September 22, 2014 Volume

xx, #35

“No great cause is ever lost or won, the battle must always be renewed, and the creed must always be restated.” — John Buchan (first Baron Tweedsmuir, Scottish novelist, historian and 15th Governor General of Canada, 1875-1940)

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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.

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Chalifour’s new Western DC will carry some hardware

SURREY, B.C. — Chalifour Canada held the grand opening last week for its recently relocated West Coast distribution centre. The facility, still in Surrey, B.C., serves Western TIM-BR MART members and other independents with lumber and building materials and a select assortment of hardware.

Chalifour Canada Ltd. is the hardware distribution business owned by TIM-BR MART Group. The new DC was up and running at the end of May.

To more effectively tie in with Chalifour’s main distribution centre in London, Ont., the new, smaller Surrey facility has cross-dock functionality designed to speed up delivery times to dealers and make deliveries of hardware products from London more seamless. With the adoption of a cross-dock system, Chalifour has re-allocated much of its hardware, including builders’ hardware, from Surrey to London. According to the company, everyday hardware products that essentially represent 95% of members’ sales will still be stored in the Surrey DC.

“Our hardware distribution out west has now been consolidated into Chalifour’s London warehouse, which will allow us to offer our members a hardware product selection of more than 35,000 SKUs,” says Chalifour’s general manager, Bret Walters.

Overall, says the company, “hardware product availability will remain the same.”

Western dealers had been concerned by an earlier announcement that all hardware distribution would be moved out of the Surrey DC and into London. Chalifour soon reversed its stand, assuring dealers it would maintain an inventory of hardware in the new Surrey DC. The cross-dock function is aimed at keeping a timely flow of product to Western dealers, even for hardware products coming out of London.

“The Surrey facility is more than just a warehouse; it’s an important hub for our Western members,” Walters adds.

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Home Depot adds security, but Canadians must wait until 2015

ATLANTA — The Home Depot has confirmed that the malware used to attack its customer database has been eliminated from its U.S. and Canadian networks. The company has completed a major payment security project that provides enhanced encryption of payment data at point of sale in the company’s U.S. stores, offering added protection for customers.

Canadian customers, however, will have to wait until early 2015 for the new encryption. However, the company notes that its stores here are already enabled with EMV “Chip and PIN” technology, which is already the industry standard, replacing magnetic stripe technology in older credit and debit cards.

The cyber-attack is estimated to have put payment card information at risk for approximately 56 million payment cards. However, the company says it could find no evidence that debit PIN numbers were compromised or that the breach affected stores in Mexico, or customers who shopped online in either Canada or the U.S.

The investigation into a possible breach began on the morning of September 2, after Home Depot received reports from its banking partners and law enforcement that criminals may have breached its systems. Since then, Home Depot’s IT security team “has been working around the clock with leading IT security firms, its banking partners and the Secret Service to rapidly gather facts, resolve the problem and provide information to customers,” the company said in a release.

Home Depot found out that criminals used unique, custom-built malware to evade detection. The malware had not been seen previously in other attacks, according to Home Depot’s security partners. The malware is believed to have been present between April and September 2014.

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Conference Spotlight: Vision Critical Thinking for your business

WORLD HQ, Toronto — The 19th annual Hardlines Conference is fast approaching on October 22 and 23. And we’re delighted to have Donald Cooper back with us again to kick off the event.

Over the past seven years Donald has helped hundreds of businesses around the world move from a vague aspirational vision to a specific, clear and measurable one that states what the business commits to become to be more profitable and responsible.

“In my work we help businesses create what we call an operational vision statement,” Donald says. “It consists of six points on one piece of paper and it gets updated every year, so we’re always looking three to five years ahead. It will lead to specific action and will create commitment, urgency, and accountability.”

Donald Cooper doesn’t talk in vague generalities or offer empty motivational nuggets. He outlines a specific process that businesses can follow to create and implement this operational vision. “We have a complete set of Implementation tools to guide businesses in making this happen that helps businesses determine where they are now, what needs fixing, and who in their organization gets it.”

If you want to improve clarity, commitment and accountability at every level of your business, don’t miss this brilliant session. (Click here for more info about the Hardlines Conference, October 22-23 at the Sheraton Toronto Airport Hotel & Conference Centre.)

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RONA CEO says timing is right for adding Ace banner

BOUCHERVILLE, Que. — RONA’s recent announcement that it will take over the licensing of the Ace Hardware brand in Canada is intended to add another option for independents in this country—one that fits perfectly with the company’s overall recruitment strategy, says RONA’s chief officer.

The Ace name will be offered alongside the RONA and TRU banners, and management of the program will be handled largely out of RONA’s TruServ Canada distribution business in Winnipeg.

According to Robert Sawyer, president and CEO of RONA, during a second-quarter analysts’ call last month, converting those dealers will be a challenge. “We need to go one-on-one to make sure that these Ace independent dealers pair with the Ace brand.”

Currently, TruServ serves about 125 TRU bannered stores across the country, mainly outside of Quebec, while the RONA name remains strongest within that province. In addition, the largest number of Ace-branded stores is within Quebec, mainly as members of TIM-BR MART Group that had formerly carried the Pro name.

Sawyer also hinted that, over time, Ace would become the dominant brand outside of the RONA network. “Going forward, I think it’s going to be an opportunity for us to consolidate the true banner under the Ace banner.”

In terms of distribution capacity, RONA’s existing infrastructure will be adequate to handle Ace products. RONA is especially interested in Ace’s controlled brands that could be introduced to its dealer network.

Sawyer said that the addition of Ace ties in well with his company’s renewed efforts to recruit independent dealers, after spending the first year and a half of his tenure putting RONA’s corporate house in order.

“Now we’re moving to a regular mode of business and we will be recruiting. I would not say we want to recruit for the purpose of recruiting; we will recruit in the areas where we think we should be recruiting and with the quality of merchant we think should be there in our banner. So [having] Ace is perfect timing for the team to start to recruit.”

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Ace expands partnership with eBay to drive online sales

KING OF PRUSSIA, Pa. — eBay Enterprise has expanded its partnership with Ace Hardware, using a new omni-channel initiative called eBay Enterprise In-Store Pickup.

Ace selected eBay Enterprise, the division of eBay that works with commercial customers, to enhance its omni-channel capabilities as the company ramps up its efforts to stay competitive in the world of online commerce.

Ace and eBay Enterprise partnered during the summer of 2013 to pilot an in-store pickup program. Its initial implementation included 36 stores and has been adding more than 50 stores per month since then. By the end of July, with more than 500 stores enabled with eBay Enterprise In-Store Pickup, Ace has realized an average lift of 18-20% in its e-commerce sales. Furthermore, Ace has seen growth in overall sales and new customers.

eBay Enterprise has in fact been working with Ace since 2003, providing the co-op home improvement retailer with an e-commerce platform that includes marketing, drop-ship, fulfillment, and customer service.

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Classified Ads

Fusion Products Limited

Position: Inside Sales Support Associate

Fusion Products Ltd. is a leading supplier of solar garden lighting to the Canadian marketplace, with head office in Mississauga, Ontario. This candidate will focus on Home Improvement retailers in specific regions to promote our products, develop new business, support agents, provide product knowledge to retail associates and work industry trade shows. Bilingual (French/English) and experience in the hardware industry would be an asset. Competitive compensation package offered.

To apply for this exciting employment opportunity, please send your resume and cover letter to: zaf@fusionproducts.ca

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At CGC Inc. we go the distance to provide The Better Way. Delivering building solutions for customers worldwide is our goal. Relationships are our foundation. Integrity, Dependability and Innovation are the standards by which we live.

CGC Inc., a wholly owned subsidiary of USG Corp., is a leading marketer, manufacturer and distributor of gypsum wallboard products, interior finishing material and suspended acoustical ceilings. With locations around the world, CGC and USG have the resources, plants, products and people to build walls, ceilings and careers.

We are currently seeking to fill the opening of: Manager, Technical Solutions and Quality.

Qualifications:

• Minimum 10 years of experience in building science, engineering, architecture or related field
• Post-secondary education in building science, engineering, architecture or a construction related discipline. Designation as a P.Eng., C.E.T., or C.T.R preferred
• In-depth knowledge of building materials, constructions processes, cladding, and roof systems

  Valid driver’s license and clean driving record

  Excellent communication skills, both verbal and written.

• Excellent public speaking skills to present professionally to groups of all sizes.
• Bilingual – English / French an asset
• Overnight travel required up to 25%

This challenging position offers a competitive compensation package, comprehensive benefits package, a company auto and the potential for an annual bonus.

Interested applicants may find out more and apply by clicking here.

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September 15, 2014 Volume

xx, #34

“It is better to spend money like there’s no tomorrow than to spend tonight like there’s no money.” —P.J. O’Rourke (American journalist, author and political satirist, 1947- )

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THE HARDLINES WORLD HEADQUARTERS HAS MOVED!

We just moved out of our office at 360 Dupont over the weekend. 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.

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Canadian Tire rolls out loyalty program nationally

Allan MacDonald, COO of Canadian Tire, presents the retailer’s online loyalty program, “e-Canadian Tire Money,” at a press conference in Toronto.

TORONTO — After testing a loyalty program for more than two years in Nova Scotia, Canadian Tire has finally announced its intention to roll out the program nationally.

Canadian Tire has long been a pioneer of loyalty programs, introducing its Canadian Tire “money” in 1958 as a way to keep customers coming back to its stores. Now, the program is moving online, complete with its own app that lets customers collect points. The program will launch officially in Nova Scotia on October 10, then roll out nationally on October 28.

The digital rewards program will complement paper Canadian Tire money, which will remain in circulation. Canadian Tire has even launched its own mobile app to enable customers to collect, redeem, and manage their Canadian Tire money. In turn, the giant retailer hopes to start tracking the shopping habits of its customers, to personalize promotions and communications.

With the new system, customers can collect the e-Canadian Tire money electronically on qualifying purchases in stores—including Mark’s, Sport Chek, PartSource, and L’Equipeur—as well as online and at participating gas bars. When purchases are made with a Canadian Tire Options MasterCard, customers can collect 10 times the amount of e-Canadian Tire money.

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Hot retail trends will be presented at Hardlines Conference

WORLD HEADQUARTERS, Toronto — The latest merchandising trends is always the topic most requested by our delegates at the annual Hardlines Conference. This year’s conference speakers will deliver that—in spades—including no less than the association that follows the latest trends worldwide:

Retail Trends that Inspire: A Global Tour. Jo Rossman leads programs at the Retail & Design Center at the Association for Retail Environments and leads the association’s DREAM Team, a think tank of retail design stars.

Meeting the Challenge of Today’s Omni-Channel Consumer. Robert Howard, partner with Kurt Salmon, has a great insight into the online and in-store retail customer experience, and he delivers that insight with energy, insight, and humour. This session is guaranteed to help you see more clearly the relationship between bricks and mortar and the burgeoning world of e-commerce. Robert will find connections within today’s retail environment that are guaranteed to surprise and edify you.

