The $3.2 billion agreement for U.S.-based Lowe’s to buy Quebec-based Rona Inc. has the backing of the latter’s board of directors, but that doesn't mean Rona's current Quebec suppliers are overjoyed.
Business journalist Matthieu Charest says some are worried they'll be usurped by Lowe’s other suppliers. Many would only speak to him if their identities were protected.
“It's a difficult time for them to talk about this because they don't want to seem displeasing to Lowe's of course they want to be suppliers to them, and there's a lot that we don't know yet,” he said.
Francoise Bertrand of the Federation of Quebec Chambers of Commerce says the economy is tough now and it won't be easy for some of the suppliers. But while she believes some Quebec businesses affected will fail, she sees it as an opportunity.
“There are three elements for businesses in Quebec to really grow and make a stronger economy, what are they? A better productivity, more innovation and more exportation so it is an opportunity to kind of seduce Lowe's and kind of improve our own product and service and gain new territories,” she said.
Lowe's has committed to protect the vast majority of employees, keep the Rona banner and maintain the headquarters in Boucherville. Richard Darveau of Canadian Retail Building Supply Council advises his smaller retailers associated with Rona to be open to what Lowe’s has to offer. True Quebec entrepreneurs, he says, can succeed.
“Those people at Lowe's and especially at Lowe's Canada are aware that the local side of the business is so important so I believe they will get some suppliers from Quebec and Canada and they will respect the little retailers that are part of the deal,” he said.
