February 20, 2017 Volume

xxiii, #8

“The secret of staying young is to live honestly, eat slowly, and lie about your age.” — Lucille Ball (American actress, comedian, model, film-studio executive, and producer, 1911-1989)

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Lowe’s ramps up support for Ace, consolidates Winnipeg DC into Toronto

BOUCHERVILLE, Que. ― Lowe’s Canada has announced it is stepping up its investment in the Ace independent business that it owns through its acquisition of RONA. Lowe’s will bring the management and support of the Ace program into the Lowe’s Canada regional service centre in Toronto, while moving distribution for Ace to Lowe’s existing distribution centres in Boucherville, Que., and Calgary.

The move will result in the closing of the Ace head office and warehouse in Winnipeg, and the closing of Ace’s distribution centre in Kitchener, Ont., and leveraging of the Calgary and Boucherville locations to continue serving Ace dealers.

Winnipeg is scheduled to close by August, while Kitchener is expected to shut its doors by late fall.

Industry observers have speculated about Lowe’s long-term interest in Ace―and the independent network it serves―but with this move the company is affirming its willingness to invest resources to support and grow the entire independent retailer network. It plans on enhancing dealer growth by fostering marketing support, growing the Ace product offering, and providing improved product pricing.

“Our goal is to support Ace dealer sales growth and profitability by establishing a dynamic dealer support program that offers our dealers a better share in their markets,” said Alain Brisebois, executive vice president of affiliated dealers. “We strongly believe in independent retailers, a key vector for our growth. Within this context, investing in Ace programs will ensure a successful longer-term outcome.”

Many people from the Winnipeg office have been offered the chance to move to Toronto. So far, Bill Morrison, who runs Ace in Canada for Lowe’s, will make the move and develop his dedicated management and buying teams in Toronto. Ace will continue to be treated as distinct business unit within the Lowe’s organization, alongside the big box, Reno-Depot, and RONA proximity segments.

Brisebois emphasized that Lowe’s regards Ace as an important part of the company’s success. “Lowe’s will continue to invest in the Ace program to ensure this success.”

He added that Lowe’s will make every effort to ensure a smooth transition, providing resources that actively support employees, dealers, vendors, and customers. The company will ensure all dealers continue to be served during the switch to the new distribution centres, a process that will involve switching their systems to the same ones used by RONA affiliate dealers.

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Orgill expects to reduce delivery times to Western Canada with new DC

MEMPHIS — As Canadian dealers prepared to fly down to New Orleans for the latest Orgill Dealer Market, the giant Memphis-based hardware distributor was ramping up its logistics to better serve those dealers.

Orgill has launched the first phase of operations at its new Post Falls, Idaho, distribution centre, shipping to customers in certain regions of British Columbia. While the company originally planned to service just B.C. and Alberta from this facility, Orgill since expanded its planned coverage. “When the distribution centre becomes fully operational in April, we will also service our Saskatchewan customers from Post Falls,” says Ron Beal, Orgill president, chairman, and CEO. Most customers in Western Canada will then be serviced by Orgill Canada trucks, which will result in faster delivery times and reduced freight costs, the company says.

Over the past 18 months, Orgill, Inc. has invested significantly in its Canadian distribution network and infrastructure to provide greater service and flexibility to its growing customer base throughout the country. Customers in British Columbia will receive their deliveries within two days of their orders filling and trucks will service Alberta and Saskatchewan customers within three business days.

“This is significant because it means that these customers can count on a consistent, pre-scheduled time of delivery with a driver they know,” explains Randy Williams, Orgill general manager of distribution. “It also means that the product will be delivered in a heated trailer to minimize any potential freezing or weather-related damage.” 

The company also anticipated a strong showing of Canadians in New Orleans this past weekend, where Orgill will showcase “a full offering of Canadian-focused products, programs, and services,” says Beal. Members of Orgill’s London, Ont., and Post Falls operations and logistics management teams were to be on hand to meet with customers, answer questions, and discuss the enhancements to the Canadian distribution network.

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TIMBER MART kicks off 50th anniversary with convention and trade show

VAUGHAN, Ont. – TIMBER MART kicked off its 50th anniversary celebrations at their national annual convention at the Grand Velas Riviera Nayarit resort in Puerto Vallarta, Mexico, from January 22 to 29. The event played host to record attendance of more than 460 dealers, vendors, and staff.

Throughout the week-long celebration at the resort, dealers, vendors, and staff celebrated with a birthday party, complete with fireworks and birthday cake, dinners, live entertainment, and excursions.

“This year’s national convention was truly a special experience for us all as we celebrated this important milestone in our evolution as a buying group,” says Bernie Owens, president of TIMBER MART. “If the last 50 years have demonstrated anything, they have proven that TIMBER MART can and will adapt to change to ensure the Canadian independent remains competitive in their local market.”

The convention also anticipated the buying group’s annual national buying show, which took place last week at the Toronto Congress Centre. It managed to draw about 350 dealers from across the country, despite snowstorms in many parts of the country, including conditions in Atlantic Canada that prevented about 30 dealers from getting to the show.

The show featured 150-plus vendors in 225 booths at the Congress Centre near Toronto’s Pearson International Airport. While the show is considered a small one by the vendor community, it appeared to draw enough customers to make the effort pay off. One vendor noted that attendance was “surprisingly good out of the gate,” while another noted the quantity and quality of attendees exceeded their expectations.

But criticisms of its small size don’t faze TIMBER MART President Bernie Owens. He acknowledges that shows in North America in general are challenged in getting attendance. But he views the intimacy of this event as an important part of what the TIMBER MART is trying to accomplish with it: to offer a forum for dealers to connect and for the group to share and fortify the group’s culture and range of services.

“This show is about building products,” he says. “We do our key messaging here. We bring the members together to share TIMBER MART’s achievements and vision.”

As for those Atlantic dealers who couldn’t attend, TIMBER MART reps called them for their orders, then walked the show on their behalf to make sure those dealers didn’t miss out on the show specials.

