March 2, 2015 Volume

xxi, #9

“Laughter is the sun that drives winter from the human face.” —Victor Hugo (French author and poet, 1802-1885)

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Orgill steps up Canada-focused services at latest show



ORLANDO, Fla. – Despite difficult winter weather in parts of the U.S. and Canada, Orgill’s Spring Dealer Market welcomed retailers from all over the world to the Orange County Convention Centre last week. Those dealers included some 200 independents from Canada, of which at least half were members of Castle Building Centres Group.

Exhibitors’ booths also featured more Canadian reps, as vendors recognize the growing importance of this show to their customers. In fact, the latest Orgill show featured more Canadian vendors than ever before, including RCR’s Rick Pitre, regional sales manager, Central and Western Canada, shown here with Mario Giannetti of Ottawa’s Preston Hardware.

With more than one million square feet of exhibit space, three model stores, and massive Product Category Showcases, this was Orgill’s biggest show to date. It played host to some 2,200 vendors from across all the core categories. A lot of dealers—from a range of banners—were at the show for the first time. “With a show this size, it’s important for dealers visiting it to come prepared,” said Ken Jenkins, president of Castle. “They need to set their budget, understand their needs. Have a plan to work the show or it can be overwhelming.”

Three model stores offered ideas for store layout and design ideas, including one aimed at Canuck dealers. North American Home Centre featured Canadian-compliant products (now more than 100,000) plus merchandise displays with a pro focus.

For the first time at this show, Orgill featured a Canadian pallet buy section, as well. Despite the falling value of the Canadian dollar, show pricing did not reflect any pricing movement (see our interview with Orgill president Ron Beal in last week’s edition. —Editor). 

Jenkins, whose organization has worked closely with Orgill since its early days selling in Canada, stressed that Orgill has a real commitment to this market. Its motto, he said, is to grow dealer by dealer. “Every Canadian retailer should attend an Orgill market at least once to understand the opportunity.”

Orgill also began signing up attendees for its Fall Dealer Market, which will be held in New Orleans August 27-29. Click here or more information.

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Home Depot, Lowe’s ride U.S. recovery to strong year-end

MOORESVILLE, N.C. & ATLANTA —Big box giants Home Depot and Lowe’s are riding the turnaround in the U.S. housing market with strong fourth-quarter results.

Home Depot reported Q4 sales of $19.2 billion, up 8.3% from $18.7 billion, while same-store sales were positive 7.9% (U.S. stores enjoyed comps of 8.9%). Net earnings for the fourth quarter of fiscal 2014 were $1.4 billion, up 43.8%.

Lowe’s reported net earnings of $450 million for its quarter ended January 30, an increase of 47.0%. Sales for the fourth quarter increased 7.6% to $12.5 billion, with same-store sales up 7.3%—and same-store sales in the U.S. up 7.4%. The company also reported that the Canadian business had its seventh consecutive quarter of double-digit increases as the Lowe’s banner continues to gain traction with Canadians.

For the year, Home Depot’s sales increased 5.5% over 2013 sales to $83.2 billion. Total same-store sales for the year increased 5.3%, and comp sales for U.S. stores were positive 6.1%. Net earnings reached $6.3 billion, up 17.8%. Lowe’s results were comparable, with full-year net earnings up 18.0% to $2.7 billion on sales that reached $56.2 billion, a 5.3% increase. Same-store sales increased 4.3%, both on a consolidated basis and for the U.S. business.

Home Depot’s results reflect a pretax gain of $323 million related to the sale of a portion of the company’s equity ownership in HD Supply Holdings, Inc. Costs related to a data breach of its customer files last year added a net expense of $33 million.

For fiscal 2015, Home Depot expects sales growth of about 3.5% to 4.7%, with same-store sales reaching 3.3% to 4.5%. Lowe’s anticipates total sales to increase 4.5% to 5.0% and same-store sales to rise 4.0% to 4.5%. Home Depot plans to open six new stores and Lowe’s expects to open 15-20 stores in the coming year.

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Lowe’s new style expert underlines focus on women

TORONTO — In its spring product preview, held recently at a club in Toronto’s hip West End, Lowe’s showcased its plans for reaching out to the female shopper, with an emphasis on home accessories for the outdoors. Two stores in Ontario, in Burlington and Cambridge, which opened last year, have already been highlighting the appeal to women with brighter, more attractive retail spaces, and a current retrofitting of the Hamilton, Ont., location will continue until the company is satisfied it’s up to par.

The recruitment of Cindy Jardim as styles and trends director for Lowe’s Canada is another sign of the company’s investment in its female customers, which Jardim says will “really differentiate us from the other guys.”

Jardim comes to Lowe’s from Sears Canada, which she joined in 2003 as a buyer, moving up the ranks as a brand and trend manager, most recently as associate vice president for private brands and trends in home and hardlines. Her job is to search the fairs, markets, and boutiques of North America and Europe for the next trends on the horizon on behalf of Lowe’s Canada.

The push to attract women is part of a two-pronged growth strategy for Lowe’s, along with an emphasis on sales to contractors.

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British DIY retailer’s PR stunt ties public in knots

LONDON — The recent release of the movie, “50 Shades of Grey,” has prompted UK home improvement retailer B&Q to prepare its employees for a possible rise in rope and duct tape sales.

At least, that’s what the public was led to believe. The erotic movie, which opened on Valentine’s Day, features a scene of a couple purchasing products from a hardware store that can be used for bondage-related activities.

