March 21, 2016 Volume

xxii, #12

“It is only in adventure that some people succeed in knowing themselves—in finding themselves.”
—André Gide (French author and winner of the Nobel Prize in Literature, 1869-1951)

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Canac continues expansion with push into Montreal area

L’ANCIENNE-LORETTE, Que. — Canac, the Quebec City-based independent hardware chain, is pouring $100 million over the next five years into expansion in the suburbs of Montreal. It’s even hired a public relations firm, Turbulences, to boost the launch of its first Montreal-area store, opening later this year in Beauharnois, Que.

In December, the company made a bid for a 540,000-square-foot lot in Sorel-Tracy, with a view to installing a store there by the end of this year. Construction on the store in Beauharnois, which is about half an hour from the Ontario border, is slated to wrap this summer. It is the 24th location for the chain known until 2010 as Canac-Marquis Grenier.

Last summer, Canac broke ground on its third distribution centre at a 350,000-square-foot site in Drummondville, near Sherbrooke, to relieve pressure on its overburdened existing facilities in L’Ancienne-Lorette and Saint-Augustine-de-Desmaures.

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Lowe’s will maintain vendor relationships with RONA acquisition

TORONTO — While there’s been much talk about the future of RONA and Ace dealers once Lowe’s takeover of RONA is approved by shareholders and the Canadian Competition Bureau, vendors to both companies have concerns of their own.

But ownership of RONA by Lowe’s will not mean a betrayal of the Canadian vendor community, says Lowe’s Canada President Sylvain Prud’homme. He talked with HARDLINES recently about the commitment he and his company have to maintain existing relationships with both RONA and Lowe’s vendors.

Lowe’s will keep its office in Toronto, but on a smaller scale. Most of the Lowe’s team, including its buyers, are being asked to relocate to RONA’s head offices and distribution centre in Boucherville, Que. Depending on completion of the acquisition, that move could begin as early as July, say some insiders.

But would RONA, which will continue to supply a network of independent dealers, have its own buying team? “It’s too early to say,” Prud’homme admits, noting that details of the integration still have to be worked out. He does look forward to tapping the knowledge and contacts of the RONA buyers. “We’ll have access to the team in Boucherville’s expertise.”

Prud’homme also insists that the Lowe’s Canada buyers are masters of their own domain. “All our decision-making by our merchants is being [made] in Canada. That’s the model we’re taking going forward.”

With the recent addition of Alan Blundell in a newly created role as divisional vice president, merchandising (see our January 18 edition—your helpful Editor), Lowe’s Canada is reviewing its category management and line review processes. Blundell will focus on the vendor community in Canada, working to improve internal practices.

The multiple store formats that Lowe’s will own with the RONA acquisition will provide a growth platform, not just for the retailers, but for vendors, says Prud’homme. He is comfortable with the vendor relationships that currently exist and expects those relationships will continue, both through its bricks-and-mortar locations and online.

(Senior buyers from Lowe’s and RONA will present at our Meet the Buyers Breakfast, April 28 from 8 a.m. to 11 a.m. It’s at the Hilton Mississauga Meadowvale Hotel, 6750 Mississauga Road, L5N 2L3. No surprise: this one is filling up fast, so click here now to reserve your spot!)

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Coast Distributors celebrates 30 years with new lines, expanded focus

NANAIMO, B.C. — West Coast hardware distributor Coast Distributors has weathered the ups and downs of Canada’s fickle hardware wholesaling sector to celebrate 30 years in business.

Established in 1986, Coast Distributors began in founder Alex Guy’s backyard garage on Vancouver Island. With a vision to become a complete hardware supply source on the West Coast, Guy steadily built the business—and his team. In 1993, Alex’s brother Scott and brother-in-law Ken opened a second location in Kelowna.

Basing its reputation on “good old-fashioned service,” Coast has grown to become one of Western Canada’s largest independent two-step hardware and building supply distributors. Boasting a team of 10 outside sales representatives in British Columbia and Alberta, the company has since grown to three locations with an office in Vancouver, and offers more than 17,000 SKUs and its own fleet of trucks.

In recent months, it has rounded out its offering with the addition of Reliable Fasteners, filling a niche following the withdrawal of Stanley/National from Canada. Coast has also added rods and shapes from Onward, Madico casters, chair tips, glides, and felts.

The company plans to celebrate its anniversary with a number of special promotions throughout 2016.

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Home Depot Canada goes upscale with spring collections

TORONTO ― Home Depot Canada gave the media a sneak preview of its spring outdoor living collections last week, with everything from “English garden” and European-inspired furniture to what the company claims is the largest assortment of Weber barbecues in the country.

Besides the more traditional English styles, furniture design embraced bold “Parisian” styling, with aluminum-framed chairs and tables that look like wood, finished with black and white webbing. And style complemented technology, as Home Depot’s Ego line of outdoor power equipment sported a heavy-duty 18-volt lithium-ion battery, while a portable propane gas oven lets outdoor chefs cook a pizza right in the yard.

Besides product, the event managed to highlight a new Home Depot service: a heavy-duty, four-foot-high nylon bag for soil and stones that can be delivered right to one’s own driveway or front lot.

Furniture, outdoor power equipment, and barbecues were rounded out by decorative accessories, including flameless candles. All the lines are available in stores now.

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TIMBER MART has announced the addition of two industry veterans to its recruitment team in Quebec. Berchmans Vignola and Ronald Dion join TIMBER MART as membership development managers and will be responsible for building the group’s membership in the province. Both have more than 40 years of sales experience in the building materials industry. For more than 15 years they were territory managers for CertainTeed Saint-Gobain in Quebec. The appointments “reflect our group’s commitment to the Quebec independent market and our aim to grow our membership in the province,” said TIMBER MART president Bernie Owens.

