Lowe's closes stores in Aurora and Oswego
Lowe's home improvement superstores in Aurora and Oswego were among 10 nationwide that shut down for good at the end of business Sunday.
Lowe's Companies, Inc., announced Monday it was closing 20 “underperforming stores” in 15 states. The remaining 10 stores will close within a month, following an inventory sell-through, the company said.
Employees were told of the move Sunday night. Calls to the locations Monday morning went directly to a recording that tells customers “this location is permanently closed.” People are then directed to contact the St. Charles location for help with their shopping needs.
The nation's second largest home improvement company followed a similar outline in closing the stores Sunday that it did in August when stores in Elgin and Schaumburg were closed. The Elgin and Schaumburg stores were targeted because they routinely missed sales estimates, company officials said.
In the latest round of closings, 1,950 people will lose their job.
“Closing stores is never easy, given the impact on hardworking employees and local communities,” said Robert A. Niblock, Lowe's chairman, president and CEO.
Lowe's, based in Mooresville, N.C., operates about 1,700 stores nationwide. It has curtailed its expansion plans, announcing it will only open 10 to 15 stores in North America annually beginning in 2012. The company had expected to open 30 stores per year.
Lowe's says the moves will cost it 17 cents to 20 cents per share in 2011.
In August, Lowe's said volatile weather and shoppers' worries about the economy hurt demand. Its net income was nearly flat in the second quarter and the company lowered its yearly sales forecast. Additional details regarding the impact of the most recent closings will be provided in the next quarterly earnings release Nov. 14.
The company said the employees now out of work will receive pay and benefits for up to 90 days. In addition, Lowe's will be working with local government agencies to help employees with outplacement assistance.