December 12, 2011, Volume xvii, #47

“Christmas is the season for kindling the fire of hospitality in the hall, the genial flame of charity in the heart.” — Washington Irving (American author and historian, 1783-1859)

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Merry Christmas from all of us at HARDLINES! We wish you all, our Faithful Readers, a safe and happy holiday. —Beverly, Brady, Margaret, Katherine and Michael
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Holiday publishing schedule: There will be no issue next week. We are in the office up to Christmas, working on the Annual Market Share Report and the next issue of HHIQ. Back to our regular weekly schedule on Jan. 2, 2012. —Michael
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Home Hardware shuffles execs

ST. JACOBS, ON — Home Hardware Stores Limited has announced two new appointments to the company’s senior management team. John Dyksterhuis has been appointed vice-president, distribution and Darrin Noble has been appointed vice-president, general manager, Burford Paint and Home Products.

“Both John and Darrin have played key roles in building and improving our Dealer program and their leadership and strategic acumen are solid additions to our senior management team,” said Paul Straus, President and CEO, Home Hardware Stores Limited.

Dyksterhuis has been with Home Hardware for 25 years, beginning in distribution and then moving to a merchandise role. Most recently, he served as the building products and heating product manager in merchandise – hardlines. In his new role, he will oversee Home’s warehouse and distribution system. He fills a role left by the passing in July of this year of Don Kirck, who was vice-president, distribution and manufacturing for the company.

Noble is a 25-year veteran of the paint industry who had served as Home’s general manager at the company’s Beauti-Tone Paint and Home Products division for the past four years. He will now head the division along with Home’s W.D. Packaging business.

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RONA introduces modular home sales for dealers

MONTREAL — A weak market for housing in the U.S. – including pre-fab homes – has a number of modular home builders looking north for new business. That, says Maxime Harvey, merchandising director for forest products at RONA inc., has taken a bite out of markets in smaller communities that have traditionally been served by local dealers.

RONA has come up with a way for its independent dealers to fight back, with a pre-fab home program of its own. Called “Fabrica,” the program represents a partnership with modular home builders in different provinces. That partnership will be two-pronged: consumers will be able to order full home packages that will constructed, delivered by the modular home builder; home builders and contractors will be able to order pre-constructed components, including walls and roof, ready for finishing. A system of pre-assembled, insulated walls is available in lengths up to 40 feet long. “A building team could get the walls up on an existing foundation within a day,” says Harvey.

RONA’s own designers can help potential homeowners choose a house, drawing from 1,200 existing plans – “and within minutes, they can develop a real quote with a list of materials.”

RONA’s partner in Ontario is The Canada Builds Company, a home and cottage manufacturer in Lindsay, ON. Roy Graham, president and CEO of the company, says his company is equipped to ship right across the province and he looks forward to the program rolling out in the spring. “The dealer interest has been quite strong,” he says. “We’re really pleased with the results of our discussions with them.”

According to Harvey, dealers no longer have to sit by and watch building material sales go to a competitor. And, he adds, “Once you are able to capture the customer with the pre-fab part, then you get them to stay inside the store to sell them everything else.”

Harvey expects the program to up and running on a trial basis with a handful of dealers in Quebec, Ontario, and the West by this spring.

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Canadian mission to Cologne will include store tours, buyer networking

WORLD HEADQUARTERS, TORONTO — Any retailer looking for new lines or Canadian vendor seeking new markets should join HARDLINES for our mission to Germany next spring.

HARDLINES is heading up a tour of best practices at German DIY stores, Feb. 28, which will end in Cologne at the International Hardware Fair, March 4-7, 2012. One of our tour guides will be John Herbert, General Secretary of EDRA, the European DIY Retail Association.

The Cologne show is the world’s largest hardware show and attracts retailers, buyers, and suppliers from all over the world for the latest new products and trends. The HARDLINES mission will also include the World Famous Hardlines International Canada Night Reception. Space is limited so contact Beverly Allen right away or call: 416-489-3396.

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OGC retail system integrates Orgill compatibility

MONTREAL — OGC, a Canadian IT supplier for the hardware and building materials industries, has developed a module for its OGC-Plus business management system that will communicate directly with Orgill to receive and transmit stock management data (price changes, new products, etc.) and other information.

Orgill has been making waves in Canada as it signs up Canadian customers for its 35,000-plus SKUs of Canadian-compliant products. Now, with OGC software, merchants can automatically send purchase orders to Orgill and receive communications back from the Memphis-based wholesaler. OGC says its OGC-Plus platform already communicates with the majority of Canadian groups in hardware and building materials.

With the addition of this module, OGC has made its two management solutions (OGC-Plus and SpruceWare.NET) compatible with Orgill.

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RONA realigns executive team

BOUCHERVILLE, QC — A major step in the regional reorganization of RONA’s management team has occurred with the appointment of Luc Rodier as executive vice-president, retail. He was formerly vp for Western Canada, working out of RONA’s Calgary distribution centre. In his new role, Rodier will lead the retail activities of all of the company’s stores, while remaining in Calgary.

RONA’s new regionalized structure was put in place earlier this year and regroups RONA’s retail activities by region rather than by store type. Rodier will oversee the retail operations of RONA’S 682 affiliated dealers and 269 corporate and franchise stores across Canada.

Jean-Luc Meunier, who had been RONA’s senior vice-president, affiliate dealer-owner network development, has left the company to become CEO of Familiprix, a dealer-owned chain of pharmacies based in Quebec with sales of about $1.5 billion. Meunier’s duties will be covered off in part by Dominique Boies, the recently appointed evp and CFO, who will assume leadership of acquisition and real estate departments. Rodier will assume leadership of sales and support to affiliated dealers.

At the board level, Robert Pare has been made vice chairman of the RONA board of directors. Pare is a corporate lawyer and partner at Fasken Martineau Dumoulin S.E.N.C.R.L., s.r.l. He has been an administrator of RONA and member of the nominating and corporate governance committee since 2009.

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Gift cards will be popular again this Christmas

NEW YORK ― Gift cards are expected to be a highly popular gift this holiday season, and now there are even online options for turning those cards into cash. According to a survey by the National Retail Federation, 57.7% of American shoppers say they’d like to receive a gift card this holiday season. The survey also found that 88.0% of people will buy gift cards this Christmas, an increase from 77% last year.

An average of $155.43 is expected to be spent on gift cards, up from $145.61 in 2010.

In Canada, for the fifth consecutive year, gift cards are also expected to be the most popular holiday gift. CardSwap is an online gift-card exchange site. It has released its list of the season’s five most sought-after gift cards. They are for the Apple Store, Best Buy, Chapters Indigo, Hudson’s Bay Company, and The Keg Steakhouse.

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Classifieds
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A Sales Professional is required WITH PROVEN SALES ABILITY selling hardware, home improvement and seasonal lawn and garden products to retailers and wholesale distributors in the province of Quebec.

As a member of our team you will conduct presentations to key retail and wholesale accounts. You are bilingual, have related sales experience and have above average computer skills.

Please forward your resume to: grantbros1@rogers.com

_______________________________________________________________________

Resumés

• 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
• A goal oriented sales director that has superior management skills, customer oriented, with in depth knowledge of the industry and the ability to achieve results. 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

Connect with us!

