July 17, 2017 Volume xxiii, #29

"I’ve got all the money I’ll ever need—if I die by four o’clock."
—Henny Youngman (American comedian and master of the one-liner, 1906-1998)

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SUMMER PUBLISHING SCHEDULE: Please note that HARDLINES is published once in August. There will be no issues on July 31, August 14, 21, and 28. We resume our regular publishing schedule with our September 4 edition.
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Newfoundland and Labrador dealer Notre Dame Agencies adds 10th location

LEWISPORTE, NL ― Notre Dame Agencies, a large independent dealer in Newfoundland and Labrador, has purchased its 10th retail location, the former Warr’s Castle Building Centre in Springdale, NL.

Cluny Sheppard, chairman of the board of Notre Dame Agencies, oversees a retail empire in Newfoundland that consists of the 10 Castle building centres (the Cornerbrook store is shown here), as well as a chain of seven furniture stores under the Notre Dame Home Furnishings banner, and Notre Dame Recreation, which sells recreational vehicles and gear from two locations in Newfoundland and Labrador. The building centres alone generate estimated sales of $72 million (source: Hardlines Who’s Who Directory).

Warr’s, a long-time Castle member, began in 1908 as a logging and sawmill operation. The family-owned business grew over the decades into a full-service lumber, building materials, and hardware outlet, serving a mix of contractors and consumers.

Manager Peter Young and his staff are expected to continue on at the Springdale location following the acquisition.

Under former owner Brian Warr, Warr’s had been exploring succession strategies for the business, which employed a number of family members. Brian Warr eventually entered politics, and since 2015 has had a seat in Newfoundland and Labrador’s House of Assembly as the elected Liberal representative for Baie Verte-Green Bay.

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Could Ace Hardware buy True Value in the U.S.?



CHICAGO — According to a Bloomberg report last week, True Value Co. is “considering a sale that could value the home-improvement store chain at about $800 million.” People who asked not to be identified as they weren’t authorized to speak publicly say the company is working with an investment bank to examine strategic options, including a sale, according to the Bloomberg report.

“The process is expected to attract private equity firms,” said the report. However, no final decision has been made, and the company may not pursue a sale.

“There is no company out there that is more focused on the independent hardware retailer,” Jean Niemi, vice president of communications for the co-op, said. “True Value remains committed to our long-term strategic plan and, as part of that, we are continuously assessing and evaluating many opportunities in an effort to create maximum value for all of our retailers.”

True Value is a co-op made up of about 4,400 independently owned and operated hardware stores. In its annual report, the company reported gross billings of $2,073.7 million, and revenue was up 1.1% year over year to $1,514.1 million.

Both Ace and True Value are dealer-owned co-ops. An acquisition by Ace would result in a network of 9,400 stores.

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Lowe’s Canada CEO: ignore online at your peril

TORONTO — What a customer uses a computer or mobile device for while undertaking a home improvement project depends on what point they are at in a project. That’s why it’s important for a retailer to be effective at every one of those points of contact.

This was just one of the insights offered up by Lowe’s Canada CEO Sylvain Prud’homme at the annual convention of the Retail Council of Canada last month. He said that 87% of customers used the web before a purchase, for research. As they get closer to the purchasing stage, 79% go online to compare prices. Then, even after they’ve visited the store and made their purchase, 35% of shoppers will experience cognitive dissonance and check online products and pricing again.

“Your customer is only one click away from shifting their business away from your store,” he said. That’s why Lowe’s Canada is committed to offering “a seamless experience” across the digital and bricks-and-mortar worlds. Prud’homme pointed out that the penetration of e-commerce is higher in Canada than in the U.S., though the outcome is not always to make a purchase.

He added that RONA’s customer base is coming on board with the omni-channel approach of Lowe’s.

In his presentation, he cited the competitive field as it exists among bricks-and-mortar dealers, including Patrick Morin, Ikea, Canadian Tire, Home Hardware, and Costco. But to that list, he would add the likes of Wayfair, Ali Baba, and Houzz, all of which exist exclusively online.

“Innovation has been at the heart of Lowe’s strategy for years,” he said. “And it’s not just improving what already exists,” but looking in new ways at one’s business. He pointed to space-age innovations from Lowe’s such as robots in store in the U.S., the virtual-reality “Holoroom” being used in some stores in Canada, and a 3D printer that’s being used by the International Space Station orbiting earth.

