ST. JACOBS, Ont. ― Kevin Macnab is Home Hardware’s new president and CEO. He brings with him a strong background in retail that includes senior roles at the iconic British retailer Marks & Spencer in the U.K. and then Canada. After that, he moved to Toys “R” Us as head of that retailer’s international operations—including the title of president for Canada.

Now, in place at Home Hardware for exactly six months, he feels confident that he is getting a firm grip on the challenges and opportunities facing the company. Macnab sat down with Hardlines during the Home Hardware Spring Market last week to give his first media interview in his new role.

The backdrop for the meeting was a positive one, as dealers walking the show floor were generally upbeat about their businesses. And that attitude spread to the show floor, as well, with exhibitors in turn reporting good attendance and some healthy sales.

Sitting at the front of Graham Ferguson Hall in Home’s warehouse, Macnab talked about his new role, the strength he sees in the dealer-owned organization, the potential for growing areas such as online sales and his overall vision for the company.

Although he comes from a traditionally corporate environment, he feels confident that his experience handling a range of businesses for Toys “R” Us—he oversaw everything outside of the U.S.—has prepared him for his introduction to the co-op model and the range of products and services Home Hardware offers.

“I’m experienced at dealing with that sort of scale of difference. Working at Toys ‘R’ Us, I was involved in a whole range of categories,” he notes, referring to the many product lines that his former retailer also carried. “What I really enjoy about Home Hardware is the whole range of categories it encompasses.”

And how does the co-op model compare with the corporate environments of his previous career? Where previously he would have to answer to a board of directors, Home’s accountability extends to all 1,000-plus dealer-members. “At Home Hardware, that's the real strength of the business,” he says, adding that he’s really been educated to the core strengths of dealers in their local markets. “It’s a positive difference.”

Macnab has been putting the company through an in-depth strategic planning process that finds him focusing on several areas. They include being in-stock on inventory and optimizing marketing and promotions. He also wants to invest more in Home’s e-commerce and “to really strengthen the fundamentals of our support for our dealer-owners.”

Finally, Macnab discounts any notion that the dealer-owned co-op may have run its course. “There are a number of opportunities to grow within our dealer-owner model,” he says emphatically, adding a personal note: “I’m proud to be part of this organization.”

ST. JACOBS, Ont. ― The placement of Kevin Macnab as the new CEO of Home Hardware Stores Ltd. is resulting in numerous changes at the venerable company.

A major area of change has been on the buying side. Macnab, the first person from outside Home Hardware to lead the company, wanted Home’s hardware buying and building materials purchases to be realigned separately. The high-profile hire of Marianne Thompson as vice president, merchandise LBM at the beginning of this year marked a major addition to the team that helped realize that vision.

Now Thompson and Joel Marks, vice president on the hardlines side, lead Home’s entire buying function and providing “dedicated leadership” for both areas, says Macnab.

One of the key changes being noted by vendors is in the plumbing category, which has been split into rough or “core” plumbing, and decorative or “fashion” plumbing. Mike Morin, who spent 19 years at Home Depot Canada, the last seven as plumbing merchant, was just hired to head up core plumbing, while Home Hardware continues to search for someone to head up the fashion side. Don Kenesky, formerly the merchant for plumbing, has retired.

Meanwhile, Home continues to hire to round out its buying team. It’s currently searching for a merchandise manager for forest products in the LBM division under Thompson. And a new position has been created for a millwork merchandise manager.

Macnab is excited by the changes. “We’re hiring,” he says. “We’re investing in this company and in the future to drive our business.”

SURREY, B.C. ― The Building Supply Industry Association of British Columbia has launched a new training program aimed at entry-level workers. Called the Building Supply Warehouse and Distribution Training Program, it will start April 23 at the BSIA’s office in Surrey.

In co-operation with the trade association’s own members, the B.C. government and the Northwest Skills Institute, the BSIA has developed a certificate program covering the essential skills for new staff. The six-week program is industry specific and available to people willing to commit to the training who will continue on to accept full-time employment within the home improvement industry, either on the supply side or in retail.

The program is open to any Canadian citizen or permanent resident and is designed to assist the unemployed and the under-employed. It’s 100% subsidized for eligible, qualified participants. Every participant who completes the program gets a job placement and up to one year of coaching and support.

“We have enough funding to run this incredible career-changing program for 45 eligible people between now and the end of August,” says Thomas Foreman, president of the BSIA. He adds that the kinds of skills this program will offer will be a “game changer”.

The six-week curriculum includes training in warehousing and distribution, workplace safety awareness, first aid certification, quality control and job entry skills. For more info, contact bswd@manufacturingbc.org or call 604-900-1980, ext. 143.

SPECIAL REPORT ― While retailers in the home improvement industry are working on their strategies to respond to the threat of e-commerce, online marketplaces have been evolving non-stop.

Robert Bigler, the COO of eBay Canada, says even the original disruptors like eBay are having to worry about change and how to adapt their business model in response. “The pace of change has never been this fast before and it will never be this slow again,” says Bigler. “Change is constantly happening.”

The biggest difference Bigler says retailers―both online and in-store―have noticed is that you can no longer compete on price. As he puts it, that’s simply a race to the bottom. He suggests that the fundamentals of putting the customer first and proving oneself as better than the competition remain the same—it’s just the approach that needs adjusting.

eBay views its role as connecting buyers and sellers to facilitate that growth. Many bricks-and-mortar dealers also use eBay as part of their omnichannel strategy. Michel Robidoux, owner of Quincaillerie Sainte-Julie in Sainte-Julie, Que., used the marketplace to move products when he was on the brink of bankruptcy. The strategy worked better than he could have imagined and Robidoux now has “Power Seller” status on eBay. (He was also the 2018 Outstanding Retailer Award winner for Best Hardware Store.)