An Update on Canada’s Changing Housing Market. Ted Tsiakopoulos, Regional Economist for Canada Mortgage and Housing Corporation, is our go-to guy for housing data. He will present the latest numbers on Canada’s housing market and the trends influencing those numbers. Ted’s information is always fresh—and his style is lively and accessible. We’re delighted to have him back at this year’s Conference!

Vision Critical: An interactive workshop. Donald Cooper, of Donald Cooper Corp., will conduct a special intensive workshop with our conference delegates. Why should you attend? Donald transforms businesses–and business people. He will challenge you about your notions of customer service and your own ability to achieve excellence in your job. Guaranteed to be an inspiring and energizing start to the Conference!

We look forward to Donald and all our speakers at the 19th Annual Hardlines Conference, October 22-23 at the Sheraton Toronto Airport Hotel & Conference Centre, 801 Dixon Road, Toronto. Click here for full details and to register now!

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Canada included in Home Depot security breach

ATLANTA — A suspected security breach of Home Depot’s customer database has been confirmed by the company, after an investigation of its payment data systems. According to a message on its website, the breach could “potentially impact any customer that has used their payment card at our U.S. and Canadian stores, from April forward.” The breach does not appear to have affected stores in Mexico or customers who shopped online at HomeDepot.com.

The message goes on to apologize “for the frustration and anxiety this causes our customers.”

Home Depot’s IT team has been working “round the clock” since the breach took place to counter the malware and protect customer data. The company insists that customers who are victims of any fraudulent charges to their accounts won’t be liable. In addition, the retailer is offering free identity protection services, including credit monitoring, to any customer who has shopped at a Home Depot store from April on.

Responding to the increasing threat of cyber-attacks on the retail industry, Home Depot previously confirmed it will roll out EMV “Chip and PIN” to all U.S. stores by the end of this year.

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Canadian Tire Showroom features first drive-through

TORONTO —Canadian Tire opened a one-of-a-kind retail “showroom” store in the spring, at its Laird and Eglinton location in Toronto, that will provide an opportunity to showcase seasonal assortments.

The 20,000-square-foot showroom here was born of necessity; the existing store across the parking lot was “bursting at the seams,” says David Hicks, senior vice-president, store operations and dealer relations for Canadian Tire. But he also notes that the model is being scrutinized by head office, “to see if it can be used in other stores.” The focus is on seasonal products. In mid-August, it was filled with patio sets, log splitters, and barbecues. By mid-October, the space will be filled with Christmas products and fireplace accessories.

While the showroom is being viewed by head office as a one-off, one aspect of this space is definitely getting a lot of attention. It has a drive-through pick-up area. “I think this drive-through is something we’ve learned from—expect to see it in other environments,” Hicks adds.

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Giant outdoor living show draws 100-plus countries

COLOGNE, Germany — Visitors from around the world gathered here recently for spoga+gafa, the world’s largest lawn, garden, and outdoor living trade fair. And the numbers show it was a popular event, with 36,000 attendees from more than 100 counties who came to see trends, technology, and more in the lawn and garden and outdoor living.

The show consisted of five product categories: garden creation (tools, plants and flowers), garden living (furniture, décor and grills), garden care (machines and tools), garden basic (inexpensive garden products), and garden unique (premium garden furniture).

Trends in grilling included portable grills, which are easy to pack up for camping trips or tailgating, and grills that are multifunctional, with separate burners that allow users to cook their meat or fish and vegetables at the same time.

And when it comes to outdoor living and gardening, colour is everything. While neutrals remain popular, many displays at spoga+gafa showcased a variety of bright colours, which allow consumers to customize their décor by selecting what best fits in their colour palette. Purple is an especially popular colour this year, available in both brighter and softer shades.

As for materials, wicker continues to be popular, as does plastic and aluminum. Consumers are also interested in furniture that multitasks, such as a chair that features a tray for food.

Technology also has its place: high-tech products, such as a wheelbarrow with a small motor that that makes it easier to carry loads up and down hills, and the flowerpot that contains an indicator keeping track of when a plant needs more water, are becoming more popular.

spoga+gafa 2015 will be held August 30-September 1 in Cologne. For more information, visit spogagafa.com .

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Classified Ads

Fusion Products Limited

Position: Inside Sales Support Associate

Fusion Products Ltd. is a leading supplier of solar garden lighting to the Canadian marketplace, with head office in Mississauga, Ontario. This candidate will focus on Home Improvement retailers in specific regions to promote our products, develop new business, support agents, provide product knowledge to retail associates and work industry trade shows. Bilingual (French/English) and experience in the hardware industry would be an asset. Competitive compensation package offered.

To apply for this exciting employment opportunity, please send your resume and cover letter to: zaf@fusionproducts.ca

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At CGC Inc. we go the distance to provide The Better Way. Delivering building solutions for customers worldwide is our goal. Relationships are our foundation. Integrity, Dependability and Innovation are the standards by which we live.

CGC Inc., a wholly owned subsidiary of USG Corp., is a leading marketer, manufacturer and distributor of gypsum wallboard products, interior finishing material and suspended acoustical ceilings. With locations around the world, CGC and USG have the resources, plants, products and people to build walls, ceilings and careers.

We are currently seeking to fill the opening of: Manager, Technical Solutions and Quality.

Qualifications:

• Minimum 10 years of experience in building science, engineering, architecture or related field
• Post-secondary education in building science, engineering, architecture or a construction related discipline. Designation as a P.Eng., C.E.T., or C.T.R preferred
• In-depth knowledge of building materials, constructions processes, cladding, and roof systems

  Valid driver’s license and clean driving record

  Excellent communication skills, both verbal and written.

• Excellent public speaking skills to present professionally to groups of all sizes.
• Bilingual – English / French an asset
• Overnight travel required up to 25%

This challenging position offers a competitive compensation package, comprehensive benefits package, a company auto and the potential for an annual bonus.

Interested applicants may find out more and apply by clicking here.

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Director, Retail Sales- Schlage

Leading a national team of sales professionals, the Director of Retail Sales, controls and directs all activities of the retail sales organization, ensures development of retail programmes to attain planned sales, productivity and budget compliance.  Driving profitable growth through best in class category leadership, account management and flawless execution against our strategic plan

• Directs the domestic retail sales activities including, Big Box, LBM and e-Commerce
• Exercises management and sales initiatives which ensure that a competitive position is maintained within the market.
• Directs sales planning and provides input to market research activities.
• Reviews sales and forecasts.
• Makes recommendations for new products and changes in existing products

Experience

• Minimum 10 years related experience in retail or consumer packaged goods environment Big Box DYI preferred
• 5-10 years’ of progressive sales experience
• Minimum of 5 years’ experience in a senior position leading a sales team
• University degree preferred or an equivalent degree in a field of study related to the position

For more information about this position visit http://careers.allegion.com/ for more details.

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September 8, 2014 Volume

xx, #33

“I’ve had so much plastic surgery, when I die they will donate my body to Tupperware.” —Joan Rivers (American comedian who passed away last week at the age of 81)

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Young Leaders will converge on this year’s Hardlines Conference

WORLD HEADQUARTERS, Toronto — The roster for the 2014 Hardlines Conference has been confirmed, with a world-class lineup of retail and industry speakers. But an important addition to this year’s industry summit is a panel of young leaders from within the home improvement industry.

Working in partnership with the Western Retail Lumber Association and its NexGEN program for young leaders, and with the support of Canada’s leading retail groups, the conference will bring together some of the industry’s brightest and best. They are: Marc-André Dignard, project director, operations​ for RONA inc.; Kim Ytsma, owner of Alliston Home Hardware in Alliston, Ont.—and the 2013 recipient of the NRHA’s Young Retailer of the Year Award; Eric Palmer, Canadian sales operations manager for Jeld-Wen, based in Winnipeg ; and Joel Seibert, operations manager for Mountain View Building Materials in Calgary.

These young leaders will be just one part of a rich two-day agenda that will feature top retail experts, industry veterans, and trends gurus.

Retail leaders will be front and centre on the podium. Tony Steier, Home and Building Supplies Director for Federated Co-operatives Limited, heads up the hardware and home improvement business for this giant Western co-op. In recent years, the company has been beefing up its hardware business, which is worth more than half a billion dollars at retail.

One of the giants of retail is Canadian Tire. We are proud to welcome Greg Hicks, senior vice president of merchandising for Canadian Tire Retail. Robert Moschorak, president of Ace International, will talk about Ace’s presence internationally and the potential for further involvement in the Canadian market. At the other end of the spectrum, we will hear from an independent dealer, as Vicki Hagel, owner of Cook Street Castle in Victoria, B.C.; tells her story.

On the e-commerce front, our latest speaker is Mark Thomas, co-founder of Quinju.com. This exciting new online platform offers a fascinating opportunity for vendors to showcase their products and know-how to consumers.

Trends leaders speaking at the Conference are: Ted Tsiakopoulos, a leading economist from Canada Mortgage and Housing Corporation; Jo Rossman (right) from the Association for Retail Environments; and Robert Howard, Partner at retail consultancy Kurt Salmon.

Inspirational leaders will also be featured. This year’s “Profiles in Leadership” Series is proud to feature Paul Beeston, president and CEO of the Toronto Blue Jays. And the conference kicks off on Day One with an intensive, hands-on workshop by Donald Cooper, president of The Donald Cooper Corporation.

The 19th Annual Hardlines Conference runs October 22-23 at the Sheraton Toronto Airport Hotel and Conference Centre. For more information and to register now, click here.

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RONA show has focus on buying for independent dealers

MONTREAL — The show held here last week by RONA continues to establish a renewed commitment to its independent dealer base.

The show marks the first time that RONA has mounted a true buying show; in the past the shows have presented the latest products and merchandising on behalf of its corporate stores. This time, 250 vendors participated in a more conventional way, with booths of their own offering a wider range of products.

According to Luc Rodier, SVP of RONA, the show enjoyed a strong turnout, with 90% of its dealer base in Quebec attending, and 80% nationally.

The show ties in with a commitment internally to re-focus RONA on its wholesaler roots, with a team in place that offers products, pricing, and support tailored for independent and affiliate dealers, as well as corporately owned proximity stores.

The main focus of the show was on seasonal, but vendors from across the spectrum of product categories were present, including a broader representation by LBM vendors than at past RONA shows. The show also featured a new product section, merchandising ideas, and “power buys.” New product categories included a range of pet foods and a new confectionery program.

While some LBM vendors felt the timing of the show was too early for their spring bookings, the overall response by exhibitors was positive, with a buzz at this show that was lacking at RONA’s last show.

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Yves Gagnon steps down as president of BMR

BOUCHERVILLE, Que. — Effective September 2, Yves Gagnon has stepped down as president of BMR. However, he remains on as chairman of the board. Pascal Houle, who came over from La Coop fédérée in March 2014 as executive vice president of BMR, is currently in charge.

Two members of Gagnon’s executive team, senior vice president Jean Falardeau and VP finance Jean St-Maurice, have also retired.

