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CONNECTING THE HOME IMPROVEMENT INDUSTRY
October 7, 2019 | Volume xxv, #37
IN THIS ISSUE:
  • Exclusive: Home Hardware CEO seeks stronger relations, but with fewer vendors
  • TORBSA appoints new board, including award-winning member as president
  • Ex-Home Depot buyer beefs up TIMBER MART’s procurement ranks
  • RONA dealer expands reach in British Columbia

PLUS: Ace Canada banner grows in Ontario, Beauti-Tone unveils Colour of the Year, TIMBER MART supports Children’s Wish Foundation, MAAX Bath celebrates 50th, Lowe’s takes DIY approach to e-retail software, Canadian Tire completes Party City acquisition, sales of new U.S. homes and more!

Exclusive: Home Hardware CEO seeks stronger relations, but with fewer vendors

ST. JACOBS, Ont. — Home Hardware’s president and CEO, Kevin Macnab, has been in place for a year now, and his reorganization of the company has affected every corner of the business.

Those changes have included a wholesale overhaul of the company’s buying teams, with new faces on board, and existing buyers taking on new portfolios. But behind the scenes, changes are unfolding that will impact Home Hardware’s vendor base.

For example, tougher guidelines are being put in place for vendors. On one hand, these threaten to undermine Home Hardware’s reputation as the “good guys”, but they also bring the company more in line with standards imposed by other home improvement retailers and aim to make it more competitive.

Vendors now face fines for incomplete orders, while Home is looking to rationalize overlapping or duplicate SKUs, especially among suppliers who do less than $50,000 with the company or are listed in fewer than 50 stores. This, Macnab admits, may mean fewer vendors and fewer products for Home Hardware over time.

There’s been much talk around head office about changing Home Hardware’s focus from that of a wholesaler to one of a retailer. That refers to being more attentive to the perceptions of the end consumer, “whether it’s a pro, DIY or furniture shopper,” to see the company “from a consumer lens,” Macnab says. “It’s a different focus.”

It does not mean ignoring the reality of Home Hardware’s role as a wholesaler, but with a look at the end user. And meetings with suppliers have challenged them to review assortments, marketing programs and data, using it in different ways.

“It’s about building a business with our supplier partners,” Macnab explains. “That means adding programs rather than just products, while relying on vendors that goes beyond just dollars. Which vendors want to lean in with us?”

Macnab expects the process to result in a reduction of vendors, and more reliance on the ones who remain. “We’re about growth—and vendors will have more clearly defined expectations of their roles.” These will include those fines for incomplete orders. He says the goal is to strengthen relationships with vendors, but part of that is expecting vendors to live by their commitments.

TORBSA appoints new board, including award-winning member as president

BOLTON, Ont. — TORBSA Ltd., the Ontario-based buying group for building centres and commercial yards, has named its board of directors for the year ahead.

Greg Drouillard of Target Building Materials in Windsor, Ont., has been elected as president. Drouillard is well known for his involvement in the Lumber and Building Materials Association of Ontario and was honoured with the LBMAO’s Lifetime Industry Achievement Award in 2017—the same year his company celebrated its 50th anniversary.

Drouillard is also known for his protracted battle with Target Corp. in the U.S., when the mass merchant retailer made its foray into Canada beginning in 2013. It challenged Drouillard’s half-century ownership of the Target name in Canada, which proved to be a fruitless pursuit for the U.S. retail giant, but a costly one for Drouillard. He is also very involved in STAFDA, the Specialty Tools and Fasteners Distributors Association.

TORBSA, whose dealers are largely commercial yards, has most of its members in southern and central Ontario, with the exception of Crown Building Supplies in Surrey, B.C.

The board of directors is now composed of (from left to right): Past President Gerald Morin, Morin Bros. Building Supplies, Ottawa; Greg Drouillard; Dante DiGiovanni, VP operations, Blair Building Materials, Maple; Blaine Carter, VP, Woollatt Building Supply, London; Len Hewson, treasurer, Hewson Brothers Supply, Brantford; and Steve Guglietti, secretary, Pro Con Building Supplies, Brampton.

Ex-Home Depot buyer beefs up TIMBER MART’s procurement ranks

VAUGHAN, Ont. — TIMBER MART has added a new hardware buyer after a careful search that took almost a year to complete. Shawn Ettinger, a veteran of Home Depot Canada has joined the buying group’s procurement team, responsible for reviewing, analyzing and selecting hardlines products and vendors, including tools, décor, plumbing, imported goods, electrical, builder’s hardware and seasonal products.

According to TIMBER MART President and CEO Bernie Owens, the hire came from the retirement two years earlier of the group’s manager of vendor programs, Rod Purchase. Purchase was a long-time member of TIMBER MART’s team in Atlantic Canada. He had joined with TIMBER MART following the consolidation of the A.W.A.R.D. buying group into TIMBER MART in 2005.

Owens says the role will be pivotal to negotiations within the Spancan buying group. That organization, owned by Independent Lumber Dealers Co-operative, Federated Co-operatives and TIMBER MART, negotiates hardware deals with vendors, “and we need a team in place,” he notes, “that could deal effectively with Spancan’s 240 preferred vendors. It was just making sure we had the right individual,” he says of Ettinger’s hire.

Ettinger brings more than 30 years of experience to the job. Most recently, he was VP for new product development, innovation, marketing and sales strategy at Conros Corp. He spent a decade at Home Depot Canada as national senior product merchant – kitchen, appliances, bath and flooring.

