November 16, 2015 Volume xxi, #43

“I suppose I didn’t know what I’d become, but I always wanted to be extremely brave and I wanted to be a constant reminder to the universe of what passion looks like. What it sounds like. What it feels like.”
—Lady Gaga (American songwriter, singer and performance artist, 1986- )

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RONA’s third-quarter sales dip on increased profits

BOUCHERVILLE, Que. — Consolidated revenues for RONA in its third quarter totalled $1.16 billion, down from $1.17 billion in the third quarter of 2014. This dip results from a 6.9% decrease in distribution segment sales, reflecting in part an early slowdown in purchases by 20 franchised big box stores that RONA acquired during the quarter.

However, retail segment sales were up 1.3%, helped by 1.1% growth in same-store sales. RONA reports that the increase in same-store sales reflects the success of the repositioned Reno-Depot banner and a strong performance in Ontario and British Columbia. However, the company reported that difficult market conditions persisted in Alberta and Quebec.

The acquisition of the franchised stores, all except two of which are in Quebec, marked a move by RONA to take greater control of its big boxes following the repositioning of its Reno-Depot stores, which are also big boxes. That repositioning has proved successful in Quebec, and is being rolled out to other traditional RONA big box stores across the country.

RONA is looking for other ways to get a firmer hold on its future. The board has approved the repurchase of up to 8,496,028 common shares over the next 12 months, representing 10% of RONA’s public float, or 7.95% of its 106,904,501 common shares issued and outstanding on November 10, 2015. The company has been actively buying back shares and over the past 12 months has repurchased 9,207,281 common shares worth $125.7 million.

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Increased focus on building products at BMR buying show
QUEBEC CITY — Last week, Groupe BMR’s 2015 buying show welcomed its dealers at the Quebec City Convention Centre, where 500 partners and suppliers gathered to showcase their products.

Dealers walked the aisles of the three-day show, interacting with the vendors. The vendors HARDLINES spoke with reported that the show was quite busy and extremely productive. 

Bruno Baldessari, BMR’s vice president of purchasing for LBM, noted that this year’s show featured far more building products than before. One of the new LBM products showcased on the floor was a line of wall coverings. This category was traditionally housed downstairs but brought up to the main floor this year. The Agrizone, BMR’s line of farm and agriculture products, was moved downstairs for this year, but Baldessari noted that the plan for next year is to have the entire show on one floor.

During the gala on the final evening, in addition to the annual store awards, Groupe BMR CEO Pascal Houle took a moment to acknowledge and honour two employees, Jacques Pelletier and Jean St-Maurice, for their exceptional work this past year in integrating La Coop fédérée’s stores into the BMR fold.

“Jean and Jacques both have a passion for hardware and renovation,” said Houle. “Their hard work and determination helped us through this transition period.”

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CanWel makes change to new EWP supplier with care

BLAINEVILLE, Que. — CanWel Building Materials Division, the national lumber and building materials wholesaler, has recently changed one of its key suppliers. But it does not take that change lightly.

The company sent out a release recently announcing it had concluded a supply agreement with Louisiana Pacific to carry that company’s SolidStart line of engineered wood products in Canada. The line includes a wide range of joists, LVL (laminated veneer lumber), and LSL (laminated strand lumber) beams, which will be stocked in all 15 of CanWel’s distribution centres across the country.

In the coming months, CanWel will work with its customers, including all the major LBM buying groups, to help them transition to the new EWP lines.

The move to LP’s SolidStart lines marks a departure from a multi-year relationship with Boise Cascade. But according to Michel Walsh, national director of product management and marketing for CanWel’s specialty products, important product lines such as engineered wood EWP command long-term relationships—relationships that CanWel respects. He adds that CanWel values the relationship it had with Boise, to the point that he was reluctant to make a big deal in print about the change, beyond ensuring that customers were aware of it.

Boise was a good supplier, but a range of factors forced the change to LP. “The big change for us is that most of LP’s products are made in Canada. That wasn’t the driving factor, but it was certainly an important one,” says Walsh.

Most of all, Walsh wants to stress that CanWel prefers to keep its brands up front. “CanWel is a good conduit for those products. We want to build our business around those brands,” he notes. “That’s pretty much how CanWel is built and the integrity is in the brand. That’s what it’s all about.”

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High-tech is a high priority at Lowe’s
SAN FRANCISCO — A 3D printer in space is just the latest example of how Lowe’s is pursuing retail innovation through technology. The giant home improvement retailer will provide NASA with a 3D printer that will be used in the International Space Station. The device, built by a company called Made in Space, features the Lowe’s logo and will be used to create tools in space.

“It is the first hardware store in space,” Kyle Nel, executive director of Lowe’s Innovation Labs, told Space.com.

Besides partnering with NASA, Lowe’s has made other breakthroughs through its Lowe’s Innovation Labs, the retailer’s proprietary technology development centre. A “holoroom” that was introduced in a Toronto-area store late last year lets customers visualize how they could use tools and materials sold at Lowe’s.

Through a partnership with virtual reality technology provider Oculus VR and Google, Lowe’s has upgraded the holoroom and begun rolling it out in 19 stores across the U.S. this month.

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FROM THE ARCHIVES: This week in 1995
Following its acquisition of 122 Woolco stores a year earlier, Wal-Mart would continue aggressive expansion in Canada at a rate of five new stores a year. It was nipping at the heels of mass merchant market leader Zellers by putting pressure on prices. Plus: Ontario farm co-op Growmark was promoting its “Country Depot” banner at its latest show; and Canadian Tire money moves to Western Canada. Walk through memory lane with us by clicking here!

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Home Hardware co-founder Walter J. Hachborn has been inducted into the Waterloo Region Entrepreneur Hall of Fame. The ceremony in Kitchener represented the return of the honour after a three-year hiatus. Initiated by the Prosperity Council in 2006, the award was revived by Waterloo Region this year. Accepting the accolade on Hachborn’s behalf, Home Hardware CEO Terry Davis praised his “innovation, hard work, and commitment” throughout a career spanning nearly eight decades.

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CLASSIFIED ADS

Bilingual Sales Coordinator
Positec manufactures and markets the Rockwell and Worx line of home improvement tools and accessories to professional contractors and home improvement enthusiasts around the world.  We are currently seeking a Bilingual Sales Coordinator to be responsible for supporting the sales team in attaining annual sales targets and operates with management and clients to determine business requirements. This position is instrumental in assuring focused and productive communication with the new and existing clients, as well marketing & logistics departments. Resolves all complex inquiries from the clients and ensures customer satisfaction. The Sales Coordinator is responsible for various administrative functions.  Previous Sales Coordinator experience is a must.  This is a remote position.  Ideal candidate will have a proven track record of effectively working from a remote location.  Please send resumes & salary requirements to kammi.parker@positecgroup.com.

Account Manager
Positec manufactures and markets the Rockwell and Worx line of home improvement tools and accessories to professional contractors and home improvement enthusiasts around the world.  We are currently seeking an Account Manager to be responsible for supporting the company's sales goals through professional sales techniques and good customer service, maintaining quality relations with existing accounts, and providing sales and marketing coverage. 75% of focus will be on managing assigned account responsibility 25% focused on internal support and assigned tasks. Ideal candidate must have industry related outside sales experience. Please send resumes & salary requirements to kammi.parker@positecgroup.com.