A memo reportedly sent to B&Q’s 359 stores called “Staff Briefing – Preparation for Fifty Shades of Grey Customer Queries,” urges employees to be polite if customers ask for products to help them recreate activities depicted in the film. The memo notes that products are recommended “for their designed purposes.” Staff are further advised to deal with film-related queries in a “polite, helpful and respectful manner.”

However, it all turned out to be a PR gag. As a spokesperson from B&Q said, “We can confirm that the leaked memo was indeed a bit of fun. B&Q, the public, and the media have been entertained over the past few days and we are looking forward to a big weekend. We would have confessed to this sooner, but our hands were tied.”

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Home Depot Canada presents softer side

TORONTO — Home Depot Canada’s seasonal buying team presented the retailer’s spring and summer lines recently, with support from some of décor and design’s hottest style mavens and bloggers, including Chris Palmer, a finalist in the TV show, “Canada’s Handyman Challenge.” And the focus was definitely on the softer side of home improvement.

Ganesh Krishnan, senior merchant, seasonal, and Dara Greenberg, senior merchant, barbecue, introduced a range of products, including a DIY vignette by Tiffany Pratt, a designer and stylist (shown above), that had been created using only products from Home Depot. Many of them put an emphasis on flexibility of application, being suitable either in a backyard setting or on a condo patio. There were also lots of barbecues at lower price points, including a charcoal grill that retails for $80.

Home Depot has even begun selling marinades and sauces to round out its barbecue assortments.

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THIS WEEK IN 1995

A.W.A.R.D. was once the dominant buying group for independents in Atlantic Canada. Part of the now-defunct Matreco umbrella buying group, it was affiliated with Tim-BR Mart Ltd., (now TIM-BR MART Group), Homecare in Ontario, and Le Groupe BMR in Quebec. Over time, both A.W.A.R.D. and Homecare became part of TIM-BR MART. Our second edition of HARDLINES reported on A.W.A.R.D. ’s efforts to roll out more sophisticated merchandising for its members. Also: Home Depot Canada announced plans to open its largest store yet in Canada. (Click here to read some classic news and typos from 20 years ago! —Editor).

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CLASSIFIED ADS

Retail Specialist – Canada

Position Summary:

As a growing company, we are always looking for new team members to help us continue in our success.  Orgill, Inc. is currently seeking a Retail Specialist in Ontario and Newfoundland to represent Orgill, Inc. to prospective and existing retail customers. This employee will analyze customer needs and offer products, programs, solutions, and services to retail hardware stores, lumberyards, and farm & ranch supply dealers. This is not an entry level sales position, nor is it one for someone who does not have experience in our industry.

Responsibilities:

• Increase market share with existing customers by consulting with store owners and managers on how Orgill can help their businesses be more successful and effectively compete in their individual markets. 
• Identify, qualify and develop prospective customers by establishing rapport, identifying unique needs and addressing them with Orgill solutions. Prepare and present professional sales proposals. 
• With a high degree of accountability, develop and implement weekly action plans to maximize sales with effective scheduled sales calls and travel itineraries.

Requirements:

• Must have in-depth and up to date knowledge of standard concepts, practices, and procedures within the hardlines industry.
• Must have experience in the wholesale or retail hardware, lumber, building materials and/or farm supply trade.
• Must have a working knowledge of email, internet, and Microsoft Office computer applications.
• Must have a valid driver’s license and a safe driving record.
• Prefer candidate with Bachelor degree

To Apply:

Please submit resumé, and salary history to: mvallecillo@orgill.com

For more information about Sales Careers visit www.orgill.com

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National distributor of wood, metal and automotive
machinery and accessories seeks an experienced

Sales Representative
for Alberta

Ideal career opportunity for an aggressive, self-motivated individual with excellent interpersonal and communication skills. These skills, coupled with extensive knowledge of the market, would put you in good standing to join our aggressive and expanding company and for substantial earnings potential.

Please forward cover letter and resume to:

Ted Fuller
fax 519-896-6497
email tfuller@kingcanada.com

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February 23, 2015 Volume

xxi, #8

“The fellow that owns his own home is always just coming out of a hardware store.” —Kin Hubbard (American cartoonist, humorist and journalist, 1868-1930)

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In the beginning: HARDLINES started 20 years ago

SPECIAL REPORT — “Castle Announces Deal with Cotter.” That was the very first headline of the very first issue of HARDLINES, 20 years ago.

It was sent from a small office, barely a closet, in a basement with ceilings so low anyone over six feet tall had to stoop to enter. A single land line handled the few calls that came in. But a second line handled faxes generated by a fax software program to manage subscriptions.

The early days of what would become the Hardlines Information Network were humble ones, with a fax newsletter going out every other week to more than 350 individual subscribers. That meant more than 350 individual dial ups to more than 350 different fax lines. At its peak, the HARDLINES fax newsletter took 26 hours of non-stop dialling to transmit—from Saturday afternoon to Sunday evening.

Now, every Monday morning just after midnight, thousands of emails are sent in the blink of an eye from the funky offices of the New World Headquarters™. Not only that, but we issue free Daily News and Breaking News Alerts throughout the week. That amounts to about 145,000 words of text every year. That’s like reading “The Two Towers” by J.R.R. Tolkien, or “The Last of the Mohicans” by James Fenimore Cooper!

