A Rona Inc. store that opens on Wednesday in Edmonton is key to the retailer’s counterattack against U.S. rival Lowe’s Cos. Inc.’s $1.8-billion offer to take over the Quebec-based home-improvement chain.
Nestled among big-box stores such as Wal-Mart, the new Rona outlet is a prototype of the retailer’s store of the future.
About half the size of Rona’s own superstores, it also carries about half the product offerings – but has twice the ratio of full-time staff to ensure knowledgeable customer service.
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The Edmonton store is modelled on Rona’s Totem outlets in Alberta, “proximity” stores – so called because they are near residential areas – that generate 50-per-cent more customer spending than their big-box counterparts, said Luc Rodier, the company’s executive vice-president of retail.
Now Rona is betting big that the smaller format will help turn around its fortunes – and persuade investors Lowe’s isn’t the answer.
via New blueprint takes shape for Rona – The Globe and Mail.