Gagnon has shepherded BMR through some dramatic changes over the years, during which time the buying group grew to more than 185 dealers. Those changes included the addition of a full-line distribution business that serves its dealers with hardware and building materials and expansion of the membership beyond the Quebec border. And at the end of last year, BMR completed a merger with La Coop fédérée, which took a 20% ownership stake in BMR.

However, Gagnon had health problems: two summers ago, he was stricken by heart troubles. Despite this setback he continued to lead the company. Gagnon is still the owner of Groupe Yves Gagnon, a chain of BMR stores in Quebec that is run by his daughter, Geneviève Gagnon.

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Canadians rock in the Windy City during Orgill Market

Shown: Michael McLarney from HARDLINES; James Jones of Castle Building Centres; Beverly Allen from HARDLINES; Mike Nicol from The Mibro Group; and Steve Finlay from Imperial Manufacturing.

CHICAGO — More than 100 Canadians from a range of banners attended the Orgill dealer market in Chicago last month. A reception for the Canucks at Reggies Bar brought them together off the show floor for socializing and some live blues music. The event was sponsored by Imperial Manufacturing and The Mibro Group.

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RONA creates team to support Ace Hardware banner

BOUCHERVILLE, Que. — Following its recent master license agreement with Ace Hardware, RONA has put together a team to support Ace products and programs to dealers in Canada.

The team is being led by Bill Morrison, president of TruServ Canada, who leads the team dedicated to growing the Ace brand in Canada and to improving RONA’s offering to independent dealers across Canada by strengthening its portfolio of banners.

Martin Provencher has been named vice president, business development. He was previously vice president, services and development at RONA. In his new role, he will lead the development of the new license agreement and introduce new strategies to improve dealer experiences and maximize growth of RONA’s independent dealers. He reports to Morrison.

RONA has recruited Josée Desrosiers from TIM-BR MART Group to serve as national director of business development, reporting to Provencher. She was previously national brand manager at TIM-BR MART. Previously, she held the post of regional business development director for Ace.

Also joining the team: Serge Vézina (left) (who is making his return to RONA) and Mark Blouin. As business development directors, they will focus on serving and growing the Ace brand in Quebec and Atlantic Canada. Tony Perillo joins the team as the director of business development in Western Canada., Guy Lichter, director of sales, operations & customer relations, along with a team of district managers, will serve Ace in Ontario and Western Canada.

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Classified Ads

At CGC Inc. we go the distance to provide The Better Way. Delivering building solutions for customers worldwide is our goal. Relationships are our foundation. Integrity, Dependability and Innovation are the standards by which we live.

CGC Inc., a wholly owned subsidiary of USG Corp., is a leading marketer, manufacturer and distributor of gypsum wallboard products, interior finishing material and suspended acoustical ceilings. With locations around the world, CGC and USG have the resources, plants, products and people to build walls, ceilings and careers.

We are currently seeking to fill the opening of: Manager, Technical Solutions and Quality.

Qualifications:

• Minimum 10 years of experience in building science, engineering, architecture or related field
• Post-secondary education in building science, engineering, architecture or a construction related discipline. Designation as a P.Eng., C.E.T., or C.T.R preferred
• In-depth knowledge of building materials, constructions processes, cladding, and roof systemsValid driver’s license and clean driving record

  Excellent communication skills, both verbal and written.

• Excellent public speaking skills to present professionally to groups of all sizes.
• Bilingual – English / French an asset
• Overnight travel required up to 25%

This challenging position offers a competitive compensation package, comprehensive benefits package, a company auto and the potential for an annual bonus.

Interested applicants may find out more and apply by clicking here.

back to top

______________________________________________________________________

Director, Retail Sales- Schlage

Leading a national team of sales professionals, the Director of Retail Sales, controls and directs all activities of the retail sales organization, ensures development of retail programmes to attain planned sales, productivity and budget compliance.  Driving profitable growth through best in class category leadership, account management and flawless execution against our strategic plan

• Directs the domestic retail sales activities including, Big Box, LBM and e-Commerce
• Exercises management and sales initiatives which ensure that a competitive position is maintained within the market.
• Directs sales planning and provides input to market research activities.
• Reviews sales and forecasts.
• Makes recommendations for new products and changes in existing products

Experience

• Minimum 10 years related experience in retail or consumer packaged goods environment Big Box DYI preferred
• 5-10 years’ of progressive sales experience
• Minimum of 5 years’ experience in a senior position leading a sales team
• University degree preferred or an equivalent degree in a field of study related to the position

For more information about this position visit http://careers.allegion.com/ for more details.

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September 1, 2014 Volume

xx, #32

“Success is going from failure to failure without loss of enthusiasm.” —Winston Churchill (British politician, and prime minister, military officer and author, 1874-1965)

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RONA turns around losses in second quarter

BOUCHERVILLE, Que. — RONA reported net income of $42 million in the second quarter, compared to a net loss of $144.7 million during the same period last year.

Second quarter revenues stood at $1.19 billion in 2014 versus $1.25 billion in 2013. The $55.5 million or 4.4% decline is a result of a $37.4 million or 4.2% decrease in retail segment and an $18 million decrease or 5.2% in the distribution segment.

Consolidated revenues from continuing operations amounted to $1.19 billion, down 4.4% from $1.25 billion for the second quarter of 2013. This decrease primarily reflects the closure of underperforming stores, a late spring in Quebec and Ontario which had an adverse impact on sales in the first half of the quarter, coupled with a decline in housing starts in Quebec.

Same-store sales in the retail segment were down 0.7%, narrowing the margin from negative 3.4% same-store sales in Q1. This latest quarter also marks the first time since 2010 that the company has reported positive same-store sales for its corporate stores across the country. This performance was driven by the strength of the Western Canadian market as well as the repositioning of the Totem banner in Alberta and the refurbishment of the Réno-Dépôt chain in Quebec.

In terms of expansion, the company intends to grow in a number of ways in the year ahead. That will include enlarging or reallocating existing stores and opening new stores, as the opportunity arises.

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U.S. Big box giants see Q2 sales and profits climb

MOORESVILLE, N.C. & ATLANTA — Lowe’s Cos. has reported net earnings of $1.04 billion for the second quarter, an increase of 10.4% over the same period a year ago. Sales increased 5.7% to $16.6 billion, from $15.7 billion in the second quarter of 2013, and year-to-date sales were $30.0 billion, up 4.2% over the same period a year ago.

Comparable sales increased 4.4% and year-to-date comps are up 2.8%. In Canada, Lowe’s delivered its fifth consecutive quarter of double-digit comps.

Home Depot also reported strong Q2 results, with profits up a healthy 14% on sales of $23.8 billion, a 5.7% increase. Comparable store sales were slightly ahead of Lowe’s, up 5.8%, and comp sales for U.S. stores were positive 6.4%. Net earnings were $2.1 billion, or $1.52 per diluted share, compared with $1.8 billion, or $1.24 per diluted share, a year earlier.

The company attributed improved weather conditions to increased sales of lawn and garden products, while appliance sales were also strong in the second quarter. Sales over $900, of washers, dryers, and water heaters, which account for 20% of Home Depot’s sales, were up by 8%.

Home Depot’s Canadian business had positive comps for the 11th consecutive quarter.

Lowe’s outlook for fiscal 2014 anticipates an increase in total sales of about 4.5%. Comparable sales are expected to increase approximately 3.5%. The company says it expects to open about 15 stores this year. Home Depot anticipates a slightly stronger year, with a forecasted sales increase of 4.8%.

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Orgill’s latest show draws Canucks despite timing

CHICAGO — Orgill’s fall buying show was held right in the middle of the busiest trading time for most dealers, but that didn’t stop about 100 Canadian independents from heading to the Windy City to attend the event.

As ever, the lion’s share of dealers came from Castle Building Centres, the buying group that Orgill formed its first agreement with on arriving in Canada. But other banners were represented, as well, reflecting the current turbulence in the Canadian market.

James Jones, VP marketing for Castle, says his dealers had their best July ever, with business catching up for them after a slow start to the year. Despite the busy summer, he notes that 95 Castle dealers came down to Chicago for the show, admitting, “It’s a tough time of year to get dealers out of their stores.”

Held at Chicago’s McCormick Place, the Dealer Market spanned 865,000 square feet, making it the largest show floor in Orgill’s history. In addition to its typical market-only deals, educational seminar lineup and new products, Orgill used the market to showcase category-specific displays for hand and power tools, winter and wild bird assortments, spring products, and popular MRO solutions.

One highlight of the show was “One Stop Hardware,” one of three model stores set up right on the show floor. This one, brand new for this show, featured a full assortment merchandised for stores with limited square footage. The store filled only 4,700 square feet, but used a number of space saving systems, such as pull-out drawers (shown here), sliding shelves, wing panels on endcaps, and overlapping displays. “If you took all of this product and merchandised it in a traditional way, it would take up 8,000 square feet,” says Jim Parker, a field marketing manager for Orgill.

“A good hardware store you need 8,000-10,000 square feet, but many dealers just don’t have the space,” he adds, pointing out some of the features of the model store. “Note the 84-inch height on the gondolas, so you can use the outer walls for stock and free up the floor for retail.”

Endcaps are only two feet wide to leave room for wings to display more merchandise. “It can be done,” Parker concludes.

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Canadian Tire sales up, Medline takes CEO role

TORONTO — Canadian Tire Corp. reported consolidated revenue for the second quarter of $3.2 billion, up 4.8% from the same time last year. Retail sales for the quarter were also up 4.8%, to $3.7 billion.

Retail sales at Canadian Tire-bannered stores were up 3.4% and same store sales increased 2.8%. The company reported “solid sales across key seasonal and non-seasonal categories.” R etail segment revenue increased 4.7% or $129.9 million to $2.9 billion in the quarter.

At the same time, the company has announced that Michael Medline has been named president and CEO, effective December 1. He replaces Stephen Wetmore, who is stepping aside, but will remain on the board in a newly created position as deputy chairman.

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James Mumby sells Dynamic to U.S. distributor

SPARTANBURG, S.C. — The Merit Distribution Group will acquire Dynamic Paint Products, a 40-year-old family-owned distributor and manufacturer of paint-related products based in Toronto. Merit is the corporation that includes Lancaster, a full-line paint sundries distributor. It currently operates in the U.S., Mexico, Caribbean Islands, Central America, and South America.

Terms of the deal were not disclosed.

Dynamic, which was known for years as Mumby and Associates, has grown into a national manufacturer and distributor of paint products and accessories. It has also expanded its sales internationally. The acquisition gives Merit a foothold in Canada. Dynamic will operate as a wholly owned subsidiary of Merit and president James Mumby will continue to oversee Dynamic’s Canadian and international business.

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Classified Ads

At CGC Inc. we go the distance to provide The Better Way. Delivering building solutions for customers worldwide is our goal. Relationships are our foundation. Integrity, Dependability and Innovation are the standards by which we live.