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December 5, 2011, Volume xvii, #46

“The colour of springtime is in the flowers, the colour of winter is in the imagination.” — Terri Guillemets (American anthologist, 1973- )

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HOLIDAY PRINTING SCHEDULE: Please note, Faithful Reader, that we will publish HARDLINES just once more this month. There will be no issue on the 26th. We are in the office up to Christmas, working on the Annual Market Share Report and the next issue of HHIQ. Back to our regular weekly schedule on Jan. 2, 2012. —Michael

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New products, new services at RONA show

MONTREAL — The diversity of services available to RONA dealers and managers was evident at the latest RONA show, held here last week.

Those services started as soon as one entered the show itself. Front and centre was a model home showcasing a new pre-fab house program for dealers. Called “Fabrica,” it’s been developed in partnership with Canadian modular home builders (more on this in next week’s issue —Michael).

A range of new products was also being shown, in the distinctive way that RONA conducts its shows, whereby vendors don’t present products from their own booths, but in “departments” that mimic the interior of a store, complete with a fully merchandised department.

(Click here for a video tour of the RONA show at Hardlines TV!)

RONA used the show as a forum for promoting its newly announced initiatives in sustainability. Two new policies, one on paper products use and the other on sustainable packaging, are, says the company, another way in which “RONA is taking concrete and significant steps toward the environment.” Show here (left) Lyn Jauncey, key account manager at Masco, shows off a new touchless faucet at the RONA show.

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TruServ introduces UNIQ banner at RONA show

MONTREAL — TruServ Canada, the Winnipeg-based wholesaler acquired by RONA a year ago, had a full team on hand at the latest RONA show to present options for dealers interested in other banners besides RONA. TruServ had already launched the TRU banner to replace True Value for its hardware and building centre dealers in the spring. UNIQ got its official coming out at this RONA show. The banner is a French-language version of the new banner launched by TruServ last spring at its own show in Winnipeg.

Bill Morrison, president of TruServ Canada, and his team from Winnipeg (Include Serge Vézine, shown here) were on hand talking about the TRU program, which requires a smaller financial commitment than the full RONA bannered affiliation. According to Morrison, the most interest is coming from existing RONA dealers who want to expand in their local markets where there may be no room for another RONA. It also has appeal, he added, for new recruits who are switching banners or are considering entering the business from the ground up.

“This is a much simpler package,” Morrison said, one that is suitable for smaller communities. “Really, what RONA has recognized is that one size does not fit all. The TRU-UNIQ package can really serve smaller and niche dealers.”

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RONA Show moves in 2012

MONTREAL — The future of the RONA show itself was also a topic of discussion on the floor of the Palais de congrès last month. RONA will hold next year’s event in Toronto at the Metro Convention Centre, Sept. 20-22.

However, this will be the last time the show will move outside of Montreal. Last year, it was held in Calgary, and there were plans, at one point, to hold it in Vancouver, then rotate the show annually from Montreal to Toronto to a city in the West. Those plans have been scrapped due to the high costs of moving so many people from head office to a different province to operate the show.

The timing of the 2012 show will pose a challenge for many vendors, as it overlaps with the pre-market conference that precedes the Home Hardware Fall Market in St. Jacobs, ON. For many vendors, this would be setup day for the Home Hardware event.

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Loblaws digs into history with Maple Leaf Gardens store

TORONTO — Anticipation around the opening of the new Loblaws store in the historic Maple Leaf Gardens was indeed intense in this city. People began lining up at 11:15 the night before to see what has become of the legendary Gardens, now remade into an urban grocery store with a rink on the top floor that is part of Ryerson University.

HARDLINES was there and got a tour from Mario Fatica, vice-president, planning development and approvals at Loblaw.

“The intent was to restore the building to its former glory,” Fatica says. That includes using a number of elements from the original Gardens. A collage made of blue chairs from the arena sits high on the wall as one enters, and illumination there and elsewhere in the building comes from the Gardens’ actual light fixtures.

The coolest part of the tour was a spot in grocery aisle 25: a nine-inch red dot on the floor marks the location of what was once centre ice.

(Click here for an exclusive HARDLINES photo tour of the new Loblaws at Maple Leaf Gardens.)

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Classifieds

______________________________________________________________________

A Sales Professional is required WITH PROVEN SALES ABILITY selling hardware, home improvement and seasonal lawn and garden products to retailers and wholesale distributors in the province of Quebec.

As a member of our team you will conduct presentations to key retail and wholesale accounts. You are bilingual, have related sales experience and have above average computer skills.

Please forward your resume to: grantbros1@rogers.com

_______________________________________________________________________

Resumés

• 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
• A goal oriented sales director that has superior management skills, customer oriented, with in depth knowledge of the industry and the ability to achieve results. 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

Connect with us!

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November 28, 2011, Volume xvii, #45

“ Reading is to the mind what exercise is to the body.” 
—Richard Steele (Irish writer and politician, 1672-1729)

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HOLIDAY PRINTING SCHEDULE: Please note, Faithful Reader, that we will publish HARDLINES just once next month. There will be an issue on Dec. 12, but no issue next week or on the 19th and 26th. We are in the office up to Christmas, working on the Annual Market Share Report and the next issue of HHIQ. Back to our regular weekly schedule on Jan. 2, 2012. —Michael

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LBMAO holds second show in one year

TORONTO — The Canadian Home Improvement Show, the two-day buying show hosted by the Lumber and Building Materials Association of Ontario, was held last week – for the second time this year.

The show, which has been held each year in February, including 2011, made the move to a November time slot. Show organizers took a gamble and squeezed the first November show into this year.

Retailers voted Mikita’s new cordless compound mitre saw the best new product at the 2011 Canadian Home Improvement Show.

And that gamble paid off, sort of. Vendors stepped up to support the event, with about the same number of exhibitors as the last show, although with many taking smaller booths this time.

But more important, dealers showed up, as well. Numbers were not as robust as hoped, but a number of key Ontario dealers were there, with support staff in tow, giving exhibitors a chance to talk to big customers such as Soo Mill & Lumber from Sault Ste. Marie and Copp’s Buildall out of London. Dealers from Home Hardware, TIM-BR MART, Castle and even some RONA independents including Moffatt and Powell were there, as well. A number of specialty paint and flooring dealers also attended.

“We knew it was going to be a challenge this year, but we’re taking a long-term view,” says Dave Campbell, president of the LBMAO. “We feel it remains a real buying show, despite the current economic conditions.”

(Click here to view some of the new products that
were available at this year’s show on Hardlines TV!)

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BMR dealers find décor options at latest show

QUEBEC CITY — From palette deals to sophisticated décor items, the 45th buying expo of the wholesaler and buying group BMR offered a range of product and merchandising options.

Those liquidation and palette sales, for example, are being supported by flyer promotions, of which BMR now has one every two weeks. Down the hall, the company’s “Boutique Inspiration” features a hall filled with textured wall coverings, artificial flowers, mirrors, vases, framed pictures and more. There’s even a full lighting collection, now in its second year, backed by a complete catalogue of its own.

The Boutique Inspiration program, merchandised as a store within a store, has been evolving for the past three years, and now even has the support of celebrity designer Frances Arcand, whose program on TV BMR sponsors.

While they look buff, Bruno Baldessari, retail project director at BMR says, “These are affordable decoration items.” He adds that anyone who commits to the Frances Arcand collection in its store, must have a style consultant in the store at all times and be able to provide at-home consulting.

Dealers were keen to take advantage of the new lines – and responsive to BMR’s range of services. “You can tell they love the industry,” says Bill Towndrow of Lunenburg BMR Hardware. “They know what they want to do. BMR walks the talk. BMR can afford to take the long term-view, similar to our business strategy.