This week in 1995 (okay, last week! —Editor) we reported on the supply arrangement between Cotter Canada (now TruServ Canada) and Castle Building Centres Group. The deal was struck by Castle’s newly appointed general manager, Pro Wylie, and David Grubbe, who had taken the helm of Cotter just a year earlier. That first issue also carried an update on the re-structuring of Sodisco-Howden and the demise of Toronto chain Lumberking.

(Click here to see our very first issue!)

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RONA posts profit in 2014, considers further acquisitions

BOUCHERVILLE, Que. — RONA saw sales increase by a healthy 3.2% in its fourth quarter, from $941.1 million to $971.3 million. Same -store sales in the company’s Retail segment grew by 6.0%, attributable to the strong performance by RONA’s revamped Réno-Dépôt chain in Quebec and its Totem stores in Alberta.

Excluding the impact of the closures of under-performing stores, same-store sales grew 6.5%. RONA reported a quarterly profit of $1.7 million, following a loss of $1.1 million last year.

For the entire year, revenues dipped 2.3% to $4.096 billion from $4.192 billion. However, the company reported positive growth in organic sales—for the first time since 2006—up 1.2%, including 1.1% in the Retail segment. On a same-store basis, sales across the RONA network rose 1.2%, with growth of 1.1% in the Retail segment and 1.7% in the Distribution segment.

For the full year, RONA earned $65.2 million, after posting a loss of $45.9 million in fiscal 2013.

With a healthy balance sheet, the company is once again open to acquisitions, says president and CEO Robert Sawyer—especially if an opportunity arises that fits RONA’s core business. He and his executive team spoke to analysts last week following the reporting of RONA’s 2014 year-end results.

“Anything that fits into our portfolio of banners we would look into — either mid-size, big size or whatever—we’re open to look into anything.”

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TIM-BR MART buying show serves up an e-commerce twist

TORONTO — TIM-BR MART mounted its fifth annual buying show on February 20 and 21, this time adding an online component. “It’s a combination of virtual show and a physical show,” said Bernie Owens, president of TIM-BR MART Group.

Taking a cue from the success of its Chalifour Canada virtual tradeshow, “Virtuo,” held last fall, TIM-BR MART introduced a virtual show book and an online ordering site, enabling the hundreds of TIM-BR MART members and store managers at the show to place their orders online.

“The virtual show book and order site are mobile friendly—making ordering easy and convenient for our members,” said Randy Martin, TIM-BR MART’s vice president of business development.

The 73,000 square-foot show floor at the Toronto Congress Centre featured specials and hot buys from more than 200 hardware and LBM vendors. “We’ve worked hard with our vendors to bring to our membership not only better buying programs for 2015, but also very aggressive deals at this year’s show,” said Owens.

Dealers on the show floor said they welcomed the opportunity to network with suppliers and see what’s new. Paul Parsons, general manager of Fraser’s Pro Home Centre, based in Berwick, N.S., likes the combination of online and face-to-face. “The show got me here all the way from Nova Scotia,” he said. “The virtual program is good and it will be more important in the years to come as it evolves.”

But the physical show remains important, as well, he added. “I get to see new products and meet the vendors—who are important to our business.”

Vendors were generally very positive about the attendance, which appeared to be up considerably from last year’s event. In addition, exhibitors noted that the dealers were coming from right across the country—including a strong presence from Western Canada— and included more large dealers, owners, and decision makers than last year.

“And they’re bringing their POs,” added one vendor.

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RONA confronts outflow of dealers

BOUCHERVILLE, Que. — RONA president and CEO Robert Sawyer says his company is watching and evaluating the departure of some of its affiliate dealers, as the company continues to strengthen its financial position (see second lead story above. —Editor). In a call to analysts following the reporting of the company’s year-end results, Sawyer acknowledges that the company is facing negative net recruitment, but adds that the outflow is becoming “less and less.”

A spokesperson for RONA clarified further: “We’re talking about just a handful of dealers in terms of negative output. RONA continued to recruit new dealers in 2014 and its existing dealers continued to invest in expansion and relocation projects. The decline was attributed not only to defections but to dealers who have ceased operations.”

In addition, the company stresses that it has not lost any franchise dealers.

On the recruitment side, RONA is remaining more selective about the types of dealers it will partner with, says Sawyer. However, the licensing of Ace Canada, put in place last summer, will give the company more options for independent dealers.

The Ace program, which he considers a good fit with RONA’s TruServ Canada distribution operation based in Winnipeg, provides an effective option for small dealers across the country. “We have a team that is on the street recruiting banners,” Sawyer says.

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Weak dollar won’t affect dealer pricing says Orgill

MEMPHIS — With Canadian dealers and vendors alike in Orlando, Fla., this past weekend for the Orgill dealer market, a concern for many is how the giant U.S. wholesaler will remain price competitive in the face of the falling value of the Canadian dollar.

Ron Beal, president of Orgill, explains that the impact won’t be felt at the dealer level. In the first place, he says, “All our dealings with our Canadian customers are in Canadian dollars, both from a pricing and a payment standpoint.” And, he adds, the pricing is developed from the retail level. “It’s not cost-plus.”

Unlike most of the other 60 countries Orgill sells into, Canada is treated as part of a North American marketplace, so product is supplied through that North American supply chain—which includes a DC in Brampton, Ont.—rather than simply imported. “We view North America as domestic, and part of that means dealing in domestic currency.”

