August 13 , 2012, Volume xviii, #32

“The enemy of conventional wisdom is not ideas but the march of events.” —John Kenneth Galbraith (Canadian economist, 1908-2006

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Summer Publishing Schedule:

HARDLINES is published just once in August. There will be no issues Aug 20, or 27. However, the World Headquarters will remain open during this time as we update our research reports, work on the next issue of HHIQ, and prepare for the 17th Annual Hardlines Conference! —Michael McLarney, Editor
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SPECIAL UPDATE ON LOWE’S VS. RONA
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Exclusive: Lowe’s reveals small-store strategy for Canada

    WORLD HQ, TORONTO — Doug Robinson, svp of international operations for Lowe’s Cos., is blunt about his discussions with RONA following a “friendly” takeover bid by Lowe’s last month, especially in light of the way his company is evolving its attitude to international expansion – including a new store format for Canada.

“We’re disappointed with the response of the RONA board,” he says. “We’ve made an offer that addresses the concerns and the stakeholders.”

Lowe’s is renowned for its process-driven business practices and its methodical approach to every decision. It went to RONA with what it believed was an offer that would address each and every one of the RONA board’s concerns. What it didn’t count on was the nationalistic and political outcry the offer ignited among Quebecers – and across Canada.

New store format

Regardless of the outcome of the RONA bid, says Robinson, Lowe’s is introducing a new store format – and Canada will be the testing ground. “We’re pretty close to launching our own version of a smaller format in Canada,” he told HARDLINES. While he wouldn’t put an exact date or location on the first of these new-style Lowe’s stores, he said, “It will be close,” adding that this “unequivocally” reflects Lowe’s commitment to smaller stores.

Just how small will the new stores be? Lowe’s was not willing to share that information, but the retailer has already tried out retail footprints as small as 80,000 square feet in the U.S. This new format for Canada, which the store planning division in Mooresville, NC, has been working on for some time, may constitute something even more radical than that.

Combined strengths

One thing that many observers have questioned about a possible takeover of RONA by Lowe’s has been the range of stores, from small to big box, that are under the RONA umbrella. These stores are a mix of corporate and independently owned businesses. However, this is all part of Lowe’s strategy, Robinson says. “We think that the right way to go to the marketplace is with multiple formats and multiple forms of ownership.”

He refers to Lowe’s expansion in Australia, where, in partnership with Aussie retail giant Woolworths, the company has both opened greenfields big boxes and purchased a hardware wholesaler called Banks, which serves both corporately owned and independent stores. “Our strategy has been to adopt ourselves to local needs.”

To do that most successfully, however, Lowe’s will need local expertise – something that comes most effectively from local dealer-owners such as RONA’s independents­ – “that small, niche, local knowledge of how to go to market in all the mid-size and smaller communities.” In return, Lowe’s can bring its expertise in areas such as appliances to the RONA organization.

Commitment to Canadian vendors

Another area that Robinson wants to clarify is Lowe’s relationship with its vendors, especially in light of concerns (shared by this publication) that a U.S. head office would mean the migration of more buying decisions to the U.S. – at the expense of Canadian suppliers.

That’s just not the case, says Robinson, and looks to Lowe’s track record so far in Canada. “Not a single buying decision has been made from Mooresville to go into the Canadian stores,” he insists. “We’re very committed to Canadian sourcing from Canadian companies. We’ve been doing that since we opened [in Canada].”

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When RONA met Lowe’s: a brief history

BOUCHERVILLE , QC — RONA inc. announced on July 31 that its board had turned down an offer by Lowe’s Cos. to acquire all its shares, saying the offer is “not in the best interests of RONA and its stakeholders.” Instead, RONA remains committed to its business, which includes looking for further growth opportunities of its own – including acquisitions.

RONA further requested that Lowe’s confirm that it would back off if its offer was not supported by RONA’s board. However, Lowe’s says it’s still interested in Canada’s largest home improvement retailer.

Here’s what happened…

June 5, 2005: The Globe and Mail reveals that Lowe’s Cos. has plans to enter Canada in two years. Doug Robinson, an American who had formerly run Beaver Lumber for Molson Cos., is in charge of Lowe’s Canadian foray. Holed up in a hotel in Markham, ON, he works from a rented office space to establish the business here. (It’s the same office building used by Stephen Bebis more than a decade earlier when Molson brought him up to establish Canada’s first big box, Aikenheads.) Rumours begin immediately that Lowe’s invasion would affect RONA, and its shares, trading around $26, begin to slip.

September 2007: Robinson departs from Canada, returning to Lowe’s head office in North Carolina to continue working in its international division. Don Stallings, a regional vp with a track record of opening a lot of stores in a short amount of time, takes over Lowe’s Canada.

Dec. 10, 2007: Lowe’s enters Canada with stores in Brampton, Brantford, and Hamilton, ON. A total of seven are planned for the first stage, with “another 15 in the pipeline.” Lowe’s also announces plans to open its first stores in Mexico.

Oct. 15, 2007: Robert Dutton speaks at the Hardlines Conference in Toronto, telling the audience in no uncertain terms, “Look at my eyes, every one of you: RONA is not [for] sale!” This has been a time of aggressive expansion for RONA. It purchases Matériaux Coupal in Quebec in 2006, and Curtis Lumber and Mountain Lumber in British Columbia. A year later, it buys Chester Dawe, the market leader with eight stores in Newfoundland. RONA begins expanding its commercial business, as well, including the acquisition of Noble Trade, also in 2007.

Sept. 9. 2009: Alan Huggins, who had been on the Lowe’s Canada team from its inception as vp operations, takes over as president. Stallings moves to Australia to set up a partnership with that country’s largest retailer, Woolworths, to establish a chain of big-box home improvement stores under the “Masters” banner.

July 27, 2011: At RONA’s request (according to Lowe’s), the chief executive officers of Lowe’s and RONA meet for the first time in Montreal to discuss a potential relationship between the two companies. Dutton subsequently visits Lowe’s at its head office in North Carolina to continue discussions. The nature of those conversations can not be confirmed by HARDLINES. (If you haven’t seen it already, check out this special HARDLINES TV clip for more on this subject. ―Editor)

Dec. 15, 2011: Lowe’s tenders its first offer to acquire RONA. That proposal is rejected by the RONA board .

April 3, 2012: A Lowe’s vp says at an analysts’ meeting in the U.S. that RONA would be “interesting” to Lowe’s. Speculation begins anew about the fate of RONA and shares spike above $10.

April 7, 2012: HARDLINES contacts RONA CEO Robert Dutton directly. He reaffirms, emphatically, “RONA is not for sale.”

July 8, 2012: RONA receives an unsolicited, non-binding proposal from Lowe’s to acquire all of RONA’s issued and outstanding shares at $14.50 per share. Following receipt of the non-binding proposal, RONA’s Board of Directors and a special committee of independent directors, with the assistance of Scotiabank and BMO Capital Markets as their financial advisors, and Norton Rose Canada LLP and Davies Ward Phillips & Vineberg LLP as their legal advisors, begin reviewing the Lowe’s proposal. (Click here to read the July 8 letter from Lowe’s.)

July 9-25, 2012: RONA’s board of directors and special committee meet with its financial and legal advisors on several occasions and carefully review Lowe’s unsolicited expression of interest.

July 26, 2012: RONA informs Lowe’s that board has unanimously voted the takeover bid down, as “not in the best interests of RONA and its stakeholders.”

July 28, 2012: Lowe’s says it would still like to proceed with a board-supported transaction. However, the giant U.S. home improvement retailer also indicated that it remained “very interested in pursuing a transaction with RONA and was going to consider all of its options,” according to a release by RONA.

July 30, 2012: Quebec’s minister of finance, Raymond Bachand, announces that the province would consider buying RONA shares to keep the iconic company in Canada, calling it “an important strategic investment.”

Aug. 2, 2012: Doug Robinson, who has been instrumental in setting up the RONA offer, calls HARDLINES from his office in Mooresville, NC, and gives Editor Michael McLarney an exclusive insight into Lowe’s plans for Canada, with or without RONA.

