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July 30, 2018 Volume
xxiv, #30
“To me, the fundamental tales of life are: do good, do the best you can and reach for the stars sometimes.”
―Valerie Pringle (Canadian broadcast journalist and TV host, 1953- )
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SUMMER PUBLISHING SCHEDULE: Please note that HARDLINES is published only once in August. There will be no issues on August 13, 20, and 27. We resume our regular publishing schedule with our September 3 edition.
(Click here to receive FREE Daily News updates to keep you informed between issues!)
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What’s really new about RONA’s new-look stores? Just take a look
TORONTO — “The customer was at the centre of our thought process when developing the new RONA building centre model.” That, says Patrick Lapointe, divisional vice-president, RONA operations, has been the guiding direction for parent company Lowe’s Canada as it works to increase the profitability of its RONA stores, in all their various formats.
The new home centre model, an evolution and renaming of its proximity stores, works toward three goals, says Lapointe, “to better meet current needs and trends in home improvement, become a true one-stop-shop for our customers’ home improvement projects and enhance our offering for contractors and pros.” The home centre in Etobicoke, in Toronto’s West End, is the latest example of the new look.
With this in mind, the store is aimed at both DIYers and contractors, and features a number of innovations, including some that borrow from its big box counterparts.
It’s the second RONA location in Ontario to be converted, and up to six more are expected to be completed by the end of 2018.
(For a tour of the new-look RONA home centre, click here.)
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Home Depot goes after the home décor market
ATLANTA — Home Depot is moving to position itself as the go-to destination for home décor products, in a shot across the bow of U.S. giants like J.C. Penney and Bed Bath & Beyond. An email to customers at the beginning of the month declared, “Your favourite home improvement destination is about to become your new favourite décor destination.”
The move is an indicator that Home Depot is planning to take advantage of the profile that e-retailer The Company Store, which it acquired at the end of last year, has built up in the upmarket housewares and design business. The signs were pointing that way soon after the purchase of The Company Store. Only a month later, Home Depot was touting its wares at Frankfurt’s home textiles show.
At the time of the acquisition, a Credit Suisse analyst found that décor categories alone constituted just 3% of Home Depot’s sales, even though ancillary categories make up about one-quarter. Realtor.com placed home décor on a list of categories for which customers can find better deals elsewhere than home improvement big boxes. Yet an Apex Market Report earlier this summer placed Home Depot among the top players for wall décor.
In its latest promotion, Home Depot’s offerings include furniture, linens, bath accessories and table and wall decorations. No fewer than 66 bath towels are available, some bearing the Company Store brand. Apart from area rugs, the retailer is sticking to offering “soft” items online for the time being, but execs will no doubt be watching sales closely. If the category is a success through the online channel, we could be seeing “soft” home offerings alongside Home Depot’s in-store hardlines.
This isn’t Home Depot’s first foray into home décor. In the ’90s, the company piloted a spin-off called Expo, a store for upmarket home improvement lines along with décor offerings such as textiles and dining ware. The Company Store takeover marks the first time Home Depot has seriously revisited the “soft” categories since it closed its Expo stores around the end of the last decade. With J.C. Penney, Bed Bath & Beyond and especially Sears all facing their own challenges, the timing may just be right.
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New Lowe’s CEO hits the ground running with executive overhaul
MOORESVILLE, N.C. ― In his inaugural initiative as Lowe’s Cos. CEO, Marvin Ellison announced major changes to the retailer’s leadership structure. Gone are the positions of chief operating officer, chief customer officer, corporate administration executive and chief development officer. Their responsibilities will be transferred to other executives under Ellison’s immediate oversight.
Ellison took the reins in Mooresville on July 2, having been lured away from the same position at J.C. Penney at the behest of activist Lowe’s shareholder Bill Ackman. Previous CEO Robert Niblock announced his retirement in March after 25 years with the company, including 13 as CEO. Ellison has a brief to cut costs and maximize profits to close in on rival Home Depot.
Because of the restructuring, Chief Customer Officer Michael McDermott will step down in November after just two years in the post, while COO Richard Maltsbarger left the company immediately. He had been in that role since November, having joined the company in 2004.
Chervon North America CEO William Boltz has been named executive VP of merchandising. His CV, like Ellison’s, includes time at Home Depot. He will step into his new role in mid-August.
Lowe’s is searching for outside candidates for EVP of stores and the newly created position of EVP of supply chain. Mike West, senior VP of supply chain operations, will fill the latter role in the interim. CFO Michael Croom retires in October, and an outside search is underway for his successor.
