Home improvement retailer, Lowes, has reported that it is going to have to work hard to reduce inventories in the second half of 2010. Their figures for the first six months showed that inventories grew faster than sales, with almost a 10 percent jump in the first quarter and a 5.7 percent increase in the last three months. Although Lowes say this was due to the introduction of new stores, the company is launching a supply chain management program later this year, a Integrated Planning and Execution, or IP&E, initiative. The company will test the program at seven of its merchandise divisions to help optimize inventory and improve sales by better aligning product availability with geographic demand. Lowes reported that their overall sales grew 3.7 percent in the second quarter ending July 30 and same-store sales expand 1.6 percent over the same quarter a year ago. However, their inventory turns fell from 4.5 percent last year to 3.6 percent in the last quarter indicating that products were remaining on store shelves longer before they are sold.
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