Lowe’s to close 51 stores
Lowe’s Companies is closing 51 underperforming U.S. and Canadian stores as part of a “strategic assessment.”
The home improvement giant is closing 20 stores in the United States (the majority of which are located within 10 miles of another Lowe’s) and 31 in Canada in a move to improve the overall health of its store portfolio. The closures are expected to be completed by Feb. 1, 2019 (the end of the company’s 2018 fiscal year), with an anticipated impact on per-share earnings from 28 cents to 34 cents.
Lowe’s is in the midst of a restructuring under new CEO Marvin Ellison, who took the reins in July. In August, the company said it was pulling the plug on its Orchard Supply Hardware division — closing all 99 stores — in order to focus on its core home improvement warehouse model. Lowe’s is also working to rationalize store inventory and reduce lower-performing inventory while investing in increased depth of high velocity items,
“While decisions that impact our associates are never easy, the store closures are a necessary step in our strategic reassessment as we focus on building a stronger business,” said Ellison.
The retailer is planning to conduct store closing sales for most of the locations with the exception of select stores in the U.S., which will close immediately. Lowe’s has partnered with Hilco Merchant Services to help manage the process in the United States. Ellison said that most employees in the U.S. stores scheduled to close will be given the opportunity to move to a similar role at a nearby Lowe’s.
To see a list of the store locations that will be closing in the U.S. and Canada, click here.
Regional home-improvement/furnishings chain liquidating
Home Owners Bargain Outlet is going out of business.
The chain, which filed for Chapter 11 bankruptcy protection on October 26, 2018, is closing its seven stores (five in the Chicago area and two in Wisconsin). Joint venture partners Tiger Group, Great American Group (a subsidiary of B. Riley Financial) and HyperAMS are liquidating HOBO’s entire inventory of about 1.5 million items (valued at more than $23 million) in ongoing sales at all HOBO stores.
“The home improvement business has always been incredibly competitive,” said Tiger Group COO Michael McGrail. “In addition to the top two big-box chains with their tremendous economies of scale and dominant real estate positions, the advanced e-commerce efforts of these players, Amazon and others clearly have created huge challenges for smaller operators like HOBO.”
The sales includes flooring, housewares, furniture, bath products, appliances, electronics, hardware, tools, home decorations lawn/garden items, along with furniture and bedding.
Store locations are as follows:
2650 Belvidere Road, Waukegan
8716 S. Cicero Avenue, Oak Lawn
300 W. North Avenue, Villa Park
1693 S. Plainfield Road, Crest Hill
7630 W. Roosevelt Rd, Forest Park
800 S. 108th Street, West Allis
3545 S. 27th Street, Milwaukee
Beverly Center unveils $500 million transformation
An extensive renovation has transformed every aspect of Beverly Center, an iconic shopping destination in Los Angeles for 36 years.
Key focus areas for the project including creating a bright, contemporary exterior that connected the center to the neighborhood, bringing in plenty of natural light, further enhancing the retail and restaurant lineup, and ensuring easy access and parking. The mall, owned by Taubman Centers, remained open during all three phases of construction. (A rival Los Angeles mall, Westfield Corp.’s Century City, unveiled a $1 billion redevelopment in October 2017.)
“We thank the community for its ongoing patronage of Beverly Center during the reimagination, and for the three-and-a-half decades of support that have made the center one of the nation’s premier shopping and dining destinations,” said COO William S. Taubman. “Even before the renovation was complete, traffic and sales productivity materially improved, and the center continues to perform above our expectations.”
The design architect for the reimagination of the 886,000-sq.-ft. center was Studio Fuksas (Rome, Italy). The new features include:
• A 25,000 sq. ft., gently curving, high-performance skylight ribbon of glass that triples the amount of skylight in the center and floods it with natural light;
• New and expanded floor openings to allow sunlight to reach all floors and improve sight lines to other levels;
• Special lighting within the floor openings and valet entrances that provides a stunning visual environment day and night;
• An undulating white exterior featuring a modern metal mesh façade that allows natural light into the parking garage and is a glistening backdrop to a new, programmable exterior LED lighting system;
• A lush streetscape with drought-resistant greenery that enhances the new, pedestrian-friendly environment;
• A new “Grand Court” gathering space with a giant LED screen, plenty of seating and places to charge devices or connect with others. The space can also be used to hold special events.
• An advanced, M4 camera-based smart parking system by Park Assist that improves the arrival and departure experience in the four-level, 3,000 space garage, including helping visitors find a parking space, and locate their vehicle
For a list of the new retail and dining tenants and/or expansions, click here.