CGC Inc., a wholly owned subsidiary of USG Corp., is a leading marketer, manufacturer and distributor of gypsum wallboard products, interior finishing material and suspended acoustical ceilings. With locations around the world, CGC and USG have the resources, plants, products and people to build walls, ceilings and careers.

We are currently seeking to fill the opening of: Manager, Technical Solutions and Quality.

Qualifications:

• Minimum 10 years of experience in building science, engineering, architecture or related field
• Post-secondary education in building science, engineering, architecture or a construction related discipline. Designation as a P.Eng., C.E.T., or C.T.R preferred
• In-depth knowledge of building materials, constructions processes, cladding, and roof systems

  Valid driver’s license and clean driving record

  Excellent communication skills, both verbal and written.

• Excellent public speaking skills to present professionally to groups of all sizes.
• Bilingual – English / French an asset
• Overnight travel required up to 25%

This challenging position offers a competitive compensation package, comprehensive benefits package, a company auto and the potential for an annual bonus.

Interested applicants may find out more and apply by clicking here.

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Director, Retail Sales- Schlage

Leading a national team of sales professionals, the Director of Retail Sales, controls and directs all activities of the retail sales organization, ensures development of retail programmes to attain planned sales, productivity and budget compliance.  Driving profitable growth through best in class category leadership, account management and flawless execution against our strategic plan

• Directs the domestic retail sales activities including, Big Box, LBM and e-Commerce
• Exercises management and sales initiatives which ensure that a competitive position is maintained within the market.
• Directs sales planning and provides input to market research activities.
• Reviews sales and forecasts.
• Makes recommendations for new products and changes in existing products

Experience

• Minimum 10 years related experience in retail or consumer packaged goods environment Big Box DYI preferred
• 5-10 years’ of progressive sales experience
• Minimum of 5 years’ experience in a senior position leading a sales team
• University degree preferred or an equivalent degree in a field of study related to the position

For more information about this position visit http://careers.allegion.com/ for more details.

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National Account Manager

Blount International, Inc. has an exceptional National Account Manager opportunity supporting our global headquarters in Portland, Oregon by representing our products to their assigned customer base within Canada.

This position has the primary responsibility to sell an established consumer goods product line to mass merchants in Canada. This means conducting all marketing functions through the entire sales channel. The job also requires collecting information that will enable the Company to react in a timely manner to competitive actions and market trends. The primary area for this position is in Southern Ontario, Quebec and Atlantic provinces.

RESPONSIBILITIES INCLUDE, BUT ARE NOT LIMTED TO:

• Developing and growing sales opportunities via an increase in sales and market share, while maintaining solid profits; Achieving sales targets and goals
• Calling on national and regional retailers, hardware coops and hardware distributors at their HQ location, as well as supporting those customers via field visits
• Ensuring that top selling products are represented in the retail line
• Reviewing inventory movement and cull the line of slow selling products – replace with faster moving products
• Identifying new products/new program growth opportunities
• Managing the day-to-day account management responsibilities
• Making certain that customer’s website, catalogues, and rental locations product offerings are up to date
• Presenting marketing & advertising programs for all products
• Supporting our negotiated retailer programs in the field by meeting with individual retailers

For more information about this position visit http://www.blount.com Click on the tab Careers and choose Search Careers –Canada.

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August 11, 2014 Volume

xx, #31

“Experience is not what happens to you. It is what you do with what happens to you. —Aldous Huxley (British novelist, essayist and satirist, 1894-1963)

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NO ISSUE OF HARDLINES NEXT WEEK

Summer Publication Schedule: Please note there will be no weekly edition of HARDLINES on August 18 or 25. The World Headquarters will remain open, however, during this time. Our regular weekly publishing schedule will resume September 1.

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BREAKING NEWS: Ace files legal action against TIM-BR MART

SPECIAL REPORT — HARDLINES has learned that Ace Hardware in the U.S. has filed an emergency injunction against its Canadian partner, TIM-BR MART Group, through TIM-BR MART’s parent company, TBM Holdco Ltd.

The injunction centres around the licensing agreement Ace has with TIM-BR MART, which expires August 31. After that date, Ace dealers in Canada will be free to seek other sources of hardware supply and other banner affiliations. (RONA has forged a new deal with Ace, and will represent the banner in Canada effective September 1.) Until that time, TIM-BR MART cannot make any efforts to convert the dealers. The legal action charges that this was not the case.

The injunction further suggests that TIM-BR MART is not acting in good faith, even though many Ace dealers are also members of TIM-BR MART Group. TIM-BR MART has challenged that claim (see next story).

According to the emergency arbitrator, in a letter sent to TIM-BR MART, “TBM will not, directly or indirectly, by any means, solicit, attempt to solicit, induce, or cause, or attempt to solicit, induce or cause any of the [Canadian Ace retail stores] to alter their branding or banner affiliations with Ace.”

But that doesn’t just mean until August 31. What is surprising about the latest development is the fact that Ace’s legal action has imposed a two-year non-compete on TIM-BR MART. “TBM may not solicit the Ace Stores to sell them any home improvement goods competitive with hardware or home improvement goods available from Ace.”

That clause takes direct aim at TIM-BR MART’s own wholesale hardware business, Chalifour Canada, which would be the likely replacement for a source of hardware supply to those Ace dealers. The majority of Ace dealers are also LBM dealers with TIM-BR MART Group and are expected to stay with TIM-BR MART, which supplies the majority of their product needs.

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TIM-BR MART responds to Ace’s emergency order

SPECIAL REPORT — TIM-BR MART Group, through its parent company, TBM Holdco Ltd., is facing legal action from Ace Hardware’s International division. TBM has been charged by its soon-to-be former partner of acting in bad faith as their long-standing licensing agreement winds down at the end of this month. A release by Ace dated August 4 refers to that legal action, saying that TBM has been attempting to switch Ace dealers to an alternative source of hardware supply before the August 31 deadline.

Now, TBM has responded with a statement of its own.

“The Ace press release is misleading,” says Bernie Owens, president of TBM, who issued a release to set the record straight. “Ace sought an emergency order to require TBM to do what we had already said we would do—cooperate to complete the wind-down process as amicably, orderly, and efficiently as possible and maintain the status quo until the main arbitration is heard.”

Owens says the very act of seeking an “emergency” order was a tactic to proclaim that TBM had acted badly. “Our only concern is for all our members,” Owens says. “They are free to carry on with Ace or not. It’s their choice. If any of our members want to team up with Ace’s new partner, RONA, we’ll cooperate. Either way, TBM remains fully committed to serving the interests of all its members.”

While stating its position to act in good faith until the August 31 deadline, the TIM-BR MART release does not mention Ace’s intention to impose a two-year non-compete. This would prevent TIM-BR MART’s own wholesale supplier, Chalifour Canada, from stepping in after the August 31 deadline.

“Looking ahead, I am confident that TIM-BR MART will prevail once we have the opportunity in the near future to fully and accurately state our case,” Owens says.

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IN DEPTH: RONA’s licensing and distribution deals with Ace

HARDLINES EXCLUSIVE — Ace Hardware’s licensing agreement with TIM-BR MART Group won’t end officially until August 31, but RONA area managers are already knocking on the doors of Ace stores in this country offering them “the Ace package.”

And no wonder. RONA has concluded a master license agreement with Ace Hardware, ensuring a continued foothold in this country for the giant Oak Brook, Ill.-based co-op. Behind the scenes at RONA, the undertaking was referred to as “Project Racetrack,” and the area managers were true to the name, coming out of the gate early to knock on doors and present the Ace package.

Ace, which is carried by about 120 stores in Canada, is winding down a long-term licensing deal with TIM-BR MART Group, after both sides cited dissatisfaction with the relationship.

The new, long-term agreement gives RONA the rights to the Ace brand and lets it tap into Ace’s retail operating systems and web portals. But the partnership doesn’t end there. RONA has also signed a long-term distribution agreement with Ace’s International division, giving RONA access to products available through Ace Hardware’s various channels of distribution. These include Ace International’s Shanghai distribution centre, which ships container loads of products to Ace dealers around the world.

The new agreements are seen as yet another way that RONA is bolstering its support for independent dealers, with the addition of one more banner for them to choose from in the marketplace and a wider range of products and programs to choose from.

“This agreement will enable us to improve our offering to small dealers across the country, to leverage our existing distribution infrastructure, and to strengthen our portfolio of banners,” says Robert Sawyer, president and CEO of RONA.

Of the 120 dealers carrying the Ace banner here, and nearly 100 of them are in Quebec. They carry Ace either by itself or in tandem with another banner, usually TIMBER MART, reflecting TIM-BR MART Group’s long-time relationship with Ace.

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RONA will hand Ace portfolio to its Winnipeg team

WINNIPEG — On a North American basis, given the proximity of RONA’s TruServ Canada DC in Winnipeg to Ace’s Chicago-area operations, much of the emphasis on Ace from RONA’s side will come out of the TruServ division.

“This agreement will enable us to improve our offering to small dealers across the country, to leverage our existing distribution infrastructure, and to strengthen our portfolio of banners,” says Robert Sawyer, president and CEO of RONA. He adds that the Ace brand will complement the existing RONA and TRU brands and help with recruitment of dealers in areas of the country where RONA has a limited presence.

While the RONA brand remains strong in its home province of Quebec, and the TRU banner is gaining ground primarily in Western Canada, the addition of Ace can give RONA more traction in Central and Atlantic Canada.

To make the Ace initiative truly national, RONA will also have a team working out of its Boucherville, Que., head office dedicated full-time to the Ace program, in addition to Winnipeg.

According to Luc Rodier, SVP of RONA, about half of the Ace-bannered dealers are strictly hardware stores, giving RONA the opportunity to move in and convince those dealers to switch distributors without interruption to their own store’s brand.

However, many of the dealers outside of Quebec are also building supply dealers, and most of those are TIMBER MART dealers as well. These would likely be less inclined to switch loyalties, especially in light of the fact that TIM-BR MART Group, through its hardware wholesale business Chalifour Canada, has hinted that it’s working on a hardware program of its own, which will be offered to dealers once the August 31 deadline is up.

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BACKGROUND: Ace has a long history in Canada

SPECIAL REPORT — Ace Hardware is the largest co-op home improvement retailer in the U.S., and in the world. Its reach extends to more than 60 countries, but its presence in its neighbour to the north has always been problematic.

Ace’s first attempt to secure a foothold in Canada actually took the form of negotiations back in the 1980s with Cochrane-Dunlop, a full-line hardware wholesaler. Ace even chatted around that time with Macleod-Stedman (which later became TruServ Canada).

It wasn’t until 1992 that a deal was finally struck with LBM distributor CanWel. Tom Longworth, then CEO of CanWel, had a vision that Ace’s hardware products could be fed through CanWel’s 21 distribution centres across the country. However, that deal never really got off the ground for either Ace or CanWel. It did, however, result in a handful of dealers in British Columbia who, to this day, receive products directly from Ace’s U.S. distribution system.

