MOORESVILLE, N.C. (CBSDFW.COM/CNN) – Calling them “underperforming” locations, Lowe’s is closing 51 stores in North America.
Retail stores are struggling to adjust to the rapid rise of online shopping, particularly from Amazon. Many successful retailers with big stores have adjusted their business strategies to make better use of their physical spaces. Others, including Sears, Kmart and Toys “R” Us, failed.
Lowe’s and its rival Home Depot have proven to be largely Amazon-proof, because Amazon does not sell lumber or other heavy, bulky home improvement products.
But Lowe’s is struggling to keep up with Home Depot. Last year, Home Depot’s revenue hit more than $100 billion, while Lowe’s sales were below $70 billion. Lowe’s stock price has also lagged behind its rival, leading to pressure from activist investors.
Lowe’s said Monday the closings will help the hardware chain focus on its most profitable stores. “The store closures are a necessary step in our strategic reassessment as we focus on building a stronger business,” said CEO Marvin Ellison, in a statement.
Lowe’s will shut down one store in Texas — the location in Irving at 3500 W. Airport Freeway. Nineteen other stores in the U.S. and 31 in Canada will also shutter their doors. All of the locations will be closed by Feb. 1, 2019.
The company said a “majority” of the stores being closed are within 10 miles of another Lowe’s location and they will try to find jobs at those stores for employees affected by the closings.
(© Copyright 2018 CBS Broadcasting Inc. All Rights Reserved. CNN-Wire™ & © 2018 Cable News Network, Inc., a Time Warner Company contributed to this report.)