Lowe's to Close 20 Underperforming Stores
October 24, 2011,
MOORESVILLE, N.C.--Lowe's said it is shutting down 20 underperforming stores in 15 states.
Ten locations closed last week. The remaining 10 stores will close within about one month, following the sell-through of their inventory. The closings are taking place in California, Colorado, Illinois, Louisiana, Massachusetts, Maine, Michigan, Minnesota, New Hampshire, New Jersey, New York State, Rhode Island, Virginia, Washington State and Wisconsin.
The home-improvement retailer added that it is scaling back on planned store openings down the road. It said it now expects to open 10 to 15 new stores a year in North America from 2012 forward, compared to its prior projection of about 30 new stores a year. Lowe's still expects to open 25 new stores by the end of this year, the company said.
Robert Niblock, chairman, president and CEO, said Lowe's has "an obligation to make tough decisions when necessary to improve profitability and strengthen our financial position. Lowe's remains committed to making strategic investments and focusing resources in a manner that will generate the greatest shareholder value, enhance the customer shopping experience and create sustained customer loyalty over the long term."
For the first half of this fiscal year, Lowe's posted a 2.2 percent drop in net income, to $1.3 billion, and flat net sales of $26.7 billion.