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Canadian home-improvement retailer Rona Inc. reported a drop in same-store sales for the second quarter due to “relatively difficult market conditions” and several store closures, according to the company.
The retailer’s same-store sales were down 1.0 percent, due to a decrease of 2.7 percent in the distribution segment and 0.7 percent in the retail segment, while revenue fell 4.6 percent to $1.25 billion.
Poor weather, a June strike in the Quebec construction industry and a decrease in single-unit housing starts across the country all contributed to the loss, the company said.
Robert Sawyer, RONA President and Chief Executive Officer called 2013 a “transition year” for the company and said the annualized cost-savings goal of $110 million outlined in the company’s recovery plan were on track. The company cut costs by reducing administrative positions, renegotiating major administrative contracts and adjusting selling.
“We are just starting the major repositioning of our banners, particularly with respect to merchandising and marketing, and the first signs are encouraging,” he said. “We must, however, remain vigilant in the short-term, given the significance of the changes being implemented in a period when the market conditions are difficult.”
