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

Author presents wolf research in Tofino

Paula Wild surprised by polarized views of animals that are both loved and hated.

A cuddle and a coffee: Six Island towns named among Canada’s most cozy

Sidney, Campbell River, Courtenay, Parksville, Tofino and Ucluelet crack Expedia’s top 40

Ucluelet police seize firearms and cocaine in drug trafficking investigation

The file remains under investigation and charges are pending.

New Coast Guard radar boosts marine traffic monitoring off B.C. coast

Six radar installations set up for Georgia Strait to Queen Charlotte Strait to Prince Rupert

Mainroad awarded 10-year maintenance contract for Tofino-Ucluelet Hwy. 4

See an issue on the highway? Report it to the Mainroad 24-hour hotline: 1-877-215-6006.

Saving salmon: B.C. business man believes hatcheries can help bring back the fish

Tony Allard worked with a central coast First Nation to enhance salmon stocks

High-end B.C. house prices dropping, but no relief at lower levels

But experts say home ownership remains out of reach for many for middle- and lower-income families

Worker killed in collision at B.C. coal mine

Vehicle collision occurred at approximately 10:45 a.m. this morning

B.C. asking for tips on ‘dirty money’ in horse racing, real estate, luxury cars

Action follows a Peter German report on money laundering in B.C. casinos

Canadian dead more than a week after plane crash in Guyana: Global Affairs

Global Affairs said it couldn’t provide further details on the identity of the Canadian citizen

Children between 6 and 9 eligible for $1,200 RESP grant from province

BC Ministry of Education is reminding residents to apply before the deadline

Victoria spent $30,000 to remove John A. Macdonald statue

Contentious decision sparked controversy, apology from mayor

Privacy concerns over credit card use for legal online pot purchases

Worries follow privacy breaches at some Canadian cannabis retailers

NEB approves operating pressure increase to repaired Enbridge pipeline

The pipeline burst outside of Prince George on Oct. 9, now operating at 85 per cent

Most Read