|
Michael McLarney, President & Editor
mike@hardlines.caBeverly Allen, Publisher
bev@hardlines.caJohn Caulfield, Contributing Editor
Phone: 416-489-3396
|
| January 12, 2009, Volume xv, #2 | |
In This Issue
|
||||||||||||||||||
|
“When a thing is done, it’s done. Don’t look back. Look forward to your next objective.” —General George C. Marshall (American Army general and statesman, 1880-1959) |
||||||||||||||||||
| Dealer Conference will offer tips and competitive intelligence for independents | ||||||||||||||||||
WORLD HQ, TORONTO — The Johns Manville Hardlines Dealer Conference, being held in conjunction with the Canadian Home Improvement Show, Feb. 5-6, 2009 at the Toronto Congress Centre, has finalized its incredible roster of breakout sessions. The education program, a first for the LBMAO’s winter buying show, will feature a range of topics to help independents recession-proof their business in the year ahead.
Top. |
||||||||||||||||||
| Lowe’s seeks to replicate corporate culture in Canada | ||||||||||||||||||
| BELLEVILLE, Ont. — At the opening of Lowe’s eighth store in Canada last month, the focus was on maintaining a corporate culture that is deeply entrenched in the U.S., but brand new to Canada.Alan Huggins, Lowe’s Canada’s vice-president operations, says the company set out to recruit staff who were able to reflect Lowe’s culture of high standards and strong service. And though the Lowe’s culture is new here, the challenge has not been a severe one, even with eight stores currently opened here in Canada, and another three slated to open over the next two weeks (in Whitby tomorrow and Windsor and Barrie on Jan. 27). “I’ve learned that people are people,” Huggins says. “We’ve been able to find great people who care about the store, the product, and the customer.” The company stays focused, however, on preserving that approach that has made Lowe’s a powerful competitor to Home Depot in the U.S. Things like keeping aisles clean and keeping a focus on customer service are central to Lowe’s modus operandi, which must be embraced by everyone from the managers to the sales staff. | ||||||||||||||||||
| TORBSA grows ranks despite downturn | ||||||||||||||||||
| BOLTON, Ont. — The addition of a new member to the TORBSA Buying Group is just one more indication of the viability of the independent dealer even as the economy softens.Prestige Acoustics Ltd. of Waterloo, Ont., is a supplier of interior finishes and related products to the drywall and ceiling industry. It becomes the 28th member of TORBSA, which now represents about 43 points of sale, mainly in Ontario, but with one member now in Quebec as well. Bob Holmes, general manager of TORBSA, says Prestige joined to take advantage of TORBSA’s member-owned status, its small size, and its focus on pro and commercial dealers. “Our organization is very seamless,” he says. “We share everything with our members, while letting the dealers focus on their own business, under their own name.” The intimate nature of the group (Holmes says it purposely restricts membership numbers) lets the dealers be part of a peer group in which they can form solid relationships. “It allows the members to knock information and ideas around and to learn from each other’s experiences.” The group itself, says Holmes, has begun to feel the effects of the economic downturn that has hit the Ontario market especially hard in recent months. However, even as new housing construction slows, the dealers’ commercial and industrial business “is still fairly significant, as money flows into projects such as hospitals, condos, and power centres. There’s still work there,” he notes. | ||||||||||||||||||
| IRLY helps new dealers expand hardlines with localized sourcing | ||||||||||||||||||
| SURREY, B.C. — The IRLY Building Centres, the dealer-owned buying group and wholesaler, has added two new members in its home province of British Columbia. They are Victory Building Centre in Mackenzie and 108 Mile Building Supplies in 108 Mile.Victory Building Centre, owned and operated by Sylvain & Marilyne Laferriere, began as a carpet and flooring store 30 years ago and gradually incorporated other hardware lines. The Laferrieres bought the business in January 2005 and moved to a larger, 4,000-sq.ft. location a year and a half later. They wanted a local warehouse, which the IRLY organization was able to offer. “The service has been exceptional. Everyone at IRLY has gone above and beyond to help us with our store,” says Sylvain Laferriere. The new