BOUCHERVILLE, QUEBEC--(Marketwire - July 30, 2010) -
Editors Note: A photo for this release is available via Marketwire's website.
RONA inc. (TSX:RON), the largest Canadian distributor and retailer of hardware, renovation and gardening products, today announced that independent dealer-owner Moffatt & Powell Limited has joined RONA. Moffatt & Powell is the first member of the Independent Lumber Dealers Co-Operative (ILDC) to join the RONA network. The five new stores to be flying the RONA banner are located in London, Mitchell, Strathroy, Tillsonburg and Watford, Ontario. Ranging in size from 2,500 to 7,500 square feet for a total of 26,000 square feet of retail space, the Moffatt & Powell stores also feature large lumberyards. The locations generate over $30 million in annual retail sales.
Moffatt & Powell is currently co-owned by David Powell, who will soon hand over management duties to his 32-year-old daughter Nancy Powell Quinn and her husband, D'Arcy Quinn. A successful business with strong and longstanding community ties, Moffatt & Powell provides RONA with great potential for growth in Southwestern Ontario. The company was co-founded by Melvin Powell and J. Keith Moffatt in 1956, with a solid foundation inherited from a business Moffatt's father had been operating since 1939. In 1982, Moffatt & Powell Limited merged with D.M. Powell Limited and David Powell purchased Melvin Powell's share in the business. The company joined the Independent Lumber Dealers Co-Operative after the merger.
RONA president and CEO Robert Dutton explains that the development of the independent dealer-owner network has always been one of RONA's key growth vectors. "I'm very pleased that Moffatt & Powell is joining RONA. The company has been rooted in the community for over 70 years. Not only do we share the same staying power, we're also both focused on the future. Their objectives show that we have a great deal in common, including a shared concern for well-thought-out succession planning," he said. "We see strong growth potential for Moffatt & Powell, and they know they can count on RONA to continue to consolidate their market."
"We are extremely proud to be joining RONA and look forward to becoming part of a strong banner with a national presence and a very promising strategic development plan. We know we can count on RONA's team to work with us and help us achieve our growth plans. I feel privileged to be working with them as I gradually turn over the reins to my daughter Nancy and son in-law D'Arcy Quinn. Concerned as I am with succession planning, I feel that with RONA I have exactly what they will require in terms of support to help them grow and expand our family business," said Moffatt & Powell co-owner David Powell.
RONA expands its affiliate dealer-owner network
The RONA affiliate dealer-owner network has been very active since the beginning of the year. Six independent dealers, including Moffatt & Powell, have joined the network. In total, they generate over $45 million in annual retail sales and have added 65,000 square feet of retail space to the RONA network. Furthermore, 45 development projects have been undertaken by the existing affiliates, for a total of $23 million invested in the network, including new stores and expansions representing close to 94,000 square feet of retail space.
"Over the past few years, we've grown our network of affiliate stores not only by recruiting independent dealers but also through the development projects undertaken by the dealers themselves. With RONA, independent dealers know they can get the support they need to face today's market realities by gaining access to a team of experts and a degree of support that's unequalled in our industry, plus innovative store concepts and the strongest purchasing power in our industry here in Canada," said Robert Dutton.
Besides Moffatt & Powell, five other dealers have joined the RONA network so far this year. In Ontario, Boyer Fence & Deck (Kitchener), Colony Ratcliff (Gormley), Davies Hardware (Grand Bend) and Murdoch (Durham) are now flying the RONA banner. And in British Columbia, former RONA employee Al Tsuchiya and his business partner Gary Kandborg chose RONA for their new store in Port Coquitlam. The RONA network now includes 432 affiliate and 258 corporate and franchise stores across Canada – 690 stores in a range of sizes and formats that meet the construction and renovation needs of all Canadians.
RONA's independent dealers have also invested heavily in their stores this year. More than $23 million has been invested in 45 development projects, including new stores and expansions representing 93,800 square feet of retail space. While some dealers have built new stores, others have re-merchandised portions of their retail area. They aim towards the same objective: to become leaders in their respective markets in order to provide Canadian consumers with the very best shopping experience. (For details, see fact sheet Affiliate Dealer-Owner Network Development at RONA – First half of 2010 – as of July 30, 2010)
About RONA
RONA is the largest Canadian distributor and retailer of hardware, renovation and gardening products. RONA operates a network of nearly 700 corporate, franchise and affiliate stores of various sizes and formats. With close to 30,000 employees working under its family of banners in every region of Canada and more than 16 million square feet of retail space, the RONA store network generates over $6 billion in annual retail sales. For more information, please visit www.rona.ca .
To view the photo associated with this press release, please visit the following link: http://www.marketwire.com/library/20100730-rona0730_800.jpg