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

Town of Sylvan Lake passes 2019 tax rate, estimates education tax

Sylvan Lake and all municipalities have been left without an education tax from the Province

Town of Sylvan Lake to replace old water meters to streamline monthly billing

Town Council also approved replacing old water meters to the current technology

Drivers reminded impairment and driving don’t mix

National Road Safety Week May 14 to 20

Former Sylvan Lake resident launches latest book

Talena Winters will launch her book at the Sylvan Lake Municipal Library on Friday

Sylvan Lake bans use of charcoal barbecues in Town parks

Visitors and residents picnicking in Sylvan Lake are asked to leave the charcoal barbecues at home

UPDATE: B.C. pilot killed in Honduras plane crash

The crash happened in the Roatan Islands area, according to officials

‘Rope-a-dope’: Environmentalists say Alberta war room threat won’t distract them

Those against Alberta Premier Jason Kenney aren’t worried about promise to fight critics of energy industry

Almost $13 million to be paid to Grande Prairie hospital subcontractors, others

No reasons for the Court of Queen’s Bench order were released

Canada’s parole officers say correctional system has reached breaking point

About half of Canada’s federal parole officers work inside penitentiaries and correctional institutions

Speed, alcohol considered factors in deadly Calgary crash: police

Two female passengers in the Corolla, aged 31 and 65, died at the scene

Montreal researchers create audible hockey puck for visually impaired players

Three years ago, Gilles Ouellet came up with the idea for a puck that makes a continuous sound

‘What’s your number?’: Advocates urge Canadians to check their blood pressure

May 17 is World Hypertension Day, marked to spread awareness on the risks of high blood pressure

National Impaired Driving Enforcement Day is May 18

Alberta RCMP participates in Canada Road Safety Week during Victoria Day long weekend

Alberta issues fire ban in northern part of province due to wildfire threat

The government says the decision was made due to the growing threat of wildfires

Most Read