02-28-2019, 02:25 PM
(02-28-2019, 02:01 PM)Roadmap2Retire Wrote: LOW ended up buying a chain here in Canada called Rona a few years ago and have been converting all the stores to LOW brand (and closing some other ones). There are still a few leftover called Rona, but I believe they are being converted to LOW brandname.
I hear you that the disposable income is probably higher in US, but an economically rising demographic such as Asia probably provides a good opportunity for companies like HD/LOW to enter the markets. I just did a quick search and looks like HD has tried some expansions in intl markets, but continue to focus on US market instead....perhaps a lack of traction in business internationally.
I think it comes down to the high cost of establishing new distribution, and the near-term cost on profits. I would have thought Canada would be fairly easy, but I think Lowe's missed there again, as recently as yesterday. Your point remains valid though. The US market is saturated. These companies find a way to meaningfully grow revs some year soon, or they cease to be a great investment.