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Rona Inc
Symbol RON
Shares Issued 121,853,023
Close 2013-05-14 C$ 10.12
Market Cap C$ 1,233,152,593
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Globe says Rona rethinks big-box strategy

2013-05-15 09:01 ET - In the News

The Globe and Mail reports in its Wednesday edition Rona's new president has chosen to keep its big-box stores outside Quebec despite stiff competition that has translated into worse-than-expected losses. The Globe's Sophie Cousineau writes five weeks into his new job, Robert Sawyer has trashed the idea to sell the hardware retailer's 30 big-box stores outside of Rona's home province, including the 18 underperforming Ontario stores. "Instead, we will implement a recovery plan to ensure positive performance," Mr. Sawyer said at Rona's annual meeting in Boucherville, Que. Rona's top executives changed their minds after they toured the problematic stores. "They have great sales. And we know big boxes in Quebec. We just need to tweak the model," Mr. Sawyer said. Details of the recovery plan, which is yet to be finalized, will not be known before the next quarter. "Stay tuned," Mr. Sawyer said. Rona's new CEO also hinted at transforming some Rona big-box stores into something closer to a Reno-Depot, which is being remodelled. Those Quebec big-box stores, which were acquired in 2003, are less ornate than their Rona counterparts. They boast low prices on fewer products that are abundantly stocked in a no-frills decor.

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