Published: Mon, November 05, 2018
Money | By Hannah Jacobs

Lowe's to close underperforming stores in US, Canada

Lowe's to close underperforming stores in US, Canada

The affected stores, with locations including New York, Texas and California, as well as British Columbia and other Canadian provinces, are expected to close before February 1, 2019.

Lowe's Companies said it will close 51 stores in the United States and Canada, the latest national retailer to shed its brick and mortar locations amid increasing e-commerce competition.

Lowe's bought Rona, Canada's biggest home improvement chain, in 2016 for about $2 billion, adding about 700 stores to its 40 in the country. The majority of impacted stores, according to the company, are located within 10 miles of another Lowe's store.

Employees at the stores will be provided opportunities to transition to similar roles at another Lowe's store nearby.

Based in Boucherville, Que., Lowe's Canadian business has more than 630 corporate and independent affiliate dealer stores.

No local stores were among those listed to close.

Despite a strong housing market that's benefited the home-improvement retail industry, Lowe's has still trailed its larger competitor, Atlanta-based Home Depot.

The closures will reduce the company's expected annual earnings per share by 28 to 34 cents, it said.

Ellison has also initiated some major shakeups in the company's executive leadership ranks.

Ellison left J.C. Penney where he was also CEO in May to join Lowe's.

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