BOUCHERVILLE, Que. — Lowe’s Canada has brought its store detailing services in-house with the development of a new team, called the Merchandising Service Team (MST). The program originated with Lowe’s Canada’s U.S. parent, which introduced MST there at the beginning of 2019.

MST teams are composed of between five and seven store associates whose role is exclusively focused on merchandising tasks at Lowe’s-bannered stores.

They're responsible for executing resets, but they're also expected to “snake through the store” to carry out bay servicing. That includes ensuring planograms are properly executed and that labels are all accurate. The MST team must maintain product displays, readjust elevations and reposition products, while providing feedback on merchandising strategies.

According to Anne-Sophie Konrad, senior director, field merchandising for Lowe’s Canada, the goal is “to ensure a steady pace in maintaining merchandising programs in our stores so that they are ‘grand opening ready’ at all times and that customer experience is always at its best.”

The program for the Lowe’s-bannered stores is not the first time the company has relied on designated teams for this service, however, they were for its RONA and Reno-Depot banners only, not for Lowe’s stores. It most recently used Match Merchandising Group. Prior to that, the service had been executed by Montreal-based RDTS through its Imagine program.

So how is MST different from what was in place before? Konrad points out two main distinctions. First, she says, the new system takes pressure off employees and allows them to focus on their regular tasks. “The new MST staff report to the merchandising business unit and is 100% dedicated to merchandising tasks.” This, she adds, will further allow the resets to be more consistent from store to store.

“The second difference relates to our vendors, who benefit from the fact that our MST staff cater to all our bays and products,” Konrad says. “As a matter of fact, the program results in improved merchandising quality throughout our stores, so our stores are more attractive and the overall customer experience is enhanced.”

She adds that vendors will further benefit because Lowe’s Canada expects to be more efficient when executing merchandising projects, such as seasonal rotations.

How has the program measured up so far? Konrad is positive about the initial progress. “I must say that we are very pleased with the results to date. Our stores look better, but we are also increasing our speed to market, which is positive for us, for our vendors and for our customers.”

WORLD HEADQUARTERS, Toronto — The Hardlines Conference will boast a range of presentations about data, what it means and how to apply it to your business.

Paula Courtney is the president of Wiseplum, a user-friendly customer experience insights platform for retailers. She will talk about customer loyalty in the home improvement sector. Paula will share the findings of a 14-month-long study of Canadian consumers who had recently shopped at a home improvement retailer. She’ll be joined onstage by Shawn Stewart, VP loyalty and customer insights at Canadian Tire. In this session, you will learn about how much a home improvement retailer’s revenue is at risk, which problems are the most costly―and ways to recapture customer loyalty.

Peter Norman, vice president and chief economist, Altus Group, will give delegates valuable insight into the economy, housing markets and construction for the year ahead. A regular at the Hardlines Conference, Peter will offer a lively session exploring the outlook for housing starts, renovation spending and other construction activity. Along the way, Peter will also examine what’s new in the economies across the country and what issues are most likely to affect markets in 2020.

Another regular at the Hardlines Conference is Dan Tratensek, executive vice president of the North American Retail Hardware Association and publisher of Hardware Retailing magazine. Tratensek currently oversees NRHA’s research, communications, marketing and training program development. He will share the latest NRHA research on dealer trends and challenges.

Paul Sorrentino of Financeit will address what Financeit sees as the future of the home services business in retail. With a focus on the U.S. market and how U.S. retailers are leading the pack in installation services by connecting manufacturers with dealers and contractors, he’ll share his insights on the trends and patterns he’s identified within the growing do-it-for-me marketplace. And he’ll address some of the key challenges he sees retailers going through when they try to manage these services in-house.

The data stream at the 24th annual Hardlines Conference will round out presentations by retail leaders from across North America.

As Canada’s only truly national event bringing the entire hardware and home improvement industry together, the Hardlines Conference offers an incredible opportunity for delegates to meet in a professional yet casual setting. It will be held November 13 to 14 at the Kingbridge Centre, in King City, Ont., not far from the Toronto International Airport.

(Click here now for a list of all our speakers and to register for the conference!)

INTERNATIONAL REPORT ― The market worldwide for retail home improvement sales reached €594 billion ($861.7 billion) in 2018, and despite its relatively small population, Canada managed to rank number three overall. According to a new report produced jointly by the European Federation of DIY Manufacturers and the Global Home Improvement Network, the market worldwide grew by 1.1% from the previous year, but it lags behind global GDP, which grew by 2.5% last year.

It also falls short of growth in the Canadian market. The retail home improvement industry here grew by 3.8% in 2018 (according the latest annual Hardlines Retail Report.—your ever-helpful Editor). While not a banner year for Canada, its growth nevertheless managed to exceed the performance of many overseas markets.

That may also have something to do with why Canada, with the 10th-largest economy in the world (behind Italy and Brazil) ranks as the third-largest market in the world for home improvement sales―behind the U.S. and Germany.

In fact, 58% of worldwide home improvement sales are generated in North America, says the report, accounting for €343 billion ($497.6 billion). By comparison, the second-largest market is Europe. With overall sales of €173 billion ($251 billion), it comprises 29% of the market worldwide. The Asian-Pacific market represents the third-largest market, at €57 billion ($82.7 billion), followed by Latin America and Africa.

