June 20, 2016 Volume

xxii, #25

“The true sign of intelligence is not knowledge but imagination.”
—Albert Einstein (German-born theoretical physicist, 1879-1955)

______________________________________________________________________

______________________________________________________________________

Lowe’s Canada announces new leadership team

BOUCHERVILLE, Que. — Lowe’s Canada has formalized its leadership team following its takeover of RONA inc. The new lineup includes some RONA veterans and at least one newcomer to the company. The reorganization reflects the company’s efforts to help drive Lowe’s Canadian business strategy with a new operating model focused on growth.

Coming from the RONA side, Alain Brisebois will work closely with the leadership team to define and implement the banner strategies. Guy Beaumier will lead the pro-contractor stores and Reno-Depot. Christian Proulx will lead human resources and communications. Serge Ethier will lead the proximity stores.

New to Lowe’s is Jim Caldwell, who joins effective today and will lead the big box business unit. Most recently, he was president of the Brick Group, Canada’s largest furniture retailer. He also worked for Wal-Mart in Canada. Caldwell will be the senior executive in place in Lowe’s Toronto office.

Finally, Brendan Hughes has moved up from Lowe’s U.S. office in Mooresville, N.C., to lead the alignment of the different banner strategies and head up the project management office and business intelligence.

“Our new structure will allow us to increase our focus on customers, allowing us to better co-ordinate our resources and efforts and to have a maximum impact on the segments we serve,” said Sylvain Prud’homme, president and CEO of Lowe’s Canada.

Titles for each of these individuals had yet to be finalized as of press time. They will all report directly to Prud’homme.

“Each member of the leadership team will play a key role, enabling us to maximize the potential of all of our banners to ensure strong growth across all of our different markets,” Prud’homme added. “Following Lowe’s recent acquisition of RONA, this team of seasoned experts will contribute to the alignment of our two organizations so we can become the number-one choice of Canadians for all their home improvement needs.”

Recruitment is currently under way to select a candidate to lead the administration function, including financial business support, accounting, and legal. 

Lowe’s Canada is now based in Boucherville, Que., and RONA inc. operates as a wholly owned subsidiary. Together, they operate about 535 corporate and independent affiliate dealer stores under different banners, namely Lowe’s, RONA, Reno-Depot, Ace, Marcil, and Dick’s Lumber. In Canada, the businesses have more than 24,000 employees corporately, as well as 5,000-plus employees in the stores of RONA’s independent affiliate dealers.

back to top

______________________________________________________________________

______________________________________________________________________

Orgill Concept Centre a hotbed for merchandise customization

MEMPHIS, Tenn. — Hardware wholesaler Orgill, Inc. doesn’t offer a specific banner program for its customers, but it takes the business of merchandising very seriously. It will even develop merchandising and layouts for existing customers and for its various regions.

The concepts are generated and laid out in a facility that’s a short drive from Orgill’s headquarters in Memphis. Called the Concept Centre, it is actually a former Milwaukee distribution centre with 240,000 square feet of space. Canadian customers who have attended Orgill’s buying shows in the U.S. will recognize store concepts such as “Kodiak Trail Hardware & Supply,” “North Lake Lumber,” and “Windsor Falls Home Centre” as formats with assortments tailored specifically for Canadian customers.

All those store formats were developed right at the Concept Centre.

The facility is also used for developing planograms for its private-label programs for products sourced through Orgill’s own Worldwide Sourcing channel. And it’s where planograms and merchandising are developed that will be shipped to each of Orgill’s own shows. “We build it, we crate it, and we ship it,” says Philip Walker, senior vice president, merchandising services for Orgill.

And the scale of that operation is something reminiscent of a Rolling Stones concert tour. “At any given dealer market, Orgill will ship up to 116 tractor trailers,” Walker explains. “That’s just to implement the 340,000-plus square feet of Orgill initiatives on display within the one-million-square-foot market.”

back to top

_________________________________________________________________

BMR has five-year investment plan that will start with Beloeil, Que., store

BOUCHERVILLE, Que. — Groupe BMR has made clear its mandate to grow its business, under the direction of Pierre Nolet, the newly appointed senior director−business development (see last week’s incredibly enlightening issue!—Editor). Based on its latest investment initiative, that growth strategy will include corporate stores as well as independent member-dealers.

