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CONNECTING THE HOME IMPROVEMENT INDUSTRY
July 1, 2019 | Volume xxv, #26
IN THIS ISSUE:
  • Hardlines Conference will focus on experience—with both speakers and location
  • Orgill’s newest distribution centre will serve dealers in Northeastern U.S.
  • Transition complete as Lowe’s Canada relocates out of Mississauga location
  • Smart retailers look for ways to bolster their online presence

PLUS: Federated Co-operatives recognized, Home Hardware names new merchandise manager, Giant Tiger breaks ground on new HQ, bid to take Hudson’s Bay private, Restoration Hardware at hotel, residential construction increases and more!

Hardlines Conference will focus on experience—with both speakers and location

WORLD HQ, Toronto — The 24th annual Hardlines Conference has been organized around the theme, “It’s All About the Experience” to guide the presentations—and the destination of the conference itself, a world-class meeting facility just a short drive from Toronto.

The conference will be held November 13 to 14 at the Kingbridge Centre near Toronto.

As Canada’s only truly national event bringing the entire hardware and home improvement industry together, the Hardlines Conference offers an incredible opportunity for delegates to meet industry colleagues and customers in a professional yet casual setting. This year’s lineup of presenters includes senior executives from Lowe’s Canada, BMR Group, Home Hardware, Canadian Tire, Princess Auto and Staples Canada.

The venue for the conference will offer a memorable experience, as well. The Kingbridge Centre, in King City, Ont., is just a 30-minute drive from Toronto’s Pearson International Airport. Along with a four-star dining room and a spacious bar and lounge, the Kingbridge Centre offers a 24-hour fitness room, 200-metre indoor track, indoor sports court, whirlpools and saunas, games room, on-site business services and even a library.

Delegates are being encouraged to book rooms onsite at the Kingbridge Centre during their time at the conference. This way, they won’t miss out on important networking events, including the RONA Pub Night that kicks off the conference on the evening of November 12 and the Outstanding Retailer Awards Gala on November 13. Both evenings’ activities are sure to keep delegates on site, ensuring that everyone gets maximum impact from the event.

The 24th annual Hardlines Conference will be held November 13 to 14, 2019, at the Kingbridge Centre in King City, Ont., just 30 minutes from Toronto’s Pearson International Airport. (To see the full list of speakers and to register, please click here!)

Orgill’s newest distribution centre will serve dealers in Northeastern U.S.

MEMPHIS, Tenn. — Orgill Inc. has identified the location of its next distribution centre. A 780,000-square-foot facility in Rome, N.Y., will join a network of seven other Orgill DCs. The hardware wholesaler plans to have the new facility up and running by 2022.

“We are excited to announce this expansion to our distribution network and look forward to the enhanced efficiencies this will create for our customers as we move forward,” said CEO and Chairman Ron Beal.

Changes in the U.S. home improvement market, as hardware wholesaling continues to consolidate there, plus healthy organic growth by Orgill, drove the 170-year-old wholesaler to look for ways to beef up its existing distribution network. That infrastructure includes DCs in Inwood, West Virginia; Post Falls; Idaho, and Orgill’s London, Ont., facility, which all support Orgill’s Canadian retail customers.

In an interview with Hardlines last spring, Orgill President Boyden Moore indicated that the new DC, which was still in the planning stages at that time, would take pressure off these existing sites so they can continue to service the Canadian market effectively.

“As we continue to see our customer base expand, we are committed to making the investments that will deliver better, more efficient service to them both now and well into the future,” said Moore. “This announced distribution expansion is a perfect example of that commitment in action.”

Transition complete as Lowe’s Canada relocates out of Mississauga location

MISSISSAUGA, Ont. — Seven months since it was first announced, Lowe’s Canada has now closed its Ontario regional support centre. Last Friday, June 28, was the last day of operations at the office. Mandatory attendance by all remaining staff gave individuals the chance not only to turn in laptops and security badges, but to make final farewells to fellow workers.

