Lowe’s closing underperforming stores, including 1 in MA
06 November, 2018, 03:31 | Author: Lawrence Cooper
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.
Lowe's Companies Inc. refused an interview request from CBC, but in an emailed statement, a spokesperson said that "everything will be done to ensure a smooth transition until the stores are closed, including through transfers of eligible employees to other locations whenever possible".
Of the USA stores being closed, 75 percent have another Lowe's within 10 miles, and 90 percent have a Home Depot store within 10 miles, Sigman wrote.
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The closings include 20 stores in the US and 31 locations in Canada, including four offices and specialty facilities, according to a Lowe's press release. Analysts believe that Sears, which declared bankruptcy last month, waited too long to close stores and move more sales to the internet, he said.
David Soberman, a University of Toronto professor specializing in marketing and retail, said Lowe's 2016 acquisition of Rona Inc.in a deal valued at $3.2 billion. has likely fuelled some of the Canadian cuts.
Earlier this year, Lowe's gave the reins to a home improvement veteran to turn around the company.
In a research note Monday, Credit Suisse analyst Seth Sigman said Lowe's decision is "a positive step towards improving productivity of the chain".
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Filato said that since there was a change of leadership at Lowe's in July, the company has stopped informing the union about upcoming changes.
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