NIAGARA-ON-THE-LAKE, Ont. — Branding can work globally, nationally and locally. That was just one of the conclusions of the recent Hardlines Conference, at Queen’s Landing in Niagara-on-the-Lake, Ont.

The conference’s theme of branding carried through the presentations, starting with insights from one of the country’s leading brand experts, Ian Madell, managing partner and president of Level5 Strategy Group. He pointed out that a company’s brand is a key asset, and one that is too-often under-valued―or misused.

Over the two days of the conference, the conversation also turned to the importance of the local brand, as used by independent dealers in the retail home improvement industry. Steve Buckle, president of Winnipeg-based Sexton Group, said the most important brand for his group is “the sign above the door” of a local building centre. He explained how Sexton Group supports dealers who each have their own strong brands in their respective markets.

Catherine Vaugh has worked with some of the most famous global brands, including Reebok. Now she’s the brand building manager for Orgill, Inc., the hardware wholesaler. Her job is also to support independents who fly their own banners. She does it with a range of services provided by Orgill. “I see us as an independent retailer’s brand building marketing department.”

Vaugh advised delegates that even local dealers can learn from global brands. “Stay steadfast and true to your core values when managing your brand,” she said.

Buckle recapped the need for a strong national focus on local banners. “Across the country, Sexton members represent hundreds and hundreds of brands. It’s our job to support them.”

QUEBEC CITY — The news that Sico’s parent company will transfer the paint manufacturer’s operations to Ontario has caused politicians to mull taking their business elsewhere, prompting concern on the part of retailers who rely on Sico sales.

PPG Industries made its announcement on November 15, pulling the plug on 125 jobs at Sico’s Quebec City plant and its head office and distribution centre in Boucherville, which will both close their doors by September 2019. In a statement, PPG called the decision “difficult” but “necessary to remain competitive in the market,” and pledged to maintain “a strong presence in Quebec and in Canada.”

The company took a significant hit earlier this year when Lowe’s announced it would retire the PPG brands from U.S. stores, a move that has no impact on Sico sales to Lowe’s in Canada.

In Quebec, where the sales of RONA and two of Bombardier’s units have wounded popular pride, political reaction was swift. Sico was Quebec-owned from its start in 1937 until its acquisition in 2006 by Dutch multinational Akzo Nobel, which sold it to PPG in 2013.

PPG’s bombshell dropped as Quebec Premier François Legault, a former Sico director, was capping his first month in office with a trade mission in Boston. The Air Transat co-founder, who ran on an economic nationalist platform, questioned “whether Quebecers should continue to buy from Sico” after the move to Ontario. When pressed about whether that meant a boycott, Legault reiterated that “Quebecers must be sensitive to buying local” and said he would see what other paints are made in the province.

The next day, Régis Labeaume, Mayor of Sico’s hometown of Quebec City, took a stronger tone, while still stopping short of calling for a boycott. “I will buy paint that is made in Quebec,” he said, “it’s as simple as that.”

Quebec-based paint makers are seizing the opportunity. Montreal’s Denalt Paints is launching a marketing blitz, with billboards, radio spots and online ads, while Laval’s Micca Paint is making similar plans. MF Paints, which has scooped up a laid-off Sico chemist, is looking to grow to 20% market share, more than doubling its current position.

Not everyone welcomes the trend, however. Mathieu Normand-Bergeron is co-owner of Juneau et Frère in Quebec City, which exclusively sells Sico products. He’s concerned that nationalist rhetoric from political leaders will hurt Quebec businesses. “Such remarks directly attack merchants like us,” he told Le Journal de Québec.

AQMAT president Richard Darveau also distanced his organization from calls for a boycott. “AQMAT is a strong defender of this traditional brand,” he says. Though “the loss of industrial jobs is always sad news,” Darveau says it’s part and parcel of a global free market.

MOORESVILLE, N.C. — While sales were up, Lowe’s Cos. saw profits slip in its third quarter. Under CEO Marvin Ellison, the company wasted no time making cuts to streamline the business, which include pulling out of Mexico and dropping certain non-core activities in the U.S., such as its Iris Smart Home initiative.

Profits were impacted by a number of one-time charges. The strategic reassessment revealed by Lowe’s Cos. in its latest quarterly results report resulted in $280 million of pre-tax charges. The charges included $121 million related to the closing of 20 under-performing stores in the U.S. and 31 locations in Canada, including 27 retail outlets.

Another $123 million was associated with the company’s decision to close all its Orchard Supply Hardware locations in the U.S. Lowe’s is also exiting the Mexico market, where it has 13 stores, at a cost of $22 million.

These charges were incurred to improve Lowe’s financial returns and to “allow the organization to focus on the key drivers of long-term value creation,” said David Denton, executive vice president and CFO of Lowe’s, during a call to analysts following the release of the company’s third-quarter results.

TORONTO — Home Depot Canada has been working with suppliers to create a system for delivering flowers and arrangements as part of its commitment to online sales. According to Mark Beaty, senior seasonal merchant for outdoor, the company offers a whole range of live goods available only online.

