June 23, 2014 Volume

xx, #25

“The most dangerous strategy is to jump a chasm in two leaps.”

―Benjamin Disraeli (British politician and writer, 1804-1881 )

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TIM-BR MART and Ace terminate their relationship

CALGARY — TIM-BR MART Group has announced to its members that it will no longer support the Ace banner program. According to letters sent out to its dealers on June 19 by TIM-BR MART president Bernie Owens, the move comes from dissatisfaction with Ace International, through which the partnership has long been structured.

The deal ends August 31. After that time, TIM-BR MART Group will no longer purchase Ace related products, or provide Ace programs and services.

“For some time we have been unhappy with that relationship,” says Owens in the letters. “Efforts to make it more functional have been unsuccessful.” However, the letters indicate that Ace, which is based in Oak Brook, Ill., actually made the first move. It sent a notice to terminate the commercial relationship with TIM-BR MART earlier this month. TIM-BR MART in turn issued a notice to rescind and cancel the deal from its end.

Owens declined to comment on the move.

TIM-BR MART dealers get product from Ace International, which handles all Ace dealers outside the U.S. After establishing a distribution centre in Shanghai in 2006, it began shipping import product to TIM-BR MART dealers in Canada, as well as serving Ace dealers in more than 60 countries worldwide.

The version of the letter sent to TIM-BR MART dealers that carry the Ace banner did not shut the door on future options, however: “If you wish to renew your association with Ace, naturally you may do so directly.”

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Nelson Lumber joins Sexton Group

WINNIPEG — Sexton Group Ltd. continues its strategic growth vector with the addition of a key former TIM-BR MART dealer, Nelson Lumber Company. Nelson Lumber joins Winnipeg-based Sexton Group effective July 1.

Nelson went into operation in Lloydminster, Alta, in 1949, and under its founder Ray Nelson was one of the original members of TIM-BR MART when that group started in Vancouver in 1967.

Since its inception, Nelson has grown into a major lumber and building materials retailer and component manufacturer in Canada, with a strong manufactured housing business. Today, under current president Dennis Patterson, Nelson Lumber has five retail locations throughout the province, plus four truss plants and two locations producing manufactured housing.

This is actually the second time Nelson has joined Sexton. A number of years ago it joined Sexton; then, nine years ago, under then-president Brian Holterhus, Nelson Lumber and its sister company SRI Homes Inc. rejoined TIM-BR MART Group.

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RONA completes overhaul of Réno-Dépôt stores

BOUCHERVILLE, Que. — RONA inc. has completed the transformation of its 16 Réno-Dépôt stores in Quebec. The process, which began in January, required an investment of more than $20 million and generated 300 jobs across the province. The last stores to be transformed as part of the banner’s repositioning were in Brossard, Candiac, Quebec City, Beauport, and Sainte-Foy.

“The repositioning of the Réno-Dépôt stores has led to a quick upward sales trend for the banner,” says RONA president and CEO Robert Sawyer. “This is why we advanced the schedule and completed the transformation of all our stores in just six months, rather than the 12 months initially planned.”

What differentiates the new Réno-Dépôt concept is a focus on brand-name products, a new procurement policy to ensure that products remain in stock, and a redesign of the store’s interior to widen aisles and lower sight lines, better signage and more staff. “The enthusiastic response of consumers and, in particular, professionals and contractors has prompted plans to introduce this business model elsewhere in Canada, beginning in 2015,” Sawyer says.

To support the new-look stores, a new advertising campaign has been launched in the Quebec City region. The campaign centres around remaking hockey history, which the company calls “the opportunity to rectify the biggest mistake in Quebec City’s hockey history:” a goal scored by the Quebec Nordiques’ Alain Côté against rivals the Montreal Canadiens in an historic game in 1987 that was disallowed. The ad campaign reunites Côté with Michel Bergeron, former coach of the Nordiques, and Kerry Fraser, the referee who disallowed the goal.

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Lowe’s launches in-store “Holorooms”

TORONTO — Lowe’s Canada has introduced Lowe’s Innovation Labs and the first concept to come out of the lab, the Lowe’s Holoroom. Lowe’s created Lowe’s Innovation Labs to build new technology to solve common consumer frustrations while working alongside start-ups, universities, specialized professionals and other companies.

The Lowe’s Holoroom is a home improvement simulator which applies 3-D and augmented reality technologies to provide homeowners an intuitive, immersive experience in the room of their dreams.

“We know that for many homeowners, the struggle to visualize a completed home improvement project or to share that vision with others can stop a project in its tracks,” said Kyle Nel, executive director of Lowe’s Innovation Labs. “The Holoroom is our solution, enabling consumers to visualize their project and share that vision with family and friends.”

The Lowe’s Holoroom will be introduced in select Toronto stores in 2014, and equipped with thousands of products to help customers plan a bathroom remodel. Additional product categories and rooms will be added to the Holoroom to help plan projects throughout the home over the next 12 to 18 months.

A customer will begin by choosing their preferred products before viewing and experiencing those products in the Holoroom. While in the Holoroom, they can make changes to the room design or finalize their plan. A take-home printout will allow customers to view a 3-D model of their room at home, and share the model with family and friends, by downloading a free app available on iOS or Android devices.

“We use the power of science fiction narratives to predict future possibilities and explain complex technologies in a way everyone can understand,” said Ari Popper, founder and co-CEO of SciFutures.

“Using this science fiction prototyping process we collaborated with Lowe’s to see the world could look like, and their determination to bring that vision to life led to the Holoroom,” Popper adds.

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Canadian Tire updates its online sales strategy

TORONTO — Canadian Tire Corp.has finally rolled out online sales, with a system of buying online and picking up the order in-store.

The challenge for Canadian Tire, one that is being faced by other groups such as Home Hardware, is how to generate sales from a corporate level online and then push those sales—and customers—into the local stores, all of which are independently owned.

Consequently, there is no option for home delivery, at least not for now, on products ordered online from canadiantire.ca. The program is called “Pay & Pick Up.”

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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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Sales Manager (French Speaking) in Shawinigan, Quebec

Experience Required:

• 5+ yrs of Managing Sales Organization & Account Management
• 5+ yrs of management experience
  Knowledge of Regional Accounts in Canada
  Distributor & Account Management
• Experience
  Regional Sales & Account Strategy Development
• Proficient in Microsoft Word, Powerpoint, and Excel
• Preferred: Paint related experience

Education Required: College Degree; University Preferred

Travel Required: Yes – 75%

Apply online at: http://careers.sherwin-williams.com/jobs/17733

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______________________________________________________________________

National distributor of wood, metal and automotive

machinery and accessories. Seeks an experienced

TERRITORY SALES REPRESENTATIVE

for British Columbia

Ideal career opportunity for an agg\ressive,

self-motivated individual with excellent interpersonal

and communication skills.

Please forward cover letter and resume to:

E-Mail: tfuller@kingcanada.com

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June 16, 2014 Volume

xx, #24

“The highest and most beautiful things in life are not to be heard about, nor read about, nor seen but, if one will, are to be lived.” — Søren Kierkegaard (Danish philosopher, poet and social critic, 1813-1855 )

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Canac chain in Quebec to open 24th store

L’ANCIENNE-LORETTE, Que. — Canac, the giant building centre chain headquartered here, is building a new store in Rimouski that is slated to open this fall. The store will have 60,000 square feet in size, with 25,000 square feet of retail space. It is being built at a cost of $5 million and will employ 80.

This will be Canac’s 24th store, all of which are in Quebec. With estimated sales in 2013 of $307.5 million, it is one of the country’s largest independent home improvement retailers. While the company’s roots—and the majority of its stores—are in the Quebec City area, its stores extend as far south as Cowansville on Montreal’s South Shore.

Canac goes to market as a low-cost operator, especially aggressive when it comes to pricing of commodities. However, it offers a full home centre assortment that includes hardware, plumbing and electric, paint, floorcoverings and seasonal products.

A long-time member of Independent Lumber Dealers Co-operative, until it was asked to leave in 2007, the group operated unaffiliated until joining the LBM buying group TORBSA at the beginning of 2013.

Photo credit: http://www.cbdionne.com/realisations/commercial/canac

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UFA to expand its hardware business with new store

CALGARY – Farm co-op UFA Co-operative Limited will open a new Farm & Ranch Supply store and Petroleum bulk fuel and cardlock in Airdrie, Alta., in early 2015.

The plan includes an expanded retail footprint of approximately 9,000 square feet with additional warehousing to support animal husbandry and crop management. The store itself will represent UFA’s newest design carrying the rural products required to support agricultural production, staffed by experts needed to support its membership.

“We believe in the vibrancy and sustainability of the Airdrie area. Investing in this new location demonstrates UFA’s continued commitment to the Airdrie community and surrounding areas,” said Todd Ormann, vice-president, AgriBusiness, which includes the co-op’s 35 existing Farm & Ranch Supply stores, plus one building centre in Fort McMurray, Alta.

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TIM-BR MART rounds out dealer team, adds senior buyer

CALGARY — TIM-BR MART Group continues to build its team with the hiring of Kurt Norlen as group hardware procurement manager. Based at TIM-BR MART’s Calgary head office, Norlen will be responsible for managing the buying group hardware programs and Spancan buying programs. His job will be creating synergies between the buying group programs and TIM-BR MART’s wholesale hardware business, Chalifour.

Norlen will report directly to Randy Martin, vice president of business development.

TIM-BR MART Group has also made a hire that rounds out the buying group’s team of regional directors across the country. Ian Cook has been appointed regional director of member services (RDMS) for Ontario. He will act as liaison between TIMBER MART dealers, vendors, and the TIM-BR MART Group management team.

That group was formed initially with the hiring back of Daniel Rioux to serve in the RDMS role in Quebec and Eastern Ontario. Next came the promotion of two of TIM-BR MART’s existing dealer development people. Dave Dingwell was put in place for Atlantic Canada, while Phil Temple got the RDMS role for the West. That team also reports to Randy Martin.

In April, Eddie Durocher was promoted to national director of business development.

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Roxul plant starts production in the U.S.

MARSHALL COUNTY, Miss. — Roxul Inc., the stone wool insulation manufacturer, has established its first U.S. facility, which went into production on June 10.

The 600,000-square-foot facility sits on 100 acres in the Chickasaw Trail Industrial Park, about 50 kilometres south of Memphis. The plant, which broke ground just over a year ago, was built at a cost of $160 million. The company says this new location will help Roxul maintain growth in key residential and commercial insulation markets in the mid and southern U.S. and Mexico.

“This is truly a historic occasion for Roxul,” said Trent Ogilvie, president of Roxul, based in Canada. “When conducting our site selection due diligence, it was clear that the State of Mississippi and Marshall County provided us the optimal location from both a manufacturing and distribution standpoint.”

