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June 30, 2014 Volume
xx, #26
“Few people do business well who do nothing else.”
—Philip Dormer Stanhope, fourth Earl of Chesterfield
(British statesman, orator and wit, 1694-1773)
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TIM-BR MART dealers surprised by Air Miles at Kent stores
SAINT JOHN, N.B. — Air Miles are now available at Kent Building Supplies in Atlantic Canada, a move that’s got a number of TIM-BR MART dealers upset. For the past 20 years, Air Miles has been an exclusive of the dealer-owned group in the retail building materials channel. (RONA has Air Miles, as well, but is considered a chain, versus TIM-BR MART’s status as a group of independents. Actually, I’m not sure myself how that works. —Editor)
But starting last Tuesday, Kent launched its own Air Miles program with heavy promotion and a contest that will give away a total of 250,000 points through its 40-plus stores. TIM-BR MART has some 70 dealers of its own in Atlantic Canada, many of them in direct competition with Kent stores.
Exactly one year ago, Air Miles was introduced at Irving gas stations in New Brunswick, and the program appears to have rolled out across other Atlantic markets over the past six months. Observers speculate that Kent, another company owned by the Irvings, was made part of the Air Miles deal, as well, as an add-on to the gas stations.
Air Miles, owned and operated by LoyaltyOne, typically announces its new partnerships in a press release. No press release for the Kent deal could be found online or on the company’s website. Nor did anyone from LoyaltyOne respond to calls from HARDLINES before press time.
Air Miles is considered an important program for the dealers. Not only does it give them a value-added component to their sales to both DIYers and contractors, but helps manage receivables, as the Air Miles can’t be collected until invoices are paid.
“I’m very upset and frustrated about it, to say the least,” says Brad Hickey of Hickey’s TIMBER MART in St. John’s, whose biggest competitor is Kent. Access to the Air Miles program was a big part of his decision to join TIM-BR MART Group, he says. “I saw it as a fantastic competitive advantage to offer something of more value. Now it’s just a cost of doing business because everybody’s got it.”
A further concern among dealers is whether the Kent program will open the door for other large independents to get Air Miles. Kent is a member of Independent Lumber Dealers Co-operative (ILDC), whose members include Central Supply in Nova Scotia.
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Home Hardware goes high-tech at Nova Scotia DC
ST. JACOBS, Ont. — A major investment in new technology has been launched at Home Hardware’s distribution centre in Debert, N.S. There, the company has introduced what it has coined its “Warehouse Management System,” a proprietary logistics management developed by Manhattan and Associates, a third-party logistics service provider. It’s part of a larger system called Merchandise in Motion. MiM includes a transportation management system and is designed to streamline the supply chain, including everything from product orders to delivery.
This is the first of Home Hardware’s three DCs to get the new system. According to Home, the facilities in Wetaskiwin, Alta., and St. Jacobs, Ont., will get the systems next, though no timeline was given.
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Orgill is looking for Canadian vendors
TORONTO — Orgill, the giant U.S. hardware wholesaler that has been expanding its customer base in Canada in recent years, is looking for more domestic suppliers. At a recent breakfast seminar hosted by HARDLINES, the company’s senior vice president of merchandising and marketing, Brett Hammers, spoke with a group of Canadian vendors.
Orgill already has relationships with 144 domestic vendors, he said. And many of them, he added, have managed to replace some of the wholesaler’s existing suppliers. Orgill now has 55,000 SKUs that are Canadian compliant, and the company’s product ranges break down as follows: 32% hardware, 36% home centre, 21% pro, 8% farm, and 3% other.
As for what’s hot, “The fastest growing segment is actually in the farm business,” he pointed out.
Hammers explained to the group that Orgill does not support a banner of its own, but instead supports independent dealers under their own banners. Growing the Canadian business is a priority for the company, which already has customers in some 60 countries worldwide. “We’re investing heavily on the people side of it, with 12 Canadians in Canada supporting our presence here.”
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Sears offers smart devices to run homes
HOFFMAN Estates, Ill. — Sears in the U.S has recently introduced “Connected Solutions,” experiential shops that bring together assortments of smart, connected home and personal automation products. For example, a customer could program his garage door opener to notify them by text when the door is open and closed.
The connected solutions industry is projected to generate hundreds of billions in sales over the next five years.
“Many of our [customers] are aware of ‘smart’ devices or ‘home automation’ products but don’t fully understand how they are used to make their lives better,” says Craig LaRosa, divisional vice president, in-store experience and design for Sears Holdings in a release. “Connected Solutions offers an entertaining and interactive environment to learn about the products and develop solutions that are relevant to them.”
Products available so far include home automation, including thermostats, smart locks, lighting, switches and sensors; mobile phones, tablets and other connected devices; smart watches; fitness products such as treadmills and heart rate monitors; home monitoring cameras; and baby monitors.
Users can find a cross-category assortment of smart offerings for automotive, electronics, fitness, home, and mobile devices in the 1,700-square-foot Connected Solutions shops that are being piloted at three Chicago-area locations and online.
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Classified Ads
Fusion Products Limited
General Manager
Fusion Products Ltd. is a leading supplier of landscape lighting to North America retailers, with head office in Mississauga, Ontario. We are seeking a dynamic individual to fill this role.
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Experience required:
- Post secondary education in Business and/or equivalent experience,
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- desire to exceed customer expectations
Competitive compensation package is offered. To apply for this exciting opportunity, please send your resume and cover letter to: zaf@fusionproducts.ca
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