The End of Lowe's in Canada

Lowe's parent company in the U.S. has sold the Lowe's/Rona in Canada to a private equity firm. The Lowe's name no matter what will no longer exist in Canada in 2023. The last time there was a series of closures in 2019, Manitoba was not affected. Given the dire condition of the company and the conditions of removing the Lowe's name, it seems unlikely that the company would like to have two Ronas on Kenaston.

I personally like Rona and here in the west, it operates much like Home Depot. This was a reflection of the days when it was Revy and started off with larger stores. But that is not what Rona has been like, especially in Quebec. It was small hometown feel and all had all manner of operations that were grass roots, independent dealers and stores not so large.

Certainly Lowe's could run a big store like we saw in Winnipeg. However, their corporate structure wasn't easily replicated in Canada. And just like Target, they have retreated with heavy losses.

In the end, Lowe's was paid $400 million U.S. to walk away. Their losses look to be $2 billion U.S. New owners Sycamore Partners will probably take a while to figure out their strategy. Not all of their assets are corporate. There are a lot of independent associates in their network. 

The independent dealers number around 210 stores and it is expected some might leave for one of three other buying groups. It depends on what the new owner Sycamore Partners does. They already own Staples in Canada but how the manage independent dealers will be the real test.

As for the 70 Lowe's brand corporate stores, they will all become Ronas or another name other than Lowe's.

Competition is important to every industry. The lack of it is demonstrated in things like concert ticket sales where only was seller can't help itself from somehow selling tickets to scalpers.  Taylor Swift fans confronted by $34,000 seat sales know too well. The same is true for hardware stores. Rona and Home Depot compete on price, location, service and selection. Lose one of the players and watch all those areas become less favourable to the consumer.

Watch for Lowe's signs to disappear soon. As for the big Lowe's store along Kenaston? The future doesn't look bright.