Lowes Adds New DC in Oregon and Expands Facilities in Georgia, North Carolina and Indiana

Lowe's Companies, Inc. (Mooresville, N.C.) announced that it will invest approximately $150 million to construct a new regional distribution center in Lebanon, Ore., and expand three existing distribution facilities in Valdosta, Ga.; Statesville, N.C. and North Vernon, Ind. The expansions will reportedly improve the company’s ability to supply its growing store base nationwide, in addition to handling additional products, including major appliances as part of the company's rapid replenishment distribution initiative.

The expansion plans include the opening of 150 new stores in fiscal 2005 and between 150-160 stores in fiscal 2006. Lowe's distribution network includes 11 regional distribution centers nationwide.

"This investment in our distribution network will enhance Lowe's ability to execute our commitment to have the right product in our stores for our customers, when they want it and to deliver those products at everyday low prices," said Mike Mabry, Lowe's executive vice president of logistics and distribution. "With R3, we're moving safety stock out of the stores and into the distribution centers, while at the same time increasing in-stock levels. This will allow our store employees to remain customer focused, leading to improved service and customer satisfaction."

Construction is already underway on all four projects. The 1.4 million square-foot Oregon regional distribution center is expected to become operational in 2007. The three distribution center expansions, totaling 1.4 million square feet, are expected to be online by spring 2006.

Source: Lowe's Companies, Inc.

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