July 11, 2016 Volume xxii, #28

“If you don’t like the peaches, walk on by the tree.”
—Waylon Jennings (American “outlaw” country singer and songwriter, 1937-2002)

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SUMMER PUBLISHING SCHEDULE: Please note there will be no weekly edition of HARDLINES on August 8, 21, or 29. The World Headquarters will remain open, however, during this time. The regular weekly schedule will resume September 5.

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Superior Plus sells off Construction Products business

TORONTO — Energy holdings company Superior Plus Corp. is selling its Construction Products Distribution business (CPD) in a cash deal worth US$325 million ($420 million). The buyer is Foundation Building Materials, LLC, a California-based construction materials distributor with 85 branches across the U.S. The deal is expected to close in the second half of 2016, pending necessary approvals.

In the U.S., the business includes CPI, a 130-outlet commercial drywall chain. In Canada, the business includes the Allroc buying group and Winroc, a chain of commercial drywall outlets owned by Allroc. Superior Plus and Allroc did not reply to multiple requests for more information about how the sale will impact the Canadian operations. However, business appears to be continuing as usual at Allroc: it recently signed a new member, Del-Pro Building Supplies, in Whitby, Ont.

The sale of CPD follows a strategic review process which commenced in early 2014. This review was subsequently terminated after a failed attempt to sell the business. According to Superior Plus, management did not believe the prospective purchaser was offering enough money to reflect CPD’s value. Following the termination of the initial strategic review process, Superior focused on increasing the standalone value of CPD.

Those efforts included moving head office from Calgary to Irving, Tex., exiting some markets in Canada, the implementation of a new management team, the initiation of various growth initiatives and the replacement of two legacy ERP systems with a single, integrated system.

Superior will use the proceeds from the sale “to reduce debt, increase its financial flexibility, and enable Superior to redeploy capital to its Energy Distribution and Specialty Chemicals businesses.”

This sale leaves Superior with two other businesses: Energy Distribution, which includes the distribution of propane, and Specialty Chemicals. Superior expects that the divestiture of CPD will simplify its business model by exiting its most cyclical business and enabling it to focus more on specialty chemicals.

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Lowe’s has aggressive plans for openings through year-end 2016

TORONTO — Lowe’s Canada opened its sixth store in the Greater Toronto Area at the end of June. Two more opened just last week, in Abbotsford, B.C., and Signal Hill in Southwest Calgary. These stores were all part of Lowe’s acquisition of a dozen former Target locations across the country, and in the case of the Danforth store, they can come with their own set of challenges in terms of layout and design.

Many of the Target stores that were opened during that retailer’s ill-fated foray into Canada were smaller than usual for the giant mass merchant—under 100,000 square feet. (These locations had, in turn, been purchased from Hudson’s Bay Company and were originally Zellers stores.) Fitting into this smaller footprint meant doing things a little differently for Lowe’s, as well.

The newest store, on Danforth Avenue in Toronto’s East End, has lower ceilings than a standard big box space, and the tighter space required a slightly different layout than might be found in a greenfields building. It feels wider than usual, and not as deep as a regular Lowe’s store. That works to the company’s advantage here, as the store has a main entrance from the parking lot on one side, and another entrance from the tiny shopping mall that the store anchors.

Lowe’s will open up in another former Target location in Thunder Bay, Ont., on August 25. Three more openings are planned for British Columbia this year. One, in Nanaimo, is expected to open later this summer. Two more are planned for Prince George and Victoria. Finally, a store will open before year’s end in North York, Ont., at the Centre Point Mall.

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Consolidation makes industry’s top retailers more powerful than ever

WORLD HEADQUARTERS, Toronto — Just four retailers—Home Depot Canada, Lowe’s Canada, Home Hardware Stores Ltd., and Canadian Tire Retail—account for well over half of all retail hardware and home improvement sales in the country.

And thanks to consolidation of Lowe’s and RONA, the Top Four got bigger than ever in 2015, according to the latest findings in a new report by HARDLINES. The Hardlines Retail Report reveals that Home Depot remains in the number-one spot with sales exceeding $7 billion. However, Big Orange faces tough competition: through its acquisition of RONA inc., effective May 20, Lowe’s Canada moves firmly into the number-two spot.

While these giant U.S.-based companies now dominate the scene, the number-three position is held by a group of independents. Through a combination of aggressive dealer recruitment, in combination with growth by existing dealers, Home Hardware maintains third place in the Top Four.

Canadian Tire Retail is fourth in our Top Four elite group. (*NOTE: HARDLINES estimates only the sales by Canadian Tire Retail stores of merchandise related to hardware, home improvement, housewares, and décor to calculate that company’s size in the industry.)

The 2016-2017 Hardlines Retail Report is now available from HARDLINES. With almost 200 PowerPoint slides, dozens of charts and graphs, and analysis available only from HARDLINES, this is a marketer’s dream tool. (Click here for more info and to order this amazing research document now!)

