July 13, 2015 Volume xxi, #28

“How you think when you lose determines how long it will be until you win.” —G.K. Chesterton (British journalist, novelist and poet, 1874-1936)

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SUMMER PUBLISHING SCHEDULE

Please note there will be no weekly edition of HARDLINES on August 3, 17, or 31. The World Headquarters will remain open, however, during this time. The regular weekly schedule will resume September 7.

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Home Hardware sees big potential for growth in Quebec

ST. JACOBS, Ont. — Quebec is a “very, very important market,” says Home Hardware CEO Terry Davis. After all, it represents the second-largest market in the country (close to one-quarter, according to our Hardlines Retail Report, [now available! —your Shameless Editor]).

Home Hardware, however, is seriously under-represented in that province. While 100 members is indeed a number that represents big growth for the co-op—triple what it had 10 years ago—it still represents barely 10% of Home’s dealer base. “We are just not as significant there as in other regions,” he admits, adding that he recognizes the market supremacy and “legacy position” of its greatest rival there, RONA.

However, Home has been making active gains in la belle province. This spring, the dealer in Roberval, Que., opened a new store which, at 66,000 square feet, is the largest in the province and one of the largest in the country. “Our job is to identify other opportunities for our dealers there to grow, as well,” he notes.

“It’s a province with a ton of potential.”

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CanWel completes acquisition of California distributor

VANCOUVER — CanWel Building Materials Group Ltd. has completed its previously announced acquisition of a U.S. distributor and treating company. The company in question, which was not named before the deal closed, is California Cascade Industries. It was acquired for US$56.6 million.

"I am pleased to acquire such a strong fit with CanWel in California Cascade Industries. CanWel enters the U.S. markets on solid footing, while our successful private placement enables CanWel to stay on course with its well calculated growth strategy in strong markets such as California and the western United States," says Amar Doman, chairman and CEO of CanWel.

California Cascade Industries has been selling treated wood, redwood, cedar, fascia, and special offerings of branded products since 1974, servicing California, Arizona, and Nevada from its facilities in Sacramento and Fontana, Calif.

“The United States has always been an attractive extension of our growth strategy and this is an opportune time to enter the marketplace,” Doman adds.

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Economy holds “steady as she goes” says expert


TORONTO — Peter Norman, chief economist at Altus Group, speaking at the Hardlines Retail Conditions Seminar last month, said the Canadian economy received a “generally good forecast” this year from the International Monetary Fund. For retailers in the home improvement and hardware industry, this is positive, given the link between the economy and the housing market.

While declining oil prices have been negative on the world economy, Norman says it hasn’t been as hard on Canada as it has for some developing countries. He predicts that slumping oil’s impact won’t trigger a national housing adjustment. He adds that while it may lead to some softening in Alberta, it could have positive benefits for other provinces like Ontario.

When it comes to housing starts this year, he admits it has started out slow. However, housing production has more or less been stable and, “it’s certainly not on the downturn.”

Norman notes that the numbers of apartment versus single-family dwelling starts used to be about evenly split, but even with population growth factored in, the homes that are being built now are—for the most part—trending towards smaller spaces with smaller square footage.

“Life in apartments could possibly be our future if the policy and supply dictate it,” says Norman. The bright side, he adds, for both the single-family homes and apartments is that there is a strong demand for it: “Supply, when it comes, gets gobbled up right away.”

And while the housing starts this year are on the low side, he adds, there’s strong growth on the renovation side of things. But the silver lining, Norman says, is that the low interest rates and increasing number of homes older than 50 years create “baked-in” growth factors for home improvement retailers. “There are a lot of moving parts,” Norman says. “But that’s a huge industry and it’s going to keep growing each year.”

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NRHA study measures importance of local independents

INDIANAPOLIS — The North American Retail Hardware Association (NRHA) has produced a study which reveals the economic benefits of shopping at local independent home improvement retailers versus national big box chains. NRHA conducted the “Home Sweet Home Study” in conjunction with Independent We Stand, a movement aimed at educating consumers about the economic advantages of supporting local independent businesses that is sponsored by Stihl.

Key highlights include:

• Purchasing home improvement products from locally owned retailers generates twice as much local economic activity as purchases made at big-box chain stores.
• Purchasing products available only at an independent dealer, (such Stihl power tools), results in a 71% increase in local economic activity compared to purchasing comparable outdoor power equipment products at the major chains.
• Together, the two largest U.S. chains sold more than $114 billion in goods in 2013 (excluding installation services). If just 10% of that business had gone instead to independently owned retailers, hometowns around the country would enjoy the benefits of an additional $13 billion in economic activity.

