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CONNECTING THE HOME IMPROVEMENT INDUSTRY
January 28, 2019 | Volume xxv, #4
IN THIS ISSUE:

WRLA Buying Show draws dealers in Calgary despite glitches
Princess Auto unveils expansion plans for Quebec with two stores
TIMBER MART buying show will offer its members new ideas, new services
USG CEO Jennifer Scanlon will lead executive exodus upon merger with Knauf

PLUS: FCL promotes Co-op Community Spaces, RONA’s newest dealer in Alberta, IKEA Canada launches “Sell-Back Program” for used furniture, Lowe’s signs as NFL sponsor, Stanley Black & Decker reports loss, Durning to lead Quality Craft’s U.S. surfaces division, Jeld-Wen names Jason Davies as VP, retail sales stay soft and more!
WRLA Buying Show draws dealers in Calgary despite glitches

CALGARY ― The Western Retail Lumber Association’s recent WRLA Buying Show drew healthy attendance from dealers throughout the West at Calgary’s BMO Centre—amidst a fresh look and despite some hiccups that threatened to mar the success of the event.

Under WRLA President Liz Kovach, this year’s show, held January 16 to 18, made some changes, including streamlining the entertainment. Rather than provide a “big ticket” musical act during a gala dinner, the show opted for an evening networking event. The result saved money for the association and freed up time for attendees to meet on their own afterward.

According to Kovach, the truck that was to deliver the association’s show materials arrived two days late. Nevertheless, she reports, “We managed to still ensure that 84% of registered attendees picked up their show badges on Wednesday. Our new registration system, coupled with expanded registration kiosks, allowed for quick and efficient registration on site.”

The show also featured a program of knowledge sessions, which were held before and during the show itself. “Education always rates high on member surveys,” Kovach adds. “We decided to incorporate educational offerings to the show to provide other valuable opportunities to attendees.”

The sessions started on Wednesday afternoon and were offered throughout the day on Thursday and Friday. The format included incorporating a classroom right on the show floor.

The addition of a rest area, named the Zen Lounge and sponsored by ACCEO, provided WRLA members the opportunity to take a break and get refreshed. Device charging stations, fresh water and massages courtesy of massage therapy students from Mount Royal University were provided.

The New Product Area, sponsored by TIMBER MART, was expanded and relocated to the middle of the show floor this year.

One of the highlights of the WRLA Buying Show was the presentation of the association’s 2018 Industry Achievement Award. It went to Brian Kusisto, CEO of the Sexton Group and president of its parent company, Kenroc Building Materials. A new series of awards was introduced as well. The inaugural Sales Rep of the Year Awards were presented to Bill Fast of Orgill from Manitoba, Darren Kiel All Weather Windows in Saskatchewan, Brian Torrens from AFA Alberta and Jason Cryderman from Trimlite in British Columbia.

In assessing the overall success of the event, Kovach says feedback from exhibitors was largely positive, citing the quality of the attendees that visited their booths.

Princess Auto unveils expansion plans for Quebec with two stores

MONTREAL — Princess Auto has announced plans to enter the Quebec market and has confirmed two stores there. The first will be in Saint-Jérôme, near Grand Heron Boulevard. The second will be in Laval. That location will be near Robert-Bourassa Boulevard. Both stores are scheduled to open in fall 2019.

Under the leadership of Marc-André Fournier, vice-president of operations in Quebec, Princess Auto is building a team to support growth in the province. Store directors for the two locations were hired last spring, to provide them with necessary training. Both individuals bring with them strong management and retail backgrounds: Danielle Rozon has previously worked at Bureau en gros (Staples), Target and Patrick Morin and will head the Laval store. Yves Bergeron, whose background includes Lunetterie NewLook and Oakley, will head up the Saint-Jérôme store.

Recruitment is currently under way for assistant store leader and department manager positions for both locations. Mass hiring for an array of positions is scheduled to start in May.

Winnipeg-based Princess Auto sells tools and equipment, ranging from hydraulics to welding, to trade professionals, home mechanics and other DIYers. While its roots are in Western Canada, almost half of its 46 stores across Canada are located in Ontario.

TIMBER MART buying show will offer its members new ideas, new services

VAUGHAN, Ont. — TIMBER MART is preparing for its annual National Buying Show next month with some new features to serve its member dealers. The show, which will be held February 15 and 16 at the Toronto Congress Centre, is expected to host more than 200 booths and draw some 1,100 dealer and vendor attendees.

TIMBER MART will continue to alternate the location of its show each year, returning to the Palais de congrès in Montreal in 2020.

New this year will be the opportunity for dealers to access member-exclusive TIMBER MART pool buys. The show will feature an educational component, as well, with business-building sessions to outline the latest TIMBER MART programs.

TIMBER MART’s lead hardware supplier, Orgill Canada, will feature an extensive display on the show floor, including the hardware wholesaler’s new plumbing and electrical assortments.

The buying group’s dedicated charitable organization, Timberkids, will also get exposure. A new Timberkids scholarship program will be unveiled at the show. Timberkids is aimed at improving the health and well-being of Canadian children.

To highlight TIMBER MART’s involvement with the Canadian Football League, CFL Commissioner Randy Ambrosie will make an appearance, while the Grey Cup will be displayed on the show floor. In July 2017, TIMBER MART forged a three-year sponsorship with the Canadian Football League as the CFL’s official home improvement partner.

“Our upcoming show will not only be a significant event in its own right by offering a number of member-exclusive buys, but it will also serve as a launching pad for new and exciting developments from our group,” says Bernie Owens, president of TIMBER MART.

“From networking and learning opportunities to new products and ideas on innovative ways for our members to run their business, our show this year will offer more value to our membership than ever before.”

