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Lowe’s Canada has plans for expansion that include growing the Canadian company RONA and roughly tripling Ace Hardware’s store count.
In May, Lowe’s finalized its purchase of home improvement chain RONA and this month released more information about its plans for the acquisition. Through its purchase of RONA, Lowe’s also acquired the licensing rights to the Ace Hardware brand in Canada.
Ace Hardware has 68 locations in the country, but Lowe’s plans to expand Ace’s presence to 200 independent stores within the next five years, according to Lowe’s Canada.
Ace’s approach to expansion in Canada hasn’t changed much since Lowe’s took over the licensing agreement, Ace CEO and president John Venhuizen told Hardware Retailing in August.
“The strategy’s pretty much the same, but with a stronger partner,” Venhuizen says.
In 2017, Lowe’s intends to work on both Ace’s and RONA’s growth. For example, Lowe’s will be offering new marketing programs for RONA affiliate retail stores that are independently owned and finding ways to help independent retailers expand.
“The RONA banner has clearly been identified as a strategic driver for growth for Lowe’s,” says Sylvain Prud’homme, Lowe’s Canada president and CEO.
RONA has more growth projects planned for 2017 than it has had in the past five years, Lowe’s Canada states. Those plans include adding four small or medium-sized stores, overhauling nine locations and starting to sell large appliances from 47 RONA stores. The company is also reassessing its product mix in multiple categories.
“Ace dealers, who have smaller stores and are mainly located in the regions, are also a priority since Lowe’s Canada is determined to strengthen its presence in the renovation center and hardware segments,” Lowe’s Canada reports.
In addition, within the next three or four years, Lowe’s will be rebranding 40 RONA locations as Lowe’s stores, according to Lowe’s Canada. Lowe’s currently has 54 Lowe’s-branded stores and 440 RONA stores in Canada. The company declined to comment on other plans for increasing Lowe’s Canada store count.