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CLASSIFIED ADS

Senior director – Business development

Under the supervision of the CEO, the candidate selected will assume the following responsibilities:

• Creating and contributing to the implementation of strategies to develop the hardware and LBM market (Quebec, Ontario, Maritime Provinces);
• Making sure our dealers receive a high-quality service and maintaining a high level of loyalty;
• Optimizing and developing marketing on the territory (analyzing market studies to optimize store localization, participating to store expansions and acquisitions, etc.);
• Managing and mobilizing a team of advisors, merchandisers and customer service clerks;
• Monitoring and developing the sales of Groupe BMR;
• Contributing to the improvement of the corporate image of Groupe BMR stores;
• Other related duties.

Required skills:

• Client oriented
• Business development
• Strategy development
• Leadership and courage to take action
• Persuasion skills
• Good judgement
• Ability to motivate and mobilize a team
• Ability to monitor performance indicators
• Interpersonal communication skills

Must have:

• Excellent knowledge of the retail market
• Great IT skills: MS Office Suite
• Bilingualism: Mandatory   

Training and experience:

A combination of:
Bachelor’s degree in business administration or the equivalent, and a minimum of 10 years of experience in the retail industry.

Groupe BMR offers a competitive total compensation package

Please email your candidacy at the following address: rh@bmr.co.

Thank you for your interest; however, only selected candidates will be contacted.

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March 14, 2016 Volume

xxii, #11

“The advancement and diffusion of knowledge is the only guardian of true liberty.”
—James Madison (American statesman and fourth president of the United States, 1751-1836)

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Canadians connect with the world at Cologne Hardware Fair

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COLOGNE, Germany ― For many vendors, North America has plenty of trade shows, thank you very much. But for about a dozen Canadian companies that braved the overseas travel―and attached costs―to attend Eisenwarenmesse, the International Hardware Fair, the results have paid off with often surprising effectiveness.

The International Hardware Fair was held last week in this city that flanks the Rhine in Germany’s North Rhine-Westphalia region. It attracted buyers from more than 50 countries, giving Canucks here a bonanza of potential new home improvement customers. Not only that, but Canadian buyers were well-represented here, as well.

Vendors included veterans of the event, such as Pierre Filiatrault of Montreal-based Cobra Anchors. “For us it is a very, very busy show,” he said, noting that the last time he was at the show he managed to secure German DIY retailer Bauhaus as a customer. His company sells wall anchors that are compatible with drywall, a technology that is slowly catching on in Europe. This, he says, puts his company in a good position to offer a solution to European buyers. This year, he’d already seen representatives from Leroy Merlin and Castorama, in addition to buyers from Turkey, China, France, and Eastern Europe. “We sell all over the place,” he added.

Other Canadian companies were also excited about their presence at the Cologne Fair. Representatives from Yardlock, a Mississauga, Ont.-based company with an innovative DIY gate lock, managed to pick up customers from six new countries on the first day alone.

Dave Martin of Home Hardware Stores Ltd. shared that, as the tool buyer, it made sense for him to represent his company at this show. “I’m always surprised at the potential suppliers you meet from countries you wouldn’t expect to see,” he observed, adding that the surprise factor is part of the appeal of the show. “Whether a meeting materializes into a solid connection remains to be seen,” but he added that he’d seen some interesting products, including a range of coloured plastic toolboxes from Poland. Even one good new vendor makes the trip worthwhile, Martin added.

An important aspect of the Hardware Fair for Canadians is the Canada Night International Reception, held at the end of day one of the fair. The event, hosted by HARDLINES and sponsored by the show’s organizers, Koelnmesse, attracted about 75 people. Manufacturers included Task Tools and Swift Greenfilters from Vancouver, Cobra Anchors of Montreal, Ben-Mor from Saint-Hyacinthe, Que., Ingersoll Products from Ingersoll, Ont., and TC Tools out of Edmonton, who all got the chance to drink some German beer and meet buyers from Canadian Tire, Sears Canada, True Value, and Home Hardware.

The evening was rounded out by an enthusiastic HARDLINES-style rendering of “O Canada,” a requisite part of Hardlines Canada Nights everywhere!

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RONA, Lowe’s buyers to outline opportunities at Meet the Buyers

WORLD HQ, TORONTO — At the next Hardlines Meet the Buyer’s Breakfast, April 28 in Toronto, you will hear from senior merchants from two of Canada’s leading home improvement retailers: Lowe’s Canada and RONA inc.

Nick Malone, merchandising director, seasonal for Lowe’s Canada, will present. Malone will be accompanied by Igor Halencak, head of marketing and merchandising, and Neil Calhoun, merchandising director, home décor.

From RONA, we are pleased to announce that Marie-Soleil Tremblay, senior merchandising director, will also present. As senior merchant for RONA, she’ll represent the company’s entire buying team.

These buyers will explain to vendors what it takes to get―and stay―listed in their stores. They will represent their respective merchandising teams to tell vendors first-hand what preparations they need to make and what expectations they should have when they sit down with someone from their buying team.

The 2016 Hardlines Meet the Buyers Breakfast will be held April 28 from 8 a.m. to 11 a.m. at the Four Points by Sheraton Mississauga Meadowvale Hotel, near Toronto Pearson Airport. For more information, click here or contact: kate@hardlines.ca.

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Lowe’s Canada president connects with Ace execs

BUTLER, Ill. & TORONTO — The countless Ace dealers in Canada who may be worried about the future of their banner now that it belongs to Lowe’s Canada got some reassurance last week.

Lowe’s Canada president Sylvain Prud’homme spoke with the president and CEO of Ace Hardware, John Venhuizen, and Jay Heubner, president of Ace International, the division that liaises with Ace Canada. In the call, Prud’homme reiterated his commitment to the Ace brand (see our February 15, 2016 edition. —your ever-helpful Editor), adding that Lowe’s intends to maintain the master license for Ace in Canada and “to support independent hardware retailers.”

The Ace executives were so heartened by the call that, at the urging of Prud’homme, they sent out a letter to all Ace dealers in Canada recapping the highlights of the call.  “Frankly, we were very encouraged after our discussion with Lowe’s Canada,” said the letter, which was signed by Ace’s Heubner, along with Ace Canada President Bill Morrison.

