CanWel tightens reins on hardware division following vp's departure

VANCOUVER — Yet another former CanWel, Hardware Division team member has left the company to join, er, a radio supply company. Cygnal Technologies Corp. announced last week that it had hired Jack Van Kessel as president and general manager of its White Radio business. Van Kessel, who had been vice-president at CanWel, Hardware Division, joins some familiar faces: Cygnal's president and CEO is Jos Wintermans, former head of Sodisco-Howden Group, who left the company when it was taken over by CanWel Distribution and renamed CanWel, Hardware Division. Wintermans took James Shannon, his CFO, with him to the new company. At CanWel's hardware division, Van Kessel was responsible for a 600-employee business that supplied 40,000 products to an independent dealer network and generated nearly $200 million of revenues annually. Before that, he was a vice-president of Brewers Retail Inc., running first its retail operations and then its logistics division. "We worked well together at Sodisco-Howden, so it made sense to bring him on," says Wintermans. At CanWel, Van Kessel's departure encouraged CEO Tom Donaldson to shift the operations of the hardware division more closely with those of its LBM distribution business. Both divisions are now under the direction of Robert Downs, vice-president and general manager of CanWel Distribution. Although the two companies are operationally closer together, they still go to market in different ways, says Donaldson. "There may be some opportunity for overlap at the senior executive level, such as with the buying groups, but they are quite distinct at the dealer level," he says.

↑ top

TruServ's new corporate structure supported by new systems

WINNIPEG — TruServ Canada began the year with a new plan for growth, a new corporate structure, and a new company-wide computer system. In order to strengthen the company's long-term financial position and to attract new business relationships, TruServ moved from a cooperative to a corporate structure as of Dec. 31, 2006. A week later, it flipped the switch on a new enterprise resource planning system. "Our board of directors is dedicated to the growth and success of the company," says Bill Morrison, TruServ's president and CEO. "Part of our strategic plan was to introduce a new ERP system to help us maintain and enhance business processes." Microsoft Dynamics AX, formally known as Axapta, officially went live on Jan. 8 in the offices and distribution centres of TruServ Canada. "We are thrilled with the success of the implementation. The extensive planning process and detailed testing have facilitated a smooth transition to the new system," says Morrison. "We're definitely open for business!" (He really does talk in exclamation points). However, he admits that implementation of the new system was held up by about six months. Cautioned by the experiences of companies such as Loblaw, whose supply chain woes made an impact on its annual results, TruServ waited to go live, "to get it right," Morrison says. The new system will also put TruServ in a better position to manage its alliance with CanWel, Hardware Division. (Called PRO Retail Services, the alliance puts the direction of CanWel, Hardware Division's bannered PRO retail customers under TruServ's management. CanWel continues to supply those customers as a pure wholesaler.)

↑ top

Quebec dealers' association celebrates publications' 50th anniversary

LONGUEUIL, Que. — This year will mark the 50th anniversary of Quart de Rond magazine, published by The Building Materials Retailers' Association of Quebec (ADMACQ). Donald O’ÄôHara, president, general manager and editor of the magazine, is delighted that the magazine has become the true reference of the industry. "Very few magazines are able to celebrate their golden jubilee, and I’Äôm extremely proud when I look at the road traveled in all these years. I would particularly like to thank all contributors, journalists, columnists, graphic artists, the previous editors of the magazine as well as all ADMACQ's staff members, who have helped make Quart de Rond magazine what it is today, and what it will be tomorrow." ¬Ý O'Hara also sends his thanks to all the members of the Association that have always given their support to make the magazine a success. "For the last fifty years, our goal has been to offer the best available source of information to our members. This contest is our way of thanking them." ¬Ý In collaboration with its partners, les centres de formation en transport routier de St-Jˆ©rˆ¥me et de Charlesbourg (CFTR et CFTC), Maia Home Products Inc., RDTS / RDTM and AFA Forest Products inc., ADMACQ is hosting a contest. Eight gift certificates, each worth $500, will be given away one for every issue of the magazine. The vouchers are for a weekend for two in a Quebec resort for either a golf, ski or relaxation package. Only retailer members of ADMACQ are eligible for the draws. Winners’Äô names will be announced in the pages of Quart de Rond magazine. ¬Ý O'Hara adds that a special section called "50 ans de Quart de Rond" will be inserted in each of this year's issues; the reader will find excerpts of articles and humorous events that were published in the magazine since the first issue. For more info, click here.

↑ top

Home Depot faces challenges to growth: new report

NEW YORK — In its first 25 years, Home Depot had the fastest growth of any retailer, including Wal-Mart. Its target for 2010 is $125 billion, up from its current $82 billion. But to meet that goal, the company will have to undertake aggressive retooling and international expansion, says a report by Retail Forward, a management consulting and research organization. The report suggests that while Home Depot will continue to log solid overall sales, growth will moderate and product sales, once representing 92% of volume, will drop below 65%. Last year, they had already dropped to 83%, as the company's focus turned increasingly to installed sales and services. Home Depot must undertake more store modernization to improve the shopping experience for customers, says the report, and put more focus on new and upgraded products. A continued expansion of the "do-it-for-me" business (DIFM) will also be necessary, as will a renewed commitment to internet sales. Two other challenges face the company — developing different formats to tap new markets and enhancing operational efficiency. It currently has five multi-level stores, including two in Manhattan and two in Canada, which focus more on local needs such as strong storage assortments. Home Depot faces increased competition in both the U.S. and Canada from its biggest rival, Lowe's, which is considered by industry observers and consumers as having more attractive and user-friendly stores. To compete successfully, Home Depot will have to improve its existing stores.

↑ top

Ace Hardware performs well against big box rivals in '06

OAK BROOK, Ill. — Ace Hardware Corp. appears to have outperformed Home Depot and Lowe's in 2006, based on preliminary figures used in an interview given by the company's CEO, Ray Griffith. According to the report, the company has just concluded its best sales year since 1998, with wholesale sales up 6.5% to $3.4 billion and a record bottom line exceeding $104 million. Its stores, about two-thirds of which are owned by independent dealers, racked up almost $12 billion in retail sales. A focus on convenience and excellent customer service has enabled the 4,600-store chain to claim such a significant portion of the hardware market. In addition, old stores have been revamped, while new ones have a bigger footprint. As reported in Hardlines, it has also engaged in guerrilla marketing, such as the Dream Ace program, under which a potential store owner is sold a $1-million store for $1.

↑ top

Lowe's 'decks out' its stores

MOOREVILLE, N.C. — Lowe's appears to be moving more aggressively into the composite deck market. In the first quarter of this year, its 1,325 stores throughout the U.S. will begin stocking selected decking and railing products supplied by Trex Co., the Winchester, Va.-based manufacturer. This purchasing agreement "represents an exciting new opportunity for Trex to expand our presence in the retail channel," said that company's chairman and CEO, Anthony Cavanna. Upon the announcement of this agreement, Trex's stock price enjoyed its single biggest gain in five months. Trex's full line will be available at Lowe's through special order. Lowe's has also extended by three years its exclusive agreement with Weyerhaeuser to offer that supplier's full line of ChoiceDek brand composite decking. The line will be expanded in Lowe's stores to include a broader color selection available through special order. ChoiceDek is made for Weyerhaueser by Advanced Environmental Recycling Technologies.

↑ top