February 4, 2013, Volume xix, #4

“The price of greatness is responsibility.” —Winston Churchill (British statesman and prime minister, 1874-1965)
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TIM-BR MART makes management changes, Slegg resigns as chair

          CALGARY — Ron Slegg, longtime chairman of TIM-BR MARTS Ltd., has resigned his post. Michael Westrum of Westrum Lumber Ltd. has replaced Slegg as the new chair of the recently renamed TIM-BR MART Group. Westrum had previously served as board secretary since 2001 and represents the group’s LBM/OEM shareholders in Northwestern Ontario, Manitoba, and Saskatchewan.

Slegg, who spent 11 years as chair, has lots on the go, including a new store (the company’s 10th), which opened just last month. “TIM-BR MART is a great group,” he says. “I think there’s going to be more consolidation in this industry down the road. There will be a few big players in this market, and I expect buying groups to be among them.”

Dave Toth of Challenger Building Supplies Ltd. has joined the national board as director for LBM/OEM for Alberta.

TIM-BR MART has also made some changes to its senior management. Bret Walters has been appointed general manager of Chalifour Canada, the hardware distribution business of TIM-BR MART. A supply chain, logistics, and operations specialist, he has full P&L responsibility for Chalifour Canada, and is responsible for category management, inventory management, and operations of Chalifour’s five distribution centres nationally. Walters is based in Chalifour’s London, ON, facility and reports to COO Barbara Hopper.

Also reporting to Hopper is Randy Martin, VP of merchandise, who has relocated to TIM-BR MART’s Calgary head office. In addition to negotiating Spancan contracts for Chalifour and TIM-BR MART, he will be responsible for building material programs, specifically for Western Canada, working alongside John Morrissey, VP building materials.

As previously announced (see our January 3 edition —Editor), Andrew Pantelides has been promoted to the role of procurement and merchandising manager. Working out of the London office, he has all of Chalifour Canada’s hardware category managers reporting to him.

Finally, Kurt Norlen has joined Chalifour Canada as building materials trader. In this role, he will focus on truckload buys for non-wood commodity building materials for TIM-BR MART’s Western dealers.

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Modest growth forecast for industry: exclusive report

  SPECIAL REPORT — In 2011, four retailers led the Canadian hardware/home improvement industry and their sales accounted for more than half the industry’s sales. RONA inc., Home Depot Canada, Home Hardware, and Canadian Tire together generated over 50% of sales made in this industry.

These are just some of the findings in the Hardlines Annual Retail Report, which takes an in-depth look at how the industry is changing and what we can expect in the future.

By format, club stores (in this country, just Costco) are the only format that showed growth exceeding the industry average. Traditional hardware stores showed the smallest growth, but growth at all is a large improvement from the 9.4% drop that hardware stores experienced in 2010. The Annual Retail Report further reveals that sales in building centres and big boxes were in step with the industry average, showing a 2.1% increase. Big boxes account for 20.5% of the industry and building centres are the largest segment accounting for 46.4%.

The provinces experienced positive but relatively slow growth throughout the year. Ontario saw sales shrink for the fourth consecutive year, whereas British Columbia, Alberta, Saskatchewan, and Manitoba all experienced slight growth. The Atlantic provinces also showed increases in market share. Quebec’s share remained unchanged after falling the previous year. These results mirror the Retail Report’s predictions for provincial growth, with the West and East gaining market share and Ontario and Quebec stagnant or in decline.

Since 2009, the industry size has continued to grow moderately, with sales up 2.4% in 2011 and forecasted to have increased 2.0% in 2012. HARDLINES has forecast continued moderate growth through 2013 and into 2014.

(For a free sample of the Hardlines Annual Retail Report, click here! )

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TSC Stores pursues growth in 2013

  LONDON , ON — TSC Stores is looking to accelerate its growth agenda in 2013 after delivering “solid results” in 2012. According to David Roussy, president and CEO of TSC Stores, the company enjoyed 4.5% same-store sales growth in 2012, pushing total sales above $210 million and delivering “mid-teens percentage growth in EBITDA.”

“Edible and consumable categories such as animal feed, pet food, gardening supplies, and bulk oils,” says Roussy, “are driving our growth in both footsteps and comp-store sales. Our floor plans have been gradually shifting to reflect the positive trends in our business toward these categories.”

As TSC zeroes in more on what Roussy calls “the country lifestyle,” the hardware side of the business is becoming more focused on hardlines that specifically meet the needs of its target customers, which include small farms, hobby farmers and rural home owners, with assortments that are differentiated from its large-format competitors.

TSC considers store expansion to be central to its strategy. It currently has 44 stores in Ontario and two in Manitoba, and has already signed leases with 2013 openings for three other Ontario locations—Mount Forest, Bradford, and St. Catharines. Roussy sees an opportunity for up to 70 full-sized TSC Stores in Ontario and expects to open three to five locations per year.

The company is also streamlining its distribution business, Country Pro. The assortment being offered, says Roussy, focuses on “country lifestyle and farm categories and targets independent farm supply stores, feed store operators, and hardware stores looking to expand their hardlines offerings in farm.”

The Country Pro distribution business also includes members of Castle Building Centres Group who are looking to integrate farm supply into their assortments, leveraging the preferred supplier relationship TSC has with Castle.

Roussy notes that an important part of TSC’s growth strategy is to use the distribution business to build solid relationships with the over 150 feed store operators in Ontario. The first feed store acquisition was in Embro, ON, in 2012. “These acquisition opportunities,” he says, “are as a way to expand TSC’s footprint in smaller markets that can’t currently support a full size store.” This, he adds, can open the doors for future acquisitions.

These smaller format feed stores would be managed corporately, as TSC has abandoned its tests of a franchise model.

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Canadian Tire previews spring-summer lines

    TORONTO – The weather may still be wintery but Canadian Tire is already looking ahead to sunny spring days. At a recent media event, the company showcased summer-related products ranging from cleaning up the garage to pitching a tent.

Canadian Tire’s Mandi Paquin-Johnson, category business manager for auto, started out the tour with a look at some of the newest car-care products, including Autoglym waxing kit (exclusive to Canadian Tire) and Tub O’ Towels wipes. Products under the newly re-invented and re-launched Mastercraft brand featured tools she said were tougher and stronger than before, and feature interchangeable batteries. Michael Bache, a buyer for the Fixing category, pointed out that interchangeable batteries are an important cost-lowering addition, because the purchase of additional tools won’t require a new battery for each tool.

Storage and organization for the garage was another line being featured, with space-saving ideas for home and workshop.

The trend to affordable price points was one that figured with all the products featured. Much of the lawn furniture on display has been upgraded to compete with higher-end outdoor sets—but reportedly at a more affordable price point. And for the first time this spring, Canadian Tire will carry a line of live plants developed exclusively for the retailer.

Another new addition is that many of the product categories will offer home installation and delivery starting this spring. There is also a new line of Gardena products coming out in candy-colours. Lindsay Parsons, the buyer for patios and accessories, claimed that Canadian Tire features the largest selection of Gardena products of any retailer.

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Shoppers research online but buy in-store

  TORONTO — The physical store remains the centerpiece of the purchase journey for many shoppers. According to a new study by PwC, “Demystifying the online shopper: 10 myths of multi-channel retailing,” in nine out of 11 product categories surveyed, the majority of consumers use physical stores for both researching and purchasing.

In addition, the survey found that:

• 23% of respondents research consumer electronics online and then go to a store to buy the product, compared to only 2% who do it the other way around;
• over the next 12 months, consumers surveyed say they expect to shop in-store far more than they expect to ship online;
• even in a category in which respondents prefer to research and buy online, such as consumer electronics, 26% still prefer to research and then shop in-store;
• when asked to rank the most important factors that attract them to shopping in a physical store, 73% of respondents chose “Ability to see, touch, and try merchandise.”

And that is an attribute that an online store will never be able to match, the report points out. (For more information on “Demystifying the online shopper: 10 myths of multi-channel retailing” from PwC, click here . —Michael)

Learn more about e-Retailing at The Hardlines e-Retailing Conference on March 20th in Toronto. The morning conference will feature Robert Scott, National leader, Consumer, Industrial Products and Services, PwC, Andrea Stair, Country Manager for eBay Canada, and Drew Green, Founder and CEO, shop.ca. Click here for more information.

