Rona Plans U.S. Expansion

The Star:

Hardware store operator Rona Inc. (TSX: RON) hopes to succeed in the giant U.S. market with a cautious strategy of acquisitions in regional markets, undeterred by past failures of some Canadian companies south of the border.

CEO Robert Dutton says Rona plans to enter the American market in 2007 by acquiring small regional chains and independent hardware stores in the northwest and eastern United States.

Dutton also notes there are more store openings and acquisitions to make happen in Canada, notably in Ontario and the West. He has his eye on about 30 Canadian organizations that have $100 million to $150 million in annual revenues that are well established regionally.By the end of 2007, Dutton wants Rona’s annual retail sales to exceed $7 billion.

As for the United States, Dutton is convinced his Quebec-based chain, with its variety of store sizes and concepts catering to a wide range of customers, can succeed.