May 16, 2011, Volume xvii, #20

“Las Vegas is the only place I know where money really talks – it says, `Goodbye’.” —Frank Sinatra (American jazz singer and actor, 1915-1998)

Home Depot Canada realigns under new American president

TORONTO — Following the departure of Gino DiGioacchino last week from Home Depot Canada, a new management team has been unveiled, “to simplify the structure of our merchandising department, to increase speed to market, and streamline decision making,” said new president Bill Lennie, in a letter to vendors.

Lennie promised “to improve connectivity between merchandising and execution in our stores and better align resources to support our core merchandising strategy.”

Key changes include the appointment of Jeff Kinnaird to replace DiGioacchino as merchandising vp, responsible for merchandising operations, global sourcing, and development of private labels. Kinnaird was most recently vp ops for Canada East.

Mark Getty has become senior director, merchandising operations in charge of field merchandising, store environment, integrated vendor services, and business lifecycle approach and execution. He was previously director, Canadian operations.

John DeFranco, formerly senior director softlines, has become senior director global sourcing and merchandising strategy. He will be responsible for assortment planning, private brands, and trend and design leadership.

Within the category management team, the departments have been streamlined from six directors of merchandising to four. The changes were made to better focus those departments on four key categories: hardlines, building materials, projects, and décor. Pam O’Rourke, director merchandising – hardlines, is now leading departments 25 and 28. Doug Graham, director of merchandising – décor, will now lead departments. 23, 24, 27 L, and 59. Mark Coffey, director of merchandising project business, will now lead departments 29A, 29B, 29K, and 30.

A fourth director of merchandising, for building materials, has yet to be named. That person will lead departments 21, 22, 26, and27E.

Jeff Hastings will be regional vp, operations, Canada West. He’ll assume overall duties for Canadian store operations. He was regional director, operations. Dan McAreavey is now regional vp operations, Canada East. He’ll also continue as vp contractor services for the company’s pro, installation, and rental services. Mike Rowe, vp finance, will add supply chain to his portfolio.

“In 2011, our focus remains unchanged,” Lennie continued in the letter to vendors. “We will continue putting customers first, focusing on in-stock performance, and enhancing store standards and appearance.” He further indicated his desire to grow Home Depot’s business with vendors in future.

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RONA makes cuts ahead of soft first quarter results

BOUCHERVILLE, QC — As retailers everywhere wonder what’s happened to the year so far (bad weather and still-faltering consumer confidence being the main culprits), RONA inc. has let dozens of people go at both head office and in the corporate stores.

The news comes on the heels of an official release from RONA announcing the departure of company CFO Claude Guevin, who will leave effective June 3. All indications are that this was a mutually agreed upon decision.

RONA’s sales were down 4.0% in the first quarter, while same-store sales were down 12.6%. RONA, like the entire industry, has been struggling to get shoppers into its stores since the slowdown began last summer. Then in 2011, the first quarter was plagued by a severe winter – which is just finally ending – that effectively put consumer spending on hold.

The current conditions have forced RONA to re-evaluate every aspect of its business. “Right now, we have to live with the fact that the consumer is really prudent,” says Claude Bernier, evp at RONA. That, plus the late spring, has required strong measures. “The changes that are happening at RONA are to deal with that challenge and will make sure that RONA will be prepared to grow when the time is right.”

In addition to the cuts, RONA has further pledged to slash spending, consider future acquisitions carefully, and reduce inventory spending by millions of dollars.

We always adjust our model – and our people – according to our performance,” Bernier says. Now, the company is returning to the principles of its strategic plan during the last recession, its PET strategy. “We have to return to an efficiency mandate.”

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Canucks arrive in force to Las Vegas hardware show

LAS VEGAS — The National Hardware Show, held here last week, played host to dealers and buyers from across North America and the world. The sold out show enjoyed overall positive response from vendors, even though dealers on both sides of the border have had poor sales due to weather (you mentioned the weather already in this issue! –Editor).

Canadians were here in force, with a strong showing of buyers from Home Hardware, Spancan, TSC Stores, Peavey, Federated Coop, Canadian Tire, Costco Canada, and others, most of whom were at the Maple Leaf Night held by the Canadian Hardware and Housewares Manufacturers Association.

The show was held in tandem with the All-Industry Convention of the North American Retail Hardware Association. The event featured awards for Young Retailers and seminars on social media. (More on the show and convention in next week’s issue –Michael)

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LBMAO changes date of buying show

MISSISSAUGA, ON — The annual buying show of the Lumber and Building Materials Dealers Association is moving from its traditional February time slot to mid-November.

The LBMAO’s Canadian Home Improvement Show has been rescheduled to take place Nov. 17-18, 2011. The move comes after an evaluation of the best times for dealers and vendors to book for the coming year. The show will remain at the Toronto Congress Centre, but move to the south building from the north building.

Show organizers have identified that the new date will better fit into the fall booking season, especially for lumber and commodities purchases. It also positions the show as the first event leading into the new year for the industry. A number of other changes are planned for the show to attract new vendors in a range of categories including lawn and garden, paint and sundries, and kitchen and bath.

“With a new date and expanded focus, CHIS is offering some of the industry’s best value for the LBMAO,” says David Campbell, president of the LBMAO. “This means sales during, and leads to develop after, the show for our dealers and a true head-start on the 2012 sales season for our retailers.”

Campbell says he expects the show to surpass typical annual sales volumes of 1,000-plus purchases, while offering increased value across the new industries being invited to participate.

Once again, the show will host the Johns Manville HARDLINES Dealer Conference, which will provide seminars for dealers on important topics such as social media and customer service.

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Vendors throw support behind British Columbia show

VICTORIA – The spirit of the west coast was alive at the “Spirit of the Westcoast,” the latest buying show hosted by the Building Supply Industry Association of British Columbia. The show, held at the Convention Centre, was well represented by national vendors and regional suppliers.