owners have also expanded their product line to include paint, mouldings, windows and doors. Next month, the pair plan to re-merchandise their store and bring in plumbing and electrical lines, and build a compound for lumber. Doug & Kathie Cadrin of 108 Mile Building Supplies bought a siding and window supply store in 2001 and have expanded their business to include all categories of building materials. Currently, their main product lines include windows, doors, landscaping and fencing. Now, the Cadrins have also expanded their warehouse and offices to 16,000 sq.ft. They have already begun remerchandising their store and plan to add new products for the renovation market, such as toilets and vanities. Doug cites better pricing and service as the main reasons for joining IRLY, after buying for years through IRLY’s Western Hardware division. | ||||||||||||||||||
| Las Vegas hardware show introduces sourcing convention | ||||||||||||||||||
| NORWALK, Conn. — Reed Exhibitions, producers of The National Hardware Show, (May 5−7, 2009, Las Vegas) will introduce an International Sourcing Convention at this year’s event. The comprehensive new platform will give distributors, wholesalers, importers/exporters, private label retailers & OEM manufacturers a opportunity to source new home improvement products and components.The International Sourcing Convention will offer face-to-face networking & matchmaking services (pre-and-post show), educational sessions on how to conduct business, a business centre with translation services, an international reception area, and web-based programs to ensure sourcing success from over 1,400 international manufacturers from some 60 countries. | ||||||||||||||||||
| ATLANTA — In another sign that it is shifting its spending priorities, Home Depot has disclosed that it will end its 16-year run as a sponsor of the U.S. Olympic team.The retailer is discontinuing its well-publicized program of supporting athletes in training in the U.S. and Canada by hiring them as employees, paying them as full-time workers but allowing them the time to train. Jean Niemi, a Home Depot spokesperson, told USA Today that 600 athletes, including 145 medal winners, have participated in the program since 1992. (There are 98 athletes currently in the program, and they will be able to continue working — but only at part-time pay.) The Associated Press reported that, in the previous four years, Home Depot’s had spent between $15 million and $20 million for its sponsorship. The program officially ends for the retailer on March 2. | ||||||||||||||||||
|
||||||||||||||||||
| The information you need for powerful presentations with industry analysis is only available in HARDLINES Retail Report 2008-2009. If it’s not already part of your library, order it NOW! Order online or contact Brady Peever at brady@hardlines.ca |
| COMPANIES IN THE NEWS |
| BOUCHERVILLE, Que. — RONA inc. has announced it will sell off almost one-third of its real-estate holdings earmarked for future store development. According to the Toronto Star, the property, worth $30 million, is being sold off in response to the declining housing market and reduced consumer confidence.VALLEY FORGE, Pa. — CertainTeed Insulation has completed its previously announced acquisition of the OFI Income Fund, whereby CertainTeed acquires all of the assets of OFI and the OFI Operating Trust, including Ottawa Fibre. The deal was valued at approximately CDN$42 million and included the assumption of adjusted debt. MISSISSAUGA, Ont. — CPI Plastics Group Ltd. has succumbed to the economic slowdown, and unable to secure further financing, has responded to demands by its lender for immediate repayment of all of CPI’s credit facilities. The lender has further notified CPI that it intends to enforce its security over all of CPI’s assets if repayment cannot be made. According to a release by CPI, the company “understands that the lender will move immediately for the court appointment of an interim receiver over all of CPI’s assets. CPI does not intend to object to the appointment.” The company also announced the resignation of its CEO, and the resignation of all of CPI’s other directors. CPI’s Outdoor Living Products Group manufactures and markets Eon Decking and Fencing Systems, as well as cladding and accessory components to the outdoor hot tub industry. The company has more than 600 employees manufacturing out of six plants in Ontario and Wisconsin. ALEXANDRIA, Va. — Smitty’s Building Supply, a leading pro dealer that has