“We worked hard to create dynamic research that accurately depicts the economic influence locally owned establishments have on an individual community and how that initial impact has the potential to generate national economic activity,” says Dan Tratensek, NRHA vice president. “It’s crucial that retailers and consumers alike are aware of the impression we leave when we choose to shop local.”

“There’s no doubt that supporting local businesses is beneficial to a community. Previous research has shown that independently owned businesses provide substantial, quantifiable economic benefits,” says Bill Brunelle, co-founder of Independent We Stand.

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FROM THE ARCHIVES: This week in 1995


Taiga reports a healthy year-end, with sales of $426.9 million. (Compare that to Taiga’s sales 20 years later, which have reached $1.2 billion, according to our latest Who’s Who Directory!) Plus: Kent plans another big box store and Home Hardware enjoys some good growth in Atlantic Canada. Click here to read these blasts from the past!

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CLASSIFIED ADS

POSITION AVAILABLE

SALES ANALYST - RETAIL

We have an immediate opening for a Sales Analyst in our Retail group.

Reporting to the Director of Retail Sales, you will work together with the Sales Team to analyze specific account(s) and their sales growth, account planning and results within the team. You will work with the Sales Team to drive engagement with customers in order to grow relationships, and achieve sales results, profit and market share targets.

Responsibilities will include, but not be limited to the following:

• Ensure monthly and quarterly sales targets are tracked with assigned accounts/products.
• Work with the Sales Team to assist on development and execution of account plans, budgets, forecasts, promotional planning and pricing. Also coordinate internally with all stakeholders to achieve objectives with Supply Chain, Marketing and Finance.
• Provide timely responses to customer questions and daily feedback as required.
• Assist the Sales Team to collaborate with stakeholders and accounts on joint business planning, brand and promotional planning and messaging, in-store merchandising and retail sales execution.
• Analyze high priority account performance monthly
• Work closely with marketing to maximize sales results and new initiatives with each specified account.
• Manage and analyze weekly product forecast by model by account and ensure inventory forecast matches promotional calendar by account.
• Must be able to analyze and provide feedback on weekly, monthly, quarterly forecast numbers by category by model.
• Work closely with the Director of Sales to strategically grow our Quebec retail business.

Requirements:

• Knowledge of Plumbing products and competitors.
• Strong communication skills in both English and French
• High Level Proficiency (Intermediate to Advanced) in Excel, Word, PowerPoint.
• 2-5 years industry experience in the Home Improvement sector.
• Must be capable of planning, organizing and prioritizing multiple projects and assignments.
• Must be highly self-motivated and capable of team/independent work.
• Looking for a career growth plan in sales.
• Valid Driver’s License

Additional Skill Requirements:

• Ability to prioritize work load efficiently and effectively
• Previous Sales experience in Home Improvement products
• Accuracy and attention to detail
• Excellent attendance record
• Effective Team Player

Location: Head Office in St. Thomas Ontario, Sales & Marketing Office, Mississauga Ontario
Interested candidates should submit your resume with cover letter to recruiting@mascocanada.com
Final date for submissions is July 30th, 2015
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VICE-PRESIDENT, MARKETING AND SALES

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 nearly $5.7 billion. 

Located in rural St. Jacobs, Ontario, Home Hardware remains 100% Canadian owned and operated. Home Hardware has received designations as one of Canada’s Best Corporate Cultures and Best Managed Companies and is committed to providing local communities with superior service and expert advice.

Responsible to the Chief Executive Officer for developing and executing integrated marketing strategies through to retail execution, driving brand awareness and sales; and, for developing programs and services to provide retail support, for our Dealers.

As part of the Senior Management team, participates in the development and implementation of the corporate strategic plan and key decisions pertaining to strategic initiatives.

Works closely with the Merchandise Department to ensure the right products are marketed to generate the most sales.

Responsible for Dealer growth and expansion.

QUALIFICATIONS:
Post-secondary degree in marketing with Senior Management experience.
Preference to a bilingual candidate.
Strategic thinker with the ability to set vision and to develop and execute plans.
Ability to interpret financial statements, prepare, monitor and present budgets.
General knowledge of hardware, lumber and building material product categories would be an asset, plus insights into consumer and contractor customer segments.
Must reside within proximity of St. Jacobs.

Interested applicants, please submit your resume to Beth White, Recruitment, Human Resources.
hr@homehardware.ca
Phone: 519-664-4720
34 Henry St W, St. Jacobs, ON, N0B 2N0
Deadline: Thursday, July 9, 2015

*While we appreciate all applications received, only those to be interviewed will be contacted.

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