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Summertime means store openings for Home Hardware

ST. JACOBS, Ont. — Home Hardware has been actively working with its dealer-members to expand and open new stores, with a number coming on stream as summer gets under way.

In Jonquière, Que., where the company is enjoying some brisk growth (with half a dozen store openings in that province already this year), an existing dealer, Centre de Rénovation FDS Home Hardware, has more than doubled in size at a new location. The 35,000-square-foot facility features a wider product selection, modern store layout, and a 16,000-square-foot drive-through lumber and building materials warehouse. The facility now covers 51,000 square feet. Dealer-owners Luc and David Grenon have been in the home improvement industry for more than 30 years.

Home opened a new location in Altona Mall, in Southern Manitoba, at the end of June. The Janzen family, of nearby Winkler, purchased the Home Hardware in Morden last year and has expanded from there. “We didn’t do a lot of promoting or advertising because it’s a new store,” says owner David Janzen. “We have new equipment; everything is new so we had to get used to it.” Janzen’s sons, Conroy and Regan, who grew up in Bolivia where the family served as missionaries, will manage the location.

In Ontario, Grand Valley Home Hardware, near Orangeville, has re-opened under new ownership, in a new location that’s almost double the size of the previous store. The 4,100-square-foot store is operated by dealer-owners Brian, Terri, Scott, and Corrine Arthurs, who also run Arthurs Fuel out of the same location.

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Mike Springer has retired from the home improvement industry. After more than 40 years, starting as a young teenager working at Kipling Heights Dominion Hardware in Toronto’s West End, Springer has retired to Comeauville, a little town in Nova Scotia. His career has included working at Horizon Plastics International Inc. in Cobourg, Ont., tub and shower-maker Maax, and a long stint at Novi Canadian Ltd. in Toronto. Before joining the manufacturing side, Springer worked for Cochrane-Dunlop out of Thunder Bay, Ont. (where this Editor first had the pleasure of meeting him). (mikespringer@hotmail.ca)

Home Hardware’s gardening expert, Mark Cullen, will be invested as a Member of the Order of Canada by Governor General David Johnston in a ceremony at Rideau Hall, on a date still to be determined. The rank of Member (which follows the grades of Companion and Officer) is awarded to Canadians who make outstanding contributions at a local level, and entitles the appointee to use the letters C.M. after their name. Cullen’s citation hailed him for “promoting and developing horticulture education in Canada and for his ability to explain how Canadians can protect the environment.”

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CLASSIFIED ADS


Position: Sourcing Manager

Wholesale/distribution company in the GTA,  building on 25 years of industry experience selling to home centre chains is searching for candidates with home and outdoor living experience (preferred). Must excel in entrepreneurial environments, building and scaling a business. Ability to wear many hats, contributing individually and as part of a team

• Identify and source partners and product opportunities
• Work with partners (Asia), bringing products to market
• Comp. shopping, pricing models, launch plans, roadmaps
• Trade show support, presentations, catalog development

3-5 years sourcing and negotiation experience. International (Asia) and domestic travel required. Exceptional Excel, PowerPoint, MSWord skills. Send resumes to zaftej@gmail.com

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Product Manager, Building Products—Mitten Building Products

As one of North America's largest building products manufacturers, Ply Gem makes it possible for every homeowner to enjoy a beautiful, custom-looking home exterior that's also energy efficient and low maintenance. The Mitten Building Products division is growing their marketing department and has retained Wolf Gugler Executive Search to identify a star building products marketer in search of their next career opportunity.
Reporting to the VP Marketing, you’ll enjoy category leadership for assigned product lines managing a significant product portfolio including:

• Managing the Stage Gage process, situation analysis including industry trends, field and customer input, gap analysis to identify and capitalize on opportunities
• Sku rationalization/evaluation with margin contribution in mind at all times
• Define marketing communications strategy to support product, channel and brand strategies
• Liaise with engineering and manufacturing on long term product planning
• Be an information conduit with internal and external customers including company branches, retailers, sales and customer service
• Work closely with Purchasing to negotiate programs and distribution agreements

Qualifications:

• Five years’ plus product marketing expertise in the building products field
• Demonstrated analytic, problem solving and planning skills
• A proven presenter in order to educate and influence others both internally and externally
• Stage Gage knowledge or similar product development road mapping experience

This position is based in Brantford, ON. Very competitive salary, bonus and benefits package offered in addition to advancement within the company.
We’ve had the privilege of working with the company on previous occasions and have known the VP, Marketing for many years. He’s a dynamic building products subject matter expert and both a good leader and delegator with no ego. What more can you ask for in your next career move?
You can expect complete discretion in exploring this great opportunity by contacting Wolf Gugler via email or phone at (888)848-3006 for a confidential exchange of information. You may also apply online by clicking this link. We respond to all inquiries. This position is available immediately!