Lowe’s Heads Down Under

Lowe's Cos. Inc. (Mooresville, N.C.,) is heading to Australia through a joint venture agreement with Australia's largest retailer Woolworths Ltd. to develop a network of home improvement stores. Through the agreement, Lowe's will be one-third owner of the destination home improvement chain, which is slated to open its first store in 2011. The company estimates Australia’s growing home improvement market is valued at $20 billion and the partners plan to secure more than 150 sites over the next five years to build a chain of large-format stores greater than 100,000 square feet.

“By partnering Lowe's home improvement knowledge with the retail expertise of Woolworths, we expect to develop destination home improvement stores that offer consumers the products and services they need for their homes and businesses in an environment that is comfortable and easy to shop,” says Robert Niblock, Lowe's chairman and ceo.

In addition, the joint venture has made a recommended takeover offer for all the shares in Danks Holdings Ltd., Australia's second largest hardware distributor.

Founded in 1924, Woolworths operates more than 3000 outlets covering grocery, consumer electronics, liquor, petroleum and general merchandise retailing under such nameplates as Woolworths, BIG W discount department stores, Dick Smith consumer electronics stores, BWS and Dan Murphy's liquor stores and Foodtown supermarkets.