After less than two years of operation at the Metro 580 shopping center, the Pleasanton Orchard Supply Hardware will be closing down along with all other OSH locations across the country.
On Wednesday, officials from Lowe’s -- the parent company of OSH -- announced that it would be closing down all 99 Orchard Supply Hardware stores, which are located in California, Oregon and Florida, as well as the distribution facility that services those stores, by the end of the year.
Pleasanton OSH assistant store manager Andres Cisneros said his store was told the day before the official announcement was made. At the time he was very surprised to hear the news, but in hindsight acknowledged that the stores closing was not totally unforeseen.
“On Tuesday we had an HR rep from Lowe’s come in and let us know. We got together and he told us what the news was and told us that we needed to close the store down immediately,” he said. “It's unfortunate but you know there are always signs here and there.”
Cisneros added that he was giving orientation to a new employee before hearing about his store's impending closure.
“While it was a necessary business decision to exit Orchard Supply Hardware, decisions that impact our people are never easy. We will be providing outplacement services for impacted associates, and they will be given priority status if they choose to apply for other Lowe’s positions,” Marvin R. Ellison, Lowe’s president and CEO, said in a statement.
Lowe’s purchased the hardware chain in 2013, after OSH filed for bankruptcy. Ellison did not specify the exact rationale for closing the stores but the company's quarterly report did promise to update the public on the strategy at the upcoming analyst and investor conference in December.
According to Lowe’s quarterly report, the decision to close OSH is expected to cost the company $390 million to $475 million in additional closing costs for the 2018 fiscal year. It is also expected to decrease operating income by 180 basis points in the short term.
“Exiting Orchard Supply Hardware and rationalizing inventory are the driving force behind the changes to Lowe’s business outlook,” Ellison continued.
Three OSH locations reside in the Tri-Valley (San Ramon and Livermore are the others). Each employs approximately 40 associates and some employees will be given the chance to work for Lowe's, but Cisneros says many will not take the offer.
“A lot of people aren't very enthused with the company, so some people will probably go their different ways,” he said, adding that stores are expecting to become more short handed as employees leave for new opportunities.
Previously located in Dublin, the Pleasanton location has been at its current spot since February 2017. The original staff was mainly composed of associates from Dublin -- Cisneros himself worked at the San Ramon location before transferring several months ago.
Cisneros believes internet shopping is at least one of the factors leading to the stores closure, and laments the loss of customer service this will mean for consumers.
“It's unfortunate, this is just one of those companies that we pride ourselves on customer service and unfortunately now it's just going to be some mom-and-pop hardware stores and that is it. With Amazon around and the internet who knows how long those will last,” Cisneros said.
OSH stores across the country have already begun the process of closing down their locations. Before the chains inevitable end, all locations will be hosting a going out of business sale, with many already announcing deals.
Comments
Pleasanton Heights
on Aug 23, 2018 at 6:25 pm
on Aug 23, 2018 at 6:25 pm
I tried to shop there, but it wasn't really a hardware store. I always ended up having to run to Home Depot to finish my shopping. It was a pretty store though.
Downtown
on Aug 25, 2018 at 12:02 am
on Aug 25, 2018 at 12:02 am
It is tough on our community when any business closes, customers and employees lose, empty storefronts are not attractive.
However , Seems big guys look down on the local businesses that serve the community and not Corp. headquarters in (wherever).
Closing manager at OSH stated...” Unfortunately now it’s going to be some Mom & Pop hardware stores and that is it”.
I own Richert Lumber, I have been in Pleasanton since 1976 (42 years) and I’m proud to be one of those Mom & Pop hardware stores.
Never underestimate power of community, know the people that wish to help you. Yea, price is important, but I guarantee that a basket of goods at our Ace Hardware is less expensive than a big box store.
Tom Richert
Pleasanton Meadows
on Aug 25, 2018 at 10:19 am
on Aug 25, 2018 at 10:19 am
Makes sense to me. Lowes owns it, lowes is big box, osh was an attempt to be more local and expert advice focused. It couldnt compete with ace or richart on expertise and then becomes another duplication of lowes. Todays environment doesn't favor excess bricks and mortor storefronts.
Sorry to see it close, but i understand the decision.
Let this be an example to all those thinking big box kill off local, local can win with the right strategy- not easy and cant just keep on without changing.
Tom - love your store for service, selection and expertise. Youve got strong employees
Registered user
Vineyard Avenue
on Aug 26, 2018 at 2:07 pm
Registered user
on Aug 26, 2018 at 2:07 pm
Tom, please keep up the good work!
Avignon
on Aug 28, 2018 at 9:48 am
on Aug 28, 2018 at 9:48 am
Sorry to see OSH go as the employees were very helpful when I purchased at their store.
On the other hand I am a frequent shopper at Richert and LOVE the staff and personal assistance I get every time I step foot in their door! I prefer to spend my money with them even if an item's cost is slightly higher because I want this local business that supports so many good causes to stay in business!
Tom, you and your staff are awesome. Keep up the good work and best of luck with the continued success of your store.
Birdland
on Aug 28, 2018 at 11:15 am
on Aug 28, 2018 at 11:15 am
Once went to the OSH in Dublin and had a bad experience with a not very helpful employee. Completely soured me on OSH. Saw no reason to go back. Home Depot and Lowes both have wider selections of items and service at least equal to the OSH service that I experienced. Lesson to employers: One bad employee can make a lasting impression on a customer.
Birdland
on Aug 28, 2018 at 11:31 am
on Aug 28, 2018 at 11:31 am
One more useless anecdotal comment. Notice to PW one bad poster can ruin a forum.
Birdland
on Aug 28, 2018 at 12:19 pm
on Aug 28, 2018 at 12:19 pm
@Anecdotal
Sorry that my harsh comment about a negative experience at a hardware store hurt your feelings.
Another Pleasanton neighborhood
on Aug 29, 2018 at 9:19 am
on Aug 29, 2018 at 9:19 am
I shop at Workbench, either the one on Main, or the old location at Santa Rita and Valley. Those guys can help and give creative solutions for most of my questions. It is a small store, but I usually can find what I need.
You go to a big box and you have to chase someone for answers. The feeling I get is that once they see you coming in their direction they run away!
Maybe I pay a bit more ant a Ma and Pa store, but I leave with the impression that the extra money went towards a good advice from someone who has done those jobs for a lot longer than I have.
Registered user
Del Prado
on Aug 29, 2018 at 11:30 am
Registered user
on Aug 29, 2018 at 11:30 am
I've always been fond of OSH. When I was growing up in the 70's, going to OSH was always an adventure. The folks that worked there were always friendly and helpful even to some little kid looking to build a bird feeder or some other project.
The event that forever endeared me to OSH and made me a lifelong customer was one Christmas when I was 8 or 9 years old. I had scraped up enough money to buy my Dad a new power drill for Christmas, but did not have enough money for drill bits. One of the associates saw my dilemma, opened up the drill box, stuffed a set of bits into it, and sent me on my way. 50 years later, I still remember that awesome customer service and kindness.
I see that same sentiment and service at our local Richert and Ace hardware stores. I've had keys made at Richert and the associate wasn't sure if the difficult to reproduce key would work. He did not charge me and said to go home and try it and next time I was in to let me know if it worked. Those small acts of kindness are what endear me to a business.
Stoneridge
on Aug 29, 2018 at 11:52 am
on Aug 29, 2018 at 11:52 am
I am sad. I remember my grandfather taking me to the original Orchard Supply Hardware in downtown San Jose.
Santa Clara County was nothing but orchards.