Lowe's to close underperforming stores in US, Canada
FILE - In this June 29, 2016, file photo, customers walk toward a Lowe's store in Hialeah, Fla. Lowe's reports financial results Wednesday, Nov. 16. (AP Photo/Alan Diaz, File) (AP)
Home improvement retailer Lowe’s announced Monday it will close underperforming stores in the U.S. and Canada as part of a reorganization.
The company will wind down operations at 20 U.S. locations and 31 Canadian stores by the end of its 2018 fiscal year, which ends Feb. 1, 2019. It announced in August that it would close all 99 Orchard Supply Hardware stores, leading to write downs of $390 million to $475 million.
“While decisions that impact our associates are never easy, the store closures are a necessary step in our strategic reassessment as we focus on building a stronger business,” Lowe’s CEO Marvin Ellison, who took the helm of the company in July, said in a statement.
The Mooresville, North Carolina-based company said most employees at the affected stores, which are located within 10 miles of one another, will have opportunities to “transition to a similar role” at a nearby Lowe’s location.
Store closing sales will occur at most of the affected locations, with exception of select stores in the U.S., which the company said will close immediately.
Lowe’s and its related businesses operate or service nearly 2,400 locations and employ more than 310,000 people.
Hilco Merchant Services has partnered with the retailer to help manage the process in the U.S.