As the homebuilding sector slows, hardware store chain Rona recently laid off 25 workers at its Boucherville warehouse.
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“We confirm that we have begun the temporary layoff of 25 employees at our Boucherville distribution center due to excess staffing,” a Rona spokeswoman, Valérie Gonzalo, said in an email to the Journal.
The company employs approximately 1,550 people at its Boucherville location, which includes its headquarters and a large distribution center.
The housing renovation and construction sector has slowed significantly in recent months, particularly due to the significant rise in interest rates. According to the Commission de la construction du Québec, 35.6 million hours of work were worked in the residential sector in August, about 11% less than in the same month of 2022.
In May, the American chain Home Depot, which has a large presence in Quebec, revised down its forecasts for 2023.
Richard Darveau, president of the Quebec Hardware and Construction Materials Association (AQMAT), admits that his members’ sales have decreased this year compared to 2022.
“Every year we see a significant drop in activity in hardware chain distribution centers between November and February,” he notes.
No cut at BMR
Despite all this, BMR, another major hardware retailer in Quebec, “has not reduced its workforce in recent weeks,” a spokeswoman, Claudie Gervais, assured the Journal.
Recall that Rona became part of the New York investment firm Sycamore Partners in February. The chain with around 450 stores previously belonged to the American giant Lowe’s.
In June, Rona announced it would lay off 500 employees, including 250 in Quebec.