May 23, 2016 Volume
xxii, #21
“Nothing great in the world has been accomplished without passion.”
—Georg Wilhelm Friedrich Hegel, (German philosopher, 1770–1831)
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With final hurdles cleared, Lowe’s closes deal to buy RONA
BOUCHERVILLE, Que. & MOORESVILLE, N.C. — The biggest deal in the history of Canadian home improvement retailing, and one that has been in the works in one form or another for the past five years, has finally closed.
Lowe’s Cos. has completed the acquisition of RONA inc. in a deal worth $3.2 billion (U.S.$2.3 billion). After securing shareholder support at the end of March, the deal got the final approval it needed on May 13 when the Canadian Competition Bureau deemed that the takeover will not limit consumer choice.
Lowe’s made a friendly, albeit controversial, takeover bid for RONA back in 2012 that was worth $1.8 billion. But that offer was made just ahead of a provincial election in Quebec, and got a lot of resistance from the Quebec government, which perplexed the executives at Lowe’s.
Lowe’s Canada intends to move its head office from Toronto to RONA’s headquarters in Boucherville, Que., with Lowe’s Canada President Sylvain Prud’homme in the lead role. Lowe’s plans to retain most of RONA’s current employees and maintain key executives from RONA’s leadership team. It also reaffirmed it will remain committed to Canadian vendors, expanding relationships that both Lowe’s and RONA have developed with domestic manufacturers and suppliers.
Lowe’s says it will continue to operate RONA’s multiple retail banners, with enhanced distribution services to independent dealers. The result will be Canada’s number-two home improvement retailer after Home Depot Canada, with revenues expected to exceed $6 billion.
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Ex-RONA CEO Robert Dutton joins board of directors of La Coop fédérée
MONTREAL ― Robert Dutton, former president and CEO of RONA inc., has joined the board of directors of La Coop fédérée, where he will help out with Groupe BMR.
Dutton joined RONA in 1977. Under the mentorship of then-chairman Henri Drouin, the young Dutton could not speak a word of English when he became CEO in 1992. But that was just one of the obstacles he overcame as he pushed his dream to create Canada’s largest home improvement retailer, one that, in his own words, would provide Canadians with jobs and become a role model for corporate sustainability.
Under his direction, RONA expanded beyond its original Quebec market, and did indeed become the country’s largest home improvement retailer, with combined sales from all points of sale at one point exceeding $6 billion. RONA’s consolidated sales under Dutton’s leadership increased from $450 million to more than $4.8 billion. He was finally ousted following a failed takeover of RONA by Lowe’s in 2012.
In his new capacity, Dutton will take on a number of duties and functions as part of Quebec’s second-largest retail home improvement group—and one of the top 10 in the country. Most notably, he will be part of the audit committee of La Coop fédérée and he will lend his expertise to the consolidation of the BMR acquisition.
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Outstanding retailers will be honoured at Hardlines Conference
WORLD HQ, TORONTO — Canada’s hardware and home improvement retailers are among the best in the country. At Hardlines, we honour the best of the best with the Outstanding Retailer Awards program.
The ORAs are the industry’s only independent awards program dedicated to celebrating the achievements of hardware, home improvement, and building supply dealers in Canada. In its 24-year history, the program has honoured more than 140 retailers. Any Canadian home improvement retailer that has operated under its current ownership for at least two years is eligible.
Individual owners and managers, as well as retail and buying group head offices, can nominate candidates in any of the following categories:
1. Best Hardware Store (any size)
2. Best Building Supply/Home Centre (under 15,000 square feet)
3. Best Building Supply/Home Centre (over 15,000 square feet)
4. Young Retailer Award (a store manager 35 or under; entrants may be owners or chain employees)
5. Marc Robichaud Community Leader (open to all stores, its purpose is to celebrate the outstanding contributions, events, charitable donations, etc., made by a store’s staff, managers, or owners to the community they serve)
6. Best Large Surface Retailer (over 65,000 square feet)
7. Best Contractor Specialist Store
Awards winners will receive:
- Admission to the 21st Annual Hardlines Conference;
- A trip for two to Niagara Falls, including one night’s accommodation at the Sheraton on the Falls hotel in Niagara Falls, Ont.;
- An inscribed plaque;
- A marketing package that includes a write‐up in Hardlines Home Improvement Quarterly Magazine;
- A customized video and photo ready to be sent to local media.
The awards ceremony and gala dinner will take place on Tuesday, October 18 at the Sheraton on the Falls Hotel in Niagara Falls, Ont.
Applications can either be submitted online by clicking here or they can be completed and mailed in to the Hardlines World Headquarters: 528 Queen Street East, Toronto, Ont., M5A 1V2. Applications must be received by Friday, July 29 at 5:00 p.m. More information can be found on our website.
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Canuck vendors keep busy at the National Hardware Show
LAS VEGAS ― The National Hardware Show remains the must-attend event for Canadians in retail home improvement. The range of companies on hand, both exhibiting and walking the show, bore that out.
But not all exhibitors were on the show floor. Ames/Garant went all out with a private meeting room in the upper mezzanine (shown here), rather than taking a traditional booth on the show floor. There, the company was able to showcase a full range of new lines for its Ames and Garant brands. Product Manager Laurie-Ann Boivin pointed out a step-up line of rakes and hoes, along with a heavy-duty line of rakes for pros, all of which will be available to dealers in August. Also: a very cool hose reel in a deck box, so it can double as a coffee table on one’s deck.
At the Gardena booth, one garden product embodied the latest technologies. Gardena’s Jay Sterling showed a robotic mower the size of a canister vacuum cleaner. It will operate non-stop all summer to keep a lawn trim. Sensors keep it safe around pets and children.
Other companies, like knife and flashlight maker Coast, are keen to grow their business north of the border. Marty Reardon, Coast’s national sales manager for Canada, said business is growing in this country, with both Canadian Tire and Lowe’s Canada doubling their SKUs. He said customers “recognize the value of paying up to $40 for a flashlight that offers durability and a warranty.”
Vendors overall found the show successful, as it let them connect with both existing Canadian customers and potential new customers from the U.S. “It reminds me of Chicago,” said Bob Shaw, VP of sales and marketing for Nour Painting Tools, referring to the halcyon days of the show at its former location. “Busy, busy, busy all day.”
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CLASSIFIED ADS
Sales Representative North Saskatoon
Sherwin-Williams is hiring a Sales Rep in N. Saskatoon. This position is responsible for increasing sales and profit by growing key, targeted independent dealers within an assigned territory.
The position will service and grow existing customers; develop and implement business plans, oversee program implementation and develop customer relationships to expand product offerings. The sales representative will also be
responsible to grow the business through prospecting new customers, presenting sales opportunities, product training and CRM utilization.
- This position will cover the following geography: Northern Saskatchewan
- Candidate must live within the geography/territory stated above
- Travel % = 60%
- 2+ years of outside sales experience with a proven track record of sales success. Preferred experience selling to independent paint dealers,
co-op’s/hardware stores, distributors, contractors or architects.
Please state "to apply for this position visit http://careers.sherwin-williams.com/careers/openings/, click on Careers@Sherwin-Williams and search req # 16000668".
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