• “Now we’re going to see, I think, by mid-year or later in 2015 and for 2016, the commercial market starting to really grow at a different rate. And as you all know, the commercial market lags about 18 months from the residential market. We haven’t seen that lift yet. But we're well-positioned, big-time well-positioned, for that lift when it comes. And hopefully, by the last quarter 2015, we should see some type of growth starting there.” —Luc Desjardins, president and CEO of Superior Plus (1/26)
• “Dealers don’t overreact when conditions change. They understand there are going to be cycles and they prepare well for those cycles. They don’t over-expand during good times and they contract well when times get lean.” —Ken Jenkins, president, Castle Building Centres (2/2)
• “The addition of Groupe BMR illustrates our will to build on the retail sector, particularly in the areas of renovations and building materials, and contribute to the growth of local economies, including in the agricultural sector.” —Gaétan Desroches, CEO of La Coop fédérée (2/9)
• “Believe it or not, our dealers in Newfoundland were the first to notice the effect of falling oil, because so many of their customers work in the oil patch, come home and build homes.” —Steve Buckle, president, Sexton Group (2/16)
• “Is your slogan still ‘Homeowners helping homeowners?’ See, that’s accurate. Home Depot’s slogan? It’s almost killed me, literally. ‘You can do it. We can help.’ I don’t know how they can legally lie to you−twice! Have you met me? I can’t do it, and you’re not going to help!” —Graham Chittenden, comedian, performing at Home Hardware’s Spring Market (4/27)
• “You can’t have people who sit there with laptops and tell you how much you’re gonna buy—[or] what your customers need.” —Michael Medline, president and CEO of Canadian Tire Corp., on how his buying teams are relying on the expertise of CTR dealers to improve the purchasing process. (4/20)
• “I get a lot of new homeowners who have just discovered that their house doesn’t come with a landlord.” —Véronique Laury, CEO of Kingfisher plc (4/13)
• “Retailers tend to think people won’t buy saws or flooring on the internet.” —HARDLINES’ intrepid Editor, Michael McLarney, as quoted in Les Affaires discussing this industry’s slow transition to e-commerce. (7/6)
• “The most dynamic, the most effective, the most profitable people in this industry are the independents.” —Ken Jenkins, president, Castle Building Centres Group (11/2)
• “TIM-BR MART buys right for the independent dealer, with the highest volume of drywall purchases of any buying group in Canada―and that’s a fact.” —Bernie Owens, president, TIM-BR MART Group (11/9)
• “We think the store is still the nucleus of our relationship with the customer, but the store in and of itself is not enough. We really have to be there on an omnichannel basis for the customer.” —Robert Niblock, chairman, president and CEO of Lowe’s Cos. (11/23)
• “I would like to see more women take credit for their accomplishments without worrying about feeling arrogant or undeserving.” —Christine Hand, chair of the board, Home Hardware Stores Ltd., on being recognized by the Women’s Executive Network (12/7)

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TORONTO — After terminating the contract for in-store detailing and merchandising from RDTS, through its IMAGINE program, RONA will continue to maintain its stores through a new program, RONA Merchandising Services (RMS). But it has a new service provider to execute the program, a North American shopper marketing agency, Match Marketing Group. With head offices in Toronto, the company’s scope is wide, and it has had rapid growth in recent years that includes a raft of acquisitions (including five in 2013 alone). But its strength has historically been in the grocery channel and in sporting goods. According to its website, clients include Mars candy bars, Pepsi, Kraft, Adidas, Ford, Dannon yogurt, Campbell’s soups, Samsung, Rogers, and YUM Brands. That expertise has many vendors in this industry concerned and some shared those concerns. The new arrangement is being regarded as a disruption of RONA’s long-standing relationship with some 450 vendors. One hardware executive, whose company has hundreds of lines listed with RONA, said he was worried about service levels with a company he perceives as unfamiliar with hardlines. “We’re extremely concerned,” he added. As the sales manager for one Ontario-based building products manager put it, “The highest level of in-store merchandising expertise has always been with RDTS.” She added that the company was known for its enthusiasm, thoroughness, and know-how in hardware and building materials. Match MG did not respond to HARDLINES’ requests for an interview. According to the company’s website, it currently employs more than 600 people in seven offices, as well as more than 7,000 field staff across North America. Based on current recruitment efforts, Match MG will seek to ramp up its expertise in this industry quickly. Just before Christmas, it had more than 2,000 job postings on its website for “home improvement merchandising specialists” and team leaders. While RONA was a big customer for RDTS, company president Robert Di Tomasso says the company remains strong in merchandising and sales ‎through its original business model, working directly with vendors doing merchandising, audits, sales, and market research in the Canadian market.