Roxul currently operates two North American facilities in Canada, in Milton, Ont., and Grand Forks, B.C. It is a subsidiary of Rockwool International, which claims to be the world’s largest producer of stone wool insulation. A public company that trades on the Copenhagen Stock Exchange, it operates 28 factories in 18 countries.

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CanWel seeks to “consolidate” shares

VANCOUVER — The Futura Corporation, holding company of investment wunderkind Amar Doman, has bought up more shares of CanWel Building Materials Group Ltd. Futura, which is the majority owner of the wholesale building materials business, has acquired an additional 252,500 common shares.

Based on CanWel’s latest reporting, Futura now owns 8,463,554 common shares representing approximately 29.49% of the issued and outstanding common shares of CanWel. The move follows a resolution set forth at CanWel’s AGM last month to reduce the number of its outstanding common shares from approximately 57,386,555 to approximately 28,693,277.

Doman, who is chairman and sole shareholder of Futura Corp., is chairman and CEO of CanWel. He opened the Toronto Stock Exchange last month in a symbolic gesture that recognized CanWel’s 10th anniversary trading on the TSX.

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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

back to top

______________________________________________________________________

Sales Manager (French Speaking) in Shawinigan, Quebec

Experience Required:

• 5+ yrs of Managing Sales Organization & Account Management
• 5+ yrs of management experience
  Knowledge of Regional Accounts in Canada
  Distributor & Account Management
• Experience
  Regional Sales & Account Strategy Development
• Proficient in Microsoft Word, Powerpoint, and Excel
• Preferred: Paint related experience

Education Required: College Degree; University Preferred

Travel Required: Yes – 75%

Apply online at: http://careers.sherwin-williams.com/jobs/17733

back to top

______________________________________________________________________

National distributor of wood, metal and automotive

machinery and accessories. Seeks an experienced

TERRITORY SALES REPRESENTATIVE

for British Columbia

Ideal career opportunity for an agg\ressive,

self-motivated individual with excellent interpersonal

and communication skills.

Please forward cover letter and resume to:

E-Mail: tfuller@kingcanada.com

back to top

______________________________________________________________________

Retail National Accounts Sales Manager, Toronto based

 A brand champion selling to home improvement retailers and mass merchants, this Canadian subsidiary is pursuing additional business and would be the perfect home for a sales driven, customer-intimate sales leader who wants responsibility for the strategic management of key Canadian national accounts. Specific duties will include:

• Development and management of senior level relationships with key retailer personnel including merchants, directors and buyers;
• Development and execution of a comprehensive plan to drive sales and profitability, including detailed tactics required to meet strategic objectives;
• Field analysis and recommendations on key trends, competitive activity, and general marketplace activity;
• Overcoming problems and finding satisfactory customer resolution;
• Assisting in the facilitation of corporate projects and initiatives including, but not limited to, new products, pricing, promotions, and training programs.

Requirements:

• Key Account management: the ability to provide input into new category ideas or solutions. Also able to solicit and understand Customer feedback and make appropriate recommendations to further increase penetration, sales and profitability.
• Current or past successes in a retail national accounts role.
• Possess the skill set to analyze product category for competitive positioning and marketing or promotional opportunities.
• Resourceful; innovative, can find information when the answer is not known.
• Self-driven, competitive, team oriented, wants to be the “Category Captain”.

This is an excellent career opportunity with a market leader in a collaborative, cohesive environment. Interested? Please forward your resume quoting NAM-Toronto to resumes@wolfgugler.com. Please note all responses will be forwarded directly to our client for their review and action. If there are any companies that you do not wish your resume forwarded to, please indicate those in your email and we will exclude your application.

Wolf Gugler Confidential Recruitment Advertising, a division of Wolf Gugler Executive Search. www.wolfgugler.com. 888-848-3006. Offices in Canada and the U.S.

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June 9, 2014 Volume

xx, #23

“And we should consider every day lost on which we have not danced at least once. And we should call every truth false which was not accompanied by at least one laugh.” —Friedrich Nietzsche (German philosopher, author and poet, 1844-1900 )

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Home Hardware & RONA: getting more selective about recruitment

SPECIAL REPORT — The top executives from two of Canada’s largest home improvement banners may be heated competitors, but they agree on one point: the nature of dealer recruitment is changing. HARDLINES spoke recently with both Terry Davis, CEO of Home Hardware Stores Limited, and Luc Rodier, senior vice president of RONA inc. Both execs had a similar message about the recruitment—and defection—of dealers.

For Davis, the challenge in many markets is the sheer popularity of the Home banner. That’s why efforts to enter new markets are often aimed at an existing dealer. “We’re not just pushing another store into a market, but we talk to the incumbent and convert them,” Davis says.

RONA has faced the departure of a number of independent dealers over the past year, in light of the uncertainty that company went through during its first year under new executive leadership. “Yes, a number of dealers have gone to other banners, and that’s all part of the dynamic of the market,” Rodier admits. But he adds that RONA’s recruitment policy is much more strategic these days—to the point that many of the dealers who leave reflect a conscious decision by RONA not to retain them.

“Not all dealers are a fit for RONA,” he says.

For both Davis and Rodier, the goal of recruitment today appears to be maintaining a dealer base that conforms best to the ideals and philosophy of each company. “We really want to make sure the Home Hardware brand is well represented in the market and we’ve made the decision with some dealers that they are not the right fit for us,” Davis points out.

Rodier concurs. “That’s probably the biggest change for the company—to work with the dealers we’ve got and make them more profitable.”

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Federated Co-op expands football merchandise for 2014 season

(Left image) Calgary Stampeder Jon Cornish autographs boxes of cereal at the Stampeders’ Fanfest at McMahon Stadium. Cornish is featured on “Cornish Flakes” and “RB-Q Chips” as part of FCL’s Stampeders Game Day Approved product line, benefitting the Alberta Children’s Hospital Foundation.

SASKATOON — Federated Co-operatives Ltd. is carrying a range of football-themed products this season, thanks to expanded licensing agreements with Western teams in the Canadian Football League.

Saskatchewan Roughriders slotback Chris Getzlaf and quarterback Darian Durant (right image) will headline the Riders’ Co-op Game Day Approved roster with “Chris-py Dill Chips” and “Darian’s Quarterback Quench Sports Drink.” Riders’ Co-op products for 2014 include a bar fridge, hard hat, lounge chair, food cooler, and energy drink.

FCL also has Game Day Approved products with the Winnipeg Blue Bombers, the Edmonton Eskimos, and Calgary Stampeders. Co-branded food and merchandise will be sold at Co-op locations in all four markets.

A portion of sales from Game Day Approved products will be donated to local children’s hospital foundations in the three Prairie Provinces. A total of $416,000 has been raised since the partnership began in 2010.

(Please note: HARDLINES has yet to receive samples for any of the snacks mentioned above, therefore, cannot comment on taste or quality of these great sounding products.)

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Chalifour’s top paint and décor buyer shares secrets of getting listed

TORONTO — How to get a meeting with a Chalifour buyer? Ask Catherine Vaugh. She is the category manager for paint and décor at Chalifour Canada. Her company, which is owned by TIM-BR MART Group, is a full-line national hardware wholesaler that ships to 700-plus independents across Canada, including Ace, Pro, and TIM-BR MART dealers.

As part of the hardware buying group Spancan, Chalifour also supplies members of the Independent Lumber Dealers Co-operative (ILDC) and Federated Co-operatives Ltd. But that means that new hardware products are viewed by Spancan, as well. And the focus is on relevance.

“Ask yourself, ‘Will it really help our customer.’ It’s really important that vendors bring a relevant product with a relevant program,” Vaugh says.

Chalifour’s category managers are charged with product selection, but also with merchandising, including flyers and online marketing.

When a vendor gets to that all-important buying meeting, they have to be able to present a business case for their product, and let the Chalifour buyer see financials. Focusing on relevance again, a vendor should be prepared to get challenged on how much demand there actually might be for the product.

Here’s what Vaugh says Chalifour is looking for from a vendor:

• Retailer Partnerships. “We’re interested in the success of our dealers and we want vendors who are, too.”
• DC/SupplyChain. “We expect a level of service to support our five Chalifour distribution centres nationwide.”
• Branding & Packaging. “We will help you along the path to getting your product launched in the Canadian marketplace, including translation, etc.”
• Code Compliance. “All our products must adhere to government standards and CSA requirements.”
• EDI. “Important, but not essential.”
• Product Differentiation. “There needs to be uniqueness—and exclusivity is good, too.”
• Research & Analysis. “We want to make sure you’ve done your homework.”

Finally, she stresses the importance of vendors bringing full assortments. “We don’t want to be ‘single-SKU Sally.’ We don’t want our customers to cherry-pick our lines. So planograms are important,” Vaugh adds.

(To watch Catherine Vaugh at our latest Meet the Buyers Breakfast, click here for a four-minute video with tips on how to do business with Chalifour Canada! —Michael)

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Home Depot prepares to roll out customer order system

ATLANTA — Home Depot launched its first in-store implementation of its new customer order management system (OMS). According to executives, Home Depot will roll out the OMS across the U.S. by the end of the year.

The system “is designed for greater visibility and execution of special orders by our associates and a frictionless experience for our customers,” says Craig Menear, Home Depot’s president of U.S. retail. “When customers place an order they can understand the status of that order, including where it is in the process of manufacturing, and our associates will have visibility into store arrival so they can better answer consumers’ questions during that process,” Menear said.

In the past, to get an update on an order, a customer would have call the store. Under the new system, customers will be able to get that information in real time—by mobile or desktop, text, or email.

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Classified Ads

National distributor of wood, metal and automotive

machinery and accessories. Seeks an experienced

TERRITORY SALES REPRESENTATIVE

for British Columbia

Ideal career opportunity for an agg\ressive,

self-motivated individual with excellent interpersonal

and communication skills.

Please forward cover letter and resume to:

E-Mail: tfuller@kingcanada.com

back to top

______________________________________________________________________

Retail National Accounts Sales Manager, Toronto based

 A brand champion selling to home improvement retailers and mass merchants, this Canadian subsidiary is pursuing additional business and would be the perfect home for a sales driven, customer-intimate sales leader who wants responsibility for the strategic management of key Canadian national accounts. Specific duties will include:

• Development and management of senior level relationships with key retailer personnel including merchants, directors and buyers;
• Development and execution of a comprehensive plan to drive sales and profitability, including detailed tactics required to meet strategic objectives;
• Field analysis and recommendations on key trends, competitive activity, and general marketplace activity;
• Overcoming problems and finding satisfactory customer resolution;
• Assisting in the facilitation of corporate projects and initiatives including, but not limited to, new products, pricing, promotions, and training programs.