Attendance by dealers, while solid, was hampered by the timing of other shows that the industry now supports. These include the show held by TIM-BR MARTS just a month earlier, and the Home Hardware Market a few weeks ago, both of which drew dealers from across the country – including from B.C.

Nevertheless, the show provided a great opportunity for networking, from a golf tournament on day one to a closing gala that featured Canadian pop heroes Spirit of the West. The BSIA’s annual dealer achievement awards were given at the gala, as well. Those winners are: Chilliwack Building Supplies – TIM-BR MART (building supply category); Ledner Village Hardware (hardware category); Mac Foster Building Materials, Richmond – RONA (home centre category); and Vanderhoof & District Coop (specialty category).

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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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May 9, 2011, Volume xvii, #19

““Advertising – a judicious mixture of flattery and threats.”
—Northrop Frye (Canadian literary critic and author, 1912-1991)

Offering a full line of non-toxic bedbug prevention products under the Unbuggable brand. Visit us at the National Hardware Show
in Las Vegas May 10-12, booth 6672. www.unbuggable.com

Dutton reveals plans for Calgary DC

WINNIPEG — RONA’s acquisition of TruServ Canada and its distribution facilities here give the retailer added traction in the West – and the ability to continue supporting TruServ customers, including True Value – soon to become TRU – dealers, V&S, and farm and pet dealers. “And it can support RONA dealers [carrying these products] too,” says Robert Dutton, president and CEO of RONA.

Meanwhile, the RONA Calgary DC is being readied for expansion – and possible relocation – as it will replace some smaller facilities in the area, as well. “We will consolidate our existing facilities into a new larger facility,” says Dutton. He is confident his company’s distribution network, including the TruServ Canada warehouse in Winnipeg, can provide reliable service, not just in the West, but across Canada. “We’re going to prove to 5,000 independent dealers that we have a solution for them.”

The final details of the expansion, which will enhance shipments to RONA’s Western dealers, will be announced over the next couple of years, he adds.

“RONA’s goal is to become the number-one distributor in the country and I’m confident we can achieve that.”

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TIM-BR MARTS builds distribution infrastructure

TORONTO — A cornerstone of TIM-BR MARTS’ ability to service its dealers will be its full-line hardware distribution capabilities, says Steve Stremecki, vp dealer development for TIM-BR MARTS Ltd.

And that distribution business, Chalifour Canada, continues to fortify its infrastructure with a new DC and a raft of hirings – everything from IT people to inside sales positions. The latest key buyer to join was Stephanie Daoust, appointed category manager – seasonal, based out of Chalifour’s Montreal office (see our April 25 issue —Editor).

“Chalifour lets us provide better service and a better range of products to independents,” says Stremecki. “And, we have a dedicated team that can look after them.”

He says that the addition of the west-coast distribution facilities of IRLY Distributors, purchased by TIM-BR MARTS in March, rounds out Chalifour’s offering and supports enhanced service levels, including better turns for dealers. “We needed a solution that was farther west of the Rockies than we currently had.”

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Independents fall short on service vs. big boxes

ST. JACOBS, ON — As big boxes focus more on training and customer service post-recession, the “customer service gap” is narrowing. That was the message of Scott Wright, director of member services at the North American Retail Hardware Association, in a presentation recently to Home Hardware dealers. He cited an NRHA study that revealed four out of 10 people say they get the best service from big boxes, a dramatic change from only a decade ago.

He blamed the independents themselves for letting this happen. “The failure to train has long-term implications – and I certainly think this narrowing gap is the result of the independents’ failure to train.”

Wright challenged the dealers to create a culture of training among their staff. “Are you fostering a learning environment in your store? Are you carving out time for training?” he asked. “And most importantly, do you view your employees as an asset that you should invest in?”

His recommendation: dealers should start with retail profitability training. “Too many new staff need to keep in mind the costs of breakages, stolen products and even leaving the lights on – and understand that it affects your bottom line.” He added that NRHA’s “Three Pennies of Profit” video training module helps educate employees in a light-hearted, anecdotal manner. (Click here for a preview of “Three Pennies of Profit.”)

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TV’s Ty Pennington to present at NHS in Vegas

LAS VEGAS — Ty Pennington, TV personality and home design expert, will appear at the 2011 National Hardware Show, starting tomorrow at the Las Vegas Convention Center.

Pennington, a spokesman for Sears Corp., will appear May 11 at 12:20 p.m. on the North American Retail Hardware Association stage, where he will present a toolbox full of Sears tools and gift cards to Opportunity Village, a not-for-profit organization that serves people with intellectual disabilities and is the preferred charity of the National Hardware Show.

Pennington is a New York Times bestselling author and host of “Ty’s Great British Adventure” for UKTV’s Home Network. He will also host the upcoming Canadian design-competition reality series, “Inside the Box.”

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Target tries to secure its brand in Canada

TORONTO — Target Corp. is appearing in Canadian court today in a bid to lock up rights to the Target name in this country. The contender is Target Apparel, a chain of 15 stores that sell men’s and women’s apparel.

According to a report in The Wall Street Journal, the Canadian retailer’s owner, Isaac Benitah, who also owns Fairweather Ltd., plans to open more of his Target Apparel stores before the arrival of the U.S. retailer in 2013. Target Corp. is seeking a preliminary injunction against Benitah to prevent him from opening any more the stores, which, at 15,000 square feet, are much smaller in size and assortment than the U.S. retailer’s.

Target purchased up to 220 Zellers stores from Hudson’s Bay Corp. earlier this year for $1.8 million. Those outlets will be converted to Target stores, with openings scheduled to begin in early 2013.

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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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May 2, 2011, Volume xvii, #18

“If God had wanted us to vote, he would have given us candidates.”
—Jay Leno (American comedian, 1950-)

Visit us at the National Hardware Show
in Las Vegas May 10-12, booth 6672. 

