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January 11, 2016 Volume

xxii, #2

“Too much rest is rust.”
—Sir Walter Scott (Scottish novelist, playwright, and poet, 1771-1832)

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You heard it here first: Top quotes from industry leaders in 2015

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SPECIAL REPORT — From acquisitions to the housing recovery to data breaches, there was never a dull moment in the industry in 2015—and you read about it all right here in HARDLINES. Here, we take a look back at a dozen of the most arresting quotations from our coverage of the last year.

• “Now we’re going to see, I think, by mid-year or later in 2015 and for 2016, the commercial market starting to really grow at a different rate. And as you all know, the commercial market lags about 18 months from the residential market. We haven’t seen that lift yet. But we’re well-positioned, big-time well-positioned, for that lift when it comes. And hopefully, by the last quarter 2015, we should see some type of growth starting there.” —Luc Desjardins, president and CEO of Superior Plus (1/26)
  
• “Dealers don’t overreact when conditions change. They understand there are going to be cycles and they prepare well for those cycles. They don’t over-expand during good times and they contract well when times get lean.” —Ken Jenkins, president, Castle Building Centres (2/2)
• “The addition of Groupe BMR illustrates our will to build on the retail sector, particularly in the areas of renovations and building materials, and contribute to the growth of local economies, including in the agricultural sector.” —Gaétan Desroches, CEO of La Coop fédérée (2/9)
• “Believe it or not, our dealers in Newfoundland were the first to notice the effect of falling oil, because so many of their customers work in the oil patch, come home and build homes.” —Steve Buckle, president, Sexton Group (2/16)
• “Is your slogan still ‘Homeowners helping homeowners?’ See, that’s accurate. Home Depot’s slogan? It’s almost killed me, literally. ‘You can do it. We can help.’ I don’t know how they can legally lie to you−twice! Have you met me? I can’t do it, and you’re not going to help!” —Graham Chittenden, comedian, performing at Home Hardware’s Spring Market (4/27)
• “You can’t have people who sit there with laptops and tell you how much you’re gonna buy—[or] what your customers need.” —Michael Medline, president and CEO of Canadian Tire Corp., on how his buying teams are relying on the expertise of CTR dealers to improve the purchasing process. (4/20)
• “I get a lot of new homeowners who have just discovered that their house doesn’t come with a landlord.” —Véronique Laury, CEO of Kingfisher plc (4/13)
• “Retailers tend to think people won’t buy saws or flooring on the internet.” —HARDLINES’ intrepid Editor, Michael McLarney, as quoted in Les Affaires discussing this industry’s slow transition to e-commerce. (7/6)
• “The most dynamic, the most effective, the most profitable people in this industry are the independents.” —Ken Jenkins, president, Castle Building Centres Group (11/2)
• “TIM-BR MART buys right for the independent dealer, with the highest volume of drywall purchases of any buying group in Canada―and that’s a fact.” —Bernie Owens, president, TIM-BR MART Group (11/9)
• “We think the store is still the nucleus of our relationship with the customer, but the store in and of itself is not enough. We really have to be there on an omnichannel basis for the customer.” —Robert Niblock, chairman, president and CEO of Lowe’s Cos. (11/23)
• “I would like to see more women take credit for their accomplishments without worrying about feeling arrogant or undeserving.” —Christine Hand, chair of the board, Home Hardware Stores Ltd., on being recognized by the Women’s Executive Network (12/7)

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New merchandising company at RONA: a good match?
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TORONTO — After terminating the contract for in-store detailing and merchandising from RDTS, through its IMAGINE program, RONA will continue to maintain its stores through a new program, RONA Merchandising Services (RMS). But it has a new service provider to execute the program, a North American shopper marketing agency, Match Marketing Group.

With head offices in Toronto, the company’s scope is wide, and it has had rapid growth in recent years that includes a raft of acquisitions (including five in 2013 alone). But its strength has historically been in the grocery channel and in sporting goods. According to its website, clients include Mars candy bars, Pepsi, Kraft, Adidas, Ford, Dannon yogurt, Campbell’s soups, Samsung, Rogers, and YUM Brands.

That expertise has many vendors in this industry concerned and some shared those concerns. The new arrangement is being regarded as a disruption of RONA’s long-standing relationship with some 450 vendors.

One hardware executive, whose company has hundreds of lines listed with RONA, said he was worried about service levels with a company he perceives as unfamiliar with hardlines. “We’re extremely concerned,” he added.

As the sales manager for one Ontario-based building products manager put it, “The highest level of in-store merchandising expertise has always been with RDTS.” She added that the company was known for its enthusiasm, thoroughness, and know-how in hardware and building materials.

Match MG did not respond to HARDLINES’ requests for an interview.

According to the company’s website, it currently employs more than 600 people in seven offices, as well as more than 7,000 field staff across North America. Based on current recruitment efforts, Match MG will seek to ramp up its expertise in this industry quickly. Just before Christmas, it had more than 2,000 job postings on its website for “home improvement merchandising specialists” and team leaders.

While RONA was a big customer for RDTS, company president Robert Di Tomasso says the company remains strong in merchandising and sales ‎through its original business model, working directly with vendors doing merchandising, audits, sales, and market research in the Canadian market.

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RONA dealer’s expansion strategy aims to counter “uber factor”

GUELPH, Ont. — When Wayne Filsinger decided to renovate his store, W. Filsinger & Sons RONA in Guelph, Ont., three years ago, he took the needs and wants of his customers as a blueprint.

Factoring in e-commerce, and with plenty of bricks and mortar competition nearby, the 2015 Outstanding Retailer Award winner sees it as the only viable business plan. “We don’t want to be ‘ubered’, like what’s happening in the taxi industry,” Filsinger says, referring to the upstart online ride sharing service that has rocked the taxi industry.

The old RONA Guelph was about 7,000 square feet, which Filsinger points out is now the size of the store’s receiving area. The renovated store measures 35,000 square feet, and includes a separate contractor and design showroom. With all that extra space, Filsinger says his team tries to keep the receiving area as empty as possible, because “people want to come in and see the product on the shelves.”

