US chain Lowe's opens first store in Mexico

Feb 06, 2010

Lowe's Cos Inc, the No. 2 US home improvement chain, has opened its first store in Mexico on Friday in the northern industrial city of Monterrey.

With an investment of $100 million, Lowe's further plans to open five stores in the Monterrey area over the next few years, said Francisco Fernandez, chief executive of the Mexican unit.

As in the United States, Lowe's will compete against larger rival Home Depot Inc, which has more than than 70 stores in Mexico.

As economic growth in consumption-driven economies like the United States remains sluggish, US retailers are looking abroad for growth opportunities. Lowe's has operations in Canada and recently teamed with the Woolworths Ltd chain in Australia.

Last year, US electronics chain Best Buy Co Inc opened its first outlets in Mexico.