Lowe's (LOW) - Get Report said it is on track to expand into Canada next year.

The Mooresville, N.C., home improvement retailer said it expects to open its first stores in the greater Toronto area in the second half of 2007.

"Today, we're breaking ground on our first location in Hamilton, have identified additional locations in Brantford, South Brampton and Toronto and have another nine locations approved through our real estate committee process," said Doug Robinson, president of Lowe's Canada. "We have begun the search for potential store employees with home improvement know-how and a passion for customer service."

Lowe's has contracted with Canadian distribution expert Assured Logistics to provide distribution and fulfillment services to help support the launch and growth of Lowe's Canadian retail operations. The company is also beginning the review process for vendors.