McLarney named NRHA Managing Director

The North American Retail Hardware Association Canada (NRHA Canada) has named Michael McLarney as its new managing director. McLarney has been a fixture on the Canadian retail hardware scene for more than 20 years. He is best known for his current role as editor and publisher of Hardlines, the weekly electronic newsletter for the retail home improvement industry, and through his leadership in running the annual Canadian Hardlines Conference. Both these ventures are operated by McLarney and his business partner, Beverly Allen, through their Toronto-based company, Hardlines Inc. While serving as managing director of NRHA Canada, McLarney will continue his involvement with Hardlines Inc. and manage NRHA Canada out of the Hardlines’ World Headquarters. “We felt that this opportunity to manage and represent NRHA Canada was a very good fit for us,” McLarney says. “It provides us with one more way to deliver information and services to Canada’s home improvement industry, and that is what Hardlines has always been about.” In his dual role with NRHA Canada and Hardlines, McLarney says that there are many synergies that can be utilized to the benefit of Canadian hardware retailers, but he is quick to point out that both entities will operate separately. “I think it is very important for the industry to understand that, while representing NRHA Canada, Hardlines will remain as the independent voice and source for breaking news within the industry that it has always been,” McLarney says. To reinforce the distinction, McLarney will step away from his day-to-day duties as editor of Hardlines. He will be replaced by Vicky Sanderson, who has extensive experience covering the home enhancement industry from both a business and consumer perspective. (see Appointments) Under McLarney’s leadership, NRHA Canada will seek to heighten its profile throughout Canada and make more Canadian home improvement retailers aware of the information and training services the association provides to its members. “We will look to maintain a very high profile by attending industry shows, visiting retailers around the country and ensure that NRHA Canada takes a more prominent role in our Hardlines Conference and the National Hardware Show – Canada.”

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Lowe’s foresees profitable Canadian startup

MOORESVILLE, N.C. — Lowe’s first international expansion will be in Southern Ontario later this year, and the company expects those stores to be profitable quickly. While the world’s second-largest home improvement retailer hopes to have as many as 100 stores here over time, its initial foray will land fewer than 10 before the end of this year. Even though those stores will be clustered in the Greater Toronto Area of Southern Ontario, their limited number will pose some challenges from a distribution standpoint. “Our focus is on the GTA now,” Gary Bridgeford, executive vice-president business development for Lowe’s Cos., told a meeting of business analysts late last year. “But over the next couple of years, our goal is to get a significant store count and be able to scale from a logistics standpoint.” Robert Niblock, chairman and CEO of Lowe’s, pointed out that a number of parallels exist between Toronto and many larger U.S. cities, which experience higher sales than some stores in secondary markets. He said he expects greater volume from these Toronto-area stores, as well. In fact, he added, “We expect just about all our Canadian stores to make money in year one.”

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New home construction gets slow start, picks up in March

OTTAWA — Bad weather adversely affected Canada’s housing market in the first quarter of this year, as seasonally adjusted starts were down more than 10% for the period, reports Canada Mortgage and Housing Corp. However, despite the quarterly drop, by March starts were on the rebound, with the seasonally adjusted annual rate of urban starts climbing 9.1% from February to 177,900 units. Urban multiple starts rose 12% to 92,700 units in March, while single starts increased 6.2% to 85,200 units. Increases occurred in all regions except the Atlantic. The Prairies led the way with a 26.2% increase, followed by British Columbia at 11.3%, and Quebec with 10.5%.  In Ontario, urban starts remained relatively flat. Urban multiple starts increased in all regions except in the Atlantic and Ontario, while urban single starts were up in all regions. Rural starts were estimated at a seasonally adjusted annual rate of 33,000 units in March. Actual starts in rural and urban areas combined, were down an estimated 8.8% in the first quarter of 2007 compared to the same period in 2006. Actual starts in urban areas alone were down an estimated 10.3%. Actual single starts in urban areas were 16.3% lower than they were a year earlier, while actual urban multiple starts were down 5.3%. And while March showed a definite upturn, building intentions of contractors for the next few months are not as positive. Canada's record-setting pace of construction intentions came to an abrupt halt in February, as the value of building permits plunged to its lowest level in a year, down 22.4% from February 2006. Rising costs of both home construction and financing could further dampen the housing market through the remainder of the year. In fact, CMHC forecasts that starts will be down to 209,500 from 227,395 in 2006. The cost of new housing was up 0.5% in February from the previous month. On a year-over-year basis, contractors’ selling prices for homes were up 10%, just below the 10.1% registered in January.

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Blake’s initiatives pay dividends for Home Depot stores

TORONTO — A move to tidy up its stores and return to more orderly, merchandising driven presentations is just one of Frank Blake’s initiatives that’s paying off. Blake, who was appointed chairman and CEO of Home Depot in February, has been pushing for the return to such basic tenets as empowering associates with the product knowledge to take care of customers, and improving the shopping environment. The latter initiative has special resonance for Home Depot’s Canadian stores, which are faced with the imminent arrival of Lowe’s. Other initiatives being urged by the head office in Atlanta include increasing product availability, avoiding out-of-stocks, and finding and developing exciting new products. Home Depot is also putting more focus than ever on the contractor customer. “The other great segment of our customer base is the pro,” Gino DiGioacchino, vice-president of merchandising for Home Depot Canada, recently told a group of manufacturers at a breakfast meeting held by the Canadian Hardware and Housewares Manufacturers Association. “Serving that customer is a big focus for Home Depot,” he said. But price alone cannot be successful in wooing the pro, he added. The retailer intends to keep building loyalty by developing support for its installer business.

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