The hardware store Rona announced a major restructuring late Thursday afternoon.
This change resulted in the elimination of 500 positions within the Rona network in Canada, including 200 at the head office. The rest of the 300 cut positions are distributed across Canada in corporate stores such as Rona L’Entrepot and Réno-Dépôt. Of these 300 positions, 50 are within the Quebec network of Rona, specifies the company in an email.
The head office remains in Boucherville, the company took the trouble to specify in a press release.
The positions eliminated correspond to approximately 15% of the workforce at the head office, which has increased from 1,300 to 1,100 people. The hardware store also employs 6,500 people in its company stores in Quebec.
There are no Rona or Réno-Dépôt store closures planned in Quebec, says the retailer. There are 180 corporate and affiliate stores in the province.
According to Richard Darveau, president of the Quebec Hardware and Building Materials Association, Rona is carrying out a necessary degreasing after the good years of the pandemic. “May hardware store sales numbers are on par with 2019, but lower than May 2020, 2021 or May 2022 sales,” he said in an interview late Thursday.
One might think that hardware stores are suffering from the rise in interest rates which is curbing the ardor of DIY enthusiasts.
“In light of the current economic downturn, RONA, like other organizations that have recently announced restructurings, had to adapt to reflect new market realities,” the retailer said in a statement. The goal is to simplify activities.
Rona operates or serves 425 company or affiliated stores under the Lowe’s, Rona, Réno-Dépôt and Dick’s Lumber banners.
Last November, the American company Lowe’s sold its Canadian operations (Rona, Réno-Dépôt, Dick’s Lumber, etc.) to a New York investment firm for US$400 million and a sum based on performance. Sycamore Partners, a firm specializing in retail, consumer and distribution, has a reputation for partnering with management teams to improve the profitability and value of their business.
Lowe’s had previously paid US$2.3 billion in 2016 (CAN$3.2 billion at the then exchange rate) to buy Rona.