Lowe’s closing 31 Canadian properties, 20 stores in U.S. amid restructuring

Among the 27 stores set to close by the end of January are nine in Ontario, nine in Quebec, six in Newfoundland and Labrador, two in Alberta and one in British Columbia.

Lowe’s Companies Inc. is reducing its Canadian footprint by closing 31 properties across the country in a bid to streamline its business.

The home improvement company said Monday in addition to closing 27 stores, it will also shutter two regional support centres in Mississauga, Ont. and St. John’s, N.L., a truss plant in St. John’s, N.L. and a block plant in Kamloops, B.C. as part of a plan to focus instead on the most profitable parts of its business.

Among the 27 stores set to close by the end of January are nine in Ontario, nine in Quebec, six in Newfoundland and Labrador, two in Alberta and one in British Columbia.

Sylvain Prud’homme, chief executive of Lowe’s Canada, did not say how many employees would be affected by the closures, but said the changes will allow the company to improve collaboration between its banners to better serve customers.

“Everything will be done to ensure a smooth transition until the stores are closed, and Lowe’s Canada will support impacted employees, including by transferring eligible employees to other locations within our network whenever possible,” Prud’homme said in a statement.

In addition to the 31 locations the brand is closing in Canada, it will also axe 20 stores in the U.S.

The Canadian closures amount to a reduction of about three per cent of the brand’s total retail network square footage.

The company currently has 68 Lowe’s and 430 Rona stores in the country — part of its network of 2,390 home improvement locations across North America, including Reno-Depot, Dick’s Lumber, Contractor First and Ace locations it also owns.

Lowe’s Canadian business is based in Boucherville, Que. and has more than 630 corporate and independent affiliate dealer stores.

David Soberman, a University of Toronto professor specializing in marketing and retail, said Lowe’s 2016 acquisition of Rona Inc. in a deal valued at $3.2 billion. has likely fuelled some of the Canadian cuts.

“They probably had too many locations,” he said. “Now, this will mean people will have to drive a bit further to find a Lowe’s or a Rona store.”

He said the company has also been facing fierce competition from fellow home improvement businesses Home Depot Inc. and Canadian Tire Inc. and to some extent, Costco Wholesale Corp. and Walmart Inc., which are “extremely powerful” and stock some home and garden products.

E-commerce giants including Amazon Inc. have also posed a threat because of their efficiency, but Soberman said their impact on Lowe’s is limited because many construction and do-it-yourself products are bulky, heavy and cost more to ship — “not things that are suited to online retail.”

Related: Hero campaign raises $24,000 for Okanagan non-profits

Related: Sears files for bankruptcy amid plunging sales, massive debt

Companies in this story: (TSX:CTC)

Tara Deschamps, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Theresetta School News – March 22nd

Theresetta students and staff are loving the change in weather, which brings a rejuvenating feeling

NDP Leader Rachel Notley stops in Red Deer on campaign trail

Notley promises hospital expansion, cath lab, pipelines and energy industry expansion

Town of Castor celebrates CAO Sandi Jackson’s retirement

Retirement party was held at the Castor Legion on Mar. 15

County of Paintearth to help STARS keep flying in 2019 with a per capita increase

Paintearth County voted to raise the county’s per capita funding of the service from $3 to $5

VIDEO: Restaurant robots are already in Canada

Robo Sushi in Toronto has waist-high robots that guide patrons to empty seats

1,300 cruise ship passengers rescued by helicopter amid storm off Norway’s coast

Rescue teams with helicopters and boats were sent to evacuate the cruise ship under extremely difficult circumstances

B.C. university to offer first graduate program on mindfulness in Canada

University of the Fraser Valley says the mostly-online program focuses on self-care and well being

Sentencing judge in Broncos crash calls for carnage on highways to end

Judge Inez Cardinal sentenced Jaskirat Singh Sidhu to eight years

‘Families torn apart:’ Truck driver in fatal Broncos crash gets 8-year sentence

Judge Inez Cardinal told court in Melfort, Sask., that Sidhu’s remorse and guilty plea were mitigating factors

WestJet sticking with Boeing 737 Max once planes certified to fly

WestJet had expected to add two more of the planes this year to increase its fleet to 13

Fierce house cat spotted as ‘aggressor’ in face off with coyote in B.C. backyard

North Vancouver resident Norm Lee captures orange cat versus coyote in backyard showdown

Wilson-Raybould to reveal more details, documents on SNC-Lavalin affair

Former attorney general has written to the House of Commons justice committee

Most Read