The company is spending more than $1 million on its corporate store in Beloeil. The location, at 215 Brebeuf Street, will benefit from an expanded warehouse and shelter for building materials. The warehouse will be adjacent to the store, to improve access for customers. Work is expected to start in August and everything should be completed in December. The renovation centre will remain open during the work.

The expansion is part of a five-year investment plan by BMR to modernize its corporate stores to meet consumers’ changing needs. BMR is also working with various dealers that currently have development plans of their own.

“This investment will allow us to offer more building materials to meet our customers’ needs,” says Martin Lecomte, vice president of BMR’s retail division. “In addition to expanding our warehouse, we will add a heating system that will allow us to keep a larger selection of materials in inventory, which must be stored at a specific temperature to remain in good condition.”

BMR, now a subsidiary of La Coop fédérée, combines 325 renovation centres and hardware store in Quebec, Ontario, and the Maritimes, as well as on the French islands of Saint-Pierre et Miquelon.

back to top

______________________________________________________________________

____________________________________________________________________

Canadian Tire catalogue reflects slowdown of bricks-and-mortar in favour of digital sales

TORONTO ― Wow! Canadian Tire’s newly revived print catalogue has been driving—wait for it—the company’s online sales. And that’s just the result the giant retailer was aiming for.

Called the “Wow Guide,” the print catalogue revives a venerable Canadian Tire tradition that was ended nine years ago. The newest iteration was sent to 12 million households in Canada featuring products in a range of categories including outdoor living, sporting goods, tools, and automotive. The Wow Guide reflects a greater focus on digital sales, aimed at driving people to the Canadian Tire website.

According to company executives, that mission was accomplished. Just a week after the book was launched, online sales doubled, and CTR executives say they’ve learned a lot from the program. Another catalogue is planned for the fall.

Canadian Tire is slowing down the development of its bricks-and-mortar properties. With almost 500 Canadian Tire retail sites across the country, the chain is well-stored from a physical standpoint. Going forward, says Dean McCann, EVP and CFO of Canadian Tire Corp., the company is looking for ways to maximize the effectiveness of its existing retail space “and wrap it into e-commerce.”

back to top













































































































































































































































































































_____________________________________________________________________

CLASSIFIED ADS

Lee Valley Tools requires a Vice President, Retail Operations to lead a bright and vibrant team of store management professionals. The company is completely quality focused from its legendary customer service to it’s gold standard merchandise assortment and quality to its employee relations. For full details, please visit  http://tinyurl.com/jd6rqX8   
Competition closing July 1, 2016.

____________________________________________________________________

Sales Representative North Saskatoon

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

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

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

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

June 13, 2016 Volume

xxii, #24

“Few people do business well who do nothing else.”
—Philip Dormer Stanhope, fourth Earl of Chesterfield (British statesman, orator, and wit, 1694-1773)

______________________________________________________________________

______________________________________________________________________

Lowe’s execs visit Ace Canada HQ, affirm support for independents

TORONTO ― Lowe’s is best known for its big boxes, so its commitment to the smaller stores it now owns and serves, through the acquisition of RONA, has come into question. However, a tour this past week by Lowe’s executives to affiliated RONA dealers and corporate store managers throughout Western Canada did much to affirm that commitment.

The junket consisted of Sylvain Prud’homme, president and CEO of Lowe’s Canada; Alain Brisebois, chief commercial officer and executive vice-president; Christian Proulx, senior vice-president of human resources; and Dave Carr, vice-president of retail for Western Canada. First stop was the wholesale hardware distribution business in Winnipeg, Ace Canada (formerly TruServ Canada).

In a separate interview with HARDLINES, Prud’homme stated earlier this month that RONA has a lot of regional expertise and understands how to serve independent dealers. He added that Lowe’s “will continue to invest in the existing RONA team, under Philippe Element, which caters to the independents, and ensure that the team is big enough to support that independent base properly.”

And he had a message for dealers who may be wary of joining a group that also consists of one of their fastest-growing competitors. “Dealers have the chance to be part of the number-one choice for home improvement in Canada. It’s a great time to join and be part of this incredible growth opportunity.”

