Where Lowe’s sources its products from Lowe’s sources its products from over 7,000 vendors. Suppliers include large companies like General Electric (GE) and Samsung (SNNLF) for appliances, as well as power tools suppliers like Dewalt, and paints and coatings suppliers like Valspar (VAL) and Sherwin-Williams (SHW). None of its suppliers account for over 10% of purchases, so the suppliers’ individual impact on the company’s performance is limited. 80% of the company’s purchases were shipped via its distribution network in fiscal 2015. The company’s US distribution network consists of 15 regional distribution centers (or RDCs), each of which serves about 115 stores. Besides, Lowe’s also tries to purchase merchandise directly from manufacturers to cut down the layers in the distribution network and pass on the resultant savings to customers in the form of lower prices. Each Lowe’s store stocks approximately 36,000 items. However, Lowe’s has several hundred thousand items on tap for its customers, which can be ordered via its e-commerce sites, and its special sales order system.

This enables the company to optimize its inventory between stores and distribution centers. Lowe’s inventory turnover came in at 4.1x in fiscal 2015 compared to 4.9x for Home Depot (HD). Lowe’s is aiming for faster inventory turns with a target ratio of 4.4x in fiscal 2016. In comparison, other big box retailers like Walmart (WMT) and Costco (COST) achieved inventory turnover ratios of 8.1x and 11.6x, respectively, in their last fiscal years. The differential merchandise mix has been primarily responsible for higher inventory turns for both Walmart and Costco. LOW, HD, SHW, WMT, and COST together constitute 2.4% of the portfolio holdings in the Vanguard S&P 500 ETF (VOO). Please select a profession that best describes you: For Market Realist updates, enter your email belowLowe's Home ImprovementCurrently dreaming of cooler weather and fall evenings spent sipping cider and laughing with friends. /bJ7tnLowe's Home ImprovementOur friend, Monica from East Coast Creative just made this couple's "boho farmhouse" dreams come true!

/bJW4rPosted by Lowe's Home ImprovementGive your kitchen a rustic vibe with a sliding barn door. /bJTJz ‪#‎Hypermade‬ ‪Posted by Lowe's Home ImprovementGoodbye cluttered mess, hello relaxing escap/bJCb2Posted by Lowe's Home Improvement shared York Daily Record/Sunday News's vidAuto Repair Animationeo.Check out this awesome story featuring Chris from our Springettsbury Township, PA stoThe Notebook Movie Chaptersre!Posted by York Daily Record/Sunday NewsThere is no way you can visit the Lowe's Home Improvement and not know Chris VesetTire Plug Kit Made In Usah. His wonderful attitude and boundless knowledge of where everything is in th...e store in unreal. Everytime I walked in there, he always has a big smile and an offer of help. But today, instead of putting together a story about how he helps others, this short video explains how a community rallied around him in his time of nee

y. -- Jason Plotkin, staff photog Lowe's Home ImprovementThis DIY block fire pit will have you actually looking forward to colder months ahea/bJkXv #Posted by Lowe's Home ImprovementWe're excited to partner with Boys & Girls Clubs of America to restore and enhance 50 clubs in 50 state/bJf70 #Posted by Lowe's Home ImprovementCue the tears! This homeowner's reaction to her new kitchen is priceles/bJb81Posted by Lowe's Home ImprovementYour flooring options are endles/bH6TVLowe's Home ImprovementOn this week's episode of The Weekender, Monica is inspired to bring a customized kitchen table to life for a hardworking coupl/bHSblPosted by Lowe's Home ImprovementOur employees are working around the clock to bring emergency supplies to the communities impacted by the historic flooding in Louisiana. We're also donating $500,000 to American Red Cross Disaster Relief to provide both immediate and long-term suppor/bHRHKLowe's Home ImprovementDoes your rug slip and slide? This unique use of caulk will help it stay pu

t. #Posted by Lowe's Home ImprovementUse walnuts to remove light marks from your wood floors. The oils will fill in the scratches! #Posted by Lowe's Home ImprovementYou'll be floored by these 5 unique flooring idea/bHG08Five Unique Flooring IdeasLowe's Home ImprovementWe're back with another 360 video! To see the steps that go into making this DIY side table simply turn around while holding your phon/bHnDt # Note: This table is not intended for sitting. If children under 12 are in the household, avoid use. To further secure, consider anchoring the table to the floor.Posted by Lowe's Home ImprovementWe make finding the perfect flooring eas/bHBhwFlooring Quiz - Lowe's Creative IdeasLowe's Home ImprovementHave you seen our NEW YouTube series? DIY blogger, Monica Mangin is tackling one-weekend renos for homeowners and renters across the countr/bHvk8Posted by Lowe's Home ImprovementReimagine any room from the ground up with Shaw wood-look vinyl plank flooring. It's eye-catching & easy to instal

/bHsNB #Posted by Lowe's Home ImprovementWe loved teaming up with design bloggers, Chris and Julia to surprise one family with a peaceful place to spend time togethe/bHhspA Stylish Lake House MakeoverLowe's Home ImprovementDon't you think it's time you brought your home into the 21st century? Introducing Nucleus, the intercom that makes it easier than ever to stay connected with your loved oneLowe's (NYSE:LOW) investors have fared well over the years. The stock has closed higher for seven years in a row, riding high on its softer retail approach in hardware and home improvement. You won't find too many shareholders complaining, but that doesn't mean that Lowe's impressive streak of annual stock gains won't end in 2016. Let's look at three things that can derail the market darling. 1. The housing market can become unhingedIt's not a surprise that the last time Lowe's stock closed lower was 2008, when the subprime lending crisis rocked the housing industry. Lowe's can still hold up reasonably well when there's a lull in the real estate market.

Folks who realize that they will be staying in their digs for a while often decide to spruce things up to make a change. However, there's nothing that inspires updates the way that a change of real estate does. A couple moving into a new home is more likely to change out appliances than a family that's been there for five years. 2. Online retail can eat into brick-and-mortar salesLowe's and Home Depot (NYSE:HD) are the undisputed champs of home-improvement retail, but it's hard to deny the allure of online retail. Lowe's and Home Depot have strong Internet-based storefronts, but you can never underestimate the specialists. (NASDAQ:AMZN) and furniture e-tailer Wayfair (NYSE:W) saw their stocks more than double last year. They're doing it right. Lowe's and Home Depot have seen their sales climb 6% higher over the past year, but Amazon and Wayfair are at 18% and 59%, respectively. Amazon is making it easier for shoppers to buy home essentials without having to head out to the store.

There are tens of millions of subscribers to Amazon Prime, knowing that they will receive their Amazon-warehoused goods in two days at no additional cost. Wayfair has cracked the code for home goods, including patio furniture and other decor items sold at home-improvement stores. Amazon initially rocked the media retailers, but after seeing it disrupt office supplies and groceries, it wouldn't be a surprise to see it make a play for the big-ticket items offered at Lowe's. 3. Interest rates can surge in 2016It hasn't happened yet, but the Fed has signaled that interest rates are likely to move higher in the near future. Borrowing costs heading north could put the brakes on the red-hot real estate market, but there are two other ways where it can sting Lowe's. High-end home improvement projects don't come cheap. Homeowners often need to borrow to redo a bathroom or update a kitchen. If loan rates move higher, it will give potential fixer-uppers less bang for their financed buck.