Lowe’s + Rona: The Shape of the Industry after the Deal
It’s official. Lowe’s, the second largest home center chain in the US finalized its acquisition of large Canadian hardware retailer Rona, Inc. on May 20. The move bolsters Lowe’s position within the Canadian home center and hardware sector.
From a relatively meager base of 43 supercenters, the combined Lowe’s and Rona footprint now extends to 539 stores.
Source: Chain Store Guide Home Center & Hardware Chains Database.
Such a footing positions the combined companies to challenge Home Depot’s top position within the Canadian market.
Source: Chain Store Guide Home Center & Hardware Chains Database, company statements, industry reports.
Fully leveraging its expanded store base and realizing economies of scale to best Home Depot isn’t guaranteed. Within those 496 Rona stores lurk more than a dozen brands and mini-chains, identities that Lowe’s so far plans to retain. In all likelihood, though, that collection of formats will have to be consolidated for Lowe’s to maximize the potential that comes with this deal.