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January 20, 2014 Volume
xx, #3
“Man’s many desires are like the small metal coins he carries about in his pocket. The more he has the more they weigh him down.” —Satya Sai Baba (Indian guru, 1926-2011)
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Cross-border shopping poses challenge for lumber dealers
WINNIPEG — Blame it on a higher minimum wage here. Or blame this country’s higher tariffs. You could even point a finger at the “lack of courage among our politicians,” says Diane Brisebois, president and CEO of Retail Council of Canada. Speaking recently at a breakfast meeting held by the Winnipeg Chamber of Commerce, she outlined some of the challenges of cross-border shopping.
“We lost $16 billion last year to cross-border shopping. And that’s not vacationers. That’s same-day and overnights,” Brisebois adds.
It’s a story that’s very familiar to the group of building supply dealers in the room, there courtesy of the Western Retail Lumber Association. “It’s a huge problem,” says Martha Konantz, president of North American Lumber. The TIM-BR MART dealer is headquartered in Winnipeg with 21 stores stretching from Northwestern Ontario to Saskatchewan. That puts many of her locations in sight of Menards. “In South Winnipeg, we all get Menards flyers in the newspaper. They have a warehouse in Winnipeg and they deliver from Duluth [Minnesota] up to Thunder Bay, and to Red Lake and Kenora [Ont.].”
Menards is a giant privately held big-box chain with 280 stores throughout the U.S. Midwest and sales that are estimated at over $8 billion annually. It is known for low prices, aggressive advertising, and a maddening obsession with selling into Canada.
“You quote on kitchens or garages, say, and next thing you know, the Menards truck is there instead,” Konantz says.
Brisebois concludes her presentation with an exhortation: “I think it’s time we all stand up and tell our governments [to pass legislation] to keep our customers here. To accuse our homegrown retailers of gouging is the most irresponsible thing.”
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Regional wholesalers innovate to maintain edge
SPECIAL REPORT — Barrie, Ont.-based CanSave is one of the shrinking breed of regional hardlines and building materials distributors that has withstood the industry’s tumultuous consolidation.
Another is Coast Distributors, which since 1968 has sold a range of hardlines to dealers on Vancouver Island and in lower British Columbia. And it’s done so in the face of what Coast’s sales manager Brad McCluskie characterizes as competitive “turmoil” in Western Canada during most of those years.
Regional distributors, and particularly those specializing in just one or two product categories, have long been protecting their flanks from increasingly aggressive onslaughts into their territories by national wholesalers. Those still standing succeed by emphasizing the value propositions of their inventory management and delivery services to dealers looking for any competitive edge.
Coast, with more than 1,500 retail accounts that include hardware stores and auto centres, is looking to add product categories where it currently has little or no market penetration. These include plumbing and electrical, striking tools, automotive, and lawn and garden, the last of which McCluskie believes presents “a massive opportunity” for his company.
Lawn and garden—specifically outdoor furniture and living products—have also been a boon for Holland Imports, the Burnaby, B.C.-based importer and distributor. “The hardware business has been soft over the past two years, so outdoor living will account for one-third of our division’s sales in 2013,” says Keith Brown, general manager of Holland Imports.
Like other distributors we talked with, Brown says attrition and consolidation have winnowed the number of buying offices and dealers his company can sell to. Brown notes that the number of independent dealers in urban centres has been dwindling, too, which causing his company to shift its marketing toward rural stores.
(This is an excerpt from a feature story on the state of Canada’s regional distributors that appears in the current edition of our sister publication, Hardlines Home Improvement Quarterly. HHIQ is available at no charge to dealers and managers in Canada. Click here to get your copy today! —Michael)
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Quebec inventor’s planning software is ready for take offs
QUEBEC CITY — A former estimator, civil technician, and general contractor has developed a proprietary project planning software which is garnering the attention of some of the country’s largest independent dealers.
The software, called constructeurvirtuel.com (the English version, thevirtualconstructor.com, will go live in a few weeks) is the creation of François Lepage, who spent 19 years at Canac, the giant Quebec home improvement chain, before venturing out on his own. He recognized a need for easy-to-use software that could update project specs with the click of a mouse. “In Quebec alone, more than half of all hardware and building supply stores do not offer estimates, quotes, planning, or budgets for customers.”
