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

Red Deer’s next winter celebration is just around the corner

Snow and Ice Celebration runs Dec. 1st at Red Deer Civic Yards

Red Deer husband and father of four passes away overseas

A GoFundMe page has been set up to support the family

The Gaetz Avenue bridge is officially open to traffic

After over two years Red Deerians will have an easier commute

Local singer/songwriter Ryan Langlois lands in Project WILD’s top three

Popular artist could land as much as $100,000 for his dream recording project

Festival of Trees celebrates the season while supporting a tremendous cause

The 25th annual Festival of Trees opens Nov. 21st

VIDEO: Shoppers like self-checkout lanes at the grocery store, survey suggests

Grocery Experience National Survey Report suggests most grocery shoppers spend 32 minutes per visit

Pot users, investors need to be vigilant at Canada-U.S. border

U.S. authorities say anyone who admits to having used pot before it became legal could be barred

No deal in sight: Canada Post warns of delivery delays into January

Union holds fifth week of rotating strikes as both sides remain apart on contract negotiations

Police looking into two more incidents at private Toronto all-boys’ school

Police and the school have said two of the prior incidents involved an alleged sexual assault

Air force getting more planes but has no one to fly them, auditor warns

The report follows several years of criticism over the Trudeau government’s decision not to launch an immediate competition to replace the CF-18s.

Bolder action needed to reduce child poverty: Campaign 2000 report card

The report calls for the federal government to provide more funding to the provinces, territories and Indigenous communities to expand affordable, quality child care.

Judge bars US from enforcing Trump asylum ban

Protesters accused the migrants of being messy, ungrateful and a danger to Tijuana; complained about how the caravan forced its way into Mexico, calling it an “invasion.”

Ottawa Redblacks defensive back Jonathan Rose suspended for Grey Cup

Rose was flagged for unnecessary roughness and ejected for contacting an official with 37 seconds left in the first half following a sideline melee after a Tiger-Cats reception.

Mistrial declared in Dennis Oland’s retrial in father’s murder

The verdict from Oland’s 2015 murder trial was set aside on appeal in 2016 and a new trial ordered. Richard Oland, 69, was found dead in his Saint John office on July 7, 2011.

Most Read