That message was reiterated in last week’s lunch meeting with the Ace Canada management. According to one source, he told the Winnipeg team, “We bought the network, because we want the network. Ace fits that network.”

back to top

______________________________________________________________________

______________________________________________________________________

BMR hires new dealer development leader

BOUCHERVILLE, Que. — Immediately following the takeover of Groupe BMR by La Coop fédérée, the home improvement buying group and wholesaler pulled right back on efforts to expand its dealer network, including cuts to its dealer development team.

A new hire suggests that could all change. BMR has appointed Pierre Nolet as senior director−business development. Effective July 11, he will report to Pascal Houle, CEO of BMR, and work with Jacques Pelletier, who currently holds the dealer development position. Pelletier will remain with BMR on a part-time basis as a consultant for special projects.

Nolet brings to the job a solid background on the retail side. He purchased his first BMR store in 2000 in Saint-Ferdinand, in the Centre-du-Québec region. He then expanded his business by buying the Plessisville BMR store in 2010, and the Disraëli and Thetford Mines stores in 2012. In 2014, he decided to join forces with the Coop des Appalaches and to head the retail division of the co-operative, which is now known as VIVACO groupe coopératif.

He will focus on the development of the hardware and LBM market and on the business relationships with BMR’s current dealers. Stéphanie Couturier, a spokesperson for BMR, adds that he will indeed have a mandate to develop the market outside Quebec, including opportunities in Ontario to develop the market and network.

And yes, she adds, BMR will actively woo RONA dealers.

back to top

_________________________________________________________________

Castle buying expo a winning formula for dealers and vendors alike

HUNTSVILLE, Ont. — Take 50 vendors and put them in a room with 50 dealers, add a timer and a bell, and you’ve got what might be the perfect model for a buying event.

Castle Building Centres Group puts on three of these “speed-dating” events: in Atlantic Canada, Ontario, and British Columbia. The Ontario event was held last week at Deerhurst Inn, a toney resort in the province’s Muskoka Lakes region, about 225 kilometres north of Toronto.

According to Ron Ishmael, senior hardlines buyer at Castle, each vendor gets 10 minutes with each dealer, and over the course of two days—interspersed with golf and other recreational activities—each vendor gets time with every single dealer in attendance. And, starting this year, the ordering can all be tracked digitally, using either a tablet or laptop.

Like a regular buying show, this one features show specials, a new product section, and even palette buys. “It’s putting the vendors and the members together,” says Ishmael, adding that the 10-minute time slot is very productive, as it keeps both sides focused on the presentation at hand. “We try and make it better for both the vendors and the members.”

Vendors interviewed by HARDLINES were equally enthusiastic and more than one observed that the costs and time involved in making sales calls to 50 dealers would be prohibitive, making this event a perfect fit for them. The event is even more remarkable for the fact that representation on both sides is typically the top people from each company.

The Ontario expo serves both Ontario and Quebec dealers. According to Castle President Ken Jenkins, with 30 Castle dealers in Quebec, that province will eventually have the critical mass to warrant an event of its own.

“The important piece for us is that the dealers are seeing every single vendor,” Jenkins says.

back to top

______________________________________________________________________

____________________________________________________________________

RONA team remains largely in place as Lowe’s does its due diligence

BOUCHERVILLE, Que. — The departure last week of one of RONA’s top executives drew attention to the changes happening in Boucherville as the company awaits the shakeout from the takeover by Lowe’s.

In fact, not much has changed. Rodier’s departure was a singular event, and not part of any larger restructuring. The only other senior people to leave were CEO Robert Sawyer and CFO Dominique Boies, whose departures had been planned in advance of the deal closing.

Christian Proulx, senior vice president of human resources for RONA, says the mood is positive at the RONA offices, even if it’s tinged with concern for the future. “Naturally, there is some anxiety of the unknown, but we’re looking forward to the future,” he says. “It’s exciting.”

Proulx points out that the head of Lowe’s Canada, Sylvain Prud’homme, is now CEO as well as president of Lowe’s Canada. Prud’homme has told the organization that he needs 60 days to analyze the RONA business before making decisions about leadership, structure, and buying teams. “We’re definitely in the process of looking at the business and creating a model for having these two businesses work together,” says Proulx.

