October 3, 2016 Volume xxii, #37

“The highest and most beautiful things in life are not to be heard about, nor read about, nor seen but, if one will, are to be lived.”
—Søren Kierkegaard (Danish philosopher, poet, and social critic, 1813-1855)

______________________________________________________________________

______________________________________________________________________

Exclusive with CEO Terry Davis: good gets great at Home Hardware

ST. JACOBS, Ont. ― At the recent Home Hardware Fall Market, dealers were generally, and sometimes surprisingly, consistent in their reports that business is up year to date. Against this positive backdrop, Home Hardware CEO Terry Davis spoke with HARDLINES about internal changes that are geared to driving the company, reflecting the latest market’s theme, “From good to great.”

Big changes in the marketing department indicate Home is keen to stay abreast of what the new customer looks like. That means encouraging new ideas and getting more analytical than ever before. Davis says the hiring of Rick McNabb, formerly with Cara Foods (Harvey’s and Swiss Chalet), as VP sales and marketing, is a big part of the refresh at the dealer-owned co-op. McNabb has been responsible for pushing Home Hardware to dig deeper into its numbers to best understand the motivations and habits of millennials, and for shaking up its advertising side (see story in this issue —Editor).

Davis points out that his efforts, since taking over in 2014, to enforce company standards among all dealers have been successful in securing a consistent image and brand among Home Hardware customers country-wide. He had a target of 42 stores to be terminated for choosing not to adopt what he calls Home’s standard operating procedures initiative. But new owners have been found for some of these stores.

“We want the stores to be well branded and live up to the expectations of customers. But we don’t want them to be cookie cutter,” he emphasizes. “Each dealer must be free to add their own personality.”

As for the notion of taking an already well-run company to another level of greatness, Davis is frank about business conditions. “The expectations of customers out there are getting greater and greater all the time. So it’s not good enough for dealers to work the way they always did. We have to keep pushing and pushing.”

back to top

______________________________________________________________________

______________________________________________________________________

Hardlines Conference tackles challenges facing home improvement industry

SPECIAL REPORT — Drawing on this year’s theme “Renovating the Art of Retail,” the speaker line-up at the 21st annual Hardlines Conference is filled with innovators, retail leaders, and branding experts. It takes place October 18 to 19 at the Sheraton on the Falls hotel in Niagara Falls, Ont.

On the first day, audience members will hear from Jay Heubner, president and general manager of Ace International, on how the company equips its dealers to deliver on a promise of being the helpful hardware brand and how support will continue with its growing ranks of dealers in Canada.

Nicolas Couture, now the third generation of his family to work for Gabriel Couture & Fils Ltée, will tell the story of how the business grew from a modest shop with five employees to 50 employees and four TIMBER MART locations. Dustin Kaehr, a retail motivator, formerly with Do it Best, will then provide insights into how all stores can experience such growth—simply by keeping customer experience top of mind.

Audience favourites Aron Gampel from Scotiabank and Ibrahim Ibrahim of U.K.-based retail consultancy Portland, return to offer their predictions on the year ahead for the economy and the future of retail, respectively.  

On day two, Sumit Srivastava from eBay Canada and Al Meyers of Kalypso will weigh in on the importance of ecommerce and how retailers can deliver the omnichannel experience consumers have come to expect. Drawing on brand-new data sponsored by HARDLINES, Sean Copeland from the Parent Life Network will give us the scoop on how retailers can cater to the growing millennial demographic.

Finally, you won’t want to miss Ron Beal, Orgill’s president and CEO, who will update the audience on the company’s presence in Canada.

Emceed by Mag Ruffman, acclaimed television personality of Road to Avonlea and ToolGirl, and located in the heart of Niagara Falls, Ont., the 21st annual Hardlines Conference promises to be equal parts fun, thought-provoking, and educational.

(For full agenda and to register, visit hardlines.ca/events/hardlines-conference.)

back to top

_________________________________________________________________

Home Hardware signs John St. as agency of record

ST. JACOBS, Ont. — After more than four decades with Morris Saffer Agency, Home Hardware Stores Limited has signed with a new advertising agency. John St. is a downtown Toronto firm (its address is, wait for it... 172 John Street—Editor) that provides a range of creative, design, and digital services with a client roster that includes Loblaws, Tangerine Bank, Maple Leaf Foods, Mitsubishi Motors, Shoppers Drug Mart, and Winners.