In 1995, Ralph Trott, the pony-tailed, vintage-car driving president of Beaver Lumber at the time, decided to rely on a third-party hardware distributor to supply Beaver’s 155 stores. In a landmark deal, Beaver went with Ace, which took over Beaver’s own hardware distribution facilities in Markham, Ont., near Beaver’s head office, plus a DC in Calgary. Under an aggressive young dealer development team, the Ace banner began to spread across Canada beyond the Beaver business. However, Beaver Lumber was acquired at the end of 1999, depriving Ace of what still amounted to the bulk of its Canadian business.

Rather than pull out, Ace continued to grow its dealer base under Dunc Wilson, who now heads up Home Hardware’s dealer development team. Ace managed to get supply agreements with TIM-BR MART, Castle, Homecare, and AWARD. In the fall of 2001, it even signed a deal to supply hardware to 91 members of the Allroc buying group in Western Canada. However, the business wasn’t enough to keep Ace’s Calgary DC afloat and that facility was shuttered around the same time.

By 2002, Ace had about 120 bannered dealers in Canada, and shipped to another 300 building supply dealers, but that was still not enough to make the company viable. Then, in November of that year, the giant Canadian hardware wholesaler Sodisco-Howden Group bought up Ace Canada and secured the license for the Ace banner in this country.

From there, Ace’s presence in Canada followed the fate of Sodisco-Howden, which was acquired just two years later by CanWel Building Supplies. During that time, CanWel allied with TruServ Canada to create Pro Retail Services, a dealer support network that began tapping into Ace’s newly created International division shipping out of Shanghai.

In the fall of 2010, CanWel Building Supplies sold off its CanWel, Hardware division to TIM-BR MART Group. That buying group renamed the business Chalifour Canada, and continued the licensing arrangement with Ace. That agreement fell apart this summer, with both sides citing dissatisfaction. Insiders suggest that TIM-BR MART’s Ace dealers were dissatisfied with import product coming from the Shanghai DC, while Ace itself was frustrated by the volumes being generated by TIM-BR MART dealers.

Now, with a newly minted agreement with Canada’s largest home improvement retailer, Ace is now part of a wider offering for independent dealers that includes the RONA and TRU banners.

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Imperial’s Norm Caissie acquires Don Park in Toronto

TORONTO — Normand Caissie founder of Richibucto, N.B.-based Imperial Manufacturing, has acquired Don Park Residential Manufacturing, a Toronto-based producer of galvanized duct, pipe, and fitting products for the HVAC market. Don Park had been part of Emco’s takeover of RONA’s commercial division a year ago.

Caissie’s acquisition applies only to the Don Park manufacturing facility in Toronto and does not include the firm’s commercial manufacturing and fire divisions. The company will operate under the name of Don Park Manufacturing Inc.

“This is the biggest acquisition we’ve ever done,” says Mario Caissie, president of Imperial Manufacturing. “But it’s the 19th we’ve made in the past 35 years.” Imperial’s holdings range as far west as Alton, Ill., and as far south as Atlanta, Ga.

Caissie is a well-known New Brunswick businessman in the HVAC industry. He was named Ernest & Young’s 2002 Entrepreneur of the Year (Manufacturing), Conseil Economique du Nouveau-Brunswick’s Entrepreneur of the Year in both 1987 and 1991, Quality Plus Entrepreneur Award recipient in 1992, Université de Moncton’s 2000 Alumnus of the Year, Ernst & Young’s 2001 Entrepreneur of the Year, and the 2010 inductee to the Canadian Hardware and Housewares Manufacturers Association’s Hall of Fame.

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Lowe’s launches rush-delivery service for pros

MOORESVILLE, N.C. — Lowe’s has announced the rollout of ProExpress, an on-demand delivery service to get pros the emergency and last minute supplies they need. However, the service won’t appear in Canada—at least not yet.

ProExpress has actually been up and running since April, with a fleet of light-duty trucks making deliveries directly to business sites. Through the program, Lowe’s has helped pros by fulfilling emergency orders such as smoke detectors to pass an inspection, or shingles to complete a job before a damaging storm.

The ProExpress trucks also regularly visit businesses to restock shelves with cleaning and maintenance supplies.

The ProExpress program is currently available at more than 200 Lowe’s stores across the country and is designed to complement existing store delivery services by providing a resource that is fully dedicated to pro customers. “For pros, time is money,” said Mike Horn, vice president of ProServices. “The ProExpress program allows us to offer our pro customers the ultimate convenience and flexibility by delivering the materials they need, when they need them.”

Lowe’s Canada will watch the performance of the new program before deciding whether it would be a fit for its stores north of the border.

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Classified Ads

At CGC Inc. we go the distance to provide The Better Way. Delivering building solutions for customers worldwide is our goal. Relationships are our foundation. Integrity, Dependability and Innovation are the standards by which we live.

CGC Inc., a wholly owned subsidiary of USG Corp., is a leading marketer, manufacturer and distributor of gypsum wallboard products, interior finishing material and suspended acoustical ceilings. With locations around the world, CGC and USG have the resources, plants, products and people to build walls, ceilings and careers.

We are currently seeking to fill the opening of: Manager, Technical Solutions and Quality.

Qualifications:

• Minimum 10 years of experience in building science, engineering, architecture or related field
• Post-secondary education in building science, engineering, architecture or a construction related discipline. Designation as a P.Eng., C.E.T., or C.T.R preferred
• In-depth knowledge of building materials, constructions processes, cladding, and roof systems

  Valid driver’s license and clean driving record

  Excellent communication skills, both verbal and written.

• Excellent public speaking skills to present professionally to groups of all sizes.
• Bilingual – English / French an asset
• Overnight travel required up to 25%

This challenging position offers a competitive compensation package, comprehensive benefits package, a company auto and the potential for an annual bonus.

Interested applicants may find out more and apply by clicking here.

back to top

______________________________________________________________________

Director, Retail Sales- Schlage

Leading a national team of sales professionals, the Director of Retail Sales, controls and directs all activities of the retail sales organization, ensures development of retail programmes to attain planned sales, productivity and budget compliance.  Driving profitable growth through best in class category leadership, account management and flawless execution against our strategic plan

• Directs the domestic retail sales activities including, Big Box, LBM and e-Commerce
• Exercises management and sales initiatives which ensure that a competitive position is maintained within the market.
• Directs sales planning and provides input to market research activities.
• Reviews sales and forecasts.
• Makes recommendations for new products and changes in existing products

Experience

• Minimum 10 years related experience in retail or consumer packaged goods environment Big Box DYI preferred
• 5-10 years’ of progressive sales experience
• Minimum of 5 years’ experience in a senior position leading a sales team
• University degree preferred or an equivalent degree in a field of study related to the position

For more information about this position visit http://careers.allegion.com/ for more details.

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______________________________________________________________________

National Account Manager

Blount International, Inc. has an exceptional National Account Manager opportunity supporting our global headquarters in Portland, Oregon by representing our products to their assigned customer base within Canada.

This position has the primary responsibility to sell an established consumer goods product line to mass merchants in Canada. This means conducting all marketing functions through the entire sales channel. The job also requires collecting information that will enable the Company to react in a timely manner to competitive actions and market trends. The primary area for this position is in Southern Ontario, Quebec and Atlantic provinces.

RESPONSIBILITIES INCLUDE, BUT ARE NOT LIMTED TO:

• Developing and growing sales opportunities via an increase in sales and market share, while maintaining solid profits; Achieving sales targets and goals
• Calling on national and regional retailers, hardware coops and hardware distributors at their HQ location, as well as supporting those customers via field visits
• Ensuring that top selling products are represented in the retail line
• Reviewing inventory movement and cull the line of slow selling products – replace with faster moving products
• Identifying new products/new program growth opportunities
• Managing the day-to-day account management responsibilities
• Making certain that customer’s website, catalogues, and rental locations product offerings are up to date
• Presenting marketing & advertising programs for all products
• Supporting our negotiated retailer programs in the field by meeting with individual retailers

For more information about this position visit http://www.blount.com Click on the tab Careers and choose Search Careers –Canada.

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Turkstra Lumber

Purchasing Department

Turkstra Lumber is looking for an individual with industry experience, strong business acumen, an advanced knowledge of Excel and very strong negotiation skills for an opening in the Purchasing Department. Responsibilities include setting up and negotiating programs, sourcing product and maximizing profit. Please forward resume to hr@turkstralumber.com.

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July 28, 2014 Volume

xx, #30

“To exist is to change, to change is to mature, to mature is to go on creating oneself endlessly.” —Henri Bergson (early 20th century French philosopher, 1859-1941)

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NO ISSUE OF HARDLINES NEXT WEEK

Summer Publication Schedule: Please note there will be no weekly edition of HARDLINES on August 4, 18, or 25. The World Headquarters will remain open, however, during this time. The regular weekly schedule will resume September 1.

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Andrew Battagliotti to retire from ILDC, McCusker to step in

AJAX, Ont. — Andrew Battagliotti, general manager of Independent Lumber Dealers Co-operative, will retire at the end of this year. He has been with the giant buying group, whose members include some of Canada’s largest independent chains, for the past 17 years. Before that, he was director of merchandise services at Beaver Lumber.

Gord McCusker has been appointed as his replacement, effective January 1, 2015. McCusker will join the ILDC office on August 6, however, and work alongside Battagliotti during a transition period for the remainder of the year.

McCusker comes to ILDC after starting in the industry in 2003 as the vice president of finance at Euramax Canada (formerly GSW Building Products), where he spent the last six years leading the company as its business manager. Before joining Euramax, he spent 10 years in senior financial roles with Alcatel Canada Wire and Valmet Automation.

In addition to his senior management and finance experience he has his MBA from the Richard Ivey School of Business at the University of Western Ontario and is a Certified Management Accountant.

ILDC was founded in 1964 and its 21 members comprise more than 335 outlets with sales in excess of $3 billion, according to the Hardlines Who’s Who Directory . Despite the size of its members, the group has one of the smallest operating offices of the groups, reflecting its focus purely on negotiating best pricing for commodities, and through the Spancan buying group, its hardware product needs.

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Ace Hardware will present at Hardlines Conference

SPECIAL REPORT — Ace Hardware is the latest company to confirm its involvement in this year’s Hardlines Conference. Robert Moschorak, president of Ace International, will present on Day Two of the Conference, Thursday, October 23.

Ace’s involvement in Canada dates back more than 35 years, and that involvement has evolved through various partnerships and supply arrangements. Mr. Moschorak will talk about Ace’s presence internationally and the potential for further involvement in the Canadian market.

Ace joins other retail leaders, including Tony Steier, home and building supplies director for Federated Co-operatives Limited; Greg Hicks, SVP merchandising for Canadian Tire Retail; Vicki Hagel, owner of Cook Street Castle in Victoria, B.C.; and Mark Thomas, co-founder of Quinju.com.

Trends leaders speaking at the Conference are: Ted Tsiakopoulos, a leading economist from Canada Mortgage and Housing Corporation; Jo Rossman from the Association for Retail Environments; and Robert Howard, partner at retail consultancy Kurt Salmon.