Consumers more cautious, says RONA CEO 

WINNIPEG — “We’re going to see a change in consumer behaviour,” says the CEO of RONA inc. According to Robert Dutton, a combination of post-recession wariness and urging from the federal government to reduce debt is pushing Canadians to be increasingly reluctant to open their wallets. Speaking with HARDLINES at the recent TruServ spring market, he observed that this new reality is one that retailers must be prepared to face.

“Maintenance remains important, but we have to wait for the larger projects and renovations, like kitchens, to return.”

For dealers to effectively meet this challenge, they must be prepared to offer value, he says. Loyalty programs, such as RONA’s own Ronadvantage, and easy projects like paint, are important ways to deliver that value. Another growth category for RONA has been storage and organization, he adds.

Other areas that RONA is focusing on include the launch of a new work wear line, expansion of private and proprietary brands such as Haussmann, as well as key national brands, and especially eco- and environmentally friendly products. “We realize that with our assortments of eco products, we have built our niche in this category – and I’m very proud of that,” Dutton adds.

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TIM-BR MARTS’ strategy: build national identity

CALGARY —TIM-BR MARTS Ltd. has been aggressively expanding its own banner among dealers, supporting it with a range of services to build the TIM-BR MART brand. The LBM buying group has also expanded into hardware distribution with the acquisition of CanWel Hardware (now renamed Chalifour Canada). But another name that is part of the TIM-BR MARTS stable is the Ace brand, which TIM-BR MARTS has ownership of in Canada, through the CanWel acquisition.

For the past two years, Ace has been promoted most actively in Quebec, where most of the independent and Pro dealers served by TIM-BR MARTS and/or Chalifour have made the switch to the Ace banner. There are now about 125 dealers in that province flying the Ace banner. Outside of Quebec, TIM-BR MART’s own brand was getting the most attention – until now.

As Chalifour establishes itself as a national wholesaler, Ace is poised to go national as well. At least, that’s what Steve Stremecki, vice-presidentcorporate development at TIM-BR MARTS, has indicated. “Our number-one brand is the TIM-BR MART brand, but we have the rights to an important asset,” says Stremecki. With the capability of TIM-BR MARTS to provide a full range of hardware through Chalifour Canada, he says, the opportunity exists to expand the Ace banner, as well.

“Ace exists as a potential banner, either for TIM-BR MART dealers that have a focus on the front end or for a non-member who needs a brand as a banner.”

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Vegas show promises varied speaker program

NORWALK, CT — Actor and environmentalist Ed Begley Jr. will headline the lineup of speakers at the 2011 National Hardware Show, May 10-12 at the Las Vegas Convention Center. The seminars will be held throughout the three-day show on the North American Retail Hardware Association stage in the central hall lobby.

In addition to recurring TV roles, Begley is the co-star of the Planet Green series “Living with Ed,” a look at the day-to-day realities of living green. He has also been chairman of the Environmental Media Association and the Santa Monica Mountains Conservancy. (Begley Jr. will speak Tuesday, May 10, at 3 p.m. on behalf of Santerra Green, an environmentally-friendly composting toilet system made in North America by Sancor Industries Ltd.)

Another featured speaker is Dan Tratensek, editor of Hardware Retailing magazine and vice-president of publishing for the NRHA, who kicks off the program on May 10 at 10 a.m. He will talk about where home improvement retailing is likely headed in the near future and how macroeconomic shifts are likely to impact the industry.

In the seminar, “Advertising, Adapting to Today’s Consumer: Myths vs. Reality” (May 10, 1 p.m.), James Robisch, a senior partner of The Farnsworth Group, will explain the role of advertising in the home improvement industry. His presentation will touch on the role of print ads vs. other media, how to create awareness, reinforce brand message, and correct market position weaknesses.

In “Boom, Box, Echo: The End of Big-Box Retail as We Know It” (May 11, 10 a.m.), Doug Stephens of Retail Prophet Consulting will discuss the new generation of power retail and whether the big box model can survive amidst rapid social and economic change. (Doug gave this amazing presentation at the Johns Manville HARDLINES Dealer Conference back in February. If you missed it then, here’s your chance! —Michael)

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Home Depot claims one-quarter of U.S. market

ATLANTA — The recent release of Home Depot’s 10-k filing with the SEC provided information about sales and store openings, but included some other points of interest, as well. For example, using Census Bureau data, Home Depot estimates that its American stores control about 26% of the U.S. market for building products and supplies.

The retailer added 2.9 million net square feet of distribution space in 2010, mostly by opening seven more of its massive Rapid Deployment Centers. More than two-fifths of Home Depot’s cost of sales is now serviced through its 19 RDCs. Last year, the company spent $1.1 billion on capital expenditures, more than a third of that on “core technology,” and another $864 million on advertising.

In its ongoing efforts to protect the environment, Depot helped recycle 700,000 pounds of compact fluorescent light bulbs, 620,000 pounds of rechargeable batteries, 120,000 of lead acid batteries, and 160,000 tons of cardboard.

The company’s revenue outside of the U.S. rose by 6.7% to $7.5 billion. However, it did not provide a breakdown for its Canadian operations.

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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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April 25, 2011, Volume xvii, #17

“The strongest man in the world is the man who stands alone.”
—Henrik Ibsen (Norwegian playwright and poet, 1828-1906)

TruServ’s new banner focuses on community 

WINNIPEG — At the TruServ Spring Market last week, company president Bill Morrison announced a new banner for independent dealers. The group, now owned by RONA, will encourage its True Value hardware and building centre dealers to replace that banner with the “TRU” name, which will be used in three formats: TRU Hardware, TRU Building Centre, and TRU Farm & Garden. The conversion is expected to be completed by late fall and the bulk of the costs related to the conversion will be assumed by TruServ, not the dealers.