Beal says the strong U.S. dollar works in Orgill’s favour internationally. “On the buy side, our dollar goes a lot further in areas like Asia—and in Canada too. So we’re able to buy better,” he points out. “We’re making sure we’re competitive so our customers are competitive.”

Beal stresses that Orgill is committed to this market. Sales in Canada in December were up 67% over the same time a year earlier—even taking into consideration the currency fluctuations, he adds. “We’re extremely bullish on Canada and we’re extremely optimistic about Canada long-term.”

(Watch for a full report on the Orgill show in next week’s edition! —Editor)

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CLASSIFIED ADS

Retail Specialist – Canada

Position Summary:

As a growing company, we are always looking for new team members to help us continue in our success.  Orgill, Inc. is currently seeking a Retail Specialist in Ontario and Newfoundland to represent Orgill, Inc. to prospective and existing retail customers. This employee will analyze customer needs and offer products, programs, solutions, and services to retail hardware stores, lumberyards, and farm & ranch supply dealers. This is not an entry level sales position, nor is it one for someone who does not have experience in our industry.

Responsibilities:

• Increase market share with existing customers by consulting with store owners and managers on how Orgill can help their businesses be more successful and effectively compete in their individual markets.
• Identify, qualify and develop prospective customers by establishing rapport, identifying unique needs and addressing them with Orgill solutions. Prepare and present professional sales proposals.
• With a high degree of accountability, develop and implement weekly action plans to maximize sales with effective scheduled sales calls and travel itineraries.

Requirements:

• Must have in-depth and up to date knowledge of standard concepts, practices, and procedures within the hardlines industry.
• Must have experience in the wholesale or retail hardware, lumber, building materials and/or farm supply trade.
• Must have a working knowledge of email, internet, and Microsoft Office computer applications.
• Must have a valid driver’s license and a safe driving record.
• Prefer candidate with Bachelor degree

To Apply:

Please submit resumé, and salary history to: mvallecillo@orgill.com

For more information about Sales Careers visit www.orgill.com

back to top

______________________________________________________________________

National distributor of wood, metal and automotive

machinery and accessories seeks an experienced

Sales Representative

for Alberta

Ideal career opportunity for an aggressive, self-motivated individual with excellent interpersonal and communication skills. These skills, coupled with extensive knowledge of the market, would put you in good standing to join our aggressive and expanding company and for substantial earnings potential.

Please forward cover letter and resume to:

Ted Fuller

fax 519-896-6497

email tfuller@kingcanada.com

back to top

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February 16, 2015 Volume

xxi, #7

“Anyone who says businessmen deal in facts, not fiction, has never read old five-year projections.” —Malcolm Forbes (American publisher, 1919-1990)

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Sexton Group celebrates 30th anniversary

CALGARY — Sexton Group kicked off its 30th anniversary at the WRLA Buying Show recently with a reception in Calgary before the opening night of the show. In a room filled with Sexton management, dealers, and suppliers, Sexton president Steve Buckle spoke about the longevity of the group. “It’s been a great model and we haven’t changed it. There’s a group of dealers that this really works for.”

He also paid tribute to Bob Mondy, general manager of the group from its inception in 1985 until 2008, when Buckle took over. Mondy continued to work with the company until 2010. “He had a real connection and a real vision,” said Buckle.

Buckle later shared some insights into how the company has endured. It was founded by Ken Sexton, who himself was a dealer, with the Kenroc chain of stores. “[Sexton] understands from the get-go what it takes to be a building supply dealer because he did it for many years—and also gypsum specialty distributing, because he did that for many, many years. So the roots of the company are in the hands of entrepreneurs.” He says that resonates with his members, who are themselves “hands-on entrepreneurs.”

Looking at the year ahead, Buckle admits that his outlook is certainly different from what it was last fall. The weak dollar, for example, means this “will be a difficult year for anyone importing product—and we import a lot of product.”

The drop in the price of oil is also having an impact on the spending habits of his members’ own customers. Surprisingly, he says his dealers farthest from the oil sands first alerted to those effects. “Believe it or not, our dealers in Newfoundland were the first to notice the effect of falling oil, because so many of their customers work in the oil patch, come home and build homes.”

(Click here to watch our Hardlines TV interview with Steve Buckle at the 2015 WRLA Buing Show!)

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La Coop expects gradual expansion outside Quebec

MONTREAL — The recent takeover of Groupe BMR by La Coop fédérée is expected to help fuel continued expansion of BMR outside of Quebec. BMR is now a subsidiary of La Coop, managing both the BMR stores and La Coop’s own farm hardware and building supply members under the Unimat banner.

According to Gaétan Desroches, CEO of La Coop fédérée, BMR will take a long-term view toward growth. He expects expansion in Ontario, where BMR has only a handful of stores, to be a gradual process. In the Maritimes, BMR has close to a dozen members. “We have the logistics to deliver in the Maritimes in place right now,” Desroches says, “so we expect growth there to be quicker.”

The BMR stores are typically larger building centres, while the Unimat stores are usually, though not exclusively, smaller stores that can operate in smaller markets at a lower cost, he adds.

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Smokers, pizza ovens part of Lowe’s outdoor push for spring

TORONTO — Keen to position itself as a go-to destination for home décor ideas as well as building materials, Lowe’s Canada hosted a product preview of its spring collections last week.