Lowe’s Canada determined last year that it would consolidate all its head office teams at the Boucherville, Que., headquarters and main distribution centre. “Having our operations under one roof will allow us to improve collaboration between our banners to better serve our customers,” said Sylvain Prud’homme, president and CEO of Lowe's Canada, at the time of the announcement in November 2018.

After initial shock among the approximately 200 staff in Mississauga, the long timeline for exiting, plus generous packages and offers of support finding new employment helped mitigate the impact of the closing.

“The decision to close stores is never one that we make lightly,” Prud’homme said at the time, adding that, “Everything will be done to ensure a smooth transition until the stores are closed, and Lowe’s Canada will support impacted employees, including by transferring eligible employees to other locations within our network whenever possible.”

True to their word, Lowe’s Canada corporate did indeed offer staff at the Mississauga facility a job in Boucherville. Within the merchandising team, four people did move: Carol Crystal, VP of merchandising, seasonal and appliances; Mathieu Villeneuve, merchandise manager for hardware, going back to Boucherville as director for outdoor power equipment; Brook Powell, merchant for patio; and David Gaudet, merchandising category director in building and maintenance.

Some parts of the Mississauga team will remain in the Toronto area. The bulk of the IT group that manages the Lowe’s.ca site, under Tanbir Grover, VP, e-commerce and omnichannel, will relocate to a smaller store support centre on Martin Grove Road, near Toronto’s Pearson International Airport.

“Following our announcement of last November regarding the completion of the consolidation of our operations at our Boucherville head office, our Mississauga regional centre was officially closed last Friday, June 28,” Andrea Danielle Wong, spokesperson for Lowe’s Canada, told Hardlines.

“Impacted employees were supported throughout the transition, and we wish to extend our sincerest thank you for all they have done for our customers and wish them all the best. Starting today, our team—including merchandising―is working from Boucherville, where they can collaborate more closely to better serve our customers across Lowe’s Canada’s multiple banners.”

Smart retailers look for ways to bolster their online presence

SPECIAL REPORT — In response to growing consumer expectations, several retailers last year invested in boosting their technological capabilities. Home Depot announced it was looking to support its intensive growth into high tech retailing by hiring 1,000 IT professionals across North America. In Canada, that meant 100-plus new technology professionals at its headquarters in Toronto’s east end, called its Store Support Centre.

“With the changing Canadian retail environment, we know technology is playing an increasingly important role,” Paul Berto, director, corporate communications, external affairs and sustainability for Home Depot Canada, said at the time. “Customers want to shop whenever, wherever and however they want.”

Canadian Tire, for its part, announced that it was going digital with its rewards program, Triangle, at its AGM last spring. The company also launched a pilot for home delivery and integrated its online ordering with in-store pickup in four major cities across the country. While the Triangle program provides Canadian Tire with a wealth of data—the company can see from the SKU level exactly what customers are purchasing—it’s still figuring out how best to make use of that information. Other retailers beefed up their online presence through 2018. Castle unveiled its revamped website late last year. The new, more intuitive, mobile-friendly site has an efficient store-locator function that can map a user’s route right to the nearest store. It also offers a selection of some 30,000 products, including access to the catalogue of Castle’s primary hardware supplier, Orgill.

At its annual buying show this spring, TIMBER MART announced it was launching a new marketing program to help its dealers sell more effectively on the internet. Bernie Owens, TIMBER MART’s president, said support for building social media, including templates for creating Twitter and other accounts, were among the services introduced at the show.

And in the West, United Farmers of Alberta Co-operative (UFA) upgraded its back-end systems with a new ERP (enterprise resource planning) system. Replacing an existing POS system, it will effectively tie together purchasing, inventory and order processing.

These efforts come right in time. Online retail sales in Canada are projected to surpass $55 billion by 2023. And according to Forrester Research Inc., 10% of Canadian retail spending will take place online, up from 6% only four years ago.