The name change dovetails with two situations. The Canadian rights to the True Value name, licensed at a hefty price tag from The True Value Company in Chicago, come up for renewal in October. Rather than renew, TruServ Canada and RONA are reinforcing the mandate to build an all-Canadian company by creating a banner that is itself distinctly Canadian.

Morrison says the takeover by RONA was the springboard for re-evaluating every part of the TruServ business. “We looked at all the things we did as a company — location, strategies, marketing — and our brands.” Through focus groups with both customers and dealers, the marketing teams at RONA and TruServ identified changes at the dealer level, including a new generation of younger dealer-owners who are more connected both through the internet and to their own communities.

Licensing the True Value name has been costly, as well. With the latest five-year licensing agreement about to expire in October 2011, “We thought the time was right to be a real Canadian brand,” Morrison says.

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TIM-BR MARTS adds new dealers, increases services

CALGARY — TIM-BR MARTS Ltd. has added three new dealers representing 11 new locations to their Canada-wide network. They are: Burnco Rock Products Ltd., a family-owned construction aggregates business with five outlets in British Columbia and Alberta; Morrow’s of Drumbo, Drumbo, ON; and St. Alban’s Building Supplies of St. Alban’s, NL, owned by Mike Strickland, which carries a wide selection of lumber, building materials, and hardware.

Expansion efforts by TIM-BR MARTS tie in with other initiatives from the group, most notably its recent trade show held earlier this month in Toronto. That event, in turn, was a showcase for more than just products by 240 preferred vendors. It offered a way for the giant buying group to promote its growing range of services to its 700-plus dealers across the country.

TIM-BR MARTS must not just help the dealer to buy better, but to sell better, as well, says Steve Stremecki, who was recently appointed vp corporate development, moving from a role in retail services. The role, heading up a new division at the group that includes recruitment, reflects TIM-BR MARTS’ emphasis on growing its dealer ranks.

According to Stremecki, the addition of new members develops “critical mass and gives us the opportunity to be better at the science of retail and to understand space in the store. We are increasing the variety and velocity of those products.”

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RONA’s Dutton expresses concern over foreign ownership

TORONTO — Robert Dutton, CEO of RONA inc., appeared before the Economic Club of Canada last week to present his vision of the Canadian economy amidst the global scene. He shared his concern that already half of Canadian retail is foreign-owned, with that poised to rise to 70% in a few short years.

The growth of RONA, which includes the recent acquisition of TruServ Canada, reflects Dutton’s vision to build a strong Canadian company that creates jobs and wealth for Canadians.

He acknowledged the success of homegrown companies such as Loblaw — and RONA — but asked the question, could they remain competitive against international competitors? Pointing again to his own company, he said, “In 2010, our share of the Canadian market was higher than Lowe’s and Home Depot’s combined. And nearly 55% of our sales are in Ontario and Western Canada. When I tell this story, it is often received with typical Canadian disbelief. The truth is, despite the enormous visibility of Home Depot and Lowe’s, our sector — hardware and renovation — is still largely dominated by Canadian companies, which account for over 80% of the market.

“What I want to say is that the arrival of multinational giants does not signal the death of national players — in either the short term or the long term.”

In an interview with HARDLINES, Dutton (shown immediate right with our Editor) said RONA’s own plans for international expansion are being carefully considered. The first step would be the U.S., but focus right now is on expansion of the company’s commercial division, Noble, which is looking south of the border for new commercial-industrial wholesalers to acquire.

On the home improvement side, Dutton says any acquisition will be of a hardware distribution business. He adds that there’s still lots of room for further consolidation of the Canadian market, however, before RONA looks to grow the home improvement business internationally.

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Lumber Liquidators opens doors for Canadian suppliers

TOANO, VA — Jeff Griffiths, president and CEO of Lumber Liquidators, says his company’s entry into Canada is an important part of the hardwood flooring etailer’s expansion plans for the next five years. With three stores already in place in the Greater Toronto Area, and another that just opened in Barrie, ON, the company plans a total of eight for this year, with up to 40 over the next four to five years.

Griffiths says Canadian tastes are largely similar to those of U.S. consumers. However, products such as the chain’s own brand, Bellawood, are currently being finished and shipped from mainly out of its Toano distribution center. Imported product from China is usually shipped direct to Canada from the Orient.

However, Griffiths likes to buy a lot of product locally, and says he is talking to mills here in Canada already. He adds that the market for hardwood flooring in Canada is actually stronger than in the U.S. South of the border, hardwood accounts for only 14% of the market, while it’s closer to 23% here.

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 Lawn & garden a focal point of National Hardware Show

NORWALK, CT — The Lawn & Garden/Outdoor Living area at the National Hardware Show has added more exhibiting companies this year, reflecting the growing trends of outdoor rooms, “staycations,” and organic and “grow-your-own” gardening.

The show, which will be held May 10-12 at the Las Vegas Convention Center, will feature more than 600 exhibitors of barbecue grills and accessories, fencing, fertilizers, flower plants, gardening tools, apparel and accessories, garden ponds and fountains, seasonal décor and supplies, irrigation equipment, outdoor lighting, patio furniture, etc.

Derril Linseman, product manager – lawn and garden for Home Hardware Stores Ltd., says lawn and garden is an important category to view at the National Hardware Show. “I always find not just new products, but also the latest trends in colours, styles, what’s hot and what’s not,” he says. “The number of quality vendors and products continues to grow. It is an important starting point for our selection of product for the next season.”

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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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April 18, 2011, Volume xvii, #16

“The Bible tells us to love our neighbours, and also to love our enemies; probably because they are generally the same people.”
—G.K. Chesterton (British author, 1874-1936)

Home Hardware market draws new members 

ST. JACOBS, ON — While the overall mood was distinctly upbeat at the latest spring market for Home Hardware dealers, dealers individually continue to share concerns about the slow pace of Canada’s economic recovery.