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_________________________________________________________________ RONA dealer’s expansion strategy aims to counter “uber factor” GUELPH, Ont. — When Wayne Filsinger decided to renovate his store, W. Filsinger & Sons RONA in Guelph, Ont., three years ago, he took the needs and wants of his customers as a blueprint. Factoring in e-commerce, and with plenty of bricks and mortar competition nearby, the 2015 Outstanding Retailer Award winner sees it as the only viable business plan. “We don’t want to be ‘ubered’, like what’s happening in the taxi industry,” Filsinger says, referring to the upstart online ride sharing service that has rocked the taxi industry. The old RONA Guelph was about 7,000 square feet, which Filsinger points out is now the size of the store’s receiving area. The renovated store measures 35,000 square feet, and includes a separate contractor and design showroom. With all that extra space, Filsinger says his team tries to keep the receiving area as empty as possible, because “people want to come in and see the product on the shelves.” The new store design features low sight lines and he’s even moved merchandise such as patio stones, which were historically kept outside, inside the store since he’d found people often forgot which product they liked once they went back inside to order. However, one of the biggest changes since the renovation is a dedicated bath showroom. With a direct line to a specialty bath supplier in Toronto, Filsinger says he is able to stock products that are a notch above the standard quality, but still not quite as expensive as more luxury lines. “Nobody in the radius has a better selection of handheld showers,” he says. “It’s really working and we’ve only just scratched the surface.”

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Home Depot’s greatest growth coming from big contractors SPECIAL REPORT ― As the world’s largest home improvement retailer has recovered from the worldwide recession, it has experienced the greatest growth from purchases by its larger contractor customers. Home Depot is tracking the trend to more contractor sales, with a series of initiatives and merchandising strategies to increase its appeal to pro customers. In a call to analysts during release of its third-quarter results, Home Depot CEO Craig Menear said, “We are seeing that growth come from our larger pro customers and we’ve seen that trend for the past several quarters now.” And the contractors tracking strongest are the “large-spend pros,” who are spending more year over year than the average DIY customer. As Home Depot continues to focus on these larger pro customers with new services and dedicated house brands, Menear expects that the spread between the DIY and contractor spend to keep growing. “We would certainly expect it to continue,” he added.

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___________________________________________________________________ Lowe’s Canada has appointed Alan Blundell as divisional vice president, merchandising, effective today. In this newly created position, he will oversee the merchandising function and be responsible for leading the company’s category management strategy. He reports to Igor Halencak, head of merchandising and marketing. Blundell joins Lowe’s Canada with more than 18 years of merchandising experience in the retail industry, 16 of them at Walmart Canada, most recently as vice president of merchandise operations. “...[T]he time is right to have a merchandising lead that will solely focus on delivering an omnichannel, customer-centric category management focus to the organization,” Halencak said. Maxime Gendreau, sales and marketing manager for Canada for Garaga Inc, has announced the appointment of Éric Léveillé as territory sales manager for Montreal Island, West Montreal, Abitibi, and Ottawa areas. Léveillé has worked in the building materials industry for more than 24 years, including senior sales roles with major Canadian building material wholesalers. Garaga, a Canadian family-owned garage door manufacturer for the residential, commercial, and industrial markets, owns plants in Saint-Georges, Que., and in Barrie Ont., plus a distribution centre in Montreal. (eleveille@garaga.com; 1-866-609-3792)

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CLASSIFIED ADS

LM2 Marketing, a 20-year-old Manufacturer’s Rep Agency, is looking for a Sales Representative for Central Ontario/GTA. Sales background within Hardware, Paint and Industrial markets would be an asset. Please send resume to Rlepine@LM2.ca

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