September 9, 2013, Volume xix, #34

“Remember that time is money.”
— Benjamin Franklin (inventor, author and statesman, 1706-1790)

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RONA dealers unite to seek transparency, accountability

SPECIAL REPORT — A group of RONA dealers has banded together with the purpose of challenging RONA’s transparency and overall handling of its affiliate and franchise dealer relationships.

Some members of the RONA Merchants’ Association have been formalizing their concerns to RONA’s executive team. The RMA’s president and spokesperson is Martin Lacasse, a chartered accountant whose family owns RONA L’entrepôt stores in and around Gatineau, Que.

Some 50 Quebec members met on August 15 in Drummondville, Que., to hammer out their concerns around issues of transparency, accountability, pricing, and advertising funds. The group represented almost $1 billion in combined sales volume. Based on the concerns expressed in that meeting, the group sent a seven-page letter, signed by Lacasse, to RONA’s president and CEO, Robert Sawyer.

The concerns of the group centre around three areas. The first is accountability. On this point, the group is urging Sawyer and his team to set up joint merchant-management committees. “Our members want to become more involved and participate in making decisions regarding management, marketing, and establishing the strategic issues for the RONA stores,” says the letter.

Second, the group is asking for more transparency, especially as it relates to supply costs. The letter urges RONA to lower its costs to all its dealers, “to restore both their competitive edge against merchants from other buying groups and an acceptable margin of profit.” (Indeed, one of RONA’s initiatives in recent months has been working with vendors to establish better pricing, even though it means tighter margins, in order to keep its dealers competitive, as reported in these pages. —Editor)

That includes the dealer’s concern about advertising funds. Again, the RMA is seeking more information about how those funds are being used.

Finally, the group wants management to allow dealers to be more pro-active, by setting up a management committee for big-box dealers; a marketing committee to be involved in purchasing negotiations with existing suppliers; and a strategic issues committee that would get involved in negotiations with preferred suppliers, as well as marketing strategy including advertising funds.

A reading of the letter suggests that the goal of the RMA is not to challenge the RONA head office, but to encourage more partnership with the independent dealer base. Under the new executive direction of the company, some dealers are getting the impression that RONA’s focus is mainly on shareholders. While not necessarily the case (RONA has said repeatedly that it recognizes the importance of its independent dealers in weathering the tough economic climate since 2008), that perception has nevertheless become a leverage point for other banners as they try and recruit RONA dealers away. The dealers are aware of this threat, and are attempting to work together with management to head it off.

The conclusion of the letter to Robert Sawyer iterates that point: “This letter is therefore intended as a call to collaboration. We all have a common goal, reinvigorating the RONA group, and to do so as quickly as possible.”

BREAKING NEWS: Just before press time, HARDLINES learned of the formal response to the RMA’s letter, signed by RONA president and CEO Robert Sawyer. In that letter, Sawyer acknowledges the concerns of the dealers, especially in light of the transition the company is currently going through. He affirms that RONA is reviewing its mechanisms for communicating regularly with its dealers. He also expresses an openness to setting up committees, as requested by the RMA, “to help us fine-tune our strategy, measure how we are doing, and adjust our focus….”

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Castle Atlantic Buying Expo marks seven years

MISSISSAUGA, Ont. —  Castle Building Centres Group held its 7th Atlantic Buying Expo in St. John’s August 27-29. The event brought together Castle members from across Newfoundland and the Maritimes for three days of buying opportunities and vendor specials.

Expo specials during the full-day buying session were offered in Castle’s unique 10-minute rotational format, which has been likened to “speed dating.” Pallet buys were strong as Castle welcomed new and veteran vendor partners to the expo.

The event included social events and interaction with Castle staff, fellow Castle members, and vendor partners. Over 250 members and suppliers participated. Castle also used the event as a platform for re-introducing former Castle member Bob Delaney as new business development manager in Newfoundland.

Castle honoured two Newfoundland members celebrating 25 years with Castle. Castle president Ken Jenkins and Newfoundland board member Cluny Sheppard, who operates nine locations in Newfoundland, paid tribute to B&M Building Supplies of Seldom, Fogo Island; and James Randall and Sons of Bide Arm.

“The Castle Atlantic Buying Expo has evolved over the years into one of the most unique and anticipated regional events in our industry,” said Sandy Welsh, business development manager – Atlantic Region. “Year seven was no exception. This year was another overwhelming success.”

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CTR goes high-tech with in-store kiosk, location-based app

TORONTO — Canadian Tire has rolled out an interactive product locator with touch screens, being tested in its Meadowvale, Ont., store.

These fast-find devices are the result of efforts led by dealers, Canadian Tire’s IT, and store operations. Both customers and store employees can use them to find products.

The kiosk, from Jibestream Interactive Media, features a 42-inch touchscreen that can display video ads in real time based on product search parameters. Accompanying software provides full tracking and reporting for activity and trends.

Canadian Tire is also is testing a personalized location-based mobile shopping application capable of reading QR codes and sending instant promotions to shoppers’ smartphones. The personal mobile shopping app delivers location-specific offers and information to members that opt in to the service from Bee Media, the app provider.

(Excerpted from the Hardlines Executive Report, featuring a full analysis of the quarterly results and corporate initiatives of four major public companies: Home Depot, Lowe’s, RONA, and Canadian Tire. To get the full report, click here ! —Michael)

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Retailers say organized crime is on the rise

SPECIAL — A new report indicates that 93.5% of retailers in the U.S. say they have been victims of organized retail crime in the past year, down slightly from 96.0% in 2012. For the past three years, more than 90% of the retailers surveyed said they were victims of this type of crime, and eight in 10 say organized retail crime in the U.S. has increased over the past three years. The findings were part of the National Retail Federation’s ninth annual Organized Retail Crime Survey.

“We are extremely concerned by the organized patterns that are taking place in the retail industry right now as these crime gangs continue to find ways to manoeuvre the system,” said Rich Mellor, vice president of loss prevention for the NRF.

The likelihood of thieves resorting to violence to avoid being apprehended is also a concern among survey respondents: retailers say an average of two in 10 apprehensions led to some level of violence, up from 15.2% last year and 13.0% in 2011.

