May 14, 2018 Volume xxiv, #19

“By working faithfully eight hours a day you may eventually get to be boss and work twelve hours a day.”
—Robert Frost (American poet, 1874-1963)

______________________________________________________________________

______________________________________________________________________

Expanded role for Home Hardware CEO Terry Davis points to next steps for the co-op

ST. JACOBS, Ont. — The announcement last week that Home Hardware chief executive Terry Davis has added the title of president to his responsibilities marks the latest step in propelling the 54-year-old company forward. While Davis has had the CEO role for the past four years, the president’s role had remained with his predecessor, Paul Straus.

Straus, who has had a reduced role at the dealer-owned home improvement co-op, is now retiring, but will remain in a counsel role to the company.

In his expanded role as both president and CEO, Davis will continue to report to Home’s board of directors, but now as president, he will also sit on the board, putting him in closer contact with the board as he executes day-to-day functions. More specifically, he is accountable for the control of the business and the general conduct and affairs of Home Hardware Stores and its wholly-owned subsidiaries. He also remains responsible for the financial control and long-term health of the company.

Davis said from the start of his tenure in the top job that his would be an interim role, and while four years might be considered a reasonable period for a CEO to stay in place, it’s brief by Home Hardware’s standards. Founded in 1964, Davis was only the third person to lead the company, following Straus and co-founder Walter Hachborn before him.

Davis joined Home Hardware more than four decades ago in a junior warehouse position at the distribution centre in St. Jacobs, Ont. He moved his way up through the ranks, taking on a series of managerial and executive positions accountable for dealer support and dealer development, marketing, information technology, dealer finance and legal services, administration, and strategic planning.

In 2010, he was appointed executive vice-president and COO, and became CEO in 2014.

back to top

______________________________________________________________________

______________________________________________________________________

National Hardware Show rolls out with strong attendance, upbeat mood

LAS VEGAS, Nev. — The largest hardware show in North America got off to a strong start yesterday with 2,600 vendors playing host to dealers and buyers from around the world. Canadian attendance was strong, as well, with head office buyers from Canadian Tire, RONA, Groupe BMR, Lee Valley Tools, Spancan, and more walking the aisles. The show is also proving to be a draw for an increasing number of independents.

These included dealers from Home Hardware, a number of whom were also involved in activities and workshops hosted by the North American Retail Hardware Association. The range of seminars put on by the NRHA filled all three days of the show, and featured representatives from companies such as The Grommet (an online seller that Ace Hardware has invested heavily in), Alibaba.com, and Treehouse.

The NRHA kicked off the show with its Young Retailer Awards gala. A Canadian, Mike Wilson of Wilson's Home Hardware Building Centre in Barrington Passage, N.S., was among the eight winners of the awards. The fourth-generation dealer-owner joined Home Hardware in 2008. Since then, he has made changes that included adding a Home Furniture and a mobile phone store. As a result, top-line sales have increased every year since 2012.

Many of the Canadian buyers who made the trip to Las Vegas attended the annual Maple Leaf Night, held on the first night of the show by the Canadian Hardware and Housewares Manufacturers Association at the Mirage hotel. On the show floor, new products were in abundance, driven by technological advances in categories such as lighting, power tools, and even wood panelling.

Traffic continued to be healthy throughout the show, with buyers from countries as far afield as Australia, Japan, South America, and Europe.

(More on what we found at the National Hardware Show in next week's mind-boggling edition of HARDLINES!)

back to top

_________________________________________________________________

Lee Valley Tools plans largest store ever—and first in Quebec

OTTAWA — Continuing the steady expansion of its bricks-and-mortar presence, Lee Valley Tools will open its first store in the Quebec market this fall.

Robin Lee, head of Lee Valley Tools, says his company is currently working on its next store, which will be beside Autoroute 15 in Laval, Que., near Montreal. Sitting in a former Best Buy store, it will have more square footage than typical Lee Valley stores. “It’s going to be one of our largest stores,” says Robin Lee, president and CEO of the company. The large size will pose some challenges, he admits. “We’re doing a little more tweaking of the store design there.” The move to Quebec will also mean translation of all of Lee Valley’s materials into French.

One of the differences will be more emphasis on making the store more experiential. “It will have a lot of interactivity,” Lee says. It is scheduled to open in October. The product mix of a traditional Lee Valley store caters to woodworkers, hobbyists, and people searching for unique cabinet hardware, toys, and puzzles. On any given day, seminars and workshops draw customers who want to learn knife sharpening or how to make a bird house.

Despite Lee Valley’s strong presence online (it started out in 1978 with one store in Ottawa and a ground-breaking mail order catalogue), Lee has been committed to growth of the bricks-and-mortar side of the business. The last store to open was in Niagara Falls, Ont., in June 2017 (shown here).