The letter goes on to state Ace’s commitment to keep growing the brand here: “For now, we want to underscore our commitment to advancing the Ace brand in Canada and our support of you. As previously stated, our allegiance and loyalties remain in support of our existing and prospective independent Ace owners.”

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CanWel will acquire forest products producer Jemi Fibre

VANCOUVER ― CanWel Building Materials has reached an agreement to acquire forest products firm Jemi Fibre Corp. The transaction will result in Jemi Fibre becoming a wholly-owned subsidiary of CanWel and will combine Jemi Fibre’s operations with CanWel’s distribution platform.

With the addition of this forestry products company, CanWel will become a vertically integrated enterprise, with access to raw materials, value-added production, and full distribution capabilities to dealers across Canada.

Jemi Fibre has extensive holdings of forests and facilities. It owns about 136,000 acres of private timberlands, strategic crown licenses and tenures, log harvesting and trucking operations, several post and pole peeling facilities, two pressure-treated specialty wood production plants, and one specialty saw mill.

The deal involves CanWel acquiring all of Jemi’s common shares, which will be exchanged for CanWel shares on the basis of 31.13:1 basis. Approximately 2.53 million CanWel shares will be issued to Jemi shareholders.

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Julie Pinard is now vice president of sales at Globe Electric Company. She’s been with the Montreal-based lighting company for more than 10 years, most recently as director of sales.

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CLASSIFIED ADS

Senior director – Business development

Under the supervision of the CEO, the candidate selected will assume the following responsibilities:

• Creating and contributing to the implementation of strategies to develop the hardware and LBM market (Quebec, Ontario, Maritime Provinces);
• Making sure our dealers receive a high-quality service and maintaining a high level of loyalty;
• Optimizing and developing marketing on the territory (analyzing market studies to optimize store localization, participating to store expansions and acquisitions, etc.);
• Managing and mobilizing a team of advisors, merchandisers and customer service clerks;
• Monitoring and developing the sales of Groupe BMR;
• Contributing to the improvement of the corporate image of Groupe BMR stores;
• Other related duties.

Required skills:

• Client oriented
• Business development
• Strategy development
• Leadership and courage to take action
• Persuasion skills
• Good judgement
• Ability to motivate and mobilize a team
• Ability to monitor performance indicators
• Interpersonal communication skills

Must have:

• Excellent knowledge of the retail market
• Great IT skills: MS Office Suite
• Bilingualism: Mandatory

Training and experience:

A combination of:
Bachelor’s degree in business administration or the equivalent, and a minimum of 10 years of experience in the retail industry.

Groupe BMR offers a competitive total compensation package

Please email your candidacy at the following address: rh@bmr.co.

Thank you for your interest; however, only selected candidates will be contacted.

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March 7, 2016 Volume

xxii, #9

“Ill habits gather by unseen degrees, as brooks make rivers, rivers run to seas.”
—Ovid (Roman poet, 43 BC-18 AD)

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La Coop fédérée woos RONA dealers

MONTREAL — La Coop fédérée is positioning itself to pick up RONA’s affiliate dealers if they opt not to follow the banner into business with Lowe’s.

According to CEO Gaétan Desroches, La Coop, which operates Groupe BMR and the Unimat retail chain, is in a “courtship phase” with independent RONA merchants. Interviewed by phone during the company’s AGM, Desroches told La Presse canadienne that RONA’s acquisition by Lowe’s could contribute to the expansion La Coop is seeking in Quebec.

The Retail and Innovation Division went through a year of transition. The purchase of 100% of Groupe BMR during the fiscal year is expected to be positive over the long haul for the organization and its network. However, the company admits that an acquisition of this size “necessarily involves short term adjustments.”

The Retail and Innovation Division, which consists of hardware and building supply outlets, energy, and innovation, enjoyed total sales of $1.41 billion in 2015. That’s up from $981.5 million in 2014, due mainly to the acquisition in January 2015 of all outstanding shares of Groupe BMR. While this increase helped offset a large decrease in oil product prices in La Coop’s Sonic Energy Sector, the co-op retailer still faces a challenging market for renovation and building materials in Quebec.

To overcome those challenges, it has been working to integrate BMR and Unimat through signage conversions, logistical procurement adjustments to serve twice as many stores, integration of the two cultures, and rationalization of selected corporate stores.

Amidst these changes, the desire to pursue more stores in Quebec has increased. While acknowledging that other banners like Home Hardware will also be looking to scoop up affiliates, La Coop’s Desroches hopes to appeal to dealers who want to keep their business in Quebec.

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Atlantic buying show will move to Halifax in 2017

MONCTON, N.B. —After more than 30 years in Moncton, the Atlantic Building Supply Dealers Association announced its annual trade show will be moving to Halifax next year.

Denis Melanson, president of the ABSDA, made the announcement to more than 700 members and sponsors at the annual gala dinner last week. After experiencing a steady decline in attendance over the last few years, Melanson asked everyone—dealers and vendors alike—to commit to bringing the show back to its past glory.

“We can’t sit here and say there’s less and less people here every year and not do anything about it,” he said. He especially called on the vendors to emphasize the buying aspect of the event by offering show-exclusive deals and inviting their customers to attend. Melanson estimated they could see a 25% to 30% increase in attendance if everyone committed to the effort.

On the show floor, vendors were positive about the new location, and were hopeful that it may involve an uptick in attendance next year.

This year’s show also introduced a contractor afternoon on the second day. Wayne Duplantis, Henkel Canada, said he was looking forward to seeing how that would go. “It will be interesting to do some demos and talk to the guys who use the products.”

In typical Canadian fashion, the most talked about topic on the floor was the weather, or lack thereof. Melanson joked that 2016 will be, “the year forever known as the year of no snow.” However, snowstorms in Ontario and Quebec and a number of cancelled flights did delay many vendor representatives travelling east for the show.

Melanson concluded his remarks with a call to arms, encouraging attendees to work on attracting more people, not just to the buying show, but to the industry as a whole. “This industry is changing and evolving and we have to provide more value and more services. And we have to stop talking about jobs, and make people aware of the careers they can have in this industry.”