The “Escape to Lowe’s” event was hosted by Lowe’s newest team member, Cindy Jardim, who joined on January 5 as styles and trends director. Her tour focused on the backyard as destination. While the “staycation” has become a familiar enough concept, Lowe’s is inviting customers to actually sink their travel dollars into improvements for the backyard.

Highlights of the spring lines include the Pardini outdoor furniture ensemble, whose dark tones and rust-resistant aluminum frames have been popular with men and women alike, Jardim said. Many of the sets feature all-weather wicker furniture and propane fire tables. Several new twists on the familiar barbecue were also on view, including a combined barbecue-smoker and a grill-top pizza oven.

Lowe’s is also offering a number of umbrella options, making free use of LED lighting and hydraulic technology on umbrellas as large as 10 x 13 feet, for a retractable experience that can take the place of a gazebo. Some of the new products are outside the “big box” one might expect to find at Lowe’s, including a range of colourful circular lounge couches that are available exclusively online.

A real winner, said Jardim, was the single product that the buying team allowed their boss, Igor Halencak, to choose. Halencak, who is Lowe’s head of merchandising and marketing, picked a wooden drink cooler that sold out right away. “We’ve had to order two more container loads already,” Jardim noted.

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Atlantic association unveils new branding and logo

DIEPPE, N.B. — Following its annual trade show recently in Moncton, the Atlantic Building Supply Dealers Association has announced a renewed commitment to its regional mandate with new branding. (Click here to see the new logo in action. If you’re an AC/DC fan, it will be well worth it! —Editor)

The new look reflects the new leadership of the organization under Denis Melanson, who took over last fall from former ABSDA president Don Sherwood. Sherwood passed away on December 9.

Melanson says to expect more changes in coming months. “We also launched an Atlantic Canada leadership summit—‘Building a Better Industry Together.’ We are forecasting holding this event later this year, the date still to be determined.”

(Note: to watch the moving video that was played at the ABSDA Gala Dinner recently in honour of Sherwood, click here.)

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NRHA invites Young Retailer Award nominations

SPECIAL REPORT — The North American Retail Hardware Association is accepting nominations for the 19th annual Young Retailer of the Year Awards, a program that recognizes the industry’s next generation of leading independent home improvement retailers. From now through February 27, NRHA will accept nominations for retailers aged 35 years and under who live in Canada and the U.S. (NRHA is represented in Canada by Hardlines Inc. —Editor)

Young retailers can be nominated in three categories: stores with annual sales under $2 million, stores with annual sales over $2 million, and retailers operating multiple stores.

In each of these retail categories, winners are chosen based on criteria such as career accomplishments, community involvement, hardware industry education, and extracurricular activities.

Winners will receive industry-wide recognition, a trip for two to the NRHA All-Industry Conference at the National Hardware Show in Las Vegas, a featured article in Hardware Retailing magazine and an opportunity to win a scholarship to NRHA’s Retail Management Certification Program.

For more information or to nominate a young retailer, click here.

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CLASSIFIED ADS

Retail Specialist – Canada

Position Summary:

As a growing company, we are always looking for new team members to help us continue in our success.  Orgill, Inc. is currently seeking a Retail Specialist in Ontario and Newfoundland to represent Orgill, Inc. to prospective and existing retail customers. This employee will analyze customer needs and offer products, programs, solutions, and services to retail hardware stores, lumberyards, and farm & ranch supply dealers. This is not an entry level sales position, nor is it one for someone who does not have experience in our industry.

Responsibilities:

• Increase market share with existing customers by consulting with store owners and managers on how Orgill can help their businesses be more successful and effectively compete in their individual markets. 
• Identify, qualify and develop prospective customers by establishing rapport, identifying unique needs and addressing them with Orgill solutions. Prepare and present professional sales proposals. 
• With a high degree of accountability, develop and implement weekly action plans to maximize sales with effective scheduled sales calls and travel itineraries.

Requirements:

• Must have in-depth and up to date knowledge of standard concepts, practices, and procedures within the hardlines industry.
• Must have experience in the wholesale or retail hardware, lumber, building materials and/or farm supply trade.
• Must have a working knowledge of email, internet, and Microsoft Office computer applications.
• Must have a valid driver’s license and a safe driving record.
• Prefer candidate with Bachelor degree

To Apply:

Please submit resumé, and salary history to: mvallecillo@orgill.com

For more information about Sales Careers visit www.orgill.com

back to top

______________________________________________________________________

National distributor of wood, metal and automotive
machinery and accessories seeks an experienced

Sales Representative
for Alberta

Ideal career opportunity for an aggressive, self-motivated individual with excellent interpersonal and communication skills. These skills, coupled with extensive knowledge of the market, would put you in good standing to join our aggressive and expanding company and for substantial earnings potential.

Please forward cover letter and resume to:

Ted Fuller
fax 519-896-6497
email tfuller@kingcanada.com

back to top

______________________________________________________________________

February 9, 2015 Volume

xxi, #6

“Lots of folks confuse bad management with destiny.” —Kin Hubbard (American cartoonist, humorist and journalist, 1868-1930)

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La Coop fédérée completes takeover of BMR

Yves Gagnon, honorary president of Groupe BMR; Denis Richard, president of La Coop fédérée; and Gaétan Desroches, CEO of La Coop fédérée.

MONTREAL — La Coop fédérée has aquired all assets of Groupe BMR, creating a combined entity that is second only to RONA in Quebec’s retail home improvement arena.

