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CONNECTING THE HOME IMPROVEMENT INDUSTRY
 
June 15, 2020 | Volume xxvi, #24
  IN THIS ISSUE:
  • More reorg at Home Hardware as veteran merchant Joel Marks retires
  • As its first-ever virtual show takes shape, Orgill to help dealers get ready
  • Lowe’s new Calgary-area DC will be biggest in Western Canada
  • Retailers get involved to respond to Black Lives Matter protests

PLUS: Leadership transition at Taiga as Balog plans retirement, Castle adds dealer in Ontario, CanWel partners with CertainTeed, Marwood’s Peter Rempel retiring, Dollarama’s Q1, North Star pivots from windows to PPE, housing starts and more!

 
 
 
 
More reorg at Home Hardware as veteran merchant Joel Marks retires

ST. JACOBS, Ont. — The announced retirement of merchandising executive Joel Marks continues a trend of change at Home Hardware Stores Ltd. Marks is retiring as vice president of merchandise hardlines after almost 21 years there. Senior LBM merchant Marianne Thompson will step in to handle his role.

“Joel has played a key role on our leadership team since his appointment to vice president in 2015, bringing almost 39 years of experience in home improvement retailing,” said Kevin Macnab, Home Hardware’s CEO and president.

Marks was merchandising director for hardlines at Beaver Lumber in 1999 when that company was acquired by Home Hardware. Home took over Beaver Lumber in the fall of that year and left it to run separately for several months. During that time, Marks was appointed Beaver’s director of merchandising, with all product managers reporting to him.

Over the next year, the Beaver business—and its head offices—were rolled into Home Hardware’s operations in St. Jacobs, Ont. There, Marks worked with Ray Gabel, Home’s legendary senior merchant, until 2015, when Marks took the lead merchandising role from Gabel. As VP merchandise, Marks led the entire buying team, while Gabel took on a new role as senior merchandise advisor, also reporting to Marks.

As a result of Marks’s retirement, Home has named Thompson as senior VP, merchandise, effective June 15. She was formerly VP merchandise for LBM. In this expanded role, she will oversee Home’s hardware merchandise team, in addition to her current LBM portfolio.

The move recalls the doubling up of roles that Marks himself undertook in 2015. He looked after both the LBM and hardware sides of the business until Thompson joined Home Hardware in 2019. She came over from the vendor side, having worked previously as senior vice president of North America sales for JELD-WEN.

The process to identify a successor for Marks is currently underway. Marks continues to work with Thompson on the transition following his retirement on June 12.

 
 
Hardlines
As its first-ever virtual show takes shape, Orgill to help dealers get ready

MEMPHIS — Following the announcement that Orgill, Inc. would move its fall dealer buying market online, the hardware wholesaler has released new details on how the virtual event will be conducted. It’s got a new name, for starters, and a new timeline.

The e-Volution Fall Online Buying Event will be more extended than its live counterpart. It will take place over two weeks, from August 24 to September 4. During that time, retailers will be able to access the event through Orgill.ca (or Orgill.com in the U.S.) to browse buying opportunities like they would at a live event. These include warehouse items and pallet specials, Door Buster Booking, drop-ship event specials from Orgill vendors and a Fall Spotlight area.

“We know there is no way for us to replicate the entire experience of attending our Dealer Market in person in any kind of virtual way,” says Boyden Moore, Orgill’s president and CEO. “In talking with many of our customers about this, we challenged our team to develop an online buying event that could efficiently deliver the buying opportunities for which our dealer markets are so well known.”

Recognizing the importance of networking at a trade show, Orgill is working with its vendors to set up “online booths” whereby they can arrange appointments with specific retailers.

“This new technology is going to make it easy for our customers to tap into all the buying opportunities they have come to expect from our Dealer Markets, but in a more deliberative fashion—and while not having to travel or leave their businesses,” says Jeff Curler, Orgill’s senior vice president of purchasing.

Orgill will use its field sales team of more than 400 sales representatives to help ensure that retailers are prepared to get the most out of the event. “During the two weeks prior to the actual Online Buying Event, we have another two-week window where our sales team will be helping retailers prepare for the e-Volution buying window,” Moore says.

During this preparation period, Orgill’s sales representatives will be able to help customers identify buying specials, set appointments with vendors and prepare their plans for when the buying window opens.

