July 6, 2015 Volume xxi, #27

“In a world darkened by ethnic conflicts that tear nations apart, Canada stands as a model of how people of different cultures can live and work together in peace, prosperity, and mutual respect.”— Bill Clinton (American politician and 42nd President of the United States, 1946- )

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Four companies top Canada’s list of home improvement retailers

HARDLINES EXCLUSIVE — More than half of Canada’s retail home improvement sales are generated by just four companies, says a new report by HARDLINES. And while corporate entities comprise three of that top four, one of them is in fact a co-op of independents.

According to the 2015 Hardlines Retail Report, Home Depot Canada has secured top spot as the largest player in the industry, while the number-two position is now held by Home Hardware Stores Ltd., a group that consists of almost 1,100 independent dealers. In third place is RONA, followed by Canadian Tire’s retail sales in the hardware and home improvement category.

Together, they account for almost $22 billion in retail sales. Home Depot Canada by itself represents almost 14% of the overall market.

The 2015 Hardlines Retail Report is the culmination of months of analysis and measurement of home improvement retailing in this country, a sector that accounts for more than 8% of retail overall in Canada. One of the findings of the Report is that the industry continues to grow steadily post-worldwide recession—but at less than 3%, that growth is still much slower than was enjoyed in the early part of this millennium.

(For more information about the 2015 Hardlines Retail Report, click here.)

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TORBSA and Castle end Epic relationship

MISSISSAUGA & BOLTON, Ont. — A joint buying arrangement between two competing groups, TORBSA Ltd. and Castle Building Centres Group Ltd., was terminated earlier this year, HARDLINES has learned. The Epic Alliance Buying Group was an umbrella buying organization formed in early 2011 to combine the purchasing power of Castle and TORBSA on some key commodities. However, after just four years, the agreement was quietly dissolved.

“Basically, we decided not to continue the umbrella at this time,” says Bob Holmes, general manager of Bolton, Ont.-based TORBSA, which has 22 members representing 45 stores and annual sales of $400 million. “We’d seen value in it, it had benefits, but the market’s changing.” He adds that TORBSA wants to continue as “a stand-alone business.”

Castle, which is based in Mississauga, Ont., has almost 300 stores representing an estimated $1.72 billion in retail sales nationally.

One other “umbrella” group still exists. Byco was formed in 2012 by Sexton Group, Delroc, and Allroc. Though Allroc ended up leaving that group within months of its formation, Byco is still going strong with its two remaining members.

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TIM-BR MART VP gives tips for connecting with his buyers

TORONTO — TIM-BR MART Group needs vendors that are national in scope, but can effectively serve independent dealers at a regional level, says Randy Martin, vice president of dealer development for the giant buying group.

Martin shared insights on how to do business with TIM-BR MART, and with its hardware distribution business, Chalifour Canada, during a “Meet the Buyers” breakfast recently. He shared the podium with senior buyers and executives from Home Hardware, Canadian Tire, and Taiga.

“We need to ensure vendor partnerships keep us competitive—and by that I don’t necessarily mean the cheapest price,” he added. Other factors that are important for vendors to bring to the table include product availability, exclusivity for TIM-BR MART and Chalifour, and reliable fill rates. Martin noted that most of his dealers are in rural or semi-urban locales, and compete against strong national banners such as Home Hardware.

He stressed the importance of national brands for his dealers, saying this is an important differentiation from the big boxes. During his own recent visits to Home Depot stores, he noticed more private-label products at the expense of national brands.

As for making contact with a buyer from his company, Martin was able to provide some concrete advice for the vendors in the room: “We prefer a phone call to an email. We’re small enough that we’re easy to get a hold of.”

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E-retail turns Home Hardware store around

SAINTE-JULIE, Que. — Michel Robidoux’s Home Hardware in Sainte-Julie, Que., went from the brink of bankruptcy to outgrowing its space and he credits an e-commerce push with the turnaround, according to Les Affaires. Established in 2009, the independent retailer affiliated with the Home Hardware banner last year. During its first few years, the store struggled to make the sales it needed to retain staff and grow.

Robidoux, who managed a Canadian Tire store in Montreal before striking out on his own, turned to e-retail in 2011 and the effect was immediate: that year, income from e-commerce enabled him to expand the store from 2,000 to 3,500 square feet. Next, he opened a second location an hour’s drive away in Acton Vale in the spring of last year.

The merchant points to the cost savings of bulk purchasing direct from the supplier as a primary benefit of e-retail, as well as the platform for a wider audience, noting that “for every customer who walks into my store, I have 100,000 who could see my products on the internet.”