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Quebec connection helped Lowe’s expand spring product lines

MONTREAL — A meeting held in November 2015, with Lowe’s Canada and a group of Quebec home improvement vendors has turned out to be another part of a larger plan for Lowe’s to acquire Quebec market leader RONA.

The meeting gathered about 80 vendors in an event in Montreal that was organized by the Bureau of Quebec in Toronto. Lowe’s already has 42 stores in Canada, but none in Quebec. The event gave Lowe’s the chance to meet and begin doing business with Quebec companies, some of whose products are appearing in Lowe’s stores this spring.

In anticipation of eventual expansion into Quebec, which since this meeting took place includes the landmark takeover of RONA, suppliers at this event heard from Lowe’s Canada President Sylvain Prud’homme about the company’s growth plans and commitment to omnichannel marketing.

“This was definitely a first step to get more familiar with the Quebec marketplace, both in terms of vendors and market demands,” said Igor Halencak, head of marketing and merchandising at Lowe’s, who also presented at the meeting in November.

He adds that a number of new listings came from the meeting and many of them will be rolled out with Lowe’s Canada’s spring and summer product launches, including “a tremendous seasonal program.” He says the first of them will appear mid-April.

While establishing some good vendor relations in Quebec, the meeting turned out to be a well-timed public relations gesture, as well, helping Lowe’s connect with a vendor base that will become more important than ever, given the acquisition of RONA by Lowe’s, which is expected to be finalized sometime late in the spring or early summer.

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Home Hardware begins offering digital gift cards

ST. JACOBS, Ont. — Home Hardware Stores Limited is now offering gift cards online. The eGift cards can be purchased online at homehardware.ca in both French and English and are redeemable at any Home store location. The option for purchasing physical cards is still available to customers.

Home has partnered with Buyatab, a digital ecard provider, and is claiming that the program, which launched on March 1, is the first of its kind in the Canadian hardware industry.

A purchaser of the eGift card can customize it using an assortment of gift card designs to create a personalized message. The card can be scheduled to send at a desired time and date. Upon receiving the eGift card, the recipient is emailed a card number and activation pin that can be redeemed by displaying the information on their mobile device or presenting a printed copy. The card balance can be tracked online.

“Our partnership with Buyatab to offer digital gift cards is another way that our dealers continue to offer flexible and secure shopping to customers,” says Bruce Hammer, retail payment services manager at Home Hardware Stores.

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At its 94th annual meeting last week, La Coop fédérée appointed a new president, Ghislain Gervais. Gervais is a poultry and crop producer from Saint-Guillaume, Que., who has been on the board since 2011 and since 2014 as first vice-president. He replaces Denis Richard, who occupied the position since 2003.

Lumber Liquidators has appointed Dennis R. Knowles as COO. Knowles will be responsible for the company’s stores and related operations and will report directly to CEO John Presley. The new COO has more than 25 years of experience in store and business operations, most recently as chief store operations officer at Lowe’s.

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CLASSIFIED ADS

Senior director – Business development

Under the supervision of the CEO, the candidate selected will assume the following responsibilities:

• Creating and contributing to the implementation of strategies to develop the hardware and LBM market (Quebec, Ontario, Maritime Provinces);
• Making sure our dealers receive a high-quality service and maintaining a high level of loyalty;
• Optimizing and developing marketing on the territory (analyzing market studies to optimize store localization, participating to store expansions and acquisitions, etc.);
• Managing and mobilizing a team of advisors, merchandisers and customer service clerks;
• Monitoring and developing the sales of Groupe BMR;
• Contributing to the improvement of the corporate image of Groupe BMR stores;
• Other related duties.

Required skills:

• Client oriented
• Business development
• Strategy development
• Leadership and courage to take action
• Persuasion skills
• Good judgement
• Ability to motivate and mobilize a team
• Ability to monitor performance indicators
• Interpersonal communication skills

Must have:

• Excellent knowledge of the retail market
• Great IT skills: MS Office Suite
• Bilingualism: Mandatory   

Training and experience:

A combination of:
Bachelor’s degree in business administration or the equivalent, and a minimum of 10 years of experience in the retail industry.

Groupe BMR offers a competitive total compensation package

Please email your candidacy at the following address: rh@bmr.co.

Thank you for your interest; however, only selected candidates will be contacted.

February 29, 2016 Volume

xxii, #8

“Be yourself. No one can say you’re doing it wrong.”
—Charles M. Schultz(American cartoonist, 1922-2000)

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Canadians gather in unprecedented numbers at Orgill Market

ORLANDO, Fla. — Some 400 retail outlets from Canada were present at the latest Orgill Dealer Market, held at the Orlando Convention Centre this past weekend.

The show has been gaining popularity among Canadian independents in recent years, especially among Castle dealers, thanks to an earlier partnership between Orgill and Castle. But the recent acquisition by Orgill of hardware wholesaler Chalifour Canada effectively doubled that number of attendees.

The show marked that stunning increase by creating a Canadian “show within a show,” putting the Canadian vendors into a special section of the show floor. The move forced a number of exhibitors that had both U.S. and Canadian operations to essentially add an extra booth at an additional cost. However, most vendors admitted the focused venue was a great draw for Canadian dealers, who made a point of heading there early on, resulting in a positive experience of the show for the Canadian vendors.

Another indicator of the overwhelming presence of Canadians was a Canada Night reception held at the end of day one. Hosted by HARDLINES, the event drew more than 400 people to a casual meet-and-greet at the nearby B.B. King Blues Club.

For first-time attendees, the show featured an overwhelming array of products and support services for independents, which more than one dealer referred to as “overwhelming.”

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Attendance up at TIMBER MART’s sixth annual buying show

MONTREAL ― TIMBER MART held its National Buying Show on Friday, February 19, at Montreal‘s Palais des congrès, where the crowd represented a 15% boost from last year’s attendance. All told, more than 1,300 visitors passed through the exhibition, including some 400 dealer participants. The event was preceded the evening before by the group’s National Dealer Meeting, and by a breakfast seminar the morning of the show featuring motivational speaker Martin Latulippe.

