July 20 2015

Hardlines Weekly Newsletter

READING THIS ON A MOBILE DEVICE? CLICK HERE FOR THE MOBILE EDITION!

IN THIS ISSUE:

RONA to acquire its franchise stores in Quebec and Ontario
Deadline approaching for Outstanding Retailer Award entries
Big boxes seek new ways to woo pros
PLUS: RONA to open in Langley, B.C., Home Hardware sweeps truck championships, Amazon pushes Prime service, Epicor’s Eagle N Series wins gold, Acceo acquires Gemmar Systems, Boynton now director of merchandising at TSC, housing starts—and more!

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DID YOU KNOW…

…we have a full range of reports to help you with your planning? The Hardlines Retail Report
gives you deep analysis of the key retail players while charting the growth of the industry, with forecasts for the years ahead. The Who’s Who Directory is our full listing of the retailers, buying groups, co-ops and wholesalers, including buyers and their duties. Coming next month: our Hardlines Market Share Report! Get all three Reports for only $1,500 and you’ll save more than $300!

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RETAILER NEWS

LANGLEY, B.C. — RONA will open its next store near the bypass in Langley, in British Columbia’s Lower Mainland. Touted as a new format, the 50,000-square-foot store will feature aspects of both of RONA’s big box models, Reno-Depot and RONA Lawn & Garden. It will have a soft opening in the first week of August.

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ST. JACOBS, Ont. — At this year’s Ontario Truck Driving Championships in London, Ont., Joe Kuntz, a driver with Home Hardware Stores, was named grand champion. Home Hardware drivers won nine of the 22 awards presented at the competition. William Wolfe and Bryon Winfield were awarded second and third in Single-Tandem, respectively, and Darryl Smith was fourth in the B-Train class.

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SEATTLE — Amazon declared July 15 as its first “Prime Day,” offering “more deals than Black Friday,” but only to those who pay the $99 annual subscription for Amazon Prime. Held on the occasion of Amazon’s 20th anniversary, the event is designed to boost Prime membership. Purchases tend to skyrocket once a customer signs on for the service, which includes unlimited video streaming and two-day delivery on most purchases.

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SUPPLIER NEWS

AUSTIN, Texas — Epicor Software Corporation’s Eagle N Series retail business management software won the gold for best new product at the 2015 IT World Awards. Network Products Guide, a technology research advisory guide, recognized the winners in a ceremony in San Francisco on June 29. Epicor Eagle N Series software features technology designed for small to mid-sized retailers that focuses on wireless and mobile tools, special-order processing, plus integrated inventory management, purchasing, and receiving.

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MONTREAL — Information technology provider Acceo Solutions Inc. has acquired the Canadian and American assets of Gemmar Systems International Inc. GSI provides retail management platforms, including POS, store operations, merchandise management, and integrated e-commerce. This is Acceo’s third acquisition in recent weeks. The company expects the deal to grow Acceo’s retail sector offering while increasing its presence in the Canadian and U.S. markets. The deal also lets Acceo extend its expertise in e-retail and payments.

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ST-JEROME, Que. — Riobel Inc.’s head office will undergo a 34,000-square-foot expansion, bringing its total floor space to more than 100,000 square feet. The move is the latest in a series of expansions for the faucet and shower manufacturer. In addition, the company is looking to overhaul its floor space to improve productivity and ergonomics. Riobel’s sales reached an all-time high in March.

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PEOPLE ON THE MOVE

Robert Boynton is now director of merchandising at TSC Stores LP in London, Ont. He was formerly at Wal-Mart Canada Corp., where he spent 13 years, most recently as senior director of merchandising for automotive, hardware, and paint.

CPG Building Products has appointed Julia Fitzgerald as chief marketing officer, overseeing the company’s AZEK and TimberTech brands. CPG specializes in outdoor building products, and its AZEK and TimberTech brands include trim, decking, railing, moulding, and pavers.

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ECONOMIC INDICATORS

Housing starts climbed to 202,818 units seasonally adjusted in June, up from 196,981 units in May. Urban starts increased by 3.2% in June to 188,720 units seasonally adjusted. Multi-unit urban starts increased by 3.7% to 130,933 units in June, while the single-detached urban starts segment increased by 2% to 57,787 units. In June, urban starts increased in British Columbia, Quebec, the Prairies, and Atlantic Canada, while it decreased in Ontario. (CMHC)

Sales by large retailers of hardware and home renovation products in May were up 7% from April, and down 4% year over year. The Lawn and garden products, equipment and plants sector was up a healthy 83% from April, and up 6.7% from May 2014.(StatCan)

U.S. housing starts in June reached 1,174,000 seasonally adjusted, up 9.8% from May and up 26.6% from June 2014. Most of that activity came from multiple starts, which were up 29.4% from the previous month, while single-family starts increased by only 0.9%. Building permits in June were up 7.4% to 1,343,000 and up 30% from the same month a year earlier. (U.S. Commerce Dept.)

Investment in non-residential building construction decreased 0.8% to $12.8 billion in the second quarter, marking the second consecutive quarterly decline. The decrease resulted from lower spending on the construction of commercial and industrial buildings. Overall, total investment decreased in six provinces in the second quarter, with Quebec registering the largest decline, followed by Saskatchewan. Ontario, British Columbia, Newfoundland and Labrador, and Nova Scotia posted slight increases. (StatCan)

OVERHEARD…

“The pro continues to grow faster than the rest of the home improvement market, and we strive to provide pros with great service that makes doing business with Lowe’s as quick and convenient as possible.”—Michael Jones, Lowe’s chief customer officer, in a conference call with analysts earlier this year.

July 20, 2015 Volume

xxi, #29

“Those who look only to the past or present are certain to miss the future.”
—John F. Kennedy (35th President of the United States, 1917-1963)

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SUMMER PUBLISHING SCHEDULE

There will be no weekly edition of HARDLINES on August 3, 17, or 31. The World Headquarters will remain open, however, during this time. The regular weekly schedule will resume September 7.

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RONA to acquire its franchise stores in Quebec and Ontario

BOUCHERVILLE, Que. — After six months of negotiations, RONA inc. has signed a letter of intent to acquire the 20 franchise stores in its network. Those stores consist of 15 big box L’éntrepôt stores and three RONA proximity stores in Quebec, plus two big box RONA Home & Garden stores in Ontario—in the Nepean and Gloucester communities of Ottawa. Together, they represent more than $500 million in retail sales.

The company’s stated purpose for making the acquisition is further consolidation in an effort “to simplify our business model and focus on the sales of our independent dealers,” according to President and CEO Robert Sawyer.

Luc Rodier, executive vice president at RONA, offered more details in an interview with HARDLINES. The stores are all well run and very profitable, he notes, adding that they have been operated by “very, very good dealers; very strong supporters of the RONA brand.” But the new structure, he says, will make RONA more responsive and efficient by removing a layer of management. The move, he insists, is aimed at simplifying the business and increasing RONA’s profitability, and not a play to prepare the company for sale.

Ownership of the 20 franchise stores is currently spread over nine different retail groups, some of which are family operations. Four of those groups will continue to own and operate multiple RONA proximity stores. While Rodier wouldn’t provide details, he insisted the deal would preclude any of the groups from opening new stores under other banners.

The franchise stores represent a partnership RONA struck with some of its biggest members when the company decided to enter the big box market in 1994. It did so with what was, at the time, a unique strategy: allying with independents to help them build big boxes of their own to compete against the incursion of Home Depot and other large-surface chains at the time.

With this deal, RONA will have 236 corporate stores. Seventy-nine are big boxes, with 60 operating as either RONA Home & Garden in anglophone markets or RONA L’éntrepôt in Quebec. Another 19 big boxes operate as Reno-Depot. In addition, RONA has a strong network of 275 independent “affiliate” dealers that source their products from RONA’s distribution network. In total, RONA will have 511 stores.

Rodier says the new structure will also let RONA focus better on those remaining affiliate dealers, which are located across the country.

(Click here for a full listing of store sites.)

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Outstanding Retailer Awards: deadline in two weeks!

WORLD HQ, TORONTO — The Outstanding Retailer Awards 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 23-year history, the program has honoured more than 140 retailers. Now it’s your turn!

All Canadian home improvement retailers that have operated under the current ownership for at least two years are eligible to enter their stores. But the deadline is 5 p.m. EDT, July 31, so act now to get your entry in!

Dealers may submit their entries directly, while chain and buying group head offices may select their best dealer(s) and prepare their entries for them, in collaboration with the dealer. Head offices may enter more than one store per category. Vendors can get involved, as well, by identifying specific outstanding retailers for entry.

Categories to enter:
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 This award is open to all stores. Its purpose is to celebrate the outstanding contributions/events, charitable donations, etc., made by a store’s staff/managers/owners to the community they serve.
6. Best Large Surface Retailer (over 65,000 square feet)
7. Best Contractor Specialist Store

It’s easy to enter. You can submit your entry online or print out this 2015 ORA PDF Entry Form or ORA Word Document Entry Form. If you send hard copy, submit your entry in a three-ring binder containing text and photographs describing your business successes.

Remember: deadline for entries is July 31, 2015 by 5:00 pm EDT. Winners and their banners or buying groups will be notified shortly after the judging, by a panel of industry professionals, is completed.

Award recipients will be honoured at the 2015 Outstanding Retailer Awards Gala Dinner on October 21, 2015, at the Westin Bristol Place Toronto Airport Hotel and Conference Centre, as part of the 20th Annual Hardlines Conference. Tickets and tables for the Gala can be purchased at www.oras.ca or by calling 416-489-3396.

(If you have any questions, please contact our Editor, Michael McLarney, at 416-489-3396, ext. 1, or mike@hardlines.ca.)

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Big boxes seek new ways to woo pros

SPECIAL REPORT — Both Home Depot and Lowe’s are looking for ways to attract customers who have typically been the domain of independents: contractors and pros.

Lowe’s has been putting emphasis on what it calls “pro-heavy categories,” watching sales in some categories grow by double-digits through the first part of 2015. Those products include siding, power tools, commercial lighting, fencing, and power tool accessories. In addition, pressure-treated decking, compressors, windows, tile-setting materials, concrete, board, insulation, and fasteners have all had comps above the company average.

Lowe’s own field merchants, supported by the company’s planning and assortment tools, are constantly refining assortments. Some product categories are sourced nationally and some are sourced regionally, based on customer preference. A delivery program is currently being piloted in a couple of markets in the U.S. that would reduce wait times for pro customers, offering two-hour, four-hour, and next-day delivery options.

The push to capture the pro customer may be going faster in the U.S. than here. There, it’s estimated to be as high as 35% of the business for Lowe’s and Home Depot, while in Canada, pro sales are estimated to be closer to one-quarter of sales (source: 2015 Hardlines Retail Report). At one of its newest stores, in Brampton, Ont., Home Depot’s amenities for contractors are clearly evident, such as a revamped checkout with more space to get large orders through. An order area for pros has terminals with computer screens and electronic card readers.

Mark Getty, Home Depot Canada’s regional vice president for Eastern Canada, says, “There’s room to grow our pro business. We’re making it a lot easier to park—and we have a drive through.”

Lowe’s is likewise wooing the contractor customer in Canada with revamped assortments of key products, including flooring, while at the same time reducing other categories, such as cleaning and consumables.

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CLASSIFIED ADS

Fusion Products Limited General Manager

Fusion Products Ltd. is a leading supplier of landscape lighting to North America retailers, with head office in Mississauga, Ontario. We are seeking a dynamic individual to fill this role. You will report to the owners and:
· be responsible for successfully directing all facets of our business.
· have a financial background, HR experience and strong leadership style.
· have industry sales experience to manage key accounts, a sales team and client base to achieve sales and financial goals
· be familiar with supply chain management, Asian factory import experience and product development skills.

Experience required:
· Post-secondary education in Business and/or equivalent experience,
· 3+ years operational experience at an equivalent level
· Strong distribution experience in the hardlines channel,
· Strong organizational, interpersonal and computer skills,
· Vendor and third party contract management experience,
· Ability to travel,
· desire to exceed customer expectations

Competitive compensation package is offered. To apply for this exciting opportunity, please send your resume and cover letter to: zaf@fusionproducts.ca

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POSITION AVAILABLE

SALES ANALYST – RETAIL

We have an immediate opening for a Sales Analyst in our Retail group.

Reporting to the Director of Retail Sales, you will work together with the Sales Team to analyze specific account(s) and their sales growth, account planning and results within the team. You will work with the Sales Team to drive engagement with customers in order to grow relationships, and achieve sales results, profit and market share targets.

Responsibilities will include, but not be limited to the following:

Ensure monthly and quarterly sales targets are tracked with assigned accounts/products.
Work with the Sales Team to assist on development and execution of account plans, budgets, forecasts, promotional planning and pricing. Also coordinate internally with all stakeholders to achieve objectives with Supply Chain, Marketing and Finance.
Provide timely responses to customer questions and daily feedback as required.
Assist the Sales Team to collaborate with stakeholders and accounts on joint business planning, brand and promotional planning and messaging, in-store merchandising and retail sales execution.
Analyze high priority account performance monthly
Work closely with marketing to maximize sales results and new initiatives with each specified account.
Manage and analyze weekly product forecast by model by account and ensure inventory forecast matches promotional calendar by account.
Must be able to analyze and provide feedback on weekly, monthly, quarterly forecast numbers by category by model.
Work closely with the Director of Sales to strategically grow our Quebec retail business.

Requirements:

Knowledge of Plumbing products and competitors.
Strong communication skills in both English and French
High Level Proficiency (Intermediate to Advanced) in Excel, Word, PowerPoint.
2-5 years industry experience in the Home Improvement sector.
Must be capable of planning, organizing and prioritizing multiple projects and assignments.
Must be highly self-motivated and capable of team/independent work.
Looking for a career growth plan in sales.
Valid Driver’s License

Additional Skill Requirements:

Ability to prioritize work load efficiently and effectively
Previous Sales experience in Home Improvement products
Accuracy and attention to detail
Excellent attendance record
Effective Team Player

Location: Head Office in St. Thomas Ontario, Sales & Marketing Office, Mississauga Ontario
Interested candidates should submit your resume with cover letter to recruiting@mascocanada.com
Final date for submissions is July 30th, 2015

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© 2015 by HARDLINES Inc.
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— Editor & President — mike@HARDLINES.ca
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July 13 2015

Hardlines Weekly Newsletter

READING THIS ON A MOBILE DEVICE? CLICK HERE FOR THE MOBILE EDITION!

IN THIS ISSUE:

Home Hardware sees big potential for growth in Quebec
CanWel completes acquisition of California distributor
Economy holds “steady as she goes” says expert
NRHA study measures importance of local independents
PLUS: Home Hardware acquires a new Northern Ontario store, Castle Building Centres adds a Newfoundland dealer, Walmart Canada pilots an order online, pick up in store grocery service, Goodfellow and CertainTeed form a new partnership, Tremco announces a new Canadian acquisition—and more!

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DID YOU KNOW…

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RETAILER NEWS

ST JACOBS, Ont. — Home Hardware will acquire North American Lumber’s Red Lake store in Ear Falls, Ont., northwest of Thunder Bay. The news follows the winding down of North American Lumber’s retail operations in the spring. New owner J.D. Blazek is looking forward to taking advantage of more than 8,000 square feet of new retail and warehouse space. The store has served the Red Lake area for over 50 years.

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MISSISSAUGA, Ont. — Castle Building Centres has announced the addition of Gander Bay Building Supplies, in the Victoria Cove neighbourhood of Gander Bay, Nfld. Owners Todd and Debbie Brinson took the helm at the business, which has a 30-year history in the location, in 2007, and operate it along with four staff. The 6,000-square-foot store mainly serves rural contractors and DIY customers.

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MISSISSAUGA, Ont. — Walmart Canada is piloting in-store pickup for online grocery orders in the Ottawa area, less than a month after rolling out grocery e-retail offerings in Barrhaven. In addition to the Barrhaven location, shoppers will be able to pick up online grocery orders at the banner’s two Kanata locations, and in Carleton Place, Renfrew and Pembroke. The pilot will be extended to the remaining Ottawa stores later this month.

