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IN THIS ISSUE:
- Strong turnout, good weather help the success of WRLA Buying Show
- Peavey completes amalgamation of TSC Stores, maintains banners
- How the Gagnon companies are structured and their connection to Octo
- End of an era as the last two Zellers stores close their doors
PLUS: Leadership changes at the Sexton Group, Lowe’s and RONA stores launch fundraising event, St. John’s dealers wait for the snow to clear, Sears Holdings agrees to settlement, Payworks joins with Retail Council, U.S. housing starts surge, building construction in Canada and more! |
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| Strong turnout, good weather help the success of WRLA Buying Show
CALGARY ― Dealers came from across the West to attend the WRLA Buying Show in Calgary last week. Timing for the show was good, as it was held just a week after the city experienced some of its coldest weather in more than a decade. This is also the last year the show will be held in this city.
But with temperatures last week hovering around a relatively balmy zero degrees, dealers travelled in from across the Prairies, and even as far afield as British Columbia and northwestern Ontario. Banners from across the West were out in full force, with all the major buying group head offices exhibiting as their members walked the aisles.
Dealers sporting Castle jackets were seen throughout the show, while Home Hardware and TIMBER MART stores were well represented, as well. Sexton Group, celebrating its 35th anniversary this year, was on hand to support its dealers, as were representatives from TORBSA and Delroc. Dealers from other groups, including Windsor Plywood, ILDC and some of the co-ops, were also in attendance.
Exhibiting vendors were largely positive about the show. Paul Faulkner, marketing and trade sales manager for Dural, a division of Multibond, called it “the best opportunity for suppliers to connect with their dealers.”
Monte Christensen, owner of Mountain Bark Inc., is a regional supplier of cedar fence rails, mulch and chips. He’s been attending the show for eight years. “It’s not just about sales,” he says. “It’s about reconnecting with your customers. It’s a good way to see what’s going on in the industry.”
Shawn Hoagland represents Kinco Gloves out of Portland, Oregon. He came up to the show for the second year in a row and says the response from Canadian dealers to his products has been very positive. When he exhibited last year for the first time, he says the show was “beyond his expectations.” This year has been no different, he adds. “It’s been a good show. We’ll be here again.”
Liz Kovach, president of the Western Retail Lumber Association, which hosts the show, was pleased with the turnout, especially as the show will relocate next year. “We’re very excited. Since this is our last time in Calgary, we’re trying really hard to make it something special,” she said.
“And next year we’ll be moving to Winnipeg, so we’re very excited about that.”
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| Peavey completes amalgamation of TSC Stores, maintains banners
RED DEER ― Peavey Industries has finalized its acquisition of TSC Stores.
Effective January 1, the Red Deer-based chain of farm and hardware stores has taken the final steps to integrate the TSC business, a process which began in July 2016. That’s when Peavey, whose stores range in size from 10,000 to 35,000 square feet and carry products in categories from hardware to farm and automotive, bought a controlling interest in TSC.
At the time, TSC had 51 mid-sized hardware stores that averaged 16,000 square feet in size. Aside from one store in Manitoba, all of its business was based in Ontario. Since most of Peavey’s stores were in Alberta and Saskatchewan, the takeover was a good fit, both in terms of retail positioning and geographic reach.
Initially, the two companies operated discretely. But over time, the buying teams were brought closer together. Then, just over a year ago, Darryl Jenkins, who headed up TSC, departed. Jenkins, an alumnus of Canadian Tire, ended up back there last summer, when he was installed as a senior VP of the retail division and managing director of Canadian Tire’s latest acquisition, Party City.
The integration of TSC means a simplified process for Peavy's vendors, with all purchase orders, payments, custom clearing and shipping procedures now harmonized. But the company will continue to operate TSC as a separate banner, while Peavey continues with its Peavey Mart and Mainstreet Hardware store formats.
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How the Gagnon companies are structured and their connection to Octo
ST-JÉRÔME, Que. — The departure of Groupe Yves Gagnon’s chain of five stores from BMR Group has attracted considerable attention because the company’s founder, Yves Gagnon, had actually headed up BMR for more than 15 years. During that time, BMR member sales grew from about $200 million to nearly $1 billion. He retired from his role as head of BMR in 2014, after 20 percent of that group was acquired by La Coop fédérée. La Coop went on to purchase BMR in its entirety in February 2015.
Gagnon’s business got started in 1973, when he took over his family’s general store. Today, Groupe Yves Gagnon operates five stores in smaller communities in Quebec. Gagnon’s daughter, Geneviève Gagnon, is now CEO of the company, while her father continues on as president. But over the years, the Gagnon family’s operations have branched out in other directions. It has a truss and wall panel manufacturing division called Évolution Structures in Boisbrand, Que.
