Lowe’s Will Close 20 Underperforming US Stores, 31 in Canada

MOORESVILLE, NC—Home improvement retailer Lowe’s reports that as part of its ongoing strategic reassessment, it will be closing 51 store locations—20 in the United States and 31 in Canada.

Lowe’s expects to close the underperforming locations by the end of its 2018 fiscal year (Feb. 1, 2019). Among the stores targeted for shut down include two locations in Manhattan at 2008 Broadway on the Upper West Side and 635-641 6th Ave. in Chelsea. According to the two stores’ respective website, both locations have already been permanently closed.

Lowe’s, which has numerous locations in the New York metropolitan area, also plans to shut down a location in Orange, CT. The store’s website states that the store will closing permanently soon.

No New Jersey stores are on the list of store closures released today by Lowe’s. California has the most planned store closures at four with locations in Aliso Viejo, Irvine, South San Francisco and San Jose to close their doors in the near future.

The 31 store locations in Canada include one in British Columbia, two in Alberta, nine in Ontario, nine in Quebec and six in Newfoundland, as well as four non-store facilities that are being closed or consolidated.

Most associates at the shuttered stores will be extended opportunities to transition to a similar role at a nearby Lowe’s store, the company states, noting that the majority of impacted stores are located within 10 miles of another Lowe’s location.

“While decisions that impact our associates are never easy, the store closures are a necessary step in our strategic reassessment as we focus on building a stronger business,” says Marvin R. Ellison, Lowe’s president and CEO. “We believe our people are the foundation of our business and essential to our future growth, and we are making every effort to transition impacted associates to nearby Lowe’s stores.”

Lowe’s intends to conduct store closing sales for most of the impacted locations with the exception of select stores in the U.S., which will close immediately. The company did not provide a list of stores that will close immediately. Lowe’s has partnered with Hilco Merchant Services to help manage the process in the US.

The expected financial impact  of the announcement of $0.28 to $0.34 per diluted share was not contemplated in the business outlook for fiscal 2018, which the company provided on Aug. 22 when it released its second quarter earnings.

Lowe’s reported second quarter net earnings of $1.5 billion and diluted earnings per share of $1.86 for the quarter ended Aug. 3, 2018, which included non-cash pre-tax charges of $230 million, compared to net earnings of $1.4 billion and diluted earnings per share of $1.68 in the second quarter of 2017. Excluding the impact of these charges, adjusted diluted earnings per share increased 31.8 percent to $2.07 from adjusted diluted earnings per share of $1.57 in the second quarter of 2017.

The $230 million non-cash pre-tax charges referenced above resulted from the company’s strategic reassessment of Orchard Supply Hardware, which led to long-lived asset impairments and discontinued projects during the second quarter and a decision by the company on Aug. 17, 2018, to exit these operations in order to focus on its core home improvement business.

The company expects to close all 99 Orchard Supply Hardware stores, which are located in California, Oregon and Florida, as well as the distribution facility that services those stores by the end of fiscal 2018.

To facilitate an orderly wind-down, the company intends to conduct store closing sales and has partnered with Hilco Merchant Services to help manage the process and ensure a seamless experience for customers. Additional pre-tax costs of $390 to $475 million related to lease obligations, accelerated depreciation and amortization, and severance obligations are expected to be incurred in the second half of fiscal 2018.

Sales for the second quarter increased 7.1% to $20.9 billion over the second quarter of 2017, and comparable sales increased 5.2%.

The following is a list of US store locations that will be closing:

Alabama

Lowe’s of Graysville, AL (Store #3039)

1100 Bankhead Hwy SW

Graysville, AL 35073

California

Lowe’s of Aliso Viejo, CA (Store #1900)

26501 Aliso Creek Rd.

Aliso Viejo, CA 92656

Lowe’s of Irvine, CA (Store #769)

13300 Jamboree Rd.

Irvine, CA 92602

Lowe’s of South San Francisco, CA (Store #2452)

720 Dubuque Ave.

South San Francisco, CA 94080

Lowe’s of Central San Jose, CA (Store 2842)

750 Newhall Dr.

San Jose, CA 95110

Connecticut

Lowe’s of Orange, CT (Store #621)

48 Boston Post Rd.

Orange, CT 06477

Illinois

Lowe’s of Granite City, IL (Store #3028)

1333 Schaefer Rd.

Granite City, IL 62040

Lowe’s of Gurnee, IL (Store #1829)

7735 Grand Ave.

Gurnee, IL 60031

Indiana

Lowe’s of Portage, IN (Store #1778)

6221 US Hwy 6

Portage, IN 46368

Louisiana

Lowe’s of E. New Orleans, LA (Store #2690)

5770 Read Blvd.

New Orleans, LA 70127

Massachusetts

Lowe’s of Quincy, MA (Store #2267)

599 Thomas Burgin Pkwy.

Quincy, MA 02169

Michigan

Lowe’s of Burton, MI (Store #761)

4274 E Court St.

Burton, MI 48509

Lowe’s of Flint, MI (Store #669)

2100 T.A. Mansour Blvd.

Flint, MI 48532

Minnesota

Lowe’s of Mankato, MN (Store #2855)

2015 Bassett Dr.

Mankato, MN 56001

Missouri

Lowe’s of Bridgeton, MO (Store #2299)

11974 Paul Mayer Ave.

Bridgeton, MO 63044

Lowe’s of Florissant, MO (Store #748)

3180 N Hwy. 67

Florissant, MO 63033

New York

Lowe’s of Manhattan – Upper West Side (Store #3292)

2008 Broadway

New York, NY 10023

Lowe’s of Manhattan – Chelsea (Store #3293)

635-641 6th Ave.

New York, NY 10011

Pennsylvania

Lowe’s of Shippensburg, PA (Store #2816)

250 South Conestoga Dr.

Shippensburg, PA 17257

Texas

Lowe’s of Irving, TX (Store #1811)

3500 W Airport Fwy.

Irving, TX 75062