January 30, 2017 Volume xxiii, #5

“What we think, or what  we know, or what we believe is, in the end, of little consequence. The only consequence  is what we do.”
—John Ruskin (British  art critic, writer, and philanthropist, 1819-1900)

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Dealers, vendors gather in Calgary for WRLA Buying Show

CALGARY — Dealers  came from across Western Canada to look for deals and to network at the latest  Buying Show of the Western Retail Lumber Association. The show, held in Calgary  from January 18 to 20, featured 250 vendors across 170,000 square feet of space  at the BMO Centre.

Even though many vendors  felt dealer attendance may have been flat compared to last year, the majority  of them that HARDLINES spoke with managed to keep busy engaging with customers,  who included some of the West’s top dealers. North American Lumber, McMunn  & Yates, Alta-Wide Builders Supplies, and other large independents from  every major banner and buying group kept busy on the show floor, amidst an  atmosphere that was fairly positive despite the slow economies in much of the  West.

This show, the first of  the year in the industry, is considered something of a bellwether of the  industry’s mood. While many parts of Canada had a strong year in 2016, dealers  from Alberta and Saskatchewan in particular are still feeling the effects of  the slow economies in those regions. That reality certainly had a sobering  effect on the mood of the show, which was otherwise fairly positive.

Nevertheless, according  to many exhibitors, dealers were there to buy. “The attitude of and response  from our customers and potential customers is tremendous,” said Steve Goulding,  director of Canadian retail sales at Hillman Group. He noted that he’d seen a  lot of key customers by mid-morning on day one of the show.

Michèle Ashton,  business development manager for Topring, which produces compressed-air  products, was exhibiting for the second time. “Last year was okay, but this  year is unreal busy,” she said enthusiastically. “It’s a great way of meeting  the banners from across the regions.”

Nerval Corp., a  stocking distributor of bath accessories and interior hardware based in  Edmonton, was also at the show for the second time. The hospitality industry is its  biggest market, but Sales Manager Sunny Nerval said he was trying to build the  wider retail business at this show, even though he found more attendance from  delegates interested in building materials.

Off the show floor,  hospitality suites by companies such as Taiga and Alexandria Moulding drew  crowds, while the opening night reception, sponsored by Castle, drew an audience of  both dealers and vendors. The closing night party, sponsored by Jeld-Wen,  featured music by Canadian country rocker Dallas Smith and the awarding of the  WRLA’s Industry Achievement Award to Doug Lemieux, president of L.B.H. Building  Centre, a TIMBER MART dealer in St. Albert, Alta.

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Six months in, Peavey explores synergies of TSC takeover

RED  DEER, Alta. — Peavey Mart, a well-known farm and hardware retailer in Western  Canada, took a bold step last year when it bought controlling interest in  London, Ont.-based TSC Stores. Now, six months into the merger, both sides are  learning how to work together.

“We’re  starting to really look at how we can work together and really maximize both  businesses,” says Doug Anderson, president of Peavey Industries, which owns 37  Peavey Mart stores and three MainStreet Hardware outlets. TSC Stores is a chain  of 51 farm and hardware outlets stretched out across Ontario, and into  Manitoba. 

Called  “a match made in farm hardware heaven” when first reported by this publication,  the similarities between the two companies present obvious advantages. Anderson  says his team is identifying those similarities and looking for ways to  generate synergies. However, TSC will continue to operate as a separate entity,  which includes maintaining its own buying office.

Peavey  will increase its interest in TSC over the next two years until it owns TSC  outright. However, Anderson stresses that, even after that time, both companies  will be operated as separate businesses.

As  systems get integrated—Anderson says the two companies are working on aligning  their IT systems over the next five years—the buying function will get more  harmonized. “We’re meeting with select vendors at this point and creating plans  around key relationships to work better with those key vendors to maximize  those relationships.”

Anderson is optimistic  about what the future holds for the takeover, noting that the executive teams  from both sides are “really working well together. I think it’s exciting to  look at the growth of the respective businesses and find ways to leverage their  strengths.”

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National dealer association prepares for next steps with Spring Summit

NATIONAL REPORT — The  confederacy of regional LBM associations, the Canadian Retail Building Supply  Council, is moving ahead with efforts to work more closely together on issues  common to dealers across the country. Positioning itself as a national voice for  the industry, the CRBSC will invite input from other industry leaders at its  Leadership Summit, being held in Halifax on March 22, during day one of the  ABSDA Buying Expo.

The executives of CRBSC  have sent out an invitation to senior industry leaders to provide input in a series of high-level discussions  that will focus primarily on the following industry needs: advocacy, education,  and labour force development.

