Lowe's announced on Monday that it will close 51 North American stores, including 20 stores in the U.S., CNN reports, as part of the strategic reorganization of the company. The retailer said the stores being closed are "underperforming" and the decision will help the hardware chain focus on increased profitability.
While large retailers such as Lowe's and Home Depot have mostly been able to escape the impact of online retailers like Amazon, Lowe's has fallen behind Home Depot's pace. Earlier this year, Lowe's announced the closure of all 99 of its Orchard Supply Hardware stores nationwide by Feb. 1, in a move made to "focus on its core home improvement business." This move was reinforced by the appointment of home improvement industry veteran Marvin Ellison as CEO.
Ellison has already made some big strategic decisions, including closing all of its Orchard Supply Hardware Stores and slashing inventory at its Lowe's stores.
He believes targeting professional home builders and construction companies with high-quality tools and equipment, additional discounts, and better customer service will improve Lowe's. Sales to to home building pros make up around 45% of Home Depot's sales, but only around 30% of Lowe's sales, according to analysts at Wedbush Securities.
Lowe's expects to close the impacted stores by the end of the company's 2018 fiscal year on Feb. 1.Read More