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Conversion of RONA big boxes to Lowe’s banner begins with Edmonton store

BOUCHERVILLE, Que. — Lowe’s Canada has announced that its Namao RONA Home and Garden store, in Edmonton’s North end, will be the first RONA big box location to convert to the Lowe’s banner. The Namao store will undergo an extensive renovation and remerchandising. That process is expected to be completed by this summer.

But beginning this week, the store will undergo a 16-week physical transformation that involves construction, departmental sequencing of new racking and re-merchandising, branding, and IT conversion. As well, staff there will get the benefit of Lowe’s extensive training program. When done, the store will feature 97,429 square feet of retail sales space, an adjacent garden centre with 30,188 square feet, and a 16,922-square-foot lumber yard.

“The store will remain open during the conversion and we are committed to minimizing any impact on customers so that we can continue to offer the best shopping experience possible during the conversion process,” said Jim Caldwell, EVP of Lowe’s Canada Big Box Retail.

One of the key changes to the store will be the addition of large appliances, a core strength for Lowe’s stores. Assortments will be expanded, with the addition of brand names such as Kohler, John Deere, and Whirlpool. Lowe’s will also add installation services across a number of categories, warranty plans for products such as appliances, tools, and outdoor power equipment, and online shopping options, including the “Click & Collect” program for in-store pickup and local truck delivery and parcel shipping. This service was introduced at its Reno-Depot stores recently.

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The Hillman Group is expanding its sales team in Canada. Stephane Cyr has joined as regional sales manager for Quebec, based out of Montreal. He was formerly at Colonial Elegance. John Foubert has joined as regional sales manager for Western Canada. He’s based out of Airdrie, Alta. Their roles involve regional sales, service, and support, as well as growing the brand. Both individuals report to Steve Goulding, Hillman’s director of national retail sales for Canada.

David Johnson has joined All Weather Windows as VP for sales and marketing. Prior to the appointment, he had been with Signal Hill Equity Group since January of last year. Before joining Signal Hill, Johnson served as VP of the Industrial and Construction Group at Mosaic Capital, and previously as CEO and president of Expocrete Concrete Products Ltd.

The Global DIY Summit has announced the appointment of Iñaki Maillard as its new general manager. He will report directly to Ralf Rahmede and John W. Herbert, the chairmen, co-founders and official moderators of the Summit. Before this appointment, Maillard served as communications and marketing manager for the Summit during the past six years. Prior to that, he worked as correspondent at Thomson Reuters Mexico and Deutsche Welle Germany.

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February 13, 2017 Volume

xxiii, #7

“Anyone who keeps the ability to see beauty in every age of life really never grows old.” —Franz Kafka (German author, 1883-1924)

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Peavey, Patrick Morin, HardwareandTools.com at Hardlines Conference

WORLD HEADQUARTERS, Toronto — One of Canada’s leading independent home improvement dealers, a major Western Canadian farm and hardware chain, and Canada’s leading housing economist will be featured on the podium at the 2017 Hardlines Conference.

Now in its 22nd year, the conference will be held November 14 to 15 in Niagara Falls, Ont. With the theme of “Bricks and Clicks,” it will focus on delivering insights on how independents and large retailers alike can survive and prosper amidst the rise of online selling.

Kicking off the conference, Robert Howard of retail consultancy Kurt Salmon will provide an overview of the latest trends in the battle between online and bricks-and-mortar retail.

The conference will also feature some of the country’s most powerful regional retailers. Daniel Lampron is general manager of the giant Quebec home improvement chain Patrick Morin. He has been an instrumental part of the team guiding this family-owned business on a course of tremendous growth in recent years, proving that a healthy bricks-and-mortar presence remains crucial to a strong retail strategy.

In addition, we are pleased to announce that Doug Anderson, president of Peavey Industries, will join the conference as a keynote speaker. Anderson’s company made news last year for its investment in London, Ont.-based TSC Stores, which will make Peavey a farm and hardware powerhouse from British Columbia to Ontario.

On the “clicks” side of home improvement retail, this year’s conference will feature David Goldsholle, founder of HardwareandTools.com. This giant online hardware store has more than 150,000 brand-name products. Goldsholle has vast experience and tremendous insights when it comes to selling tools and hardware online. Not to be missed!

John Herbert, general secretary of EDRA, the European DIY Retail Association, returns to the Hardlines stage in 2017. Herbert will offer an analysis of the leading home improvement retailers globally that point the way for the future of this industry.

To round out the array of learning and education typical of every Hardlines Conference, Dan Tratensek, vice president of publishing at the North American Retail Hardware Association, will share the latest research from his association on retailer issues and challenges. Peter Norman, vice president and chief economist at Altus Group, is an industry-recognized urban economist and forecaster. He will bring his special take on housing and renovation trends to his presentation on the Canadian economy.

(For more information on speakers and conference registration, please click here.)

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BMR expands services for its new range of banners

BOUCHERVILLE, Que. — Since developing a range of banners to accommodate the various store formats it serves, Groupe BMR has been working to refine the programs associated with those banners.

Late last year the company unveiled a new branding strategy for its stores: BMR Express for its hardware stores, BMR Expert for its building centres catering to contractors, and BMR Extra for its large-surface outlets. The BMR name will continue to be used as a standalone banner for home centres that cater to the general DIY customer with a mix of hardware and building materials.

Now those different identities are being reflected in BMR’s flyer programs. Each banner gets a specially tailored flyer, featuring different product offerings that reflect the sales and expertise of each BMR banner.

Of the group’s 230 BMR stores, the plan is to switch about 70 stores over to BMR Express by the end of this year. In 2018, conversions will continue, with 23 becoming BMR Extra, and 21 taking the BMR Expert banner. The remaining 120 BMR stores will stay with the generic BMR brand.

Over time, another 60 stores will retain the Unimat banner. That banner became part of the BMR portfolio when BMR was taken over by La Coop fédérée in 2015. The company also has about three dozen farm and hardware stores carrying the Agrizone banner.

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Lowe’s plans more openings for both Lowe’s and RONA in 2017

BOUCHERVILLE, Que. — Lowe’s Canada continues to open more RONA stores, even as it prepares to transition its big boxes to the Lowe’s banner.

