May 30, 2016 Volume

xxii, #22

“Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.”
—Steve Jobs (inventor, IT entrepreneur, and co-founder of Apple Computers, 1955-2011)

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Lowe’s to evaluate role of various operations in its newly expanded network

TORONTO — Only two days into his new job as the head of the unified Lowe’s/RONA business, Sylvain Prud’homme admits that a lot of questions still don’t have answers. “There’s a lot we need to figure out in the first 30 days,” he says. That includes deciding what the Lowe’s office in Toronto will look like, who will stay, and who will replace him personally to run the Lowe’s business there.

That someone may or may not come from within the Lowe’s or RONA ranks. And they may or may not be in charge of a separate buying team in Toronto, “but this is a top priority we have to address right now.”

The lease at the current office is due to expire soon, as well, further complicating the future of the Toronto operation. However, Prud’homme says the office will not move to Lowe’s Canada’s new distribution centre in Milton, Ont. It’s just too far away from the current location and would be too much of a disruption for the team. “We’re looking for something more central than Milton.”

Another key asset of RONA is the Ace Canada distribution facility in Winnipeg (formerly TruServ Canada). “It’s a part of this support for the independent dealers that we have. The exact role will be defined in consultation with Ace.” Will the Winnipeg DC remain part of that support? “I’ll be honest. I don’t know the role of all the DCs yet.”

Prud’homme points out that Lowe’s and RONA were competitors right up until May 20, when the acquisition closed. “As a result, there are lots of unknowns. That’s why it’s going to take a while.”

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Lowe’s Canada president outlines RONA consolidation strategy

BOUCHERVILLE, Que. ― Lowe’s is planning a “gradual evolution” at RONA after closing its acquisition of the larger Canadian retailer, according to the Canadian Press. “It’s not something that will happen overnight,” Lowe’s Canada CEO Sylvain Prud’homme told a press conference at RONA’s headquarters.

“[Consumers] will see some changes in the early stages, but I think it’s going to come to a point where early 2017 is probably going to be where you are going to see some major changes.” Those changes will include ramped-up e-retail offerings and the roll-out of appliances in some RONA stores. Prud’homme stressed that Lowe’s can lend its expertise to enhance the customer experience within the RONA stores.

In the meantime, Lowe’s will focus on building brand awareness in the Canadian market and retaining the existing RONA banners. These include Dick’s Lumber, Marcil, Reno-Depot, and the Ace brand, to which Lowe’s holds the license in Canada. The latter will be part of a strategy to continue supporting independent dealers across the country.

“We are going to make sure that we have the proper big box store in Quebec,” said Prud’homme. “It doesn’t mean at this point that they will be branded Lowe’s.” In fact, he doesn’t think the Lowe’s name will even be rolled out at all in Quebec.

HARDLINES’ own intrepid Editor Michael McLarney told Report on Business that Lowe’s is likely looking to emulate Home Hardware’s success in establishing brand recognition. “Home Depot may have the biggest sales, but Home Hardware still has the biggest brand awareness,” he said.

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Two years in, Slegg remains a good fit for WSB Titan

VAUGHAN, Ont. — Slegg Lumber is a leading home centre chain on Vancouver Island. While it’s a major supplier to the area’s contractors, it has a retail face, something that its owner WSB Titan lacks.

WSB Titan is the giant commercial drywall operation headquartered just north of Toronto. According to Doug Skrepnek, one of the principals of WSB Titan, and president of Watson Building Supplies, the acquisition in 2014 of Slegg Lumber, with 11 retail locations and a door plant, was part of an ongoing growth strategy for the giant gypsum dealer. Last year, Titan also became an equity partner in BC Ceiling Systems, a West Coast distributor with locations in Vancouver, Richmond, and Langley, B.C., and in Calgary. 

But the traditional building centre business that Slegg represents has been paying off. “The Slegg business on the island is similar, but different,” says Skrepnek. Even though Slegg has the DIY aspect, he explains, it is “very customer-centric with a good base of large contractors, alongside the retail. We’re dealing with the biggest contractors in the island. That’s its niche—and that’s its alignment with Titan.”

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Disappointed with sales, Canadian Tire pulls urban test store

TORONTO — As hardware retailers struggle to provide a profitable service model for downtown locations in Canadian cities, one street in Toronto has been a lab for a store model that failed, even as another an independent competitor a block away is burgeoning.

Canadian Tire has closed a prototype “urban” Express store, located in the Greektown neighbourhood of Toronto’s east end. The store, which was being watched by head office as a possible prototype for further locations, had been tailored specifically to the home maintenance needs of the inner-city customer when it was installed in 2013. Canadian Tire originally planned to open up to six such stores over the following year, including one in Ottawa, but none materialized.

The associate dealer of the Express store was Peter Oliver, who also operates a full-sized Canadian Tire a few kilometres south in the city’s Leslieville neighbourhood. Faced with high rent typical of an inner-city retail space, the smaller test store was designed utilizing two levels, with an emphasis on convenience and décor over building materials.

The store sat on one of the busiest streets in Toronto, renowned for its shops and restaurants. However, according to one source close to the story, a combination of those high costs and the failure of the store’s lower level to draw traffic led to the experiment being terminated.

Meanwhile, a Home hardware store just across the street has expanded, holding its grand opening only weeks after the Canadian Tire store was shuttered. Malcolm Firkser took over an existing Home Hardware after the current owner decided to retire. He then moved the store a few doors down and nearly doubled the size. Commenting on his erstwhile competition, he says that factors such as higher rents across the road on the south side of the street contributed to the Canadian Tire store’s demise.

Meanwhile, his own store is performing well. “Location, location, location,” Firkser insists. “This store has been busy from day one. We’re 35% over projection.”

A long-time Home Hardware dealer, Firkser has operated successfully in an urban environment for decades. He already has three other stores in Toronto, including one at Sunnybrook Plaza, in the city’s mid-town. “It was the very first suburban strip mall in Canada,” he notes.

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CLASSIFIED ADS

Sales Representative North Saskatoon

Sherwin-Williams is hiring a Sales Rep in N. Saskatoon. This position is responsible for increasing sales and profit by growing key, targeted independent dealers within an assigned territory.

The position will service and grow existing customers; develop and implement business plans, oversee program implementation and develop customer relationships to expand product offerings. The sales representative will also be
responsible to grow the business through prospecting new customers, presenting sales opportunities, product training and CRM utilization.

