G&M: Lowe’s cuts respond to a cooling market

SPECIAL REPORT — The decision by Lowe’s to shutter 31 sites in Canada, including 27 stores, is part of an overall move by the Canadian division’s head office to identify stores that are not performing as they should. The company is closing another 20 stores in the U.S., as well.

According to speculation by one pundit (oh, no, not him again!—Editor) in a report in the Globe and Mail, Lowe’s Canada is responding to the realities of a slowing housing market and cooling demand from consumers, as young consumers can’t afford a home and older homeowners are downsizing. And while the closing of nine stores in RONA’s home province of Quebec may prove especially sensitive, Lowe’s Canada is had its best year of comparable store sales ever in 2017, so the latest cuts may well be considered a proactive move corporately, despite the costs locally.