Bigler says Quincaillerie Sainte-Julie is just one example of companies that incorporate online marketplaces like eBay into their omnichannel approaches. He adds that online shopping is the new normal. But that doesn’t necessarily mean shoppers are completing those transactions strictly online.

“People are doing research online and then purchasing in store,” says Bigler. “They just want to figure out what store to go to in the first place. They won’t go in if they don’t know the store will have the inventory they’re looking for.”

(This is excerpted from a story in our sister publication, Hardlines Home Improvement Quarterly. The latest issue of HHIQ is in the mail right now to 11,000 retail dealers and managers across Canada. Click here for more info! —Editor)

Barry McCartney has joined the lumber trading team at TIMBER MART as senior commodity trader in Ontario. McCartney will serve as a resource for members in the province by sourcing commodity products, securing buying opportunities and managing the group’s pressure-treated lumber program in the region. He has more than 25 years of experience in lumber, plywood and OSB trading with companies such as Taiga Building Products and Tembec.

Cory Clark has been promoted at Marwood Ltd. to the position of VP of sales and marketing–national. An 18-year veteran of the company, he was formerly director of sales and marketing–national for pressure-treated lumber and accessories at Marwood.

... that the next edition of our sister publication, Hardlines Dealers News, is coming out on Wednesday? Filled with sales and merchandising tips, best practices and cool new product info, every dealer and manager will want to receive this free publication. (Suppliers who want to stay in the know can get it, too!) Click here to subscribe now!

MISSISSAUGA, Ont. ― Castle Building Centres’ 56th annual general meeting drew more than 400 guests to the Westin Hilton Head Island Resort in South Carolina. Shareholders, vendor partners and their families participated in events on- and off-site, including presentations from James Jones, VP of national marketing, and President Ken Jenkins. Guests joined Castle on a journey to the historic city of Savannah, Ga., including a casino riverboat tour. The gathering concluded with a keynote address from TV’s Rick Mercer and an evening dance lesson with a live DJ.

BOUCHERVILLE, Que. ― RONA has taken the top place among most admired home improvement companies in Quebec, in this year’s Leger Reputation Study. It also placed in the 25 overall most admired companies across all industries. Leger surveyed 30,000 respondents in late December and January, assessing reputation based on six benchmarks that included financial strength, social responsibility and innovation.

ST. JACOBS, Ont.  ― Windsor Home Hardware is the recipient of the 2019 Walter J. Hachborn Store of the Year Award. The award was presented during last week’s Home Hardware Dealer Market to Jeff Redden, dealer-owner of Windsor Home Hardware in Windsor, N.S., for epitomizing the principles of value, service and dependability upon which Home Hardware was founded more than 50 years ago. Now in its 22nd year, the award, named for the company’s co-founder, recognizes a store for achieving the highest standards in retailing, merchandising, staff performance and overall quality and service.

ISSAQUAH, Wash. ― Costco Wholesale Corp. reported net sales of $13.87 billion for March, an increase of 7.4% from $12.92 billion last year. For the 31 weeks ended April 7, Costco reported net sales of $88.29 billion, up 8.4% from $81.43 billion. Comparable sales for the month were up 5.7%, and up 8.7% year to date.

SUPPLIER NEWS

MONTREAL ― Richelieu Hardware posted a 2% gain in consolidated sales in its first quarter ended February 28, reaching $226.2 million. Acquisitions boosted results by 2.8%, countering an internal decrease of 0.8%. At comparable exchange rates to the first quarter of 2018, consolidated sales would have been stable. Results were further affected by lower sales to the retail home improvement channel. The company also had an exceptionally strong Q1 in 2018 compared to the latest quarter, which was impacted by inventory realignment by retailer customers that did not show sales growth.

ECONOMIC INDICATORS

Housing starts seasonally adjusted in March were up 15.8% from 166,290 units in February. Urban starts increased by 17.0% to 178,033 units. The greatest growth was in multiple urban starts, up 18.6% to 135,894 units; single-detached urban starts increased by 12.1% to 42,139 units. Rural starts were estimated at a seasonally adjusted annual rate of 14,494 units. Actual (not seasonally adjusted) starts in March were down 10% from March 2018 and down 16% year to date compared with the first quarter of 2018. (CMHC)

Canadian municipalities issued $7.8 billion worth of building permits in February, down 5.7% from the previous month. The decline was largely due to lower construction intentions for multi-family dwellings. Residential permits declined 8.5% to $4.9 billion, the lowest level since April 2017. The decrease was largely the result of lower construction intentions for multi-family dwellings in Ontario and British Columbia. (StatCan)

NOTED

We are always looking for new products from our vendors to feature in our publications. Both Hardlines Dealer News and HHIQ have featured product sections. Send us your latest new and innovative lines to include. It’s free of charge!

OVERHEARD

“Because of our team’s diverse background, we have a better understanding of our customers’ different cultures and can more adequately meet their home improvement needs.”
―Cheryl Ginter, store manager of Lowe’s South Regina store. Ginter and her team won the Paragon Award for business excellence in the Diversity category, presented by the Regina & District Chamber of Commerce.