Geneviève Gagnon also owns Évolution Distribution, a wholesale distribution business based in St-Jérôme, Que. Besides acting as distributor for the Gagnon retail stores and the truss plant, it also serves Matériaux de construction Letourneau, a building centre company with two locations based in Sherbooke, Que.
The Évolution Distribution business has now joined Octo Purchasing Group to serve those independent retail customers.
The addition of Évolution Distribution to Octo fits well with that group’s existing membership. It consists of a mix of retail groups such as Peavey Industries in Red Deer, Preston Hardware in Ottawa and Canac in the Quebec City area. But the bulk of the group’s volume comes from industrial wholesalers such as M.I. Viau et fils in Mirabel, Que., Northeast Equipment in Dartmouth, N.S., and Montreal-based Guillevin International.
Yves Gagnon has a previous relationship with Octo. Under him, BMR was a member of Octo before joining the Independent Lumber Dealers Co-operative (ILDC), after it was purchased by La Coop.
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End of an era as the last two Zellers stores close their doors
TORONTO — Hudson’s Bay Co. is shuttering the last remaining Zellers stores, in Toronto and Ottawa, by the end of this month. The closure of the Toronto location on January 26 means Etobicoke’s Kipling-Queensway Mall will lose its anchor store. The store had already been largely emptied by customers lining up to take advantage of the deep discounts, with all items reduced by at least 80 percent.
A spokesperson for HBC said the company would look at transferring employees where feasible, while eligible workers will receive severance packages.
Zellers’ roots date back almost a century. The discount department store chain was founded in 1931 and expanded steadily over the following decades. It was purchased by Hudson’s Bay Company in 1978. The chain continued to play an important role in Canada’s retail landscape, only to fall on hard times toward the end of the century.
In 2011, when the giant U.S. retailer Target announced plans to enter Canada’s discount mass merchant space, Zellers’ days were numbered. HBC sold off a number of Zellers locations and sub-leased some to Target. But within a year, Zellers was virtually out of business.
The death knell for the final Zellers stores comes amidst big changes at Zellers’ parent company. Amidst widening losses, a majority shareholder group led by company Chairman Richard Baker is moving to take HBC private. A vote on the deal is expected in February.
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The following leadership changes have been announced at the Sexton Group, effective February 1: Brian Kusisto, former CEO, will assume the role of chairman of the Sexton parent company. Stepping into the CEO role for the Sexton parent company is Steve Buckle, who had been president of the Sexton Group since 2014. At the same time, Eric Palmer will become the vice president and general manager of the Sexton Group, reporting to Buckle. Tom Bell is being promoted to vice president of business development. In this role, he will continue to focus on the needs of the members, as well as recruitment activities. He will report to Palmer.
Innovak has announced two promotions. Karl de Nie has been named VP sales and Alexandre Chrétien is now VP marketing. |
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DID YOU KNOW...
... that the Hardlines Retail Report is your single best marketing tool for understanding the size and growth of the retail home improvement industry in Canada? Who are the top players? What are their strategies? How much has the market grown year over year and which provinces are winning in market share? With 175 PowerPoint slides and dozens of charts and graphs, this report is a must-have for every marketer. Click here for more info! |
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| RETAILER NEWS
EDMONTON — Twenty-three Lowe’s and RONA stores in Alberta have launched their annual Hair Massacure fundraising event in support of the Children’s Wish/Make-a-Wish Foundation of Canada and the Terry Fox Research Institute. Customers have the opportunity to purchase and personalize paper “Kali bears”, named for cancer survivor Kali McDonald, whose family founded Hair Massacure in 2002. On February 21, hundreds of people will descend on the West Edmonton Mall to shave their heads, many after dying their hair “Kali pink.” The Lowe's network hopes to raise $100,000 this year.
