December 15, 2014 Volume

xx, #46

“Yes, Virginia, there is a Santa Claus. He exists as certainly as love and generosity and devotion exist.” —Francis P. Church (Editor of The New York Sun, in the editorial page in response to a letter written to that newspaper by Virginia O’Hanlon, September 21, 1897)

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FROM ALL OF US:

This year has been one of tremendous upheaval in our industry, which has resulted in professional challenge and personal loss for many of you. Without question, this holiday time will mean a lot of things, glad and sad, to everyone. We hope you can find joy in your families, friends and loved ones, and draw no small measure of satisfaction from your own personal accomplishments over the past year to embrace all that is good about this season. To everyone in our Hardlines Family, here’s wishing you a very merry Christmas and a safe, happy holiday. —Michael, Beverly, Brady, Katherine, Margaret and Shama

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HOLIDAY PUBLISHING SCHEDULE:

This is our last issue of the year. The New World Headquarters stays open until December 19, however. And then, we’ll be back in full swing January 5, with the first issue of HARDLINES to kick off our 20th Anniversary Year. That’s right: next year we turn 20!

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Guardian Building Products to pull out of Canada

ERIN, Ont. — Guardian Building Products Distribution Canada is pulling out of Canada. In the process, Guardian will “sell and/or liquidate our Canadian Distribution operations,” according to a letter sent to its customers and signed by district manager Michael Wilson.

The company aims to complete the wind-down by December 31. “Therefore Guardian will not be participating in any future contract negotiations. We are sorry for any disruption this may cause in your business,” the letter continues.

The announcement came as a surprise to many in the industry, including other wholesale distributors that compete with Guardian. The rapid wind-down of the business by year’s end was especially alarming to many. However, others, especially among Guardian’s customers, did not feel so blindsided.

“I wasn’t surprised at all,” says Mike Doyle Jr., of The Home Improvement Warehouse, a Castle dealer in Calgary. He says the company had been winding down its presence in Canada—and its service levels had been winding down, as well.

Ken Jenkins, president of Castle Building Centres Group agrees, saying Guardian Building Products was already in the process of rationalizing, closing facilities over the last 12 to 18 months. The distributor’s exit was “inevitable,” he believes, following the sale of Guardian’s insulation manufacturing business to U.S. mineral wool manufacturer Knauf Insulation in August 2014. Knauf then became the insulation supplier for Guardian Distribution. “It’s unfortunate, because they did such a good job for customers here,” he adds.

According to the Hardlines Who’s Who Directory, Guardian’s sales in 2013 reached about $175 million.

While Jenkins believes the insulation category is especially crowded, he sees a challenge for the entire distribution sector in this country, as there are just too many players. “We see this [exit] as a natural progression as the market evolves, and the question we have to ask is, ‘Is this the end of it?’ ”

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IN MEMORIAM: ABSDA’s former president Don Sherwood

MONCTON, N.B. — Don Sherwood, former president of the Atlantic Building Supply Dealers Association, died suddenly on December 9 at the age of 70. Don was an integral part of the industry for decades, remembered with respect in his role as general manager at Maritime wholesale distributor Coates Distributors, where he worked for a quarter of a century, before taking the helm of the ABSDA 17 years ago. During that time, he proved himself a sound leader and a tireless ambassador for the Atlantic building supply industry.

He retired from his role as ABSDA president in August, and was working with the new president, Denis Melanson, to help him transition him into the role. Sadly, the upcoming Atlantic Building Materials Show, February 4-5, in Moncton, N.B., was to have been Don’s swan song.

He is survived by his wife of 48 years, Wesla, daughter Dina and son Adam. In lieu of flowers, the Sherwood family requests that you make donations to a memorial of the donor’s choice. For more information, click here.

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OSB makers Norbord and Ainsworth to merge

TORONTO & VANCOUVER — Norbord Inc. and Ainsworth Lumber Co. Ltd. have announced a merger that will create one giant OSB maker with presence in North America, Europe, and Asia. Under the terms of the agreement, Norbord will acquire all of the outstanding common shares of Ainsworth in an all-share transaction valued at $762.6 million.

This transaction combines Norbord’s large mill network with Ainsworth’s innovation in value-added strand-based engineered wood products.

The two companies operate now in different markets, with reportedly little overlap. Norbord operates seven North American mills, principally in the U.S. Southeast, with one mill in Quebec and four mills in Europe. Ainsworth operates four Canadian mills, three in Western Canada and one in Ontario. With total OSB capacity of approximately 7.7 billion square feet, the combined company says it will be the largest in the global OSB industry.

The combined operation hopes to take advantage of the ongoing recovery in the U.S. housing market and growing OSB demand in Europe and Asia, with the restarting of Norbord’s two idled mills in North America and the completion of Ainsworth’s second line in Grand Prairie, Alta.

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Superior Plus restructures Construction Products business

CALGARY & DALLAS, Tex. — Energy and chemicals giant Superior Plus has had its Construction Products Distribution division under close scrutiny over the past couple of years. That business includes outlets operating under the Winroc banner in Canada, with Allroc as its buying group, and a commercial and industrial insulation distribution business in the U.S. called Specialty Products & Insulation (SPI).

Michael Farrell is the new president of CPD, replacing Paul Vanderberg, who left the company to pursue other interests. Most significantly, Farrell will be located in Dallas, Tex., whereas Vanderberg had previously run the CPD business from Calgary. (Most recently, Farrell served as president and CEO of Roofing Supply Group, which claims to be the fourth largest wholesale distributor of roofing supplies in the U.S.)

Plagued first by a weak housing market in the U.S. and then a slow recovery and pressure on margins in Canada, Superior did an evaluation of the CPD business over the last year. During that time, Allroc left the umbrella buying group Byco only six months after the group was formed in late 2012.

Superior next tried to sell the division, but a deal that got to the eleventh hour fell through, and Superior has re-committed to build the business. Going forward, the entire division, in both the U.S. and Canada, is getting an investment in systems and infrastructure, including the formation of a new team and the move to the Dallas office.

According to Luc Desjardins, president and CEO of Superior Plus, Canada, growth in Canada is getting better, but not quickly enough. On the positive side, he cites the closing of a “major competitor in the B.C. region … that’s giving us a positive lift on the West part of Canada.” Overall, however, he says Canada “has been flat and not extremely good for us for the last few years,” but is “showing a positive trend for 2015.”

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Canadians prefer to shop Canadian on Black Friday

SPECIAL REPORT — If Canadian retailers can get into the Black Friday game, they will find a receptive population: 44% would prefer to buy Canadian, all things being equal. The research, conducted by Leger Marketing, shows that Canadians are embracing Black Friday and Cyber Monday deals around the American Thanksgiving holiday.

“The growth in e-commerce innovations and product offerings south of the border is still enticing a lot of Canadian shoppers, but Canadian retailers are starting to pick up the pace,” says UPS Canada’s VP marketing, Jim Bena.

Regional trends come into play as well: Albertans are the most likely to shop online, a whopping 95%. In Quebec, the preference for buying Canadian was weaker, expressed by only 29%. Excluding Quebec, the figure rises to 48%. Shoppers in the coveted 18-34 demographic are more likely to turn to U.S. retailers, either online or in-store.

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Classified Ads

National Industrial Sales Agency

Fiskars, a global manufacturer of branded consumer products with over 365 years of heritage, has an exciting opportunity for an energetic and results-oriented National Industrial Sales Agency. For consideration, qualified agencies should submit a company overview to kevin.murphy@fiskars.com

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SUMMARY OF POSITION: Entry level positon that will manage and grow sales of all RSC brands within the defined sales territory, working directly with dealers and distributors.

JOB RESPONSIBILITIES:

• Collaborate with customers in the presentation of our products in their environment
• Conduct individual sales calls and also “ride along” calls where productive with distributors in the territory
• Conduct store level trainings where needed across all company customers
• Support other Sales managers in the company as needed
• Establish & maintain close relationships with key independent retail stores within the region.
• Communication: Timely & Accurate for both Internal and External customers (Customer Issues, Program Changes, Market information, etc…)
• New Store Activity; coordinate efforts internally and with any outside representation to insure new stores ship complete, on-time, and are set to expectations

SPECIFICATIONS:

• Minimum 2 yrs experience in sales management, product marketing, or consumer marketing
• Minimum 1 yr experience servicing and calling on retail outlets with territory management experience.
• Ability to work on projects and meet deadlines.
• Post-Secondary degree in business or marketing preferred.
• Experience in working remotely and as a team member.
• Extensive experience with Excel, PowerPoint, Word, and web based applications.

To apply, send your resumé to

kmurrell@petsafe.net

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Better Living Products International is a world-leading designer, manufacturer and marketer of unique, high-quality bath and shower organization products. Established in 1991, it continues to be best recognized for its Award-Winning product, The Dispenser™. Better Living has flourished to new heights and is on a major growth curve with the upcoming introduction of several new and innovative products. The search is on to fill the following positions with energetic, highly motivated, organized and results driven candidates:

Sales Assistant

The successful candidate will be accountable for the support, coordination and execution of our sales and marketing initiatives. Responsibilities include assisting the sales team in maintaining positive client relationships and to act as the liaison on all day-to-day activity. Experience in a similar or related administrative role combined with excellent communication, organization and interpersonal skills are required.

Product Manager

The ideal candidate has a solid understanding of product marketing concepts and has industry product management experience. This person will manage products through their lifecycle and be accountable for the management, coordination and execution of various product initiatives. We are looking for a flexible and enthusiastic team player that is highly detailed and proficient in multi-tasking.

National Account Manager

A sales professional with industry knowledge is required to assist in achieving our aggressive growth plans by managing specific key accounts and channels within the USA. The successful candidate will possess account management experience and demonstrate exceptional interpersonal, communication and selling skills.

All positions will be based at our world-wide corporate headquarters in Vaughan, Ontario. We offer competitive wages, benefits and a fun working entrepreneurial environment. Please submit your resumé to Camillo Caperchione, Executive Vice President, Better Living Products, Email: camillo@dispenser.com

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December 1, 2014 Volume

xx, #44

“Man’s mind, stretched to a new idea, never goes back to its original dimensions.” —Oliver Wendell Holmes (American poet, physician and lecturer, 1809-94)

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HOLIDAY PUBLISHING SCHEDULE:

Please note that there won’t be an issue of HARDLINES next week (December 8), but we’ll be back with one more issue before year’s end, on December 15. After that, we’ll return to our regular weekly schedule on January 5, 2015. Don’t worry, though. The New World Headquarters stays open until December 19!

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TIM-BR MART to close two Chalifour DCs in Quebec

SPECIAL REPORT — HARDLINES has learned that the board of directors of TIM-BR MART Group has approved the closure of the group’s Chalifour hardware distribution facility in Victoriaville, Que.

According to TIM-BR MART president Bernie Owens, the Victoriaville operation will be closed by the end of the first quarter of 2015, and in the New Year Chalifour’s London operation will take over shipping hardware to Quebec and Atlantic Canada. Central Canada and the Prairies will continue to be served from London, as well. Moving Chalifour’s distribution into London, he points out, will help optimize that facility’s capacity, bulk up inventory there, and increase turns.

Owens admits that both DCs are under-utilized. He says the decision to choose London was based on a number of factors, including its proximity to Western markets, adjacency to a major highway, and lower building maintenance costs. London also has a newer building with more modern racking. The closing of the Victoriaville DC, where Chalifour Canada is reportedly the second-largest employer, will result in 120 job losses. Owens points out that London will hire as back office functions get consolidated there.

Chalifour will maintain a presence in Quebec, however, where it has two LBM facilities. The one in Rivière-du-Loup will be closed and the other DC, in Saint-Nicholas, will handle all distribution of LBM for Quebec (and some customers in Atlantic Canada).

Owens calls the consolidation “a tough decision” that had to be made for the greater good of the company. “But if customers are getting better fill rates and are happier, then I’ve done the right thing.”