USG CEO Jennifer Scanlon will lead executive exodus upon merger with Knauf

CHICAGO — USG Corp. President and CEO Jennifer Scanlon has announced she will leave USG once the merger with Knauf is finalized. Until then, Scanlon will continue to focus on USG’s business plans and strategies to ensure a smooth transition of the company under the Knauf umbrella. Until the deal closes, “it’s business as usual at USG,” she said. A veteran of the company for 16 years, she became USG’s chief executive in November 2016.

Chris Griffin, CEO of Knauf, will head up the newly merged operation. Griffin is a Canadian who previously spent almost eight years in a variety of executive roles at USG. The merger is expected to close early in 2019.

A number of other executive changes will occur as well, once the merger with Knauf is completed. Matthew Hilzinger, EVP and CFO; Brian Cook, EVP and chief administrative officer; Dominic Dannessa, EVP and chief customer and innovation officer; Gregory Salah, SVP, USG Corp. and president, Gypsum; and Michelle Warner, SVP, general counsel and corporate secretary, will all exit upon closing of the deal.

The company expects the merger will close in early 2019 subject to the receipt of certain regulatory approvals and other customary closing conditions. Until that time, both companies will continue to operate as separate businesses under their current leadership structures.

People on the Move

Quality Craft has named flooring industry veteran Ken Durning as head of its U.S. surfaces division. Durning’s industry experience includes leading international sales and sales support teams with Tapis Coronet, Galaxy Carpet and Cooper Distributors. Most recently, he spent more than 20 years in senior management with Mohawk Industries, Inc.

Jeld-Wen Windows and Doors has announced the appointment of Jason Davies to the position of VP of operations. In this newly created role, Davies will have direct responsibility for all Canadian manufacturing. He was recently the director of manufacturing for Saint-Gobain-CertainTeed Corp., where he spent the better part of a decade.

NOTED

A refrigerator featured at the recent Consumer Electronics Show in Las Vegas has image recognition technology, allowing the unit to suggest recipes based on fridge contents. Samsung’s Family Hub refrigerator includes a 21.5-inch touchscreen and cameras built in to the doors. For the bathroom, the U shower system by Moen can connect to Alexa or Google Assistant so that users can start the shower and set its temperature remotely before stepping in.

DID YOU KNOW...?

...that you can now sign up for our 2019 Hardlines Meet the Buyers Breakfast with Igor Halencak, EVP of Lowe’s Canada, and his senior merchandising VPs in seasonal, appliances, building materials and home décor? This vendor-only event will be held March 26 in Boucherville, near Lowe’s Canada’s head office and distribution centre. Click here to sign up today.

RETAILER NEWS

SASKATOON — A series of improvement and beautification projects across Western Canada will be made possible thanks to Federated Co-operatives Ltd., which administers the Co-op Community Spaces Program. Now in its fifth year, the program dedicates $2 million for capital projects for non-profits, registered charities and community service co-operatives, from February 1 to March 1. The initiative represents more than 170 independent local co-ops across Western Canada that form the Co-operative Retailing System. The program was launched in 2015 and has provided $6.5 million to 88 projects, including parks, greenhouses and sports fields.

BOUCHERVILLE, Que. — RONA’s newest independent affiliate dealer is Built Rite Building Products of La Crete, Alta. The contractor-oriented store, with a 4,000-square-foot surface, was founded in 2012 by Andrew Zacharias and Andrew Neustaeter. “While we already have a strong contractor expertise, we wanted to expand our product and service selection, so we could reach out to homeowners and DIYers and provide them with more choices,” said Zacharias. The newly renovated RONA Built Rite Building Products store will feature a 13,000-square-foot sales area, broader selections in existing product categories like power tools and building materials, as well as new categories such as seasonal and appliances.

BURLINGTON, Ont. — IKEA Canada has launched a national “Sell-Back Program” that lets customers to sell their IKEA products back to the retailer, in exchange for a store credit, as long as the items are fully assembled and in good shape. IKEA will resell or donate those products. So far, a pilot has seen more than 7,600 sell-back submissions online in less than two months.

MOORESVILLE, N.C. — Lowe’s has signed an exclusive, multi-year deal to be the official retail home improvement sponsor of the U.S. National Football League. The deal allows Lowe’s to market locally and nationally throughout the year at key events including the Super Bowl and the NFL Draft. The partnership comes as Lowe’s is stepping up efforts to appeal to heavy DIYers and contractors, a market that Home Depot has been more effective at capturing. Lowe’s is also rolling out a new slogan next month, “Do It Right for Less. Start at Lowe’s”, which reflects that initiative.

SUPPLIER NEWS

NEW BRITAIN, Conn. — Stanley Black & Decker reported a $66.7 million loss for Q4 of 2018, with earnings in line with Wall Street expectations. The tool maker had posted a profit for the same period in 2017. Adjusted for merger and acquisition costs, earnings for the quarter amounted to $2.11 per share. Total revenues of $3.63 billion topped estimates. For the fiscal year, Stanley reported earnings of $645.3 million, or $4.26 per share, and revenues of $13.98 billion.

ECONOMIC INDICATORS

Retail sales decreased 0.9% to $50.4 billion in November, affected mainly by lower sales at gasoline stations and motor vehicle and parts dealers. Excluding these two sub-sectors, retail sales managed to inch up by 0.2%. Sales seasonally adjusted within the building material and garden equipment and supplies dealer sub-sector was down 0.3% from October and down 2.3% year over year. (StatCan)

OVERHEARD

“As an official sponsor of the NFL, we will build upon the NFL’s growing popularity and fans’ live viewing habits at home to deepen relationships with customers.” Jocelyn Wong, chief marketing officer at Lowe’s, on the company’s sponsorship of the National Football League in the U.S.

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