Requirements:

• Key Account management: the ability to provide input into new category ideas or solutions. Also able to solicit and understand Customer feedback and make appropriate recommendations to further increase penetration, sales and profitability.
• Current or past successes in a retail national accounts role.
• Possess the skill set to analyze product category for competitive positioning and marketing or promotional opportunities.
• Resourceful; innovative, can find information when the answer is not known.
• Self-driven, competitive, team oriented, wants to be the “Category Captain”.

This is an excellent career opportunity with a market leader in a collaborative, cohesive environment. Interested? Please forward your resume quoting NAM-Toronto to resumes@wolfgugler.com. Please note all responses will be forwarded directly to our client for their review and action. If there are any companies that you do not wish your resume forwarded to, please indicate those in your email and we will exclude your application.

Wolf Gugler Confidential Recruitment Advertising, a division of Wolf Gugler Executive Search. www.wolfgugler.com. 888-848-3006. Offices in Canada and the U.S.

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June 2, 2014 Volume

xx, #22

“The time is always right to do what is right.”

—Rev. Martin Luther King Jr.

(American, activist, humanitarian, and civil rights leader, 1929-68)

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Home Depot Canada previews Father’s Day specials

TORONTO – Last week, Home Depot hosted a Father’s Day themed event to preview a new approach to the holiday. As Home Depot continues to woo the two polarities of female shoppers and contractors, Father’s Day is an excuse for the retailer to get back to its core, serious DIY customers. The Father’s Day promotion, coined BYOG—Buy Your Own Gift—encourages dad to pick his own gift.

The event focused on four different types of gifts for dad: outdoor tools, grills, tools, and technology, with many products, including the tools, now on sale leading up to Father’s Day. In technology, many gadgets for the home were featured, including a Bluetooth radio and a Weiser deadbolt lock that is controlled through Bluetooth.

With the arrival of warm weather, there was an emphasis on grills, with a large range of options from small condo sized electric grills to barbecues with all the bells and whistles. (One model from Brinkmann even features five burners and a smoker.) Home Depot is also carrying Canadian made grills.

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Watch for Réno-Dépôt strategy to roll out in other provinces

BOUCHERVILLE, Que. — RONA spent most of last year re-focusing its Réno-Dépôt stores in Quebec on a more contractor-oriented product selection and customer. With early indications revealing positive results from the new concept, the company is now looking at how—and where—to expand the winning formula.

The company insists the Réno-Dépôt stores are working and all 16 stores will be completed by the end of June. From there, the company has plans to roll out aspects of the Réno-Dépôt strategy to other markets, but wouldn’t put a timeline on that expansion. Luc Rodier, executive vice president, retail for RONA, says, “We’ve been very pleased with the results so far,” countering the suggestion that the company has not talked enough about the new concept because it’s not matching expectations.

The first Réno-Dépôt conversion was in January and has been trending positive since the beginning, says Rodier. “We’re very, very pleased with the results so far. Pretty much everything we’ve touched is working,” he stresses, adding that core categories like plumbing and a new lighting department have been successes. “Customers are reacting very well to it.”

The stores have seen the re-introduction of products that had been abandoned in recent years. Seasonal has been strong, he says, and a wider selection here has resulted in good sales increases. “We’ve added more consumable, as well—cleaning supplies and paper products—and it’s adding to the basket.”

Now RONA is evaluating other markets to take the Réno-Dépôt concept to. Most likely it will start with Ontario, where its big-box stores have been under-performing in a number of major markets around the edges of the Greater Toronto Area and through Southwestern Ontario.

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Doug Keeling, Castle’s LBM buyer, share tips for vendors

TORONTO — Some of North America’s top buyers shared their secrets recently at a Hardlines “Meet the Buyers Breakfast.” Playing host to a roomful of hardware and home improvement vendors, the buyers explained how vendors should approach them and outlined how best to get prepared for that all-important first meeting. (See also our May 24 issue. —Editor)

Doug Keeling, buyer for LBM, floor coverings, and paint at Castle Building Centres Group, talked about the importance of working with vendors on behalf of the buying group’s dealer members. “It’s not about hammering out the best price. It’s about us partnering with a vendor to develop a relationship that increases our members’ profitability.”

Because of the regional sensitivities of commodity pricing, Keeling says his role focuses on programs, not price. “Our difference versus the other groups is that I don’t negotiate price. I’ll negotiate programs and try and get the best rebate possible for you, but you have to work hard with our dealers to deliver the best price.”

Because Castle has no warehousing of its own, he advised single-SKU vendors to go through distribution.

Click here to watch an excerpt of Doug’s presentation

at the Hardlines Meet The Buyers Breakfast Seminar!

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Do it Best gets first online-only member

LAS VEGAS — Bob Taylor, president and CEO of Do it Best Corp., the co-op dealer group based in Fort Wayne, Ind., shared an interesting fact during a recent discussion of the group’s growth.

Last year, Do it Best signed its first online member. The group allowed in an e-retailer that has no bricks-and-mortar presence. He sees further expansion of his traditional retailers into e-commerce, as well. “The opportunity on the retail side is very, very real, with the potential for bricks-and-mortar stores to do ship-to-store.” Dealers can reap a margin on the sale, with no inventory cost.

However, traditional retail has been slow to recover in the U.S. “I talk to many of our dealers, who report that their numbers are still not at the level they were at in 2008. But I ask them where they’ll be in five years, and they say they’re going to double their business in that time.”

Expect that online member to grow faster than that, however. At the end of the first quarter, “he was only up 83%.”

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ANALYSIS: U.S. retailers rethinking Canadian strategies

TORONTO — The abrupt departure of Target CEO Gregg Steinhafel is just the latest chapter in an unfolding story of the race by U.S. retailers to move into Canada. However, Steinfahel’s resignation came amidst fallout from a data breach at the company’s U.S. stores and, perhaps more significantly, over continued poor performance by its Canadian operation.

The news will demand major action from the company, analysts told Report on Business, including possible store closures. Some observers are even musing that the entire Canadian venture could be closed if it cannot make significant gains.

“I assume with a new CEO, everything will be on the table,” said Faye Landes of Cowen and Co. in New York.

Target isn’t the only retailer to have trouble translating its success south of the border into Canadian results, the Associated Press reports. Regulatory differences and, recently, a slower Canadian economy have made their impact on its rivals as well. Big Lots closed its 78 Canadian stores, citing heated competition in the bargain business. Best Buy also saw several closures, while even Walmart Canada’s sales have suffered. It just announced layoffs of some 750 people, including the removal of a layer of store managers. Nordstrom has delayed the introduction of its discount Rack banner until 2017.

A significant challenge is the cost-consciousness of Canadian shoppers, who are used to watching price changes over the border and have been disappointed by higher costs at Canadian locations of U.S. chains. In addition, the appeal of shopping during a cross-border expedition, or the fun factor related to shopping while on vacation, is missing from a routine visit to Cloverdale Mall to get clothes for the kids. The rules of retail are tougher in Canada, as some U.S. players are learning—the hard way.

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Classified Ads

Retail National Accounts Sales Manager, Toronto based

 A brand champion selling to home improvement retailers and mass merchants, this Canadian subsidiary is pursuing additional business and would be the perfect home for a sales driven, customer-intimate sales leader who wants responsibility for the strategic management of key Canadian national accounts. Specific duties will include:

• Development and management of senior level relationships with key retailer personnel including merchants, directors and buyers;
• Development and execution of a comprehensive plan to drive sales and profitability, including detailed tactics required to meet strategic objectives;
• Field analysis and recommendations on key trends, competitive activity, and general marketplace activity;
• Overcoming problems and finding satisfactory customer resolution;
• Assisting in the facilitation of corporate projects and initiatives including, but not limited to, new products, pricing, promotions, and training programs.

Requirements:

• Key Account management: the ability to provide input into new category ideas or solutions. Also able to solicit and understand Customer feedback and make appropriate recommendations to further increase penetration, sales and profitability.
• Current or past successes in a retail national accounts role.
• Possess the skill set to analyze product category for competitive positioning and marketing or promotional opportunities.
• Resourceful; innovative, can find information when the answer is not known.
• Self-driven, competitive, team oriented, wants to be the “Category Captain”.

This is an excellent career opportunity with a market leader in a collaborative, cohesive environment. Interested? Please forward your resume quoting NAM-Toronto to resumes@wolfgugler.com. Please note all responses will be forwarded directly to our client for their review and action. If there are any companies that you do not wish your resume forwarded to, please indicate those in your email and we will exclude your application.

Wolf Gugler Confidential Recruitment Advertising, a division of Wolf Gugler Executive Search. www.wolfgugler.com. 888-848-3006. Offices in Canada and the U.S.

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National Sales Manager

Taymor

We are positioning for our next level of growth and require an experienced National Sales Manager – Retail to drive our sales growth with retailers nationally.

The primary functions of this role are to Manage, Lead, and Develop our team of sales reps and agents nationally selling Doorware and Bathware though Canadian retailers, and to develop, qualify, and implement strategic and tactical selling plans for Doorware and Bathware though Canadian retailers. You have experience in managing, leading and developing a sales team selling to Canada’s leading home improvement retailers. For complete details and to apply, visit our website.

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Business Development Manager

Nova Scotia, New Brunswick
& Prince Edward Island

Castle Building Centres Group is an industry leader among Buying Groups in the Lumber and Building Materials segment in Canada. We are currently seeking to add a position in the Atlantic region.

You are a highly motivated individual with strong relationship and communication skills that can manage and develop our future growth in the Nova Scotia, New Brunswick and Prince Edward Island markets. This position requires an individual who is familiar with the Lumber and Building Supply industry, willing to travel, accustomed to working remote from Head Office and currently residing within the Maritimes.

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

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

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

Yvonne Patton

Castle Building Centres Group Ltd.

100 Milverton Drive, Suite 400

Mississauga, Ontario

L5R-4H1

E-mail: ypatton@castle.ca

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TORBSA is a Shareholder-owned Canadian Buying Group of independent building material dealers established in 1966. The Group’s focus is to offer the independent business, whether it is a Commercial or Specialty Dealer or Lumber Yard, a transparent, low-cost, and relationship driven choice. It is the Group’s collective buying power that allows us to develop, negotiate and facilitate opportunities to grow the Shareholders’ businesses.

