After eliminating 275 positions in Quebec over the last seven months, RONA is making other layoffs. The company announced Tuesday the elimination of 180 jobs at the Boucherville head office, in stores and at the Terrebonne distribution center, a facility which will cease operations in March 2024.
Elsewhere in Canada, 120 office and store employees will also lose their livelihood. Across the country, the retailer therefore carried out a total of 300 layoffs. According to our information, the affected employees learned the news until late in the day on Tuesday. Some would even have been notified remotely. Currently, approximately 1,200 people work at the head office located on the South Shore of Montreal.
Do these decisions have anything to do with the slowdowns observed in the construction industry? “As we look to the future, RONA must return to its essence and adjust its operating model by becoming a more agile and entrepreneurial organization than it was before,” read an official statement. sent by email at the end of the day, Tuesday. In this new phase of our evolution, we must simplify our operations and eliminate inefficiencies created over the past few years. »
Following these decisions – which RONA assures that it did not take “lightly” – the company wishes to give itself the means to “finance significant strategic investments in different areas, such as RONA+, digital and [son] network of merchants.
In November 2022, the Lowe’s renovation chain announced the sale of all its Canadian activities, including the RONA and Réno-Dépôt brands, to the New York private equity firm Sycamore Partners, for a cash sum of US$400 million and a deferred consideration calculated on future return.
Since then, RONA has begun converting its fifty Lowe’s stores located outside Quebec into RONA+.
A ripple effect?
Following these announcements, other large hardware groups could also decide to lay off workers, fears Richard Darveau, president of the Quebec Hardware and Construction Materials Association (AQMAT). “The announcement of the cuts comes after the renovation and construction market was boosted during the pandemic and as the impacts of inflation and lingering interest rates become apparent. The news worries me, of course, but what would surprise me the most would be to see that the other banners will not take similar measures. »
While the pandemic years have allowed hardware stores and renovation centers to do great business, consumers – particularly due to inflation – are reducing their spending and settling for more modest work, according to an analysis of trends of the market carried out by Soumission Rénovation, which acts as a link between clients and contractors.
“The year 2023 is characterized by a significant drop of 27% in the average value of projects compared to 2022,” we can read in the analysis. This decrease is marked by a growing preference for work costing less than $10,000, while large-scale projects costing more than $50,000 have seen a notable decrease. »
The number of large projects increased from 3289 in 2022 to 2298 in 2023.
“High interest rates have a direct influence on the popularity of projects requiring substantial borrowing. Small-scale projects, paid for in cash or with a modest loan, continue to gain in attractiveness. »
The craze for renovating the chalet also seems to be fading. The company recorded a 17% decrease in requests last year compared to 2022. Consumers have clearly decided to devote their work budget to their main residence.
RONA in brief
Company founded 85 years ago
Owner: Sycamore Partners, an American company
Brands: RONA, RONA+, Réno-Dépôt and Dick’s Lumber
Total number of stores: 425 (corporate and affiliated)
Number of employees: 22,000
Head office: Boucherville
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Boucherville head office: 115
Terrebonne distribution center: 40
Stores in Quebec: 25
Elsewhere in the country: 120 (offices and stores)
Total: 300