Home hardware retailer Rona is well positioned to capitalize on the economic recovery after a challenging 2009, the Quebec retailer’s CEO told the annual meeting Tuesday.
The company has a strong balance sheet and innovative new marketing and merchandising programs that will help drive renewed growth in a rapidly changing market, president and CEO Robert Dutton told shareholders.
“Businesses with staying power know how to do two things well: deal with the issues of the day, no matter how difficult, and continue to prepare for the future, no matter how troublesome the present may be,” Dutton said. “That is exactly what Rona did in 2009.”
The 2008-2009 recession hit Rona hard, cutting demand from its customers for building products, though federal tax credits helped the company sell renovation products to homeowners.
However, with the economy starting to recover in the third and fourth quarters, the company’s finances improved.
In the three months ended Dec. 31, Rona posted net profits of $30.9 million, up from $29.8 million in the same 2008 period. Sales increased to $1.14 billion from $1.12 billion.
In a bid to boost sales and compete against rivals such as Home Depot, Lowe’s and Home Hardware, Rona has updated its retail strategy. It’s now focused on households, not just individuals, since decisions on buying hardware and renovations are made by women as well as men.
In addition, the company is embracing environmental sustainable development as a way to attract new customers and is trying to attract next-generation entrepreneurs as store owners and franchise holders.
“We got through the recession quite smoothly, and I am confident we have the right business model and the right business plan to rapidly take advantage of the recovery,” Dutton said.
Rona is the largest Canadian distributor and retailer of hardware, home renovation and gardening products. The company has nearly 700 corporate, franchise and affiliate stores and employs nearly 30,000 people.