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Lowe’s says RONA would remain intact after acquisition

  MOORESVILLE, NC — While Lowe’s is best known for its traditional large store formats, the company would be committed to preserving and developing RONA’s multi-channel retail strategy, and to leaving its head office in Boucherville, QC.

That includes retail, commercial and distribution channels offered through large stores, smaller urban/proximity format stores and a well-developed online presence offered under a number of different brands.  RONA is a renowned Canadian brand and it is strategically and culturally desirable that RONA stores and distribution operations continue to operate under the RONA brand.

“We are disappointed that RONA’s board of directors has rejected our friendly non-binding proposal, which is clearly attractive for RONA shareholders. We believe a combination of Lowe’s and RONA makes enormous business sense,” said Robert Niblock, chairman, president, and CEO of Lowe’s.

He added that the Lowe’s proposal includes commitments to RONA and its key stakeholders, including RONA’s dealer-owners, employees, and suppliers.

Lowe’s currently operates more than 1,745 stores in North America, including 31 stores in Canada, and an additional 16 stores as part of a joint venture in Australia under the “Masters” banner.

(Click here to hear this Editor’s take on the Lowe’s bid —Michael)

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NEWS ROUNDUP
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Earnings increase for RONA in second quarter

    BOUCHERVILLE, QC — RONA inc. had second-quarter consolidated sales of $1.4 billion, up 3.4%, stemming from an increase of 8.7% in distribution segment sales and a 1.8% rise in retail and commercial segment sales.

Net earnings – before unusual items of $43.6 million – were up 17.7%, thanks in part to a 23.5% decrease in financial costs.

Same-store sales increased by 1% for RONA’s network as a whole, including retail, commercial and distribution, due to an increase of 11.4% in distribution sales to affiliate dealers, even though there was a 0.9% decrease in retail and commercial segment sales. (Note: RONA revised its same-store sales calculation during the quarter to include same-store distribution sales to RONA affiliate dealer-owners, who account for more than 25% of total sales.)

“The second quarter results again prove that RONA remains a preferred source for renovation and building contractors and specialists,” said RONA CEO Robert Dutton in a release. “We have, for example, seen 10.5% growth in sales to plumbing specialists, while our affiliate dealers, who count a high percentage of building contractors among their clientele, have increased same-store sales by 11.4%.”

The results came out a day after RONA held the grand opening in Edmonton of the first of 15 proximity stores that are slated to open by 2014.

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Giant building centre is North America’s largest

HARTVILLE, OH — Howard Miller and his brother Wayne have transformed a small, family-owned hardware store into the largest in America – a mammoth 305,000-square-foot, two-level retail unit that is only one of several dominant businesses he and his family own in this small town in Ohio.

Forty years after the original store opened, the new store, which held its grand opening earlier this month with sales and vendor demonstrations, is more than twice the size of the average Home Depot or Lowe’s.

“We felt that if we wanted to be in the hardware business long-term, we needed to do something different,” Hartville Hardware president Howard Miller said. It’s “by far” the largest location served by Do it Best Corp. by “100,000 square feet,” said Bob Taylor, president and CEO, who was at the store for opening festivities.

Hartville Hardware’s customer mix is about 60% DIY and 40% contractors. The store contains nearly 70,000 SKUs, an in-store lumberyard, a furnished ranch-style home made mostly from Made in America items available in the store, and four facades of other house models.

It also features six entrances and an historic log cabin, which houses its library of product literature for the tool department.

The family also operates a huge flea market, which features more than 1,200 booths and lets entrepreneurs set up shop to sell used or overstock merchandise, as well as Hartville Kitchen, a home-style restaurant featuring more than 20 homemade pies daily. The restaurant seats 325, has a banquet facility with a 500-seat capacity, and hosts another business enterprise, Hartville Collectibles, a 15,000-square-foot gift shop.

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Canadian Tire enjoys increased 2Q revenue

TORONTO — Canadian Tire Corp. reported second-quarter consolidated revenue of $2.99 billion, a 16.4% increase, thanks largely to the inclusion of revenue from FGL Sports of $335.2 million. However, the company says it had solid sales growth across all retail businesses, including Financial Services. Consolidated net income increased 26.4% to $133.7 million from the same period in 2011.

Retail sales were up 1.0% and same store sales were up in the quarter 0.4%, reflecting “strong sales in key seasonal categories and continued growth in the Living, Fixing, and Playing categories,” says the company in a release.

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The Home Depot will buy kitchen cabinet supplier

DALLAS & ATLANTA — The Home Depot has agreed to acquire U.S. Home Systems, Inc., a kitchen bath cabinet products company that sells exclusively to Home Depot. The company also supplies closet and garage organizational systems to Home Depot. Home Depot will acquire USHS for $12.50 per share in cash, which represents a premium of about 38% over USHS’s closing price on Aug. 6. The deal is expected to close by the end of the calendar year.

USHS’s product lines include kitchen cabinet refacing products used in kitchen remodeling, bathroom tub liners and wall surround products, and storage organization systems for closets and garages.

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Back-to-school spending to increase 2.5% in Canada: Ernst & Young

MONTREAL — Back-to-school spending is set to climb only 2.5% over last year in Canada – even though the shopping season is starting earlier than ever.

“Back-to-school sales started on July 1 south of the border, stimulating demand and forcing Canadian retailers to follow suit and get in step earlier than ever,” says Daniel Baer, Ernst & Young partner and national retail industry leader. “Consumers’ low confidence level means they are careful, looking for bargains despite brand loyalty, and aren’t hesitant to compare prices before buying, whether shopping in stores or online from home or by mobile.”

Back-to-school sales are not limited to traditional items like clothing, shoes and stationery. A growing number of increasingly younger students purchase electronic items and devices. Baer adds this sector will likely perform very well this year.

Aside from the growing trend to shop online for low U.S. retail prices, cross-border competition is also being stimulated by new traveller exemptions for Canadian residents who wish to hop across the border to buy. As of June 1, traveller tax exemption limits increased from $50 to $200 for visits of at least 24 hours, and from $400 to $800 for visits of at least 48 hours.

Losing ground to U.S. retailers isn’t the only challenge facing Canadian consumer products companies. According to a recent global publication by Ernst & Young, “ Disrupt or be disrupted: creating value in the consumer products brand new order,” 74% of consumer products company leaders believe they need to make significant changes to sustain historic margins. The survey also shows that 68% of responders are under pressure to reappraise their operating models.

“Thanks to technology and new modes of communication, consumers are taking control of the conversation and demanding better value,” Baer says.

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PEOPLE ON THE MOVE
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At Imperial Manufacturing Group, Mario Caissie has been appointed president. Caissie brings to this role a very strong knowledge of the company and the industry and was most recently vice president, operations (Canada and U.S.) for Imperial Manufacturing Group. IMG was started by its CEO, Normand Caissie, in 1979 and is an award-winning manufacturer of more than 7,000 heating, air conditioning, ventilation, and building products for residential and light commercial applications. Imperial Manufacturing Group is recognized as one of Canada’s 50 Best Managed Companies.

Greg Hicks has left London, ON-based TSC Stores Ltd., where he’d served as COO and head of TSC’s wholesale farm and hardware division, Country Pro Services. He has joined Lowe’s Canada.

Murray Kush is the new buyer for plumbing and heating at Federated Co-operatives Ltd. He was formerly a category manager at Peavey Industries Ltd.

Tembec, the forest products producer, has appointed Linda Coates vice president, human resources and corporate affairs. Coates joined Tembec in May 2011 as corporate vice president, communications and public affairs. 

