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CONNECTING THE HOME IMPROVEMENT INDUSTRY
May 20, 2019 | Volume xxv, #20
IN THIS ISSUE:
  • Canadians turn out in strength for the National Hardware Show. Well, sort of.
  • Home Hardware realigns its hardlines merchandising team
  • How to do business with Home Depot Canada: top merchant offers some tips
  • B.C. association provides staffing solution with employee training for newbies
PLUS: RONA Bradford turns 100, Quincaillerie Stéphane Baril in Saint-Hubert, Fraser Valley Building Supplies store joins Ace, Giant Tiger in North Battleford, J.M. Rioux joins RONA, Canfor reports loss, Richelieu Hardware a billion-dollar business, home sales rise, building permits in March and more!
Canadians turn out in strength for the National Hardware Show. Well, sort of.

LAS VEGAS — The National Hardware Show is the destination of the home improvement industry for all of North America, not to mention a range of other countries internationally. But for the Canadians who look forward each year to attending, the show is considered in many ways their Canadian hardware show.

From a purely practical standpoint, the lack of a single national trade show for the industry in this country certainly contributes to the National Hardware Show’s popularity north of the border. Certain aspects of the show—and the town—lend themselves to attracting Canucks, be it the popular Maple Leaf Night, held by the Canadian Hardware and Housewares Manufacturers Association, the gambling and shows, or even those two-dollar margaritas at happy hour (leave out the personal reminisces, please.—Editor).

So why did so many people, retail buyers and vendors alike, share with Hardlines their sense that Canadian attendance “was off,” as the head of one mid-sized chain of hardware stores suggested? Even this editor’s experience on the show floor reflected the sense that the Canuck contingent was not as strong as in the past.

Certainly, there were lots of Canadian buyers walking the show, including the return of Lowe’s Canada after a last-minute no-show at last year’s event. Besides contingents from Canadian Tire, Home Hardware, TIMBER MART and Home Depot, regional retailers and independents were well represented, including UFA, Peavey Industries, BMR Group, Lee Valley Tools, Federated Co-operatives, McMunn & Yates and Patrick Morin.

While the show could benefit from attendance by more Canadian independents, these dealers in turn would benefit from exposure to new products and new ideas, both of which were represented in abundance at this year’s show. While not a year necessarily of big innovations, many buyers agreed that there were lots of good ideas and unique niche items that made the trip worthwhile.

Here are some new products at the show that caught our eye:

  • A broom from Garant, designed for commercial use, with a patented design that features four different layers of bristles. “It’s a one-pass broom,” says Garant’s Jean Goudreault.
  • A couple of innovations from MD: a weather strip for doors embedded with diatomaceous earth to prevent insects from creeping into the home, and a line of levels that can be disassembled to fit into a toolbox.
  • The rollout of a non-toxic paint stripper by Super Remover that claims to be as effective as traditional strippers.
  • A flat-panel heater that affixes to the wall from Amare. This one has an additional panel covering the heater to prevent burns.
  • Knitted cotton furniture leg sleeves to protect floors from scratches, courtesy of Nancy Protectz.
  • Rip-resistant disposable gloves by Venom Steel that are latex-free and chemical-resistant.
  • Shurtech Brands introduced Brute Force duct tape for contractors and serious DIYers. It features a patent-pending technology to give it enough strength to pull a 700-pound sport vehicle in the booth at the show.
  • Caframo was showing its new 8200 series Ecofans, which the company says provides increased performance over traditional its Ecofans. The fans sit on the hot surface of a wood stove and blow the heat through the room, using only the heat of the stove itself to power the fan. Made of anodized aluminum and manufactured by Caframo in Canada.

In addition to the new products, heritage companies like Richelieu Hardware were present to support their Canadian customers with their core product lines, even as they seek to crack new markets in the U.S. Whether brand new or tried and true, there was lots to see on the floor of the latest National Hardware Show. Buyers―and a growing number of independents―would benefit from adding this show to their calendars in 2020.

(Click here to see a photo gallery of some of the products we saw at NHS.)