However, thanks to organized methods of communication between retailers and law enforcement, awareness among law enforcement officials is at an all-time high. According to the survey, nearly half of retailers say they believe law enforcement understands the complexity and severity of organized retail crime, up from 40.0% last year.

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Classified Ads

Wolf Gugler & Associates Sales & Marketing Career Opportunities:

Key Accounts Manager, Quebec

Open due to a promotion! Excellent opportunity for an experienced bilingual key accounts sales professional ready for a new challenge. Our client is well positioned in the hardware and building materials market selling to retailers and distributors. This position will develop, maintain and expand relationships with key accounts including head offices and affiliated branches in the LBM and dealer/distribution channel from Quebec to the east including Chalifour, Kent, Canac Marquis and Castle. Ensure sales plans are executed and revenue and profitability targets aligned with corporate goals are both achieved and surpassed. Manage and direct the sales process for these customers, working in conjunction with the Marketing team. Salary, bonus, company vehicle, RSP and excellent career development programs offered. Please quote KAM-Quebec when applying.

Market Segment Manager—GTA

One of a growing team, you’ll be responsible for functional areas such as:

• Driving growth & profitability by managing marketing strategies, product portfolio and product development. Understand industry trends and competitive market strategies.
• Product Planning
• Supporting the department in short and long term strategy planning
• Working with cross functional groups to channel new ideas into new directions
• Segment Research – provide detailed market information e.g. market size, drivers in the buying decision process, market trends and competitor review. Determine market requirements for current and future product development by conducting market research supported by customer visits, trade focus and product blueprinting data.

Comprehensive compensation package and career opportunities offered for the successful candidate. Please quote MSM—GTA when applying.

Sales Representative, SW Ontario

Canadian-owned Ontario based building products manufacturer selling worldwide but focused on their local market. Due to territory reorganization they’re seek a building materials sales professional to join a cohesive team in a very competitive market. Territory includes Windsor à Hamilton à St Catherines area. An ideal fit for a customer-focused professional possessing good knowledge of the local building material industry. Self driven and has a passion for sales to join a winning team. You’re based in Southwestern Ontario with an impressive sales record selling to building materials dealers and contractors.  Utilize the resources and support of a well-established Canadian owned organization; salary, bonus, car allowance and success tools including home office support and an in-house CRM will help you meet or surpass your goals. Please quote SW Sales Rep when responding.

Please call or email Wolf Gugler for a confidential exchange of information. You may also apply online at www.wolfgugler.com .

Wolf Gugler & Associates Limited, #DIY Talent Recruitment Experts for home improvement retailers and suppliers throughout North America. 888-848-3006.

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REGIONAL ACCOUNT MANAGER, WESTERN CANADA
M.L. CAMPBELL WOOD FINISHES BRAND
Division of The Sherwin-Williams Company
Position Location: CALGARY , AB or VANCOUVER, BC

A leading North American manufacturer for the wood finishing industry, M.L. Campbell www.mlcampbell.com has built a reputation of dependability and product excellence for over 90 years. As an exclusive manufacturer of wood coatings, the company is dedicated to supplying its customers with high performance finishes.

The successful Western Canada based candidate will provide Regional Account Management for the M.L. Campbell Wood Finishes Brand. This position is responsible for managing the M.L. Campbell sales, profit, and marketing efforts in Western Canada (BC, Alberta, Saskatchewan, and Manitoba). This position involves sales through a distribution network – these M.L. Campbell clients sell and service Cabinet Shops; Furniture Manufacturers; Architectural Millwork, Aerospace, and Marine applications; and other manufacturers of wood furnishings.

Position reports directly to the Canadian Business Director, Brantford, Ontario. Competitive salary + bonus, benefit package.

Black Eagle Executive Search is conducting this search on behalf of M.L. Campbell.

KEY COMPETENCIES

• Strong written and verbal English communication skills. Effective communication skills will be required for presentations to both small and large groups.
• Strong interpersonal skills with the proven ability to maintain and build relationships with customers, including new business acquisition and providing customer service.
• Proven track record of meeting and exceeding sales targets.
• Entrepreneurial, business development skills.
• Self-starter, able to work independently with minimal supervision.

KEY RESPONSIBILITIES:

• Developing distributor sales and technical skills.
• Developing and implementing training programs.
• Managing, organizing, and working trade shows.
• Implementing market growth programs to maintain and improve market share
• Developing, implementing, and working within a developed business plan
• Meeting P&L goals

KEY QUALIFICATIONS

• University Degree or equivalent work experience required.
• Minimum 3-5 years’ experience in sales management.
• Extensive travel is required with the ability to travel by all means of transportation
• Distribution experience preferred.
• Industrial paint and/or wood finishing, spray application experience required
• Ability to apply and demonstrate all wood coatings which includes the ability to work with applicable solvents.
• Understanding and demonstrated knowledge of product application including troubleshooting, application equipment set up, and application technique.
• Ability to use PC to communicate and to present and develop distribution programs and business plans utilizing programs such as Excel, Word, PowerPoint, Lotus Notes, etc.

Please submit résumé to Black Eagle Executive Search via email to Richard Simms at rsimms@blackeagle.ca 

Only candidates of interest will be contacted

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Resumés

Click here to view the resumés online

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September 2, 2013, Volume xix, #33

“The difference between literature and journalism is that journalism is unreadable and literature is unread.”— Oscar Wilde (British playwright and novelist, 1854-1900)

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TIM-BR MART: update on review of operations and leadership

CALGARY — Just over a month after TIM-BR MART Group’s board asked its two top executives to take a paid leave of absence, the company has provided further information on the status of CEO Tim Urquhart and executive vice president and COO Barb Hopper, indicating that Urquhart has left the company.

TIM-BR MART retained outside advisors to conduct an independent review of its operations following the departure of the pair on July 24. Now, according to TIM-BR MART in a release issued today, “That review has identified isolated instances of failure to adhere to corporate reporting structure and corporate governance. As a consequence, President and CEO Tim Urquhart has accepted the Company’s request for his resignation, which is effective immediately.