The next big boxes to open under the Lowe’s name will be in Sherwood Park, near Edmonton, on March 2, followed by a store in London, Ont., in April.

The RONA brand will continue to be part of Lowe’s Canada’s strategy, however, for its smaller proximity stores and for its independent, or affiliate, dealers. In fact, four new RONA proximity stores will open in the coming months, all of them in Quebec. Three will be corporate stores, located in St-Félix-de-Valoix, Carignan, and Rouyn; one affiliate store is planned for Blainville.

Lowe’s has plans to begin converting its big box RONA Home & Garden stores outside of Quebec to the Lowe’s banner, but would not put a timeline on that conversion. However, subtle shifts in the brand message are already emerging. The big box stores are now being referred to as “Home & Garden by RONA” as emphasis is taken off the RONA name.

While the RONA banner will remain intact longer on Lowe’s Quebec big boxes, the company’s Réno-Dépôt big boxes will remain a separate banner, focusing more on pros and contractors. The latest Réno-Dépôt store opened recently in Boucherville, Que., just minutes from Lowe’s Canada’s head office.

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Home Depot uses data to target pro customers

NEW YORK — Data mining is just one of the ways Home Depot is trying to improve its offering to its pro and contractor customers. At the National Retail Federation’s annual convention in New York, David Abbott, Home Depot’s vice president of integrated media and online marketing, talked about how his company is motivating customers to shop at Home Depot.

While that initative will continue to include a heavy focus on advertising its products, the company is also exploring capabilities to reach specific audiences, Abbott says.

“We want to go after some of the targeting capabilities that exist right now. Our email and our [customer relationship management] team are pretty robust in terms of how they’re approaching segmentation, but now the tools on other digital media are catching up,” he said. “We’re leveraging that more and more through data-management platforms.”

The company is using data to analyze the existing customers the company attracts. “[Pros and contractors equal] about 10% of our customers in terms of number, but they make up about 40% of our sales,” Abbott says. “So if we know we can acquire or retain a pro and spend an extra dollar for a longer term, more and more success metrics will be moving in that direction over time.”

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Elizabeth Scott has been appointed vice president, business development at L’Image Home Products. She has an extensive background as a senior business executive supplying national retailers in the U.S., Canada, Europe, and Australasia. In this newly-created position, Scott will work with the Montreal-based maker of light bulbs, batteries, indoor and outdoor lighting fixtures, and flashlights to expand in the U.S., Europe, Australia, and New Zealand. (646-830-3220; elizabeth.scott@lhp.ca)

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GENERAL MANAGER – RETAIL BUILDING SUPPLIES

Are you a store manager in a big box retailer? Maybe it is time to move away from the corporate life in a big city? A challenging career at the top of a family environment, may offer the quality of life for your next career move. Stan Dawe Limited, an 80-year-old, five location retail building supply business in western Newfoundland is seeking a General Manager.

The General Manager is the most senior position in our company reporting only to the shareholders. This position is reported to by five store managers, one purchasing manager and the accountant/office manager. Regular briefings with the two key shareholders, provide a history of past performance and establish objectives for the future. The General Manager is responsible to develop and implement a plan to meet these strategic goals.

Daily duties include discussions and problem solving with store managers, cash management, purchasing of commodity inventory, working with the purchasing manager on regular and promotional pricing, coordinating distribution to the branch stores with pickup of incoming freight, assisting with pricing of larger customer quotations, maintaining relationships with key customers, reviewing accounts receivable, approving payables invoices, coordinating with store managers for staff levels and wages. This position also establishes standards for exceptional customer service and employee safety.

General responsibilities include seeking new opportunities for growth in sales and/or profits with new products and/or markets, investigating cost reduction strategies and improving the company’s internet prospects.

The General Manager must have a post-secondary business education, a minimum 10 years’ management experience in retail operations in a related field, excellent time management skills, confident decision making ability and effective communication skills for dealing with staff and customer conflict resolution.

To send your resume or request more information, contact:
Tony Dawe
Stan Dawe Limited
191 Riverside Drive
Corner Brook, NL A2H 4A1
tony@standaweltd.com

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February 6, 2017 Volume

xxiii, #6

“A day without sunshine is like, you know, night.”
—Steve Martin (American comedian, actor, musician, and author, 1945- )

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Home Improvement eRetailer Summit offers buyer meetings and speaker program

TRUMBULL, Conn. — Fueled by a need for the hardware, housewares, and home improvement sector to develop winning e-commerce strategies, the Second Annual Home Improvement eRetailer Summit will be held September 13 to 15, 2017, at the Rosen Shingle Creek in Orlando, Fla.

With a new date and new location, the Summit will provide a dynamic forum for suppliers to get face to face with North America’s leading eRetail buyers and executives. The purpose is simple: to help the hardware and tools, home decor, paint, housewares, lawn and garden, outdoor living, and flooring sectors develop winning e-commerce strategies through mutual co-operation and strategizing.

This invitation-only event was a ground-breaking forum in 2016 for cutting-edge eRetailers to meet, share ideas, and connect with forward-thinking suppliers eager to increase their online business in a series of exclusive one-on-one meetings.

“The eRetailer Summit gave me the opportunity to gather with specific individuals in the same space to discuss ideas, partnerships, and struggles in the hardware and building supply industry,” said Philip Brown, co-founder of SupplyHog.com.

Both the contacts and the content portions of the Summit proved valuable, as underscored by Jeff Golden, director of The Home Store for TheShops.tv: “Very much enjoyed meeting vendors and very much enjoyed meeting other eRetailers. I loved the speakers.”

The education portion of the Summit is being expanded even further this year, with education and sharing of best practices from online retail leaders. The presenters for this year’s Summit are already being confirmed, and include: Al Meyers, of the world-renowned retail consultancy Kalypso; Elizabeth Ragone, director, digital commerce, for HSN.com; and Steve Greenspon, CEO of Honey-Can-Do International.

“The 2016 eRetailer summit was a great experience for Midwest Fastener, especially in terms of education and networking. In 2017, Midwest is excited to participate once again with a continued objective of increasing our knowledge of the online hardware marketplace,” added Jason DeVries, director of marketing at Midwest Fastener.