Home Hardware realigns its hardlines merchandising team

ST. JACOBS — Recent appointments within Home Hardware’s merchandise hardlines team are just the latest changes in an ongoing reorg at Home Hardware under the leadership of President and CEO Kevin Macnab. The first major addition to the executive team under his tenure was Marianne Thompson, who joined at the beginning of the year as vice president, merchandise LBM.

Further changes to the merchandising team on the hardlines side, under Merchandise VP Joel Marks (shown here), came with the appointment of Brian Straus and Dave Martin as directors, merchandise hardlines. Then, just days later, Home Hardware announced a complete shuffle of its hardlines buying team. With the realignment comes the creation of a third director role, who will be responsible for executing on the plan to buy and sell for the hardlines portfolios.

An important part of the reorg is the establishment of the director roles, which will free up those individuals to manage and coach the merchant teams, leaving the day-to-day buying decisions to the merchants themselves.

“The reallocation of categories furthers our goal of providing our dealers with the best program for independents in the industry,” Marks noted. “We believe that this realignment will serve to enhance our strong merchandise programs by optimizing our vendor partnerships and will play a critical role in our journey to be Canada’s most trusted and preferred home improvement retail brand.”

Several people have new or expanded roles. For example, Jason Boshart was in charge of automotive and now oversees HVAC, as well. Derril Linseman and Mike McClennan have exchanged portfolios, Sandy Jordan has taken over paint from Sharon Huver, and Mike Zuk has stepped into the seasonal portfolio that Jordan exited. Huver has moved over to appliances.

The updated category responsibilities will take effect on May 27, 2019. To see how the teams have changed, click here.

 
How to do business with Home Depot Canada: top merchant offers some tips

MISSISSAUGA, Ont. — It’s a pretty safe bet that just about every hardlines vendor would be happy to do business with The Home Depot Canada. In fact, happy would be a gross understatement. So it was not surprising to find the room filled almost to capacity one morning earlier this month when Pam O’Rourke, VP of merchandising for Home Depot Canada, talked about just that topic.

After giving some general background and updates on the company (see last week’s mind-boggling issue—Editor), O’Rourke got down to some basics of what the company is doing to buy smarter and how suppliers can fit into that scenario.

For example, Home Depot is using data to better understand how the customer shops in their stores, searches online for their products and decides what to buy. With enhanced tracking, she noted, “we can understand what’s trending in each of our stores”—information that is important when working with vendors to maintain that in-stock position, both from a store perspective and the perspective of how any category is working in each store. She told the vendors they could expect more personalization of the retailer’s connection with its customers, getting a better profile of each customer.

Next, O’Rourke zeroed in on a key tenet of retail: “New sells.” New products and new ideas are available to customers with the click of a keyboard, “so we have to be able to deliver,” she emphasized. She observed that in the past, developing a product idea, getting to the prototype stage, testing it and then fully getting it to market could take up to four years. “Now, it’s happening in half that time.”

She called on suppliers to take ownership of communicating new product ideas as quickly as possible.

Online also offers an entry point for new products and new vendors. Products can be tested online through Home Depot on a limited basis, giving vendors time to get used to the requirements of doing business with the giant retailer. If those new items gain traction with customers, they could become part of the in-store mix. Another way to ease into a relationship with Home Depot Canada is through a store test in a small group of stores to start. “It’s a great way to get to know each other.”

O’Rourke then addressed one of the key components of the vendor-retailer relationship: price. With the likes of Amazon readily available with the lowest price possible on millions of products, she exhorted vendors to come to the table with the right product, the right value and with innovation. Value and innovation are just as important as price.

“We are committed to providing that right price for our customers every day.”

B.C. association provides staffing solution with employee training for newbies

SURREY, B.C. — A new training program from the Building Supply Industry Association of British Columbia has launched with its first class of 12 students. Designed for entry-level workers, the Building Supply Warehouse and Distribution Training Program started April 23 at the BSIA’s office in Surrey.

In co-operation with the trade association’s own members, the B.C. government and the Northwest Skills Institute, the BSIA has developed the six-week industry specific certificate program. It’s available to people willing to commit to the training and to accept full-time employment within the home improvement industry, either on the supply side or in retail.

“What an incredible program,” says BSIA President Thomas Foreman. “It’s helping unemployed people to be trained and educated with the essential skills that our members have asked for. Once they have completed the course, we’re able to place them with our members into entry-level positions, trained, educated and ready to go.”