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ANALYSIS: How TIM-BR MART got too many DCs

With the closing of Chalifour Canada’s extra distribution centres in Quebec, TIM-BR MART Group president Bernie Owens has done what several company presidents ahead of him could not—or would not—do. He has dealt with the overcapacity generated by two full-line DCs, in London and Victoriaville.

Victoriaville is part of a network of DCs serving TIM-BR MART dealers and other independents across the country that buy hardware and building materials through Chalifour Canada, the hardware wholesale arm of TIM-BR MART Group. Victoriaville was also the original home of hardware stores owned by the Auger family, which went on to establish the predecessor to Chalifour Canada, a hardware distribution business that became Sodisco Distribution.

In 1987, Sodisco purchased London, Ont.-based D.H. Howden & Co. The combined entity successfully pursued the entire Canadian market and was for years considered the country’s major hardware wholesaler for independents. Both the Sodisco business out of Victoriaville and the London-based Howden business were considered profitable in those days.

In addition, Sodisco served Quebec dealers with LBM distribution, mainly through a DC in Saint-Nicholas, with additional support at another facility in Rivière-du-Loup, which had been part Marchands Unis, another Sodisco-Howden acquisition. (Owens will also close the Rivière-du-Loup office, and all LBM supply for Quebec—and some Atlantic customers—will come out of Saint-Nicholas.)

When the Augers sold Sodisco-Howden to Unigesco, a food and grocery company, the new owners put a lot of costs onto the hardware wholesaler, and over time this practice reduced the ability of Sodisco-Howden to grow. While some duplication did get eliminated on the admin side when the company’s head office was moved to Montreal, over time, it was faced with overcapacity from its two hardware distribution centres. But since they served different markets with different languages and cultures, Sodisco-Howden never made the move to eliminate either one.

When Sodisco-Howden was sold to CanWel Building Materials in 2004, it reportedly had sales of about $500 million, with about $100 million apiece coming out of London and Victoriaville, and the rest from drop-ship and Quebec LBM sales. TIM-BR MART Group bought the business from CanWel at the end of 2010, inheriting what was by then an infrastructure considered by many to be too big for the level of sales the company was generating. Under Bernie Owens, Chalifour is making important, tough decisions. Getting right-sized at last will enable the company to build its profitability.

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Hachborn to be inducted into the Canadian Business Hall of Fame

ST. JACOBS, Ont. — Walter Hachborn, the co-founder of Home Hardware Stores Limited, will be inducted into the Canadian Business Hall of Fame on May 4, 2015, adding him to the ranks of Canada’s most distinguished business leaders.

Over the course of his almost 80-year career, Hachborn’s leadership and vision have made a profound impact on the hardware and home improvement industry in this country and on the survival of the independent dealer. He dedicated his career to this vision of helping independents grow their businesses and it remains the cornerstone of the company as it celebrates its 50th anniversary in 2014.

Paul Straus, president of Home Hardware Stores, will accept the award in May on behalf of Hachborn.

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Lowe’s expansion plans include smaller big boxes

TORONTO — Lowe’s latest expansion plans for Canada (as revealed in last week’s edition of HARDLINES —Editor), reflect a resurgence in big box development in this country.

Lowe’s only opened two stores last year, while RONA closed more than that, and Home Depot held fast. But in recent weeks, all that has changed. Lowe’s next store will be in Lethbridge, Alta., early in 2015, followed by Saskatoon and Sault Ste. Marie, Ont., in the summer. Just two weeks ago, Home Depot Canada opened its first store since 2011 with a site in Brampton, northwest of Toronto. In addition, RONA has announced it will roll out openings of at least three Réno-Dépôt stores in 2015.

“We are thrilled to be growing our presence in Canada and are always evaluating new opportunities to bring Lowe’s closer to our customers,” says Sylvain Prud’homme, president of Lowe’s Canada. He added that he sees “tremendous opportunity in these new markets for us.”

This latest round of openings does not adhere to Lowe’s traditional timeline, which saw stores opening typically right before or after Christmas, usually in time to be added to the company’s store count before its fiscal year end on January 31. Prud’homme says he will no longer follow that schedule. “When they are ready, I will open them,” he says.

Lowe’s opened two new stores in Ontario in 2014, in Cambridge and Burlington, that featured the company’s new concept store experience, with lower sightlines at the front of the store and enhanced focus on both female shoppers and contractors. The stores also began to trend towards a slightly smaller footprint. Of the three new stores, the Lethbridge location will be closest in size to a full big box, with approximately 94,500 square feet of retail space and a garden centre of about 19,500 square feet. It will be located at 3849 Mayor Magrath Drive South.

The other two stores will be smaller. The Saskatoon Lowe’s will have 86,000 square feet of retail, plus a 15,500-square-foot garden centre. It will be located at 125 Betts Avenue in the city’s west end. The Sault Ste. Marie site will be the smallest to date, weighing in at about 75,000 square feet of retail and a 4,400-square-foot permanent garden centre—plus a 6,300-square-foot seasonal pop-up garden centre. That store will be located at 248 Northern Avenue in the city’s north end.

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Newest Home Depot offers expanded appliances

BRAMPTON, Ont. — Canada’s newest Home Depot store features a number of new or enhanced features, including an expanded appliances department.

Sears, once the leader in white goods, continues to falter on both sides of the border. Insiders at both Home Depot and Lowe’s have said that they see a great opportunity to increase their respective market shares in heavy appliances. Home Depot reported strong sales from this category in its third quarter, based in part on heavy promotional offers. The stores in Canada recognize a similar opportunity.

The latest Home Depot store offers increased breadth and depth of assortment, compared to its other stores. The department is now right beside the kitchen design department, where staff can more easily integrate designs with customers’ choices of stoves and refrigerators.

According to Home Depot Canada spokesperson Paul Berto, the company’s next store, which will open in Vaughan, Ont., in April 2015, will have the same focus on appliances as the Brampton store.

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Canadians spending more than ever on Black Friday

SPECIAL REPORT — More and more Canadians are shopping on U.S. sites for the holidays, but almost half still prefer to buy Canadian, according to UPS Canada’s annual Black Friday survey. The research, conducted by Leger Marketing, shows that a third of Canadians would take advantage of Black Friday and Cyber Monday deals around the American Thanksgiving holiday.

Though more and more U.S. retailers have been migrating north to set up shop, that hasn’t cooled Canadians’ enthusiasm for cross-border shopping: shopping-related travel to the U.S. is expected to triple compared to 2011, rising from just 6% to 20%. The percentage of Canadians expected to shop online through U.S. e-retailers also increased from 24% last year to 32%.

For their part, Canadian retailers are picking up on the trend, such as a Lowe’s in Toronto’ west end that was seen with Black Friday signs throughout the store and parking lot two weeks ahead of the day. Black Friday and Cyber Monday specials are becoming increasingly common here, even without the benefit of the November Thanksgiving holiday which originally gave rise to them. Like last year, about a quarter of respondents mentioned Canadian Black Friday sales in their holiday shopping plans.

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Classified Ads

Marketing Manager, Schlage Canada

Allegion Canada is hiring a Marketing Manager for Schlage Canada. The Marketing Manager is part of an energetic team responsible for developing our growing Schlage residential business across Canada.  They are detail oriented, strategic and analytical with the ability to think outside the box. It’s imperative that the candidate is proactive and continuously seeks to build innovative consumer marketing programs to win market share. They will be responsible for increasing our understanding of the DIY customer, creating actionable insights and turning these insights into programs that will give customers more reasons to buy Schlage.  They will lead the evolution of our DIY customer experience on-line and in-store. They will lead high-impact integrated marketing plans and initiatives to promote the Schlage brand to the Canadian consumer.

Responsibilities

• Develop trade and consumer marketing plans aligning with company goals and objectives for the portfolio in partnership with National Accounts sales team
• Develop an integrated Canadian consumer outreach campaign
• Work closely with Product Marketing Manager to support ongoing priorities with training programs, market research, and competitive intelligence.
• Develop promotional strategies for customers and channels.
• Coordinate customer product line reviews
• Manage merchandising programs targeting all demand segments
• Manage agency relationships
• Set direction for Canadian inventory assortment
• Analyze sales reports and market feedback
• Manage a team of direct reports

 Knowledge/Experience Required:

• 5+ years of experience in retail marketing or a related area ideally in trade management, channel management, brand management, or insights
• University Degree or equivalent in business administration or marketing management
• Extensive marketing planning experience with strong and proven experience in database marketing, advertising, direct marketing, results tracking and analysis, sales enablement, integrated communications and research
• Ability to understand and leverage consumer environment associated with DIY and translate into high-impact marketing activity

For more information or to apply please visit allegion.com and search Careers.

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Better Living Products International is a world-leading designer, manufacturer and marketer of unique, high-quality bath and shower organization products. Established in 1991, it continues to be best recognized for its Award-Winning product, The Dispenser™. Better Living has flourished to new heights and is on a major growth curve with the upcoming introduction of several new and innovative products. The search is on to fill the following positions with energetic, highly motivated, organized and results driven candidates:

Sales Assistant

The successful candidate will be accountable for the support, coordination and execution of our sales and marketing initiatives. Responsibilities include assisting the sales team in maintaining positive client relationships and to act as the liaison on all day-to-day activity. Experience in a similar or related administrative role combined with excellent communication, organization and interpersonal skills are required.

Product Manager

The ideal candidate has a solid understanding of product marketing concepts and has industry product management experience. This person will manage products through their lifecycle and be accountable for the management, coordination and execution of various product initiatives. We are looking for a flexible and enthusiastic team player that is highly detailed and proficient in multi-tasking.

National Account Manager

A sales professional with industry knowledge is required to assist in achieving our aggressive growth plans by managing specific key accounts and channels within the USA. The successful candidate will possess account management experience and demonstrate exceptional interpersonal, communication and selling skills.

All positions will be based at our world-wide corporate headquarters in Vaughan, Ontario. We offer competitive wages, benefits and a fun working entrepreneurial environment. Please submit your resume to Camillo Caperchione, Executive Vice President, Better Living Products, Email: camillo@dispenser.com

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BLANCO CANADA INC. is Hiring a Business Analyst for our Brampton location.

The Business Analyst will be responsible for monitoring sales performance and utilizing analytical techniques to assist in making key forecast and replenishment decisions.  This position will be responsible for generating key financial reports, identify trends, lead monthly forecasting meetings and assist with the program management of IP and APO. This position will report into the Director of National Sales and will work closely with various departments.

Interested candidates should have a Post-secondary education with a minimum of 2 years of work experience in a sales analyst or similar role in the consumer goods industry. Advanced excel skills are required, and working knowledge of SAP is strongly preferred.  If you, or anyone you know, may be interested in applying, please send in your resume to the Human Resources Manager at hrinfo@blancocanada.com .

BLANCO CANADA INC. is Hiring a Product Manager for our Brampton location.

The Product Manager will be responsible for product planning. This includes managing the product throughout the product lifecycle, gathering and prioritizing product and Canadian customer requirements. The Product Manager will establish processes for new product introductions, including initial product launch presentations and forms. The Product Manager will assist with creation of marketing concepts and ensure the accuracy of all product technical documentation including specification sheets, product bulletins and parts breakdown drawings. This position will report into the Director of National Sales and will work closely with Sales and Product Management international teams, to support the development of the Blanco Canada product portfolio.

Interested candidates should have a post-secondary education with a minimum of 2 years of work experience in product or marketing management. This position requires overnight travel and proficient use of SAP, AutoCad and graphics systems. This position requires the ability to prioritize, manage and execute multiple projects within tight timelines. Ability to speak, write and read German and/or French is an asset. If you, or anyone you know, may be interested in applying, please send in your resume to Human Resources at hrinfo@blancocanada.com .

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Fusion Products Limited

Key Accounts Manager

Fusion Products Ltd. is a leading supplier of outdoor living and landscape lighting products to North America retailers, with head office in Mississauga, Ontario. We are seeking a dynamic individual to fill this role.