Inspirational leaders will also be featured. This year’s “Profiles in Leadership” series is proud to feature Paul Beeston, president and CEO of the Toronto Blue Jays. And the conference kicks off on Day One with an intensive, hands-on workshop by retail coach Donald Cooper, president of The Donald Cooper Corporation.

The 19th Annual Hardlines Conference runs October 22-23 at the Sheraton Toronto Airport Hotel and Conference Centre. (For more information and to register for the Conference, click here! —Michael)

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RONA will make fall show a buying event for independents

BOUCHERVILLE, Que. — The upcoming RONA show will have a different emphasis than in years past. Traditionally, the event has been a showcase for new products, strategies, and merchandising programs from RONA that focus on store managers and big box retailers.

This year, it’s all about the independent, says Philippe Element, senior director, wholesale sales. “It’s focused on proximity stores, whether they are independents or corporate, and affiliated stores only. It’s going to be a buying show for these dealers only.”

Element heads up a business unit that has been established to focus on products, pricing, and programs that best suit the proximity stores. In the past, RONA provided similar products to all its stores, from big box to contractor to independent. “This is a transition year,” he notes. “They have always been an important part of our mix, but one thing for certain is that we are going to be focusing on the affiliates more than ever.”

Element says between 225 and 250 exhibitors will be at the show, which will be held at the Palais de Congrès in downtown Montreal from September 4-5. The focus will be on the seasonal products for spring 2015. But it will also include LBM, tools, paint, hardware, finish plumbing, and electrical. Besides new product presentations, dealers can expect power buys, a “Saving Showcase,” and other opportunities for deals.

The show will also feature strategic sessions that will inform dealers about RONA’s strategies for next year. The show will have vendors representing product selections from every part of the country, says Element.

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Kent continues to ramp up Air Miles initiative

BOUCHERVILLE, Que. & Saint John, N.B. — The adoption of Air Miles by Saint John, N.B.-based Kent Building Supplies last month took other Air Miles partners completely by surprise, according to sources contacted by HARDLINES. TIM-BR MART dealers throughout Atlantic Canada expressed their dismay, noting that the exclusivity of Air Miles as an offering for their customers was an important part of their decision to join TIM-BR MART Group in the first place.

At RONA, the company reportedly found out the news of Kent’s participation second-hand, as well, rather than from Air Miles’ own company, LoyaltyOne. In fact, LoyaltyOne has made no official mention of the addition of this major home improvement retailer to its partnership network (Kent has annual sales in excess of $500 million, according to the Hardlines Who’s Who Directory.)

Kent is working to firmly establish Air Miles as part of its business. It has appointed Steve DiPaolo as loyalty program manager. He was formerly a group merchandise manager for building supply chain. Now, he leads Kent’s loyalty program to drive sales through customer acquisition, development, and retention with promotions, and manage relationships with vendors, merchants, and marketing program leaders.

No one from LoyaltyOne has responded to repeated calls and emails from HARDLINES for a comment.

RONA responded with a press release of its own around the same time, confirming its renewal of a multi-year contract with Air Miles at more than 500 RONA stores across Canada. RONA was in fact one of the original Air Miles partners, developing a relationship more than 20 years ago for the Quebec market.

And while the Atlantic market is getting crowded, RONA is not bothered by it, says Claire Bara, the company’s vice president of marketing. “The value of Air Miles is in the data generated by the program,” says Bara. “That’s gold.”

RONA uses data from Air Miles along with input from credit cards, and emails to develop a complete customer relationship management program (CRM). “Our CRM makes Air Miles a very powerful weapon. It’s a great way to get to know your customer—and to target your customer,” she adds.

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Classified Ads

National Account Manager

Blount International, Inc. has an exceptional National Account Manager opportunity supporting our global headquarters in Portland, Oregon by representing our products to their assigned customer base within Canada.

This position has the primary responsibility to sell an established consumer goods product line to mass merchants in Canada. This means conducting all marketing functions through the entire sales channel. The job also requires collecting information that will enable the Company to react in a timely manner to competitive actions and market trends. The primary area for this position is in Southern Ontario, Quebec and Atlantic provinces.

RESPONSIBILITIES INCLUDE, BUT ARE NOT LIMTED TO:

• Developing and growing sales opportunities via an increase in sales and market share, while maintaining solid profits; Achieving sales targets and goals
• Calling on national and regional retailers, hardware coops and hardware distributors at their HQ location, as well as supporting those customers via field visits
• Ensuring that top selling products are represented in the retail line
• Reviewing inventory movement and cull the line of slow selling products – replace with faster moving products
• Identifying new products/new program growth opportunities
• Managing the day-to-day account management responsibilities
• Making certain that customer’s website, catalogues, and rental locations product offerings are up to date
• Presenting marketing & advertising programs for all products
• Supporting our negotiated retailer programs in the field by meeting with individual retailers

For more information about this position visit http://www.blount.com Click on the tab Careers and choose Search Careers –Canada.

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Turkstra Lumber

Purchasing Department

Turkstra Lumber is looking for an individual with industry experience, strong business acumen, an advanced knowledge of Excel and very strong negotiation skills for an opening in the Purchasing Department. Responsibilities include setting up and negotiating programs, sourcing product and maximizing profit. Please forward resume to hr@turkstralumber.com.

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July 21, 2014 Volume

xx, #29

“Money is like gasoline during a road trip. You don’t want to run out of gas on your trip, but you’re not doing a tour of gas stations.” —Tim O’Reilly (Irish-American tech guru and founder & CEO of O’Reilly Media, 1954- )

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Summer Publication Schedule:

Please note that HARDLINES will publish July 28, then take some time off in August. There will be no weekly edition of HARDLINES on August 4, 18, or 25. The World Headquarters will remain open, however, during this time. The regular weekly schedule will resume September 1.

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Top buyers from CTR, FCL among speakers at upcoming Conference

SPECIAL REPORT — Provocative insights. Progressive information. And, of course, networking at its best. The 19th Annual Hardlines Conference will offer all this and more over two action-packed days with top leaders of the home improvement industry.

This year’s Conference has been designed especially to help businesses play at the top of their game as the industry enters another year of slow growth. Vendors who wish to get face-to-face with top buyers will get their chance: Greg Hicks (shown right), senior vice president, merchandising for Canadian Tire Retail; and Tony Steier, home and building supplies director for Federated Co-operatives Limited, the giant Western farm and hardware co-op, are just two of the speakers who will fit that bill.

For delegates hungry to understand the latest trends in consumer habits, Jo Rossman, from the Association of Retail Environments, will talk merchandising; and Robert Howard of retail consultancy Kurt Salmon, will share the latest insights into why and how people shop today.

Other speakers include Ted Tsiakoupolos of Canada Mortgage and Housing Corp.; Vicki Hagel of Cook Street Castle in Victoriaville; Mark Thomas, co-founder of quinju.com; and Donald Cooper, the retail leader and business coach who has helped innumerable companies sell better.

This year’s “Profiles in Leadership” Series at the Conference welcomes Paul Beeston, president and CEO of the Toronto Blue Jays and former president of Major League Baseball.

The 19th Annual Hardlines Conference has been developed to provide delegates, whether retailer or vendor, with “aha” moments for their own businesses. The lessons and strategies each delegate will take away from this event can only be learned in this type of face-to-face setting.

(For more information and to register for the 19th Annual Hardlines Conference, click here! —Michael)

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Newest TIMBER MART store called flagship for the banner

MUSQUODOBOIT HARBOUR, N.S. — The new TIMBER MART store that opened here two weeks ago is not only six times larger than the one it replaced, but it is a showcase for the latest merchandising, branding, and marketing initiatives available from TIM-BR MART Group.

Robert Taylor, president of Taylor Lumber Co., and his family have been serving Nova Scotia’s Eastern Shore for almost three decades. When Taylor decided to expand the operation, he turned to TIM-BR MART Group for full support to make the change.

The elements and details in the new store include new-concept endcaps, merchandising innovations for the power aisle, and special attention to the contractor desk, with new signage and merchandising. All the elements work together to reinforce the TIMBER MART brand.

“This store really highlights what TIM-BR MART can offer for a dealer, in terms of merchandising and marketing,” says John Morrissey, vice president, building materials for TIM-BR MART Group. He works out of TIM-BR MART’s office in Dartmouth, N.S. “We redesigned our merchandising team and this was a chance for that team to work in a co-ordinated fashion.”

The expanded store also added a 4,000-square-foot garden centre, a kitchen showroom with full design services, a new home décor section, and expanded core hardware departments. “It really gives them to opportunity to be the one-stop shop in that community,” says Morrissey. “This is one of the nicest stores in Canada—period,” he adds.

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Lowe’s looks to integrate “smart home” technology

MOORESVILLE, N.C. — “Smart home” technology currently consists of a cacophony of apps and gadgets, but the general manager of Lowe’s Iris smart home division sees a more integrated solution at the end of the tunnel.

In an interview with Re/code, Kevin Meagher of Lowe’s Iris Home Security and Automation says that in the near future homeowners will be able to harmonize devices working on different platforms, while avoiding proprietary “walled gardens.” Meagher says that “no consumer wants to walk up to their house and open up one app to control their door lock, another to control the thermostat, another to control the lighting—that’s just crazy.”

While the temptation is for manufacturers to bundle their products more closely, Meagher says this puts off customers who want a system that works with the hardware they already own. Describing safety as an “overlooked” area, Meagher added that building on existing technologies, smart home systems will be able to keep homeowners in the loop about their children and elderly parents.

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ANALYSIS: How stores perform retail format

While hardware stores showed a drop in sales again this year, following a 2.6% drop last year, our research indicates that same-store sales by this format were positive, with low single-digit growth.

The decrease overall reflects the emphasis on building centres and home centres by the major retail groups such as Home Hardware and RONA. Many hardware stores, in fact, are expanding into building centres.

Sales by the country’s big boxes dipped slightly as RONA closed stores in 2013 and faced a further drop in sales by its Réno-Dépôt outlets in Quebec while that chain got a facelift.

(All data drawn from the 2014-2015 Retail Report: Complete Review & Analysis of Canada’s Hardware/Home Improvement Industry by the Editors of HARDLINES. Click here for more information and to order your copy of this amazing Report! —Michael)

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Classified Ads

Turkstra Lumber

Purchasing Department

Turkstra Lumber is looking for an individual with industry experience, strong business acumen, an advanced knowledge of Excel and very strong negotiation skills for an opening in the Purchasing Department. Responsibilities include setting up and negotiating programs, sourcing product and maximizing profit. Please forward resume to hr@turkstralumber.com.

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July 14, 2014 Volume

xx, #28

“No bird soars too high, if he soars on his own wings.”

―William Blake (British painter, printmaker and poet, 1757- 1827)

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Outstanding Retailer Awards: Call for entries

Attention Dealers: Do you think you offer better customer service than the dealer down the street? Have you expanded your store or added exciting new departments or other elements? Did your sales increase last year? If you think your store and your staff are exceptional, we want you to enter the 2014 Outstanding Retailer Awards.

Attention Vendors: Do you have an outstanding customer that you think should be recognized? Encourage them to enter!