Vendors noted that traffic was steady as soon as the floor opened at 9 a.m., in contrast to the usual staggered pacing of buying shows. TIMBER MART’s “Solutions Centre” was front and centre, featuring information hubs for all services and programs the group offers, including lumber and building materials, TIMBER MART Essentials, marketing, merchandising, and banner support.

With Orgill’s acquisition of Chalifour Canada―TIMBER MART’s wholesale distribution arm―Orgill Canada was showcased with a prominent centre zone dedicated to many of its top products, in addition to an information booth with senior officers. David Mobley, senior VP of North American sales, commented that the TIMBER MART buying show is “one of the busiest, and this is one of its busiest years.”

Apart from Orgill, Richelieu was far and away the largest hardware exhibitor, perhaps signalling that the company is ready to take a greater profile on the retail side.

Several of the vendors who spoke to HARDLINES said they also planned to be among the dealers in Orlando the following week for Orgill’s Spring Dealer Market, a testimony to the popularity of both events.

TIMBER MART president Bernie Owens expressed his satisfaction with the success of the show, noting that it is “truly a national buying show in the sense of offering a competitive advantage” to dealers, bringing TIMBER MART “back to our roots of being a buying group.” Touting the 15% spike in attendance at a time when many buying shows are struggling to keep numbers afloat, Owens said, “As an organization, we need to know what we’ve been doing right to continue getting that support.”

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Home Depot and Lowe’s post strong year-end results

MOORESVILLE, N.C. & ATLANTA  — Both Lowe’s and Home Depot are riding the wave of the recovering economy and surging housing market in the U.S., with strong year-end results. That includes 17 consecutive quarters for Home Depot Canada of positive same-store sales growth and double-digit same-store growth by Lowe’s in Canada for the third year in a row.

Sales for Home Depot in fiscal 2015 were $88.5 billion, an increase of 6.4% from fiscal 2014. Same-store sales were up 5.6%, with U.S. same-store sales positive 7.1%. Net earnings for the year reached $7 billion, up a healthy 10.5% from the previous year. The company ended the year on a strong note, as well: fourth-quarter sales were up 9.5% to $21 billion and same-store sales soared by 7.1%. Home Depot announced a $5 billion share buy-back plan at the same it released the results.

Lowe’s posted results that lagged behind Home Depot’s, but were still strong: sales for the fourth quarter were up 5.1% and same-store sales were positive 5.2%.

For the fiscal year ended January 29, sales were $59.1 billion, an increase of 5.1%, and same-store sales increased 4.8%. Net earnings were $2.5 billion, reflecting the impact of the cost of exiting an Australian joint venture. Excluding the impact of this charge, adjusted net earnings were $3.1 billion, an increase of 14.0%.

Lowe’s in Canada is counting on the pending RONA acquisition to help drive growth in North America. “With this transaction, we see opportunities to further increase revenue and operating profitability in Canada,” said Robert Niblock, chairman, president and CEO of Lowe’s Cos. Those opportunities include leveraging its omnichannel strategy, applying its expertise in categories such as appliances, and driving increased profitability by leveraging shared supplier relationships.

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Home Hardware honoured for leadership

ST. JACOBS, Ont. — Home Hardware has been recognized with the 2016 Business of the Year Award in the Over 50 Employees category by the Greater Kitchener Waterloo Chamber of Commerce at the 2016 Business Excellence Awards.

Presented at a gala event at Bingeman’s conference centre in Kitchener recently, the award recognized Home Hardware for innovative and proactive leadership, measurable success as a business and employer, good corporate citizenship, and for exceptional contributions to community betterment.

“We are pleased to receive this prestigious award,” says Home Hardware CEO Terry Davis. “It is truly the people that make Home Hardware the successful company that it is.”

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CLASSIFIED ADS

Senior director – Business development

Under the supervision of the CEO, the candidate selected will assume the following responsibilities:

• Creating and contributing to the implementation of strategies to develop the hardware and LBM market (Quebec, Ontario, Maritime Provinces);
• Making sure our dealers receive a high-quality service and maintaining a high level of loyalty;
• Optimizing and developing marketing on the territory (analyzing market studies to optimize store localization, participating to store expansions and acquisitions, etc.);
• Managing and mobilizing a team of advisors, merchandisers and customer service clerks;
• Monitoring and developing the sales of Groupe BMR;
• Contributing to the improvement of the corporate image of Groupe BMR stores;
• Other related duties.

Required skills:

• Client oriented
• Business development
• Strategy development
• Leadership and courage to take action
• Persuasion skills
• Good judgement
• Ability to motivate and mobilize a team
• Ability to monitor performance indicators
• Interpersonal communication skills

Must have:

• Excellent knowledge of the retail market      
• Great IT skills: MS Office Suite
• Bilingualism: Mandatory   

Training and experience:

A combination of:
Bachelor’s degree in business administration or the equivalent, and a minimum of 10 years of experience in the retail industry.

Groupe BMR offers a competitive total compensation package

Please email your candidacy at the following address: rh@bmr.co.

Thank you for your interest; however, only selected candidates will be contacted.

February 22, 2016 Volume

xxii, #8

“A life spent making mistakes is not only more honourable, but more useful than a life spent doing nothing.”
— George Bernard Shaw (Irish playwright and critic, winner of the Nobel Prize for Literature, 1856-1950)

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Alberta and Quebec remain slow markets for RONA

SPECIAL REPORT — Growth of its store network remains important to RONA, even as it readies itself to be sold to Lowe’s Cos. RONA enjoyed a 6.5% increase in revenues in the fourth quarter, due mainly to the acquisition of 20 franchised and affiliated stores in Quebec, as well as to 0.8% same-store sales growth from its retail network. However, results varied from region to region.

“We are on the right track and we continue to improve our network and strategic locations where consumers are not well served by the local offer and where we see opportunity for market consolidation and strong growth,” said Robert Sawyer, president and CEO of RONA, in a call to analysts following the release of the company’s Q4 and year-end results. He added that the company “will continue to focus on the execution of our business plan and the realization of our financial objectives.”