The new store design features low sight lines and he’s even moved merchandise such as patio stones, which were historically kept outside, inside the store since he’d found people often forgot which product they liked once they went back inside to order.

However, one of the biggest changes since the renovation is a dedicated bath showroom. With a direct line to a specialty bath supplier in Toronto, Filsinger says he is able to stock products that are a notch above the standard quality, but still not quite as expensive as more luxury lines. “Nobody in the radius has a better selection of handheld showers,” he says. “It’s really working and we’ve only just scratched the surface.”

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Home Depot’s greatest growth coming from big contractors

SPECIAL REPORT ― As the world’s largest home improvement retailer has recovered from the worldwide recession, it has experienced the greatest growth from purchases by its larger contractor customers. Home Depot is tracking the trend to more contractor sales, with a series of initiatives and merchandising strategies to increase its appeal to pro customers.

In a call to analysts during release of its third-quarter results, Home Depot CEO Craig Menear said, “We are seeing that growth come from our larger pro customers and we’ve seen that trend for the past several quarters now.”

And the contractors tracking strongest are the “large-spend pros,” who are spending more year over year than the average DIY customer. As Home Depot continues to focus on these larger pro customers with new services and dedicated house brands, Menear expects that the spread between the DIY and contractor spend to keep growing.

“We would certainly expect it to continue,” he added.

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Lowe’s Canada has appointed Alan Blundell as divisional vice president, merchandising, effective today. In this newly created position, he will oversee the merchandising function and be responsible for leading the company’s category management strategy. He reports to Igor Halencak, head of merchandising and marketing. Blundell joins Lowe’s Canada with more than 18 years of merchandising experience in the retail industry, 16 of them at Walmart Canada, most recently as vice president of merchandise operations. “…[T]he time is right to have a merchandising lead that will solely focus on delivering an omnichannel, customer-centric category management focus to the organization,” Halencak said.

Maxime Gendreau, sales and marketing manager for Canada for Garaga Inc, has announced the appointment of Éric Léveillé as territory sales manager for Montreal Island, West Montreal, Abitibi, and Ottawa areas. Léveillé has worked in the building materials industry for more than 24 years, including senior sales roles with major Canadian building material wholesalers. Garaga, a Canadian family-owned garage door manufacturer for the residential, commercial, and industrial markets, owns plants in Saint-Georges, Que., and in Barrie Ont., plus a distribution centre in Montreal. (eleveille@garaga.com; 1-866-609-3792)

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CLASSIFIED ADS

LM2 Marketing, a 20-year-old Manufacturer’s Rep Agency, is looking for a Sales Representative for Central Ontario/GTA. Sales background within Hardware, Paint and Industrial markets would be an asset. Please send resume to Rlepine@LM2.ca

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January 4, 2016 Volume

xxii, #1

“A hero is someone who understands the responsibility that comes with his freedom.”

—Bob Dylan (American songwriter, musician, and poet, 1941- )

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TIM-BR MART strategically expands commercial division

VAUGHAN, Ont. — TIM-BR MART Group is looking to strategically expand its commercial division. But, Mark Finucane, VP of commercial for the company, says that the buying group is pursuing that growth in a measured way. “We’re looking for quality over quantity,” he stresses.

In the past 15 months, TIM-BR MART has bolstered its ranks of commercial dealers, which provide important volume for a buying group. In fact, according to President Bernie Owens, TIM-BR MART has the highest volume of drywall purchases of any buying group in Canada. Its latest members are: Clare Interior Supplies in Hamilton, Ont.; Master Building Materials in Woodbridge, Ont.; and Manugypse in Quebec City—the group’s first commercial dealer in the province of Quebec.

Finucane says each of these new members bring TIM-BR MART more volume, increases the group’s critical mass, and broadens its buying power.

He says the group is “open for business in all categories,” but would not announce any more new members at this time. However, TIM-BR MART is always talking with potential new dealers, and he adds that any new additions must be carefully planned—and strategic. “We will be cautious about any additions we’ll bring into the group to ensure that they bring value to our current membership.”

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Peavey ranked among top 10 corporate cultures

RED DEER, Alta. ― Peavey Industries, parent company of Peavey Mart stores, has been named one of Canada’s 10 Most Admired Corporate Cultures of 2015.

The hardware and farm supplies chain currently has 36 stores stretching from Kamloops, B.C., to Winnipeg, with its head office and distribution centre in Red Deer. Operating under the Peavey Mart name since 1975, it uses the tagline, “hardware and a whole lot more.” The retailer also offers local sustainability products including beekeeping, home food preparation, and lawn and garden products.

Peavey’s submission was scored on six categories: vision and leadership, recruitment and hiring for fit, cultural alignment and measurement, retention, rewards and recognition, organizational performance, and corporate social responsibility. Distinctive elements of Peavey’s corporate culture, which helped it make the list, include internal programs for “kudos”, team-building, fundraising for co-workers in need, and health and safety.

“I can see our strengths in each of the categories we are evaluated on,” says Doug Anderson, president of Peavey Industries. “How we hire. Respecting each other’s unique abilities and contributions. The fact that others can’t believe we can accomplish what we do, the way we do it.”

Corporate social responsibility initiatives have included electric vehicle charging stations, and powering its stores and home office with renewable energy. As well, the Peavey Mart Community Agricultural Grant provides up to $50,000 each year to non-profit groups.

Last year, Peavey Mart added stores in Kamloops, B.C., and Strathmore, Alta., as well as adding office and distribution space to its head office in Red Deer.

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Luxury spending: big $$ for home improvement channel

Stevens, Pa. — A new report indicates that wealthy Americans are spending more than ever on home improvement related products and less on “bling.” According to “Home Luxury Report USA,” published by luxury marketing guru Pamela Danziger, major appliances, bath, and building products are hot in the luxury home category, with kitchen appliances and laundry appliances representing the top two most purchased products within the category.

Investments in home improvements are considered a more solid long-term investment, says Danziger. “For example, buying a new handbag or outfit gives a momentary thrill, but once the newness wears off, it is just another thing in the closet,” she notes. “But investing in home improvements, like redesigning the closet or new kitchen appliances, is something that greatly improves the quality of your everyday life.”

