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July 25, 2016 Volume
xxii, #30
“And so I wake in the morning and I step outside, and I take a deep breath
and I get real high, and I scream from the top of my lungs, what's going on?”
—Linda Perry (American Grammy-nominated rock singer-songwriter and record producer, 1965- ) Click here to start your week off with a great tune!
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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.
(Click here to receive FREE Daily News updates all the time!)
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Peavey and TSC: a match made in farm hardware heaven
RED DEER, Alta. & LONDON, Ont. — In a move that unites two of Canada’s largest farm hardware retailers, Peavey Industries LP has acquired a controlling interest in TSC Stores LP from Birch Hill Equity Partners.
The union marks a natural fit between two privately held retail chains that share a similar retail model, while being distinct geographically.
TSC Stores is a farm and hardware supply company based in London, Ont. Peavey, based in Red Deer, Alta., where it has a 200,000-square-foot distribution centre, has 36 stores that range in size from 10,000 to 35,000 square feet. The stores feature a wide assortment of hardware, farm and pet, automotive, and home improvement products. Serving Western markets, most of Peavey’s stores are in Alberta and Saskatchewan.
TSC has 51 mid-sized hardware stores that average 16,000 square feet in size. Except for one store in Manitoba, all of its business is based in Ontario.
The investment in TSC includes a transition period that will allow Peavey to acquire complete ownership in TSC. Throughout the transition period, Birch Hill will remain a minority stakeholder in TSC.
The two companies will continue to operate as separate entities under separate banners. Doug Anderson, president of Peavey Industries, will take on the role of executive chairman of TSC, and Darryl Jenkins will continue on as president to run the day-to-day operations and leadership of the company.
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Deliveries: a valuable way for dealers to cultivate loyal customers
SPECIAL REPORT — Delivery is one of those can’t-do-without services for most home-improvement retailers. And while it’s a valuable way for dealers to cultivate loyal customers, it can get expensive—and must be managed.
“Over the years, it has become one of the top reasons contractors and retail customers enjoy shopping with us,” says Felicia Hyra, COO with McMunn & Yates Building Supplies, the Manitoba-based dealer with 19 locations in three provinces.
Three-fifths of the annual sales generated by six Moffatt & Powell stores based in London, Ont., are delivered to pros and homeowners, says branch manager Jason Sims. Five trucks with dedicated drivers deliver within a 200-kilometre radius of those stores, “but depending on the customer and the size of the order, we’ll deliver anywhere,” he says.
Dealers are reconciled to the fact that, while delivery may be a loss leader, their stores probably wouldn’t get business from a lot of customers without the service.
Hanna Building Supply in Hanna, Alta., includes an ag and chemicals business for which delivery is critical, explains owner Dale Crowle, because some of the biggest specialty suppliers won’t ship direct, and farmers don’t like to pick up stuff at the store themselves.
“We deal with the majority of the big builders in our market, and a lot has to do with service,” says Craig Geerlink, vice president of sales for Geerlinks Home Hardware Building Centre in St. Thomas, Ont., which generally doesn’t charge its big pro customers for delivery.
Dealers are less forgiving when it comes to charging homeowners for delivery, and fees can range from $15 to a couple of hundred dollars, depending on the load and distance.
(This story is excerpted from a larger article in our sister publication, Hardlines Home Improvement Quarterly. HHIQ is sent free to dealers across Canada. If you’re not receiving your own copy, or if you want to renew your subscription now, you could win a free tablet. Just click here. Vendors and suppliers can subscribe, as well, also by clicking here! —your ever-helpful Editor)
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Industry reports improvement in first-quarter business conditions
SPECIAL REPORT — After a mild winter, both retailers and vendors agree that Q1 has started 2016 on a positive note. Having experienced a modest increase of three percentage points in sales compared to Q1 2015 for retailers, and a huge jump for vendors of more than 25 percentage points, both groups are optimistic about the rest of the year.
Retailers’ outlook for the year ahead has been steady since Q1 2015; the percentage expecting increased sales rose 0.4 percentage points from a year ago to 57.2%. In Q1 2015, 56.6% of retailers were expecting sales increases throughout the year.
We then asked retailers if they felt the effects of showrooming in their stores and 64.3% indicated yes—which is down from 72.1% in Q1 2015. For vendors, 73.3% reported that they plan to invest in buildings, machinery, or equipment over the next 12 months—nearly 40 percentage points higher than 31.3% in Q1 2015.