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SUPPLIER NEWS

MISSISSAUGA, Ont. — Goodfellow Inc. and CertainTeed Insulation Group Canada, a world-class manufacturer of exterior and interior building products, have announced a new partnership. This distribution agreement ensures that CertainTeed Insulation products will be available throughout Canada, including in smaller locations that cannot handle full truckloads of materials. Goodfellow serves all regions of Canada and in the coming weeks will maintain a complete inventory of CertainTeed Insulation products at its Regional Distribution Centres in: Deer Lake, Nfld.; Dartmouth, N.S.; Moncton, N.B.; Quebec City; Delson, Que.; Ottawa; Campbellville, Ont.; Saskatoon; Winnipeg; Calgary; Edmonton; and Vancouver.

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BEACHWOOD, Ohio — Tremco Group has announced the acquisition of Chemtron Manufacturing, a Calgary-based maker of construction adhesives, sealants, and tapes, for an undisclosed sum. The business will operate as Chemtron International, in close co-operation with Tremco’s Commercial Sealants and Waterproofing Division. In addition to its headquarters and 52,000-sq.-ft. manufacturing plant in Calgary, Chemtron also has a distribution facility in Edmonton. The company has been jointly owned by brothers, Glenn and David Molnar. Glenn will join Chemtron International, Inc. as general manager and vice president – sales, and his son, Courtland, will take on the role of product line manager.

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PEOPLE ON THE MOVE

Henkel Canada is pleased to announce their latest Lepage Ambassador. Andrea Heffernan joined the growing team as the Regional Account Manager, responsible for Ontario. Andrea reports to the Sales Director, Shelly Mlynarczyk. (416-347-4102, andrea.heffernan@henkel.com).

Luke Ticknor has joined DAP Canada as the Marketing Manager for Canada. Luke will be responsible for all DAP Canada Marketing initiatives, including strategy, product, and promotion. (1-800-668-9397, lticknor@dap.com).

Tom Newton has left Loxcreen Canada Ltd. as VP Sales & Marketing to join Dahl Brothers Canada Ltd. as VP Sales & Marketing.
(1-905-822-7414 ext. 220, ktomn@dahlvalve.com).

Doug Keeling, previously a buyer for LBM, lawn and garden, carpet and floor coverings, and paint with Castle Building Centres Group, has left Castle for Spectrum Brands, taking on the role of National Account Manager for CanWel, Orgill, and the Octo Buying Group and its members. (1-905-361-7336, doug.keeling@spectrumbrands.com).

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ECONOMIC INDICATORS

The New Housing Price Index (NHPI) rose 0.2% in May, following a 0.1% increase in April. Gains in Ontario and Saskatchewan were moderated by declines in Quebec.The combined region of Toronto and Oshawa (+0.5%) was the top contributor, recording the largest monthly price advance among the census metropolitan areas (CMAs) covered by the survey. Builders reported market conditions and higher land development costs as the primary reasons behind the gain, the largest in the region since April 2014.(StatCan)

The decline in the production of crude oil and equivalent products in April compared with the same month in 2014 was led by synthetic (-7.0%), light and medium (-10.0%) and heavy crude oil (-8.9%). The decline in synthetic crude oil to 3.9 million cubic metres was in part the result of unplanned maintenance shutdowns at two Alberta upgrading facilities. These declines were partially offset by a 9.5% increase in the production of crude bitumen to 6.3 million cubic metres compared with the same month a year earlier. (StatCan)

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OVERHEARD…

“We have a long way to go in e-commerce and we’ve got to do it in a short amount of time.”—Michael Medline, president and CEO of Canadian Tire Corp. He spoke recently at an analysts’ conference in Toronto about the giant effort Canadian Tire is putting into online selling.

July 13, 2015 Volume

xxi, #28

“How you think when you lose determines how long it will be until you win.” —G.K. Chesterton (British journalist, novelist and poet, 1874-1936)

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SUMMER PUBLISHING SCHEDULE

Please note there will be no weekly edition of HARDLINES on August 3, 17, or 31. The World Headquarters will remain open, however, during this time. The regular weekly schedule will resume September 7.

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Home Hardware sees big potential for growth in Quebec

ST. JACOBS, Ont. — Quebec is a “very, very important market,” says Home Hardware CEO Terry Davis. After all, it represents the second-largest market in the country (close to one-quarter, according to our Hardlines Retail Report, [now available! —your Shameless Editor]).

Home Hardware, however, is seriously under-represented in that province. While 100 members is indeed a number that represents big growth for the co-op—triple what it had 10 years ago—it still represents barely 10% of Home’s dealer base. “We are just not as significant there as in other regions,” he admits, adding that he recognizes the market supremacy and “legacy position” of its greatest rival there, RONA.

However, Home has been making active gains in la belle province. This spring, the dealer in Roberval, Que., opened a new store which, at 66,000 square feet, is the largest in the province and one of the largest in the country. “Our job is to identify other opportunities for our dealers there to grow, as well,” he notes.

“It’s a province with a ton of potential.”

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CanWel completes acquisition of California distributor

VANCOUVER — CanWel Building Materials Group Ltd. has completed its previously announced acquisition of a U.S. distributor and treating company. The company in question, which was not named before the deal closed, is California Cascade Industries. It was acquired for US$56.6 million.

"I am pleased to acquire such a strong fit with CanWel in California Cascade Industries. CanWel enters the U.S. markets on solid footing, while our successful private placement enables CanWel to stay on course with its well calculated growth strategy in strong markets such as California and the western United States," says Amar Doman, chairman and CEO of CanWel.

California Cascade Industries has been selling treated wood, redwood, cedar, fascia, and special offerings of branded products since 1974, servicing California, Arizona, and Nevada from its facilities in Sacramento and Fontana, Calif.

“The United States has always been an attractive extension of our growth strategy and this is an opportune time to enter the marketplace,” Doman adds.

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Economy holds “steady as she goes” says expert

TORONTO — Peter Norman, chief economist at Altus Group, speaking at the Hardlines Retail Conditions Seminar last month, said the Canadian economy received a “generally good forecast” this year from the International Monetary Fund. For retailers in the home improvement and hardware industry, this is positive, given the link between the economy and the housing market.

While declining oil prices have been negative on the world economy, Norman says it hasn’t been as hard on Canada as it has for some developing countries. He predicts that slumping oil’s impact won’t trigger a national housing adjustment. He adds that while it may lead to some softening in Alberta, it could have positive benefits for other provinces like Ontario.

When it comes to housing starts this year, he admits it has started out slow. However, housing production has more or less been stable and, “it’s certainly not on the downturn.”

Norman notes that the numbers of apartment versus single-family dwelling starts used to be about evenly split, but even with population growth factored in, the homes that are being built now are—for the most part—trending towards smaller spaces with smaller square footage.

“Life in apartments could possibly be our future if the policy and supply dictate it,” says Norman. The bright side, he adds, for both the single-family homes and apartments is that there is a strong demand for it: “Supply, when it comes, gets gobbled up right away.”

And while the housing starts this year are on the low side, he adds, there’s strong growth on the renovation side of things. But the silver lining, Norman says, is that the low interest rates and increasing number of homes older than 50 years create “baked-in” growth factors for home improvement retailers. “There are a lot of moving parts,” Norman says. “But that’s a huge industry and it’s going to keep growing each year.”

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NRHA study measures importance of local independents

INDIANAPOLIS — The North American Retail Hardware Association (NRHA) has produced a study which reveals the economic benefits of shopping at local independent home improvement retailers versus national big box chains. NRHA conducted the “Home Sweet Home Study” in conjunction with Independent We Stand, a movement aimed at educating consumers about the economic advantages of supporting local independent businesses that is sponsored by Stihl.

Key highlights include:

Purchasing home improvement products from locally owned retailers generates twice as much local economic activity as purchases made at big-box chain stores.
Purchasing products available only at an independent dealer, (such Stihl power tools), results in a 71% increase in local economic activity compared to purchasing comparable outdoor power equipment products at the major chains.
Together, the two largest U.S. chains sold more than $114 billion in goods in 2013 (excluding installation services). If just 10% of that business had gone instead to independently owned retailers, hometowns around the country would enjoy the benefits of an additional $13 billion in economic activity.

“We worked hard to create dynamic research that accurately depicts the economic influence locally owned establishments have on an individual community and how that initial impact has the potential to generate national economic activity,” says Dan Tratensek, NRHA vice president. “It’s crucial that retailers and consumers alike are aware of the impression we leave when we choose to shop local.”

“There’s no doubt that supporting local businesses is beneficial to a community. Previous research has shown that independently owned businesses provide substantial, quantifiable economic benefits,” says Bill Brunelle, co-founder of Independent We Stand.

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FROM THE ARCHIVES: This week in 1995

Taiga reports a healthy year-end, with sales of $426.9 million. (Compare that to Taiga’s sales 20 years later, which have reached $1.2 billion, according to our latest Who’s Who Directory!) Plus: Kent plans another big box store and Home Hardware enjoys some good growth in Atlantic Canada. Click here to read these blasts from the past!

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CLASSIFIED ADS

POSITION AVAILABLE

SALES ANALYST – RETAIL

We have an immediate opening for a Sales Analyst in our Retail group.

Responsibilities will include, but not be limited to the following:

Ensure monthly and quarterly sales targets are tracked with assigned accounts/products.
Work with the Sales Team to assist on development and execution of account plans, budgets, forecasts, promotional planning and pricing. Also coordinate internally with all stakeholders to achieve objectives with Supply Chain, Marketing and Finance.
Provide timely responses to customer questions and daily feedback as required.
Assist the Sales Team to collaborate with stakeholders and accounts on joint business planning, brand and promotional planning and messaging, in-store merchandising and retail sales execution.
Analyze high priority account performance monthly
Work closely with marketing to maximize sales results and new initiatives with each specified account.
Manage and analyze weekly product forecast by model by account and ensure inventory forecast matches promotional calendar by account.
Must be able to analyze and provide feedback on weekly, monthly, quarterly forecast numbers by category by model.
Work closely with the Director of Sales to strategically grow our Quebec retail business.

Requirements:

Knowledge of Plumbing products and competitors.
Strong communication skills in both English and French
High Level Proficiency (Intermediate to Advanced) in Excel, Word, PowerPoint.
2-5 years industry experience in the Home Improvement sector.
Must be capable of planning, organizing and prioritizing multiple projects and assignments.
Must be highly self-motivated and capable of team/independent work.
Looking for a career growth plan in sales.
Valid Driver’s License

Additional Skill Requirements:

Ability to prioritize work load efficiently and effectively
Previous Sales experience in Home Improvement products
Accuracy and attention to detail
Excellent attendance record
Effective Team Player

VICE-PRESIDENT, MARKETING AND SALES

About Home Hardware Stores Limited
Home Hardware Stores Limited is Canada’s largest Dealer-owned cooperative with close to 1,100 Stores and annual retail sales of nearly $5.7 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.

Responsible to the Chief Executive Officer for developing and executing integrated marketing strategies through to retail execution, driving brand awareness and sales; and, for developing programs and services to provide retail support, for our Dealers.

As part of the Senior Management team, participates in the development and implementation of the corporate strategic plan and key decisions pertaining to strategic initiatives.

Works closely with the Merchandise Department to ensure the right products are marketed to generate the most sales.

Responsible for Dealer growth and expansion.

QUALIFICATIONS:
Post-secondary degree in marketing with Senior Management experience.
Preference to a bilingual candidate.
Strategic thinker with the ability to set vision and to develop and execute plans.
Ability to interpret financial statements, prepare, monitor and present budgets.
General knowledge of hardware, lumber and building material product categories would be an asset, plus insights into consumer and contractor customer segments.
Must reside within proximity of St. Jacobs.

Interested applicants, please submit your resume to Beth White, Recruitment, Human Resources.
hr@homehardware.ca
Phone: 519-664-4720
34 Henry St W, St. Jacobs, ON, N0B 2N0
Deadline: Thursday, July 9, 2015

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

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July 6 2015

Hardlines Weekly Newsletter

READING THIS ON A MOBILE DEVICE? CLICK HERE FOR THE MOBILE EDITION!

IN THIS ISSUE:

Four companies top Canada’s list of home improvement retailers
TORBSA and Castle end Epic relationship
TIM-BR MART VP gives tips for connecting with his buyers
E-retail turns Home Hardware store around
PLUS: Lowe’s entering Winnipeg, Co-op Atlantic entering bankruptcy protection, Sobeys to eliminate 1,300 jobs, Sears Canada CEO leaving, GDP edges—and more!

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DID YOU KNOW…

…that summer is a good time to get your entire team on our HARDLINES subscription list? We have great group rates for more than one subscription at your company. Site licenses are available if you want to make sure everyone in your company has access to the latest news on the industry. (Don’t forget: if you regularly forward your own copy of HARDLINES to team members, you are violating our Fair Play Policy™.) Why not let us send HARDLINES to your team! Contact me directly for more information.—Michael

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RETAILER NEWS

WINNIPEG — Lowe’s is entering the Winnipeg market with a store in the Whyte Ridge neighbourhood in the city’s southwest. The Winnipeg Free Press reports that zoning has been approved for a site at the south end of a retail complex with such neighbours as Home Depot and Walmart’s Winnipeg South Supercentre. Documents obtained by the Press from the Winnipeg Construction Association show architects’ working drawings are underway, which means the project is a “go,” the association’s executive VP Ron Hambley confirmed.

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MONCTON, N.B. — Co-op Atlantic has entered bankruptcy protection as it restructures its business, under the Companies’ Creditors Arrangement Act. The CCAA proceedings “will provide Co-op with the time and stability needed to continue its ongoing efforts to pursue solutions to its financial challenges,” the company said in a release. That restructuring centres on exiting the food and retail gas businesses. In the process it closed four corporately owned food stores, two in New Brunswick, and one each in Prince Edward Island and in Newfoundland last week. About 400 jobs will be lost. The company had already sold off five other corporately owned stores and its wholesale grocery business to Sobey’s back in May. Co-op Atlantic says it wants to keep focusing on its agricultural, bulk fuel, and housing businesses, supplying its remaining independently owned co-op stores.

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STELLARTON, N.S. — Sobeys is getting ready to eliminate 1,300 jobs following its acquisition of Safeway Canada, according to Report on Business. The move is part of a bid to streamline operations and cut costs which will also see the company shutter three distribution centres. At the same time, it will also open a new one and expand one more in the next two years, announced Marc Poulin, CEO of Sobeys’ parent company Empire. The shakeup contributed to Empire reporting a $103-million charge in the most recent quarter.

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SUPPLIER NEWS

LONDON — The UK’s hardware trade show, Totally DIY : Totally Tools, is getting a new format and timing for next year’s event at the Ricoh Arena in Coventry. The 2016 edition sees the show move to a two-day mid-week time slot. Brintex, the organizer of the show, reports that support for the new format comes from a range of vendors, including Draper Tools, Spear & Jackson, Gorilla Glue, Sterling Locks, Rolson Tools, King Dick Tools, and Eurobond Retail Adhesives, as well as a number of retailers. Totally DIY : Totally Tools 2016 will take place on February 16 and 17 at the Ricoh Arena, Coventry, England.