Affluents, as she calls them (income earners above $100,000) are picking up the pace in spending in furniture, lamps and lighting, floor coverings, major home appliances, building products, window coverings, and bath fixtures. “American affluents have a passion to gain the greatest return on their investment in spending and where they are investing their money today reflects it.”

The report further indicates that national brands hold a lot of sway with wealthy consumers. The top-rated brands are LG, followed by GE. As far as shopping destinations, Home Depot and Lowe’s take the lead.

“Because at any one time over half of all affluents—about 14 million out of the 28 million affluent households—are making or planning a home furnishings purchase, the market potential is still strong for home brands,” she says. But those customers are doing lots of research ahead of time, and shopping online more than ever, so marketers have to be “at the top of their game,” she warns.

This new study gives a seven-year perspective on trends in affluent home purchases, from 2008-2014. For more information on the report, contact Pam Danziger at Unity Marketing.

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Canadian Tire puts more ad dollars into digital

TORONTO — When Canadian Tire launched its Woods camping and outdoor brand last year, the retailer didn’t include any TV advertising in its mix. While the promotion of both Canadian Tire and its proprietary brands remains a priority, more and more emphasis than ever before is being put on digital advertising.

The new focus was disclosed by Dean McCann, executive vice president and CFO, during a call to analysts following the release of the company’s third-quarter results.

“The launch of the Woods campaign this year was 100% digital. We didn’t use TV for that, and that was a great learning experience. For the first time, we launched a major brand without traditional media.”

He called the initiative “very successful from a learning standpoint,” adding that the brand is performing well. “So you will see next year more of a transition away from the traditional media and to new media.”

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Duncan Fulton, SVP at Canadian Tire Corp. and chief marketing officer for FGL Sports and Mark’s, has been named Canada’s 2015 Marketer of the Year by the Canadian Marketing Association. Fulton, who was instrumental in the rebranding of Sport Chek, has led the company’s strategy for the last six years to tie its brand to sports and Canada’s communities through a series of sponsorship agreements, experiential events, and integrated marketing and communication campaigns.

Wal-Mart has named Tony Rogers chief marketing officer as it attempts to buoy its sales and build its customer base. Rogers, who takes over from Stephen Quinn, has been with the company for a decade, most recently as chief marketing officer for Wal-Mart in China.

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CLASSIFIED ADS

December 21, 2015 Volume

xxi, #47

“Maybe Christmas, the Grinch thought, doesn’t come from a store.”

—Theodor Seuss Geisel (aka Dr. Seuss, American children’s author and illustrator, 1904-1991)
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HOLIDAY PUBLISHING SCHEDULE:The World Headquarters is closed until January 4. There will be no weekly edition of HARDLINES on December 28. Our regular weekly schedule will resume January 4. Until then, the entire team at Hardlines wishes you the safe and happy holiday and a very merry Christmas. See you all in the New Year!

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RONA switches from original service provider

LAVAL, Que. — RONA has ended its contract for its in-store merchandising services, called the “IMAGINE” program. Developed by RDTS, a Laval, Que.-based merchandising services company, IMAGINE is a unique program whereby all vendors involved received a range of services in-store through RDTS.

RDTS serviced all of RONA’s big box stores under the IMAGINE program, and for the past two years the service was provided to all its other stores across Canada, as well. IMAGINE represented some 450 vendors across the country.

RONA will continue to maintain its stores through a new program, RONA Merchandising Services (RMS), using a North American company, Match Marketing Group. With Canadian offices in Mississauga, Ont., Match MG has a strength in the grocery channel. Its contract commences March 1, 2016. RDTS will continue to support RONA stores until then.

RDTS is currently expanding the IMAGINE program with home improvement retailers in Europe, while its core merchandising services here in Canada, which also include audits, store performance analysis, and surveys, will continue to be offered to Canadian retailers and vendors.

A spokesperson for RONA told HARDLINES that the merchandising services for its stores was put out to tender, “and after a rigorous review of the service offers of several firms, RONA’s selection committee awarded the contract to Match Marketing Group.”

In addition, RONA acknowledged its partnership with RDTS, calling it “a company with which RONA has enjoyed a close collaboration over the past seven years… RONA offers its sincerest thanks to RDTS for their dedication and support over the years.”

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TIM-BR MART adds commercial dealers in Quebec, Ontario

VAUGHAN, Ont. — Just a week after adding a dealer in Quebec, TIM-BR MART Group has bolstered its ranks of commercial dealers even further with the addition of Master Building Materials in Woodbridge, Ont. Master Building Materials (formerly Future Building Materials) has been serving contractors, residential, and commercial builders out of a 30,000 square-foot location in the greater Toronto area since 2005.

Employing a team of more than 40, the company offers gypsum wallboard, insulation, metal framing, doors, plywood, ceiling tiles, stone veneer, taping tools, and a range of accessories. Master Building Materials joins TIM-BR MART to benefit from the group’s national buying power and grow their business.

“As a TIM-BR MART member, we will have ample opportunity for growth with the group’s competitive buying programs in each of our key categories,” says Loreto Iacobelli, general manager for Master Building Materials. “We appreciate the new direction TIM-BR MART is going in and look forward to our future with the group.”

Earlier this month, TIM-BR MART added another commercial dealer, Manugypse, based in Quebec City. Serving commercial and residential builders in that market, Manugypse joins TIM-BR MART following some aggressive growth since its inception in 1983. The company has more than doubled in size and has grown from a footprint of 27,000 square feet to 63,000 today, which includes a steel-frame manufacturing plant.

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Castle makes changes to business development team

MISSISSAUGA, Ont. — Castle Building Centres Group is enhancing its business development management structure as the New Year begins. The changes come both from movement within the ranks of the team and from dealer growth within the buying group itself.

The company has appointed Bruce Holman (left) to head up dealer recruitment efforts in a newly created position as director of business development. This role was created to help strengthen communication within the Castle membership and assist in co-ordinating growth objectives in all regions. Holman was most recently business development manager for the group’s Central Canada region. In his new role, he will oversee the activities of the regional business development managers across the country.

Castle will assess additional member support needs for the Central Canada region in early 2016.

