WINNIPEG ― Recent changes within the management team at the Sexton Group reflect just part of the ongoing growth and development of this Winnipeg-based buying group.

As reported previously in Hardlines, Eric Palmer, who’s been with Sexton for the past four years, has been moved into the role of senior manager, purchasing. Tom Bell, himself a former Sexton dealer, is now senior manager, business development. In these new roles, both individuals will provide added support for President Steve Buckle, who heads up the group’s negotiations.

Krista Venn, a 15-year Sexton Group veteran, was also given a new role as manager of programs and analysis.

Part of Sexton’s evolution, says Buckle, is its growth as a national company. “We’ve been a Western phenomenon, particularly on the Prairies, for 35 years,” he says. Over the past 10 years, the company has gained traction geographically, especially in British Columbia.

Then, in 2018, Sexton made significant gains in Ontario, signing Tarpin Lumber and Truss, Kott Group, Royal Homes, Tampa Hall and Northlander Industries, all big dealers supplying everything from trusses and framing components to complete manufactured homes. That, Buckle says, gave the group the traction it needed in Canada’s largest market. “These are high-profile, high-volume members,” he notes. “It was the breakthrough we were looking for.”

But the gains did not come without a lot of preparation. Buckle knew that the only way to successfully grow was to ensure that his organization was properly equipped to service new members. Phil Brown was already serving Eastern Canada as a business development manager, but Suzanne Walsh was added to lend more focus to Ontario.

This backfilling of the organization helped Sexton manage growth that has seen membership and purchasing volumes double over the last 10 years, and manage the addition of the Ontario members with confidence. That investment in people really adds a functional focus to the business, says Buckle.

TORONTO — After a lifetime in retail, including 13 years in the retail home improvement industry, Bill Morrison has exited the business.

Most recently vice president of the Ace Canada division at Lowe’s Canada, Morrison began his career at Kinney Canada. From there, he moved into athletic footwear, spending almost a decade expanding the Foot Locker chain in this country. A stint followed at the now-defunct mass merchant Woolworth before he found himself at the executive offices of the Hudson’s Bay Co. in 2001, overseeing the Home Outfitters chain. For the next three years, that banner grew rapidly, almost doubling the number of stores under Morrison’s watch to 55.

Then, Morrison was hired to take over TruServ Canada, a co-op wholesaler based in Winnipeg that was using the True Value banner under license from that Chicago-based company.

The shift was a bigger one than he’d expected.

“I left corporate retail in 2004. That was my complete background: focused on the biggest stores in the biggest markets, like Toronto, Vancouver, Chicago and New York.”

As president of TruServ Canada, he got involved in a company that was a solid, if secondary, supplier for many groups, but one that nurtured some 650 member dealers that operated under the True Value, Country Depot and J&S Variety banners, the latter being a junior department store program for many a small-town retailer pre-Walmart. “When I joined TruServ, I discovered whole new parts of Canada―and a whole new aspect of retail.”

Morrison identified the value of a supplier that was equipped to look after smaller, rural retailers who might otherwise get passed over by the likes of Home Hardware or RONA. Those stores, often more traditional than their competitors, are integral parts of the small communities they serve. Morrison and his team worked to provide services and programs to keep them viable.

Morrison joined RONA after it acquired TruServ in 2010. In 2014, RONA signed a license agreement with Ace Hardware International to own the Ace name in Canada. With Lowe’s acquisition of RONA two years later, Ace became part of the Lowe’s family. The management of that program was moved to the TruServ headquarters in Winnipeg, and True Value dealers were encouraged to make the switch to Ace.

Morrison remained in place through all these changes, to keep the banner on track—a testament to his ability to understand and drive growth among independents. Within three years, the number of Ace dealers in this country grew to more than 100.

He is somewhat sobered by the demise of TruServ, but recognizes it as part of a larger trend. “At TruServ, we were very concerned about the hollowing out of Canadian retail and the loss of many good people,” he says. “When all the head offices are no longer in Canada,” and here, he searches for the right words, “then—damn!”

Nor is the irony of TruServ evolving to become Ace Canada (a brand licensed from a hardware company based in Chicago) lost on him. He admits looking back at the fate of TruServ with some frustration. “We intended to grow and prosper,” he says. But the company simply lacked the scale—and the circumstances—to succeed.

He recalls originally getting hired at TruServ Canada for what was supposed to be an interim post. “I was brought on to figure out how to sell the company,” he admits. “And here I am 13 years later.”

ST. JACOBS, Ont. — Home Hardware Stores Ltd. hosted its 2019 “Christmas Inspirations Market” at its distribution centre in St. Jacobs, Ont., late last month. The one-day show was held on a Saturday and featured the latest in this seasonal category, which has been a fast growing one in recent years.

This year’s annual Christmas showcase was Home Hardware’s 13th in a row, offering both dealers and the media a preview of the co-op’s latest programs and products for Christmas 2019.

“This one-day event allows our dealers to preview and order their entire Christmas assortment, including our new ‘trim a tree’ collections and new technology light sets,” said Sandy Jordan, merchandise manager for Christmas and outdoor merchandise.

The event featured Home Hardware’s own patio furniture program for 2019 alongside its latest vendor offerings. A big part of the seasonal push was in the kitchenwares category. Reflecting that focus, local culinary expert Chef D was on hand to demonstrate the new Sous Vide Kuraidori Precision Cooker.

