Lowe’s to Expand Presence in the Northeast

Lowe’s Cos., the world’s second-largest home improvement retailer, said it plans to invest about $1.3 billion to expand in the Northeast over the next five years, continuing its aggressive growth strategy. Although the home improvement sector has been strained by deflated prices for building materials and a sluggish retail climate, analysts said it was prudent of the company to push into the Northeast, where Lowe’s presence is slight compared with that of Atlanta-based sector leader Home Depot Inc. Lowe’s plans to invest more than $430 million in the Boston area alone to build 25 home improvement superstores over the next five years. Each store will employ about 175 people, creating more than 4,000 jobs throughout the region. Wilkesboro, N.C.-based Lowe’s also will beef up its presence in Philadelphia and Pittsburgh and open its first store in the New York metropolitan area this spring in North Bergen, N.J. Lowe’s shares fell 82 cents to close at $52.28 and Home Depot fell 96 cents to close at $45.65, both on the NYSE.