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Classifieds

  Home Hardware Stores Limited is 100% Canadian owned and operated and has a presence in every Canadian province and territory as the country’s largest independent, Dealer-owned hardware, lumber, building materials and furniture cooperative. Founded on January 1, 1964 by 122 independent hardware Dealers, the cooperative now includes close to 1,100 stores, under the Home Hardware, Home Building Centre, Home Hardware Building Centre and Home Furniture banners, with annual collective retail sales of more than $5 billion. Home Hardware’s independent Dealer-Owners, recognized by the North American Retail Hardware Association as Canada’s best-trained Dealer group, have access to 100,000 quality brand name and private label products, a world-class distribution system and draw upon the power of Home Hardware’s network to provide their local communities with top quality products and services at competitive prices. Our St. Jacobs Head Office currently has the following opportunity…

Product Manager
Full-time

You will be responsible to the Director, Merchandise-Hardlines, for executing the plan to buy and sell for the Major Appliances portfolio and for developing and maintaining a well-rounded wholesale assortment in the distribution centres, as well as products on a direct basis. You will travel to stores and shows, both domestically and internationally, as required, supervise/mentor direct reports, and engage in vendor negotiations to support corporate and marketing initiatives and build strong vendor relationships

You have experience and knowledge of the major appliances industry, a
high energy, entrepreneurial attitude and are willing to work ongoing
extended hours. You are a team-player with excellent communication,
computer, planning, organizational and negotiating skills and are able to
multi-task, complete priorities and meet deadlines. Retail experience with
related products is an asset.

We offer a competitive salary and great working conditions. If you are
interested in becoming part of Home Hardware, please forward your
resume, quoting Product Manager-Hardlines #702MA, by Friday, February 8, 2013 to: Human Resources Department, Home Hardware Stores Limited, 34 Henry St. W., St. Jacobs, ON N0B 2N0 E-mail: hr@homehardware.ca Fax: 519-664-4711 (Microsoft Products Only)

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  Better Living Products International is a world-leading designer, manufacturer and distributor of unique, high quality bath and shower organization products to retailers around the world. Better Living continues to be best recognized for its Award-Winning consumer product, ‘The Dispenser’. We are seeking energetic, self-motivated and results driven sales professionals to join our team and looking to fill the following positions:

National Sales Manager, Canada to manage the day-to-day sales activity within the Canadian market. Primary focus will be on the maintenance of current accounts and programs across all channels and the search for and development of new accounts, new market segments and new business opportunities. The successful candidate will possess a minimum of 5 years sales management experience and demonstrate exceptional interpersonal, communication and leadership skills.

National Account Manager to assist us in achieving our aggressive growth plans by managing specific key accounts and channels within the USA. The successful candidate will possess 3-5 years account management experience and demonstrate exceptional interpersonal, communication and analytical skills. Experience with Mass Merchant retailers is preferred. This is an intermediate position.

Account Manager  to grow our business by calling on accounts within our secondary channels of distribution and markets. The successful candidate will possess a minimum of 2 years account management experience.

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

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Resumés

• 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
• A relationship builder who passionately sells for profit through quality service view this resumé
• A conscientious, highly motivated manager with a results-oriented track record in developing new business. view this resumé
• An experienced merchandising executive possessing passion, vision, and a strategic approach to delivering bottom-line. view this resumé
• Senior sales/marketing leader with experience in all classes of trade wishing new HARDLINES career. view this resumé
• Very Experienced Business Unit Manager, great passion for generating sales and building relastionships.view this resumé
• Worked through my career within the manfucaturer, wholesale and consumer goods industries. view this resumé
• Senior Sales Manager with vast experience in retail and wholesale sales growth in Canada. view this resumé

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January 28 , 2013, Volume xix, 4

“Friends should always tell you the truth. But please don’t.” —Louis C.K. (American comedian, writer, and director, quoted in Vanity Fair, 1967- )
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Board shuffle keeps the peace with RONA shareholders

         BOUCHERVILLE, QC — At the urging of two of RONA’s largest shareholders, Caisse de dépôt et placement du Qubec and Invesco Canada Ltd., the giant retailer has made drastic changes to its board of directors.

Robert Chevrier, who is chairman and director of UniSelect, was also chairman of Richelieu Hardware until agreeing to join RONA’s board as executive chairman. He replaces Robert Paré, who continues to serve as a board member.

In addition, a number of other new faces have joined RONA’s board. They are: Bernard Dorval, former group head of Insurance & Global Development at TD Bank Financial Group and deputy chair at TD Canada Trust; Wesley Voorheis, partner at Voorheis & Co. and managing director, VC & Co.; Guy Dufresne, corporate director and former president and CEO of ArcelorMittal Mines Canada Inc.; and Barry Gilbertson, principal with Barry Gilbertson Consultancy.

Alain Michel and Patrick Palerme have resigned from the board, while two other board members, Steven Richardson and an additional nominee, will be up for election at RONA’s next annual general meeting, replacing two current directors. The new CEO will also join the board and replace a current director. As a result of the changes, the number of RONA directors will increase from 12 to 14, eight of whom will be new directors.

With these changes in place, Caisse de dépôt and Invesco have given their assurances to RONA that they will support the election of the new directors at the next annual general meeting on May 14, 2013.

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Prairie Showcase draws dealers despite cold snap

Mary-Anne Dalkowski, VP of marketing for Timber Specialties Co., shows off a new technology that leaves treated wood with a natural brown colour. Called MicroPro Sienna, it uses micronized copper azole to provide wood treatment.

SASKATOON — As trade shows of all stripes face flagging attendance and increased competition for dealers’ time (see next story —Editor), Prairie Showcase, the buying show of the Western Retail Lumber Association, held at Saskatoon’s Prairieland Park last week, managed to attract dealers from across the West. The show served as an effective venue for diverse wholesalers to showcase their services while many vendors were on hand to present new products and lines.

Vendors generally reported favourable results from the two-day event, while dealers appeared to be out in force. The show also managed to line up some top Canadian talent to provide entertainment during the event: Maritime fiddler Natalie MacMaster appeared at the industry gala and rock legend Burton Cummings performed on the closing night.

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LBMAO decides to terminate buying show

 MISSISSAUGA, ON — The Lumber and Building Materials Association of Ontario has announced that it will end its Canadian Home Improvement Show. The buying show, which has been held in Toronto for the past several years, was the victim of a number of factors. These include a plethora of other shows, especially those mounted by the retail groups and wholesalers themselves. In addition, Ontario dealers find themselves well served by suppliers on a year-round basis, which reduces the need for them to come out to the show.

In a release, LBMAO president David Campbell said, “With the 2012 Canadian Home Improvement Show now past us, the board of directors has assessed the viability of the show and the future of this event. Overall, the show looked good and it offered a variety of subjects and conferences that were directed toward the business and compliance management skills needed today to run efficient, safe, and profitable retail businesses. The topics were timely and relevant to today’s environment. However, the turnout of retailers was disappointing.”

In an effort to find a niche in the busy show market, the LBMAO moved the show to November from early February, and partnered with HARDLINES to feature a dealer conference at the same time. These moves alone, however, were not enough to attract more dealers as hoped.

Campbell said further that the association is “challenged by competing private shows from our member franchise and buying groups, as well as a retail sector that is running lean on staff and time availability to attend trade shows.”

Long term, said Campbell, a new event committee will be created that will consider a conference-and-trade show “that will be smaller, focused on networking and social interaction which could be possibly held in conjunction with a current event such as a golf tournament or our AGM.”

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WRLA partnership adds education, services for members

   SASKATOON, SK — Independent dealers in Western Canada now have easier access than ever before to a wide range of training and business services. The Western Retail Lumber Association has added product knowledge training, courses on loss prevention, project sales modules and more. All of these courses are available online for employees to take according to their own schedules. Test results for the courses are also generated online.

WRLA announced its partnership with NRHA Canada at the 2013 Prairie Showcase in Saskatoon on January 24. Representatives from two leading Western dealers, McMunn & Yates and North American Lumber, were on hand to renew their WRLA membership and add NRHA training and services for their employees. From l-r: Mark Kennedy, North American Lumber; Michael McLarney, NRHA Canada; Gary Hamilton, WRLA; and Jason Yates, McMunn & Yates.

