In a further sign of retail store problems, Lowe’s just announced the closure of 51 stores in North America. The home improvement chain said these locations were not performing well, and the closings will help them focus on the most profitable stores, which will improve the health of the rest of its store portfolio.
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Lowe’s announced that the stores will be closing before February 1, 2019. The chain will try to relocate employees affected by the closings to nearby stores. Most of the stores to be shuttered are within 10 miles of another Lowe’s store.
“We believe our people are the foundation of our business and essential to our future growth,” said CEO Marvin R. Ellison.
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Lowe’s biggest rival is Home Deport, and the chain is struggling to keep up with them. CEO Ellison, who joined the company in May, has changed the strategy of the company to improve its bottom line. He already closed its Orchard Supply Hardware stores and slashed inventory at Lowe’s stores. Its next earnings report is on November 20, but the company has already cut its sales and profit outlook for the year.
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Source: CNN.com