(This is an excerpt from a larger article that appears in the next issue of our sister publication, Hardlines Home Improvement Quarterly. HHIQ is mailed to 11,000 dealers and managers across Canada four times a year. Free to retailers and managers, you can get your own subscription by clicking here!)

People on the Move

At Home Hardware Stores Ltd., Leeanne Wilson has been appointed merchandise manager of hand tools and sporting goods. She reports to Dave Martin, director of merchandise hardlines. Wilson brings nearly 20 years of experience working at Home Hardware’s head office. Her previous roles include merchandise associate, power tools and outdoor power equipment and merchandise associate, hand and power tools.

ECONOMIC INDICATORS

Total investment in building construction increased 2.6% in April to $14.8 billion. Investment in the residential sector led the growth, rising 3.6% to $10.1 billion, while the non-residential sector edged up 0.3% to $4.7 billion. Expenditures on residential building construction increased on the strength of investment in multi-unit dwellings, up 7.1% to $5.1 billion, while investment in single-family homes edged up 0.3% to $5 billion. (StatCan)

Retail sales rose for the third consecutive month, edging up 0.1% to $51.5 billion in April. Excluding sales at motor vehicle and parts dealers and gasoline stations, sales were down 0.1%. Sales were up in seven of 11 sub-sectors, representing 74% of retail trade. Following an increase in March, sales at building material and garden equipment and supplies dealers fell by 2.6%. (StatCan)

The U.S. home remodeling market grew by more than 50% since the end of the Great Recession, and home improvement spending reached $425 billion in 2017. Roughly 80% of the U.S.’s 137 million homes are now at least 20 years old. Another 40% are at least 50 years old. (Housing 2019 Report, Joint Center for Housing Studies at Harvard University)

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RETAILER NEWS

SASKATOON — Federated Co-operatives Limited was recognized as Large Co-operative of the Year by Co-operatives and Mutuals Canada (CMC) at its annual awards ceremony in Quebec City on June 19. The award recognizes Canadian organizations that have made a significant contribution to co-operatives and mutuals in Canada and around the world. FCL was recognized for its commitment to environmental sustainability, community investment, employee engagement, co-operative leadership and financial responsibility.

OTTAWA — Discount retailer Giant Tiger Stores Limited has broken ground on a new head office in Ottawa that will also be the site of a new flagship store. Located on Walkley Road, the new facilities will support Giant Tiger’s growth strategy, which includes opening 10 to 15 stores per year across Canada. Construction is expected to be in full swing by this fall. The new store will open in fall 2020 and the offices by mid-winter of 2021.

BRAMPTON, Ont. — Executive Chairman Richard Baker’s bid to take Hudson’s Bay Co. private will turn on whether an independent assessment finds the company more valuable as a retailer or a property owner, governance experts have told Reuters. Much of the company’s value is tied up in its real estate holdings: selling some of those assets could raise more cash than Baker’s offer but would relegate stores to being tenants.

CORTE MADERA, Calif. — RH, formerly Restoration Hardware, is one of several brands crossing over into the hospitality industry to showcase its wares, the Washington Post reports. It will join other décor companies like Ikea, West Elm, Muji and Versace in this trend when it opens RH Guesthouse in New York in the fall.

NOTED

During Co-ops and Mutuals Canada’s annual congress last month, Scott Banda, CEO of Federated Co-operatives Ltd., and a representative of Desjardins Group shared the results of a study on the economic impact of the co-operative sector in Canada. The study found the co-operative sector contributes $61.2 billion, or 3.4%, to Canada’s gross domestic product every year. Sales, memberships and employment at co-operatives continue to increase, with more than 182,000 people employed at co-operatives across the country.

OVERHEARD

“As an organization, if we can make a difference in members’ lives, we can build sustainable communities together.” ―Scott Banda, CEO of Federated Co-operatives Ltd., on his company being honoured as Large Co-operative of the Year by Co-operatives and Mutuals Canada. FCL is the 58th largest company in Canada.

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