Lowe’s shares plans six months after RONA buy

by Inside Logistics Online Staff

BOUCHERVILLE, Quebec—Six months after acquiring RONA Inc, Lowe’s Canada has provided a business update, sharing plans for future development.

Lowe’s Canada now brings together multiple banners. The company undertook an in-depth analysis aimed at redefining the market segments for all its banners. This exercise made it possible to better target the positioning of each banner and build a profile of the consumers they seek.

In order to undertake this shift toward being more customer-centric, the company has adopted a new structure comprised of four business units: Big Box, Proximity, Pros and Contractors, and Affiliate Dealers.

“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 percent of the home improvement market in Canada.”

Specifically, the RONA banner repositioning creates a new store prototype. In 2017, RONA will open four new proximity stores, overhaul nine stores, introduce large appliances at 47 stores, review of the product selection in several categories, and development a multichannel strategy (mobile, online, store) with frequent updates to enable customers to make their choices when, where and how they want.

Lowe’s Canada deals with more than 3,000 suppliers. Lowe’s Canada has adopted a clear corporate policy aimed at favouring Canadian suppliers and manufacturers that meet specific criteria: consumer preferences and trends, quality, price and production capacity. All procurement-related decisions by Lowe’s Canada and its banners, including RONA, are made in Canada. (Click here for a glimpse at Lowe’s Canadian distribution operations.)

From the day of the formal closing of the acquisition on May 20, 2016, the company’s head office has been located in Boucherville. Since May 20, 13 new stores have opened their doors, 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.