Duties will include

• Development of sales, merchandising, assortment planning for assigned accounts.
• Development and execution of a comprehensive plan to drive sales and profitability
• Manage budgets and sales goals based on corporate sales objectives.
• Maintain complete competitive files and field analysis including regular ‘comp’ shops

Experience required:

• Post-Secondary education in Business  and/or equivalent experience,
• Key Account management in a similar role
• Strong organizational, interpersonal and computer skills,
• Ability to travel
• Desire to exceed customer expectations
• This role may  include managing Canadian and/or US account

To apply, please send your resume and cover letter stating salary expectations to: andrew@fusionproducts.ca

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November 24, 2014 Volume

xx, #44

“ We must believe in luck. For how else can we explain the success of those we don’t like? ” —Jean Cocteau (French author, screenwriter, poet and film maker, 1889-1963)

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New Home Depot store focuses on pros, expands appliances

BRAMPTON, Ont. — Farmers’ fields sit across the street from the brand new power centre that is home to the newest Home Depot store in Canada. But the parking lot on opening day is packed solid, nevertheless. The store, the company’s first since an opening in Chilliwack, B.C., in April 2011, is anticipating the explosive growth that is taking place in this community northwest of Toronto.

The 119,000-square-foot store (plus 30,000-square-foot garden centre) features an expanded appliances department with more breadth and depth of product than in other Home Depot stores. The pro services area that has been reinvented from a single counter to a series of stations, designed to get contractors in and out quickly.

The new store also features a re-worked customer service counter that now does double duty as the pick-up spot for products that customers have ordered online. It ties in with the company’s push to sell online with a “buy online, pick up in-store” strategy. Where once an office was tucked behind the counter, a storage area now holds products awaiting pickup. The seasonal department has been transformed into a huge Christmas destination, with trees, decorations and lights.

Home Depot has one more confirmed opening upcoming: a new store in the north end Vaughan, Ont., on April 9, 2015.

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Home Hardware named one of Canada’s top corporate cultures

ST. JACOBS, Ont. — Canada’s third-largest home improvement retailer has been named one of Canada’s best. Home Hardware Stores Limited has been recognized as one of Canada’s 10 Most Admired Corporate Cultures.

Now in its 10th year, the award was created by executive search firm Waterstone Human Capital to distinguish workplaces where culture impacts performance. The winning organizations are selected by a panel of experts based on six measurement criteria: vision and leadership; recruitment and hiring for fit; cultural alignment and measurement; retention, rewards and recognition; organizational performance; and corporate social responsibility.

“The traditional values on which we were founded—value, service and dependability—remain unchanged and have created a strong culture for our close to 1,100 Home Hardware stores across Canada,” said Terry Davis, CEO, of Home Hardware. The win has additional meaning as it comes during Home’s 50th anniversary year, he added.

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Chalifour replaces tradeshow with virtual buying event

VAUGHAN, Ont. — Chalifour Canada Ltd., TIM-BR MART Group’s hardware and LBM distribution company, launched a virtual trade show for its dealers last week. Called “Virtuo 2014, the industry’s first virtual tradeshow,” it was produced to replace Chalifour’s annual trade show.

Virtuo 2014 is a fully hosted, web-based tradeshow platform allowing “attendees” 24-hour online access to virtual buying and networking opportunities. It offered 3D graphics and interactive conferencing capabilities. Virtuo 2014 went live on Monday, November 17, and was accessible to Chalifour customers and TIM-BR MART members through to Friday, November 21.

“Virtuo allows us to offer our customers—large and small—the full trade show experience, with all the buying and networking opportunities of a physical trade show, yet without the expense of time and travel associated with one,” said Randy Martin, vice president of business development for TIM-BR MART.

Dealers certainly agreed. Chalifour has moved the show around from Montreal to Calgary to Toronto, and it has drawn criticism—as have most distributors—for offering so many shows in the industry. This online alternative certainly appears to respond to those criticisms.

“At previous Chalifour shows, I would spend time travelling to the venue and then once at the show, only get to spend a couple hours there,” said Michel Daigle from Quincaillerie Auto Daigle in Thetford Mines, Que. With the convenience of the virtual show, he didn’t feel as pressured to buy right away.

Other dealers, like Richard Morin, from Quincaillerie Windsor, in Windsor, Que., have skipped going to the show altogether in the past, as it meant precious time away from the store. “With Virtuo I can browse at my own speed, go back to my store and take care of customers, and then log back on to my computer at night and complete my purchase. The virtual show really suits my needs as a business owner,” Morin said.

Another advantage that Chalifour is touting is an environmental one. “Virtual events like this one also cut down on our carbon footprint; we don’t have the excess amount of paper waste from show guides and brochures that a physical trade show creates, nor are we contributing to air pollution created by attendees flying and/or driving in to attend the show,” said Andrew Pantelides, Chalifour’s procurement manager.

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Lowe’s, Home Depot enjoy double-digit profit growth in Q3

MOORESVILLE, N.C. & ATLANTA — The two largest home improvement retailers in the U.S.—and the world—are riding the wave of a recovering housing market stateside. Both companies delivered double-digit profit growth in their latest quarter.

Lowe’s has reported a 17.3% increase in net earnings to $585 million, on sales that were up 5.6% to $13.7 billion from $13.0 billion a year earlier. Same-store sales for the quarter increased 5.1%. For the nine month period, sales were $43.7 billion, a 4.6% increase over the same period a year ago, and same-store sales increased 3.5%. Net earnings year to date increased 13.5% to $2.25 billion.

Similar growth continues north of the border, where Lowe’s had its sixth straight quarter of double-digit same-store growth (in local currency). Its chief competitor, Home Depot Canada, opened its first store in almost four years last week, in Brampton, Ont.

That opening may well reflect the growth Home Depot is enjoying enterprise-wide. It reported sales of $20.5 billion for the third quarter of fiscal 2014, a 5.4% increase from the third quarter of fiscal 2013. Same-store sales were positive 5.2%, with comp sales for U.S. stores positive 5.8%. Net earnings were $1.5 billion, up 14% from $1.4 billion a year earlier. Third-quarter results reflect a pretax gain of $100 million related to the sale of a portion of the company’s ownership in HD Supply Holdings.

However, the costs related to Home Depot’s much publicized data breach of recent months resulted in pretax net expenses of $28 million. While the company anticipates an overall sales increase this year of 4.8%, it warns that further costs related to the data breach, including lawsuits, may reduce that increase.

Lowe’s forecast is similar to its chief competitor’s: it anticipates its total sales to increase 4.5-5% for the fiscal year, with same-store sales anticipated to increase 3.5-4%.

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Lowe’s introduces project-planning

ETOBICOKE, Ont. — In a Lowe’s store in Toronto’s west end, the big box retailer officially unveiled its “Holoroom,” a sci-fi-inspired project simulator that applies 3-D and augmented reality technologies to provide homeowners with a virtual rendering of their next home improvement project.

The Lowe’s Holoroom was developed by Lowe’s Innovation Labs, using actual science fiction writers to create lifelike scenarios for futuristic concepts, based on Lowe’s own customer research. (The Labs also collaborated with Orchard Supply Hardware in California to introduce its retail service robot.)

Using an iPad, a customer can choose a room size and shape for, say, a bathroom, then start “decorating” it with paint colours, mirrors, fixtures, etc. Then the customer can enter the Holoroom and scan the space with the iPad, showing a 3D depiction of how it would appear in an actual room. Finally, the customer gets a printout of

the materials, which are available at Lowe’s, with pricing.

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Slegg joins Titan with Urquhart at the helm

VICTORIA — Slegg Lumber, TIM-BR MART Group’s largest member, turned in its resignation to the group on November 17, marking the closing of the sale of the 10-store chain to WSB Titan, Canada’s largest privately owned gypsum dealer. Slegg is the dominant player serving Vancouver Island and the Gulf Islands, with 10 locations plus a flooring centre. It will leave TIM-BR MART Group officially on January 1, 2015.

Titan is a giant company that has been buying up large commercial dealers across Canada. The president of Titan is Doug Skrepnek. The new arrangement with Slegg Lumber has the Slegg family selling the business outright to partners within Titan. Under the new ownership, Urquhart will take over as president of Slegg Lumber, serving as resident partner in Slegg Lumber on behalf of Titan.

Urquhart, formerly the CEO of TIM-BR MART Group, went to work as general manager at Slegg Lumber following his departure from the group.

Titan currently has 22 locations across the country and total estimated sales of close to $500 million. The addition of Slegg is expected to add in excess of $150 million in sales to Titan.

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Classified Ads

Marketing Manager, Schlage Canada

Allegion Canada is hiring a Marketing Manager for Schlage Canada. The Marketing Manager is part of an energetic team responsible for developing our growing Schlage residential business across Canada.  They are detail oriented, strategic and analytical with the ability to think outside the box. It’s imperative that the candidate is proactive and continuously seeks to build innovative consumer marketing programs to win market share. They will be responsible for increasing our understanding of the DIY customer, creating actionable insights and turning these insights into programs that will give customers more reasons to buy Schlage.  They will lead the evolution of our DIY customer experience on-line and in-store. They will lead high-impact integrated marketing plans and initiatives to promote the Schlage brand to the Canadian consumer.

Responsibilities

• Develop trade and consumer marketing plans aligning with company goals and objectives for the portfolio in partnership with National Accounts sales team
• Develop an integrated Canadian consumer outreach campaign
• Work closely with Product Marketing Manager to support ongoing priorities with training programs, market research, and competitive intelligence.
• Develop promotional strategies for customers and channels.
• Coordinate customer product line reviews
• Manage merchandising programs targeting all demand segments
• Manage agency relationships
• Set direction for Canadian inventory assortment
• Analyze sales reports and market feedback
• Manage a team of direct reports

 Knowledge/Experience Required:

• 5+ years of experience in retail marketing or a related area ideally in trade management, channel management, brand management, or insights
• University Degree or equivalent in business administration or marketing management
• Extensive marketing planning experience with strong and proven experience in database marketing, advertising, direct marketing, results tracking and analysis, sales enablement, integrated communications and research
• Ability to understand and leverage consumer environment associated with DIY and translate into high-impact marketing activity

For more information or to apply please visit allegion.com and search Careers.

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Better Living Products International is a world-leading designer, manufacturer and marketer of unique, high-quality bath and shower organization products. Established in 1991, it continues to be best recognized for its Award-Winning product, The Dispenser™. Better Living has flourished to new heights and is on a major growth curve with the upcoming introduction of several new and innovative products. The search is on to fill the following positions with energetic, highly motivated, organized and results driven candidates:

Sales Assistant

The successful candidate will be accountable for the support, coordination and execution of our sales and marketing initiatives. Responsibilities include assisting the sales team in maintaining positive client relationships and to act as the liaison on all day-to-day activity. Experience in a similar or related administrative role combined with excellent communication, organization and interpersonal skills are required.

Product Manager

The ideal candidate has a solid understanding of product marketing concepts and has industry product management experience. This person will manage products through their lifecycle and be accountable for the management, coordination and execution of various product initiatives. We are looking for a flexible and enthusiastic team player that is highly detailed and proficient in multi-tasking.

National Account Manager

A sales professional with industry knowledge is required to assist in achieving our aggressive growth plans by managing specific key accounts and channels within the USA. The successful candidate will possess account management experience and demonstrate exceptional interpersonal, communication and selling skills.

All positions will be based at our world-wide corporate headquarters in Vaughan, Ontario. We offer competitive wages, benefits and a fun working entrepreneurial environment. Please submit your resume to Camillo Caperchione, Executive Vice President, Better Living Products, Email: camillo@dispenser.com

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BLANCO CANADA INC. is Hiring a Business Analyst for our Brampton location.

The Business Analyst will be responsible for monitoring sales performance and utilizing analytical techniques to assist in making key forecast and replenishment decisions.  This position will be responsible for generating key financial reports, identify trends, lead monthly forecasting meetings and assist with the program management of IP and APO. This position will report into the Director of National Sales and will work closely with various departments.