The six-week curriculum includes training in warehousing and distribution, workplace safety awareness, first aid certification, quality control and job entry skills. The program is open to any Canadian citizen or permanent resident and is designed to assist the unemployed and under-employed. It’s 100% subsidized for eligible, qualified participants, with almost $500,000 available in grant money to ensure the program’s success. Foreman calls it “a huge win for our industry,” which, like so many other sectors, faces a shortage of workers.

The course will be repeated two more times over the coming weeks. (For more information, contact bswd@manufacturingbc.org or call 604-900-1980, ext. 143.)

 

NOTED

Home Depot is planning for continued solid growth on its e-commerce side. Pam O’Rourke, Home Depot Canada’s VP of merchandising, noted that a strength of Home Depot against Amazon is maintaining a core focus on home improvement, which can make the retailer a destination for people looking for hardware and repair products.

DID YOU KNOW...

...that Hardlines offers various ways for you to stay up-to-date on the industry? Make sure you are subscribed to: our Daily News (free); monthly Dealer Newsletter (free); and our print magazine, Hardlines Home Improvement Quarterly (free to dealers)! For more information on all of our news, visit hardlines.news

RETAILER NEWS

BOUCHERVILLE, Que. ― Lowe’s Canada is celebrating the 100th anniversary of RONA’s Bradford, Ont., store. Founded by James Spence as Spence Lumber in 1919, the business operated as a lumber yard until the trend of home renovation and DIY repairs inspired a move and expansion several decades later. In 2008, Dennis Doidge and Ted Minty bought the business. They went on to create Doidge Building Centres in 2017 by bringing together other home improvement businesses they had acquired in Ontario over the previous two decades.

BOUCHERVILLE, Que. ― BMR Group recently celebrated the opening of the Quincaillerie Stéphane Baril store in Saint-Hubert, Que., under the BMR Express banner. Owners Stéphane Baril and Annie-Claude Hamelin decided in November to change their banner after 30 years in business.

BOUCHERVILLE, Que. ― Fraser Valley Building Supplies in Abbotsford, B.C., has joined the Ace Canada team. The store features a 10,000-square-foot retail sales area as well as a four-acre drive-through lumber yard. The banner conversion translated into a local investment of approximately $100,000 and created four new jobs, bringing the total number of store employees to 28.

OTTAWA ― Giant Tiger celebrated the grand opening this past weekend of a new 15,785-square-foot store in North Battleford, Sask. The event featured free activities for customers of all ages, including face-painting, promotional and gift card giveaways and a visit from Friendly, the Giant Tiger mascot.

BOUCHERVILLE, Que. ― Lowe’s Canada has welcomed Quincaillerie J.M. Rioux in Forestville, Que., to its RONA affiliated dealer network. Founded in 1986 by Jean-Marie and Denise Rioux, the family business is now operated by their daughter Marie-Claude and her spouse, David Martel.

BOUCHERVILLE, Que. ― Store Mag, a family-run business in New Richmond, Que., has joined RONA’s affiliated dealer network. Owner Benoit Durand previously specialized in window coverings, flooring and home décor. Now the business has been expanded to accommodate almost 3,000 feet of hardware products. Since its founding in 1988, Store Mag has also added paint, home décor and flooring departments.

SUPPLIER NEWS

VANCOUVER ― Canfor Corp. reported an $89.5 million loss in the first quarter as revenues fell compared with a year ago. The forestry company had posted profits of $112.2 million in Q1 of 2018. Sales of $1.15 billion were down from $1.23 billion a year ago. Earlier this month, the company reduced operations at its B.C. lumber mills on account of low prices and high fibre costs, a move expected to cut its output by some 100 million board feet.

MONTREAL ― Members of AQMAT, the Quebec association for the retail home improvement industry, and Canadian Club gathered at Montreal’s Fairmont Queen Elizabeth earlier this month to hear Richelieu Hardware President Richard Lord discuss the company’s success. The firm officially became a billion-dollar business in January, on the heels of its 50th anniversary. “We took the risk of innovation,” Lord told the gathering, “because waiting to be 100% sure of a product’s success before putting it on the market is to be 100% sure of being too late.” Lord himself is marking 30 years at the helm of Richelieu this year.

