Lowe’s closing 51 stores ’

Jerry Bellune
Posted 11/15/18

Lowe’s is locked in a losing battle with its rival Home Depot.

The NC-based hardware store operator announced this week it is closing 51 US and Canadian stores.

None of the stores to be …

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Lowe’s closing 51 stores ’

Posted

Lowe’s is locked in a losing battle with its rival Home Depot.

The NC-based hardware store operator announced this week it is closing 51 US and Canadian stores.

None of the stores to be closed are in Lexington County or South Carolina.

Lowe’s said the stores are under performing and this will help them focus on the most profitable stores.

Retailers are struggling to adjust to the rapid rise of online shopping, particularly from Amazon.

Many big stores have adjusted strategies to make better use of their physical spaces. Sears, Kmart and Toys ‘R’ Us have failed.

Lowe’s and Home Depot have proven to be safe because Amazon does not sell lumber or heavy, home improvement products.

Lowe’s is struggling to keep up with Home Depot.

Last year, Home Depot’s revenue reached more than $100 billion while Lowe’s was below $70 billion.

Lowe’s stock price has lagged behind, leading to pressure from investors.

Lowe’s named Marvin Ellison, a top Home Depot executive, as its CEO to turn around its fortunes.

Ellison has closed its Orchard Supply Hardware stores and slashed inventory at its Lowe’s stores.

He believes targeting professional home builders and construction companies with higher-quality tools and equipment, more discounts and better customer service will improve Lowe’s.

Sales to home building pros make up around 45% of Home Depot’s sales, but only around 30% of Lowe’s.

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