Lowe's Expanded Tool Rental Business Isn't Really About Tool Rentals
Last week, home improvement retailer Lowe's (NYSE: LOW) announced it would expand its relatively small tool rental business. A handful of locations already offer this service, but the company now aims to expand this operation nationwide. Locations slated to add tool rentals to the mix will allocate about 4,000 square feet of space for the effort, either by reconfiguring stores' footprints or via new construction.
It's an intuitive move. The company already serves professionals and DIY customers -- many of them may be looking to acquire an expensive tool they need for a project without purchasing a new one. This move allows that to happen, but Lowe's expansion plan isn't entirely about generating revenue from tool rentals and related services. It's about drawing more customers -- and contractors in particular -- to its stores where they're likely to make additional purchases. And it gives the company an opportunity to close a shocking gap.
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Source Fool.com
