North Carolina-based Lowe’s Home Improvement Warehouse, the second largest home improvement retailer in the world, appears to be inching its way toward Rhode Island. A representative of the company visited Warwick two months ago to discuss development opportunities. And while details are sketchy, Lowe’s may be interested in acquiring the property that is now home to the Warwick Musical Theater.
The “Warwick Tent,” as it has been known to Rhode Islanders for decades, will close at the end of this summer. The parcel sits near Route 2 and Cowessett Avenue – about one mile from a Home Depot, located on the other side of Route 2.
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While Home Depot, the world’s largest home improvement retailer, has enjoyed a dominating slice of the Rhode Island and southeastern Massachusetts market in recent years, it would be facing stiff competition in Lowe’s.
Lowe’s has nearly 500 stores in 26 states with annual sales in excess of $10 billion, and employs more than 65,000 people.
Originally North Wilkesboro Hardware, the company became Lowe’s more than 50 years ago when C.H. Buchan bought-out partner and brother-in-law, James Lowe’s share of the company. Today, Lowe’s modern superstores contain more than 100,000 square feet of retail space.
As big as Lowe’s is, Home Depot is bigger. Based in Atlanta, Georgia, Home Depot has more than 800 stores in 44 of the United States, Canada, Puerto Rico and Chile. The company has recently reported net sales of $30.2 billion and employs approximately 160,000 people.
Home Depot has stores throughout this market, including two in Warwick and others in Westerly and Cranston. In nearby Massachusetts, the retail giant has stores in Seekonk, South Attleboro, Bellingham, Taunton and North Dartmouth.
In 1999, Lowe’s opened stores in Orange, and New Haven, Conn. The company also has a store in Newington, Conn. and opened one in Springfield, Mass., in 1999, as well.
If in fact Lowe’s does arrive in Warwick, it will not be the first time the company has gone up against Home Depot.
David Strasser, vice president of equity research at the New York-based brokerage Salomon Smith Barney, said the most recent example of the two companies battling it out has played out in Dallas and Atlanta. Strasser said Rhode Islanders should not gear up for any price wars.
“They’ll go across the street from one another,” said Strasser. “It’s competitive. But you probably won’t see price wars. They have learned from going against one another that they don’t gain anything by doing that.”
Strasser describes Lowe’s as having more of a department store feel, as opposed to the warehouse atmosphere of a Home Depot. And Lowe’s, he said, is more likely to attract a female crowd.
Overall, the impact of the competition will play out more behind the scenes than before the general public. For example, Home Depot may bring in some employees from Dallas and Atlanta, Strasser said, because they have had the most recent experience of going up against Lowe’s. Other actions, he said, could be decidedly less subtle.
“They are both going to advertise heavily,” Strasser said.
Speculation that Lowe’s was gearing up to enter the Rhode Island market has circulated for months.
Jule Schreffler, spokesperson for the company, confirmed that Lowe’s is interested in Rhode Island.
“We are extremely interested in the Northeast,” Schreffler said. “We are evaluating sites all over the Northeast, including Rhode Island. But we don’t have a specific announcement at this time.”
Jonathan Stevens, director of the Warwick Planning Department, confirmed that a representative of the company visited Warwick two months ago.
“They seemed very interested,” said Stevens.
The site of the Warwick Musical Theater, which is marking its final season this summer, does not lend itself to a simple development deal. Much of the front of the property, about eight acres off Route 2, is zoned for general business. But much of the back of the property, nearly two dozen acres, Stevens said, is zoned for residential use.
Stevens expects that as part of any development, the city would look to acquire land for use as open space. And because of the size of the parcel where the theater presently sits, it’s possible that all sides could be satisfied.
“The concept would be to have a Lowe’s or Lowe’s-type development – and open up about 20 acres of open space in Cowessett,” Stevens said.
Because the zoning of the property will have to be reworked, any development of the property would have to go before the Warwick City Council.
Strasser has already predicted a winner, should Lowe’s and Home Deport square off. The consumer.
“They get a choice,” said Strasser. “The consumer doesn’t lose where they have a choice.”