In addition, Alan Schoemperlen (centre), the team’s business development manager for Manitoba and Saskatchewan, will assume a reduced role in 2016, as part of a transition from his current duties into full retirement. In a new role as business development manager–mentor, he will work with the Castle team sharing best practices, industry insight, and knowledge.

Schoemperlen’s first mandate will be to work closely with Chris Graves (right), who is taking over business development duties in Manitoba and Saskatchewan. Based in Winnipeg, Graves comes to Castle from Certainteed Corp., where he served as senior territory manager.

“The combination of new member additions and the organic growth of our existing member base requires that we enhance the structure that services their ability to succeed in the market,” says Ken Jenkins, president of Castle. “Our business development team is best in class and these changes further support our commitment to our members.”

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Construction and reno trade show draws crowds

TORONTO — A walk through the recent Construct Canada trade show at Toronto’s Metro Convention Centre revealed a raft of new products available to builders and contractors. There was also an impressive lineup of services and technologies available to property managers and maintenance, repair, and operations (MRO) professionals.

But many of these products won’t end up in a building centre or hardware store. While the MRO and pro markets are increasingly important on the retail side, much of the business goes direct—typically to large-scale builders and contractors. Most of the new-product vendors at the show whom HARDLINES talked with were looking to meet the architects and planners who would include their products in specs and design plans for projects.

While the show has been well-represented in the past on the retail side (at former shows we’ve encountered Lowe’s, RONA, and Home Depot Supply exhibiting), the focus this year was more on direct sales, with vendors looking to groom a relationship with this important end-user customer base.

However, one retailer that was trying out the show for the first time was Lee Valley Tools. Sales reps for this tool and workshop retailer were in the booth from both the Ottawa store and the downtown Toronto outlet. They said their company’s presence there was spurred by the amount of contractors already coming in to their stores. Those customers are looking mainly for convenience products, typically striking tools and hand tools, but they represent a brisk business for the stores.

Tape measures, hammers, socket sets, and levels were all on display, and the Lee Valley team reported they were getting positive response to their presence there.

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FROM THE ARCHIVES: This week in 1995

Twenty years ago plus a day, we ended the year with a Hardlines Fax Extra announcing that “Bebis Quits Home Depot.” Stephen Bebis, the colourful president of Home Depot Canada had been responsible for transitioning Home Depot’s acquisition of Aikenhead’s from the Molson Cos. two years earlier. Buz Smith, VP operations, and Murray Bozniak, head merchant, stepped in to fill Bebis’s role until a replacement was found. Annette Verschuren was hired early the following year. Bebis went on to found Golf Town, taking Bozniak with him. Click here to read these blasts from the past!

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At Delta, B.C.-based Task Tools, President & CEO Kevin Irvine has stepped down from his position, effective December 15. Craig Caplan, chairman of Task, has returned to the management of day-to-day operations and “to help write the next chapter in our family’s business." He added "The time away enables me to bring fresh perspective and renewed passion back to the organization.”

Klaudio Leshnjani, executive VP and chief operating officer of Sears Canada, will be leaving the company at the end of the fiscal year. A statement issued by Sears explained that Leshnjani had “taken this decision to spend more time with his family. He has been in this post since November 2013. He rose through the ranks since joining Sears Canada in 2002 as legal counsellor, being named VP and general counsel in 2008.

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CLASSIFIED ADS

December 7, 2015 Volume

xxi, #46

“I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.”
—Jimmy Dean (country music singer, TV host, actor, and businessman, 1928-2010)
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HOLIDAY PUBLISHING SCHEDULE: We take a bit of a break during the holidays, so there will be no weekly edition of HARDLINES on December 14 or 28. The World Headquarters will remain open until December 18, however, as we put the finishing touches on the next issue of our sister publication, Hardlines Home Improvement Quarterly magazine, which gets mailed to more than 11,000 dealers across Canada. Our regular weekly schedule will resume January 4.

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Lowe’s Canada opens giant regional distribution centre

MILTON, Ont. — Lowe’s Canada held an official opening of its new regional distribution centre in Milton, Ont., last week. The facility, half-an-hour west of Toronto, was erected for Target Canada, but vacated when that retailer exited Canada last year.

Many of the facility’s 330 employees were on hand for the ceremony. Mario Paradis, senior director of distribution, emceed the event. He was joined by members of Lowe’s management team, including Gregor Stuart, vice president of supply chain, and Wanda Walkden, VP human resources.

Paradis thanked his staff, saying, “You guys are the one who move the boxes. You’re the ones who keep our stores filled.” The facility is expected to employ up to 400.

Besides taking over this warehouse, Lowe’s purchased 12 Target retail sites that will be converted over the next 18 months. The next one to open will be in Ancaster, Ont. Other Ontario locations include Milton, Cornwall, and the Danforth neighbourhood in Toronto’s east end. Lowe’s currently has 40 stores in Canada.

Stuart noted that the new RDC will be instrumental in supporting not just Lowe’s bricks-and-mortar locations, but its online sales initiatives, as well.

The new RDC features about 1.3 million square feet of space, with room to expand by an additional 250,000 square feet in future. It features 197 bay doors—including 97 loading bays—plus a fully automated conveyor system that will move boxes at a speed of up to 630 feet per minute. It replaces an existing warehouse, also in Milton, that is 660,000 square feet in size.

The RDC has opened in time to manage extra capacity needed by the existing stores during the holiday season, while spring assortments will begin arriving by the end of this week.

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2016 Westcoast Building & Hardware Show partners with HARDLINES to offer dealer education

SURREY, B.C. & TORONTO — The next edition of the Westcoast Building & Hardware Show will feature a new, powerful educational component for dealers and retail managers and a new format for more exposure to end users.

Thanks to a new partnership with the Events Division of Hardlines Inc., the show, presented annually by the Building Supply Industry Association of British Columbia (BSIA), will feature a series of training and educational seminars to provide independent dealers and store managers with a full show experience to help them grow their businesses.

The combined event will be held March 11-13, 2016, at the Agriplex on the Cloverdale Fair Grounds in Surrey, B.C.