The top issues for retailers are staffing, customer retention, and decreasing margins, whereas vendors are concerned about the exchange rate with the U.S. dollar, retail consolidation, and higher raw material/shipping costs.
(This data all comes from our most recent quarterly Business Conditions Report in our sister publication, Hardlines Home Improvement Quarterly. We’ll be sending out emails to you in a few days asking you to report on your second-quarter business conditions. Please take two minutes to fill out this very confidential HHIQ survey when it lands in your inbox! —Editor)
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Credit card battles escalate as Walmart drops Visa
MISSISSAUGA, Ont. — Walmart Canada has begun its refusal of Visa payments at its three stores in Thunder Bay, Ont. And it promises to roll out the policy to the rest of its nearly 400 stores in this country, if its dispute with the credit card issuer is not resolved.
The two companies have been feuding publicly over the fees Visa charges retailers per transaction. Walmart says it pays $100 million annually in card fees. Visa counters that Walmart pays rates comparable to other retailers, while Walmart believes it can find better deals for a retailer its size with Visa’s competition. Visa still had the largest market share of credit card issuers in Canada as of last year, according to an analysis by The Nilson Report.
Walmart’s corporate affairs director Alex Roberton explained the choice of Thunder Bay, pointing to the area’s “strong leadership team and the right infrastructure to do this as seamless [sic] as possible for our customers here.”
Meanwhile, Costco in the U.S., which has historically accepted only American Express, is now taking Visa instead. Amex has sold its Costco portfolio to CitiGroup, which will manage Costco’s own cash-back credit card.
And at Ikea Canada, PayPal has become an option for online purchases from the giant furniture and accessories retailer, in addition to Visa and MasterCard.
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CLASSIFIED ADS
Job Title: Territory Manager, Schlage (Two Opportunities)
- Territory Manager, Ontario
- Territory Manager, Western Canada
Company Profile
Allegion Canada, a market leading manufacturer of door hardware and access control products with key brands such as Schlage, LCN and Von Duprin, is hiring two Territory Managers (Western Canada and Ontario).
Position Summary
Reporting directly to the National Sales Manager, the ideal candidate is a self-motivated, driven sales professional with a passion for excellence. The Territory Manager, Schlage Canada, is part of an energetic team responsible for developing our growing Schlage residential business across Canada. They are detail oriented, strategic and analytical with the ability to think outside the box.
Responsibilities
- The successful incumbent will be responsible for managing the sales growth of the sales region through effective account management. This includes store resets, new store coordination, store walks, event implementation and special projects.
- Grow market penetration by developing strong relationships with assigned accounts store level associates, Department Managers and Store Operators and Managers.
- Develops a territory business plan and customized business plans for assigned accounts, promotional activity, shelf management programs, product training, investment strategies, and revenue goals.
- Utilizes existing marketing programs to maximize market-share growth and ensures that selling strategies align with revenue and profit goals outlined in Annual Operating Plan. Responsible for meeting budget and expense parameters for optimizing operating profit.
- Supervises and manages the development and execution of the regional field sales team.
- Represents Allegion Canada with the highest integrity. Conducts regular business reviews and other analyses to be able to make recommendations that will improve our business performance.
- Represents Allegion Canada at national, regional, and local dealer and builder shows as required.
Knowledge/Experience Required:
- 3-5 years’ experience in a sales and marketing role
- University or college degree in Sales and/or Marketing
- Good attitude and good work ethic and willing to learn
- Exceptional computer skills
- Strong communication and written skills. Bilingualism is an asset
- Must possess a valid driver’s license
- Must be willing to travel up to 45% of the time
- The ability to multi task and handle various priorities
- Strong ability to work in a collaborative, supportive way
- Experience with both electrical and mechanical door hardware an asset
If you believe you have the skill set that matches our position requirements please apply using the links below.
https://allegion.wd5.myworkdayjobs.com/en-US/careers/job/Calgary-Canada/Territory-Manager---Alberta_JR4824-3
https://allegion.wd5.myworkdayjobs.com/en-US/careers/job/Remote-Location-Canada/Territory-Manager---Ontario_JR4738-6
For more information please visit Allegion.com.
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Rep or Distributor Wanted
U.K.-based manufacturer seeks rep or distributor for Canada and North America for new product line. Products are absorbent rolls to protect houses from excess surface water flooding. Looking for existing distribution network into the large retailers such as Home Depot, Lowe’s. Potential for own branding of products for distributor. Contact: info@ubersorb.com
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