been serving Virginia builders and contractors for more than 34 years, succumbed to the collapse of the housing market when it filed for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code. The company generated between $91 million and $94 million in revenue in 2007, the latest year for which estimates were available from trade journals in the U.S. ISSAQUAH, Wash. — Costco Wholesale Corp. had net sales of $7.40 billion for December, a 2% decrease from $7.55 billion in the same period a year earlier. For the 18-week year to date, Costco reported net sales of $24.92 billion, an increase of 2% from $24.53 billion during the similar previous-year period. Same-store sales for December were down 4%, and down 1% year-to-date. NEW YORK — One retail sector that is flourishing amidst the economic turmoil in the U.S. is liquidation sales. Estimated to be worth as much as US$100 billion in sales, the sector finds liquidators becoming busier than ever purchasing closeout and distressed merchandise from over-inventoried stores, bankrupt retailers, and overstocked Asian factories. LONDON — Marks & Spencer, the venerable, and dare we say, iconic, British retailer, is consolidating operations in the face of a severe downturn in that country’s economy. It has laid off 1,230 staff and will close 27 of its 600 stores in Britain. In its latest quarter, sales were off 7.1%. |
Meet hardware sourcing partners
 from the Far East at
Asia-Pacific Sourcing 2009
Cologne, Germany 1-3 March, 2009 www.asia-pacificsourcing.com |
| PEOPLE ON THE MOVE |
| Ace Hardware Corp. has promoted Jack Murphy to director of sales for Ace Global Distribution (AGD), Asia. AGD is the retail distribution arm for Ace International. In his new position, Murphy, 40, will direct the AGD sales teams in Oak Brook, Ill., and in Shanghai, while also working closely with Ace’s 4,600 co-op member stores and the AGD merchandising teams. Responsibilities will include management of global foreign-to-foreign sales and spearheading future initiatives to promote AGD Asia’s worldwide sales growth. Murphy most recently served as international regional manager for Asia Pacific. His responsibilities in this position included growing the Ace brand globally via retail development initiatives and various wholesale strategies. He previously served as a district manager for Ace and once owned and operated an Ace store in Forest City, N.C. He reports to Murray Armstrong, president and general manager of Ace International.Independent Sustainable Forestry Initiative (SFI) has hired Danny Karch to manage market development and acceptance of its forest certification programs in Canada. Karch, who spent 15 years at RONA inc., most recently as national director of forest products, assumes the newly created position of national director, market access (Canada). He will work out of the organization’s Candiac, Que., office. Charles R. Williamson has been appointed non-executive chairman at Weyerhaeuser. He was the executive vice-president of Chevron Texaco Corp. from August 2005 until his retirement in December 2005. Before that, he was chairman and CEO of Unocal Corp. until its acquisition by Chevron Texaco in 2005. Williamson replaces Steven R. Rogel, who will retire April 15 at the age of 65, which is the mandatory retirement age for executives at the Federal Way, Wash.-based company. Rogel joined Weyerhaeuser in 1997, coming over from Willamette Industries to serve as president and CEO until becoming chairman in 1999. At Wal-Mart, Doug McMillon will be promoted to president and CEO of Wal-Mart International, effective Feb. 1. He will have responsibilities for the company’s overseas operations, including India. McMillon, 42, is currently president and CEO of Sam’s Club, a Wal-Mart Subsidiary. He began his career with Wal-Mart unloading trucks at a distribution centre while he worked his way through college. |
|
ECONOMIC INDICATORS |
