MOORESVILLE, North Carolina - Lowe's Companies, Inc. is to close 51 of its stores in North America as part of an ongoing rationalisation program.
The stores in the United States and Canada, including two in New York City are all considered underperforming.
Lowe’s has stated in the past it wants to concentrate on its most profitable stores to improve the overall health of the company.
Last fiscal year the company reported $68.6 billion in sales. It operates around 2,390 home improvement and hardware stores and employs over 310,000 people. Lowe’s was founded in 1946 and is based in Mooresville, North Carolina.
The company on Monday announced it would close 20 U.S., stores and thirty one Canadian outlets.
Staff at the U.S. stores will be offered positions at other Lowe’s stores. The company said most of the stores being closed have another store within a ten miles radius – another justification for their closure.
"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," Marvin R. Ellison, Lowe's president and CEO. said Monday
"We believe our people are the foundation of our business and essential to our future growth, and we are making every effort to transition impacted associates to nearby Lowe's stores."
The company is trying, and expects to complete all the closures within its current fiscal year which ends on 31 January 2019.
The company intends to conduct closing sales for most of the impacted locations with the exception of select stores in the U.S., which are slated to close immediately.
Lowe's has partnered with Hilco Merchant Services to help manage the process in the U.S. in an effort to provide a seamless experience for its customer base.
The stores to close in the U.S. are at Graysville in Alabama; Aliso Viejo, Irvine, South San Francisco and San Jose in California; Orange in Connecticut; Granite City and Gurnee in Illinois; Portage in Indiana; New Orleans in Louisiana; Burton and Flint in Michigan; Quincy in Massachusetts; Mankato in Minnesota; Bridgeton and Florissant in Missouri, New York City (West Side Store at 2008 Broadway) and Lowe’s of Manhattan (635-641 Sixth Avenue) in New York; Shippensburg in Pennsylvania; and Irving in Texas.
In Canada, Lowe’s stores will close at New Westminister in British Columbia; Sudsbury, Peterborough, Kingston, Lakefield, North York, two stores in Mississauga, and two in Marie in Ontario; two stores in Calgary in Alberta; Sainte-Clotilde-de-Chateauguay, Saint-Jean-sur-Richelieu, Grandby, L’Assomption, Laval, Rouyn-Noranda, Montreal, Saint Elzear and Ange-Gardien in Quebec; Goulds, Conception Bay, Bay Roberts, and three stores in St John’s in Newfoundland.
Lowe’s said four non-store facilities will also be closed or consolidated.
In an announcement to the Nasdaq, the company said the expected financial impact of the closures which it estimates at $0.28 to $0.34 per diluted share was not contemplated in the business outlook for fiscal 2018 which the company provided on 22 August when it released its second quarter earnings. Additional details regarding the impact of the store closings, the company said Monday, will be provided in the next quarterly earnings release on 20 November.