Lowes Canada gives update on acquisition
Lowe's Canada has made some strides since it acquired RONA Inc. in May.
At the time, the company had made a number of promises to RONA stakeholders, including that it would maintain RONA's multiple retail banner strategy, its local and ethical procurement strategy, and the vast majority of its employees and senior executives. It also promised to enhance distribution services to affiliate dealers, among other things.
According to Lowe's, RONA has become a strategic driver of growth for the company, which now encompasses multiple retail banners.
"We have adopted a new functional growth model, so that each banner can have the ability to optimize its development," said Lowe's Canada president and CEO Sylvain Prud 'homme. "In this context, the RONA banner has clearly been identified as a strategic driver of growth for Lowe's. We have begun to reposition the RONA banner, with the goal of making the banner the number one retailer in the proximity store market (small and medium surfaces), which currently accounts for about 56% of the home improvement market in Canada."
Over the last six months, Lowe's Canada has performed an in-depth analysis aimed at redefining the market segments for all its banners, ultimately resulting in better targeting toward the right customer profiles. The company has now adopted a new structure comprised of four business units: Big Box, Proximity, Pros and Contractors, and Affiliate Dealers.
Additionally, RONA is looking forward to a number of new growth projects in 2017: the opening of four new proximity stores, the overhaul of nine stores, the introduction of large appliances at 47 stores, a thorough review of the product selection in several categories, as well as the development of a multichannel strategy (mobile, online, store).
As for the company's procurement policy, Lowe's has ensured that all procurement-related decisions by Lowe's Canada and its banners, including RONA, are made in Canada, favoring local suppliers.
Affiliate dealers will also be able to leverage new marketing programs in 2017 to help them improve their competitiveness.
Since the closing on May 20, the company's head office has also been located in Boucherville, with the vast majority of RONA jobs preserved. Since then, 13 new stores have also opened, generating more than 1,100 new jobs.
"As the year draws to a close, I am very pleased with the progress we have made in this integration, and I would like to sincerely thank all our employees, who form the new face of Lowe's Canada, for their commitment during this important transition period," Prud'homme concluded.