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ECONOMIC INDICATORS
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Housing starts reached 208,500 units seasonally adjusted in July, down from 222,100 in June. The bulk of the decrease was in the multiples segment in British Columbia. Urban starts seasonally adjusted decreased by 6.4 % to 187,300 units, with urban singles down 4.0 % and urban multiple starts down 7.6 %. (CMHC)

The total value of building permits fell 2.5% to $6.8 billion in June, following a 7.1% increase in May. The non-residential sector was down 12.3% nationally, while in the residential sector, the value of permits rose 4.2% to $4.4 billion in June, a second consecutive monthly increase. Construction intentions for single-family dwellings rose 4.2% to $2.4 billion. (Stats Canada)

Eighty metropolitan statistical areas across 32 states and the District of Columbia were listed as improving housing markets. The metropolitan areas were so identified based on showing improvement in housing permits, employment, and house prices for at least six consecutive months. Five new metropolitan areas were added to the list this month: Miami and Palm Bay, FL; Hinesville, GA; Terre Haute, IN; and Lubbock, TX . (National Association of Home Builders- First American Improving Markets Index )

Real gross domestic product (GDP) in the U.S. grew at an annual rate of 1.5% in the second quarter. This follows a growth rate of 2.0% in the first quarter of 2012. (U.S. Commerce Dept.)

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Last Call For Outstanding Retailer Awards Entries
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Dealers can still enter Hardware Merchandising’s 2012 Outstanding Retailer Awards. The ORA program is dedicated to celebrating the achievements of hardware, home improvement, and building supply dealers in Canada. There is no fee to enter and nominations are not required. Dealers may submit entries directly, or chain/buying group head offices may choose to prepare and submit the entries for them. Complete information and entry forms available at hardwaremagazine.ca/ORA. The awards will be presented at a Gala Dinner during the Hardlines Conference, Oct. 25, 2012.

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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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July 30, 2012, Volume xviii, #31

“Work is the curse of the drinking classes.”
—Oscar Wilde (Irish novelist, playwright, and poet, 1854-1900)

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Summer Publishing Schedule:

HARDLINES will be published just once in August. There will be no issues Aug. 6, 20, or 27. However, the World Headquarters will remain open during this time as we update our research reports, work on the next issue of HHIQ, and prepare for the 17th Annual Hardlines Conference! —Michael McLarney, Editor
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TORBSA members find strength in diversity

   BOLTON, ON — As the country’s smallest buying group by volume, TORBSA is a “boutique” group that has found strength in the diversity of its members, who range from traditional dealers to heavy commercial suppliers and block and cement yards.

For example, Bernardi Building Supply in Weston, ON, recently did an extensive expansion of its front end, adding more retail, while Kelly Lake Building Supplies in Sudbury, ON, had its sales counter re-merchandised. Both stores used the Burlington, ON-based merchandising design firm BMF to upgrade their stores. Other, more commercially focused members, says Bob Holmes, general manager of TORBSA, may work from nothing more elaborate than an office with a phone, relying instead on their sales people on the road and their local contacts in their respective markets.

While each member may have their own way of going to market, they share the ability to buy better through their group affiliation. That strength goes beyond the group itself; TORBSA is also part of an umbrella organization, The Epic Alliance, which has Castle Building Centres as its other member. There’s an advantage for both sides with this larger arrangement, says Holmes. “It lets us go back to the vendors with a national perspective, putting together programs that will benefit both parties.”

Holmes says, “The pie is getting smaller,” as business becomes more competitive and margins erode. And even though TORBSA has had organic growth, he notes that, throughout the industry, “Everybody is struggling a little more as they try and find margin.”

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Atlantic dealers face challenges, opportunities

MONCTON, NB — Dealers across Atlantic Canada enjoyed a strong start to the year, with healthy sales right up to the end of May. However, says Don  Sherwood, president of the Atlantic Building Supply Dealers Association, “a bit of a cooling occurred in June. But we continue to be optimistic for the year,” he adds.

He admits, though, that the last half of 2011 was “very strong,” and the rest of the year may not be quite strong enough to match that. Factors dampening his forecast include “federal government layoffs in P.E.I., and a lot of correcting in all the provinces here, as we see a reduction in provincial government employees. However, Newfoundland continues to be one of the country’s hottest growth regions, thanks to development in the natural resources sector.”

Another issue Down East is P.E.I.’s adoption of Harmonized Sales Tax (HST). “That province is coming on board to get a level playing field,” says Sherwood. “ABSDA is doing a lot of work with the P.E.I. government. We’re communicating more strongly to our constituents and their home builder and contractor customers to not oppose this.”

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Sears Home stores get “own identity”

 TORONTO — A new look for Sears stores is affecting its Sears Home banner, as well. While changes overall in the stores include wider aisles, less cluttered displays, and streamlined merchandise offerings, Sears is attempting to makes its specialty banner more distinctive.

The setup of the old Sears Home stores was basically in a box as part of a power centre, explains Vince Power, director, corporate communications for Sears Canada. He says the order came right from the top: “Calvin [McDonald, the new CEO of Sears Canada] said Sears Home needs its own identity.” So a test Sears Home store was re-merchandized in a brand new location – a former Ikea store – making it, at 78,000 square feet, 30% bigger than a typical Sears Home outlet.

In the new store, says Power, departments have been turned into clear destination categories. Taking a page from Ikea, home furnishings and accessories are now featured in full room settings around the store.

“The nice thing about the store is that it’s spacious,” he adds. “We’ve kept it uncluttered.”

Sears Home is getting special attention in other ways, as well. The banner now has its own flyers and ads, supported in-store with a merchandising plan worked out specially. “They’re getting their own identity.”

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Square Deal trailer tours Ontario lumberyards

    BRAMPTON, ON — Specialty distributor Square Deal has come up with an innovative way to help building supply dealers connect with their customers – especially contractors. It has outfitted a “special event trailer” that is currently visiting lumber yards throughout Ontario.

The 20-foot trailer is decked out in Irwin Tools livery branding and stocked with Irwin products, which contractors can purchase through the participating dealer.

The first stop for the trailer was Washago TIM-BR MART, near Orillia, ON, in the heart of Central Ontario’s cottage country. “We are always looking for innovative ways to build traffic,” said Tom Denne, co-owner of the Washago store. “Square Deal’s special event trailer is a great idea to help attract contractors to our yard. It’s a bit like having a mini trade show brought right to the doors of our store.”

Square Deal president Joss DeGroot said that he and his business partner Todd Schoular have had many requests from dealers for the trailer to visit their yard. “Our job is also to help our dealers create interest and traffic.”

“We always appreciate having manufacturers’ reps come visit us – and all the more when they go that extra mile,” Denne added.

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UK’s Kingfisher builds on sustainability policy

      LONDON — In March 2012, Kingfisher announced a new sustainability initiative called Net Positive.

Becoming “Net Positive” means that Kingfisher, which owns DIY chain B&Q and the commercial chain Screwfix, commits to put back more than it takes out as a business. It’s about doing more good, not just less harm. Kingfisher believes Net Positive can be a powerful business driver and deliver significant returns, particularly by securing increasingly scarce resources on which the business depends.

Kingfisher’s Net Positive strategy focuses on four priorities:
timber: to create more forest than it uses; energy: to make every home zero carbon or, where possible, a net energy producer; innovation: to ensure that every product is remade, recycled, reused or biodegradable; and communities: for every store and location to support local community groups and equip people with skills.

Kingfisher says it has been making progress on all these fronts. For example, 86% of reported timber products sold by volume are now from proven well-managed or recycled sources. And last year, its customers saved an estimated 2,513 million kWh of energy through the use of energy-efficient products and services.

Finally, Kingfisher is engaged in a wide range of community initiatives to help build local skills, from Brico Dépôt France providing DIY skills for unemployed people to B&Q China helping modernize school libraries.

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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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July 23, 2012, Volume xviii, #30

“ A mother’s happiness is like a beacon, lighting up the future but reflected also on the past in the guise of fond memories.” —Honoré de Balzac (French novelist and playwright, 1799-1850)

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Summer Publishing Schedule:

HARDLINES will be published just once in August. There will be no issues Aug. 6, 19 or 26. However, the World Headquarters will remain open during this time as we update our research reports, work on the next issue of HHIQ, and prepare for the 17th Annual Hardlines Conference! —Michael McLarney, Editor
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Kent’s newest store focuses on contractors

  ST. JOHN’S, NF — Kent has opened a store here that caters strictly to contractors, responding to the construction boom in the province.

