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

Ponoka mayor asks for letter of support from Rimbey town council

Ponoka council plans to withhold education tax

Town will monitor ice thickness

Water in storm pond 17 feet deep

Regional fire chief speaks to council

Number of false alarm calls cause concern

Rimbey New Year’s baby

Rimbey area couple celebrate new baby

UK lawmakers reject Brexit deal in 432-202 vote

House of Commons votes against the deal struck between Britain’s government and the EU

Wetaskiwin ‘Yellow Vest’ protest Jan. 12

Wetaskiwin residents protest Liberal/NDP carbon taxes, failure to support pipelines

Olivia and Liam top list for Alberta baby names in 2018

Premier Rachel Notley announced the top baby names in Alberta in 2018; Loki didn’t make the cut

Edmonton Police charged 236 people with auto theft in 2018

Police states many of the thefts are crimes of opportunity

Official torchbearers for 2019 Canada Winter Games announced

Canada Games officials open time capsule from Grande Prairie Games in 1995

Alberta Health Services, United Nurses of Alberta reach agreement to settle union grievance of nursing staffing shortage

Settlement includes the designation of 11.7 full-time-equivalent Registered Nurse relief positions

Woman’s complaint leads to sexual assault charge against Calgary priest

Malcolm Joe D’Souza, who is 62, has been charged with one count of sexual assault

Saudi teen who was granted asylum in Canada says she’s a lucky one

Rahaf Mohammed Alqunun was fleeing abusive family back home

Most Read