CHICO, Calif. - In an effort to compete with industry leaders like Home Depot, Lowe's is making some big changes including shutting down Orchard Supply Hardware stores.
According to an earnings report, Lowe's stores that have been open for at least one year rose 5.3 percent. However, Home Depot's rose almost 8 percent.
Marvin Ellison, CEO of Lowe's, is hoping to make the company more competitive in the market.
Ellison said that Lowe's will "aggressively rationalize store inventory" and cut back on lower-performing items.
In order to do this, the company said today that the 99 Orchard Supply Hardware stores that Lowe's owns in California, Oregon and Florida will be shut down by the end of the fiscal year.
Lowe's bought Orchard Supply Hardware five years ago for $205 million.
Orchard Supply Hardware has 4,300 employees. Ellison said that the chain's workers will be given "priority status" if they apply to other jobs at Lowe's and will receive job placement assistance and severance.
The Chico branch of Orchard Supply Hardware declined to comment on the recent announced changes. The retailer has been located on East Avenue since 2002.
Stay tuned with KHSL CBS Channel 12 and actionnewsnow.com for the latest updates as they become available.
CNN contributed to this article.
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