Niblock elaborates on Orchard strategy
Mooresville, N.C.-based Lowe's CEO Robert Niblock added some color to the company's plans to acquire 72 Orchard Supply Hardware stores.
Earlier this week, the federal antitrust review and bankruptcy court approved Lowe's $205 million bid. In comments to investors Wednesday, Niblock said he expected the deal to close at the end of August.
"Strategically, the transaction will provide Lowe’s with an attractive opportunity to increase our footprint in California, where we’re currently understored, through a neighborhood format that is complementary to our strength in big-box retail," Niblock said.
Lowe's operates 110 stores in California, compared with Home Depot's California store count of 223.
Niblock added: "Orchard’s hardware and backyard stores have a loyal customer base and are situated in high-density, prime locations. We see significant potential for Orchard as a stand-alone business within Lowe’s portfolio, and we look forward to the opportunity to participate more fully in California’s economic recovery."
On Wednesday, Lowe's posted a second-quarter sales increase of 10.3%.