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[GWL]: Big Boxes vs. Independent Garden Centers


Here is clip from C. Miller's weekly dirt newsletter:
More competition looms. Lowe's CFO Robert Niblock said the company
projects an 18% increase in revenue in fiscal 2002 and 19% in 2003. The
projection is based on plans to open 123 new stores during FY 2002. The new
stores will be 17%-18% larger than the average size of its most recent
stores. In 2003, Lowe's plans to open another 130 stores and increase
average square footage by 16%-17%.
My first thought was "when is this going to stop?"  How big can any one
company get?  Then I realized, check me on this, if you take the space
allocated to lawn and garden in the biggest Lowes store, it is really not as
big as the average sized quality independent garden center (inside and
outside space).  The garden center has more space for more plants, often has
a gift section, often a much bigger book section, and nicer staff.  They
lose on the size of the pesticide and fertilizer section and probably on the
tool section.  Since I am committed to helping the independent garden
centers survive and grow, I suspect my analysis is biased off the wall.
Still, I'm not worried about Lowe's expanding like that.  They are really
going after Home Depot, not the independent garden centers.
Jeff Ball
This darned list is too interesting. I've got to get back to work.  Please
start some dull threads somebody.  Save me from this obsession (grin)

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