Summary
Lowe's announced they are closing 51 underperforming stores in the US and Canada.
While mainly speaking for the 20 stores being closed in the US, there are signs of a coming decline in private domestic residential investment.
I'm bearish on the home improvement sector as we are in the beginning of a slowdown in the sector I believe.
Lowe's is wise to be closing underperforming stores as a preemptive move against what will be a challenging environment.
Last week, I bought some pine boards to build a porch skirt around my house at the local lumber yard store. Upon talking with a salesman in the yard, I mentioned the large price drop of lumber since around. He replied, "all-time high price, it wasn't moving." (The lumber, that is.)
Makes sense given that the price simply shot up like it did and has since collapsed. Now it can move. I took nine 8-foot boards off his hands.
Lesson here is sometimes prices need to correct.