“Retailers tend to think people won’t buy saws or flooring on the internet,” HARDLINES’ own fearless Editor, Michael McLarney, told Les Affaires. “But they’re wrong.”

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FROM THE ARCHIVES: This week in 1995


Our stalwart editor makes his first media appearance, talking on CBC morning radio in Edmonton. His message: Home Depot Canada promotes its service levels as much as it does its low prices, something that Canadian dealers were slow to catch on to. Also: changes at Lansing Buildall and strong sales from Revy in Edmonton. Click here to read these venerable stories!

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CLASSIFIED ADS

VICE-PRESIDENT, MARKETING AND SALES

About Home Hardware Stores Limited
Home Hardware Stores Limited is Canada’s largest Dealer-owned cooperative with close to 1,100 Stores and annual retail sales of nearly $5.7 billion. 

Located in rural St. Jacobs, Ontario, Home Hardware remains 100% Canadian owned and operated. Home Hardware has received designations as one of Canada’s Best Corporate Cultures and Best Managed Companies and is committed to providing local communities with superior service and expert advice.

Responsible to the Chief Executive Officer for developing and executing integrated marketing strategies through to retail execution, driving brand awareness and sales; and, for developing programs and services to provide retail support, for our Dealers.

As part of the Senior Management team, participates in the development and implementation of the corporate strategic plan and key decisions pertaining to strategic initiatives.

Works closely with the Merchandise Department to ensure the right products are marketed to generate the most sales.

Responsible for Dealer growth and expansion.

QUALIFICATIONS:
Post-secondary degree in marketing with Senior Management experience.
Preference to a bilingual candidate.
Strategic thinker with the ability to set vision and to develop and execute plans.
Ability to interpret financial statements, prepare, monitor and present budgets.
General knowledge of hardware, lumber and building material product categories would be an asset, plus insights into consumer and contractor customer segments.
Must reside within proximity of St. Jacobs.

Interested applicants, please submit your resume to Beth White, Recruitment, Human Resources.
hr@homehardware.ca
Phone: 519-664-4720
34 Henry St W, St. Jacobs, ON, N0B 2N0
Deadline: Thursday, July 9, 2015

*While we appreciate all applications received, only those to be interviewed will be contacted.

JUNIOR BUYER

Castle Building Centres Group Ltd., Canada’s Premier Buying Group for Independents, is looking for a Junior Buyer. The position is in our Mississauga office, reporting to the Vice President of National Marketing. The scope will be National, serving Castle’s over 300 members from Coast to Coast.

Previous buying experience is mandatory.

Please direct all enquiries via e-mail to James Jones, Vice President National Marketing, jjones@castle.ca.

CHANNEL MANAGER

Summary:
Reporting to the Vice President of Business Development, the Channel Manager will contribute to driving profitable growth within the group of Richelieu Retail businesses by managing the day to day Channel/Customer specific activities. The position can be based in St. Laurent, Quebec or Kitchener, Ontario.

Key Channel Marketing Responsibilities:
- Work collaboratively with National Account Managers and Regional Managers to develop, execute and track channel and account specific seasonal promotions, off shelf promotions, booking programs and events for each business unit. Planning window 6-12 months out.
- Work collaboratively with Product Managers and General Managers from each Business Unit to manage the profitable growth of all businesses and client base
- Collaborate with Sales and Supply Chain to ensure promotions can be executed on time through normal supply chain work flow.
- Partner with merchandising team to develop packaging/graphics as required and ensure all Brand representations meet corporate standards
- Actively participate in line review development and presentations
- Develop/maintain expert knowledge of customer, market and competitive landscape (in store and digitally) related to the product portfolio of each Business Unit.
- Develop a standard template for communicating to the Sales Teams
- Support the development of annual operating plans by Customer by Business Unit
- Analyze and track POS and develop/maintain market share information.
- Participate in S&OP process as required.
- Participate in marketing and customer specific trade shows as required.
- Support Sales Team with placing digital new product ad features on participating customer websites ( e.g. TimberMart, Castle Building Centres)

Selection Standards:
- College Diploma or University Degree in Business, Marketing or similar field of study
- 5-plus years‘ experience in Channel and/or Product Marketing with a record of demonstrated achievements and leadership
- Self starter, highly organized, able to handle multiple projects, strong attention to detail
- High level of energy and commitment
- Strong communication and interpersonal skills
- Creative and strategic thinking skills, strong analytical and computer skills
- Direct experience with Home Improvement customer base including RONA, Home Depot
- Regular Travel required within Canada, primarily Montreal – Toronto corridor.

Applications can be submitted to jcrews@richelieu.com.

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