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Shades of Ikea: Target and Amazon expand their private-label hardlines brands


SPECIAL REPORT ― As traditional hardware retailers fight to defend their market share against e-retailers, a growing number of private-label brands is also seeking a piece of the pie. In the U.S., mass-merchant retailer Target has just unveiled four new in-house lines―including one dedicated to homewares. Project 62 includes everything from kitchen utensils and vases to kitchen trolleys and end tables, potentially encouraging customers to make a one-stop shop and save a trip to a hardware store.

The four new brands represent the first wave of at least 12 new launches over the next two years, which Target announced back in February. The retailer got its first private label in 1991 when it acquired Merona, an existing clothing line that sold in several department stores before becoming a Target exclusive. With the debut of the Archer Farms grocery line in 1995, Target had its first homegrown store brand. In announcing the four latest brands, the retailer also made it known that several others will be retired―Merona among them.

When it comes to private-label growth, however, it’s hard to beat Amazon. The e-retailer first launched its Amazon Basics line in 2009, offering everyday items from its wildly popular batteries to baby wipes. As an incentive to Prime membership, which Amazon continues to push, some lines are available to members only.

Most of Amazon’s offerings are in categories like food or clothing that don’t directly impact on hardware retail. But its Pinzon line focuses on décor, including bedding and linens, meaning that it covers some of the same turf as some upscale hardware stores and home centres. A report by One Click Retail at the close of last year found that Amazon’s plumbing, electrical, and hardware categories each generated more than $20 million in sales in October 2016 alone.

Private brands are likely to continue growing in popularity, in no small part because of the appealing profit margins they yield for retailers and the customer loyalty they can encourage. In devising strategy, retailers will need to hold their own against store brand offerings from general merchandisers like Walmart and Target and e-retailers like Amazon.

Some have done that by cultivating their own private-label offerings. Canadian Tire, notably, has a focus on strong in-house brands: in the fourth quarter of 2016, private label accounted for one-third of its sales, including 88% of its Christmas product sales.

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Following changes to the LBM staff at Groupe BMR, Jean-Marc Prud’homme has been appointed Senior Director–Forest Products. He will be in charge of purchases for all wood products―plywood, lumber, engineered wood, Canexel products, and other commodities. Prud’homme previously worked at Goodfellow and Matériaux Pont-Masson.

Taiga has announced that Bernie Gauthier, already General Manager of siding, is taking on the additional role of National Sales Manager for preserved wood products. Gauthier will report to Executive VP and COO Russ Permann, and will oversee the regional treated wood sales managers. Before joining Taiga, Gauthier developed sales and marketing for the Resisto brand.

Home Hardware has announced changes in its LBM department: Doug Shantz has accepted the position of Director, Lumber and Building Materials. He will report to Joel Marks, VP Merchandise. Shantz was previously the Merchandise Manager for LBM in Ontario, and is succeeded in that role by Mark Pardue, previously a regional LBM Co-ordinator. Bruce White, VP merchandise for LBM, is officially retiring.

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CLASSIFIED ADS

Spancan, the industry leading Hardlines Buying Group has an exciting opportunity for a Director of Purchasing based in our Ajax, Ontario office. This position is responsible for coordinating the purchase decisions for the members of the group including Federated Co-op, TimberMart and ILDC. The individual will organize and oversee annual negotiations, be the key contact for both vendors and members and prepare the critical analysis used for the groups buying decisions. A business degree along with 7+ years purchasing experience, preferably in the Home Improvement Industry. Must be an excellent communicator and have strong Microsoft Office and presentation skills. If interested please forward your resume to resume@spancan.com. All responses will be held in complete confidence.

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Founded in 1950, Bailey Metal Products Limited. is a family owned and operated Canadian company. Bailey is recognized as the industry leader, offering building solutions to both the commercial framing and drywall finishing residential markets.

We are hiring for the following positions:

Plant Manager – Calgary AB.
Sales Representative Retail and LBM – Prairies
Outside Sales Representative –Montreal QC.
Sales Manager – Prairies

To see a full list of positions visit www.bmp-group.com/about-bmp2/careers

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Covertech Flexible Packaging , the manufacture of rFoil reflective insulation is looking for an independent Canadian sales rep who has contacts in the home improvement /retail marketplace. www.rfoil.com, www.covertechflex.com

Contact :  John Starr, Vice President /Partner,
                   johnstarr@covertechfab.com
                   416-798-1340 ext 206

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