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Doug Marrelli

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

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Presentation Transcript

  1. Doug Marrelli Manager - Lowe’s Global Sourcing

  2. Global Purchasing – Local Retailing

  3. 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

  4. Local USA Some things at home that make you go hhhmmmmmm

  5. 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)

  6. Lowe’s Secret • Who makes most of the purchases for the home?

  7. 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)

  8. Lowe’s - near future • 2008 – Plan to open another 120 stores • 2009 - Plan to open retail stores in Mexico • Always looking for new opportunities

  9. 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

  10. Lowe’s TEUs Per Year

  11. 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

  12. 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

  13. China – sourcing pressures • Exchange rates • Raw material costs • New Labor laws • VAT rebate changes

  14. Other global sourcing options • Vietnam • Thailand • Malaysia • Cambodia • Etc.

  15. Changes – Then and Now

  16. Q & A

  17. Thank you

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