January 8, 2018 Volume
xxiv, #1
“Cherish all your happy moments; they make a fine cushion for old age.”
—Christopher Morley (American journalist, writer, and poet, 1890-1957)
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Our top stories of 2017: What Hardlines readers found most newsworthy
SPECIAL REPORT — The past year was a roller coaster ride of industry developments, and once again you read it all in our Hardlines Daily News. Unsurprisingly, major changes like executive transitions, mergers, and acquisitions garnered the most attention. The 10 most-viewed daily news updates of 2017 reflect the prominence of major retail chains. When the big players pass the torch or change hands, our readers pay attention.
Six of the most-viewed stories last year were about Lowe’s and its banners. That’s no surprise, as 2017 marked the first full calendar year after Lowe’s took over Quebec retail giant RONA and set up its Canadian base at RONA’s head office in Boucherville, on Montreal’s South Shore. The saga of the Lowe’s-RONA merger has undeniably been one of the major ongoing news stories in Canadian business. Hardlines readers have enjoyed up-to-date coverage of the developments through our Montreal bureau, from which our Daily News is filed.
Five of the six Lowe’s-related stories appearing in our top 10 concerned its Canadian subsidiary, while the acquisition of Maintenance Supply Hardware in the U.S. by Lowe’s Cos. also made the list. In particular, readers flocked to personnel stories, such as Canadian CEO Sylvain Prud’homme’s promotion to head of Lowe’s International and the departure of Jim Caldwell from his position as EVP of Lowe’s big box segment.
Two stories on Ace Canada placed in our 10 most widely viewed dailies. In January, when Ace announced it would replace its Spring Buying Show with an online promotion, readers checked out our story with gusto. The following month, we reported on changes at Lowe’s to support the Ace banner, including consolidating the Winnipeg distribution facility into Lowe’s Boucherville and Calgary DCs.
Lowe’s efforts in January to squeeze a rebate from its vendors, along with the launch of RONA’s court battle last summer against Canada Revenue’s demands for customer data, rounded out the company’s appearances in the list.
Stories about Home Hardware took two of the best-read spots. In April, we reported on the banner’s new marketing campaign aimed at younger shoppers, including the tag line “Here’s How”. In August, personnel changes were another reader favourite, with new management positions for Jim Solomon, Jason Boshart, and others. The Fastway Group’s July proposed deal to purchase North American Lumber also made our list. Readers would find out just before Christmas that the deal finally did not go through.
But wait, you say, that’s only nine stories! As it turns out, even Hardlines isn’t immune to “fake news”—but only on April Fools’ Day. Our story about the formation of a fictitious new buying group by “BS Building Supplies” in Deux Pieds à Gauche, Man., during a drunken night at the local pub, placed near the top of the list. As we enter a new year, it’s reassuring to know that our readership shares the brand of humour it’s come to expect from Hardlines.
(If you’re not already subscribing to our free Hardlines Daily News, click here right now to sign up!)
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Crofford ends two-plus decades at helm of hardware and housewares association
SCARBOROUGH, Ont. — Vaughn Crofford has retired from the hardware and housewares industry. His last day was officially December 31.
Crofford has been a fixture in the industry for more than three decades, but he is best known as president of the Canadian Hardware and Housewares Manufacturers Association (CHHMA), a position he served in for 23 years.
“My time at CHHMA has been a wonderful experience and the board and committee members, as well as those at our member companies, have been great to work with over the years,” Crofford reflected.
Prior to joining the CHHMA, Crofford was at Federated Co-operatives in Saskatoon. There he had moved through various roles before ending up in charge of marketing for the hardware and building materials division.
Crofford had been working with the CHHMA’s board of directors over the past two years to prepare for his transition. During this time, the association, which works on behalf of hardware and housewares vendors, agents, and affiliated service providers, has been working closely with the Canadian Office Products Association (COPA), bringing its operations in-house with the CHHMA. The two organizations began working closely on other initiatives, co-presenting events and offering joint services.
Sam Moncada, president of COPA, has been working with the CHHMA staff and members over the past 18 months and has taken over the dual role of president of the CHHMA and COPA, effective January 1. The staff of both associations will remain in their current roles throughout the transition.
The CHHMA is celebrating its 50th Anniversary this year. At a recent strategic planning session, the board and management set objectives for revitalizing the association and the value it brings to members.
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Federated Co-operatives posts 2017 revenue of $9.8 billion
SASKATOON — With increased revenues for year end, Federated Co-operatives Limited will return $408 million to retail co-operatives across Western Canada for 2017. For the fiscal year ending October 31, FCL recorded revenues of $9.8 billion from its energy, food, home and building, and agro businesses, a 17% increase over $8.4 billion a year earlier.