“… Barb Hopper remains on paid leave of absence,” the release continues. “Michael Westrum, Chair of TIM-BR MART Group’s Board of Directors, will continue to act as CEO on an interim basis with the support of the senior leadership team in managing the Company’s day-to-day operations.”

Urquhart shared this comment with HARDLINES: “it has been my pleasure to have worked with the TIM-BR MART team, the dealers, and the suppliers for these past 10 years. So much was accomplished during that time and I wish everyone continued success in the future.”

The TIM-BR MART release adds that the group will continue to enhance internal controls and efficiencies, while maintaining a commitment to growth and profitability for its members.

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Kent opens largest store in a decade

CHARLOTTETOWN — Kent Building Supplies’ new P.E.I. hub opened on Saturday, with a special focus on serving contractors and professional customers. The new outlet is more than three times larger than the current Charlottetown location, which the Irving family bought in 2005 as part of the takeover of Schurman Lumber.

That 100,000-square-foot outlet reportedly cost the retailer’s parent, J.D. Irving Ltd., $10 million. It brings to eight the number of big boxes (ranging from 85,000 and 100,000 square feet) that Kent operates, along with 34 smaller stores, in Atlantic Canada.

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Big-box chains boost earnings in second quarter

MOORESVILLE, NC & ATLANTA — The housing recovery is driving a comeback for home improvement retailers, who saw movement slow with the downturn in the housing market. Most recently, Home Depot’s positive quarterly reports were followed by the news that Lowe’s results were enjoying a similar upward trend.

But while Lowe’s may share in reaping the benefits of recovery, analysts believe it has a way to go before it can think of eclipsing its rival.

The housing recovery is good news for home improvement retailers across North America. But while Home Depot makes 35% of its sales to contractors and other professionals, only a quarter of Lowe’s sales are made to those buyers. Location also accounts for part of the gap, with Home Depot in more urban markets compared to Lowe’s. Now, however, Lowe’s is poised to enter more high-density markets following the acquisition of California’s Orchard Supply Hardware, which has smaller stores throughout that state. Until now, Lowe’s has considered its presence in the Golden State to be under-represented.

The world’s second-largest home improvement retailer turned strong results for its second quarter, reporting net earnings of $941 million, up 26% over the same period a year ago. Sales reached $15.7 billion, up 10.3% from $14.2 billion in 2012. Same-store sales were up a healthy 9.6% for the quarter as a late start to the summer picked up the lag from the first quarter—a trend matched by Home Depot. Outdoor categories were particularly strong for Lowe’s, but all product categories had comp sales of 5% or more. For the six-month period, sales were up 5.1% to $28.8 billion, while same-store sales year-to-date increased 4.6%.

Total customer transactions for Lowe’s picked up 5.3% and the average basket size increased 4.7% to $65.60. For the six-month year-to-date, net earnings increased 16.2% from the same period a year ago to $1.48 billion, and diluted earnings per share increased 27.1% to $1.36.

Home Depot’s $22.5 billion in sales represented an increase of 9.5% from last year’s Q2. Same-store sales rose 10.7% and diluted earnings were $1.24 per share. Once again, the effect of summer’s timing on Q1 paid off in Q2. Growth was positive in 98% of all markets and all merchandising categories exceeded expectations. The quarterly transaction count was a record high for the company’s history.

Though the company does not break out its Canadian results, Home Depot Canada enjoyed its seventh consecutive quarter of positive same-store sales.

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RONA to prune house brands

BOUCHERVILLE, QC — As RONA seeks to be more competitive, pricing is getting squeezed, putting pressure on margins. One of the best sources of a wider margin is typically private-label and proprietary, or house, brands. But these are getting reviewed as the retailer trims unprofitable units under its restructuring plans.

Since launching its first private-label offering in 1993, RONA has expanded the lines to 12, including RONA Eco, RONA Collection (paint), Vitalium (lawn fertilizers), along with the Asian-sourced Uberhaus and Haussmann brands.

The company reduced inventory by $47 million in the second quarter, and hopes to reduce it by a total of at least $100 million over time. According to RONA president and CEO Robert Sawyer during the company’s Q2 earnings call, “Most of our excess inventory is coming from Shanghai, which is a lot of a private label. So we are revisiting completely our approach and the way we buy, and the projection in terms of sell-through.”

Private brands account for about 28-30% of RONA’s penetration rate, which is RONA’s calculation of the percentage of sales by these products within their respective categories.

“In the past, the private label strategy was more about getting volumes,” Sawyer explained. “So now, we’re really looking at dollar contribution to the bottom line and this is what our private label should be doing—bringing incremental dollar margin—and that’s our focus.”

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Orgill Market sees increase in Canadian attendance

BOSTON — This year’s Orgill Fall Dealer Market saw a visible increase in the number of Canadian vendors and dealers in attendance. Even more striking was the number of Canadian flags in the vendors’ booths to represent Canadian-compliant goods; around 90% of the vendors carried Canadian-compliant merchandise.

Orgill started shipping to the Canadian market on a widespread basis three years ago and has seen exponential growth in an extremely short amount of time. This year alone, Orgill is expecting over $185 million in growth. Orgill claims it is fast reaching a point where it can offer a range of SKUs that rivals the inventories of domestic wholesalers. This type of growth has made the Orgill Market a compelling destination for more Canadians than ever.

Within the show, there were a number of “model” stores, fully merchandised with complete hardware assortments. These included two model hardware stores and a lumber and building materials model store. One of the model stores was the “Windsor Falls” store, a 12,000-square-foot showcase stocked with entirely Canadian-compliant products.

“The Windsor Falls store is the most impressive independent hardware store in Canada,” said James Jones, vice president of national marketing for Castle Building Centres Group Ltd. Castle was instrumental in facilitating Orgill’s entry into Canada, forging a hardware supply deal with the U.S. company when it first began its expansion here.

Jones, who insisted that dealers could increase their margins by buying through Orgill, added that Castle has had record purchases through Orgill, surpassing their purchases with any other hardware distributor.

