RECOVERY PLAN

THIS PLAN AIMS TO ACCELERATE NETWORK OPTIMIZATION AND IMPROVE PROFITABILITY


HIGHLIGHTS:

  • Closure, by the end of 2013, of 11 non-profitable stores: eight in Ontario and three in British Columbia.
  • Reduction in administrative, marketing, merchandising and distribution expenses.
  • Reduction of 125 jobs in the four administrative centres in Canada.

RONA is aiming for annualized savings of $110 million; the plan is to reinvest 30% of this amount to improve the positioning of its banners across the country and to put in place an energetic recovery plan for underperforming stores.

A complete reorganization of the commercial structure was made to reflect the repositioning of our banners under four distinctive groups:

  • RONA L’entrepôt and RONA Home & Garden big-box stores
  • Réno-Dépôt
  • Proximity stores
  • Contractor businesses

Major changes have been implemented to accelerate the optimization of our network of stores across the country and several initiatives are currently underway:

  • In supply-chain
  • In merchandising
  • In marketing
  • In retail and contractor operations

“With these measures, RONA will become more agile and efficient, with a simplified business structure and an even stronger balance sheet. By focusing on our strategic operations, we will unlock the full potential of our network and reinvest a significant share of the savings in initiatives that will allow us to offer even more to our customers and to our affiliated and franchised dealers.” 
Robert Sawyer, President and Chief Executive Officer

 
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