“While the past year brought many challenges, FCL is a diverse organization and we continue to see positive results by operating efficiently and effectively, while strengthening our commitment to local retail co-operatives and communities throughout Western Canada,” said FCL CEO Scott Banda.
FCL’s hardware and building materials business is worth more than half a billion dollars at retail (source: Hardlines Who’s Who Directory of hardware and home improvement Retailers in Canada). While it’s a small part of the co-op’s overall business, that number represents a significant amount of retail for this industry and FCL is a major home improvement force in Western Canada. The division stayed healthy last year thanks to an ongoing remerchandising of its Co-op stores that included drive-through lumber departments, updated signage, and enhanced assortments. Other successes included a training initiative called Get Selling and a “Commitment to Excellence” recognition award program, which was launched in 2016.
“Across all of our business lines, we’re taking steps to support local retail co-operatives in new and meaningful ways, ensuring they have the resources they need to compete in today’s marketplace and deliver important products and services to Western Canadians,” Banda said.
From net earnings of $575 million, FCL will return $408 million in patronage allocations—which includes share redemptions in cash—to its member-owners, consisting of more than 190 independent retail co-operatives in Western Canada.
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Home Depot ramps up online initiative with vertical integration moves
ATLANTA — Home Depot will invest in its supply chain and customer experience in pursuit of a new annual sales target of nearly $120 billion. At the same time, the retailer announced plans to buy back up to $15 billion worth of its shares. Though Home Depot has largely held its own against competition from Amazon, the investment is designed to ensure that the retailer stays ahead of the pack.
The company has made a series of moves to enhance its online presence, in a multi-pronged, integrated channel strategy that ties bricks and mortar to mobile and online shopping.
Now it has acquired The Company Store, an online retailer of textiles and home décor products, from Hanover Direct. The deal closed on December 19 and terms were not disclosed. The Company Store also has five retail locations, which were not part of the deal.
Craig Menear, chairman, CEO, and president of Home Depot, underscored the importance of the online capabilities of the latest company to join the giant retailer. “The acquisition of The Company Store provides product development and sourcing capabilities to help us expand our online décor business into broader categories across the entire home.”
It also reflects Home Depot’s ongoing commitment to build online sales overall. In the fall, it joined Google Express, adding the ability for Home Depot customers to shop through voice with the Assistant on Google Home. On the services side, Home Depot bought Compact Power Equipment, a provider of equipment rental and maintenance services, for $265 million in cash in June of last year.
Home Depot’s biggest rival, Lowe’s Cos., has been very aggressive in its own right when it comes to online selling. In fact, it posted 33% sales growth through its online channels in its last quarter, and has just plucked an Amazon exec to fill a new role related to online sales. (See “People on the Move,” this issue. —Editor)
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At Lowe’s Cos., Vikram Singh has been appointed senior VP, chief digital officer. He was previously with Amazon. In this newly created role, he reports to Chief Customer Officer Michael P. McDermott and will be responsible for furthering Lowe’s digital strategy to improve customer experience across its store, online, mobile, call centre, in-home, and on-site channels.
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CLASSIFIED ADS
IN-STORE MERCHANDISER (#865)
About Home Hardware Stores Limited
Home Hardware Stores Limited is Canada’s largest Dealer-owned cooperative with close to 1,100 Stores and annual retail sales of over $6 billion. Located near Kitchener/Waterloo, Ontario, Home Hardware remains 100% Canadian owned and operated. Home hardware has received designations as one of Canada’s Best Cultures and Best Managed Companies and is committed to providing local communities with superior service and quality advice. Responsible to the Store Design Merchandising & Systems Supervisor for assisting Dealers improve store appearance and profitability, through effective merchandising and display.
Assist Home Dealers with Merchandising Product and Installation of Displays and Shelving, focusing on current Merchandising Technique and Programs.
Help with the flow of information between Dealers and Home Office with respect to product mix, display and assortment.
Make onsite recommendations and modifications to the merchandising plan as required.
QUALIFICATIONS:
Extensive travel required - away from home for several weeks at a time.
Valid Driver’s license required.
Secondary School Diploma or equivalent with post-secondary courses in business an asset.
Effective communication, both verbal and written, with Home Dealers & Home Staff.
Retail experience (hardware or building supplies) is a preferred asset.
Must live near an international airport or be within commuting distance to St. Jacobs.
Fluency in both English and French would be an asset.
Interested applicants, please submit your resume to Beth White, Recruitment, Human Resources at hr@homehardware.ca. Full posting available at www.homehardware.ca. Phone: 519-664-4975 34 Henry St W, St. Jacobs, ON, N0B 2N0 Deadline: Monday, January 22, 2018
*While we appreciate all applications received, only those to be interviewed will be contacted.
We will accommodate the needs of qualified applicants under the Human Rights Code in all parts of the hiring process
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