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November 17, 2014 Volume
xx, #43
“I’d like to live like a poor man, but with a lot of money.”
—Pablo Picasso (Spanish painter, sculptor and poet, 1881-1973)
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RONA’s solid profits pave way for renewed expansion
BOUCHERVILLE, Que. — RONA inc. has reported essentially flat sales results for its third-quarter, with consolidated revenues of $1.167 billion, compared to $1.169 billion a year earlier. However, profits surged by 28.4%, going from $30.0 million to $38.5 million.
The company’s solid financial footing has helped position it for renewed growth, says company president and CEO Robert Sawyer. After closing 11 stores last year, RONA will open five more in 2015, including its first two Réno-Dépôt stores outside of Quebec (see next story —Editor).
While sales growth was slightly negative, the dip was small and the second consecutive quarter of improved profitability. The stabilization of its results came from 2.0% same-store sales growth at retail — the first in four years — and an 8.3% improvement in the distribution segment.
The Totem stores in Alberta, which were repositioned last year, plus the strong economy in Western Canada, further aided RONA’s results. In Quebec, RONA’s largest market, a strategy to be more competitive through reduced margins helped boost same-store sales, while the redeployment of the Reno-Depot stores had a positive impact on the retail segment performance. “Out west is the best environment right now for us,” said Sawyer.
Over the past 12 months, RONA managed to reduce its net debt from $347.8 million to $188.4 million.
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RONA to expand with first Réno-Dépôts outside Quebec
BOUCHERVILLE, Que. — RONA plans to start opening new stores again. With the exception of an outlet in Halifax in May 2014, these will be the company’s first new corporate stores since the arrival of its new president, Robert Sawyer, more than a year and a half ago. And two of these stores will represent the first locations for the Réno-Dépôt concept outside of Québec.
“We are also currently analyzing other opportunities and regions where we must protect and reinforce our market share or where the investment is justified by strong growth potential and good return on invested capital … Given our leaner structure, any organic sale growth should directly lead to profit improvement,” said Sawyer.
The big boxes outside of Quebec will in fact be existing stores that will be re-opened after being shuttered in recent years. One is in Calgary North and the other is RONA’s big box in Aurora, Ont. Both stores will be downsized to around 70,000 square feet from their original size of almost 100,000 square feet. They will use the Réno-Dépôt name.
Two other locations will be corporate stores: a 35,000-square-foot outlet in Halifax and a 50,000-square-foot store in British Columbia in a community yet to be confirmed. Another outlet in Rockland, Ont., will be an affiliate store, weighing in at 25,000-35,000 square feet.
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Ace has more robust to offer than buying groups says president
WINNIPEG — Ace International president Bob Moschorak says buying groups like the ones in this country just don’t exist in the U.S. And, he adds, Canada’s population can’t support the ones we have. “There isn’t the volume to support them and they are duplicating efforts.”
He says Canada’s retail chains, including Home Hardware and RONA, are doing the jobs of all the buying groups, as well as providing a full range of services and programs.
The most effective buying groups, he says, are the ones that remain focused on purchasing and the getting volume rebates.
Moschorak used this thesis to introduce Ace’s partnership with RONA at the TruServ Canada dealer market in Winnipeg in September. RONA plans to rely heavily on its Western distribution business to manage and promote the Ace brand.
Ace is North America’s largest retail home improvement co-op, with more than 4,200 dealer members worldwide. The value of Ace’s brand for Canadian dealers, he says, will be a wider range of products and programs that can be used by dealers at a local level to help them sell better.
To support the Ace initiative, RONA and TruServ have a new dealer support team, while TruServ is honing its own offering to independents, with better tie-ins on flyers and more regionalized assortments. Some dealers have even noticed better delivery times as logistics have improved.
Finally, Moschorak believes that, given the state of flux of the industry today, a number of good prospects exist for which the Ace brand would be a good fit.
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Canadian Tire tackles Christmas with new house brands
TORONTO — Christening itself “Canada’s Christmas Store,” Canadian Tire has ramped up its holiday offerings on a number of fronts this year. Recognizing the importance of seasonal sales, the giant retailer continues to expand and fine-tune its holiday assortments, launching its own style and décor brand, called “Canvas.” The holiday Canvas collection includes a range of Christmas tree decorations and décor items.
The self-branded line supplants the Christmas assortments that bore the Debbie Travis name in years past. That partnership, which began in 2005 with a line of paint, eventually expanded to some 1,200 products called the Debbie Travis Collection. Now, a search of Canadian Tire’s website will turn up nothing more than a couple of dozen Debbie Travis-branded curtain rods and floor mats. Canadian Tire says it is “re-evaluating” its relationship with the Canadian home décor maven.