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Classified Ads

Wolf Gugler & Associates Sales & Marketing Career Opportunities:

Key Accounts Manager, Quebec

Open due to a promotion! Excellent opportunity for an experienced bilingual key accounts sales professional ready for a new challenge. Our client is well positioned in the hardware and building materials market selling to retailers and distributors. This position will develop, maintain and expand relationships with key accounts including head offices and affiliated branches in the LBM and dealer/distribution channel from Quebec to the east including Chalifour, Kent, Canac Marquis and Castle. Ensure sales plans are executed and revenue and profitability targets aligned with corporate goals are both achieved and surpassed. Manage and direct the sales process for these customers, working in conjunction with the Marketing team. Salary, bonus, company vehicle, RSP and excellent career development programs offered. Please quote KAM-Quebec when applying.

Market Segment Manager—GTA

One of a growing team, you’ll be responsible for functional areas such as:

• Driving growth & profitability by managing marketing strategies, product portfolio and product development. Understand industry trends and competitive market strategies.
• Product Planning
• Supporting the department in short and long term strategy planning
• Working with cross functional groups to channel new ideas into new directions
• Segment Research – provide detailed market information e.g. market size, drivers in the buying decision process, market trends and competitor review. Determine market requirements for current and future product development by conducting market research supported by customer visits, trade focus and product blueprinting data.

Comprehensive compensation package and career opportunities offered for the successful candidate. Please quote MSM—GTA when applying.

Sales Representative, SW Ontario

Canadian-owned Ontario based building products manufacturer selling worldwide but focused on their local market. Due to territory reorganization they’re seek a building materials sales professional to join a cohesive team in a very competitive market. Territory includes Windsor à Hamilton à St Catherines area. An ideal fit for a customer-focused professional possessing good knowledge of the local building material industry. Self driven and has a passion for sales to join a winning team. You’re based in Southwestern Ontario with an impressive sales record selling to building materials dealers and contractors.  Utilize the resources and support of a well-established Canadian owned organization; salary, bonus, car allowance and success tools including home office support and an in-house CRM will help you meet or surpass your goals. Please quote SW Sales Rep when responding.

Please call or email Wolf Gugler for a confidential exchange of information. You may also apply online at www.wolfgugler.com .

Wolf Gugler & Associates Limited, #DIY Talent Recruitment Experts for home improvement retailers and suppliers throughout North America. 888-848-3006.

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REGIONAL ACCOUNT MANAGER, WESTERN CANADA
M.L. CAMPBELL WOOD FINISHES BRAND
Division of The Sherwin-Williams Company
Position Location: CALGARY , AB or VANCOUVER, BC

A leading North American manufacturer for the wood finishing industry, M.L. Campbell www.mlcampbell.com has built a reputation of dependability and product excellence for over 90 years. As an exclusive manufacturer of wood coatings, the company is dedicated to supplying its customers with high performance finishes.

The successful Western Canada based candidate will provide Regional Account Management for the M.L. Campbell Wood Finishes Brand. This position is responsible for managing the M.L. Campbell sales, profit, and marketing efforts in Western Canada (BC, Alberta, Saskatchewan, and Manitoba). This position involves sales through a distribution network – these M.L. Campbell clients sell and service Cabinet Shops; Furniture Manufacturers; Architectural Millwork, Aerospace, and Marine applications; and other manufacturers of wood furnishings.

Position reports directly to the Canadian Business Director, Brantford, Ontario. Competitive salary + bonus, benefit package.

Black Eagle Executive Search is conducting this search on behalf of M.L. Campbell.

KEY COMPETENCIES

• Strong written and verbal English communication skills. Effective communication skills will be required for presentations to both small and large groups.
• Strong interpersonal skills with the proven ability to maintain and build relationships with customers, including new business acquisition and providing customer service.
• Proven track record of meeting and exceeding sales targets.
• Entrepreneurial, business development skills.
• Self-starter, able to work independently with minimal supervision.

KEY RESPONSIBILITIES:

• Developing distributor sales and technical skills.
• Developing and implementing training programs.
• Managing, organizing, and working trade shows.
• Implementing market growth programs to maintain and improve market share
• Developing, implementing, and working within a developed business plan
• Meeting P&L goals

KEY QUALIFICATIONS

• University Degree or equivalent work experience required.
• Minimum 3-5 years’ experience in sales management.
• Extensive travel is required with the ability to travel by all means of transportation
• Distribution experience preferred.
• Industrial paint and/or wood finishing, spray application experience required
• Ability to apply and demonstrate all wood coatings which includes the ability to work with applicable solvents.
• Understanding and demonstrated knowledge of product application including troubleshooting, application equipment set up, and application technique.
• Ability to use PC to communicate and to present and develop distribution programs and business plans utilizing programs such as Excel, Word, PowerPoint, Lotus Notes, etc.

Please submit résumé to Black Eagle Executive Search via email to Richard Simms at rsimms@blackeagle.ca 

Only candidates of interest will be contacted

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Resumés

Click here to view the resumés online

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August 19, 2013, Volume xix, #31

“The habit of reading is the only enjoyment in which there is no alloy; it lasts when all other pleasures fade.”— Anthony Trollope (British novelist, 1815-82)
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SUMMER PUBLISHING SCHEDULE:

HARDLINES publishes monthly in August, so our next issue will come out on September 2, after which we return to our regular weekly schedule. As always, we shall continue to send our Free Daily News Updates (sign up here!) and Breaking News as it happens. Please note that the World Headquarters will remain open throughout the month. —Michael McLarney, Editor

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RONA suffers loss in second quarter

BOUCHERVILLE, QC — RONA inc. reported second-quarter sales of $1.25 billion, down $59.6 million from 2012, with $35.1 million of that related to store closures and the rest to a decrease in same-store sales. Sales were down to $1.25 billion from $1.3 billion a year earlier.

Same-store sales for the total RONA network were down 1.0%, due to a decrease of 2.7% in the distribution segment and 0.7% in the retail segment. The company blamed the same-store sales drop to poor weather, a June strike in the Quebec construction industry, and a decrease in single-unit housing starts across the country.