– This position will cover the following geography: Northern Saskatchewan
– Candidate must live within the geography/territory stated above
– Travel % = 60%
– 2+ years of outside sales experience with a proven track record of sales success. Preferred experience selling to independent paint dealers,
co-op’s/hardware stores, distributors, contractors or architects.

Please state "to apply for this position visit http://careers.sherwin-williams.com/careers/openings/, click on Careers@Sherwin-Williams and search req # 16000668".

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May 23, 2016 Volume

xxii, #21

“Nothing great in the world has been accomplished without passion.”
—Georg Wilhelm Friedrich Hegel, (German philosopher, 1770–1831)

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With final hurdles cleared, Lowe’s closes deal to buy RONA

BOUCHERVILLE, Que. & MOORESVILLE, N.C. — The biggest deal in the history of Canadian home improvement retailing, and one that has been in the works in one form or another for the past five years, has finally closed.

Lowe’s Cos. has completed the acquisition of RONA inc. in a deal worth $3.2 billion (U.S.$2.3 billion). After securing shareholder support at the end of March, the deal got the final approval it needed on May 13 when the Canadian Competition Bureau deemed that the takeover will not limit consumer choice.

Lowe’s made a friendly, albeit controversial, takeover bid for RONA back in 2012 that was worth $1.8 billion. But that offer was made just ahead of a provincial election in Quebec, and got a lot of resistance from the Quebec government, which perplexed the executives at Lowe’s.

Lowe’s Canada intends to move its head office from Toronto to RONA’s headquarters in Boucherville, Que., with Lowe’s Canada President Sylvain Prud’homme in the lead role. Lowe’s plans to retain most of RONA’s current employees and maintain key executives from RONA’s leadership team. It also reaffirmed it will remain committed to Canadian vendors, expanding relationships that both Lowe’s and RONA have developed with domestic manufacturers and suppliers.

Lowe’s says it will continue to operate RONA’s multiple retail banners, with enhanced distribution services to independent dealers. The result will be Canada’s number-two home improvement retailer after Home Depot Canada, with revenues expected to exceed $6 billion.

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Ex-RONA CEO Robert Dutton joins board of directors of La Coop fédérée

MONTREAL ― Robert Dutton, former president and CEO of RONA inc., has joined the board of directors of La Coop fédérée, where he will help out with Groupe BMR.

Dutton joined RONA in 1977. Under the mentorship of then-chairman Henri Drouin, the young Dutton could not speak a word of English when he became CEO in 1992. But that was just one of the obstacles he overcame as he pushed his dream to create Canada’s largest home improvement retailer, one that, in his own words, would provide Canadians with jobs and become a role model for corporate sustainability.

Under his direction, RONA expanded beyond its original Quebec market, and did indeed become the country’s largest home improvement retailer, with combined sales from all points of sale at one point exceeding $6 billion. RONA’s consolidated sales under Dutton’s leadership increased from $450 million to more than $4.8 billion. He was finally ousted following a failed takeover of RONA by Lowe’s in 2012.

In his new capacity, Dutton will take on a number of duties and functions as part of Quebec’s second-largest retail home improvement group—and one of the top 10 in the country. Most notably, he will be part of the audit committee of La Coop fédérée and he will lend his expertise to the consolidation of the BMR acquisition.

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Outstanding retailers will be honoured at Hardlines Conference

WORLD HQ, TORONTO — Canada’s hardware and home improvement retailers are among the best in the country. At Hardlines, we honour the best of the best with the Outstanding Retailer Awards program.

The ORAs are the industry’s only independent awards program dedicated to celebrating the achievements of hardware, home improvement, and building supply dealers in Canada. In its 24-year history, the program has honoured more than 140 retailers. Any Canadian home improvement retailer that has operated under its current ownership for at least two years is eligible.

Individual owners and managers, as well as retail and buying group head offices, can nominate candidates in any of the following categories:
1. Best Hardware Store (any size)
2. Best Building Supply/Home Centre (under 15,000 square feet)
3. Best Building Supply/Home Centre (over 15,000 square feet)
4. Young Retailer Award (a store manager 35 or under; entrants may be owners or chain employees)
5. Marc Robichaud Community Leader (open to all stores, its purpose is to celebrate the outstanding contributions, events, charitable donations, etc., made by a store’s staff, managers, or owners to the community they serve)
6. Best Large Surface Retailer (over 65,000 square feet)
7. Best Contractor Specialist Store
  
Awards winners will receive:

• Admission to the 21st Annual Hardlines Conference;
• A trip for two to Niagara Falls, including one night’s accommodation at the Sheraton on the Falls hotel in Niagara Falls, Ont.;
• An inscribed plaque;
• A marketing package that includes a write‐up in Hardlines Home Improvement Quarterly Magazine;
• A customized video and photo ready to be sent to local media.

The awards ceremony and gala dinner will take place on Tuesday, October 18 at the Sheraton on the Falls Hotel in Niagara Falls, Ont.

Applications can either be submitted online by clicking here or they can be completed and mailed in to the Hardlines World Headquarters: 528 Queen Street East, Toronto, Ont., M5A 1V2. Applications must be received by Friday, July 29 at 5:00 p.m. More information can be found on our website.

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Canuck vendors keep busy at the National Hardware Show

LAS VEGAS ― The National Hardware Show remains the must-attend event for Canadians in retail home improvement. The range of companies on hand, both exhibiting and walking the show, bore that out.

But not all exhibitors were on the show floor. Ames/Garant went all out with a private meeting room in the upper mezzanine (shown here), rather than taking a traditional booth on the show floor. There, the company was able to showcase a full range of new lines for its Ames and Garant brands. Product Manager Laurie-Ann Boivin pointed out a step-up line of rakes and hoes, along with a heavy-duty line of rakes for pros, all of which will be available to dealers in August. Also: a very cool hose reel in a deck box, so it can double as a coffee table on one’s deck.

At the Gardena booth, one garden product embodied the latest technologies. Gardena’s Jay Sterling showed a robotic mower the size of a canister vacuum cleaner. It will operate non-stop all summer to keep a lawn trim. Sensors keep it safe around pets and children.

Other companies, like knife and flashlight maker Coast, are keen to grow their business north of the border. Marty Reardon, Coast’s national sales manager for Canada, said business is growing in this country, with both Canadian Tire and Lowe’s Canada doubling their SKUs. He said customers “recognize the value of paying up to $40 for a flashlight that offers durability and a warranty.”

