Lowe's Closing 51 Stores

Gladys Abbott
November 5, 2018

Three stores in the GTA have been marked for closure - two Rona locations in Mississauga and the Lowe's at Centrepoint Mall.

It says most of the impacted stores will close by February 1, 2019.

The company is also closing 20 stores in the U.S.

The majority of the USA stores to close are within 10 miles of other Lowe's stores, the company said, so affected employees will have the opportunity to transfer to similar roles in nearby locations.

The list of other US stores closing include locations in Alabama, California, Connecticut, Indiana, Louisiana, Massachusetts, Michigan, Minnesota, New York, Pennsylvania and Texas.

While Lowe's is far smaller and less exposed to the presence of Amazon and other online sellers, the closures follow a wave of similar moves by traditional USA retailers in the face of greater online competition.

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Lowe's bought Rona, Canada's biggest home improvement chain, in 2016 for about US$2 billion, adding about 700 stores to its 40 in the country.

The home improvement company is not the only retailer to close its doors in recent months. Its next earnings report is on November 20.

Lowe's made the announcement Monday. As recently as August, Lowe's held a job fair for the store.

E-commerce giants including Amazon Inc. have also posed a threat because of their efficiency, but Soberman said their impact on Lowe's is limited because many construction and do-it-yourself products are bulky, heavy and cost more to ship - "not things that are suited to online retail".

Sylvain Prud'homme, chief executive of Lowe's Canada, did not say how many employees would be affected by the closures, but said the changes will allow the company to improve collaboration between its banners to better serve customers.

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