VANCOUVER ― Acadian Timber Corp. reported Q1 sales of $30.9 million, compared to $32.9 million in the same period the prior year. The company benefited from strong seasonal demand but felt the effect of adverse weather conditions during the quarter, resulting in a 7% decrease in log sales volumes and a 20% decrease in ancillary revenues, primarily related to timber services. Those impacts were partially offset by a 4% increase in the weighted average log selling price. Net income of $6.2 million was $4.2 million higher than the $2 million in Q1 2018.

ECONOMIC INDICATORS

Home sales recorded via Canadian MLS Systems rose by 3.6% in April from the previous month. Sales had dropped in February to their lowest level since 2012, but the rebound over the past two months still falls short of the levels reached during most of the second half of 2018. April sales were up in about 60% of all local markets, with the Greater Toronto Area accounting for more than half of the national gain. Actual (not seasonally adjusted) sales were up 4.2% from April 2018. (Canadian Real Estate Association)

Canadian municipalities issued $8.1 billion worth of building permits in March, up 2.1% from February. The increase was attributable to higher construction intentions in Western Canada. Four provinces reported increases in March, led by British Columbia with an increase of 12.8%, or $180 million. Meanwhile, all provinces east of Manitoba reported declines. The largest decrease was in Ontario, down 1.4% ($43 million) due to lower construction intentions in the residential sector. The value of residential permits dropped 1.5% from February, due largely to lower construction intentions in Ontario and Quebec. (StatCan)

OVERHEARD...

“We’re still in current dialogue with certain acquisition targets.” —Amar Doman, chairman and CEO of CanWel Building Materials Group Ltd., on the possibility of future acquisitions. He was speaking to analysts on a recent earnings call following the release of CanWel’s first-quarter results.

Classified Ads 

About Home Hardware Stores Limited Home Hardware Stores Limited is Canada’s largest Dealer-owned cooperative with close to 1,100 Stores and annual retail sales of over $6 billion.

Located near Kitchener/Waterloo, Ontario, Home Hardware remains 100% Canadian owned and operated.  Home hardware has received designations as one of Canada’s Best Cultures and Best Managed Companies and is committed to providing local communities with superior service and quality advice.

MERCHANDISE MANAGER – HAND TOOLS/SPORTING GOODS (#702TL)

MERCHANDISE MANAGER – GENERAL MERCHANDISE (#702GM)

Responsible to the Director, Merchandise Hardlines for executing on the plan to buy and the plan to sell for the specific portfolio.

Develop and maintain a productive and profitable product assortment in the Dealer Support Centre to drive retail sales, as well as managing vendor direct product.

Negotiate with vendors to support corporate initiatives and meet sales and margin targets and manage ongoing vendor relationships.

Develop and execute successful promotions and support marketing initiatives.

Effectively lead and motivate the hand tools/sporting goods team to achieve objectives.

QUALIFICATIONS:

College/University Diploma/Degree in Business and/or Purchasing.

Previous experience as a Merchandise Manager or buyer preferred.

Excellent communication, planning, organizational and negotiating skills.  High energy with an entrepreneurial attitude.

Willingness to travel and work extended hours.

Interested applicants, please submit your resume to Dayna Weber, Recruitment, Human Resources at hr@homehardware.ca. Full posting available at www.homehardware.ca. Phone: 519-664-4975 34 Henry St W, St. Jacobs, ON, N0B 2N0

*While we appreciate all applications received, only those to be interviewed will be contacted.

We will accommodate the needs of qualified applicants on request under the Human Rights Code in all parts of the hiring process

ST. JACOBS MERCHANDISE DIRECTOR, MERCHANDISE HARDLINES (#1337AB)

HOURS:  8:00AM TO 4:30PM GRADE:  Salary With travel and additional hours as needed. 