“The Home Improvement eRetailer Summit has built its success on an intimate model with limited participants who all get the chance to network and interact,” said Sonya Ruff Jarvis, managing member, Jarvis Consultants and the event’s founder. “A combination of great content and solid business-building interactions makes this event a success.”

(For more information about the Home Improvement eRetailer Summit, contact Beverly Allen: 647-880-4589; or bev@eretailersummit.com.)

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How Home Depot analyzes and uses customer data

NEW YORK — The Home Depot collects data from digital resources such as its website, promotional emails, and social media, and uses that information to drive traffic to stores and better target its advertising and marketing efforts. A Home Depot executive discussed those methods recently at the National Retail Federation’s annual convention in New York.

With a presentation entitled “Data: The New Currency for Retail Marketers,” David Abbott, Home Depot’s vice president of integrated media and online marketing, talked about how retailers are changing the way they spend their advertising and marketing funds and how they use data to find creative new ways to reach customers.

To keep growing sales at bricks-and-mortar locations, Home Depot uses a variety of platforms to drive store traffic. The big box chain still makes 94 to 95% of its sales in the physical stores, but the various platforms it uses keep those sales growing, Abbott says.
“As much as our e-commerce business is growing, it’s there to help customers interact with the stores,” he notes. “We work hard to stitch together the interactions of the various devices as they relate to the store.”

Customer personalization can help boost sales to DIYers and, even more importantly, to pros, Abbott adds. Contractors and trades are in a store multiple times a week, so creating personal relationships is key.

“In the store operation, we have individuals who manage our pro accounts. If we have a contractor that spends $1 million a year, they have someone they can call. What we want to do is provide our associates enough information about the pro customer to be able to give a well-rounded look at what that customer’s needs are. That’s one of the things we’ll be focusing on in 2017—figuring out what information we can provide to the stores to provide more relevant information to the customers.”

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Lepage trailer hits the road

CALGARY — It may have been at the back of the hall, but a bright red trailer sponsored by Lepage drew lots of attention at the recent Buying Show of the Western Retail Lumber Association.
                 
The trailer was showcasing a couple of new products for Lepage, its Quad line of sealants, including Quad Max window, door, and siding sealant, which can be applied in wet conditions and is freeze-thaw stable; and Quad Foam, a polyurethane foam for sealing gaps and cracks.

The trailer’s stop in Calgary was part of a cross-country tour to a number of cities and customer events. Right after the show it was heading to Ottawa for a contractor appreciation show hosted by Home Hardware dealers in the region and in mid-February it will be at the TIMBER MART show in Toronto. In mid-March it will be back out West at Slegg Lumber on Vancouver Island and then in St. Jacobs, Ont., for the Home Hardware Spring Market a week later.

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Tembec open to export quotas under softwood lumber agreement

MONTREAL — Tembec CEO James Lopez has signalled that his company could be open to quotas on lumber exports to the U.S., the Canadian Press reports. In a departure from the stance of many competitors, Lopez suggested that, although no restrictions should be necessary, the company “could live with a quota system” as an alternative to duties, in order to reach a compromise with the U.S. Lumber Coalition.

U.S. challenges to the softwood lumber deal under NAFTA are expected as protectionist sentiments grow under the new government of U.S. President Donald Trump.

Lopez believes the Coalition would prefer a negotiated solution, but acknowledged that “if the U.S. is overly ambitious on the reduction in the Canadian market share… it would be better to litigate than negotiate.” The Quebec government is opposed to any duties or quotas, while the B.C. Lumber Trade Council is opposed to a hard quota but is open to discussing a system that is flexible to market conditions.

Tembec posted a Q1 loss of $0.09 per share but saw sales rise to $370 million, from $354 million a year earlier.

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At Lowe’s Canada, Tristan Flanagan is now merchandise manager, storage and household products for RONA’s proximity stores. He was previously assistant merchandiser for tools and automotive for the proximity stores.

On January 26, Jim Thompson closed his career at Wal-Mart. He spent more than 40 years with the company. Most recently he was COO of Wal-Mart China, but his CV includes roles at Walmart Canada as COO, EVP real estate, and head merchant.

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CLASSIFIED ADS

GENERAL MANAGER – RETAIL BUILDING SUPPLIES

Are you a store manager in a big box retailer? Maybe it is time to move away from the corporate life in a big city? A challenging career at the top of a family environment, may offer the quality of life for your next career move. Stan Dawe Limited, an 80-year-old, five location retail building supply business in western Newfoundland is seeking a General Manager.

The General Manager is the most senior position in our company reporting only to the shareholders. This position is reported to by five store managers, one purchasing manager and the accountant/office manager. Regular briefings with the two key shareholders, provide a history of past performance and establish objectives for the future. The General Manager is responsible to develop and implement a plan to meet these strategic goals.

Daily duties include discussions and problem solving with store managers, cash management, purchasing of commodity inventory, working with the purchasing manager on regular and promotional pricing, coordinating distribution to the branch stores with pickup of incoming freight, assisting with pricing of larger customer quotations, maintaining relationships with key customers, reviewing accounts receivable, approving payables invoices, coordinating with store managers for staff levels and wages. This position also establishes standards for exceptional customer service and employee safety.

General responsibilities include seeking new opportunities for growth in sales and/or profits with new products and/or markets, investigating cost reduction strategies and improving the company’s internet prospects.

The General Manager must have a post-secondary business education, a minimum 10 years’ management experience in retail operations in a related field, excellent time management skills, confident decision making ability and effective communication skills for dealing with staff and customer conflict resolution.

To send your resume or request more information, contact:
Tony Dawe
Stan Dawe Limited
191 Riverside Drive
Corner Brook, NL A2H 4A1
tony@standaweltd.com

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January 23, 2017 Volume

xxiii, #4

“That which has been believed by everyone, always and everywhere, has every chance of being false.”
—Paul Valéry (French poet, essayist, and philosopher, 1871-1945)

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Lowe’s introduces 2% deduction off invoices, causing concern among vendors

BOUCHERVILLE, Que. — Lowe’s Canada is looking for ways to save money and invest in the consolidation of its business following the acquisition of RONA last year. But its latest move has sent a chill through the vendor community.