The deal, which makes BMR a wholly owned subsidiary of La Coop, is the conclusion of a union that began more than a year ago, when La Coop bought up 20% of the closely held buying group and wholesaler. Since then, hardware supply to the giant coop company’s home improvement dealers, under the Unimat banner, was transferred to BMR’s operations in Boucherville, Que.

Besides having more than 160 stores in Quebec—most of them dealer-owned—BMR is also active in Ontario, the Maritimes, and Saint-Pierre and Miquelon. It generates annual sales of more than $1.4 billion and employs 5,000 people through a total of almost 180 stores. The merger will give La Coop a total of 350 building centres and hardware stores. Both the Unimat and BMR brands will remain in use.

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Atlantic Show faces bad weather, and a sad moment

MONCTON, N.B. — Legendary rock band Foreigner headlined the Gala Dinner at the Atlantic Building Materials Show in Moncton last week. The evening brought together an estimated 900 people despite the storms ravaging the Maritimes and causing concerns about attendance at the show itself.

Photo by Nicole Payzant

The event, held by the Atlantic Building Supply Dealers Association, also paid tribute to Don Sherwood, former president of the ABSDA, who died suddenly in December. Sherwood, who began transitioning into retirement last summer, was to have enjoyed a send-off at this show; instead, the industry held a sombre memorial, led by ABSDA past chair Brian Warr (shown here), of Warr’s Castle Building Centre in Springdale, Nfld.

Photo by Nicole Payzant

Day one of the event had a fairly strong showing of dealers—at least through the morning. However, even some dealers who would have otherwise driven in were thwarted by bad weather conditions, following a dump of more than 100 cm of snow on the city in the week running up to the show. On day two, attendance fell dramatically. The number of exhibitors also appeared to be down, judging by the empty spaces on the show floor.

Despite the challenges posed by weather and industry consolidation, the event still offered a chance for dealers and suppliers to meet face-to-face, celebrate, and reflect.

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Takeover of BMR a big step in La Coop’s growth plans

MONTREAL — The takeover of Groupe BMR by La Coop fédérée marks the latest, and most dramatic, move by the Quebec farm co-operative to position itself as a leader in the hardware and building materials arena.

And while La Coop first approached BMR less than two years ago, the company’s focus on hardware and home improvement dates back almost four decades.

Serving the farm market through its network of co-op stores, La Coop watched the decline of the farm market with the consolidation of small farms and the rise of factory farming. “In 1977, the company made the decision to increase the hardware and building supply side to support the farmers,” says Gaétan Desroches, CEO of La Coop fédérée. In 1986, the Unimat banner was introduced.

Desroches says the concept proved successful, and the company eventually faced the need to develop its infrastructure to adequately support its growing dealer ranks. That’s when the decision was made to consider an acquisition. “So we knocked on BMR’s door,” he adds. La Coop ended up buying up 20% of BMR effective the beginning of 2014.

Unlike some buying groups, BMR is closely held by a small group of the dealers. One of their main dealers is also the past head of the company, Yves Gagnon. He was to have run BMR at least for the first two years, but decided to step down for health reasons in September 2014. Pascal Houle, who came over from La Coop, became executive vice president of BMR and will continue to run that business.

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HTV: TORBSA get serious about growth

CALGARY — After years as a regional buying group, TORBSA is getting more aggressive about recruitment. That includes exhibiting at trade shows, such as the recent WRLA Buying Show in Calgary and last week’s Atlantic Building Materials Show in Moncton, N.B.

In addition, TORBSA has brought on Bob Hill, whose background includes RONA and Beaver Lumber, as business development manager to handle dealer recruitment. We caught up with the group’s general manager, Bob Holmes, at the show in Calgary. He explained why TORBSA is emerging as a good alternative for independent dealers considering a new option.

“We bring to the table the fact that we’re a low-cost group. We have five people that work in our organization.” He says the group strives to develop a culture of strong communication and involvement, not just between head office and the members, but among the members themselves. He also notes that TORBSA does not promote a national banner, leaving that branding up to the members. “They’ve been successful in their markets since their inception and there’s no reason why that should change.” Instead, the group looks for ways to help them operate more successfully and share best practices.

After being centered mainly in Ontario, the group is starting to spread its reach. Its newest member is Crown Building Supplies in Surrey, B.C. What was the attraction for a dealer located so far from TORBSA’s head office in Bolton, Ont.? “What drew him,” says Holmes, “is that we allow him to be an independent and to have the ability to buy from whomever he wishes.” Not only that, but dealers who feel that other banners or buying groups are already well represented in their markets have the opportunity to differentiate themselves.

While TORBSA’s membership consists mainly of commercial dealers, the group’s ranks are more diversified than that, Holmes adds. “We can answer the needs of any dealer.”

(Click here to watch the full interview with Bob Holmes on Hardlines TV!)

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RONA takes over Millwork stores in Ontario

OSHAWA, Ont. — RONA inc. has taken over the assets of Millwork & Building Supplies Limited. The deal was effective February 2.

RONA will continue to operate Millwork’s stores in Oshawa, Ajax, and Peterborough, along with its truss plant in Bowmanville, Ont. The stores, which will now be run as corporate stores, reopened to the public on February 3.

Millwork joined RONA as an affiliate dealer in 2012. The company, a founding member of Independent Lumber Dealers Co-operative, was started in 1951 by Ed Lupton. By the time of its affiliation with RONA, the company was in the hands of the second generation of the Lupton family, specifically Rob and his sister Gail. It represents estimated annual sales of $42 million (source: Hardlines Who’s Who Directory ) .

