Lowe’s Canada closing 34 stores
Lowe’s looks to simplify and restructure in Canada.
Following a strategic review of its operations, Lowe’s Canada announced that it will close 34 “underperforming” stores in its network.
The move includes 26 Rona locations, 6 Lowe’s stores, and 2 Reno-Depot stores.
“While making decisions that impact our associates and their families is never easy, closing underperforming stores is a necessary step in our plan to ensure the long-term stability and growth of our Canadian business,” Tony Cioffi , interim president of Lowe’s Canada, said in a statement issued by the company.
“We are taking decisive action to build a healthy business which will provide us with the flexibility to reinvest in our future growth. This includes having a clear strategy for our banners, built on the strength of our Lowe’s, RONA and Reno-Depot brands,” Cioffi said.
Last month, Sylvain Prud’homme retired as president of Lowe’s Canada. He had lead the company’s Canadian division since 2013 and oversaw the acquisition and integration of Rona in 2016. In December 2017, Prud’homme was also named Lowe’s president, international.
But in November 2018, Lowe’s Canada announced the closing of 24 Rona stores, 2 Lowe’s locations and one Reno-Depot.
In its third quarter 2019 earnings report, released today, Lowe’s said that the strategic review also resulted in changes to its Canadian leadership team. For its third quarter, Lowe’s reported net sales of $17.388 billion, down slightly from $17.415 billion in the same quarter last year.
Third quarter earnings increased by nearly 67% to $1.05 billion, however.
Lowe’s also said that it now plans to simplify its multiple store banners in Canada to drive efficiency and reduce operational complexity while reorganizing its corporate support structure across the country. Other moves include rationalizing its product assortment to present a more coordinated offering to Canadian customers, the company said.
“Our objective continues to be providing our Canadian customers with the right products and the best service and value across every channel, for the long term,” Cioffi said.
Lowe’s Canada, a division of Lowe’s Home Improvement, operates and services a network of more than 600 stores including corporate and independent locations. The store network includes five banners: Lowe’s, Rona, Reno-Depot, Ace and Dick’s Lumber.
Nearly a year ago, Lowe’s revealed that it was pulling the plug on its operations in Mexico. In August 2018, the retailer also announced that it was closing all 99 of its Orchard Supply Hardware locations.
As of Nov. 1, Lowe’s said it operates 2,004 stores in the United States and Canada.
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