Quebec politicians lament store closures, cuts at Rona

Quebec politicians appeared out of options on Wednesday as the American hardware giant Lowe’s Cos. Ltd. announced another series of cuts to the made-in-quebec home improvement chain Rona Inc.

Quebec’s economy and innovation minister, Pierre Fitzgibbon, lamented a weakening in Quebeckers’ emotional attachment to the Rona brand amid a series of store closures and layoffs dictated by the retailer’s U.S. parent.

Lowe’s, which bought Rona in 2016, announced plans on Wednesday to shutter 34 of its “underperforming” stores in Canada by early 2020, 26 of them Rona stores. That follows 60 layoffs at the company’s Canadian headquarters in Boucherville, Que., last month and 27 Canadian store closures — 24 of them Ronas — last year.

“There’s a breakage of emotional connection between Quebeckers and Rona and I understand why,” Fitzgibbon told reporters at Quebec’s National Assembly on Tuesday. The minister drew ire from independent Rona dealers who run the stores in Quebec after he signalled his preference to shop at Quebec-owned stores last month.

There was little the government could do about the cuts to the Rona chain, Fitzgibbon suggested, pointing to a confidential agreement between Lowe’s and the federal government, signed during the Rona takeover in 2016. The terms of that agreement aren’t public, but one Liberal MNA told La Presse they include commitments on maintaining certain jobs and banners.

Despite the cuts, Fitzgibbon said it appears Lowe’s is “respecting their commitment.”

Premier François Legault said it was “unfortunate” that the previous provincial government opted not to use Quebec-owned shares in Rona to block a Lowe’s purchase. “So now, Rona is owned by Lowe’s,” he told reporters Wednesday. “We have no guarantee from Lowe’s.”

Lowe’s said it was complying with all its federal agreements. The federal ministry of innovation, science and economic development said in a statement that it closely monitors these commitments “on an ongoing basis to ensure compliance.”

The store closures, slated between Jan. 31 and Feb. 19, are part of a push to improve lagging performance in Canada.