The Westcoast Building & Hardware Show will kick off with a breakfast speaker on both mornings of the show. Drawing on HARDLINES’ expertise and range of industry knowledge, topics will include industry trends, economic conditions, and an analysis of the West Coast home improvement market. The seminars will be carefully timed and will not interfere with dealers’ time on the show floor. A special presentation during the New Orion Awards and Supper will present information about the B.C. market that has been compiled exclusively for BSIA by HARDLINES.

Besides the powerful educational component of the show, retailers will be able to enjoy show specials from vendors. To make a dealers’ visit to the show a complete experience, a complimentary lunch will be provided by the finest local food trucks, and a chance to win incredible door prizes. Unique aspects of the Show, which sets it apart from any other buying show in the country, is that on Friday afternoon March 11, architects, designers, and contractors will be invited to attend seminars and to walk the show floor. In addition, on Saturday March 12 at 1:30, The Ultimate Home Show will open to the public. There will be onsite radio broadcasting. There will also be an “Ask the Expert” stage for presentations during the Home Show.

The BSIA is the official voice of the building supply industry in British Columbia. It is an association of retailers and related suppliers, wholesalers, and manufacturers who strive to provide information and services for members, promote the industry, and address issues of concern at all levels of government.

More details about keynote speakers for the Education Program will be announced in coming weeks. For more information about the show, contact the BSIA at 604-513-2205 or toll free at 1-888-711-5656; or info@bsiabc.ca.

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Spectrum integrates Canadian operations to focus on home improvement channel

SPECIAL REPORT — Spectrum Brands is a big company. It represents US$4.4 billion in sales through a number of divisions, and features a range of brands. However, in Canada, the company is working on marketing those various brands in a more cohesive manner to the home improvement channel.

First, a little background: Spectrum has four divisions. Batteries and appliances feature Rayovac and Remington, plus Black & Decker, George Forman, and Russell Hobbs small appliances. Hardware & Home Improvement (HHI) consists of the Stanley Black & Decker division, acquired in 2012, and includes Weiser, Baldwin, Kwikset, and Pfister. National Hardware is also part of this division, but was pulled from Canada earlier this year. There’s an automotive division (ArmorAll and STP) and a pet division.

Each division in Canada had worked discretely in the past, with their own sales forces and relying heavily on direction from the U.S. parent. But now, says Dave Albert, vice president of HHI’s International Business, the Canadian operation is seeking a more unified approach, especially, he says, as all those divisions have products that are sold through the hardware and home improvement channel.

So Spectrum has been integrating all the divisions in Canada. “We will be integrating into one office, coming on around February or March 2016, with about 60 people in that office,” Albert says. The company is looking for other ways to invest in Canada, as well. “We’re adding another 20 people in the next 90 days and that is part of looking at all our business and bringing it together under one structure.” The aim, he says, is to point all those diverse products more effectively into the home improvement channel.

Despite the retreat of National Hardware, Spectrum plans to put more emphasis on the remaining brands here. “We have a great portfolio of brands and we have a vision to be good stewards of those brands,” says Albert. “Each of those brands needs their own focus.”

Despite the departure of National Hardware, he believes a strong Canadian presence is crucial to that focus; there’s “a significant advantage to be in Canada for Canada,” with more autonomy than ever from the U.S. head office. “We want to maintain the focus and value proposition of each brand and leverage economies of scale.”

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Top Women include Canadian Tire’s Billes, Home Hardware’s Hand

TORONTO ― The Women’s Executive Network’s newly announced roster of Canada’s 100 Most Powerful Women includes names from the hardware and home improvement industry.

Christine Hand (shown here), chair of Home Hardware Stores’ board of directors since 2012, was recognized in the Corporate Directors category. Canadian Tire was represented by both controlling shareholder Martha Billes and Mary Turner, CEO and president of Canadian Tire Bank and senior VP of finance for corporate.

Comments were solicited from each winner on a range of topics. Hand said, “I would like to see more women take credit for their accomplishments without worrying about feeling arrogant or undeserving.” On the topic of embracing diversity in the workplace, she noted that “high-potential candidates must be balanced to reflect the makeup of your overall employee base. For instance, if 40% of the employees are female, then as leaders we should not accept a list of high-potential candidates that is 95% male.”

WXN founder Pamela Jeffery launched the Top 100 in 2003 to recognize the accomplishments of professional Canadian women. This year’s honourees were inducted recently at a gala at the Metro Toronto Convention Centre.

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FROM THE ARCHIVES: This week in 1995

HARDLINES readers got some encouraging news this week with a report that the economy was beginning to show some signs of recovery: both housing starts and building permits made positive gains. IRLY Distributors plans its golf tournament and OSRAM gets a new president. Plus, our very first Christmas message to our readers! Click here to read these blasts from the past!

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Coast Distributors has added two more sales reps. Randy Garrets (780-451-0606) is now representing Coast in Northern Alberta, while Leigh Allard (250-562-0625) has joined the Coast team, travelling Northern B.C. from Prince George to Prince Rupert. Both bring with them many years of experience in the hardlines industry. This brings the total of outside reps for Coast to 10.

Julie Pouliot, owner of Grant Home Hardware Building Centre in Kirkland Lake, Ont., has been elected to the board of directors of Home Hardware Stores Limited. She has owned and operated the store since 2003. She also operates two other Home Hardware Building Centres in Temagami and Temiskaming Shores, Ont.

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CLASSIFIED ADS

November 30, 2015 Volume

xxi, #45

“Never give up on a dream just because of the time it will take to accomplish it. The time will pass anyway.”
—Earl Nightingale (radio personality, author and motivational speaker, 1921-1989)

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Co-op Buymart celebrates 40th year and record attendance

SASKATOON — Federated Co-operatives Limited celebrated its 40th year of hosting retail co-ops, independent dealers, and suppliers from across Western Canada at its Fall Buymart, held in Saskatoon from October 19 to 20.

It also turned out to be a record year, with more retail and suppliers than ever attending the semi-annual home and agro trade show that showcased hardware, building materials, soft goods, seasonal, housewares, crop supplies, fertilizer, and feed suppliers.

Retail co-ops benefitted from purchasing at special Buymart pricing, viewing new seasonal product lines in-person, getting the latest product information, learning from training, and finding unique opportunities to grow their businesses.

