Lowe’s has announced that they are closing twenty of its locations in the United States, resulting in almost two thousand people losing their jobs. As of January 2011, there were seventy-three thousand employees working part time and one hundred sixty-one thousand full time employees. They are also canceling its store-opening plans in order to improve their profitability. Starting in 2012, Lowe’s is planning to open only ten to fifteen new stores in the United States per year. This is down from the previous goal of thirty stores.
Lowe’s, a home improvement store, has approximately one thousand seven hundred stores in the United States and on Sunday, they closed ten stores. Within a month, they are planning to close another ten stores.
Expenses, which include employee layoffs, inventory adjustments, and lease obligations, from the closing of the stores come to between one hundred and one hundred thirty million dollars. The abandoned store openings and store closings, including non-cash expenses, will reduce earnings per shares this fiscal year by seventeen to twenty cents. Lowe’s has also made the announcement that they are planning to buy back five billion dollars of its shares.
The announcement of Lowe’s closing stores in the Untied States starting in 2012 follows on the heels of Gap Inc announcing last week that they were closing two hundred of its stores in the United States.