Lowe's says it has purchased online home improvement retailer ATG Stores in effort to broaden its product offerings; ATG operates more than 500 websites, offers 3.5 million products from more than 3,300 manufacturers
MOORESVILLE, North Carolina
December 29, 2011
– Lowe's Cos. said Thursday that it bought online home improvement retailer ATG Stores, in part to broaden its product assortment.
Terms of the deal were not disclosed.
ATG Stores, or Allied Trade Group Inc., operates more than 500 web sites and offers 3.5 million products from more than 3,300 manufacturers, ranging from furniture and lighting to home décor, fitness equipment and apparel.
Lowe's, based in Mooresville, N.C., is the second biggest home improvement retailer in the world. It has more than 1,725 stores in the U.S., Canada and Mexico.
ATG Stores will be a Lowe's subsidiary and will continue to operate from Kirkland, Wash. Lowe's said that no jobs will be lost due to the buyout.
"ATG Stores is an extension of Lowe's commitment to providing consumers with flexibility, simplicity and value, whenever and wherever they choose to shop," Lowe's Chairman, President and CEO Robert Niblock said in a statement.
Lowe's, like other retailers, has faced tough times as consumers continue to hold back on larger home-improvement projects in the sluggish economy. Lowe's has started closing stores as it cuts costs to offset weak demand. It is also reducing promotions and moving toward an "everyday low price" retail strategy.
Last month Lowe's reported that its third-quarter net income fell on costs tied to store closings and restructuring charges, but its adjusted results topped Wall Street's expectations.
Lowe's shares rose 47 cents to $25.53 in morning trading.
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