As the home improvement chain Lowe’s navigates the future of retail, it has announced that it will close 51 of its stores including two in Missouri. The corporation says the stores are “underperforming’ with some of them being closed immediately.
Lowe’s announced the closures on Monday, stating in a media alert that the decision was ‘part of its ongoing strategic reassessment’ and would allow the company to ‘focus on its most profitable stores and improve the overall health of its store portfolio.’
In the US, 20 standalone Lowe’s will be shut down in states including Alabama, Massachusetts, Illinois, Michigan, Texas, Pennsylvania, Missouri and Louisiana. California alone will see four stores get closed.
The two Missouri stores that will be shuttered are in Bridgeton and Florissant in the St. Louis metropolitan area.
‘The majority of impacted stores are located within 10 miles of another Lowe’s store,’ the company said of the American closures, adding that ‘Most associates at these stores will be extended opportunities to transition to a similar role at a nearby Lowe’s store.’
Canadian Lowe’s stores will see steeper cuts, with 31 locations, including two plants, getting the ax in Ontario, Alberta, Quebec, Newfoundland and British Columbia.
Lowe’s said Monday’s announcement would result in charges of 28 cents per share to 34 cents per share or $300 million to $365 million in pre-tax expenses.
Lowe’s operates about 1,800 U.S. stores and 300 in Canada.
In 2017, Lowe’s was said to have brought in less than $70 billion in revenue, compared to Home Depot’s $100 billion, according to the New York Daily News.
Lowe’s is generally believed by customers to have better products and services.