Coop fédérée's rural home improvement network garners strong growth

TROIS RIVIERES, Que.–In 2005, La Coop fédérée, through its hardware and home improvement banners, CO-OP and Unimat, saw sales grow by 8.% in spite of challenging conditions that typify the rural markets these stores operate in. “We analyze our market conditions each year and compare them with those of other industry players,” says Claude Gingras, Coop’s general manager–Hardware Division. “We're very proud to say that, in spite of the difference in context, we've performed better than other industry players.” Over the past seven years, in fact, the CO-OP and Unimat hardware network has grown by 71%. While the Coop traditionally serviced only its own member CO-OP stores, a program introduced two years ago gives it the ability to sell to non-member retailers. Those retailers must operate under the Unimat banner, which is owned by Coop fédérée, and since the program’s inception, 10 stores have signed. Another one is expected to close early this year, with “several prospects” on the books, says Gingras. One of the programs contributing to Coop fédérée’s growth is a boutiqued decoration centre, being installed right inside the traditional hardware store or building centre. A unique aspect of the program is that it includes a decorator on staff to provide expert service to customers. In fact, Gingras says, some boutiques are so successful that they keep three décor experts on staff. After two years, the boutique concept has been established in 12 stores. “That’s the new concept we have,” he says. “That’s our future.” La Coop fédérée, with its network of affiliated cooperatives, is the fourth largest company in Quebec with total revenues of $5.1 billion and more than 14,000 employees.

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UFA’s ambitions not restricted to its home province

CALGARY–United Farmers of Alberta, the 35-store chain of farm and hardware stores, has rounded out its management team with the determined aim of growing the business, including a newly created position of vice-president of business development. (See also “People on the Move”–MM.) According to Jimm Holland, who is in charge of marketing for UFA, the new team–along with a new, updated corporate logo–have been established to increase the business acumen and competitive strengths of the company. It also confronts one question: “What’s the evolution of the agri market in Canada–and how can UFA respond to that?” he asks rhetorically. The large commodity farmer dominates now, he points out, while the small acreage remains important–but with very different needs. One way the company is responding is with innovations to its retail formula. UFA’s 35th store, erected last summer in Drayton Valley, Alta., weighs in at fewer than 6,000 sq.ft., considerably smaller than the standard UFA store, which can be up to 10,000 sq.ft. in size. It also has a smaller yard. Holland says there’s room for more such stores. “I’m not sure how many, or how soon, but we’re testing this one to see how well the market responds to it.” Increasing the size of the chain is part of UFA’s growth strategy, and its mission statement does not restrict that growth solely to Alberta. Although there’s “nothing on the books now, we’re always looking at those opportunities,” he adds.

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Home Depot beefs up power equipment offering

ATLANTA — As it moves towards the spring selling season, Home Depot is expanding its assortment of outdoor power equipment by adding two well-known brands, one of which has long been featured in the stores of its main rival, Lowe’s. Home Depot is introducing lawn tractors bearing the Cub Cadet and Toro brands. Cub Cadet will supply its Series 1000, RZT and Home Maintenance models, which range in price from $1,699 to $2,999. Toro will offer several lawn tractor models, including its TimeCutter Z zero-turn-radius mower. The Toro mowers will range from $1,299 to $2,599. By carrying the Toro TimeCutter Z and the Cub Cadet RZT, Home Depot will offer customers the two best-selling residential zero-turn-radius mowers on the market. And by stocking Cub Cadet, Home Depot is taking direct aim at Lowe’s, which has showcased Cub Cadet as its step-up brand for many years. In a prepared statement, Home Depot said that these additions will supplement its existing line of lawn tractors by John Deere, whose L100 series sells for between $1,799 and $2,599. However, a spokesperson for Home Depot, Connie Bryant, says that Deere’s product would have to yield some shelf space to the other two tractor brands. Home Depot’s supply relationship with Deere might also be changing because of the manufacturer’s own growth objectives. Deere’s chairman and CEO, Robert Lane, projected recently that his company’s commercial and consumer equipment division, whose sales were off 4% in 2005, would grow between 10% and 12% in 2006, thanks to new product introductions and a return to more normal weather patterns, as well as a full year of sales from the division’s recent landscapes-business acquisition. Lane also said Deere wants to expand its presence in the mass-retail market.

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