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CORRECTION

Yikes! You’d think after weeks of crunching numbers for the release of our 2015 Retail Report, we’d be right on top of our numbers game. But no, it’s typo time again. In last week’s edition of HARDLINES, we reported that Home Depot’s online sales are climbing, but in fact they will only account for upwards of 5% of overall sales in 2015, not 50%. And we expect that amount to be even less in Canada. Of course, the full, typo-free story about which way the country’s top retailers are going, and how much the industry has grown, is all in the Hardlines Retail Report available now! —Michael__________________________________

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PEOPLE ON THE MOVE

Sears Canada Inc. has announced that Ronald D. Boire is leaving his position as president and CEO at the end of the summer to head up Barnes & Noble, the U.S. bookstore chain. Brandon G. Stranzl, chairman of the board, has been named executive chairman, effective immediately, while the board begins its search for a new president and CEO. ________________________________

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ECONOMIC INDICATORS

Lumber production by sawmills in April decreased 0.7% from the previous month to 5,617.2 thousand cubic metres in April. Compared with April 2014, lumber production rose by 6.9%. Sawmills shipped 5,434.9 thousand cubic metres of lumber in April, down 0.9% from March. (StatCan)

Real gross domestic product edged down 0.1% in April, the fourth consecutive monthly decline. A decrease in the output of goods-producing industries outweighed an increase in service industries. (StatCan)__________________________________

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OVERHEARD…

“Our dealers need products at prices that can keep them competitive.” —Randy Martin, vice president of dealer development for TIM-BR MART Group. He spoke recently at our Hardlines “Meet the Buyers” Breakfast.

July 6, 2015 Volume
xxi, #27

“In a world darkened by ethnic conflicts that tear nations apart, Canada stands as a model of how people of different cultures can live and work together in peace, prosperity, and mutual respect.”— Bill Clinton (American politician and 42nd President of the United States, 1946- )

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Four companies top Canada’s list of home improvement retailers

HARDLINES EXCLUSIVE — More than half of Canada’s retail home improvement sales are generated by just four companies, says a new report by HARDLINES. And while corporate entities comprise three of that top four, one of them is in fact a co-op of independents.

According to the 2015 Hardlines Retail Report, Home Depot Canada has secured top spot as the largest player in the industry, while the number-two position is now held by Home Hardware Stores Ltd., a group that consists of almost 1,100 independent dealers. In third place is RONA, followed by Canadian Tire’s retail sales in the hardware and home improvement category.

Together, they account for almost $22 billion in retail sales. Home Depot Canada by itself represents almost 14% of the overall market.

The 2015 Hardlines Retail Report is the culmination of months of analysis and measurement of home improvement retailing in this country, a sector that accounts for more than 8% of retail overall in Canada. One of the findings of the Report is that the industry continues to grow steadily post-worldwide recession—but at less than 3%, that growth is still much slower than was enjoyed in the early part of this millennium.

(For more information about the 2015 Hardlines Retail Report, click here.)

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TORBSA and Castle end Epic relationship

MISSISSAUGA & BOLTON, Ont. — A joint buying arrangement between two competing groups, TORBSA Ltd. and Castle Building Centres Group Ltd., was terminated earlier this year, HARDLINES has learned. The Epic Alliance Buying Group was an umbrella buying organization formed in early 2011 to combine the purchasing power of Castle and TORBSA on some key commodities. However, after just four years, the agreement was quietly dissolved.

“Basically, we decided not to continue the umbrella at this time,” says Bob Holmes, general manager of Bolton, Ont.-based TORBSA, which has 22 members representing 45 stores and annual sales of $400 million. “We’d seen value in it, it had benefits, but the market’s changing.” He adds that TORBSA wants to continue as “a stand-alone business.”

Castle, which is based in Mississauga, Ont., has almost 300 stores representing an estimated $1.72 billion in retail sales nationally.

One other “umbrella” group still exists. Byco was formed in 2012 by Sexton Group, Delroc, and Allroc. Though Allroc ended up leaving that group within months of its formation, Byco is still going strong with its two remaining members.

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TIM-BR MART VP gives tips for connecting with his buyers

TORONTO — TIM-BR MART Group needs vendors that are national in scope, but can effectively serve independent dealers at a regional level, says Randy Martin, vice president of dealer development for the giant buying group.

Martin shared insights on how to do business with TIM-BR MART, and with its hardware distribution business, Chalifour Canada, during a “Meet the Buyers” breakfast recently. He shared the podium with senior buyers and executives from Home Hardware, Canadian Tire, and Taiga.

“We need to ensure vendor partnerships keep us competitive—and by that I don’t necessarily mean the cheapest price,” he added. Other factors that are important for vendors to bring to the table include product availability, exclusivity for TIM-BR MART and Chalifour, and reliable fill rates. Martin noted that most of his dealers are in rural or semi-urban locales, and compete against strong national banners such as Home Hardware.

He stressed the importance of national brands for his dealers, saying this is an important differentiation from the big boxes. During his own recent visits to Home Depot stores, he noticed more private-label products at the expense of national brands.

As for making contact with a buyer from his company, Martin was able to provide some concrete advice for the vendors in the room: “We prefer a phone call to an email. We’re small enough that we’re easy to get a hold of.”

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E-retail turns Home Hardware store around

SAINTE-JULIE, Que. — Michel Robidoux’s Home Hardware in Sainte-Julie, Que., went from the brink of bankruptcy to outgrowing its space and he credits an e-commerce push with the turnaround, according to Les Affaires. Established in 2009, the independent retailer affiliated with the Home Hardware banner last year. During its first few years, the store struggled to make the sales it needed to retain staff and grow.

Robidoux, who managed a Canadian Tire store in Montreal before striking out on his own, turned to e-retail in 2011 and the effect was immediate: that year, income from e-commerce enabled him to expand the store from 2,000 to 3,500 square feet. Next, he opened a second location an hour’s drive away in Acton Vale in the spring of last year.

The merchant points to the cost savings of bulk purchasing direct from the supplier as a primary benefit of e-retail, as well as the platform for a wider audience, noting that “for every customer who walks into my store, I have 100,000 who could see my products on the internet.”

“Retailers tend to think people won’t buy saws or flooring on the internet,” HARDLINES’ own fearless Editor, Michael McLarney, told Les Affaires. “But they’re wrong.”

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FROM THE ARCHIVES: This week in 1995

Our stalwart editor makes his first media appearance, talking on CBC morning radio in Edmonton. His message: Home Depot Canada promotes its service levels as much as it does its low prices, something that Canadian dealers were slow to catch on to. Also: changes at Lansing Buildall and strong sales from Revy in Edmonton. Click here to read these venerable stories!

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CLASSIFIED ADS

VICE-PRESIDENT, MARKETING AND SALES

About Home Hardware Stores Limited
Home Hardware Stores Limited is Canada’s largest Dealer-owned cooperative with close to 1,100 Stores and annual retail sales of nearly $5.7 billion.

As part of the Senior Management team, participates in the development and implementation of the corporate strategic plan and key decisions pertaining to strategic initiatives.

Works closely with the Merchandise Department to ensure the right products are marketed to generate the most sales.

Responsible for Dealer growth and expansion.

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

JUNIOR BUYER

Castle Building Centres Group Ltd., Canada’s Premier Buying Group for Independents, is looking for a Junior Buyer. The position is in our Mississauga office, reporting to the Vice President of National Marketing. The scope will be National, serving Castle’s over 300 members from Coast to Coast.

Previous buying experience is mandatory.

Please direct all enquiries via e-mail to James Jones, Vice President National Marketing, jjones@castle.ca.

CHANNEL MANAGER

Summary:
Reporting to the Vice President of Business Development, the Channel Manager will contribute to driving profitable growth within the group of Richelieu Retail businesses by managing the day to day Channel/Customer specific activities. The position can be based in St. Laurent, Quebec or Kitchener, Ontario.

Key Channel Marketing Responsibilities:
– Work collaboratively with National Account Managers and Regional Managers to develop, execute and track channel and account specific seasonal promotions, off shelf promotions, booking programs and events for each business unit. Planning window 6-12 months out.
– Work collaboratively with Product Managers and General Managers from each Business Unit to manage the profitable growth of all businesses and client base
– Collaborate with Sales and Supply Chain to ensure promotions can be executed on time through normal supply chain work flow.
– Partner with merchandising team to develop packaging/graphics as required and ensure all Brand representations meet corporate standards
– Actively participate in line review development and presentations
– Develop/maintain expert knowledge of customer, market and competitive landscape (in store and digitally) related to the product portfolio of each Business Unit.
– Develop a standard template for communicating to the Sales Teams
– Support the development of annual operating plans by Customer by Business Unit
– Analyze and track POS and develop/maintain market share information.
– Participate in S&OP process as required.
– Participate in marketing and customer specific trade shows as required.
– Support Sales Team with placing digital new product ad features on participating customer websites ( e.g. TimberMart, Castle Building Centres)

Selection Standards:
– College Diploma or University Degree in Business, Marketing or similar field of study
– 5-plus years‘ experience in Channel and/or Product Marketing with a record of demonstrated achievements and leadership
– Self starter, highly organized, able to handle multiple projects, strong attention to detail
– High level of energy and commitment
– Strong communication and interpersonal skills
– Creative and strategic thinking skills, strong analytical and computer skills
– Direct experience with Home Improvement customer base including RONA, Home Depot
– Regular Travel required within Canada, primarily Montreal – Toronto corridor.

Applications can be submitted to jcrews@richelieu.com.

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Publishing
Details
HARDLINES is published weekly (except monthly in December and August)
by
HARDLINES Inc.
528 Queen Street East
Toronto, Ontario
M5A 1V2
© 2015 by HARDLINES Inc.
HARDLINES™ the electronic newsletter
www.HARDLINES.ca
Phone: 416.489.3396; Fax: 647.259.8764

Michael McLarney
— Editor & President — mike@HARDLINES.ca
Sigrid Forberg
— Managing Editor— sigrid@HARDLINES.ca
Beverly Allen — Publisher
— bev@HARDLINES.ca
Katherine Yager — Marketing and Production — kate@HARDLINES.ca
Margaret Wulff — Accounting — margaret@HARDLINES.ca
Administration— admin@HARDLINES.ca

June 29 2015

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<td width=”486″ height=”51″><div align=”center”><a href=”https://hardlines.ca”></a><a href=”https://hardlines.ca”><img src=”https://hardlines.ca/wp-content/uploads/2015/03/20th-anniversary-header-march1.jpg” width=”100%” border=”0″ /></a></div></td>
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Serving The Retail Home Improvement Industry 

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<td><div align=”center” class=”style61″>Editor: 
<a href=”mailto:%20mike@hardlines.ca”>Michael McLarney</a></div></td>
<td><div align=”center” class=”style61″>Publisher: 
<a href=”mailto:bev@hardlines.ca”>Beverly Allen</a></div></td>
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<td><div align=”center” class=”style61″>Managing Editor : 
<a href=”mailto:sigrid@hardlines.ca”>Sigrid Forberg </a></div></td>
<td><div align=”center” class=”style61″>Marketing: 
<a href=”mailto:kate@hardlines.ca”>Katherine Yager</a></div></td>
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<td><div align=”center” class=”style61″>Accounting: 
<a href=”mailto:margaret@hardlines.ca”>Margaret Wulff </a></div></td>
<td><div align=”center” class=”style61″>Admin: 
<a href=”mailto:christine@hardlines.ca”>Christine Minnery </a></div></td>
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June 29, 2015 Volume xxi, #26
 “Business is more exciting than any game.” —Lord Beaverbrook (Canadian-born business tycoon, politician and newspaper baron, 1879-1964) 
 
<o:p><st1:place w:st=”on”><st1:City w:st=”on”><o:p></o:p></st1:City></st1:place></o:p><o:p><st1:place w:st=”on”><st1:City w:st=”on”><o:p></o:p></st1:City></st1:place></o:p><o:p><st1:place w:st=”on”><st1:City w:st=”on”><o:p></o:p></st1:City></st1:place></o:p>IN THIS ISSUE: 
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 Top Four Retailers look to e-commerce for growth 
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Buyers get new roles at Chalifour Canada 
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Marks promoted, Gabel takes advisory role at Home Hardware 
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Lowe’s Canada continues growth with first Northern Ontario store 
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 PLUS: Wal-Mart vendors get the squeeze, Ikea plans small-sized store, HBC will open Saks stores, Walmart tries out greeters-again, CanWel seeks shareholder approval, retail sales down—and more! 
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</ul>
 
<a href=”http://www.homehardware.ca/en/index/become-a-home-owner.htm”><img src=”https://hardlines.ca/wp-content/uploads/2015/02/2enTradeBannerHomeImp400x90.gif” width=”100%” border=”0″ align=”middle”></a> Top Four Retailers look to e-commerce for growth, says new Report
<img src=”https://hardlines.ca/wp-content/uploads/2015/06/mikercs1.jpg” width=”100%” border=”0″ align=”middle”>
 SPECIAL REPORT — When the big boxes came to Canada in 1994, they brought a lot of change for the home improvement and hardware industry. And over the last 20 years, HARDLINES has been faithfully tracking those changes.
  
The growth HARDLINES has documented over two decades has been immense. When we first started tracking the size of the industry, it was worth $14 billion. In 2014, that number was approaching $42 billion. And while just four retail groups account for half of that, they haven’t edged out the independents entirely—as many feared they would. In fact, they just pushed everyone else to be better at everything from customer service, marketing, and now social media and e-commerce.
  
“We know that where the Top Four goes, the industry’s going,” Michael McLarney said at the Retail Conditions Breakfast Seminar last week. He explained how Home Depot Canada, RONA, Home Hardware, and Canadian Tire are making gains both with bricks and mortar and e-commerce. He pointed out, for example, that Home Depot leads the e-commerce game, both here and in the U.S. Its online sales are up almost 50% over last year, and are expected to account for 50% of overall sales in 2015. The Canadian operation lags behind this, but not by much, McLarney added.
 
 This year’s Retail Report, previewed at the Breakfast Seminar, takes an in-depth look at the state of the industry: who are the Top Four, what share of the industry do they account for, what are they doing to stay at the top, and what can other retailers learn from them.
 
With more than 180 PowerPoint slides, the Hardlines Retail Report also features invaluable information on the other companies that comprise Canada’s Top 20 in the industry, plus rankings of the big box players and buying groups, an analysis of marketplace trends, business conditions, and forecasts. (<a href=”https://hardlines.ca/publications/annual-retail-report/”> Click here to find out more</a> about this incredible Report!)
 
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<td class=”style5″><a href=”http://www.task-tools.com/”><img src=”https://hardlines.ca/wp-content/uploads/2014/09/TASK-ad-banner-E.jpg” width=”100%” border=”0″ align=”middle”></a></td>
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Buyers get new roles at Chalifour Canada
 
<img src=”https://hardlines.ca/wp-content/uploads/2015/06/chalifouroffice-web.jpg” width=”100%” border=”0″ align=”middle”> 
 LONDON, Ont. — Following the departure of Andrew Pantelides, procurement and merchandising manager at Chalifour Canada back in April, some changes have been made to the buying ranks at the hardware wholesaler, which is owned by TIM-BR MART Group. 
 
 Catherine Vaugh has moved up to a senior category manager role. Formerly a category manager, she is now directly responsible for paint sundries, hand tools, and household products, and will now also oversee the following departments: plumbing, small appliances, housewares, interior décor, flooring, and camping and sporting goods.
 
 Vince Morency has also moved up: he is now senior category manager for Chalifour Canada. Now directly in charge of the power tools, hardware, and fasteners categories, he also leads the category management team responsible for agriculture, lawn and garden, outdoor living, electrical, HVAC, automotive, and holiday décor. He was previously category manager for power tools, hand tools fasteners, builders’ hardware, and auto.
 
Randy Martin, VP of business development at TIM-BR MART Group, continues to manage the senior buying responsibilities following Pantelides’ departure.
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Marks promoted, Gabel steps back in Home Hardware reorg
ST. JACOBS, Ont. — Home Hardware has created two new senior positions within the company to separate merchandising and marketing roles. The moves are in step with the transition by Ray Gabel, who is currently VP for both merchandise and marketing of hardlines, to a new role as senior merchandise advisor.
  
A single merchandise organization responsible has been formed to handle all product sourcing. It will be led by Joel Marks, currently director of merchandise, hardlines. He has accepted the title of vice-president, merchandise, effective August 4. Under the newly integrated merchandise department, Bruce White, vice-president, merchandise and marketing for LBM, will report to Marks. Gabel will also report to Marks.
  
