BOUCHERVILLE, Que. — After months of speculation and rumour, Sylvain Prud’homme, president and CEO of Lowe’s Canada, departed on October 7. The announcement was officially positioned as his retirement from the company. However, no immediate successor was in the wings, and, pending his permanent replacement, Tony Cioffi, executive vice-president, finance, real estate and dealers, is acting as interim president.

“After more than 35 years in the retail industry in roles that have taken me across the country, including six years with Lowe’s Canada, it is with mixed feelings that I am announcing my retirement,” Prud’homme said in a statement. “We have accomplished a lot over the last several years, and I feel that the time is right for me to spend more time with my wife and family and hand over the reins of the company. I feel blessed to have had this opportunity and thank all Lowe’s Canada associates for their hard work for the organization.”

Prud’homme joined Lowe’s Canada in June of 2013, following the sale of RONA to Lowe’s Cos., in Mooresville, N.C. His background includes a senior VP position at Walmart Canada, followed by executive positions at Sobeys, including president of the grocery retailer’s Western operations, then an EVP role at Loblaw. At Lowe’s, Prud’homme was also given the added title of president of Lowe’s International in 2017.

Prud’homme’s exit is expected by many close to the company to be just the beginning of more changes. In fact, just three days after he left, EVP of Operations Guy Baumier was let go.

With the company in flux, the industry is waiting to see who will replace Prud’homme in the top job for Canada and speculation abounds. One person who will not be replacing him is Lyne Castonguay. With executive degrees from Harvard, Castonguay is a veteran of Home Depot in the U.S. and more recently part of Sobeys under ex-Canadian Tire head Michael Medline.

Her possible appointment was a rumour that got a lot of traction among some head offices in the industry, and then found its way into the Quebec media.

In an email message that came to the attention of Hardlines, she politely insists that she is not in line for the job. “I would like to thank everyone for their support, notes and votes of confidence in the French-Canadian media. However, I will not be the next CEO of Lowe’s Canada.”

WORLD HQ, Toronto — What can you expect at the 24th annual Hardlines Conference? The answer is simple: retail experts. Under this year’s theme, “It’s all about the experience”, the Hardlines Conference will have all the experts in one room for two days to help you break it down.

From November 13 to 14, in a unique corporate retreat not far from Toronto International Airport, you can expect a carefully curated lineup of exceptional entrepreneurs, including a number of store owners. Each has a unique story of how their businesses came to be and how they evolved over the years to become successful retailers in competitive markets.

Christine Hand (shown here) will be the keynote for our very special “Profiles in Leadership” segment. Hand has been chair of the board at Home Hardware Stores Ltd. since April 2012. She has also operated Handyman Home Hardware in Conception Bay South, Nfld., since 1988 and took ownership in 1992. Christine will reflect on her personal experience in the industry.

Vava & Angela are the owners of The Store on Queen (TSOQ), a unique clothing store in downtown Toronto. With their larger-than-life personalities, they have cultivated an avid online following. The duo will share their journey of how they built a successful retail business with a vibrant and active online presence. They’ll offer concrete tips on how to work Instagram into your business plan, and what to do even when you have a minimal marketing budget.

Joe Franquinha, owner of Crest Hardware & Urban Garden Center, has long tied the success of his family business to the old-fashioned principles of quality service and products. But the emergence of online retail giants has forced Joe to re-evaluate his store’s longstanding retail practices. Join him as he shares his keys to curating a modern-day retail experience that keeps customers engaged and coming back for more, despite the competition.

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 industry colleagues and customers in a professional yet casual setting. It will be held November 13 to 14 at the Kingbridge Centre, an incredible corporate retreat that will be a perfect backdrop to this year’s Hardlines Conference.

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

TORONTO ― Anybody searching the CBC website last week looking for a report on the latest debate among federal candidates would have seen another leader’s face: Greg Hicks, president of Canadian Tire Retail.

