re feel, as opposed to the warehouse atmosphere of a Home Depot. Home Depot global expansion will be a key to their long term success, trends in global retailing are accelerating, as retailers consolidate, capitalize on the power of their brands throughout the world. While it may seem unreasonable to think Lowe’s could ever overtake Home Depot, stranger things have happened. Circuit City looked unstoppable, and Best Buy was on the brink of Bankruptcy. Now Wall Street is giving Best Buy a higher growth multiple than Circuit City’s, thanks to new sources of revenue like extended-warranty plans. But the truth is growth is ultimately a factor of management on the one hand and culture among the other things that don’t show up in the balance sheet. Again, while management seems to have devised a clever comeback plan, it may be some time before Lowe’s catches up to Home Depot.ReferencesLowe’s Companies, Inc. Declares Cash Dividend, PR Newswire, June 12, 2000In an Expansion Mode, Lowe’s Sharpens its Customer Focus, The Weekly Newspaper for the Home Furnishing Network, June 5, 2000 p19Lowe’s Companies Inc., The wall Street Journal, June 1, 2000Lowe’s Outlines Focus on Customers at Annual Meeting, Pr Newswire, May 26, 2000Lowe’s Eyes Markets for Growth, Corporate Financing Week, April 17, 2000, p3Retailing building supply industry, The value Line Investment Survey, April 14,2000, p881Lowe’s Annual Report, Fiscal Year 1999, Available at: http://www.Lowes.com/Home Depot Annual Report, Fiscal Year 1999, Available at: http://homedepot.com/Customer Service that is above and beyond, Philadelphia Business Journal, April 7, 2000 p42We’re No.1! The Market Loves Top Dogs. Should you?, Fortune, March 6,2000 p446The Home Depot reports 29% Increase in First Quarter Net Earning; Comparable Store Sales up 7%, PR Newswire, May 16, 2000The Home Depot Looks to Floor Industry; Test Store Opens in D...
