RONA shake-up reflects focus on stores

BOUCHERVILLE, Que—A recent spate of layoffs and reassignments is just the latest move by RONA inc. to restructure its management teams, which have grown with each new acquisition. According to Sylvain Morissette, RONA’Äôs national director of corporate communications and public relations, the changes are part of an overall strategy by the company to get management teams closer to the stores—and store personnel. A number of jobs were affected in RONA’Äôs branch offices in Surrey, B.C., and Toronto (Etobicoke). In Surrey, six people were terminated, while another 12 were given new roles, either in stores or on the road supporting the stores. In Toronto, another six jobs are gone, mainly in marketing and human resources. The HR duties for Ontario stores have been turned over to Anthony Kocsis, while HR for admin and head office will come out of Boucherville head office. The merchandising team remains intact in Toronto, but the marketing side has been downsized by five people (plus two others in Boucherville), leaving Mark Hindman in place as vice-president of Olympic programs and local marketing. He has three directors reporting to him: Josˆ©e Massˆ© and Danielle Laferriere in Boucherville, and Russ Jones on the West Coast. Despite the changes, Morissette says both Surrey and Toronto will remain in operation.

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Preview of new Canadian show attracts media, new exhibitors

TORONTO—Canada’Äôs newest hardware show hosted a product "preview" last week to generate media interest and give exhibitors at the upcoming National Hardware Show Canada a chance to showcase their wares. Held at the swank Carlu in downtown Toronto, it featured more than two dozen companies from both Canada and the U.S., and was attended by some of the country’Äôs major media outlets, including Canadian Living magazine, the Toronto Star, Globe and Mail, Ottawa Citizen, City TV, HGTV, and, of course, the stalwart team from Hardlines (hey, c’Äômon, there was free food—Michael). The promotion is just one way the show’Äôs organizers, Reed Exhibitions, want to ensure that this new show makes an impact. According to Reed’Äôs Robert Cappiello, who revived interest in the National Hardware Show in the U.S. when he moved it from Chicago to Las Vegas and tied in other events with it, the same formula can spell success in Canada. NHS Canada will take place Oct. 17-18, 2006 at the Toronto Congress Centre. So far, the numbers appear to back him up. The new show has already signed more than 100 exhibitors filling 20,000 square feet of space. By comparison, he noted, the former Canadian hardware show held two years ago was only 17,000 square feet in size when it gasped its last. In addition, more than 3,000 delegates have pre-registered for the show already. NHS Canada is being held in conjunction with Garden Expo/Florist Expo, an existing trade show put on by Landscape Ontario. Both shows combined, said Cappiello, will total about 90,000 square feet and feature some 500 exhibitors. For more information about the new show, click here. NHS Canada is also co-locating with the Incredible Hardlines Conference, which is moving from its traditional September dates to Oct. 16-17, overlapping with the new show. Find out who’Äôs speaking at this year’Äôs Conference by clicking here.

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TruServ pursues multi-bannered approach

TORONTO—In an age where many retailers are trying to make one brand represent a number of offerings, how does a retail group with a range of different brands distinguish among them’Äì-and support them? That’Äôs the challenge facing TruServ Canada.Based in Winnipeg, the dealer-owned co-op wholesaler supports True Value Hardware stores, V&S Variety, and Country Depot farm and hardware outlets. Now, within a new alliance with CanWel, Hardware Division, TruServ’Äôs retail support services provide programs and product to PRO stores, as well. Tony DiEmanuele, vice-president, business developmentand growth for TruServ Canada, sat on a panel recently at the Retail Council of Canada’Äôs annual convention. There, he discussed the value of a range of brands, sharing the spotlight with Anna Martini, president of Groupe Dynamite Inc., which owns a number of fashion apparel chains. DiEmanuele cited two key challenges to managing multiple banners: presenting a similar quality of retail experience in each store, regardless of location; and keeping the back end operations streamlined to maximize efficiencies, while serving those distinct retail regions and banners. But it can’Äôt all be done at head office. The dealer-owners have to be willing to take ownership of the brand, he says. "We try and build a passion for the brand."

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Wal-Mart goes big on home décor

BENTONVILLE, Ark.—This may be the most important news clipping to catch our attention so far this year. Wal-Mart is getting smart about home dˆ©cor sales. A new department, called "Total Home", is being tested in 1,800 stores. According to Home Textiles Today, the new department moves a number of the dˆ©cor categories into one display, relocating them to the front of the store for maximum impact. The goal, according to a Wal-Mart executive quoted in the article, is to create "a destination for the home". The new initiative ties in with Wal-Mart’Äôs efforts to go upscale to appeal to a more affluent customer than it typically attracted in the past.

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New study predicts continued growth in U.S. housing

CAMBRIDGE, Mass.—Over the next decade, household growth in the United States is projected to expand by 14.6 million, versus 12.6 million in the previous 10 years, according to the annual "State of the Housing Market 2006", released last week by the Joint Center for Housing Studies at Harvard University. In that study, the Joint Center notes that homeownership dipped a bit in 2005, to 68.9 million people from 69.0 million in 2004. Affordability played a key role, in not only who bought homes, but how they were financed. The number of households that are spending more than half of their incomes on their housing jumped by 1.9 million, to nearly 16 million. Interest-only mortgages, which were all but unheard of a few years ago, accounted for 20% of the total dollar value of mortgages and 37% of all adjustable-rate mortgages written last year. The Joint Center says that the "greatest threat" to the housing market would be "a precipitous drop in housing prices," which last year rose 4.4%, to $240,500 for single-family homes and 9.4%, to $219,000 for existing homes. While sales incentives to stimulate lethargic buyer demand have become rampant in the U.S. in recent months, The Joint Center still does not project that there would be a significant’Äîi.e., more than 5%’Äîdrop in overall home prices this year.

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