HOFFMAN ESTATES, Ill. — Sears Holdings Corp. has agreed to a settlement in its suit against Transform Holdco, the Eddie Lampert controlled company that bought up the majority of Sears’ assets last summer. In the suit, Sears’ former owner contended that Transform still owed it more than $57 million. Transform, in turn, filed a complaint accusing Sears Holdings of delaying vendor payments and failing to deliver promised inventory. Under the settlement agreement, Transform Holdco will pay Sears Holdings $18.3 million, including about $13 million in cash. |
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SUPPLIER NEWS
TORONTO ― Payworks has joined with the Retail Council of Canada (RCC) to provide RCC members with convenient payroll solutions at special rates. The RCC preferred payroll pricing allows RCC members to take advantage of payroll, HR and time management solutions tailored to their needs. These services include direct deposit, year-end filing and support, records of employment, online employee self-service, as well as a designated CPA-trained client service representative. |
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ECONOMIC CONDITIONS
U.S. housing starts surged 16.9 percent in December to a seasonally adjusted annual rate of 1.608 million units, the highest since December 2006. The percentage gain was the greatest since October 2016. In a Reuters poll, economists forecast a SAAR of 1.375 million units. On a year-over-year basis, housing starts swelled by 40.8 percent. (U.S. Commerce Dept.)
Total investment in building construction in November edged up 0.1 percent from October to $15.5 billion. Investment in the non-residential sector rose 0.8 percent to $5.0 billion, while the residential sector decreased 0.2 percent to $10.6 billion. In the residential sector, investment in single-unit dwellings decreased two percent to $5.2 billion, while multi-unit dwellings increased 1.6 percent to $5.4 billion. The non-residential sector rose 0.8 percent to $5.0 billion in November. (StatCan) |
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OVERHEARD...
“There’s not a lot of people coming into our store to buy anything. Salt and snow shovels—that’s about it. Not good. It’s not good.”
—Sean Bartlett, working at the Hickey’s TIMBER MART in Conception Bay South, Nfld. He spoke to Hardlines mid-week, while a curfew was still in place in St. John’s, keeping cars off the streets as the city coped with the impact of receiving three feet of snow in 24 hours. |
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Classified Ads |
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I am pleased to announce the appointment of Karl de Nie as Innovak’s new VP Sales and Alexandre Chrétien as Innovak’s new VP Marketing.
Karl joined Innovak in March 2019 and has brought a more strategic, structured and practical approach to our business development programs, developed relevant sales tools and solutions that will ensure successful realization of our growth plans.
Since he joined Innovak in January 2018, Alex brought a more comprehensive and market aligned marketing vision and strategy in regards to our Fuller Brand, product management and E-Commerce.
Both Karl and Alex bring a wealth of experience to the sales & marketing team that will ensure our future success.
We are very excited about their new roles at the company.
Please join us in congratulating Karl and Alex on their appointments.
André Hudon
President & CEO
Job Description
TORBSA is a Shareholder-owned Canadian Buying Group of Independent Building Material Dealers established in 1966. The Group's focus is to offer the independent business, whether it is Commercial or Specialty Dealer or Lumber Yard, a transparent, low-cost, and relationship driven choice. It is the Group's collective buying power that allows us to develop, negotiate and facilitate opportunities to grow the Shareholders' Business.
Job Opportunity
President
Under the supervision of the Board of Directors, the President will be responsible to continue to grow TORBSA’s Branding across the Canadian marketplace. As the President, your duties will also include the facilitation of selected communications and job responsibilities, as outlined below:
Role
- Oversee Management of the Head Office Staff
- Promote mission and values of the organization
- Solicit, establish, and maintain business relationships with prospective independent building material dealers to generate growth of the group across the Canadian marketplace
- Support the existing Shareholders
- Participate in trade shows and conventions related to the building or construction sectors
- Manage the TORBSA Website
- Develop and maintain Vendor Relationships
- Facilitate ongoing Negotiations on behalf of all Shareholders
- Co-ordinate Shareholder and Corporate Meetings to share best practices and build both Shareholders and Vendor Relationships
- Implement all decisions of the Board and Shareholders, reporting progress and status on a timely basis
- Make recommendations and provide leadership to the Board and Shareholders, to enable TORBSA to achieve its corporate goals
- Act responsibly and professionally when carrying out duties of the President
Skills
- Undergraduate degree preferred - preference given to studies in engineering, sales and marketing
- 10 - 15 years of direct work experience in the building material sector
- Excellent organizational, strategic, planning and implementing skills that will benefit each member as well as the Group as a whole
- Strong presentation, communication and written skills are considered a valuable asset
- Ability to speak French is an asset
- Must be computer literate, with knowledge of Microsoft Access, Word and Excel
- Ability to become proficient in the management and modification of the Group's website
- Excellent negotiation skills are highly desired
- Knowledge of building materials and the building material industry
- Knowledge of buying groups and how they function in our marketplace is essential
- Must possess a willingness to travel relevant to the growth aspirations of TORBSA
- Proven abilities to develop and maintain excellent internal and external relationships with the staff of TORBSA, the Shareholders of the Group and all vendors that make TORBSA the success it is
Compensation and Benefits
- Wages - Competitive wages based on the market and experience
- Benefits – Health, Dental and Retirement Savings
Please email resume to cindy@torbsa.com
Taymor Industries Ltd. is now recruiting for a Sales Representative – Home Improvement Retail & New Construction Builders Markets located in Ottawa with travel to Eastern and Northern Ontario.