The new services have been made available to WRLA members through a landmark alliance with the North American Retail Hardware Association Canada. “We were looking for ways to meet the needs of our independent dealer members, who need easy access to more services to run their businesses,” said Gary Hamilton, president of the WRLA. “NRHA has a full range of program for independents. Rather than re-invent the wheel, we have made a partnership with NRHA Canada to make these services available to our members at an affordable rate.”

“NRHA Canada already makes its programs available to Canadian dealers, but this partnership with the WRLA is the best way to get these programs in front of dealers,” said Michael McLarney, managing director of NRHA Canada. “This partnership is the ideal way to get the full range of services into the hands of Canadian dealers.”

The Western Retail Lumber Association is committed to serving the needs and promoting the common interests of the Canadian Lumber, building materials and hard goods industry in Western Canada. It has nearly 1,200 members in Western and Northern Canada.

The North American Retail Hardware Association has been serving the needs of independent hardware retailers in Canada and the United States for more than 110 years. Its purpose is to help independent home improvement retailers become better and more profitable merchants by providing members with a wide array of educational and training programs, financial management resources, and human resource tools that are all available online with unlimited access. (Click here for more information about NRHA training.)

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Canadian Tire announces extensive sports sponsorships

 TORONTO — Canadian Tire Corporation has announced that its Canadian Tire, Sport Chek, and Sports Experts banners have entered into an eight-year agreement as a Premier National Partner of the Canadian Olympic Team, in addition to six major amateur sport partnerships: the Canadian Paralympic Committee, the Canadian Soccer Association, Skate Canada, Hockey Canada, Alpine Canada Alpin, and Canada.

Canadian Tire and Canadian Tire Jumpstart Charities also plan to work with Own the Podium and the Canadian Olympic Foundation to help more kids get in the game. Canadian Tire has existing partnerships with Canada Games, Canada’s Sports Hall of Fame, the National Hockey League, NASCAR, and athlete partnerships with Sidney Crosby, Jonathan Toews, and Brett Lawrie.

To further support Canada’s elite athletes, Canadian Tire announced a new national employment program at its stores and corporate offices that will offer employment with flexible work schedules to athletes to accommodate training obligations.

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Vicwest buys majority of All Weather Panels

 OAKVILLE, ON — Vicwest Inc. has executed its rights under a previously-announced convertible debenture investment and acquired 56% of the common shares of All Weather Insulated Panels, an American manufacturer of insulated metal panels for industrial, commercial and cold storage applications.

Vicwest is a manufacturer and distributor of engineered storage and handling systems for grain, fertilizer, and liquid storage, as well as building construction products for agricultural, institutional, commercial, industrial, and residential markets.

The company’s original investment in 2010 in All Weather was in the form of a debenture, convertible to common shares, and includes rights to intellectual property and patents and a five-year call option to purchase the remaining minority.

The founders of All Weather, Bill and Michael Lowery, will remain in key leadership positions with the company’s North American IMP Group.

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Classifieds

 Home Hardware Stores Limited is 100% Canadian owned and operated and has a presence in every Canadian province and territory as the country’s largest independent, Dealer-owned hardware, lumber, building materials and furniture cooperative. Founded on January 1, 1964 by 122 independent hardware Dealers, the cooperative now includes close to 1,100 stores, under the Home Hardware, Home Building Centre, Home Hardware Building Centre and Home Furniture banners, with annual collective retail sales of more than $5 billion. Home Hardware’s independent Dealer-Owners, recognized by the North American Retail Hardware Association as Canada’s best-trained Dealer group, have access to 100,000 quality brand name and private label products, a world-class distribution system and draw upon the power of Home Hardware’s network to provide their local communities with top quality products and services at competitive prices. Our St. Jacobs Head Office currently has the following opportunity…

Product Manager
Full-time

You will be responsible to the Director, Merchandise-Hardlines, for executing the plan to buy and sell for the Major Appliances portfolio and for developing and maintaining a well-rounded wholesale assortment in the distribution centres, as well as products on a direct basis. You will travel to stores and shows, both domestically and internationally, as required, supervise/mentor direct reports, and engage in vendor negotiations to support corporate and marketing initiatives and build strong vendor relationships

You have experience and knowledge of the major appliances industry, a
high energy, entrepreneurial attitude and are willing to work ongoing
extended hours. You are a team-player with excellent communication,
computer, planning, organizational and negotiating skills and are able to
multi-task, complete priorities and meet deadlines. Retail experience with
related products is an asset.

We offer a competitive salary and great working conditions. If you are
interested in becoming part of Home Hardware, please forward your
resume, quoting Product Manager-Hardlines #702MA, by Friday, February 8, 2013 to: Human Resources Department, Home Hardware Stores Limited, 34 Henry St. W., St. Jacobs, ON N0B 2N0 E-mail: hr@homehardware.ca Fax: 519-664-4711 (Microsoft Products Only)

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  Better Living Products International is a world-leading designer, manufacturer and distributor of unique, high quality bath and shower organization products to retailers around the world. Better Living continues to be best recognized for its Award-Winning consumer product, ‘The Dispenser’. We are seeking energetic, self-motivated and results driven sales professionals to join our team and looking to fill the following positions:

National Sales Manager, Canada to manage the day-to-day sales activity within the Canadian market. Primary focus will be on the maintenance of current accounts and programs across all channels and the search for and development of new accounts, new market segments and new business opportunities. The successful candidate will possess a minimum of 5 years sales management experience and demonstrate exceptional interpersonal, communication and leadership skills.

National Account Manager to assist us in achieving our aggressive growth plans by managing specific key accounts and channels within the USA. The successful candidate will possess 3-5 years account management experience and demonstrate exceptional interpersonal, communication and analytical skills. Experience with Mass Merchant retailers is preferred. This is an intermediate position.

Account Manager  to grow our business by calling on accounts within our secondary channels of distribution and markets. The successful candidate will possess a minimum of 2 years account management experience.

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

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Resumés

• 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
• A relationship builder who passionately sells for profit through quality service view this resumé
• A conscientious, highly motivated manager with a results-oriented track record in developing new business. view this resumé
• An experienced merchandising executive possessing passion, vision, and a strategic approach to delivering bottom-line. view this resumé
• Senior sales/marketing leader with experience in all classes of trade wishing new HARDLINES career. view this resumé
• Very Experienced Business Unit Manager, great passion for generating sales and building relastionships.view this resumé
• Worked through my career within the manfucaturer, wholesale and consumer goods industries. view this resumé
• Senior Sales Manager with vast experience in retail and wholesale sales growth in Canada. view this resumé

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January 21 , 2013, Volume xix, #3

“Why fit in when you were born to stand out.” —Theodor Seuss Geisel, aka Dr. Seuss (American writer, poet, and illustrator, 1904-1991)
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La Coop fédérée and BMR in discussions

         MONTREAL — La Coop fédérée and BMR have confirmed that discussions are currently underway towards an eventual business relationship. While neither side will confirm further details, those discussions could, say insiders, be heading toward anything from a supply deal for BMR’s distribution business to an outright takeover of BMR by La Coop.

 The giant Quebec agri-food co-operative is a $5.2 billion company that has large holdings in farm and feed, oil and gas, and hardware and farm  machinery. That latter division operates under the Unimat name, supporting hardware and building materials dealers that generate close to $297 million in sales annually. BMR is a buying group with its own hardware and building materials distribution whose ownership is held in large part by a small group of BMR dealers. Total sales by its 187 dealers exceed $1.3 billion.

According to a joint release by the two companies, “These discussions are being held in an active business context for Quebec distributors and retailers specializing in hardware, renovation, agricultural machinery and gardening products.”

The release adds that the finalization of any deal would be shared with management of the two companies first. In the meantime, discussions remain confidential, and neither company would comment.

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Orgill ramps up presence in West, Quebec

MEMPHIS, TN — U.S. hardware wholesaler Orgill continues to make inroads into the Canadian market. After securing customers as far flung as Vancouver Island and Newfoundland, Orgill has now set itself up to serve francophone customers.

It has created a French-language catalogue and put in place a customer service and field support co-ordinator in Montreal. Josée Deganais, formerly at POS systems company OGC, spent time in Memphis being trained at Orgill’s head office.