The company suffered a net loss from continuing operations of $38.7 million, a $74.3 million swing from income of $35.6 million in 2012. Restructuring costs and other charges accounted for $62.8 million of that.

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Canadian Tire’s seasonal sales rebound in Q2

TORONTO — Canadian Tire reported a healthy second quarter, with same-store sales up across all its retail banners.

Retail sales (namely, Canadian Tire dealer-operated stores, Mark’s, PartSource, and FGL Sports franchisee-operated, Petroleum retailer-operated and corporate-owned stores) increased $74.1 million or 2.1% in the quarter despite the closure of over 80 FGL Sports stores—and as a result of higher sales at CTR, Mark’s, and FGL Sports.

For the Canadian Tire stores, retail sales increased 2.9% in the quarter, including “solid sales” in backyard living and cycling, following weak seasonal sales in the first four months of the year. While the company reported that all divisions had strong sales, Automotive and Living were particularly strong. Increased sales in non-seasonal businesses such as kitchen and home organization also contributed to the increase.

For the entire company, consolidated revenue was up $29.9 million, reflecting strong sales growth at FGL Sports and Mark’s and increased shipments in “key categories” at CTR. Consolidated net income rose 15.8% to $154.9 million, due in part to the impact of FGL Sports banner rationalization charges in the previous year, as well as increased revenues and stronger margin contributions in the Retail segment and strong growth in the Financial Services business. 

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UFA supports High River recovery efforts

CALGARY — UFA, the Alberta co-op and hardware store chain, has been actively involved in restoration efforts after severe flooding devastated many parts of Alberta earlier this summer.

The company has initiated a “Flood of Support” campaign, bringing flood relief—both operationaly and financial—to communities throughout the province. But one community that was particularly hard hit was High River. There, some people are not expected to move back into their homes for up to a year.

UFA’s store there was one of the only businesses not affected by the flood, says Amanda Bates, a spokesperson for UFA, and it has become a focal point for much of the support being provided, including time and energy donated by UFA employees.

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Kent Homes to deliver Energy Star certified houses

BOUCTOUCHE, NB — Kent Homes, a division J.D. Irving Limited, which also owns Kent Building Supplies, has established a standard for its manufactured homes that meets Energy Star certification. In addition to standard energy-saving features such as windows and insulation, the homes are equipped with major appliances and other energy-using products that meet the strict qualifications for high efficiency in their category.

“This is a true first for Kent Homes, because the recognition is not just among manufactured houses, but among all home builders in the region,” said David Saucy, general manager of Kent Homes. “The Energy Star designation complements our superior EnerGuide ratings, giving customers confidence that they are choosing the best in energy efficiency for their homes.”

The first two Energy Star certified homes have been erected in Nova Scotia. Features of the homes include tight construction to provide a continuous air barrier, compact fluorescent lighting, extra insulation, low-flow faucets, and solar panels.

Kent Homes was recognized earlier this year for leadership in energy efficiency by the province of New Brunswick. The company received the Residential Energy Efficiency Champion Award for its continuous improvement in energy efficiency and better environmental performance.

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IN DEPTH READING:
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RONA works on execution of its strategic plan

BOUCHERVILLE, QC — Following the release of RONA’s latest quarterly earnings, president and CEO Robert Sawyer reiterated the strategic objectives of the company as it attempts to turn around its fortunes.

The strategic plan consists of two main components in the near term. First, it is looking to take $110 million in costs out of the system, including the closing of 11 under-performing stores by the end of 2013, reductions in marketing budgets (for example, it has stopped most of its sports-related sponsorships), and the layoffs of 325 administrative and management positions in its distribution centres across the country.

RONA managed to reduce SG&A by $4.2 million in the second quarter and by $7.5 million year-to-date.

These cost reductions, said Sawyer, are expected to generate “short-term profit growth and the room to manoeuvre” while it works on the second part of its plan—to realign its commercial business model. RONA has also sold its Commercial and Professional Market division to Talisker Plumbing Corporation, a subsidiary of EMCO Corporation. As a result of this agreement, effective the second quarter of 2013, this division has been classified as a discontinued operation.

Sawyer reiterated the new structure of the company under four areas: RONA’s traditional big boxes; the Réno-Dépôt chain, re-positioned as a “discount” operation; the RONA proximity stores, which include most of the affiliated or franchised independents; and contractor specialist outlets.

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Orgill expands Canadian team

MEMPHIS, TN — Orgill, the giant U.S. hardware wholesaler, has been expanding in Canada, seeking out new customers across the country.

But the process has been a “multi-step” one, says Orgill president and CEO Ron Beal. It has included conducting due diligence in this country in order to become “a good, viable supplier.” Next, Orgill’s development team worked to establish a service infrastructure, with Canadian-compliant, price-competitive products that could be delivered in a timely fashion.

Another aspect of Orgill’s commitment to Canada is the establishment of a flow-through distribution facility in Brampton, ON. This DC is carrying Canadian-compliant products, including chemicals and other products that are difficult to get across the border.

“The next step is to provide field sales support and to manage and grow our business,” Beal says. But, he adds, he wanted the company to take its time in getting its distribution model working here first. “It was very important that we didn’t put the cart before the horse.”

Orgill’s Canadian team is focused on providing national support, and Beal expects it to grow in tandem with sales growth in Canada. “Now, we’re shipping to every single province and one territory.”

Orgill’s initial entry into this country was through a partnership with Castle Building Centres Group Ltd. The expanded team, which expands beyond and complements the original team with Castle, reports to Orgill’s Myron Boswell, the vice president who is responsible for Canada and the central part of the United States. Erik Schlaud is the sales manager responsible for business development here.

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Housing starts forecast to stabilize

OTTAWA — CMHC expects total housing starts to be lower in 2013 compared to 2012, mostly due to the slow first half of the year. Housing starts are expected to stabilize in the second half of 2013 before increasing modestly in 2014. The increase is expected as a result of improved employment, economic growth, and net migration.

One of the drivers is expected to be single-detached units and housing units built in the Western provinces. On an annual basis, housing starts are expected to range between 177,100 and 188,500 units in 2013, with a point forecast of 182,800 units, down from 214,827 units in 2012. In 2014, housing starts are expected to range from 165,600 to 207,600 units, with a point forecast of 186,600 units.

