Hardlines Weekly Newsletter
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June 20, 2016 Volume xxii, #25

“The true sign of intelligence is not knowledge but imagination.”
—Albert Einstein (German-born theoretical physicist, 1879-1955)

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Lowe’s Canada announces new leadership team

BOUCHERVILLE, Que. — Lowe’s Canada has formalized its leadership team following its takeover of RONA inc. The new lineup includes some RONA veterans and at least one newcomer to the company. The reorganization reflects the company’s efforts to help drive Lowe’s Canadian business strategy with a new operating model focused on growth.

Coming from the RONA side, Alain Brisebois will work closely with the leadership team to define and implement the banner strategies. Guy Beaumier will lead the pro-contractor stores and Reno-Depot. Christian Proulx will lead human resources and communications. Serge Ethier will lead the proximity stores.

New to Lowe’s is Jim Caldwell, who joins effective today and will lead the big box business unit. Most recently, he was president of the Brick Group, Canada’s largest furniture retailer. He also worked for Wal-Mart in Canada. Caldwell will be the senior executive in place in Lowe’s Toronto office.

Finally, Brendan Hughes has moved up from Lowe’s U.S. office in Mooresville, N.C., to lead the alignment of the different banner strategies and head up the project management office and business intelligence.

“Our new structure will allow us to increase our focus on customers, allowing us to better co-ordinate our resources and efforts and to have a maximum impact on the segments we serve,” said Sylvain Prud’homme, president and CEO of Lowe’s Canada.

Titles for each of these individuals had yet to be finalized as of press time. They will all report directly to Prud’homme.

“Each member of the leadership team will play a key role, enabling us to maximize the potential of all of our banners to ensure strong growth across all of our different markets,” Prud’homme added. “Following Lowe’s recent acquisition of RONA, this team of seasoned experts will contribute to the alignment of our two organizations so we can become the number-one choice of Canadians for all their home improvement needs.”

Recruitment is currently under way to select a candidate to lead the administration function, including financial business support, accounting, and legal. 

Lowe’s Canada is now based in Boucherville, Que., and RONA inc. operates as a wholly owned subsidiary. Together, they operate about 535 corporate and independent affiliate dealer stores under different banners, namely Lowe’s, RONA, Reno-Depot, Ace, Marcil, and Dick’s Lumber. In Canada, the businesses have more than 24,000 employees corporately, as well as 5,000-plus employees in the stores of RONA’s independent affiliate dealers.

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Orgill Concept Centre a hotbed for merchandise customization

MEMPHIS, Tenn. — Hardware wholesaler Orgill, Inc. doesn’t offer a specific banner program for its customers, but it takes the business of merchandising very seriously. It will even develop merchandising and layouts for existing customers and for its various regions.

The concepts are generated and laid out in a facility that’s a short drive from Orgill’s headquarters in Memphis. Called the Concept Centre, it is actually a former Milwaukee distribution centre with 240,000 square feet of space. Canadian customers who have attended Orgill’s buying shows in the U.S. will recognize store concepts such as “Kodiak Trail Hardware & Supply,” “North Lake Lumber,” and “Windsor Falls Home Centre” as formats with assortments tailored specifically for Canadian customers.

All those store formats were developed right at the Concept Centre.

The facility is also used for developing planograms for its private-label programs for products sourced through Orgill’s own Worldwide Sourcing channel. And it’s where planograms and merchandising are developed that will be shipped to each of Orgill’s own shows. “We build it, we crate it, and we ship it,” says Philip Walker, senior vice president, merchandising services for Orgill.

And the scale of that operation is something reminiscent of a Rolling Stones concert tour. “At any given dealer market, Orgill will ship up to 116 tractor trailers,” Walker explains. “That’s just to implement the 340,000-plus square feet of Orgill initiatives on display within the one-million-square-foot market.”

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BMR has five-year investment plan that will start with Beloeil, Que., store

BOUCHERVILLE, Que. — Groupe BMR has made clear its mandate to grow its business, under the direction of Pierre Nolet, the newly appointed senior director−business development (see last week’s incredibly enlightening issue!—Editor). Based on its latest investment initiative, that growth strategy will include corporate stores as well as independent member-dealers.

The company is spending more than $1 million on its corporate store in Beloeil. The location, at 215 Brebeuf Street, will benefit from an expanded warehouse and shelter for building materials. The warehouse will be adjacent to the store, to improve access for customers. Work is expected to start in August and everything should be completed in December. The renovation centre will remain open during the work.

The expansion is part of a five-year investment plan by BMR to modernize its corporate stores to meet consumers’ changing needs. BMR is also working with various dealers that currently have development plans of their own.

“This investment will allow us to offer more building materials to meet our customers’ needs,” says Martin Lecomte, vice president of BMR’s retail division. “In addition to expanding our warehouse, we will add a heating system that will allow us to keep a larger selection of materials in inventory, which must be stored at a specific temperature to remain in good condition.”

BMR, now a subsidiary of La Coop fédérée, combines 325 renovation centres and hardware store in Quebec, Ontario, and the Maritimes, as well as on the French islands of Saint-Pierre et Miquelon.

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Canadian Tire catalogue reflects slowdown of bricks-and-mortar in favour of digital sales

TORONTO ― Wow! Canadian Tire’s newly revived print catalogue has been driving—wait for it—the company’s online sales. And that’s just the result the giant retailer was aiming for.

Called the “Wow Guide,” the print catalogue revives a venerable Canadian Tire tradition that was ended nine years ago. The newest iteration was sent to 12 million households in Canada featuring products in a range of categories including outdoor living, sporting goods, tools, and automotive. The Wow Guide reflects a greater focus on digital sales, aimed at driving people to the Canadian Tire website.

According to company executives, that mission was accomplished. Just a week after the book was launched, online sales doubled, and CTR executives say they’ve learned a lot from the program. Another catalogue is planned for the fall.

Canadian Tire is slowing down the development of its bricks-and-mortar properties. With almost 500 Canadian Tire retail sites across the country, the chain is well-stored from a physical standpoint. Going forward, says Dean McCann, EVP and CFO of Canadian Tire Corp., the company is looking for ways to maximize the effectiveness of its existing retail space “and wrap it into e-commerce.”

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