“Part of our effort to do what it takes to service our customers in Canada and Quebec is certainly an important part of that,” says Ron Beal, president of Orgill.

He adds that the French catalogue is also online, along with an upgraded version of the English site. The French translation carries through to all aspects of the customer’s contact with Orgill—invoices, bills of lading, etc.

In the West, another person, Greg Kelly, formerly with Arxx, has been added to the business development team. That team works under the aegis of Castle Building Centres, with which Orgill has a preferred supply arrangement and management arrangement. There, Orgill insiders say the wholesaler is finding great success with new customers, including existing dealers and ground-up stores.

“We’re in the process of really changing our sales force. We’ve hired additional field support people in the Prairies and Ontario,” Beal noted.

Part of this expansion into different Canadian regions has required Orgill to accommodate regional tastes. “We’re continuing to round out assortments for regional needs,” says Beal, “especially in Quebec, such as reflecting local brand preferences.”

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At 40, Taiga keeps growing in Maritimes

  BURNABY, BC — Now in its 40th year of operations, West Coast-based Taiga Building Products Ltd., the wholesale building products distributor, continues to find growth in its most far-flung market.

It’s just announced the move to a larger distribution centre in Atlantic Canada, relocating its Halifax operations to 120 Ilsley Avenue, Dartmouth, NS. The new site is located within Burnside Park, Nova Scotia’s largest business park, and has a significantly larger warehouse and yard than the previous location.

“As we celebrate our 40th anniversary, our history in Atlantic Canada is our briefest,” says Dave McNeil, vice president, Eastern Canada. “But this is already our third home there in 15 years. We keep ‘trading up.’ We see the Maritime market as a huge distribution supporter and we must dig our roots deep there.”

The site, which is serviced by CN Rail, provides better access to transportation infrastructure, including four major highways and the Fairway Cove container terminal. McNeil says the company “jumped at the chance to purchase a site with good rail access.”

Mark Dill, general manager, Atlantic Region, adds “The larger, better situated facility will allow us to continue to enhance the service we provide to our valued customers. Nova Scotia’s economy is poised for growth, and the move better positions us to help our customers in the region capitalize on the opportunities ahead.”

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U.S. wholesaler Handy Hardware files for bankruptcy

    HOUSTON, TX — Handy Hardware Wholesale, Inc. has filed for bankruptcy protection under Chapter 11 of the bankruptcy code. In connection with its re-organization, Handy has reached an agreement with Wells Fargo Credit to provide Debtor-in-Possession Financing during a reorganization process.

“Chapter 11 re-organization was not Handy’s preferred option but it was the only option whereby Handy could provide financial stability over the short term for vendors and suppliers to ensure the continued flow of product to Handy’s member dealers—without the risk or uncertainty of non-payment,” said Handy president Tommy Schifanella.

The news comes on the heel of the company’s recent facility closing in Meridian, MI. According to company reports, Handy incurred substantial debt through building and operating the Meridian facility and was unable to grow its operations to cover its costs and debt service quickly enough.

“I am confident that the decision to close Meridian was the right one and Handy will move quickly to complete the reorganization process,” said Schifanella. “We expect to be in a position to provide our member dealers with an update regarding our plan and resolution for their current share ownership at our spring market in Houston later this month.”

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OBI co-founder Manfred Maus to be awarded

  COLOGNE, Germany — Manfred Maus, co- founder of the German DIY chain OBI, has been selected to receive the European industry’s second Global DIY-Lifetime Award. The award ceremony will take place at a gala dinner during the second Global DIY-Summit in Rome on June 6, 2013.

The award is being presented by the European DIY-Retail Association (EDRA) and the European Federation of DIY Manufacturers, fediyma. The first global lifetime award winner was Pat Farrah, one of the co-founders of The Home Depot.

Maus was selected for his contribution over three decades to the home improvement industry. He was one of the DIY pioneers in Germany when, as co-founder of OBI, he opened the first store in Hamburg in 1970. For many years he was group CEO before taking over as chairman in 2000, a position he held until 2004.

Manfred Maus was also the first president of the German DIY Association (BHB) when it was re-founded in 1991, a position he held until 2006. During his time as president his vision was to start a European association. Together with the French DIY-Retail Association (FMB), EDRA was founded in 2002. Maus was the second president of EDRA, from 2004 to 2008.

For more information on the second Global DIY-Summit, June 6-7, click here.

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Classifieds

  Better Living Products International is a world-leading designer, manufacturer and distributor of unique, high quality bath and shower organization products to retailers around the world. Better Living continues to be best recognized for its Award-Winning consumer product, ‘The Dispenser’. We are seeking energetic, self-motivated and results driven sales professionals to join our team and looking to fill the following positions:

National Sales Manager, Canada to manage the day-to-day sales activity within the Canadian market. Primary focus will be on the maintenance of current accounts and programs across all channels and the search for and development of new accounts, new market segments and new business opportunities. The successful candidate will possess a minimum of 5 years sales management experience and demonstrate exceptional interpersonal, communication and leadership skills.

National Account Manager to assist us in achieving our aggressive growth plans by managing specific key accounts and channels within the USA. The successful candidate will possess 3-5 years account management experience and demonstrate exceptional interpersonal, communication and analytical skills. Experience with Mass Merchant retailers is preferred. This is an intermediate position.

Account Manager  to grow our business by calling on accounts within our secondary channels of distribution and markets. The successful candidate will possess a minimum of 2 years account management experience.

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

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Resumés

• 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
• A relationship builder who passionately sells for profit through quality service view this resumé
• A conscientious, highly motivated manager with a results-oriented track record in developing new business. view this resumé
• An experienced merchandising executive possessing passion, vision, and a strategic approach to delivering bottom-line. view this resumé
• Senior sales/marketing leader with experience in all classes of trade wishing new HARDLINES career. view this resumé
• Very Experienced Business Unit Manager, great passion for generating sales and building relastionships.view this resumé
• Worked through my career within the manfucaturer, wholesale and consumer goods industries. view this resumé
• Senior Sales Manager with vast experience in retail and wholesale sales growth in Canada. view this resumé

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January 14 , 2013, Volume xix, #2

“The more relaxed you are, the better you are at everything: the better you are with your loved ones, the better you are with your enemies, the better you are at your job, the better you are with yourself.” —Bill Murray (American actor and comedian, quoted in the New York Times, Dec. 2/2012)
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Lowe’s opens latest Canadian store

        ETOBICOKE, ON — The 33rd Lowe’s store in Canada has opened in the north end of Etobicoke, in Toronto’s west end. The store, which features 117,000 square feet of retail plus an exterior garden centre, is the result of five  years of planning, and was apparently a pet project of then-city councillor Rob Ford, now mayor of Toronto.

 According to store manager Ken Wilson, who spoke at the opening, Ford had expressed a keen interest in seeing the store development realized from the very start. Ford’s brother, Etobicoke city councillor Doug Ford, was one of the dignitaries on hand for the ceremonial board cutting.

The store, which represents a $25 million investment and 150 staff, is the first in the latest wave of openings by Lowe’s Canada. Two more are planned in quick succession: Nepean, in the Ottawa area, will open at the end of this  month, while store number 35 will open in Edmonton a month after that.

 In addition, Lowe’s Canada is very close to opening its new regional distribution centre in Milton, ON. The 625,000-square-foot facility is expected to have a grand opening on or around February 8.

Lowe’s Canada had estimated sales in 2011 of more than $500 million, according to the Hardlines Who’s Who Directory of Retailers and Wholesalers .

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Castle signs five new members

MISSISSAUGA, ON — Castle Building Centres, the national LBM buying group, has begun the year by announcing five new members to its ranks. The first dealer of the year to join is Brian Maclean, who owns the Castle Building Centre in Wasaga Beach, ON.

The other new member is in Quebec, Quincaillerie du Centre in Melocheville. Located on Montreal’s south shore, the hardware store specializes in residential and industrial hardware. The owner is Claude Coulombe. This Quebec member is joined by a new location for one of Castle’s original members in that province: O. Coderre et Fils Ltée. Owner Hugo Coderre has purchased a second store in Crabtree.

