Lowe's to Buy Rona in Friendly Deal

The Kenaston Lowe's Cancelled?

There was an announcement today that the number 2 home improvement company in the U.S. Lowe's is making a friendly purchase of Rona in Canada for $3.2 billion. This is a familiar story as this courtship has been attempted before sometimes with the government of Quebec stepping in and saying no.

Rona is different than Lowe's in that it has large corporate stores as well as very small dealer stores. It would appear that an offer was made that has satisfied both the corporation and government of Quebec. The cash offer is double the company and it appears that the Rona brand or style will be disappearing in the immediate future.

 Last year Lowe's announced they were building a store at Linden Ridge Shopping Centre. It is difficult to say how far along that process construction has began or whether that job will now be cancelled.

Manitoba, unlike every province in the west, has no Lowe's yet. It would seem odd if the one store planned might be built just down the street from their latest acquisition. Lowe's has 42 stores in Canada and it is certain that there will be more but details of how the combined Quebec-based corporation operates remains uncertain. It could be that Manitoba may not see for the Lowe's format for some time to come.

The low Canadian dollar makes it possible for other U.S. retailers to expand into Canada and build their networks. However, it always makes it difficult for them sent profits back. Still, if the goal is to be around for the long haul, the investment can pay off very nicely with an operation that produces returns for decades to come. Rona looks to be that type of investment for Lowe's.

Lowe's Coming to Seasons of Tuxedo

Overhead view of IKEA under construction
Back in March, it looked like the cat had been let out of the bag about the next retailer to move into Seasons of Tuxedo.

In March, Montez Core Income Trust bought 40% of Seasons of Tuxedo. In the process, they made this announcement:

Located at the corner of Sterling Lyon Parkway and Kenaston Boulevard in the city's southwest quadrant, it is a planned 1.5 million s.f. project on just under 200 acres. This is a new greenfield development and the Fund is participating in the southern half of the project which is an 834,000 s.f. outdoor centre shadow anchored by a 395,000 s.f. IKEA, a 77,000 s.f. Cabela's and a 100,000 s.f. home improvement retailer.

Um, the only official announcement has been Ikea and Cabela's.

Now, just down the street and both a Rona and a Home Depot sooo.. it won't be either of these big boxes going in.

This leaves Lowe's. We are the only province east of Quebec without one.

I won't say Menard's because I don't think they could open in the city without a distribution center for Canada.

So, you heard here first: Lowe's coming to Season of Tuxedo.

Five Guys Burgers and Fries - Winnipeg

President Barack Obama's Favourite Burger Joint.

Back in November of 2009, the National Post reported that Canada was going to see a big opening of the Five Guys Burgers and Fries restaurant chain in Canada. Medicine Hat, Alberta was the first to get a location and in February of this year, Brandon, Manitoba got their first location. Grand Forks, North Dakota is shown to be next in terms of openings near Winnipeg.

Back in May of 2009, NBC News showed President Obama buying burgers for his staff. In various reviews, the burgers Five Guys Burgers have generally been outstanding.

In September of this year, the Foodforu website reported that Winnipeg was due to get two locations. I held off on mentioning it but once again, I see a report that Winnipeg is going to get a number of locations.

The first is said to be on Kenaston Boulevard near Rona, with another on Portage Avenue. A third location will likely come up in Kildonan Crossing, between Lagimodiere Boulevard and Panet Road.

The Foodforu website described the burgers as such:

It's a Burger place with a twist, you pay for the burger and the condiments such as mayo, lettuce, pickles, tomatoes, grilled onions, grilled mushrooms, ketchup, mustard, relish, onion, jalapeno peppers, green pepper, A-1 sauce, BBQ sauce, or hot sauce are all free so load your burger with some or all. Then you can order either regular fries, or cajun fries, the quantities are large so be prepared.

There is nothing on the Five Guys Burgers saying when the restaurants will open but reports are that it will be in February.

I suppose this is a case of where Brandon, Manitoba can say "we got it first."

The selection of condiments to add to the burger reminds me of Grubee's in Winnipeg in the 1970s. Anyone remember that chain?

As far as Five Guys Burgers go, you can say Obama sent you.

A New Owner For TruServ

Truserv head office and warehouse at Gamble and McGillivray.

I was a bit concerned and still am about the announcement of Rona buying the TruServ of Winnipeg this week. The company flies under the radar as the main supplier for True Value, V&S and Country Depot stores.

Back in the 1990s, the forerunner to TruServ, Macleod-Stedman ran into a downturn that saw its employment drop from a few hundred to a skeleton crew. There was great debate in the Manitoba Legislature with the NDP's Gary Doer questioning the Progressive Conservative Premier Gary Filmon about the merits of the bail-out plan.

Cotter Canada took over the company with help of the government in 1992 and in 1999, the name was changed to TruServ. In 2001, the company became a 100% Canadian member-owned distribution center after decades of American ownership. In 2006, the company changed to a share structure which set up this purchase by Rona today.

Presently, the company has about 350 employees and runs a fairly streamlined head office. It is an important employer for the city and if nothing else, has shown the wisdom in backing the company in the 1990s.

I have no idea how Rona benefits from owning the company or whether they keep the management team based in Winnipeg.

A smart provincial government should be asking the company what they need to expand for both Truserv and Rona in Manitoba.



myspace hit counter