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CONNECTING THE HOME IMPROVEMENT INDUSTRY
June 3, 2019 | Volume xxv, #23
IN THIS ISSUE:
  • Amazon buyers were walking the National Hardware Show: why you should care
  • Top home improvement retailers look for ways to deliver big online orders
  • Home Depot Foundation ups investment in preventing youth homelessness
  • Lowe’s CEO Marvin Ellison reflects on his first year on the job
PLUS: Drummond BMR celebrates 60th, Canadian Tire and wearables, Walmart credit card in Quebec, Stanley B&D breaks ground on new facility, Tom Lee retires from Rockwool, Costco sales, Craftsman plant, U.S. home sales and more!
Amazon buyers were walking the National Hardware Show: why you should care

LAS VEGAS — During the National Hardware Show, held last month in Las Vegas, Hardlines ran into lots of buyers from retailers around the world. But one retailer was on the show floor in force, with buyers representing a range of hardware and building materials.

Hardlines spoke with one Amazon buyer, a senior vendor manager who asked to remain nameless as he wasn’t authorized to speak on behalf of the company. He and about 14 members of his buying team were walking the show to meet with existing suppliers and connect with some new prospects. At least two other divisions from Amazon’s buying teams were present, as well, he said, with a similar number of people in each contingent.

Many of them, the buyer said, have been coming to NHS for years. He admitted it’s an important show for him. Amazon’s presence at NHS is a clear indicator of the company’s commitment to the home improvement channel.

The online seller has been aggressively adding private labels of its own in a range of product categories. These brands include lines that are sold exclusively through Amazon and brands that are owned outright by the company. While the predominant areas for this private-label strategy are tech, clothing and accessories (according to one online source, 90% of the batteries sold on Amazon are the company’s own brand), it’s also dipping into home furnishings and décor.

If the dozens of buyers in Las Vegas last month offer any indication, hardware and building products is clearly in the retail juggernaut’s sights for further expansion.

Top home improvement retailers look for ways to deliver big online orders

TORONTO — In its ongoing effort to improve service to one of its key customer segments, Home Depot Canada is continuing to work with its pro customers to get the materials they need to their jobsites.

Pam O’Rourke, VP merchandising at Home Depot Canada, explains that the company is trying out more ways to provide the large job lots that contractors and builders require—and get those large lots to their jobsites. And she notes that this strategy is being expanded to new products.

As Home Depot Canada’s online side grows, the need to get bigger products shipped is also a challenge the company is tackling.

“We know that more than 77% of our in-store customers start their purchase journey at home. With 43% of online purchases bought online and picked up in stores in the first quarter of this year alone, we know that there cannot be a gap between the physical and digital experience.”

Home Depot Canada is not alone in its quest to get big products right to the customer’s door. Canadian Tire is banking on delivery from store to home as a way to get big items that last mile cost effectively, given the large number of stores it has. “We see deliver-to-home really setting us apart when it comes to large items and bulk,” said CEO Stephen Wetmore.

“Canadian Tire boasts 500-plus stores and 12 million square feet of warehouse space within a 15-minute drive of most Canadians and almost all of our dealers are acting as local carriers for ship to home―with a strong advantage here in owning the last mile.” While Canadian Tire is focused mainly on consumers, Home Depot Canada is aggressively trying to grow its sales to contractors. Finding new and cost-effective ways to get large orders delivered is important. “We are looking at big and bulky,” O’Rourke noted.

That larger order should also be part of what O’Rourke views as a retail fundamental, finding those add-on sales. In today’s market, she notes, it’s not enough to sell just a product. Staff must think in terms of selling the entire project.

Home Depot Foundation ups investment in preventing youth homelessness

OTTAWA ― The Home Depot Canada Foundation is a key part of Home Depot Canada’s identity and how the giant retailer operates in this country. Through an initiative called the Orange Door Project, the charitable organization pours money and resources into alleviating and preventing youth homelessness and recently announced a major expansion of its contribution.

The foundation started in 2013 with a $10 million, three-year commitment to help homeless youth. In 2016, the company doubled that commitment to $20 million over two more years. Most recently, Home Depot Canada expanded its support with a further commitment of $30 million to carry the foundation through to 2022, representing a total of $50 million.

In addition, Home Depot Canada staff collectively donate about 60,000 volunteer hours to community projects across the country.