A letter has been sent out to vendors, dated January 13, 2017, addressing the company’s efforts to combine the Lowe’s and RONA businesses, and to enhance its stores to drive sales. It then goes on to ask the vendors themselves to support the costs attached to growing the Canadian business by accepting a 2% discount on all invoices. The discount will be applied to all agreements with both Lowe’s and RONA stores in Canada. Called a “business development rebate,” the new terms will be effective retroactively from January 1.

The letter is signed by Alain Brisebois, EVP operations and central services, and Igor Halencak, VP national procurement and global sourcing. It includes a consent form and a deadline of February 3.

While an exceptional move for this industry, the practice has been used in the grocery sector. And it’s having a wider impact through the industry: other retail groups have noticed this practice and are beginning to question their suppliers on the availability of similar concessions for themselves, putting even further pressure on vendors. (After it took over Safeway in 2013, Sobeys imposed a 1% retroactive “synergy” on its vendors. Competitors lost no time making similar demands.)

In conversation with HARDLINES, Brisebois said he wants to emphasize a partnership approach and believes that vendors will come on board with the strategy when they meet face-to-face with his team to understand the upsides.

“It will bring growth and require partnership with the vendors,” Brisebois notes. He adds that Lowe’s will be “a good investment” for this industry, and the support of the vendors in addition to Lowe’s own investments will translate into growth for both parties. “These top-line initiatives include store upgrades and conversions, better merchandising, and investment in our staff training for the Canadian market.”

A spokesperson for Lowe’s Canada clarified further with this statement emphasizing that the funds will not go to Lowe’s bottom line, but aim to boost top-line sales and benefit both the retailer and its vendors. “Lowe’s Canada intends to make important investments over the next few years, such as an improved IT infrastructure, enhanced omni-channel capabilities, store conversions, store renovations, and most of all investment in our people … We are looking to our business partners to help support this above-stated transformation and participate with us as we grow and transform the Canadian home improvement landscape.”

As for the impact on vendors that resist the price cut, “We will review the accounts accordingly based on the vendors’ decision,” says the statement.

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Amidst takeover by Peavey, TSC’s focus remains on execution

LONDON, Ont. — Darryl Jenkins is pretty excited about his business. He’s the head of TSC Stores, a chain of 51 farm and hardware outlets stretched out across Ontario, and into Manitoba, which focus on rural, pet, and agrarian markets. In July 2016, Peavey Industries, which owns 36 Peavey Mart stores in Western Canada, announced it had taken a stake in TSC. The investment in TSC includes a transition period that will allow Peavey to acquire complete ownership in TSC over the next couple of years.

After some initial distractions, typical of any takeover, Jenkins is now happy to be able to get back to what he says is the main business: taking care of TSC’s core customers.

On a tour of its flagship store, a few minutes from TSC’s head office in London’s east end, he walks proudly through the aisles, showing off the company’s retail strengths. Right at the front of the store, just to the right of the checkouts, is a workwear section—a very large workwear section given the overall size of the store. “We want to own the workwear business,” Jenkins says, pointing out the array of brands that get strong billing here. They include Carhartt, Dickies, Kodiak, and TSC’s private brand name, Ox Gear. He notes that other companies have pulled back from this category, opening up an opportunity for TSC. In fact, the company has just added a more popular—and less-farm oriented—line, Levi’s.

The workwear ties in well with another strength, hunting and fishing.

Meanwhile, TSC has revamped other areas, including a discount section at the front of the store on the left side of the checkouts. Considered a poor use of prime retail real estate, the area was changed to seasonal, with large outdoor power equipment now featured there, including snow blowers for winter time.

Another strong category for TSC is pet food and pet supplies. Jenkins says the company’s biggest supplier is pet food maker Purina. Pet sales, especially food and care products, are repeat sales that bring customers back every month, he says.

The changes to the floor plan and merchandising have been under way for well over a year, as the company cleaned up its stores and began aligning its practices to prepare for the takeover by Peavey.

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Ace Canada eliminates spring show, offers online alternatives

WINNIPEG — Ace Canada has cancelled its Spring Buying Show in Winnipeg this year. Instead, the hardware wholesaler, which is a division of Lowe’s Canada, will offer dealers the opportunity to make their bookings online, including special promotions, pallet offers, vendor specials, and extended dating for their fall and winter seasonal needs.

The show was originally scheduled for April 22 to 24 at the Winnipeg RBC Convention Centre.

The move is aimed at saving time and travel costs for its independent customers. It also reflects some of the changes moving through all aspects of Lowe’s Canadian business since it took over RONA last year. Ace Canada was part of the RONA deal, and the Winnipeg warehouse supplies independents across the country, though most heavily focused on Western Canada. Formerly TruServ Canada, the business has hosted a fall and spring market for those dealers, who operate mainly under the Ace and V&S banners, as well as a growing number of RONA dealers, for many years.

“Dealers have told us that they would save money by booking their products online. Vendors have expressed interest in attending only one show per year,” said Bill Morrison, divisional vice president of Ace Canada. The online option has been available to them in the past, in addition to the physical shows.

The dates for the Fall National Buying Market are September 30 to October 2 at the Winnipeg RBC Convention Centre.

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Agencies of today: the front lines in the battle for shelf space

SPECIAL REPORT — In the halcyon days of big box retail, agencies did millions of dollars of business each year simply servicing the Home Depots, Lowe’s, RONAs, and Canadian Tires. But when those companies decided one after another to move that role in-house, a number of Canadian agencies went under. And the ones that were left had to work hard to prove their worth.

Agents, and the manufacturers that employ them, say the most important factor in proving their worth is providing an added value. Whether through hosting hands-on product knowledge events and “lunch-and-learns,” or advocating for the brand in-store, there’s much more to the job than merchandising.

