The U.S. is just not big enough to hold Lowe's. Previously, the world's second largest home improvement chain announced plans to expand north into Canada (it plans to open up to 10 stores in the Toronto area this year) and now the company is taking its successful retailing concept south of the border with up to five new stores planned to open in Monterrey, Mexico in 2009.
"For several years, we have been evaluating opportunities to serve consumers in vibrant home improvement markets outside the United States," said Robert Niblock, chairman and CEO of Lowe's, in a company press release. "With homeownership rates in the market growing at a rapid pace, we see Monterrey as a tremendous opportunity to offer Lowe's products and services to homeowners and commercial customers in a superior shopping environment with customer service that is recognized as among the best in retail."
The new stores, which will cost up to $20 million per location to build, will bring 800 new jobs to the area, according to a Lowe's press release.
Lowe's has established a headquarters office in Monterrey, with Francisco Fernandez, vice president of Lowe's-Mexico, responsible for getting the company up and running.
Mr. Fernandez has been with Lowe's since 2002. Previously, he spent 16 years working in the home improvement sector including seven with Total Home (Alfa Group) in Monterrey.
Discussion Questions: What are your thoughts about how Lowe's is going about its international expansion? How will Lowe's approach to business translate into Canada and Mexico?