May 15, 2017 Volume xxiii, #20

“I cook with wine. Sometimes I even add it to the food.”
—W. C. Fields (American comedian, actor, and writer, 1880–1946)

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Vendors enjoy solid traffic at NHS, despite no-show by Lowe’s buyers

LAS VEGAS — Canadian vendors in Las Vegas this week were largely positive about the traffic and customer contacts they experienced throughout the three days of the National Hardware Show. The show, held this year from May 9 to 11, long-ago established itself as the destination for most of the Canadian hardware industry, with Canadian Tire, Home Hardware, Groupe BMR, Federated Co-operatives, and Home Depot Canada among the retailers that sent teams of buyers down.

The most conspicuous absence from Canada was from the country’s number-two player, Lowe’s Canada. That company decided at virtually the last minute to cancel its participation. Lowe’s Canada had originally planned to send up to 18 buyers from both its Lowe’s and RONA teams. According to a spokesperson for the company, the decision was made based on a desire to “focus on the business during this busy time of year, particularly given the shift in the weather.”

Nevertheless, other retailers were there in force, including senior decision makers. They included Joel Marks, VP Merchandising at Home Hardware Stores Ltd., Randy Martin, VP of procurement for TIMBER MART, Mike Daniels, GM of Spancan, and Tony Steier, Home and Building Solutions Director at Federated Co-operatives Limited. And there was plenty for them to see, as new products and innovations were particularly in evidence this year. The show again featured a strong showing by Canadian vendors, including RCR, Nuvo Iron, Task Tools, EAB, CTM Hardware, and Richelieu Hardware, which was exhibiting for the first time in more than a decade. There was even a group stand sponsored by Export Quebec.

The culmination of buyer-vendor liaisons was the Maple Leaf Night by the Canadian Hardware and Housewares Manufacturers Association. This event again managed to draw the buyer community from Canada to share drinks and stories at the Mirage hotel on May 9. According to CHHMA’s Sam Moncada, about 225 people attended overall.

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Canadian Tire announces acquisition, post sales increase in Q1

TORONTO ― Canadian Tire Corp. reported healthy gains in its first quarter, including an increase in sales by its Canadian Tire Retail segment (which includes Canadian Tire-bannered stores) of 2.0%. That business’s same-store sales were up 0.5% compared to the prior-year quarter. And a new acquisition underscores the company’s desire to boost its presence in the kitchen category.

Overall consolidated retail sales for the corporation were up by $95.0 million, or 3.8%. Excluding petroleum, consolidated retail sales were up 1.4%. Consolidated revenue increased $194.1 million, or 7.6%, which includes a $62.4 million increase in petroleum revenue thanks to higher gas prices. Canadian Tire’s Retail segment enjoyed a revenue increase of 8.5% in the first quarter. Excluding petroleum, it was up 6.8%.

Canadian Tire has also entered into an agreement to acquire Padinox Inc., the company that owns the Canadian rights to the Paderno brand of kitchenware. In a release, the company says the acquisition, “coupled with Canadian Tire’s strength in product development and marketing, will play a central role in Canadian Tire’s new cooking innovations and expanded kitchen assortment.”

As part of the transaction, the manufacturing and wholesale distribution operations of Padinox Inc., based in Prince Edward Island, are being sold to Meyer Canada, a distributor of cookware and related kitchen products. Meyer’s other licensed brands include Farberware, Rachael Ray, Paula Deen, and Cake Boss.

According to CTR President Allan MacDonald in a call to analysts, “Kitchen is a brand-driven category, and our 8% penetration of owned brands in kitchen pales in comparison to the 88% we have in Christmas.” The Paderno acquisition is part of a move to increase that share of branded kitchen sales.

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CRBSC reorganizes, names ABSDA’s Denis Melanson chair

OTTAWA — The board of directors of the Canadian Retail Building Supply Council (CRBSC) has appointed Denis Melanson as its new chair. The move follows the sudden resignation two weeks ago of AQMAT head Richard Darveau as CRBSC chair.

