Using the same rigour and disciplined approach introduced a year ago with the three financial priorities, the strategic priorities will further refine RONA’s business model and enable the Corporation to accelerate value creation for its stakeholders. The three strategic priorities are described below.
Leveraging the strengths of our core businesses
Assessment of all business units based on the following criteria:
- Core competencies;
- Market position and competitive advantage;
- Contribution to EBITDA and return; and
- Scalability.
Dispose of non-core assets and redeploy capital to further leverage core assets.
Growing key customer segments through a more compelling value proposition
Establish and deliver a clearer value proposition for key customer segments: in-store, distribution services offered to our dealers, and online;
Adapt all touch points including stores and distribution network to deliver improved positioning; and
Deliver on the basics in a measurable way before adding new features/innovations.
Unlocking the profit potential of a simplified business model
Realign the critical operational functions of our retail and distribution businesses: national vs. regional/local structure for marketing, merchandising, operations, supply chain and information technology;
Optimize administrative/support functions, standardize processes in both sectors and build on them through the development of a culture of constant improvement; and
Improve retail EBITDA margin in line with industry standards.
"RONA, through its dedicated dealer-owners and employees, has built a very strong and valuable Corporation over the past 73 years," said Dominique Boies, Acting President and Chief Executive Officer. "RONA has grown through a series of strategic acquisitions to expand its footprint, consolidated the market to introduce scale and developed various stores formats to support its leading position in Canada. This strategy allowed us to transform RONA into the leading domestic hardware, home renovation and gardening products retailer."
"RONA’s nationwide growth did not come without a certain level of complexity. The focus on our three strategic priorities will enable us to simplify our business model, reconnect to our roots as one of Canada’s best distributors, clarify the value proposition for our retail and professional customers and therefore enable us to maximize the value of our core businesses. Our strategic priorities are perfectly aligned with our three financial priorities and underscore our efforts to compete in today’s
marketplace and improve our operational and financial results", added Mr. Boies.
Similar to the practice adopted for the disclosure of its financial priorities, RONA will provide quarterly updates on specific initiatives and precise key performance indicators for each of the three strategic priorities. RONA’s Acting President and Chief Executive Officer will also meet with investors and stakeholders in coming weeks to discuss the Corporation’s strategic and
financial priorities.
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