Paul Crawford, president of King Marketing, says there are a number of reasons why manufacturers seek out agents: economics, geography, customer intimacy, and the need for “feet on the street.” With a new product, or prospective new retailers, some manufacturers might not have the money, relationships, or employees to cover Canada’s spread-out hardware stores.

But for consumers to be able to understand the products, retail associates have to be able to explain them. And that takes product knowledge. Krista Hamilton, from McDonald Sales, says there’s a direct correlation between knowledge and higher sales. “Product knowledge is critical at the store level,” says Hamilton. “You can sell a product to the warehouse, but if you don’t have anyone actually at the ground level, pushing it through at the store level, the sales will remain very low.”

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

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Goodfellow Inc., the lumber and hardwood flooring distributor, has named Patrick Goodfellow to the position of president and CEO. He spent the last 10 years at the company in the role of vice-president, hardwood. Goodfellow replaces Denis Fraser, who is stepping down, effective immediately. Fraser had held the CEO position for two years after taking over from Michael Goodfellow.

Former Canadian Tire CEO and President Michael Medline has been named to the same position at Empire Co., which owns the Sobeys grocery chain. Medline, who left Canadian Tire suddenly in July, will take up his new position immediately, working during the transition with François Vimard, who has been named executive vice-president.

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CLASSIFIED ADS

GENERAL MANAGER – RETAIL BUILDING SUPPLIES

Are you a store manager in a big box retailer? Maybe it is time to move away from the corporate life in a big city? A challenging career at the top of a family environment, may offer the quality of life for your next career move. Stan Dawe Limited, an 80-year-old, five location retail building supply business in western Newfoundland is seeking a General Manager.

The General Manager is the most senior position in our company reporting only to the shareholders. This position is reported to by five store managers, one purchasing manager and the accountant/office manager. Regular briefings with the two key shareholders, provide a history of past performance and establish objectives for the future. The General Manager is responsible to develop and implement a plan to meet these strategic goals.

Daily duties include discussions and problem solving with store managers, cash management, purchasing of commodity inventory, working with the purchasing manager on regular and promotional pricing, coordinating distribution to the branch stores with pickup of incoming freight, assisting with pricing of larger customer quotations, maintaining relationships with key customers, reviewing accounts receivable, approving payables invoices, coordinating with store managers for staff levels and wages. This position also establishes standards for exceptional customer service and employee safety.

General responsibilities include seeking new opportunities for growth in sales and/or profits with new products and/or markets, investigating cost reduction strategies and improving the company’s internet prospects.

The General Manager must have a post-secondary business education, a minimum 10 years’ management experience in retail operations in a related field, excellent time management skills, confident decision making ability and effective communication skills for dealing with staff and customer conflict resolution.

To send your resume or request more information, contact:
Tony Dawe
Stan Dawe Limited
191 Riverside Drive
Corner Brook, NL A2H 4A1
tony@standaweltd.com

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January 16, 2017 Volume

xxiii, #3

“Our heads are round so our thoughts can change direction.”
—Francis Picabia (French painter, designer, and writer, 1879-1953)

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Castle adds dealers throughout holiday season

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MISSISSAUGA, Ont. — Castle Building Centres Group continues to grow its ranks, as its mandate to leave member-dealers to operate under their own banners in their own markets resonates for independents.

The latest store to join is also a new member for Quebec. Quincaillerie Touraine is a family-owned operation with two stores in the Ottawa region. The first was established in Gatineau 45 years ago; the second store, in Cantley, was installed in 2005.

Both stores, which sell a full complement of LBM and hardware, will hold grand re-opening celebrations this spring.

This latest recruitment follows the signing of two other dealers late last year. Parliament Building Supplies, a fixture in downtown Toronto’s Portlands area for more than a century, switched to Castle under a new owner, Fastway Group. Fastway is a division of Mill Street and Co., an investment group that purchased Thorold Lumber in December. Thorold Lumber was already a Castle member.

In the Maritimes, E & J Millworks in Yarmouth, N.S., which specializes in custom millwork design, also signed with Castle. That business has been a part of its community for 40 years.

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Commercial market can be competitive—but profitable—for traditional dealers

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SPECIAL REPORT — Home improvement dealers have been increasingly eyeing commercial projects as demand for rental apartments and offices booms. “I know a lot of my competitors pooh-pooh this side of the business and say it’s too difficult,” says Andrew Payzant, owner of Payzant Home Hardware Building Centre in Halifax. “But the housing market has changed, and if you don’t sell into multi-family, you’re walking away from a lot of business.”

But commercial sales aren’t for everyone. “It’s definitely a different business,” observes Joe George, owner and general manager of Patene Building Supplies, which has 15 locations in Ontario and Manitoba.

It’s axiomatic that succeeding at commercial sales requires a certain volume level to compensate for lower margins. Fraser’s Pro Home Centre is a TIMBERT MART dealer with five locations in Nova Scotia’s Annapolis Valley. Its rural markets total only around 90,000 residents, so opportunities to supply commercial projects are limited, says GM Paul Parsons.

And competition for commercial jobs can be stiff. “Everybody thinks they can do this, but you have to sell a lot of apples to make money,” says Paul Singer, who owns Morinville Castle Building Centre in Morinville, Alta.

Singer, and a number of other dealers HARDLINES spoke with, offered advice that other dealers interested in this arena might heed. If dealers are up for building the relationships, investing in the right storage and stock, and taking a risk on credit to cater to commercial contractors, the return on this “different business” can be quite profitable.

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

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Cologne International Hardware Fair 2018 to extend hours, reach in 2018

COLOGNE, Germany — In 2018, Eisenwarenmesse–the International Hardware Fair will be held in Cologne from March 4 to 7, returning to a four-day format.

The show, which is run every two years, attracted some 44,000 trade visitors to Cologne in 2016. That year, the show shrank to three days. However, the reduced schedule led to an increased concentration of the business activities of the trade fair participants, encouraging organizers to return to four days.

“The very good result of the 2016 event is the reason for us changing the duration of the trade fair again,” said Katharina C. Hamma, COO of Koelnmesse GmbH, which owns the International Hardware Fair. “The high level of the flow of visitors is a positive sign for us, because it proves that Eisenwarenmesse-International Hardware Fair is considered to be a must-attend event.”

