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February 23, 2015 Volume
xxi, #8
“The fellow that owns his own home is always just coming out of a hardware store.” —Kin Hubbard (American cartoonist, humorist and journalist, 1868-1930)
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In the beginning: HARDLINES started 20 years ago
SPECIAL REPORT — “Castle Announces Deal with Cotter.” That was the very first headline of the very first issue of HARDLINES, 20 years ago.
It was sent from a small office, barely a closet, in a basement with ceilings so low anyone over six feet tall had to stoop to enter. A single land line handled the few calls that came in. But a second line handled faxes generated by a fax software program to manage subscriptions.
The early days of what would become the Hardlines Information Network were humble ones, with a fax newsletter going out every other week to more than 350 individual subscribers. That meant more than 350 individual dial ups to more than 350 different fax lines. At its peak, the HARDLINES fax newsletter took 26 hours of non-stop dialling to transmit—from Saturday afternoon to Sunday evening.
Now, every Monday morning just after midnight, thousands of emails are sent in the blink of an eye from the funky offices of the New World Headquarters™. Not only that, but we issue free Daily News and Breaking News Alerts throughout the week. That amounts to about 145,000 words of text every year. That’s like reading “The Two Towers” by J.R.R. Tolkien, or “The Last of the Mohicans” by James Fenimore Cooper!
This week in 1995 (okay, last week! —Editor) we reported on the supply arrangement between Cotter Canada (now TruServ Canada) and Castle Building Centres Group. The deal was struck by Castle’s newly appointed general manager, Pro Wylie, and David Grubbe, who had taken the helm of Cotter just a year earlier. That first issue also carried an update on the re-structuring of Sodisco-Howden and the demise of Toronto chain Lumberking.
(Click here to see our very first issue!)
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RONA posts profit in 2014, considers further acquisitions
BOUCHERVILLE, Que. — RONA saw sales increase by a healthy 3.2% in its fourth quarter, from $941.1 million to $971.3 million. Same -store sales in the company’s Retail segment grew by 6.0%, attributable to the strong performance by RONA’s revamped Réno-Dépôt chain in Quebec and its Totem stores in Alberta.
Excluding the impact of the closures of under-performing stores, same-store sales grew 6.5%. RONA reported a quarterly profit of $1.7 million, following a loss of $1.1 million last year.
For the entire year, revenues dipped 2.3% to $4.096 billion from $4.192 billion. However, the company reported positive growth in organic sales—for the first time since 2006—up 1.2%, including 1.1% in the Retail segment. On a same-store basis, sales across the RONA network rose 1.2%, with growth of 1.1% in the Retail segment and 1.7% in the Distribution segment.
For the full year, RONA earned $65.2 million, after posting a loss of $45.9 million in fiscal 2013.
With a healthy balance sheet, the company is once again open to acquisitions, says president and CEO Robert Sawyer—especially if an opportunity arises that fits RONA’s core business. He and his executive team spoke to analysts last week following the reporting of RONA’s 2014 year-end results.
“Anything that fits into our portfolio of banners we would look into — either mid-size, big size or whatever—we’re open to look into anything.”
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TIM-BR MART buying show serves up an e-commerce twist
TORONTO — TIM-BR MART mounted its fifth annual buying show on February 20 and 21, this time adding an online component. “It’s a combination of virtual show and a physical show,” said Bernie Owens, president of TIM-BR MART Group.
Taking a cue from the success of its Chalifour Canada virtual tradeshow, “Virtuo,” held last fall, TIM-BR MART introduced a virtual show book and an online ordering site, enabling the hundreds of TIM-BR MART members and store managers at the show to place their orders online.
“The virtual show book and order site are mobile friendly—making ordering easy and convenient for our members,” said Randy Martin, TIM-BR MART’s vice president of business development.
The 73,000 square-foot show floor at the Toronto Congress Centre featured specials and hot buys from more than 200 hardware and LBM vendors. “We’ve worked hard with our vendors to bring to our membership not only better buying programs for 2015, but also very aggressive deals at this year’s show,” said Owens.
Dealers on the show floor said they welcomed the opportunity to network with suppliers and see what’s new. Paul Parsons, general manager of Fraser’s Pro Home Centre, based in Berwick, N.S., likes the combination of online and face-to-face. “The show got me here all the way from Nova Scotia,” he said. “The virtual program is good and it will be more important in the years to come as it evolves.”
But the physical show remains important, as well, he added. “I get to see new products and meet the vendors—who are important to our business.”
