BOUCHERVILLE, Que. – Lowe’s Companies Inc. says it plans to close 31 Canadian stores and other locations as part of a plan to focus on its most profitable operations.
The closures include 27 mostly Rona stores in Canada including nine in Ontario, nine in Quebec, six in Newfoundland and Labrador, two in Alberta and one in British Columbia.
Lowe’s says it expects to close the impacted stores by the end of the company’s 2018 financial year, Feb. 1, 2019.
Based in Boucherville, Que., Lowe’s Canadian business has more than 630 corporate and independent affiliate dealer stores.
Lowe's Companies Inc. announced this morning that it will be closing 31 stores across Canada, but none of the Barrie-area locations are affected.
Nine store closures, including seven RONA locations, are expected across Ontario, including Mississauga (2), Sault Ste. Marie (2), Sudbury, Peterborough, Kingston, Lakefield and North York.
"While decisions that impact our associates are never easy, the store closures are a necessary step in our strategic reassessment as we focus on building a stronger business," said Marvin R. Ellison, Lowes president and CEO, in a release.
The closures are expected to be completed by February, says the company. It will also close 20 'under-performing' stores in the U.S.
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************************* MOORESVILLE, N.C. – Lowe’s Companies, Inc. (NYSE: LOW) today announced the wind-down of certain underperforming store locations as part of its ongoing strategic reassessment. To focus on its most profitable stores and improve the overall health of its store portfolio, the company will:
“While decisions that impact our associates are never easy, the store closures are a necessary step in our strategic reassessment as we focus on building a stronger business,” said Marvin R. Ellison, Lowe’s president and CEO. “We believe our people are the foundation of our business and essential to our future growth, and we are making every effort to transition impacted associates to nearby Lowe’s stores.”
Lowe’s expects to close the impacted stores by the end of the company’s 2018 fiscal year (Feb. 1, 2019). To facilitate an orderly wind-down, the company intends to conduct store closing sales for most of the impacted locations with the exception of select stores in the U.S., which will close immediately. Lowe’s has partnered with HilcoMerchant Services to help manage the process in the U.S. and ensure a seamless experience for customers.
The expected financial impact of today’s announcement of $0.28 to $0.34 per diluted share was not contemplated in the business outlook for fiscal 2018 which the company provided on Aug. 22 when it released its second quarter earnings. Additional details regarding the impact of the store closings will be provided in the next quarterly earnings release on Nov. 20.