“As one of the fastest-growing segments of the homeless population in Canada, we know that many young people first experience homelessness in their early teens; we don’t think that’s right,” says Pam O’Rourke, who, in addition to being VP of merchandising at Home Depot Canada, is chair of the foundation’s board.

She notes that young people make up one of the fastest-growing segments of the homeless population in Canada, with many individuals ending up on the streets as young as their early teens.

The foundation cites research that indicates early intervention is critical to breaking the cycle of chronic homelessness later in life. Through its expanded commitment, the foundation will fund research to better understand the causes and conditions of homelessness. Direct involvement with homeless youth involves a range of services, including providing life-skills training and improved housing options for more than 450 community agencies across the country.

“By working with our sector partners and youth directly impacted, we can better understand the issues they face, make the right investments in the right places and truly make an impact,” O’Rourke adds.

(For more information, visit: www.orangedoorproject.ca.)

Lowe’s CEO Marvin Ellison reflects on his first year on the job

MOORESVILLE, N.C. — In an interview with North Carolina Biz News Wire, Lowe’s CEO Marvin Ellison looks back on his first year at the helm of the U.S. big-box home improvement chain.

“When I came to Lowe’s, I quickly saw that the existing strategy was too complicated,” Ellison says. “It was hard for our leaders to prioritize and align, and it was hard for our associates to understand the role they played in Lowe’s success.”

Shortly into his first year, Ellison began to eliminate non-essential business initiatives he said didn’t benefit Lowe’s. Among them were Resolve, a contracting recommendation network, and its Iris line of smart home products. At the time, Ellison said the decision would enable Lowe’s to “intensify [its] focus on the core retail business.”

This move enabled Ellison and his team to “allocate Lowe’s capital toward the company’s products, customer-service experience and technology that removes friction” for customers, according to the article.

The report notes that since Ellison became Lowe’s CEO, the company’s stock has risen nearly 17%.

Ellison also commented on the importance of striking a balance between pro and DIY customers. “I’m also committed to gaining back our valuable pro customers without losing the qualities that make us a great place to shop for DIY customers.”

Ellison became CEO of Lowe’s in July 2018, after previously serving as CEO of J.C. Penney Co and as an executive vice president of Lowe’s rival, The Home Depot.

People on the Move

Sean MacCormack has been named chief financial officer of Home Hardware Stores Ltd., effective June 12. A 25-year finance veteran of Canadian retail, MacCormack’s background includes experience in retail food, pharmacy and general merchandise. MacCormack replaces outgoing VP Finance Grant Knowlton, who is retiring after 30 years at Home Hardware.

At Rockwool, Mike Goyette has been appointed director of sales, commercial and residential, Canada starting June 10. He will report directly to Brian LeVoguer, vice-president building insulation. Goyette joined Rockwool (then ROXUL) in 2009 and replaces Tom Lee, a 28-year veteran of the industry, who joined Rockwool in 2007. He has retired effective June 1. Henkel has appointed Mike Olosky as regional president for North America and regional head of adhesive technologies for the Americas. As North American president, Olosky succeeds Jerry Perkins, who retired from the role last year. Based out of the Henkel’s adhesives office in Irvine, Calif., Olosky will continue to play a global role in the direction of the company’s adhesives business.

ECONOMIC INDICATORS

Sales of existing U.S. homes dropped in April, slipping 0.4% to a seasonally adjusted annual rate of 5.19 million units. The decline was the second month in a row, following on March’s rate of 5.21 million units. Compared to a year ago, sales were down 4.4%, the 14th consecutive annual decline. (National Association of Realtors)

DID YOU KNOW...

...that we have a monthly newsletter to help retailers and store managers run their businesses better? Our sister publication, Hardlines Dealer News, is sent to thousands of dealers and managers across Canada every month (as well as to smart suppliers who want to stay in the know). To get your own free subscription, just click here!

RETAILER NEWS

MARMORA, Ont. — Drummond Building Supplies celebrated 60 years of history this past weekend. The third-generation family business was founded in 1959 and is now run by sisters Peggy and Debbie Drummond. They joined BMR in 2006 and became Outstanding Retailer Award winners in 2010. They attribute their success to a recent expansion that brings the store to more than 10,000 square feet and to “our passion and hard work, but also to our faithful customers, with whom we have maintained a special relationship from the very beginning. They are the ultimate reason for our existence.”

MISSISSAUGA, Ont. ― Walmart Canada is extending its Walmart Rewards Mastercard to Quebec. The credit card allows customers to save by earning Rewards Dollars on their purchases. Unlike points, these dollar equivalents allow for simple tracking of how much the user can redeem.

