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CONNECTING THE HOME IMPROVEMENT INDUSTRY
February 18, 2019 | Volume xxv, #7
IN THIS ISSUE: Home Depot has online process for vendors to submit new products and services Moen makes personnel changes within its Global Plumbing Group E-Summit to build online home improvement sales returns to Chicago in 2019 Lowe’s Canada promotes appliances across its RONA and Reno-Depot banners PLUS: Canadian Tire announces results, Eddie Lampert gets court support for his Sears bid, IKEA Canada creates program to hire refugees, some Canadian Tire stores withdraw self-checkouts, changes at Coast Distributors, Costco’s net sales, West Fraser results up despite softwood prices, Stanley Black and Decker plan a new DC, Energizer reports earnings, Saniflo Canada buys German pump manufacturer and more!
Home Depot has online process for vendors to submit new products and services

TORONTO ― The Home Depot Canada has refined a process for attracting new vendors and new products, and the company is doing it all online.

Through the “Prospective Supplier New Product Submission,” vendors can provide details about their products, with instructions to supply only non-confidential public information.

The submission process puts the vendor in direct contact with the retailer’s buying teams, who can, in turn, evaluate the submissions, qualify them and respond quickly if they find the submission of interest. Replies can take up to six weeks.

“Without even announcing it, the process has attracted hundreds and hundreds of inquiries since it was begun in October 2018,” says Paul Berto, director of corporate communications, external affairs and sustainability at The Home Depot Canada. “It’s another way to interact with vendors―it’s a 365-days-a-year touchpoint.”

And the site is attracting more than just product offerings, he adds. “The interesting thing is that besides hardlines and softlines sales, a lot of services suppliers and operations providers are making inquiries through this platform.”

Moen makes personnel changes within its Global Plumbing Group

OAKVILLE, Ont. ― Changes within plumbing products manufacturer Moen have resulted in a North American reorganization, including some promotions.

Mike Dennis will retire from Moen and the Fortune Brands Global Plumbing Group on March 19. He is currently president of Moen’s GPG Group for Canada and Latin America. Dennis joined Moen 28 years ago and has been actively involved in the plumbing industry, including roles as past chairman of the Plumbing Industry Advisory Council and chairman of the Canadian Institute of Plumbing and Heating.

Now, Moen is restructuring parts of its business, including the creation of an Americas Region, effective March 1, to align the company’s Canada, United States and Latin America businesses under one management team. This has resulted in some new appointments.

Peter Fealy, current VP and GM, Moen Canada, is being promoted to the role of vice president, general manager–GPG Canada, overseeing the Moen and House of Rohl businesses in this country. Fealy joined Moen 19 years ago. Luc Lefebvre, currently VP and GM of House of Rohl Canada, will join the Americas team, reporting to Fealy.

Cheri Phyfer, current president of Moen U.S., will take on an expanded role as president, GPG Americas reporting to Nicholas Fink, president of the Global Plumbing Group. Phyfer will have responsibility for Moen U.S. and both the Moen and The House of Rohl businesses in Canada and Latin America.

E-Summit to build online home improvement sales returns to Chicago in 2019

TRUMBULL, Conn. ― This year’s Home Improvement eRetailer Summit is again being held at the Kimpton Hotel Monaco Chicago in downtown Chicago. The event will be held November 6 to 8. The Summit brings vendors and retail buyers together who are interested in growing their online business.

Organizers have added a member to its Advisory Council, Keesha Craig-Mourillon, senior buyer of e-commerce with the True Value Company. Craig-Mourillon has five-plus years of retail and e-commerce buying experience in a variety of product categories, including tools, major appliances, home décor, small kitchen appliances, floorcare and kitchenwares.

She joins Scott Benedict, Groupon Goods’ divisional merchandising manager; Ryan DeChance, director of discovery at The Grommet; Elizabeth Ragone, senior vice president, Direct to Consumer for Lenox; and Curt Vitale, account manager for Firefly Buys.

True Value has added a third e-commerce buyer, Joanne Brennen, who will be attending the Summit. She joins all the retailers who have committed to return this year. “That kind of support is evidence of the Summit’s increasing importance to the industry,” says Sonya Ruff Jarvis, the Summit’s founder. One of the Summit’s highlights for retailer attendees is the one-on-one meetings with suppliers. And a goal of this year’s Summit is a two-fold increase in supplier participation. The event is particularly focused on beefing up its vendor roster in such categories as lawn and garden, outdoor living and decorative lighting.