He says his team worked for two years with suppliers, packagers and UPS, the delivery service, to develop a system. One of the challenges was the packaging itself, he adds. UPS has a strict rule that anything it delivers must be clean. “They have a no-dirt rule.” That meant coming up with a way to get the products delivered intact—without a mess.

Home Depot Canada ships its live goods nationwide from a farm in King City, Ont., which assembles and packs all the orders. The farm grows some of the plants, and works with a network of local farms to round out assortments.

Beaty says larger arrangements with more fashion sense have been developed in recent years, opening up a market for bigger ticket items. While simple arrangements in years past would average around $20, the latest products are hitting price points near $100.

Sarah Wielens has joined EAB as marketing manager. She brings with her a wide range of experience in the marketing field, most recently as a freelance strategic and tactical marketer. She will lead EAB’s existing marketing group to continue to promote the EAB-Exchange a Blade brand of exchangeable power tool accessories, while focusing on environmental sustainability.

...that the latest issue of our brand new online publication, Hardlines Dealer News, was sent out earlier this month. It’s filled with stories and tips for running your retail operation better. If you’re not getting your free copy, just click here to subscribe!

MONTREAL — RONA Matériaux Pont-Masson, an affiliate dealer with five stores already, including one in Ontario, will open a sixth store next spring in the Pierrefonds-Roxboro borough. This will be co-owners Éric and Stéphane Bailey’s first store on the island of Montreal. The 9,000-square-foot store will have another 70,000 square feet of lumber yard, including a covered warehouse. The dealer’s other locations are in Valleyfield, Rigaud, Mirabel and in Alfred, Que.; and one in Casselman, Ont., which opened in June 2017.

MOORESVILLE, N.C. — Lowe’s Cos. reported Q3 profits of $629 million, down from $872 million last year. At the same time, the company announced its intention to exit its retail operations in Mexico, along with certain non-core activities in the U.S. Sales for the quarter increased 3.8% to $17.4 billion from a year ago and comparable sales by 1.5%. Expenses included $121 million of long-lived asset impairment and severance obligations related to the store closures in Canada and the U.S.

LONDON — Lowe’s isn’t the only giant home improvement retailer to announce it’s pulling out of foreign markets. British-based Kingfisher Plc, which owns B&Q, the largest home improvement chain in Europe, will withdraw from Portugal, Spain and Russia. The company announced the moves along with its third-quarter earnings. Kingfisher says it will focus on its key markets in Britain and France, where it operates the Castorama chain of home improvement big boxes. Sales for Kingfisher overall were up 0.2% amidst tough retail conditions, while same-store sales were down 1.3%. France was the slowest market, with same-store sales down 7.3%.

BURLINGTON, Ont. — IKEA says up to 150 jobs may be cut from its Canadian operations over two years as it responds to changing consumer behaviour and moves to solidify its e-retail focus. The cuts are part of a global streamlining that will see about 7,500 positions eliminated worldwide. They include some 50 redundancies at the Burlington, Ont., head office. In a release, the company said it would redouble attention to “its e-commerce platform, to better meet the needs of its customers” while also exploring new store formats and strengthening its distribution network.

BRAMPTON, Ont. — Loblaws will begin to test a “shop and scan” app at five Greater Toronto stores, allowing shoppers to save time at checkout. The PC Express app, which will be rolled out to a further three stores in the region over the coming weeks, uses the free in-store wifi network. Customers can scan items as they shop and then place them in their carts. Digital scales will be equipped to weigh produce, and a barcode for the purchase total can be quickly scanned at traditional or self-service checkout lanes as well as dedicated stations for app users.

SUPPLIER NEWS

MONTREAL — Intertape Polymer Group has exercised its option to acquire the outstanding interest in Powerband, of which it became majority owner last fall. The Desai family, which founded the Indian-based supplier of acrylic adhesive-based carton sealing tapes and stretch films in 1994, retained a 24% stake after the sale to IPG in September of 2017. Once the $9.9 million transaction satisfies Indian regulatory conditions, IPG will hold all issued and outstanding common shares of Powerband.

ECONOMIC INDICATORS

Wholesale sales declined for a second consecutive month, down 0.5% to $63.2 billion in September. Lower sales were recorded in five of seven sub-sectors, led by the machinery, equipment and supplies and the personal and household goods sub-sectors. However, sales in the building material and supplies sub-sector increased 1.5% to $9.5 billion, following a 3.9% decline in August. The lumber, millwork, hardware and other building supplies industry category saw the biggest gain, up 3.0%. In volume terms, wholesale sales declined 0.7%. (StatCan)

U.S. housing starts rose by 1.5% overall in October, despite a 1.8% downturn in construction of single-family homes. The seasonally adjusted annual rate of starts for the month was 1.23 million, up from 1.21 million in September. Building permits saw a slight decline, falling 0.6% to a rate of 1.26 million. (U.S. Commerce Department)