Just weeks after a series of store closings and market consolidation moves, 84 Lumber revealed today, April 7, it will close 30 more stores across the country as a weak housing market continues to take its toll, ProSales senior editor Andy Carlo reports.
A total of 10 stores will be closed and consolidated in core markets, the company said. 84 Lumber will close an additional six stores and exit those markets altogether while it shutters another 14 stores in underperforming markets.
The 10 stores being closed and consolidated into core markets are in Visalia, Calif.; Gastonia, N.C.; Apex, N.C.; Copley, Ohio; Burlington, N.J.; Saginaw, Stafford and Deer Park, Texas; Gonzales, La.; and South Kansas City, Mo. In each case, customers for those locations will be served by a neighboring, larger facility, 84 Lumber said in a statement released by the company today.
"As we continue to assess our store operations and current state of the new home construction market, we are decisively closing stores that are operating in unprofitable markets and consolidating others in metro markets," said Frank Cicero, executive vice president, store operations. "By reducing the number of stores in some metro markets and utilizing a 'Hub' store, which offers a variety of services, we can operate more efficiently in these markets,"
In six markets, 84 Lumber "has assessed that the company does not have the level of resources or stores to efficiently and profitably serve those markets, and will close the following stores," the company said. They markets are Tucson, Ariz.; Forest Grove, Ore.; Meridian, Ind.; Corpus Christi, Texas; Milton, Fla.; and Gilroy, Calif.
"Given the current state of the overall market, we want to direct our resources into those core markets where we have substantial operations," noted Cicero. "While these six markets have reasonable activity, we have decided to exit these markets for the time being."
The 14 stores being closed due to low or no housing growth in their markets are in Sidney, Greenville, Marysville and Zanesville, Ohio; Ann Arbor and Flint, Mich.; New Castle, Ind.; Bluff City, Tenn.; Harrisonburg, Va.; Lafayette, N.J..; Williamstown, W.Va.; Cabot, Ark.; Kingsland, Ga.; and Albertville, Ala.
Last month 84 Lumber announced a similar set of closings and consolidation moves involving another nine locations but said it would exit just one market: Santa Rosa, Calif. 84 Lumber operates more than 380 locations nationwide, including component manufacturing facilities.