Job Opportunity

Business Development Manager

Under the supervision of the General Manager, the Business Development Manager will be responsible for growing TORBSA Limited’s presence across the Canadian marketplace.  As the Business Development Manager, your duties will also include the facilitation of selected communications and job responsibilities, as outlined below:

Role

• Promote mission and values of the organization
• Solicit, establish, and maintain business relationships with prospective independent building material dealers to generate growth of the group across the Canadian marketplace
• Aid in the support of existing shareholders
• Research sources for developing prospective shareholders and further information to determine their potential
• Participate in trade shows and conventions related to the building or construction sectors
• Assist in the management of various marketing programs and special buys of products that are pooled purchases available to all member companies

Skills

• Undergraduate degree required – preference given to studies in engineering, sales & marketing
• 10 – 15 years of direct work experience in the building material supply sector
• Excellent organizational, strategic, planning and implementing skills that will benefit each member as well as the Group as a whole
• Strong presentation, communication and written skills are considered a valuable asset
• Ability to speak French is an asset
• Must be computer literate
• Ability to become proficient in the management and modification of the Group’s website
• Excellent negotiation skills are highly desired
• Knowledge of building materials and the building material industry is a strong asset
• Knowledge of buying groups and how they function in our marketplace essential
• Must possess a willingness to travel relevant to the growth aspirations of TORBSA
• Proven abilities to develop and maintain excellent internal and external relationships with the staff of TORBSA, the members of the Group and all vendors that make TORBSA the success it is

To Apply: Please forward current Resume and Cover Letter to cheryl@torbsa.com . Indicate Job Title in subject line.

We will accept resumes for this posting up to May 25th

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Fusion Products Limited

Inside Sales Support Associates

Fusion Products Ltd. is a leading supplier of solar garden lighting to the Canadian marketplace, with head office in Mississauga, Ontario. The company is seeking two positions: both are Inside Sales Support Associates. One position requires a bilingual (French and English) candidate, and the other position requires an English candidate—both preferably with experience in the hardware industry.

Each Inside Sales Support Associate will focus on Home Improvement retailers in specific regions to promote Fusion products, develop new business, support agents, provide product knowledge to retail associates and work industry trade shows. Must have proficiency in Microsoft office including power point. 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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May 26, 2014 Volume

xx, #21

“I thought I’d have some answers by now.”—Mark Oliver Everett (American singer and songwriter, leader of the rock band the Eels, 1963- )

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Tim Urquhart joins Slegg Lumber as general manager

VICTORIA — The former CEO of TIM-BR MART Group has joined Slegg Lumber & Construction Materials Ltd. as that company’s general manager.

Urquhart was formerly president and CEO of TIM-BR MART Group until his sudden departure last fall. Ron Slegg, one of the brothers who own Slegg Lumber, had been chairman of TIM-BR MART Group during most of Urquhart’s tenure. Slegg stepped down from the chairman position in February 2013, shortly after his company opened its 10th retail outlet. The company also has door and truss manufacturing, and a pre-hung door plant. Now Urquhart has been brought in to take over the day-to-day management of the company.

“It’s a great landing for me, because I worked directly for Ron in his role as chair at TIM-BR MART for nine and a half years” says Urquhart. “I’m thrilled to be working for him and taking the reins of this great company.” He has moved from Calgary to Victoria, close to Slegg’s head office in nearby Sidney.

Slegg Lumber is considered the largest dealer on Vancouver Island, and one of the largest dealers by sales volume in the TIM-BR MART organization.

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Lowe’s and Home Depot report varying Q1 results for Canada

MOORESVILLE, N.C. & ATLANTA — The world’s two largest home improvement retailers both turned out positive results for their first quarters. But they experienced varying results here in Canada.

The Home Depot reported first-quarter net earnings of $1.4 billion, or $1.00 per diluted share, compared with net earnings of $1.2 billion, or $0.83 per diluted share, in the same period of fiscal 2013. Diluted earnings per share increased 20.5% from the same period in the prior year.

“The first quarter was impacted by a slow start to the spring selling season. But we had solid results in non-weather impacted markets and expect our sales for the year to grow in line with the guidance we previously provided,” said Frank Blake, Home Depot’s chairman and CEO.

Lowe’s Cos. reported net earnings of $624 million for the quarter ended May 2, a 15.6% increase over the same period a year ago. Diluted earnings per share increased 24.5% to $0.61. Sales for the first quarter increased 2.4% to $13.4 billion from $13.1 billion a year ago, and same-store sales increased 0.9%.

Total sales for Home Depot for the first quarter of fiscal 2014 were $19.7 billion, a 2.9% increase that’s similar to Lowe’s results. Same-store sales for the first quarter were positive 2.6%, and same-store sales for its U.S. stores were positive 3.3%.

And while the long, cold winter that affected the entire industry through most of North America took its toll on most retailers, Home Depot’s numbers in Canada were lower than in the U.S., while Lowe’s comps surged.

HARDLINES estimates same-store sales growth for Home Depot Canada at less than 2%. “… [W]e expected more normal weather for this spring. Instead, much of the U.S. and Canada had an even colder spring and this had a significant impact on our sales,” said Blake.

Lowe’s business in Canada saw more positive growth, however. “I am pleased to share that our team in Canada delivered double-digit comps in local currency for the fourth consecutive quarter,” said Robert Niblock, Lowe’s chairman, president, and CEO.

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Superior Plus looking to sell off Construction Products Business

CALGARY — Since turning in its year-end results earlier this year, Superior Plus has decided to seek a buyer for its Construction Products Business. The division, which includes LBM wholesaler Winroc and the Allroc buying group, as well as a chain of ICI outlets in the U.S., accounts for about $74 million of the company’s $3.75 billion in total revenues.

While the business had enjoyed good growth prior to the worldwide recession in 2008, the purchase of Specialty Products & Insulation (SPI) in 2009, which became part of the same division as the Winroc business, may have provided the company with a low-cost acquisition, but that business was slow to recover during the slowdown south of the border. The slow recovery in Canada has hampered sales domestically as well. Superior has retained BMO Capital Markets as a financial advisor, and following a review, the company’s board “has authorized the commencement of a formal process to solicit and assess offers for the potential divestiture of Superior’s Construction Products Business.”

The division continued to stumble during the first quarter, ended March 31. Even though Superior Plus Corp. showed a profit of $276.6 million on sales of $1.28 billion. EBITDA for the Construction Products Business fell from $5.0 million last year to $4.5 million in the latest quarter. However, gross profit was higher than the prior year quarter due to improved average selling prices and higher average sales margins.

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RONA sets sights on dealer support, more possible acquisitions

BOUCHERVILLE, Que. — RONA’s high-profile properties such as Réno-Dépôt and Totem were considered the top priorities that needed fixing under the leadership of Robert Sawyer when he took over in late 2012. He had great pressure from his board to satisfy bottom-line concerns for the sake of investors, while the optics of RONA’s attitude to its independent dealers sent a chill throughout the industry.

Luc Rodier, executive vice president–retail, for RONA, defends the strategy, saying, “We needed to make dramatic changes to those banners to ensure the profitability was there.”

However, in recent months, the company has made great strides to pay more attention to its independents. A wholesale division was created that has resources committed solely to those independents. Buyers are working to develop programs that suit independents, not big boxes. Support programs, including flyers and merchandising terms, are being tailored separately for the big boxes, Réno-Dépôt, and its traditional building centre format, the proximity stores. Most of its independents fit into this category.

And RONA is flush with cash, with $25.6 million on hand at the end of the first quarter. “We always welcome looking at a potential acquisition—at the right value,” says Rodier. “RONA is in a very, very good position financially. But we’re going to be very careful and make the right acquisitions.”

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HARDLINES TV: What we saw at the National Hardware Show

LAS VEGAS — Yes, we saw all kinds of cool stuff—new products and crazy innovations, tons of buyers, agents and vendors from Canada—while walking the National Hardware Show recently. But with all the news going on back home, we haven’t had room to tell you about it in HARDLINES. So why not just click here and see for yourself what we discovered during our latest visit to Las Vegas?

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Rebound in U.S. will bolster Canada, says TD economist

TORONTO — The best news for Canada’s sluggish economy is the steady recovery taking place below the border. That was the central message from Craig Alexander, senior vice president and chief economist for TD, when he spoke recently at the annual general meeting of the Canadian Hardware and Housewares Manufacturers Association.

“I’m actually quite upbeat about the prospects in the U.S.,” he said, attributing this attitude to the burgeoning housing market, even though, he pointed out, prices are still depressed in some areas due to oversupply. He added that a tight fiscal policy by the Obama government kept the U.S. economy from springing back more quickly.

House prices are now within 10% of pre-recession levels, he said, and the energy sector (especially development of shale oil beds) is strong and expected to grow by 3% this year.

He offered some sobering thoughts on the state of the economy here at home, by comparison. “The Canadian economy is no longer outperforming the U.S. economy, so that advantage is gone.” He forecasts the Canadian dollar landing at 85-88 cents compared to the U.S. dollar.

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Classified Ads

Retail National Accounts Sales Manager, Toronto based

 A brand champion selling to home improvement retailers and mass merchants, this Canadian subsidiary is pursuing additional business and would be the perfect home for a sales driven, customer-intimate sales leader who wants responsibility for the strategic management of key Canadian national accounts. Specific duties will include:

• Development and management of senior level relationships with key retailer personnel including merchants, directors and buyers;
• Development and execution of a comprehensive plan to drive sales and profitability, including detailed tactics required to meet strategic objectives;
• Field analysis and recommendations on key trends, competitive activity, and general marketplace activity;
• Overcoming problems and finding satisfactory customer resolution;
• Assisting in the facilitation of corporate projects and initiatives including, but not limited to, new products, pricing, promotions, and training programs.

Requirements:

• Key Account management: the ability to provide input into new category ideas or solutions. Also able to solicit and understand Customer feedback and make appropriate recommendations to further increase penetration, sales and profitability.
• Current or past successes in a retail national accounts role.
• Possess the skill set to analyze product category for competitive positioning and marketing or promotional opportunities.
• Resourceful; innovative, can find information when the answer is not known.
• Self-driven, competitive, team oriented, wants to be the “Category Captain”.

This is an excellent career opportunity with a market leader in a collaborative, cohesive environment. Interested? Please forward your resume quoting NAM-Toronto to resumes@wolfgugler.com. Please note all responses will be forwarded directly to our client for their review and action. If there are any companies that you do not wish your resume forwarded to, please indicate those in your email and we will exclude your application.

Wolf Gugler Confidential Recruitment Advertising, a division of Wolf Gugler Executive Search. www.wolfgugler.com. 888-848-3006. Offices in Canada and the U.S.

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______________________________________________________________________

National Sales Manager

Taymor

We are positioning for our next level of growth and require an experienced National Sales Manager – Retail to drive our sales growth with retailers nationally.

The primary functions of this role are to Manage, Lead, and Develop our team of sales reps and agents nationally selling Doorware and Bathware though Canadian retailers, and to develop, qualify, and implement strategic and tactical selling plans for Doorware and Bathware though Canadian retailers. You have experience in managing, leading and developing a sales team selling to Canada’s leading home improvement retailers. For complete details and to apply, visit our website.