Ruff Jarvis notes that the Summit is limiting the number of companies it registers to 100 so that it can sustain the event’s collaborative setting and foster effective retailer-supplier interactions.

(For an invitation to participate or more information, please contact Sonya Ruff Jarvis; 203-295-3385.)

Lowe’s Canada promotes appliances across its RONA and Reno-Depot banners

BOUCHERVILLE, Que. ― Appliances have been a mainstay of Lowe’s long before it even ventured to Canada, but the Canadian division has been actively promoting the category here in recent years. Nor is it restricting itself to its 67 Lowe’s big boxes stores.

In an effort to capture market share in a growing Canadian retail segment that has become even more fertile since the demise of Sears Canada, Lowe’s Canada launched a major campaign in 2016 to enhance its RONA and Reno-Depot stores with major appliances.

“The deployment of appliances has become one of Lowe’s Canada’s major achievements in the last couple years,” says Andrea Danielle Wong, a spokesperson for Lowe’s Canada.

Currently, 19 Reno-Depot stores, 122 RONA corporate stores and 108 RONA dealers are leveraging the appliance offering. And the program is gaining traction beyond its retail customers. The company reports that builders and contractors are relying on the access to fridges and stoves at RONA and Reno-Depot to complete their projects, as well. Lowe’s Canada is growing the appliance department to position the RONA and Reno-Depot banners as project destinations for completing kitchen, bathroom or laundry room projects.

As part of Lowe’s Canada’s omnichannel strategy, Lowe’s, Reno-Depot and RONA all offer major appliances online with offerings that round out the assortments available in stores. That includes the RONA corporate store in Chilliwack, B.C., which has been busy selling appliances since April 2018. Shayna McMillan (shown here) is the salesperson who handles project sales there. For smaller-format corporate and dealer stores with less floor and storage space, Lowe’s Canada has introduced an “Appliance Extended Aisle Kiosk”, says Wong. This user-friendly, in-store space is equipped with a connected screen and a mobile application that provides customers an online gateway to RONA’s full range of online appliances. Those customers can also access online features such as 3D rendering and virtual design options.

Dealers are turning back ideas of their own, as well. Russ Jones, who owns three Coast Builders RONAs in British Columbia’s Sunshine Coast, turned a former Sears store into a RONA appliance outlet in Gibsons, B.C., last year.

Wong from Lowe’s Canada tells Hardlines that appliances will remain an important growth driver throughout 2019, especially for affiliate dealers. “We’ll expand this category by continuing our rollout in corporate and dealer stores, along with increasing store capacity to support appliances on a case-by-case basis.”

People on the Move

At Coast Distributors, Kevin Staller has been promoted to junior district sales manager of British Columbia’s Lower Mainland territory. He will work with and supervise the outside sales team to better serve the needs of Coast’s Lower Mainland customers and be involved in that region’s warehouse operations. Chris McCluskie has moved to part-time outside sales, while remaining involved in warehouse operations in the Lower Mainland.

Canadian Tire Corp. has announced that CFO Dean McCann will retire, a move that takes effect at the end of this year.

ECONOMIC INDICATORS

Housing starts came to a seasonally adjusted annual rate of 207,968 units in January, down from 213,630 units in December. Urban starts decreased by 2.1% seasonally adjusted to 190,912 units. Multiple urban starts increased by 0.7% to 146,353 units while single-detached urban starts decreased by 10.4% to 44,559 units. Rural starts were estimated at a seasonally adjusted annual rate of 17,056 units. (CMHC)

DID YOU KNOW...?

...that the 2019 Hardlines Meet the Buyers Breakfast is more than 75 percent sold out? Come hear from Igor Halencak, EVP of Central Customer Services for Lowe’s Canada; along with Carol Crystal, Merchandising VP Seasonal & Appliances; Marc Gingras, Merchandising VP Building Materials; and Josée Dumas, Merchandising VP Home Décor. This vendor-only event will be held March 26 at the Imperia Hotel in Boucherville, near Lowe’s Canada’s head office and distribution centre. Get your ticket now before it sells out!

RETAILER NEWS

TORONTO — Canadian Tire reported profits of $254.3 million or $3.99 per diluted share for the fourth quarter, compared to a profit of $275.7 million or $4.10 per diluted share a year earlier. The decrease was attributed to a one-time $50 million charge related to its financial services agreement with Scotiabank: excluding that, the company said earnings totalled $4.78 per diluted share. Total revenues for the quarter rose to $4.13 billion from $3.92 billion in 2017.

