Lowe's laying off 2,000, closing 20 stores, canceling new ones
The North Carolina home-construction supply chain will only open 10-15 stores/year, not the promised 30
Lowe's laying off 2,000, closing 20 stores, canceling new ones
Joseph N. DiStefano
Lowe's Companies, having apparently given up on hopes of a rapid recovery for US consumers, has "discontinued" plans for dozens of new stores. The North Carolina-based construction and home supply chain says it will only open 10-15 new stores a year in the forseeable future, not the 30 a year it previously projected. It's not that Lowe's doesn't have the money. The company is spending $5 billion buying back its own stock to prop up share prices, notes Gimme Credit analyst Carol Levenson. It's that Lowe's believes the "slump" won't end soon, she adds.
The North Carolina-based chain also says it's laying off around 1,950 workers at 20 "underperforming" stores it plans to close, mostly in New England and the Midwest. The closest to Philly is in Old Bridge, NJ. List and statement here. "We have an obligation to make tough decisions when necessary to improve profitability and strengthen our financial position," said chairman Robert A. Niblock in the statement. Lowe's, a smaller rival of Home Depot, claims $49 billion in yearly sales at its 1,725 North American stores, which include 25 new this year.
Blame it all on Bil Clinton and Robert Rubin— Lew Klein
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Personally, I love Home Depot's. I always grab a few of those hot dogs they sell up front. But......sadly, I have now been banned from Home Depot for life. Well, you know how big those stores are. Those two hot dogs went thru me....and all of a sudden, I had to find a bathroom, cause I had the "Kentucky Quick Step" (if ya catch my meanin') Well......I happened to be in the plumbing dept. at the time. You know....there should really be a sign on those toilets they got out there that says "For Display purposes only". The next thing I know, while I'm readin' the paper on the komode, some sales manager has me by the neck...and I'm out on the pavement. Well.......the upside of this story is that someone is gonna get a 'half off price' on a used toilet plunger.— Yermak29- I too drive a little further to shop at Lowes, because all the HD's in Chester /Montco that I've visited were staffed by very, unhappy people. There was a time when HD hired skilled trades people to staff their department, but no more.— Jean Valjean
- I'm glad were in the great Obama recovery...they'll change their mind in a few days.
Then we'll have a new list--how many Lowe's "saved."— barneygoogle - the rich get richer and the poor gets poorer. Sorry for the folks that will be outta jobs.— sha31
- Lowes' revenues have been flat for the past 4 years (I'm not sure if the numbers of stores have increased in the same time period). Net Income has dropped from $3 billion to $2 billion in the last 4 years. They're probably being hurt by commodity prices and healthcare costs.— AvoidSundanceVacations
Over expansion has been, and will continue to be, the death of many companies. IMPROVE what you have. Can anyone say greed?— Ben Fan- The "occupy wall street" crowd believes Lowes should open 1000 stores per year and run them all at a loss so more Americans will have jobs and health care. This is the same business model that Government Motors, Fannie & Freddie, and the Postal Service all operate under. Who needs profits and revenues?— Desslok of Gamilon
- I agree that Lowes is way better than Home Depot. Housing will be in the dumps for several more years.— damnels
