June 13, 2016 Volume xxii, #24

“Few people do business well who do nothing else.”
—Philip Dormer Stanhope, fourth Earl of Chesterfield (British statesman, orator, and wit, 1694-1773)

______________________________________________________________________

______________________________________________________________________

Lowe’s execs visit Ace Canada HQ, affirm support for independents

TORONTO ― Lowe’s is best known for its big boxes, so its commitment to the smaller stores it now owns and serves, through the acquisition of RONA, has come into question. However, a tour this past week by Lowe’s executives to affiliated RONA dealers and corporate store managers throughout Western Canada did much to affirm that commitment.

The junket consisted of Sylvain Prud’homme, president and CEO of Lowe’s Canada; Alain Brisebois, chief commercial officer and executive vice-president; Christian Proulx, senior vice-president of human resources; and Dave Carr, vice-president of retail for Western Canada. First stop was the wholesale hardware distribution business in Winnipeg, Ace Canada (formerly TruServ Canada).

In a separate interview with HARDLINES, Prud’homme stated earlier this month that RONA has a lot of regional expertise and understands how to serve independent dealers. He added that Lowe’s “will continue to invest in the existing RONA team, under Philippe Element, which caters to the independents, and ensure that the team is big enough to support that independent base properly.”

And he had a message for dealers who may be wary of joining a group that also consists of one of their fastest-growing competitors. “Dealers have the chance to be part of the number-one choice for home improvement in Canada. It’s a great time to join and be part of this incredible growth opportunity.”

That message was reiterated in last week’s lunch meeting with the Ace Canada management. According to one source, he told the Winnipeg team, “We bought the network, because we want the network. Ace fits that network.”

back to top

______________________________________________________________________

______________________________________________________________________

BMR hires new dealer development leader

BOUCHERVILLE, Que. — Immediately following the takeover of Groupe BMR by La Coop fédérée, the home improvement buying group and wholesaler pulled right back on efforts to expand its dealer network, including cuts to its dealer development team.

A new hire suggests that could all change. BMR has appointed Pierre Nolet as senior director−business development. Effective July 11, he will report to Pascal Houle, CEO of BMR, and work with Jacques Pelletier, who currently holds the dealer development position. Pelletier will remain with BMR on a part-time basis as a consultant for special projects.

Nolet brings to the job a solid background on the retail side. He purchased his first BMR store in 2000 in Saint-Ferdinand, in the Centre-du-Québec region. He then expanded his business by buying the Plessisville BMR store in 2010, and the Disraëli and Thetford Mines stores in 2012. In 2014, he decided to join forces with the Coop des Appalaches and to head the retail division of the co-operative, which is now known as VIVACO groupe coopératif.

He will focus on the development of the hardware and LBM market and on the business relationships with BMR’s current dealers. Stéphanie Couturier, a spokesperson for BMR, adds that he will indeed have a mandate to develop the market outside Quebec, including opportunities in Ontario to develop the market and network.

And yes, she adds, BMR will actively woo RONA dealers.

back to top

_________________________________________________________________

Castle buying expo a winning formula for dealers and vendors alike

HUNTSVILLE, Ont. — Take 50 vendors and put them in a room with 50 dealers, add a timer and a bell, and you’ve got what might be the perfect model for a buying event.

Castle Building Centres Group puts on three of these “speed-dating” events: in Atlantic Canada, Ontario, and British Columbia. The Ontario event was held last week at Deerhurst Inn, a toney resort in the province’s Muskoka Lakes region, about 225 kilometres north of Toronto.

According to Ron Ishmael, senior hardlines buyer at Castle, each vendor gets 10 minutes with each dealer, and over the course of two days—interspersed with golf and other recreational activities—each vendor gets time with every single dealer in attendance. And, starting this year, the ordering can all be tracked digitally, using either a tablet or laptop.

Like a regular buying show, this one features show specials, a new product section, and even palette buys. “It’s putting the vendors and the members together,” says Ishmael, adding that the 10-minute time slot is very productive, as it keeps both sides focused on the presentation at hand. “We try and make it better for both the vendors and the members.”

Vendors interviewed by HARDLINES were equally enthusiastic and more than one observed that the costs and time involved in making sales calls to 50 dealers would be prohibitive, making this event a perfect fit for them. The event is even more remarkable for the fact that representation on both sides is typically the top people from each company.

The Ontario expo serves both Ontario and Quebec dealers. According to Castle President Ken Jenkins, with 30 Castle dealers in Quebec, that province will eventually have the critical mass to warrant an event of its own.

“The important piece for us is that the dealers are seeing every single vendor,” Jenkins says.

back to top

______________________________________________________________________

____________________________________________________________________

RONA team remains largely in place as Lowe’s does its due diligence

BOUCHERVILLE, Que. — The departure last week of one of RONA’s top executives drew attention to the changes happening in Boucherville as the company awaits the shakeout from the takeover by Lowe’s.