Now, the CRBSC, the national organization made up of the five regional building supply associations across Canada—ABSDA (Atlantic Canada), AQMAT (Quebec), LBMAO (Ontario), WRLA (Western Canada), and BSIABC (British Columbia)—are unrolling a plan for the near future.

Melanson, who is president of the ABSDA, will serve as chair for a two-year term. The CRBSC was legally incorporated in 2016 when the regional associations identified the need to unite as a structured entity to better respond to the changes in the building supply industry, specifically at the national level.

As part of that mandate, it hosted a meeting with key industry stakeholders on March 22 in Halifax. “We were thrilled to host 33 industry leaders from across the country at our leadership summit,” said Melanson. “They assisted in a program which validated exactly what the CRBSC’s priorities should be when charting a plan for the future.”

Four strategic priorities were identified, with the need for a unified national voice at the top of the list. “The absence of a national voice hindered us from advocating as one on issues and topics that affect our industry. Going forward, the CRBSC will act as a unified national voice for the building supply industry,” Melanson continued.

The CRBSC will hold a national meeting in Montreal in June to finalize an action plan based on the recommendations and strategic direction provided at the Halifax leadership summit.

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Canac looks to expansion of west side of Quebec, then Ontario


L’ANCIENNE-LORETTE, Que. — The grand opening last week of a store in Granby, Que., about an hour east of Montreal, is a clear indication of the commitment by retail giant Canac to move in on the greater Montreal market. And after actively expanding into new markets in the east side of the province, Canac, which is based in L’Ancienne-Lorette, near Quebec City, is now looking westward for new markets. Jean Laberge, president of Canac, says a store slated for Rivière-du-Loup would sew up markets on the east side of the St. Lawrence River. “It will complete for us the east side of the province.”

But, he adds, “We are slowly moving west. There’s room there for many, many more stores for Canac.”

That expansion could even include Anglophone markets in the future. Already, the company has translated its website and flyers into English in anticipation of opening a store in Ontario by as early as 2019. And while he considers the Ottawa market well served, he says there are other opportunities in the Ontario market.

“We looked for land in Ontario, near the border, where we could install Canac stores. We are almost ready to go into the English market,” he says.

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Richard Paulin will retire from his role as President of the Hillman Group Canada, effective July 1. He joined H. Paulin & Co. Limited in 1977 and started his career as a financial analyst. Harry Paulin, Richard’s grandfather, started the company in 1920. It was family-owned and operated until 1972 when it went public on the Toronto Stock Exchange. Hillman acquired H. Paulin in 2013 and Richard took on the role of President of Hillman Canada at that time.

The North American Retail Hardware Association held its annual awards dinner for young retailers last week in conjunction with the National Hardware Show. Winners from across North America were honoured, including a Canadian: Matthew Payzant, General Manager of Payzant Home Hardware Building Centre in Sackville, N.S. 

Festool has announced the appointment of Aaron Brading as Chief Sales Officer, responsible for leading the company’s sales functions in the U.S. and Canada. Previously with Hilti Inc., Brading led teams in the power tools and accessories, and civil and energy divisions.

Susan Collins has joined the customer service department at CashierPRO, a Stratford, Ont.-based company that provides point-of-sale and inventory management systems for hardware, farm, and building materials dealers. Collins has a background in retail services, accounting, and inventory management, most recently as the operations manager at Crompton Home Hardware Building Centres. She also was a software platform specialist, providing training and support for Epicor and Epicor/Dimensions products.

Thomas Kinisky has been named CEO and President of Saint-Gobain Corp., Saint-Gobain’s North American holding company. He takes over from John Crowe. Kinisky joined Norton Co. in 1989, a year before it was acquired by Saint-Gobain. Most recently, he held the role of President of Saint-Gobain Performance Plastics.

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