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February 2, 2015 Volume

xxi, #5

“Aren’t we all striving to be overpaid for what we do?” —Will Farrell (American actor and comedian, 1967- )

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Castle’s Ken Jenkins says dealers well-positioned as oil, dollar fall

CALGARY — Lowering oil prices and a falling dollar threaten to make the year ahead a challenging one for the retail home improvement industry, but one retail leader believes that independent dealers are well-suited to cope with what might be a rocky ride ahead.

HARDLINES caught up with Ken Jenkins, president of Castle Building Centres Group, at the recent WRLA Buying Show in Calgary, where he shared his confidence in the resilience of independents.

“Dealers don’t overreact when conditions change, he said. “They understand there are going to be cycles and they prepare well for those cycles.” They don’t over-expand during good times and they contract well when times get lean.” This kind of flexibility gives them an advantage over the larger chains and big box retailers, he added.

Jenkins expects that the upside of the falling Canadian dollar will give manufacturers, especially in Central Canada, an advantage, while Canadian tourist dollars could stay here at home, boosting renovation spending.

“I believe honestly the oil issue will be a relatively short-term dynamic, but that being said independents are, I think, very well positioned to deal with the challenges of fluctuating market conditions.”

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WRLA makes pitch for unified national association

CALGARY — The Gala Dinner that highlighted the recent Buying Show of the Western Retail Lumber Association featured awards, tributes—and an unexpected message. While onstage addressing the audience of close to 1,000, Rob Hauser, chair of the WRLA, departed from the usual association business to address a larger issue: the notion of a national entity to represent the industry.

“A national association, recognizing regional differences, could benefit the industry,” he said.

There are currently five regional associations for building supply dealers and suppliers: ABSDA in Atlantic Canada, AQMAT in Quebec, LBMAO in Ontario, WRLA in the West, and BSIA in British Columbia. In addition, NRHA Canada provides training and services to dealers across the country. A single organization could provide lobbying and a unified voice for industry concerns, he said.

In many cases, he continued, the associations duplicate services—a costly process that could be centralized. He cited an observation by Retail Council of Canada (an organization with 9,000 members which oversees the entire sector) that, “associations in Canada are seriously challenged.”

The regional associations already come together loosely in an umbrella group called the Canadian Retail Building Supply Council. It meets once a year to share ideas and concerns, but takes no stands on national issues. And CRBSC’s efficacy may be waning: it didn’t even hold a meeting in 2014.

Hauser told the audience that he sees the potential to organize a national entity with regional offices to reflect the needs of the different parts of the country, supporting one or two strong regional buying shows.

However, Thomas Foreman, president of the Building Supply Industry Association (BSIA of B.C.)—and this year’s head of the CRBSC—is not convinced. WRLA has not, he feels, reached out in good faith. “That message seems to be contrary to the message that the other associations have been getting.”

The idea of a national organization has been hotly debated behind closed doors for years. Dave Campbell, president of the LBMAO, says, “I think there would be some benefit. Some of us have been vocal about trying to strengthen the position of the CRBSC on a national basis, but without consensus, it isn’t going to work.” He also acknowledges the different concerns of dealers in various parts of the country. “At present, we are all strong regionally with our own regional challenges.”

However, Houser remains optimistic. “Plans for discussions will take place in the near future,” he said.

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Quebec soirée honours Gala winners

LONGUEUIL, Que. — Retailers and suppliers from across the Quebec home improvement industry gathered in Quebec on January 24 for a “Gala Reconnaissance” awards soirée at the Chateau Frontenac in Quebec City.

The event was hosted by the Quebec industry association AQMAT and overseen by Richard Darveau, president and CEO of AQMAT; the evening also marked the 75th anniversary of association.

“The Gala Reconnaissance is a testament to the dynamism and leadership that characterize our association,” said Guillaume Saillant, president of the board of AQMAT and director of sales for JRTech Solutions. “The whole process leading to this event reflects our values of fairness and transparency to to all our members,” he added.

Eight manufacturers and eight retailers were awarded at the third annual Gala Reconnaissance by AQMAT: Groupe Isolofoam; Duchesne & Fils; Marcil Centre de rénovation; Home Hardware Quincaillerie-Pierre Machabée; Groupe Matériaux Godin-Castle; Drakkar International; Quincaillerie Mésy-TIMBER MART; Metrie; Produits forestiers Ampro-Mur Design; A. Richard Tools; King Materials; Matériaux Lavoie-TIMBER MART; Émile Bilodeau & Fils-TIMBER MART; BMR Dionne & Fils; and Polyform. Missing: Quincaillerie A. Pouliot-TIMBER MART.

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Lowe’s Canada to hire 2,000 for spring and summer

TORONTO — Lowe’s Canada plans to hire about 2,000 seasonal employees for the busy spring and summer selling seasons. The company will also host its first ever National Hiring Day on Saturday, March 7, at all 37 Lowe’s locations across Canada.

The company is not only hiring for positions at its stores, but also for its Regional Distribution Centre in Milton, Ont., and for three new stores set to open later this year: in Lethbridge, Alta.; Saskatoon; and Sault Ste. Marie, Ont. Positions include customer service associates, cashiers, loaders, stockers, and sales specialists.

