March 2, 2015 Volume
xxi, #9
“Laughter is the sun that drives winter from the human face.” —Victor Hugo (French author and poet, 1802-1885)
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Orgill steps up Canada-focused services at latest show
ORLANDO, Fla. – Despite difficult winter weather in parts of the U.S. and Canada, Orgill’s Spring Dealer Market welcomed retailers from all over the world to the Orange County Convention Centre last week. Those dealers included some 200 independents from Canada, of which at least half were members of Castle Building Centres Group.
Exhibitors’ booths also featured more Canadian reps, as vendors recognize the growing importance of this show to their customers. In fact, the latest Orgill show featured more Canadian vendors than ever before, including RCR’s Rick Pitre, regional sales manager, Central and Western Canada, shown here with Mario Giannetti of Ottawa’s Preston Hardware.
With more than one million square feet of exhibit space, three model stores, and massive Product Category Showcases, this was Orgill’s biggest show to date. It played host to some 2,200 vendors from across all the core categories. A lot of dealers—from a range of banners—were at the show for the first time. “With a show this size, it’s important for dealers visiting it to come prepared,” said Ken Jenkins, president of Castle. “They need to set their budget, understand their needs. Have a plan to work the show or it can be overwhelming.”
Three model stores offered ideas for store layout and design ideas, including one aimed at Canuck dealers. North American Home Centre featured Canadian-compliant products (now more than 100,000) plus merchandise displays with a pro focus.
For the first time at this show, Orgill featured a Canadian pallet buy section, as well. Despite the falling value of the Canadian dollar, show pricing did not reflect any pricing movement (see our interview with Orgill president Ron Beal in last week’s edition. —Editor).
Jenkins, whose organization has worked closely with Orgill since its early days selling in Canada, stressed that Orgill has a real commitment to this market. Its motto, he said, is to grow dealer by dealer. “Every Canadian retailer should attend an Orgill market at least once to understand the opportunity.”
Orgill also began signing up attendees for its Fall Dealer Market, which will be held in New Orleans August 27-29. Click here or more information.
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Home Depot, Lowe’s ride U.S. recovery to strong year-end
MOORESVILLE, N.C. & ATLANTA —Big box giants Home Depot and Lowe’s are riding the turnaround in the U.S. housing market with strong fourth-quarter results.
Home Depot reported Q4 sales of $19.2 billion, up 8.3% from $18.7 billion, while same-store sales were positive 7.9% (U.S. stores enjoyed comps of 8.9%). Net earnings for the fourth quarter of fiscal 2014 were $1.4 billion, up 43.8%.
Lowe’s reported net earnings of $450 million for its quarter ended January 30, an increase of 47.0%. Sales for the fourth quarter increased 7.6% to $12.5 billion, with same-store sales up 7.3%—and same-store sales in the U.S. up 7.4%. The company also reported that the Canadian business had its seventh consecutive quarter of double-digit increases as the Lowe’s banner continues to gain traction with Canadians.
For the year, Home Depot’s sales increased 5.5% over 2013 sales to $83.2 billion. Total same-store sales for the year increased 5.3%, and comp sales for U.S. stores were positive 6.1%. Net earnings reached $6.3 billion, up 17.8%. Lowe’s results were comparable, with full-year net earnings up 18.0% to $2.7 billion on sales that reached $56.2 billion, a 5.3% increase. Same-store sales increased 4.3%, both on a consolidated basis and for the U.S. business.
Home Depot’s results reflect a pretax gain of $323 million related to the sale of a portion of the company’s equity ownership in HD Supply Holdings, Inc. Costs related to a data breach of its customer files last year added a net expense of $33 million.
For fiscal 2015, Home Depot expects sales growth of about 3.5% to 4.7%, with same-store sales reaching 3.3% to 4.5%. Lowe’s anticipates total sales to increase 4.5% to 5.0% and same-store sales to rise 4.0% to 4.5%. Home Depot plans to open six new stores and Lowe’s expects to open 15-20 stores in the coming year.
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Lowe’s new style expert underlines focus on women
TORONTO — In its spring product preview, held recently at a club in Toronto’s hip West End, Lowe’s showcased its plans for reaching out to the female shopper, with an emphasis on home accessories for the outdoors. Two stores in Ontario, in Burlington and Cambridge, which opened last year, have already been highlighting the appeal to women with brighter, more attractive retail spaces, and a current retrofitting of the Hamilton, Ont., location will continue until the company is satisfied it’s up to par.
The recruitment of Cindy Jardim as styles and trends director for Lowe’s Canada is another sign of the company’s investment in its female customers, which Jardim says will “really differentiate us from the other guys.”
