July 19, 2010, Volume xvi, #29

“A bank is a place that will lend you money if you can prove that you don’t need it.” —Bob Hope (American comedian and actor, 1903-2003)

Eco fees should come as no surprise

TORONTO — The consolidated Municipal Hazardous and Special Waste (MHSW) Program was launched July 1, in the form of “eco fees” on a range of products, with those costs being passed down to consumers at checkout.

The program is managed by Stewardship Ontario, an industry association (not a government body and not a tax collection agency). It’s an industry agency devised to respond to the Waste Diversion Act of 2002. The agency has calculated the costs of managing the end-of-lifecycle of a range of products, divided that cost by the estimated sales for the year ahead, and tacked the cost onto each can of paint, bag of cement and battery being sold from July 1 on. The monies will be turned over to the province's municipalities, which manage the waste recovery.

“That fee reflects the direct cost of managing waste disposal,” says Vaughn Crofford, President of the Canadian Hardware and Housewares Manufacturers Association. Until last month, when he stepped down, Crofford sat on the board of Stewardship Ontario, representing the durable goods sector. “CHHMA has been involved from day one and we’ve provided a lot of solutions for calculating the costs of packaging in the Blue Box and of waste materials.”

Yes, details of how the program would play out at retail were unclear, and yes, it was ill-advised to launch on the same day as the introduction of the HST. “It certainly caught everyone off-guard,” admits Steve Copp, President of Copp Building Materials in London, Ont., reflecting the attitude of many dealers across the country.

However, the program has been in the works for years, during which time companies like Home Hardware have been getting ready with upgrades to their systems.

Crofford, for one, is skeptical of consumer response to the program, which is being fuelled by Ontario’s opposition party. “The Tories are calling it an eco-tax – but it’s not a tax,” he points out. “It’s a true fee reflecting the cost of handling this material.” In fact, he adds, the Waste Diversion Act got passed under the provincial Tory regime, “so this is an all-party program."

More information about this eco fee can be found at the Stewardship Ontario website.

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Home Depot suppliers adjust as MET launch looms

TORONTO — Following a round of meetings with vendors last month, Home Depot Canada is preparing to begin the rollout of its Merchandising Excellence Team (MET) into its stores beginning Sept. 7.

The program brings in house the weekly merchandising and arranging of products on the shelves in all 179 Home Depot stores in the country. Those duties have been, until now, performed by outside service companies, often attached to rep agencies.

The electrical category will be included in phase one of MET and participating vendors are getting ready for the transition. “We’re part of MET and it will take over servicing of the light bulb category,” says Kris Ovstaas, director of consumer sales for Philips Lighting. “Our agency has given notice to its team. They are already departing to look for new jobs.”

While many of them will likely find jobs at Home Depot as part of MET, the transition may result in some disruption of weekly in-store detailing duties through the rest of the summer. “However, we have contingency plans to keep the stores properly serviced,” Ovstaas says.

Not all vendors will be required to participate in MET, however. Behr Paints, which is exclusive to Home Depot in this country, will continue to use its own service team. And so will TTI, which produces the Ryobi and Ridgid brands exclusively for Home Depot.

Craig Baxter, President of TTI Canada, was not surprised by the decision to exempt his company. “We’ve been told our store service is exemplary. There’s nobody that has more passion and know-how for this category than we do."

His company is still making some adjustments, however. TTI’s team of 35 service people will grow to 40 by the end of the month, and he’s even installed an inventory analyst on site at Home Depot’s head office. “That person is working for Home Depot but is on our payroll,” he says.

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New format for show in Atlantic Canada

DIEPPE, N.B. — Attendees at next spring’s Atlantic Building Materials Show will see some significant changes to the show’s format and timing. The latest changes are part of an ongoing process to keep the show relevant and responsive to the needs of dealers in Atlantic Canada.

“Two years ago we changed to a two-day show,” says Don Sherwood, of the Atlantic Building Materials Association, which owns and operates the show. “And we moved it to a Thursday and Friday, even though this went against the wishes of some smaller independents who would bring their staff in on a weekend.”

Now, says Sherwood, changes are being made to maximize the networking opportunities among vendors and dealers. “We’re going to focus heavily on this on the first night of the show, changing from a meet-and-greet to a cocktail hour and ‘quiet time’ right on the show floor. This will let buyers walk the show unhampered.”

The second night will switch from a gala dinner to a less formal networking reception and dinner. The show will be held Feb. 24-25, 2011, at the new casino that’s been built in Moncton.

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Canadian dealer wins Retail Innovator Award

SPECIAL REPORT — Each year, the North American Retail Hardware Association recognizes cutting-edge independent retailers with its Retail Innovators of the Year Awards. We’re proud to announce that one of this year’s winners is a Canadian member of NRHA. (NRHA in Canada is represented by HARDLINES, of course! —Michael)

Sponsored by NRHA and Vermont American Power Tool Accessories, the Retail Innovators of the Year Awards allows the NRHA to single out retail pioneers who are raising the bar and setting a new standard for retail operations.

Lloydminster Home Hardware Building Centre won the Award in the category of “Store Operations.” The store is half contractor customers and 50% retail consumers – but every customer gets 100% of what they need from this dealer’s unique store operations and exceptional customer service. Call-in ordering, same-day delivery and access to an extensive fleet of trucks and forklifts make Lloydminster Home Hardware Building Centre highly efficient for contractors.

For retail customers, it offers an interior design boutique complete with its own staff of experts, a “Gingersnaps” Coffee Shop, and even a baby boutique – all in addition to an extensive collection of traditional products.

The Retail Innovator Awards will be presented at the NRHA’s Annual Convention and All-Industry Conference, July 19-21 . (A number of NRHA members from Canada will be heading to the Convention at the Hyatt Regency in Savannah, Georgia!)

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Classifieds

Resumés

• A conscientious, highly motivated manager with a results-oriented track record in developing new business. view this resumé
• A goal oriented sales director that has superior management skills, customer oriented, with in depth knowledge of the industry and the ability to achieve results. view this resumé
• National Field Sales Manager with twelve plus years in power tools and hardware sales/merchandising. view this resumé
• Business Manager with U.S. & Canadian experience with retail & industrial customers seeks a new opportunity. view this resumé
• An experienced merchandising executive possessing passion, vision, and a strategic approach to delivering bottom-line. view this resumé
• Results oriented sales professional with a strong record of achievement in strategic and tactical roles. view this resumé
• Senior sales/marketing leader with experience in all classes of trade wishing new HARDLINES career. view this resumé
• Very Experienced Business Unit Manager, great passion for generating sales and building relastionships.view this resumé
• Worked through my career within the manfucaturer, wholesale and consumer goods industries. view this resumé
• Senior Sales Manager with vast experience in retail and wholesale sales growth in Canada. view this resumé

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