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Lowe's shrinking footprint in effort to compete with Home Depot

A Lowe's store
A Lowe's store. Photo: Michael Brochstein/LightRocket via Getty Images

Lowe's will begin slashing its in-store inventory and is shutting down its 99 Orchard Supply Hardware locations across the country in hopes of boosting its sales in other areas to compete with Home Depot, CNN Money reports.

Why it matters: The move shows the company's new CEO Marvin Ellison, hired away from JC Penny, is unafraid to make cuts and reduce inventory to focus on other areas he feels the company needs to improve in. The company's second quarter sales increased 5.3% according to CNN, but it still leaves it behind Home Depot at 8%.