LoweB次元官网网址檚 Companies Inc. is reducing its Canadian footprint by closing 31 properties across the country in a bid to streamline its business.
The home improvement company said Monday in addition to closing 27 stores, it will also shutter two regional support centres in Mississauga, Ont. and St. JohnB次元官网网址檚, N.L., a truss plant in St. JohnB次元官网网址檚, N.L. and a block plant in Kamloops, B.C. as part of a plan to focus instead on the most profitable parts of its business.
Among the 27 stores set to close by the end of January are nine in Ontario, nine in Quebec, six in Newfoundland and Labrador, two in Alberta and one in British Columbia.
Sylvain PrudB次元官网网址檋omme, chief executive of LoweB次元官网网址檚 Canada, did not say how many employees would be affected by the closures, but said the changes will allow the company to improve collaboration between its banners to better serve customers.
B次元官网网址淓verything will be done to ensure a smooth transition until the stores are closed, and LoweB次元官网网址檚 Canada will support impacted employees, including by transferring eligible employees to other locations within our network whenever possible,B次元官网网址� PrudB次元官网网址檋omme said in a statement.
In addition to the 31 locations the brand is closing in Canada, it will also axe 20 stores in the U.S.
The Canadian closures amount to a reduction of about three per cent of the brandB次元官网网址檚 total retail network square footage.
The company currently has 68 LoweB次元官网网址檚 and 430 Rona stores in the country B次元官网网址� part of its network of 2,390 home improvement locations across North America, including Reno-Depot, DickB次元官网网址檚 Lumber, Contractor First and Ace locations it also owns.
LoweB次元官网网址檚 Canadian business is based in Boucherville, Que. and has more than 630 corporate and independent affiliate dealer stores.
David Soberman, a University of Toronto professor specializing in marketing and retail, said LoweB次元官网网址檚 2016 acquisition of Rona Inc. in a deal valued at $3.2 billion. has likely fuelled some of the Canadian cuts.
B次元官网网址淭hey probably had too many locations,B次元官网网址� he said. B次元官网网址淣ow, this will mean people will have to drive a bit further to find a LoweB次元官网网址檚 or a Rona store.B次元官网网址�
He said the company has also been facing fierce competition from fellow home improvement businesses Home Depot Inc. and Canadian Tire Inc. and to some extent, Costco Wholesale Corp. and Walmart Inc., which are B次元官网网址渆xtremely powerfulB次元官网网址� and stock some home and garden products.
E-commerce giants including Amazon Inc. have also posed a threat because of their efficiency, but Soberman said their impact on LoweB次元官网网址檚 is limited because many construction and do-it-yourself products are bulky, heavy and cost more to ship B次元官网网址� B次元官网网址渘ot things that are suited to online retail.B次元官网网址�
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Tara Deschamps, The Canadian Press
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