RONA acquired 20 franchised stores last year—17 big boxes and three proximity stores—plus another six proximity stores from affiliated dealers. In addition, the company continues to roll out the repositioning of the Réno-Dépôt banner in Quebec and Totem in Alberta. However, despite successes with these formats, both provinces remain challenging economically. Growth in Quebec keeps flat, although the year ended with stronger sales to contractors and pros, due to warm weather there.

In the West, RONA is having mixed results. “In fact, we finished the year essentially flat in Alberta for the full 2015,” said Sawyer. However, he noted, Western British Columbia is healthy enough to compensate for the decline in Alberta. “So, in a nutshell, it’s not getting worse and we’re still overall in a relatively good spot with Western Canada [in] total.”

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Hardlines Conference confirms top speakers—and a new location

WORLD HQ, TORONTO — Some of the world’s leading retail thinkers are poised to share their insights at the 21st annual Hardlines Conference, October 18 to 19. Organizations represented will include Orgill, Scotiabank, Portland Design, and the North American Retail Hardware Association.

Ron Beal, president of Orgill, the Memphis-based hardware wholesaler that bought up Chalifour last year, will be one of the conference’s keynotes. Beal will provide an update on Orgill’s expansion in Canada and offer insights into the conversion of Chalifour to Orgill Canada and how it will affect dealers and vendors alike.

Ibrahim Ibrahim, a retail futurist from the U.K., has been confirmed to return to the Hardlines stage for this year’s event. A favourite among attendees, he had to cancel his visit last year at the last minute. But he’s coming back with more insights into how the world of retail is evolving worldwide.

Aron Gampel, deputy chief economist for Scotiabank, is another speaker who’s been invited back after a resounding reception last year. Gampel will provide a thoughtful—and accessible—explanation of the economic and housing factors affecting Canadians and the retail home improvement industry.

Besides a fresh roster of speakers, the event has a new location—Niagara Falls, Ont.—an internationally renowned landmark just an hour from Toronto’s Pearson International Airport. Delegates can stay at the Sheraton on the Falls Hotel, with a view of Niagara Falls.

(Save the date now! More information and Early Bird Pricing will be made available in coming weeks! —Editor)

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BSIA postpones its buying show

SURREY, B.C. — The upcoming Westcoast Building and Hardware Show, which was to be held March 10 to 13, has been postponed. The show, which is owned and operated by the Building Supply Industry Association of British Columbia, was to have taken place at the Cloverdale Fair Grounds in Surrey, B.C.

“The BSIA show committee and board’s decision to postpone the show was based on a combination of booth sales and retail pre-registration, which were lower than budgeted,” said Thomas Foreman, president of the BSIA. “There are a number of factors contributing to the lower-than-anticipated results, including an over-saturation of shows at this time.” 

These other shows include the TIMBER MART Show in Montreal February 19 and 20, and the Orgill Spring Market in Orlando, Fla. That show, being held February 25 to 27, is expected to draw more than 300 dealers from Canada. BSIA’s counterpart in Atlantic Canada, the Atlantic Building Supply Dealers Association, will hold its own show in Moncton from March 2 to 3.

“The show committee also held a retail phone blitz that resulted in a less-than-favourable response to attending,” Foreman added. “After reviewing all the information and a thorough review of the show budget, it was the committee’s recommendation to postpone the show.”

The BSIA will explore other options that will take on a new look and content, based on the changing demographics of the association and industry, Foreman said. “We are sincerely thankful for everyone that supported the show and apologize for any inconvenience this decision may cause.”

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Amazon.ca launches business supplies site with MRO angle


SEATTLE ― Amazon.ca has launched a business-to-business site that goes after businesses of all sizes, including commercial and maintenance, repair, and operations (MRO). The Business, Industrial & Scientific Supplies store offers lab and scientific products such as microscopes, scales, stethoscopes, surgical gloves, scrubs, and liquid handling tools. But more importantly, it sells hand and power tools, including drills and soldering tools, plus janitorial supplies, industrial cleaners, and occupational health and safety products.

The occupational health and safety category features everything from safety signs, warning alarms and personal protective equipment to tapes, adhesives, and industrial sealers, as well as testing and measuring tools like calipers and voltage testers.

The new online store features more than one million products from brands such as Rubbermaid Commercial, Kimberly Clark Professional, 3M Littmann, and Genesis, as well as Bosch, DeWalt, and Dremel. It reflects the growing importance of the MRO channel for many types of retailers, including traditional building supply dealers.

The Business, Industrial & Scientific Supplies store is now one of 31 categories on Amazon.ca, along with the likes of electronics, clothing, toys, kitchen, and books. More than 100 million items are now available on Amazon.ca.

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CLASSIFIED ADS

February 15, 2016 Volume

xxii, #7

“Only a man who knows what it is like to be defeated can reach down to the bottom of his soul and come up with the extra ounce of power it takes to win when the match is even.”
—Muhammad Ali (American heavyweight boxer, named Sportsman of the Century, 1942- )

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Exclusive interview: Ace, independents all part of Lowe’s mix

TORONTO — What will Lowe’s Canada do with the independent dealers in RONA’s affiliate network of stores after its acquisition of RONA is complete? The answer, says Lowe’s Canada President Sylvain Prud’homme, is simple: keep them all.

Lowe’s plans to maintain the RONA network, including the existing banners and store formats, without disruption. “We have no plans to remove these banners,” he says. “It’s part of our strategy to operate multiple store formats.”

That concept of stores beyond the rigid big box format that has been the secret to Lowe’s growth for decades is one Lowe’s has been working on for a few years. In fact, before it made its first bid for RONA in 2012, then-vice president of international development Doug Robinson told HARDLINES that it was interested in opening smaller stores. And when the company entered Australia soon after its foray into Canada, it did so through a joint venture with Aussie retail giant Woolworths.

It then acquired Danks, a wholesaler serving both corporate stores and independents—much like RONA itself.

