Lowe’s closing 51 locations to build brand
The home-improvement retailer Lowe’s Cos. announced Monday the closing of 51 underperforming stores, including one in Irving and two New York locations that the company hailed just three years ago as way to win over city dwellers.
The move is part of new Chief Executive Officer Marvin Ellison’s push to get rid of distractions and focus on improving its core business — large Lowe’s locations.
Lowe’s is also shuttering about 30 stores in Canada, including some locations under the Rona brand, a chain that Lowe’s bought in 2016 for $2.3 billion.
“The store closures are a necessary step in our strategic reassessment as we focus on building a stronger business,” Ellison said in a statement.
Lowe’s shares rose as much as 0.5 percent to $97.33 on Monday before closing at $97.07.
The decision to end the small store format runs counters to a broader industry trend, embraced by retailers such as Target Corp. and Dollar General Corp., of investing in smaller stores to capture big-city shoppers.
FedEx raising prices in the new year
FedEx Corp. will boost most prices by an average of 4.9 percent starting in January, more than double the expected rate of U.S. inflation next year, as freight demand surges.
Freight rates will rise 5.9 percent, higher than the company’s other businesses as a trucker shortage and strong U.S. industrial growth create a tight shipping market for large cargo. FedEx Express prices will increase 4.9 percent, as will rates for home delivery and ground transportation, the shipper said in a statement Monday.
FedEx’s ability to boost prices at a higher rate than inflation is crucial for the company to expand profit margins. U.S. consumer prices are expected to rise 2.3 percent in 2019.
The Memphis, Tenn.-based company’s increase takes effect Jan. 7.
No Fed rate hike expected this week
With the economy strong, wages rising and unemployment at a near-five-decade low, the Federal Reserve remains on track to keep raising interest rates — just not this week.
After the Fed’s latest policy meeting, it’s expected to signal a healthy outlook for the economy but to hold off on any further credit tightening, most likely until December. A rate hike in December would mark the fourth this year.
Further rate increases are expected in 2019, though just how many is a subject of speculation. The U.S. economy remains vigorous even in its 10th year of expansion — the secondlongest such stretch on record.
Mural to remain at Chicago library
Chicago Mayor Rahm Emanuel has dropped plans to sell a city-owned mural that could have raised millions of dollars for a major makeover at a library.
“Knowledge and Wonder” is a mural by local artist Kerry James Marshall that depicts black children looking at oversized books. It has been displayed at the Henry E. Legler branch in the city’s West Garfield Park neighborhood. An auction on Thursday was expected to bring in more than $10 million for an expansion there.
Emanuel said he changed plans after hearing opposition.
The mural was commissioned in 1995 for $10,000.
“Knowledge and Wonder” will be displayed again at the library as soon as possible, Emanuel said.
Three days later, the flight arrives
What should have been an eight-hour flight from Orlando to London on British Airways turned into a three-day travel nightmare for 250 passengers last week.
Flight 2036 was scheduled to take off from Orlando International Airport on Thursday evening to Gatwick Airport but was grounded until Friday because of mechanical issues, the airline said.
When it finally got off the ground Friday evening, it was soon diverted to John F. Kennedy International Airport early Saturday in New York “as a precaution” because of a minor technical issue, airline spokeswoman Michele Kropf said Monday in an email.
The airline sent a relief aircraft to JFK Airport, and the weary passengers eventually made it to London on Sunday.
Passengers on the flight complained of scarce food sources, spotty communication from airline officials and sleeping on airport floors.
Walmart, Microsoft working on tech
Engineers from Walmart and Microsoft will work together in Texas to help the Arkansasbased retail giant provide more convenient ways for customers to shop.
Walmart on Monday announced plans to expand its technology center in Austin in a move to help associates make better use of digital data and improve operations.
A statement from Washingtonbased Microsoft says about 30 technologists will work together in the cloud factory that’s expected to open in early 2019.
Team members will focus on migrating Walmart’s thousands of internal business applications to Microsoft Azure. The cloud factory will be an expansion of Walmart’s so-called innovation hub, which opened earlier this year in Austin.