The Canadian arm of U.S.-based retailer Lowe’s will be closing down 34 stores north of the border starting this January, the company announced.
“While making decisions that impact our associates and their families is never easy, closing underperforming stores is a necessary step in our plan to ensure the long-term stability and growth of our Canadian business,” Lowe’s Canada interim president Tony Cioffi stated in a release, as quoted by BNN Bloomberg.
“We are taking decisive action to build a healthy business which will provide us with the flexibility to reinvest in our future growth. This includes having a clear strategy for our banners, built on the strength of our Lowe’s, RONA, and Reno-Depot brands.”
This will follow the prior closure of 31 Canadian locations last February. Ontario and Quebec represent the bulk of stores that will be shuttered next year.
However, CoStar Canada assured earlier this month that retail continues to have a vibrant presence in the nation’s commercial property segment, despite recent withdrawals by Lowe’s and fashion giant Forever 21.
Retail strength is particularly apparent in Ontario, a market that enjoys low commercial vacancies, high asking rents, and sustained demand.
Among the most prominent forces affecting Canada’s commercial assets is e-commerce, largely due to an emerging expectation for same-day delivery among consumers. This is driving demand for large spaces situated near major habitation and transportation hubs.
At present, 3.1 million square feet of retail space is under construction in the Greater Toronto Area. Office (over 12 million sq. ft. in progress) and industrial (18.3 million sq. ft. being built) assets remain as the region’s engines of market dynamism, CoStar stated.