Home renovation supply retailer Rona has taken the hit due to the fading consumer interest as a result of recession. It will build less than half of its previously planned stores this year and is skeptical about its financial performance over this year which might be falling well short of its earnings objectives for 2009.

"Given the current financial, economic crisis, we will remain very, very prudent and selective with our development projects, focusing on the projects with the highest return on investment," said Chief Financial Officer Claude Guevin, in a conference with the analysts.

According to Chief Executive Robert Dutton, the year has started "in a very challenging way," due to the global economic crisis and poor weather also playing a role.

"The widespread reports of job losses also continue to affect consumer confidence in general as well as construction starts and large scale renovation projects in various regions of the country," Dutton told analysts.

Nevertheless, the retailer managed to meet analyst expectations for the fourth quarter ended December 28, 2008 in spite of being the leader in a sector that has been badly hit by economic turbulence. Its shares closed up 7% on Thursday, rising 78¢ to $11.83.