Vendors overall found the show successful, as it let them connect with both existing Canadian customers and potential new customers from the U.S. “It reminds me of Chicago,” said Bob Shaw, VP of sales and marketing for Nour Painting Tools, referring to the halcyon days of the show at its former location. “Busy, busy, busy all day.”

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_____________________________________________________________________

CLASSIFIED ADS

Sales Representative North Saskatoon

Sherwin-Williams is hiring a Sales Rep in N. Saskatoon. This position is responsible for increasing sales and profit by growing key, targeted independent dealers within an assigned territory.

The position will service and grow existing customers; develop and implement business plans, oversee program implementation and develop customer relationships to expand product offerings. The sales representative will also be
responsible to grow the business through prospecting new customers, presenting sales opportunities, product training and CRM utilization.

– This position will cover the following geography: Northern Saskatchewan
– Candidate must live within the geography/territory stated above
– Travel % = 60%
– 2+ years of outside sales experience with a proven track record of sales success. Preferred experience selling to independent paint dealers,
co-op’s/hardware stores, distributors, contractors or architects.

Please state "to apply for this position visit http://careers.sherwin-williams.com/careers/openings/, click on Careers@Sherwin-Williams and search req # 16000668".

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May 16, 2016 Volume

xxii, #20

“I think life is far too short to concentrate on your past. I rather look into the future.”
—Lou Reed (American musician, songwriter, and founder of the proto-punk band Velvet Underground, 1942-2013)

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Innovation front and centre at Vegas hardware show

LAS VEGAS ― Lots of Canadian companies were exhibiting at the National Hardware Show last week, while a number of Canadian agents and reps were walking the show looking for new lines to bring back home.

The show, spread over 600,000 square feet, played host to 2,700 vendors. Feedback overall from the event was positive, with most Canadian vendors pleased with the attendance by key buyers from the Canadian retail groups.

Canadian companies used the event as a venue for showcasing, or even launching, new products. Names like Task Tools, EAB, and Nour were there in force, and Duschesne et fils was exhibiting for the first time. Andrew Pantiledes of Regal explained that his company owns its own factory in China, so everything is made right there, and to spec exclusively for Telesteps products. Asher Peres and Jennifer Cave of Toolway Industries kept busy showing the Goldblatt brand to Canadian buyers.

Industry veteran Christian Nadeau (shown here) was exhibiting with his company, CTM, showing a new line of hardwood countertops for kitchens. “This is something no one is doing right now,” he said enthusiastically. His enthusiasm was shared by the many visitors in the booth, including a representative from HGTV, who wanted more information about the 60 species of wood that are available.

Rammie Kamal, general manager of Dover Finishing, was promoting a line of wood treating products. Response, he noted, was very positive. “It’s way up over last year. Whether it’s Home Hardware or Home Depot or Canadian Tire, everyone is coming in and they’re all asking about our new offerings.”

Newcomer SciCorp International from Barrie, Ont., reported similar good results. The company introduced an odour-eliminating spray for composters and recycling bins licensing the WM/Waste Management name. “We launched yesterday,” said Bill Waters, director of marketing. “Ace Hardware wants us in immediately. True Value wants us in every one of their stores; Kent wants us in every one of their stores.”

(We’ll wrap up our report on the Vegas show in next week’s blazing edition! —Editor)

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Peavey Mart’s 35th store to open in High Prairie, Alta.

RED DEER, Alta. — Amidst the gloom of the Alberta economy, farm and hardware retailing is shining a bright light on High Prairie, Alta., where Peavey Mart will open its 35th store location in fall 2016.

Peavey Mart stores, which are part of Peavey Industries, feature a range of farm, hardware, pet, workwear, outdoor living, and automotive across Western Canada. The newest location will be about 16,000 square feet and create 12 jobs. The store and adjoining greenhouse will be the anchor tenant of the first phase of the East Gate retail development, which will eventually cover five acres.

“High Prairie is a central hub for a large trade area of about 30,000 people,” says Peavey Industries President Doug Anderson. “The farming history and solid trades sector attracted us, because we have a unique mix of items to serve the people of the area.”

Peavey was designated as one of Canada’s Top 10 Corporate Cultures in 2015. Besides offering traditional farming, hardware, trades and housewares products, stores offer unique items such as honey bees, chicks, and a free electric car-charging service. The company began fine-tuning the look of its stores last year with a store in Strathmore, Alta. (shown here). The High Prairie store will be modeled after that one, albeit slightly smaller.

Peavey Mart already has stores in Northern Alberta, in Grande Prairie and Westlock. According to Anderson, they have provided years of experience there for the retailer. “We feel High Prairie and the surrounding area are a perfect fit for Peavey Mart, and we are a perfect fit for the community.”

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RONA will host show in Montreal for affiliated dealers

BOUCHERVILLE, Que. — RONA inc. has confirmed it will hold another market for its independent or affiliated dealers, and for store managers of its corporate stores. The 2016 Buying Show will be held August 31 to September2 at the Palais de congrès in Montreal.

The show will take up 125,000 square feet and feature about 300 vendors. Day one will be devoted to seminars and presentations from RONA management, including a general session in the morning. The show floor will open the following day.

According to Philippe Element, vice president sales and dealer support, 85% of the dealer base of 250 independents across Canada is expected to attend, many with their buyers and managers. Like last year, the show will feature special promotions and “power buys,” and dealers will be equipped with iPads for placing orders electronically on the spot. The range of RONA services for its independent dealers will also be featured.

An LBM product auction, which proved very successful in 2015, will be reprised this year, while enhancements will include expanded space for new products, especially in outdoor living and patio furniture.

(Check out RONA’s promo video for the show here.)

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Titan partners with investor with an eye to more acquisitions

VAUGHAN, Ont. — WSB Titan, the giant commercial drywall operation headquartered just north of Toronto, is on the acquisition trail again, thanks to a partnership with a new investment group. Effective April 29, Titan has entered into a relationship with a “market-leading financial investor.”

According to Doug Skrepnek, one of the principals of WSB Titan, and president of Watson Building Supplies, “We were dealing with conventional banking. But we’ve been expanding at an extremely rapid rate over the past four to five years.” The bank, he says, was happy with Watson’s current status and did not want to provide money for further growth. However, Skrepnek says he has his eye on at least two more acquisitions, “so we went to the street.”