Vendors were generally very positive about the attendance, which appeared to be up considerably from last year’s event. In addition, exhibitors noted that the dealers were coming from right across the country—including a strong presence from Western Canada— and included more large dealers, owners, and decision makers than last year.
“And they’re bringing their POs,” added one vendor.
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RONA confronts outflow of dealers
BOUCHERVILLE, Que. — RONA president and CEO Robert Sawyer says his company is watching and evaluating the departure of some of its affiliate dealers, as the company continues to strengthen its financial position (see second lead story above. —Editor). In a call to analysts following the reporting of the company’s year-end results, Sawyer acknowledges that the company is facing negative net recruitment, but adds that the outflow is becoming “less and less.”
A spokesperson for RONA clarified further: “We’re talking about just a handful of dealers in terms of negative output. RONA continued to recruit new dealers in 2014 and its existing dealers continued to invest in expansion and relocation projects. The decline was attributed not only to defections but to dealers who have ceased operations.”
In addition, the company stresses that it has not lost any franchise dealers.
On the recruitment side, RONA is remaining more selective about the types of dealers it will partner with, says Sawyer. However, the licensing of Ace Canada, put in place last summer, will give the company more options for independent dealers.
The Ace program, which he considers a good fit with RONA’s TruServ Canada distribution operation based in Winnipeg, provides an effective option for small dealers across the country. “We have a team that is on the street recruiting banners,” Sawyer says.
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Weak dollar won’t affect dealer pricing says Orgill
MEMPHIS — With Canadian dealers and vendors alike in Orlando, Fla., this past weekend for the Orgill dealer market, a concern for many is how the giant U.S. wholesaler will remain price competitive in the face of the falling value of the Canadian dollar.
Ron Beal, president of Orgill, explains that the impact won’t be felt at the dealer level. In the first place, he says, “All our dealings with our Canadian customers are in Canadian dollars, both from a pricing and a payment standpoint.” And, he adds, the pricing is developed from the retail level. “It’s not cost-plus.”
Unlike most of the other 60 countries Orgill sells into, Canada is treated as part of a North American marketplace, so product is supplied through that North American supply chain—which includes a DC in Brampton, Ont.—rather than simply imported. “We view North America as domestic, and part of that means dealing in domestic currency.”
Beal says the strong U.S. dollar works in Orgill’s favour internationally. “On the buy side, our dollar goes a lot further in areas like Asia—and in Canada too. So we’re able to buy better,” he points out. “We’re making sure we’re competitive so our customers are competitive.”
Beal stresses that Orgill is committed to this market. Sales in Canada in December were up 67% over the same time a year earlier—even taking into consideration the currency fluctuations, he adds. “We’re extremely bullish on Canada and we’re extremely optimistic about Canada long-term.”
(Watch for a full report on the Orgill show in next week’s edition! —Editor)
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CLASSIFIED ADS
Retail Specialist – Canada
Position Summary:
As a growing company, we are always looking for new team members to help us continue in our success. Orgill, Inc. is currently seeking a Retail Specialist in Ontario and Newfoundland to represent Orgill, Inc. to prospective and existing retail customers. This employee will analyze customer needs and offer products, programs, solutions, and services to retail hardware stores, lumberyards, and farm & ranch supply dealers. This is not an entry level sales position, nor is it one for someone who does not have experience in our industry.
Responsibilities:
- Increase market share with existing customers by consulting with store owners and managers on how Orgill can help their businesses be more successful and effectively compete in their individual markets.
- Identify, qualify and develop prospective customers by establishing rapport, identifying unique needs and addressing them with Orgill solutions. Prepare and present professional sales proposals.
- With a high degree of accountability, develop and implement weekly action plans to maximize sales with effective scheduled sales calls and travel itineraries.
Requirements:
- Must have in-depth and up to date knowledge of standard concepts, practices, and procedures within the hardlines industry.
- Must have experience in the wholesale or retail hardware, lumber, building materials and/or farm supply trade.
- Must have a working knowledge of email, internet, and Microsoft Office computer applications.
- Must have a valid driver’s license and a safe driving record.
- Prefer candidate with Bachelor degree
To Apply:
Please submit resumé, and salary history to: mvallecillo@orgill.com
For more information about Sales Careers visit www.orgill.com
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National distributor of wood, metal and automotive
machinery and accessories seeks an experienced
Sales Representative
for Alberta
Ideal career opportunity for an aggressive, self-motivated individual with excellent interpersonal and communication skills. These skills, coupled with extensive knowledge of the market, would put you in good standing to join our aggressive and expanding company and for substantial earnings potential.
Please forward cover letter and resume to:
Ted Fuller
fax 519-896-6497
email tfuller@kingcanada.com
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