Lee, along with the company’s founders, his parents Leonard and Lorraine Lee, were recently awarded the Excellence in Retailing Awards 2018 Lifetime Achievement Award. The award is presented by the Retail Council of Canada. 

back to top

_________________________________________________________________

Big things are happening in small stores, even as national chains keep growing



SPECIAL REPORT — Big boxes might have the advantage of size, but small stores have come up with several ways to make the most of their square footage. From customer service to clever merchandising, size is secondary to how retailers use their space.

These days a more sophisticated customer has led to a more sophisticated approach to small store merchandising. “No matter what kind of market a retailer is in, customer needs and expectations have evolved, and stores have had to evolve with them,” says Bill Morrison, divisional vice president of Ace Canada. “The key is the store has to remain relevant to its local market or it won’t survive.”

The store’s core product selection also must be based on hard sales data collected over time. If the retailer wants to maximize sales per square foot, says Morrison, vital space can’t be taken up by merchandise that moves too slowly or is out of season. At the same time, retailers need to regularly augment their core product selection with interesting new products to keep the customer experience fresh. “Small can’t mean boring,” he adds.

Another function of choosing the right core products is demonstrating to customers that the store is “in that business”, says Laurie Wittie, store design manager for Home Hardware Stores Ltd., whether that be tools, plumbing, electrical, or kitchen and bath. If customers come into a smaller store looking for a certain product, they don’t expect to see multiple brands and lines of the same product several tiers deep like they would in a big box store.

“As long as the store has a couple of options to choose from—good, better, best if possible—the customer knows they can fill their need for that particular product at that store,” Wittie says. “If they’re looking for more options, at least the retailer can start a conversation and perhaps get what the customer wants on special order.”

That’s an approach to merchandising that Yves Lebel uses in his 2,500-square-foot BMR hardware store in the small town of Saint-Anne-de-Madawaska, N.B. With a much bigger RONA dealer about 15 minutes away in Edmundston and a Kent building supply store the same distance away in Grand Falls, it’s essential that Lebel display as many different products as possible.

“Big stores have way more space than we do, but it’s just lots and lots of the same stuff,” says Lebel. “Instead of 10 of an item on the shelf, we might have two or three and store the overstock in the warehouse. We can’t take up space in the store with too much inventory; it’s more important that our customers know that we have all the products they might need.”

(This is an excerpt of a larger feature that appears in the current edition of our sister publication, Hardlines Home Improvement Quarterly. HHIQ is mailed to 11,000 dealers, owners, and managers. Click here to get your own subscription today!)

back to top

____________________________________________________________________

Jeff Kinnaird, president of Home Depot Canada, has been recognized for a lifetime of achievement by the Retail Council of Canada (RCC). Kinnaird and his team have garnered the Excellence in Retailing Awards 2018 Distinguished Canadian Retailer of the Year Award. The Distinguished Canadian Retailer of the Year Award recognizes a retail leader who has led their company to outstanding business success and innovation and has consistently demonstrated community commitment and support. The recipient is a role model because of their leadership within the corporation, in the retail industry in Canada, and in the community at large, through personal and/or corporate philanthropic activities. The Excellence in Retailing Awards Gala will close the first day of RCC’s conference, STORE 2018, May 29 to 30. For more information and to purchase tickets, click here.

Lixil Canada Inc., home to such kitchen and bath brands as American Standard and GROHE, has named Valerie Malone as president and general manager. In her new role, Malone will be responsible for Lixil’s business strategy and growth in the trade, retail, and e-commerce channels, working with the international Lixil team. A graduate of the University of New Brunswick in finance, Malone joined Lixil a year ago.

back to top
____________________________________________________________________

CLASSIFIED ADS

TIMBER MART is looking for an Ontario Building Materials Procurement Manager, based in the GTA who will play an integral role in the following areas that support their dealer network: 

* Align product prices in accordance with the market for Vendor Buying Agreements to maximize dealer margins and sales. 

* Review market pricing in order to negotiate better costs for commercial agreements with vendors. 

* Ensure a proper product mix that meets sales and budget objectives and maximizes profitability. 

* Negotiate trade discounts and terms. 

* Ensure the proper and faithful execution of the agreed upon Vendor Buying Agreements. 

* Routinely review categories and sub-categories to decide whether to promote or discontinue products based on their market performance. 

* Select products within assigned product categories for TIMBER MART flyers. 

* Select vendors that will appear in the TIMBER MART National Buying Show, as well as travel to and assist in preparations for the event. 

* Support TIMBER MART dealers regionally and nationally, providing them with appropriate and timely information, guidance and vendor support. 

* Develop new programs to ensure our dealers are kept current in the building material industry. 

* Monitor competitors’ markets nationally and regionally in order to maintain a competitive standing in the marketplace. 

Qualifications: 

* Preferably a College/University Degree in Business, Sales or Marketing 

* 5 plus years’ experience in category management and retail sales 

If you are a motivated team player who is looking for a challenging and rewarding opportunity, please forward your resume to hr@timbrmart.com.

____________________________________________________________________