TORONTO ― Canadian Tire Corp. and Myant Inc. are partnering to introduce wearable computing and smart textiles to Canadian Tire’s banners. Toronto-based Myant’s proprietary fibre-based innovations will be added to Helly Hansen, Woods and Dakota products. Myant’s SKIIN Textile Computing platform integrates biometric sensors, heat generation technology and electroluminescence into clothing. It allows apparel and footwear to light up at night for improved visibility and to connect with smart devices to record performance and health information from heart rate to blood oxygen levels.

ISSAQUAH, Wash. ― Costco Wholesale Corp. had net sales of $11.6 billion in April, an increase of 7.3% from $10.81 billion last year. For the 35-week year to date, net sales reached $99.89 billion, up 8.3% from $92.24 billion. Comp sales company-wide were up 5.4% for April, and up 6.6% year to date. Canada was slower, with a comp decrease of 1.9% in April and an increase of only 1.1% year to date. Not including gasoline sales, Canadian comps were up 2.3% and 5.4%, respectively.

SUPPLIER NEWS

SADDLE BROOK, N.J. — Arrow Fastener Company kicked off its 90th anniversary at the 2019 National Hardware Show with the introduction of several new tools. Arrow also previewed a limited edition of its T50 staple gun, stamped with a commemorative 90th anniversary seal, which will be available at retail this summer. Morris Abrams founded the company in 1929. At first he sold staples for staplers currently on the market, but by 1940, he had received his first stapler patent. The T50 was introduced in the early 1950s.

NEW BRITAIN, Conn. ― Stanley Black & Decker announced its plans to open a manufacturing plant for its Craftsman line in Fort Worth, Tex. Groundbreaking on the 425,000-square-foot facility is set to begin this summer, with a scheduled completion in 2020. The company said the new factory will create 500 new jobs. Stanley Black & Decker acquired the Craftsman line in 2017 from Sears, which retained the right to carry a selection of Craftsman products under the deal. Stanley filed suit against the department store chain in March, alleging Sears violated the agreement by launching a new Craftsman line and touting itself as “the real home of the broadest assortment of Craftsman” in its marketing.

NOTED

Each year, Arrow Fastener processes 600 million metres of wire into nearly 35 billion staples—enough to go around the world 15 times—with wire to spare.

Classified Ads  

Career Opportunities Available!

Looking to kick start your career? Check out these excellent positions with both formidable and entrepreneurial employers on the Jobs page of our web site, www.wolfgugler.com.

  • Group Merchandising Manager, Ottawa
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For a confidential exchange of information, call Wolf at 888-848-3006 or email him at wolf@wolfgugler.com. Wolf Gugler Executive Search, offices in Canada and the US.

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 over $6 billion.

Located near Kitchener/Waterloo, Ontario, Home Hardware remains 100% Canadian owned and operated.  Home hardware has received designations as one of Canada’s Best Cultures and Best Managed Companies and is committed to providing local communities with superior service and quality advice.

MERCHANDISE MANAGER – HAND TOOLS/SPORTING GOODS (#702TL)

MERCHANDISE MANAGER – GENERAL MERCHANDISE (#702GM)

Responsible to the Director, Merchandise Hardlines for executing on the plan to buy and the plan to sell for the specific portfolio.

Develop and maintain a productive and profitable product assortment in the Dealer Support Centre to drive retail sales, as well as managing vendor direct product.

Negotiate with vendors to support corporate initiatives and meet sales and margin targets and manage ongoing vendor relationships.

Develop and execute successful promotions and support marketing initiatives.

Effectively lead and motivate the hand tools/sporting goods team to achieve objectives.

QUALIFICATIONS:

College/University Diploma/Degree in Business and/or Purchasing.

Previous experience as a Merchandise Manager or buyer preferred.

Excellent communication, planning, organizational and negotiating skills.  High energy with an entrepreneurial attitude.

Willingness to travel and work extended hours.

Interested applicants, please submit your resume to Dayna Weber, Recruitment, Human Resources at hr@homehardware.ca. Full posting available at www.homehardware.ca. Phone: 519-664-4975 34 Henry St W, St. Jacobs, ON, N0B 2N0

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

We will accommodate the needs of qualified applicants on request under the Human Rights Code in all parts of the hiring process

Looking to post a classified ad? Email Michelle for a free quote.

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