 

Lowe’s new Calgary-area DC will be biggest in Western Canada

BOUCHERVILLE, Que. — Lowe’s Canada has unveiled plans to open a giant distribution centre in the greater Calgary area. The facility, which will be 1.23 million square feet in size, is expected to open in the fall of 2021.

According to Lowe’s Canada, the project is part of its plans to optimize its distribution network to manage growth from both in-store and online business. That includes the buyback of its head office in Boucherville, Que.

The DC will become part of a network supplying more than 470 corporate and affiliated stores under Lowe’s Canada’s different banners. Calgary-based Highfield Investment Group, which manages residential and commercial real estate, has entered into a definitive agreement for the construction of the new DC in the High Plains Industrial Park, in Rocky View County northeast of Calgary. The area is considered a hub in the West for distribution centres and e-commerce fulfillment facilities. The Lowe’s facility will reportedly be the largest leased DC in Western Canada, representing a total joint investment of more than $120 million. Construction is slated to begin this month.

The facility will consolidate the capacity of several existing Lowe’s Canada satellite warehouses and regional distribution centres located in the Calgary market. The retailer currently operates four DCs in the Calgary area: one main DC located at 2015, 60 Street SE in Calgary, and three satellite centres that are used for handling big and bulky items.

The existing Calgary DCs serve both Lowe’s and RONA stores, including RONA affiliated dealer stores. However, the Lowe’s selection moving through these sites is limited. The new, built-to-suit facility will consolidate the three satellite DCs, while providing additional capacity for future growth.

The 60 Street SE distribution centre will not be impacted by this project and will remain in operation. It will be used to manage smaller units and case pick assortments. “Overall, our distribution network capacity will be significantly enhanced, which will allow us to serve more efficiently our corporate and affiliated stores, as well as our customers in the Western Canada region,” says Valérie Gonzalo, a spokesperson for Lowe’s Canada.

The new facility is expected to significantly increase the product selection available for rapid deployment to both RONA and Lowe’s stores in Western Canada.

“This new distribution centre will allow us to substantially enhance our distribution network capacity and serve our Lowe’s and RONA corporate stores and customers, as well as our RONA affiliated dealers, more efficiently throughout Western Canada,” said Gregor Stuart, senior vice-president, supply chain at Lowe’s Canada.

Even Alberta Premier Jason Kenney weighed in. “This is great news for Alberta. The construction of the new Lowe’s Canada distribution centre will create jobs for Albertans when they are needed most,” he said, adding that the project “demonstrates a vote of confidence in our province’s future.”

The consolidation of the Western DCs is another move toward Lowe’s Canada taking greater control of its supply chain. At the end of April, the company acquired its Boucherville head office and distribution centre.

“It is yet further evidence of Lowe’s Canada’s commitment to always better serving our Canadian customers,” Stuart added.

Hardlines
Retailers get involved to respond to Black Lives Matter protests

MOORESVILLE, N.C. — Industry leaders were among those responding to the outcry against incidents of police brutality in the U.S. as well as the outbreak of violence during protests in recent days.

“As the father of a young black male, I can only imagine their pain [and] emptiness,” Lowe’s CEO Marvin Ellison tweeted in reference to the families of victims of police violence.

Arthur Blank, co-founder of Home Depot and owner of the Atlanta Falcons, issued a lengthy statement expressing his disagreement with damage to business properties while affirming that “more must be done to address systemic racism.” Blank has drawn unfavourable attention to his former company for his support of U.S. President Trump. Home Depot, Lowe’s and Walmart stores in various U.S. cities were among those targeted in the riots.

Current Home Depot CEO Craig Menear has weighed in as well, though without the qualifications of the company’s founder. Announcing that Home Depot is contributing $1 million to the Lawyers Committee for Civil Rights Under Law, Menear cited “the senseless killing of George Floyd, Ahmaud Arbery and other unarmed black men and women in our country.”

Going a step further, Lowe’s Cos. announced late last month that it is distributing $25 million in grants to small- and medium-sized businesses owned by members of visible minorities as they navigate reopening.

Ellison, who is the first African American executive to head up two Fortune 500 companies successively (he was previously chairman and CEO at JCPenney), told CNBC that “we just want to continue to not only run a good business but also be a great corporate citizen in all of the communities that we operate in.” The grants are in addition to another $25 million already earmarked for pandemic aid, including $10 million for the purchase of personal protective equipment.

