In another sign of the times for retail, Lowe’s is closing 51 North American stores.
Lowe’s said Monday that those locations are underperforming and the decision will help the hardware chain focus on its most profitable stores.
“The store closures are a necessary step in our strategic reassessment as we focus on building a stronger business,” said CEO Marvin Ellison, in a statement.
Retail stores are struggling to adjust to the rapid rise of online shopping, particularly from Amazon (AMZN). Many successful retailers with big stores have adjusted their business strategies to make better use of their physical spaces. Others, including Sears, Kmart and Toys “R” Us, failed.
Lowe’s and its rival Home Depot have proven to be largely Amazon-proof, because Amazon does not sell lumber or other heavy, bulky home improvement products.
But Lowe’s is struggling to keep up with Home Depot. Last year, Home Depot’s revenue hit more than $100 billion, while Lowe’s sales were below $70 billion. Lowe’s stock price has also lagged behind its rival, leading to pressure from activist investors.
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