In Canada, Lowe’s to part with Ace
One of North America’s most complicated retail relationships is coming to an end.
Lowe’s and Ace, two fierce home improvement competitors in the United States, are parting ways in Canada, where they have played on the same team since the Lowe’s acquisition of RONA in 2016.
Peavey Mart operates in Western Canada.
In a deal announced March 3, Peavey Industries, Canada’s largest farm, ranch and hardware retailer with 92 stores across the country, will acquire the Ace Canada business from RONA. Financial terms of the deal were not released.
The agreement affects 104 independent Ace Hardware stores in Canada, and calls for a 6- month transition period during which Peavey Industries will gradually assume responsibility for the supply of the 104 stores, the Ace Canada retail operating systems, and the Ace Canada website.
Lowe’s Canada will continue to act as a wholesaler of lumber and building materials for Peavey Industries’ independent dealers after the transition period.
“This transaction is in line with our plan that was announced last November to simplify our multiple store banners in order to drive efficiency and reduce operational complexity,” said Tony Cioffi, executive VP of finance (GFO), Affiliate Dealers, Dick’s and Real Estate of Lowe’s Canada. The business transferred to Peavey represents less than 10% of the total sales volume of Lowe’s Canada’s affiliated dealer division, he said.
"While it will allow Lowe’s Canada to focus its energy exclusively on the RONA banner for its affiliated dealer network, Ace affiliated dealers across the country will find in Peavey Industries a partner whose value proposition is better adapted to their operating reality and customers’ needs."
"Ace Canada is a natural extension to Peavey Industries for a number of reasons," Anderson said. "We relate strongly to their dedication to ‘local and loyal,’ we appreciate their commitment to providing value to customers, and we mirror their devotion to excellence in customer service."
Ace Hardware International also expressed excitement about the deal in a prepared statement. Jay Heubner, President and General Manager of Ace Hardware International, said: “We are thrilled to team up with Peavey Industries, an organization that shares our values and has a strong commitment to service and community. We’re confident Peavey Industries will provide the independent Ace retailers the best service and support to help them succeed and ensure the continued growth of the Ace Hardware brand in Canada.”
Before it was acquired by Lowe's, RONA in 2014 signed a long-term deal with Ace Hardware International for master licensing of the Ace brand in Canada.