“BMR makes us competitive to the biggest stores.”

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Home décor centre promises “everything under one roof”

TORONTO — A new-concept home design centre is in the works in Toronto. Called “Improve,” the site will feature about 400 show rooms occupied by companies engaged in the home improvement and construction businesses.

The 310,000-square-foot centre will be built on 21 acres of land and promises to offer a full spectrum of construction goods and services. All show rooms will be about 500 square feet. Companies will buy, not lease, their space, at a cost of approximately $300,000, plus a monthly advertising fee of $200. The centre will also feature different restaurants, bars, meeting rooms, and conference halls for presentations of new technologies and services.

The idea behind the concept is to put in one trading centre a group of competing, but related, businesses, creating an on-going construction and renovation trade show.

(View more full size pictures of the facility here)

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Canadians turn to internet shopping during holidays

TORONTO — Canadians are expected to shop online more than ever this holiday season. According to its own data, eBay Canada predicts that Sunday, Nov. 27 was Canada’s busiest online shopping day of 2011. More than half a million shoppers are expected to shop on eBay during “Super Sunday,” buying nearly two gifts every second for friends and family, up 17% over last year.

Avoiding crowds, round-the-clock access, and great deals are all factors behind the increased popularity of online shopping, according to research commissioned by eBay and conducted by Leger Marketing. The online auction company further expects 40% of Canadian shoppers to do some or all of their holiday shopping online this year, an increase of approximately 11% over 2010.

The most popular items, according to eBay, are clothing and shoes, cell phones, and home electronics.

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Home Depot draws ire for shipping jobs offshore

ATLANTA — U.S. figures show American companies – including Home Depot – have slashed labour costs by moving millions of manufacturing jobs to China, according to local news station WSBTV.

In recent years Home Depot has laid off thousands of workers, including hundreds at its worldwide corporate headquarters in Vinings, GA, while at the same time, it’s hiring hundreds of workers thousands of miles away. Federal Labour Department records show Home Depot has moved jobs from Vinings to India.

Companies usually keep outsourcing details a secret, but two Home Depot executives taped a testimonial which was posted online for the outsourcing company in India that now is handling some of their accounting functions. In the testimonial, one executive said, “Really what I was looking for was the same thing at less cost.” Another executive appeared to claim that workers offshore are more competent when he said, “They manage our processes much better. They do the processes better than we would have ever done them here.”

Home Depot released a statement about the overseas jobs that said, “The number of contractors our third parties employ to handle our outsourced work accounts for less than one half of one% of our total workforce.” It also stated, “The Home Depot adds some 20,000 jobs to the Metro Atlanta workforce, and we will continue to do everything possible to add more jobs in the years to come.  In fact, The Home Depot is one of the few companies that has added net new jobs over the past two years.”

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Classifieds

Resumés

• 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
• A goal oriented sales director that has superior management skills, customer oriented, with in depth knowledge of the industry and the ability to achieve results. 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

Connect with us!

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November 21, 2011, Volume xvii, #44

“Injustice anywhere is a threat to justice everywhere.” —Martin Luther King, Jr. (American clergyman and civil rights activist, 1929-1968)

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HOLIDAY PRINTING SCHEDULE: Please note, Faithful Reader, that we will publish HARDLINES just once next month. There will be an issue on Dec. 12, but no issues on Dec. 5, 19, or 26. We are in the office up to Christmas, working on the Annual Market Share Report and the next issue of HHIQ. Back to our regular weekly schedule on Jan. 2, 2012. —Michael

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Lowe’s and Home Depot see sales rise, profits mixed

MOORESVILLE , NC — Despite the slow economy in the U.S., the world’s two largest home improvement retailers managed to squeeze out higher sales in the latest quarter. However, the number-two player, Lowe’s Cos., suffered a drop in profits, while Home Depot was up in both sales and earnings.

Lowe’s had third-quarter net earnings of $225 million, down 44.3% from the same period a year ago. For the nine-month year-to-date, net earnings decreased 12.1% to $1.52 billion. Store closings and discontinued projects had a negative impact on the earnings. Sales for the quarter, however, actually increased 2.3% to $11.9 billion from $11.6 billion in 3Q 2010. For the nine-month period, sales were up 0.6% to $38.6 billion. Same-store sales for the third quarter increased 0.7% but were down 1.0% year-to-date.

Home Depot, on the other hand, saw its profits rise in the third quarter. Net earnings hit $934 million, up 12% from $834 million in the same period of fiscal 2010. For the third quarter of fiscal 2011, diluted earnings per share increased 17.6% from the prior year.

Sales for the third quarter reached $17.3 billion, a 4.4% increase. Same-store sales were positive 4.2%, and same-store sales for U.S. stores were positive 3.8%.

“Our third quarter was driven by strength in our core categories and storm-related sales as well as strong operating performance,” said Frank Blake, Home Depot ‘s chairman & CEO.

Looking ahead for the full year, Lowe’s projects that total sales for 2011 will increase 2-3%. This year will include a 53rd week, which is expected to increase total sales by approximately 1.5%. The company expects same-store sales to decline by about 1%. Hom e Depot offers a similar forecast, anticipating that fiscal 2011 sales to be up approximately 2.5% and diluted earnings per share will grow by about 18% for the year.

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BMR dealers write orders at latest show

QUEBEC CITY — The mood was upbeat at the latest buying expo of BMR. The buying group, which is also a full-line wholesaler providing hardware and building materials to its 190-plus dealers, is celebrating its 45th anniversary. And despite coming to the end of a year where most dealers, in and out of Quebec, will be lucky to match last year’s sales, BMR dealers are nevertheless looking ahead with enough optimism to generate purchases.

“The great thing is that the vendors are taking orders,” says Bruno Baldessari, retail project director at BMR. “That’s the basis of a strong buying show.”

Like its competitor Chalifour Canada, which held a show of its own two weeks previously in Montreal, the ability to offer a wide range of services has become very important to this group. And like the Chalifour show before it, those services were featured front and centre as one entered this show. Glass cases around this area featured new products, as well.

BMR featured an “Agrizone” again at this year’s show. Introduced last year, it showcases a range of products suited for dealers serving rural and farm markets. “Clothing is by far the biggest category here,” Baldessari says. Other strong categories include equine and pet food.

“We focus a lot on the front end of the store,” he continues. “The dealers who have combined that into their stores have done well.” The right mix of front and back end is different for each store, he adds, but insists BMR’s hardware offerings have generally helped his dealers. “The ones who are doing more retail are doing better overall.”

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Ace and Pro both have a place in Chalifour’s offering

MONTREAL — Following years of aggressive promotion, Ace now has 145 branded stores in Canada. Most of them are in the province of Quebec, the result of a concerted effort over the past few years to convert them from the Pro banner or from un-bannered independents that had been serviced historically by Chalifour.

And while six more dealers converted to Ace this past year, the Pro banner is still flown by 32 dealers. Nor are there any imminent plans to stop supporting Pro, says Andrew Allen, vice-president of sales and operations for Chalifour Canada, which, through its parent company, TIM-BR MARTS Ltd., owns and manages Ace in this country. “We leave that decision up to the individual dealer,” he says.

However, Ace is still getting the big push. At the recent Chalifour buying expo, held here at the end of October, 800 new Ace-branded products were introduced. Many are coming directly from the Ace warehouse, while some are available from Canadian vendors supplying through Ace. In fact, Ace dealers in this country have “full access” to the Ace catalogue, says Randy Martin, vp – hardware for Chalifour Canada.