North America and Europe together represent approximately 87% of this market, a combined €516 billion ($757 billion). Approximately 81% of the Global DIY market, some €482 billion ($707 billion), is concentrated in only eight countries: the U.S., Germany, Canada, Japan, U.K., France, Australia and Italy.

(To learn more about this report and to order it for yourself, please contact our good friends at the Global Home Improvement Network.)

TORONTO — Acquiring well-known consumer brands has been an ongoing part of Canadian Tire’s growth strategy since the fall of 2016, and the company expects it to continue its importance in the future.

The latest acquisition, of Party City, exemplifies the retailer’s continued momentum in expanding its consumer brands portfolio in Canada and abroad. While Canadian Tire’s comps overall in the third quarter fell just shy of 2%, sales by its proprietary consumer brands in Canada were up 7%.

Today, Canadian Tire has 16 consumer brands, each with annual revenue more than $100 million. These include Helly Hansen and Party City, which adds not only a brand, but also 65 retail locations across Canada, and puts the company firmly in the home celebration category.

“And just like Party City, we said we will continue to build or acquire brands to strengthen our position in key categories or create new opportunities for growth,” said Allan MacDonald, Canadian Tire’s executive vice president, retail.

Those opportunities extend to sporting goods. CTR has acquired four bicycle brands: Raleigh, Diamondback, Redline and IZIP. In 2018, the company sold more than 600,000 bicycles; it will continue to use house brands to drive dominance in this and other select categories.

“We’ve learned a lot,” said MacDonald. “We’ve got a good feel for where we have opportunities to shore up some categories with iconic brands and where we have some opportunities to drive growth.”

Geneviève Fortin has joined garage-door technology company Garaga as communications advisor. Before joining Garaga, she was content editor for Contrast Lighting. Fortin replaces Jean-François Morin, who has retired.

DID YOU KNOW...

... that space is filling up fast for the 24th annual Hardlines Conference? Maybe it’s the incredible lineup of speakers. Or perhaps it’s the amazing venue, the Kingbridge Centre. Whatever the reason, people want to network and do business and share and learn. Don’t miss out! November 13 and 14 at the Kingbridge Centre, not far from the Toronto International Airport. Click here for more info!

HOFFMAN ESTATES, Ill. ― Sears parent Transform Holdco is taking advice from investment bankers on potential sales of its assets such as DieHard, sources have told the Wall Street Journal. The holding company, a creation of Eddie Lampert, is trying to turn around the fortunes of Sears and Kmart, which it bought out of bankruptcy at the beginning of this year. The DieHard brand was exclusive to Sears until a 2017 agreement made its products available on Amazon.

MOORESVILLE, N.C. ― Lowe’s Cos. has opened its first Lowe’s Outlet store, offering discounts on appliances with superficial blemishes. The former Orchard Supply Hardware location in Monrovia, Calif., is about one-third the size of an average Lowe’s store. The merchandise is not used, but rather it is scratched or dented.

BRENTWOOD, Tenn. ― Tractor Supply Co. reported that its Q3 net income came to $122.1 million, up 4.6% from $116.8 million a year ago. Diluted earnings per share increased 7.4% to $1.02 from $0.95. Net sales for the quarter increased 5.4% to $1.98 billion, compared to $1.88 billion in Q3 of 2018. Comparable store sales rose by 2.9%, as compared to an increase of 5.1% in the prior year’s third quarter.

SUPPLIER NEWS

ST. PAUL, Minn. ― Third-quarter revenues for 3M Co. fell, hit by weakness in the Chinese market and in certain key industries. In total, revenues fell to $7.99 billion from $8.15 billion a year ago. Sales rose by 0.8% in the U.S. and by 0.6% in the Latin America-Canada region.

MACKENZIE, B.C. ― The indefinite closure of the Canfor mill in this B.C. town is having a ripple effect on industry in the area, CBC News reports. East Fraser Fibre Mill relied on Canfor’s mill for surplus trim blocks and is now squeezed for raw materials. “We were running three shifts, then it got down to two shifts and now down to one. We’re trying to keep our people employed,” owner Pat Glazier told the CBC.

CLEVELAND ― Net income for Sherwin-Williams Co. came to $576.4 million in Q3. The paint manufacturer reported profits of $6.16 per share, or $6.65 per share when adjusted for one-time gains and costs. Revenues reached $4.87 billion.

LANCASTER, Pa. ― Armstrong World Industries reported Q3 earnings of $1.38 per share. For the comparable period of 2018, earnings were just $1.11 per share. Operating income soared to $113.3 million from $81.3 million a year ago. Sales rose by 6.4% to $277.1 million, compared with $260.5 million in Q3 of last year.

NOTED

“Current trends imply things are going to get worse before they get better. At current rates, retail sales growth in 2019 could end up at around 1.3% or 1.4%, which would make it the worst year since 2009 and the so-called Great Recession.”
—Retail consultant Ed Strapagiel, referring to StatCan’s latest retail figures. Two-thirds into the year, year-to-date sales are only 1.8% above the levels from a year ago.

OUT & ABOUT

Our Quebec field reporter, Geoffrey McLarney, will be at the BMR show in Quebec City on Thursday. If you’ve got a scoop or a new product, be sure to tell him. Or just say “hi”!