| Housing starts in December dipped slightly from November, to 177,300 units seasonally adjusted from 178,000 units. Urban starts were down 0.5% in December, urban multiple starts increased 3.2% to 87,400 units and single starts eased 5.1% to 62,700 units. December’s urban starts moderated in three of the five regions in Canada: they declined 12.6% to 36,700 units in Quebec; 6.3% to 25,100 units in the Prairies; and 3.6% to 8,100 units in the Atlantic Region. British Columbia urban starts rose 9.9% to 19,900 units and Ontario urban starts climbed 8.6% to 60,300 units. Actual starts for the month were an estimated 212,366 units, marking the seventh consecutive year in which housing starts surpassed the 200,000 unit mark. However, actual urban single starts for 2008 were still 18.1% lower than a year earlier, and urban multiple starts were up by 9.8% over the same period. (CMHC)Contractors took out $4.8 billion in building permits in November, down 11.8% from October, the result of widespread declines in both residential and non-residential sectors. It was the third double-digit decrease in four months. Intentions fell in all provinces except Alberta, Saskatchewan and Nova Scotia. November's level, the lowest since February 2007, was 22.6% below last year’s monthly average. On a year-to-date basis, the total value of building permits reached $65.7 billion, down 3.9%. (Stats Canada) |
|
Industry Resumés |
|
I am a goal-oriented, project driven, sales and marketing professional looking to join your sales team. I have fifteen years experience in the hardware industry, encompassing retail sales, account management, and brand marketing. My experience working with regional and national accounts, combined with my marketing experience, allows me to drive sales and meet budgets cost effectively.
|
| I am an accomplished sales professional and solution-oriented person who thrives in challenging, fast paced environments where my performance directly impacts the bottom line. In addition, I have solid organizational leadership and decision-making skills that can make an immediate contribution to your operations and business development. Currently, I am seeking a position where I can continue to uphold strong sales and performance standards. |
| Experienced Sales Accounts Manager - Senior Buyer with 20 years of knowledge and contacts in the building supply industry. Excellent organizational and analytical skills complimented by my outgoing and positive attitude will make me a great asset to your companies team |
| Enthusiastic, versatile buyer/category manager with experience in sourcing a wide assortment of goods and services. Offers experience in negotiations, brand development, merchandising, vendor management, competitive analysis, inventory management and business development. |
| Entrepreneurially focused, front-line retail marketing professional with organizational and strategic marketing talents; combines a unique blend of product and market knowledge with solid business development abilities. |
|
Achievement-oriented, entrepreneurial and creative. Ability to motivate and lead others. Extensive experience in marketing, sales and retail operations.. Full computer literacy, Cad, Coral, Windows etc. |
| Seasoned Territory Manager - skilled in building and maintaining customer relationships in the retail building supply channel and industrial tooling & consumables sector. Looking for an exciting new challenge with progressive, growth oriented company calling on all sectors from distribution to end users. |
| Well respected Sales Professional, established relationships in Mid West and South West Ontario. An excellent team player who achieves ongoing success with peers and customers by building morale, maintaining teams' self-confidence and encouraging them to build the sale by improving their people skills, communication skills and Product Knowledge. |
| “Strategic Sales and Marketing Executive available to achieve your top line and bottom line results during these challenging economic times…..If it is leadership, entrepreneurial spirit and passion you seek, look no further…..” |
| Achievement-oriented, entrepreneurial and creative. Ability to motivate and lead others. Extensive experience in marketing, sales and retail operations.. |
|
A highly qualified sales/marketing and senior buyer with over 25 years experience and a proven track record is seeking a senior management position with a growth-oriented corporation where leadership and strong communication skills will have an impact on profitability, productivity and market share. |
| Sales professional - established relationships with key clients in the hardware, building materials, and paint industries, team player, superior business development skills, competitive, enjoys challenges. |
|
Hardlines Products |
| Hardlines Quarterly Report Hardlines Retail ReportHardlines Hot Product ShowcaseHardlines TV Free daily news updates |
|
Did you know you can have this newsletter sent to someone else in your office for only $4.06 a month per person? Click the link below to spread the news to your whole office! |