There were special presentations preceding the trade show and networking with fellow retailers throughout the two days, including a banquet and evening of entertainment. FCL reports that a great deal of excitement was generated by the re-launch of a private-label paint program, and a keynote address by former Toronto Argonauts star Michael “Pinball” Clemens.

The show remains an important buying show for the industry. A survey conducted after the Buymart, with both retailers and suppliers, revealed that 93% of retailers are “very” or “completely” likely to recommend Buymart to their colleagues and that 85% of suppliers are “very” or “completely” likely to recommend Buymart.

FCL celebrated record sales of $10.8 billion in 2014, making FCL the 43rd largest company in Canada. (For more information on Buymart, contact Don Ryan, FCL marketing manager for FCL Home and Building Supplies.)

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Sign of the times: Orgill name goes up on London, Ont., DC
LONDON, Ont. — Orgill Canada’s takeover of Chalifour Canada is now official, at least to look at the former Chalifour warehouse. A new sign, Orgill Canada, has appeared in front of the London, Ont., warehouse that was formerly the Chalifour facility—and the home of Sodisco-Howden and D.H. Howden before that.

Memphis-based Orgill is a full-line hardware wholesaler with five distribution centres throughout the U.S. It established a DC in Canada in 2013, in Mississauga, Ont., for products that could not move easily across the border, such as solvents and other hazardous chemicals.

Orgill is currently in the process of setting up its team and systems in Canada to work with the existing staff and operations at the London facility.

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Canadian Tire dials back installed services

TORONTO — Canadian Tire stores managed to push sales up 1.5% in its third quarter, with same-store sales up 3.4%, reflecting strong seasonal and non-seasonal sales and a shift in sales mix, as the company’s installed business was pared back to re-focus on products that are sold exclusively within Canadian Tire stores. The concept, called Canadian Tire Home Services, was piloted three years ago and originally included HVAC, roofing, painting, garage door installation, and other services for homeowners.

Over time, the range of services was expanded in different regional markets, with nine more product categories added to the installation program. In the company’s 2014 annual report, the Home Services business was considered the number-six source of revenue for Canadian Tire, after gasoline and gas bar sales.

Earlier this year, the company scaled back its range of services. While garage door installation and temporary shelter assembly is still done, roofing and large-scale HVAC installations are no longer available. Instead, smaller, convenience jobs are more prominent. These include wall mounting for flat-screen TVs, children’s playground assembly, and toilet repair and replacement. HVAC is limited to putting air conditioners in a homeowner’s window.

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Maritime DC one of a series of turning points for Home Hardware

TORONTO — Home Hardware Stores saw growth through a series of turning points, one of which was the construction of a distribution centre in Debert, N.S., almost four decades ago. It was, says Home Hardware CEO Terry Davis, an important step in helping the dealer-owned co-op grow to national status, by giving it the ability to effectively serve Atlantic Canada.

Around the same time, a group of dealers in the West approached Home asking for more supply there. The result was a DC in Wetaskiwin, Alta., south of Edmonton.

Davis, speaking at the Hardlines Conference back in October, outlined a total of 10 key turning points for the company. Another one, he says, was the acquisition in 1987 of 55 stores from Revelstoke Home Centres. It was the first time Home made an acquisition of any kind; all of the stores were switched to the Home Hardware banner.

That deal anticipated an even larger deal more than a decade later, when Home acquired Beaver Lumber from Molson Cos. That acquisition brought over a network of stores and individuals from head office with additional expertise in retail. “When we bought Beaver Lumber we became a true building supplies company,” Davis says.

A real wake-up call for the company was the introduction of the North American Free Trade Agreement. The belief at the time was that the borders would come down and retail would become a North American play. “All we thought about NAFTA was that Ace was going to come to Canada and it was going to clobber us.” One outcome of that was a strategy to prevent the feared loss of dealers. Home Hardware put in place a five-year payout for dealers who left the organization. Until then, that payout had been only 48 hours.

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FROM THE ARCHIVES: This week in 1995

Amidst a slow economy, TIM-BR MART Group invests in more store design services for its members. The move is aimed at modernizing their stores, with an emphasis on core categories and heavier branding for the TIM-BR MART name. The group’s sister buying group in Atlantic Canada, AWARD, was using the program already. Plus: a report on the upcoming Canadian Hardware Show, which was to be held at the Canadian National Exhibition. Click here to read these blasts from the past! (This section has been a special look back during our anniversary year. Please let me know if you’d like us to continue with “From the Archives” in 2016. Send me an email with your vote!―Michael)

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The Canadian Hardware & Housewares Manufacturers Association will induct three industry veterans into its Hall of Fame in 2016. Vaughn Crofford, the association’s president, announced that Home Style magazine founder Laurie O’Halloran, Bill Calisina of Bissell Canada, and James Mumby of Dynamic Paint Products will form the 32nd cohort of honourees. The three will be inducted at a luncheon during the CHHMA Spring Conference in April.

Coast Distributors has appointed Anthony Snell to its management team as purchasing manager for all three warehouses in British Columbia. He will work with re-buyers in each location and manage Coast’s new Surrey office and warehouse. He’ll also oversee the three Coast sales reps and the warehouse staff in the new Surrey location, a major step for the company in its push to be a complete hardware supplier on the West Coast. (604-371-1341)

Kevin Keddy has been named sales manager and Jon Watson is now branch manager at Tru Tech Distribution in Barrie, Ont. They will help support buying groups and retail lumber yards throughout Ontario as Tru Tech co-ordinates sales of Tru Bilt custom entry doors to these customer groups directly from a distribution hub in Simcoe Region. Tru Tech produces its own steel and fiberglass door panels, decorative doorlite glass and custom entry systems in two facilities: Vaughan, Ont., and Fredericksburg, Va. (kkeddy@trutechdoors.com; jwatson@trutechdoors.com)

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CLASSIFIED ADS

November 23, 2015 Volume

xxi, #44

“When I grew up, what was interesting for me was that music was colour and life was grey. So music for me has always been more than entertainment.”