Late last year, Lowe’s announced plans to open 25 new stores in Canada over the next three years.

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ANALYSIS: Buying shows are no longer just about buying

CALGARY — While many vendors at the latest Buying Show of the Western Retail Lumber Association will measure the success of the show solely on the number of orders written, more and more vendors we spoke with at the show are focusing on using that venue as a way to strengthen the larger customer relationship.

A number of dealers, as well, at the show admitted that special buys are becoming less of an incentive. They talked instead about the importance of networking and product knowledge in an age when orders can be made online easily and tight margins preclude any real deals in many product categories. In fact, a survey conducted by WRLA indicated that the top reason for attending the show was for “new product ideas,” while special buys rated second.

While many suppliers, especially of commodities, indicated that their measure of the success of the newly located show would be the volume of orders, and orders only, many booths were emphasizing in-store displays and product knowledge that will help dealers sell their products better.

For example, the Ply Gem Canada booth featured lots of windows and siding, but it also had interactive displays to demonstrate the thermal ratings of different window glass along with siding samples. The goal of Ply Gem’s presence at the show, said Andrew Thompson, the company’s director, brand marketing for windows and doors, was to help dealers create a better experience in their stores for selling Ply Gem products. That included interactive displays presenting house styles that customers can identify as similar to their own, and develop their own home improvement ideas from there. “We’re really trying to show the dealers that, ‘we can help you grow your business.’”

The notion of a strong in-store experience, which helps make one’s store a destination for shoppers as well as an alternative—or next step—for customers searching for products online, is the message of retail futurist Doug Stephens, who was onsite offering 20-minute seminars for dealers right at the Ply Gem booth.

Jay Fafard, VP of business development for Madero Doors & Hardware, agrees wholeheartedly with this approach. Much of his marketing efforts go not just to pushing product but to educating customers and giving them reno ideas. The Saskatoon-based manufacturer and supplier is adding a design centre to its facility there and to its DCs in Winnipeg and Calgary. That kind of approach to marketing was carried over at the WRLA Buying Show, as well, where he said the emphasis was on interacting with dealers to help them sell better.

In the face of online technology and squeezed margins for products, all trade shows are evolving to become less about buying and more about interacting with customers and offering new product ideas.

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January 26, 2015 Volume

xxi, #4

“The measure of a man is what he does with power.” —Plato (Philosopher and mathematician of Ancient Greece, 428-348 BCE)

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WRLA show has strong start at new venue in Calgary

CALGARY — Dealers from Western Canada, along with vendors from across the country, headed to Calgary last week for this year’s trade show by the Western Retail Lumber Association. The show has a new name this year, as the Prairie Showcase moniker gets replaced by a more inclusive “WRLA Buying Show.”

But more significantly, the show’s new location at the BMO Centre in Calgary’s Stampede Park, after years in Saskatoon, marks an attempt to draw a wider range of dealers, while settling in a city that can accommodate the show’s expanding attendance by both dealers and exhibitors.

And if attendance was any indication, the relocation of the show could be considered a success. With more than 270 exhibitors on hand, the event managed to draw at least as many dealers as last year, although attendance from Saskatchewan fell even as dealer representation from Alberta and British Columbia was up.

The show was preceded last Tuesday by a number of dealer meetings by buying groups including Castle, TIM-BR MART Group, Windsor Plywood, and Sexton Group. In fact, Sexton used the event to celebrate its 30th anniversary with a reception later that afternoon. (Sexton also sponsored the show’s closing night party featuring country star Paul Brandt.)

In the evening, the show kicked off officially with a meet-and-greet at the Hyatt Regency, sponsored again this year by Castle.

Traffic was generally brisk on day one of the show, and even though day two was slower—typical of any trade show—yellow dealer badges still abounded throughout the hall. Most of the exhibitors that HARDLINES spoke with expressed satisfaction—and some relief—that attendance by dealers was strong enough to justify their investment in the new location. Again, as with any show, there were disgruntled detractors, but even Saskatoon-based vendors the we spoke with expressed satisfaction in the move.

Certainly, some were concerned about the higher costs attached to the show, such as for lunches and parking, further exacerbated by the overall higher costs of doing business in Calgary versus Saskatoon, including more expensive hotels. However, these negatives were offset by the ease of getting around the city, the efficiency of move-in and move-out of the show itself, and the unseasonably warm weather, which saw temperatures remain in the low double digits.

The evening’s 125th Anniversary Gala, sponsored by Jeld-Wen, hosted almost 1,000 dealers and vendors, again at the Hyatt Regency. The evening paid tribute to Martha Konantz, president and CEO of North American Lumber, who received WRLA’s 44th Annual Industry Achievement Award. This award recognizes members of the WRLA who have contributed to their business, the industry, and the association.

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AQMAT Awards Gala attracts Quebec Industry

QUEBEC CITY — An estimated 1,000 people gathered at the storied Chateau Frontenac on Saturday for the third annual industry Gala Reconnaissance. The event was hosted by the Quebec industry association, AQMAT, and emceed by association president Richard Darveau.

Throughout the evening, a series of awards was presented to both vendors and retailers, with finalists representing every major banner and supplier operating in the province, including Bélanger, BP Canada, Duchesne, Richelieu, EAB Tool Company, TIM-BR MART Group, RONA, Home Hardware, BMR, Wallboard Trim & Tools, Garant, RDTS, Metrie, Boni, and Insulofoam.

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