RONA Announces its Strategic Priorities

RONA Announces its Strategic Priorities 
Refines Business Model to Build on Existing Financial Priorities 
Underscores Corporation's Ongoing Efforts to Focus on Near-and
Long-Term Value Creation Opportunities 
BOUCHERVILLE, QUEBEC -- (Marketwire) -- 12/06/12 -- RONA inc.
(TSX:RON)(TSX:RON.PR.A), the largest distributor and retailer of
hardware, home renovation and gardening products in Canada, today
announced its strategic priorities under the leadership of Acting
President and Chief Executive Officer, Dominique Boies. RONA's
management team, with the support of the Board of Directors, will
immediately focus its efforts and resources on three strategic
priorities: leveraging the strengths of the Corporation's core
businesses, growing key customer segments through a more compelling
value proposition, and unlocking the profit potential of a simplified
business model.  
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. 
ABOUT RONA 
RONA is the largest Canadian distributor and retailer of hardware,
home renovation and gardening products. The Corporation operates a
network of over 800 corporate, franchise and affiliate retail stores
of various sizes and formats under different banners, and a network
of 14 hardware and construction materials distribution centres. RONA
is also a leader in the specialized plumbing and HVAC market,
primarily serving commercial and professional customers with a
network of close to 60 sales outlets and four distribution centres
across the country. With close to 30,000 employees, the RONA store
network generates consolidated sales of $4.8 billion. For more
information, please visit www.rona.ca.
Contacts:
Media
Valerie Lamarre - Senior Advisor
Communications and Public Affairs
RONA inc.
514-599-5900, ext. 5271
valerie.lamarre@rona.ca 
Financial Community
Stephane Milot - Vice President
Finance and Investor Relations
RONA inc.
514-599-5951
stephane.milot@rona.ca