In recent years, Kent has stepped up its expansion plans, focusing especially on Newfoundland, whose economy has been red hot thanks to the natural resources sector there. As a result, housing starts are strong, especially in the Northeastern Avalon Peninsula where the store is located.

Called Kent Contractor Supply, the store, on Kelsey Drive, is the fourth store Kent has opened in Newfoundland since January, bringing the company’s store count to 37. Kent, which is owned by the Irving family in New Brunswick, is a market leader in Atlantic Canada. With sales estimated at almost $500 million in 2011, it is the 15th largest home improvement group in the country.

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TORBSA stays fresh with new board members

BOLTON, ON — TORBSA, the building materials buying group based here, recently elected its new board of directors, with some new additions that reflect the group’s commitment to keeping the board – and the group – fresh and competitive.

At its annual general meeting, TORBSA elected Tom Murray of T-Murr Exteriors Inc. in Kingsville, ON, as president. He joins past president Len Hewson of Hewson Brothers Supply, Brantford, ON; vice president Dante DiGiovanni of Blair Building Materials Inc., Maple ON; and treasurer Blake Oldershaw of Oldershaw Builders Supply Co. in Chatham, ON. Two new members also sit on the board: vice president operations Greg Drouillard, Target Building Materials in Windsor, ON; and secretary Laurie Kuntz of Prestige Acoustics in Waterloo, ON.

According to Bob Holmes, general manager of TORBSA, the group replaces two board members every year, as a way to keep bringing in fresh ideas. “Taking those roles on really has an impact on the professional development of those individuals.”

For example, Drouillard from Target Building Materials brings with him experience sitting on the boards and as chair of both the Specialty Tools & Fasteners Distributors Association (STAFDA) and the Lumber and Building Materials Association of Ontario (LBMAO).

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Ace Hardware launches smaller “Express” format

OAK BROOK, IL — Ace Hardware is rolling out a small-store format called “Express,” designed specifically for stores with 5,000 square feet or less. The company is targeting both current Ace retailers and other business owners seeking to integrate the Ace brand into their existing offerings.

“At this time, there are nearly 400 successful Ace Hardware retail locations operating within less than 5,000 square feet, and the consistent high performance of these stores proved we had an incredible opportunity to create a specialized, smaller-format Ace retail model,” said Mike Berschauer, director, retail development, at Ace Hardware Corp. The Express program accommodates about 11,000 SKUs.

Looking for ways to expand into markets that won’t support a full-sized store, the smaller format is suitable as a “store within a store” for existing grocery or paint stores, or as a smaller annex or branch store close to a hardware or building supply dealer’s existing location.

Ace also sees it as viable in both rural and urban markets. The owner of a farm or ranch supply store could add an Express-format Ace Hardware to fulfill the home improvement needs of the area. Likewise, a retailer in a metropolitan area who opens an Express store could offer convenience on a small footprint in an otherwise high-rent neighborhood.

Ace is providing incentives of up to $150,000 to take the program, plus a variety of resources – including merchandise profile guides, planograms, customized fixtures, and incentive programs.

There are currently Express Ace Hardware locations in six states: Kansas, Massachusetts, New York, North Dakota, Tennessee, and Texas. 

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Canadian Tire unveils Christmas product trends

    TORONTO — While the weather might have been hot and muggy, inside an old Victorian home in Toronto’s Cabbagetown area, the mood was distinctly festive. Here, Canadian Tire showcased its products for Christmas, with the retailer’s buyers walking observers through the house to see the various ornaments, craft ideas, and gift suggestions.

 Canadian Tire’s Carolyn Tremblay started us off with a look at some of the decoration ideas, including a Canadian Tire first: Debbie Travis Ltd. Collectible ornaments. “The whole idea of collectability – it plays on the idea of being able to add pieces year over year,” said Tremblay.

Affordability was another trend she highlighted. “Fifty percent of the items available from Canadian Tire will be under two dollars. But the value statement for our customers is really high.”

Ginny Hicks, the category business manager for small electrical appliances, told us to expect more colour in the kitchen. Case in point: the “iconic” KitchenAid mixer will be available in 26 colours come Christmas. CTR will also carry the Ninja brand of products exclusively in Canada (“as seen on TV” in the U.S.), including the Multi-Cooker, which does, well, more stuff than I had time to write down. Also, she advised us, single-cup coffee makers remain a hot item. “They are huge,” she emphasized. For the kids there were individualized four-foot artificial Christmas trees, already lit and ready to go.

Michelle Pilon, category business manager for power and stationary tools, , told us about the relaunch of the Mastercraft brand, with new colours and more powerful lithium batteries. (More on the Mastercraft relaunch in an upcoming edition! —Michael)

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Former RONA evp now a bicycle shop owner

    ST-BASILE LE GRAND, QC — Claude Bernier was one of the key figures of power in the RONA administration for 24 years – and considered one of CEO Robert Dutton’s right-hand men. But, when he retired in June, his weighty resumé and marketing skills found a new home – a two-store chain of bicycle shops on Montreal’s south shore.

After wielding power as executive vice president of marketing for Canada’s leading home improvement company – and bearing the weight of responsibility that the role carried with it – Bernier is now pursuing one of his passions. An avid cyclist (a medical scare some years back really got him focused on his health, and the bike became his recreation of choice), he even got his boss on a bicycle (Dutton rides a Pinarello).

Now, Bernier has partnered with his daughter, Melissa Bernier, to take over Cycles Performance, with locations in St-Basile Le Grand and Chambly. “I am not the mechanic – I don’t fix the bikes – but I do everything else,” says Bernier, who reveals, when pressed by HARDLINES, that he rides an Orbea.

But, he adds enthusiastically, he now has lots more bikes to choose from.

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Classifieds

______________________________________________________________________

Resumés

• Marketing professional with over 10 years experience looking to secure a new full-time position. view this resumé
• Fluently bilingual, highly motivated Business Development Professional with excellent strategic and operational capabilities. 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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July 16, 2012, Volume xviii, #29

“Right minds feel not love but reason. And what reasonable man truly loves.” —William Henry Drummond (Irish-born Canadian poet, 1854-1907)

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Summer Publishing Schedule:

HARDLINES will be published just once in August. There will be no issues Aug. 6, 19 or 26. However, the World Headquarters will remain open during this time as we update our research reports, work on the next issue of HHIQ, and prepare for the 17th Annual Hardlines Conference! —Michael McLarney, Editor
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Conference update: Sexton’s Steve Buckle confirmed to speak

 WORLD HEADQUARTERS, TORONTO — Steve Buckle is vice president and general manager of Sexton Group — and one of the founders of Canada’s newest buying group, Byco. He is also the latest addition to our roster of executive speakers at the 17th Annual Hardlines Conference.

Mr. Buckle will share his insights into the evolution of the independent dealer and the ways in which buying groups are evolving to meet those changes.

He joins an already impressive lineup of speakers at this year’s conference (if we do say so ourselves —Your Humble Editor), which will be held Oct. 25 and 26 at the Toronto Sheraton Airport Hotel. They include: Paul Straus, president and CEO of Home Hardware Stores Ltd.; Luc Rodier, executive vice president of Retail, RONA; Ferio Pugliese, executive vice president people, culture and inflight at WestJet; Geneviève Gagnon, CEO, Le Groupe Yves Gagnon; and John Herbert, General Secretary, EDRA, the European-DIY Retail Association.

Delegates at the conference will get the latest economic updates, as well. Is housing going up or down? Does the condo market count? Ted Tsiakoupolis, senior economist at Canada Mortgage and Housing Corp., will share his insights into the economy and the direction of Canada’s housing market.

To find out more about the 17th Annual Hardlines Conference, click here.

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RONA program turns rebates back to dealers

BOUCHERVILLE, QC — RONA inc. has a rebate program that has so far delivered a total of $9 million to affiliate dealers. This was in addition to regular discounts from the giant home improvement wholesaler.