While the Ace products have a place in the Chalifour offering, they are considered on a case-by-case basis, says Martin. “If the existing Ace product and supply chain makes sense for Canada, we’ll adopt it. But if it doesn’t make sense for Canada, we turn to Canadian suppliers.”

Chalifour Canada, he adds, deals with about 500 hardware and LBM vendors and offers 35,000 SKUs.

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Castle adds dealers

MISSISSAUGA , ON — At Castle Building Centres Group Ltd., seven new members have joined, in both its Castle and commercial (CBS) divisions.

On the Castle side, representing traditional building centre dealers, Matériaux Manic in Baie Comeau, QC, has joined. With more than 20 years of experience in the retail and commercial segment of the lumber, building materials, and hardware industry, owner Michel Charette opened his new facility in June 2011. Another new member, Saumarez Quincaillerie ltée in Saumarez, NB, is a family-owned business operated by Nathalie Basque that was recently remodeled.

Matériaux de Construction Jean Guy Dube inc. in Mont-Joli, QC, is operated by the second generation of the Dube family, son Karl. Primarily focused on building materials, Karl intends to increase his hardware business through Castle’s relationship with the U.S. distributor Orgill. Ian Roberts Building Materials Ltd. in Portage La Prairie, MB, has been in business since 1997. Owner Ian Roberts also chose Castle to access Castle’s hardware lines through Orgill.

On the CBS side, Castle has signed Provincial Partitions Ltd., Mississauga, ON, owned by Todd Frankland. The company specializes in partition systems in commercial and industrial projects. New Concept Walls and Ceilings Supply out of Edmonton is a startup that specialize in the gypsum, insulation, steel, and acoustical ceiling categories.

Custom Walls & Ceilings Supply, Prince George, BC, has been serving the market there for 30 years in the acoustical ceiling, gypsum, insulation, and steel segment.

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Classifieds

Resumés

• 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
• A goal oriented sales director that has superior management skills, customer oriented, with in depth knowledge of the industry and the ability to achieve results. 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

Connect with us!

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November 14, 2011, Volume xvii, #43

“It’s a writer’s job to tell the truth.” —Andy Rooney (American journalist and TV commentator who died last week at the age of 92, 1919-2011)

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RONA overcomes tough economy to maintain profits

BOUCHERVILLE, QC — RONA inc. had third-quarter revenues of $1.35 billion, 2.1% over the previous-year quarter, with acquisitions and new corporate stores adding $127 million to that. Profits rose 5.1%.

However, sales by existing stores offset this gain, as same-store sales were down 5.1%. In addition, the company disposed of some corporate stores, including some that were sold to RONA affiliate dealer-owners. RONA attributed the decrease in same-store sales to continued weak consumer confidence and the decline in residential housing starts across most of the country.

The biggest declines were in Western Canada – particularly British Columbia while in-store, the seasonal, gardening, and treated wood categories had relatively good sales during the quarter, “reflecting the execution of projects delayed by poor weather in the first half of the year.” There was also an increase in the tools and install categories.

On the other hand, categories related to bigger renovation projects, such as forest products, construction materials, plumbing, electrical, and flooring, were down in the quarter.

The Commercial and Professional Market division remained healthy, with revenues, including acquisitions, up more than 35%.

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Independents are industry drivers, says Castle president

TORONTO — Against a backdrop of a tough economy, the president of Castle Building Centres says the independent dealer remains the backbone of the retail home improvement industry.

Ken Jenkins, who spoke at the 16th Annual Hardlines Conference last month, acknowledged that big box competitors have raised the bar – and continue to drive consumer awareness of home improvement. But despite their arrival in Canada almost two decades ago, “they did not cause the end of an industry,” he said, and independents in Canada continue to flourish.

Jenkins touted the merits of those independents in his presentation. “The entrepreneur today is the driver of the economy. They are the ones we have to listen to for support,” he said, referring to Castle’s business model, which leaves marketing and merchandising decisions to the dealers themselves.

Based on Castle’s approach, he offered some suggestions for independent dealers: “Stay true to your core and stay focused on the strengths of your business. Don’t take product or get into businesses that benefit head office – don’t believe that they know what’s best for your business.”

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Canadian Tire dealers enjoy same-store sales gain in third quarter

TORONTO — Canadian Tire Corp. saw a healthy 19.4% rise in consolidated sales in its third quarter ended Oct. 1. That increase was due mainly to a 16.3% increase in retail sales. Consolidated net income also rose – by 35.9% to $136.5 million.

“I’m pleased with the positive results in the quarter. Customers responded to our offerings, we managed our expenses effectively and continued to execute our strategies. The strong cash flow from our operations and our underlying confidence in our business has resulted in an increase to the quarterly dividend,” said Canadian Tire president and CEO Stephen Wetmore.

The company’s quarterly results include FGL Sports for the first time. Excluding FGL Sports, consolidated retail sales were up 7.6% and revenues were up 11.0%.

Retail sales at CTR stores increased at a more modest pace – just 3.2%, while same-store increased 2.3%, driven by sales increases across all key categories, says the company, especially the “Living and Playing” category, primarily driven by kitchen, outdoor recreational activities, and cycling product lines.

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Housing forecast to remain stable: CMHC

OTTAWA — Housing starts are forecast to stabilize into 2012, according to Canada Mortgage and Housing Corporation’s fourth quarter. Housing starts will be in the range of 170,900 to 199,900 units in 2011, with a point forecast of 191,000 units. That’s up slightly from 189,930 units in 2010.

In 2012, housing starts will be in the range of 161,650 to 206,350 units, with a point forecast of 186,750 units.

The latest numbers appear to support a flat outcome for the year: the seasonally adjusted annual rate of housing starts in October was 207,600 units, down from 208,800 a month earlier. The biggest drop was in single-detached starts in urban centres, which fell 2.1% — with urban single starts down a hefty 9.0%.

According to Mathieu Laberge, deputy chief economist at CMHC’s Market Analysis Centre, “Urban multiple housing starts remained high in October, but overall housing starts are expected to moderate in line with demographic fundamentals.”

October’s seasonally adjusted annual rate of urban starts decreased by 43.5% in the Atlantic region, and 28.8% in Quebec, while urban starts increased by 1.5% in British Columbia, by 11.7% in Ontario, and by 28.2% in the Prairie region.

While the outlook for new home construction is not bullish, sales of existing home sales are forecast to rise somewhat. MLS anticipates these will be in the range of 423,600 to 470,100 units in 2011, with a point forecast of 450,100 units, vs. 446,577 in 2010. In 2012, MLS sales are expected to move up modestly in the range of 406,100 to 509,000 units, with a point forecast of 458,500 units.

The average MLS price is forecast to be between $353,100 and $375,300 in 2011 and between $315,800 and $418,700 in 2012. CMHC’s point forecast for the average MLS price is expected to move up to $363,900 in 2011, while 2012 will see a more moderate increase to $368,200.

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CIL launches paint line “for men only”

TORONTO — Canadian paint brand CIL has launched a paint colour collection designed to appeal to men only. Called Ultimate Man Caves , the new CIL Paints colour collection for men was introduced to get males more enthusiastic about the painting process.

Paint names like “Iced Vodka” replace “Cloud Nine,” while “Maverick” takes the place of “ Moonlight Drive.” “Five-O’Clock Shadow” replaces the more mundane “Plateau Grey” and “Beer Time” tops the apparently less manly “Butterscotch.”