Interested candidates should have a Post-secondary education with a minimum of 2 years of work experience in a sales analyst or similar role in the consumer goods industry. Advanced excel skills are required, and working knowledge of SAP is strongly preferred.  If you, or anyone you know, may be interested in applying, please send in your resume to the Human Resources Manager at hrinfo@blancocanada.com .

BLANCO CANADA INC. is Hiring a Product Manager for our Brampton location.

The Product Manager will be responsible for product planning. This includes managing the product throughout the product lifecycle, gathering and prioritizing product and Canadian customer requirements. The Product Manager will establish processes for new product introductions, including initial product launch presentations and forms. The Product Manager will assist with creation of marketing concepts and ensure the accuracy of all product technical documentation including specification sheets, product bulletins and parts breakdown drawings. This position will report into the Director of National Sales and will work closely with Sales and Product Management international teams, to support the development of the Blanco Canada product portfolio.

Interested candidates should have a post-secondary education with a minimum of 2 years of work experience in product or marketing management. This position requires overnight travel and proficient use of SAP, AutoCad and graphics systems. This position requires the ability to prioritize, manage and execute multiple projects within tight timelines. Ability to speak, write and read German and/or French is an asset. If you, or anyone you know, may be interested in applying, please send in your resume to Human Resources at hrinfo@blancocanada.com .

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Fusion Products Limited

Key Accounts Manager

Fusion Products Ltd. is a leading supplier of outdoor living and landscape lighting products to North America retailers, with head office in Mississauga, Ontario. We are seeking a dynamic individual to fill this role.

Duties will include

• Development of sales, merchandising, assortment planning for assigned accounts.
• Development and execution of a comprehensive plan to drive sales and profitability
• Manage budgets and sales goals based on corporate sales objectives.
• Maintain complete competitive files and field analysis including regular ‘comp’ shops

Experience required:

• Post-Secondary education in Business  and/or equivalent experience,
• Key Account management in a similar role
• Strong organizational, interpersonal and computer skills,
• Ability to travel
• Desire to exceed customer expectations
• This role may  include managing Canadian and/or US account

To apply, please send your resume and cover letter stating salary expectations to: andrew@fusionproducts.ca

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November 17, 2014 Volume

xx, #43

“I’d like to live like a poor man, but with a lot of money.”

—Pablo Picasso (Spanish painter, sculptor and poet, 1881-1973)

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RONA’s solid profits pave way for renewed expansion

BOUCHERVILLE, Que. — RONA inc. has reported essentially flat sales results for its third-quarter, with consolidated revenues of $1.167 billion, compared to $1.169 billion a year earlier. However, profits surged by 28.4%, going from $30.0 million to $38.5 million.

The company’s solid financial footing has helped position it for renewed growth, says company president and CEO Robert Sawyer. After closing 11 stores last year, RONA will open five more in 2015, including its first two Réno-Dépôt stores outside of Quebec (see next story —Editor).

While sales growth was slightly negative, the dip was small and the second consecutive quarter of improved profitability. The stabilization of its results came from 2.0% same-store sales growth at retail — the first in four years — and an 8.3% improvement in the distribution segment.

The Totem stores in Alberta, which were repositioned last year, plus the strong economy in Western Canada, further aided RONA’s results. In Quebec, RONA’s largest market, a strategy to be more competitive through reduced margins helped boost same-store sales, while the redeployment of the Reno-Depot stores had a positive impact on the retail segment performance. “Out west is the best environment right now for us,” said Sawyer.

Over the past 12 months, RONA managed to reduce its net debt from $347.8 million to $188.4 million.

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RONA to expand with first Réno-Dépôts outside Quebec

BOUCHERVILLE, Que. — RONA plans to start opening new stores again. With the exception of an outlet in Halifax in May 2014, these will be the company’s first new corporate stores since the arrival of its new president, Robert Sawyer, more than a year and a half ago. And two of these stores will represent the first locations for the Réno-Dépôt concept outside of Québec.

“We are also currently analyzing other opportunities and regions where we must protect and reinforce our market share or where the investment is justified by strong growth potential and good return on invested capital … Given our leaner structure, any organic sale growth should directly lead to profit improvement,” said Sawyer.

The big boxes outside of Quebec will in fact be existing stores that will be re-opened after being shuttered in recent years. One is in Calgary North and the other is RONA’s big box in Aurora, Ont. Both stores will be downsized to around 70,000 square feet from their original size of almost 100,000 square feet. They will use the Réno-Dépôt name.

Two other locations will be corporate stores: a 35,000-square-foot outlet in Halifax and a 50,000-square-foot store in British Columbia in a community yet to be confirmed. Another outlet in Rockland, Ont., will be an affiliate store, weighing in at 25,000-35,000 square feet.

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Ace has more robust to offer than buying groups says president

WINNIPEG — Ace International president Bob Moschorak says buying groups like the ones in this country just don’t exist in the U.S. And, he adds, Canada’s population can’t support the ones we have. “There isn’t the volume to support them and they are duplicating efforts.”

He says Canada’s retail chains, including Home Hardware and RONA, are doing the jobs of all the buying groups, as well as providing a full range of services and programs.

The most effective buying groups, he says, are the ones that remain focused on purchasing and the getting volume rebates.

Moschorak used this thesis to introduce Ace’s partnership with RONA at the TruServ Canada dealer market in Winnipeg in September. RONA plans to rely heavily on its Western distribution business to manage and promote the Ace brand.

Ace is North America’s largest retail home improvement co-op, with more than 4,200 dealer members worldwide. The value of Ace’s brand for Canadian dealers, he says, will be a wider range of products and programs that can be used by dealers at a local level to help them sell better.

To support the Ace initiative, RONA and TruServ have a new dealer support team, while TruServ is honing its own offering to independents, with better tie-ins on flyers and more regionalized assortments. Some dealers have even noticed better delivery times as logistics have improved.

Finally, Moschorak believes that, given the state of flux of the industry today, a number of good prospects exist for which the Ace brand would be a good fit.

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Canadian Tire tackles Christmas with new house brands

TORONTO — Christening itself “Canada’s Christmas Store,” Canadian Tire has ramped up its holiday offerings on a number of fronts this year. Recognizing the importance of seasonal sales, the giant retailer continues to expand and fine-tune its holiday assortments, launching its own style and décor brand, called “Canvas.” The holiday Canvas collection includes a range of Christmas tree decorations and décor items.

The self-branded line supplants the Christmas assortments that bore the Debbie Travis name in years past. That partnership, which began in 2005 with a line of paint, eventually expanded to some 1,200 products called the Debbie Travis Collection. Now, a search of Canadian Tire’s website will turn up nothing more than a couple of dozen Debbie Travis-branded curtain rods and floor mats. Canadian Tire says it is “re-evaluating” its relationship with the Canadian home décor maven.

In an effort to be a “one-stop-shop” for the holidays, Canadian Tire is offering extensive seasonally themed home entertainment products—everything from napkins and table cloths to themed bowls and plates. The artificial Christmas trees run as high as $500 for a seven-foot-plus “Whistler Pine” that comes pre-lit with 1,300 tiny incandescent lights.

Also on the lighting front, Canadian Tire has taken the Noma brand in-house, making the popular Christmas lights a proprietary brand, and not available anywhere else in the Canadian market.

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Classified Ads

Better Living Products International is a world-leading designer, manufacturer and marketer of unique, high-quality bath and shower organization products. Established in 1991, it continues to be best recognized for its Award-Winning product, The Dispenser™. Better Living has flourished to new heights and is on a major growth curve with the upcoming introduction of several new and innovative products. The search is on to fill the following positions with energetic, highly motivated, organized and results driven candidates:

Sales Assistant

The successful candidate will be accountable for the support, coordination and execution of our sales and marketing initiatives. Responsibilities include assisting the sales team in maintaining positive client relationships and to act as the liaison on all day-to-day activity. Experience in a similar or related administrative role combined with excellent communication, organization and interpersonal skills are required.

Product Manager

The ideal candidate has a solid understanding of product marketing concepts and has industry product management experience. This person will manage products through their lifecycle and be accountable for the management, coordination and execution of various product initiatives. We are looking for a flexible and enthusiastic team player that is highly detailed and proficient in multi-tasking.

National Account Manager

A sales professional with industry knowledge is required to assist in achieving our aggressive growth plans by managing specific key accounts and channels within the USA. The successful candidate will possess account management experience and demonstrate exceptional interpersonal, communication and selling skills.

All positions will be based at our world-wide corporate headquarters in Vaughan, Ontario. We offer competitive wages, benefits and a fun working entrepreneurial environment. Please submit your resume to Camillo Caperchione, Executive Vice President, Better Living Products, Email: camillo@dispenser.com

______________________________________________________________________

BLANCO CANADA INC. is Hiring a Business Analyst for our Brampton location.

The Business Analyst will be responsible for monitoring sales performance and utilizing analytical techniques to assist in making key forecast and replenishment decisions.  This position will be responsible for generating key financial reports, identify trends, lead monthly forecasting meetings and assist with the program management of IP and APO. This position will report into the Director of National Sales and will work closely with various departments.

Interested candidates should have a Post-secondary education with a minimum of 2 years of work experience in a sales analyst or similar role in the consumer goods industry. Advanced excel skills are required, and working knowledge of SAP is strongly preferred.  If you, or anyone you know, may be interested in applying, please send in your resume to the Human Resources Manager at hrinfo@blancocanada.com .

BLANCO CANADA INC. is Hiring a Product Manager for our Brampton location.

The Product Manager will be responsible for product planning. This includes managing the product throughout the product lifecycle, gathering and prioritizing product and Canadian customer requirements. The Product Manager will establish processes for new product introductions, including initial product launch presentations and forms. The Product Manager will assist with creation of marketing concepts and ensure the accuracy of all product technical documentation including specification sheets, product bulletins and parts breakdown drawings. This position will report into the Director of National Sales and will work closely with Sales and Product Management international teams, to support the development of the Blanco Canada product portfolio.

Interested candidates should have a post-secondary education with a minimum of 2 years of work experience in product or marketing management. This position requires overnight travel and proficient use of SAP, AutoCad and graphics systems. This position requires the ability to prioritize, manage and execute multiple projects within tight timelines. Ability to speak, write and read German and/or French is an asset. If you, or anyone you know, may be interested in applying, please send in your resume to Human Resources at hrinfo@blancocanada.com .

______________________________________________________________________

Fusion Products Limited

Key Accounts Manager

Fusion Products Ltd. is a leading supplier of outdoor living and landscape lighting products to North America retailers, with head office in Mississauga, Ontario. We are seeking a dynamic individual to fill this role.

Duties will include

• Development of sales, merchandising, assortment planning for assigned accounts.
• Development and execution of a comprehensive plan to drive sales and profitability
• Manage budgets and sales goals based on corporate sales objectives.
• Maintain complete competitive files and field analysis including regular ‘comp’ shops

Experience required:

• Post-Secondary education in Business  and/or equivalent experience,
• Key Account management in a similar role
• Strong organizational, interpersonal and computer skills,
• Ability to travel
• Desire to exceed customer expectations
• This role may  include managing Canadian and/or US account

To apply, please send your resume and cover letter stating salary expectations to: andrew@fusionproducts.ca

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November 10, 2014 Volume

xx, #42

“Freedom is the right to tell people what they do not want to hear.”

—George Orwell (British essayist, author and journalist, 1903-1950)

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Addition of Unimat dealers gives boost to BMR Show

QUEBEC CITY — BMR’s show for its dealers got an added boost from the merger of the buying group and wholesale distributor with La Coop fédérée almost a year ago. This is the first time La Coop’s hardware and building materials dealers, which operate under the Unimat banner, have attended the BMR show in force and their presence has increased attendance from 167 dealers represented last year to 360 this year.

The show reflected the larger numbers with a heightened buzz of energy and more traffic on the show floor. Vendors exhibiting at the event were also positive about the combined presence of the dealers, hoping to translate that into a higher volume of orders than in past years. The presence of La Coop dealers also gave a number of vendors not already selling to this company a chance to broaden their business even more.

