Merchandising Presentation to Independant Traditional Banners

Merchandising Presentation to Independant Traditional Banners

PAINT / FLOORING / DÉCOR Suzanne Maggi Merchandising Director

PAINT 3

Paint Rona Paint sales history A real success story Retail sales ($) $35,000,000 $30,000,000 28,9M$ 25,9M$ $25,000,000 21,4M$ $20,000,000 17,5M$ 15,7M$ $15,000,000 11,2M$ $10,000,000 7,9M$ 8,7M$ 9,3M$ 9,6M$ 6,4M$ $5,000,000 $- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 4

Paint Rona Paint futur objectives 30% 31% 33% 36% 39% 42% 45% 48% 50% 15% 14% Actual 2006 Actual 2007 2007 2008 2009 2010 2011 2012 2013 Objective BB Stores Trad 5

Rona color chips Colors with a name Gradual introduction in 2008 002-11 002-21 002-31 002-42 002-53 002-63 LUMINESCENT JADE PEARL GREEN TIDE GREEN TEA CACTUS BASIL 1440 color names For consumers: A reference A memory More personnel More emotionnal More visual and inspiring 6

New Rona displays Exterior stain Does not use any shelf space 2 sizes: 4 or 8 feet Anti-rust display «Aisle flap» printed on both sides Color deposits Launch February 2008 7

Interior paint - Ø VOC Rona Collection Conversion of the existing line to Ø VOC. Introduction of a 3 rd Rona Collection finish : Felted matte finish! Gradual transition to $34.99 FELTED MATTE FINISH 0 to 5% SMOOTH VELVET 5 to 11% SILK FINISH 10 to 20% Ceiling paint Ø VOC. $23.99 Primer-sealer Ø VOC. Launch in February 2008 8

Rona Eco wood preparation products Exterior stain remover & Exterior wood cleaner 3.78L Size Biodegradable Non-corrosive $19.99 $14.99 Cedar treatment Cedar and natural color 3.78L Size $19.99 Launch in February 2008 9

Sico launchs Exterior stain High quality and standard quality New and improved labels «All surfaces» products $27.99 to $59.99 High quality Solid Semitransparent Translucent Wood protector Standard quality New brochures (4) New display New color trends Solid Semitransparent Launch in February 2008 10

CIL launch CILUX Maximum : High performance exterior paint Breakthrough technologies Extreme durability Maximum protection against extreme weather conditions, moisture and UV rays $40.97 to $42.97 Launch in February 2008 11

New prototype - Paint boutique Dominance Paint specialist Service - «lab look» 5,228 sq.ft. 4 brand paint strategy Service oriented New lab 12

Paint department Come visit the paint specialists (behind the paint boutique)! You can test the : Rona collection felted matte finish Ø VOC Ceiling paint and primer sealer Ø VOC You will be able to see: New cedar treatment New Rona biodegradable stripper New Rona biodegradable wood restorer 13

FLOORING 14

Heart Stopper - 2008 Interlocking tiles Porcelain : available in 2 colors (sand and coral) - $3.98 sq.ft 6 new products : rug, rubber or foam - $1.98 to $2.50 sq.ft Easy to install Ideal for the patio, concrete balcony, garage and basement Available in March 2008 (DC) 15

New programs - 2008 Laminate flooring (Quickstyle) New selection (12 products) New trends narrow plank (more realistic look) Wenge, Bresilian cherry, pecan $0.98 to $1.98 sq.ft Available in January 2008 (DC) 16

New programs - 2008 Wall ceramic tiles (Ceramax) New program (listellos, rosone, counter ceramic) New fashion colors (earth & rustic tones) New dimensions 9 x13 & 8 x10 From $0.99 sq.ft Available in February 2008 (direct store delivery) 17

New programs - 2008 Rona & Rona Collection - Decorative rugs New selection of 22 products 5 x7 Oasis, Global Village and Spirit themes $99 and $300 Available in January 2008 (DC) 18

Eco-responsible products Come see Granite a natural stone abundant material Engineered wood less raw material than hardwood flooring ( - 75 ) respects the European E1 standards Laminate flooring made with recycled materials respects the European E1 standards Cork flooring made from tree bark regenerates in 9 years Bamboo flooring an alternative to hardwood flooring regenerates in 5 years 19

HOME DECOR 20

New concept Deco zone 21

New concept Frames / Laminates & Mirrors Art gallery look Better shopping experience Less shrink 22

New Concept Decorative Accessories & Furniture New merchandising reflecting the Rona themes Spirit Oasis Global village Accessible products free circulation Reduction of space improves GMROF & GMROI Come see the new spring collection 2008 23

Heart Stopper - 2008 Wall decals MUR*MUR Exclusive collection (24 products) New fashion colors with various themes Unique retail price at $29.98 Canadian based company 24

Thank you and much success with your sales! From all the Merchandising team 25