US Players are yet to make the move

News

Noella Pio Kivlehan

14 July 2007

There are still a number of large US retailers that have yet to make their way across the pond to take up residence in the UK.

Three of the biggest are Home Depot, Lowes, and Target – the first two being similar to the UK’s B&Q stores, while Target is more in line with fashion value retailers.

According to Guy Price, head of retail warehousing for Cushman & Wakefield in the UK, Home Depot and Lowes’ product mix and service offering – particularly Lowes – would be well accepted by the UK market.

“Both have the financial muscle to pursue the company acquisition route and I do not believe they would want to grow organically.

B&Q would be the obvious target for both US retailers.

However, they have both been linked with an acquisition of B&Q/Kingfisher on many occasions during the past 10 years but do not appear to have got close to tying up a deal,” says Price.

But Chris Mackaness, head of retail services at GVA Grimley, warns that because of the competitiveness of the UK market, a move here could be difficult.

“Lowes has been rumoured in the press to be pursuing B&Q but due to the demise of the DIY market has not, obviously, endeared companies to purchasing retail DIY companies.”

Target faces the same problem. Jason Sibthorpe, head of in-town retail at GVA Grimley, says the company has looked at the UK on a number of occasions and at one stage they where looking at buying Sainsbury’s to get a foothold in the market.

But, he adds, while the US company may now consider coming into the UK as a stand alone retailer, “it will find itself in a tough market competing with the likes of Tesco, Asda, Primark, TK Maxx and Matalan”.

Target

The company is all things to all people, selling anything from kitchen units and furniture to clothes to electronics – all at “value” prices.

It is the sixth-largest retailer by sales revenue in the US, which includes Wal-Mart, Home Depot and Costco.

Last year it expanded to 1,488 units and sales reached $59.4bn.

Home Depot

Officially known as a retailer of home improvement and construction products, Home Depot is one of the US’s largest retail companies.

The company employs 355,000 people and operates 2,164 big-box stores, averaging 105,000 sq ft.

Last year its sales totalled $90.8bn.

It already has branches in South America and is expanding rapidly into China.

Lowes

Specialising in home improvement and appliances, Lowes serves more than 13m customers a week at 1,400 stores in 49 states.

It is the second-largest hardware chain in the US, employing 220,000 people, with an annual turnover of around $44bn.

The company is already planning to expand to Mexico, opening in 2009, but it will remain to be seen whether it will come to the UK.

There are still a number of large US retailers that have yet to make their way across the pond to take up residence in the UK. Three of the biggest are Home Depot, Lowes, and Target – the first two being similar to the UK’s B&Q stores, while Target is more in line with fashion value retailers. According to Guy Price, head of retail warehousing for Cushman & Wakefield in the UK, Home Depot and Lowes’ product mix and service offering – particularly Lowes – would be well accepted by the UK market. “Both have the financial muscle to pursue the company acquisition route and I do not believe they would want to grow organically. B&Q would be the obvious target for both US retailers. However, they have both been linked with an acquisition of B&Q/Kingfisher on many occasions during the past 10 years but do not appear to have got close to tying up a deal,” says Price. But Chris Mackaness, head of retail services at GVA Grimley, warns that because of the competitiveness of the UK market, a move here could be difficult. “Lowes has been rumoured in the press to be pursuing B&Q but due to the demise of the DIY market has not, obviously, endeared companies to purchasing retail DIY companies.” Target faces the same problem. Jason Sibthorpe, head of in-town retail at GVA Grimley, says the company has looked at the UK on a number of occasions and at one stage they where looking at buying Sainsbury’s to get a foothold in the market. But, he adds, while the US company may now consider coming into the UK as a stand alone retailer, “it will find itself in a tough market competing with the likes of Tesco, Asda, Primark, TK Maxx and Matalan”. Target The company is all things to all people, selling anything from kitchen units and furniture to clothes to electronics – all at “value” prices. It is the sixth-largest retailer by sales revenue in the US, which includes Wal-Mart, Home Depot and Costco. Last year it expanded to 1,488 units and sales reached $59.4bn. Home Depot Officially known as a retailer of home improvement and construction products, Home Depot is one of the US’s largest retail companies. The company employs 355,000 people and operates 2,164 big-box stores, averaging 105,000 sq ft. Last year its sales totalled $90.8bn. It already has branches in South America and is expanding rapidly into China. Lowes Specialising in home improvement and appliances, Lowes serves more than 13m customers a week at 1,400 stores in 49 states. It is the second-largest hardware chain in the US, employing 220,000 people, with an annual turnover of around $44bn. The company is already planning to expand to Mexico, opening in 2009, but it will remain to be seen whether it will come to the UK.