U.S. chain Lowe's opens store in Mexico

MONTERREY Feb 5 (Reuters) - Lowe's Cos Inc, the No. 2 U.S. home improvement chain, opened its first store in Mexico on Friday in the northern industrial city of Monterrey, as it expands from its core market to gain new revenue sources.

With an investment of $100 million, Lowe's (LOW.N) plans to open five stores in the Monterrey area over the next few years, said Francisco Fernandez, chief executive of the Mexican unit.

As in the United States, Lowe's will compete against larger rival Home Depot Inc (HD.N), which has more than than 70 stores in Mexico.

As economic growth in consumption-driven economies like the United States remains sluggish, U.S. retailers are looking abroad for growth opportunities. Lowe's has operations in Canada and recently teamed with the Woolworths Ltd (WOW.AX) chain in Australia.

Last year, U.S. electronics chain Best Buy Co Inc (BBY.N) opened its first outlets in Mexico. (Reporting by Gabriela Lopez, editing by Gerald E. McCormick)