Called the “Solidarity Program,” the rebate program, established in 2011, is open to affiliated RONA dealers across Canada and is characterized by a cash refund based on purchases made over the past year. In an interview with HARDLINES at the time the program was launched, RONA CEO Robert Dutton said it was developed as a way to help dealers consolidate their local markets. The Solidarity Program, he noted, rewards loyalty by offering a rebate of from 1%-6% on every purchase made through RONA’s own distribution.

According to Luc Rodier, RONA’s executive vice president, the program also provides RONA with the means to gather and analyze information received from the stores, to help RONA better understand the purchasing behaviour of affiliate dealers and tailor assortments more accurately to respond more effectively to the dealers’ needs.  

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Kent employees, ABSDA president on hand for life-saving recognition

Don Sherwood, president of the Atlantic Building Supply Dealers Association, is also president of Saint John’s Ambulance for New Brunswick. This three-year stint will be in addition to a history of volunteering with this organization for the past 12 years. He’s also a director, and recently attended the National Investiture in Ottawa at the Senate of Canada, presided over by Governor General David Johnston.

 Among those being invested was Nova Scotia Lieutenant Governor John James (Jim) Grant, whose career included being a Castle member in New Glasgow – and a past chair of the ABSDA. Shown (l-r): Don Sherwood of the ABSDA, and Governor General David Johnston.

Soon after, Sherwood was back in the provincial capital, where Graydon Nicholas, Lieutenant Governor of New Brunswick in Fredericton, who is also Chancellor of Saint John’s Ambulance, presided over the New Brunswick  Investiture and awarded Life Saving Medals to two Kent Building Supply employees in Petitcodiac, NB.

 Patrick Harrison (shown here with the Lieutenant Governor), and Ivan Anderson, were recognized for performing CPR on a customer suffering a heart attack in their store. This individual survived thanks to their quick action.

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Castle recruits new Winnipeg dealer

   MISSISSAUGA, ON — Castle Building Centres Group Ltd. has a new member: Matix Lumber Inc. located in Headingly, MB. This dealer joins more than 280 existing LBM, commercial, and specialty dealers that are part of Castle’s independent network.

Matix, which has been up and running since February, was founded by Tony Matic, who has been associated with a number of large building materials dealers in Winnipeg for more than 35 years, most recently as a partner in Springhill Lumber. Now, with his daughter, Sue Matic, he will begin construction in September of a new location in this community just west of Winnipeg on the TransCanada highway.

Matix Lumber is also the franchisee for Manitoba, Saskatchewan, and Northwestern Ontario for Honka Solid Wood Homes, a Finnish company that provides custom-built log home designs.

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Target confirms first Canadian locations

  MINNEAPOLIS — Target Corp. has confirmed the locations of its first stores here, which it intends to open in 2013. Target, which had taken over the leasehold interests of Zellers sites across the country, plans to open 125 to 135 stores in Canada starting in March and April 2013.

The first 125 stores will open in 2013, and later this year Target will confirm additional store locations that will open starting in early 2014 and beyond. While most of the sites have been announced already, the latest additions are Morrison Street in Niagara Falls, ON, and Centre Laval in Laval, QC, both of which are scheduled to open next year.

Target will spend at least $10 million remodeling each location. Target expects to employ between 150 and 200 team members at each store and has already started hiring its store leadership positions. Hourly recruitment will begin towards the end of 2012 and into 2013.  (Click here for the full list of Target store openings confirmed in Canada.)

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Classifieds

______________________________________________________________________

Resumés

• Marketing professional with over 10 years experience looking to secure a new full-time position. view this resumé
• Fluently bilingual, highly motivated Business Development Professional with excellent strategic and operational capabilities. 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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July 9, 2012, Volume xviii, #28

“You will find, as you look back upon your life, that the moments when you have really lived are the moments when you have done things in the spirit of love.” —Henry Drummond (Scottish evangelist and writer, 1851-1897)

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Home Depot identifies growth categories

ATLANTA ― Talking recently to a group of investors and analysts, Craig Menear, evp merchandising for The Home Depot, identified product categories that are generating growth for the giant retailer.

At the top of the list were lighting and blinds, which will get marketed strongly both in-store and online, as these two platforms become the twin engines of Home Depot’s execution. Menear admitted that the company had in fact lost market share in these categories in recent years, but he’s banking on increased investment in better quality products, coupled with broader assortments available online, to drive sales. (Thank heavens: those Home Depot track lights at the World HQ are held together with masking tape and binder wire! ―Editor)

Other areas with great potential include: LED technology, which is driving sales in lighting; water saving advances in faucets; and catering to an aging population, in a category he called independent living, with everything from safety bars and shower stools to home security and personal safety.

Power tools is another important category. “Home Depot owns the market share in this overall and will work to defend this position,” Menear said. Lithium power technology is adding pizazz to this sector, he noted.

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Satellite store is part of RONA’s new strategy

CALGARY — The new RONA satellite store in Calgary’s Douglasdale neighbourhood is the first of 10 satellite stores to roll out over the next 18 months as part of RONA’s “New Realities, New Solutions” strategic plan. Weighing in at just 5,400 square feet of retail space and carrying only 7,500 SKUs, the store will rely on the nearby McLeod Trail RONA big box for shipping of larger orders within 24-hours, and access online to 30,000 more products from www.rona.ca.

The small store is part of a larger rollout of RONA’s proximity store concept being implemented over the coming months and years, as the company downsizes or closes up to 24 of its big boxes across the country. These stores have been designed, says RONA, to better suit customers’ local needs.

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Halifax agency positions TIM-BR MART as go-to place

  HALIFAX — Working from the premise that people love the satisfaction of doing their own projects but often need a little help, branding agency Revolve developed a brand positioning campaign for TIM-BR MARTS Ltd.

“You Can Do Anything” became the catch phrase and new anchor for the TIM-BR MART retail brand, representing a network of more than 740 stores across Canada. The brand platform was launched in early May with television spots where DIY projects come to life in imaginative animations.

Music plays a big role in the campaign, using a theme song by indie band the Minnutes, as the anthem. The “You Can Do Anything” brand extends to radio, in-store, a new consumer website, and various social media initiatives. (Check out the TIM-BR MART TV ad here .)

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Canada well represented at European conference

  PARIS ― This city recently played host to a major conference for the European home improvement industry. The event, co-hosted by EDRA, the European DIY Retail Association, and fediyma, the federation of DIY manufacturers in Europe, brought together more than 250 delegates from across the Euro Zone to learn about the latest in DIY and home improvement trends.

 Canada had two delegates – both of them women from our industry (from l-r):  Beverly Allen, illustrious publisher of the HARDLINES empire of newsletters, trade magazines, seminars, and conferences (wow, our most unabashedly self-promoting plug in a long time ―Editor); stands with Caroline Nave, business development manager, Israel Export Institute; and fellow Canuck Jayne Seagrave, who is marketing director for Vancouver Tool Corp. and president of the Worldwide DIY Council.

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Walmart CEO: invest in your people

TORONTO ― Shelley Broader is the president and CEO of Walmart Canada. She oversees 333 stores with 85,000 employees who serve 1.1 million customers daily, supplied by more than 5,000 vendors and service providers.

Despite the sheer size of the company, Broader insists that the most important thing one can do in business is be a good leader. “You’ve got to say, ‘I want to be an incredible employer for my associates.’”

Talking recently to delegates at the annual convention of the Retail Conference of Canada, she urged them to make their own commitment to cultivating employees. “Building talent from within is one of the most rewarding jobs in retail,” she said emphatically.

Given that the retail sector has trouble attracting and keeping good people, Broader turned around the old notion that new hires must prove themselves to management. “Nowadays, it’s about whether you’re good enough to work for, not whether they are good enough for you.”