JOB DESCRIPTION:

Responsible to the Vice-President, Merchandise Hardlines for executing on the plan to buy and the plan to sell for the Hardlines portfolios. Provide leadership, direction and oversight to the Hardlines Merchandise Managers for the effective execution of their portfolios to achieve corporate financial and operational targets. Develop and execute product category strategies including well-rounded assortments, vendor relationship management, product sourcing and marketing initiatives support contributing to the Dealer and Corporate profitability. Responsible for leveraging Home Hardware’s volume and negotiating the best possible programs / pricing for the Dealer-Owners. Remove obstacles and barriers for the Merchandise Managers assisting them in achieving their goals. Develop, implement and monitor short- and long-term objectives, plans, programs and budgets to secure Home’s position in the marketplace. Maintain a current understanding of business drivers and changes by staying attuned to industry developments. Establish and achieve financial and operational plans and goals including resource and budget planning/ management. Provide leadership to department, promote open communications and encourage ongoing learning and development. Collaborate with business partners, Home departments and Dealers to develop and maintain the merchandise portfolios that supports organizational needs for existing and future requirements.

QUALIFICATIONS:

College/University diploma/degree in a business-related field, merchandising or retail strategy. Minimum seven years’ experience as a senior leader in the retail industry.  In depth knowledge of the hardware and building material product categories.

Strategic thinker with the ability to set vision and to develop and execute plans. Strong leadership and relationship capabilities, including coaching, training and development of talent. Excellent communication both oral and written, with strong planning, organizational and presentation skills.  Ability to effectively and positively communicate and support business change. Strong problem solving, attention to detail, negotiation and customer service skills. Ability to work under pressure and handle multiple demands and competing priorities. Ability to interpret financial statements, prepare, monitor and present budgets. Excellent computer skills with Microsoft Office products. Ability to work additional hours as required to fulfill the responsibilities of the position, with ability to travel as needed.

INTERESTED APPLICANTS, PLEASE SUBMIT YOUR RESUME TO: Dayna Weber, Recruitment, Human Resources hr@homehardware.ca. Phone: 519-664-4975 34 Henry St W, St. Jacobs, ON, N0B 2N0 Deadline:  Wednesday, May 15, 2019

ALL CURRENT JOB POSTINGS ARE ACCESSIBLE AT F\SPECIAL\HR_RELATED\POSTINGS\ We will accommodate the needs of qualified applicants on request under the Human Rights Code in all parts of the hiring process.

About Home Hardware Stores Limited

Home Hardware Stores Limited is Canada’s largest Dealer-owned cooperative with close to 1,100 Stores and annual retail sales of over $6 billion.

Located near Kitchener/Waterloo, Ontario, Home Hardware remains 100% Canadian owned and operated.  Home Hardware has received designations as one of Canada’s Best Cultures and Best Managed Companies and is committed to providing local communities with superior service and quality advice.

FOREST PRODUCTS MANAGER (#702FP)

Responsible to the Director, Lumber and Building Materials for identifying and negotiating the best possible Forest Products Category programs and pricing for our Dealers.  Ensuring support for corporate initiatives and meeting sales and margin targets.

Responsible for providing leadership to our Forest Products Commodity traders located across the country, to achieve Forest Products department objectives in the pursuit of contributing to Dealer and Corporate profitability.  Maintain Dealer confidence in our Forest Products purchasing plans. Develop and maintain Mill relationships.

Responsible for managing Forest Products Department infrastructure to support various needs including: national and regional product assortments, program negotiations and supplier relationships, development and execution of successful promotional programs setting retails as appropriate and analysis requirements.

Overseeing of sales and operations of the Kitchener LBM Dealer Support Centre including annual budgeting and achievement of targets.

QUALIFICATIONS: College / University diploma or degree in Business and/or Marketing.

Minimum five years leadership experience in the industry and a strong product knowledge of Forest Products and/or Millwork required.

Ability and willingness to travel throughout Canada.

An experienced negotiator with the ability to see the big picture.

Interested applicants, please submit your resume to Dayna Weber, Recruitment, Human Resources at hr@homehardware.ca. Full posting available at www.homehardware.ca. Phone: 519-664-4975 34 Henry St W, St. Jacobs, ON, N0B 2N0

*While we appreciate all applications received, only those to be interviewed will be contacted.

We will accommodate the needs of qualified applicants on request under the Human Rights Code in all parts of the hiring process. 

Looking to post a classified ad? Email Michelle for a free quote.

Hardlines
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