La Coop, which has holdings in farm and feed, fuel, groceries, and home improvement, bought a 20% stake in BMR in a deal that closed at the beginning of this year. Buying teams for hardlines and LBM have been combined into BMR’s own offices, and La Coop will close down its own hardware distribution centre in Trois Rivières, Que., by January 2015.

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BMR launches Agrizone as standalone banner

QUEBEC CITY — The 360 dealers attending the latest BMR show, which wrapped up on Saturday, had a wider range of banner options to choose from than ever before.

Along with the traditional BMR banner, Unimat was added, reflecting the merger of the two groups when La Coop fédérée, which owns the Unimat brand, acquired a stake in BMR at the beginning of this year. But Agrizone, BMR’s farm hardware merchandising concept has also been spun off as a stand-alone banner.

The concept, first introduced as a department inside existing BMR stores (much like its décor concept, “Inspiration”), is now available to dealers who can identify an opportunity in their own market, especially where there’s no room for another BMR or Unimat store.

The Agrizone stand-alone stores will feature farm hardware, décor, paint and coatings, core plumbing and electrical, and farm seasonal.

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Home Depot security breach bigger than originally thought

ATLANTA — Home Depot has released a report indicating that the security breach it suffered in recent months was much worse than originally thought. The findings are the result of weeks of investigation in co-operation with law enforcement and third-party IT security experts.

Not only did Home Depot compromise the payment card histories of 56 million customers, but separate files containing about 53 million email addresses were also taken during the breach. While the files did not contain passwords or other personal security information, they would leave owners of those emails vulnerable to junk mail and phishing scams.

Home Depot is currently implementing tighter security protocols to enhance encryption of payment data in its U.S. stores. However, the rollout to Canadian stores will not be completed until early in 2015.

According to a report in the Wall Street Journal, Home Depot fell victim to the same type of hacking that was used on Target Corp. last year. The point of entry for the hackers’ attack was security information stolen from an outside vendor of Home Depot’s. From there, malware was able to infiltrate Home Depot’s main computer network through a weakness in the Microsoft Windows operating system.

While Microsoft issued a patch to fix that breach, the hackers were already inside Home Depot’s systems, eventually pinpointing the company’s POS systems to obtain the personal data of customers.

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Provincial market shares shift as West regains momentum

SPECIAL REPORT — As Canada’s retail home improvement industry slowly gains strength following the lows of the 2008-2009 worldwide recession, recovery remains very different depending on the region.

British Columbia showed the greatest growth among the provinces in 2013. Alberta also showed strong growth with a 0.5 percentage point increase in market share. Ontario, Canada’s largest province, and the largest market for home improvement retailing, saw its market share shrink from 33.1% in 2012 to 31.5% in 2013. In fact, with the exception of a slight increase in 2012, Ontario’s market share has been steadily decreasing for the last five years.

The Prairies and the Territories held steady market share throughout 2013. With an overall increase of 4.8% that year, growth in the West was stronger in 2013 than the 3% increase it enjoyed in 2012. British Columbia led the way with a 6.7% increase in sales. The market leaders in that province were RONA and TIM-BR MART Group, which both own slightly more than 11% of the market in that province.

Atlantic Canada is perennially resistant to economic highs and lows. In 2012, three provinces saw sales dip. In 2013, Newfoundland’s economic boom continued with Prince Edward Island also having huge increases in sales. In Nova Scotia, Home Hardware was the largest player, with almost 30% market share. Canadian Tire is next with slightly more than 16% of the market, while RONA, Castle, and Kent all had about 9% market share of that province.

(Full analysis of the market shares of each banner and each province is now available in the Hardlines Market Share Report. Click here for more info! —Editor)

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Retailers successfully battle high credit card fees

TORONTO — Two major credit card companies have agreed to lower their fees, making usage more affordable for merchants across Canada. The federal government announced voluntary agreements last week with Visa and MasterCard to reduce their respective credit card fees for consumer cards to an average effective rate of 1.5% for a period of five years. A greater reduction is provided for small and medium sized enterprises. The lower fees are expected to be in place by no later than April 2015.

The move follows years of complaints by retailers and other merchants, in an effort spearheaded by the Retail Council of Canada that has lasted almost a decade.

“For our merchants, this is an important first step towards ending the escalation of credit card fees that have been ballooning in Canada for the past seven years,” said Diane Brisebois, president and CEO of RCC. She added that fees “went completely unchecked” and that providers “were free to charge whatever rates they liked and retailers simply had to bear the increased cost to their business.”

Today, Canadian merchants pay on average between 1.5% and 3% on credit card transactions. With the new agreement, fees have been reduced by an average of 9.3%. However, Brisebois says Canadian retailers still pay some of the highest credit card fees in the world, noting that merchants in France pay 0.28% of the cost of a purchase, while that fee in Canada, even after the reduction, will still average 1.5%.

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November 3, 2014 Volume

xx, #41

“The main thing is to love the work that you do, because you may get no other reward.” —Philip Glass (American contemporary composer, 1937- )

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Home Depot breaks ground on Calgary RDC

CALGARY — Home Depot Canada has begun construction of its second rapid deployment centre in this country. The RDC is part of an overall strategy by the giant home improvement retailer to trim costs from its supply chain by flowing products through to its stores more efficiently.

The 425,000-square-foot centre, located in Dufferin North Industrial Park in Calgary’s Southeast, will serve Home Depot’s 70 stores across Western Canada. It is expected to be completed by the end of next year. It’s being built alongside a stocking distribution centre that will be 640,000 square feet in size.

The ground breaking, which took place last Thursday, even elicited a personal appearance by the otherwise low-profile president of Home Depot Canada, Bill Lennie. He was quoted in the Calgary Herald saying that this will be the first time the company has co-located a stocking distribution centre with a rapid deployment centre. “It’s the first of its kind for us. I think it’s the first of its kind in North America.”

Home Depot opened its first Canadian rapid deployment centre in Vaughan, Ont., in late February of this year. That RDC, which is 657,600 square feet, services the retailer’s 110 stores in Eastern Canada. It is big enough to house 12 football fields and features more than two kilometers of conveyor belts.

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ILDC prefers to remain selective

SPECIAL REPORT — As it celebrates its 50th anniversary this year, Independent Lumber Dealers Co-operative, the Ajax, Ont.-based buying group, manages to wield enviable leverage with suppliers thanks to a simple strategy. It sticks to its longstanding operational formula whose main ingredient is its members’ total commitment to the purchasing deals that the group strikes with select vendors.

It is now embarking on its next half century, with a newly hired general manager and an eye toward increasing its membership. But a big question for ILDC is whether there are enough companies out there that can meet its criteria and want to become part of what several current members refer to as a “brotherhood.”

Members point to several factors that they claim separate ILDC from other buying groups and keep their companies on the competitive edge. One is the group’s low overhead. It currently operates with only five employees, who are supported by the members’ involvement in various committees that negotiate purchasing agreements with suppliers.

“We can shift business when we have to, and we can recruit members who share our values,” says Lynn Hollingsworth, president of Soo Mill & Lumber in Sault Ste. Marie, Ont., which has been an ILDC member since 1984.

ILDC, though, is not for everyone. Throughout its history the buying group has been extremely picky about which dealers or distributors it lets in. “It has never been about numbers,” explains Steve Copp of Copp’s Buildall in London, Ont. “We could have gotten bigger but we decided not to.”

However, says Steve Smith of Central Home Improvement in Antigonish, N.S., and current president of ILDC, “We are open to new members that want to keep their independence and be profitable. We have some of the most profitable companies in the industry,” he adds.

(For the full article on ILDC, check out the latest issue of our sister publication, Hardlines Home Improvement Quarterly, in the mail now to more than 11,500 dealers across the country! —Editor)

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Conference Report: the importance of retail as “experience”

TORONTO — What consumers want most from their retailers are experiences. This turned out to be one of the key takeaways from the latest Hardlines Conference, held here just two weeks ago.

As Robert Howard, from Kurt Salmon, a management consulting firm, told the audience, consumers are willing to pay a premium for an experience. He went on to reference a study that said 80% of executives thought that their companies were delivering superior customer service, but only 8% of customers agreed.

Even more jarring is the fact that a study also showed that 90% of consumers will leave brands because of a bad customer service experience.

Jo Rossman, of the Association of Retail Environments, presented examples from around the world of innovative store design and POP aimed at engaging customers and making the store visit more exciting.

But if retailers remember that their bottom line isn’t about pleasing their shareholders—or even keeping track of their shares and likes on social media—and instead focus on sharing their knowledge, expertise, and their own personal touch, says Robert Moschorak, from Ace Hardware International, they’re pointed in the right direction.

“You can never lose sight of who you’re serving,” says Moschorak. “Success isn’t about getting it past the goal post, it’s about how you practice every day.”

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Buying groups find new ways to grow their ranks

SPECIAL REPORT — After an uncharacteristically tumultuous 2013 in their sector, lumber and building materials buying groups are probing the competitive terrain for penetrable soft spots that are increasingly fewer and farther between.

“Let’s face it, there aren’t a lot of [unaffiliated] dealers left in the marketplace, and most people are pretty happy where they are,” says Bob Holmes, general manager for TORBSA, which last year hired its first outside salesperson, whose job “is to knock on doors and tell our story.”

TORBSA managed to recruit five new members in 2013, some in markets where it previously didn’t have much presence, such as Quebec City and Halifax. Those additions include one dealer that specializes in spray foam insulation, and another that specializes in ceilings. Holmes says TORBSA’s selling points are its “transparency” with members, and its reputation as a low-cost operator.

The buying group’s efforts to attract new dealers, says Holmes, have been enhanced by a three-year-old strategic partnership with Castle Building Centres Group. Within the umbrella group, Epic Alliance, the two groups jointly negotiate purchases and prices with suppliers.

TIM-BR MART Group recently created regional director of member services positions, with an eye towards fortifying its dealers’ confidence in its operations. “By realigning our team, we have placed experienced liaisons between our membership and Chalifour Canada, vendors and all internal resources,” said Bernie Owens, president of TIM-BR MART. “Members now have one point of contact, eliminating any confusion of who to talk to when in need of assistance.”

Owens said he remains committed to sustaining TIM-BR MART’s values and strengths, which he identified as “our national critical mass combined with our ability to act regionally.” The recent decision to combine Chalifour’s and TIM-BR MART’s buying shows into one event next year was made in response to dealer requests. And the launch in early 2014 of a new electronic catalogue, offering 30,000-plus SKUS, supports the buying group’s “customer-centric values,” said Owens, who added that future releases for this program would, among other things, streamline the order-entry process.

(For our full report on buying groups, check out the latest issue of our sister publication, Hardlines Home Improvement Quarterly, in the mail now to more than 11,500 dealers across the country! —Editor)

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October 27, 2014 Volume

xx, #40

“If no one ever took risks, Michelangelo would have painted on the Sistine floor.” —Neil Simon (American playwright, 1927- )

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Outstanding retailers awarded at Hardlines Gala

TORONTO — Canada’s finest hardware and home improvement retailers were honoured last week at Hardlines’ 2014 Outstanding Retailer Awards. The awards were part of a gala dinner that concluded day one of the 19th Annual Hardlines Conference.

HARDLINES celebrates the industry’s finest once a year at the esteemed ORA Gala Dinner. Dealers from across the country were awarded, in a range of categories covering the gamut of home improvement retailing formats.

“The winners of this year’s ORAs consistently displayed strong business savvy combined with passionate involvement in their local communities,” said Michael McLarney, Editor and President of Hardlines Inc. “That was true whether they were small independents or managers of big box stores.”

The winners of the Hardlines 2014 Outstanding Retailer Awards are:

Best Hardware Store

Sutton Home Hardware, Sutton, Ont.

(front) Jane Kelly of Schlage, which sponsored the Award; and Linda Haynes, owner of Sutton Home Hardware; (rear) Sam Russo and Mark Wilson of Schlage; Dave Haynes, Owner, and Steve Peasgood, Manager, of Sutton Home Hardware; and Michael McLarney, Editor of Hardlines, which hosts the Awards.