WSB Titan (WSB stands for Watson-Shoemaker-Beauchesne), is the result of a merger of some of Canada’s largest gypsum-supply dealers (GSDs) and represents almost 40 locations across the country. Nor is the company a stranger to big deals. In 2014, Titan acquired Slegg Lumber, the leading dealer on Vancouver Island. Last year it became an equity partner in BC Ceiling Systems, a West Coast distributor with locations in Vancouver, Richmond, and Langley, B.C., and in Calgary. 

Skrepnek won’t put a timeline on the next big deal, but expects to see something happen over the next three to six months. Nor would he name the potential candidates for acquisition, but he did narrow down the geographic possibilities. “We see opportunities in B.C. We’re definitely looking in B.C. That’s our number-one priority.”

However, he makes a point to discount any notion that Titan would acquire Pacific West Systems Supply Ltd., a TIMBER MART dealer which has five locations in British Columbia and two in Alberta. Those rumours, he says, are “completely false.”

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Cheryl Allen is the new territory manager in Atlantic Canada for insulation maker Johns Manville, reporting to Canadian Sales Manager Gino Allegro. Allen previously owned a Benjamin Moore signature store in Amherst, N.S., and then went to work for Sherwin Williams as a territory manager in Atlantic Canada. (cheryl.allen@jm.com; 902-614-9545)

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_____________________________________________________________________

CLASSIFIED ADS

Sales Representative North Saskatoon

Sherwin-Williams is hiring a Sales Rep in N. Saskatoon.  This position is responsible for increasing sales and profit by growing key, targeted independent dealers within an assigned territory.

The position will service and grow existing customers; develop and implement business plans, oversee program implementation and develop customer relationships to expand product offerings. The sales representative will also be
responsible to grow the business through prospecting new customers, presenting sales opportunities, product training and CRM utilization.

– This position will cover the following geography: Northern Saskatchewan
– Candidate must live within the geography/territory stated above
– Travel % = 60%
– 2+ years of outside sales experience with a proven track record of sales success.  Preferred experience selling to independent paint dealers,
co-op’s/hardware stores, distributors, contractors or architects.

Please state "to apply for this position visit http://careers.sherwin-williams.com/careers/openings/, click on Careers@Sherwin-Williams and search req # 16000668".

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May 9, 2016 Volume

xxii, #19

“If you don’t like the road you’re walking, start paving another one.”
— Dolly Parton (American singer-songwriter, actress, author, businesswoman, and humanitarian, known primarily for her work in country music, 1946-)

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Vegas attracts Canadians to National Hardware Show

LAS VEGAS — Retailers and vendors descended on the Las Vegas Convention Center for this year’s National Hardware Show and once again the show drew a solid representation from Canada.

Those companies included RONA, Home Depot Canada, Home Hardware, Spancan, Ace Canada, BMR, and Peavey Industries. By mid-morning on day one of the show, Robert Rizzi, merchandising manager for paint at Lowe’s Canada, was already finding a couple of things that were new and interesting. Though concerned that there wasn’t as much innovation evident as in years past, he was nevertheless confident of finding more new products before the show’s end.

Mike Daniels, the general manager at hardware buying group Spancan, was down at the show with some of the buyers from Spancan member companies, including Patrick Morin, Kent, and Federated Co-operatives. He explained that he was looking for new vendors that he and his group could meet with during the show to determine future opportunities.

RONA surprised many with a strong presence at the show; five merchants came down from the RONA buying team, and another five from RONA’s Reno-Depot buying team. And Lowe’s Rizzi was part of a team of 12 merchants from his company.

But the show is attracting more and more independents each year, as well. This year, a contingent of about a dozen Home Hardware dealers took time to attend the show. They were unanimous in extolling the benefits of the trip, saying it gave them lots of new ideas to pass along to Home’s own buyers.

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Sexton Group grows membership, introduces IT platform

WINNIPEG ― Sexton Group has been adding new members, and has launched a new IT system to support that growing member base.

Calling the new platform state of the art, accounting manager Krista Venn says, “This is the culmination of three years of development and preparation. While change of this magnitude is challenging, we are happy with the launch.” Venn adds that the new IT platform combines technologies of both SAP and LBMX, to serve the members of the LBM buying group “for years to come.”

Ten new members have already joined Sexton during the first quarter of 2016, with more lined up to join in the coming months. “We are pleased that building supply dealers continue to see value in joining Sexton Group,” says Sexton President Steve Buckle. “We are particularly enthused by the addition of four dealers in Eastern Canada, where we are working hard to build our membership base.”

In early spring, Sexton Group invited more than 350 vendor representatives in Moncton, N.B., and Toronto to learn more about the group and its Eastern Canada-based members. “Local sales representation is very important to our membership and we want to encourage suppliers to visit our members and build the business together,” says Joe Collerone, director of marketing. “We are keeping in touch with these representatives through e-mail and social media.”

The vendor sales representative meeting made it clear that Sexton Group is ambitious for continued growth for both members and suppliers. To that end, the group is committed to keeping both sides well connected at the local level and sees fostering this connection as one of its key responsibilities.

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Lee Valley Tools, Quebec TIMBER MART dealer join Hardlines Conference

WORLD HQ, Toronto — The relocation of the Hardlines Conference to Niagara Falls, Ont., for its 21st edition this year has been met with overwhelmingly positive response from dealers and vendors alike. And the addition of some important retailers to the speaker roster has only added to that excitement.

We recently interviewed Robin Lee, president of Lee Valley Tools, about the retailer’s aggressive expansion plans, with up to two stores a year planned for the coming years. Lee told us how these sites are designed to provide the same kind of expertise and customer care that appeals to the hardcore woodworkers, contractors, and hobby enthusiasts who shop online and in Lee Valley’s existing stores. The story was so compelling that we had to ask him to share it with our conference audience.

Nicolas Couture is part of the family in Richmond, Que., which owns four TIMBER MART stores. He is also part of a new generation of dealers that is facing concerns of its own, including slower market growth compared with the beginning of the century, tougher competition, a changing customer, and the rise of internet selling. His company is also being proactive in its expansion, as part of a trend that sees an increasing number of dealers grow by acquiring other stores in their markets.