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Lowe’s closer to acquiring Orchard Supply

MOORESVILLE, NC — Lowe’s has no competing bids and is able to proceed with plans to acquire the majority of assets of Orchard Supply Hardware, including 72 stores, for approximately $205 million in cash. The deal includes the assumption of payables owed to nearly all of Orchard’s supplier partners, subject to Bankruptcy Court approval. 

The transaction will be presented to the Bankruptcy Court for approval on August 20, and Lowe’s anticipates completing the acquisition by the end of August.

Lowe’s plans to have Orchard Supply operate as a separate, standalone business, retaining its brand under the leadership of Orchard’s current management team and acquiring the Orchard locations most complementary to its current strategy and store footprint. 

Once completed, the acquisition will enable Lowe’s to expand its presence in California, where it says it is under-stored. The acquisition of Orchard’s smaller-format stores will give it access to more densely populated markets, as well.

“Strategically, the transaction will provide Lowe’s with an attractive opportunity to increase our store footprint in California, where we are currently under-penetrated, through a neighborhood store format that is complementary to our strengths in big-box retail,” said Lowe’s chairman, president, and CEO Robert Niblock. “Orchard’s hardware and garden stores have a loyal customer base and are situated in high-density, prime locations that are difficult for larger format retailers to enter.”

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Classified Ads

REGIONAL ACCOUNT MANAGER, WESTERN CANADA
M.L. CAMPBELL WOOD FINISHES BRAND
Division of The Sherwin-Williams Company
Position Location: CALGARY , AB or VANCOUVER, BC

A leading North American manufacturer for the wood finishing industry, M.L. Campbell www.mlcampbell.com has built a reputation of dependability and product excellence for over 90 years. As an exclusive manufacturer of wood coatings, the company is dedicated to supplying its customers with high performance finishes.

The successful Western Canada based candidate will provide Regional Account Management for the M.L. Campbell Wood Finishes Brand. This position is responsible for managing the M.L. Campbell sales, profit, and marketing efforts in Western Canada (BC, Alberta, Saskatchewan, and Manitoba). This position involves sales through a distribution network – these M.L. Campbell clients sell and service Cabinet Shops; Furniture Manufacturers; Architectural Millwork, Aerospace, and Marine applications; and other manufacturers of wood furnishings.

Position reports directly to the Canadian Business Director, Brantford, Ontario. Competitive salary + bonus, benefit package.

Black Eagle Executive Search is conducting this search on behalf of M.L. Campbell.

KEY COMPETENCIES

• Strong written and verbal English communication skills. Effective communication skills will be required for presentations to both small and large groups.
• Strong interpersonal skills with the proven ability to maintain and build relationships with customers, including new business acquisition and providing customer service.
• Proven track record of meeting and exceeding sales targets.
• Entrepreneurial, business development skills.
• Self-starter, able to work independently with minimal supervision.

KEY RESPONSIBILITIES:

• Developing distributor sales and technical skills.
• Developing and implementing training programs.
• Managing, organizing, and working trade shows.
• Implementing market growth programs to maintain and improve market share
• Developing, implementing, and working within a developed business plan
• Meeting P&L goals

KEY QUALIFICATIONS

• University Degree or equivalent work experience required.
• Minimum 3-5 years’ experience in sales management.
• Extensive travel is required with the ability to travel by all means of transportation
• Distribution experience preferred.
• Industrial paint and/or wood finishing, spray application experience required
• Ability to apply and demonstrate all wood coatings which includes the ability to work with applicable solvents.
• Understanding and demonstrated knowledge of product application including troubleshooting, application equipment set up, and application technique.
• Ability to use PC to communicate and to present and develop distribution programs and business plans utilizing programs such as Excel, Word, PowerPoint, Lotus Notes, etc.

Please submit résumé to Black Eagle Executive Search via email to Richard Simms at rsimms@blackeagle.ca 

Only candidates of interest will be contacted

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Resumés

Click here to view the resumés online

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August 5, 2013, Volume xix, #31

“The summer night is like a perfection of thought.”
—Wallace Stevens (American poet, 1879-1955)
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SUMMER PUBLISHING SCHEDULE:

SUMMER PUBLISHING SCHEDULE: HARDLINES publishes monthly in August, so our next issue will come out on August 19, after which we return to our regular weekly schedule. As always, we shall continue to send our Free Daily News Updates (sign up here!) and Breaking News as it happens. Please note that the World Headquarters will remain open throughout the month. —Michael McLarney, Editor

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Dry weather spurs home improvement sales in British Columbia

SPECIAL REPORT — With the benefit of some “fairly strong activity in 2012” to propel it, the market in British Columbia is enjoying some good sales this summer, says Thomas Foreman, president of the Building Supply Industry Association of B.C.

In fact, after a slow start to the year that was typical of most of the country, “We’ve had four weeks of unprecedented good weather and sunshine, which is overall making up for the earlier spring months of heavy rain,” he says. Dealers are seeing their staff hustle as customers begin to accelerate projects.

“People are painting, roofing, paving—doing all the things they don’t usually get to do when it rains.”

For the year, Foreman expects some continued positive growth—tempered by forecasts of a slower housing market. He notes that factors such as the provincial election earlier this year have brought some stability to the province.

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Classified Ads

Masco Canada Limited is one of Canada’s largest distributors and manufacturers of residential and commercial plumbing products. We are currently seeking the following qualified professional…

Retail Sales – Quebec Regional Manager

Reporting to the Director of National Sales, the successful candidate will be responsible for the on-going sales management of our current Quebec based customers as well as the strategic growth of our Home Improvement business in Quebec. A sound understanding of the Rona Group would be a valuable asset along with 10 to 15 years’ experience in the Home Improvement Sales market in Quebec.

Y ou will be responsible for sales plan development for all product lines, promotional planning and new product listings, product forecasting, monitoring and analysis of POS results by account, agency coordination on service criteria with assigned customer base, daily management of product lines and SKU maintenance, competitive and market analysis, planning and attending customer trade shows.