Home Hardware is legendary for its loyalty to suppliers—and that included Saffer, which in turn was instrumental in making Home Hardware one of the most recognizable brands in the country. But since the arrival of Rick McNabb, Home’s new vice-president, marketing and sales, the dealer-owned co-op has been confronting change on several fronts.

“We are proud of our accomplishments—strong brand attributes, recognizable brand awareness and a higher level of service that sets us apart from the competition,” says McNabb. “We want to build on that success story and reach a new generation of customers on the channels they use most often. We met with some of the most accomplished and talented agencies in the country, and in the end, we felt that John St. was best suited to meet our needs.”

John St. is an integrated ad agency that opened a Montreal office at the beginning of last year and was purchased by London-based holding company WPP in 2013. The search for a new agency took place during the past summer and was led by McNabb, who applied his experience as a senior executive with a history of working in the advertising world, both as a senior executive at Ted Bates Advertising Agency and as a former senior executive at Cara Foods.

“We were looking for specific things: strong brand and channel planning, strong digital, design and retail experience, a track record of powerful and insightful creative, and perhaps most importantly, a really good DNA fit,” explains McNabb.

Home Hardware will spend the fourth quarter of 2016 transitioning the account and hopes to have new work from John St. flowing in the spring of 2017.

back to top

______________________________________________________________________

It’s time: recycled paint saves waste and budgets

BOUCHERVILLE, Que. — While traditional paint companies continue to count on trends and finishings to drive their sales, at Laurentide Paint, its Boomerang collection presents special marketing challenges. This line of recycled paints was originally acquired from Norman Maurice, a retired school principal in Victoriaville, Que., who developed a technique for making eco-friendly paints low in volatile organic compounds by remixing discarded returns with just 1% new paint.

Isabelle Huot, sales and marketing co-ordinator at Laurentide Re-sources, explains that marketing involves informing the customer. “Recycled paint isn’t ‘virgin’ paint, so people often need to be educated. Otherwise they’re afraid to buy it.” Consumers unfamiliar with the concept might, for instance, think it’s going to be “dirty” paint, she says.

The education pays off, however. “We’ve been doing two consumer shows a year, spring and fall. Now people know what it is.” And the values are hard to beat. Boomerang gets paint from Benjamin Moore and Sico, and even old Boomerang paint gets returned to create a third generation.

Because the “raw” material is already paint, overhead is cut dramatically. Returned paint is often high quality, as the cheaper stuff tends to get used up first time around. “If you have a lower budget for paint, you’re more likely to use all of it.”

(The full article on paint trends appears in the upcoming edition of our sister publication, Hardlines Home Improvement Quarterly magazine. Free to dealers across Canada! Click here to see a recent digital edition and subscribe yourself! —Editor)

back to top
____________________________________________________________________

At All Weather Windows, Stephen Burgess has joined in the role of general manager for the company’s Ontario operations. Burgess brings a strong track record in the industry that includes Master Lock and Newell Rubbermaid. With this hire, says the company, All Weather reaffirms its commitment to the Ontario market. (sburgess@allweatherwindows.com; 905-696-1505)

back to top
_____________________________________________________________________

CLASSIFIED ADS

WANTED: VENDORS INTERESTED IN INCREASING THEIR E-COMMERCE SALES

We’re seeking vendors who want to meet top North American e-Retailers. HARDLINES is hosting meetings with senior buyers at the first-ever Home Improvement eRetailer Summit.

The eRetailer Summit, October 26-28, 2016 in Fort Lauderdale, Fla., has been developed to connect home improvement manufacturers and distributors with prominent online retailers who are interested in increasing online sales of home improvement products.

The Summit will provide a forum for eRetail leaders to share their vision and objectives with a select group of vendors, who will get face time and the chance to share strategies. The intimate environment of the eRetailer Summit will help all sides work better together to optimize the Internet as a distribution channel. Click here to see the full lineup of eRetailers confirmed so far: http://eretailersummit.com/.

This is an invitation-only event that will be held at the Hilton Fort Lauderdale Beach Resort, October 26 to 28, 2016 in Fort Lauderdale, Fla. Special Introductory rates for Hardlines Subscribers. Contact Beverly Allen: 1-647-880-4589 or bev@hardlines.ca.

_____________________________________________________________________