Both these retailers will share their stories as part of the 21st Hardlines Conference. They join an already impressive lineup of speakers: Andrea Stairs, managing director of eBay Canada; Ron Beal, president of Orgill Inc.; Jay Heubner, president and general manager of Ace International; Ibrahim Ibrahim, retail futurist from the U.K.; Aron Gampel, vice president of Scotiabank Economics; and Dan Tratensek, vice president of publishing for the NRHA.

The 21st annual Hardlines Conference will be held at the Sheraton on the Falls Hotel in Niagara Falls, Ont., from October 18 to 19, 2016. It will play host to more than 175 dealers, managers, and executives in home improvement retailing in North America. For more information and to register, click here now.

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Acquisitions lead to shifting Canadian market

SPECIAL REPORT — It’s been a big year for hardware distribution in Canada. With the announcement of Orgill’s acquisition of Chalifour Canada, and Lowe’s purchase of RONA (and with it, Ace Canada), everyone’s wondering what it means now that so many distribution roads lead back to the U.S.

Both Orgill and Lowe’s are positive about their recent acquisitions, while dealers and competitor distribution companies are much more cautious about weighing in.

When Orgill acquired Chalifour Canada and established Canadian headquarters at Chalifour’s former distribution centre in London, Ont., one industry member who was especially happy about the news was Castle Building Centres Group President Ken Jenkins. Castle has had a relationship with Orgill for a number of years and Jenkins believes that an increased Orgill presence here will only help his independent dealer members.

“As we’ve grown with Orgill, and we grew our volume with them, we knew it was only a matter of time before they were going to be here in Canada,” says Jenkins. “To say I’m excited and happy about the change would be an understatement.” 

He adds that it offers Castle dealers an edge over their competing banner chains, such as Home Hardware. “It gives us a leg up on our competition. We see this as a tipping point,” he says.

Establishing a footprint in Canada is part of Orgill’s plan to expand its offerings to Canadian customers, while meeting packaging and compliance laws. “The Orgill team has worked diligently to overcome the challenges raised by these requirements,” says Ron Beal, president of Orgill. “The goal has been and will continue to be to make the transition as seamless as possible for our customers.”

And then, while the industry was still buzzing about the Orgill announcement, Lowe’s Cos. made its second offer on RONA inc. (its first being a failed friendly takeover in 2012), which was accepted. Following the announcement late last year that TruServ Canada had completed its transition to Ace Canada, everyone was left wondering what would happen to RONA’s full-line Canadian distributor arm.

In an interview with HARDLINES in the days immediately following the announcement, Sylvain Prud’homme, president of Lowe’s Canada, made it clear that the intention heading into the transition was to keep RONA’s multiple separate banners, including Reno-Depot and Ace. “Independent dealers are important to our planned model,” Prud’homme said.

(Excerpted from the latest issue of our sister publication, Hardlines Home Improvement Quarterly magazine, which was mailed last month to more than 11,000 dealers across Canada. For you own copy, click here! ―Editor)

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The evening before the start of the National Hardware Show in Las Vegas last week, the North American Retail Hardware Association gave out its Young Retailer Awards. Dan Moulton, dealer-owner of Alliston Home Hardware Building Centre and Hanover Home Hardware Building Centre, in Alliston and Hanover, Ont., won in the multiple stores category.

Matthew Raetsen has joined Castle Building Centres Group as business development manager for Manitoba and Saskatchewan. Prior to joining Castle, Raetsen was with Ply Gem Canada, most recently as branch and brand manager of Mitten/Ply Gem. Over the next few months, he will be working closely with Castle’s Business Development Team Mentor Alan Schoemperlen. Also: Maryam Bashir has been promoted to Castle’s marketing communications department, working alongside Jennifer Mercieca and Susan Brook as Castle’s bilingual marketing co-ordinator. And Peggy Cuff has accepted the newly created role of executive administration manager, reporting directly to Castle President Ken Jenkins.

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CLASSIFIED ADS

Castle Building Centres Group Limited

Business Development Manager — Ontario

Castle Building Centres Group is an industry leader among Buying Groups in the Lumber and Building Materials segment in Canada.

You are a highly motivated individual with strong relationship and communication skills that can manage and develop our future growth in Ontario. This position requires an individual who is familiar with the Ontario Lumber and Building Supply industry, willing to travel extensively and accustomed to working remote from head office.

Reporting to the Director of Business Development, you welcome the opportunity to work with a dynamic group of independent LBM dealers while planning and executing our future growth initiatives. Providing continual communication to our Ontario Members while understanding their needs is fundamental to your success. Sound computer and presentation skills combined with good administrative qualities are imperative.

Castle Building Centres Group offers a comprehensive compensation package including full benefits.

All submissions will be treated with complete confidentiality. Please forward by email your resume in confidence to:

E-mail: jobs@castle.ca
Castle Building Centres Group Ltd.
100 Milverton Drive, Suite 400
Mississauga, Ontario
L5R 4H1

____________________________________________________________________

BLANCO is an International market leader in the Kitchen sink and faucet industry with its Canadian head office based in Brampton, Ontario. Blanco also manufacturers our patented Silgranit® sinks in Canada.

We are currently seeking an experienced (5+ years) Retail Account Manager to join our expanding Canadian Sales team and drive our continued growth in this channel.  This position will manage the Canadian retail portfolio and work closely with our sales agencies to ensure all sales objectives are achieved.  This position reports to the Director, National Sales and is based out of our Brampton head office.

Interested applicants should email resumes to hrinfo@blancocanada.com .  We thank all those who apply, however please note only applicants selected for an interview will be contacted.     

If you require this application in an alternate format, please contact our HR Department at 905-494-2400 or hrinfo@blancocanada.com

May 2, 2016 Volume

xxii, #18

“There’s only one corner of the universe you can be certain of improving, and that’s your own self.”
— Aldous Huxley (English writer, novelist, philosopher, and grandson of the scientist Thomas Huxley, 1894-1963)

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Ace Canada opens new store in Alberta market

SUNDRE, Alta. — The Ace banner continues to gain traction across Canada with the opening of a new Ace Hardware store last week in Sundre, Alta. This latest store opened with the help of owners Tom and Marty Mennear and the store’s manager, Barkley Carrier.

Nestled in the foothills of the Rocky Mountains, north of Calgary, the store has been designed to reflect the needs of this community, offering everything from home maintenance needs to an extensive array of high-quality products in categories such as paint and lawn and garden.

