Lowe’s seeks increased profitability with RONA

TORONTO — Lowe’s has identified ways to cut costs and increase revenue and operating profitability through its takeover of RONA inc. Those measures could add up to an increase in profitability of least $1 billion, says the company.

Lowe’s intends to expand RONA’s offerings by applying Lowe’s specialization in categories such as appliances. It will also bring its strengths in omnichannel marketing to the RONA business. It further expects to drive pro profitability by leveraging shared supplier relationships, the expansion of Lowe’s own private-label capabilities, and the elimination of RONA’s costs related to being a public company, which the company says are about $3 to $4 million annually.

EDITOR’S NOTE: We will have expanded coverage of Lowe’s takeover of RONA in the next eye-popping issue of our weekly HARDLINES e-newsletter! If you don’t already subscribe, I invite you to sign up for a free trial today!

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