Hardlines Weekly Newsletter
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March 17, 2014 Volume

xx, #11

“Even if you fall on your face, you're still moving forward."

— Victor Kiam (American entrepreneur and former owner of the New England Patriots football team, 1926 – 2001) ______________________________________________________________________ Cologne Fair remains a key international destination

COLOGNE, Germany — The gradual recovery in the Eurozone, and especially in Germany, is reflected in the attendance—and energy—at this year’s International Hardware Fair. The advantage of this show is its international scope: 80% of exhibiting companies are from outside Germany (up from 60% a decade ago). Cologne offers a vibrant showcase for new products and packaging from around the world. And, with some 50,000 delegates expected again this year, it is by far the largest show for this industry in the world. It’s held every two years and most exhibitors HARDLINES spoke with agreed that attendance was up over the last show in 2012. Interest among delegates is also considered more positive: countries such as Spain, which was one of the hardest hit by the economic downturn in the Eurozone, are expecting modest positive growth this year. That outlook is translating into orders. However, Canadian buyers were woefully absent this year. Aside from a team of Canadian Tire buyers, who participated in an open to buy event and were going to take some store tours while in Europe, the only other retail buyers from Canada that we could confirm were individuals from Princess Auto and Réno-Dépôt. On the other hand, a number of Canadian suppliers were present, searching for new products, reaffirming relationships with existing suppliers, and looking for new relationships. These included The Mibro Group, Vancouver Tool, SuperRemover, Techniseal, Task Tool, ITW, and Exchange-A-Blade. The increases seen at this year’s show come despite the challenges facing trade shows everywhere: falling attendance as consolidation occurs among retail customers, even as world economies struggle to return to pre-recession levels. Nevertheless, Cologne, with its global diversity and sourcing opportunities, remains an important destination, one that Canadians—vendors and buyers alike—are remiss to overlook. (Next week: cool stuff we saw at the Cologne International Hardware Fair. Stay tuned! —Michael)

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RONA EVP gives straight talk on vendor relations BOUCHERVILLE, Que. — A RONA executive gave an update on the company’s relations with its vendors at a recent breakfast meeting here. The event, hosted by the Canadian Hardware and Housewares Manufacturers Association, provided a forum for RONA’s new executive vice president and chief commercial officer, Alain Brisebois, to inform suppliers of the progress his company has made to reorganize and operate more efficiently. The presentation was well timed, as vendors have been feeling financial pressure as the giant wholesaler and retailer turns itself around. Brisebois spoke with a welcome frankness, saying “Things that need to be fixed will get fixed. Things that are good, we are going to keep.” He said the company had expended too much effort in recent years developing its private labels, which eventually accounted for more than 25% of the company’s mix. That is going to change. “We will keep private label. We’ll have much fewer SKUs—with better quality—where it makes sense.” At the same time, he expressed a renewed commitment to national brands, adding that the buyers’ decisions will not be Quebec-centric. “Our goal is to get the right brand, the right size, and the right price for every part of the country.” As the company consolidates suppliers, it will reduce what Brisebois called “erratic buying.” While RONA will always insist on the best pricing available, ordering will not be based solely on year-over-year metrics. “We must also rely on good business sense to manage our inventory.” Brisebois also told vendors that they will no longer be faced with complicated, multi-page, multi-year agreements. Instead, count on RONA to negotiate simple contracts that will extend, with some exceptions, for just a year. He stressed that his company wants to stay at the forefront of innovation and challenged suppliers to support that. “We are seeking innovation. We are seeking new suppliers. We want a ‘wow;’ we want it now.”

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HARDLINES hosts international party at Cologne Fair

COLOGNE, Germany — The world gathered last week in Cologne for the International Hardware Fair, where delegates came to meet new buyers and find new business contacts. As in years past, the best party at the fair was the Canada Night International Reception, hosted by HARDLINES and sponsored by Koelnmesse, which owns and operates the world’s largest trade show for hardware and home improvement. Among the attendees at the bash were buyers from Canadian Tire, Orgill, and Princess Auto, as well as guests from the UK, Spain, Australia, Italy, Portugal, and Germany. The high point of the evening came when the party’s hosts, Beverly and Michael, led the group in a rousing rendition of “O Canada.”