—Pete Townshend (British musician and songwriter, leader of the band The Who, 1945- )

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Home Depot profit soars on solid sales, digital growth

ATLANTA ― For its third quarter, Home Depot reported sales of $21.8 billion, a 6.4% increase from the third quarter of fiscal 2014. Comparable store sales for the period were up 5.1%. Net earnings for Q3 were up 13% to $1.7 billion, while diluted earnings per share increased 17.4%. The results include a pre-tax expense of $20 million related to the company’s 2014 data breach.

The company reported positive comps from all departments. Appliances, tools, plumbing, decor, lighting, hardware, building materials, and indoor garden were especially strong, while outdoor garden, kitchen and bath, electrical, millwork, flooring, lumber, and paint were positive, but below the company average. Home Depot continues to pursue the contractor customer, and reported that related categories, such as power tools and accessories, commercial lighting, HVAC, and fencing, all enjoyed double-digit comps.

Home Depot’s comp sales continue to show a spread between domestic (U.S.) business and the total business. While comps exceeded 5% for the entire company, U.S. comps were much higher, up 7.3%, suggesting much lower comps for operations in Canada, and to a lesser degree, Mexico. In a call to analysts, CEO Craig Menear mentioned Canada only briefly, noting that the variability in performance across regions “has narrowed considerably.” He added that “our Canadian business posted positive comps in local currency, making it 16 consecutive quarters of positive comps.”

Canada is also seeing some innovation on the digital front. Home Depot Canada’s website was “re-platformed” and went live earlier this month. Home Depot’s total online sales grew by about 25% in the third quarter and represent approximately 5.1% of overall sales. About 42% of all online orders are picked up in store.

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Castle president talks competition, North American market

TORONTO — Some of the best competition for independents in the last 20 years has come from big box stores, acknowledges Ken Jenkins. The president of Castle Building Centres spoke in October at the 20th annual Hardlines Conference to an audience of almost 200 retailers, wholesalers, and vendors. “The box made us better,” he said. “It made us better at what we do.”

He said the large-surface retailers had the ability to market the home improvement sector to the public. That raised awareness of home improvements and renovations, and helped educate homeowners, resulting in a more informed customer coming through the door—which has increased sales for everybody.

Jenkins also exhorted dealers and vendors to stay on top of the larger changes shaping this industry. “The industry needs to step outside of the day-to-day and work on their business.”

One of the trends he advised them to accept is the globalization of the business. “It’s a North American market and if you don’t think so, you can continue to keep your head in the sand,” he warned.

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Lowe’s Canada reports strong Q3 comp sales

MOORESVILLE, N.C. ― Lowe’s Cos. has reported third-quarter net earnings of $736 million, a 25.8% increase over the same period a year ago. Sales increased by a healthy 5.0% to $14.4 billion from $13.7 billion.

Comparable sales increased 4.6% for the quarter, while comps for the U.S. home improvement business increased 5.0%. For the nine-month period, sales were up 4.9%, and comp sales increased 4.9% year-to-date. Net earnings increased 12.8% for the nine-month period.

The company also reported “high single-digit comps” for its Canadian operations in Q3.

During the quarter, Lowe’s reported making gains in its efforts to sell more effectively to contractors. It also has been working to streamline payroll costs by making staff on the floor more efficient. Examples of these improvements include the wider use of iPhones and iPads by staff. Also, location-based technology that’s now on every product coming in to the stores tells employees exactly which aisle and shelf each product belongs.

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PM’s aging house could become Canada’s highest profile reno

OTTAWA — Mike Holmes and Bryan Baeumler are among the contractors making known their interest in fixing up the prime minister’s dilapidated official residence. Holmes announced his eagerness to take on the job on his Facebook page, while Baeumler has said he would “jump at the chance,” in response to media inquiries.

Prime Minister Justin Trudeau has delayed moving his family into the lodgings at 24 Sussex Drive. The residence, which was built in 1868, is in need of more than $15 million in long-delayed repairs. It’s also the home the young Trudeau grew up in during his father Pierre’s premiership. In the interim, Trudeau and his family have moved into Rideau Cottage, which is on the property of the governor general’s residence, Rideau Hall.

Although built just a year after Confederation, it did not host a prime minister until Louis Saint-Laurent moved in in 1951. A major overhaul that year stripped the house down to its studs, and the chandeliers are among the few original furnishings remaining intact.

The Globe & Mail surveyed several architects about their visions for the historic property. Paul Dowsett is principal architect at Sustainable.TO, which specializes in restoring historic buildings with an eye to sustainability. He suggests insulation from Roxul could help to address the residence’s energy woes. Roxul’s Milton, Ont., plant produces mineral fibre insulation.

Canada’s highest-profile reno is coming at a time when renovations are increasingly crucial to the industry. CMHC is expecting housing starts to slow in 2016 and 2017. A Scotiabank report released in late October values home renovations in Canada at $53 billion and states these will drive investment in residential construction in coming years.

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FROM THE ARCHIVES: This week in 1995

Don Nash was president of Homecare Building Centres, the Ontario buying group that would later merge with TIM-BR MART in the West. In this issue from the archives, HARDLINES reports on Nash’s presentation to members of the Canadian Hardware and Housewares Manufacturers Association. Also in that issue: the ex-president of Canadian Tire takes over the ailing White Rose Nurseries chain and Weber Supply’s Jack Weber introduces more computerized innovation. Click here to read these blasts from the past!

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Eugene Roman, chief technology officer at Canadian Tire Corp, has been named the 2015 Private Sector CIO of the Year. The award recognizes the quality, insight, direction, and leadership of Canada’s senior technology executives and is presented annually by the Information Technology Association of Canada, Canadian CIO Magazine, and the Canadian CIO Association.

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CLASSIFIED ADS

Customer Service Representative – Canada

The Customer Service Representative is responsible for achieving customer satisfaction within defined objectives for the company. Includes managing customer accounts via orders, complaints and problem resolution, customer communication, invoicing and responding to literature requests. High level of professional communication required.

The role requires a developed ability to accomplish a variety of complicated tasks in a high volume, fast-paced environment. Communication and organizational skills are at a premium in this role. Success in this position will require the balance between thinking, listening, and speaking in a purely positive way while following the rules and policies of the Company.

