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November 11, 2013, Volume xix, #44
“I have learned silence from the talkative, toleration from the intolerant, and kindness from the unkind; yet strange, I am ungrateful to these teachers.” —Khalil Gibran (Lebanese novelist, poet and artist, 1883-1931)
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RONA sales slip on higher profits
BOUCHERVILLE, Que. — RONA touted its cost-cutting efforts as a success even in the wake of soft results for the third quarter. A net income of $30 million represented a gain from $5.5 million, but a decline from $33.5 million adjusted for one-time costs.
Results felt the impact of reduced sales following the closing of stores over the past several months, and the tightening of its inventory. The company has also been investing in repositioning its Réno-Dépôt stores in Quebec, and buying back assets of some of its independent dealers. Most recently, it announced it is buying the outstanding minority stake in Groupe Coupal Inc., a 99-year-old lumber and building materials store near Montreal. RONA will pay an undisclosed sum to the Doucet family, owners since 1971, for the remaining 49% stake.
CEO Robert Sawyer said the “transaction is fully in line” with RONA's consolidation goals.
While acknowledging the numbers fell short of expectations, Sawyer held firm to the company's objective of saving $110 million by the end of the year. With savings amounting to $63 million year-to-date, RONA is on track to meet that goal, he said.
With cash on hand as a result of both its cost-cutting measures and the $214 million sale of its Commercial and Professional Division last month, RONA also announced it would use up to $150 million to buy back up to 10% of its shares.
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Daniel Rioux leaves TIM-BR MART for PrimeSource
CALGARY — Daniel Rioux, , formerly TIM-BR MART Group’s general manager – Quebec and sales manager – Ontario for its Chalifour Canada business, has left the company after five years there. He is heading over to PrimeSource, where he will assume the role of general manager, Quebec, effective November 27. PrimeSource is a U.S.-based building products distributor with Canadian locations in Montreal, Toronto, Winnipeg, Calgary, and Vancouver. (Rioux can be reached at danielrioux@icloud.com.)
Meanwhile, Eddie Durocher, who worked with Rioux out of the Montreal office, has stepped in as interim Quebec general manager of TIM-BR MART Group. Rich Huisman, Chalilfour’s national director of sales, will assume the role of Ontario sales manager until a replacement is named.
The move comes just weeks after the company appointed Bernie Owens as its new president, replacing former CEO Tim Urquhart. Urquhart and his then-EVP and COO, Barb Hopper, both left the company earlier this fall after taking a paid leave of absence. Owens was formerly vice-president of building products manufacturer CertainTeed Canada.
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Orgill to hold second Open to Buy Day for Canadian vendors
MEMPHIS, Tenn. — Orgill, Inc., the U.S. hardlines distributor, will host its second annual Open to Buy Day, January 14, 2014, in Toronto. The event will be open to Canada-based hardlines manufacturers.
Orgill, which has been expanding its reach—and its inventory—in Canada, is already providing home improvement products and retail services to retailers in more than 60 countries. Orgill’s customers represent a broad spectrum of home improvement retail models, ranging from convenience hardware stores to full-service home centres and contractor-oriented dealers.
“We are constantly looking for products to add to our inventory that will meet our customers’ dynamic needs,” says Brett Hammers, Orgill’s senior vice president – merchandising and marketing. “We held our first Open to Buy Day in Canada last year and it proved to be a very worthwhile sourcing endeavour for our buying teams.”
At the next Open to Buy Day in Toronto, senior members of Orgill’s merchandising team will meet with select Canadian manufacturers, evaluate their product lines, and determine vendor partners who will fit into the company’s worldwide distribution offering.
“Our experience at the first Orgill Open to Buy Day last year was excellent,” says Normand Caissie, CEO of Imperial Manufacturing Group, a New Brunswick-based producer of HVAC supplies and building products. “Senior managers from Orgill gave us a short presentation on the history of the company and then we met individually with key stakeholders from different Orgill divisions. A follow up meeting was arranged at their head office and we are now a vendor with inventory in all DCs. Our experience with Orgill has been a very positive one.”
The merchandising team will consider manufacturers that produce a variety of product lines, ranging from plumbing and electrical to hand and power tools. Other categories include: outdoor living, paint and sundries, builders’ hardware, lawn and garden, housewares, lumber and building materials, and automotive.
For more information or to register for Open to Buy Day, click here.
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Spotlight on the ORA Winners: TRU Hardware Breton
HARDLINES is proud to present the Outstanding Retailer Awards, honouring some of the finest dealers in this country. The awards were given at a Gala Dinner on October 23 during the 18th Annual Hardlines Conference in Toronto. We’re focusing on a different winner each week—and our congratulations to all the winners!
Brenda and Larry Fullerton (centre), owners of TRU Hardware Breton; with (from left): Mona Caplan and Sam Russo of Schlage, which sponsored the award; Mark Wilson of Schlage; and Beverly Allen of Hardlines, host of the awards.
TORONTO — TRU Hardware Breton in Breton, Alta., has been recognized as one of the country’s best home improvement retailers as the recipient of the 2013 Outstanding Retailer Award. TRU Hardware Breton won in the category of Best Hardware Store.
TRU Hardware Breton was recognized at the Outstanding Retailer Awards Gala Dinner, held during the 18 th Annual Hardlines Conference in Toronto on October 23. Larry Fullerton and his wife Brenda, the owners of the store, were present to accept the award before an audience of retailers and suppliers from across Canada. The Outstanding Retailer Awards have been recognizing and honouring the best in home improvement retailing across Canada for more than two decades. The award was sponsored by Schlage.
Larry and Brenda Fullerton pride themselves on finding out what their customers need and then searching out the right products. They have dedicated staff and a business mix to meet the needs of their unique customer base and location.
“TRU Hardware Breton is an example of hard work and the courage to take chances—and seeing that hard work pay off,” said Michael McLarney, Editor of HARDLINES. “The owners of Breton TRU Hardware were able to grow their business and successfully diversify in their small town, responding brilliantly to the needs of their local customers.”
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Gradual improvement for Superior’s Construction Products
CALGARY — Following a year of restructuring, the construction products division of Superior Propane reported positive results in its latest quarter, despite fewer Canadian locations after restructuring in 2012.
EBITDA from operations for the third quarter reached $10.1 million compared to $3.6 million in the prior year quarter. Prior year results included $2.7 million in one-time restructuring costs. Excluding the impact of the restructuring costs, results in the third quarter were higher year-over-year due to improved selling prices, sales margins, volumes, and cost reduction initiatives.
Gross profit was also up, due to improved average selling prices and sales margins, and higher sales volumes in the U.S. gypsum sales volumes were up, as improved residential construction activity in the U.S. effectively offset reduced activity in Canada, as a result of a weaker residential market and the impact of a reduction in branch locations after restructuring last year.
Sales volumes were up in areas like commercial and industrial insulation, attributed to sales and marketing initiatives to increase sales. However, gross margins for C&I were down slightly due to pressure on margins in large projects.
Superior expects business conditions for 2014 for its Construction Products Distribution business to improve somewhat in the U.S. commercial market, even as Canadian residential and commercial markets are expected to be more challenging.
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Resumés
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