The software is being tested by a couple of major Quebec dealers, who license the software on a monthly basis, while customers can use it online at any time. Lepage notes that a person can access their project on their computer or even on their mobile device—and make changes or updates on the spot. With every change made, the plan is redrawn, the list of materials recalculated, and the budget readjusted automatically.
His website has been live since last June and during that time users have completed more than 20,000 projects with constructeurvirtuel.com.
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HTV Exclusive: Stories to watch in 2014
SPECIAL REPORT — after a year filled with mergers, new retail players, personal scandal, more consolidation, and unusual retail formats, there can be little doubt that 2014 will hold its share of surprises too. A new segment from Hardlines TV takes a look at the economic conditions and retail companies that are expected to shape the news in the year ahead.
With the economy ending on a flat note in many areas—including employment rates, housing starts, and building intentions—many hardware and home improvement dealers will be relying on local opportunities and their own resourcefulness to grow in the coming months. Meanwhile, the weakness of the Canadian dollar may help to dampen Canadians’ love of cross-border shopping while giving a boost to manufacturers that rely on exporting.
Companies that dominated the news in 2013 included RONA and TIM-BR MART Group and they are already giving indications of how they intend to strengthen their positions in the year ahead.
(To watch our latest short video from HTV,
“Looking to the Year Ahead,” click here now!)
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Target’s poor performance in Canada good for shoppers
MISSISSAUGA, Ont. — Target’s Canadian stores now expect to post a fourth-quarter loss of about 45 cents per share, almost doubling its previous guidance of a 22-32 cent loss.
The revision comes on the heels of a difficult holiday season, which saw much of eastern Canada blanketed by a severe ice storm. Deep discounts offered to move merchandise into the hands of reluctant Canadian shoppers also took a bite out of profits, and the Target brand was damaged by a credit card data breach, even though Canadian stores operate on their own point-of-sale system and were unaffected.
Target’s poor performance in Canada since making its debut could have a bright side—for shoppers, if not for stakeholders. The meagre showing may prompt the retailer to cut prices, Toronto Life suggests.
In fact, many products have already seen deeper discounts as Target seeks to counter slow sales, a factor noted in its Q4 results. Higher prices have been a persistent complaint since Target’s arrival among Canadian consumers, many of whom are familiar with the chain’s American stores and their price lines.
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Classifieds
TERRITORY MANAGER
(ONTARIO - EASTERN, CENTRAL, GTA)
ISOLOFOAM Group is a well establish company, manufacturer and distributor of innovative rigid foam insulation panels (EPS) for all types of buildings.
We are currently seeking a talented, energetic individual with strong drive to success and determination to join our growing team.
This position requires an individual who is familiar with the Lumber and Building Supply industry, as well as building techniques and specifications.
Reporting to the District Manager, this position will develop and expand relationships with LBM dealers, retailers, contractors and architects. Manage and direct the sales process for these customers to achieve and surpasse sales and corporate goals. Enhance market positioning. Support the organization in competition and market requirements analysis. Competitive compensation package offered.
Please forward your resume in confidence to rh@isolofoam.com
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National Account Manager
Blanco is an International market leader in the Kitchen sink and faucet industry, with its Canadian head office based in Brampton, Ontario. We are currently seeking an experienced National Account Manager to join our expanding Canadian Sales team and drive our continued growth in this channel. This position will manage the Canadian retail portfolio, and will report to the Director, National Sales.
RESPONSIBILITIES
- Managing portfolio of retail accounts, as assigned.
- Promotional planning and sku/category management.
- Development and preparation of customer presentations and meeting materials.
- Coordinate and attend customer/ industry trade shows and events, as required.
- Organize and monitor product training programs.
- Create and maintain competitive market price shops on a regular basis.
KEY COMPETENCIES
- Excellent written and verbal communication skills.
- Strong organizational skills - ability to work independently and within a team.
- Participate effectively with cross functional departments internally and externally.
- Experience in product forecasting and sales data analysis required.
- Ability to develop and effectively deliver PowerPoint sales presentations.
QUALIFICATIONS
- 5+ years of national/regional account sales experience in the retail home improvement/plumbing.
- Post-secondary education.
- Knowledge of online retailer category management an asset.
- Ability to travel within Canada required.
- Bilingual (English/French) not required, but considered an asset.
- Advanced Microsoft Office Applications including: Excel, Word, and PowerPoint.
Interested applicants should email resumes to wmcpherson@blancocanada.com . We thank all those who apply, however please note only applicants selected for an interview will be contacted.
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