July 27, 2015 Volume xxi, #30

“There is no wealth like knowledge, and no poverty like ignorance."
—Buddha (Indian sage and founder of Buddhism, circa 6 BCE)

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SUMMER PUBLISHING SCHEDULE

There will be no weekly edition of HARDLINES on August 3, 17, or 31. The World Headquarters will remain open, however, during this time as we finalize the speakers for our incredible 20th Anniversary Hardlines Conference. The regular weekly schedule will resume September 7.

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Lennie to head Home Depot’s MRO division

ATLANTA — The Home Depot has announced a definitive agreement to acquire Jacksonville, Fla.-based Interline Brands, Inc., a national distributor and direct marketer of broad-line maintenance, repair and operations (MRO) products. And it's putting the Canadian division’s current president in charge.

Under the terms of the deal, Home Depot will acquire Interline for $1.625 billion in cash, subject to customary adjustments. At the same time, Bill Lennie, president of The Home Depot Canada, has been named EVP, outside sales and service, a newly created post that puts Lennie in charge of the company’s pro, MRO, and installation services business. In his new role, he will also oversee the integration of Interline. Lennie will continue to run Home Depot Canada until a replacement is found.

The acquisition, which has been approved by the shareholders of Interline, is expected to be completed during The Home Depot's fiscal third quarter, which ends on November 1. The deal is subject to applicable regulatory approval and other customary closing conditions.

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Lowe's Canada announces aggressive store growth

TORONTO — Lowe's Canada announced last week that in addition to completing the acquisition of 12 former Target sites, the company also plans to open two more locations in Ontario. Construction is currently underway in Ancaster, Ont., and Mississauga, Ont., representing an additional investment of approximately $50 million. Ancaster will be 84,000 square feet and Mississauga will be 94,000 square feet in size, both plus garden centres. Both stores are expected to open either in late January or early February 2016.

"These 14 new locations are a tremendous win for us in Canada, accelerating our growth across the country and bringing our total store count to 54 locations," said Sylvain Prud'homme, president of Lowe's Canada.

The new Lowe's sites are located across Canada, many in markets where Lowe's is currently under-represented, bringing up the total of Canadian Lowe’s stores to 54, with 37 stores in Ontario, three in Saskatchewan, nine in Alberta, and five in British Columbia. Click here to see a full list of the new store locations. 

Lowe's has completed its acquisition of the 12 former Target locations, including the purchase of Target's Milton, Ont., distribution centre for a total purchase price of approximately $147.75 million. This acquisition came as part of a real estate auction following Target's decision to cease operations in Canada.

The 14 new stores, located across the country, will enhance Lowe's presence in Western Canada and strengthen its base in Ontario and will also create approximately 2,000 jobs.

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Industry leaders will present at 20th Hardlines Conference

WORLD HQ, TORONTO — What do Terry Davis, CEO of Home Hardware Stores; Bernie Owens, president of TIM-BR MART Group; Joe Scarlett, retired CEO of Tractor Supply Stores and founder of the Scarlett Leadership Institute; and Ken Jenkins, president of Castle Building Centres, all have in common? They will be presenters at the 20th Annual Hardlines Conference.

The conference will be held October 21 and 22 at the Westin Bristol Place Hotel near the Toronto Pearson Airport. This annual event will play host to 200 senior managers and executives from hardware and home improvement retailing in Canada and North America. Attendees will have exposure to two days of learning, ideas, and networking, as they rub shoulders with industry leaders.

This year’s program promises to be rich and varied. Aron Gampel, VP and economist for Scotiabank, will share his insights into the direction of the economy, while a panel of young retail leaders will share their viewpoints and concerns. Other speakers include: Mark Scherer of Scherer Brothers Lumber in Minneapolis; and retail guru Ibrahim Ibrahim, from UK-based Portland Design. Hugo Girard, Quebec strongman and motivator will present in our “Profiles in Leadership” Series.

The future of bricks and mortar will be top of mind at this year’s conference. Two key figures in e-commerce will present: Joseph Thompson, VP marketing and communications for online LBM retailer BuildDirect; and a senior sales and marketing executive from Google Canada. 

Sign up now to join the suppliers and dealers who will converge in Toronto from October 21 to 22 to increase their learning, sharpen their insights, network with industry leaders—and help Hardlines celebrate its 20th anniversary!

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Vendors: Taiga seeks vendors with strong brands
TORONTO — While Taiga Building Products is a household name in the home improvement industry, the breadth of products it carries and the extent of its support network may come as a surprise to many vendors.

That was certainly the case during the Hardlines Meet the Buyers Breakfast, held in May in Toronto. A room full of vendors sat raptly as Dave McNeil, Taiga’s vice president Eastern Canada, explained that the wholesale distributor may be rooted in commodities, but its focus is firmly on retail. Products include lumber, preserved wood, engineered wood—OSB, I-joists, and beams—plywood, moulding, insulation, composite decking, flooring, and roofing.

McNeil provided some insights for vendors seeking to get listed with the Burnaby, B.C.-based company, which does almost $1 billion in sales annually. That includes knowing about the vendors themselves. “Taiga wants to understand what your company stands for, to understand its culture and its people.” He said Taiga wants to do business with a company “with a good track record.”

These will all factor into negotiations in which price plays only one part. “Price is at the bottom of the list. It can be tweaked; it can be fixed.” Margin is more important, he stressed.

If a vendor is presenting a new product, they will have an easier time if that product can fit into an existing category, rather than having to create a new category. And brand is important. “We’re very interested in what the brand position is in this country—or what it could be.” National brands are preferred, but Taiga can handle regional and local lines in some cases.

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FROM THE ARCHIVES: This week in 1995


While Home Depot was taking a breather from its breakneck expansion in Canada, another big box player was still going gangbusters. Revelstoke CEO Carl Grittner was planning to have a total of seven Revy Home & Garden stores by the end of the year, with another 10 planned for the following year. Also: Schurman in P.E.I. was celebrating its 100th anniversary and Hickman’s in Newfoundland was growing its contractor business. Click here to read these blasts from the past!

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At Renin Corp., Shawn Pearson has been named president and CEO, and been appointed to the board. He joins Renin after 13 years with Danby Products, most recently serving as President of the Danby companies in Canada, the U.S. and, Asia. Besides having an MBA from the Ivey School of Business at the University of Western Ontario, Pearson was an all-American baseball player who played with the Toronto Blue Jays. Pearson replaces Kevin Campbell, who had been with Renin and its predecessors since 1987.

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