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______________________________________________________________________

Business Development Manager

Nova Scotia, New Brunswick
& Prince Edward Island

Castle Building Centres Group is an industry leader among Buying Groups in the Lumber and Building Materials segment in Canada. We are currently seeking to add a position in the Atlantic region.

You are a highly motivated individual with strong relationship and communication skills that can manage and develop our future growth in the Nova Scotia, New Brunswick and Prince Edward Island markets. This position requires an individual who is familiar with the Lumber and Building Supply industry, willing to travel, accustomed to working remote from Head Office and currently residing within the Maritimes.

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

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

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

Yvonne Patton

Castle Building Centres Group Ltd.

100 Milverton Drive, Suite 400

Mississauga, Ontario

L5R-4H1

E-mail: ypatton@castle.ca

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______________________________________________________________________

TORBSA is a Shareholder-owned Canadian Buying Group of independent building material dealers established in 1966. The Group’s focus is to offer the independent business, whether it is a Commercial or Specialty Dealer or Lumber Yard, a transparent, low-cost, and relationship driven choice. It is the Group’s collective buying power that allows us to develop, negotiate and facilitate opportunities to grow the Shareholders’ businesses.

Job Opportunity

Business Development Manager

Under the supervision of the General Manager, the Business Development Manager will be responsible for growing TORBSA Limited’s presence across the Canadian marketplace.  As the Business Development Manager, your duties will also include the facilitation of selected communications and job responsibilities, as outlined below:

Role

• Promote mission and values of the organization
• Solicit, establish, and maintain business relationships with prospective independent building material dealers to generate growth of the group across the Canadian marketplace
• Aid in the support of existing shareholders
• Research sources for developing prospective shareholders and further information to determine their potential
• Participate in trade shows and conventions related to the building or construction sectors
• Assist in the management of various marketing programs and special buys of products that are pooled purchases available to all member companies

Skills

• Undergraduate degree required – preference given to studies in engineering, sales & marketing
• 10 – 15 years of direct work experience in the building material supply sector
• Excellent organizational, strategic, planning and implementing skills that will benefit each member as well as the Group as a whole
• Strong presentation, communication and written skills are considered a valuable asset
• Ability to speak French is an asset
• Must be computer literate
• Ability to become proficient in the management and modification of the Group’s website
• Excellent negotiation skills are highly desired
• Knowledge of building materials and the building material industry is a strong asset
• Knowledge of buying groups and how they function in our marketplace essential
• Must possess a willingness to travel relevant to the growth aspirations of TORBSA
• Proven abilities to develop and maintain excellent internal and external relationships with the staff of TORBSA, the members of the Group and all vendors that make TORBSA the success it is

To Apply: Please forward current Resume and Cover Letter to cheryl@torbsa.com . Indicate Job Title in subject line.

We will accept resumes for this posting up to May 25th

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Fusion Products Limited

Inside Sales Support Associates

Fusion Products Ltd. is a leading supplier of solar garden lighting to the Canadian marketplace, with head office in Mississauga, Ontario. The company is seeking two positions: both are Inside Sales Support Associates. One position requires a bilingual (French and English) candidate, and the other position requires an English candidate—both preferably with experience in the hardware industry.

Each Inside Sales Support Associate will focus on Home Improvement retailers in specific regions to promote Fusion products, develop new business, support agents, provide product knowledge to retail associates and work industry trade shows. Must have proficiency in Microsoft office including power point. 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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May 19, 2014 Volume

xx, #20

“Men and nations behave wisely when they have exhausted all other resources.” — Abba Eban (Israeli politician and diplomat, 1915-2002)

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RONA posts Q1 losses, banks on success of new-look Réno-Dépôt

BOUCHERVILLE, Que. — Store closures and the renovation of 11 Réno-Dépôt outlets contributed to a drop in revenues for RONA, with consolidated revenues of $764.3 million down 8.2% from $832.9 million for the first quarter of 2013.

The decrease primarily reflects the closure of underperforming stores, harsher weather conditions that had a negative impact on stores that sell building materials in Quebec and Ontario, and more difficult conditions in the industry as a whole stemming mainly from a decline in housing starts across the country. Sales were also affected by major renovations at Réno-Dépôt stores as that banner was re-positioned during 2013.

These factors contributed to a 4% decrease in same-store sales in the first quarter.

RONA achieved cost-savings of $23.7 million through lowered selling, general and administrative expenses, and the positive impact of closing the underperforming stores, which helped to narrow RONA’s losses and boost adjusted EBITDA, which totalled $10.0 million, or 1.3% of revenues, compared to $1.6 million, or 0.2% of revenues in the first quarter of 2013.

RONA bought back $23 million in shares in the first quarter, and has been authorized to purchase up to 8,578,384 additional shares by November 17, 2014.

The re-positioning of the Réno-Dépôt stores is another strategy that appears to be working. “We are encouraged by the initial change in the trend of sales observed in the newly renovated Réno-Dépôt stores,” said Robert Sawyer, president and CEO of RONA in a release.

“Given these positive indicators, we have accelerated the repositioning of this banner. To date, 11 stores have been fully renovated under the new concept and we expect to complete all 16 Reno-Depot stores by the end of the second quarter of 2014.”

From there, the company has plans to roll out aspects of the Réno-Dépôt strategy to other markets, but wouldn’t put a timeline on that expansion. “It’s a different concept from our competitors and we’re anxious to go outside of Quebec,” said Dominique Boies, CFO of RONA.

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Chalifour Canada wins JDA planogram award

LONDON, Ont. — Chalifour Canada has won JDA Software Group’s 2014 Real Results Award for best in Space and Category Management. Nine companies that used JDA’s software to achieve “industry-leading results and business-process excellence” were honoured at JDA’s 24th annual global conference in Las Vegas, April 27-30.

“By partnering with JDA to transform our space planning processes, Chalifour Canada created more than 330 dynamic planograms across three departments,” said Rob Brown, Chalifour Canada’s planogram specialist. As a result, Chalifour Canada gained market share nationally and increased its in-store footprint by 120%, while delivering a 200% increase in planogram sales over the past three years.

“We are honoured to have been selected from among JDA’s more than 4,000 global customers and represent companies that have the best supply chain success stories. Providing the optimal solution for our dealers is key to our growth,” said Andrew Pantelides, Chalifour Canada’s procurement and merchandising manager, shown here (l) with Rob Brown.

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LP’s attempted takeover of Ainsworth stalls

VANCOUVER — Following months of trying to satisfy anti-competition bureaus on both sides of the border, Louisiana-Pacific Corporation’s attempted acquisition of Ainsworth Lumber Co. Ltd. has stalled. That, despite approval of the $1.1 billion deal by the Supreme Court of British Columbia on October 31, 2013.

Since announcing the intended deal in September 2013, LP and Ainsworth have been in regular contact with the United States Department of Justice and the Canadian Competition Bureau with respect to antitrust and competition matters. To help facilitate the process, LP and Ainsworth have provided the CCB and DOJ with “significant amounts of information and analysis and met with them on multiple occasions,” according to a release.

However, both the CCB and DOJ have indicated they are unwilling to permit the transaction to be completed without further divestitures of both LP and Ainsworth assets that go beyond the framework of the original deal.

Although LP and Ainsworth continue to explore possible solutions and alternatives, Ainsworth is in fact considering litigation against the CCB and/or DOJ.

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Homebuyer preferences a big theme at NRHA Conference

LAS VEGAS — An integral part of the National Hardware Show again this year was the North American Retail Hardware Association’s All-Industry Conference. This educational program featured ongoing presentations at the “NRHA Village Stage,” situated at the front entrance of the show at the Las Vegas Convention Centre. A number of topics addressed consumer trends in home buying.

In the “Millennial Home Buying Preferences” keynote presentation, Jill Waage, editorial director for home content for Better Homes and Gardens, says millennials are coming to market armed with knowledge and a sense of personal style aesthetic, but they still need retailers to give them guidance through the process.

Additionally, Waage noted millennials’ creative urgency is what sets them apart from other generations. They are also tech-savvy and ready to purchase when they’ve made up their minds on projects: According to a 2013 Gfk Roper study, 74% of millennials who use apps and 68% who use social networks to get ideas about home improvement plan to do home redecorating this year.

“Retailers and other members of the home improvement industry have the opportunity to collaborate on their wish list and goals,” she says. “Will you be their collaborators on their paths to purchase?”

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EXCLUSIVE: Can RONA demonstrate its commitment to independents?

Luc Rodier, senior vice president of RONA inc., admits that getting the new executive team at his company to focus more on its independent dealers was “just a matter of priority.”

When Robert Sawyer took over from long-time CEO Robert Dutton back in the fall of 2012, he came hot on the heels of an unsuccessful takeover bid by Lowe’s Cos. He found himself defending the company against the criticisms and scrutiny of analysts and investors. Putting out fires on Bay Street meant a lot of RONA’s strong dealer base were feeling neglected and disenfranchised.

On top of that, a number of those dealers were coming to the end of the 10-year agreements RONA forged with them when it went on a recruitment spree outside of Quebec beginning around 2003.

Rodier admits that a number of dealers have left over the past 18 months. “Yes, a number of dealers have gone to other banners, and that’s all part of the dynamic of the market.” But he makes an important point to distinguish RONA’s recruitment strategy from the heady days of pell-mell expansion that typified the company pre-2008. The company in fact made a conscious decision not to attempt to retain many of them. “Not all dealers are a fit for RONA.”

He says the company wants to serve a wide range of dealers, as long as they are a good fit. “We can’t sell what we are not,” he stresses. “We can’t be everything for everybody. Part of a good banner strategy is knowing what you can be the best at.” He says the company wants to serve a wide range of dealers and notes that certain dealers are a very good fit. He also says that not all the dealers that went elsewhere to kick tires stayed away. “Many people saw RONA dealers at, say, the last Orgill show but some of those dealers came back and said, ‘It’s not for us.’ That’s probably the biggest change for the company—to work with the dealers we’ve got and make them more profitable.”

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Dealers show willingness to keep investing in RONA

BOUCHERVILLE, Que. — RONA’s strategy to align itself with like-minded independents (see previous story —Editor) is definitely resonating with some dealers. A new dealer location in Pincourt, Que., will open September 3, representing an $18 million investment by dealer Richard Allard. Allard, who currently operates a RONA proximity store in nearby Ile-Perrot, will be doubling his selling space with the opening of the 82,000-square-foot Pincourt store.

The Turcott Group, which already owns a number of RONA stores in the Capital Region, bought a RONA corporate store in Stittsville, Ont., back in March. The 12,000-square-foot location allows the group to expand its operations outside the Ottawa-Gatineau area.