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Survey reveals hottest outdoor design trends for 2014 WASHINGTON — Consumer demand remains strong for attractively designed residential landscapes that are perfect for entertaining and relaxing, according to the 2014 Residential Landscape Architecture Trends Survey conducted by the American Society of Landscape Architects. The survey also shows continuing popularity for both sustainable and low-maintenance design. Landscape architects who specialize in residential design across the country were asked to rate the expected popularity of a variety of residential outdoor design elements in 2014. The category of gardens and landscaped spaces received a 94.2% rating as somewhat or very popular. Outdoor living spaces, defined as kitchens and entertainment spaces, were second most popular at 92.0%. Outdoor recreation came in third at 75.8%. Across all categories, 98.3% of respondents rated lighting as somewhat or very in-demand for 2014, followed by seating/dining areas (97.7%), fire pits and fireplaces (95.4%), grills (94.3%) and installed seating (89.6%), which includes benches, seatwalls, ledges, steps, and boulders. In the realm of landscape garden structures, terraces, patios, and decks are high on people’s lists (97.7%), as are fencing (88.5%), pergolas (82.8%), and decks (82.3%). Survey respondents noted that the most popular landscape and garden elements for 2014 include low-maintenance landscapes (95.4%), native plants (84.5%), and fountains or ornamental water features (83.9%). Slightly more than three quarters of respondents (76.4%) noted food and vegetable gardens, including orchards and vineyards, will be in demand this year. Decorative water elements—including waterfalls, ornamental pools, and splash pools—were predicted to be in demand for home landscapes (86.1%). Spas (76.4%) and swimming pools (73.8%) are also expected to be popular.

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Changes at National Hardware Show will benefit Canadians NEW YORK — Organizers of the 2014 National Hardware Show report that the event is 99% sold as it prepares to host over 2,500 exhibitors in Las Vegas from May 6-8, including a record number of Canadians. North American brands including Benjamin Moore, 3M, SC Johnson, Craftsman, and for the first time in years, Black+Decker, are all booked to participate. The show further promises to offer a platform for the launch of 600 new products. The event also features some changes behind the scenes, with Richard Russo in the role of vice president of the National Hardware Show. “I am looking forward to my 15th year at the National Hardware Show,” says Russo, who was a driving force behind the changes that took the show from Chicago to its current Las Vegas venue. “Our Canadian attendance has always been an important part of the National Hardware Show and I’m proud to say our Canadian buyer participation has increased from just under 200 attendees in 2010 to over 800 in 2013. In addition, we will host over 120 Canadian manufacturers,” he adds.

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HARDLINES READERSHIP SURVEY Dear Hardlines eNewsletter Subscribers: In our ongoing effort to bring you the latest news and information on the Home Improvement Industry, we want to make sure we are fulfilling the needs of our subscribers. In order to do this, we have put together a quick survey. If you have not done so already, please take a moment to complete this survey. As a thank you for filling this survey out, you have the option to enter your name and contact info to be entered into a draw for a free BOSE SoundDock® Series II digital music system!

Thank you!

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Classifieds

Loxcreen Canada Ltd., www.loxcreen.com / www.mdteam.com , is a leading supplier of floor trims, ceramic accessories and weatherstrip products in North America with head office in Mississauga, Ontario. Loxcreen products are widely known under the Shur-Trim, ProVa, and M-D brand names in the Canadian marketplace. The company is seeking a Territory Sales Manager for Ontario with experience in the retail building materials/hardware industry. The Territory Sales Manager will call on retail Hardware and LBM locations across Ontario to promote Loxcreen products, develop new business, maintain and set up merchandising displays, provide product knowledge to store associates and work industry trade shows. Competitive compensation package offered. To see more information on this exciting opportunity, please visit our ad on LinkedIn at http://www.linkedin.com/jobs2/view/10844147 or apply directly to employment@loxcreenflooring.com .

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