The Ace banner, which is licensed in Canada by RONA inc. (and soon to be part of Lowe’s Canada, pending finalization of the takeover by the Competition Bureau), is proving a good fit for many dealers. Ace Canada has signed or converted 60 dealers in the past year. Another store is set to open later this month in Caledon, Ont.

Local response to the Sundre store has been positive, including one customer who said, “I’ve never been to a store so helpful, lots of staff to help with my project and needs. They’ve really done this right. What a great vibe.”

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Home Hardware’s new VP reinforces branding message at latest market

ST. JACOBS, Ont. — While new products and new vendors were the main draw at the latest Home Hardware Market, held recently at its head office distribution centre in St. Jacobs, Ont., the reinforcement of Home’s culture and values were reinforced, as well.

That included an overview of marketing initiatives to boost the Home Hardware brand, courtesy of Rob Wallace, marketing & public relations manager at Home Hardware Stores Limited. He noted that promotion and advertising, including TV ads featuring dealers themselves, help reinforce that Home Hardware dealer-owners are part of the fabric of Canadian life. The ads are an important part of the messaging, “to keep the Home Hardware brand front and centre with Canadian consumers.”

Also new for Home is its vice president of marketing and sales, Rick McNabb, who was introduced to the dealers at a rally on the second day of the show. McNabb joined the co-op effective March 7 of this year, after working at the food service company Cara Foods, most recently as COO of Harvey’s-Swiss Chalet.

“I’ve obviously got a lot to learn about this category, because it is different,” McNabb admitted. But, he added, he grew up in the home improvement business: his dad worked for Aikenhead’s Hardware, which was owned by the same group that owned Beaver Lumber, and he worked at Beaver during school. More recently, he helped out his brother, Gary McNabb, who owns the Home Hardware store in Gravenhurst, Ont.

“Our aim is clear,” he noted. “We’re here to serve the needs of our dealers.”

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Lee Valley’s “boutique” shop a prototype for tourist areas

OTTAWA — Lee Valley Tools has been stepping up expansion of its bricks-and-mortar sites, with a new store that just open in Kelowna, B.C. (see our incredible April 11, 2016 edition for full story! ―your effervescent Editor.) However, the online specialty tool, garden supply, and lifestyle products retailer has another prototype in a small town a short drive from Ottawa—one that is quite different from the others in the chain.

L.G. Lee & Sons is a small traditional hardware store on the main street of Almonte, Ont., a small town in the Ottawa valley that is a popular destination for day trips from Ottawa. It is also near the home of Lee Valley Tools Founder Leonard Lee. He, and his sons Robin and James, restored the 115-year-old building, which had been a hardware store since the early 1900s. Today it serves to bring together Lee Valley’s most popular catalogue items in the setting of a traditional hardware store, complete with antique oak fixtures.

Robin Lee, president of the company, says the store reflects a broader range of products that Lee Valley Tools has developed over the years, which ranges from specialty woodworking tools to unique and retro gizmos and home accessories. He says this range of items is great for gifts and impulse purchases.

This “discovery” type of shopping would work well, he says, in destination towns such as Almonte and in tourist-oriented communities such as Niagara Falls, Ont., or Stratford, Ont., home to the Stratford Shakespeare Festival. “I’d love to have a store in Niagara Falls.”

(Breaking News: Lee Valley Tools President Robin Lee has just agreed to be a keynote at our 21st Annual Hardlines Conference, October 18 to 19, in Niagara Falls, Ont. You’ll hear first-hand about the incredible changes his company is making to combine bricks and mortar with online selling. Click here now to register —and get our Early Bird pricing!)

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Contractor dealers count on new products to keep selection fresh

SPECIAL REPORT — New products can be just the thing to help set your business apart from competitors, both online and in-store. Take Soo Mill & Lumber, a Sault Ste. Marie, Ont.-based dealer. The dealer has been scaling back the assortment at its two yards, whose departments now focus on featuring a commercial-grade and consumer-grade product per category.

But that doesn’t mean this dealer has shut the door on offering new items. It recently got back into stocking wire mesh and rebar. And a few months ago, it purchased two lifts 1×12 No. 4 pine board—sanded on three sides, 120 four- and eight-foot pieces per lift—to gauge demand from its pro customers. “Can we make money on it?” is what Soo Mill’s president Lynn Hollingsworth asks whenever a new product is put forward. The answer usually includes investigating whether a vendor or another dealer is selling the product cheaper online.

For Winnipeg-based Sexton Group, which buys for 300 members with 400 locations, “we’re looking for some kind of critical mass” in member purchases when considering something new, says Sexton president Steve Buckle.

Patrick Morin, a family-owned chain with 21 locations in Quebec, sees new products as a way to keep customers coming to its stores at a time when they’re inclined to shop online. Daniel Lampron, general manager, adds that new products help Patrick Morin stay in front of a new generation of shoppers.

Soo Mill and Patrick Morin belong to Independent Lumber Dealers Co-Operative (ILDC), and both Hollingsworth and Lampron say that before their stores take on anything new, they’ll ask other ILDC members, whose stores might already carry the product, about how it’s selling.

(This article is excerpted from the latest issue of our sister publication, Hardlines Home Improvement Quarterly magazine, which was mailed last month to more than 11,000 dealers across Canada. For you own copy, click here! ―Editor)

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Lucie Bernier has joined Pro-Spec Agency, reflecting the growth of the Trois Rivières, Que.-based company with a larger team and expanded lines. She moves over from Agences Jean-Pierre Sylvain. (514-770-7732; lucie@pro-spec.co)

Louise Wendling, former country manager and chair of the board of Costco Wholesale Canada, is the 2016 recipient of the Retail Council of Canada’s Lifetime Achievement Award. The award recognizes a family or an individual in retail who has demonstrated outstanding business success and community service throughout their career and who has left an indelible mark on the industry. Wendling and Costco Wholesale Canada join a long line of recipients, including the founders of Roots Canada, Michael Budman and Don Green; Former Sobeys president & CEO Bill McEwan; and the Billes family, which founded Canadian Tire Corporation.

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_____________________________________________________________________

CLASSIFIED ADS

Castle Building Centres Group Limited

Business Development Manager — Ontario

Castle Building Centres Group is an industry leader among Buying Groups in the Lumber and Building Materials segment in Canada.