He does not expect Lowe’s to come and slash management and other positions. “This is quite important and one of the key messages we are sending to our people: this is not a deal based solely on synergies. It’s deal based on growth.”

As for Rodier’s departure, Mario St-Louis, VP operations for RONA, is covering his role on an interim basis. St-Louis will be responsible for the entire retail side of RONA for now. Within the RONA buying team, the only confirmed senior departure is by Charles Gregoire-Beliveau, who has moved over to Groupe BMR (see PEOPLE section).

“Besides that, there’s no change. We’ve told people, until something is communicated, everyone will continue doing the same jobs unchanged.” He says another 40 senior managers remain on board.

back to top








































































































































































































_____________________________________________________________________

Gino DiGioacchino, formerly chief merchandising officer at Walmart Canada, left last week. He started at Walmart Canada in 2011, after six years at Home Depot Canada, most recently as VP of merchandising. His replacement is Bertrand Loumaye, who was most recently SVP supercentre reinvention and prototype at Walmart Canada. DiGioacchino’s move follows the departure of Mark Coffey, Walmart Canada’s senior vice president-merchandising operations, a few weeks earlier.

Charles Gregoire-Beliveau has left RONA, where he had been merchandise director for seasonal, heating, electrical, and horticulture, and joined Groupe BMR as purchasing director−retail.

Globe Union has announced the promotion of Janet Oh to president–North American Private Brands, reporting to Charles Frankel, group chief commercial officer of Globe Union Services, Inc. As president, Oh, who joined the company in 2003, will have commercial responsibility for all of the company’s North American private-brand business channels, including plumbing wholesale, retail, and importers, as well as maintaining responsibility over big box and club channels.

Andrew Jessome has been appointed director of sales for Atlantic Canada at Metrie. A native of Dartmouth, N.S., he started with Metrie more than 16 years ago as territory manager for New Brunswick and Prince Edward Island. Most recently, he served as sales manager in the company’s Brampton, Ont., location. Jessome will relocate to Nova Scotia over the coming weeks. (andrew.jessome@metrie.com)

back to top




































































































_____________________________________________________________________

CLASSIFIED ADS

HOME HARDWARE STORES LIMITED
RETAIL SALES AND OPERATIONS MANAGER – NORTHERN ONTAIRO

About Home Hardware:
Home Hardware Stores Limited is Canada’s largest Dealer-owned cooperative with close to 1,100 Stores and annual retail sales of nearly $5.8 billion.  Located in rural St. Jacobs, Ontario, Home Hardware remains 100% Canadian owned and operated.  Home Hardware has received designations as one of Canada’s Best Corporate Cultures and Best Managed Companies and is committed to providing local communities with superior service and expert advice.

Job Description:
Responsible to the Director, Retail Operations Northern and Eastern Ontario for the implementation of Home Hardware’s strategic growth plan, as well as, developing, expanding and supporting company programs in the area by providing store assistance, recommendations and standards, by encouraging profitable store expansion and growth, by seeking Dealer and company growth opportunities and initiatives in both new and existing markets and across all banners, and by making recommendations concerning product selections.
Assists and educates new and existing Dealer-Owners.
Prepares and submits quarterly industry updates and objectives.
Evaluates stores on an annual basis.
Conducts Sales and Dealer meetings.
Visits Dealers on a scheduled basis providing guidance and assistance, serving as a liaison between them and Home Office and building strong valuable relationships with Dealer-Owners and store Staff.
Maintains an up-to-date knowledge in retail methods and systems.
Coordinates occasional direct ship buys between area stores.
Assist with special projects as requested.

Qualifications:
Results-oriented individual with a strong understanding of retail operations and the strategy needed to succeed in a highly competitive market.
Must be self-motivated, results-oriented and organized, with excellent time management skills.
Post-secondary education or equivalent.  Business financial knowledge would be an asset.
Retail or sales experience at a supervisory or managerial level.  Home Hardware experience preferred.
Willingness and flexibility to travel extensively and work varying hours.
Excellent communication and leadership skills.
Knowledge of Account Management an asset.
Good computer skills including MS Outlook, Word and Excel.
Successful applicant must be willing to locate centrally within the area.
Bilingual candidate an asset.