“When it comes to paint names, it’s all about the emotional connection and our research shows that men and women tend to relate to paint names differently,” says Alison Goldman, marketing communications manager for CIL Paints.

The new CIL Paints brochure – featuring 20 of the most popular paint colours for men – is now being featured in stores alongside CIL’s existing display of more than 1,200 colours.  The original paint names will continue to be part of the present CIL collection of colours.

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Classifieds

Resumés

• 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
• A goal oriented sales director that has superior management skills, customer oriented, with in depth knowledge of the industry and the ability to achieve results. 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

Connect with us!

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November 7, 2011, Volume xvii, #42

“Those who foolishly sought power by riding on the back of the tiger ended up inside.” —John F. Kennedy (35th president of the United States, 1917-1963)

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Lowe’s Canada unaffected by U.S. store closings

TORONTO — While Lowe’s in the U.S. has already closed 10 stores there and intends to close another 10 before year’s end, Lowe’s Canada is remaining on course with its own expansion plans.

According to Alan Huggins, president of Lowe’s Canada, the Canadian operation is treated as a separate entity – with separate objectives. The cutbacks in the U.S., he said, will not affect his division’s plans to open up to 100 stores in this country over the next five years. Lowe’s already has 29 stores here – the latest being the first store in British Columbia, in New Westminster.

Huggins, who was speaking to a roomful of industry execs at the 16th Annual Hardlines Conference (don’t tell me you missed it! —Editor), said the company is on track to open between four and six stores in 2012, including, he adds, “maybe a new province.”

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Chalifour show offers full retail “solution”

MONTREAL — The first-ever buying show hosted by Chalifour Canada offered more than just products and show specials. It was an opportunity for the former CanWel Hardware, which was purchased by TIM-BR MARTS Ltd. one year ago from CanWel Building Materials, to showcase a wider range of retail services, as it positions itself as a full “retail services organization.”

Randy Martin, vice-president hardware for Chalifour, took HARDLINES on a guided tour of the show, held here Oct. 29 and 30. Martin, who’s been a merchant with TIM-BR MARTS for two decades, had a firm grasp on what the Chalifour business unit has to offer. The show, which filled 120,000 square feet at the Place Bonaventure, featured 225 vendors in 250 booths.

Chalifour boasts some 2,200 retail customers, said Martin, representing not just TIM-BR MART dealers and its Ace and Pro dealers, but independents of all stripes, including dealers who attended from Castle, Sexton, and ILDC, “and they’re all pretty much equal” to the wholesaler, he added. More than 740 dealers attended this show.

TIM-BR MARTS owns the Ace brand in Canada, and the show featured a range of Ace products. In fact, some 800 Ace-branded products were launched here. These included the new Clark + Kensington line of paint-and-primer in one, which will get rolled out in stores in spring 2012, at the same time that it gets rolled out in Ace stores in the U.S.

This show also integrated 55 building materials suppliers, alongside the hardware vendors. setting it apart from the former CanWel Hardware shows.

Besides traditional booths, departments were integrated in merchandised scenarios at the show. The approach, long used by RONA at its annual show, lets dealers see the products as they would appear on store shelves. TIM-BR MARTS’ in-house merchandising team has been developing new merchandising programs of its own. The first department to get the makeover was lighting; a compact light cloud with a catalogue in-store for special orders was prominently featured at the show.

“We are gearing up to be a retail sales organization and that’s why you see this kind of merchandising,” said Martin.

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OGC adds SpruceWare.NET to its product line

MONTREAL — OGC, Canadian supplier of information management solutions in the retail and distribution industries, has formed a partnership with software company Spruce Computer Systems, an American technology company that creates modern software exclusively for lumber, hardware and building materials dealers. Under the agreement, OGC has the the commercial rights to the SpruceWare.NET product in the Canadian market.

Through this agreement, OGC has gained the exclusive rights to sell, implement and support SpruceWare.NET in Canada. This new offering will enhance OGC’s product line so that it can better meet the specific needs of its customers in the hardware and building materials industries.

“OGC and Spruce have very similar profiles and backgrounds: both companies are recognized for their industry knowledge and close relationships with customers. We are convinced that pooling our know-how will help us assist customers even better to improve their service and maximize their profits,” says Patrick Du Paul, executive vice-president and general manager at OGC. He adds that the technology is already being used by more than 250 retailers in the American market.

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Canadian Tire fine-tunes smaller stores with projects

TORONTO — Rob Shields, who is vice-president of marketing for Canadian Tire, believes “the era of the big box is starting to have a bit of a sunset.”

While Canadian Tire hasn’t given up on big boxes — “If a trading area can support a 90,000-square-foot store, we put one in” — Shields says Canadian Tire’s goal now is to “continue to be a big local player.” And because its brand is more potent in smaller markets, its smaller stores play “a much bigger role in our brand strategy.”

Canadian Tire looks at store size from its customers’ perspective “and how they want to interact with us.” All kinds of factors affect that viewpoint, including the growing inclination towards online shopping. At a time when the number of trips that customers take to its stores is down (even though spending per trip is up), Canadian Tire, says Shields, must constantly look for ways to make its stores more central to their shoppers’ lives.

“We’re leaning towards more solution-based selling,” he says, which matches products like plumbing fixtures with fittings in the same area of the store, to use one example. “We’re doing this project by project, room by room, and we’re getting much closer to a basket view, a behavioural view,” of how merchandise should be organized.

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Shrinkage takes its toll on Quebec retailers

MONTREAL — In 2010-2011, Quebec’s retail sector registered annual economic losses of nearly $800 million. Stores selling basic consumer goods suffered the greatest losses, estimated at more than $418 million annually. Semi-durable and durable goods are in second place, with annual losses exceeding $166 million.

These are just some of the results of the latest survey from the Retail Council of Québec (CQCD) on economic losses incurred by Quebec retail businesses. (The survey, conducted by Altus Group on behalf of the CQCD, covers chains and independent retailers but excludes automobile dealers.)

Shoplifting accounts for 38% of losses incurred, while 36% are attributable to theft and fraud by employees. Consumer fraud constitutes 8% of all losses. Administrative errors and suppliers’ frauds or errors also represent 15%. The majority of shoplifters are adults, with 53% of them men and 33% women. Teenagers make up 12% of the shoplifters.

Among the 59% of retailers that offer internet sales, 77% were victims of credit card fraud and 6% experienced other types of fraud.

Human prevention measures most used by retailers include employee training and awareness (83%), control or monitoring of receipt of goods (55%), handbag checks (50%), and mystery shoppers (50%).

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Classifieds

Resumés

• 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
• A goal oriented sales director that has superior management skills, customer oriented, with in depth knowledge of the industry and the ability to achieve results. 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

Connect with us!

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October 31, 2011, Volume xvii, #41

“I’d like to be rich enough so that I could throw soap away after the letters are worn off.” —Andy Rooney (American author and TV commentator, 1919- )

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TIM-BR MARTS Awarded as 2011 Newsmaker of the Year

WORLD HEADQUARTERS, TORONTO — The role of the building supply buying group is changing dramatically as independent dealers face increasingly tough competitive challenges. One buying group stood out over the past year for its commitment to change. That’s why TIM-BR MARTS Ltd. was selected as HARDLINES’ 2011 Newsmaker of the Year.

Each year, HARDLINES, the information service for the retail home improvement industry, presents its Newsmaker Award, sponsored by the National Hardware Show, to a company based on its performance that has made a significant impact on the industry. This year, TIM-BR MARTS Ltd. was recognized as consistently making a newsworthy impact.