In addition, two new members have joined Castle’s Commercial Builders Supplies (CBS) division. Calgary-based Pro Drywall Supplies, owned by Rod Macintosh, is a brand new commercial business supplying the residential and commercial building market in his region.

Costa Building Supplies Ltd, operating in the Greater Toronto Area, was established in 1983 by the Fior family. Besides drywall, the company supplies a wide range of building materials to residential, industrial, and commercial housing markets in and around the GTA.

As it enters its 50th year in existence, Castle’s membership now tops 290 dealers across the country, with annual combined sales of almost $1.2 billion, according to the Hardlines Who’s Who Directory of Retailers and Wholesalers .

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Chalifour Canada integrates warehouse systems

  LONDON, ON — Customers of Chalifour Vancouver now have the ability to order product in the Chalifour London warehouse through the same ordering systems used when ordering from Chalifour Vancouver.

Chalifour Canada serves independent dealers across Canada from a network of five warehouses and offices in British Columbia, Ontario, and Quebec. Its London hardware distribution centre is supported regionally in the west by the Chalifour Vancouver DC (formerly IRLY Distributors).

In the past, Chalifour Canada customers had to place orders for the Vancouver and London warehouses separately. Now, the two systems can “talk to each other,” matching product numbers to simplify the order process. Dealers can build their orders using either London item numbers or Vancouver item numbers and order them together.

Chalifour Vancouver customers can order using Vancouver or London item numbers, with the order being filled in Vancouver whenever possible. If the product is not available in Vancouver, the order will automatically be passed on to the London warehouse for fulfillment.

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Home Hardware rolls out annual contractor events

  ST. JACOB’S, ON — Home Hardware Stores kicked off its annual series of “Tough as Nails” contractor trade shows last week, beginning in London, ON. More than 5,500 contractors are expected to attend the series of seven shows.

This year’s trade shows take place in London, Ottawa, and Barrie, ON; Calgary; Winnipeg; Kelowna, BC; and Halifax. Contractors are invited from surrounding communities, with the Home dealers providing free transportation into each city.

Each show features more than 75 hardware and building materials suppliers. There, contractors can ask questions, learn about new products and trends, and get hands-on demonstrations. The events also host “Contractor Skills Competitions.” In addition, attendees from all seven shows are entered for a chance to win a 2013 Toyota Tundra pickup truck.

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CanwelBroadleaf gets name change

  VANCOUVER ― Building materials wholesaler CanWelBroadleaf has changed its name to CanWel Building Materials Division. The change, which took effect January 1, reflects the acquisition two years earlier by CanWel of rival Broadleaf Logistics.

The company used the portmanteau name to maintain the recognition and goodwill of Broadleaf during its integration with CanWel.

According to a letter to the industry signed by CanWel Building Materials Division president Marc Seguin, “As we move forward, it’s time to refocus our efforts on a united identity….”

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Valspar acquires Ace’s paint production

  OAK BROOK, IL — Ace Hardware Corporation has announced a long-term strategic supply relationship with Valspar. Valspar has acquired Ace’s paint manufacturing assets, including two manufacturing facilities located near Chicago. The national paint company will in turn manufacture and supply Ace-branded paint products and make a comprehensive line of Valspar-branded paints available to U.S. Ace retailers.

Valspar will immediately begin manufacturing and distributing Ace’s existing portfolio of Ace-branded paint products. Over the next year, Ace and Valspar will collaborate with retailers to enhance paint departments. Introduction of Valspar paint products is expected to begin in the fall of 2013.

“We have ambitious goals for our paint category, and this step puts Ace on the path to growing market share in liquid paint and increasing revenue opportunities for all Ace retailers,” said Ace CEO Ray Griffith.

The recent deal has many retailers questioning how the relationship will affect the Benjamin Moore and Clark+Kensington lines of paints, both of which have been highly promoted by the co-op in recent years. According to a release, Ace will retain ownership of Clark+Kensington and Ace Paint, but Valspar will manufacture Ace’s product lines exclusively for the retailer. Ace chose not to comment on the future of the Benjamin Moore line.

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Lowe’s introduces next step for Iris

  MOORESVILLE, NC — Last week’s Consumer Electronics Show in Las Vegas saw the unveiling by Lowe’s of the “next generation” of its cloud computing system called Iris. The “smart house” system allows customers to track their homes from their mobile or PC device. Among the new offerings are 15 devices and services to make homes safer and more efficient, while providing convenience features for homeowners.

Additionally, to help support the growing needs of today’s connected homes, Lowe’s is announcing a new product line for the connected home. The new product line will offer an assortment of routers and switches, as well as wi-fi range extenders to help expand network coverage for homeowners by leveraging existing home broadband wiring.

Lowe’s plans to roll out the new home area network products to as many as 100 stores in the U.S. in the first half of 2013, with the full roll out later in the year.

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Resumés

• 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
• A relationship builder who passionately sells for profit through quality service view this resumé
• A conscientious, highly motivated manager with a results-oriented track record in developing new business. view this resumé
• An experienced merchandising executive possessing passion, vision, and a strategic approach to delivering bottom-line. view this resumé
• Senior sales/marketing leader with experience in all classes of trade wishing new HARDLINES career. view this resumé
• Very Experienced Business Unit Manager, great passion for generating sales and building relastionships.view this resumé
• Worked through my career within the manfucaturer, wholesale and consumer goods industries. view this resumé
• Senior Sales Manager with vast experience in retail and wholesale sales growth in Canada. view this resumé

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January 7 , 2013, Volume xix, #1

“Half our life is spent trying to find something to do with
the time we have rushed through life trying to save.”
—Will Rogers (American writer and comedian, 1879-1935)
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The 10 top stories in home improvement in 2012

        SPECIAL REPORT — Canadians kept their eye on the border for news developments in 2012 with the announcement of Target’s foray north sparking discussion of other possible imports. The most dramatic example was the saga which began with Lowe’s surprise bid for RONA and ending with the resignation of RONA CEO Robert Dutton. But other companies were making quieter inroads. The outgoing year saw big boxes embrace smaller formats, diversify their interests, and make tough budget calls. Buckle up as HARDLINES takes you through the 10 most important news developments of 2012!

1. Indecent proposal. Lowe’s was caught flat-footed by the incendiary reaction to its unsolicited acquisition proposal to RONA’s board of directors. Coming at the height of the Maple Spring unrest in Quebec and just ahead of a heated election which saw sovereigntists forming a minority government, the bid turned into a political hot potato. Lowe’s lost the battle, foiled by the province’s pension fund, a major RONA shareholder. But the episode provoked grumbling from investors and left a divided board, indicating that the war may still be a going concern.

2. End of an era. In the aftermath of Lowe’s rejection, long-time RONA CEO Robert Dutton stepped down. Dutton, who joined the firm in 1977 and oversaw its expansion outside Quebec, struggled to balance the demands of dealers who value co-operative independence and investors frustrated with underwhelming profits.

3. War of 2012. Lowe’s wasn’t the only American company eyeing the 49th parallel this year. Menards prepared to open a string of locations on the Michigan-Ontario border. Three stores in Metro Detroit will make the third-largest U.S. home improvement retailer available to shoppers in Windsor, while a Port Huron location will position the store in the Sarnia market. Upmarket U.S. retailer Nordstrom’s opened in four Canadian malls, with another five reported to be on the way. Crate & Barrel, which has had a presence at Toronto’s Yorkdale Mall since 2008, set up shop in Montreal in May.

4. New kid on the block. Without a doubt, Target was the invisible hand in this year’s news. Companies across Canada scrambled to adjust their strategies and arm themselves against the competition. Loblaws announced major structural reforms and streamlining, while Walmart Canada prepared to unleash a wave of new stores. Even Canadian Tire updated its loyalty program beyond its traditional Canadian Tire “money.” Meanwhile, workers at former Zeller’s locations slated to be the new sites fought for job security, but British Columbia’s labour relations board sided with Target, ruling that the Minneapolis-based giant was not a “successor” to Zellers.

5. A deal’s a deal. One of the most interesting American imports was neither a company nor a brand, but the curious tradition of Black Friday. The event sees prices slashed in stores and online the weekend of Thanksgiving celebrations in the U.S. Although Thanksgiving in Canada had come and gone a month earlier, retailers here have carried the tradition over with enthusiasm.

