21:53:28 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Rona Inc
Symbol RON
Shares Issued 108,052,557
Close 2015-07-16 C$ 15.16
Market Cap C$ 1,638,076,764
Recent Sedar Documents

Globe/CP say Rona buying back franchise stores

2015-07-17 08:02 ET - In the News

The Globe and Mail reports in its Friday edition Rona ($15.16) plans to eliminate its franchise structure by buying 20 stores that date back to its entry into big-box retailing two decades ago. A Canadian Press dispatch to The Globe says Rona said Thursday it is acquiring 18 franchise stores in Quebec and two in the Ottawa area for an undisclosed price. They include 17 big-box stores and three smaller outlets. The move will leave Rona with 233 corporate and 275 affiliate stores in Canada that operate under several different banners. "The competition we're facing in big-box retailing is all corporate, so it gives us agility to be more reactive to promotions, to be more proactive in terms of development across [Quebec] and it's more efficient, over all, in the company," Luc Rodier, executive vice-president of retail, told CP. Rona has been streamlining its operations for three years. All 79 of Rona's big-box stores will be wholly owned by the company following the acquisition of the 17 franchised big-box locations. Analyst Irene Nattel of RBC Capital Markets said that while the transaction will simplify its business model, it does little to change overall challenges facing the company.

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