The marketing roles have been spun off from both merchandising roles, and Home will create instead an integrated marketing and sales team led by a vice-president, marketing and sales. The marketing and operations teams will be transitioned to report to the newly created position. Home Hardware is currently recruiting for that role.
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<td class=”style5″><a href=”http://www.taymor.ca/”><img src=”https://hardlines.ca/wp-content/uploads/2014/01/newssmall-logo-animation-2.gif” width=”100%” border=”0″ align=”middle”></a></td>
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Lowe’s Canada continues growth with first Northern Ontario store
<img src=”https://hardlines.ca/wp-content/uploads/2015/06/lowesssm-web.jpg” width=”100%” border=”0″ align=”middle”> 
SAULT STE. MARIE, Ont. — Lowe’s has opened its first location in Northern Ontario with a store in Sault Ste. Marie. The 91,500-square-foot outlet has a 4,472-square-foot garden centre in-store and an additional 6,300-square-foot “pop up” seasonal garden centre in the parking lot. This is Lowe’s 39th store in Canada.
  
The store carries about 40,000 SKUs and puts a big focus on seasonal products. An extensive barbecue section features Weber, Broil King, Char Broil, and Master Forge brands, while a patio assortment includes Lowe’s proprietary Allen & Roth collection of outdoor furniture, gazebos, and matching accessories. A large assortment of lawn tractors, mowers, and other outdoor power equipment includes brands such as John Deere, Cub Cadet, Husqavarna, Remington, and Lowe’s exclusive Kobalt brand.
 
The store boasts a number of sustainable features, including: photocell-controlled low-consumption LED lighting fixtures for all exterior lighting; a white “cool roof” roofing membrane to reduce urban heat island effect; low flush fixtures throughout the building; and an estimated 30% reduction in water use. The store uses an automated building energy management system to control lighting and heating and cooling systems. The system can be monitored centrally to track consumption.
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<td class=”style5″><a href=”http://www.exchangeablade.com/”><img src=”https://hardlines.ca/wp-content/uploads/2015/03/eab_logo_200x75-3.jpg” width=”100%” border=”0″ align=”middle”></a></td>
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FROM THE ARCHIVES: This week in 1995
<img src=”https://hardlines.ca/wp-content/uploads/2015/06/HL1995june19-2.jpg” width=”100%” border=”0″ align=”middle”>
 Home Depot Canada was a regular fixture in our news pages even 20 years ago. Home Depot had acquired the Aikenhead’s big box chain from Molson Cos. in February, 1995, and began opening stores at a rate of nearly one per month. Home Depot Canada president Stephen Bebis was forecasting that sales would more than double that year. On the independent front, Sodisco-Howden was expanding its Novico hardware banner outside of Quebec. By this time in 1995, there were 225 Novico-bannered dealers across the country. <a href=”https://hardlines.ca/hardlines-20th-anniversary/”> Take a minute to read </a> from our HARDLINES archives! 
 
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<td class=”style5″><a href=”http://storesupport.ca/”><img src=”https://hardlines.ca/wp-content/uploads/2014/10/storesupportnewsletter1.jpg” width=”100%” border=”0″ align=”middle”></a></td>
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 DID YOU KNOW…? 
…that summer is a good time to get your entire team on our HARDLINES subscription list? We have great group rates for more than one subscription at your company. Site licenses are available if you want to make sure everyone in your company has access to the latest news on the industry. (Don’t forget: if you regularly forward your own copy of HARDLINES to team members, you are violating our Fair Play Policy™.) Why not let us send HARDLINES to your team! <a href=”mailto:mike@hardlines.ca”> Contact me directly</a> for more information. —Michael 
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style=”mso-ansi-language: EN-US”><a href=”http://www.techniseal.com/”><img src=”https://hardlines.ca/wp-content/uploads/2014/10/techniseaewsletter.jpg” width=”100%” border=”0″ align=”middle”></a></td>
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RETAILER NEWS
 BENTONVILLE, Ark. — Vendors in the U.S. are getting the squeeze from Wal-Mart Stores with the giant retailer’s latest policy to impose stocking fees across the board. The charges reflect the squeeze Wal-Mart is feeling after raising wages for store staff. While HARDLINES has not yet heard of any Canadian hardlines vendors being affected by the new policy, Reuters reports that Wal-Mart wants to add a 10% fee to food suppliers on the value of inventory shipped to new stores and to new warehouses, both one-time charges, and 1% to hold inventory in existing warehouses. This new fee system is seen by some observers as a departure for Wal-Mart; they say the company has historically eschewed additional fees in favour of the best price up front.
 
NORWICH, UK — Furniture retailer Ikea is planning a small-sized store in this community in England, as a way to provide more convenience to shoppers who must travel long distances to get to an Ikea big box. Ikea has 18 stores in the UK, compared with 13 in Canada. The new smaller stores could offer a pickup point for online orders and to test new products. Similar small stores are being tested in Spain, Norway, and Finland. 
  
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TORONTO — Hudson’s Bay Company will open seven Saks stores in this country. The first two will open next year in Toronto, on Queen Street, embedded in the existing Bay store there, and in Sherway Gardens. According to Jerry Storch, CEO of HBC, “Canada has an appetite for luxury market and the time is ripe” for this kind of store. The company will also bring its discount concept Saks Off 5th stores, with 27 planned.
 
BENTONVILLE, Ark. — Walmart is trying out the use of greeters at the entrance to some of its stores, after discontinuing the practice three years ago. According to the Wall Street Journal, those greeters were moved into the store to help direct customers and answer questions. Now, in an effort to reduce shoplifting, they are being returned to their original posts on a test basis. 
  
 SUPPLIER NEWS
VANCOUVER — CanWel Building Materials Group Ltd. is seeking shareholder approval to issue common shares in connection with the acquisition by CanWel of assets of two privately-owned California-based building products distribution and treating companies. The deal is worth about US$45 million and includes the assumption of about US$9 million debt. The deal is expected to close by July 2.
 
 PEOPLE ON THE MOVE 
 Kathee Tesija , executive vice president, chief merchandising and supply chain officer at Target Corp., will move into an advisory role effective July 6, according to Target Chairman and CEO Brian Cornell. She has been with the company for nearly 30 years. In her new advisory role, “she will spend the next several months contributing to key enterprise initiatives and ensuring a smooth transition of her responsibilities,” says the company.
 
ECONOMIC INDICATORS 
 The rental apartment vacancy rate in Ontario urban centres was 2.5% in April, down from 2.8% in April 2014. Improved employment conditions for younger households who typically rent helped push demand, while a drop in migrants entering Ontario and more condominium rental projects coming on the market, also contributed to the drop in rental availability. The sharpest declines in vacancy rates occurred in Brantford (1.8%), Hamilton (1.8%) and Guelph (0.6%). (CMHC)
  
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June 22 2015

Hardlines Weekly Newsletter

READING THIS ON A MOBILE DEVICE? CLICK HERE FOR THE MOBILE EDITION!

IN THIS ISSUE:

AQMAT congress brings Quebec dealers and suppliers together
Peavey Mart plans two more openings by autumn
HBC CEO says bricks and mortar will remain important
Canadian Tire CEO says more acquisitions possible
PLUS: Lowe’s opens in Sault Ste. Marie, RONA opens in B.C., Woolworths CEO’s departure could affect Lowe’s joint venture, Hudson’s Bay to purchase German department store chain, Fairfax Financial acquires Tembec shares, Konecsni enters Home Hardware’s “Builders’ Circle”—and more!

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DID YOU KNOW…

…

that the latest housing trends and forecasts will be presented at our Retail Conditions Breakfast Seminar? And that this mind-blowing event is just two days away? Find out what the economy has in store from our Housing Expert Peter Norman, Chief Economist for Altus Group. Plus: learn how Canadian Tire, Home Depot, Lowe’s Canada, and RONA are doing to grow in 2016 as our own Michael McLarney presents results from the latest Hardlines Retail Report. Click here to book your seat for Breakfast today!

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RETAILER NEWS

SAULT STE. MARIE, Ont. — Lowe’s has opened its first location in Northern Ontario with a store in Sault Ste. Marie. The 91,500-square-foot outlet puts a big focus on seasonal products, with a 4,472-square-foot garden centre in-store and an additional 6,300-square-foot “pop up” seasonal garden centre in the parking lot. An extensive barbecue section features Weber, Broil King, Char Broil, and Master Forge brands, while a patio assortment includes Lowe’s proprietary Allen & Roth collection of outdoor furniture, gazebos, and matching accessories. This is Lowe’s 39th store in Canada.

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BOUCHERVILLE, Que. — RONA celebrated the official opening of its newest store in Sechelt, B.C., last week. The former Home Hardware franchise is owned by Russ and Tess Jones, who opened their first RONA store in 2011 in nearby Madeira Park. Both stores have now come under the Coast Builders RONA banner operating in the province’s Sunshine Coast, north of Vancouver.

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SYDNEY, Australia — Woolworths CEO Grant O’Brien is leaving the company after 28 years, as the Australian retailer continues to struggle with sales numbers. His departure opens the door for his successor to pull the plug on Masters Home Improvement, the company’s money-losing joint venture with Lowe’s. O’Brien, who reiterated support for the venture last month, was the driving force behind Masters. O’Brien and chairman Ralph Waters have defended the business, insisting that it will eventually pay off for shareholders, but Waters acknowledged that the new CEO will be at liberty to review all points of Woolworths’ business plan, including Masters.

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TORONTO — Hudson’s Bay Company has reached a $3.3 billion deal to purchase German department store chain Kaufhof from Metro, hoping to make a name for itself in the tough German market. The move is a gamble for Canada’s oldest company, given the considerable differences in Germany’s business culture. The struggling Kaufhof chain faces stiff competition in a market of thrifty customers with high expectations. High profile retailers who have exited Germany after failing to make strides include Walmart, which sold its stores to Metro at a loss in 2006, and Marks & Spencer.

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SUPPLIER NEWS

TORONTO — Fairfax Financial Holdings announced that it has acquired 19,991,044 common shares of Tembec, or about 20% of Tembec’s issued and outstanding shares. The shares were purchased, for investment purposes, in a private transaction at a price of $2.25 under a share purchase agreement. They are the only securities that Fairfax currently owns or controls in Tembec.

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FRANKFURT — Henkel CEO Kasper Rorsted has dismissed speculation that the consumer goods manufacturer is readying itself to acquire hair care firm Wella from Procter & Gamble. In an interview with Die Welt, Rorsted remarked that the company doesn’t need “big, multi-billion-euro acquisitions to reach our financial goals.” Reuters had earlier reported that Henkel made a bid of between $5 and $7 billion for the business. Rorsted did not close the door on such an offer, however, acknowledging the company is open to “takeovers if they make a good strategic fit and if the price is right.”

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PEOPLE ON THE MOVE

Eric Konecsni, former vice-president of operations for Home Hardware Stores Limited, was inducted into the company’s “Builders’ Circle” at a ceremony on May 25. The Builders’ Circle program was launched in commemoration of Home’s 50th anniversary in 2014 to honour and recognize retired board members and corporate officers who have made extraordinary contributions to Home’s dealer-owners. Konecsni (shown here with Christine Hand, chairman of the board) retired on December 31, 2014, after 46 years of service—32 years with Beaver Lumber and the last 14 years at Home Hardware, after joining that team in 1999 following Home’s acquisition of Beaver. Overseeing the transition of 138 Beaver Lumber stores to Home, he went on to oversee Home’s entire network of close to 1,100 stores. Konecsni joins fellow 2015 inductees Jim Schaefer, Sr. of Bradford, Ont., and Brigitte Michel of Sudbury, Ont., who were honoured on their retirement from the board.

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ECONOMIC INDICATORS

The rental apartment vacancy rate in Ontario urban centres was 2.5% in April, down from 2.8% in April 2014. Improved employment conditions for younger households who typically rent helped push demand, while a drop in migrants entering Ontario and more condominium rental projects coming on the market, also contributed to the drop in rental availability. The sharpest declines in vacancy rates occurred in Brantford (1.8%), Hamilton (1.8%) and Guelph (0.6%). (CMHC)

June 22, 2015 Volume

xxi, #25

“It is in love that we are made, in love we disappear.” —Leonard Cohen (Canadian poet, songwriter and novelist, 1934- )

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AQMAT congress brings Quebec dealers and suppliers together

BECANCOUR, Que. — At a small resort hotel in Quebec’s central region, The 6th annual Decision Makers Conference by AQMAT, the home improvement industry association of Quebec, welcomed more than 100 people, including dealers, vendors, and service providers.

The highlight of the first day was the results of AQMAT’s latest annual survey of dealers in the province. Richard Darveau, president and CEO of the association, led delegates through the detailed findings of the research. The comprehensive survey measured everything from sales per store, per square foot, and per employee to dealers’ involvement in online sales.

And some of the results were surprising. Ninety-two percent of dealers said they have a point-of-sale system, which may seem high, but another 8% do not. Barely half of dealers surveyed stay open on Sunday (49%). That number is even less among smaller stores and for stores in smaller centres. Almost one-quarter of dealers said they are selling online, but e-commerce accounts for less than 3% of their sales.

From the standpoint of store operations, 14% of dealers said they had any kind of career plan for their key employees, while barely 5% have any plans for store renovations or improvements over the next three years.

The conference continued on day two with a presentation by HARDLINES’ own intrepid editor, Michael McLarney, who talked about the changes over the past 20 years in the industry that affected the fates of so many dealers that are no longer in existence. McLarney cited names like Pascal, Beaver Lumber, Lansing Buildall, Marchands Unis, Matèriaux à bas prix, and others, many of which were affected, either directly or indirectly, by the arrival of Home Depot and Walmart to Canada in 1994. He likened the effect of these U.S. retailers to the impact made by a giant asteroid that landed on earth 65 million years ago. It is believed to have dramatically disrupted the earth’s climate, causing the extinction of the dinosaurs.

Winning companies, he said, learned to focus on details of doing business that were not even considerations for most independents before the arrival of big boxes. Those details include strong marketing and promotion, sales training for staff, creating a strong in-store experience, and online marketing savvy.

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Peavey Mart plans two more openings by autumn

RED DEER, Alta. — Peavey Industries plans to open two new Peavey Mart stores in the fall, in Strathmore, Alta., and Kamloops, B.C. They will join the 32 stores the company already operates across Western Canada.

The new 35,000-square-foot outlet in Kamloops is a part of the company’s goal of expanding in British Columbia—its only other shop in the province is in Dawson Creek, which has already been in the northeastern B.C. community for 40 years.

Based in Red Deer, Alta., where it has a 200,000-square-foot distribution centre, Peavey has stores that range in size from 10,000 to 35,000 square feet and feature a wide assortment of hardware, farm and pet, automotive, and home improvement products.

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HBC CEO says bricks and mortar will remain important

TORONTO — As the largest employer in Canada, at more than two million people strong, the retail industry is grappling with how best to sell on a still-shifting landscape.

But Gerald (Jerry) Storch, the CEO of Hudson’s Bay Company, kicked off the Retail Council of Canada’s Store 2015 conference earlier this month with the declaration that the retail landscape hasn’t changed as much as has been previously reported. He recalls the early days of the internet and a lot of talk about how online retail was going to make the bricks-and-mortar stores redundant. While a few have fallen by the wayside over the years, even in the age of the internet, the vast majority of stores are still making money. And most of those transactions are happening in actual stores, rather than online.

He says that’s due to the fact that shopping is still an experience—a lot of times when people are bored or they just want to get out of the house, they go shopping. Physicality still matters; consumers still want to shop and interact with their purchases—a need best served in a bricks and mortar store.

But they have to be able to find your store. In one of STORE’s concurrent sessions, Steve Buors, the CEO and co-founder of Reshift Media, explained how crucial it is to have an updated and search-friendly website.

“When they look for you online, people want to go to your location,” says Buors. “That means they’re ready to buy. What will they find? What’s Google saying about you?”

While he says it may seem like the most obvious thing, it’s crucial that you have a website for each individual retail location (if you have multiple), complete with store information—especially your address.

Without key details like your address, your digital footprint will shrink in comparison to the other, more web-friendly competition out there.