According to a letter  signed by current CRBSC chair Richard Darveau, who is also president and CEO of  the Quebec association, AQMAT, the discussions will seek ways to guide the  regional associations “to align their service delivery models to better serve  our dealers, suppliers, and manufacturers across Canada.”

The Spring Summit is an  invitation-only event. For more information or to participate, contact Denis Melanson, president of the ABSDA; 506-858-0700.

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Quebec: different, but the same


SPECIAL  REPORT — Quebec, which accounts for nearly a quarter of the country’s  population, has also proven a tough market for outsiders to break into. When  asked about what makes the Quebec shopper unique, Alain Charbonneau, owner of  Centre de Rénovation Fabreville in Laval, said that he finds the Quebec  consumer eagerly embraces innovation and new trends and aesthetics.

Perhaps  contributing to the difficulty retailers face entering the market, there’s long  been a perception that the Quebecois are die-hard “support local” shoppers.  Charbonneau admits that’s true, but adds that consumers are more fixated on  price than ever before.

Marie-Josée  Clément agrees. As the general manager of eight La Coop Univert stores located  between Quebec City and Trois-Rivières, she’s found that consumers are  prioritizing price above all else. “They compare a lot,” says Clément. “Even if  you’re in a rural area, you have to be very competitive. These days, with the  internet, price is really becoming an important factor.”

But  both agree the fixation on dollars is not something unique to shoppers in  Quebec—all across the country, Canadians are working with tighter budgets. And  with those tighter budgets comes an increased competition for every dollar.

The  big news in Quebec home improvement last year was the purchase of RONA by  Lowe’s. As the deal was finalized towards the end of 2016, dealers in Quebec  were preparing for the company’s entry into the market.

Clément  says while BMR emphasizes the company’s Quebecois roots, everything goes right  back to the fight for each dollar retailers are seeing in the province. “We  work on that in our publicity and our everyday interactions, but I don’t think  it’s enough to sway people,” says Clément. “Lowe’s is a competitor that is  aggressive—like a lot of our other competitors.”

(This article is excerpted from the latest issue of our sister  publication, Hardlines Home Improvement Quarterly magazine,  which mailed earlier this month to more than 11,000 dealers across Canada. For  your own copy, click here! ―Editor)

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At Lowe’s head  office in Mooresville, N.C., Jocelyn  Wong has been appointed chief marketing officer. Wong most recently served  as senior VP and general merchandising manager for the seasonal business. She  will report to Michael P. McDermott,  chief customer officer, and succeeds Marci  P. Grebstein. Also at Lowe’s, Marshall  Croom, a 20-year veteran of the company and chief risk officer since 2009,  has been promoted to the position of CFO, effective March 3. Reporting directly  to Chairman, CEO, and President Robert  Niblock, Croom will replace Robert  Hull Jr., who is retiring after 17 years at Lowe’s.

CORRECTION: In last  week’s issue, we announced the appointment of Patrick Goodfellow as CEO and president of Goodfellow. We  incorrectly named the predecessor to outgoing CEO Denis Fraser. That individual was Richard Goodfellow. We apologize for the error. 

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CLASSIFIED ADS

GENERAL MANAGER - RETAIL BUILDING SUPPLIES

Are you a store manager in a big box retailer? Maybe it is time to move away  from the corporate life in a big city? A challenging career at the top of a family  environment, may offer the quality of life for your next career move. Stan Dawe  Limited, an 80-year-old, five location retail building supply business in  western Newfoundland is seeking a General Manager.

The General Manager is the most senior position in our company reporting  only to the shareholders. This position is reported to by five store managers,  one purchasing manager and the accountant/office manager. Regular briefings  with the two key shareholders, provide a history of past performance and  establish objectives for the future. The General Manager is responsible to  develop and implement a plan to meet these strategic goals.

Daily duties include discussions and problem solving with store managers,  cash management, purchasing of commodity inventory, working with the purchasing  manager on regular and promotional pricing, coordinating distribution to the  branch stores with pickup of incoming freight, assisting with pricing of larger  customer quotations, maintaining relationships with key customers, reviewing  accounts receivable, approving payables invoices, coordinating with store  managers for staff levels and wages. This position also establishes standards  for exceptional customer service and employee safety.

General responsibilities include seeking new opportunities for growth in  sales and/or profits with new products and/or markets, investigating cost  reduction strategies and improving the company’s internet prospects.

The General Manager must have a post-secondary business education, a minimum  10 years’ management experience in retail operations in a related field,  excellent time management skills, confident decision making ability and  effective communication skills for dealing with staff and customer conflict  resolution.

To send your resume or request more information, contact:
Tony Dawe
Stan Dawe Limited
191 Riverside Drive
Corner Brook, NL  A2H 4A1
tony@standaweltd.com

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