RONA announces its 2013 third quarter results

The market has been gloomy this week as many big chains’ share price and sales dropped. Many retailers, such as Shoppers DrugMart, Walmart, Rona, are having a hard time in the increasingly competitive environment. Rona was reported to be carrying out many plans in order to save costs and increase its profits. Rona has been on the line of achieving its goal of saving more than $110 million annual cost by the end of 2013. Their plans include cutting staff, renegotiating contracts, closing under performing stores. They are also focusing more on small neighbourhood stores and getting inventory under control. All of these are said to help them get their share buyback. However, Rona’s efforts don’t seem to make significant effects on the stock market as sales are below expectation and the third quarter’s numbers are not remarkable. Indeed, it cannot be denied that the market is becoming extremely competitive with more competitors entering and less space to stand.