Post Secondary Education in Sales with some financial background.
Bilingual – French/English

Apply to recruiting@mascocanada.com

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Sales Representative for Maritimes
(New Brunswick and Prince Edward Island)

Manufactured by Soprema, Resisto products are the benchmark in residential waterproofing. Resisto membranes, sealants and sealers are the next generation in high performing, quality waterproofing products.

Soprema is an international company specializing in the manufacturing of waterproofing membranes. The candidates for these positions will oversee the sales and representation of our organization and products to the retail sector. The field sales representative will be responsible for growing our current business in his/her territory.

Visit our website at: www.soprema.ca for more information on this job opening.

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Senior Account Manager – Retail

Taymor is a successful nationally recognized custom manufacturer of doorware, bathware, faucets and commercial hardware serving the home improvement and builder markets across North America. We design and deliver products for the home that are Functional, Fashionable and Affordable. Our customers include Fortune 100 companies, national and regional retail brands, specialty retail stores and major commercial, single family and multi-unit home builders. This position will operate out of our Mississauga office.

We are positioning for our next level of growth and require an experienced Senior Account Manager – Retail to drive our growth in this sales channel. The primary function of this role is to develop and implement strategic and tactical selling plans, while building strong relationships with Canada’s largest home improvement retailers. Please visit www.taymor.ca/careers for complete details and to apply.

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Business Development Manager

RDTS is a Laval-based service company, specialized in merchandising and representation. RDTS is a leader in the hardware and building supply retail industry in Canada.

RDTS is seeking a Business Development Manager in Toronto. The successful candidate must have 5-8 years experience in related jobs, be bilingual and have completed a Bachelor degree in a business related field. He/she must have strong connections in the retail industry, show great written and verbal communication skills and be an independent self-starter. Travels may be frequent and he/she is expected to achieve expansion objectives, accomplish management related duties, make strategic decisions and create new partnerships to support the company’s growth.

For more details or to apply, visit: http://blog.rdts.ca/TorontoDevelopmentManager

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Resumés

• Experienced Outside Sales Account Manager with a proven track record for achieving or exceeding forecasts view this resumé
• Creative, ambitious sales engineer and leader with over 10 years of National Account management experience view this resumé
• Experienced Territory Manager Seeks position in Eastern Ontario based in Kingston. view this resumé
• A customer focused Business Management Professional with an innovative and diverse background. view this resumé
• am interested in territory/district manager job in the home improvement industry. view this resumé
• Award-winning sales professional skilled in relationship-building in order to continually enlarge sales territories view this resumé
• Experienced Sales Professional view this resumé

• Sales Professional view this resumé
• Professional with over 25 years of experience in Sales, Marketing, Merchandising and Administration view this resumé
• Marketing professional with over 10 years experience looking to secure a new full-time position. view this resumé
• A Sales Professional with over twenty years of experience.view this resumé
• Experienced District Manager with a proven track record with several national chains. view this resumé

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July 29, 2013, Volume xix, #30

“Summertime, and the livin’ is easy.”— George Gershwin & Heyward DuBose (from the opera, “Porgy and Bess,” 1935)
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SUMMER PUBLISHING SCHEDULE
NO ISSUE NEXT WEEK:

HARDLINES publishes monthly in August, so our next issue will come out on August 19, and then we return to our weekly schedule on September 2. As always, we shall continue to send our Free Daily News Updates (sign up here!) and Breaking News as it happens. Please note that the World Headquarters will remain open throughout the month. —Michael McLarney, Editor

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TIM-BR MART’s top execs take leave of absence

SPECIAL REPORT — The board of directors of TIM-BR MART Group has asked its two top executives, CEO Tim Urquhart and executive vice president and COO Barb Hopper, to step aside from the day-to-day running of the company.

TIM-BR MART dealers learned in a letter sent out last week that Urquhart and Hopper “have accepted a paid leave of absence.” The letter was signed by TIM-BR MART chair Michael Westrum, of Westrum Lumber in Saskatchewan.

The letter goes on to note that “the leave was requested to allow the Board to evaluate the company’s direction. In their absence, there will be no change to TIM-BR MART’s day-to-day operations. The TIM-BR MART Group’s senior leadership team is overseeing operations.” Westrum adds that, “I, in my capacity as Chair of the TIM-BR MART Group Board of Directors, will provide strategic direction and have operational involvement as necessary.”

The announcement came as a surprise to the TIM-BR MART dealers, many of whom expressed shock and confusion over the news. Urquhart, considered the face of TIM-BR MART’s retail business, has established a strong sense of loyalty among his dealers.

Urquhart took the helm of TIM-BR MART in 2003, replacing founding CEO Barrie Sali. Over the past decade, TIM-BR MART grew under Urquhart’s leadership to more than 750 dealers. Under his tenure, TIM-BR MARTS Ltd. also got into the hardware distribution business with the acquisition of CanWel Hardware (now Chalifour Canada), and the acquisition of IRLY Distributors.

Hopper, who was formerly VP finance at iconic apparel manufacturer Canada Goose, joined TIM-BR MARTS Ltd. in July 2011 as chief strategy officer. Just over a year ago, she was promoted to the role of Urquhart’s first lieutenant.

Urquhart is reportedly meeting with the TIM-BR MART board today.

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Quebec dealers face toughest season “in a decade”

NATIONAL REPORT — While the West and Newfoundland remain relatively strong, dealers in other parts of the country are working hard through the summer to try and make up their year. (See “Mid-year, business remains ‘solid, steady’ but largely unspectacular” in last week’s edition. —Michael)

Quebec is no exception. Richard Darveau, president of Quebec’s home improvement industry association, AQMAT, is blunt in his assessment. “Quebec is doing badly.”

He blames a combination of factors that made the spring and early summer what he calls “the worst in a decade.” Unrelenting rains in the spring were followed by a hot, dry spell. Second, the mood of people in the province has been dampened by the ongoing revelations of corruption and payoffs within the municipal governments of cities like Montreal and Laval. Third, a protracted construction strike couldn’t come at a worse time, says Darveau. “This conflict in the industry literally paralyzed the business in the residential sector at a time of the year when it is normally at its peak.”

