Canadians practising consumer resistance

In the third quarter of its financial year (to 23 September 2012) Rona recorded sales of C $ 1.3366 bn. That is 0.8 per cent down on the comparable period last year. Sales were 1.0 per cent below last year’s level in like-for-like terms. This figure results from a 1.8 per cent minus from the retail and trade business and growth of 3.8 per cent from the wholesale business of head office and its affiliated partners. A sales volume of C $ 3.6886 bn, or growth of 1.5 per cent, is the total for the first three quarters. During this period business with the group’s partners experienced growth of 6.2 per cent on a like-for-like basis, while retail and trade sales fell by 1.2 per cent like-for-like.In its own estimation the Canadian market leader is suffering from a generally increased consumer reluctance to spend once again. It is relying on its strategy of “New realities, new solutions”. This is based in part on strengthening the format of the neighbourhood stores so that they can replace the big boxes. Altogether ten such large-format stores are to be closed down in 2012.Apart from this, Rona has denied a press report stating that it had received a takeover bid from Lowe’s, an American competitor. It also denied that the two companies had held any discussions on the subject.