January 9, 2017 Volume xxiii, #2

“Always read something that will make you look good if you die in the middle of it.”
— P. J. O'Rourke (American journalist and political satirist, 1947- )

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Our top stories of 2016: the news that most attracted our readers’ attention

SPECIAL REPORT — The year was filled with milestones. Mergers, buyouts, and personal loss abounded as some high-profile companies and people made the news in 2016. Here are the stories that attracted our readers’ attention—and online visits to the Hardlines website. Some of them will surprise you!

Lowe’s completes acquisition of RONA preferred shares: All things Lowe’s related were guaranteed to drive traffic to our website, including this confirmation of final steps in Lowe’s takeover of RONA. Another big hit among readers were the updates on the reorganization of the executive team.

CEO replaced at Canadian Tire: The sudden departure of Canadian Tire chief executive Michael Medline in mid-July took everyone by surprise.

Groupe BMR joins ILDC: Early in July, this was big news, as the second-largest group in Quebec joined one of the largest buying groups in the country.

Industry honours Outstanding Retailers: honouring our own made for good reading, as winners were announced at the 21st annual Hardlines Conference in Niagara Falls at the end of October.

Media shakeups: both Lowe’s in the U.S. and Home Hardware in Canada announced they were shopping for new agencies of record. In both cases it means big business for some lucky “mad men” and in Home’s case, it meant the end of a 25-year run with one ad agency.

Gypsum tariff dispute: We began covering this story in the late summer when the mainstream press wasn’t even aware of the issue. It was to have a huge impact on dealers’ margins in Western Canada.

Lowe’s aligns offices in GTA, Boucherville: Trying to figure out the roles at the newly restructured Lowe’s Canada after head office moved to Boucherville kept us on our toes. The Toronto office remained the seat of operations for the Lowe’s bannered business.

Dealer stories: While the corporate news is high profile, the stories of local dealers expanding or selling always draws lots of traffic. Two examples were the change of ownership of McNaughton’s Home Hardware in Newbury, Ont., after 70 years; and the opening of Fisher River Castle store on a Cree reserve in Manitoba.

BMR updates banners: Groupe BMR unveiled a new banner strategy for its member dealers. Starting in 2017, BMR stores will gradually be segmented into four banners.

Kent buys up Central Home Improvements: Central’s seven Nova Scotia stores were added to Kent’s existing network of 43 stores throughout Atlantic Canada at the beginning of this year. A year ago, Central’s Steve Smith went on record denying any notion that his company was being sold, but others considered it the worst-kept secret in Atlantic Canada.

Castle buying expo has a winning formula: We had an invitation to see first-hand what all the excitement was about concerning Castle’s regional buying shows. These “speed-dating” events put vendors face to face with every single dealer in attendance—a winning formula for both sides.

Orgill consolidates buying functions: The Memphis-based hardlines distributor announced the consolidation of all purchasing functions to its Memphis home office. The move closed down the buying office at Orgill’s Canadian operation in London, Ont.

Readers’ interest in personnel changes reflects the importance of the personal side of the business: Formerly the number two at Home Depot Canada, Gino DiGioacchino had moved to bigger and better things at Walmart. When he left Walmart in early June, the news drew lots of eyeballs. His move came only days after RONA EVP Luc Rodier told HARDLINES he was leaving, and a month after Robert Dutton, former president and CEO of RONA inc., joined the board of La Coop fédérée.

Lowe’s buys RONA: That was our single biggest headline of 2016. The news went live on February 3 at 7:18 p.m., and had attracted thousands of readers within hours.

Home Hardware co-founder Walter Hachborn dead at 95: This story touched hearts across Canada—and well beyond—as we got comments and emails from round the world about the loss of this industry giant, who passed away just before Christmas.

(HARDLINES readers get breaking news as it happens. But are you subscribed to our free Daily News Service? Yes, it’s free! Click here right now to sign up!)                  

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CITT upholds gypsum tariff, stands by dumping ruling

OTTAWA — Canada’s international trade regulator has upheld complaints made by domestic drywall manufacturers about the dumping of U.S. gypsum in the Western provinces.

The Canadian International Trade Tribunal found the dumping injurious to the domestic industry and recommended imposing final duties, putting an end to the provisional duties which have been collected to date.

In an olive branch to the community of Fort McMurray, where fears have been voiced that the finding could lead to higher construction costs, the tribunal suggested that the government could grant a special remission to alleviate the effect of the tariffs on rebuilding efforts in the wildfire-affected area.

The finding by the CITT is reportedly a recommendation only. The Tribunal will issue the reasons for its findings and recommendations on January 19, 2017. A final ruling is expected to be made by Finance Minister Bill Morneau.