The lesson? Retailers have to maintain a strong presence both online and in their bricks-and-mortar locations. The retailers that are doing it best are the ones that are constantly thinking about one thing: how to make life easier for their consumers.

“The internet is as much an opportunity as it is a threat for traditional retailers,” says Storch. “But we have to be aggressive.”

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Canadian Tire CEO says more acquisitions possible

TORONTO — Buoyed by solid Q1 financials, including the highest quarterly same-store sales in 10 years, Canadian Tire Corp. remains on the lookout for acquisitions, says its president and CEO, Michael Medline.

Same-store sales in all retail divisions were healthy, despite being historically the company’s “smallest quarter.” Same-store sales were up 4.7% for CTR and 5.5% for its apparel division, Mark’s. But the hottest growth was within Canadian Tire’s sporting goods group, which saw same-store sales up 8.6% in the first quarter.

Growth in sporting goods has been stoked by rapid growth through acquisition, most famously of Sport Chek from Forzani Group in 2011. Along with Mark’s, which the company bought in 2001, Canadian Tire began a program five years ago to increase the strength of those brands and increased sales have followed. With that in mind, says, Medline, the company would consider other acquisitions if it found a retail brand that had good consumer acceptance and potential for growth.

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FROM THE ARCHIVES: This week in 1995

Home Depot Canada’s hottest outlet; Henkel Canada buys up LePage’s Canada; Sears and Eaton’s exit the sporting goods business as category killers Sport Chek and Sportmart gain ascendancy; and Home Depot managers are becoming millionaires thanks to the company’s stock and bonus plans. Click here to read this blast from the past yourself!

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June 15 2015

Hardlines Weekly Newsletter

READING THIS ON A MOBILE DEVICE? CLICK HERE FOR THE MOBILE EDITION!

IN THIS ISSUE:

Lowe’s Canada to drive growth with LBM focus
Report analyzes growth of big boxes, buying groups
Home Hardware CEO shares next steps for growth
CanWel’s latest acquisition will take it into California
PLUS: RONA opens in Rockland, Home Hardware honoured, Acklands-Grainger opens DC, Home Depot battles lawsuit, Ace Hardware ranked highest,Bailey Metal Products celebrates, Laurentide Paint’s new colours, Wilson joins IKO, Gauthier at Taiga, housing starts climb —and more!

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DID YOU KNOW…

…

that the Quebec industry association AQMAT will welcome members to its 75th AGM and 6th Decision Makers’ Conference, on June 15 & 16 in Bécancour, Que.? HARDLINES is proud to be a media sponsor of this conference and our own Editor Michael McLarney will address guests on the themes of 20 years of success and failure in the retail home improvement industry. (For information and registration, click here).

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RETAILER NEWS

BOUCHERVILLE, Que. — J. Lalonde & Fils, which is celebrating its 100th anniversary this year, opened its second RONA store last week, this one in Rockland, Ont. The fourth generation of the Lalonde family—France Lalonde, along with her brother Serge (and father Robert)—carries on the tradition in this new outlet, a $6 million investment that features 15,000 square feet of retail space, plus a 75,000-square-foot yard with a 6,000-square-foot drive-through. In addition to core departments, the store has specialized departments for building materials, plus a boutique for fireplaces and a section dedicated to high-end Napoleon barbecues. The Lalondes also own a RONA store in nearby Hammond.

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ST. JACOBS, Ont. — Home Hardware Stores was honoured as a Top Fleet Employer by Trucking HR Canada this week for the second time. With 140 tractors, some 500 trailers and a travel distance of 17 million km per year, Home Hardware develops road safety policies for the hiring, orientation, and training of drivers and claims to be one of the first fleets to adopt a Carrier Safety Management System—on-board recorders to monitor driver’s safety, compliance, and efficient performance.

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TORONTO — Industrial distributor Acklands-Grainger celebrated the grand opening of a new Toronto-area distribution centre in the town of Caledon, Ont., about an hour north of Toronto. The 535,000-square-foot facility has the capacity to stock 170,000 products and serves customers throughout Canada. The company says the new DC can supply customers in Ontario, Quebec, and Atlantic Canada with next-day delivery.

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ATLANTA — Home Depot is looking to have a federal lawsuit over last year’s data breach thrown out of court. In a filing this week, the company argues that the plaintiffs did not suffer financially and most were reimbursed for any losses incurred, and that Home Depot did not act deceptively. The original suit has been divided in two processes, one for consumers and one for financial institutions.

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SUPPLIER NEWS

CONCORD, Ont. — Bailey Metal Products Limited celebrated its 65th anniversary last week with an open house in its newly expanded facility just north of Toronto. The company, which makes everything from lath to lightweight steel framing, hosted customers and friends from across Canada. The reception took place in the company’s new, 70,000-square-foot addition, which will replace a facility in Mississauga, Ont. The company was founded in 1950 by Sam Bailey, who began by producing metal lath in his garage. Today, Bailey Metal Products serves dealers and contractors coast to coast with facilities in Montreal, Toronto, Calgary, Edmonton, and Surrey, B.C.

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SHAWINIGAN, Que. — Laurentide Paint has developed a bright colour collection for summer. Contemporary hues of yellow, orange, lime green, turquoise, etc., are designed to reflect the outdoor colours of the season. “The Summer collection by Laurentide Paint marks the glorious return of colours bright and bold,” says the company, with eight shades to choose from.

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PEOPLE ON THE MOVE

Mike Wilson has joined IKO as Ontario Sales Manager for the Residential Sales team. He will report directly to Rob Davidson, VP Residential Sales Canada. Wilson comes to IKO with a broad range of experience, including seven years at Guardian Distribution Canada, most recently as District Manager. (1-888-457-2880, ext. 2268; mike.wilson@iko.com)

Bernie Gauthier has joined the Building Products team at Taiga as General Manager−Siding in Milton, Ont. Gauthier was born and raised in the industry with a family business that was entrenched in the building supplies industry. He also has extensive experience in sales, international sales, residential, and commercial construction. He was also formerly a partner in a pressure-treating plant. He was most recently at Resisto, a division of waterproofing products maker Soprema, as a sales and development and national account manager.

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ECONOMIC INDICATORS

Housing starts climbed to 201,705 units seasonally adjusted in May, up 10% from 183,329 units in April. The SAAR of urban starts increased by 10.8% in May to 185,235 units. Multi-unit urban starts increased by 16.9% to 126,367 units, driven mainly by activity in Ontario. The single-detached urban starts segment essentially held steady at 58,868 units. Urban starts increased in Atlantic Canada, Ontario and Quebec, while they decreased in British Columbia and the Prairies. (CMHC)

Ontario led the way in construction intentions in April, as the value of building permits that month rose by 11.6% to $7.8 billion. Residential permits were up only 1.2%, however, to $4.5 billion, a third consecutive monthly advance. In the non-residential sector, the value of permits rose 30.2% to $3.3 billion, following a 24.8% gain in March. (StatCan)

Retail and food services sales in the U.S. in May reached $444.9 billion, up 1.2% from April and up 2.7% from May 2014. Excluding automobiles, retail and food services sales in May 2015 were $351.9 billion, up 1% from the prior month and up 1.3% year over year. (U.S. Commerce Dept.)

OUT AND ABOUT

Michael is at the Auberge Godefroy near Trois Rivières, Que., this week. He’s a keynote speaker at the annual conference of AQMAT, the home improvement industry association in Quebec. Meanwhile, Beverly and Katherine are back at the World Headquarters after their tour of European home improvement.

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June 15, 2015 Volume

xxi, #24

“You miss 100% of the shots you never take.” —Wayne Gretzky, aka “The Great One,” Canadian professional hockey player, (1961- )

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Lowe’s Canada president expects LBM focus to drive growth

TORONTO — “We’re really focusing on home improvement.” That assertion by Lowe’s Canada President Sylvain Prud’homme underlies the changes being made in some of its stores. Areas of focus for pros include lighting and flooring while reducing emphasis on other areas. “We’ve really reduced areas like cleaning [products],” Prud’homme points out. “We’ll leave that to the other guys. Our focus is on the home improvement.”

His comment makes reference to the likes of Canadian Tire, with a store in sight across the parking lot from the Kipling and Queensway store we were talking in. In addition, RONA is toying with the idea of offering a wider selection of consumables in its stores, as indicated by CEO Robert Sawyer last month (see our May 25 issue for that story. —Editor).

The shift in focus makes sense, given the growing importance of contractors to Lowe’s Canada. The company enjoyed its eighth straight quarter of positive same-store sales in Q1. However, Prud’homme stresses that Lowe’s will continue on a twin path, wooing both pros and DIYers. “We also successfully improved our assortment and differentiation in both outdoor fashion and nursery and live goods this year.

“As you can see, our approach is well balanced between the two important customer segments we serve: pro and retail.”

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Report analyzes growth of big boxes, buying groups

HARDLINES EXCLUSIVE — Amidst slow growth, depressed oil prices, and newly revised forecasts from CMHC that anticipate weaker-than-ever housing markets ahead, the home improvement industry is enduring major changes.

A new study by HARDLINES outlines the changes, and analyzes the strengths and weaknesses of the industry’s top retail players.

The 2015 Hardlines Retail Report tracks the renewed growth of Home Depot, Lowe’s, and RONA on the big box front. It examines why Lowe’s is gaining momentum with customers in Canada and how Home Depot is focusing on online sales for growth.

The buying groups offer another source of continued growth. The Report looks at where that growth is coming from, including the addition of members, even as the groups’ own dealers expand locally with new stores or acquisitions of their own. Many of those new members don’t fit easily into the definition of a traditional LBM dealer, as specialty stores, installers, and pre-fab home builders swell the ranks of this industry.

It also studies the huge shifts in the balance of retail power in Quebec, as La Coop fédérée has completed the takeover of Groupe BMR. This combined entity is now the number-two player in Canada’s second-largest home improvement market, while the number-one, RONA, repositions itself for the future.

The 2015 Hardlines Retail Report provides market share information and trends analysis to help you develop your marketing plan for 2016. It features more than 180 PowerPoint slides for easy access. It will be released at the Hardlines Retail Conditions Breakfast on June 24 at the Westin Bristol Place Hotel near the Toronto International Airport. Pre-order your copy of this indispensable Report and get breakfast for free! Click here to learn more about the Breakfast Event.

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Home Hardware CEO shares next steps

ST. JACOBS, Ont. — Terry Davis is very excited about the next generation at Home Hardware. As CEO of the dealer-owned co-op, he is watching not just the stores themselves, where a new demographic of young leaders is taking the helm of the family business. He’s also concerned with next steps at head office. That includes his role.

“Frankly, I’m not going to be a long-term CEO,” he says. He was put into the role with a distinct mandate and limited time frame. “I have a short time to accomplish a lot of things.”

Part of his role is extending the Home Hardware corporate culture deep into the DNA of each of the company’s 1,100 stores (see related story in our June 1 edition. —Editor) But he knows the company will want to continue a decades-long policy of hiring from within wherever possible. (Davis, just the third CEO since Home’s inception 51 years ago, got his first job working at Home Hardware 40 years ago.)

He says the next generation must understand the Home Hardware culture to ensure strong succession. And, he adds, “I think we’ve got strong bench strength here.” Dealers are onside with the company’s direction, he notes. “They are very positive. They like what they see. They like where we are going.”

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CanWel’s latest acquisition will take it into California

VANCOUVER — CanWel Building Materials Group Ltd. plans to expand into the California market with a letter of intent to a privately-owned building products distribution and treating company based there.

While the name of the company is being kept under wraps (until the deal closes later next month), the purchase price is not: approximately US$45 million, plus the assumption of debt to the tune of US$9 million. According to a release, the deal will give CanWel entry into the U.S. market.

The company under consideration has operated for more than 45 years and services California, Nevada, and Arizona from facilities in Northern and Southern California. These locations will be used by CanWel under long-term leases. Many of its customers and suppliers are common to CanWel.

“The acquisition will provide CanWel with an immediate presence in the robust California market and is a logical extension of our existing business, demonstrating continued execution of our growth strategy,” said Amar Doman, CanWel chairman and CEO.

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FROM THE ARCHIVES: This week in 1995
A couple of our favourite chains were in the headlines this week 20 years ago. Windsor Plywood took over a location in Whistler, B.C., which had been abandoned by Garibaldi Lumber when that dealer went out of business. And TSC Stores opened its 15th outlet, this one in Owen Sound, Ont. From Winnipeg, we reported on the latest efforts by Dominion Lumber to reposition itself before Home Depot opened its first store there. Click here to read these classic stories for yourself!

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June 8 2015

Hardlines Weekly Newsletter

READING THIS ON A MOBILE DEVICE? CLICK HERE FOR THE MOBILE EDITION!

IN THIS ISSUE:

Lowe’s Canada makes changes to its buying team
Spanish trade show sees strong growth
Under new president, Fraser Valley moves to RONA
Canadian Tire “Showcase” aims to combine clicks with bricks
RONA to introduce dealer conference before show
PLUS:
Watson TIMBER MART celebrates, Casselman joins Sexton, Titan expands insulation distribution, JL’s Home Hardware, Saint-Gobain invests, Husqvarna holds profitability, Drouillard elected TORBSA president —and more! ______________________________

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DID YOU KNOW…

…

that Lowe’s is catching up to Home Depot in terms of brand recognition and customer draw? Or that RONA’s turnaround strategy is starting to take off? Want to know how these retailers’ strategies will affect your business in 2016? Of course you do! No worries! The Hardlines Retail Conditions Seminar on June 24 will feature analysis of the latest trends and market growth in home improvement retailing — as part of the launch of the Home Improvement Retail Report. PLUS: an update on Canada’s housing market. The entire morning costs just $119, but buy the Retail Report at the same time and Breakfast is free! —Michael

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RETAILER NEWS

VAUGHAN, Ont. — Watson TIMBER MART, with locations in Courtright, and Wyoming, Ont., celebrates 50 years in business this year. The company hosted a three-day sale last month to celebrate the anniversary that included a barbecue fundraiser at the original store location in Courtright, which was opened in 1965 by local entrepreneur Bob Dobson.

Today, the business remains family owned and operated by four of Dobson’s children: John Dobson, Brenda Postil, Bobbie Mitchell, and Bev McGregor. Much of the dealer’s success, says John Dobson, has been due to its membership in TIM-BR MART Group. “TIM-BR MART’s banner and buying support has been integral to our success over the years.”

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WINNIPEG — Sexton Group’s newest member is Casselman Plywood in Casselman, Ont., outside Ottawa. It has been owned and operated by the Lapointe family since 2013. Raymond Lapointe said that the store and Sexton Group “share the same business philosophy.”

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MISSISSAUGA, Ont. — Canadian spray foam insulation manufacturer Icynene has announced it has extended its distribution partnership with construction materials distributor WSB Titan to include British Columbia. WSB Titan will take two-pound, closed-cell Icynene ProSeal and half-pound, open cell Icynene Classic to the market to meet the growing demand for these spray foam insulation products in B.C. “WSB Titan is a complete building and construction materials distributor and Icynene is pleased to be able to further our partnership,” said Bruce Young, Canadian regional sales director for Icynene, adding that his company is committed to meeting the more demanding residential and commercial building codes in British Columbia and across Canada. Icynene and WSB Titan will host a series of spray foam building science seminars this month for B.C. construction professionals.

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GUELPH, Ont. — For 30 years, the Belisle family has served homeowners in Guelph, Ont. This past weekend, JL’s Home Hardware Building Centre celebrated this milestone with 30th anniversary festivities. The company was launched in 1985 by Jean-Louis and Deborah Belisle when they took over a Beaver Lumber location in Sault Ste. Marie, Ont. They moved the business to Guelph in 1992 and the JL’s Home Hardware family has grown to four stores in the Guelph and Kitchener-Waterloo region. Now, eldest son André is the fourth generation of the Belisle family to work in the industry.

