Arnon Dror | Lowe’s 47 Store Closures
It looks like the retail apocalypse isn’t over yet, says finance executive Arnon Dror. Lowe’s, which specializes in the home improvement space, is reportedly going to close 47 stores in the US and Canada. The news was met with mixed reactions.
Compared to its biggest rivals such as Home Depot, Lowe’s is faring very poorly, says Arnon Dror. Home Depot’s revenues was able to breach the $100 billion mark while Lowe’s is lagging way behind at $70 billion. Consequently, this has caused Lowe’s stock price to drop to a low of $92.86 last October 29 from a high of $116.84 last September 21.
Lowe representatives explained that the store closures were “a necessary step” in the company’s “strategic reassessment to building a stronger business.” Unfortunately, this means hundreds of employees will be laid-off. On the part of Lowe’s, management has expressed that they will try to find jobs at nearby stores for its employees.
Of the 47 store closures, 20 stores are in the United States while the other 27 are in Canada. All stores are expected to be closed before February 1, 2019. Image Source: YouTube
The news comes after Lowe’s appointed a new CEO in the company, home improvement retail veteran Marvin Ellison who was at the top helm of rival Home Depot for more than a decade. While this is a positive development for the struggling company, Arnon Dror explains that it may have come too little and too late, as Lowe’s was not able to pivot in time to fight off the popularity of online shopping.
The finance executive said that this should serve as another bloody warning for major retailers who have not yet adjusted their businesses to capture online shoppers. Lowe’s is but one of many retailers who have been badly hit by the retail apocalypse. Joining Lowe’s is Sears, Kmart, and of course Toys R Us.
Aside from the store closures, the newly-minted CEO said that Lowe’s will also reduce inventory and close all Orchard Supply Hardware stores. V says the move to cut down inventory is one of the easiest and fastest ways the company can improve its cash flow and make better use of its money.
For readers who have not been notified of the store closures, the following have been identified for closure in the country:
1100 Bankhead Hwy SW, Graysville
26501 Aliso Creek Rd, Aliso Viejo
13300 Jamboree Rd, Irvine
720 Dubuque Ave, South San Francisco
750 Newhall Dr, San Jose
48 Boston Post Rd, Orange
1333 Schaefer Rd, Granite City
7735 Grand Ave, Gurnee
6221 US Hwy 6, Portage
5770 Read Blvd, New Orleans
599 Thomas Burgin Pkwy, Quincy
4274 E Court St, Burton
2100 T.A. Mansour Blvd, Flint
2015 Bassett Dr, Mankato
11974 Paul Mayer Ave, Bridgeton
3180 N Hwy 67, Florissant
2008 Broadway, New York
635-641 6th Ave, New York
250 South Conestoga Dr, Shippensburg
3500 W Airport Fwy, Irving
Arnon Dror would like to hear your thoughts on the retail apocalypse. Leave him a comment below.