The ORAs will be presented at the Annual Hardlines Conference, October 22-23 in Toronto. The call for entries to the Outstanding Retailer Awards is effective immediately.

Who Can Enter: All Canadian hardware and home improvement dealers who have operated under the current ownership for at least two years are eligible. Dealers may submit entries directly, or chain/buying group head offices may select their best dealer(s) and prepare the entries for them.

Categories to Enter:

• Best Hardware Store (any size)
• Best Building Supply/Home Centre (under 25,000 square feet)
• Best Building Supply/Home Centre (over 25,000 square feet)
• Young Retailer Award (a store manager 35 or under; entrants may be owners, managers or employees)
• Marc Robichaud Community Leader. This award is open to all stores. Its purpose is to celebrate the outstanding contributions/events, charitable donations, etc., made by a store to the community it serves.
• Best Large Surface Retailer (over 65,000 square feet)

Winners Will Receive: a trip to Toronto, including one night’s accommodation at the Sheraton Toronto Airport Hotel and Conference Centre, and admission to Day One of the Hardlines Conference; an inscribed plaque; a marketing package that includes a write-up in Hardlines Home Improvement Quarterly Magazine; a customized video; and press releases and images ready to be sent to local media. The awards will be presented at a special ORA Gala Dinner, held October 22 at the Sheraton Toronto Airport Hotel and Conference Centre.

How to Enter:

1. Visit www.oras.ca.

2. Complete the questionnaire on your business and submit images of your store by mail or online.

NOTE: Deadline For Entries Is July 28.

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Canadian Tire previews Christmas product lines

TORONTO — Canadian Tire held its annual “Christmas in July” event near Toronto’s hip Distillery District last week. The event featured 350 products that will be rolled out for this year’s holiday season, 60% of which are exclusive to Canadian Tire. New this year, each holiday themed vignette featured mannequins wearing clothing from CTR’s sister company, Mark’s, to demonstrate the crossover between the two companies.

Canadian Tire also premiered its new home & seasonal line, “Canvas.” The Canvas team identifes upcoming trends and brings them to the Canadian Tire stores. The colour for the 2014 holiday season is apple green. However, Canadian Tire is carrying the colour over to items that aren’t holiday specific, such as serving trays, candle holders, and cake trays.

Another theme of the preview was holiday items that can be used all year. They ranged from a pre-lit cherry blossom tree to holiday LED lights that can also be used to light up a backyard in the summer. Additionally, LED lights that have clips attached for easy hanging were a big seller last year and this year the assortment will be expanded to 25 different types of LED lights by Noma, including some with cords that cannot tangle.

As sales for live Christmas trees continue to fall, Canadian Tire is featuring a line of life-like artificial trees. Sticks of tree scent can be hung inside the tree to fill one’s home with the smell of a live tree. Through all these new products, Canadian Tire is staking its claim as Canada’s one-stop shop for holiday shopping.

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Dealer margins could erode as dollar drops

SPECIAL REPORT — With the decline of the value of the Canadian dollar compared to U.S. currency, many dealers are likely seeing price increases on products manufactured in the United States or imported from anywhere in the world.

Even for dealers doing their own direct importing, increases are still going to occur when paying for those shipments in U.S. dollars, says Bill Wilson, retail advisor for the North American Retail Hardware Association Canada. This will include products landed at port of entry, as ocean freight is paid in American currency. You will also see increases in costs from distributors on imported product.

And even though the majority of lumber products might be sourced domestically, pricing there increasing could also increase as moderate growth in housing starts in the American marketplace drives up demand south of the border.

Wilson advises dealers to handle these price increases in an ongoing, regular fashion, otherwise inventory replenishment costs could become high. The Canadian dollar has declined by 10% since Q3 last year and some economists are forecasting it could go as low as 85 cents.

“Retailers who do not increase prices until they replace their inventory are typically using min/max auto buying,” Wilson explains. “When new inventory arrives that reflects higher pricing, they then change their own prices. This is an adequate short-term strategy, but when it comes time to replace that inventory, dealers will have to invest additional dollars.”

He recommends that dealers remain proactive and review price increase information regularly and then increase the retail price on the date an increase is effective.

(This is an excerpt from Bill Wilson’s regular column that appears in our sister publication, Home Improvement Quarterly. Our newest edition of HHIQ is in the mail now to more than 11,500 dealers and managers across Canada. —Editor)

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L&G trends at Cologne fair an opportunity for Canadians

At the end of the summer, historic Cologne, Germany, will play host to the world’s largest lawn, garden, and outdoor living trade fair, spoga/gafa. Event will take place August 31 to September 2 at the Koelnmesse exhibition centre and include thousands of exhibitors from across 10 different L&G and outdoor living categories, ranging from grills to farm and ranch.

The North American Retail Hardware Association is extending an invitation to any U.S. and Canadian retailers who would like to attend this event as part of an NRHA contingent. This group will receive VIP show tours, access to receptions, and a special local tour of home improvement and garden centres.

Any Canadian dealers interested in going should contact Michael McLarney at NRHA Canada.

(To learn more about the Spoga/gafa trade fair, click here! —Editor)

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Classified Ads

Senior Territory Manager – IC Field Sales

Required Location – Greater Toronto Area

As a Senior Territory Manager on the IC Field Sales team, you must possess passion, initiative and drive combined with exemplary sales leadership and planning skills. This senior level position requires the ability to build customer centric plans and end user selling strategies while managing 7 – 8 of Milwaukee’s highest opportunity customers.

You will be responsible for designing and executing sell in and sell through strategies for Milwaukee across core trade distribution. You will also be responsible for all aspects of your select distributor bases’ operational activities, including, POS tracking, line reviews, competitive programming analysis, product knowledge, MIT/MIS events and JSS user conversion strategies.

Duties and Responsibilities:

• Lead the planning and execution strategy for your assigned customer base.
• Communication to Territory Managers covering off multi branch initiatives will be required.
• Grow your Customer Base by leveraging product assortment and competitive conversions.
• Meet and Exceed Assigned Territory Budget and stretch plan targets.
• Provide an Accurate Monthly Territory Forecast and Promotional sku level forecast.
• Know your Competition and leverage their weaknesses against them.
• Expert understanding of channel based marketing within your distributor base.
• Sound Product Knowledge
• Develop relationships throughout your customer’s organizations, through all layers of their management.
• Plan and execute new product launches
• Help with service solutions for the assigned brands.

Expectations

• Manage Co-op, LMF and leverage them creatively to drive sales growth.
• Manage T&E with the assigned Budget
• Leverage our JSS Team as a POS Driver for your distributors.
• Engage Channel and Product Marketing to ensure you are gaining program support.
• Support and implement strategic marketing initiatives.
• Report and comment on trends in competition

Education and Experience Requirements

• Bachelor’s degree or equivalent experience.
• 5+ years sales leadership and planning experience with large volume customers.
• Proficient in Reporting and Analytical Skills and Microsoft Office applications.
• Possess effective business communication skills, broad business perspective, and market savvy.
• A valid driver’s license, clean driver’s abstract and passport
• Ability to travel significantly

All interested applicants please submit resume with cover letter to Human Resources by Friday, July 18, 2014 . HRCanada@ttigroupna.com Please note in subject line: Sr. TM Position – GTA

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July 7, 2014 Volume

xx, #27

“An idea can turn to dust or magic,

depending on the talent that rubs against it.”

―William Bernbach (American advertising creative director, 1911-1982)

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Ace says it will look for new licensing partners in Canada

SPECIAL REPORT — Ace Hardware, faced with the termination of its long-standing partnership with TIM-BR MART Group in just two months, has contacted HARDLINES with an official statement about its intentions here in Canada.

The statement was first published by HARDLINES last week, and came from Robert Moschorak, president of Ace Hardware International. It makes clear Ace’s intention to find a new partner in Canada after TIM-BR MART Group notified its dealers on June 19 that it would end its licensing agreement with Ace Hardware.

More than 100 TIM-BR MART dealers in Canada, many of them in Quebec, carry the Ace banner, either by itself or in tandem with the TIMBER MART brand.

Here is Ace’s message in full:

“The Ace and TIM-BR MART relationship will end on August 31, 2014. Ace is currently in discussions with other Canadian distributors who are interested in becoming the new master licensee for Canada and serving the needs of our Ace retailers.

“Ace intends to play an important role in the Canadian home improvement market and we look forward to the exciting ‘next chapter’ in making Ace a premier brand in Canada.”

What that “next chapter” will actually look like remains to be seen. There are very few national distributors left that don’t have strong banners of their own, (i.e., Home Hardware, BMR). RONA already has a strong presence in Quebec, where most of the Ace stores are, and also has a relatively new banner of its own outside of Quebec with the TRU brand. TRU is driven out of RONA’s TruServ Canada distribution business in Winnipeg in three versions, hardware, LBM, and lawn and garden.

However, Ace just last week also announced it will become a hardware supplier for Mitre 10 in New Zealand. The member-owned co-op has stores that range from convenience hardware stores and home centres to big boxes, just like RONA—and expat RONA and Réno-Dépôt executives helped the group establish the dealer-owned big box concept in that country more than a decade ago.

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Design centres are “taking off” says Home Hardware CEO

ST. JACOBS, Ont. — A growing trend among Home Hardware dealers is the move into more building materials. As a traditional hardware store looks to add more products, expansion into a home centre format suits many of them.

This is just one of the insights into the direction of the giant hardware and home improvement co-op, under its new CEO, Terry Davis. Davis says a similar trend is working in reverse among its traditional lumber yards, as Home Building Centres are growing into full-line home centres under the Home Hardware Building Centre banner.

And as dealers take on more lines, décor showrooms are becoming the answer. “We’re definitely seeing more design centres. They’re just taking off like gangbusters,” Davis says.

If a dealer wants to expand their lines in, say, flooring, tiling, carpeting, or doors and windows, a design centre becomes a good way to expand the existing business. Sometimes it can be done right in the existing store, but more and more design centres are popping up as stand-alone outlets.

(This is an excerpt from an in-depth interview with Terry Davis that will appear in the next edition of our sister publication, Home Improvement Quarterly. It mails this week to our audited list of more than 11,500 dealers and managers across Canada. Vendors can also purchase their own copy by clicking here. —Editor)

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Two young leaders win a trip to the Hardlines Conference

WINNIPEG — Two young leaders from Western Canada have won a trip to the Hardlines Conference in Toronto this fall.

The Western Retail Lumber Association (WRLA) and NRHA Canada held a contest to select two members of the WRLA’s NexGEN group, who will attend the industry summit at the Sheraton Toronto Airport and Conference Centre October 22-23, 2014.

Joel Siebert, general manager of Mountain View Building Materials in Calgary, is the retail winner. Eric Palmer, Canadian sales operations manager for Jeld-Wen Windows and Doors in Winnipeg, is the supplier winner.

Both Joel and Eric submitted written testimonials about their experiences in the building materials industry and their hopes for the NexGEN group. Their prize includes: travel & accommodations; all access conference pass (including meals); a seat on an industry panel at the conference; and ticket to 2014 Outstanding Retailer Awards Gala.