And Glacier Building Supplies Ltd., which operates a RONA-affiliated building supply and garden centre in Revelstoke, B.C., also expanded its operations in March by acquiring the 20,000-square-foot RONA corporate store in Salmon Arm. Lawrie Shears, director of operations for Glacier Building Supplies, said, “We have extensive plans to upgrade the Salmon Arm premises and business operations and are looking forward to offering our customers a new level of service, commitment, and excellence that is the hallmark of the RONA brand.”

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Classified Ads

TORBSA is a Shareholder-owned Canadian Buying Group of independent building material dealers established in 1966. The Group’s focus is to offer the independent business, whether it is a Commercial or Specialty Dealer or Lumber Yard, a transparent, low-cost, and relationship driven choice. It is the Group’s collective buying power that allows us to develop, negotiate and facilitate opportunities to grow the Shareholders’ businesses.

Job Opportunity

Business Development Manager

Under the supervision of the General Manager, the Business Development Manager will be responsible for growing TORBSA Limited’s presence across the Canadian marketplace.  As the Business Development Manager, your duties will also include the facilitation of selected communications and job responsibilities, as outlined below:

Role

• Promote mission and values of the organization
• Solicit, establish, and maintain business relationships with prospective independent building material dealers to generate growth of the group across the Canadian marketplace
• Aid in the support of existing shareholders
• Research sources for developing prospective shareholders and further information to determine their potential
• Participate in trade shows and conventions related to the building or construction sectors
• Assist in the management of various marketing programs and special buys of products that are pooled purchases available to all member companies

Skills

• Undergraduate degree required – preference given to studies in engineering, sales & marketing
• 10 – 15 years of direct work experience in the building material supply sector
• Excellent organizational, strategic, planning and implementing skills that will benefit each member as well as the Group as a whole
• Strong presentation, communication and written skills are considered a valuable asset
• Ability to speak French is an asset
• Must be computer literate
• Ability to become proficient in the management and modification of the Group’s website
• Excellent negotiation skills are highly desired
• Knowledge of building materials and the building material industry is a strong asset
• Knowledge of buying groups and how they function in our marketplace essential
• Must possess a willingness to travel relevant to the growth aspirations of TORBSA
• Proven abilities to develop and maintain excellent internal and external relationships with the staff of TORBSA, the members of the Group and all vendors that make TORBSA the success it is

To Apply: Please forward current Resume and Cover Letter to cheryl@torbsa.com . Indicate Job Title in subject line.

We will accept resumes for this posting up to May 25th

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Fusion Products Limited

Inside Sales Support Associates

Fusion Products Ltd. is a leading supplier of solar garden lighting to the Canadian marketplace, with head office in Mississauga, Ontario. The company is seeking two positions: both are Inside Sales Support Associates. One position requires a bilingual (French and English) candidate, and the other position requires an English candidate—both preferably with experience in the hardware industry.

Each Inside Sales Support Associate will focus on Home Improvement retailers in specific regions to promote Fusion products, develop new business, support agents, provide product knowledge to retail associates and work industry trade shows. Must have proficiency in Microsoft office including power point. 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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May 12, 2014 Volume

xx, #19

“The man who works and is not bored is never old.”

—Pablo Casals (Spanish cellist, conductor and composer, 1876-1973)

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National Hardware Show attracts Canucks in force

LAS VEGAS — While the recovery in the U.S. remains tentative, the prevailing mood at the National Hardware Show was decidedly positive. And while attendees may disagree on just how strong the attendance was overall compared with last year, exhibitors HARDLINES spoke with have reported staying busy.

The show certainly attracted a strong contingent of Canadians. While many were exhibiting, many more are walking the show, either as reps supporting their existing lines or in search of new ones. Buyers, including the likes of Home Depot Canada, BMR, and Canadian Tire, were also present in large numbers.

“The traffic has been fantastic,” says Bob Shaw, vice president of sales and marketing for Nour Painting Tools in Waterloo, Ont. “All the buyers are here. You can’t ask for anything more.” But the show isn’t just good for meeting his Canadian contacts. “This show is probably the best vehicle for our U.S. business,” he adds.

Martin Verret, general sales manager for Candiac, Que.-based Techniseal, was at the show for the first time, walking the aisles as a visitor. “I like the show. I like the design, with the booths separated by category.”

He also found the critical mass of the show overall worthwhile. “It has created a good opportunity to have a conversation with the buyers. It has an easy flow—and Techniseal will have to be here [as an exhibitor] next year.”

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Home Hardware dealer wins NRHA Young Retailer award

LAS VEGAS — A Canadian dealer was among the winners at last week’s Young Retailer of the Year Awards ceremony. The awards are presented annually by the North American Retail Hardware Association. Trevor Kowalchuk, dealer-owner of Brandon Home Hardware Building Centre in Brandon, Man., was one of six dealers and managers who were awarded.

Shown (l-r): Bill Ferguson, director of dealer services for Home Hardware Stores; Trevor Kowalchuk and his wife Kristi; and Brady Peever of NRHA Canada.

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Sexton keeps growing with seven new members

WINNIPEG — Sexton Group Ltd., the LBM buying group based here, has added seven new members to its ranks.

Sanbec Canada Inc. is the newest member in the province of Quebec, located in Laval. The family-owned business is a hardware wholesale distributor servicing the maintenance, repair, and operations industry. It was founded in 1977 by Jean-Pierre Lamoureux and now includes the involvement of the second generation.

Two members have joined in Ontario. Grant Drew Designer Stone Inc., in Canvan-Monaghan, and Stevenson Building Products in Roseneath. Grant Drew Designer Stone has been distributing brick and stone products in the Peterborough area for more than 15 years. Stevenson Building Products has been a family owned and operated business since 1979 and has expanded to include various types of residential and commercial exterior products and applications.

Located in Fort Simpson, N.W.T., Unity Store has filled a void in the area. Muaz Hassan started the business as a convenience-type store and has expanded the product range to include a complete assortment of hardware and building materials to service the Fort Simpson area.

In Alberta, Hard Rock Developments in Calgary is a concrete, construction tools, and supplies retailer. Kenroc Building Materials Co Ltd. just added two more locations in British Columbia with the acquisition of Commercial Construction Supply Ltd. in Kelowna and Kamloops.

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Vendors connect with key buyers at Hardlines Breakfast

TORONTO — No meeting is more sought after than the one with a key retail buyer. With that in mind, Hardlines held a “Meet the Buyers Breakfast” recently, playing host to a roomful of hardware and home improvement vendors eager to learn from the buyers themselves.

Bob Sherwood, former head merchant at Lowe’s Canada, led off the morning, giving the vendors in the room a prescient overview of the dynamics—and the expectations from both sides—during a negotiating meeting with a buyer. The other speakers were Doug Keeling, buyer for LBM, floor coverings, and paint at Castle Building Centres Group; Catherine Vaugh, category manager for paint and décor at Chalifour Canada; and Brett Hammers, senior vice president, merchandising and marketing for Orgill.

Sherwood started off the morning by reminding everyone that the outcome of the negotiations should benefit the end user. “The compass always points north—to the customer,” he emphasized. Faced today with a highly educated customer, vendors should be prepared to do the groundwork to present their products in a way that makes clear to the buyer what the benefits will be to that end user, “making sure they’re spending their money in the most efficient way.”

And while much is made of the pricing and terms, Sherwood reminded vendors not to lose sight of the merchandising marketing support to help get the product off the shelf and into customers’ hands. “A product can travel up to 18,000 kilometres to get from its source to distribution to the store. But don’t lose sight of the last 100 feet. It’s got to get past the cash register.”

(More insights from our “Meet the Buyers Breakfast” in future issues of HARDLINES! —Michael)

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Lowe’s develops partnership with in-store online info provider

MOORESVILLE, N.C. — Lowe’s is expanding its strategic partnership with Porch.com, an in-store resource to help homeowners find the right contractors and installers for projects not covered by Lowe’s current installation services.

The program is going to be rolled out to every Lowe’s store in the U.S.

“While we have already been able to help our customers with projects like installing flooring or remodeling a kitchen, our partnership with Porch means we can now guide customers to find help for nearly any home improvement service, from routine maintenance to dream projects,” said Jay Rebello, vice president new business development and corporate innovation at Lowe’s.

Porch was first introduced at Lowe’s stores in the Carolinas and the Seattle area in January. If a Lowe’s customer needs a professional for a service Lowe’s does not offer, such as handyman, painting, or landscaping services, employees can access the Porch network of pros on their mobile devices and in-store terminals to identify local providers. CEO Matt Ehrlichman calls it “a combination of Angie’s List, review sites, and Pinterest, a LinkedIn for the home.”

Porch’s network includes more than 1.5 million professionals and features insights on more than 100 million projects as well as advice and home management tools.

The partnership with Porch is the latest in a series of technology initiatives Lowe’s has introduced to enhance the in-store support that employees can offer customers, including equipping employees with iPhones to help customers access information, view how-to videos, or locate product in the store efficiently.

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Classified Ads

Fusion Products Limited

Inside Sales Support Associates

Fusion Products Ltd. is a leading supplier of solar garden lighting to the Canadian marketplace, with head office in Mississauga, Ontario. The company is seeking two positions: both are Inside Sales Support Associates. One position requires a bilingual (French and English) candidate, and the other position requires an English candidate—both preferably with experience in the hardware industry.

Each Inside Sales Support Associate will focus on Home Improvement retailers in specific regions to promote Fusion products, develop new business, support agents, provide product knowledge to retail associates and work industry trade shows. Must have proficiency in Microsoft office including power point. 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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May 5, 2014 Volume

xx, #18

“May you always be courageous, stand upright and be strong, may you stay forever young.” —Bob Dylan (American singer-songwriter, 1941-)

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Top retailers will be featured at this year’s Hardlines Conference

WORLD HQ, TORONTO — Canadian Tire, Federated Co-operatives Limited, and Castle Building Centres are just three of Canada’s leading home improvement groups that will be represented in the speaker lineup of the 19th Annual Hardlines Conference.

The conference is an annual gathering of retail dealers, buyers, and executives, as well as suppliers from across the country. A forum for showcasing the latest in retail and customer trends, it is also an important networking event.

Tony Steier took over late last year as the home and building supplies director at Federated Co-operatives Limited. He manages a business that does more than half a billion dollars in retail hardware and home improvement sales to hundreds of Co-op stores and ValuMaster dealers across the West, making it one of Canada’s top 20 home improvement retailers.

Vicki Hagel is the owner of Cook Street Castle Building Centre, and past chair of Castle’s board of directors. She will offer a “street-level” view of this industry as an independent dealer. Then, going from a local perspective to a national one, Greg Hicks, senior vice president, merchandising for Canadian Tire Corp., will give his valuable insights into the direction of Canada’s largest hardlines retailer.

This year’s “Profiles in Leadership” Series at the Conference will feature Paul Beeston, president and CEO of the Toronto Blue Jays baseball club.

