Lowe's Home Improvement
By George MacBain
                    
Today we had the pleasure of hearing all about Lowe's Home Improvement Company from Maureen Ausura, Senior Vice President for Human Resources. Maureen is a graduate and recipient of a Masters in Business Administration from Rutgers University. Maureen has been associated with Lowe's for 4 years. Her presentation today focused on three areas including: The Lowe's story, the current economic environment and Lowe's role as a community partner.
 
l) Lowe's began as a small hardware store in 1921 by Mr. L. S. Lowe. The family business grew to 6+ stores in NC and Tennessee and in 1961 became a public company. Lowe's serves the do-it-yourself, consumer durables, and building contractor businesses. Now based in Mooresville, NC, Lowe's is the nation's 2nd largest specialty retailer with 1,650 stores in all 50 states, Canada and Mexico later this year. They have 228,000 employees (19th largest employer in the US) and with $48b in revenues rank 48 on the Fortune 500 list. They are ranked 3rd on Fortune's most admired list of specialty retailers. In the early 90's Lowe's began an aggressive expansion and relocation strategy converting the entire chain from smaller stores to the "big box" type we use today. This change has paid off as the companies earnings per share annual growth rate averaged over 10% the last 10 years and over 20% prior to the last 3 years.
 
2) Revenues are driven by 2 economic factors at Lowe's, housing and income. The current economic decline began at Lowe's in mid 2006. National housing sales peaked in 2005 with over 8 million homes sold (7 mil existing and just over 1 mil new homes). Since 2005, housing sales have declined as have values currently averaging 23% nationwide with no real end in sight. The unemployment rate has risen to 8.1% and is still rising. This includes people who are actively seeking new jobs and can't find one, as well as those who have given up and are not actively looking. In addition to those who are unemployed, there are an additional 6.7% of Americans who are currently "under-employed". Lowe's revenue is affected by both these groups of Americans as well as those who fear they may face joblessness in the future. Currently, the state of the economy, the increase in unemployment, and the fear of what the future holds has led consumer confidence to a low of 25, the lowest recorded in over 40 years. Consumers have lost over $16 trillion in wealth, home values are down, and assets are down. Consumer spending budgets have been slashed and discretionary spending is very low as consumers are concerned about their nest-egg and retirement. These concerns lead people to pause before buying. Buyers want to seek value, 72% of consumers has said that the current state of the economy has helped them prioritize what is really important. Companies such as Lowe's have begun to find ways to manage expenses while still focusing on the consumer needs and wants. Lowe's has decided to focus on customer service and upkeep of current stores while curtailing the opening of new stores in 2009.
 
3) While focusing on customers and employees, Lowe's also stays focused on improving the community in which they do business. They are a major partner with Habitat for Humanity having pledged an additional $20 million dollars in support over the next 5 years. Lowe's also partners with causes such as: the American Red Cross in times of crisis (contributing more than $1 million in 2008) and the Nature Conservancy. The Lowe's Foundation is very involved with local schools and communities including: "Toolbox For Education" - provides financial tools to help improve schools; Scholarships of $600,000 per year for 400 students entering college; Skills USA-donating $1 million to address the growing gap in skilled workers; and the Lowe's Heroes Program which provides and opportunity for employees to give back to the community through volunteer work. At Lowe's they take their role in the community seriously and are proud to support local causes. While focusing on the community, Lowe's also takes care of their employees. Since 1999, the Lowe's Employee Relief fund has contributed over $8.4 million in assistance to employees and their families. This fund is supported by employees and Lowe's match's donations dollar for dollar.
Maureen did a fine job of presenting the Lowe's story and it is no wonder they continue to be successful. Lowe's is the most recent of 9 Fortune 500 companies that call the Charlotte area home. They are a wonderful corporate citizen and a great addition to our region.
      
   
Head Table: Martin Walton, Mac McCarley, Chuck Lew, Bob Phifer, Tom Wright;
Invocation: Jim Adams;
Visitors & Guests: John Shell; Health & Happiness: Marilynn Bowler; Song: David Erdman; Piano: Thomas Moore

• Wells Van Pelt was introduced by Biff Virkler as the club's newest member. Wells is Vice President of investments for Wachovia Securities and can be reached at wells.vanpelt@wachoviasec.com. Welcome to Charlotte Rotary!
          
• Charlie Grier has been released from the hospital following his bypass surgery and is keeping busy by emailing his staff; Budd Berro was named Piedmont North Carolina Director to oversee Governor Perdue's Charlotte office; Marilynn Bowler gave a shout out to Bill Anderson for his work in the community; WTVI and Dan Morrill will record five interviews of people who participated in the Berlin Airlift as part of a UNCC exhibit in June. Contact the Rotary office if you, or someone you know, was involved in the Berlin Airlift.
  
• Will Barnhardt and Ed Wadsworth provided a brief update on their visit to Bogota, Colombia and their plans to begin work on a container project. Contact Will or Ed if you are interested in helping with this effort; Tim Newman thanked volunteers for their work to frame walls and set trusses at the Habitat House. And also thanked Bob and Robert Freeman for providing the delicious BBQ lunch from SMS Catering. Sign up is available here.
  
• Newer club member graduates from the Red Badge Club: Mary Erwin, Ed McMahan and Terri DeBoo.
  
• This year's District Conference will be a reunion for Districts 7670 and 7680. All are invited to attend what promises to be a great event! May 1-3, Marriott Resort & Spa at Grande Dunes, Myrtle Beach, SC. Registration forms for the conference and hotel can be found on the District's website, http://rotarydistrict7680.org.

District 7680 will welcome members of the GSE Egypt team that will arrive in Charlotte on April 4th. Charlotte Rotary will host the group from Tuesday, April 7 through Friday, April 10. Regina Patton is coordinating vocational visits, arranging home hosting and the general well-being of the group. Details are still being arranged and Regina could use your help, particularly on professional/vocational visits.