The last edition of the show managed to draw delegates from 124 countries, who came to see 2,670 exhibitors spread over almost 1.5 million square feet of exhibition space. The show grounds sit alongside the Rhine, and across the river from the historic city of Cologne.

(Editor’s Note: We consider this show to be one of the most important in the world, and one at which Canada is severely under-represented. In addition, Hardlines hosts its Canada Night International Reception there. This incredible networking event brings together Canadians with buyers and vendors from around the world over a glass of German beer. We strongly encourage more Canadian buyers and vendors to attend this truly international show in 2018. Click here now for more information and to register.)

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Marketing yourself to the Millennial shopper

SPECIAL REPORT — The Millennial demographic currently ranges in age from their late teens to late 30s. As they now find themselves in different stages of life—some are students, new parents, or homeowners, while others may be some combination of the three—their needs from home improvement retailers or brands vary widely.

A survey by the Student Life Network & Parent Life Network in partnership with HARDLINES uncovered some common findings that indicate trends to watch from Canada’s Millennial shoppers. Delegates got a sneak peak of these statistics at the 21st Annual Hardlines Conference held in Niagara Falls, Ont., last fall.

This generation stands to make a significant mark on the home improvement market this year. More than six million Canadian Millennials plan to spend $20 billion on home improvements in 2017. The top five areas in which they plan to undertake home improvement projects over the coming year are:

1. Outdoors (51%)
2. Bedroom (49%)
3. Bathroom (41%)
4. Living room (39%)
5. Kitchen (37%)

So how can your store cater to these shoppers? The results suggest a few opportunities to win over their business:

1. Gain their respect. Show them you know how to do their home improvement project, but that you respect their choice to try to do it themselves.
2. Share with them. Connect with them regularly to ensure you’re always top of mind when they’re ready for their next DIY project.
3. Encourage their purchase. Provide them with special opportunities to buy what they want most at a price they can’t find anywhere else.

(Homeowners Canada was commissioned by HARDLINES to conduct a research study of Millennials to uncover their home improvement shopping habits and preferences. Homeowners Canada conducted an online survey in the fall of 2016 with more than 3,000 Canadian Millennials aged 20 to 35. For more information on the survey and its results, contact Sean Copeland at sean@squarecrop.com.)

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Frédéric Guay has been named executive vice president at RCR International inc. He joined the company in 2015 as senior vice president of sales. (f.guay@rcrint.com; 450-670-8100)

Brad West has joined Calgary-based Westech Building Products, a division of the Westlake Chemical Corporation, as general manager. He will be based in Ontario. Westech is a manufacturer of PVC extruded profiles for the window and door industry and for the building materials industry. West was previously eastern corporate sales manager at Jeld-Wen. (bwest@westlake.com; 905-376-3630)

Enerkem, which produces waste-to-biofuel and renewable chemicals, has chosen Dominique Boies as executive VP and CFO, the same positions he previously held at RONA. Prior to his time at RONA, Boies held senior executive positions at RBC Royal Bank and at the Caisse de dépôt et placement du Québec. He will be based at the firm’s Montreal headquarters.

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CLASSIFIED ADS

GENERAL MANAGER – RETAIL BUILDING SUPPLIES

Are you a store manager in a big box retailer? Maybe it is time to move away from the corporate life in a big city? A challenging career at the top of a family environment, may offer the quality of life for your next career move. Stan Dawe Limited, an 80-year-old, five location retail building supply business in western Newfoundland is seeking a General Manager.

The General Manager is the most senior position in our company reporting only to the shareholders. This position is reported to by five store managers, one purchasing manager and the accountant/office manager. Regular briefings with the two key shareholders, provide a history of past performance and establish objectives for the future. The General Manager is responsible to develop and implement a plan to meet these strategic goals.

Daily duties include discussions and problem solving with store managers, cash management, purchasing of commodity inventory, working with the purchasing manager on regular and promotional pricing, coordinating distribution to the branch stores with pickup of incoming freight, assisting with pricing of larger customer quotations, maintaining relationships with key customers, reviewing accounts receivable, approving payables invoices, coordinating with store managers for staff levels and wages. This position also establishes standards for exceptional customer service and employee safety.

General responsibilities include seeking new opportunities for growth in sales and/or profits with new products and/or markets, investigating cost reduction strategies and improving the company’s internet prospects.

The General Manager must have a post-secondary business education, a minimum 10 years’ management experience in retail operations in a related field, excellent time management skills, confident decision making ability and effective communication skills for dealing with staff and customer conflict resolution.

To send your resume or request more information, contact:
Tony Dawe
Stan Dawe Limited
191 Riverside Drive
Corner Brook, NL A2H 4A1
tony@standaweltd.com

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Good news from Storesupport Canada! We’re hiring! We’re looking for a driven sales professional to fill an open Business Development Manager – Hardware position at our office in Mississauga. If you’re a self-starter who is passionate about sales we’d love to hear from you. Please visit http://storesupport.ca/jobs-view/business-development-manager-hardware/ to see the full job posting.”

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January 9, 2017 Volume

xxiii, #2

“Always read something that will make you look good if you die in the middle of it.”
— P. J. O’Rourke (American journalist and political satirist, 1947- )

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Our top stories of 2016: the news that most attracted our readers’ attention

SPECIAL REPORT — The year was filled with milestones. Mergers, buyouts, and personal loss abounded as some high-profile companies and people made the news in 2016. Here are the stories that attracted our readers’ attention—and online visits to the Hardlines website. Some of them will surprise you!

Lowe’s completes acquisition of RONA preferred shares: All things Lowe’s related were guaranteed to drive traffic to our website, including this confirmation of final steps in Lowe’s takeover of RONA. Another big hit among readers were the updates on the reorganization of the executive team.

CEO replaced at Canadian Tire: The sudden departure of Canadian Tire chief executive Michael Medline in mid-July took everyone by surprise.

Groupe BMR joins ILDC: Early in July, this was big news, as the second-largest group in Quebec joined one of the largest buying groups in the country.