Interested applicants, please submit your resume to:
Dayna Weber, Recruitment, Human Resources
hr@homehardware.ca

Fax: 519-664-4711
Phone: 519-664-4975
34 Henry St W, St. Jacobs, ON, N0B 2N0
Deadline:  Monday, June 13, 2016

*While we appreciate all applications received, only those to be interviewed will be contacted.

____________________________________________________________________

June 6, 2016 Volume

xxii, #23

“To be prepared is half the victory.”
— Miguel de Cervantes (Spanish soldier and novelist, 1547-1616)

______________________________________________________________________

______________________________________________________________________

Despite challenges, home improvement industry poised for solid year

SPECIAL REPORT ― If the first quarter of the year has returned strong sales for a number of dealers, the warm weather may be only part of the story. In fact, the first quarter of 2015 was very slow, with much of the country buried under snow well into the first part of the year. That gave many dealers nowhere to go but up.

Adding to the uncertainty about what is in store for the rest of 2016 and beyond is the fallout from a couple of the largest deals to occur in this country in two decades: the acquisition of Chalifour Canada by Memphis-based hardware wholesaler Orgill, Inc., and the takeover of RONA inc. by the world’s second-largest home improvement retailer, Lowe’s Cos.

While the initial growth in 2016 may come with caveats, many dealers are optimistic about the remainder of the year, despite the meltdown of the energy-based economy in Alberta—further exacerbated by the fiery destruction of Fort McMurray—and CMHC’s forecasts for slower housing starts this year.

Initial statistics gathered by HARDLINES indicate that most regions reported at least some increase in sales for the first quarter, with the exception of Alberta and the far north. Even Ontario dealers reported mixed results for the start of the year, as job action by some trades has had an impact on sales by commercial dealers. However, most dealers―again with the exception of many in Alberta―anticipate an increase overall in sales for 2016.

While the good weather so far this year may have helped sales on the building supply side, it slowed seasonal sales for retailers hoping to move shovels and snow blowers and ice-melt products during the latter part of the winter. Canadian Tire dealers, for example, spent the first months of the year switching out winter products for patio sets, gardening supplies, and backyard categories as the weather changed around them, depending on the region they were in.

Meanwhile, both Lowe’s and Home Depot Canada continue to pursue a multi-pronged approach to sales, one in which e-commerce figures very strongly. Both companies are also focused on growing their contractor business, posing yet another threat to independents.

(HARDLINES will host our 2016 Annual Hardlines Retail Conditions Breakfast, June 21 at the Hilton Mississauga Hotel. This will be an intimate, interactive session with HARDLINES Editor Michael McLarney. Get help planning for 2017 in an intimate Q&A session where we’ll share how much the industry has grown, shed light on the Lowe’s/RONA deal, and discuss Orgill’s growing presence in Canada. Join us for HARDLINES’ forecasts for 2016 and beyond! Space will be extremely limited for this event, so click here to register today!)

back to top

______________________________________________________________________

______________________________________________________________________

Patrick Morin to invest $25 million to expand DC, add stores

ST-ANCIENNE-LORETTE, Que. — At a time when many retailers are struggling to hold their share in the Quebec market, family-owned banner Groupe Patrick Morin has announced a bold plan to invest $25 million in strengthening its position through new stores—and possible acquisitions.

The project will expand the footprint of the company’s Saint-Paul-de-Joliette distribution centre by 50,000 square feet, as well as creating a new 300,000-square-foot DC for higher-tech materials. The expanded distribution network will serve the increased number of stores the company has planned, with its 21st store opening in Saint-Eustache next year and more in the works.

As more stores are added, says General Manager Daniel Lampron, “the distribution centre we have now will be too small.” He adds that the management team still sees opportunities for growth in Quebec. “For us, business is going well in a market that is not easy,” he told HARDLINES. “We’re still growing our piece of the pie. Our business model, our customer service—these are all things that help us.”

External factors also contribute to Patrick Morin’s positive outlook. With Lowe’s takeover of RONA, Lampron points to “confusion” in the market that is leaving merchants “a little bit scared.” The climate could be favourable for new acquisitions, in addition to the opening of new stores, he says.

