Lowe’s Making Changes in 2019

Marketsource Retail Trends

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August 23, 2019

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By Arthur Villasanta / 08/01/19

Source: International Business Times

Lowe’s refused to specify how many thousand employees lost their jobs this time or which stores will be affected by these job losses. It currently has 1,725 stores throughout the United States. Lowe’s employs 190,000 full-time employees and another 110,000 part-time workers at these stores.

To replace these people, Lowe’s plans to outsource maintenance and assembly workers’ jobs to outside contractors to further slash costs. Assembly workers put together products such as wheelbarrows and grills, for example.

“We are moving to third-party assemblers and facility services to allow Lowe’s store associates to spend more time on the sales floor serving customers,” said Lowe’s in a statement to CNBC.

The firings are the latest under new CEO Marvin Ellison, who only took over in July 2018. Since becoming the top guy at Lowe’s, Ellison has approved shutting-down stores across the country and firing employees in masse to reduce costs.

Lowe’s is justifying the mass firings by saying these will allow store workers to “spend more time on the sales floor serving customers.”

Effects of Layoffs at Lowes: Chatter from the field

“Created apathy among the ranks. I have experienced low to no staffed appliance departments on too many occasions. Recently appliance RSA’s are often called upon to cover and help customers in other Depts such as Plumbing and Flooring.”

 

“It has had a negative impact on customer service as many Lowe’s have had minimum coverage or no one working in appliances to assist customers which has led to consumers walking out of the department.”

 

“Associates are very frustrated with being short staffed and worried they might be next up to be let go. Attitudes are angry and not as friendly or willing to work.”

MarketSource major appliance reps are indicating that the latest round of layoffs in Lowe’s have created an abundance of low morale (39%)

In addition, many reps are observing poor coverage on the floor in-store (35%) which is leading to long wait times/poor customer service (26%), customers leaving (10%) and a reluctance for an associate to make recommendations (8%).

On a 1 to 5 scale, associates have rated the recent layoffs as having a major impact (average of 4.26/5)

Sears and Kmart recently survived total bankruptcy, but the brands’ major financial woes haven’t ended just yet. More than two dozen stores will shut their doors this fall in the latest round of closures

At its peak, Sears operated thousands of stores across the country, a number that fell substantially in the past decade. In late 2018, it made plans to close 262 locations. Now 21 more stores are on the chopping block with closings scheduled for the end of October.

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