Lowe’s Closes 51 Stores

Starting now and in the upcoming year, Lowes and Rona stores will be shutting down across North America. In total 51 stores will be closing. Twenty of the stores are in the U.S. and thirty-one of the stores are in Canada. Lowes is an American home improvement company that has been helping people improve their homes since 1946. Rona is a Canada’s largest retail company that helps people improve hardware, gardening, and home renovation products. Before 2016, Rona was its own company until Lowes decided to buy Rona as apart of the company’s growth strategy.

In July of 2018, Lowes decided to hire former JCPenney CEO, Marvin Ellison. He was named the new CEO of Lowes to help the company thrive. Since joining Lowes, Ellison is starting to get rid of Lowes stores across North America and the company’s Orchard Supply Hardware Stores. Marvin Ellison is not afraid of changing the company if it means that Lowes will be more competitive.

Although both stores are not competitors with online-giant Amazon, since Amazon doesn’t sell lumber or other heavy, bulky home improvement products, Lowes is still struggling to keep up with rival company Home Depot. On average the revenue of Lowes in 2018 was a ‘low’ 70 billion USD compared to Home Depot’s 100  billion USD in 2018. Lowes is struggling with sales of their goods and services.

Will getting rid of many stores and sacrificing jobs help Lowes? Closing stores has helped with sales. Over the past year, Lowes’s sales have gone to 5.3% of all their products and services. Although it doesn’t match Home Depot’s 8% in sales, the company is still trying. Lowes is also trying to make workers take longer shifts. Their reasoning is that it will help with customer service.

Lowes is continuing to do more and more to improve in business. Getting rid of many stores seems like a risky move, but in the end, it just might pay off.