6. Something old, something new. The venerable Hudson’s Bay Company returned to public trading on the Toronto Stock exchange, after a six-year hiatus begun when American businessman Jerry Zucker took it private in 2006. The IPO valued the company at just over $2 billion. Under private ownership, the firm worked to increase productivity and acquire some of the cachet of its sister banner Lord & Taylor.

7. Less is more. Even the biggest of big boxes discovered the benefits of adding smaller-format stores to their repertoire. RONA moved to convert several stores into “proximity” neighbourhood retailers in scaled-down digs, and Lowe’s positioned itself to follow suit. Ace Hardware in the U.S. rolled outs its “Express” stores, while RONA and Kent Building Supplies also experimented with specialized stores geared to contractors.

8. A house in order. Another major reorganization in 2012 was the formalization of TIM-BR MARTS’ corporate structure. The shuffle resulted in four standalone business units, each with its own management team. TBM Holdco is the publicly-traded holding company, which owns three subsidiaries, including the TIM-BR MARTS Ltd buying group. Purple Cow Retail Services manages branding and marketing, while Chalifour Canada is the group’s national hardware distributor.

9. Mind the app. It seemed there was an app for almost everything in 2012. Lowe’s “Augmented Reality” allows customers to take a virtual tour of select products in stores, while RONA sought to provide customers with personalized tips for their home improvement projects. Ace, Home Hardware, Castle, and Sears were also among those getting into the game last year.

10. The gods must be crazy. In true Canadian fashion, the weather was a persistent news story in 2012. Although downgraded from a hurricane, “Superstorm” Sandy managed to wreak havoc on the eastern United States, while creating a golden opportunity for forward-looking retailers.

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TIM-BR MART unveils new charter

CALGARY — TIM-BR MART has a new charter and a new name. Now called TIM-BR MART Group, the organizational changes are the outcome of the restructuring that the company has gone through in the past two years and reflects the re-alignment of its operations, as announced last spring.

The new charter outlines three values to support the company’s values and mission: managing the business professionally, operating with a winning spirit, and being customer-centric. The Group’s mission is to help improve the profitability of Canadian entrepreneurs involved in the sale of building materials and hardware.

“TIM-BR MART Group has become Canada’s leading group for independents and, in order to maintain that position, a cohesive team focused on a mission and priorities is absolutely critical,” said Tim Urquhart, president and CEO of TIM-BR MART Group (shown here with Barbara Hopper, EVP and COO of TIM-BR MART), during the unveiling of the new charter. He noted the changes that have taken place in the industry, and the need to evolve the business to keep apace. “Operating in that fluid environment requires an examination of every part of our business to be clear on who we are, how we operate and what our values are. That’s what our charter lays out.”

TIM-BR MART Group’s structure includes the TIM-BR MART buying group, with 750 member locations across Canada, and the hardware wholesaler Chalifour Canada. That structure is backed by a national team of 400 people. In presenting the charter to the dealers, Urquhart stressed the importance of that team. “Any company with the best services or product will falter without an engaged and focused team. Our charter unifies us, keeps us focused, and makes it easier to support each other and our customers.”

Rolling out in tandem with the charter was the company’s ongoing Culture Project, an initiative aimed at heightening employee engagement and further unifying TIM-BR MART’s diverse, national team.

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Allroc rationalizes to increase profitability

CALGARY — Allroc, the constructions products division of Superior Plus, has been trimming its under-performing operations and looking for ways to improve operationally as it rides out the economic recovery both here and in the U.S.

With extensive holdings in the States (Superior’s acquisition in 2009 of SPI, a chain of commercial supply outlets, increased its footprint there considerably), the wholesaler and buying group is anticipating some recovery in the U.S. after four tough years.

In Canada, the slow recovery has forced Allroc to examine unprofitable outlets (most of its locations in Canada are GSDs—gypsum supply dealers). According to Paul Vandenberg, president and CEO, the focus for the next two years will be on improving internal performance.

In an exclusive interview with HARDLINES, Vandenberg said the company had closed 15 locations by the end of 2012, including nine in Canada. Most significantly, locations in Nova Scotia, New Brunswick, and Newfoundland marked Allroc’s exit from Atlantic Canada altogether. Another three branches were shuttered in British Columbia’s Okanagan Valley. In other markets, such as Toronto and Vancouver, smaller sites have been closed or downsized, with those markets now being served by a “hub and spoke” model.

“I don’t see the Canadian market growing [in 2013]. I fact, I see it trending down,” says Vandenberg. “Now is the time to get your cost structure down.”

The company is also looking at ways to better manage its supply chain. To that end, it has hired Ray Sears as VP of supply. He worked formerly with a roofing supply company in the U.S. Vandenberg says supply chain management is now more centralized and better focused under the new management. Benefits include improved purchasing power, with centralized pricing strategies, “while being able to respond to the dynamics of local markets,” Vandenberg adds.

“For supply chain, we really view 2013 as a year to get everything organized to position us for better operations in the future.”

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Knape & Vogt makes two acquisitions

 Grand Rapids, MI ― Knape & Vogt has announced two acquisitions. The hardware and storage products company has purchased the Waterloo Furniture Components and Dynaslide divisions of CompX International Inc. Waterloo Furniture Components is located in Kitchener, ON. Dynaslide is in Taipei, Taiwan. Both divisions manufacture precision ball-bearing slide products serving OEM and distribution with products used in office furniture, appliances, computer servers, and other commercial equipment applications. In addition, the Waterloo division makes ergonomic office and healthcare workstation products.

Knape & Vogt has also acquired the assets of Diamond Storage Concepts LLC, which markets the Hyloft brand of storage products, including ceiling-mounted overhead storage products. It also markets wall-mounted shelving and tire storage products.

“The acquisition of Diamond Storage Concepts and the Hyloft brand of products adds exciting new products to KV’s line of garage and utility storage products business,” said Peter Martin, president and CEO of Knape & Vogt. “Garage storage is one of the fastest growing categories in home storage and organization.”

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Resumés

• 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
• A relationship builder who passionately sells for profit through quality service view this resumé
• A conscientious, highly motivated manager with a results-oriented track record in developing new business. view this resumé
• An experienced merchandising executive possessing passion, vision, and a strategic approach to delivering bottom-line. view this resumé
• Senior sales/marketing leader with experience in all classes of trade wishing new HARDLINES career. view this resumé
• Very Experienced Business Unit Manager, great passion for generating sales and building relastionships.view this resumé
• Worked through my career within the manfucaturer, wholesale and consumer goods industries. view this resumé
• Senior Sales Manager with vast experience in retail and wholesale sales growth in Canada. view this resumé

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December 10 , 2012, Volume xviii, #47

“When my heart is at peace, the world is at peace.” —Chinese proverb
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HOLIDAY PUBLISHING SCHEDULE:

      This is our last issue of the year. HARDLINES will resume its regular publishing schedule in the New Year, with an issue on Jan. 7. However, don’t worry, the World Headquarters remain open until Dec. 21!
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Canac joins TORBSA

      BOLTON, ON — One of the country’s biggest independents has joined Canada’s smallest buying group. Last week, TORBSA confirmed that the Quebec chain Canac has joined its ranks.

 The move will double the size of TORBSA’s retail sales by its members and expand significantly the group’s presence in Quebec. TORBSA now has 28 members with more than 60 locations, of which 22 are Canac stores.

Canac’s annual sales are estimated to exceed $300 million (source: Hardlines Who’s Who Directory ).

Canac is a major player in the Quebec City area, with headquarters in L’Ancienne-Lorette, across the river from the Capital. While it has been buying on its own for the past five years, Canac was formerly a long-time member of Independent Lumber Dealers Co-operative, whose select group of members represents leading independents in different regional markets. However, as Canac’s expansion in recent years took it farther and farther south, its stores began intruding on the markets of other ILDC members. The ensuing conflict resulted in Canac’s departure from that group in 2007.

TORBSA has been making some changes of its own. Two weeks ago it announced the hiring of Ken Pompey, formerly with TIM-BR MARTS, to actively recruit new members for TORBSA. The addition of Canac will be a key win for the small no-frills buying group and will likely raise its profile—and credibility—considerably.

