T O P 2 O

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RONA POSTS Q1 LOSSES,
BANKS ON SUCCESS OF
NEW-LOOK RÉNO-DÉPÔT
S
tore closures and the renovation of
11 Réno-Dépôt outlets contributed
to a drop in revenues for RONA,
with consolidated revenues of $764.3 million
down 8.2 percent from $832.9 million
for the first quarter of 2013.
The decrease primarily reflects the closure
of underperforming stores, harsher
weather conditions, and a decline in
housing starts across the country. Sales
were also affected by major renovations
at Réno-Dépôt stores as that banner was
re-positioned during 2013.
These factors contributed to a four percent
decrease in same-store sales in the
first quarter.
RONA achieved cost savings of $23.7
million through lowered selling, general,
and administrative expenses, and the positive
impact of closing the underperforming
stores, which helped to narrow RONA’s
losses and boost adjusted EBITDA.
RONA also spent most of last year refocusing
its Réno-Dépôt stores in Quebec
on a more contractor-oriented product
selection and customer. With early indications
revealing positive results from the
new concept, the company is now looking
at how—and where—to expand the winning
formula.
The company insists the Réno-Dépôt
stores are working and all 16 stores would
be completed by the end of June. From
there, the company has plans to roll out
aspects of the Réno-Dépôt strategy to
other markets.
It will start with Ontario in 2015, where
its big-box stores have been under-performing
in a number of major markets
Positive customer response to the
new look at its Réno-Dépôt stores in
Quebec has RONA executives eager to
roll out the concept to other regions,
starting with Ontario.
around the edges of the Greater Toronto
Area and through southwestern Ontario.
Luc Rodier, executive vice president,
retail for RONA, says, “We’ve been very
pleased with the results so far. Pretty
much everything we’ve touched is working,”
he stresses, adding that core categories
like plumbing and a new lighting
department have been successes.
“Customers are reacting very well
to it.” The stores have seen the reintroduction
of products that had been
abandoned in recent years. “We’ve added
more consumables, as well—cleaning
supplies and paper products—and it’s
adding to the basket.”
BRIEFLY
SEXTON KEEPS GROWING
WITH NEW MEMBERS
Sexton Group Ltd. has added eight new members
to its ranks. Sanbec Canada Inc. is the newest
member in Quebec, located in Laval. Two members
have joined in Ontario—Grant Drew Designer Stone
Inc., in Canvan-Monaghan, and Stevenson Building
Products in Roseneath. Located in Fort Simpson,
N.W.T., Unity Store has expanded to include a complete
assortment of hardware and building materials.
In Alberta, Nelson Lumber in Lloydminster has
most recently signed on. Hard Rock Developments
in Calgary is a concrete, construction tools, and
supplies retailer. Kenroc Building Materials just
added two locations in British Columbia with the
acquisition of Commercial Construction Supply
Ltd. in Kelowna and Kamloops.
SUPERIOR PLUS TO SELL
CONSTRUCTION PRODUCTS BUSINESS
Superior Plus has decided to seek a buyer for its
Construction Products Business. The division
includes LBM wholesaler Winroc and the Allroc
buying group, as well as a chain of ICI outlets in
the U.S. The purchase of Specialty Products &
Insulation (SPI) in 2009, which became part of the
same division as the Winroc business, was slow to
recover during the slowdown south of the border.
CANADIAN TIRE SALES
AFFECTED BY WEATHER
Canadian Tire’s overall consolidated revenue
in the first quarter was up 3.8 percent to $2.6
billion, but the late arrival of spring weather
affected the Canadian Tire outlets’ same-store
sales. They were down 0.5 percent. The company
also announced that Scotiabank will acquire
20 percent of Canadian Tire’s financial services
business. That agreement includes a credit card
funding facility of up to $2.25 billion.
www.hardlines.ca Hardlines Home Improvement Quarterly THIRD QUARTER / 2014 13