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OAK BROOK, Il. — Ace Hardware Corp. has been ranked “Highest in Customer Satisfaction” for the ninth consecutive year by the J.D. Power U.S. Home Improvement Retailer Store Satisfaction Study. The company earned an overall score of 807 on a 1,000-point scale, based on merchandise, price, sales and promotions, staff and service, and store facility.

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CHICAGO — Home Depot took the top honour at the Internet Retailer Excellence Awards, where it was recognized as Internet Retailer of the Year. The award, given at a banquet during the Internet Retailer Conference & Exhibition in Chicago, recognizes a web merchant which has demonstrated outstanding performance in all areas of e-commerce. Home Depot was chosen for its dramatic growth in online sales—a jump of 34% in 2014—as well as its innovative use of warehouses and local stores to handle online orders.

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SUPPLIER NEWS

PARIS — Saint-Gobain is taking advantage of the U.S. housing recovery to invest in growth in the country. The building materials supplier, Europe’s largest, is investing $3 billion to reopen dormant factories and hire workers, Bloomberg reports. “We have a very solid presence in Western Europe, but we want to grow in the U.S., where I think we are not enough represented,” said CEO Pierre-André de Chalendar. Saint-Gobain, which has been mired at home in controversy over its bid to acquire a stake in Swiss chemicals firm Sika, saw 12% of its sales come from North American markets last year.

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STOCKHOLM — Husqvarna is holding to its profitability goals in spite of anticipated challenges from a stronger U.S. dollar, CEO Kai Warn told the business daily Dagens Industri. Husqvarna is aiming to raise its operating margin to 10% in 2016, about double what it was in 2013. Warn said that an operating margin of 5% in 2018 was reasonable for the consumer brands division, which saw a margin of -0.3% in this year’s first quarter.

PEOPLE ON THE MOVE

At its AGM last month, TORBSA elected Greg Drouillard of Target Building Materials as president of the buying group Limited for 2015. The 2015 board of directors now consists of: President Greg Drouillard of Target (Windsor, Ont.); Vice President Jim Holmes of Builders’ Supplies Limited (Toronto); Vice President of Operations Len Hewson of Hewson Brothers Supply Limited (Brantford, Ont.); Secretary Steve Guglietti of Pro Con Building Supplies Ltd. (Brampton, Ont.); Past President Dante DiGiovanni of Blair Building Materials Inc. (Maple, Ont.); and Treasurer Blake Oldershaw of Oldershaw Building Supply Co. Ltd. (Chatham, Ont.). Bob Holmes is the buying group’s general manager.

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ECONOMIC INDICATORS

Construction spending in the U.S. during April was estimated at a seasonally adjusted annual rate of $1,006.1 billion, 2.2% above March. The April figure is 4.8% above the April 2014 estimate of $960.3 billion. During the first four months of this year, construction spending amounted to $288.7 billion, 4.1% above the $277.3 billion for the same period in 2014. (U.S. Commerce Dept.)

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June 8, 2015 Volume

xxi, #23

“If knowledge hangs around your neck like pearls instead of chains, you are a lucky man.” —Alan Price (British musician and keyboardist for the rock group The Animals, 1942- )

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Lowe’s Canada makes changes to its buying team

TORONTO — Lowe’s Canada has initiated changes in its buying ranks, the first major changes since the company first arrived in Canada seven years ago. Peter Hronis is now merchandising manager, hardware, replacing Gonzalo Rengifo. Hronis was most recently merchandise manager for Lowe’s Canada’s holiday business.

Mark DiGioacchino is now merchandising manager, rough plumbing, taking over from Carlo Rossi. Carol Crystal is now merchandising manager, appliances, replacing Mario Policicchio. Rachel Lawless has moved into the role of merchandising manager, seasonal living.

In addition, the company has made some new hires: Elsa Da Conceicao is now merchandising manager, lighting and Ryan Mulholland joins as merchandiser for tools.

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Spanish trade show sees strong growth

BILBAO, Spain — Bringing new life and an increased optimism to the event, Ferroforma brought five shows together at the Bilbao Exhibition Centre May 26 to 29 for its 21st biannual fair, with an expanded focus on both industrial and home products.

Trade specialists from 65 countries that descended on the city in the Basque region of Spain were greeted by more than 1,200 exhibitors. The majority of the 18,500 attendees reportedly came from Morocco, Algeria, Colombia, Mexico, Peru, India, Turkey, and various countries in Western Europe.

Two of the halls were reserved for Ferroforma, while the new industrial maintenance, and pumps and valves opened the second day in another hall. Unlike most North American fairs, this show saw increased attendance on the second day, with even more expected to attend by the third day.

Following up on requests from exhibitors, there was a B2B meeting area set aside in Hall One. Over three days, 1,200 meetings between manufacturers, retailers, and distributors took place. However, the approach received some mixed reviews. Some exhibitors were less than keen to leave their exhibits and missed their meetings. But several exhibitors HARDLINES spoke with were quite happy with the process and the leads they gathered. In addition, they were pleased to see the growth in Ferroforma has undergone since 2013.

The next show will be in 2017 in Bilbao from May 23 to 26.

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Under new president, Fraser Valley moves to RONA

MISSION, B.C. — Fraser Valley Building Supplies in Mission, one of the largest dealers in British Columbia, is leaving TIM-BR MART Group for RONA. Ray Cyr, who was formerly the director of network development for RONA corporate in Western Canada, has stepped in as president of Fraser Valley.

Cyr takes over from Dave Nick, who founded the company in 1992 along with his brother Brad and their father, Ernie. “Going forward, we have a strong growth mandate for the company, strengthened by our alliance with RONA,” Cyr told HARDLINES.

The store is just a block away from a corporate RONA store on Lougheed Highway, which Fraser Valley has purchased and will close down at the end of June. In addition to the 25,000-square-foot store on Wren Street, Fraser Valley has another store in Cloverdale.

Both stores’ retail operations will be re-branded as RONA affiliate stores, while the company’s contractor and builder business will continue to bear the Fraser Valley Building Supplies name.

“We are happy to welcome Fraser Valley as a RONA dealer, offering them a business model that truly fits their expanding operations,” says Luc Rodier, EVP retail for RONA inc. “The lease for our corporate store on Lougheed Highway was soon ending and the site required major renovations, so the timing is perfect.”

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Canadian Tire “Showcase” aims to combine clicks with bricks

EDMONTON — Canadian Tire has opened the doors of its newest retail concept, a “Showcase” store in Edmonton that is also the retailer’s biggest store to date.

The store, details of which were first revealed at the 2014 Hardlines Conference by Vice President of Merchandising Greg Hicks, features 140,000 square feet of retail space spread over two storeys and 73,000 SKUs. In addition to its size, the store is unique in its aim to merge bricks and mortar more comprehensively than ever before with a shopper’s digital and online needs.

To support purchases made online, the store has 50,000 square feet of warehouse space to house inventory for online orders. Customers can pick up their online orders at a dedicated drive-through along the side of the building. The area will also be used for loading large items and bulk purchases.

The store’s 240 employees have access to more than 100 digital screens, a large exterior high resolution LED screen, digital flyer access, and product selectors throughout the store. The automotive department also features a car simulator that lets customers “test-drive” tires in different weather conditions before buying.

In the seasonal department, customers can create a 3D image of their backyard using the “Canada’s Dream Backyard and Patio Builder.” It was built internally at Canadian Tire’s “NEWcleus” digital lab in Winnipeg and utilizes virtual reality technology from Oculus.

Products throughout the store have been tailored to the Edmonton market, with key assortment extensions in truck and trailer, tools and outdoor living departments as well as an extensive Hunting and Fishing Pro Shop. The store’s Playing department features its own Hockey Canada Museum that includes jerseys, trophies, and other memorabilia from the Hockey Hall of Fame. The store also has a rapid shot simulator, which lets customers test their new hockey stick—and their slap shot—right in the store.

(To take a video tour of the store, click here.)

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RONA to introduce dealer conference before show

BOUCHERVILLE, Que. — RONA has revealed to HARDLINES that its upcoming trade show for its affiliate dealers and store managers will feature a conference the day before the show opens. The show will be held at the Palais de Congrès in Montreal September 10 and 11.

The pre-show sessions will include a corporate conference with presentations by RONA’s executive vice presidents. The afternoon will feature presentations on industry trends and best practices by leading industry experts. The presentations will be made in both English and French, or with simultaneous translation, to accommodate the attendees from across Canada.

The show is now in its third year in a traditional format that features individual vendors exhibiting their products. It replaces a format that previously presented vendors’ products in a merchandised setting as they would be found in a RONA store.

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CLASSIFIED ADS

Castle Building Centres Group Limited

Business Development Manager – Western Canada

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

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

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

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

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

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

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June 1 2015

Hardlines Weekly Newsletter

READING THIS ON A MOBILE DEVICE? CLICK HERE FOR THE MOBILE EDITION!

IN THIS ISSUE:

Stricter best practices a focus for Home Hardware CEO
Hardware dealer turns to crowd-funding
Canadian Tire CEO: a return to specialization
Home Hardware hosts Ontario’s Lieutenant-Governor
PLUS:
Peavey to open new store, Baeumler joins Lowe’s Canada president, Home Depot Canada Foundation helps homeless kids, Ace will help save bees, Spectrum and Jeld-Wen end agreement, Home Depot gets ready for hurricanes, Nicholson & Cates adds rail system, Kingfisher losses, Cologne Fair partners with Istanbul show —and more! ______________________________

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DID YOU KNOW…

…

that CMHC has downgraded its forecast for housing starts this year and next? No worries! The Hardlines Retail Conditions Seminar on June 24 will feature an update on Canada’s housing market, plus analysis of the latest trends and market growth in home improvement retailing. (We will release the Home Improvement Retail Report at this Breakfast.) The entire morning costs just $119, but buy the Retail Report at the same time and Breakfast is free! Hey, call us crazy! —Michael

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RETAILER NEWS

RED DEER, Alta. — Peavey Industries plans to open a new Peavey Mart store in the fall, this time in Strathmore, Alta. It joins the 32 stores the company already operates across Western Canada.

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TORONTO — Bryan and Sarah Baeumler join Lowe’s Canada President Sylvain Prud’homme and employees behind the counter today to help raise funds for families in need of safe and accessible housing. They’re at the Etobicoke Lowe’s store to celebrate the launch of a new in-store fundraising campaign for the Baeumler Family Foundation. Prud’homme and the Baeumlers are on hand greeting customers, assisting with the checkout process and informing customers about the BFF campaign to encourage them to donate. It’s part of a larger campaign by Lowe’s Canada, in partnership with Baeumler’s foundation.

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TORONTO — The Home Depot Canada Foundation has launched its annual The Orange Door Project fundraising campaign, which collects $2 donations from customers and gives all proceeds to local youth-serving organizations. Customers shopping in any of the 182 Home Depot stores can donate $2 at the checkout in exchange for a (paper) orange door. The proceeds stay in the community and go to support the housing and life-skills development programs at youth-focused charities in the store’s community. The campaign runs until July 2.

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WASHINGTON — U.S. co-op dealer Ace Hardware is the latest retailer to announce it will wind down use of bee-killing pesticides in its plants. Ace has announced it is willing to move away from products containing neonicotinoids, which has been linked to the global decline in bee populations. “Ace Hardware will be diligent in working with our vendors to take appropriate action to protect pollinators,” said Frank Carroll, vice president of merchandising at Ace Hardware Corp.

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ATLANTA — Hurricane season throughout many parts of the U.S. begins June 1, so Home Depot hosted a series of hurricane preparedness workshops for the third year in a row this past Saturday. The one-day event, held in nearly 700 stores from the Gulf Coast to New England, was designed to prepare residents in storm-prone regions ahead of hurricane season.

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LONDON — Kingfisher lost some £10 million in profits to volatile foreign exchange rates, but was buoyed by a jump of almost 40% in sales in Russia, where the company says economic uncertainty has encouraged homeowners to renovate before the ruble further weakens. The group’s retail profits increased 1.4% to £150 million, or 0.8% in comparable sales. The Screwfix chain, which caters to contractors in Britain, saw an increase of 15.4% to £244 million in comparable sales.

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OAK BROOK, Ill. — Ace Hardware has selected Chicago-based O’Keefe Reinhard & Paul as its strategic and creative advertising agency. OKRP will be charged with continuing to maintain and enhance Ace’s brand proposition of “helpful service, quality, and convenience.”

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SUPPLIER NEWS

COLOGNE, Germany — Eisenwarenmesse, the International Hardware Fair Cologne is becoming a partner of the second Eurasia Expo Tool. The trade fair for hand and power tools runs September 17 to 20 in Istanbul. The Cologne Fair says the move expands its commitment in Eurasia. The aim of the partnership is to bundle the resources of the two exhibition organizers and turn Eurasia Expo Tool into a key show for both Turkey and the Eurasian region. More than 150 exhibitors are expected, featuring building, automotive, manufacturing, furniture, sanitary, and DIY products to 5,000 trade visitors from Turkey and the neighbouring countries.

TORONTO — Spectrum HHI Canada has ended its distribution partnership of its Weiser residential locksets with Jeld-Wen, Spectrum HHI’s distributor in Western Canada. Spectrum HHI will work with its existing distribution network, which includes CanWel Building Materials, Chalifour Canada, Orgill, and local regional partners, to increase capacity to independent dealers and customers. According to a release by Spectrum HHI, “The mutual decision to re-evaluate the partnership came as a result of changing market dynamics and a strategic evaluation of their respective businesses.”

BURLINGTON, Ont. — Building materials distributor Nicholson and Cates has found a glass railing product to complement its Trex Deck and Railing Program. N&C has taken on the InvisiRail Glass Rail System to meet consumer demand for a premium aluminum rail system with a glass rail option.

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ECONOMIC INDICATORS

The forecast for housing starts in Canada has been downgraded. They are now expected to range between 166,540 and 188,580 units in 2015, with a point forecast of 181,618. That’s down from the February forecast of 154,000 to 201,000 starts, and a point forecast of 187,400. The effects of lower oil prices are being blamed for the revised estimates. For 2016, housing starts are expected to range from 162,840 to 190,830, with a point forecast of 181,800, down from the previous point forecast of 185,100. (CMHC)

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NOTED

A study released by Friends of the Earth and Pesticide Research Institute, Gardeners Beware 2014, surveyed 18 cities in the U.S. and Canada to discover that 51% of garden plants purchased at Lowe’s, Home Depot, and Walmart contained neonicotinoid pesticides at levels that could harm or kill bees. However, Home Depot and Lowe’s have joined companies such as RONA to eliminate bee-killing pesticides from their stores.

OUT AND ABOUT

Beverly and Katherine have just finished their visit to Ferroforma, the International Fair for Hardware, DIY and Industrial Supplies, in Bilbao, Spain. Next stop for Bev: the third Global DIY Summit, taking place June 11 to 12 in London. Keep track of the Hardlines Team @hardlinesnews or using the hashtag #HardlinesinEurope.

June 1, 2015 Volume

xxi, #22

“I don’t like money actually, but it quiets my nerves.” —Joe Louis (American heavyweight boxing champion, 1914-1981)

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Stricter best practices a focus for Home Hardware CEO

ST. JACOBS, Ont. — They may look the same from the outside, but the operations of each Home Hardware dealer across the country are not necessarily as homogeneous as Terry Davis would like.

Just one year into the job as CEO of Home Hardware Stores Ltd., Davis stresses that one of his priorities is to raise the bar for all his stores. “Our corporate strategy is to get all of our stores up to a level that all Canadian customers expect our brand to stand for,” he told HARDLINES in an exclusive interview.

Some of those practices include e-commerce, which all dealers are expected to participate in. “Once, dealers could pick and choose. Not anymore. There are a lot more mandatory business practices—and it’s my job to enforce these.”

Davis admits that not all dealers are onside with the stricter policies. With them, he says, it comes down to a frank and open conversation about their future—whether it’s with Home Hardware or elsewhere. He says if there’s not a fit, and the dealer is not ready to adapt, they are invited to leave the group. “I’d rather see you succeed as a competitor than fail as a Home Hardware dealer,” he tells them.

