Toys ‘R’ Us announces new and renovated stores in 21 markets
Wayne, N.J. — Toys “R” Us on Tuesday said that by the end of 2012 it will have opened eight new stores and remodeled 13 existing locations to the side-by-side Toys “R” Us/Babies “R” Us model.
The retailer said the 21 stores across 13 states are representative of its strategy to bring both concepts together in an integrated store format.
"As we continue to invest and build upon our portfolio of stores by integrating Toys ‘R’ Us and Babies ‘R’ Us under one roof, our strategy has provided the opportunity to capture customers at their family’s earliest stage and grow with them through childhood," said CEO Jerry Storch.
By the end of 2012, the Toys “R” Us said it expects to operate 204 side-by-side stores nationwide, accounting for nearly 25% of its store base.
Also, as part of the integrated strategy, Toys “R” Us said it has updated a number of existing locations by renovating interiors and exteriors during the integration process. Stores began opening in March and will continue opening through November, the retailer said
The side-by-side strategy first debuted in 2006, and range in size from 30,000 sq. ft. to 70,000 sq. ft.
Canadian home-improvement chain rebuffs Lowe’s offer to acquire
Mooresville, N.C. — Lowe’s Cos. on Tuesday confirmed a July 8 proposal to acquire Canadian home-improvement and hardware retailer Rona, but said the Quebec-based chain rejected the $1.9 billion offer.
According to the 800-store Rona, the sale to Lowe’s would not be in its best interests.
"Rona’s strategic focus remains to execute on its business plan with a view to capturing the significant opportunities that it sees for the business," Rona said in a statement.
According to Lowe’s, talks between the two companies launched last year, and negotiations included at least one previously rejected proposal. Despite the rebuffs, Lowe’s said it plans to continue its efforts to acquire Rona.
“We believe a combination of Lowe’s and RONA makes enormous business sense,” said Robert Niblock, Lowe’s chairman, president and CEO. "We encourage the board of Rona to reconsider its position."
Under Lowe’s proposal, Rona would remain a Quebec-based company with the Canadian head office in Boucherville, Quebec.
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Rona turns down $1.9 billion acquisition bid by Lowe’s
Lowe’s made an offer, but Rona refused.
The two North American home improvement giants will continue to operate as competitors in Canada, where Lowe’s has been growing organically for the past several years amid rumors that just such an acquisition play was in the cards.
In the end, the Canadian retailer and distributor Rona rebuffed a $14.21 per share — $1.85 billion — acquisition offer. "Rona’s strategic focus remains to execute on its business plan with a view to capturing the significant opportunities that it sees for the business," Rona said in a statement.
According to Lowe’s, the non-binding proposal was delivered to Rona board chairman Robert Paré, on July 8. Rona’s board asked Lowe’s for additional time to consider the proposal but, then rejected it.
On Tuesday, Lowe’s made it’s proposal public, and it can be seen here.
Lowe’s, which operates 31 stores in Canada, says it hopes the Rona board will reconsider the offer.
In its pitch, Lowe’s said that “Combining Rona’s Canadian operations with Lowe’s strong global presence would provide Rona’s operations with substantial benefits by creating a strengthened Canadian home improvement retailer with world-class capabilities across channels and geographies. While the combined Canadian business would undoubtedly benefit from Lowe’s global reach and deep supplier relationships, Lowe’s believes that preserving Rona’s local market expertise and relationships is critical.”
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