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Classifieds

Home Hardware Stores Limited – Beauti-Tone Paint
Paint Consultant – British Columbia and Yukon

JOB DESCRIPTION:

Working with the Beauti-Tone Paint division to develop Home Hardware Dealer accounts to maximize their Paint products potential. The Candidate must possess skills in:

• working with all levels of Store personnel
• assist with merchandising and Product selection at the Store
• update and implement new Products and Marketing initiatives at the stores
• training both at Store level and present to larger groups
• help to coordinate group advertising and special Regional events
• the job does require the successful candidate to live in British Columbia. extensive travel is required with variable hours..

QUALIFICATIONS:

• working with all levels of Store personnel
• Excellent people and communication skills, written and verbal
• Industry knowledge
• Good presentation and training skills.
• Knowledge of Home Hardware systems and services an asset

INTERESTED APPLICANTS, PLEASE EMAIL YOUR RESUME TO: hr@homehardware.ca or fax to (519) 449 5789; Attention HR.

Deadline: Friday, July 13, 2012
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Master Lock is currently seeking a Retail Accounts Executive to fulfill the following responsibilities:

The Retail Accounts Executive will be responsible for sales to strategic Retail National Accounts. Planning, developing, and full category management including implementation of ongoing specialized sales/marketing programs for these accounts and market segments, while also supporting the development and execution of corporate sales/marketing programs for the Retail business. Efforts will be directed toward the goal of developing collaborative customer relationships, account strategies, and business expansion.

Qualifications:

• A strong understanding of the retail market, along with at least 3 years of successful sales and marketing experience with large retail national accounts, preferably with Canadian Home Center channels.
• Experience should include the development and implementation of merchandising programs with customers in the Canadian Home Center class of trade.
• Education equivalent to college diploma or University degree required — prefer sales, marketing or business administration.

Submit Cover Letter, Resume and Salary Expectations to: Teresa Medeiros; tmedeiro@mlock.com
______________________________________________________________________

Resumés

• Marketing professional with over 10 years experience looking to secure a new full-time position. view this resumé
• Fluently bilingual, highly motivated Business Development Professional with excellent strategic and operational capabilities. 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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July 2, 2012, Volume xviii, #27

“A pessimist is a man who looks both ways before he crosses the street.” —Laurence J. Peter (Canadian educator and author of “The Peter Principle,” 1919-1990)

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Amidst change, Sexton Group is looking good for 2012

WINNIPEG — Steve Buckle is optimistic about the rest of the year. His dealers, all 285 members of the Sexton Group, say 2011 ended on a positive note, despite a slow start to that year. “The second half of the year was dynamite,” he says. He figures his dealers in total were up about 5% for the year. The biggest negatives came from dealers in larger urban markets such as Calgary, which felt the brunt of a slower economy.

Buckle, who is vp and general manager of Sexton, has found himself in the spotlight in recent weeks, following the departure of Sexton, along with Delroc Industries, from the Independent Lumber Dealers Co-operative. The two groups, along with Calgary-based Allroc, have formed a new buying group called Byco. Its focus is on negotiating purchases of core commodities, namely gypsum, insulation, and metal framing products.

A greater opportunity still, Buckle says, lays in the potential to develop an enhanced relationship with suppliers of products other than gypsum, fiberglass and steel framing. “These products make up two-thirds of our members purchases and they have spoken. They want some choice of vendors, with easy-to-understand programs and pricing. As market conditions keep changing, they need stability and consistency of product supply, rather than constantly changing suppliers based strictly on price. This is exactly what we intend to give them.”

He says that Sexton will continue to rely on its traditional sources for hardware, foremost among those being Chalifour Canada. “As far as we’re concerned, there will be no change with any of our hardware suppliers,” said Buckle. “We expect to continue with them throughout 2012.”

Buckle says his group is up about 18% year-to-date over last year. Some of that is growth from existing dealers, fuelled in part by some increases in commodity prices, and some of it is attributable to the contribution by new dealers.

Many of those dealers are being added in Ontario, a region that Buckle says was under-represented in recent years. “We’re pounding it out in Ontario,” he says confidently. “We’ve got a good following up and down the [Highway] 401, including GSDs [gypsum supply dealers] and yards, including one up in Timmins.”

But whether in Ontario or elsewhere across the country, Sexton Group’s recruitment efforts are guided by good business sense. “We want to make sure we bring people on who have really good credit and we want to make sure we bring people on who can really add value to the group.”

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Members’ departure opens up options for ILDC

AJAX, ON — The recent departure of two key members of ILDC will only make the remaining group stronger, as its membership is more aligned, says Andrew Battagliotti, general manager of ILDC.

The desire of Sexton Group and Delroc to focus on gypsum, insulation, and metal framing products resulted in the creation of a new group, Byco, along with a third member, Calgary based Allroc. But it also coincided with their departure from ILDC.

“They went forward with their own business model,” says Battagliotti, “but it didn’t fit in with our own model.”

However, he notes, the changes in ILDC’s membership will only be a positive for the future. “In the long run, it just clears the table for further growth for our group,” he says. That includes the potential for additional membership down the road.

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UJ Robichaud celebrates Church Point grand opening

  CHURCH POINT, NS — UJ Robichaud TIM-BR MART www.ujr.ca , a dealer based in Meteghan Centre, NS, celebrated the grand opening of its second location here last week. The store was the dream of Marc Robichaud, who passed away in January at the age of 36 following a brief battle with cancer. During the ceremony, a plaque was unveiled in dedication of Marc’s memory.

UJ Robichaud TIM-BR MART was founded in 1867 and is a full service building supply and hardware store catering to both new home builders and renovators in Southwestern Nova Scotia. The new Church Point store was originally slated to open in spring 2011, but was delayed by Marc’s struggle with cancer.

 In 2009, Robichaud was awarded Retail Innovator of the Year for Green Marketing by the North American Retail and Hardware Association (NRHA). In 2007, the store was named Lauriers de la PME for service excellence within the francophony of Canada. In 1993, it was officially designated an Atlantic Heritage Company by the Government of Canada.

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RONA garners recognitions for sustainability

  BOUCHERVILLE, QC — RONA inc. made it on the Maclean’s/Sustainalytics 2012 list of the 50 most socially responsible companies in Canada.

 Companies are ranked based on their performance using a wide range of indicators, such as environmental initiatives, impact on local communities, treatment of employees, and supply chain management. The companies are then grouped according to their industry sector and assigned a ranking.

RONA was recognized for its partnership with the David Suzuki Foundation, and for two new policies: its Paper Products Use and Procurement Policy and the Sustainable Packaging Policy. It also got points for the extension of its paint recovery program to Manitoba and the Atlantic Provinces.

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Canadian Tire pilots in-store driving school

TORONTO — Canadian Tire Corp. has started its own driving school, called “Canadian Tire Drivers Academy.” The pilot program in Ontario will help teach consumers about road safety as well as car maintenance.

The project is part of a strategy to strengthen the company’s presence in the automotive market, a key component of CEO Stephen Wetmore’s plan to fend off competition and improve customer loyalty. Students will take the classes in-store and learn how to drive in new 2012 Chevrolet Cruze or Sonic cars that will also be made available for road tests.

Those who complete the program will receive a free Canadian Tire Drivers Club membership with complimentary roadside assistance for one year.

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Classifieds

Home Hardware Stores Limited – Beauti-Tone Paint
Paint Consultant – British Columbia and Yukon

JOB DESCRIPTION:

Working with the Beauti-Tone Paint division to develop Home Hardware Dealer accounts to maximize their Paint products potential. The Candidate must possess skills in:

• working with all levels of Store personnel
• assist with merchandising and Product selection at the Store
• update and implement new Products and Marketing initiatives at the stores
• training both at Store level and present to larger groups
• help to coordinate group advertising and special Regional events
• the job does require the successful candidate to live in British Columbia. extensive travel is required with variable hours..

QUALIFICATIONS:

• working with all levels of Store personnel
• Excellent people and communication skills, written and verbal
• Industry knowledge
• Good presentation and training skills.
• Knowledge of Home Hardware systems and services an asset

INTERESTED APPLICANTS, PLEASE EMAIL YOUR RESUME TO: hr@homehardware.ca or fax to (519) 449 5789; Attention HR.