The desertion rate has been low—only 20 in total have left under these circumstances. Of those 20, Davis adds, three have been purchased by other Home Hardware dealers and are now back in the fold.

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Hardware dealer turns to crowd-funding

SEELEY’S BAY, Ont. — When Doug and Julie Wade became restless with the Toronto rat race, they chose the village of Seeley’s Bay, northeast of Kingston, for a change of setting. Pouring their savings and the severance payments from their city careers into the local Main Street Hardware store, they regained a customer base that had largely moved on under the previous owners. But the turnaround has eaten away at their savings and the couple now find themselves owing back payments in rent and taxes.

Now the Wades are turning to social media to help meet costs, and have raised almost all of the $10,000 they initially requested on GoFundMe—about half of what they need to keep the store going all told.

In the ’80s, Wade explains, the store was an award-winning independent hardware retailer. Then a new owner tried to reformat the store to “more of a flea market,” neglecting core inventory. Customers began voting with their feet and driving to the big boxes in larger towns like Gananoque, the site of Home Hardware’s largest dealership.

Since the Wades have returned to the store’s original format, many of those customers have returned. When the family began crowd-funding to get through this year, the response was overwhelming.

“The store’s got a great legacy and a great history, and we’re trying hard to restore it to its former glory,” he says, adding that the community response has been “nothing short of motivating and inspiring.”

(Full story on Main Street Hardware in the next edition of our print magazine, Hardlines Home Improvement Quarterly. Check out HHIQ here!)

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Canadian Tire CEO: a return to specialization

TORONTO — Canadian Tire did not roll over when Walmart came to Canada. But it may have stumbled a little. According to Canadian Tire President and CEO Michael Medline, the arrival of Walmart in 1994 was a wake-up call for the venerable Canadian retailer, which began repositioning itself to carry broader assortments. At one point, Canadian Tire even tried adding convenience food and grocery to some of its stores.

Long-term, however, these moves were not adequate to support the company’s growth. “We became more of a general merchant. We took our eye off the ball on certain heritage categories, like automotive and like sports,” says Medline.

In recent years, the company has moved away from a general store approach to “more of a collection of specialty stores,” Medline explains. “If you have the mindset to be a general store to compete against Walmart, you will get beaten by the specialty stores.”

Canadian Tire’s response in recent years has been to grow its own specialties, starting with automotive six years ago, which Medline admits was most in need of resuscitating. Medline ran the automotive division before taking the top job at Canadian Tire.

The latest area of focus for the company is the “Playing” business, which includes fitness and sporting goods. The company is also investing in re-invigorating its “Fixing” business, which covers tools, hardware, and paint.

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Home Hardware hosts Ontario’s Lieutenant-Governor

ST. JACOBS, Ont. — Home Hardware hosted the Hon. Elizabeth Dowdeswell, Ontario’s Lieutenant-Governor, at its St. Jacobs office and distribution centre last week, as part of the celebration of the 50th anniversary of the Canadian flag. Her Honour (l) was joined here by Joan O’Malley, who sewed the first Canadian flag; Paul Straus, president of Home Hardware; and Mayor Sandy Shantz of Woolwich Township.

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CLASSIFIED ADS

Castle Building Centres Group Limited

Business Development Manager – Western Canada

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

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

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

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

Dynamic Leader To Head BH Paints Jamaica
B-H Paints is a subsidiary of Harris Paints International Limited and one of the leading manufacturers and retailers of paint in Jamaica. The business has been operating for over 50 years in Jamaica and a great opportunity has emerged for a business leader to head the company. Harris Paints International Limited is a regional group of companies which distributes and retails paint, accessories and performance coatings in 17 countries across the region, with manufacturing and retailers operations in Barbados, Dominica, Jamaica and St. Lucia. Web site: http://championsofcolour.com/
Wolf Gugler Executive Search has been retained to conduct this search on Harris Paints’ behalf.
The head of this business unit will be responsible for the general management of all resources of the company in Jamaica. A key focus will be the ability to engage at diverse levels with the objectives of implementing decisions and the general progression of the business with profit optimisation and continuous improvement of shareholder value.
This position will report directly to the Chief Executive Officer of Harris Paints International Limited. The position will be based in Jamaica.
Duties will also relate to the following:
Commercial and Retail Sales and Marketing
Human Resource Management
Financial Management and Corporate Governance
Strategic Management
Production and Operations Management
Skills and behavioural attributes for the position:
Track record in planning and directing commercial and retail operations
Human Resource and Sales Management in developing and coaching teams to high performance
Excellent initiative and judgement, underpinned by strong values
Experience in strategic planning and execution
Ability to build strong business alliances through networking
Highly computer literate with Microsoft Office

Qualifications required:

Management degree or related area together with five years of corporate leadership experience
Strong verifiable record of driving sales leading to growth and profit optimization.
Experience in the Paint and Manufacturing Industry would be an asset.

A comprehensive package including salary, bonus and relocation assistance will be provided. Looking to repatriate to the Caribbean? This is your opportunity!
Interested and qualified candidates can contact Wolf Gugler in strict confidence. You can apply direct at www.wolfgugler.com/opportunities or call Wolf at 888-848-3006. All responses will be acknowledged.
Wolf Gugler Executive Search & Outplacement, www.wolfgugler.com

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May 25 2015

Hardlines Weekly Newsletter

READING THIS ON A MOBILE DEVICE? CLICK HERE FOR THE MOBILE EDITION!

IN THIS ISSUE:

Titan’s acquisition of Slegg leads gypsum dealer into retail
Changes at Lowe’s International as Aussie venture drains cash
Home Depot, Lowe’s results include strong Canadian comps
Castle dealers grow locally
RONA could add consumables as it cuts back other SKUs
PLUS:
Kindersley joins Castle, RONA eyes two store openings, Sears Canada tanks, Home Depot tests private-label credit card, Ace Hardware reports record quarter, Wal-Mart does better in Canada, Cologne L&G show, Lumber Liquidators CEO quits —and more! ______________________________

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DID YOU KNOW…

…

that the Hardlines Retail Conditions Seminar will feature analysis of the research in our newest Home Improvement Retail Report? This in-demand Report features EVERYTHING you need to know about industry size & growth, the top players, winning formats, hot provinces and newest retail trends. We release the Retail Report at the Breakfast on June 30. Join us and get the insider’s analysis of the latest trends and research in Home Improvement Retailing. Breakfast is just $119, but buy the Retail Report at the same time and Breakfast is free! I know, it’s insane, but that’s just how we are! —Michael

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RETAILER NEWS

BOUCHERVILLE, Que. — RONA is sticking to its plan of strategic expansion as it eyes possible sites for store openings in 2015. Two more stores will open by year’s end, joining the RONA proximity store in Halifax and the three new Reno-Depots (including the first two outside Quebec) already opened this year. CEO Robert Sawyer stressed to shareholders the significance of Western Canada as a field for expansion.

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TORONTO — Sales for Sears Canada Inc. tumbled by almost 10% in its first quarter. Total revenues for the period that ended May 2 were $697.2 million, down 9.7% from $771.7 million last year. Same store sales decreased 4.3%. The balance of the decrease in revenues was primarily attributable to lost revenues from store closings last year. The retailer’s net loss for the quarter was $59.1 million, compared to a loss of $75.2 million last year.

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ATLANTA — Home Depot continues to test a private-label credit card that it introduced last year in about 260 stores. The program offers features including terms and fuel rewards points. Although the company is generally pleased with the program, the data breach Home Depot experienced last year has delayed a final decision on the credit card’s viability.

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OAK BROOK, Ill. — Ace Hardware reported first-quarter 2015 revenues of $1.2 billion, a 10% increase over the same period a year earlier. Increases were noted across all departments, with paint, lawn and garden, auto and outdoor living, tools, and electrical showing the largest increases. Net income climbed 22.5% to $29.9 million. Same-store sales were up 9.2%, consisting of a 5.3% increase in customer count and a 4.2% increase in average transaction size.

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BENTONVILLE, Ark. — Wal-Mart reported revenues of $114.88 billion, falling short of the $116.23 billion estimated, while revenues rose 2.7% from last year excluding the foreign currency effect. Same-store sales were up 1.1%, as opposed to prior guidance of 1% to 2%, and the estimates for 1.5%. The world’s largest retailer said it expects earnings per share of between $1.06 and $1.18 in the second quarter. Wal-Mart’s Canadian stores enjoyed a 3.7% increase in sales, while comp sales were up 1.8%, the fourth consecutive quarter of comp sales growth. Sales in Canada got a lift from Easter sales, seasonal, and improving strength in its overall food business.

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SUPPLIER NEWS

COLOGNE, Germany — spoga+gafa 2015 will take place in Cologne August 30 to September 1. Around 2,000 suppliers from over 60 countries will exhibit their new products. Garden living, which encompasses garden furniture, garden equipment, decoration, and new products from the “Sports & Games” sector, is the largest segment. In addition, the show will offer chemicals and soils, machines, tools and accessories, garden equipment, garden sheds, and water and lighting. More info is available here.

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MONTREAL — High wood costs in the Abitibi-Témiscamingue region have prompted Tembec to suspend operations at its three sawmills. CEO James Lopez cited the provincial forestry regulations in effect since the spring of 2013 as a cause in the rising prices, and said the company is appealing to the Liberal government of Philippe Couillard, in office since last year, for an additional annual volume of about 300,000 m³ of softwood. Tembec’s sawmills in La Sarre, Senneterre, and Béarn, Que., will close for two weeks.

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PEOPLE ON THE MOVE

BW Creative Railing Systems has announced the appointment of Tom Hobbis as national sales manager for the Canadian dealer market. A graduate of Royal Roads University in commerce, Hobbis joins the company from Metrie, formerly Sauder Industries. The appointment frees up current National Sales Manager James Webb to focus exclusively on the U.S. market.

Lumber Liquidators President and CEO Robert Lynch has resigned from the company suddenly. He took the company—and the industry—by surprise with the news. Company founder Thomas Sullivan has stepped in as acting CEO while Lumber Liquidators begins a search for a new chief executive.

ECONOMIC INDICATORS

Retail sales rose for the second consecutive month in March, advancing 0.7% to $42.5 billion. Despite these increases, retail sales remained below their historical peak recorded in November 2014. Sales in March were up in seven of 11 sub-sectors, representing 71% of retail trade. Building material and garden equipment and supplies dealers reported higher sales for the fourth month in a row with an increase of 1.6%. (StatCan)

Wholesale sales rose 0.8% to $53.9 billion in March after two consecutive monthly declines. Higher sales were recorded in five of seven sub-sectors, accounting for 66% of total wholesale sales. The lumber, millwork, hardware and other building supplies sub-sector was up 3.0% from February and up a healthy 10.7% year-over-year. (StatCan)

OUT & ABOUT

Beverly and Katherine are off to Europe to cover the trade show, Ferroforma, the International Fair for Hardware, DIY and Industrial Supplies, in Bilbao, Spain. Then Bev heads to London for the third Global DIY Summit, taking place June 11 to 12 in London. Keep track of them @hardlinesnews or using the hashtag #HardlinesinEurope.

May 25, 2015 Volume

xxi, #21

“Most of us would rather risk catastrophe than read the directions.” —Mignon McLaughlin (American journalist and author, 1918-1983)

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Titan’s acquisition of Slegg leads gypsum dealer into retail

VAUGHAN, Ont. — For Doug Skrepnek, one of the principals of WSB Titan, the acquisition of Slegg Lumber last year was just part of an ongoing growth strategy for the giant gypsum dealer.

The company already consists of some of the largest commercial and gypsum supply dealer (GSD) locations in Canada—WSB stands for Watson-Shoemaker-Beauchesne. The addition of Slegg, with nine retail locations and a door plant on Vancouver Island, plus one yard on Salt Spring Island and a contractor location in Vancouver, not only expands Titan’s footprint to 36 points of sale, but leads it into a more retail-oriented building materials business model.

Skrepnek is excited about the retail side that Slegg presents, calling it “a great foray into that segment of the business for us.” He wants the sales team at Slegg, which is much more customer facing than his other sites, to be well trained. That includes using product knowledge and sales skills training from the North American Retail Hardware Association.

Slegg’s product mix, which is much broader than a typical GSD, opens doors for Titan. “We can now observe and monitor whether some of those product lines will be a good fit for our dealers”—especially in smaller centres, “where a builder buys his own materials, things like doors, mouldings and siding. It could be very advantageous to our locations in outlying areas.”

Does Skrepnek anticipate more growth in the near future? “Slegg was a big acquisition!” he admits. “We’re taking a breath.”

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Changes at Lowe’s International as Aussie venture drains cash

MOORESVILLE, N.C. — Lowe’s international division, which oversees Canada, Australia, and Mexico, has undergone some reorganization. Doug Robinson, president of international operations and development, has stepped back from his role for personal reasons. He was replaced earlier this year Richard Maltsbarger, chief development officer, who has also been appointed to lead international operations and development.

Robinson is familiar to the Canadian industry as the man who led Lowe’s entry into Canada in 2007. His first successor was Don Stallings, a regional VP who had helped Lowe’s build its business in Texas. Stallings eventually moved to Australia to head up the Masters Hardware chain, a joint venture between Lowe’s and Australia’s largest retailer, Woolworths. He was succeeded here by Alan Huggins, who had been on the operations side at Lowe’s Canada since its inception. Huggins left in 2013 to work with Robinson as VP international operations and development. Sylvain Prud’homme, a former EVP from Loblaw, was then hired to head up Lowe’s Canada.

Now, Huggins is no longer with Lowe’s, either. In addition, Prud’homme has replaced Robinson on the board at Masters.

While the departure of Robinson is unrelated to the performance of Lowe’s in Australia, the company there is facing a different situation from the one in Canada. Growth down under came faster, but at a cost. With 53 stores (compared with 38 in Canada), the Masters chain has lost more than AU$3 billion (CA$2.9 billion) so far, and stores there continue to lose sales, with average sales per store sinking below AU$20 million (CA$19.5 million). Break-even is considered to be AU$30 million. The company is expected to lose up to AU$200 million this year.

In Canada, Lowe’s was slow to catch on with customers, but under Prud’homme sales have taken off in the last two years and per-store sales are reportedly ahead of the U.S.

(How big are Lowe’s sales in Canada? Find the answer in our Who’s Who Directory of Retailers and Buying Groups! —MM)

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Home Depot, Lowe’s results include strong Canadian comps

MOORESVILLE, N.C. & ATLANTA — Both Lowe’s and Home Depot posted solid profits and sales for the first quarter. While Home Depot’s profits grew at a rate almost double that of its rival, Lowe’s managed to squeeze out a bigger increase in sales for the quarter.

Sales for Home Depot were up 6.1% to $20.9 billion, as were same-store sales, while U.S. stores had positive comp sales of 7.1%. Lowe’s sales increased 5.4% to $14.1 billion from $13.4 billion, while same-store sales for the quarter increased 5.2%. The number-two home improvement retailer had Q1 net earnings of $673 million, up 7.8%, while net income for Home Depot rose 14.5% to $1.58 billion.

Both companies boasted healthy performance from their operations in Canada. Lowe’s had its eighth consecutive comp sales increase in Q1, which reached into the double digits–and its highest comp since entering Canada in 2007. Home Depot Canada posted comps in local currency above the company average, representing 14 consecutive quarters of positive comps.

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Castle dealers grow locally

MISSISSAUGA, Ont. — Kindersley Castle Building Centre in West-Central Saskatchewan is the newest member to join Castle Building Centres Group. The operation is a start-up partnership established by Richard Reaburn, Melody Fries, and Sheldon Goodheart.

Reaburn and Fries, formerly with Namraw Lumber in Kindersley, have been in the hardware and building materials industry for more than 20 years. Their 5.2-acre lot will be the site of a 12,500-square-foot retail storefront, with the remaining space for warehouse, lumberyard, and customer parking. A grand opening is scheduled for late summer or early fall.