RONA dealer expands reach in British Columbia

MISSION, B.C. —Fraser Valley Building Supplies (FVBS) continues to expand in British Columbia, moving beyond its local markets in the province’s Lower Mainland.

Ray Cyr, president of FVBS, has taken over two stores in the West Kootenays. The company acquired the Maglio Building Centres earlier this year and converted the Nelson and Trail, B.C., stores, to the RONA banner.

To mark the grand opening of both stores under the RONA banner, Fraser Valley Building Supplies held board cutting ceremonies late last month. “We are looking forward to welcoming customers in their new RONA stores so they can discover our enhanced offering, which includes a selection of appliances and the iconic Craftsman brand,” Cyr said.

Together, the RONA Trail and RONA Nelson stores feature approximately 35,000 square feet of retail sales area as well as five acres of lumberyard, with some 30,000 products on offer in store and online.

The expansion efforts have been part of a trend for Cyr. In 2016, FVBS acquired Wilway Lumber Sales in Abbotsford. In June 2018, the company expanded its RONA store in Hope, B.C., which it acquired a year earlier, to a larger location. Then in May of this year, the Fraser Valley store in Abbotsford, B.C., took on the Ace Canada banner. The store features a 10,000-square-foot retail sales area and a four-acre drive-through lumber yard.

 
DID YOU KNOW...

...that space is filling up fast for the 24th annual Hardlines Conference? And, no, we’re not just saying that to get your attention! The Kingbridge Centre is an amazing venue, but has limited space, so we urge you to buy your ticket now. In fact, the hotel is already booked up, but don’t worry, you can still get a room 15 minutes down the road at the Aloft Vaughn Mills. To be part of this incredible event, please click here.

RETAILER NEWS

BOUCHERVILLE, Que. — Lowe’s Canada has welcomed Exeter, Ont., entrepreneurs Doug and Barry Eidt to the Ace Canada banner with the opening of Miller’s Ace Country & Garden. The father-son duo acquired the business in the spring and have spent the past four months converting it to the Ace banner to enhance the store’s offering. This is the second Ace store for the Eidts.

BURFORD, Ont. — Home Hardware’s paint division, Beauti-Tone Paint, has announced its 2020 Colour of the Year. It’s a warm and calming hue, named “Honey I’m Home”, and it's from the Simon Chang 2019-20 Trend Colour Collection.

VAUGHAN, Ont. — The Children’s Wish Foundation held its annual TIMBER MART Heroes Challenge last week in 14 cities across Canada. Corporate teams competed in a variety of challenges, each pledging to raise $10,000. All told, this year’s challenge raised more than $1.2 million to put toward the cost of granting wishes for children with life-threatening illnesses.

MOORESVILLE, N.C. — Lowe’s Cos. is taking a DIY approach to e-retail software, identifying business processes that use off-the-shelf software in order to create more customized solutions for them. The company hopes that with tailored coding, it can personalize the shopping experience for both DIY and professional customers.

TORONTO — Canadian Tire Corp. has closed the previously announced acquisition of Party City’s Canadian business, which consists of 65 retail stores in seven provinces. The purchase is part of Canadian Tire’s strategy to reach a younger demographic and integrate its banners under the Triangle Rewards program.

SUPPLIER NEWS

CLEVELAND — HGTV Home by Sherwin-Williams has revealed its 2020 Colour Collection of the Year and Colour of the Year, created in a partnership between the design experts at HGTV and Sherwin-Williams. Available exclusively at Lowe’s, the designer-inspired collection includes 10 complementary colours that work in a variety of combinations.

MONTREAL — MAAX Bath says it's enjoying growth in its 50th anniversary year thanks to the success of its products lines. Founded in 1969 in Tring-Jonction, Que., MAAX initially specialized in the manufacturing of pools and parts for snowmobiles and all-terrain vehicles. Its product mix eventually evolved in the direction of bathtubs, showers and shower doors. Today, as part of American Bath Group, the company has eight production facilities in North America, including four in Canada, and employs nearly 1,400 people.

ECONOMIC CONDITIONS

Sales of new U.S. single-family homes got a bigger than expected boost in August, as lower mortgage rates continue to make their effect felt. New home sales were up 7.1% to a seasonally adjusted annual rate of 713,000 units, with activity strongest in the Southern and Western states. Compared to August 2018, sales soared by 18%. (U.S. Commerce Department)

OVERHEARD...

“Shawn brings to our group an abundance of knowledge in hardlines products and a deep understanding of the independent dealer in Canada.” —Randy Martin, vice-president of procurement for TIMBER MART, on the hiring of ex-Home Depot Canada buyer Shawn Ettinger to his team.

Classified Ads

Robert Bosch Inc - Regional Account Manager (Power Tool Division) – Western Canada

Job Description

Based out of the greater Vancouver or surrounding area, the Regional Account Manager will develop and implement sales strategies, promotions, programs, and objectives in conjunction with Marketing and Sales Leadership. The RAM will lead account strategy and key selling processes, analyze market/customer trends and accurately maintain forecasts.

Qualifications

-Related University/College education, 5+ years in a similar role, strong Excel and Powerpoint skills. SAP, and CRM experience would be considered an asset. Excellent presentation, forecasting, and analytical skills, ability to multi task and remain organized. Previous experience working within the hardware or home improvement industry is required. Approximate travel of 30%.

Apply online at www.bosch.ca/careers

 

Looking to post a classified ad? Email Michelle for a free quote.

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