No, Lowes Store Is Not Going Out of Business: It’s Just Rumor and Fear
Is Lowes really going out of business or is this just another rumor that is circulating?
Well, according to the Portland Press, the Biddeford store found itself auctioning off over 2,000 items in January of 2012. Some of the items included were appliances, kitchen cabinets, mirrors and lumber. Some of the items were taken from other stores that were closed down due to their underperformance in October of 2011.
Not only were the stores in Biddeford closed, but in Ellsworth and 15 other states. With a total of 20 stores left to rot, what is the scoop on why this is happening? Although, this cuts close to over 2,000 jobs, Lowes is confident that this decision will help them put their full attention into locations that will prove to be more profitable. In fact, in October of 2011, the company announced that they would be opening up to 15 stores in North America starting in 2012 and moving forward.
Is this a smart move? Due to the company’s flat profit during the second Quarter, the company seems to think so. On Thursday, Lowes made it clear that in early 2013, they will need to fill 175 positions in Wilkesboro. In fact, they have had a pretty impeccable employment growth since the whole ordeal of shutting down the stores because of their numerous orders that they obtain through their website.
Steve Salazar, public relations manager for Lowes, believes that this center will allow them to meet the needs of their customers better and improve the experience they have with Lowes. The company was built in 1946 and is focused on changing with the demands of their customers. Because of the increasing orders on their website due to the popularity of the Internet, they are able to increase more employment opportunities to the public.
With home improvement stores all over Mexico, Canada and the United States, they are able to serve about 1-15 million customers a week. The fortune 100 company employs over 20,000 employees and operates over 1700 stores. Not to mention, their fiscal sales were reported for 2011 as over $50 billion, and when you are looking for one of the largest retail home improvement stores in the world, they run in second.
Even with the years of home values dropping and foreclosures, the company was still able to succeed by turning their large home projects into some smaller home projects. While they may have lost a bit in the drop, their sales quickly rose 2% as their rival home depot followed along. Because the company employed 4-6 supervisory staff at their stores, their jobs were the first to cut and be redefined.
The rumor that is going around about Lowes shutting down is all that it is; a rumor. President and CEO of the company, Robert A. Niblock states that it is difficult to see so many people losing their jobs, but to strengthen their company’s financial standpoint; the decision had to be made. However, as more and more stores are built in the coming years, the loss will be accounted for.