Best Building Centre under 25,000 sq.ft.

Rocky Mountain House Co-op, Rocky Mountain House, Alta.

(front) Jason Stewart and Anita Terry of Rocky Mountain House Co-op; (rear) Jeff Lelond of Rocky Mountain House Co-op; Eric Schlaud of Orgill, sponsor of the Award; Shane Buss and John Adrian of Rocky Mountain House Co-op; and Michael McLarney, of Hardlines, which hosts the Awards.

Best Building Centre over 25,000 sq.ft.

Gananoque Home Hardware Building Centre, Gananoque, Ont.

Beverly Allen, Publisher of Hardlines, which hosts the Awards; Kenzie O’Connor and Laura Ware of Gananoque Home Hardware Building Centre; and Sébastien Plourde, President of Super Remover and sponsor of the Award.

Best Contractor Specialist Retailer

Alf Curtis Lumber, Peterborough, Ont.

Rich Russo of the National Hardware Show, which sponsored the Award; Chris Curtis, Brent Perry, Larry Curtis, and Chase Curtis of Alf Curtis Home Improvements; and Beverly Allen, Publisher of Hardlines, which hosts the Awards.

Best Large Surface Retailer

RONA Erin Mills, Erin Mills, Ont.;

Beverly Allen, Publisher of Hardlines, which hosts the Awards; Elizabeth Graham and Bill Graham, Manager of RONA Erin Mills, Erin Mills, Ont.; and Sara Clarkson, President of Storesupport Canada, sponsor of the Award.

Young Retailer of the Year

Nancy Powell Quinn, Co-owner, Moffatt & Powell RONA, London, Ont.

Robert Boulanger of Techniseal, sponsor of the Award; Nancy Powell Quinn and D’Arcy Quinn of Moffat & Powell RONA; and Michael McLarney, Editor of Hardlines, which hosts the Awards.

Marc Robichaud Memorial Community Leader Award

Hickey’s TIMBER MART, St. John’s, Nfld.

Lou Valeriati, Vice President of Chalifour Canada; Beverly Allen, Publisher of Hardlines, which hosts the Awards; Brad Hickey and Jay Hickey of Hickey’s TIMBER MART; Peter Thompson of Taymor, sponsor of the Award.

This year’s Outstanding Retailer Awards were selected from among a range of exemplary dealers who entered from every corner of Canada. The judging was done by a panel of industry experts, representing all facets of the industry: retail, manufacturing, wholesale and store design. The ORAs, which began in 1992 as a way to honour and recognize the finest retailers in the hardware/home improvement industry, are one of the many programs offered by Hardlines to serve Canada’s retail home improvement industry.

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Hardlines Conference gets back to community basics

TORONTO — The key to staying on the top of your game is always remembering who you’re playing for. When it comes to the home improvement industry, all retailers need to jog their memories is to look around—whether at their store, at the outdoor rink, or even the dog park—and be reminded of the people in their communities that determine their success.

This theme of community involvement ran strongly throughout the 19th annual Hardlines Conference last week. Greg Hicks, the senior vice president of merchandising for Canadian Tire, explained how the iconic Canadian brand, facing declining sales, re-evaluated and came to the conclusion that it had to get back to its original values.

“This soul-searching helped us realize that we need to stay true to our roots,” said Hicks. “And our social causes became our compass.”

Canadian Tire’s Jumpstart program, which funds sports equipment for under-privileged youth, and its partnerships with professional athletes have not only boosted the company’s reputation in the eyes of Canadians, but sales as well.

But it doesn’t take getting professional hockey players involved to meaningfully give back to your community. As the delegates heard, a gesture as simple as providing ear plugs at a local music festival in Victoria, B.C., made Vicki Hagel’s Cook Street Castle Building Centre’s booth there the talk of the festival.

While this wasn’t news to audience members—quality customer service and community involvement have long been what sets the home improvement industry apart—to see and hear first-hand examples of this kind of involvement, ranging from Canada’s largest retailer to a local independent, brought home the importance of balance, at home and at the workplace.

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Federated Co-op seeks home improvement acquisitions

TORONTO — The farm economy in the West has been healthy over the past couple of years, and farm and hardware retailer Federated Co-operatives Ltd. has amassed a war chest and is looking for acquisitions. It’s already bought up 14 Sobeys stores and 17 agro stores from Viterra this year in Western Canada.

Now, says Tony Steier, FCL’s director of hardware and building materials, the company, which is the second-largest in Saskatchewan, is looking for companies in this industry to purchase. FCL is also looking for opportunities for greenfields expansion, he says.

Steier surprised a roomful of home improvement dealers and executives with the news during the closing presentation at the 19th Annual Hardlines Conference, held in Toronto last week. Acquisition targets could include smaller independents or even larger chains, he added.

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Canadian Tire to open flagship store in Edmonton

TORONTO — Canadian Tire is on track to open a new flagship store in Edmonton next week. The new showcase format will be 137,000 square feet—far surpassing the retailer’s largest existing store, which measures 90,000 square feet. Details of this new format were revealed at the 19th Annual Hardlines Conference during a presentation by Greg Hicks, the senior vice president of merchandising at Canadian Tire.

The Edmonton store will have a distinct look and feel, relying heavily on digital technology, Hicks said. Along with its new digital loyalty program, it will be piloting different ways to make the experience for customers easier and more efficient—both technologically and in its merchandising.

That includes the process of picking up online orders in-store. With customers increasingly gravitating towards buying online and picking up in-store, Canadian Tire is looking into a dedicated pick-up area to streamline wait times. The company is also piloting two different checkout processes to make cashing out a more engaging experience for customers.

“We have to wake up every day and think about how we’re going to be the best in every business we operate,” said Hicks.

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Big boxes look for ways to re-invent

SPECIAL REPORT — As many retailers look for ways to reduce the footprint of their stores, some retailers remain married to the big box format. But that doesn’t mean they aren’t trying out new ideas.

Home Depot Canada has been experimenting with using its stores as showrooms for online purchases. In the spring, it upgraded merchandise at 56 locations to showcase products, including a line of patio furniture, available only online.

This strategy is part of a broader move to combine the power of the big box with ever-important online sales. “Buy online, pick up in store” allows customers to browse and select purchases online, while getting the in-store customer service experience when they retrieve their items. Almost one-third of Home Depot’s online sales are now completed in-store.

RONA, meanwhile, has invested heavily in repositioning its 16 Réno-Dépôt stores in Quebec. Their new look is designed to appeal to contractors, with a focus on brand-name products, a new procurement policy to ensure that products remain in stock, and a redesign of the store’s interior to widen aisles, lower sight lines, and provide better signage and more staff.

Lowe’s Canada is taking similar steps to work within the big box model to reach contractors and professionals. Two new south-central Ontario stores, in Cambridge and Burlington, opened this year with the goal of getting professional customers in and out as efficiently as possible with all their equipment needs.

(For the full article the evolution of the big box, check out the latest issue of our sister publication, Hardlines Home Improvement Quarterly, in the mail now to more than 11,500 dealers across the country! —Editor)

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Classified Ads

Renin (RedefiningaNdINnovating) is an innovative manufacturer of door systems and hardware for door manufacturers and fabricators. Renin also manufactures and distributes sliding bypass and bifold closet doors, room dividers, fabricated glass and decorative mirrors to the residential construction and remodeling markets. With a recent ownership change, the mandate is to build both strategy and leadership to continue their growth. Wolf Gugler Executive Search has been retained to search out qualified candidates for the following positions:

Director of Sales

Manage the sales execution process and strengthen the current business relationships with assigned accounts such as Home Depot, Lowe’s and Home Hardware nationwide. Responsible for new account acquisitions and selling Renin branded goods to those accounts.

• Work hand in hand with the senior management, especially with the Vice President Sales and Marketing and the Marketing Team, to make sure that the e fforts are being well directed.
• D irect reports include Account Manager s; train, develop and add to headcount as deemed necessary.
• Development of sales, merchandising and assortment planning to assigned accounts.
• Align business plan to achieve budgets while creating and implement ing strategies that help the business grow and surpass sales targets.
• Prepare key account sales plans and account profiles and maintain detailed account management profiles with a thorough understanding of all decision-makers and business strategies.
• Develop and foster relationships with Merchants, M.A.s and associated support staff.
• Build and maintain a ctive market research, analyze trends and develop strategies a ccording ly .
• M anage budgets and sales goals and w ork to achieve monthly, quarterly and annual targets based on corporate sales objectives.
• Maintain complete competitive files including regular ‘comp’ shops.
• Develop new listing items and product demand forecast models.

Qualifications: ten years’ success in a sales management role in the building materials/ home renovation industry. Strong leadership skills including adaptability, creativity, forecasting and budgeting and outstanding customer focus. You may be based in Canada or the US for this role.

To apply, click this link or apply online on the Opportunities page of our web site, www.wolfgugler.com.

Director of Marketing

Based in the Brampton corporate office, this new role will be hired after the Director, Sales. The full position responsibilities and qualifications are posted on our web site Opportunities page.

To apply for this role click here or apply online on the Opportunities page at www.wolfgugler.com.

Wolf Gugler Executive Search, 888-848-3006. Offices in Canada and the U.S. www.wolfgugler.com

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October 13, 2014 Volume

xx, #38

“In the modern world of business, it is useless to be a creative, original thinker unless you can also sell what you create.” David Ogilvy (British-born advertising pioneer and founder of Ogilvy Group, 1911-1999)

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Canadian Tire unveils digital growth strategy

TORONTO — Canadian Tire Corporation says it’s going “on offence” with an aggressive three-year plan “to compete in a rapidly changing retail environment.” The company intends to drive growth from its core businesses, including its retail banners and financial services. “We can unlock tremendous growth in our existing businesses,” said Michael Medline, president of Canadian Tire, who will also become CEO effective December 1.

That plan will include targeting the new generation of young families with children and will be reflected in product assortments, marketing, store layouts, and investments in digital and online offerings. The company finally began selling online nationally earlier this year, and now offers about 80% of its products through a “buy online, pick up in store” system.

Medline said he wants to see targeted advertising reaching customers by text message for discounts on seasonal goods. The company isn’t quite ready to take that step, which would require a system that “knows it’s snowing” and tags inventory accordingly, but Medline says Canadian Tire needs to up its online game if it’s to appeal to the next generation of shoppers.

On the credit card side, Canadian Tire Financial Services will continue to expand its services to customers, including in-store instant credit and increased loyalty rewards through the new Canadian Tire loyalty program for Options MasterCard holders.

The company says it will buy back an additional $400 million of class A non-voting shares through to the end of 2015. It also confirmed that it will maintain its dividend policy, paying out 25-30% of the prior year’s normalized earnings. With these changes, CTC expects to realize annualized sales growth of at least 3% at Canadian Tire, 5% or more at Mark’s, and 9%-plus at FGL Sports.

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RONA expects Ace reach 400 stores in five years

WINNIPEG — RONA sees its new partnership with Ace Hardware as an effective means for recruiting dealers and expects to grow to almost 400 stores in Canada over the next five years.

The Ace brand will be managed largely out of RONA’s TruServ Canada division in Winnipeg, with a team out of Boucherville as well. RONA will concentrate on big boxes and RONA affiliates, while TruServ Canada will keep focused on the smaller stores, many of them already carrying TruServ’s TRU brand. As for other independents, Ace Canada’s recruitment team is already knocking on doors across the country.

According to Bob Moschorak, president of Ace International, the brand is coming to Canada this time with a long-term strategy, something, he says, that may have been lacking with Ace in the past. Under the new partnership, Ace expects to have 398 dealers onside before the end of this decade.

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Young leaders will present at Hardlines Conference

NEW WORLD HEADQUARTERS — The Hardlines Conference will welcome some fresh voices on the podium this year. A panel will feature young retailers and vendors from across Canada who will give their take on the needs and drives of the new generation of the home improvement industry. Meet our panel:

Kim Ytsma, Co-Owner, Alliston Home Hardware. Kim began working in her dad’s store when she was just 10 years old.  Today, she directly oversees the 15 service desk staff and ensures consumers get the assistance they need. Kim splits her day between the customer service desk, her own office, and working the floor.

