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Tuesday, April 4, 2006
84 Lumber to close 67 stores in 19 states
THE ASSOCIATED PRESS
EIGHTY FOUR, Pa. -- 84 Lumber Co., the country's largest privately owned building materials retailer, announced Tuesday it would close 67 stores in 19 states, including 12 in Pennsylvania, but plans to open 125 new stores in faster-growing areas in at least 20 states.
Stores in "no-growth" and rural markets will be closed, as the company tries to boost its annual sales to $10 billion by the end of 2009, 84 Lumber said in a statement.
The company had 521 stores and reported sales of nearly $4 billion in 2005.
"We determined that we needed to make some tough decisions regarding underperforming stores and close them," said company president Maggie Hardy Magerko.
About 600 employees will be affected by the closures, said company spokesman Jeff Nobers. About two-thirds of those workers will likely keep their jobs by relocating to other stores, Nobers said.
Nearly 50 new stores will open this year, with up to 125 opening in the next three years,
the company said.
The company also plans to hire at least 1,000 outside sales representatives over the next three years, as it seeks to expand its sales to large national builders.
Unlike competitors such as The Home Depot Inc. and Lowe's Cos., 84 Lumber markets exclusively to contractors. The company says more than 95 percent of its sales come from professional builders.
Founded in 1956,
84 Lumber is named after the town of Eighty Four,
where the original store continues to operate.
http://www.84lumber.com/
84 Lumber to close 67 stores in 19 states
THE ASSOCIATED PRESS
EIGHTY FOUR, Pa. -- 84 Lumber Co., the country's largest privately owned building materials retailer, announced Tuesday it would close 67 stores in 19 states, including 12 in Pennsylvania, but plans to open 125 new stores in faster-growing areas in at least 20 states.
Stores in "no-growth" and rural markets will be closed, as the company tries to boost its annual sales to $10 billion by the end of 2009, 84 Lumber said in a statement.
The company had 521 stores and reported sales of nearly $4 billion in 2005.
"We determined that we needed to make some tough decisions regarding underperforming stores and close them," said company president Maggie Hardy Magerko.
About 600 employees will be affected by the closures, said company spokesman Jeff Nobers. About two-thirds of those workers will likely keep their jobs by relocating to other stores, Nobers said.
Nearly 50 new stores will open this year, with up to 125 opening in the next three years,
the company said.
The company also plans to hire at least 1,000 outside sales representatives over the next three years, as it seeks to expand its sales to large national builders.
Unlike competitors such as The Home Depot Inc. and Lowe's Cos., 84 Lumber markets exclusively to contractors. The company says more than 95 percent of its sales come from professional builders.
Founded in 1956,
84 Lumber is named after the town of Eighty Four,
where the original store continues to operate.
http://www.84lumber.com/
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