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
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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
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- 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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