Jardim comes to Lowe’s from Sears Canada, which she joined in 2003 as a buyer, moving up the ranks as a brand and trend manager, most recently as associate vice president for private brands and trends in home and hardlines. Her job is to search the fairs, markets, and boutiques of North America and Europe for the next trends on the horizon on behalf of Lowe’s Canada.
The push to attract women is part of a two-pronged growth strategy for Lowe’s, along with an emphasis on sales to contractors.
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British DIY retailer’s PR stunt ties public in knots
LONDON — The recent release of the movie, “50 Shades of Grey,” has prompted UK home improvement retailer B&Q to prepare its employees for a possible rise in rope and duct tape sales.
At least, that’s what the public was led to believe. The erotic movie, which opened on Valentine’s Day, features a scene of a couple purchasing products from a hardware store that can be used for bondage-related activities.
A memo reportedly sent to B&Q’s 359 stores called “Staff Briefing – Preparation for Fifty Shades of Grey Customer Queries,” urges employees to be polite if customers ask for products to help them recreate activities depicted in the film. The memo notes that products are recommended “for their designed purposes.” Staff are further advised to deal with film-related queries in a “polite, helpful and respectful manner.”
However, it all turned out to be a PR gag. As a spokesperson from B&Q said, “We can confirm that the leaked memo was indeed a bit of fun. B&Q, the public, and the media have been entertained over the past few days and we are looking forward to a big weekend. We would have confessed to this sooner, but our hands were tied.”
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Home Depot Canada presents softer side
TORONTO — Home Depot Canada’s seasonal buying team presented the retailer’s spring and summer lines recently, with support from some of décor and design’s hottest style mavens and bloggers, including Chris Palmer, a finalist in the TV show, “Canada’s Handyman Challenge.” And the focus was definitely on the softer side of home improvement.
Ganesh Krishnan, senior merchant, seasonal, and Dara Greenberg, senior merchant, barbecue, introduced a range of products, including a DIY vignette by Tiffany Pratt, a designer and stylist (shown above), that had been created using only products from Home Depot. Many of them put an emphasis on flexibility of application, being suitable either in a backyard setting or on a condo patio. There were also lots of barbecues at lower price points, including a charcoal grill that retails for $80.
Home Depot has even begun selling marinades and sauces to round out its barbecue assortments.
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THIS WEEK IN 1995
A.W.A.R.D. was once the dominant buying group for independents in Atlantic Canada. Part of the now-defunct Matreco umbrella buying group, it was affiliated with Tim-BR Mart Ltd., (now TIM-BR MART Group), Homecare in Ontario, and Le Groupe BMR in Quebec. Over time, both A.W.A.R.D. and Homecare became part of TIM-BR MART. Our second edition of HARDLINES reported on A.W.A.R.D. ’s efforts to roll out more sophisticated merchandising for its members. Also: Home Depot Canada announced plans to open its largest store yet in Canada. (Click here to read some classic news and typos from 20 years ago! —Editor).
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CLASSIFIED ADS
Retail Specialist – Canada
Position Summary:
As a growing company, we are always looking for new team members to help us continue in our success. Orgill, Inc. is currently seeking a Retail Specialist in Ontario and Newfoundland to represent Orgill, Inc. to prospective and existing retail customers. This employee will analyze customer needs and offer products, programs, solutions, and services to retail hardware stores, lumberyards, and farm & ranch supply dealers. This is not an entry level sales position, nor is it one for someone who does not have experience in our industry.
Responsibilities:
- Increase market share with existing customers by consulting with store owners and managers on how Orgill can help their businesses be more successful and effectively compete in their individual markets.
- Identify, qualify and develop prospective customers by establishing rapport, identifying unique needs and addressing them with Orgill solutions. Prepare and present professional sales proposals.
- With a high degree of accountability, develop and implement weekly action plans to maximize sales with effective scheduled sales calls and travel itineraries.
Requirements:
- Must have in-depth and up to date knowledge of standard concepts, practices, and procedures within the hardlines industry.
- Must have experience in the wholesale or retail hardware, lumber, building materials and/or farm supply trade.
- Must have a working knowledge of email, internet, and Microsoft Office computer applications.
- Must have a valid driver’s license and a safe driving record.
- Prefer candidate with Bachelor degree
To Apply:
Please submit resumé, and salary history to: mvallecillo@orgill.com
For more information about Sales Careers visit www.orgill.com
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National distributor of wood, metal and automotive
machinery and accessories seeks an experienced
Sales Representative
for Alberta
Ideal career opportunity for an aggressive, self-motivated individual with excellent interpersonal and communication skills. These skills, coupled with extensive knowledge of the market, would put you in good standing to join our aggressive and expanding company and for substantial earnings potential.
Please forward cover letter and resume to:
Ted Fuller
fax 519-896-6497
email tfuller@kingcanada.com
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