Like many independents, Castle members are also growing locally, buying up local competitors or opening new greenfields operations. The most recent is Peterborough, Ont.-based Alf Curtis Home Improvements, which will open its third Eastern-Ontario location, this time in Belleville. Founder Alf Curtis first opened in Peterborough in 1975 and erected a second location in Lindsay, Ont., in 2005.

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RONA could add consumables as it cuts back other SKUs

BOUCHERVILLE, Que. — RONA stores could offer a wider selection of consumer products and impulse purchases, CEO Robert Sawyer indicated at a press conference following the company’s annual shareholders’ meeting last month.

Gesturing to his bottled water, Sawyer suggested that more SKUs could be given over to items such as that—within reason, he added. Despite his own grocery background, Sawyer contrasted the company’s cautious approach with that of Canadian Tire, which is, he said, “becoming a grocery store.”

The CEO’s comment is in keeping with RONA’s strategy of growth while focusing on its core business and transforming its banners. This includes the back-to-basics overhaul of its Reno-Depot banner in Quebec and its expansion outside of that province.

Sawyer underscored that the company is happy with Reno-Depot’s core business of catering to contractors. The overall trend has been to reducing SKUs that don’t serve that contractor business. Reno-Depot has already streamlined its inventory to that end and similar cuts are anticipated for other RONA stores.

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FROM THE ARCHIVES: This week in 1995

Home Depot opened its largest Canadian store exactly 20 years ago. The retailer took over 11 acres at Toronto’s Stockyards and erected a 151,000-square-foot outlet. At the same time, sites were announced for Saskatoon, Winnipeg, Regina, and Ottawa. Also: Canadian Tire actively expands its Quebec stores and IRLY gets a U.S. member. Check out this blast from the past for yourself!

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CLASSIFIED ADS

Qualifications required:

Management degree or related area together with five years of corporate leadership experience
Strong verifiable record of driving sales leading to growth and profit optimization.
Experience in the Paint and Manufacturing Industry would be an asset.

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May 18 2015

Hardlines Weekly Newsletter

READING THIS ON A MOBILE DEVICE? CLICK HERE FOR THE MOBILE EDITION!

IN THIS ISSUE:

Despite profit drop, Q1 sales strong for Canadian Tire
Buoyed by improved Q1 sales, RONA pursues “cautious” growth
Lowe’s takes 13 Target sites, plus DC in Ontario
Roussy leaves TSC, Jenkins steps in as COO
TIMBER MART hosts off- road vehicle contest
PLUS:
Home Hardware opens biggest store yet in Quebec, Canadian Tire’s drop in profits, Sexton Group’s new member, CanWel’s deal with Knauf, Intertape Polymer’s first quarter, Denise Deacon’s departure —and more! ______________________________

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DID YOU KNOW…

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that we will launch our Annual Retail Report at the HARDLINES Retail Conditions Breakfast on June 24? That’s right! You’ll get valuable top-line data from this incredible Report-including industry size, growth forecasts, and strategies of the top players-to help you build your business plan for the year ahead. We’ll reveal the companies-and trends-you need focus on to win in 2016. PLUS: an update on housing markets across Canada, presented by Peter Norman, Chief Economist with Altus Group. Click here for more info!

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RETAILER NEWS

ST. JACOBS, Ont. — Home Hardware’s latest store opening in Quebec is also the co-op’s biggest store to date in that province. The Rousseau family opened a brand-new store last week in Roberval that replaces an older store they had there.
The new one weighs in at 66,000 square feet, which includes 37,500 square feet of retail space, plus an enclosed drive-through. The family already owns three other stores in the Lac St. Jean region. All four stores, which are operated under the Reno-Max name, are branded Home Hardware Building Centres.

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WINNIPEG — Sexton Group continues to expand its range of member dealers. The latest to join the privately held buying group is TS Auto & AG Supply in Wilkie, Sask. Troy and Sheila Wildeman opened up the business in 1997 with a focus on hardware-specific categories in their market. Over the years the business expanded to include power tools, plumbing, electrical and a full complement of farm hardware.

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ST. JACOBS, Ont. — Home Hardware’s very first store got a new home last week. St. Jacobs Home Hardware celebrated its new location on the other side of the main street of the small Ontario town that is also home to the dealer-owned co-op’s head office and distribution centre. Seventy years ago, the store was managed by Henry Sittler, who hired Walter Hachborn to handle sales. When owner Gordon Hollinger passed away, Sittler and Hachborn purchased the store. The original location will be renovated to accommodate an expanded Home Furniture store and a museum of Home Hardware history.

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SUPPLIER NEWS

VANCOUVER — CanWel Building Materials has entered into a multi-year agreement with Knauf Insulation to distribute Knauf’s glass wool insulation products to the LBM channel across Canada. “Knauf Insulation is the world leader in manufacturing and sales of sustainable glass wool insulation featuring their proprietary Ecose Technology,” said Marc Seguin, president of CanWel, in a release. Knauf was formerly distributed in Canada by Guardian Building Products Distribution Canada. But that distributor pulled out of Canada unexpectedly at the end of 2014.

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MONTREAL — Intertape Polymer saw first quarter profits rise to $11.8 million, from $11.6 million last year, although revenues declined 5.5% to $189 million. Gross margins fell from 21.4% to 19.6%, impacted by duplicate overhead costs related to the relocation of the company’s South Carolina plant. Meanwhile, international sales suffered from the strength of the U.S. dollar. CEO Greg Yull called the results “in line with expectations,” adding that the end of the quarter saw “a return to more normal levels of demand” across product categories.

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PEOPLE ON THE MOVE

Denise Deacon is leaving A. Richard after 10 years there. She is moving over to Rolf C. Hagen, a pet supply company, as the national account manager for Walmart and Canadian Tire. She will also have responsibilities in Western Canada.

At True Value Company in Chicago, Deborah O’Connor will join the company as senior vice president and CFO, succeeding current CFO David Shadduck. O’Connor worked most recently at OfficeMax, where she was the senior vice president of integration and finance, playing a critical role in the OfficeMax and Office Depot merger.

The Retail Council of Canada has announced that the Billes family, founders of Canadian Tire Corp., will be the 2015 recipient of council’s Lifetime Achievement Award. The accolade is awarded for outstanding business success and community service. Martha Billes, daughter of founder A.J. Billes and Canadian Tire’s controlling shareholder, will accept the award at a gala in June.

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ECONOMIC INDICATORS

The New Housing Price Index was unchanged in March, following a 0.2% increase in February. Monthly price increases in eight metropolitan areas were offset by decreases in Saint John, Fredericton and Moncton, Saskatoon, Ottawa–Gatineau, London, Regina and Edmonton. The CMA of Calgary recorded the largest price decrease in March, down 0.4%. The combined region of Toronto and Oshawa, and the census metropolitan area of Winnipeg, recorded the largest price increases in March, both up 0.4%. (StatCan)

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OVERHEARD…

“The first quarter is always our smallest, but I am pleased to see continued momentum from all of our businesses.”—Michael Medline, CEO of Canadian Tire Corp., commenting on the company’s latest results, which suffered due to falling gas prices.

May 18 , 2015 Volume

xxi, #20

“He who laughs, lasts.” —Robert Fulghum (American author and painter, 1937- )

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Despite profit drop, Q1 sales strong for Canadian Tire

TORONTO — In its first quarter, Canadian Tire Corp. reported a 3% drop in profits owing to higher taxes and poorer performance in the company’s financial services business, plus lower gasoline prices. However, retail sales were up 4.5% overall for the Canadian Tire Retail division. The company also enjoyed a rise in same-store sales for each of its principal banners: 4.7% at Canadian Tire, 8.6% at FGL Sports, and 5.5% at Mark’s.

CEO Michael Medline told HARDLINES that improvements over recent years in Canadian Tire’s automotive and apparel businesses were not made at the expense of core hardware categories. The “Living” and “Working” departments are getting bolstered now, “but behind the scenes we’ve been working on these other departments as well.”

He says, “Living is as strong as we’ve ever seen it,” and while he believes the company can “still do more” with Fixing, he adds that this category has always been very strong. The biggest gains, he says, have been in seasonal. “We’re really winning that battle.”

Medline also emphasized the focus the company’s putting on grooming buyers to be experts in their categories, rather than moving them every two or three years as in the past. “We want people staying in their jobs and getting results.”

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Buoyed by improved Q1 sales, RONA pursues “cautious” growth

BOUCHERVILLE, Que. — Positive first-quarter results saw RONA’s sales increase by 1.9% and its losses shrink to $11.7 million from $16.5 million.

This mainly reflects a 5.9% increase in RONA’s Retail segment, stemming from a solid performance in Western Canada and repositioning of the Réno-Dépôt banner in Quebec. These factors led to a 5.0% increase in same-store sales in RONA’s Retail segment. In the Distribution segment, revenues were down 5.6%, primarily due to the net change in the number of dealer-owners and poor weather in Quebec, but as the company narrows its losses, its share price continues to climb.

With healthy increases on the retail side, the company is moving ahead with the acquisition of the lease for the former Target store in Chilliwack, B.C. The new site will allow RONA to enlarge its current operation in the Fraser Valley city, and was one of six former Target properties for which the company participated in bidding.

The acquisition is part of RONA’s strategy of cautious growth. “We are not an organization…with deep pockets,” said CEO Robert Sawyer (shown here flanked by chairman Robert Chevrier on the left and CFO Dominique Boies) in explaining the company’s preference for targeted expansion efforts. RONA is focusing on Western Canada, with a preference for relocating existing smaller stores to larger settings, and the plans for the Chilliwack store fit both those priorities.

Likewise, Sawyer acknowledged a move to carrying a slightly wider variety of consumer products, without “becoming a grocery store,” while stressing that a number of SKUs not serving the core business had been eliminated.

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Lowe’s takes 13 Target sites, plus Milton, Ont., DC

TORONTO — Lowe’s Canada has reached an agreement to acquire 13 former Target sites as well as Target’s distribution centre in Milton, Ont. The deal, worth about $151 million, follows a real estate auction held after Target’s withdrawal from the country.

The locations include markets where Lowe’s is currently under-represented. Under bankruptcy law, the agreement still needs court approval to go into effect: the process is expected to be completed by the end of June.

Lowe’s Canada president Sylvain Prud’homme said the new stores “will accelerate our expansion across the country, enhancing our presence in Western Canada and strengthening our base in Ontario.”

According to a spokesperson from Lowe’s head office in Charlotte, N.C., the company “carefully evaluated the available sites and bid on locations that we believe best complement our existing store base or provide access to new markets where we believe the Lowe’s brand and offering will be well received.”

However, Lowe’s would not reveal the exact locations of the new sites, saying these will be disclosed when the deal has closed, likely by June 30.

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TIMBER MART hosts off-road vehicle contest

VAUGHAN, Ont. — TIMBER MART has reprised its national off-road vehicle contest in partnership with recreational-vehicle manufacturer, Polaris. Through to July 19, TIMBER MART stores across Canada will be giving away eight off-road vehicles valued at $100,000.

The contest is open to the public and ballots will be accepted in-store only, designed to increase foot traffic in TIMBER MART stores through the key spring and summer seasons. The contest was confined in prior years to Ontario members, but was expanded this year. “We decided to expand it across Canada and give away two vehicles per region, one of each in the Atlantic, in the province of Quebec, Ontario, and out west,” says Jon Irwin, TIM-BR MART Group’s vice president of retail services.

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Roussy leaves TSC, Jenkins steps in as COO

LONDON, Ont. — David Roussy has tendered his resignation as president and CEO of TSC Stores, effective June 4. Roussy joined the retail farm and hardware chain in June 2006, coming over from Canadian Tire Corp.

He is moving over to Golfsmith International as CEO. He will oversee a chain that operates more than 160 stores and two e-commerce sites, under the Golfsmith brand in the U.S. and Golf Town in Canada.

Darryl Jenkins, who is currently chief merchandising officer, will take on the role of COO, assuming responsibility for all operating functions of the company. He will report directly to the board. Scott Bennett remains in place as vice president, merchandising and will lead the buying team. Larry Martel will continue as VP of finance.

Roussy joined TSC when the retailer’s owners brought in Birch Hill, a private equity company based in Toronto, as investors. That company in turn brought Roussy, who was a VP at Canadian Tire, along with Greg Hicks—also from Canadian Tire—to serve as COO. Together, they led the company as it grew to more than 50 stores representing a quarter of a billion dollars in retail sales annually (source: Hardlines Who’s Who Directory. Don’t tell me you haven’t bought one yet? -Your Shameless Editor).

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FROM THE ARCHIVES: This week in 1995

Already having trouble fitting all the news in every week, we added a page to the HARDLINES fax newsletter and called it HARDLINES-Extra. Exactly 20 years ago, Cashway, a 55-store chain in Ontario, was looking for a buyer under the leadership of investment wunderkind Craig Graham. A buyer was not found until RONA picked it up five years later. Graham went on to run Liquidation World (later Big Lots) among other companies. He is currently executive chairman and CEO of Rainmaker Entertainment Inc., which makes computer-generated animated films. Click here to read it yourself!

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CLASSIFIED ADS

Qualifications required:

Management degree or related area together with five years of corporate leadership experience
Strong verifiable record of driving sales leading to growth and profit optimization.
Experience in the Paint and Manufacturing Industry would be an asset.

______________________________________________________________

IN THIS ISSUE:

DID YOU KNOW…

RETAILER NEWS

SUPPLIER NEWS

PEOPLE ON THE MOVE

ECONOMIC INDICATORS

OVERHEARD…

July 20, 2015 Volume xxi, #29

SUMMER PUBLISHING SCHEDULE

IN THIS ISSUE:

DID YOU KNOW…

RETAILER NEWS

SUPPLIER NEWS

PEOPLE ON THE MOVE

ECONOMIC INDICATORS

OVERHEARD…

July 13, 2015 Volume xxi, #28

SUMMER PUBLISHING SCHEDULE

IN THIS ISSUE:

DID YOU KNOW…

RETAILER NEWS

SUPPLIER NEWS

CORRECTION

PEOPLE ON THE MOVE

ECONOMIC INDICATORS

OVERHEARD…

July 6, 2015 Volume xxi, #27

IN THIS ISSUE:

DID YOU KNOW…

RETAILER NEWS

SUPPLIER NEWS

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PEOPLE ON THE MOVE

ECONOMIC INDICATORS

June 22, 2015 Volume xxi, #25

IN THIS ISSUE:

DID YOU KNOW…

RETAILER NEWS

SUPPLIER NEWS

PEOPLE ON THE MOVE

ECONOMIC INDICATORS

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OUT AND ABOUT

June 15, 2015 Volume xxi, #24

IN THIS ISSUE:

DID YOU KNOW…

RETAILER NEWS

SUPPLIER NEWS

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PEOPLE ON THE MOVE

ECONOMIC INDICATORS

NOTED

OUT AND ABOUT

June 8, 2015 Volume xxi, #23

IN THIS ISSUE:

DID YOU KNOW…

RETAILER NEWS

SUPPLIER NEWS

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ECONOMIC INDICATORS

NOTED

OUT AND ABOUT

June 1, 2015 Volume xxi, #22

IN THIS ISSUE:

DID YOU KNOW…

RETAILER NEWS

SUPPLIER NEWS

PEOPLE ON THE MOVE

ECONOMIC INDICATORS

OUT & ABOUT

May 25, 2015 Volume xxi, #21

IN THIS ISSUE:

DID YOU KNOW…

RETAILER NEWS

SUPPLIER NEWS

PEOPLE ON THE MOVE

ECONOMIC INDICATORS

OVERHEARD…

May 18 , 2015 Volume xxi, #20

NEWS

July 20, 2015 Volume

xxi, #29

July 13, 2015 Volume

xxi, #28

July 6, 2015 Volume
xxi, #27

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June 22, 2015 Volume

xxi, #25

June 15, 2015 Volume

xxi, #24

June 8, 2015 Volume

xxi, #23

June 1, 2015 Volume

xxi, #22

May 25, 2015 Volume

xxi, #21

May 18 , 2015 Volume

xxi, #20