In an effort to be a “one-stop-shop” for the holidays, Canadian Tire is offering extensive seasonally themed home entertainment products—everything from napkins and table cloths to themed bowls and plates. The artificial Christmas trees run as high as $500 for a seven-foot-plus “Whistler Pine” that comes pre-lit with 1,300 tiny incandescent lights.
Also on the lighting front, Canadian Tire has taken the Noma brand in-house, making the popular Christmas lights a proprietary brand, and not available anywhere else in the Canadian market.
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Classified Ads
Better Living Products International is a world-leading designer, manufacturer and marketer of unique, high-quality bath and shower organization products. Established in 1991, it continues to be best recognized for its Award-Winning product, The Dispenser™. Better Living has flourished to new heights and is on a major growth curve with the upcoming introduction of several new and innovative products. The search is on to fill the following positions with energetic, highly motivated, organized and results driven candidates:
Sales Assistant
The successful candidate will be accountable for the support, coordination and execution of our sales and marketing initiatives. Responsibilities include assisting the sales team in maintaining positive client relationships and to act as the liaison on all day-to-day activity. Experience in a similar or related administrative role combined with excellent communication, organization and interpersonal skills are required.
Product Manager
The ideal candidate has a solid understanding of product marketing concepts and has industry product management experience. This person will manage products through their lifecycle and be accountable for the management, coordination and execution of various product initiatives. We are looking for a flexible and enthusiastic team player that is highly detailed and proficient in multi-tasking.
National Account Manager
A sales professional with industry knowledge is required to assist in achieving our aggressive growth plans by managing specific key accounts and channels within the USA. The successful candidate will possess account management experience and demonstrate exceptional interpersonal, communication and selling skills.
All positions will be based at our world-wide corporate headquarters in Vaughan, Ontario. We offer competitive wages, benefits and a fun working entrepreneurial environment. Please submit your resume to Camillo Caperchione, Executive Vice President, Better Living Products, Email: camillo@dispenser.com
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BLANCO CANADA INC. is Hiring a Business Analyst for our Brampton location.
The Business Analyst will be responsible for monitoring sales performance and utilizing analytical techniques to assist in making key forecast and replenishment decisions. This position will be responsible for generating key financial reports, identify trends, lead monthly forecasting meetings and assist with the program management of IP and APO. This position will report into the Director of National Sales and will work closely with various departments.
Interested candidates should have a Post-secondary education with a minimum of 2 years of work experience in a sales analyst or similar role in the consumer goods industry. Advanced excel skills are required, and working knowledge of SAP is strongly preferred. If you, or anyone you know, may be interested in applying, please send in your resume to the Human Resources Manager at hrinfo@blancocanada.com .
BLANCO CANADA INC. is Hiring a Product Manager for our Brampton location.
The Product Manager will be responsible for product planning. This includes managing the product throughout the product lifecycle, gathering and prioritizing product and Canadian customer requirements. The Product Manager will establish processes for new product introductions, including initial product launch presentations and forms. The Product Manager will assist with creation of marketing concepts and ensure the accuracy of all product technical documentation including specification sheets, product bulletins and parts breakdown drawings. This position will report into the Director of National Sales and will work closely with Sales and Product Management international teams, to support the development of the Blanco Canada product portfolio.
Interested candidates should have a post-secondary education with a minimum of 2 years of work experience in product or marketing management. This position requires overnight travel and proficient use of SAP, AutoCad and graphics systems. This position requires the ability to prioritize, manage and execute multiple projects within tight timelines. Ability to speak, write and read German and/or French is an asset. If you, or anyone you know, may be interested in applying, please send in your resume to Human Resources at hrinfo@blancocanada.com .
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Fusion Products Limited
Key Accounts Manager
Fusion Products Ltd. is a leading supplier of outdoor living and landscape lighting products to North America retailers, with head office in Mississauga, Ontario. We are seeking a dynamic individual to fill this role.
Duties will include
- Development of sales, merchandising, assortment planning for assigned accounts.
- Development and execution of a comprehensive plan to drive sales and profitability
- Manage budgets and sales goals based on corporate sales objectives.
- Maintain complete competitive files and field analysis including regular ‘comp’ shops
Experience required:
- Post-Secondary education in Business and/or equivalent experience,
- Key Account management in a similar role
- Strong organizational, interpersonal and computer skills,
- Ability to travel
- Desire to exceed customer expectations
- This role may include managing Canadian and/or US account
To apply, please send your resume and cover letter stating salary expectations to: andrew@fusionproducts.ca
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