The company has been expanding rapidly, with growth among both traditional retail yards and commercial dealers, and now boasts more than 700 members nationwide. However, the single biggest move TIM-BR MARTS Ltd. made over the past year was to acquire CanWel Hardware Division from CanWel Building Materials. TIM-BR MARTS Ltd. quickly renamed the business Chalifour Canada, creating its own hardware distribution business. To complete Chalifour’s reach across the country, TIM-BR MARTS Ltd. later acquired the distribution business of its group member, IRLY Distributors Ltd., making that Surrey, BC-based facility the Western arm of Chalifour Canada.

“HARDLINES is proud to recognize TIM-BR MARTS Ltd. for its efforts to make a difference in home improvement retailing,” said Michael McLarney, Editor of HARDLINES and Managing Director of the North American Retail Hardware Association Canada. “The acquisition of CanWel Hardware marked the tipping point in a series of bold initiatives that made TIM-BR MARTS Ltd. a worthy recipient of the 2011 HARDLINES Newsmaker of the Year Award.”

Tim Urquhart (r), president and CEO of TIM-BR MARTS Ltd., accepts the Newsmaker of the Year Award from HARDLINES’ publisher, Beverly Allen, at the 16th Annual Hardlines Conference. The Award is sponsored by the National Hardware Show.

Tim Urquhart, president and CEO of TIM-BR MARTS Ltd., was on hand at the conference to accept on behalf of his company. “This award is a testament to what can happen when a group truly listens to what its members need,” he said. “Our activities throughout the past year are a reflection of our commitment to the entrepreneurial spirit, the success of the independent, and to the partnerships we have with our vendors.”

Other efforts to enhance TIM-BR MARTS Ltd.’s range of services have included the launch of its own dealer show in spring 2011.

TIM-BR MARTS Ltd. has been actively building its brand, as well. Leveraging its Hockey Canada sponsorship, the World Junior Hockey Video Challenge returns this year and lets teams video their team spirit showing why they love hockey the most. The grand prize is a trip for the entire winning team to the World Junior tournament in Edmonton.

The Newsmaker of the Year Award was presented at the 16th Annual Hardlines Conference, Oct. 27, 2011. The Award is sponsored by the National Hardware Show.

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Amidst slowdown, industry faces “new retail reality”

TORONTO —The retail home improvement industry grew only slightly in 2010. But that slight rise did mark a turnaround after two consecutive years of negative sales growth, says Michael McLarney, editor of HARDLINES. In his introductory remarks at the 16th Annual Hardlines Conference, he told delegates that the industry is facing a “new retail reality,” one that is forcing retailers and vendors alike to re-think conventional assumptions about how the business has operated for the past generation.

“The rate of growth that drove the industry during the early years of this millennium all but ground to halt when the recession of 2008 hit,” he noted.

And the industry is still trying to recover. Big boxes are still struggling for market share that hit the wall five years ago and stuck at just over one-fifth of the industry overall. And while independents are gaining ground, the turnaround has been a slow one, hampered this year by a tough first half.

McLarney added that the HARDLINES forecast for growth in the retail home improvement industry in 2011 will be only slightly stronger than in 2010.

(Find out how big the industry is, what formats, retailers, and provinces are making gains, and learn the strategies of Canada’s top retailers. It’s all in our 2011-2012 Retail Home Improvement Report. Click here for more info!)

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Chalifour developing model stores for independents

MONTREAL — The Retail Buying Expo of Chalifour Canada was held here this past weekend, featuring more than just products. The organizers were featuring an array of services, as well, as the national hardlines distributor, which is owned by TIM-BR MARTS Ltd., positions itself as a true “retail sales organization.”

That description came from Randy Martin, vice-president hardware for Chalifour Canada, as he took HARDLINES on a tour of the show at the Place Bonaventure. He pointed out that the show featured both LBM and hardware vendors under one roof – a first for the wholesaler. “The show offers ‘the whole solution’ for both hardware and building materials dealers,” he said.

One of the feature areas of the show was a newly re-merchandised electrical department, with new signage and colours. Martin called it a turnkey program that will be available to all Chalifour customers. Other departments will be re-merchandised, as well, and rolled out over the next eight to 10 months. The programs are part of a larger initiative to develop model stores for the wholesaler’s hardware and home centre customers. “It’s going to be focused on three or four different models that are designed to address the needs of a wide range of dealers,” he said.

Created by the company’s own store planning department and the input of dealers themselves, the model stores can be tailored to each independent’s own banner.

(More on the Chalifour expo in our next issue! —Michael)

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Selection a factor when competing against the big box

TORONTO — While the big-box format has consolidated since it first emerged in this country almost two decades ago, independents and smaller retailers in general have learned to develop clear and solid strategies to compete.

Examination of the efficacy of those strategies was the topic of a presentation last week by Joshua Hammerschlag, a student from the University of Alberta. He spoke at the 16th Annual Hardlines Conference, as part of Studies in Retail Excellence Program created in partnership with HARDLINES.

One area Hammerschlag studied was the range of products available at big boxes. For example, Home Depot was shown to have a wider range of hand tools overall vs. independents that carve out an area of specialization. “All the retailers [in the study] had at least one line of products that home Depot didn’t have, and in some cases they had more than five specialized lines of products,” Hammerschlag said. “With this, they try to compensate for the fact that they have reduced selection in general products.”

Once specialized customers are drawn to the store, they end up buying other products, as well, he observed.

SIRE is dedicated to promoting careers in hardlines retailing among a new generation of students. The program cultivates mentoring, scholarships, and specialized research. Funding for the program comes through the generous sponsorship of Home Hardware Stores Ltd., Home Depot Canada, and Lowe’s Canada.

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Ikea to open biggest Canadian store yet

BURLINGTON, ON — An expanded Ikea store in Ottawa will be this country’s largest yet. It is slated to open Dec. 7. The new site, a relocation of the existing store to the opposite end of Pinecrest Mall, will be 398,264 square feet in size, which is more than triple the size of the old store.

The previous Ottawa Ikea, says Madeleine Löwenborg-Frick, public relations manager for the company, “only offered our customers 50% of the range, so we are thrilled that our customers will now have access to our complete range of products, as well as way more inspirational room settings, parking, and, of course, seats in the restaurant.”

Currently, the largest Ikea stores in Canada are the Vaughan and Coquitlam locations, which are both 333,681 square feet.

Ikea will open a new location in Richmond, BC in April 2012. Another store that will open in Winnipeg in late 2012 will be 395,000 square feet in size.

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Classifieds

Resumés

• 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
• A goal oriented sales director that has superior management skills, customer oriented, with in depth knowledge of the industry and the ability to achieve results. 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

Connect with us!

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October 24, 2011, Volume xvii, #40

“Flip, flop and fly, don’t care if I die; Flip, flop and fly, don’t care if I die; Don’t ever leave me, don’t you ever say goodbye.” — Big Joe Turner (American blues singer, 1911-1985)

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Lowe’s closes 20 stores in the U.S.

MOORESVILLE , NC — Lowe’s Cos. is closing 20 “underperforming” stores in 15 states. Ten locations closed at the end of business on Sunday, Oct. 16. The remaining 10 locations will close within about a month, following an inventory sell-through. The company will lay off almost 1,950 workers and take a second-quarter charge of $345-$415 million.

