Lowe's to Close 51 Stores in US, Canada
Lowe's announced yesterday that it will be closing 20 stores across the country as well as an additional 31 stores in Canada. The home improvement retailer, based in Mooresville, N.C., said the “wind-down” of certain underperforming store locations was part of its ongoing strategic reassessment. Lowe’s said most of the impacted stores were located within 10 miles of another company store, and that most workers at these stores will be extended opportunities to transition to a similar role at a nearby Lowe's store. Lowe's expects to close the impacted stores by the end of the company's 2018 fiscal year, which is Feb. 1, 2019.
Total Retail's Take: Unlike its primary competitor, The Home Depot, which has enjoyed booming sales and profits as more Americans invest in their homes, Lowe's growth has been more measured. Lowe's has fallen behind Home Depot, and is also seeing increased competition from online retailers in the home improvement category. In charge of leading Lowe's future growth is Marvin Ellison, the former CEO of J.C. Penney, who joined the home improvement retailer in July. Ellison has experience in the category, having spent 12 years in senior-level operations roles with The Home Depot. His job will be to reinvigorate Lowe's customer base — both do-it-yourselfers and professional contractors — while also improving the bottom line, which yesterday's announcement speaks to.