Hicks appeared in a paid advertising blurb that said, simply: “Meet Greg Hicks. See what it takes to get your product on store shelves.” Clicking on the ad led to an advertising feature promoting Canadian Tire’s involvement in upcoming segments of Dragons’ Den, the popular TV show that gives entrepreneurs and start-ups a shot at pitching their business idea to a panel of investors.

Amidst photos of Hicks engaging with technology and colleagues, the ad says, “Canadian Tire is always hunting for the latest innovative ways to help Canadians with the jobs and joys of life in Canada, so partnering with Dragons’ Den is the perfect way to get an inside look at some of the hottest undiscovered products from Canadian entrepreneurs and bring them to Canadian Tire customers across the country.”

In the ad, Canadian Tire explains that the listing process typically takes a year, requiring the potential new vendor to meet the retailer’s criteria and undergo considerable scrutiny, including rigorous quality assurance testing.

And a new product may end up supplanting an existing line or program. “Putting a new product on the shelf often means another product has to come off, which takes plenty of planning and co-ordination—especially when you have 503 stores across the country,” the ad goes on to explain.

The race for new products is always on among home improvement retailers. In fact, according to Bill Wilson, former Retail Advisor for NRHA Canada, as much as 20% of a store’s SKUs should be new products each year. Based on that, the pressure for innovation is ongoing. So Canadian Tire has found an innovative way to promote its search, while providing a “feel-good” twist that promotes its innovative side along with a focus on Canadian products.

WORLD HQ, Toronto — While 2018 had weaker growth than the previous year, it still grew by more than expected, and the forecast for 2019 remains cautiously optimistic, despite another slow start to the year. These are just some of the findings in the 2019-2020 Retail Report, now available from Hardlines.

According to the report, the industry is expected to benefit from a stabilization of the real estate market, as interest rates remain low and the industry adapts to tougher mortgage rules. These factors will help drive the all-important renovation and repair markets, both factors which outweigh new housing as a driver for retail sales in this sector.

The report includes the results of a dealer survey conducted by Hardlines, which revealed widespread concern that sales would not rise enough through the remainder of the current year to generate positive sales growth. This concern was shared by dealers across the country. Looking further out, the industry is forecast to regain some momentum in 2020 and 2021, with real growth being realized as commodity prices stabilize, and sales volumes recover.

This year’s Hardlines Retail Report analyzes how much the industry grew last year and identifies the best-performing provinces. The report also tracks the growth of the big box format in Canada, and how it compares to other key formats, namely hardware stores, building centres and Canadian Tire stores.

Designed to help retailers and suppliers alike to develop their business plans for the year ahead, this year’s report provides valuable industry forecasts 2019 and 2020, including analysis of the strategies and performance of home improvement retailing’s top players—Home Depot Canada, Lowe’s Canada, Home Hardware Stores Ltd. and Canadian Tire Retail.

The 2019-2020 Hardlines Retail Report fills 171 PowerPoint slides and is packed with dozens of charts, graphs and photographs.

(For more information about the 2019-2020 Hardlines Retail Report, including special pricing for it and the Hardlines Market Share Report, please click here.)

Jeld-Wen of Canada has appointed Jean-Francois Lemelin as provincial sales manager for Quebec. A Université de Montréal graduate, Lemelin got his start in the industry in 2007 as a local marketing manager at RONA and was most recently the development director of installation and project sales with Lowe’s Canada.

Exchange-a-Blade has announced that SeeSaw Marketing’s Rick Forbes is retiring after more than 40 years as an EAB distributor. Brent Ewen, who has worked with Forbes and most of his customer base for the past decade, and Marty Donaldson have joined EAB as territory managers for Greater Vancouver. EAB will distribute the products and be the new supplier for Southern B.C.

Dany L’Heureux has joined Stelpro, a company based in Saint-Bruno-de-Montarville, Que., that makes home electronics for climate control, as national sales director. His background includes extensive agency experience in this industry and at tool maker Innovak. Most recently, he was category manager at Lowe’s Canada for tools.

