Lowe closes 51 bad stores across the US and Canada.
A Mooresville-based retailer announced on Monday that he will close 20 stores in the US and 31 in Canada to "focus on the most profitable stores and improve the overall health of their sales portfolio".
Lowe said that US stores are closing down immediately. For Canadian locations, Lowe said he would complete the sale of stores and that all affected Canadian sites would end up on February 1, at the end of 2018 in the fiscal year. It is expected that closing of stores will have a financial impact of 28-34 cents per diluted share, said Lowe.
Most of the US stores that need to be closed are within 10 miles of other Lowe stores, the company said, so the affected employees will be able to transfer to similar applications in nearby locations. None of the US stores closing in are in Carolina, according to the list published on the Lowe website.
Lowe currently manages a total of 2,390 homes to improve and sell hardware.
"While decisions affecting our employees are never easy, closing the shops is an essential step in our strategic re-assessment, as we focus on building stronger business," said Lowe's manager Marvin Ellison.
Despite the strong housing market, which benefited the domestic retail industry, Lowe's still captured a bigger competitor, Atlanta Home Depot.
In order to catch up, Lowe's worked to reduce costs and increase profits in recent years. Even in the first few months as the new director of Lowe, Ellison has taken many steps to improve the financial health of the company.
For example, Lowe announced this summer to stop its Orchard Supply Hardware chain, which the company bought in 2013 for $ 205 million, to "focus on the core home improvement business." Lowe is in the process of closing all 99 Orchard Store Supplies that are in California, Oregon and Florida as well as a distribution center by the end of the year.
Ellison also started some major shocks in leading positions in the leading company.
Last week, for example, Lowe hired Seemantini Godbole, senior vice president of Target's Digital and Market Technologies, as his new chief information officer. Lowe also removed some high profile profiles, such as its chief executive officer and chief customer trustee, and replaced them with other applications reporting directly to Ellison.
In an interview with Observer last month, Ellison said that Lowe was considered a "transformation" rather than a "reversal" such as J.C. Penney, where he spent the last three years as Executive Director. The advantage for Lowe is now, he said, improving the basic "trade foundations".
This includes, for example, the reinstallation of the inventory, which ensures that popular products are always in stock and that Lowe cleans unpopular products that collect dust on the shelves.
"In this transformation, we will first focus on small foundations, and at the same time we will modernize this company from … the digital and IT perspective and from the point of view of the supply chain and we will create a truly excellent company," said Ellison.