You’ve seen the rumors. Maybe you saw a TikTok with a clickbait thumbnail or a Facebook post about "major store closures" and thought, Wait, is Lowe’s going out of business? It’s a fair question in a world where retail giants like Bed Bath & Beyond and Sears have basically vanished into the history books.
Honestly, the short answer is a flat no.
In fact, if you walk into a Lowe’s today, you aren't looking at a company on its deathbed. You’re looking at a $150 billion behemoth that is actually trying to grow while the rest of the economy feels kinda stuck. As of early 2026, Lowe’s isn't just surviving; it’s aggressively repositioning itself for what CEO Marvin Ellison calls a "Remodeling Renaissance."
The Truth Behind the Store Closure Rumors
Whenever a big chain closes a few underperforming locations, the internet loses its mind. People start screaming "bankruptcy" before the "Store Closing" signs even have the tape dry on them. But let’s look at the actual numbers for 2026.
Lowe's currently operates over 1,750 stores. Instead of a mass exit, they are planning to open between 10 and 15 new locations this year. That’s not what a dying company does. They’re also dumping $100 million into their "Hometowns" initiative to revitalize community spaces through 2026. If they were broke, that’s the first thing the accountants would slash.
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The confusion usually comes from two things:
- Holiday Closures: Lowe’s makes headlines for closing all stores for 24 hours on Easter, Thanksgiving, and Christmas to give employees a break.
- The Canadian Exit: Back in 2023, Lowe's sold its Canadian operations (including RONA). If you live in Toronto and saw a Lowe’s sign come down, it wasn't a bankruptcy—it was a strategic retreat to focus entirely on the U.S. market.
Why Some People Think Lowe's is in Trouble
Total sales for 2025 hovered around $86 billion. That sounds like a lot, but "comparable sales"—a fancy retail term for how much existing stores are making compared to last year—have been flat or slightly down.
It’s no secret that the housing market has been weird. High interest rates "locked" people into their homes. If you have a 3% mortgage, you aren't moving. And if you aren't moving, you aren't buying a whole new house worth of flooring and appliances. This "Lock-In Effect" hit Lowe's hard because about 70% of their business comes from DIYers like you and me.
But here is the nuance: houses don't heal themselves. The median age of a U.S. home is now over 40 years. At that age, things break. Roofs leak. HVAC systems die. Marvin Ellison is betting the farm that 2026 is the year homeowners finally tap into their record-high home equity to fix the stuff they've been ignoring for three years.
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The Strategy to Stay Alive: "Pros" and Big Tech
Lowe's is tired of being just the "weekend warrior" store. They are desperately chasing the "Pro" customer—the contractors and electricians who spend tens of thousands of dollars a year.
To do this, they’ve made some massive moves recently:
- Acquisitions: They spent $8.8 billion to buy Foundation Building Materials (FBM) and another $1.3 billion for Artisan Design Group. These aren't consumer brands; they are industrial plays to get Lowe's products into the hands of professionals before a house is even finished.
- Rural Expansion: You might start seeing more "rural-focused" Lowe's. They are expanding specialized offerings for farms and ranches in 150 stores to compete with places like Tractor Supply.
- The OBBBA Pivot: There's a new law called the "One Big Beautiful Bill Act" (OBBBA) that gives tax credits for energy-efficient upgrades. Lowe's has been retooling its supply chain to make sure the windows and HVAC units they sell qualify for those government-backed savings.
Financial Health Check: Is the Dividend Safe?
Investors often look at the dividend to see if a company is secretly drowning. Lowe's is a "Dividend King," meaning they've raised their payout for over 50 consecutive years.
Even with a "U-shaped recovery" predicted for the first half of 2026, the company is maintaining an operating margin of around 12.1%. They just announced another quarterly dividend of $1.20 per share for February 2024. If the ship were sinking, they wouldn't be handing out billions in cash to shareholders and buying back their own stock.
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What This Means for You
If you're a shopper, don't worry about your local store disappearing. If you’re an investor, the consensus from Wall Street (including recent upgrades from firms like Morgan Stanley and Gordon Haskett) is a "Moderate Buy." They see the stock hitting targets between $285 and $325 later this year as the housing market thaws.
Basically, Lowe’s is doing a massive "home renovation" on its own business model. It’s messy, it’s expensive, and there’s a lot of dust in the air, but the foundation is solid.
Actionable Insights for 2026:
- Watch for Sales: Expect heavy promotions on "discretionary" items like patio furniture and grills in Q1 and Q2 as Lowe’s tries to drum up foot traffic during the slow recovery.
- Leverage Tax Credits: If you need a new water heater or windows, check for the OBBBA-compliant labels in-store. The tax incentives in 2026 are some of the highest we've seen.
- Check the Pro Desk: Even if you aren't a licensed contractor, the "MyLowe’s Rewards" program has been revamped to offer better "Pro-style" perks for frequent DIYers.
- Don't Panic Buy: If you see a store closing in a specific suburb, it’s likely just a lease expiration or a move to a "rural-format" nearby.
The "is Lowe's going out of business" rumor is just that—a rumor. The reality is a company waiting for the interest rate clouds to clear so it can start selling lumber at record rates again.
To get a better sense of how this affects your wallet, you should look into your local property tax assessments, as many states are tied to the same housing market recovery Lowe's is banking on.