...that Princess Auto, Lowe’s Canada, Canadian Tire, Home Hardware and True Value are just some of the companies presenting at the 24th annual Hardlines Conference? It’s being held November 13 and 14 at the Kingbridge Centre, not far from Toronto International Airport. But space is limited, so we recommend you register as soon as you can. Just click here!

CHICAGO ― Thousands of independent home improvement retailers gathered in Chicago recently to celebrate True Value’s 2019 Fall Reunion. True Value President and CEO John Hartmann talked to member-dealers about True Value’s ongoing investments in modernizing its supply chain. In particular, the company developed a new regional distribution centre in Wilkes Barre, Penn., and has doubled the size of its sales force and streamlined its digital marketing programs. (John Hartmann will present at this year’s Hardlines Conference, November 13 to 14. Click here for more info!)

ISSAQUAH, Wash. — Costco Wholesale Corp. reported Q4 net earnings of $1.1 billion or $2.47 per share. Excluding one-time costs, however, earnings came to $2.69 per share. Overall, revenues totalled $47.5 billion. Same-store sales in the U.S., excluding gas, logged a smaller-than-expected 5.2% increase. For the fiscal year, profits were $3.66 billion ($8.26 per share) and total revenues were $152.7 billion.

TORONTO — The Retail Council of Canada has issued an open letter to Ontario Environment Minister Jeff Yurek calling for a co-ordinated provincial action on single-use plastics. With more and more municipalities crafting policies in response to consumer concerns, the council fears a “patchwork of plastic bag by-laws” will create bureaucratic hurdles for its members, who are “steadfastly committed to reducing the environmental impact of their operations.”

SUPPLIER NEWS

MONTREAL — Richelieu Hardware reported that sales increased by 3.4% to $269.2 million in Q3. Net earnings grew by 1.1% and net earnings attributable to shareholders rose by 1.3% to $18.6 million. On a per-share basis, net earnings increased by 3.1% to $0.33, compared to $0.32 a year ago. In Canada, Richelieu recorded sales of $179.9 million, an increase of $1.2 million or 0.7% over Q3 of 2018, including 4.7% from acquisitions.

RICHMOND, B.C. — King Marketing has been appointed as sales agency for Signify Canada, representing brands such as Philips and Philips Hue to independent dealer accounts across Canada.

BARRIE, Ont. — Barbecue maker Napoleon held a job fair last week in Barrie, aiming to fill more than 50 contract positions in assembly and 30 full-time salaried posts. The latter include marketing, quality assurance, research and development, sales, human resources and customer service roles. The manufacturer of grills, fireplaces and HVAC systems is Barrie’s largest employer.

ECONOMIC CONDITIONS

The seasonally adjusted annual rate of housing starts was 221,202 units in September, down 2.5% from 226,871 units in August. The SAAR of urban starts decreased by 2.4% in September to 208,503 units. Multiple urban starts edged down by 0.2% to 159,742 units in September while single-detached urban starts fell by 9.2% to 48,761 units. Rural starts were estimated at a SAAR of 12,699 units. (CMHC)

The value of building permits issued by Canadian municipalities rose 6.1% to $9.0 billion in August, largely because of increases in multi-family and industrial permits. Gains were reported in seven provinces, with more than one-third of the national increase in Quebec. The value of permits for single-family dwellings rose 3.2% to $2.4 billion nationally, led by Ontario. (StatCan)

NOTED

Hardlines has a free Daily News service to keep you up to date on the latest home improvement news and customer trends from across the country. To subscribe to our free Daily News service, just click here!

OVERHEARD...

“We have tremendous respect and admiration for Canadian entrepreneurs and look forward to the opportunity to work with more of them in the future.”
―Greg Hicks, president of Canadian Tire Retail, in a paid advertising spot that appeared last week on CBC.ca, as part of Canadian Tire’s latest effort to attract new vendors.

OUT & ABOUT

David Chestnut from our Toronto Office, and Geoffrey McLarney from our Montreal Bureau, will be at the RONA/Ace show this Thursday. Be sure and say “hi” to them if you’re going to be at that event—especially if you’ve got a new product or a scoop!