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April 25, 2016 Volume
xxii, #17
“A strong spirit transcends rules.”
— Prince Rogers Nelson, aka Prince (American singer, pop star, songwriter of hits like “1999,” 1958-2016)
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Regional associations commit to align more closely under national umbrella
A united front working toward a pan-Canadian organization (from West-East): Brad McCluskie and Thomas Foreman from BSIA; Gary Hamilton, Mark Westrum, and Tom Bell from WRLA; Ron Schell, Ken Forbes, and David W. Campbell from LBMAO; Richard Darveau and Nicolas Couture from AQMAT; Chris Deveaux and Denis Melanson from ABSDA.
MISSISSAUGA, Ont. ― In a small inn at the mouth of the Credit River in Southern Ontario, executives of the five regional retail building materials associations held a special meeting two weeks ago. There, they voted in favour of changes to their relationship. Those changes mark a turning point in the representation of 2,400 Canadian dealers and of their suppliers.
The groups agreed to codify the role and position of their umbrella association, the Canadian Retail Building Supply Council (CRBSC), which has in the past provided a forum for the member organizations informally to exchange ideas, information, and practices. Now, the members have developed a rationale to have the CRBSC represent the industry more visibly, especially at the federal government level, while proactively addressing national issues.
“Founded in the mid-1980s, the umbrella organization established its mission without taking into account the means of achieving it,” says Council President Richard Darveau, who is also president and CEO of the Quebec industry association, AQMAT.
The first decision was to incorporate the CRBSC in accordance with the Canada Not-for-profit Corporations Act. The second decision was to establish the organization’s headquarters in Ottawa, with five regional offices represented by the respective associations: the Building Supply Industry Association of British Columbia in Surrey, B.C.; the Western Retail Lumber Association in Winnipeg; the Lumber and Building Materials Association of Ontario, based in Mississauga, Ont.; the Quebec Hardware and Building Association in Longueuil, Que.; and the Atlantic Building Supply Association, headquartered in Dieppe, N.B.
A key mandate of the newly strengthened CRBSC will be to document the effectiveness of past federal renovation tax credits in terms of their impact on society, the economy, and public finances. The goal is to objectively discuss which measures to take in the future. A study will be carried out by an independent economist and tax specialist. Other initiatives will be raising the awareness of home improvement retail as a career option, with concrete tools to select employees, and a national hiring campaign. Also: online training for renovation and construction project quoting will also be available starting this fall.
The fourth key decision by the CRBSC and its five founding associations was to give their official endorsement to the annual Hardlines Conference so the Canadian industry will enjoy an event that is worthy of both its vitality and scale. Therefore, changes in image and organization of this conference are expected beginning with the 22nd edition in the fall of 2017.
CRBSC will hold two meetings per year, the next one on October 19 and 20 in conjunction with the Hardlines Conference in Niagara Falls, Ont.
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Good weather, new vendors elevated the tone at latest Home Hardware Market
ST. JACOBS, Ont. — Dealers from across Canada again gathered in the small Southwestern Ontario town of St. Jacobs for Home Hardware’s semi-annual market. The good weather of recent weeks helped boost spirits on the show floor, while a number of new vendors upped the range of products available.
The dealers were reportedly pleased with the fresh offerings, especially in the category of kitchen and bath cabinets and counters.
According to Jessica Kuepfer, a spokesperson for Home Hardware, “There were more kitchen vendors and counter displays because of an increased desire and need for the products among our dealers.” She notes that more and more Home dealers are expanding this category. “We wanted to demonstrate the display opportunities available to our stores and provide them a space to ask questions and find the best product for their communities.”
A number of innovations were part of this show, as well, including a new event app, designed for the Spring Market by Fluid Events. The mobile app provided information on vendors, seminars, maps, and shuttle schedules, and allowed dealers to customize their own agendas for the show. Kuepfer says her team received plenty of positive feedback on the app throughout the market. She adds that while the information populating the app was dissolved the day after the show closed, it will be refreshed and reused for future markets.
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Ace Canada welcomes new dealers at Spring Buying Show
WINNIPEG ― Ace Canada completed its Spring Buying Show at the newly refurbished Winnipeg RBC Convention Centre, from April 16 to 18.
The show highlighted seasonal offers for fall and winter selling, including fourth-quarter holiday sales ideas. But perhaps more significantly, it played host to a slew of dealers who have adopted the Ace banner. “We’ve gone from zero to 60 in just a little over one year,” says Bill Morrison, president of Ace Canada. Those numbers reflect both conversions of the distributor’s TRU dealers and independents from other groups. “We are proud to welcome the new dealers who have joined us.”
The appeal of the Ace banner, which is licensed in Canada by RONA inc., came into question upon the announcement that RONA would be acquired by Lowe’s, making it―and the Ace name―part of Lowe’s Canada. However, based on the numbers that are picking up the Ace brand, it’s proving a good fit for many dealers.