You are a highly motivated individual with strong relationship and communication skills that can manage and develop our future growth in Ontario. This position requires an individual who is familiar with the Ontario Lumber and Building Supply industry, willing to travel extensively and accustomed to working remote from head office.

Reporting to the Director of Business Development, you welcome the opportunity to work with a dynamic group of independent LBM dealers while planning and executing our future growth initiatives. Providing continual communication to our Ontario Members while understanding their needs is fundamental to your success. Sound computer and presentation skills combined with good administrative qualities are imperative.

Castle Building Centres Group offers a comprehensive compensation package including full benefits.

All submissions will be treated with complete confidentiality. Please forward by email your resume in confidence to:

E-mail: jobs@castle.ca
Castle Building Centres Group Ltd.
100 Milverton Drive, Suite 400
Mississauga, Ontario
L5R 4H1

____________________________________________________________________

BLANCO is an International market leader in the Kitchen sink and faucet industry with its Canadian head office based in Brampton, Ontario. Blanco also manufacturers our patented Silgranit® sinks in Canada.

We are currently seeking an experienced (5+ years) Retail Account Manager to join our expanding Canadian Sales team and drive our continued growth in this channel.  This position will manage the Canadian retail portfolio and work closely with our sales agencies to ensure all sales objectives are achieved.  This position reports to the Director, National Sales and is based out of our Brampton head office.

Interested applicants should email resumes to hrinfo@blancocanada.com .  We thank all those who apply, however please note only applicants selected for an interview will be contacted.     

If you require this application in an alternate format, please contact our HR Department at 905-494-2400 or hrinfo@blancocanada.com

April 25, 2016 Volume

xxii, #17

“A strong spirit transcends rules.”

— Prince Rogers Nelson, aka Prince (American singer, pop star, songwriter of hits like “1999,” 1958-2016)

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Regional associations commit to align more closely under national umbrella

A united front working toward a pan-Canadian organization (from West-East): Brad McCluskie and Thomas Foreman from BSIA; Gary Hamilton, Mark Westrum, and Tom Bell from WRLA; Ron Schell, Ken Forbes, and David W. Campbell from LBMAO; Richard Darveau and Nicolas Couture from AQMAT; Chris Deveaux and Denis Melanson from ABSDA.

MISSISSAUGA, Ont. ― In a small inn at the mouth of the Credit River in Southern Ontario, executives of the five regional retail building materials associations held a special meeting two weeks ago. There, they voted in favour of changes to their relationship. Those changes mark a turning point in the representation of 2,400 Canadian dealers and of their suppliers.

The groups agreed to codify the role and position of their umbrella association, the Canadian Retail Building Supply Council (CRBSC), which has in the past provided a forum for the member organizations informally to exchange ideas, information, and practices. Now, the members have developed a rationale to have the CRBSC represent the industry more visibly, especially at the federal government level, while proactively addressing national issues.

“Founded in the mid-1980s, the umbrella organization established its mission without taking into account the means of achieving it,” says Council President Richard Darveau, who is also president and CEO of the Quebec industry association, AQMAT.

The first decision was to incorporate the CRBSC in accordance with the Canada Not-for-profit Corporations Act. The second decision was to establish the organization’s headquarters in Ottawa, with five regional offices represented by the respective associations: the Building Supply Industry Association of British Columbia in Surrey, B.C.; the Western Retail Lumber Association in Winnipeg; the Lumber and Building Materials Association of Ontario, based in Mississauga, Ont.; the Quebec Hardware and Building Association in Longueuil, Que.; and the Atlantic Building Supply Association, headquartered in Dieppe, N.B.

A key mandate of the newly strengthened CRBSC will be to document the effectiveness of past federal renovation tax credits in terms of their impact on society, the economy, and public finances. The goal is to objectively discuss which measures to take in the future. A study will be carried out by an independent economist and tax specialist. Other initiatives will be raising the awareness of home improvement retail as a career option, with concrete tools to select employees, and a national hiring campaign. Also: online training for renovation and construction project quoting will also be available starting this fall.

The fourth key decision by the CRBSC and its five founding associations was to give their official endorsement to the annual Hardlines Conference so the Canadian industry will enjoy an event that is worthy of both its vitality and scale. Therefore, changes in image and organization of this conference are expected beginning with the 22nd edition in the fall of 2017.

CRBSC will hold two meetings per year, the next one on October 19 and 20 in conjunction with the Hardlines Conference in Niagara Falls, Ont.

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Good weather, new vendors elevated the tone at latest Home Hardware Market

ST. JACOBS, Ont. — Dealers from across Canada again gathered in the small Southwestern Ontario town of St. Jacobs for Home Hardware’s semi-annual market. The good weather of recent weeks helped boost spirits on the show floor, while a number of new vendors upped the range of products available.

The dealers were reportedly pleased with the fresh offerings, especially in the category of kitchen and bath cabinets and counters.

According to Jessica Kuepfer, a spokesperson for Home Hardware, “There were more kitchen vendors and counter displays because of an increased desire and need for the products among our dealers.” She notes that more and more Home dealers are expanding this category. “We wanted to demonstrate the display opportunities available to our stores and provide them a space to ask questions and find the best product for their communities.”

A number of innovations were part of this show, as well, including a new event app, designed for the Spring Market by Fluid Events. The mobile app provided information on vendors, seminars, maps, and shuttle schedules, and allowed dealers to customize their own agendas for the show. Kuepfer says her team received plenty of positive feedback on the app throughout the market. She adds that while the information populating the app was dissolved the day after the show closed, it will be refreshed and reused for future markets.

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Ace Canada welcomes new dealers at Spring Buying Show

WINNIPEG ― Ace Canada completed its Spring Buying Show at the newly refurbished Winnipeg RBC Convention Centre, from April 16 to 18.

The show highlighted seasonal offers for fall and winter selling, including fourth-quarter holiday sales ideas. But perhaps more significantly, it played host to a slew of dealers who have adopted the Ace banner. “We’ve gone from zero to 60 in just a little over one year,” says Bill Morrison, president of Ace Canada. Those numbers reflect both conversions of the distributor’s TRU dealers and independents from other groups. “We are proud to welcome the new dealers who have joined us.”

The appeal of the Ace banner, which is licensed in Canada by RONA inc., came into question upon the announcement that RONA would be acquired by Lowe’s, making it―and the Ace name―part of Lowe’s Canada. However, based on the numbers that are picking up the Ace brand, it’s proving a good fit for many dealers.