The incentive to grow is as much stick as carrot: Canac, the banner’s similarly sized and closest competitor, is expanding its regional reach. “There are a lot of regions in Quebec where we aren’t yet,” Lampron acknowledges. “Canac is coming closer to the Montreal region; we see opportunities there, as well.”

As reported last month in HARDLINES, the banner, a member of the Independent Lumber Dealers Co-operative, has been expanding its product offerings in an effort to keep customers coming into stores as online competition continues to heat up. Lampron told HARDLINES at the time that Patrick Morin would be checking with other ILDC members to see how any new inventory it considers is selling before taking it on.

Last fall, Lampron and President Denis Morin hit back against reports that the banner was facing a takeover, reiterating the company’s growth strategy. For now, Lampron says the group is doing its bit for Quebec’s economy by adding 100 new jobs by the end of this year—with more to come.

back to top

_________________________________________________________________

Post-takeover, expect aggressive growth of both Lowe’s and RONA banners

TORONTO ― RONA is the dominant hardware and home improvement brand in Quebec, with close to a 30% market share (source: Hardlines Market Share Report). As a result, Lowe’s will think carefully about even introducing the Lowe’s name into the province. When asked about that possibility, Lowe’s Canada President Sylvain Prud’homme said, “I don’t think so.” But, he added, “We’re keeping the door open.”

Prud’homme is keen to see more big boxes in that province, however. He says RONA is doing a lot of things right already with its big box stores, and cites the Reno-Depot banner as a winner. Even now, RONA is working on some new ideas for its big boxes, with a test store in Anjou being readied for a reboot.

Both Lowe’s and RONA have aggressive expansion plans: Lowe’s bought up 13 former Target stores, plus its distribution centre in Milton, Ont., in May 2015 and is working hard to convert those outlets to Lowe’s. In addition, it is continuing to develop greenfields sites of its own. At the same time, RONA has been spending the last four years getting its financial house in order. This included acquiring 17 big box stores in Quebec, all of which were owned by independent, or franchise, dealers. The company has also been active working with its independent dealers to help them grow their respective businesses.

So the market can expect both sides of the business to continue parallel expansion strategies―at least for the near term. “We’re tackling the future retail network,” says Prud’homme, “and growth is important.” But, he adds, the integration will not be a one-size-fits-all approach. “It’s not a consolidation. It’s a co-ordination.”

While he may be using more nuanced language to describe the merger of the two companies, his meaning quickly becomes clear: both sides will learn from each other, cross-pollinate with retail ideas, and encourage mutual growth. For example, he says, Lowe’s will lend its expertise in selling appliances, and its sophistication in online sales to the RONA side of the business.

back to top

______________________________________________________________________

____________________________________________________________________

Home Depot wants more online assortments, faster delivery times

ATLANTA — Home Depot executives are anxious to grow the company’s online business, and see its exclusive range of products, as well as rapid delivery times, as keys to that success.

Speaking at the recent RBC Capital Markets Consumer and Retail Conference, Richard McPhail, SVP of finance, noted the importance of vendors to getting product into customers’ hands. “From a product perspective, we have incredible vendor partners and we are incredibly important to each other. They support our online business with great product that you can only find at The Home Depot.”

He added that many of those exclusive products are aimed at pro and contractor customers.

McPhail said Home Depot’s goal is be able to deliver products within two days to about 90% of the population. “That’s not all [the] SKUs that we offer on Homedepot.com, but we are the destination where people expect Home Depot to carry the dominant brands and dominant product. We are going to deliver speed as part of the value proposition too.” (With transcripts from Seeking Alpha)

back to top








































































































































































































_____________________________________________________________________

Luc Rodier, executive vice president of retail at RONA, is no longer with the company. Rodier was there for 11 years, most recently as one of the key senior executives on the turnaround team, under CEO Robert Sawyer, leading up to RONA’s takeover by Lowe’s.