The show, which attracted thousands of dealer-owners, their families and staff members to the Home Hardware distribution centre in this tiny village in Southwestern Ontario, featured new services, new products, and new technologies.

The support system for Home is powerful and its range of services ever evolving, including the development of new in-store TV technology and a new dealer platform for the co-op’s intranet site. But dealers appeared more focused on returning to business as usual following a slow second half of 2010 and a harsh winter that stalled sales industry wide during the first quarter.

A number of dealers shared an optimistic, if sober outlook, following a year that found many with sales flat or down despite the buoyant first half of 2010.

Home Hardware itself has enjoyed good dealer growth, as the consolidation among groups and wholesalers has left many dealers evaluating their alliances. Home now counts more than 1,080 dealers in its ranks and 37 new dealers attended this latest market. Even in Quebec, where it has less than 5% market share, its weakest presence of any province or territory (according to the HARDLINES Market Share Report), growth has been strong as well. By the time of the spring market, Home had 103 dealers in Quebec.

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TruServ’s Morrison: expect more value at market

WINNIPEG — TruServ Canada is wrapping up its dealer market today, the first officially under the ownership of RONA inc. (The acquisition was actually announced at the last TruServ market in fall 2010.)

Already, the new ownership structure is capturing dealer interest. “Attendance is going to be up about 20%,” TruServ president Bill Morrison told HARDLINES just days before the show started, “so curiosity is there among the dealers.” Nor, he added, will they be disappointed. “We’ve got some great things to share with them.” That included having RONA CEO Robert Dutton speak on the first morning of the show “about his vision for dealers.”

Morrison declined to share other specifics at the time, saying only, “We’re just putting the final stuff to bed; hopefully everything will come together on time.” He did note that there will be more value-driven programs offered to dealers to help them address the frugality of today’s post-recession consumer.

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Castle adds members, locations

Mississauga , ON — Castle Building Centres Group Ltd. has added stores and members to its ranks. In Quebec, it has signed Matériaux à Bas Prix, a chain with four stores: in St-Antonin, Lachute, and Gatineau, QC, and St. Isidore de Prescott, ON. Once a discount lumber chain with 22 stores that also went by the name Bargain Building Supplies in anglophone markets, it consolidated in recent years, and changed hands in 2008 when Sylvie Pomerleau became owner and president of the company.

With estimated sales of $60 million, Notre Dame Agencies in Newfoundland is one of Castle’s largest dealers. It has added another location — a truss factory at Grand Falls in Windsor, NF. It’s the 10th LBM location for the chain (which also has four furniture stores). Owner Cluny Sheppard also serves on the Castle board.

Other new members are: Sauve Lumber and Storage Inc. in Timmins, ON; C.D.S. Building Supply, Winnipeg; and P.R. Service in La Loche, SK, a hardware store that recently expanded into building materials.

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Verschuren challenges industry to innovate

TORONTO — Annette Verschuren, the former president of Home Depot Canada, was inducted recently into the Industry Hall of Fame, and she didn’t miss the opportunity to leave behind some words of wisdom for the audience.

Verschuren, along with the late Joseph Kuchar, founder of Recochem, was honoured at a luncheon hosted by the Canadian Hardware and Housewares Manufacturers Association, which puts on the awards. She called the induction “a great honour and I accept it with grace.”

She then talked about the future of the home improvement industry — and urged the vendors in the room to continue to develop new products. “I just want you to focus on more innovation. Keep making it easier for the customer. That customer is looking for easier ways to do things.” She observed that home improvement, the DIY experience, is getting more complex. “Making that easier, introducing new products — make them environmentally responsible — that is going to be our future.”

The other point she made was for diversity. “Keep bringing diversity into this industry. You will get better when you hear from a broader perspective of people.”

(Watch Verschuren’s speech now on HARDLINES TV.)

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 Orgill, Do it Best execs will share ideas in Vegas

INDIANAPOLIS, IN — A panel of U.S. wholesaler executives will discuss global retail and economic trends at the International Hardware Association Congress, May 9-12 at the Bellagio Hotel in Las Vegas.

The event, hosted by the North American Retail Hardware Association, will be held in conjunction with the NRHA’s own All-Industry Convention. “We are excited to bring together some of the industry’s leading executives to discuss international retail trends at this year’s congress,” says Bill Lee, president and CEO of the NRHA. “Our featured panelists offer a wide range of international perspectives.”

Representatives from three of the world’s leading hardware wholesalers will lead the panel discussion: Thomas Barfell, director of international sales and category development manager for Do it Best Corp.; Jerry Cardwell, vice-president of corporate development and international sales at Orgill Inc.; and Davis Patrizi, True Value Hardware’s director of affiliate and international business.

Additional business seminars, networking opportunities and recreational activities will also be included in the IHA Congress program. For complete details, visit www.iha2011.com; or contact Bill Lee at blee@nrha.org.

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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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April 11, 2011, Volume xvii, #15

“Some people achieve happiness and some just live in Toronto.”
—Emily Murphy (Canadian author, activist and judge, 1868-1933)

Home dealers arrive for 2011 Spring Market 

ST. JACOBS, ON — Thousands of Home Hardware dealers, their staff and families, have converged here this week for Home’s Spring Market. The show, which runs until tomorrow, is the 96th in the co-op retailer’s history.

“The theme for this year’s market is ‘Together towards Tomorrow’,” says Paul Straus, president and CEO of Home Hardware Stores Limited. “This theme captures the essence of the independent yet team-minded approach that drives Home Hardware to success year after year.”

The spring market plays host to more than 12,000 Home Hardware dealers, staff, vendors, and hardware industry representatives. A series of educational seminars the day before the market and a tour of the company’s paint plant today gave dealers additional opportunities to get updated on products and services available through Home.