Ace is well known in the U.S., where it competes with Lowe’s. It is a dealer-owned co-op, structured similarly to Home Hardware Stores Ltd. here in Canada. Ace was formerly licensed by TIMBER MART Group, but that relationship ended in August 2015, whereupon RONA picked up the banner as another offering for dealers, especially smaller stores served by its TruServ Canada distribution business based in Winnipeg. TruServ has since been renamed Ace Canada.

Ace’s products got a lot of exposure on the show floor and its private-label lines are proving popular with dealers. In addition to the products, the show featured leadership training and a focus on retail skills, reflecting the range of services available from Ace.

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Lowe’s + RONA = a force for Home Depot to reckon with

SPECIAL REPORT ― Pending final approvals from the Competition Bureau, RONA is just months, or even weeks, away from becoming part of Lowe’s Canada. The resulting union will create a retail juggernaut.

RONA has 13% of the Canadian retail home improvement market, based on sales at the cash register. It has 500 stores, of which 236 are corporately owned. By contrast, Lowe’s Canada has just 2.4% market share through 42 stores. RONA reported 2015 consolidated sales of $4.1 billion, which measures its wholesale sales combined with retail sales through corporate stores. But once sales from its independents are added in, RONA’s contribution to the market grows to more than $5 billion.

Together, Lowe’s and RONA’s sales will reach an estimated $6.6 billion, narrowing the gap with the industry leader, Home Depot Canada, which had sales in 2015 of more than $7 billion.

But Lowe’s Canada is part of a much larger operation, of course. Lowe’s Cos. in the U.S. is the number-two home improvement retailer worldwide, second only to Home Depot. Lowe’s total sales in 2015 were US$59.1 billion through 1,857 stores, compared with Home Depot, which has 2,274 stores and sales of US$88.5 billion.

Despite its increased size, the Lowe’s-RONA combo will still face challenges in various regions of the country. However, multiple banners and store sizes, through Lowe’s, RONA, and Ace, will give Lowe’s the versatility to penetrate regional markets with footprints that aren’t confined to the big box model. And that’s something Home Depot Canada can’t offer.

(CORRECTION: The information in this chart appeared incorrectly in the latest issue of our print magazine, HHIQ. Those numbers have been corrected here. HARDLINES apologizes for the error).

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Coast Distributors Ltd., the Nanaimo, B.C.-based hardware wholesaler, has added two members to its outside sales team. Kevin Fookes has been living on Vancouver Island for 25 years, most of which he has spent in the door and window business. He will be calling on Northern Vancouver Island. (250-203-7910) Rees Eyre has been in the building supply industry for more than 10 years, having worked for PrimeSource and Tree Island Steel. He lives on the Lower Mainland and will be servicing customers in Greater Vancouver and the Sunshine Coast. (604-763-2003)

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_____________________________________________________________________

CLASSIFIED ADS

Castle Building Centres Group Limited

Business Development Manager — Ontario

Castle Building Centres Group is an industry leader among Buying Groups in the Lumber and Building Materials segment in Canada.

You are a highly motivated individual with strong relationship and communication skills that can manage and develop our future growth in Ontario. This position requires an individual who is familiar with the Ontario Lumber and Building Supply industry, willing to travel extensively and accustomed to working remote from head office.

Reporting to the Director of Business Development, you welcome the opportunity to work with a dynamic group of independent LBM dealers while planning and executing our future growth initiatives. Providing continual communication to our Ontario Members while understanding their needs is fundamental to your success. Sound computer and presentation skills combined with good administrative qualities are imperative.

Castle Building Centres Group offers a comprehensive compensation package including full benefits.

All submissions will be treated with complete confidentiality. Please forward by email your resume in confidence to:

E-mail: jobs@castle.ca

Castle Building Centres Group Ltd.

100 Milverton Drive, Suite 400

Mississauga, Ontario

L5R 4H1

____________________________________________________________________

BLANCO is an International market leader in the Kitchen sink and faucet industry with its Canadian head office based in Brampton, Ontario. Blanco also manufacturers our patented Silgranit® sinks in Canada.

We are currently seeking an experienced (5+ years) Retail Account Manager to join our expanding Canadian Sales team and drive our continued growth in this channel.  This position will manage the Canadian retail portfolio and work closely with our sales agencies to ensure all sales objectives are achieved.  This position reports to the Director, National Sales and is based out of our Brampton head office.

Interested applicants should email resumes to hrinfo@blancocanada.com .  We thank all those who apply, however please note only applicants selected for an interview will be contacted.

If you require this application in an alternate format, please contact our HR Department at 905-494-2400 or hrinfo@blancocanada.com

April 18, 2016 Volume

xxii, #16

“It is not who is right, but what is right, that is of importance.”
—Thomas Huxley (English biologist and educator, 1825-1895)

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eBay Canada managing director will headline Hardlines Conference

WORLD HQ, Toronto — Hardlines is pleased to announce that Andrea Stairs, who heads up eBay Canada, has agreed to join our roster of speakers at the 21st Annual Hardlines Conference, October 18 to 19, in Niagara Falls, Ont.

As eBay Canada’s managing director, Stairs leads the Canadian strategy and operations of one of the world’s largest online marketplaces—and Canada’s second largest e-commerce business. Stairs is responsible for cultivating eBay’s community of Canadian users. That includes everything from individual consumers to established brands and retailers. In addition, she oversees all of eBay’s Canadian functions, including product management, marketing, business development, and public and government relations.

Stairs joins an already-impressive lineup of speakers, which includes Ron Beal, president of Orgill Inc., the Memphis-based hardware wholesaler which owns Orgill Canada Hardlines; and Jay Heubner, president and general manager of Ace International.

Ibrahim Ibrahim, the retail futurist from the U.K. and long-time conference favourite, has also been confirmed to return to the Hardlines stage. Aron Gampel, vice president of Scotiabank Economics, is another speaker who’s been invited back after a resounding reception last year. Rounding out our lineup so far is Dan Tratensek, vice president of publishing for the North American Retail Hardware Association, with his insights into the issues facing independent dealers.

The 21st annual Hardlines Conference will be held at the Sheraton on the Falls Hotel in Niagara Falls, Ont., from October 18 to 19, 2016. It will play host to more than 175 dealers, managers, and executives in home improvement retailing in North America. For more information and to register, click here now.

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