Family owned since 1948, Taymor is a leading designer and manufacturer of architectural hardware.
If you would like more information regarding the role please visit our company careers webpage at https://www.taymor.ca/en/career/sales-representative-independent-retail-and-builders-markets
Please send requests for full detailed job descriptions, questions and resumes to careers@taymor.com.
PRO MARKETING MANAGER (#781)
Business Development Manager – Western Canada
Orgill Canada Hardlines, ULC is the nation's largest independently-owned hardlines distribution company that is recognized as an industry leader for its development of innovative retail programs and services that are designed to fulfil a simple mission; Help Our Customers Be Successful.
We exist to serve our customers and our mission is the foundation upon which all of our services, products and activities are built. Orgill Canada employees strive for the highest quality and endeavour to do things right the first time, constantly working towards improving everything they do. Employees want our customers to know that they can depend on us every time they do business with Orgill Canada.
POSITION SUMMARY:
Increase Orgill’s market share in an assigned geographic region by identifying, qualifying, and calling on prospective customers.
DUTIES & RESPONSIBILITIES:
- Increase dealer participation in Orgill buying and marketing programs with direct or indirect account responsibility. Make dealer presentations on all sales and marketing related issues to existing and prospective accounts, either with a Sales Representative, District Manager, or exclusively by the Business Development Manager
- Prospect for new business in the region with or without the Sales Representatives to gain new business opportunities in existing accounts
- Introduce niche-buying programs to enable the retailers to capture greater market share
- Attend trade shows and industry functions as and when directed in an effort to promote Orgill
- Gain knowledge and use of tools and technology developed for the Sales Department to create a stronger bond between Orgill and our customers
QUALIFICATIONS, SKILLS & COMPETENCIES:
- Effectively manage time and prioritize multiple responsibilities
- Interact effectively with other departments, all levels of management and external customers
- Accept, prioritize, and complete multiple tasks with minimal supervision
- Plan, organize, and implement a range of sales promotion ideas and programs
- Strong presentation and communication skills
- Must have experience in our industry and a thorough knowledge of the retail hardware, lumber, and building material industry’s concepts, practices, and procedures
- Must have a valid driver’s license with a good driving record
Please apply by January 31, 2020 and send your current resume and a cover letter to:
HRRH@ORGILL.COM
Please note the position title in the subject line
Orgill Canada Hardlines, ULC is an equal opportunity employer; this position is offered in accordance with this principle
LBMAO PRESIDENT
Job Description
SCOPE
The President of the LBMAO reports to the Board of Directors of the LBMAO. This position is responsible for the day to day operation of the Association including the following:
- Financial management of the Association.
- Recruitment and retention of members.
- Providing editorial content for the LBMAO magazine as the managing editor.
- Overseeing the employees of the association including developing and maintaining company employee policies.
- Managing the company payroll including direct deposit through the 3rd party payroll management system.
- Attend industry functions representing the Association in a professional manner.
- Working with the board of directors to develop a strategic plan for growth of the association as well as searching out and developing member benefit programs.
QUALIFICATIONS
- Post -Secondary degree in Business administration or comparable industry experience.
- Excellent communication skills.
- Excellent computer skills in Microsoft word, Excel, Power-point.
ABOUT THE LUMBER AND BUILDING MATERIALS ASSOCIATION OF ONTARO (LBMAO)
The LBMAO is a not-for-profit trade association with a long history (102 years) of providing services, social functions and advocacy to the independent building supply retailers and their key suppliers in the province of Ontario. The association has evolved to meet the changing needs of its members and heavily weighted towards supplying relevant industry specific training, health and safety programs and communication platforms both hard copy and digital to keep its members informed and up to date on industry trends and changes.
REMUNERATION
- A base salary will be provided plus bonuses for member growth and retention.
- Comprehensive benefits package.
- RRSP matching contributions.
All applications with resume for this position should be submitted to the following address no later than January 30, 2020.
Mr. Ron Schell, Chairman
The Lumber and Building Materials Association of Ontario
120 Traders Blvd. E.
Mississauga, On L4Z 2H7
We thank all those who apply, however only those candidates who meet the qualifications will be contacted for an interview.
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Looking to post a classified ad? Email Michelle for a free quote.
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