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Analyzing Lowe's Failure in Canada from A Geographical Perspective


 

This study examines the failure of American home improvement retailer Lowe's in Canada from a geographic perspective. It analyzes Lowe's operating strategy, financial performance, and store share, and uses an optimized market demand calculation formula and the Huff Model to simulate market demand and conduct trade area analysis. Results indicate an unequal distribution of the home improvement market in Canada, characterized by intense competition in certain provinces. Yet, opportunities for market entry and store optimization remain evident. Most Lowe's stores were developed in locations with low demand and high competition, compared to its main competitor The Home Depot. These findings may have contributed to helping understand why Lowe's exit from the Canadian market and provide valuable insights for international retailers on market entry and operations. The proposed formula may also improve the accuracy of retailers' consumer spending forecasts.

 

Keywords: Business Geography, Internationalization of Retailing, Spatial Interaction



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