Ace is well known in the U.S., where it competes with Lowe’s. It is a dealer-owned co-op, structured similarly to Home Hardware Stores Ltd. here in Canada. Ace was formerly licensed by TIMBER MART Group, but that relationship ended in August 2015, whereupon RONA picked up the banner as another offering for dealers, especially smaller stores served by its TruServ Canada distribution business based in Winnipeg. TruServ has since been renamed Ace Canada.
Ace’s products got a lot of exposure on the show floor and its private-label lines are proving popular with dealers. In addition to the products, the show featured leadership training and a focus on retail skills, reflecting the range of services available from Ace.
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Lowe’s + RONA = a force for Home Depot to reckon with
SPECIAL REPORT ― Pending final approvals from the Competition Bureau, RONA is just months, or even weeks, away from becoming part of Lowe’s Canada. The resulting union will create a retail juggernaut.
RONA has 13% of the Canadian retail home improvement market, based on sales at the cash register. It has 500 stores, of which 236 are corporately owned. By contrast, Lowe’s Canada has just 2.4% market share through 42 stores. RONA reported 2015 consolidated sales of $4.1 billion, which measures its wholesale sales combined with retail sales through corporate stores. But once sales from its independents are added in, RONA’s contribution to the market grows to more than $5 billion.
Together, Lowe’s and RONA’s sales will reach an estimated $6.6 billion, narrowing the gap with the industry leader, Home Depot Canada, which had sales in 2015 of more than $7 billion.
But Lowe’s Canada is part of a much larger operation, of course. Lowe’s Cos. in the U.S. is the number-two home improvement retailer worldwide, second only to Home Depot. Lowe’s total sales in 2015 were US$59.1 billion through 1,857 stores, compared with Home Depot, which has 2,274 stores and sales of US$88.5 billion.
Despite its increased size, the Lowe’s-RONA combo will still face challenges in various regions of the country. However, multiple banners and store sizes, through Lowe’s, RONA, and Ace, will give Lowe’s the versatility to penetrate regional markets with footprints that aren’t confined to the big box model. And that’s something Home Depot Canada can’t offer.
| Canadian Stores |
Lowe's/RONA |
Home Depot Canada |
| Sales ($ billions) |
$6.6 |
$7.2 |
| Store Count |
542 |
182 |
| No. of Employees |
28,000 |
32,000 |
(CORRECTION: The information in this chart appeared incorrectly in the latest issue of our print magazine, HHIQ. Those numbers have been corrected here. HARDLINES apologizes for the error).
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Coast Distributors Ltd., the Nanaimo, B.C.-based hardware wholesaler, has added two members to its outside sales team. Kevin Fookes has been living on Vancouver Island for 25 years, most of which he has spent in the door and window business. He will be calling on Northern Vancouver Island. (250-203-7910) Rees Eyre has been in the building supply industry for more than 10 years, having worked for PrimeSource and Tree Island Steel. He lives on the Lower Mainland and will be servicing customers in Greater Vancouver and the Sunshine Coast. (604-763-2003)
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CLASSIFIED ADS
Castle Building Centres Group Limited
Business Development Manager — Ontario
Castle Building Centres Group is an industry leader among Buying Groups in the Lumber and Building Materials segment in Canada.
You are a highly motivated individual with strong relationship and communication skills that can manage and develop our future growth in Ontario. This position requires an individual who is familiar with the Ontario Lumber and Building Supply industry, willing to travel extensively and accustomed to working remote from head office.
Reporting to the Director of Business Development, you welcome the opportunity to work with a dynamic group of independent LBM dealers while planning and executing our future growth initiatives. Providing continual communication to our Ontario Members while understanding their needs is fundamental to your success. Sound computer and presentation skills combined with good administrative qualities are imperative.
Castle Building Centres Group offers a comprehensive compensation package including full benefits.
All submissions will be treated with complete confidentiality. Please forward by email your resume in confidence to:
E-mail: jobs@castle.ca
Castle Building Centres Group Ltd.
100 Milverton Drive, Suite 400
Mississauga, Ontario
L5R 4H1
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BLANCO is an International market leader in the Kitchen sink and faucet industry with its Canadian head office based in Brampton, Ontario. Blanco also manufacturers our patented Silgranit® sinks in Canada.
We are currently seeking an experienced (5+ years) Retail Account Manager to join our expanding Canadian Sales team and drive our continued growth in this channel. This position will manage the Canadian retail portfolio and work closely with our sales agencies to ensure all sales objectives are achieved. This position reports to the Director, National Sales and is based out of our Brampton head office.
Interested applicants should email resumes to hrinfo@blancocanada.com . We thank all those who apply, however please note only applicants selected for an interview will be contacted.
If you require this application in an alternate format, please contact our HR Department at 905-494-2400 or hrinfo@blancocanada.com
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