The stores affected are located in: Los Banos and Westminster, CA; Biddeford and Ellsworth, ME; Old Bridge, NJ; Batavia, NY; Denver, CO; Ionia, MI; North Kingstown, RI; Aurora and Oswego, IL; Rogers, MN; Emporia, VA; Manchester and Claremont, NH; South Tacoma, WA; Chalmette, LA; Hooksett, NH; Brown Deer, WI; and Haverhill, MA.

In addition, after completing a comprehensive review of its “pipeline” of proposed new stores, the company further announced it has discontinued a number of planned new store projects. Planned openings for the coming years are being ratcheted down from 30 to about 10 or 15 annually.

Planned locations that have been dropped include Baltimore, MD; and Petaluma, CA.

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Delegates report positive sales FCL show

SASKATOON — Federated Co-operatives Ltd. held its Fall Buymart last week. The group, which had overall sales exceeding $7 billion last year and is ranked number two in the list of Saskatchewan’s top 100 companies by Saskatchewan Business Magazine, represents more than $470 million in hardware and home improvement sales (source: Hardlines Who’s Who Directory of Retailers, Wholesalers, Buying Groups and Co-ops).

Vendors reported generally positive sales to the dealers in attendance, while the dealers at the show were overall upbeat about their business, despite a challenging year in the West. Because of the farm and rural focus of the Co-op stores, a lot rests on the farm economy. While Alberta is turning in a good harvest, some areas of Saskatchewan were not so lucky, due to excess moisture in the spring.

A number of FCL’s grocery members were also walking the show, on the lookout for general merchandise items they could add to their stores, such as impulse products and clip-strips.

The strength of dealer attendance at the show was reflected in the gala dinner, which had to make room for 1,900 people in a room that was designed for only 1,700. Entertainment was provided by one of Canada’s hottest new bands, the Sheepdogs – who also won a recent contest to appear on the cover of Rolling Stone magazine. (How cool is that? —your trusty Can-con Editor)

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Ace dealer offers zombie preparedness kits

LENEXA , KAN — U.S. consumers have plenty of issues on their mind—the economy, the housing market, the job market, etc. But one retailer is helping ease their minds about one pressing issue—the imminent zombie invasion.

Westlake Ace Hardware launched an interesting advertising campaign designed to catch customers’ attention, according to the Omaha World-Herald. The hardware store chain’s Zombie Preparedness Center debuted in many of its stores earlier this month. Workers hung up posters (A Human’s Guide to Zombie Preparedness) to offer tips to humans on which power tools, cleaners, and door locks will work best for warding off the undead.

Employees also handed out “Zombie Prepared” buttons, according to the newspaper.

Also, on the company’s website, “Zombies” was added to the list of store specialties. “I love the tone,” Liz Benditt, Westlake’s director of customer relationship development, told the newspaper. “If we can help you with your lawn and your home, we can help you with the zombie apocalypse.” She said web traffic has increased, and store managers said they’ve seen more potential customers coming into stores.

The chain, which is Ace’s largest member, has 88 stores in Iowa, Missouri, Kansas, Nebraska, Oklahoma, Texas, and New Mexico.

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Internet use rising, lowest in New Brunswick

OTTAWA — In 2010, 80% of individuals aged 16 years and older used the internet for personal use. The highest use was among residents of British Columbia (86%) and Alberta (84%). The lowest rates were in Newfoundland and Labrador (73%) and New Brunswick (70%). Internet use is also higher in urban areas, at 82%, vs. secondary and rural markets, at 72%.

Individuals under the age of 45 had the highest rate of use, at 94%, while 80% of those aged 45-64 used the internet. Among seniors, about one-half (51%) of those aged 65-74 used the internet, compared with 27% of those aged 75 years and older.

In 2010, 51% of Internet users ordered goods or services for personal or household use. In total, Canadians placed nearly 114 million orders, valued at about $15.3 billion. Among those who placed an order, individuals averaged about 10 orders over a 12-month period, with an average total value of $1,362 per person. Of those who placed an order, 55% purchased travel arrangements (e.g., hotel, travel, and car rentals) and 48% ordered tickets for entertainment events.

Most shoppers (83%) placed orders from companies in Canada, while 60% ordered from vendors in the United States, and 18% from vendors in other countries.

Overall, Canadians are considered experienced internet users, with almost one-half of users (47%) having been online for 10 years or more. About three-quarters (76%) used the internet at least once a day in a typical month.

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Classifieds

Resumés

• 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
• A goal oriented sales director that has superior management skills, customer oriented, with in depth knowledge of the industry and the ability to achieve results. 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

Connect with us!

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October 17, 2011, Volume xvii, #39

“A budget tells us what we can’t afford, but it doesn’t keep us from buying it.” —William Feather (American reporter and writer, 1889-1981)

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Home Installs gains ground among dealers

ST. JACOBS, ON — As the importance of services within the retail milieu increases (see, for example, the introduction of garage door and water heater installations by Canadian Tire, as reported in our Oct. 3 edition), Home Hardware has been fine-tuning its own “Home Installs” program. Those enhancements were introduced at Home’s fall market last month.

According to Murray Cutler, who heads up Home Installs, the number of dealers using the program has almost doubled in recent years, and now 223 dealers – representing almost half of Home’s building centres and home centres – are using the program. And more dealers are signing up every week, he notes.

That growth is coming because the program stays focused on the dealers’ needs. “We now have a nine-member advisory board of dealers from across the country to fine-tune the program and explore ways to grow it among the dealers.”

Project sales through Home Installs can range from $10,000 to $40,000, Cutler says.

Home offers a number of things to support the program for its dealers, including in-store signage (ceiling banners, banner hangers, display decals, and wall murals), brochures and brochure holders, vehicle graphics, and even an eight-foot Home Installs booth rental for dealers who want to participate in local home shows. A series of six optional flyers is designed to generate sales from homeowners as they plan their renovation projects. Topics of the flyers include kitchen and flooring, garage and shed, and windows and doors.

The program also ties in with RBC Royal Bank, which offers a finance program in-store.

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TruServ’s new brand gets French-language version

WINNIPEG — The new dealer banner from TruServ Canada, which is rolling out this fall among dozens of existing True Value dealers across the country, has a French-language version, as well. Called “UNIQ,” the name was developed because TRU would not translate well into French.

TRU and UNIQ were developed by TruServ, in conjunction with its new owner, RONA inc., as an option for independents who want to get their hardware supplied by TruServ, while receiving a level of store support, as well.

The TRU program, which TruServ bills as “proudly using the true Canadian red of our national flag” consists of simple, strong elements that, the company says, “will make it easy for customers to get fast answers, leading to faster shopping.”

UNIQ’s store identification program is, however, in all respects identical to TRU’s. “It is a perfect retail look for a modern Canadian hardware store, adaptable to each dealer’s needs,” says TruServ president Bill Morrison.

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Highland TIM-BR MART welcomes Stremecki

PETERBOROUGH , ON — Building a regional lumberyard chain from scratch in a struggling economy, when you haven’t been a dealer before, takes courage. Going from zero to five stores between 2009 and today, in the teeth of one of the toughest economies in memory, couldn’t have been easy. Yet Brian Macey has done it.

His fledgling group, Highland TIM-BR MART, is now one of Ontario’s fastest-growing building supply chains. Starting from a single store in Havelock, ON, in 2009, Macey has since added four other Ontario stores (Harcourt, Gooderham, Kinmount, and Pembroke) which are all in rural markets in south-central and eastern Ontario.

All of this has been quite a leap from working on the wholesale side for many years, for BPB Westroc, where Macey was vice-president of sales and marketing, western operations.