Industry honours Outstanding Retailers: honouring our own made for good reading, as winners were announced at the 21st annual Hardlines Conference in Niagara Falls at the end of October.

Media shakeups: both Lowe’s in the U.S. and Home Hardware in Canada announced they were shopping for new agencies of record. In both cases it means big business for some lucky “mad men” and in Home’s case, it meant the end of a 25-year run with one ad agency.

Gypsum tariff dispute: We began covering this story in the late summer when the mainstream press wasn’t even aware of the issue. It was to have a huge impact on dealers’ margins in Western Canada.

Lowe’s aligns offices in GTA, Boucherville: Trying to figure out the roles at the newly restructured Lowe’s Canada after head office moved to Boucherville kept us on our toes. The Toronto office remained the seat of operations for the Lowe’s bannered business.

Dealer stories: While the corporate news is high profile, the stories of local dealers expanding or selling always draws lots of traffic. Two examples were the change of ownership of McNaughton’s Home Hardware in Newbury, Ont., after 70 years; and the opening of Fisher River Castle store on a Cree reserve in Manitoba.

BMR updates banners: Groupe BMR unveiled a new banner strategy for its member dealers. Starting in 2017, BMR stores will gradually be segmented into four banners.

Kent buys up Central Home Improvements: Central’s seven Nova Scotia stores were added to Kent’s existing network of 43 stores throughout Atlantic Canada at the beginning of this year. A year ago, Central’s Steve Smith went on record denying any notion that his company was being sold, but others considered it the worst-kept secret in Atlantic Canada.

Castle buying expo has a winning formula: We had an invitation to see first-hand what all the excitement was about concerning Castle’s regional buying shows. These “speed-dating” events put vendors face to face with every single dealer in attendance—a winning formula for both sides.

Orgill consolidates buying functions: The Memphis-based hardlines distributor announced the consolidation of all purchasing functions to its Memphis home office. The move closed down the buying office at Orgill’s Canadian operation in London, Ont.

Readers’ interest in personnel changes reflects the importance of the personal side of the business: Formerly the number two at Home Depot Canada, Gino DiGioacchino had moved to bigger and better things at Walmart. When he left Walmart in early June, the news drew lots of eyeballs. His move came only days after RONA EVP Luc Rodier told HARDLINES he was leaving, and a month after Robert Dutton, former president and CEO of RONA inc., joined the board of La Coop fédérée.

Lowe’s buys RONA: That was our single biggest headline of 2016. The news went live on February 3 at 7:18 p.m., and had attracted thousands of readers within hours.

Home Hardware co-founder Walter Hachborn dead at 95: This story touched hearts across Canada—and well beyond—as we got comments and emails from round the world about the loss of this industry giant, who passed away just before Christmas.

(HARDLINES readers get breaking news as it happens. But are you subscribed to our free Daily News Service? Yes, it’s free! Click here right now to sign up!)                  

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CITT upholds gypsum tariff, stands by dumping ruling

OTTAWA — Canada’s international trade regulator has upheld complaints made by domestic drywall manufacturers about the dumping of U.S. gypsum in the Western provinces.

The Canadian International Trade Tribunal found the dumping injurious to the domestic industry and recommended imposing final duties, putting an end to the provisional duties which have been collected to date.

In an olive branch to the community of Fort McMurray, where fears have been voiced that the finding could lead to higher construction costs, the tribunal suggested that the government could grant a special remission to alleviate the effect of the tariffs on rebuilding efforts in the wildfire-affected area.

The finding by the CITT is reportedly a recommendation only. The Tribunal will issue the reasons for its findings and recommendations on January 19, 2017. A final ruling is expected to be made by Finance Minister Bill Morneau.

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Stanley Black & Decker to buy Craftsman brand from Sears

NEW BRITAIN, Conn. & HOFFMAN ESTATES, Ill. ― Stanley Black & Decker has announced it will purchase the Craftsman brand from Sears Holdings. The company will acquire the rights to develop, manufacture, and sell Craftsman-branded products outside of Sears stores in the U.S. and in other countries.

Sears Holdings will continue to sell Craftsman products, sourced from existing suppliers, through its current retail channels via a perpetual license from Stanley Black & Decker. For the first 15 years, the license will be royalty free, then 3% thereafter.

Under the terms of the acquisition, Stanley Black & Decker will pay Sears Holdings $525 million at closing and $250 million at the end of year three. Annual payments will then be made on new Stanley Black & Decker Craftsman sales through year 15 (2.5% through 2020, 3% through January 2023, and 3.5% thereafter). The net present value of all these cash payments is about $900 million. 

Currently, about 10% of Craftsman-branded products are sold outside of Sears Holdings―much of that through Ace Hardware in the U.S. Those sales were valued at about $200 million in 2016. Stanley Black & Decker intends to significantly increase sales of Craftsman through retail, industrial, and online channels.

The news comes on the heels of further closures of Sears stores across the U.S. and another cash infusion by Sears CEO Eddie Lampert (see Supplier News in this issue. ―Editor). Sears has reduced its store count by 60% over the past six years.

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Canadian retail looking up in 2017: Desjardins

TORONTO — Canadian retail is looking at a strong year, according to a new forecast from Desjardins Securities. Growth in the GDP and employment will be a boon to retailers, and incursions from American competitors are less likely.

“The spectacular failure of Target in Canada and the collapse of oil prices are, in our view, the two primary reasons for this change in perception about Canadian retailing,” says the report by Desjardins’ Keith Howlett. “A few new retailers continue to enter Canada, such as Nordstrom, Saks, and Uniqlo, but generally in a tightly controlled and measured manner.”

At the same time, Sears’ continuing weakness will benefit an array of retailers, including Home Depot, Lowe’s, Canadian Tire, Sleep Country, Ikea, Leon’s, Brault Martineau, and Home Hardware for appliances. Likewise, the report says, its clothing business will likely be eaten into by Winners, Reitmans, Mark’s, Hudson’s Bay, Shoppers Drug Mart, Sephora, Walmart, and Real Canadian Superstore.

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