retail div. will become part of Diamond US,4 when the planned merger is completed . .

Holly Hill Forest Industries, Inc., Holly Hill, S.C., is adding a boiler/steam dry kiln to their CCA wood treating facility . .

Monroe Wood Products, Inc., has moved its offices to Burlington, N.C., from Tampa, Fl. Raines Lumber Co., Birmingham, Al., has opened a CCA treatingplant...

W.R. Groce has purchased a discount store in Metairie, La., as a site for Handy City outlet #3 in the New Orleans area . . The H.E. Leonhardt Lumber Co., Oklahoma City, Ok., received a 75th anniversary citation from the Oklahoma City C. of C.

Scotty's opened its l0oth retail store, at Greenacres, Fl., last month, one of the eight to l0 they will add this year, including a unit in the J.M. Fields building, purchased for $3 million plus, in Sl. Petersburg, Fl. . . a special promotion at the Auburndale Scotty's raised $3,496 for the Little League Football Association Wickes Lumber Co., Rock Hill, S.C., is distributing a free 105 p. d-i-y home improvement project guide to its customers Clinton Lumber Co. and Elk Sup- ply Co., Clinton, Ok., donated materials for improvement of the Dripping Springs Boy Scout Camp near Arapaho

Overhead Door Corp., Dallas, Tx., has agreed to acquire Waldon Inc., Fairview, Ok. . . Lrfestyle Distributors /nc. is now distributing Tanaka outdoor power equipment from its Louisville, Ky., warehouse Pro Hardware is launching an Early Spring Dollar Days promotion this mo. . .

Southern forest-based companies planted almost a billion trees in the l98l-82 season, Al. and Ar. ranking high a $75,000 wood frame Pow-RSaver home being built with contributions of building materials and labor will be auctioned in June to benefit a Tampa, Fl., public tv station The American Institute of Kitchen Dealers has changed its name to the National Kitchen ond Bath Associstion.