TORONTO — CBC News reports that three Toronto Canadian Tire stores have withdrawn their self-checkout machines, breaking with the trend toward automation in retail. One of the dealers, Tim Tallon, told CBC that his four self-checkout stations were aging and inefficient, leading to frequent breakdowns. Instead, he’s moved to a single lineup, with customers waiting for the next available cashier. “I just think it’s more efficient and we’re quite happy with it,” Tallon said. “I can’t see us going back.”

HOFFMAN ESTATES, Ill. — Sears Holdings Chairman Eddie Lampert’s $5.2 billion bid for the company has received the backing of a New York bankruptcy judge. In approving the offer, made through an affiliate of Lampert’s ESL Investments hedge fund, Judge Robert Drain rejected arguments by unsecured creditors that the sale was flawed and the company would be more valuable liquidated. The decision clears the way for Lampert to keep about 425 stores and 45,000 jobs afloat.

BURLINGTON, Ont. — IKEA Canada has announced the launch of a national program aimed at employing 250 refugees over the next three years. Building on a pilot program begun last June, the national program will operate through partnerships with 18 local agencies that will help the company reach and recruit refugees seeking employment, as well as providing support and advice to help them succeed as IKEA workers. ISSAQUAH, Wash. — Costco Wholesale Corp. reported net sales of $10.71 billion for January, an increase of 8% from $9.92 billion last year. For the 22 weeks ended February 3, 2019, the company reported net sales of $63.7 billion, an increase of 9.3% from $58.30 billion during the similar period last year. The earlier occurrence of the Lunar New Year this year boosted sales outside the U.S. and Canada by about 4.5% and total sales by about 0.5%.

SUPPLIER NEWS

VANCOUVER ― Forestry giant West Fraser Timber Co. reported results for the fourth quarter that saw sales drop and profits get squeezed. However, the company managed to end the full year with sales of $6.11 billion, 19% higher than 2017. Earnings climbed to $810 million from $596 million, a 36% increase. Faced with output challenges from its existing mills, the company’s year-over-year lumber production increases came largely from the 2017 acquisition of Gilman Building Products, which included six mills in the U.S.

NEW BRITAIN, Conn. — Stanley Black and Decker will open a 1.2 million-square-foot distribution facility this month in Northlake, Tex.

ST. LOUIS — Energizer Holdings reported net earnings were $70.8 million, or $1.16 per diluted share in Q1, compared to $60.4 million, or $0.98 per diluted share. Net sales were $571.9 million, a decrease of 0.2%. However, organic net sales rose by $9.9 million, or 1.7%.

CAMBRIDGE, Ont. — Saniflo Canada’s parent company, SFA Group, a manufacturer of macerating and grinding toilets for international markets, has purchased Zehnder Pumpen GmbH, a German manufacturer of pump technology for industry, home and garden. The acquisition provides several opportunities for synergies between the two organizations, including complementary product lines and opportunities to enhance Saniflo’s geographical footprint and grow sales, especially in the European market.

OVERHEARD...

“Lumber markets have begun to recover in the first quarter of 2019 and we remain encouraged by the long-term outlook for lumber as we focus on the activities that generate the best outcomes for all our stakeholders.” ―Ted Seraphim, CEO of West Fraser Timber, on the prospects for the company after reporting a 2018 year-end that included a 19% increase in sales, despite declines in softwood lumber prices during the year.

OUT & ABOUT

Our intrepid VP of Business Development, David Chestnut, is currently at the International Builders Show. He’ll join up with Michael McLarney in Orlando for the Spring Orgill Dealer Market and our Canada Night Reception for dealers on February 21. Got a hot tip or a new product? Text Michael at 647-209-5663!

Classified Ads

FCL invites applications for the position of Building Products Merchant in our home office located in Saskatoon, Saskatchewan.

The Building Products Merchant will be the primary lead for the lumber and building materials commodity products for the Co-operative Retailing System (CRS). They will lead the commodities area initially building the infrastructure to centralize lumber purchasing then mobilizing the CRS to effectively use the centralized approach. This person will be ultimately responsible for directing and growing the lumber business for the CRS.

To see a full position description and to apply directly, please click the following link to be taken to our career page: https://www.fcl.crs/careers/current-opportunities/job/HO-Building-Products-Merchant-R1

Looking to post a classified ad? Email Michelle for a free quote.

Hardlines
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