Lowe's Closing 20 Stores and Eliminating 2,000 Jobs
Lowe's announced today that it is closing 20 underperforming stores in 15 states. The home improvement retailer is also cutting 1,950 jobs. Lowe's says it will continue to pay these employees for 60 to 90 more days.
Lowe's is also scaling back on its plans for new store openings. Lowe's said in a statement that it now expects to open 10 to 15 stores per year in North America from 2012 forward, compared to a prior assumption of approximately 30 stores per year
Robert A. Niblock, chairman, president and CEO, says, "Closing stores is never easy, given the impact on hard-working employees and local communities. However, we have an obligation to make tough decisions when necessary to improve profitability and strengthen our financial position."
Reuters reports that Lowe's reduced its sales and profit outlook in August. Homeowners delaying renovations because of the bad economy has been linked to Lowe's woes.
Lowe's announced today that it is closing 20 underperforming stores in 15 states. The home improvement retailer is also cutting 1,950 jobs. Lowe's says it will continue to pay these employees for 60 to 90 more days.