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Lowe’s wants to be “number one or number two” in Canada

MOORESVILLE, NC — Lowe’s president, chairman, and CEO Robert Niblock says expansion in other countries must be done with an eye to cultural and political sensitivities. No doubt talking about the company’s recent failed bid for RONA inc. (ya think? —Editor), he says that Canada nevertheless remains an important market. However, with expansion going slower here than anticipated, Lowe’s needs, he says, “more scale.”

Speaking last week at Lowe’s Analyst and Investor Conference, Niblock said, “Although Canada remains a very consolidated market, we see opportunities. With a market worth an estimated $40 billion, we foresee an opportunity to grow there.”

Niblock said that could happen in three ways: the construction of more big boxes, the erection of alternative (smaller or dealer-owned) formats, and other acquisitions. “We want to be number one or number two in the Canadian market eventually.”

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RONA will shed assets to meet strategic priorities

BOUCHERVILLE, QC — RONA has issued an update to its strategic priorities, emphasizing a focus on core competencies. These include the disposal of “non-core assets” to free up cash. In a release, the company commits to simplify the “complexities” that abound in its business.

Those three priorities are: to leverage the strengths of its core businesses; grow key customer segments through a more compelling value proposition; and unlock the profit potential of a simplified business model.

According to Dominique Boies, acting president and CEO of RONA, who joined the company just over a year ago, “RONA has grown through a series of strategic acquisitions to expand its footprint, consolidated the market to introduce scale, and developed various store formats to support its leading position in Canada.” That growth, however, meant putting a lot of different companies together that have different operating platforms, inventory systems, and even SKU numbers. These new strategic priorities appear to be addressing those issues.

“RONA’s nationwide growth did not come without a certain level of complexity,” Boies admits. “The focus on our three strategic priorities will enable us to simplify our business model, reconnect to our roots as one of Canada’s best distributors, clarify the value proposition for our retail and professional customers, and therefore enable us to maximize the value of our core businesses.”

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Allroc seeks growth through streamlining

CALGARY — Still feeling the effects of the slowdown in the U.S., Superior Plus is retooling its construction products business, much of which is based in the U.S. The construction products division includes the Allroc buying group and the group’s chain of outlets under the Winroc name. According to Paul Vandenberg, president and CEO, the focus for the next two years will be on improving internal performance.

Speaking at Superior Plus’s third-quarter meeting of investors, he explained that Allroc, like many other companies in home improvement, does not foresee growth through new points of sale. The commercial business, said Vanderberg, “remains challenging, though it is expected to pick up in the U.S., [with] an 18-month lag with residential.”

So for the next two years the company will focus, not on end-use markets, but on improving internal performance. “Improvement with end-use markets would be icing on the cake,” he added.

It is also looking at the performance of its existing outlets. That includes, in Allroc’s case, closing some locations and relying onwhat Vanderberg calls a “hub and spoke” approach to serving local markets.

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Home Depot, Lowe’s add appliance lines

ATLANTA & MOORESVILLE, NC — Both Home Depot and Lowe’s have ramped up their appliance offerings, getting ready for 2013. Lowe’s will introduce the LG brand, including refrigerators, washers, dryers, dishwashers and ranges. The new lines will be available after January, in the company’s first quarter.

Lowe’s Canada already carries some LG product lines, which turned into a lead-in for wider acceptance of the brand in the U.S.  According to Joanne Elson, spokesperson for Lowe’s Canada, the company on both sides of the border, “regularly share best practices and leverage existing vendor relationships for new product offerings.”

“The existing Canadian partnership,” she adds, “amongst a wide variety of other factors, helped to establish the U.S. partnership with LG appliances.”

Starting this past weekend, Home Depot is expanding its home appliance offerings to include products from Samsung Electronics America. The appliances will be available to be ordered in Home Depot stores through the U.S. and on homedepot.com.

Home Depot Canada, however, would not confirm any plans for Samsung here.

Both companies see appliances as a key growth area, with an opportunity to take market share from traditional mass merchants like Sears. Back in July, Home Depot added Whirlpool, Electrolux, and Frigidaire in a limited number of U.S. stores and on homedepot.com. More than 3,000 appliances are available through the company’s Depot Direct delivery network, which are delivered free of charge and installed within five days of purchase.

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Classifieds

VICE PRESIDENT, SALES – TORONTO OR VANCOUVER

Black Eagle Executive Search, Oakville, ON, is conducting this search on behalf of its client, Phantom Screens www.phantomscreens.com. With head office in Abbotsford, BC, Phantom Screens has rapidly grown to become North America’s leading provider of retractable screen solutions, expanding from a small local operation to a multi-national company with an extensive network of Authorized Distributors throughout North America, and also rapidly expanding in the UK, Australia, Mexico, and other international locations.

The company is looking for a VP Sales located in either Toronto, ON or Vancouver, BC to develop, plan and implement the overall sales direction and associated strategies throughout the organization. Attractive compensation package including salary, performance bonus, and benefits. Reports directly to the CEO.

POSITION RESPONSIBILITIES:

• Create, recommend and implement annual and long-range strategic plans that support business development and the achievement of the organization’s long-term goals.
• Increase sales to deliver profitable growth
• Develop and manage revenue goals for all Sales Channels – Distributor network, National accounts including Big Box, International, and OEM.
• Manage key customer relationships and be actively involved in the closing of strategic opportunities.  
• Develop the annual sales revenue budget
• Develop and manage sales expense budgets
• Work closely with the Marketing Services team to establish successful channel and partner programs. Communicate market trends, competitor activity, distributor and end-user needs.
• Coach, mentor and inspire internal and external sales teams.
• Define and coordinate sales training programs  
• Define and oversee incentive programs that motivate the sales team. 
• Ensure the Customer Relationship Management program is implemented and fully utilized.
• Work closely with the CEO, the Management Team and other senior managers

KEY COMPETENCIES

• Dedication to championing the organization’s values, vision and mission in the marketplace.
• Highly developed analytical skills
• Superior interpersonal and communication skills
• Ability to effectively lead, coach, and motivate employees
• Equally comfortable working independently or as a contributor in a team environment.
• Extensive experience in sales contract negotiations.
• Proficient in the use of the Microsoft Office Suite of programs

KEY QUALIFICATIONS

• Bachelor’s degree with a business concentration. An equivalent combination of education and experience may be considered.
• Minimum of 10 years sales experience, at least 5 of which must have been in a senior management position controlling multiple sales channels and working with C-level executives
• Knowledge and experience in the consumer packaged goods industry. Experience in the home improvement industry is an asset.
• Detailed knowledge of distribution networks
• Experience in selling internationally outside North America
• Bilingual (English/French) not required, but would be an asset.
• Ability to travel extensively

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

Only candidates of interest with be contacted

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Resumés

• 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
• A relationship builder who passionately sells for profit through quality service view this resumé
• A conscientious, highly motivated manager with a results-oriented track record in developing new business. view this resumé
• An experienced merchandising executive possessing passion, vision, and a strategic approach to delivering bottom-line. view this resumé
• Senior sales/marketing leader with experience in all classes of trade wishing new HARDLINES career. view this resumé
• Very Experienced Business Unit Manager, great passion for generating sales and building relastionships.view this resumé
• Worked through my career within the manfucaturer, wholesale and consumer goods industries. view this resumé
• Senior Sales Manager with vast experience in retail and wholesale sales growth in Canada. view this resumé

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December 3 , 2012, Volume xviii, #46

“I start with the premise that the function of leadership is
to produce more leaders, not more followers.”
—Ralph Nader (American political activist, lawyer, and author, 1934- )
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LBMAO show looks to reinvent following low attendance

      TORONTO ― Just eight years after its inception, the Canadian Home Improvement Show, the buying show owned by the Lumber and Building Materials Association of Ontario, is facing serious challenges.

Held at the Toronto’s Congress Centre, the show has faced declining dealer attendance until this year, when participation reached a new low.

While Ontario accounts for fully one-third of the entire Canadian home improvement market, the show does not attract dealers the way association shows in the Prairies and Atlantic Canada do. “It’s a very concentrated market,” says Dave Campbell, president of the LBMAO. “And dealers here are extremely well served by the vendor base. So they don’t have the same need to get in front of those vendors at a show.”

But the dealers who have shown up have been finding value, Campbell insists. “Some of the dealers I’m talking to say they are really blown away by the products they are seeing. Even they’re wondering why more of their fellow dealers aren’t in attendance.”