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Stanley Black & Decker to buy Craftsman brand from Sears

NEW BRITAIN, Conn. & HOFFMAN ESTATES, Ill. ― Stanley Black & Decker has announced it will purchase the Craftsman brand from Sears Holdings. The company will acquire the rights to develop, manufacture, and sell Craftsman-branded products outside of Sears stores in the U.S. and in other countries.

Sears Holdings will continue to sell Craftsman products, sourced from existing suppliers, through its current retail channels via a perpetual license from Stanley Black & Decker. For the first 15 years, the license will be royalty free, then 3% thereafter.

Under the terms of the acquisition, Stanley Black & Decker will pay Sears Holdings $525 million at closing and $250 million at the end of year three. Annual payments will then be made on new Stanley Black & Decker Craftsman sales through year 15 (2.5% through 2020, 3% through January 2023, and 3.5% thereafter). The net present value of all these cash payments is about $900 million. 

Currently, about 10% of Craftsman-branded products are sold outside of Sears Holdings―much of that through Ace Hardware in the U.S. Those sales were valued at about $200 million in 2016. Stanley Black & Decker intends to significantly increase sales of Craftsman through retail, industrial, and online channels.

The news comes on the heels of further closures of Sears stores across the U.S. and another cash infusion by Sears CEO Eddie Lampert (see Supplier News in this issue. ―Editor). Sears has reduced its store count by 60% over the past six years.

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Canadian retail looking up in 2017: Desjardins


TORONTO — Canadian retail is looking at a strong year, according to a new forecast from Desjardins Securities. Growth in the GDP and employment will be a boon to retailers, and incursions from American competitors are less likely.

“The spectacular failure of Target in Canada and the collapse of oil prices are, in our view, the two primary reasons for this change in perception about Canadian retailing,” says the report by Desjardins’ Keith Howlett. “A few new retailers continue to enter Canada, such as Nordstrom, Saks, and Uniqlo, but generally in a tightly controlled and measured manner.”

At the same time, Sears’ continuing weakness will benefit an array of retailers, including Home Depot, Lowe’s, Canadian Tire, Sleep Country, Ikea, Leon’s, Brault Martineau, and Home Hardware for appliances. Likewise, the report says, its clothing business will likely be eaten into by Winners, Reitmans, Mark’s, Hudson’s Bay, Shoppers Drug Mart, Sephora, Walmart, and Real Canadian Superstore.

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King Marketing has added to its ranks. In British Columbia, Jennifer King has joined as brand ambassador calling on Home Depot, RONA, and Lowe’s stores in the Lower Mainland and the northern part of Vancouver Island. In the Edmonton area, Nelson Villena and Donna Heidel will call on Home Depot, RONA, and Lowe’s stores in Northern Alberta. In Thunder Bay, Gerald Sas has joined in a part time capacity. In southwestern Ontario, Annette Cormier is now brand ambassador covering Home Depot, Lowe’s, and RONA stores. In the Ottawa region, Paula Wilkins joins King, bringing more than 20 years of experience in the retail and hospitality industries. In Quebec, Gilles Landry joins the team in the Montreal area.  

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CLASSIFIED ADS

Sales Representative – DuPont Tyvek Specialist

We are currently looking for a dynamic and self-starting Tyvek® Specialist to represent our Alberta market.

You would be responsible for working with customers to identify, qualify and secure sales opportunities for our DuPontTM Tyvek® Weatherization Systems; develop, nurture and maintain close working relationships with key decision-makers; maintain a thorough and up to date knowledge of company products and services; develop new sales leads; as well as update and maintain the CRM system.

Position Responsibilities:

• Develop targeted sales plan for the territory. Manage and grow client relationships within the territory.
• Promote and sell Tyvek Weatherization Products and services in established sales territory. Focus on all segments to grow the business.
• Maintain timely and accurate data and records in sales records in CRM system.
• Provide training and education.   
• Identify and network with key market influencers.
• Provide feedback to corporate on market and industry trends, competitive data and regional building code changes.
• Continuing education required and provided by the DuPont Building Knowledge team.
• Requires the ability to travel as needed to cover the territory

Experience and Skills:

• Proven track record of high goal achievement and revenue building required.
• Three to five of experience in sales.
• Must be a self-starter, highly motivated and be able to work independently with minimal supervision.
• Strong interpersonal, time management and communication skills.
• Knowledge of Building Science and Building Codes an asset
• Understanding of local building market an asset
• Solid computers skills, particularly Excel, Word, Outlook and CRM software.

How to apply:
Send resume and cover letter to Darryll Penner
Email resume to: darryll.s.penner@dupont.com

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