Lowes (US) buys Rona (Canada)

[Shwa Girl]

Another US company buys a Canadian company, just like The Bay is no longer Canadian.

Lowes bought Rona. Rona stores will keep their name. Both Lowes and Rona have Air Miles.


At least Lowes shows how a US store can come to Canada and do well. Too bad Target could not have taken some lessons from Lowes.

[tjthemanto]

I wouldn't be surprised if they close half the RONA stores within a couple of years or convert some of them into LOWES. I think they have mostly bought them for their Real Estate, leases and prime locations and not so much for their business or staff .

Eventually RONA will go the FutureShop way after Best Buy bought FS out.

RONA still has a strong presence in Quebec, but rest of the country it was poorly managed and Home Depot, Lowes, Home Hardware and even Canadian Tire ans Wal Mart to some extent were killing it. Quebecers also have a sentimental value towards RONA.

My local RONA used to be good, but in the last 3-4 years its deteriorated a lot. I hate shopping at Home Depot, but RONA being worse forced me to stop at HD . Same way I hate shopping at Wal Mart, but Canadian Tire being even worse forces me to go to WM for certain items

Wouldn't be surprised if Home Hardware gets taken out by Home Depot eventually.

[anisa]

I refuse to shop at lowes (I have my reasons), that will now extend to Rona.

[seylz_gurl]

Yes, a good way for Lowes to expand now that they are established in Canada. Hope they don't take on too much and implode too, 3.2B deal. (Love the small Home Hardwares as they seem more like old timey hardware shops.)

[Shwa Girl]

now on the blog
http://smartcanucks.ca/american-comp...r-3-2-billion/

[Redneck Charger]

Well, I am not a huge Lowes fan, Everytime I am in there, I get upset for something or another. I love Rona and they love my pups too. They always insist me in bringing my boys, and the boys know where the puppy treats are kept now. I once asked a question at Lowes about the stain, and they told me they didn't have time on a weekend so I should go to Home Depot. Ii complained about it to the manager, and he told me he would deal with it. Went back several months later, and they made that guy a manager.. Go figure. Another store falling to the Americans. So so far we still have Home Hardware.

[Shwa Girl]

Well, I am not a huge Lowes fan, Everytime I am in there, I get upset for something or another. I love Rona and they love my pups too. They always insist me in bringing my boys, and the boys know where the puppy treats are kept now. I once asked a question at Lowes about the stain, and they told me they didn't have time on a weekend so I should go to Home Depot. Ii complained about it to the manager, and he told me he would deal with it. Went back several months later, and they made that guy a manager.. Go figure. Another store falling to the Americans. So so far we still have Home Hardware.

Funny coincidence. We were asking at Lowes about their outdoor sheds on sale on a Saturday and they said, come back on Monday when the shed guy is working. Huh?

[Redneck Charger]

Yeah, They aren't too organized in stuff.. Not liking it too much!

[tjthemanto]

Rona wanted to buy Home Hardware,but got bought out themselves.

http://www.570news.com/2016/02/04/ce...-not-for-sale/

CEO of St. Jacobs based Home Hardware: "We're not for sale"


After news hardware giant Lowe’s is set to buy Canadian owned Rona, Home Hardware is letting everyone know they’re staying pat.

CEO Terry Davis was on Bloomberg TV Canada yesterday. He said they won’t be falling in line with the growing number of Canadian companies being scooped up by American companies.


“Rona wanted to buy us,” says Davis. “They have a different culture than we do. They used to have the very same culture we did, before they went public. It’s just a whole different business model, different culture, culture change, and no, we’re not for sale.”


With the low Canadian dollar, it’s been tough for all Canadian retailers, and Home Hardware, based out of St. Jacobs, is no different.


“At the same time, the US dollar and the exchange has hurt us, a lack of demand from China has helped us,” says Davis because of the lack of demand trying to find buyers. “About 20 per cent of our inventory comes in from Asia, and there again, it’s hurting us absolutely, but misery loves company, and we’re all in the same boat as retailers.”
“You’re seeing more of the purchasing move back to domestic manufactures.”


At their board meeting last week, Home Hardware dealers from Atlantic Canada were saying they’re starting to see manufacturing come back, because the demand is there for Canadian companies to buy Canadian goods.


With only 20 per cent of their products coming from Asia, Davis says Home Hardware constantly has to adapt to the growing retail landscape in our country.


“We’ve got great competitors in Canada that keep us on our toes,” says Davis. “Last year we launched our E-commerce platform. Right now, we’re working at the next iteration of that, which is to ship directly to the consumer.”


Home Hardware was started 51 years ago in St. Jacobs, where it still has its main office and distribution centre.

[tjthemanto]

Lot of jobs will be lost due to this as they merge the operations. Right now they will say the usual just to get the deal done like we will keep RONA head office in Canada, no stores will be closed, the distribution centres will remain as is ..blah blah.

But soon both the head offices will be merged and the distribution centres will be combined into one. Lot of cost savings that way ,aka lay offs.

Company will be mostly run from US & cheap China crap brought in and just low level and low paid retail & service jobs will remain in Canada. All the profits will go South of the border too

[Ciel]

Another US company buys a Canadian company, just like The Bay is no longer Canadian.

Lowes bought Rona. Rona stores will keep their name. Both Lowes and Rona have Air Miles.


At least Lowes shows how a US store can come to Canada and do well. Too bad Target could not have taken some lessons from Lowes.

Think the only reason the deal is going ahead is that both boards got agreement to keep HQ in Quebec. That's a huge deal in Quebec.
Rona also supported Canadian athletes and often had commercials on the Radio-Canada tv stations (2010 Games come to mind). Will athletic sponsorship continue after this merger?

[Ciel]

One advantage will be that Lowes and Rona might have combined to leverage their various locations. Before the Ancaster store (Lowes) opened, the Hamilton Lowes store is out in east Hamilton near Woodward and across from the Princess Auto store)-if you did not travel by the Hamilton store, you won't know it's there). Rona has a store on Parkdale Ave. N. that I expect might be challenged to remain open but its other location is on Rymal Rd near Nebo Rd., so that's a good presence on the Mountain (lots of vehicle traffic there as well plus buses).

[Redneck Charger]

In Carleton Place, Both stores Rona, and Home Depot are in the same area... Between them both, they may have what you are looking for. Rona, I have bought all my small home reno stuff there, Home Depot is where I bought my latest tractor.. and new bathroom equipment when I reno'd it. Rona knows us by our name, and always wants us to bring our pups in. Home Depot hasn't a clue who I am.. I would expect the same from Lowes..