Lowe's Closing 51 Stores

Lowe's Closing 51 Stores

Lowe's Closing 51 Stores

The retailer announced it will close 20 stores in the United States and 31 in Canada.

Most of the stores slated to close are located within 10 miles of another Lowe's, and the company said employees at closing stores would have the chance to transfer to similar jobs at nearby locations.

Yet a new management roster, upbeat earnings, and new strategy has renewed investor and analyst interest in the stock, up 4.2% year to date, putting it ahead of Home Depot and the market.

Lowe's said most stores will offer major discounts prior to their closures, but some will shut down immediately.

Lowe's has been struggling to keep up with its larger rival Home Depot. Stores affected by the closures include locations in Alabama, California, Connecticut, Illinois, Indiana, Louisiana, Massachusetts, Michigan, Minnesota, Missouri, New York, Pennsylvania, Texas, British Columbia, Alberta, Ontario, Quebec, and New Foundland.

"The village of Gurnee was not aware that Lowe's was closing prior to the media announcement today", said Jack Linehan, assistant to the village administrator in Gurnee.

Previously the CEO of J.C. Penney, Ellison was appointed over the summer to lead Lowe's, taking over for Robert Niblock.

"This is a lesson that does not want to be repeated by other retailers", McKinney said.

"The decision to close stores is never one that we make lightly".

"Some of you may ask the question, 'If these stores are performing so poorly, why didn't the previous management team close them?' That's a great question that I can not answer", Ellison said in the memo.

The wind down of the Orchard Supply chain cost the company between $390 million and $475 million in write-downs. Other high-profile positions were eliminated and replaced with other roles that report to the CEO.

Related news