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TIM-BR MARTS show provides forum for services

TORONTO — The recent TIM-BR MARTS show was a showcase for more than just products by some 240 preferred vendors. The event, held April 1-2 at the Toronto Congress Centre, offered a way for the giant buying group to promote its growing range of services to its 700-plus dealers across the country — and to give those dealers a forum for networking and information exchange amongst industry colleagues.

(l-r) Byron Tremere and Gaeten Barrette are among the sales staff supporting Chalifour Canada’s presence at the recent TIM-BR MARTS show.

Dealers got a chance to explore the “Store on the Floor,” a re-creation of the TIM-BR MART store. Vendor programs were presented in the replica store, featuring products available through the Chalifour warehouse or, in some cases, on a direct-ship basis.

The TIM-BR MART Marketing Toolbox highlighted programs available to dealers. “Essentials” featured eight booths of non-core business essentials for entrepreneurs to take advantage of. The group’s services were supported at the show by TIM-BR MARTS staff from several divisions, including corporate development, marketing, and procurement.

The recent acquisition of the distribution facilities of IRLY Distributors Ltd. by TIM-BR MARTS assured a place at this show for the B.C.-based group. IRLY had a booth supported by several team members who educated dealers on value-added services such as freight, logistics, and ordering that are offered by the Western distribution operation.

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Réno-Dépôt expands presence in Quebec City

BOUCHERVILLE, QC — RONA inc. has taken another step in its expansion of the important Quebec market. The addition of a Réno-Dépôt store in the borough of Ste-Foy represents the third for RONA under the Réno-Dépôt banner to serve the Quebec City region. The 100,000-square-foot retail outlet, at 3131 Blaise-Pascal Ave., represents an investment of more than $20 million and is expected to create about 125 jobs. The two other area Reno-Depot stores are located in Beauport in the east, and on Maurais St., near Galeries de la Capitale, in the centre of the region.

RONA says the store represents the company’s latest initiatives in new-store construction. “RONA is proud to continue developing its network and to offer the people of Sainte-Foy a big-box store that is among a new generation of Réno-Dépôt stores, built to meet the criteria of the LEED system for new construction,” says Mario St-Louis, RONA’s vice-president of retail for Quebec.

Just three weeks ago, RONA opened another Réno-Dépôt store in Vaudreuil-Dorion.

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Ace promises to improve fill rates

CHICAGO — Ace Hardware Corp. kicked off its spring buying market last week at the McCormick Place Convention Center. Ace executives were contrite about the recent troubles the co-op has faced with the integration of its new supply-chain management system. However, they were positive about the overall direction the company is headed in.

Ace CEO Ray Griffith admitted that Ace had not been living up to its members’ expectations. A significant portion of the problem, he noted, was the difficulty surrounding the integration of a new SAP supply-chain management system. Since implementation of the system, Ace saw its service levels and fill-rates dip to as low as 95.5%, well below the company’s stated goal of 96.7%.

Griffith added that the co-op is implementing a series of performance metrics built around seven key variables, including cost of goods sold vs. wholesale competition, service levels, wholesale inventory turns, wholesale purchases by members, and bottom-line profitability.

On a more positive note, Ace execs reported that members’ stores experienced a 5.8% increase in same-store sales in February and an increase in transactions of 3.8%. Ace also introduced some changes to its paint lines with the unveiling of a new paint and primer in one product, which the company hopes will energize flagging sales in the category.

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 Asia Pacific show featured European innovation

COLOGNE, Germany — Despite an overwhelming presence by Chinese companies at the latest Asia-Pacific Sourcing, European innovation was present at the show, as well.

DesignCord, a Netherlands company, was just one of several European vendors that took advantage of the show to feature new products. Asia-Pacific Sourcing gave DesignCord’s Michael van der Jagt a forum to meet retailers and buyers from Europe and North America.

Another Dutch company, Euromac, which buys direct from China and is shipping in small lots all over Europe, made inroads with retail buyers looking for options that didn’t require full container loads from Asia.

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 Canadians may be less green says Home Depot

TORONTO — Are Canadians getting greener? Maybe not. At least, according to the results of the third annual Canadian Green Home Index, developed for Home Depot by Environics Research.

The Index assigns Canadians a 54.7 out of 100 rating when it comes to environmental actions taken at home, down 1.9 points from last year. The number of Canadians who reported green actions in the past six months declined from 69% in 2010 to 61% in 2011. Although the majority report that their level of effort is about the same (53%), only 41% say they made a greater effort, compared with 46% last year.

The Index results also reveal a notable link between going green, the influence of friends and neighbours, and, for the second year in a row, the Canadian economy. “There’s no doubting that our friends and neighbours have influence on our green actions. These are the people we associate with regularly and measure our homes against,” says Gino DiGioacchino, vice-president of merchandising for The Home Depot Canada.

“The key to driving change is empowering each other to incorporate environmentally-preferred products into everyday activities — this collective approach can result in a green shift for the better.”

Home Depot is reflecting this green mentality with its own product lines. “The Home Depot has lowered prices on its more than 2,400 Eco Options products since the program’s launch. We offer a number of cost-saving programs within the store, such as rebate programs on environmentally-preferred appliances, toilets, and lawn mowers,” DiGioacchino adds.

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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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April 4, 2011, Volume xvii, #14

“A clever man commits no minor blunders.”
—Johann W. Von Goethe (German author and philosopher, 1749-1832)

Buzz at TIM-BR MART show attracts dealers 

TORONTO — Dealers from all over Canada gathered at the Toronto Congress Centre for a new buying show this past weekend. TIM-BR MARTS Ltd., the Calgary-based buying group, held its first show ever, drawing 600 members to meet 250 exhibiting companies spread out over more than 100,000 square feet.

The show is another example of how the LBM buying group is increasing the range of services and supports for its 700-plus dealers. Those services include a full hardware distribution network through TIM-BR MARTS’ Chalifour Canada hardware division.