The show faces other challenges, however. It must compete with a growing number of shows by wholesalers and groups, including Home Hardware twice a year, the TIM-BR MART show in the spring, and the Chalifour buying show at the end of October. Now even U.S. by Memphis-based hardware wholesaler Orgill is attracting more and more Canadian independents to its shows in the U.S.

This year’s event did have its high points, however. Product knowledge training and demos were introduced this year, attracting some attention from dealers. And the Johns Manville Dealer Hardlines Conference, historically held over breakfast on the first morning of the show, offered an expanded program that lasted until noon. “We had great pickup on the attendance at the Dealer Conference. There are certainly opportunities for more training and education, so I see looking at combining a conference and show again next time,” says Campbell.

He adds that he and his board will take a hard look at what can be done in 2013. “We’re certainly looking at changing the format and looking at how to re-invent the show to meet the needs of our members.”

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Nearing 50th, Castle says recruitment paying dividends

MISSISSAUGA , ON — Castle Building Centres has been on an aggressive recruitment campaign to attract dealers that align with the group’s mandate — to support independents and their own banners rather than a national brand.

The campaign, launched in the third quarter of this year, has been paying dividends, says the group, which reports that online traffic to Castle’s recruitment site has increased 300% as a result of promotional and advertising efforts. The campaign has touted Castle’s three tenets: transparency, freedom, and profits.

As it prepares to celebrate 50 years in existence in 2013, Castle is also reaching record numbers. Where historically its membership hovered around 225, its ranks have swelled to almost 300. “I think 2013 will be our most successful year,” says Ken Jenkins, president of Castle Building Centres. That success, he notes, will be measured “in terms of new member traction, purchase volume increases, total member growth, and rebate payments.”

Those purchases, by the way, are expected to be up by 14% over 2011. “Despite a flattening of the industry mid-year, Castle kept growing thanks to dealer recruitment.”

The latest member to join was Heritage Hardware and Farm Supply Ltd., which operates a Pro Hardware store in Cardston AB.

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New format, new ideas spell success for Dealer Conference

TORONTO ― What’s in store for Canada’s housing market and how will it affect Canadian dealers? How did a re-branding exercise help a century-old company return to its roots? And what do you do if you don’t have an army of marketers in your store to manage your social media?

These were the issues addressed by the speakers at the Fifth Annual Johns Manville Hardlines Dealer Conference, held last week in conjunction with the Canadian Home Improvement Show (CHIS), put on by the Lumber and Building Materials Association of Ontario.

The LBMAO partnered with HARDLINES five years ago to help boost the appeal of its show through education; the conference this year enjoyed record attendance from both dealers and vendors.

According to Sacha Chua, a Toronto-based social media coach, “People resist new technology, not because they’re ‘old fogies’ who resist change, but because they have existing techniques that work well for them.” So a dealer has to evaluate whether a new technique, such as social media, is worth the time and investment to undertake.

But the odds are, she noted, your customers will want to check you out online first, so it’s important to have an online strategy to deal with that. It doesn’t have to be fancy, just consistent. And make sure your store’s website has the basics, including store hours, location, and your specialization.

Martha Konantz, president of North American Lumber, told the story of her company’s 100-year legacy, and how a search to re-brand the company in modern times ended up drawing the company even more closely to its roots as a chain of small-town stores whose successes are built on offering strong customer service.

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Home Depot’s first RDC planned for early 2014

TORONTO ― Home Depot Canada is building its first “Rapid Deployment Centre.” These RDCs, as they’re called for short, already play an integral part of the retailer’s supply chain in the U.S. There, they’ve been replacing smaller distribution centres, but with a twist ― they don’t warehouse product.

The purpose of Home Depot’s RDCs is to provide what it calls a “fast-flowing facility where products from our suppliers are received and quickly sorted so they can be immediately distributed to various stores.” Unlike traditional distribution centres, RDCs act as flow-through facilities to get product sorted and forwarded directly to the stores.

Faced with competitive pricing, especially from online merchants like Amazon and Walmart.com, Home Depot Canada sees the new structure as an important way to reduce the costs of getting products from suppliers to store shelves.

Home Depot has 18 RDCs in the U.S. and the two planned for Canada would complete the network. The first will open in Vaughan, north of Toronto, on the southeast corner of Highway 50 and Rutherford Rd. The company says the location was chosen because it is close to a large number of stores in Southern Ontario and because of its proximity to the CP rail lines that run across the top of the city.

A second site is being planned for Western Canada.

The new Vaughan location will replace a temporary facility nearby in Concord, ON. Home Depot expects the operations to be transferred to the new Vaughan location by January 2014. It will be 657,600 square feet in size, the equivalent of about 12 football fields. It will house more than 200 shipping and receiving doors and process 400,000 cartons per week.

The warehouse will operate 24 hours a day year round and employ 350 staff, 130 of whom will come from the Concord facility.

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Hickey’s third store features prototype display

ST. JOHN ’S, NF ― Hickey’s TIM-BR MART opened its third location last week, this one at 426 Torbay Rd. Besides being the third store owned by the Hickey family (the other two are in Conception Bay South and Harbour Main), the outlet features a number of merchandising and renovation concepts developed by TIM-BR MART’s retail services division that will act as a model for other TIM-BR MART retailers.

Those innovations, designed by Halifax based Revolve, include a fully integrated LBM display showcasing windows, doors, siding, roofing, and mouldings. The display, which will be rolled out to TIM-BR MART retailers across the country in 2013, was developed in partnership with TIM-BR MART and key vendors.

Manager Brad Hickey says of the 40-year-old operation, “This truly is a family business as mom, dad, and all three children work at Hickey’s, which employs over 100 people.”

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Classifieds

VICE PRESIDENT, SALES – TORONTO OR VANCOUVER

Black Eagle Executive Search, Oakville, ON, is conducting this search on behalf of its client, Phantom Screens www.phantomscreens.com. With head office in Abbotsford, BC, Phantom Screens has rapidly grown to become North America’s leading provider of retractable screen solutions, expanding from a small local operation to a multi-national company with an extensive network of Authorized Distributors throughout North America, and also rapidly expanding in the UK, Australia, Mexico, and other international locations.

The company is looking for a VP Sales located in either Toronto, ON or Vancouver, BC to develop, plan and implement the overall sales direction and associated strategies throughout the organization. Attractive compensation package including salary, performance bonus, and benefits. Reports directly to the CEO.

POSITION RESPONSIBILITIES:

• Create, recommend and implement annual and long-range strategic plans that support business development and the achievement of the organization’s long-term goals.
• Increase sales to deliver profitable growth
• Develop and manage revenue goals for all Sales Channels – Distributor network, National accounts including Big Box, International, and OEM.
• Manage key customer relationships and be actively involved in the closing of strategic opportunities.  
• Develop the annual sales revenue budget
• Develop and manage sales expense budgets
• Work closely with the Marketing Services team to establish successful channel and partner programs. Communicate market trends, competitor activity, distributor and end-user needs.
• Coach, mentor and inspire internal and external sales teams.
• Define and coordinate sales training programs  
• Define and oversee incentive programs that motivate the sales team. 
• Ensure the Customer Relationship Management program is implemented and fully utilized.
• Work closely with the CEO, the Management Team and other senior managers

KEY COMPETENCIES

• Dedication to championing the organization’s values, vision and mission in the marketplace.
• Highly developed analytical skills
• Superior interpersonal and communication skills
• Ability to effectively lead, coach, and motivate employees
• Equally comfortable working independently or as a contributor in a team environment.
• Extensive experience in sales contract negotiations.
• Proficient in the use of the Microsoft Office Suite of programs

KEY QUALIFICATIONS

• Bachelor’s degree with a business concentration. An equivalent combination of education and experience may be considered.
• Minimum of 10 years sales experience, at least 5 of which must have been in a senior management position controlling multiple sales channels and working with C-level executives
• Knowledge and experience in the consumer packaged goods industry. Experience in the home improvement industry is an asset.
• Detailed knowledge of distribution networks
• Experience in selling internationally outside North America
• Bilingual (English/French) not required, but would be an asset.
• Ability to travel extensively

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

Only candidates of interest with be contacted

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