Elgin mourns Lowe's closing, looks ahead to Walmart, Sam Club

Name Lowe’s was taken down from the store on Randall Road, less than a full day after the home improvement company closed the Elgin store in addition to one in Schaumburg.

The two stores closed Sunday night leaving 195 employees without a job, the company said Monday.

Spokeswoman Katie Cody said the two suburban stores were among seven across the country to close Sunday night due to disappointing profits. The other stores were located in Alaska, Connecticut, Georgia, Minnesota and New York.

“Unfortunately, despite the hard work of store employees…we didn’t see profitability for those stores, and they had to close,” she said.

Leo Nelson, president of the Elgin Area Chamber of Commerce, said he had no prior indication the store would be closing, but said the lack of warning is not uncommon when it comes to large corporations.

“It’s a major loss of an outstanding retail store,” he said.

He added the closing could have a significant impact on the city’s sales tax revenue and said the chamber will do what it can to help get a new business into the building.

Colleen Lavery, chief financial officer for Elgin, did not immediately have sales tax figures available for the store, but said she has contacted the state requesting the information so she can determine how much of a hit the city will take.

Rick Kozal, assistant city manager for Elgin said it wouldn’t be easy to find a business to fill the Lowe’s facility.

“Finding any retailer to open in this environment is difficult especially with the action in the stock market,” he said.

But, he added, he does not believe the closing is reflective of the Elgin retail market, and is instead symptomatic of issues across the company. He said pointing to a new Walmart that is under construction at Randall and Bowes roads as proof of the city’s healthy marketplace.

Lowe's spokeswoman Stacy Lentz said the Elgin store routinely missed sales estimates since it opened in 2007, marking it for closure.

When business wrapped up Sunday, employees were told the store would not reopen the next day. In line with legal requirements, they will continue to receive benefits and pay for 60 days, according to Lentz.

Elgin Chief Financial Officer Colleen Lavery requested sales tax reports for Lowe's from the state but will not know for weeks how the closing will affect the city's budget for the rest of this year and in the future.

Mayor David Kaptain said he is concerned about surrounding businesses, filling the soon-to-be vacant building and, most importantly, the employees who lost their jobs.

“I don't know if there are places that are going to absorb them because of the job market,” Kaptain said.

But with the bad comes more promising news. Kozal said Walmart is scheduled to open at Bowes and Randall roads in time for the Thanksgiving shopping weekend. And the company will continue with phase two of its plan and open a Sam's Club next year.