Lowe’s exit from Canadian market signals hardware-sector shakeup

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Sycamore Partners will take over about 450 stores, including 70 Lowe’s big-box stores and some 150 corporate-owned Rona stores

in Canada for Lowe’s, during which it struggled to make Rona sufficiently profitable.

Behind the scenes, the jostling has already started. And it reflects the view by many hardware business owners that a private investment firm is not necessarily the best partner during a time of economic upheaval, as they tend not to be long-term owners. After a two-year period during which the industry in Canada benefited from a surge in home renovations during the COVID-19 pandemic, hardware retailers are now resetting sales forecasts and bracing for a recession.

Valérie Gonzalo, a spokesperson for Lowe’s Canada, said the company believes the sale will have minimal impact on its relationship with Rona dealers. Sycamore is strongly committed to the dealer network as “an integral part of our Canadian business model,” she said. The new owners also support the implementation of Lowe’s Canada’s existing growth plan, she said.

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