While the Australian venture has turned into a money loser, due to the failure of its big box Masters stores to gain acceptance down under, the wholesale business, which sells to 1,500 independents, has been doing well. Prud’homme himself served on the board of directors for the Aussie operation, but he doesn’t have to look that far to find value in multiple banners and ownership models. As a former VP at grocery giant Sobeys, he dealt with “10 or 11 banners. It’s very interesting—and very effective,” he adds. “Independent dealers are very important to the model we have in mind. They can really connect with their communities.”

Another banner that will be part of Lowe’s strategy is Ace, which was licensed by RONA last year and is operated out of Winnipeg. “Ace will be part of the omnichannel strategy—I can’t say how yet. It’s too early to say anything, from a detail perspective, but we want the brand and that’s part of [our growth].”

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New eRetailer Summit will connect online buyers and vendors

TRUMBULL, Conn. — Retailers and suppliers alike are looking for ways to maximize their sales in the burgeoning world of online retailing. That’s why a symposium strictly for the retail home improvement industry has been created.

The eRetailer Summit is a top-level conference for industry-leading retailers doing business online. The event will provide a forum for them to collaborate with progressive vendors and distributors to develop new partnerships and new strategies for success. The eRetailer Summit will be held at the Hilton Fort Lauderdale Beach Resort, October 26 to 28, 2016 in Fort Lauderdale, Fla.

Over a day and a half, a small, select group of eRetail executives and buyers will develop their business ambitions and strategies with a group of suppliers. The event will combine one-on-one meetings; understandings, and learnings directly from the eRetailers; leading keynote speakers; seminars for eRetailers clarifying confusing topics; and true networking in an intimate setting. 

“The eRetailer Summit will provide a great opportunity for internet retailers and the hardware/home improvement manufacturers to gain beneficial knowledge of the dynamic workings of e-commerce,” said Michael Hargrave, divisional merchandise manager for online tools at Sears.com and Kmart.com.

“In this industry, eRetailers are moving together to make home improvement online a more powerful presence,” added Sonya Ruff Jarvis, manager, Jarvis Consultants, who is mounting the event in partnership with Hardlines Inc. “By bringing together a focused group of high-calibre retailers interested in pursuing and increasing their online product sell, we’re creating an environment for these retail leaders to share their goals for increasing online sales with select supplier partners.”

For more information about the Home Improvement eRetailer Summit, contact Sonya Ruff Jarvis: 347-886-0275; or Beverly Allen at Hardlines: 647-880-4589.

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RONA to open three new Réno-Dépôts in Quebec

BOUCHERVILLE, Que. ― RONA inc. is continuing its store expansion strategy, with a number of new and expanded outlets in multiple formats being opened in coming months. Three of those openings will be new Réno-Dépôts in Quebec—in Boucherville, Trois-Rivières, and Valleyfield, along with two new traditional RONA “proximity” stores, in Saint-Félix-de-Valois, Que., and Moose Jaw, Sask. Two more proximity stores, in Saskatoon and in Châteauguay, Que., are being expanded and converted into big boxes, under the RONA Home and Garden and RONA L’entrepôt banners respectively.

Despite the announced takeover of RONA by Lowe’s, business is continuing as usual. The deal isn’t expected to close until after March 31, when RONA will hold a special meeting to let shareholders vote on the Lowe’s offer. The acquisition must also be cleared by the Canadian Competition Board, a process which could prolong the closing several weeks more.

“Last year, we were very active with our plans to open new stores and we are pleased to begin 2016 with all these projects under way. The markets for the stores were carefully selected to increase our reach and to provide better service to surrounding-area communities,’’ says Luc Rodier, RONA’s executive vice-president, retail.

With the addition of the three new stores, the number of Réno-Dépôt locations will increase to 22. However, these latest ones will be smaller than the big box footprint of the original Réno-Dépôt concept. The 70,000-square-foot Boucherville store will be located in a former Maxi store on Nobel Street and will open its doors in July. The two other Réno-Dépôt stores will each occupy 50,000 square feet. The Trois-Rivières outlet will be in a former Target location at Les Rivières shopping centre and is scheduled to open in June. Construction of the new Réno-Dépôt store in Valleyfield on Monseigneur-Langlois Boulevard will begin this year with a planned opening in early 2017.

“The new Réno-Dépôt store concept that occupies 50,000 square feet allows us to optimize our retail space and gives us access to a greater number of markets across the country, compared to the traditional 80,000-square-foot space reserved for big-box stores,” adds Luc Rodier.

The new proximity stores will be smaller still. In Saint-Félix-de-Valois, in the Lanaudière region, construction of a new 25,000-square-foot store will begin this year, with a scheduled opening in early 2017. In Moose Jaw, the new RONA store will occupy 35,000 square feet of space in a former Sobeys location. That one is expected to open in March.

As for the conversions of two RONA stores into big-box stores, the proximity store in Saskatoon recently became a RONA Home and Garden with the addition of 25,000 square feet. Work at the location lasted five months and was completed in January. The Châteauguay RONA store will see its retail space increase by 40%, adding 15,000 square feet, and will become a RONA L’entrepôt location. The interior of the store is being completely redesigned with work set to be completed in early March.

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Smart home products get awards at Consumer Electronics Show

LAS VEGAS ― The Consumer Electronics Show has become the place to see innovative and breakthrough technologies, and this year, home improvement products for the smart home got a lot of attention. At the latest edition of CES, manufacturers and developers from around the world wowed attendees with award-winning innovations in appliances, home security, lighting, and more.

Home safety and security was a theme with several manufacturers. The EYE smoke detector from the Altyor Group uses LED technology instead of an optical chamber to eliminate false alarms and reduce response times over traditional smoke detectors. Halo Smart Labs also won an award for its Halo and Halo+, which combines a smoke and CO alarm with weather alerts for external threats such as tornadoes and hurricanes.

Schlage won an award for its Sense lock system. It works with Apple HomeKit technology for key-free access, and users can control the lock with their voice using Siri. Engie Group introduced the Homnistat, a smart thermostat with a gas meter reading. Users can set their preferred temperature and maximum budget, and the thermostat will manage energy consumption accordingly.

