Hardware and home improvement retailer Lowe’s announced their intention today to close 51 of their storefronts in both the United States and Canada, 20 in the former, 31 in the latter. CEO Marvin Ellison stated that the stores in question have been under-performing lately, and that they are being shuttered in order to focus on their more profitable sectors. “The store closures are a necessary step in our strategic reassessment as we focus on building a stronger business,” Ellison said in his official statement.
While home improvement stores likes Lowe’s and Home Depot have been mostly immune to the constant encroachment of online retailers like Amazon, they have been competing quite fiercely on their own. Compared to Home Depot, Lowe’s stock has been lagging behind, and their profits are also behind Home Depot’s by at least $30 billion. Ellison, a relatively recent hire to the company, believes that this can be recouped by shifting focus to professional home builders and construction companies via stocking higher grade equipment and materials.
According to Ellison’s statement, the majority of the storefronts being closed are within 10 miles of another Lowe’s location, so customers should still be able to find a close one. The company will also try to find jobs at nearby companies for workers affected by the closings.