2009

February 5, 2009 - RONA Offering Canadians Special Incentive Measures to Complement Home Renovation Tax Credit

Up to $750 cash back in gift cards on cost of materials and installation services; financing plan with competitive rate and AIR MILES reward miles

Boucherville, Quebec, February 5, 2009 – RONA (TSX: RON), the largest Canadian distributor and retailer of hardware, home renovation and gardening supplies, is announcing that it is providing Canadian consumers with a special offer allowing them to take full advantage of the federal government’s Home Renovation Tax Credit. RONA is offering cash back on materials or Installation services purchased at RONA anywhere in Canada for use in a project that is eligible for the federal government’s tax credit program, to be remitted in RONA gift cards.

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“We are happy to see measures such as the Home Renovation Tax Credit being implemented as we believe they will help stimulate the Canadian economy,” said Robert Dutton, RONA President and CEO. “This initiative directly benefits consumers and the industry while also helping save Canadian jobs. As a true Canadian company, RONA wants to support local communities and local companies. We have done so by continuing to buy 90% of our merchandise from Canadian-based suppliers and maintaining employment for close to 30,000 individuals across the country. Today we are offering our customers substantial discounts adding to the government’s measures so they really get something out of the program while also buying from a Canadian retailer,” he added.

RONA is offering consumers up to $750 cash back in gift cards on their purchases, a competitive financing plan, AIR MILES reward miles and expert advice for the realization of their project. Customers making purchases eligible for the federal government’s Home Renovation Tax Credit of over $1,000 at RONA will be offered gift cards worth 10% of their expenses over $5,000 while purchases of less than $5,000 will qualify for a 5% gift card cash back – up to a maximum of $750 in gift cards. Consumers can make their purchases from single or multiple RONA locations across Canada, including Totem stores in Alberta and Réno-Dépôt in Québec. Purchases must be paid with the RONA VISA Desjardins card’s Multi-Purchase Renovation Plan, offered at a competitive annual rate as low as 6% for financing of $2,500 and more.

“Renovation work done on houses and condos for personal use, and projects ranging from finishing a basement to redoing a kitchen, painting or laying new sod would qualify,” said Claude Bernier, RONA Executive Vice President, Marketing and Customer Innovations. “We think this initiative could even inspire consumers to realize projects they would otherwise have not considered this year. Consumers shopping at RONA will also benefit from expert advice, including our Installation services and free Project Guide program. RONA also continues to deploy efforts to offer Canadian consumers the lowest prices, as stated in our price guarantee policy,” he added.

With the RONA VISA Desjardins card’s Multi-Purchase Renovation Plan, consumers will be able to complete their purchases during a 2-month period, after which their total spending will be divided into 36 equal payments, with an annual interest rate as low as 6% for financing of $2,500 and up. A 13.5% annual interest rate would be applied for financing below $2,500. Complete offer details will be available in stores and rona.ca beginning February 7, 2009. The program will run until January 31, 2010, based on the Home Renovation Tax Credit’s eligibility period.

Canadian consumers spending $9,000 for kitchen renovations at RONA would benefit from the following:

  • A $750 RONA gift card, applicable on any future purchases made at RONA (a 10% cash back on purchases of $9,000, with a maximum value of $750);
  • Expert advice for planning their project;
  • A competitive financing plan with an annual interest rate of 6% for their renovation project, to be paid in 36 equal payments following a 2-month grace period;
  • AIR MILES reward miles collected on purchases;
  • A 15% federal income tax credit.


Consumers spending $3,000 at RONA to finish their basement would benefit from the following:

  • A $150 RONA gift card, applicable on any future purchases made at RONA (a 5% cash back on eligible purchases of $3,000);
  • Expert advice for planning their project;
  • A competitive financing plan with an annual interest rate of 6% for their renovation project, to be paid in 36 equal payments following a 2-month grace period;
  • AIR MILES reward miles collected on purchases;
  • A 15% federal income tax credit.


The Home Renovation Tax Credit (HRTC) is subject to the eligibility criteria established by the Canada Revenue Agency. RONA does not express any opinion nor makes any representation or guarantee with respect to the consumer’s eligibility to the HRTC for purchases made at RONA or with respect to the tax credit amount the consumer could be entitled to under the HRTC.

Quebec consumers may take advantage of RONA’s special offer for purchases eligible for the federal government’s Home Renovation Tax Credit but they will not be able to combine this program with RONA’s discount on purchases made in the context of the Quebec government tax credit program for residential renovations and improvements unveiled earlier this year. Based on the nature of their renovation project they will be able to select which RONA program – provincial or federal – they wish to take advantage of.

About RONA

RONA is the largest Canadian distributor and retailer of hardware, home renovation and gardening products. RONA operates a network of close to 700 franchise, affiliate and corporate stores of various sizes and formats. With close to 30,000 employees working under its family of banners in every region of Canada and more than 15 million square feet of retail space, the RONA store network generates over $6.3 billion in annual retail sales. Please visit rona.ca.
Information:

Media
Eva Boucher-Hartling
Director, External Communications, RONA
514-599-5114
Cell. : 514-237-8738
eva.boucher-hartling@rona.ca

Financial Community
Stéphane Milot
Senior Director, Investor Relations, RONA
514-599-5951
stephane.milot@rona.ca
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