In fact, not much has changed. Rodier’s departure was a singular event, and not part of any larger restructuring. The only other senior people to leave were CEO Robert Sawyer and CFO Dominique Boies, whose departures had been planned in advance of the deal closing.

Christian Proulx, senior vice president of human resources for RONA, says the mood is positive at the RONA offices, even if it’s tinged with concern for the future. “Naturally, there is some anxiety of the unknown, but we’re looking forward to the future,” he says. “It’s exciting.”

Proulx points out that the head of Lowe’s Canada, Sylvain Prud’homme, is now CEO as well as president of Lowe’s Canada. Prud’homme has told the organization that he needs 60 days to analyze the RONA business before making decisions about leadership, structure, and buying teams. “We’re definitely in the process of looking at the business and creating a model for having these two businesses work together,” says Proulx.

He does not expect Lowe’s to come and slash management and other positions. “This is quite important and one of the key messages we are sending to our people: this is not a deal based solely on synergies. It’s deal based on growth.”

As for Rodier’s departure, Mario St-Louis, VP operations for RONA, is covering his role on an interim basis. St-Louis will be responsible for the entire retail side of RONA for now. Within the RONA buying team, the only confirmed senior departure is by Charles Gregoire-Beliveau, who has moved over to Groupe BMR (see PEOPLE section).

“Besides that, there’s no change. We’ve told people, until something is communicated, everyone will continue doing the same jobs unchanged.” He says another 40 senior managers remain on board.

back to top
_____________________________________________________________________

Gino DiGioacchino, formerly chief merchandising officer at Walmart Canada, left last week. He started at Walmart Canada in 2011, after six years at Home Depot Canada, most recently as VP of merchandising. His replacement is Bertrand Loumaye, who was most recently SVP supercentre reinvention and prototype at Walmart Canada. DiGioacchino’s move follows the departure of Mark Coffey, Walmart Canada’s senior vice president-merchandising operations, a few weeks earlier.

Charles Gregoire-Beliveau has left RONA, where he had been merchandise director for seasonal, heating, electrical, and horticulture, and joined Groupe BMR as purchasing director−retail.

Globe Union has announced the promotion of Janet Oh to president–North American Private Brands, reporting to Charles Frankel, group chief commercial officer of Globe Union Services, Inc. As president, Oh, who joined the company in 2003, will have commercial responsibility for all of the company’s North American private-brand business channels, including plumbing wholesale, retail, and importers, as well as maintaining responsibility over big box and club channels.

Andrew Jessome has been appointed director of sales for Atlantic Canada at Metrie. A native of Dartmouth, N.S., he started with Metrie more than 16 years ago as territory manager for New Brunswick and Prince Edward Island. Most recently, he served as sales manager in the company’s Brampton, Ont., location. Jessome will relocate to Nova Scotia over the coming weeks. (andrew.jessome@metrie.com)

back to top
_____________________________________________________________________

CLASSIFIED ADS

HOME HARDWARE STORES LIMITED
RETAIL SALES AND OPERATIONS MANAGER – NORTHERN ONTAIRO

About Home Hardware:
Home Hardware Stores Limited is Canada’s largest Dealer-owned cooperative with close to 1,100 Stores and annual retail sales of nearly $5.8 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.

Job Description:
Responsible to the Director, Retail Operations Northern and Eastern Ontario for the implementation of Home Hardware’s strategic growth plan, as well as, developing, expanding and supporting company programs in the area by providing store assistance, recommendations and standards, by encouraging profitable store expansion and growth, by seeking Dealer and company growth opportunities and initiatives in both new and existing markets and across all banners, and by making recommendations concerning product selections.
Assists and educates new and existing Dealer-Owners.
Prepares and submits quarterly industry updates and objectives.
Evaluates stores on an annual basis.
Conducts Sales and Dealer meetings.
Visits Dealers on a scheduled basis providing guidance and assistance, serving as a liaison between them and Home Office and building strong valuable relationships with Dealer-Owners and store Staff.
Maintains an up-to-date knowledge in retail methods and systems.
Coordinates occasional direct ship buys between area stores.
Assist with special projects as requested.

Qualifications:
Results-oriented individual with a strong understanding of retail operations and the strategy needed to succeed in a highly competitive market.
Must be self-motivated, results-oriented and organized, with excellent time management skills.
Post-secondary education or equivalent.  Business financial knowledge would be an asset.
Retail or sales experience at a supervisory or managerial level.  Home Hardware experience preferred.
Willingness and flexibility to travel extensively and work varying hours.
Excellent communication and leadership skills.
Knowledge of Account Management an asset.
Good computer skills including MS Outlook, Word and Excel.
Successful applicant must be willing to locate centrally within the area.
Bilingual candidate an asset.

Interested applicants, please submit your resume to:
Dayna Weber, Recruitment, Human Resources
hr@homehardware.ca

Fax: 519-664-4711
Phone: 519-664-4975
34 Henry St W, St. Jacobs, ON, N0B 2N0
Deadline:  Monday, June 13, 2016

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

____________________________________________________________________