Marc-André Dignard, Project Manager – Retail, RONA inc. Marc-André joined RONA in 2009 as a senior internal auditor. A Chartered Professional Accountant by profession, he became Project Director, Operations in 2012 and is responsible for SG&A, cost reduction, standardizing retail operations, closing non-performing stores, and many other projects.

Joel Seibert, General Manager, Mountain View Building Materials. Joel is a third-generation  lumberman. While only 32 years old, he has been exposed to the building supply industry his entire life. He believes the future of the retail lumber industry depends on retailers’ ability to communicate with customers, suppliers, and environmental groups to ensure innovation, growth, and sustainability for many generations to come.

Eric Palmer, Canadian Sales Operation Manager, JELD-WEN Windows & Doors. Eric graduated from the University of Manitoba with an Honors Degree from the Asper School of Business, and joined JELD-WEN, where he has worked his way through Management and Communication training.

The panel will be moderated by Sherri Amos, Education & Communication Specialist at Home Hardware Stores Ltd. With voices from all levels of the industry, this group of young leaders will challenge your thinking on where our industry is going in the 21st century.

Click here to find out more about the 19th Annual Hardlines Conference, October 22-23 at the Sheraton Toronto Airport Hotel & Conference Centre.

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Shoppers turn away from bricks and mortar

SPECIAL REPORT — U.S. retailers are facing a steep and persistent drop in store traffic, which is weighing on sales and prompting chains to slow store openings as shoppers make more of their purchases online.

A recent Wall Street Journal article explains that shopper visits have essentially fallen by 5% or more from a year earlier in every month for the past two years, according to ShopperTrak, a Chicago-based data firm that records store visits for retailers using tracking devices installed at 40,000 U.S. outlets. Even as warmer temperatures replaced the harsh winter weather this year, store visits fell by nearly 7% in June and by nearly 5% in July, according to ShopperTrak.

New data from Moody’s Investors Service shows that the shift to online sales has prompted retailers to scale back store openings and will likely lead them to pare back even more in coming years, as more than $70 billion in lease debt expires by 2018. Growth in store counts at the 100 largest retailers by revenue has slowed to less than 3% from more than 12% three years ago, according to Moody’s.

The pressure comes as consumer tastes are changing. Instead of wandering through stores and making impulse purchases, shoppers use their mobile phones and computers to research prices and cherry-pick promotions, sticking to shopping lists rather than splurging on unneeded items. Even discount retailers are finding it harder to boost sales by lowering prices as many low-income consumers struggle to afford the basics, regardless of the price.

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Lowe’s subject of “frivolous lawsuit”?

SAN RAFAEL, Calif. — Officials in the Bureau of Weights and Measures here charged Lowe’s with consumer fraud over the real dimensions of its 2x4s, in what The Motley Fool characterized as part of a “rising wave of frivolous lawsuits.” According to a Lowe’s statement, the complaint arose after local weights and measures department inspectors visited Lowe’s stores and found that its dimensional lumber was “under-sized.”

It’s an industry convention: smoothing down a rough 2×4 to a standard 1.5″x 3.5″ avoids a plethora of locally improvised cut dimensions. In California, however, it has raised enough questions around consumer protection to catch the court’s attention. The agreed settlement, enforced by court order, seems to suggest that all parties consider it prudent to inform customers of lumber measurements in real terms. Lowe’s will now list both conventional and exact measurements for its dimensional lumber. It will also be obliged to write out feet and inches, without resorting to the tick marks commonly used to indicate those units.

What isn’t yet clear is why Lowe’s was singled out for a common practice, or how other industry players will respond. If the settlement is the sign of a shift in thinking, then “bilingual” measurements could become an industry fixture. Other companies will not want to invite the possibility of litigation, and with the precedent set by the case in California, voluntarily adopting Lowe’s new standards may be the safe option.​

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Classified Ads

Renin (RedefiningaNdINnovating) is an innovative manufacturer of door systems and hardware for door manufacturers and fabricators. Renin also manufactures and distributes sliding bypass and bifold closet doors, room dividers, fabricated glass and decorative mirrors to the residential construction and remodeling markets. With a recent ownership change, the mandate is to build both strategy and leadership to continue their growth. Wolf Gugler Executive Search has been retained to search out qualified candidates for the following positions:

Director of Sales

Manage the sales execution process and strengthen the current business relationships with assigned accounts such as Home Depot, Lowe’s and Home Hardware nationwide. Responsible for new account acquisitions and selling Renin branded goods to those accounts.

• Work hand in hand with the senior management, especially with the Vice President Sales and Marketing and the Marketing Team, to make sure that the e fforts are being well directed.
• D irect reports include Account Manager s; train, develop and add to headcount as deemed necessary.
• Development of sales, merchandising and assortment planning to assigned accounts.
• Align business plan to achieve budgets while creating and implement ing strategies that help the business grow and surpass sales targets.
• Prepare key account sales plans and account profiles and maintain detailed account management profiles with a thorough understanding of all decision-makers and business strategies.
• Develop and foster relationships with Merchants, M.A.s and associated support staff.
• Build and maintain a ctive market research, analyze trends and develop strategies a ccording ly .
• M anage budgets and sales goals and w ork to achieve monthly, quarterly and annual targets based on corporate sales objectives.
• Maintain complete competitive files including regular ‘comp’ shops.
• Develop new listing items and product demand forecast models.

Qualifications : ten years’ success in a sales management role in the building materials/ home renovation industry. Strong leadership skills including adaptability, creativity, forecasting and budgeting and outstanding customer focus. You may be based in Canada or the US for this role.

To apply, click this link or apply online on the Opportunities page of our web site, www.wolfgugler.com.

Director of Marketing

Based in the Brampton corporate office, this new role will be hired after the Director, Sales. The full position responsibilities and qualifications are posted on our web site Opportunities page.

To apply for this role click here or apply online on the Opportunities page at www.wolfgugler.com.

Wolf Gugler Executive Search, 888-848-3006. Offices in Canada and the U.S. www.wolfgugler.com

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October 6, 2014 Volume

xx, #37

“Progress always involves risks. You can’t steal second base and keep your foot on first.” —Freddie Wilcox (English footballer, 1881-1958)

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PEASE NOTE OUR NEW ADDRESS:

528 Queen Street East, Toronto, ON, M5A 1V2.

Our phone number (416-489-3396) remains the same.

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TruServ Canada introduces Ace programs at Fall Market

Martin Provencher, vice-president, business development for RONA’s partnership with Ace; Bob Moschorak, president of Ace International; and Bill Morrison, president of TruServ Canada.

WINNIPEG — Besides new products and show specials, delegates at the TruServ Canada Fall Market last week were introduced to a new brand option. Bob Moschorak, president of Ace International, was the guest speaker at the market, where he presented the benefits of the Ace program to dealers in attendance.

RONA, which owns TruServ Canada, is giving its full support to the Ace initiative. TruServ dealers will be given the opportunity to rebrand to Ace where it fits for them, with no hard costs attached to the conversion. “We intend to become Ace Canada,” says Bill Morrison, president of TruServ Canada. “But it’s a process and we don’t intend to lose focus on the TruServ wholesale aspect. We will continue to support the independent retailers regardless of their brand.”

The Ace brand represents another offering in RONA’s dealer portfolio, with a leadership group out of both Winnipeg and Boucherville to ensure Ace’s reach is truly national—and in both official languages.

Dealers attending the Winnipeg market had mixed responses to the new offering, even though most dealers who spoke with HARDLINES saw it as a positive—including existing Ace dealers who saw the benefit of following the brand to its new home. Even those who were concerned about changing their store name so recently after adopting the TRU banner, which was introduced by TruServ two years ago, said they believed that Ace is a well-known brand that could benefit their business.

Besides Ace products, dealers here will also have access to a range of tools and services, which have been developed in both English and French. These include an online portal, “Ace Brand Place,” which provides marketing services online such as email campaign tools.

The key for dealers in Canada will be the ability to “bulk up on private label and controlled label products that you can’t get anywhere else in Canada,” Moschorak explained. The goal? “To make one solid national brand across the country.”

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RONA celebrates its 75th anniversary

BOUCHERVILLE, Que. — Today, RONA inc. turns 75. Throughout October, special promotions and activities are planned to celebrate the anniversary in all RONA stores across the country.

The company began in 1939, when half a dozen dealers created Les Marchands en Quincaillerie ltée to get around a monopoly that was threatening their supply chain. Their mission at the time is still relevant today: to combine orders to obtain the best prices. A few years later, Rolland Dansereau and Napoléon Piotte took control of the company, and in 1960 they formed Ro-Na, creating the new name using the first syllables of their own first names. In 1988, Ro-Na merged with Dismat, another group that was working mainly in construction materials, and became Ro-Na Dismat. The 1990s was the era of big box stores, ushering in RONA L’entrepôt.

The first decade of 2000 saw rapid growth for RONA, as it made acquisitions, built new stores, and recruited new dealer-owners. In 2002, RONA went public. Most recently, RONA has formed a master licensing agreement for the Ace Hardware brand in Canada. Today, the company is Canada’s largest home improvement retailer as measured by sales at retail (Source: Hardlines Retail Report) , with a network of more than 500 corporate, franchise, and affiliate stores.

“RONA enjoys a tremendous legacy,” said RONA president and CEO Robert Sawyer. “[But] in the world of retail, there is no status quo. We have to constantly re-invent ourselves to stay relevant, to improve our offering, and adjust our strategies.”

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Ace promises “new strategy” for Canada

WINNIPEG — At the TruServ Canada Fall Market last week, TRU and RONA dealers, along with 21 prospects, had the opportunity to learn about the company’s new alliance with Ace Hardware. Bob Moschorak, president of Ace International, explained that a full assortment of private-label and controlled brand products will be available to Canadian dealers who wish to carry the Ace brand.

Moschorak noted that Ace has 4,200 stores in the U.S., plus more than 650 locations worldwide through its International division. With Ace celebrating its 90th anniversary in 2014, Moschorak said the company’s approach to Canada, where it has had a series of partners through the years, would be different this time round.

“Over the years, Ace in Canada—especially in English Canada—has had its problems,” he admitted. “We didn’t always know how to manage it.”

Ace first ventured north of the border in 1992, striking a deal with LBM distributor CanWel. Most recently it was licensed in Canada by TIM-BR MART Group, until that partnership was dissolved at the end of August. (For a comprehensive history of Ace in Canada, check out our August 11, 2014 edition of HARDLINES ! —Editor)

Moschorak explained that Ace in the past had relied on a centralized distribution model. But that had to change. “It was a very shallow model. We needed to change to be able to ship to a region—and to a country—according to its needs and market.” Now, he said, Ace acts like a retail company, focusing on services to help dealers sell better. “All of these are retail programs, not wholesale programs.”

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Canadian Tire sells 20% of its financial services to Scotiabank

TORONTO — Canadian Tire Corp. and Scotiabank have managed to get the regulatory approvals required for them to launch a new business and co-marketing partnership. The proposed deal, first announced back in May, has Scotiabank acquiring a 20% interest in Canadian Tire’s financial services business for $500 million in cash. It further includes a comprehensive co-marketing agreement aimed at building business for both partners.

Scotiabank is paying up to $2.25 billion to Canadian Tire’s financial services business for backstop financing of its credit card receivables. The money will be used to pay down debt and increase dividends. The deal allows Canadian Tire to sell up to an additional 29% equity interest in its financial services business to Scotiabank within the next 10 years.

The two companies have already tried out some joint marketing, which has already generated new business, assert the two companies in a release. The companies plan to ramp up co-marketing for 2015.

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Ferroforma continues its strategic positioning

BILBAO, Spain — Ferroforma, the hardware and specialty tools trade fair held every other year in this city in Northern Spain, is slated to host a large offering of products, technologies, and industrial services from May 26-29, 2015.