Primary duties and responsibilities:

• Answer all incoming customer calls and e-mails in order to resolve any issues or questions related to customer orders as well as enter all order requests
• Maintain accurate customer pricing and resolve pricing inaccuracies by researching

  discrepancies

• Create and compile necessary documentation for the direct import program to ensure

  that all items are invoiced correctly

Our ideal candidate will possess the following:

• High School Diploma or equivalent
• 5 –7 years customer service experience
• Exceptional communication and problem solving skills
• French speaking is required

  Equal Opportunity Employer of Minorities, Females, Protected Veterans, and Individuals with Disabilities

Apply online at https://fiskars.applicantpro.com/jobs/

November 16, 2015 Volume

xxi, #43

“I suppose I didn’t know what I’d become, but I always wanted to be extremely brave and I wanted to be a constant reminder to the universe of what passion looks like. What it sounds like. What it feels like.”
—Lady Gaga (American songwriter, singer and performance artist, 1986- )

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RONA’s third-quarter sales dip on increased profits

BOUCHERVILLE, Que. — Consolidated revenues for RONA in its third quarter totalled $1.16 billion, down from $1.17 billion in the third quarter of 2014. This dip results from a 6.9% decrease in distribution segment sales, reflecting in part an early slowdown in purchases by 20 franchised big box stores that RONA acquired during the quarter.

However, retail segment sales were up 1.3%, helped by 1.1% growth in same-store sales. RONA reports that the increase in same-store sales reflects the success of the repositioned Reno-Depot banner and a strong performance in Ontario and British Columbia. However, the company reported that difficult market conditions persisted in Alberta and Quebec.

The acquisition of the franchised stores, all except two of which are in Quebec, marked a move by RONA to take greater control of its big boxes following the repositioning of its Reno-Depot stores, which are also big boxes. That repositioning has proved successful in Quebec, and is being rolled out to other traditional RONA big box stores across the country.

RONA is looking for other ways to get a firmer hold on its future. The board has approved the repurchase of up to 8,496,028 common shares over the next 12 months, representing 10% of RONA’s public float, or 7.95% of its 106,904,501 common shares issued and outstanding on November 10, 2015. The company has been actively buying back shares and over the past 12 months has repurchased 9,207,281 common shares worth $125.7 million.

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Increased focus on building products at BMR buying show
QUEBEC CITY — Last week, Groupe BMR’s 2015 buying show welcomed its dealers at the Quebec City Convention Centre, where 500 partners and suppliers gathered to showcase their products.

Dealers walked the aisles of the three-day show, interacting with the vendors. The vendors HARDLINES spoke with reported that the show was quite busy and extremely productive. 

Bruno Baldessari, BMR’s vice president of purchasing for LBM, noted that this year’s show featured far more building products than before. One of the new LBM products showcased on the floor was a line of wall coverings. This category was traditionally housed downstairs but brought up to the main floor this year. The Agrizone, BMR’s line of farm and agriculture products, was moved downstairs for this year, but Baldessari noted that the plan for next year is to have the entire show on one floor.

During the gala on the final evening, in addition to the annual store awards, Groupe BMR CEO Pascal Houle took a moment to acknowledge and honour two employees, Jacques Pelletier and Jean St-Maurice, for their exceptional work this past year in integrating La Coop fédérée’s stores into the BMR fold.

“Jean and Jacques both have a passion for hardware and renovation,” said Houle. “Their hard work and determination helped us through this transition period.”

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CanWel makes change to new EWP supplier with care

BLAINEVILLE, Que. — CanWel Building Materials Division, the national lumber and building materials wholesaler, has recently changed one of its key suppliers. But it does not take that change lightly.

The company sent out a release recently announcing it had concluded a supply agreement with Louisiana Pacific to carry that company’s SolidStart line of engineered wood products in Canada. The line includes a wide range of joists, LVL (laminated veneer lumber), and LSL (laminated strand lumber) beams, which will be stocked in all 15 of CanWel’s distribution centres across the country.

In the coming months, CanWel will work with its customers, including all the major LBM buying groups, to help them transition to the new EWP lines.

The move to LP’s SolidStart lines marks a departure from a multi-year relationship with Boise Cascade. But according to Michel Walsh, national director of product management and marketing for CanWel’s specialty products, important product lines such as engineered wood EWP command long-term relationships—relationships that CanWel respects. He adds that CanWel values the relationship it had with Boise, to the point that he was reluctant to make a big deal in print about the change, beyond ensuring that customers were aware of it.

Boise was a good supplier, but a range of factors forced the change to LP. “The big change for us is that most of LP’s products are made in Canada. That wasn’t the driving factor, but it was certainly an important one,” says Walsh.

Most of all, Walsh wants to stress that CanWel prefers to keep its brands up front. “CanWel is a good conduit for those products. We want to build our business around those brands,” he notes. “That’s pretty much how CanWel is built and the integrity is in the brand. That’s what it’s all about.”

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High-tech is a high priority at Lowe’s
SAN FRANCISCO — A 3D printer in space is just the latest example of how Lowe’s is pursuing retail innovation through technology. The giant home improvement retailer will provide NASA with a 3D printer that will be used in the International Space Station. The device, built by a company called Made in Space, features the Lowe’s logo and will be used to create tools in space.

“It is the first hardware store in space,” Kyle Nel, executive director of Lowe’s Innovation Labs, told Space.com.

Besides partnering with NASA, Lowe’s has made other breakthroughs through its Lowe’s Innovation Labs, the retailer’s proprietary technology development centre. A “holoroom” that was introduced in a Toronto-area store late last year lets customers visualize how they could use tools and materials sold at Lowe’s.

Through a partnership with virtual reality technology provider Oculus VR and Google, Lowe’s has upgraded the holoroom and begun rolling it out in 19 stores across the U.S. this month.

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FROM THE ARCHIVES: This week in 1995
Following its acquisition of 122 Woolco stores a year earlier, Wal-Mart would continue aggressive expansion in Canada at a rate of five new stores a year. It was nipping at the heels of mass merchant market leader Zellers by putting pressure on prices. Plus: Ontario farm co-op Growmark was promoting its “Country Depot” banner at its latest show; and Canadian Tire money moves to Western Canada. Walk through memory lane with us by clicking here!

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