Editor’s note:
NationsRent was acquired by Fort Mill, S.C.-based Sunbelt Rentals in July 2006 in one of the largest deals in rental industry history for $1.05 billion. The rental departments in Lowe’s stores are now operated by Sunbelt Rentals, which is No. 4 on the RER 100.
FORT LAUDERDALE, Fla . - Hoping to capitalize on growing consumer interest in the rental option, NationsRent and home improvement retailer Lowe's Companies formed a strategic alliance in April to rent equipment within select Lowe's stores.
NationsRent will shoulder most of the cost and operate its rental stores within Lowe's locations, offering about 240 items - from hand tools, generators and compressors to dozers, backhoes and excavators - to contractors and homeowners. In the effort's first phase, NationsRent will open in six Lowe's stores - two each in Columbus, Ohio; Houston; and Jacksonville, Fla., by early May.
"The partnership with Lowe's is in line with our strategy," NationsRent vice president of sales and marketing Gary Stewart told RER Reports. "When you walk into our stores, they have a retail look and feel. Lowe's has a clean, nice look, which is part of the attraction. When you go into a Lowe's, there will be a NationsRent store, and it will have the same look and feel as our other stores."
Lowe's, the second-largest home improve-ment retailer, has long been expected to follow in No. 1 Home Depot's rental footsteps. Atlanta-based Home Depot launched its tool rental program in 1996 and has opened about 150 rental departments in the United States and Canada, with plans to reach 250 by January 2001.
"[The partnership] truly gives [our customer base] one-stop shopping," Lowe's vice president of specialty sales Mike Brown said. "This program will enable our commercial business customers to complete jobs of all sizes, ranging from major commercial projects to smaller landscaping jobs."
Florida-based NationsRent, No. 4 on the RER 100, has 187 locations in 27 states. North Carolina-based Lowe's has 580 locations in 38 states.
By 2003 online trading revenues in the construction and industrial equipment industries will reach $44.4 billion, compared to $500 million in 1998. - Forrester Reasearch
