Lowe’s Delivery Workers Face Layoffs
Home improvement giant Lowe’s Companies, Inc. has announced a change in the company’s delivery strategy. The shift will result in dozens of layoffs.
The Mooresville-based retailer has revealed its plans to switch over to a third-party delivery service in order to speed up its deliveries. Lowe’s has confirmed that it will be laying off an undisclosed number of delivery workers across the country as part of the move.
Previously, the company had been using third-party delivery companies in combination with its own delivery fleet. However, management has now decided to do away with its own service and completely rely on third-party delivery companies.
The decision has been made as Lowe’s notes an increase in the demand for swift deliveries, particularly as online shopping becomes more common. Lowe’s said in a statement, “Unifying the delivery strategy in these markets will improve the customer experience.”
The company has seen a jump in its digital sales, as an increasing number of American consumers avoid visiting physical stores, and instead choose to make their purchases online.
The shift toward e-commerce is altering the American retail industry. Amazon.com, Inc., in particular, has emerged as a dominant force, which is pushing many brick-and-mortar retailers out of business. Amazon’s promise of quick deliveries is attracting a growing number of Americans to shop online.
Amazon’s meteoric rise has traditional retailers worried. Leading American retailers—like Wal-Mart Stores Inc, Target Corporation, and Best Buy Co Inc—have been heavily investing in improving their digital presence in order to thwart competition from Amazon and similar companies.
Home improvement retailers Lowe’s and Home Depot Inc are likewise investing in technology to improve customer experience. Meanwhile, Lowe’s has also been trimming its workforce to save on costs.
This is the fourth round of layoffs that the company has undertaken this year. In June, Lowe’s laid off about 125 IT workers and moved their jobs to India. Prior to that, in February, the company cut loose 500 corporate employees. The biggest layoffs of the year, however, took place in January, when about 2,400 employees at the company’s stores faced mass layoffs.
Last October, Lowe’s cut more than 90 corporate IT jobs.
“Retailer Lowe’s is cutting more jobs, affecting stores in N.C., nationwide,” The Charlotte Observer, August 3, 2017.