In
another sign of the times for retail, Lowe's is closing 51 North American
stores.
Lowe's
said Monday that those locations are under performing and the decision will help
the hardware chain focus on its most profitable stores.
"The
store closures are a necessary step in our strategic reassessment as we focus
on building a stronger business," said CEO Marvin Ellison, in a statement.
Retail
stores are struggling to adjust to the rapid rise of online shopping,
particularly from Amazon (AMZN). Many
successful retailers with big stores have adjusted
their business strategies to make better use of their physical
spaces. Others, including Sears,
Kmart and Toys "R" Us, failed.
Lowe's
and its rival Home Depot have proven to be largely Amazon-proof, because Amazon
does not sell lumber or other heavy, bulky home improvement products.
But
Lowe's is struggling to
keep up with Home Depot. Last year, Home Depot's revenue hit more
than $100 billion, while Lowe's sales were below $70 billion. Lowe's stock
price has also lagged behind its rival, leading to pressure from activist
investors.
Earlier
this year, Lowe's gave the reins to a home improvement veteran to turn around
the company. Ellison was a top executive Home Depot for more than a decade, and
most recently served as JCPenney's (JCP) CEO.
Ellison
has already made some big strategic decisions, including closing all of its
Orchard Supply Hardware stores and slashing inventory at its Lowe's stores.
He
believes targeting professional home builders and construction companies with
higher-quality tools and equipment, additional discounts, and better customer
service will improve Lowe's. Sales to home building pros make up around 45% of
Home Depot's sales, but only around 30% of Lowe's sales, according to analysts
at Wedbush Securities.
Lowe's (LOW) will shut down 20 stores in the United States and 31 in
Canada. The company said that a "majority" of the shuttered stores
are within 10 miles of another Lowe's location.
The
stores will be closed before Feb. 1, 2019. The company will try to find jobs at
nearby stores for its employees affected by the closings.
Lowe's
said it would close these stores:
Alabama
1100 Bankhead
Hwy SW, Graysville
California
26501
Aliso Creek Rd, Aliso Viejo
13300
Jamboree Rd, Irvine
720
Dubuque Ave, South San Francisco
750
Newhall Dr, San Jose
Connecticut
48 Boston
Post Rd, Orange
Illinois
1333
Schaefer Rd, Granite City
7735
Grand Ave, Gurnee
Indiana
6221 US
Hwy 6, Portage
Lousiana
5770 Read
Blvd, New Orleans
Massachusetts
599
Thomas Burgin Pkwy, Quincy
Michigan
4274 E
Court St, Burton
2100 T.A.
Mansour Blvd, Flint
Minnesota
2015
Bassett Dr, Mankato
Missouri
11974
Paul Mayer Ave, Bridgeton
3180 N
Hwy 67, Florissant
New York
2008
Broadway, New York
635-641
6th Ave, New York
Pennsylvania
250 South
Conestoga Dr, Shippensburg
Texas
3500 W
Airport Fwy, Irving
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