People on the Move

A leadership transition has been put in place at Taiga Building Products. Russell Permann will be appointed co-CEO, effective January 1, 2021. He is currently Taiga’s COO and EVP Operations. Trent Balog, Taiga’s current CEO and president, will step down on December 31 and serve as co-CEO alongside Permann for another year. Effective January 1, 2022, Permann will take over as Taiga’s sole CEO. After that time, Balog, who has been with the company for 26 years, will remain involved in a consulting role for a two-year period.

At Marwood Ltd., Peter Rempel is retiring from his position in technical sales at its Cape Cod Siding division after 20 years with the company. Rempel got his start in the building industry at the age of 13 when he started working for his father’s construction company. His background includes working for MacMillan Bloedel, Goodfellow and Weyerhaueser.

DID YOU KNOW...?

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RETAILER NEWS

MISSISSAUGA, Ont. — Castle Building Centres’ newest member dealer is HBM Metal Roofing and Trim in Havelock, Ont., some 40 kilometres outside Peterborough. Founders Tom Main and Frank Nunes have been in the building industry for more than 40 years. Main’s dealings with home improvement dealers have brought him into contact with several Castle members, so he looked to that group when striking out with his own venture. “What I learned over the years from the many Castle dealers I connected with was that store owners were the decision makers at Castle,” he said. “Their fellowship was genuine, and Castle’s family-based values really stood out to me.”

BOUCHERVILLE, Que. — The 14 Lowe’s and RONA corporate stores in the Greater Toronto Area have joined together to make a $14,000 contribution to William Osler Health System Foundation. The bequest will help the foundation purchase medical equipment, including ventilators and vital signs monitors, needed at its three hospitals as they respond to the ongoing public health crisis.

MONTREAL — Dollarama reported a two percent rise in first-quarter sales to $844.8 million, from $828 million. The increase was attributed to the growth in the total number of stores over the past 12 months and to modest comparable-store sales growth, partially offset by a drop in store traffic and demand for some products. Comp sales, excluding temporarily closed stores, rose 0.7 percent in the quarter. Net earnings fell to $86.1 million from $103.5 million.

SUPPLIER NEWS

VANCOUVER — CanWel Building Materials has entered into a multi-year partnership to distribute CertainTeed Insulation’s glass mineral wool products to the LBM and OEM channels across Canada. CanWel’s national stocking and LTL infrastructure, supported by its logistics and sales services, will supply CertainTeed products to Canadian dealers.

FORT WORTH, Tex. — As part of the settlement of its intellectual property suit against Prosperity Computer Solutions, ECI Software will acquire Prosperity’s assets. ECI offers industry-specific software including POS and enterprise resource planning systems. It owns a number of brands across a variety of categories, including Spruce and RockSolid MAX in the home and building supply category. Prosperity will become part of ECI’s LBM and hardlines (LBMH) Group.

WINNIPEG — The Western Retail Lumber Association has announced the name change of its Buying Show to the WRLA Building & Hardware Showcase. The new name reflects the evolution of the show and of the WRLA’s member businesses, and the goals of attendees. The event will be held January 21 and 22, 2021 in Winnipeg.

ST. THOMAS, Ont. — North Star Windows & Doors has shifted production processes to include the manufacture of personal protection equipment. The company, itself designated an essential business, is partnering with vendors to design and source the materials required to produce protective face shields for front-line workers.

ECONOMIC INDICATORS

The seasonally adjusted annual rate of housing starts for all areas in Canada, excluding Quebec, fell by 20.4 percent in May from April. The SAAR of urban starts decreased by 21.6 percent in May. Multiple urban starts decreased by 27.2 percent while single-detached urban starts decreased by 3.9 percent. Rural starts were estimated at a SAAR of 7,772. Data from Quebec were excluded for the sake of an accurate comparison with the data for April, when construction was suspended in the province for most of the month. (CMHC)

NOTED

TORONTO — The Canadian Hardware & Housewares Manufacturers Association offers a scholarship program to help offset the cost of post-secondary education for children of its members. The student’s parent or guardian must be an active full-time employee with at least one year’s seniority with the CHHMA or a CHHMA member company. For info on past recipients or to apply, click here.

OVERHEARD...

“The company had the opportunity to either renew the lease or exercise its option to purchase pursuant to terms and conditions set at the time of the signing of the lease. It decided to exercise its option to purchase, since it is in Boucherville to stay.”
—Valérie Gonzalo, spokesperson for Lowe’s Canada, on the company’s purchase of its head office and distribution centre after the site’s 20-year lease ran out last year.

 

 

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