Vendors were generally pleased with the turnout, which appeared strong last Friday, the first day the show floor was open. “This show is shaping up well. They did a good job of organizing it,” says Ed Parkes, regional sales manager for Exchange-A-Blade. “When I walked into the show this morning, there was a buzz in the air,” says Tony Anderson, vice-president, sales and marketing for CGC Inc.

The show featured hardlines dealers down the left side of the floor and LBM dealers down the right. The show was divided by TIM-BR MARTS’ own services and programs area. “We can’t just help the dealers to buy better; we have to give them the tools to sell better, too,” says Steve Stremecki, vice-president corporate development at TIM-BR MARTS.

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Lumber Liquidators: more Canadian stores this year

TORONTO — U.S. flooring retailer Lumber Liquidators is expanding into Canada, with a total of eight stores planned for this year alone. The specialty retailer already has three stores in the Toronto area: one in East York, another in Vaughan, and a third, which opened March 18, in Brampton.

Insiders say that stores are planned for Barrie, Kitchener, Stoney Creek, and as far east of Toronto as Kingston, while longer-term plans include westward expansion in cities such as Winnipeg and Calgary.

In what was once considered a down-and-dirty category, Lumber Liquidators has certainly raised the bar on what a flooring store should look like, with a clean presentation of a range of hardwood and engineered wood flooring products in a small, 1,000-square-foot area supported by a 5,000-square-foot warehouse. And the results have been dramatic. Since it was founded in 1994, the company has grown to more than 200 outlets in the U.S. with 2010 sales of $620.3 million.

Lumber Liquidators is not alone in looking north of the border to expand. But unlike so many other U.S. retailers beleaguered by the economy there, it has been looking at Canada for a number of years, says Jeff Griffiths, president and CEO of Lumber Liquidators. His research, based on years of study and focus groups, tells him it’s a good market.

“Hardwood flooring is a much greater percentage of the flooring business in Canada than in the States,” he says. “It’s about 22-23% in Canada, vs. only 14% here.” That, combined with a high level of home ownership compared with the U.S., made Canada a compelling market. But when it comes to individual customers, “we found that the Canadian consumer for hardwood flooring is in many ways the same as in the U.S. They like hardwood, they like laminate, they like stained finishes, and they do a lot of research before they make their purchase — which is very similar to the customer we attract in the U.S.”

The company is focusing on the Greater Toronto area this year, with as many as six more locations planned for this year. “We have a target long-term of about 40 stores in Canada, and that will keep us busy for the next four to five years,” says Griffiths. “We’d like to be an international retailer and this just made sense to be our first international expansion.”

(Click here to take a photo tour of the Lumber Liquidators store in East York, Ont.)

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“Buying desk” will let dealers place orders at Vegas show

SPECIAL REPORT — Adam Busscher, owner of Picton Home Hardware Building Centre in Picton, Ont., is just one of the many independent dealers who intend to make the trip to Las Vegas this spring. He hopes to send six company representatives this time, up from four in 2010. Busscher and his staff will be looking for new products in all the hardlines categories.

“It is very important to me and my company that when we are attending the National Hardware Show, we are able to see all the biggest vendors with the most exciting new products,” Busscher says.

One of the new features that’s drawing Busscher, and other independents like him, is a new “Buying Desk Program.” Suppliers attending the 2011 event — to be held May 10-12 in Las Vegas — will be able to sell products to independent retailers through their existing co-operative and distributor programs.

“This new program will give independent retailers the chance to show new products to co-op and distributor buyers on the spot and get these products into their stores more quickly,” said Rich Russo, event director, National Hardware Show. “We are very excited to have this program in place for this year’s show.”

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RONA’s Dutton to speak at European Conference

COLOGNE, Germany — The European DIY Retail Association, an international organization representing 30 major home improvement retailers worldwide, is joining with the Global Home Improvement Network and fediyma — the European Federation of DIY Manufacturers — to hold a significant global conference for the home improvement industry this summer.

The event, “One world – what will shape the future of home improvement worldwide,” will take place June 8-9 at the new congress centre in Brussels. It is expected to host 500 retail and supplier executives from all over the globe.

A range of senior European retailers will make presentations: Régis Degelcke, president of EDRA and vice CEO of Groupe ADEO (France); Ian Cheshire, CEO of Kingfisher (U.K.); George Adams, CEO of Maxeda (Netherlands); and Rinat Mukhametvaleev, CEO of Trest SCM-Stroyarsenal (Russia).

Speakers from retailers outside Europe include Canada’s own Robert Dutton, CEO of RONA inc.; along with Greg Bridgeford, executive vice-president of Lowes (USA); Sandro Solari, CEO of Sodimac (Chile); Michael Wedgwood, CFO of Bunnings (Australia); and Raj Kumar, president of Homecentre (India).

The highlight of the congress will be the first Global DIY Lifetime Award, which will be presented to the charismatic co-founder of Home Depot, Pat Farrah, who is credited with being the inventor of the DIY “big box.”

HARDLINES is pleased to represent EDRA in Canada for this congress. To get more information or to plan your trip, email Beverly Allen or call her at 416-489-3396. More details at www.edra-online.org.

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 Canadian wins NRHA’s Young Retailer Award

CAP-PELE , NB — Five young home improvement retailers are being honoured by the North American Retail Hardware Association at its next convention for outstanding achievement as owners and managers of independently owned hardware and building supply stores. They are honourees in the 2011 Young Retailer of the Year program.

Conrad LeBlanc, owner of Tediche Home Hardware Building Centre, is one of this year’s winners.

LeBlanc went to work in his uncle’s store in 2000. Shortly thereafter his uncle retired and LeBlanc and his family purchased the business; by 2006 he was in charge. His store serves a trading area of 40,000 that depends largely on the fishing industry. LeBlanc doubled the size of the store to about 9,000 square feet and added many new product categories. Further growth encouraged him within a few short years to add yet another 3,000 square feet. The result of all this expansion and increased customer service is a business that has grown from just over $2 million to $7 million in annual sales.