The conference will also feature great ideas and cutting edge insights into this industry and the marketplace. Jo Rossman, editor at Retail Environments, the association for store design and planning, will present the latest in store image and design from around the world. Ted Tsiakopoulos, senior analyst for Canada Mortgage and Housing Corp., will offer a detailed look at housing starts for the months and years ahead.

The 19th Annual Hardlines Conference, which has been bringing together industry leaders from home improvement retailing for almost two decades, will be held in Toronto from October 22-23 at the Sheraton Toronto Airport Hotel and Conference Centre.

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TIM-BR MART demonstrates responsiveness with merger of shows

CALGARY — The announcement last week that TIM-BR MART Group would merge the Chalifour Canada Retailer Buying Expo with the TIM-BR MART National Buying Show has been widely met with industry approval. The combined event will be held February 20-21, 2015, in Toronto.

The move was made, says a release, “In response to dealer input,” but it will be a move well received by vendors, who are already beleaguered by a plethora of shows in the industry. “We believe that the industry—retailers and vendors alike—will welcome the merger of these two events,” said Randy Martin, VP business development.

The Chalifour Expo, a hardware buying show that is not restricted to TIM-BR MART member dealers, is the showcase for the buying group’s hardware wholesale business, Chalifour Canada. It has historically been held in Montreal in October. To replace that event, TIM-BR MART Group will hold a “virtual show” for customers and vendors that will showcase seasonal promotional buys and bookings. The company will release more details about the virtual show as they become available.

The TIM-BR MART Show puts an emphasis on building materials, although it has been adding more hardware each year and increasing the presence of lines from Chalifour, as well as private-label offerings from Ace Hardware, which is licensed in Canada by TIM-BR MART Group.

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Canadians are ready to start spending again: poll

TORONTO — A new survey reveals that four in 10 Canadian homeowners are planning some type of renovation this year, and they plan to spend more money on those projects.

The poll, conducted for CIBC by Nielsen, found that 40% of Canadian homeowners plan to renovate their home in the next 12 months, a figure comparable to last year’s findings, when 39% planned to make renovations. The average expenditure will be $19,754, up 29% from CIBC’s 2013 poll, when the average was $15,300.

The most popular project is “basic home maintenance,” selected by 57% of homeowners surveyed, followed by bathrooms (33%) and kitchens (32%). Other popular planned projects were replacing windows or doors (29%); landscaping (27%); and basement (23%).

While the national average planned expenditure is almost $20,000, the amount varies by region. The lowest expenditure will be in Atlantic Canada, where the average amount that will be spent is $12,691. The most money to be spent on renovations this year will be in British Columbia, where respondents said they would spend an average of $28,434.

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Israel pavilion promises innovation at Vegas show

SPECIAL REPORT — As we prepare to walk the National Hardware Show in Las Vegas tomorrow, one group has caught our eye: a pavilion from Israel.

According to Caroline Nave, business development manager, home and family products for the Israel Export & International Cooperation Institute, Israeli companies have a long history of innovation. “A tradition of innovation, marketplace awareness, and responsiveness to customer demands ranks high on the list,” she notes.

The country’s small size works to the benefit of these companies, she says. “The synergies uniquely available in a small country enable the rapid adoption of locally-developed technologies, helping the industry build modern production facilities and employ advanced design tools.” And, because the local market is small, Israeli manufacturers must succeed on the world market to achieve economies of scale.

A number of the companies exhibiting at the Israel pavilion are already experienced exporters. The other three are start-ups or new exporters, offering a first-to-market opportunity for Canadian agents and buyers.

Nave adds that the Canadian market is very important for the Israeli exporters in this category, and it’s one of the target markets of the Israel Export Institute. “We have been working at the Export Institute to promote the Israeli companies to the Canadian Market. We invite distributors, buyers, and reps to come and visit us .”

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ANALYSIS: Recent changes at TIM-BR MART bode well for the group

The consolidation of its two buying shows is just the latest, and perhaps the most dramatic, change made by TIM-BR MART Group recently. It follows on the heels of a range of recent appointments and promotions, which together give an indication of the giant buying group’s determination to recalibrate under the leadership of current president Bernie Owens.

Owens took over last fall, following the departure of former president and CEO Tim Urquhart. Urquhart’s performance came under scrutiny, driving the TIM-BR MART board to bring in a third-party forensic auditor to uncover “inconsistencies,” which resulted in Urquhart’s being asked to resign.

Before Urquhart’s final departure, he had been given paid leave of absence, during which time Michael Westrum, chairman of TIM-BR MART Group and a dealer-owner with four stores in Saskatchewan, stepped in as acting CEO. He handled day-to-day operations until Owens was hired. During the interim, TIM-BR MART lost its biggest member, WSB Titan Group in Vaughan, Ont., which consists of four giant gypsum supply dealers across the country and estimated annual sales in excess of $300 million.

Owens came over from the commodities wholesale side; he was previously vice president of building products for Certainteed Canada. His background gave him a solid footing from which to relate with the remaining GSDs in the TIM-BR MART fold.

More than a buying group. In doing this analysis of TIM-BR MART, we invited Owens to give his perspective. He started off by clarifying that TIM-BR MART is “much more than just a buying group.” He says the company is a business support network for independents across Canada. To create the necessary infrastructure for network, Owens began a series of decisive changes at the management level of the company.

Owens first brought over Mark Finucane from Certainteed to become vice-president-commercial. He was followed by Lou Valeriati, who joined from Jeld-Wen as vice-president of operations. And, while not formally announced, Randy Martin, who was promoted to vice president of operations in October 2013, has assumed a new title as VP for business development.

New dealer support team. Martin’s new role turned out to be part of a larger strategy to create a team of regional directors of member services (RDMS). “In order to enhance our support for our members and help them fully leverage our resources, we have restructured our organization to include a business development department and added regional directors of member services,” Owens explains.

This move will no doubt enhance TIM-BR MART Group’s connection with its dealer base, especially in light of all the changes that have been going on with the group. The new team consists of Dave Dingwell in Atlantic Canada, Phil Temple in Western Canada, and Daniel Rioux in Quebec. An RDMS for Ontario will be named soon.

Most recently, Eddie Durocher was promoted to national director of business development. He was formerly Quebec sales director. In his new role, Durocher will lead the sales team as a strategist for business growth. Based in Brossard, Que., Durocher will also report to Martin. (Rich Huisman, who was national director of sales for Chalifour, has moved to Roma Moulding Inc. as VP sales.)

“By realigning our team and moving key team members into the position of regional director of member services, we have placed experienced liaisons between our membership and Chalifour, vendors, and all internal resources—finance, marketing, merchandising, TBM Essentials, etc.,” Owens explains. “Members now have one point of contact, eliminating any confusion over who to talk to when in need of assistance.”

More changes to come? The changes reflect a company with many divisions—including buying group, hardware wholesaler, and retail services company—that is getting its house in order. While it has lost some dealers, both large and small, it is also making gains with new dealers, in all parts of the country. And by combining its shows, it promises to deliver more value to vendors who have complained of low attendance at the separate events.

If TIM-BR MART Group can continue to make changes—and stay committed to communicating those changes consistently to both dealers and vendors—it will remain a force to be reckoned with in Canada.

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Classified Ads

Fusion Products Limited

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. The company is seeking two positions: both are Inside Sales Support Associates. On position requires a bilingual (French and English) candidate, and the other position requires an English speaking candidate—both preferably with experience in the hardware industry.

Each Inside Sales Support Associate will focus on Home Improvement retailers in specific regions to promote Fusion products, develop new business, support agents, provide product knowledge to retail associates and work industry trade shows. 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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April 28, 2014 Volume

xx, #17

“Assumption is the mother of screwup.”

—Angela Donghia (American designer, 1935-85 )

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Home Depot stores become showrooms for online shoppers

TORONTO — Home Depot Canada has upgraded the merchandising in 56 of its stores to showcase some upscale products that are not even available to purchase in-store. The most significant addition to its lines for the spring season is a new line of patio furniture by Brown & Jordan, which has begun making a private-label line for Home Depot under its Hampton Bay brand. While the products are being showcased in bricks-and-mortar environments, they can only be bought online.

According to Aaron Jarosz, Home Depot’s senior merchant for seasonal, this is the first time the retailer is showing online exclusives in stores. Other products that are being showcased include storage sheds and barbecues.

“That online space has been growing and growing,” Jarosz adds. “Customers are getting accustomed to buying products online.”

Home Depot is offering home delivery of the large-cube items for $39.

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Made in Canada: does it matter?

SPECIAL REPORT — Waves of imports that have penetrated virtually every product category, not just in home improvement, but in every facet of consumer spending, apparently haven’t undermined the iconic status of “Made in Canada” in the minds of many consumers.

However, far fewer shoppers are actually putting their money where their mouths are when it comes to paying more for a product simply because its packaging bears a maple leaf.

“People vote with their pocketbooks,” observes David Webb, president of Quest Brands, which makes barricade tape, garden fencing, and meshes at its plant in London, Ont., but also brings in imports to balance its product mix and price-point offerings.

With access to products from around the world, price trumps national pride as often as not. This is true even on the professional side, where quality usually dictates sales. Home-improvement retailers of hardlines and building products, while not abandoning domestic suppliers, have continued to shift their inventories toward imports their stores can sell at higher margins and still accommodate the public’s demand for quality and low prices.

Still, domestic manufacturers believe that a “Made in Canada” stamp can help to cement that trust with a certain number of customers, especially after recent well publicized callbacks of defective imports. Indeed, several suppliers are expanding their production and distribution capacities in anticipation of future demand both in Canada and the United States.

(Excerpted from the special “Made in Canada” report that appears in the latest issue of our quarterly magazine, Hardlines Home Improvement Quarterly. HHIQ is being mailed now to more than 11,000 dealers and managers across the country. —Michael)

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FedEx outlets to appear in Home Hardware stores

ST. JACOBS, Ont. — Home Hardware Stores has unveiled a new partnership with courier company FedEx. FedEx Canada has inked a deal with Home Hardware which will allow it to set up full-service shipping centres in participating dealer-operators’ stores.

The FedEx “Authorized ShipCentres” will be rolled out across Canada in a series of implementation waves throughout the year, giving FedEx a major expansion of its own retail footprint.

The partnership is expected to work on a number of levels. With the increasing number of home-based businesses in the country, the potential placement of Fedex stores in up to 1,000-plus locations provides a convenient solution. More importantly, FedEx Express Canada had forecasted that 60% of Canadians did some form of online shopping during the 2013 holiday season. In order to meet that growing demand for online fulfillment, transportation companies are required to offer more local “points-of-access” options for drop-off and pick-up.

Customers coming in for Fedex services will also be good candidates for shopping for their hardware needs.

