Rona complains about poor weather

The Canadian home improvement group Rona has announced a 4.0 per cent drop in sales, and 12.6 per cent like-for-like, by comparison with the same period last year. It recorded sales of C $ 918.2 mio in the first quarter. Sales in the retail and speciality dealer divisions were 6.2 per cent down overall, though the trade business actually experienced growth. The wholesale trade expanded by 1.7 per cent. Robert Dutton, president and CEO, lays the blame for the overall decline on the poor weather, weak consumer confidence and the phasing out of government grants for renovation work. However, as he emphasized at the company’s annual meeting, Rona heads the Canadian home improvement and building materials market with a market share that rose from 17.5 to 19 per cent in 2010. For the first time the results for Truserv Canada, a cooperative that was taken over in November 2010, are included in the figures for a full quarter. Head office has in the meantime introduced a concept with three new brands, Tru Hardware, Tru Building Centre and Tru Farm & Garden, for the approximately 650 independent affiliated stores. The conversion of the businesses is to be carried out over the months to come.