Lowe's Cos. Inc.is closing 20 underperforming locations in the US, including two stores in the Flint area, as part of a companywide shift in focus toward its larger locations as the retailer continues to reassess its strategy, the retailer announced Monday. The majority of the impacted stores are located within 10 miles of another Lowe's store.
Don't expect to see a bonanza of heavy discounts at Lowe's, despite the announcement that it's closing over 50 stores. You can find a list of Lowe's closure here. She said this will allow the company to focus on strengthening its footprint of almost 2,300 stores across North America.
Another 31 stores are being shut down in Canada, Lowe's said.
"We view this as a positive step towards improving productivity of the chain", Credit Suisse analyst Seth Sigman said.
Lowe's shares have gained 4.2% year-to-date but it has trailed its rival, Home Depot, in terms of revenue growth. Most employees will be allowed to transfer to a different store in some cases, it said.
Lowe's Canada is closing 27 of its home improvement stores in Canada, mostly outlets obtained in its purchase of Rona in 2016, but Winnipeg will be left unscathed.
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. Other high-profile positions were eliminated and replaced with other roles that report to the CEO.