Lowe's closing more than 50 stores in the USA and Canada

Lowe's closing more than 50 stores in the USA and Canada

Lowe's closing more than 50 stores in the USA and Canada

Lowe's on Monday announced it would close 51 stores in the USA and Canada.

Home improvement chain Lowe's announced Monday it is closing 51 locations in the USA and Canada, including four in California.

For a long time, Lowe's underperformed its larger rival Home Depot (HD), and few saw hope that the situation would change. The California stores closing include Lowe's locations in Alison Viejo, Irvine, South San Francisco and San Jose.

Winder says Lowe's is facing a formidable challenger in Home Depot, which expanded to Canada first and as such got a real head start in winning over contractors who remain loyal to it.

Most stores will jump into closing sales in the near future, while a few select American locations will simply close immediately.

Many associates may have an opportunity to explore other opportunities at a nearby Lowe's, according to a release.

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. The locations are expected to close by the end of the company's fiscal year in early February.

What did the Lowe's CEO say?

The company is already shuttering its Orchard Supply chain of 99 stores, leading to between $390 million and $475 million in write-downs.

The spokesperson also said that most of the 17 employees working at the Bath Road location will be absorbed into the company.

Lowe's shook up its executive suite recently, hiring a new chief information officer from Target. The company posted net losses in two out of the three years Ellison led J.C. Penney on a GAAP basis.

In an interview with the Charlotte Observer, Ellison said retooling inventory is one of the "retail fundamentals" that has to be addressed first.

Related news