The Retail Council of Canada conferred Awards of Distinction on 13 retail innovators last week at RCC’s STORE 2016 conference in Toronto. The Lifetime Achievement award was presented to Louise Wendling, former Costco Canada country manager, “for demonstrating outstanding business success and community service throughout her career.”

back to top




































































































_____________________________________________________________________

CLASSIFIED ADS

HOME HARDWARE STORES LIMITED
RETAIL SALES AND OPERATIONS MANAGER – NORTHERN ONTAIRO

About Home Hardware:
Home Hardware Stores Limited is Canada’s largest Dealer-owned cooperative with close to 1,100 Stores and annual retail sales of nearly $5.8 billion.  Located in rural St. Jacobs, Ontario, Home Hardware remains 100% Canadian owned and operated.  Home Hardware has received designations as one of Canada’s Best Corporate Cultures and Best Managed Companies and is committed to providing local communities with superior service and expert advice.

Job Description:
Responsible to the Director, Retail Operations Northern and Eastern Ontario for the implementation of Home Hardware’s strategic growth plan, as well as, developing, expanding and supporting company programs in the area by providing store assistance, recommendations and standards, by encouraging profitable store expansion and growth, by seeking Dealer and company growth opportunities and initiatives in both new and existing markets and across all banners, and by making recommendations concerning product selections.
Assists and educates new and existing Dealer-Owners.
Prepares and submits quarterly industry updates and objectives.
Evaluates stores on an annual basis.
Conducts Sales and Dealer meetings.
Visits Dealers on a scheduled basis providing guidance and assistance, serving as a liaison between them and Home Office and building strong valuable relationships with Dealer-Owners and store Staff.
Maintains an up-to-date knowledge in retail methods and systems.
Coordinates occasional direct ship buys between area stores.
Assist with special projects as requested.

Qualifications:
Results-oriented individual with a strong understanding of retail operations and the strategy needed to succeed in a highly competitive market.
Must be self-motivated, results-oriented and organized, with excellent time management skills.
Post-secondary education or equivalent.  Business financial knowledge would be an asset.
Retail or sales experience at a supervisory or managerial level.  Home Hardware experience preferred.
Willingness and flexibility to travel extensively and work varying hours.
Excellent communication and leadership skills.
Knowledge of Account Management an asset.
Good computer skills including MS Outlook, Word and Excel.
Successful applicant must be willing to locate centrally within the area.
Bilingual candidate an asset.

Interested applicants, please submit your resume to:
Dayna Weber, Recruitment, Human Resources
hr@homehardware.ca

Fax: 519-664-4711
Phone: 519-664-4975
34 Henry St W, St. Jacobs, ON, N0B 2N0
Deadline:  Monday, June 13, 2016

*While we appreciate all applications received, only those to be interviewed will be contacted.

____________________________________________________________________

May 30, 2016 Volume

xxii, #22

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

______________________________________________________________________

______________________________________________________________________

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

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

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

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

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

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

back to top

______________________________________________________________________

______________________________________________________________________

Lowe’s Canada president outlines RONA consolidation strategy

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

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

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

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

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

back to top

_________________________________________________________________

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

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

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

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

back to top

______________________________________________________________________

____________________________________________________________________

Disappointed with sales, Canadian Tire pulls urban test store

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

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

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

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

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

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

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

back to top








































































































































































































_____________________________________________________________________

CLASSIFIED ADS

Sales Representative North Saskatoon

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

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

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

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

____________________________________________________________________

May 23, 2016 Volume

xxii, #21

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

______________________________________________________________________

______________________________________________________________________

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

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

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

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

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

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

back to top

______________________________________________________________________

______________________________________________________________________

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

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

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

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

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

back to top

_________________________________________________________________

Outstanding retailers will be honoured at Hardlines Conference

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

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

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

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

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

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

back to top

______________________________________________________________________

____________________________________________________________________

Canuck vendors keep busy at the National Hardware Show

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

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

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

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

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

back to top








































































































































































































_____________________________________________________________________

CLASSIFIED ADS

Sales Representative North Saskatoon

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

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

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

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

____________________________________________________________________

May 16, 2016 Volume

xxii, #20

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

______________________________________________________________________

______________________________________________________________________

Innovation front and centre at Vegas hardware show

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

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

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

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

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

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

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

back to top

______________________________________________________________________

______________________________________________________________________

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

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

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

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

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

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

back to top

_________________________________________________________________

RONA will host show in Montreal for affiliated dealers

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

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

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

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

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

back to top

______________________________________________________________________

____________________________________________________________________