The show will be divided into two areas. The “Industry” section will feature industrial supply products, hand and portable power tools, locks and fittings, woodworking machinery, protective equipment, and construction supplies. The “Home” area will feature domestic locks, decoration, lighting, and small-scale electrics, bath and plumbing, household goods, gardening, wooden furniture, hardware, textiles, and automotive DIY products.

The show continues to draw delegates from across Europe, and even North America. Exhibitors at Ferroforma 2015 can take advantage of special pricing before October 31. ( Click here for more information about Ferroforma 2015.)

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Classified Ads

Renin (RedefiningaNdINnovating) is an innovative manufacturer of door systems and hardware for door manufacturers and fabricators. Renin also manufactures and distributes sliding bypass and bifold closet doors, room dividers, fabricated glass and decorative mirrors to the residential construction and remodeling markets. With a recent ownership change, the mandate is to build both strategy and leadership to continue their growth. Wolf Gugler Executive Search has been retained to search out qualified candidates for the following positions:

Director of Sales

Manage the sales execution process and strengthen the current business relationships with assigned accounts such as Home Depot, Lowe’s and Home Hardware nationwide. Responsible for new account acquisitions and selling Renin branded goods to those accounts.

• Work hand in hand with the senior management, especially with the Vice President Sales and Marketing and the Marketing Team, to make sure that the e fforts are being well directed.
• D irect reports include Account Manager s; train, develop and add to headcount as deemed necessary.
• Development of sales, merchandising and assortment planning to assigned accounts.
• Align business plan to achieve budgets while creating and implement ing strategies that help the business grow and surpass sales targets.
• Prepare key account sales plans and account profiles and maintain detailed account management profiles with a thorough understanding of all decision-makers and business strategies.
• Develop and foster relationships with Merchants, M.A.s and associated support staff.
• Build and maintain a ctive market research, analyze trends and develop strategies a ccording ly .
• M anage budgets and sales goals and w ork to achieve monthly, quarterly and annual targets based on corporate sales objectives.
• Maintain complete competitive files including regular ‘comp’ shops.
• Develop new listing items and product demand forecast models.

Qualifications : ten years’ success in a sales management role in the building materials/ home renovation industry. Strong leadership skills including adaptability, creativity, forecasting and budgeting and outstanding customer focus. You may be based in Canada or the US for this role.

To apply, click this link or apply online on the Opportunities page of our web site, www.wolfgugler.com.

Director of Marketing

Based in the Brampton corporate office, this new role will be hired after the Director, Sales. The full position responsibilities and qualifications are posted on our web site Opportunities page.

To apply for this role click here or apply online on the Opportunities page at www.wolfgugler.com.

Wolf Gugler Executive Search, 888-848-3006. Offices in Canada and the U.S. www.wolfgugler.com

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September 29, 2014 Volume

xx, #36

“Without deviation from the norm, progress is not possible.” —Frank Zappa (American musician, composer and social agitator, 1940-1993)

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THE HARDLINES WORLD HEADQUARTERS HAS MOVED!

We have moved out of our office at 360 Dupont. Our new office isn’t quite ready yet. So, in the meantime we will be working from our home offices and are still available by phone and email. Starting October 6th, the new Hardlines World Headquarters will operate from: 528 Queen Street East, Toronto, ON, M5A 1V2. Our phone number remains the same.

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Trois-Rivières closure marks next step in La Coop-BMR alliance

Trois-Rivières, Que. — La Coop fédérée has confirmed a firm closure date for its hardware and LBM distribution centre in Trois-Rivières. The closure, first announced back in February, and forecast to take up to 15 months, will be completed by January 16, 2015.

The closure plan ties in with La Coop fédérée’s investment in Le Groupe BMR. La Coop assumed 20% ownership of BMR at the beginning of 2014. In recent months, product buying functions have been relocated to BMR’s own offices and that consolidation is now complete.

“BMR is already serving about 20 Coop stores and it’s working very well,” says Claude Sénéchal, general manager of La Coop’s hardware and farm machinery division. “One hundred and twenty-five stores are still served out of Trois-Rivières. With this closing, BMR will be able to take those stores.”

BMR is now headed by Pascal Houle, who is executive vice president there. He stepped in following the sudden retirement of long-time president and founder, Yves Gagnon, who stepped down for health reasons.

The move to buy into BMR, which competes against La Coop’s own Unimat banner, was driven by increased competition in the marketplace, says Sénéchal. However, the hardware and building materials sector is still a priority for its members and La Coop intends to remain as a full player in its own right.

“For many years we marketed the Unimat banner with some success. But to be really successful we need to be allied with a larger banner,” Sénéchal told HARDLINES. He expects both banners to grow under the new arrangement. “There’s room for the Unimat banner to co-exist with BMR.”

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Healthy dealer sales lift mood at Home Hardware Market

ST. JACOBS, Ont. — Hardware Stores held its fall market last week, as the giant co-op continues to celebrate its 50th anniversary this year. More than 3,000 people—Home dealers, families, and staff—converged on the Mennonite community of St. Jacobs, just north of Waterloo, Ont., where Home Hardware’s offices and distribution centre are located.

The mood among dealers was generally upbeat, all of them reporting a busy latter part of the summer heading into fall, following a very slow first half of the year. Vendors in attendance were likewise positive, with most of them confirming to HARDLINES that day one of the show was especially busy.

Highlights of the market included innovations in the paint department: a new paint colour card for Home’s own Beauti-Tone brand of paint, developed in partnership with Style at Home magazine. “Working with these decorating opinion leaders, the editors of Style at Home, we have developed six new collections,” said Darrin Noble, who heads up the Beauti-Tone business. He calls the soft, warm shades “country friendly,” to contrast with the collection developed for the last market in association with Chatelaine magazine. That one, with its stronger colours, “was more edgy and reflected an industrial chic.”

On the marketing side, Home continues to push e-commerce and social media. Following the launch of an e-commerce initiative in the spring of this year, most of the dealers are on board with the company’s “buy online, pick up in-store” program, said Jack Baillie, Home’s director of marketing.

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Milot takes over expansion efforts at RONA

BOUCHERVILLE, Que. — In an effort to co-ordinate its expansion and development efforts, RONA has appointed Stéphane Milot to the newly created role of vice president, expansion, development and real estate. Milot has been with RONA for seven years and was previously vice president, finance and investor relations.

This new position will regroup all the strategic development activities driving RONA’s market expansion plans. In his new role, Milot will lead the following functions: real estate development for both corporate and dealer sites, management of existing properties, development of new dealers and corporate opportunities, market intelligence, and acquisitions and sales.

André Lavoie has been promoted to vice president, finance and investor relations, replacing Milot. Lavoie joined RONA in 2011 and was previously senior director, financial analysis.

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Smaller B.C. show aims for “boutique” quality audience

WHISTLER, B.C. — While the event drew just 400 people, including vendors and dealers, organizers of the BSIA of B.C.’s Westcoast Building and Hardware Show are calling it a success.

“Our whole intention here is to find a place and a venue and mix to host a region—a B.C. show for B.C. people,” says Thomas Foreman, president of the BSIA. He admits that the small size of the show—even a bit smaller in terms of dealer attendance than last year—represents a new era not just for this show but for all trade shows. “For example, we had one person from RONA this year, whereas in years past RONA would bring six, seven, eight people.”

Nevertheless, he stresses that the size of the show was not the main thing, but rather the need for the tight-knit West Coast community of dealers to have a place to gather, complete with an awards dinner and a charity golf tournament. “It was a focused market, with quality customers that the vendors wouldn’t typically get a chance to see.”

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Super Remover begins construction of new factory

GRANBY, Que.— Super Remover, a division of Distributions J. Des Serres inc., has announced the construction of its new head office on 619 Du Luxembourg Street in Granby. The first phase of the project consists of a 10,000-square-foot industrial head office on 100,000 square feet of land and represents an investment of $1 million. According to the company, the new facility will meet or exceed all standards and regulations for fire prevention and hazardous materials handling, and it will surpass all required safety measures to prevent any environmental spills. The move into the new plant is scheduled to start in November 2015.

An expansion of the warehouse is already scheduled for spring 2016 or earlier following a planned business acquisition.

“We had been searching for a while for the best place to establish our factory,” said Sébastien Plourde, President of Distributions J. Des Serres inc. “The vitality of Granby and its industrial park, plus its proximity to Highway 10, contributed to our choice of the site.”

Founded in 1979, Distributions J. Des Serres distributed its Super Remover brand on a small scale until 2003, when Plourde bought the company. A re-organization and massive investment in marketing and advertising have contributed to Super Remover’s increased brand awareness and the company’s rapid expansion. Today, the company claims to be the largest paint stripper manufacturer in the country, with its products found in nearly every hardware store in Canada.

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Conference Spotlight: Tony Steier on FCL’s strength and new programs

TORONTO — The enduring power of the co-operative movement is well expressed through the success of Federated Co-operatives Ltd. FCL is the second-largest company in Saskatchewan, and the top non-financial co-op in Canada. Much of FCL’s growing revenue comes from crop supplies, feed, and petroleum, but FCL’s presence in our industry is still extensive, with 235 owner-member retail co-operatives from British Columbia to Northwestern Ontario. FCL also supplies independent members on a fill-in basis, through its ValuMaster banner division.

Those hardware and building supply outlets account for more than half a billion dollars in sales annually. And they’ve been getting a facelift in recent years, with new merchandising and award-winning store design concepts to keep them competitive. To help understand the full scope of FCL’s size and power, Tony Steier, Home and Building Supplies Director for FCL, will speak at the 19th Annual Hardlines Conference, October 22-23 in Toronto.

Learn how the co-op model is providing an important growth vector for the hardware/home improvement industry. Click here to find out more about Steier and his presentation, and about the 19th Annual Hardlines Conference, October 22-23 at the Sheraton Toronto Airport Hotel & Conference Centre.

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Classified Ads

Renin (RedefiningaNdINnovating) is an innovative manufacturer of door systems and hardware for door manufacturers and fabricators. Renin also manufactures and distributes sliding bypass and bifold closet doors, room dividers, fabricated glass and decorative mirrors to the residential construction and remodeling markets. With a recent ownership change, the mandate is to build both strategy and leadership to continue their growth. Wolf Gugler Executive Search has been retained to search out qualified candidates for the following positions:

Director of Sales

Manage the sales execution process and strengthen the current business relationships with assigned accounts such as Home Depot, Lowe’s and Home Hardware nationwide. Responsible for new account acquisitions and selling Renin branded goods to those accounts.

• Work hand in hand with the senior management, especially with the Vice President Sales and Marketing and the Marketing Team, to make sure that the e fforts are being well directed.
• D irect reports include Account Manager s; train, develop and add to headcount as deemed necessary.
• Development of sales, merchandising and assortment planning to assigned accounts.
• Align business plan to achieve budgets while creating and implement ing strategies that help the business grow and surpass sales targets.
• Prepare key account sales plans and account profiles and maintain detailed account management profiles with a thorough understanding of all decision-makers and business strategies.
• Develop and foster relationships with Merchants, M.A.s and associated support staff.
• Build and maintain a ctive market research, analyze trends and develop strategies a ccording ly .
• M anage budgets and sales goals and w ork to achieve monthly, quarterly and annual targets based on corporate sales objectives.
• Maintain complete competitive files including regular ‘comp’ shops.
• Develop new listing items and product demand forecast models.

Qualifications : ten years’ success in a sales management role in the building materials/ home renovation industry. Strong leadership skills including adaptability, creativity, forecasting and budgeting and outstanding customer focus. You may be based in Canada or the US for this role.

To apply, click this link or apply online on the Opportunities page of our web site, www.wolfgugler.com.

Director of Marketing

Based in the Brampton corporate office, this new role will be hired after the Director, Sales. The full position responsibilities and qualifications are posted on our web site Opportunities page.

To apply for this role click here or apply online on the Opportunities page at www.wolfgugler.com.

Wolf Gugler Executive Search, 888-848-3006. Offices in Canada and the U.S. www.wolfgugler.com

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