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November 23, 2015 Volume
xxi, #44
“When I grew up, what was interesting for me was that music was colour and life was grey. So music for me has always been more than entertainment.”
—Pete Townshend (British musician and songwriter, leader of the band The Who, 1945- )
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Home Depot profit soars on solid sales, digital growth
ATLANTA ― For its third quarter, Home Depot reported sales of $21.8 billion, a 6.4% increase from the third quarter of fiscal 2014. Comparable store sales for the period were up 5.1%. Net earnings for Q3 were up 13% to $1.7 billion, while diluted earnings per share increased 17.4%. The results include a pre-tax expense of $20 million related to the company’s 2014 data breach.
The company reported positive comps from all departments. Appliances, tools, plumbing, decor, lighting, hardware, building materials, and indoor garden were especially strong, while outdoor garden, kitchen and bath, electrical, millwork, flooring, lumber, and paint were positive, but below the company average. Home Depot continues to pursue the contractor customer, and reported that related categories, such as power tools and accessories, commercial lighting, HVAC, and fencing, all enjoyed double-digit comps.
Home Depot’s comp sales continue to show a spread between domestic (U.S.) business and the total business. While comps exceeded 5% for the entire company, U.S. comps were much higher, up 7.3%, suggesting much lower comps for operations in Canada, and to a lesser degree, Mexico. In a call to analysts, CEO Craig Menear mentioned Canada only briefly, noting that the variability in performance across regions “has narrowed considerably.” He added that “our Canadian business posted positive comps in local currency, making it 16 consecutive quarters of positive comps.”
Canada is also seeing some innovation on the digital front. Home Depot Canada’s website was “re-platformed” and went live earlier this month. Home Depot’s total online sales grew by about 25% in the third quarter and represent approximately 5.1% of overall sales. About 42% of all online orders are picked up in store.
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Castle president talks competition, North American market
TORONTO — Some of the best competition for independents in the last 20 years has come from big box stores, acknowledges Ken Jenkins. The president of Castle Building Centres spoke in October at the 20th annual Hardlines Conference to an audience of almost 200 retailers, wholesalers, and vendors. “The box made us better,” he said. “It made us better at what we do.”
He said the large-surface retailers had the ability to market the home improvement sector to the public. That raised awareness of home improvements and renovations, and helped educate homeowners, resulting in a more informed customer coming through the door—which has increased sales for everybody.
Jenkins also exhorted dealers and vendors to stay on top of the larger changes shaping this industry. “The industry needs to step outside of the day-to-day and work on their business.”
One of the trends he advised them to accept is the globalization of the business. “It’s a North American market and if you don’t think so, you can continue to keep your head in the sand,” he warned.
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Lowe’s Canada reports strong Q3 comp sales
MOORESVILLE, N.C. ― Lowe's Cos. has reported third-quarter net earnings of $736 million, a 25.8% increase over the same period a year ago. Sales increased by a healthy 5.0% to $14.4 billion from $13.7 billion.
Comparable sales increased 4.6% for the quarter, while comps for the U.S. home improvement business increased 5.0%. For the nine-month period, sales were up 4.9%, and comp sales increased 4.9% year-to-date. Net earnings increased 12.8% for the nine-month period.
The company also reported “high single-digit comps” for its Canadian operations in Q3.
During the quarter, Lowe’s reported making gains in its efforts to sell more effectively to contractors. It also has been working to streamline payroll costs by making staff on the floor more efficient. Examples of these improvements include the wider use of iPhones and iPads by staff. Also, location-based technology that’s now on every product coming in to the stores tells employees exactly which aisle and shelf each product belongs.
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PM’s aging house could become Canada’s highest profile reno
OTTAWA — Mike Holmes and Bryan Baeumler are among the contractors making known their interest in fixing up the prime minister’s dilapidated official residence. Holmes announced his eagerness to take on the job on his Facebook page, while Baeumler has said he would “jump at the chance,” in response to media inquiries.
Prime Minister Justin Trudeau has delayed moving his family into the lodgings at 24 Sussex Drive. The residence, which was built in 1868, is in need of more than $15 million in long-delayed repairs. It’s also the home the young Trudeau grew up in during his father Pierre’s premiership. In the interim, Trudeau and his family have moved into Rideau Cottage, which is on the property of the governor general’s residence, Rideau Hall.
Although built just a year after Confederation, it did not host a prime minister until Louis Saint-Laurent moved in in 1951. A major overhaul that year stripped the house down to its studs, and the chandeliers are among the few original furnishings remaining intact.
The Globe & Mail surveyed several architects about their visions for the historic property. Paul Dowsett is principal architect at Sustainable.TO, which specializes in restoring historic buildings with an eye to sustainability. He suggests insulation from Roxul could help to address the residence’s energy woes. Roxul’s Milton, Ont., plant produces mineral fibre insulation.
Canada’s highest-profile reno is coming at a time when renovations are increasingly crucial to the industry. CMHC is expecting housing starts to slow in 2016 and 2017. A Scotiabank report released in late October values home renovations in Canada at $53 billion and states these will drive investment in residential construction in coming years.
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FROM THE ARCHIVES: This week in 1995
Don Nash was president of Homecare Building Centres, the Ontario buying group that would later merge with TIM-BR MART in the West. In this issue from the archives, HARDLINES reports on Nash’s presentation to members of the Canadian Hardware and Housewares Manufacturers Association. Also in that issue: the ex-president of Canadian Tire takes over the ailing White Rose Nurseries chain and Weber Supply’s Jack Weber introduces more computerized innovation. Click here to read these blasts from the past!
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Eugene Roman, chief technology officer at Canadian Tire Corp, has been named the 2015 Private Sector CIO of the Year. The award recognizes the quality, insight, direction, and leadership of Canada's senior technology executives and is presented annually by the Information Technology Association of Canada, Canadian CIO Magazine, and the Canadian CIO Association.
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CLASSIFIED ADS
Customer Service Representative - Canada
The Customer Service Representative is responsible for achieving customer satisfaction within defined objectives for the company. Includes managing customer accounts via orders, complaints and problem resolution, customer communication, invoicing and responding to literature requests. High level of professional communication required.
The role requires a developed ability to accomplish a variety of complicated tasks in a high volume, fast-paced environment. Communication and organizational skills are at a premium in this role. Success in this position will require the balance between thinking, listening, and speaking in a purely positive way while following the rules and policies of the Company.
Primary duties and responsibilities:
- Answer all incoming customer calls and e-mails in order to resolve any issues or questions related to customer orders as well as enter all order requests
- Maintain accurate customer pricing and resolve pricing inaccuracies by researching
discrepancies
- Create and compile necessary documentation for the direct import program to ensure
that all items are invoiced correctly
Our ideal candidate will possess the following:
- High School Diploma or equivalent
- 5 –7 years customer service experience
- Exceptional communication and problem solving skills
- French speaking is required
Equal Opportunity Employer of Minorities, Females, Protected Veterans, and Individuals with Disabilities
Apply online at https://fiskars.applicantpro.com/jobs/
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