Darveau doesn’t expect dealers to make it up easily in the back half of the year. “What is lost will stay lost. But we are optimistic for the fall.” He adds, somewhat philosophically, that these business challenges can be put in perspective in light of the train disaster in Lac-Mégantic that took the lives of almost 50 people and devastated the town.

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Canadian Tire to open first small stores

TORONTO — This storefront on Danforth Avenue, in Toronto’s Greektown, was a Mark’s until it closed some months ago. This new store, slated to open in a few weeks, is on the vanguard of Canadian Tire’s small-store strategy, which intends to penetrate urban markets that would not typically support a conventional Canadian Tire store.

The stores, part of Canadian Tire’s strategic plan for 2013, will be about 10,000 square feet, with assortments modified to suit an urban neighbourhood. In addition to storefronts like this one, the format is intended to suit shopping malls.

The stores will rely on online sales and serve as pick-up locations for Canadian Tire’s digital catalogue.

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Lowe’s Canada takes pop-up kitchen on tour

TORONTO — A summer street festival in the west end of Toronto featured the usual array of vendors selling ethnic foods, straw hats, and vintage clothing. But amidst the makeshift booths that reflect the neighborhood’s Portuguese, Korean, and Italian populations, Lowe’s Canada stood out with a sophisticated fold-out trailer featuring the latest kitchen fixtures and appliances.

The trailer was surrounded by Lowe’s staffers, including a representative from LG appliances, to talk about Lowe’s products and its installed sales service. Representatives from Lowe’s marketing company endured the hot sun to hand out $10 discount coupons to passersby.

Besides the Bloor Street West festival, the booth had made an appearance at the Toronto Indy race a week earlier, and had reportedly been at events in other cities like Montreal. (Lowe’s Canada did not respond to requests for more information.)

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One-quarter of Quebecers will spend holidays at home

MONTREAL — A recent Canadian Tire study shows that, while other Quebecers will travel in the province, across Canada or internationally, 24% choose to have a “staycation,” with the hopes of relaxing or tackling some jobs around the house.

According to Canadian Tire’s survey, popular activities amongst staycationers include barbecuing (66%), biking (31%), and golfing (14%), leaving any jobs and chores for the weekend. However, fully one-third of Quebecers plan to undertake outdoor home improvement projects during their weekends this summer.

The most popular weekend and long-weekend activities amongst Quebecers this summer are outdoor activities, including yard work (57%), outdoor entertaining and barbecuing with friends (54%), and outdoor family dinners (50%).

Amongst those travelling within the country, camping is a popular vacation activity, cited by  35% of those travelling within Quebec and 39% of those travelling to other provinces. Quebecers living in rural areas are most likely to engage in car maintenance (38%) and garage/shed organization (33%) during their summer weekends.

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Kingfisher rebounds, in step with European conditions

LONDON & COLOGNE — Following a tough first quarter that drove sales down by 4.2%, Kingfisher plc saw its second-quarter sales, for the period ended July 13, increase by 5.2%. Same-store sales were up 2.5%. Sales in the UK, where it operates B&Q and Screwfix stores, were up 3.6%, while its Brico Dépôt and Castorama stores in France were up 3.2%. Sales elsewhere (Poland, China, Spain, Russia, and Romania) were up 11.2%.

“Following a tough Q1, I am pleased to report that we have been able to capitalize on the better weather conditions in Q2, particularly in the UK, which has helped us to deliver growth,” said Kingfisher Group chief executive Ian Cheshire.

The news coincides with a report from the European Association of DIY Retailers, EDRA, which notes that European dealers suffered from one of the worst first quarters ever recorded. Following a very cold and long winter, the situation improved somewhat in the second quarter, although, like in Canada, almost all countries had lower sales in the first half of the year compared to 2012.

EDRA’s broad estimate of European DIY sales at the end of the first quarter indicates they were down approximately 10% and down about 5% at the end of the first half of the year. The situation is expected to improve although it is highly unlikely that most countries in Europe will show same-store sales increases in 2013 compared to 2012.

Cheshire at Kingfisher concurred with this outlook, saying “underlying consumer confidence remains weak in our major markets, so we continue to focus hard on our self-help margin and cost initiatives.”

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Classified Ads

Sales Representative for Maritimes
(New Brunswick and Prince Edward Island)

Manufactured by Soprema, Resisto products are the benchmark in residential waterproofing. Resisto membranes, sealants and sealers are the next generation in high performing, quality waterproofing products.

Soprema is an international company specializing in the manufacturing of waterproofing membranes. The candidates for these positions will oversee the sales and representation of our organization and products to the retail sector. The field sales representative will be responsible for growing our current business in his/her territory.

Visit our website at: www.soprema.ca for more information on this job opening.

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Senior Account Manager – Retail

Taymor is a successful nationally recognized custom manufacturer of doorware, bathware, faucets and commercial hardware serving the home improvement and builder markets across North America. We design and deliver products for the home that are Functional, Fashionable and Affordable. Our customers include Fortune 100 companies, national and regional retail brands, specialty retail stores and major commercial, single family and multi-unit home builders. This position will operate out of our Mississauga office.

We are positioning for our next level of growth and require an experienced Senior Account Manager – Retail to drive our growth in this sales channel. The primary function of this role is to develop and implement strategic and tactical selling plans, while building strong relationships with Canada’s largest home improvement retailers. Please visit www.taymor.ca/careers for complete details and to apply.

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______________________________________________________________________

Business Development Manager

RDTS is a Laval-based service company, specialized in merchandising and representation. RDTS is a leader in the hardware and building supply retail industry in Canada.

RDTS is seeking a Business Development Manager in Toronto. The successful candidate must have 5-8 years experience in related jobs, be bilingual and have completed a Bachelor degree in a business related field. He/she must have strong connections in the retail industry, show great written and verbal communication skills and be an independent self-starter. Travels may be frequent and he/she is expected to achieve expansion objectives, accomplish management related duties, make strategic decisions and create new partnerships to support the company’s growth.

For more details or to apply, visit: http://blog.rdts.ca/TorontoDevelopmentManager

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