MOORESVILLE, N.C. ― The head of Lowe’s Cos. says the changes occurring at the giant home improvement retailer have been part of an effort to focus on the company’s core home improvement business.

Marvin Ellison, president and CEO of Lowe’s, has made changes that included the closing of its Orchard Supply Hardware operations and a complete exit from the Mexico market. Lowe’s also divested itself of its Alacrity Renovation Services and scaled back investment in its smart home business.

For the Canadian business, the selloff of some of Lowe’s retail real estate has hit closest to home. Following a visit in November 2018 to Canada by Ellison, Lowe’s Canada identified underperforming stores and other sites, and closed a total of 31 locations across the country.

However, Ellison has stated his confidence in the Canadian business. “Although comps have experienced some pressure recently stemming from a weaker Canadian housing market, we continue to take share and believe the business is poised for long-term growth.”

Lyndon Madden has joined Spectrum Brands Inc. as senior marketing manager. His background includes marketing roles at Maytag, Electrolux, Keter and, most recently, GE Appliances.

Do it Best Corp. has named Laura Williams and Nicole Kepler to new positions within its merchandising division. Williams now serves as merchandise manager in hand tools and Kepler has moved to associate merchandise manager of tools.

...that vendors are signing up now for our 2019 Hardlines Meet the Buyers Breakfast? 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. Click here to sign up today!

NEW YORK — The Home Depot ranks at number 21 on Fortune magazine’s Top 50 Most Admired Companies list for 2019, and number one in the Specialty Retailer category. The company took top honours in the categories of innovation, people management, social responsibility and quality of products and services.

SAINT JOHN — J.D. Irving’s latest hiring forecast has the company projected to fill 7,500 positions over the next three years, almost nine out of 10 of them in Atlantic Canada. At Kent Building Supplies, an upcoming store in Dartmouth will create new jobs in Nova Scotia, while about 300 hires are planned for P.E.I. In addition to the full-time roles, the family-owned Irving plans to hire about 2,500 students by the end of 2020.

BOUCHERVILLE, Que. — Lowe’s Canada has opened its first store in Manitoba to feature the new model of Lowe’s stores, converted from the former RONA Home and Garden in Winnipeg’s east end. “We are thrilled to kick off the New Year with the opening of our 67th Lowe’s store in Canada,” said Guy Beaumier, Lowe's Canada’s EVP for stores. The store's enhanced product assortment now features a complete selection of appliances and more offerings geared to the needs of contractors.

BRENTWOOD, Tenn. — Tractor Supply Co. reported Q4 profits of $136.9 million, or $1.11 per diluted share, up from $109.7 million in the fourth quarter of 2017. Net sales rose 9.2% to $2.13 billion, compared to the $1.95 billion reported a year ago. Comparable store sales increased 5.7%, besting a 4% hike in the prior year’s fourth quarter. Net income for the full fiscal year came to $532.4 million on net sales of $7.91 billion.

EASTLEIGH, U.K. — B&Q has taken information on shoplifting suspects offline after a security researcher alerted the DIY chain that the data could be accessed without a password. Lee Johnstone, CEO of Ctrlbox Information Security, blogged last week that more than 70,000 logs detailing names of suspects and product information were exposed on an open-source search-engine server.

SUPPLIER NEWS

MONTREAL — Richelieu Hardware reported Q4 sales of $258.5 million, an increase of 3.3% from the previous year, ending the company’s 50th year in business by topping $1 billion in sales—a 6.6% increase over 2017. Diluted net earnings per share for the quarter came in at $0.32. In Canada, the company logged sales of $174.6 million, an increase of $100,000. Net earnings fell by 7.3% year-over-year to $18.5 million. For the full fiscal year, profits edged up 0.1% from 2017 to $67.8 million. During 2018, Richelieu acquired two companies, Cabinet & Top Supply in Florida and Chair City Supply in North Carolina.

SURREY, B.C. — Allcolour Paint Ltd. has announced its sale to Cloverdale Paint effective January 31. Founded in 1963 by George Chapman and operated by Charles and Bob Chapman since 1977, Allcolour produces light- and heavy-duty industrial coatings for the Canadian market from its 64,375 square-foot-facility in Oakville, Ont. Both are private, Canadian owned family businesses.

ST. PAUL, Minn. — 3M Co. reported earnings of $2.27 per share, a 167% increase from a year ago. At that time, the conglomerate took a net loss of $0.04 per share as a result of tax and legal costs. Sales for the final quarter of 2018 were down 0.6% for a total of $7.9 billion, including a 0.3% decline in the industrial segment. Operating income for the quarter came to $1.8 billion.

CHICAGO — MRO supplier Grainger has been named to Fortune’s annual list of Most Admired Companies in 2019. Grainger ranked number one in the Wholesalers- Diversified category for the sixth consecutive year.

NEENAH, Wis. — Australian packaging maker Amcor’s acquisition of Bemis is not expected to close until Q2, a delay resulting from the U.S. federal government’s partial shutdown. The ensuing disruption of the Securities and Exchange Commission has prevented it from completing the requisite documentation review and antitrust approval. The $6.8 billion, all-stock transaction was originally slated for completion in the first quarter.

OVERHEARD

“Canada has become the hotspot for companies dipping their toe in the North American retail market.” ―Bruce Winder, retail analyst (and former Canadian Tire merchant), speaking recently to CTV News about the ongoing demise of smaller retail chains in this country. More than 50 international brands made their entry into Canada in 2017 alone, and that trend is expected to continue.