Lowe's in Canada: organic growth, opportunites for Canuck vendors

MARKHAM, Ont.–According to Doug Robinson, president of Lowe's Canada, he's not looking to buy RONA or anybody else in or order to enter Canada. “We think the Lowe’s environment will serve [customers] here,” said Robinson at a recent breakfast seminar hosted by the CHHMA. But the stores have to follow carefully the established Lowe’s model. “We are a very deliberate company. We are a very process oriented company. We can afford to grow deliberately. So we will follow the organic path,” he said, by building new stores–not by acquisition. “Acquisitions present their own challenges,” he added, referring, no doubt, to Lowe’s acquisition in the U.S. many years ago of Orchard Supply Hardware. Lowe’s has begun building its Canadian merchandising team, which will work closely with Lowe’s head office in Mooresville, N.C., to tailor assortments that suit the new market. Line reviews will begin this spring, and, said Robinson, he expects Canada will present reverse opportunities for vendors here. “But we haven’t been able to quantify that yet.” He says he needs to complete that first round of line reviews before he can assess those opportunities. The world’s second-largest home improvement retailer will enter Canada with up to 10 stores in 2007, beginning in the Greater Toronto Area. Other metro markets are expected to follow, with the eventual entry into rural markets, as well, for as many as 100 Lowe’s stores in this country. ”

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Weyerhaeuser makes Canadian closures, layoffs

FEDERAL WAY, Wash.–A rash of closures and layoffs in Canada reflect the company’s attempts to consolidate its business North America-wide. But it does not indicate a lessened commitment to the Canadian market, says a Weyerhaeuser spokesperson. The cuts in Canada, including more than 60 positions, mainly in sales and marketing across the country, are just part of an ongoing trend that began last year with staff reductions and closures in the U.S., reflecting an effort to “look at our competitiveness and our ability to serve our customers,” says Cathy Carlson, a spokesperson for Weyerhaeuser. And although no distribution centers have closed yet, “this may change over time,” she adds. Meanwhile, Weyerhaeuser will focus on its core brands, including Trus Joist engineered wood, and its OSB line under the Structurwood name, while reportedly dropping other lines such as flooring.

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LP disposes of vinyl siding business

MONTREAL–Louisiana-Pacific continues to peel off segments of its operations. Its most recent divestiture found the Portland, Ore.-based LP agreeing to sell its vinyl siding business to the KP Building Products division of Kaycan, based here. That division includes two plants: in Acton, Ont., and Holly Springs, Miss. Milton, Ont.-based KP makes and distributes vinyl and aluminum siding, trim coil and gutters. In September 2004, Kaycan expanded this business when it bought Plastmo Ltd., which makes vinyl rain gutter and windows systems. Kaycan's president, Lionel Dubrofsky, stated that his company's goal is to become a "one-stop" supplier for vinyl and aluminum products. To improve its financial performance (the company's sales and earnings through the first nine months of 2005 were off 9%) and focus its business on making and distributing oriented strand board, LP in recent years has been divesting itself of assets that included forests, lumber mills, and other manufacturing facilities. It had already classified its vinyl siding operations as "discontinued" in its third-quarter financial statement.

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Wolseley announces plans for North American HQ

NEWPORT NEWS, Va.–Wolseley plc, the British-based building products supplier, has been enticed by tax incentives and grants from the state of Virginia to build a 220,000-sq.ft. North American headquarters in Newport News. Wolseley's North America division, created in early 2005, includes Raleigh, N.C.-based Stock Building Supply and Ferguson Enterprises (also based in Newport News), respectively the largest pro dealer and plumbing distributor in the United States. It also consists of Wolseley Canada (formerly the plumbing distributor Westburne). These companies will continue to operate out of their current offices. In recent months, Wolseley has aggressively restarted its acquisition campaign in North America. Construction on the new headquarters– whose costs news reports peg at between $30 million and $33 million–should begin this spring with the expansion of one of Ferguson's headquarters buildings near Newport News’ airport. That first phase should be completed by mid-2007, and would eventually bring 400 jobs to the area. The company has stated as well that it plans to add three more buildings to this complex over the next 10-15 years. Several news reports indicated that Wolseley chose Newport News over Raleigh, N.C., after the state of Virginia outbid North Carolina by coming up with an incentives package that included $4 million in grants. Newport News is kicking in $1.25 million in grants as well.

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