Deadline: Friday, July 6, 2012
______________________________________________________________________

Master Lock is currently seeking a Retail Accounts Executive to fulfill the following responsibilities:

The Retail Accounts Executive will be responsible for sales to strategic Retail National Accounts. Planning, developing, and full category management including implementation of ongoing specialized sales/marketing programs for these accounts and market segments, while also supporting the development and execution of corporate sales/marketing programs for the Retail business. Efforts will be directed toward the goal of developing collaborative customer relationships, account strategies, and business expansion.

Qualifications:

• A strong understanding of the retail market, along with at least 3 years of successful sales and marketing experience with large retail national accounts, preferably with Canadian Home Center channels.
• Experience should include the development and implementation of merchandising programs with customers in the Canadian Home Center class of trade.
• Education equivalent to college diploma or University degree required — prefer sales, marketing or business administration.

Submit Cover Letter, Resume and Salary Expectations to: Teresa Medeiros; tmedeiro@mlock.com
______________________________________________________________________

Resumés

• Marketing professional with over 10 years experience looking to secure a new full-time position. view this resumé
• Fluently bilingual, highly motivated Business Development Professional with excellent strategic and operational capabilities. 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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June 25, 2012, Volume xviii, #26

“We know the human brain is a device to keep the ears from grating on one another.” —Peter De Vries (American editor and novelist, 1910-1993)

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Sexton Group: looking good for 2012

WINNIPEG — Steve Buckle is optimistic about the rest of the year. His dealers, all 285 of them, members of the Sexton Group, says 2011 ended on a positive note, despite a slow start to that year. “The second half of the year was dynamite,” he says. He figures his dealers in total were up about 5% for the year. The biggest negatives came from dealers in larger urban markets such as Calgary, which felt the brunt of a slower economy.

Buckle, who is vp and general manager of Sexton, says his group is up about 18% year-to-date over last year. Some of that is growth from existing dealers, fuelled in part by some increases in commodity prices, and some of it is attributable to the contribution by new dealers.

Many of those dealers are being added in Ontario, a region that Buckle says was under-represented in recent years. “We’re pounding it out in Ontario,” he says confidently. “We’ve got a good following up and down the [Highway] 401, including GSDs [gypsum supply dealers] and yards, including one up in Timmins.”

But whether in Ontario or elsewhere across the country, Sexton Group’s recruitment efforts are guided by good business sense. “We want to make sure we bring people on who have really good credit and we want to make sure we bring people on who can really add value to the group.”

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Leaders will share stories at Hardlines Conference

WORLD HEADQUARTERS, TORONTO — The business of retail is also the story of people. The people behind the companies that make this industry so healthy and so dynamic have much to share in personal terms. And those personal terms are the ones by which delegates at the upcoming Hardlines Conference will connect with speakers in the conference›s “Profiles in Leadership” series.

The program, introduced last year, proved to be a high point of the 2011 conference. This year, two C-level executives will share their personal stories with delegates.

Paul Straus, president and CEO, Home Hardware Stores Ltd., has worked for Home Hardware since its founding in 1964. In 1999 he was appointed vice-president and chief executive officer. At the company’s annual shareholders’ meeting in April, 2010 he was appointed president and CEO.

Since taking over two years ago, Straus has quietly made his personal mark on the company felt more strongly than ever. HARDLINES is honoured that he will share his story with us at this year’s conference.

Dennis Nykoliation has an impressive cv as a building materials executive for some of this country’s leading brands. His titles have included president and CEO of CanWel Building Materials, president and general manager of Black & Decker Canada (in fact, his business plan for managing this brand became a university case study!), president of GSW Building Products, and CEO Cambridge Towel Corp.

Nykoliation is a world-class presenter who mixes humour with a strong business message that reflects his many years on the front lines of home improvement retailing.

The 17th Annual Hardlines Conference will be held Oct. 25-26 at the Toronto Sheraton Airport Hotel and Conference Centre. Once again this year, it will feature the Outstanding Retailer Awards Gala on the evening of Oct. 25, presented by Hardware Merchandising. For more information about the entire event, click here .

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Canadian online shopping site goes live

  TORONTO ― Drew Green, CEO of Shop.ca , says Canadians have access to online sites now, but the U.S.-based companies offer limited selection, high shipping fees – and often long waits. His company wants to change all that.

Shop.ca went live early in June, giving Canadians the ability to choose from more than 15 million products online. That assortment includes a strong range of garden, housewares, kitchen appliances, and home electronics, plus power tools and lighting. The company has alliances with manufacturers (Black & Decker, Salton) and bricks-and-mortar retailers (Sears Canada).

Green says the company has both the intellectual capital and financial backing to make the new site a winner. His background includes senior executive positions at a mobile marketing company, and at Shop.com and DoubleClick, which was eventually purchased by Google.

Shop.ca also has near-celebrity status support: futurist Don Drummond and Rana Florida, CEO of Creative Class Group.

“We’ve signed and integrated 15.3 million products,” says Green. “We’re creating the largest Canadian site in history.”

(Drew Green is the latest executive to sign on as a keynote speaker at our 17th Annual Hardlines Conference, Oct. 25-26. Click here for the full lineup of amazing speakers!)

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Home Depot identifies growth categories

ATLANTA ― Talking recently to a group of investors and analysts, Craig Menear, evp merchandising for The Home Depot, identified product categories that are generating growth for the giant retailer.

At the top of the list were lighting and blinds, which will get marketed strongly both in-store and online, as these two platforms become the twin engines of Home Depot’s execution. Menear admitted that the company had in fact lost market share in these categories in recent years, but he’s banking on increased investment in better quality products, coupled with broader assortments available online, to drive sales. (Thank heavens: those Home Depot track lights at the World HQ are held together with masking tape and binder wire! ―Editor)

Other areas with great potential include LED technology, which is driving sales in lighting; water saving advances in faucets; and catering to an aging population, in a category he called independent living, with everything from safety bars and shower stools to home security and personal safety.

Power tools is another important category. “Home Depot owns the market share in this overall and will work to defend this position,” Menear said. Lithium power technology is adding pizazz to this sector, he noted.

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Walmart CEO: invest in your people

  TORONTO ― Shelley Broader is the president and CEO of Walmart Canada. She oversees 333 stores with 85,000 employees, who serve 1.1 million customers daily, supplied by more than 5,000 vendors and service providers.

Despite the sheer size of the company, Broader insists that the most important thing one can do in business is be a good leader. “You’ve got to say, ‘I want to be an incredible employer for my associates.’”

Talking recently to delegates at the annual convention of the Retail Conference of Canada, she urged them to make their own commitment to cultivating employees. “Building talent from within is one of the most rewarding jobs in retail,” she said emphatically.

Given that the retail sector has trouble attracting and keeping good people, Broader turned around the old notion that new hires must prove themselves to management. “Nowadays, it’s about whether you’re good enough to work for, not whether they are good enough for you.”

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Classifieds

Master Lock
Retail Accounts Executive

Master Lock is currently seeking a Retail Accounts Executive to fulfill the following responsibilities:

The Retail Accounts Executive will be responsible for sales to strategic Retail National Accounts. Planning, developing, and full category management including implementation of ongoing specialized sales/marketing programs for these accounts and market segments, while also supporting the development and execution of corporate sales/marketing programs for the Retail business. Efforts will be directed toward the goal of developing collaborative customer relationships, account strategies, and business expansion.

Qualifications

• A strong understanding of the retail market, along with at least 3 years of successful sales and marketing experience with large retail national accounts, preferably with Canadian Home Center channels.
• Experience should include the development and implementation of merchandising programs with customers in the Canadian Home Center class of trade.
• Education equivalent to college diploma or University degree required — prefer sales, marketing or business administration.