N. Brian Peace, senior VP of administration, will now report Bill McCanless, who remains as executive VP, general counsel and corporate secretary. Peace will transition to an unspecified position in the fall.
And more recently, Joseph M. McFarland III has been named executive vice president, stores, effective Aug. 15. In this role, McFarland will oversee the north, south and west divisions, Orchard Supply Hardware, pro and services businesses, operations engineering and asset protection for the organization. Like Ellison, McFarland most recently served in an executive leadership role at J.C. Penney and, prior to that, worked for Home Depot.
The changes do not affect Lowe’s Canada, where Sylvain Prud’homme remains in charge of Canadian and Mexican operations as president and CEO.
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Home organization: a growing category―and a sales opportunity
SPECIAL REPORT ― Home organization products comprise a growing category, and DIYers are the most frequent buyers of the cabinets, benches and other storage items they need to put their houses in order.
Packaged Facts, a U.S. consumer research firm, projects that home organization sales in that country will reach $19.5 billion in 2021. The group also reports that about 80% of sales in the category are for DIY organization projects.
In keeping with that trend, consumers say they are more likely to do their own work on home organization projects than hire professional help, according to recent research from Home Innovation Research Labs. About 75% of consumers install their own closet and garage storage.
Organization products for closets and garages range from metal hooks and plastic totes to countertops and cabinetry, making the category a good fit for hardware and home improvement retailers.
The North American Retail Hardware Association (NRHA) recommends that a good place to start with this category is with small items already carried in the store. Merchandising hooks, small shelves and bins together can help a retailer gauge whether customers are willing to step up to bigger and more complex organization products.
(The NRHA is represented in Canada by Hardlines. To learn more about the NRHA and the range of online training programs available, please click here!)
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Ace Hardware Corp. has named Kim Lefko senior vice president, chief marketing officer (CMO). Lefko will report directly to John Venhuizen, president and CEO of the co-op. As the company’s new CMO, Lefko will be responsible for the brand’s global marketing and advertising. She will also be charged with leading digital initiatives and creating new strategies to further Ace Hardware’s reach.
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CLASSIFIED ADS
Sales Territory Managers | Atlantic Canada
Regal Ideas is the innovative leader in Aluminum Railing and associated outdoor living products to the Canadian Home improvement Industry. We require experienced Building Materials Professionals to expand our sales team and drive sales growth across Atlantic Canada. If you are a motivated and highly organized team player with Building Materials Sales experience on the wholesale side, then we would like to speak with you.
Please send resume and salary expectations to Marketing@regalideas.com and you will be contacted if qualifications are commensurate with our requirements.
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Key Account Manager-Ontario
King Marketing is a national manufacturer’s agency focused on representing leading brands in the hardware and home improvement industry. We have an immediate opening for a Key Account Manager in Ontario. The successful candidate will report to the National Sales Manager.
Responsibilities include:
- Selling our represented manufacturer’s products to national and regional accounts based in Ontario.
- Developing trusting relationships with buyers and assistants.
- Expanding product listings, suggesting promotional items.
- Prospecting and soliciting new customers.
- Working with distributors and distributor representatives.
- Participating in the planning and execution of customer trade shows.
- Reporting all activities through an on-line reporting system.
- Meeting sales targets.
Requirements
- Experience in the hardware and home improvement sector as a key account manager.
- Strong communication and interpersonal skills with aptitude in building relationships.
- Self-Starter with excellent organizational skills.
Compensation and Benefits
- Competitive salary including bonus plan.
- Comprehensive health plan.
- Car allowance & gas card.
Send resume and cover letter to stephaniek@kingmkt.com
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Westman Steel Industries is one of Canada’s largest manufacturers of steel roofing and siding products. Westman Steel Industries is a member of The WGI Westman Group, a dynamic entrepreneurial group of companies who values safety, health, community, relationships, growth and fiscal responsibility.
Westman Steel Industries has the following career opportunity in Langley, BC:
GENERAL MANAGER
The General Manager leads a team of production and sales employees in the manufacturing and supply of steel roofing and siding products to the B.C. market. The successful candidate will plan, organize, direct, control, and evaluate the process activities of Production, Customer Service, and Shipping and Receiving staff. Oversees the entire manufacturing process which includes: production and operations management, human resource management and health and safety.
Westman Steel provides a competitive total rewards package including professional growth, career development and continuous learning. The company offers excellent benefits and a deferred profit sharing plan. Interested candidates can apply by visiting https://www.indeedjobs.com/westman-steel-industries/jobs/d5d8013ea3909b6a5357
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