They will be joined on the industry panel by Marc-André Dignard, a young leader from RONA’s retail team in Boucherville, Que.; and Kim Ytsma, owner of Alliston Home Hardware Building Centre in Alliston, Ont.

The 19th Annual Hardlines Conference features the theme: “At the Top of Your Game.” The event will be held October 22-23 at the Sheraton Toronto Airport Hotel and Conference Centre. (Click here for full info on the lineup of incredible speakers and to register. —Michael)

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Canadian Tire’s loyalty program still stuck in test mode

TORONTO — Canadian Tire Corp. continues to try and get its arms around the online channel, but the process has been slow. A pilot project to test sales online in Nova Scotia was supposed to have been piloted for one year. But the company has only recently rolled out a system of buying online and picking up the order in-store, almost a year after it was supposed to get a full rollout.

In tandem with the pursuit of customers online is also the ability to gather data about them to provide more guidance and incentives for future sales. This is a field in which Amazon is dominant, but Canadian Tire had a lot of catching up to do. Consider that its “loyalty program” has historically been its Canadian Tire “money,” which offers no ability to track purchases or shopping habits.

The retailer is now trying a points system to mimic the Canadian Tire money, but it has been stalled in fully developing the program by an admitted inability to manage effectively all the data that the program is generating.

Following the release of its first-quarter results, Canadian Tire president and CEO Stephen Wetmore said the program is evolving. “We’ll get our national loyalty program extended electronically this year and on cards,” he told analysts. “We’ll then start building data. The thing is you can use it to drive some traffic.”

In the meantime, the company is continuing to fine-tune its IT infrastructure to be able to handle the data more effectively.

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ANALYSIS: HARDLINES forecasts slow growth

Poor weather and a sluggish economic recovery held back industry growth in 2013. And the current year is shaping up to be only slightly better. As a result, Canada’s retail home improvement industry grew only slightly in 2013 to $40.704 billion in 2013. That represents an increase over the previous year of just 0.7%, less than the rate of inflation.

This smaller growth reflects the overall sluggish recovery of the market, especially in areas that were expected to rebound quicker early last year, such as Alberta and Ontario.

The slight growth in 2013 was further compounded by the loss of sales by RONA and only modest increases by a number of larger retailers, especially the regional players. For the remainder of 2014, dealers across the country continue to be cautious in their forecasting. More than one-third still expect their sales to be flat or down this year. Based on the performance by dealers, overall market conditions, consumer confidence, and a weak housing outlook for 2014 and 2015, HARDLINES is maintaining a very moderate forecast for this year and next.

(All data drawn from the 2014-2015 Retail Report: Complete Review & Analysis of Canada’s Hardware/Home Improvement Industry by the Editors of HARDLINES. Click here for more information and to order your copy of this amazing Report! —Michael)

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Classified Ads

Senior Territory Manager – IC Field Sales

Required Location – Greater Toronto Area

As a Senior Territory Manager on the IC Field Sales team, you must possess passion, initiative and drive combined with exemplary sales leadership and planning skills. This senior level position requires the ability to build customer centric plans and end user selling strategies while managing 7 – 8 of Milwaukee’s highest opportunity customers.

You will be responsible for designing and executing sell in and sell through strategies for Milwaukee across core trade distribution. You will also be responsible for all aspects of your select distributor bases’ operational activities, including, POS tracking, line reviews, competitive programming analysis, product knowledge, MIT/MIS events and JSS user conversion strategies.

Duties and Responsibilities:

• Lead the planning and execution strategy for your assigned customer base.
• Communication to Territory Managers covering off multi branch initiatives will be required.
• Grow your Customer Base by leveraging product assortment and competitive conversions.
• Meet and Exceed Assigned Territory Budget and stretch plan targets.
• Provide an Accurate Monthly Territory Forecast and Promotional sku level forecast.
• Know your Competition and leverage their weaknesses against them.
• Expert understanding of channel based marketing within your distributor base.
• Sound Product Knowledge
• Develop relationships throughout your customer’s organizations, through all layers of their management.
• Plan and execute new product launches
• Help with service solutions for the assigned brands.

Expectations

• Manage Co-op, LMF and leverage them creatively to drive sales growth.
• Manage T&E with the assigned Budget
• Leverage our JSS Team as a POS Driver for your distributors.
• Engage Channel and Product Marketing to ensure you are gaining program support.
• Support and implement strategic marketing initiatives.
• Report and comment on trends in competition

Education and Experience Requirements

• Bachelor’s degree or equivalent experience.
• 5+ years sales leadership and planning experience with large volume customers.
• Proficient in Reporting and Analytical Skills and Microsoft Office applications.
• Possess effective business communication skills, broad business perspective, and market savvy.
• A valid driver’s license, clean driver’s abstract and passport
• Ability to travel significantly

All interested applicants please submit resume with cover letter to Human Resources by Friday, July 18, 2014 . HRCanada@ttigroupna.com Please note in subject line: Sr. TM Position – GTA

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Fusion Products Limited

General Manager

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

You will report to the owners and:

• be responsible for successfully directing all facets of our business.
• have a financial background, hr experience and strong leadership style.
• have industry sales experience to manage key accounts, a sales team and client base to achieve sales and financial goals
• be familiar with supply chain management, Asian factory import experience and product development skills.

Experience required:

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

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

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June 30, 2014 Volume

xx, #26

“Few people do business well who do nothing else.”

—Philip Dormer Stanhope, fourth Earl of Chesterfield

(British statesman, orator and wit, 1694-1773)

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CONFIRM YOUR SUBSCRIPTION TO HARDLINES!

Canada’s New Anti-Spam Legislation comes into effect July 1. Your subscription to this e-Newsletter is fine and you will still continue to receive it. But it’s a good idea to update all of your preferences with us. Therefore, please confirm your subscription by clicking here. Thanks! —The Hardlines Team

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TIM-BR MART dealers surprised by Air Miles at Kent stores

SAINT JOHN, N.B. — Air Miles are now available at Kent Building Supplies in Atlantic Canada, a move that’s got a number of TIM-BR MART dealers upset. For the past 20 years, Air Miles has been an exclusive of the dealer-owned group in the retail building materials channel. (RONA has Air Miles, as well, but is considered a chain, versus TIM-BR MART’s status as a group of independents. Actually, I’m not sure myself how that works. —Editor)

But starting last Tuesday, Kent launched its own Air Miles program with heavy promotion and a contest that will give away a total of 250,000 points through its 40-plus stores. TIM-BR MART has some 70 dealers of its own in Atlantic Canada, many of them in direct competition with Kent stores.

Exactly one year ago, Air Miles was introduced at Irving gas stations in New Brunswick, and the program appears to have rolled out across other Atlantic markets over the past six months. Observers speculate that Kent, another company owned by the Irvings, was made part of the Air Miles deal, as well, as an add-on to the gas stations.

Air Miles, owned and operated by LoyaltyOne, typically announces its new partnerships in a press release. No press release for the Kent deal could be found online or on the company’s website. Nor did anyone from LoyaltyOne respond to calls from HARDLINES before press time.

Air Miles is considered an important program for the dealers. Not only does it give them a value-added component to their sales to both DIYers and contractors, but helps manage receivables, as the Air Miles can’t be collected until invoices are paid.

“I’m very upset and frustrated about it, to say the least,” says Brad Hickey of Hickey’s TIMBER MART in St. John’s, whose biggest competitor is Kent. Access to the Air Miles program was a big part of his decision to join TIM-BR MART Group, he says. “I saw it as a fantastic competitive advantage to offer something of more value. Now it’s just a cost of doing business because everybody’s got it.”

A further concern among dealers is whether the Kent program will open the door for other large independents to get Air Miles. Kent is a member of Independent Lumber Dealers Co-operative (ILDC), whose members include Central Supply in Nova Scotia.

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Home Hardware goes high-tech at Nova Scotia DC

ST. JACOBS, Ont. — A major investment in new technology has been launched at Home Hardware’s distribution centre in Debert, N.S. There, the company has introduced what it has coined its “Warehouse Management System,” a proprietary logistics management developed by Manhattan and Associates, a third-party logistics service provider. It’s part of a larger system called Merchandise in Motion. MiM includes a transportation management system and is designed to streamline the supply chain, including everything from product orders to delivery.

This is the first of Home Hardware’s three DCs to get the new system. According to Home, the facilities in Wetaskiwin, Alta., and St. Jacobs, Ont., will get the systems next, though no timeline was given.

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Orgill is looking for Canadian vendors

TORONTO — Orgill, the giant U.S. hardware wholesaler that has been expanding its customer base in Canada in recent years, is looking for more domestic suppliers. At a recent breakfast seminar hosted by HARDLINES, the company’s senior vice president of merchandising and marketing, Brett Hammers, spoke with a group of Canadian vendors.

Orgill already has relationships with 144 domestic vendors, he said. And many of them, he added, have managed to replace some of the wholesaler’s existing suppliers. Orgill now has 55,000 SKUs that are Canadian compliant, and the company’s product ranges break down as follows: 32% hardware, 36% home centre, 21% pro, 8% farm, and 3% other.

As for what’s hot, “The fastest growing segment is actually in the farm business,” he pointed out.

Hammers explained to the group that Orgill does not support a banner of its own, but instead supports independent dealers under their own banners. Growing the Canadian business is a priority for the company, which already has customers in some 60 countries worldwide. “We’re investing heavily on the people side of it, with 12 Canadians in Canada supporting our presence here.”

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Sears offers smart devices to run homes

HOFFMAN Estates, Ill. — Sears in the U.S has recently introduced “Connected Solutions,” experiential shops that bring together assortments of smart, connected home and personal automation products. For example, a customer could program his garage door opener to notify them by text when the door is open and closed.

The connected solutions industry is projected to generate hundreds of billions in sales over the next five years.

“Many of our [customers] are aware of ‘smart’ devices or ‘home automation’ products but don’t fully understand how they are used to make their lives better,” says Craig LaRosa, divisional vice president, in-store experience and design for Sears Holdings in a release. “Connected Solutions offers an entertaining and interactive environment to learn about the products and develop solutions that are relevant to them.”

Products available so far include home automation, including thermostats, smart locks, lighting, switches and sensors; mobile phones, tablets and other connected devices; smart watches; fitness products such as treadmills and heart rate monitors; home monitoring cameras; and baby monitors.

Users can find a cross-category assortment of smart offerings for automotive, electronics, fitness, home, and mobile devices in the 1,700-square-foot Connected Solutions shops that are being piloted at three Chicago-area locations and online.

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Classified Ads

Fusion Products Limited

General Manager

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

You will report to the owners and:

• be responsible for successfully directing all facets of our business.
• have a financial background, hr experience and strong leadership style.
• have industry sales experience to manage key accounts, a sales team and client base to achieve sales and financial goals
• be familiar with supply chain management, Asian factory import experience and product development skills.

Experience required:

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

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

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