Submit Cover Letter, Resume and Salary Expectations to: Teresa Medeiros; tmedeiro@mlock.com
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Resumés

• Marketing professional with over 10 years experience looking to secure a new full-time position. view this resumé
• Fluently bilingual, highly motivated Business Development Professional with excellent strategic and operational capabilities. 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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June 18, 2012, Volume xviii, #25

“I saw a werewolf drinking a piña colada in Trader Vic’s; His hair was perfect.” — Warren Zevon (American songwriter, 1947-2003)

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Top executives to speak at Hardlines Conference

WORLD HEADQUARTERS, TORONTO — The industry’s leading information and networking event has lined up another world-class roster of speakers for this year’s event.

The 17th Annual Hardlines Conference, which will be held at the Toronto Sheraton Airport Hotel Oct. 25-26, is expected to attract more than 200 dealers, executives, and managers from the vendor, wholesaler, and retail segments of the home improvement industry in North America. With a focus on the changing consumer landscape, the theme of the conference is “It’s all about the customer.”

Among the speakers confirmed:

• Paul Straus, president and CEO, Home Hardware Stores Ltd.;
• Luc Rodier (right), executive vice-president, retail for RONA inc.;
• Geneviève Gagnon, CEO of Groupe Yves Gagnon, representing the best among a new generation of entrepreneurs in the industry;
• Ferio Pugliese, executive vice-president, people, culture and inflight, WestJet;
• Ted Tsiakopoulos, senior economist, Canada Mortgage and Housing Corp.;
• John Herbert (right), general secretary, European-DIY Retail Association and former president of Home Depot’s EXPO Design Center, West Coast;
• Dennis Nykoliation, past president and CEO of CanWel Building Materials, president and general manager of Black & Decker Canada, president of GSW Building Products, and CEO Cambridge Towel Corp.;

The 17th Annual Hardlines Conference will be held Oct. 25-26 at the Toronto Sheraton Airport Hotel and Conference Centre. Once again this year, it will feature the Outstanding Retailer Awards Gala on the evening of Oct. 25, presented by Hardware Merchandising. For more information about the entire event, click here.

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Home Furniture lays out trends for coming season

ST. JACOBS, ON — Dealers and staff from 50 Home Furniture stores across Canada came to the company’s head office for the annual Home Furniture market. Called “Live and In Colour,” the event offered a preview of home furniture and style trends for 2013.

The show took up 20,000 square feet of space in Home’s distribution centre, and featured the best sellers for 2012 and trends for 2013, said Ryan Van Stralen, marketing manager for Home Furniture Stores.

The Home Furniture banner is now in 61 locations, some of them stand-alone stores and some of them “combo” stores that are attached to, or right inside, an existing Home Hardware outlet.

Van Stralen identified some key trends for the category. Grey is the strong colour for the coming season: “It’s a neutral tint that can be built on with colours and accents.” The reclaimed look is influencing materials and textures. Think reclaimed wood. Writing is a design feature appearing on some furniture, as well. And, he adds, white – including off-white and antiqued white – has made its way into the bedroom.

A move to smaller pieces continues a trend from previous years. “People are looking to downsize now, and very often they have multiple-use rooms.”

While Home Furniture continues to be a strong banner for Home Hardware, the category felt the brunt of the economic downturn. “We’ve being doing well. Like others in furniture retail, we have struggled in the past few years, but we’ve held onto market share,” says Van Stralen. “Big-ticket items are the first to be on the chopping block for discretionary income,” he adds.

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UFA launches “Small Town Heroes” contest

 CALGARY — UFA’s Small Town Heroes contest will again this year identify and reward individuals in rural Alberta who go above and beyond for their communities. This year, UFA has raised the stakes and two grand prize winners will each receive $10,000 dollars for a community project — and an exclusive Paul Brandt concert in their home town. Eight runners up will receive $2,500 for a community project. Nominations for the 2012 Small Town Heroes contest are open until July 22.

“The UFA Co-operative was built by small town heroes dating back to 1909. These pioneers lobbied for equal access to education, campaigned for the rights of family and women, created the Department of Health, passed the Municipal Hospitals Bill, established and improved the health care system, improved roads, and much more,” said Bob Nelson, president and CEO of UFA Co-operative Limited.

Country music superstar Paul Brandt will hit the road in October on the third annual Small Town Heroes bus tour. The bus will make several stops in small towns throughout Alberta for meet-and-greet opportunities at local UFA Farm and Ranch Stores and UFA Petroleum Agencies.

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ENERGY STAR awards home improvement firms

TORONTO — ENERGY STAR, the symbol of energy efficiency from Natural Resources Canada, recognizes organizations that are the best performing and most committed to the progression of energy efficiency every year. The 2012 Manufacturer of the Year Award for market transformation went to JELD-WEN, the windows and doors maker.

Thanks to tools such as the energy savings calculator based on the climatic zones and in-depth articles on the JELD-WEN blog, the organization helps to inform people via social media and various micro-sites. JELD-WEN will make a donation to the David Suzuki Foundation for each unique visitor to the en.jeld-wen.ca/energystar website for the entire month of June.

Another window and door manufacturer, All Weather Windows, was the winner of the ENERGY STAR Participant of the Year award. This is the company’s third ENERGY STAR award win. Vinyl Window Designs Ltd. was presented the award for Advocate of the Year – Specific Product.

Another winner is Sears Canada, named the 2012 ENERGY STAR Retailer of the Year. In 2011, Sears Canada sold over 950,000 ENERGY STAR qualified products, including major appliances, which the company estimates saved its customers over $80 million in energy costs. This is the fifth year in a row that Sears received this award.

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Housing starts expected to moderate

 OTTAWA — Market activity for both new and existing homes is expected to moderate through the end of 2012, according to Canada Mortgage and Housing Corp.’s second-quarter Housing Report. Housing starts were up in the early part of the year due to the multiples segment. However, housing starts are expected to moderate as 2012 progresses.

On an annual basis, housing starts will be in the range of 182,300-220,600 units in 2012, with a point forecast of 202,700 units, according to CMHC forecasts. In 2013, housing starts will be in the range of 175,100-213,500 units, with a point forecast of 195,700 units.

Existing home sales will be in the range of 431,200-516,100 units in 2012, with a point forecast of 472,300 units.

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Home Depot seeks growth through innovation, service

 ATLANTA — At its presentation last week to analysts and investors, executives of The Home Depot outlined plans to maximize their latest quarter of strong results and take full advantage of the initial signs of recovery emerging in the U.S.

Craig Menear, evp merchandising for the company, talked about “restoring the competitive advantage of Home Depot in the market place.” He pointed to the change in consumer habits and Home Depot’s desire to stay abreast of those changes. “Today, the customer is in control and we have to align our business to know when and where the customer wants to shop.”

That alignment will include both online and bricks-and-mortar strategies, in what he calls a move “from transaction to relationship” as regards the giant retailer’s involvement with its customers.

He described three legs to that relationship: productivity and efficiency – improved logistics and operations; passionate customer service when dealing with customers; and product authority for home improvement products and projects. All this will require offering innovative products that make DIY easier for consumers – backed by knowledgeable staff – all of which Menear was confident his company can deliver on.

Home Depot recently brought all its tool and small engine repairs in-store, after being in the hands of a third party in the past. Menear said he expects Home Depot “to excel at in-store emergency maintenance and repairs.

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Classifieds

Master Lock
Retail Accounts Executive

Master Lock is currently seeking a Retail Accounts Executive to fulfill the following responsibilities:

The Retail Accounts Executive will be responsible for sales to strategic Retail National Accounts. Planning, developing, and full category management including implementation of ongoing specialized sales/marketing programs for these accounts and market segments, while also supporting the development and execution of corporate sales/marketing programs for the Retail business. Efforts will be directed toward the goal of developing collaborative customer relationships, account strategies, and business expansion.

Qualifications

• A strong understanding of the retail market, along with at least 3 years of successful sales and marketing experience with large retail national accounts, preferably with Canadian Home Center channels.
• Experience should include the development and implementation of merchandising programs with customers in the Canadian Home Center class of trade.
• Education equivalent to college diploma or University degree required — prefer sales, marketing or business administration.

Submit Cover Letter, Resume and Salary Expectations to: Teresa Medeiros; tmedeiro@mlock.com
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