Sigao Li

This study examines the failure of American home improvement retailer Lowe's in
Canada from a geographic perspective. It analyzes Lowe's operating strategy, financial
performance, and store share, and uses an optimized market demand calculation formula and the Huff Model to simulate market demand and conduct trade area analysis. Results indicate an unequal distribution of the home improvement market in Canada, characterized by intense
competition in certain provinces. Yet, opportunities for market entry and store optimization
remain evident. Most Lowe's stores were developed in locations with low demand and high
competition, compared to its main competitor The Home Depot. These findings may have
contributed to helping understand why Lowe's exit from the Canadian market and provide
valuable insights for international retailers on market entry and operations. The proposed formula may also improve the accuracy of retailers' consumer spending forecasts.

Keywords: Business Geography, Internationalization of Retailing, Spatial Interaction