Lowe's launches Internet selling with new tool line

Home Channel News, Oct 26, 1998 by Monica Toriello

NORTH WILKESBORO, N.C. -- Early next month, Lowe's will complete its chainwide rollout of a new private-label line of mechanics tools called Kobalt. But consumers don't have to visit a Lowe's store to purchase the tools, which are manufactured for Lowe's by Kenosha, Wis.-based Snap-on Inc. In its first venture into Internet retailing, Lowe's is making the lifetime-guaranteed tools available online through a designated Web site -- www.kobalttools.com.

The Kobalt line includes wrenches, sockets and extensions, ratchets and breaker bars, as well as tool boxes and roller cabinets. An online catalog with photos and prices is available on Kobalt's Web site. According to a print ad for the tools, recent testing showed Kobalt outperforming several brands -- including Sears' Craftsman Pro and Home Depot's Husky tools -- with respect to torque testing, corrosion resistance and other standards set by The American National Standards Institute (ANSI).

"These are the kinds of tools that owners will get really possessive about," said Greg Wessling, the Lowe's executive who initially courted Snap-on. "They're the best mechanics tools out there."

TruServ Corp.'s Master Mechanic and Sears' Craftsman established the standards for private labeling of tools recently embraced by warehouse retailers such as Depot's Husky and HomeBase's PowerBuilt brands. In September, Emerson Electric agreed to start making a 15-sku line of bench-top, stationary and shop-vac tools exclusively for Home Depot under the Ridgid brand. Emerson took on Depot after a well-publicized split from Sears, for which Emerson had made these types of tools under the Craftsman name for nearly 40 years.

Snap-on's partnership with Lowe's represents a departure from the manufacturer's strategy of selling through its franchise dealers, who operate vans that Snap-on calls "Showrooms on Wheels." The vans let dealers take the tools right to their customers' place of business.

Snap-on announced last month a major restructuring involving a large number of factory closings in North America. A Snap-on spokesperson told NHCN that the changes would not affect the manufacturing of the mechanics tools for Lowe's.

Kobalt-brand products -- nearly 350 skus of which are listed and priced on www.kobalttools.com -- are made entirely in the United States from 100 percent high alloy steel. Kobalt wrenches and sockets boast a "unique K Drive design," meaning they are engineered to contact fasteners on the flat sides, away from the corners. The design "allows up to 20 percent more torque and less rounding."