Smart appliances were also a highlight of the smart home category. Whirlpool presented a couple of smart home appliances that won awards for their innovation. The Smart Dishwasher is programmable and can be stopped, started, and monitored remotely with a device. It will even automatically order more detergent by using Amazon’s Dash program.

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Gary Gill has left Graham & Brown and started at Apex Tool Group as national account manager on the Canadian Tire business. Apex supplies not only private-label sockets and ratchets under the Mastercraft and Maximum names to Canadian Tire, but also branded hand tools including Lufkin, Weller, and Wiss.  (Gary.gill@apextoolgroup.com)

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CLASSIFIED ADS

February 8, 2016 Volume

xxii, #6

“Some people see things that are and ask, ‘why?’ Some people dream of things that never were and ask, “why not?’ Some people have to go to work and don’t have time for all that.”
— George Carlin (American comedian, actor, and writer, 1937-2008)

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RONA board accepts new takeover offer from Lowe’s

MOORESVILLE, N.C. & BOUCHERVILLE, Que. ― Lowe’s has entered into a deal with RONA inc. to acquire all of RONA’s common shares for $24 per share in cash, and all preferred shares for C$20 per share. The deal is valued at $3.2 billion (US$2.3 billion) and is more than double the value of RONA’s share price just prior to the announcement of the acquisition.

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 continuing in the lead role. Lowe’s says it will continue to operate RONA’s multiple retail banners and distribution services to independent dealers. The result will be Canada’s biggest home improvement retailer, with revenues close to $6 billion at retail.

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.

This time, the deal has been unanimously accepted by RONA’s board of directors. Despite resistance from the Parti Quebecois and the Teamsters’ union, the deal is expected to go through, pending approvals from Investment Canada and the Competition Bureau. Even RONA’s largest shareholder, the Caisse de dépôt et placement du Québec, has confirmed it will sell its 17% ownership in the company.

“The transaction is expected to accelerate Lowe’s growth strategy by significantly expanding our presence in the Canadian market through the addition of RONA’s attractive business and excellent store locations across the country,” said Robert Niblock, CEO and chairman of Lowe’s Cos. “Importantly, the transaction also provides Lowe’s with entry into Quebec, where RONA is the market leader and we have no presence.”

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Online selling, leadership keynote topics in BSIA Show’s Education Track

SURREY, B.C. — Education for dealers and vendors is going to be an important addition to the next BSIA Westcoast Building & Hardware Show & Ultimate Home Show. The event, produced by the Building Supply Industry Association of British Columbia, will be held in Surrey, B.C., at the Cloverdale Fair Grounds in the Agriplex, March 11 to 13, 2016.

The potential to grow your online sales, along with the issue of effective leadership within your organization, are the two topics that will be covered this year. Liz Drayton is part of the retail team at Google Canada, which means she works with the country’s largest retailers to help them best translate their brand and customer experience through digital media.

Drayton was a big hit at the Hardlines Conference last fall, when she explained how retailers are using apps to literally hijack customers from competitors’ stores with time-limited offers that have them running through the shopping mall for a deal. Anyone trying to get their heads around the possibilities for online selling and marketing cannot afford to miss this breakfast presentation, which will take place on the morning of March 11.

Roy Prevost is a “customer service activist.” Through insightful, often humorous presentations, he provides a look into the minds of the corporate retail players and their marketing strategies.

On the morning of day two, March 12, Prevost will address an important topic for dealers and suppliers alike: the role of leadership in your company. This is a must-attend event for anyone who is:

• wondering whether you are being a leader—or just being a pain;
• leading using outdated, old-fashioned leadership concepts;
• looking for insights on how to develop leaders from within your business;
• looking to build a team of ‘go to’ workers;
• wanting to create the ideal environment to foster leaders in your business;
• interested in the five steps of leadership development; and
• wanting to know how to identify leaders within your organization.

In addition, our very own editor, Michael McLarney, will present a keynote at the Show’s gala dinner on March 11. He will share his insights into the challenges confronting dealers today, and the opportunities available in this changing retail universe of bricks and mortar versus digital selling. He will also provide important statistics on the B.C. market, including its size and top performers.

For more information about the show, contact the BSIA at 1-888-711-5656; or info@bsiabc.ca.

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Lowe’s will share expertise with RONA to increase profitability

TORONTO — Lowe’s has identified ways to cut costs and increase revenue and operating profitability through its takeover of RONA inc. Those measures could add up to an increase in profitability of least $1 billion, says the company.

Lowe’s intends to expand RONA’s offerings by applying Lowe’s specialization in categories such as appliances. It will also bring its strengths in omnichannel marketing to the RONA business. It further expects to drive pro profitability by leveraging shared supplier relationships, the expansion of Lowe’s own private-label capabilities, and the elimination of RONA’s costs related to being a public company, which the company says add up to about $3 to $4 million annually.

In addition, the Lowe’s Canada head office will move from the north end of Toronto to RONA’s headquarters and main distribution centre in Boucherville, Que., on the South Shore of Montreal. Given these opportunities, Lowe’s believes there is potential to double operating profitability in Canada over five years.

While Lowe’s has been known for slashing management in other takeovers, it insists it will continue to employ the vast majority of RONA’s current employees and maintain key executives from RONA’s leadership team. It also says it will look to strengthen existing relationships with RONA’s vendor base, and potentially expand relationships both Lowe’s and RONA have developed with Canadian manufacturers and suppliers.

“We look forward to continuing our commitment to the Canadian market and further enhancing our offering to the customers of both Lowe’s and RONA,” said Sylvain Prud’homme, president of Lowe’s Canada, in a release. “We have great respect for RONA’s leadership team and RONA’s talented employee base and look forward to working together to take our businesses to the next level.”

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Tembec CEO warns of U.S. protectionism

MONTREAL — The benefit of the weaker loonie to lumber exports is likely to arouse the protectionist instincts of the U.S. lumber industry, says James Lopez, CEO of Tembec. According to the Canadian Press, Lopez issued the warning prior to a shareholder meeting last week, saying, “I think that they’re watching the Canadian dollar drop, particularly in lumber, and they’re saying, ‘This isn’t fair.’”