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Non-Tech : Home Depot (HD) -- Ignore unavailable to you. Want to Upgrade?

To: DRL who wrote (69)	10/22/1997 7:28:00 AM
From: val carlson	Read Replies (1) \| Respond to of 1169

I, too, am concerned about Lowes competition. I'm looking to rebalance my portfolio and have concidered Lowes in the past. I'll look again at the numbers and get back to you. Lowes just opened up a huge store right down the block from B.Sq. and HD. I have a barn to overhaul and you can be sure I'll be checking all 3 out this weekend. Also in Better Home and Gardens special Fall issue was loaded with Lowes full size glossy ads, a good 75% of ad space...Hmmm? Looks like a very agressive campaign underway. Val

To: DRL who wrote (69)	10/22/1997 2:44:00 PM
From: MFahsel	Read Replies (1) \| Respond to of 1169

I think that Lowe's is making a huge mistake by going head to head with HD. Look at gross and net margins - HD beats Lowe's in both of these categories. HD also has a lower cost of funds to finance capital improvements. If the two have a price war (god forbid), HD would win! Mobile, AL has both a HD and a Lowe's. Every time I visit my inlaws there I compare the two chains. HD usually has more customers; is better organized and provides better service. The local (Atlanta) paper mentioned a meeting held yesterday between HD and 150 of the company's largest shareholders (representing 28% of outstanding stock). The shareholders were told the following: * 623 stores by end of 1997 (22% increase) * 1,100 stores by 2000 ($44 billion sales/$2 billion profit) * 26% market share by 2000 vs. 14% today * Capture additional market share by expanding reach into repair/remodeling business * Room for as many as 200 EXPO Design Centers vs. 5 today (not by 2000, I hope) * HD plans to tap professional builder market (tough sell unless they can be very flexible) * First store outside of North America to open in Chile (7/98) with two more to follow within 12 months thereafter. Martin