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January 6, 2014 Volume
xx, #1
“Life is a lot like jazz music … it’s best when you improvise.”
—George Gershwin (American composer, 1898-1937)
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Industry history now on the Hardlines website
WORLD HEADQUARTERS, TORONTO — A new look for the Hardlines website now includes a history of the Canadian home improvement marketplace in one location. Back issues of the HARDLINES e-newsletter, representing a weekly chronicle of home improvement retailing for almost two decades, are now available for public use.
HARDLINES has been a source of breaking news for vendors and retailers, news services, and competing publications for almost 20 years. But until now, past issues had been reserved for paid subscribers of the weekly HARDLINES e-newsletter. Effective immediately, past issues, starting one year ago from the present date, are available on the Hardlines website. Not only have we unlocked the archives starting one year ago for public viewing, but we’ve also uploaded every issue of HARDLINES since 2000.
The newly released Hardlines Archives and the enhanced Daily News are fully searchable and categorized chronologically for easy viewing. It’s all part of a new design for the Hardlines website, making it easier to navigate and providing archives of both our Daily News and weekly e-newsletter. Other features include easy access to free samples of all our publications, every issue of our print magazine HHIQ, a full calendar of industry events, Classified Ads, and Hardlines TV. The new site features exciting new advertising opportunities for sponsoring companies.
The release of the Hardlines Archives, our library of magazines online, and our range of special marketing reports are all ways that Hardlines is connecting the Canadian hardware/home improvement industry through information and analysis.
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EXCLUSIVE INTERVIEW: Lowe’s Canada head Sylvain Prud’homme
TORONTO — Sylvain Prud’homme doesn’t much care for the limelight. He doesn’t care for speaking with the press, appearing on TV, or getting up in front of a group. He cares about his business and about his customers. And that’s where he chooses to direct his focus.
Being a relative newcomer to the industry (he joined Lowe’s Canada from Loblaw, where he was a VP in Quebec, developing the grocery chain’s business there), he does say he reads HARDLINES every week.
He is also looking at his own team, watching how to better manage relations with Lowe’s vendors. As a result, he made some dramatic changes recently, to simplify the company’s management structure. To that end, he created three new positions. Nick Padovano became head of operations and supply chain, effectively filling the gap left by former Lowe’s Canada president Alan Huggins, who is strong in operations. Tony Tutolo was appointed head of finance and administration, replacing Stephen Taylor, “the last American on the Canadian team.” Taylor has returned to the U.S. to work with Lowe’s international team there.
Igor Halencak came over from Sears Canada to head up merchandising and marketing, replacing both an interim marketing position and the duties of former merchandising VP Bob Sherwood, who had been with the company since setting up shop in Canada in 2008. (The rest of Lowe’s Canadian merchandising team was unchanged.)
“I wanted the team to be leaner and more nimble,” says Prud’homme. “I wanted it to be able to make decisions quickly.” For example, he points out that Halencak’s role will include both marketing and merchandising.
Prud’homme is watching his competitors, and wants to avoid replicating their mistakes. “Everyone should learn these lessons,” he says. “Keep your team tight. Keep your team nimble.”
He talks briefly about expansion, as well. Just two stores have been confirmed to open this year. Both are in Southwestern Ontario and scheduled to open in early spring: one in Burlington and the other in Cambridge. Prud’homme says he is taking his time with these stores, to understand how best to fine-tune them for this market. “We’re trying things a little differently in these stores and we’ll see how customers will react to them.” He hinted that the changes would be reflected in the way the stores are merchandised. “We are looking at the right model for today’s customer.”
However, they will fit into the large big-box mould of all of Lowe’s sites in Canada so far. The Burlington store will have 117,000 square feet of retail plus a 32,000-square-foot garden centre, while Cambridge will be about 94,000 square feet with a 26,000-square-foot garden centre.
“Stay tuned,” he adds, smiling.
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Home Depot ramps up to offer same-day delivery
ATLANTA — Home Depot has announced plans to open fulfillment centres in California, Atlanta, and Ohio over the next two years in an effort to build its same-day delivery capability. The move will cost the retailer at least $300 million in supply chain, technology, and online improvements.
Home Depot has all but halted construction of new brick and mortar stores in the U.S. and Canada, turning its focus to building its online business. A key factor will be establishing a delivery and supply chain system that will enable same-day delivery. “It’s a big investment,” Home Depot’s CFO Carol Tomé says.
Home Depot hopes to allow shoppers to place orders by 5 p.m. and choose a one-hour delivery window. Customers will be able to receive real-time delivery updates via their mobile phone and choose from 100,000 items, says Mark Holifield, Home Depot’s senior vice president of supply chain.
Home Depot also plans to begin filling online orders within its stores rather than at a warehouse or distribution centre, to enable delivery of 90% of orders within two days. Currently, it takes between two and seven days for customers to get most orders.
“In 2008, upon reaching what we believed to be market saturation, we slowed new store openings,” Tomé says. “Now we believe our sales growth will be driven by a continued recovery in the [U.S.] housing market, as well as interconnected retail.”
In 2012, online sales represented 2.4% of the company’s $74.8 billion in net sales. Home Depot’s web sales are expected to increase by 50% for 2013 to $2.7 billion. The company also said it is looking to expand in-home assembly and installation programs for products including appliances, patio furniture, and barbecues.
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ANALYSIS: Home improvement survey worldwide
SPECIAL REPORT — The DIY/home improvement world market reached approximately €410 billion ($600.8 billion) in 2012, says a new report from Fediyma, the association of hardware and home improvement (DIY) manufacturers in Europe.
North America and Europe combined represent 93% of this world market, although their joint population accounts for only 23% of the world population. The DIY markets of these two continents represent approximately €381 billion.
According to The Fediyma World DIY Report 2013, North America, with €246 billion ($360 billion), represents more than 60% of the world market, while Europe, worth €135.2 billion ($198.1 billion), comprises 33.1% of the world market. Asia and the Pacific regions, with €18.3 billion ($26.8 billion), represent 4.5% of the world market. Japan, Australia and New Zealand are the most active markets in this part of the world.
French markets are targeting not only Europe, West, South and East, including Russia and Ukraine, but also exporting worldwide with branches throughout the world. They are present in 24 countries with 656 stores. German retailers are increasing their efforts in all European countries, particularly Scandinavia and Eastern Europe. They are present in 29 countries with 845 stores.
UK retailers led by B&Q are expanding worldwide in seven countries with 392 stores. Kingfisher has the control of Castorama and Brico Depot and a substantial stake in Hornbach (German), but is reducing its involvement in China. Screwfix, owned by Kingfisher, will expand to Germany this summer.
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Classifieds
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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