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Doug Marrelli. Manager - Lowe’s Global Sourcing. Global Purchasing – Local Retailing. Agenda. Global purchasing – Some things are different overseas compared with the United States Local (USA) – How different are things? Lowe’s – Information Lowe’s secret

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doug marrelli
Doug Marrelli

Manager - Lowe’s Global Sourcing

agenda
Agenda
  • Global purchasing – Some things are different

overseas compared with the United States

  • Local (USA) – How different are things?
  • Lowe’s – Information
  • Lowe’s secret
  • Local retail customer is #1
  • Global Sourcing challenges
  • Changes – Then and Now
  • Q & A
local usa

Local USA

Some things at home that make you go hhhmmmmmm

lowe s information
Lowe’s Information
  • Lowe’s started in North Wilkesboro, NC

in 1946

  • Over 40,000 skus stocked in an average

Lowe’s store

  • Average over 14 Million shoppers per week
  • Approximately 215,000 employees
  • Over 1,550 stores open

(over 176 Million square feet of retail selling space)

lowe s secret
Lowe’s Secret
  • Who makes most of the purchases for the home?
lowe s 2007 stats
Lowe’s 2007 Stats
  • $48.3 Billion Revenue
  • Ranked #48 on Fortune 500
  • Opened store in Vermont – 50th state
  • Became international retailer – opened

stores in Canada

  • Opened 153 stores in 2007

(which equates to opening a new store each and every 57 hours)

lowe s near future
Lowe’s - near future
  • 2008 – Plan to open another 120

stores

  • 2009 - Plan to open retail stores in

Mexico

  • Always looking for new opportunities
lg sourcing inc
LG Sourcing, Inc.
  • Started in 1997
  • Wholly owned subsidiary of Lowe’s

Companies, Inc.

  • We have offices overseas staffed with

LG Sourcing, Inc. employees

  • Just makes sense to buy direct from

manufacturers, as we have continued to grow

local retail customer is 1
Local Retail Customer is #1
  • Customers demand good valued product

(what they want, when they want it)

  • More and more good value retail

products are manufactured overseas

  • Need to understand what the local retail

customer wants, find it overseas

  • Takes some digging
global currency issues
Global currency issues
  • 1/01/07 1 Euro = us$1.32
  • 5/20/08 1 Euro = us$1.57
  • Roughly 19% “increase”
  • 1/01/07 1 RMB = us$0.12
  • 5/20/08 1 RMB = us$0.14
  • Roughly 17% “increase”
  • We buy in us$, overseas vendors pay for raw materials in local currency
china sourcing pressures
China – sourcing pressures
  • Exchange rates
  • Raw material costs
  • New Labor laws
  • VAT rebate changes
other global sourcing options
Other global sourcing options
  • Vietnam
  • Thailand
  • Malaysia
  • Cambodia
  • Etc.
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