The program was actually introduced at Home Hardware’s Fall Market in September 2013, where the trial program was said to have attracted a lot of interest from the dealers.

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Don Sherwood to retire from Atlantic Association

MONCTON, N.B. — Don Sherwood, long-time president of the Atlantic Building Supply Dealers Association, has announced his plans to retire. The news becomes official at the ABSDA’s annual general meeting on May 8. “Definitely, I will be retiring and the transition will take place right after the meeting,” Sherwood says.

He joined the association, which today has 625 active members, in January 1998. He came over from the wholesale side, having served before that for 24 years as general manager of Coates Distributors.

The ABSDA board will begin a search for Sherwood’s replacement by June or July at the latest, with the expectation that a new president will be named by October. He says he doesn’t expect to stay on too long after that. “It won’t be a long parallel. Basically, I’d be on call until the [Atlantic Building Materials] show in the second week of February. “And,” he adds, “my swan song will be at the show.”

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RONA presents opportunities for vendors

BOUCHERVILLE, Que. — RONA is attempting to clarify its position with suppliers and to offer new opportunities for them to do business together.

According to Alain Brisebois, RONA’s executive vice president and chief commercial officer, who spoke to a group of vendors here earlier in the spring, the company is attempting to simplify doing business with each of its retail formats.

First, he said, RONA’s specialty big box chain in Quebec, Réno-Dépôt, has been re-merchandised, and each store standardized to a more conventional warehouse-style format, suited to contractors and heavy DIYers. That standardization goes right through to its product assortments. The individual stores, said Brisebois, will not be allowed to make their own decisions regarding assortment and merchandising. That function has been centralized to a dedicated Réno-Dépôt buying team.

The advantage, he said, is in maintaining a strong in-stock position on all items, and in being able to execute on category dominant flyer opportunities.

RONA has also been going through category reviews for all its stores, with a priority placed on plumbing. He promised the launch of a new retail category, as well.

RONA’s proximity stores will also get a makeover. SKUs in stores such as its Lansing RONA and Totem outlets will be realigned, reflecting a more regional mix.

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Don’t miss the Hardlines Meet The Buyers Seminar This Wednesday!

No meeting is more sought after—yet more dreaded—

than a face-to-face with a major buyer.

So who better to help you prepare for these meetings than the buyers themselves? At the Hardlines Meet the Buyer’s Breakfast, Canada’s leading hardware and home improvement buyers will explain to vendors what it takes to get listed in their stores.

FEATURING

• Bob Sherwood, Former Vice President Merchandising, Lowe’s Canada
• Doug Keeling, Buyer for LBM, Carpet & Floor Coverings, and Paint, Castle Building Centres Group Ltd.
• Catherine Vaugh, Category Manager for Paint & Décor, Chalifour Canada
• Brett Hammers, Sr. Vice President Merchandising and Marketing, Orgill

Each buyer will represent their respective merchandising teams to tell vendors first-hand what preparations they need to make and what expectations they should have when they sit down with someone from their buying team.

“Meet the Buyers” brings both sides together in a casual information session, with lots of networking time available to talk one-on-one with the buyers themselves.

2014 WHO’S WHO DIRECTORY LAUNCH

This event will coincide with the launch of our new 2014 edition of our annual Who’s Who directory. The Who’s Who lists over 75 of the top home improvement customers in Canada and features:

• Key buyers and their categories
• Key executives and management teams
• Number of stores owned or served and buying group affiliations
• Annual sales and key categories served
• Breakdown of customers by type
• Address, phone and fax, emails and websites

Pre-order your copy with your ticket to this event and you’ll save 50% off the regular price. And you can pick it up right at the event. For more information about the Who’s Who Directory click here.

EVENT DETAILS

Sheraton Toronto Airport Hotel and Conference Centre

801 Dixon Road, Toronto, ON.

April 30, 2014

Hot breakfast and registration: 8:00am

First speaker: 8:45am

Event end: 11:30am

PRICING:

EVENT ONLY

eNewsletter Subscriber: $119

Non Subscribers: $169

EVENT + WHO’S WHO DIRECTORY

eNewsletter Subscriber: ($119 + $99) $218

Non Subscribers: ($169 + $199) $368

CLICK HERE TO REGISTER NOW!

April 21, 2014 Volume

xx, #16

“Small opportunities are often the beginning of great enterprises.”

—Demosthenes (statesman and orator of Ancient Greece, 384–322 B.C.)

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Home Depot’s Rapid Deployment Centres will aid online sales

ATLANTA — To support inter-connected retail efforts, Home Depot has recently opened the first of three new direct fulfillment centres. Each facility will have capacity to hold as many as 100,000 SKUs for direct ship to customers. It’s part of the giant retailer’s strategy to combine online sales with bricks-and-mortar retail.

These facilities now expand capabilities to ship most orders the same day they are received.

The company also views its 2,000-plus retail locations across the U.S. as ideal “mini-distribution centres” for customers who can buy online. If they don’t want to have the product shipped directly to their homes, they can pick up their orders at their local Home Depot store.

As another part of its inter-connected strategy, Home Depot acquired Blinds.com at the beginning of 2014. Blinds.com is an online window coverings retailer. Home Depot expects not only to expand its window treatments offerings but to use the expertise within the newly acquired company to improve its own capabilities for selling more special-order products online.

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Home improvement execs make big salaries

SPECIAL REPORT — While various provinces, and all of America, debate the benefits of raising the minimum wage, executives at the top of many home improvement companies are collecting big paycheques.

Nolan Archibald, former executive chairman of Stanley Black & Decker, topped the list in 2013. He made $52.5 million before stepping down in March of last year. While he was well ahead of the boss at Lowe’s Cos., Robert Niblock’s total pay increased last year by more than 50%, to $18.7 million, from $12.1 million in 2012. The increase was due largely to a bigger stock grant and a bonus on top of his $1.2 million base salary.

By comparison, RONA CEO Robert Sawyer made $6.6 million in 2013—for nine months of work (he started at the beginning of April). His base salary was $605,000, with the rest in stocks, options, and other incentives. His predecessor, Robert Dutton, earned just $2 million in his last complete year there, 2011. However, Dutton received another $4.5 million upon his termination.

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Dealers will have lots to do at National Hardware Show

LAS VEGAS — The National Hardware Show will be held May 6-8 in Las Vegas. And the North American Retail Hardware Association’s All-Industry Conference, which will offer a free series of educational seminars and breakout sessions, will be co-located with it. For independent dealers, the combined events offer a range of opportunities to grow their business.

Most retailers who attend the show are looking for new products. It makes sense—hundreds of new products are set to be launched at this year’s show. The Inventor’s Spotlight area houses products from several categories, including Hardware & Tools, Housewares, and Plumbing & Electrical. And in the International Sourcing area, attendees can meet exhibitors and see products from more than 20 countries around the world.

The NRHA All-Industry Conference will offer a full slate of speakers. Mark Herbek, an Amazon specialist with the Cleveland Research Group, will share reports about Amazon’s continued growth. Jill Waage, editorial director of home content at Better Homes and Gardens, will discuss the Millennial generation’s home buying preferences, while David Crowe, chief economist at the National Association of Home Builders, will talk about the current state of the housing market. Pat Murphy, from the International Society of Social Media, will offer some insights for dealers on how to stay current with today’s technology and how it can help one’s marketing plans.

Dealers can also attend breakout sessions, where they can discuss in small groups specific elements of the business, such as NRHA’s newly updated Basic Training program.

The National Hardware Show is the place to network with fellow dealers from across North America. Adam Busscher, owner of Picton Home Hardware in Picton, Ont., found out first-hand when he attended last year. “The National Hardware Show offers a great opportunity to network with other independent retailers and suppliers,” he says. “There is no better show in North America or a better way to connect with suppliers and colleagues in the home improvement industry.”

The NRHA All-Industry Conference will be held May 6-8 at the Las Vegas Convention Centre. Attendance is free with registration with the National Hardware Show. (For more information, click here.)

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Exchange-A-Blade launches rebrand

VANCOUVER — Exchange-A-Blade, the manufacturer of exchangeable and environmentally sustainable power tool accessories, is announcing the change of its corporate name to EAB Tool Company Inc., and the marketing of its core line of exchangeable products under the brand name EAB.

The move is meant to hearken back to the company’s origins as a supplier and remanufacturer of exchangeable circular saw blades for the retail hardware and building supply markets, while better representing the breadth of its power tool accessories product line. With the announcement comes the launch of the rebranding of the company’s exchangeable EAB products, and its non-exchangeable products under the existing StaySharp name.

The rebrand encompasses all logos, graphics, product packaging and in-store displays and will be rolled out to retail dealers in Canada and the U.S. during 2014. “We’re very excited about the new EAB,” said founding president Rob Forbes, describing the step as “an evolution of the brand.”

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ANALYSIS: Lumber prices heading for a super-cycle?

A lumber “super-cycle” is a lengthy period of buoyant prices for lumber. For much of 2012 and 2013, there were predictions of a super-cycle, where demand would outstrip supply of lumber and the mills that were left (after years of mill closures) would reap the profits.

The super-cycle was first predicted in 2008, but a number of factors, including the global financial crisis have delayed its progress. The question is whether, with the U.S. housing market on the path to recovery, the global economy recovering, albeit slowly, and increasing exports to China, will the super-cycle occur this year, in the near future—or at all?

In Canada, there were other disasters affecting the lumber industry. The mountain pine beetle epidemic in British Columbia is a significant event in the trajectory of the Canadian forestry industry. The epidemic is an unprecedented forest-altering event: the most severe bark beetle infestation in North America. As of 2012, the epidemic had killed an estimated 710 million cubic metres of commercially valuable pine timber—53% of the pine in British Columbia. Furthermore, that devastation is predicted by the Government of British Columbia to grow to 58% by 2017, significantly decreasing the supply of timber available in that province.

On the other side of the country, Quebec has also enacted major restrictions on the allowable annual cut for softwood species. In 2005, the annual allowable cut of softwood species was decreased by 20-30%. In April 2013, this was reduced by another 10%. In the last decade, hundreds of mills have closed and the Quebec Ministry of Natural Resources estimates at least 15,000 jobs have been lost since 2005.

Overall, the devastation in the forest sector has led to the loss of 87,000 full-time jobs in Canada and 322,000 in the U.S. since 2005.

Additionally, hundreds of sawmills across North America have been closed and investment in sawmill technology has virtually stopped. With a devastated forestry sector across North America, many of those in the skilled trades have left the forestry industry for other sectors.

At the end of 2013, Wood Markets changed its forecast to a delayed super-cycle due to continued uncertainty in the U.S. economy. For much of 2013, lumber prices retreated, instead of growing exponentially as predicted. It is unclear where the forestry industry is headed but in the short-term a super-cycle seems unlikely.

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