It was during his Westroc days that Macey first met Steve Stremecki. The outgoing and upbeat former vice president at TIM-BR MARTS Ltd. had spent the last seven years helping build that organization into one of the country’s largest building materials buying groups. Now, he’s joined Highland TIM-BR MART as a partner. Macey sees him as someone to share ideas and challenges with.

“Steve’s leadership will raise the bar in marketing and sales,” he says.

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Associations tap into Cologne International Hardware Fair

COLOGNE, Germany & CHICAGO  —  The need to look beyond national borders has caused North American industry associations to step up their involvement in the International Hardware Fair, March 4-7, 2012 at the Koelnmesse Convention Centre in Cologne, Germany.

A number of North American associations have formed promotional alliances with the North American subsidiary of the organizer, Koelnmesse Inc., based in Chicago. Solid industry growth in recent months in Europe and Asia in segments of the home improvement industry has made the international nature of the Cologne event a welcome target for export by North American firms.

Both the International Federation of Hardware & Housewares Associations and the Presidents Council will use this event to hold respective board meetings at onsite conference rooms.

According to Dr. Jayne Seagrave, president of the Canadian-based Worldwide DIY Council, “Our membership consists of approximately 100 North American companies who are committed to increase their export sales. For 2012 we have entered an agreement with Cologne to sponsor a DIY pavilion. This event always represents a highlight for our members in developing their international business. Nowhere else can they meet an audience from all five continents at such a large scale.”

The North American Retail Hardware Association is offering their members incentives via discounted exhibit rates for a fully furnished and constructed exhibit package at the Cologne event. Veterans in Cologne are the American Hardware Manufacturers Association (AHMA), with a track record of organizing a USA pavilion at the International Hardware Fair for the last 30 years.

A traditional highlight in Cologne will be the international “Canadian Night” reception sponsored by HARDLINES, celebrating Canadians and international partners abroad.

Space is running out for North American exhibitors, however. Contact Beverly Allen directly here at the HARDLINES World Headquarters to get details on how you can get involved with Cologne next March – either as a vendor or a visiting retail buyer.

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Classifieds

Resumés

• 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
• A goal oriented sales director that has superior management skills, customer oriented, with in depth knowledge of the industry and the ability to achieve results. 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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October 10, 2011, Volume xvii, #38

“Under democracy one party always devotes its chief energies to trying to prove that the other party is unfit to rule – and both commonly succeed, and are right. —H.L. Mencken, (American journalist and satirist, 1880-1956)

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“We’ll compete, and we’ll win” says TruServ president

WINNIPEG — Bill Morrison does not mince his words. In an exclusive interview with HARDLINES at the latest TruServ dealer market here, the president of TruServ Canada says his company will offer dealers the best fill rates and the lowest prices of any wholesaler supplying Canadian dealers.

It’s a kind of aggressive stance TruServ has not been known for in the past. In fact, until RONA acquired the hardware distributor and retail services company one year ago, TruServ was struggling to keep up with that very competition it now challenges so boldly.

Morrison says he recognizes that other supply opportunities exist, such as the one with Orgill for Castle dealers and TIM-BR MARTS’ ownership of Chalifour (formerly CanWel Hardware), but he is undaunted. “We will compete fiercely – on fill rates and on pricing. We will offer better products at better service.”

He can back up that promise, he says, thanks to an infusion of cash and resources from RONA. For dealers, it means a brand new banner, TRU, which will replace True Value and Country Depot. In the warehouse, facilities such as new racking have been upgraded, technologies improved, and even tractors on the road replaced. “We’ve even replaced all the propane lift trucks with electric,” Morrison quips.

The company is also broadening assortments, introducing RONA house brands, and lowering prices – and increasing margins – on more than 1,000 items for dealers in attendance at the market. “We think the vendors need to offer ‘new’, so 25% of the products at this show are new.” Morrison points to innovations in lawn and garden and other seasonal products, as well “twice as many green or eco-friendly products. We’re asking the vendors to come to the table and come up with new items.”

Later, in a conference room filled with 700 dealers and their families, Morrison lays out what’s new at TruServ, culminating in its new retail brand. “Like the return of the Winnipeg Jets, TRU is a reality.”

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TruServ dealers upbeat at latest market

WINNIPEG — Dealers at last week’s TruServ Dealer Market reflected a mood more positive than in recent years. A new banner, new programs, and an improved cash-flow position since being taken over one year ago by RONA have injected new life into TruServ.

For vendors, that translated into some increased attendance, especially as independent RONA dealers were invited for the first time, even if the tentative economy did not translate into the volume of orders many had hoped for.

Backed by the deep pockets and marketing power of its parent, the Western wholesaler and retail organization continued to roll out its new TRU banner. TRU Hardware got introduced at the company’s spring market; this time TRU Building Centre and TRU Country and Garden were featured. These banners will replace the True Value name (which had been licensed from the True Value Company in the U.S.) and its own Country Depot format.

TruServ dealers had new products to choose from, including RONA’s proprietary brands, Hausmann, Uberhaus, and Facto, while independent RONA dealers said they were impressed by a wider range of items. One dealer, in from Saskatchewan, observed that the TruServ assortment of mops and brooms was many times bigger than RONA’s, and would fit in her building centre.

Chris Rawluk, a third-generation dealer in Gypsumville, MB, about three hours north of Winnipeg, said his store sells everything from boots to bananas. He thinks RONA’s takeover of TruServ makes sense. “It’s good to have a big brother.”

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Amazon launches Canadian home improvement site

SEATTLE — Amazon.ca has launched a “Tools & Building Supplies Store” that features more than 60,000 tools and home improvement products, including 500 power tools, plus power sprayers and paint tools, window insulation kits, and bath and cabinet hardware. And the site is offering free delivery across Canada on some orders over $25.

“With the launch of the Tools & Building Supplies Store, customers across Canada can find everything they need for any home improvement project,” said John Nemeth, director of Amazon.ca. The site also features editorial reviews and customer reviews and ratings.

The online retailer has its own warehouse here, and according to a company spokesperson, “Amazon.ca currently offers over 60,000 tool and home-improvement related items. Many items ship directly from Amazon.ca’s Canadian fulfilment centre to customers all across Canada.”

He also confirms that Amazon.ca is working with a variety of third-party sellers that deliver products to customers. For example, an order for a Black & Decker tool takes the online shopper to a third party, which dictates shipping methods and costs.

“When customers choose products that are sold direct from Amazon.ca’s fulfillment centre, the shipping is free when your order is $25 or more.”

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Groups position for growth following flat period

NATIONAL REPORT — Even though market conditions have been improving since summer, retail groups say they must constantly be on the prowl for ways to increase their businesses.

For example, at Castle Building Centres Group, president and CEO Ken Jenkins says he is looking to bolster the group’s Commercial Building Supply division. Yves Gagnon, president and CEO of the wholesaler and buying group, BMR (which opened its fourth distribution centre east of Quebec City in the spring), says his company is well-equipped to supply its dealer-members – whose stores are mostly contractor-oriented lumberyards and building centres – with their hardware supply needs.

TruServ’s Bill Morrison sees TruServ’s growth coming from the addition and expansion of product categories such as housewares, storage, and seasonal. (Full story in the latest edition of our new print magazine, HARDLINES Home Improvement Quarterly).

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Classifieds

Resumés

• A conscientious, highly motivated manager with a results-oriented track record in developing new business. view this resumé
• A goal oriented sales director that has superior management skills, customer oriented, with in depth knowledge of the industry and the ability to achieve results. 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

Connect with us!

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