February 22, 2016 Volume xxii, #8

“A life spent making mistakes is not only more honourable, but more useful than a life spent doing nothing.”
— George Bernard Shaw (Irish playwright and critic, winner of the Nobel Prize for Literature, 1856-1950)

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Alberta and Quebec remain slow markets for RONA

SPECIAL REPORT — Growth of its store network remains important to RONA, even as it readies itself to be sold to Lowe’s Cos. RONA enjoyed a 6.5% increase in revenues in the fourth quarter, due mainly to the acquisition of 20 franchised and affiliated stores in Quebec, as well as to 0.8% same-store sales growth from its retail network. However, results varied from region to region.

“We are on the right track and we continue to improve our network and strategic locations where consumers are not well served by the local offer and where we see opportunity for market consolidation and strong growth,” said Robert Sawyer, president and CEO of RONA, in a call to analysts following the release of the company’s Q4 and year-end results. He added that the company “will continue to focus on the execution of our business plan and the realization of our financial objectives.”

RONA acquired 20 franchised stores last year—17 big boxes and three proximity stores—plus another six proximity stores from affiliated dealers. In addition, the company continues to roll out the repositioning of the Réno-Dépôt banner in Quebec and Totem in Alberta. However, despite successes with these formats, both provinces remain challenging economically. Growth in Quebec keeps flat, although the year ended with stronger sales to contractors and pros, due to warm weather there.

In the West, RONA is having mixed results. “In fact, we finished the year essentially flat in Alberta for the full 2015,” said Sawyer. However, he noted, Western British Columbia is healthy enough to compensate for the decline in Alberta. “So, in a nutshell, it’s not getting worse and we’re still overall in a relatively good spot with Western Canada [in] total.”

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Hardlines Conference confirms top speakers—and a new location

WORLD HQ, TORONTO — Some of the world’s leading retail thinkers are poised to share their insights at the 21st annual Hardlines Conference, October 18 to 19. Organizations represented will include Orgill, Scotiabank, Portland Design, and the North American Retail Hardware Association.

Ron Beal, president of Orgill, the Memphis-based hardware wholesaler that bought up Chalifour last year, will be one of the conference’s keynotes. Beal will provide an update on Orgill’s expansion in Canada and offer insights into the conversion of Chalifour to Orgill Canada and how it will affect dealers and vendors alike.

Ibrahim Ibrahim, a retail futurist from the U.K., has been confirmed to return to the Hardlines stage for this year’s event. A favourite among attendees, he had to cancel his visit last year at the last minute. But he’s coming back with more insights into how the world of retail is evolving worldwide.

Aron Gampel, deputy chief economist for Scotiabank, is another speaker who’s been invited back after a resounding reception last year. Gampel will provide a thoughtful—and accessible—explanation of the economic and housing factors affecting Canadians and the retail home improvement industry.

Besides a fresh roster of speakers, the event has a new location—Niagara Falls, Ont.—an internationally renowned landmark just an hour from Toronto's Pearson International Airport. Delegates can stay at the Sheraton on the Falls Hotel, with a view of Niagara Falls.

(Save the date now! More information and Early Bird Pricing will be made available in coming weeks! —Editor)

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BSIA postpones its buying show

SURREY, B.C. — The upcoming Westcoast Building and Hardware Show, which was to be held March 10 to 13, has been postponed. The show, which is owned and operated by the Building Supply Industry Association of British Columbia, was to have taken place at the Cloverdale Fair Grounds in Surrey, B.C.

“The BSIA show committee and board’s decision to postpone the show was based on a combination of booth sales and retail pre-registration, which were lower than budgeted,” said Thomas Foreman, president of the BSIA. “There are a number of factors contributing to the lower-than-anticipated results, including an over-saturation of shows at this time.” 

These other shows include the TIMBER MART Show in Montreal February 19 and 20, and the Orgill Spring Market in Orlando, Fla. That show, being held February 25 to 27, is expected to draw more than 300 dealers from Canada. BSIA’s counterpart in Atlantic Canada, the Atlantic Building Supply Dealers Association, will hold its own show in Moncton from March 2 to 3.

“The show committee also held a retail phone blitz that resulted in a less-than-favourable response to attending,” Foreman added. “After reviewing all the information and a thorough review of the show budget, it was the committee’s recommendation to postpone the show.”

The BSIA will explore other options that will take on a new look and content, based on the changing demographics of the association and industry, Foreman said. “We are sincerely thankful for everyone that supported the show and apologize for any inconvenience this decision may cause.”

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Amazon.ca launches business supplies site with MRO angle

SEATTLE ― Amazon.ca has launched a business-to-business site that goes after businesses of all sizes, including commercial and maintenance, repair, and operations (MRO). The Business, Industrial & Scientific Supplies store offers lab and scientific products such as microscopes, scales, stethoscopes, surgical gloves, scrubs, and liquid handling tools. But more importantly, it sells hand and power tools, including drills and soldering tools, plus janitorial supplies, industrial cleaners, and occupational health and safety products.

The occupational health and safety category features everything from safety signs, warning alarms and personal protective equipment to tapes, adhesives, and industrial sealers, as well as testing and measuring tools like calipers and voltage testers.

The new online store features more than one million products from brands such as Rubbermaid Commercial, Kimberly Clark Professional, 3M Littmann, and Genesis, as well as Bosch, DeWalt, and Dremel. It reflects the growing importance of the MRO channel for many types of retailers, including traditional building supply dealers.

The Business, Industrial & Scientific Supplies store is now one of 31 categories on Amazon.ca, along with the likes of electronics, clothing, toys, kitchen, and books. More than 100 million items are now available on Amazon.ca.

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