LeBlanc and his fellow Young Retailer Award winners will be honoured at the NRHA’s All-Industry Convention, May 10-12 in Las Vegas. Click here for more information on how you can attend this year’s convention.

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 Home Depot issues debt to repurchase more stock

ATLANTA — The Home Depot has announced a new debt offering to pay for an acceleration of its stock buyback programs. The retailer is issuing $2 billion in senior notes, with the proceeds being used to repurchase $1 billion worth of its outstanding shares. That’s in addition to the $2.5 billion in stock it already announced it would repurchase this year.

Frank Blake, Home Depot’s chairman and CEO, said the company decided to take advantage of “the attractive interest rate environment” by issuing the notes for its stock repurchase. Blake also noted that the timing coincides with Home Depot’s recent reporting that 2010 was the first year the retailer has generated positive sales growth since 2006.

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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
• National Field Sales Manager with twelve plus years in power tools and hardware sales/merchandising. view this resumé
• Business Manager with U.S. & Canadian experience with retail & industrial customers seeks a new opportunity. 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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March 28, 2011, Volume xvii, #13

“Advertising may be described as the science of arresting
human intelligence long enough to get money from it.”
—Stephen Leacock (Canadian humourist, author and economist, 1869-1944)

RONA opens new-look Réno-Dépôt store

BOUCHERVILLE, Que. — RONA inc. has opened a new Réno-Dépôt store, this one in the Méga Centre in Vaudreuil-Dorion, Que. The new 102,000-square-foot store carries 37,000 SKUs and is RONA’s 17th under the Réno-Dépôt banner. It represents an investment of close to $25 million and about 140 jobs.

“This store is one of a new generation for Réno-Dépôt,” says Mario St-Louis, RONA’s vice-president of retail for Quebec. “It offers all the advantages that make the banner so popular, including competitive prices and a wide selection of products in each category, all in a shopping environment that is enjoyable, customer-friendly and efficient.”

The new Vaudreuil-Dorion store, built to meet LEED criteria (Leadership in Energy and Environmental Design), also represents the latest concept for Réno-Dépôt stores. The central aisle is lined with boutiques offering various decoration and finishing products. These include flooring, doors and windows, kitchens, bathrooms, paint, interior decoration, and storage.

The storage boutique, a fast-growing category for RONA, is located near the entrance to the store. It features a selection of storage items for the garage, kitchen, basement, and closets.

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 Canadian Tire launches new ad campaign

TORONTO — Canadian Tire has launched a consumer campaign designed to position the company as Canada’s destination for all the small jobs facing homeowners. The ads feature the slogan, “Bring it on.” They replace the campaign, “For Days like Today,” that was in place since 2008.

The new campaign features Canadians saying “bring it on” to the everyday realities of everything from repairing a yard ravaged by winter, barbecuing in the rain, camping with the family, painting a drab den or spring cleaning the house or car.

The campaign launched last week with a 60-second television commercial followed by a series of shorter, product or seasonal-specific commercials, as well as print ads. A social media component will encourage the conversation through mobile devices, CanadianTire.ca and Facebook.

According to the company, it spent six months doing focus groups and surveys to understand what its unique selling proposition for Canadians is. Canadian Tire’s ultimate competitive differentiator, it turns out, is its perception as “a core provider of the tools, products, and services necessary to living everyday life in Canada” — and all the weather and barbecue and traffic and great outdoors that Canadian life entails. Canadian Tire used this insight to create this latest campaign.

(Click here to see the latest ad from Canadian Tire.)

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Habitat ReStores find footing post-recession

TORONTO — A discount and remainder retailer that represents a good cause is Habitat for Humanity’s ReStore outlets. With almost 60 of them across the country, they have gradually gained a presence in home improvement retailing. In fact, during the recession, sales in these stores grew on average by more than 10% while traditional hardware and building centre dealers suffered negative sales for the first time in two decades.

While best known for great — albeit fleeting — deals on everything from overstock floor tiles to used kitchen cabinet sets, ReStores are getting more imaginative in marketing themselves, as well. Take Toronto, for example. It’s the country’s largest ReStore operation (each region has its own Habitat for Humanity chapter and the ReStores operate discretely within those chapters). The stores were represented at the National Home Show in Toronto back in February, with a booth designed by Melissa Davis of the Your Designer Friend. Best known for her appearance on the last couple of seasons of “Income Property” on HGTV, Davis has supported ReStores for the past five years. She even gave seminars at the show on how to use ReStore materials in the home.

Despite the growing awareness, however, the ReStores are feeling the crunch of reduced consumer confidence post-recession. And as large renovation activity has slowed, the stores’ ability to recover materials from worksites has become a challenge. “Recovery has been up and down for ReStores in general, says Derek Harney, vice-president of ReStore operations for Habitat Toronto. “We’ve had some up weeks and we’ve had some really disappointing weeks. It’s quite a contrast to this time last year.”

That is not preventing Harney from expanding, however. Toronto ’s fourth ReStore will open next week, and represent the first in Toronto near the downtown area. It will be located in Toronto’s east end, in the so-called Studio District at the bottom of Carlaw Ave. A $10,000 kitchen will be the centrepiece of the grand opening.

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 Hardware takes the spotlight at Asia-Pacific Sourcing

COLOGNE , Germany — The fourth edition of Asia-Pacific Sourcing closed in Cologne on March 11, after hosting 5,100 trade visitors from 70 countries. Representatives from Europe’s leading retailers attended, including Bauhaus, Praktiker, Obi, Hornbach, toom, Globus, Max Hauri and Brico Depot, along with buyers from major supermarket chains such as Metro, Netto, and Woolworth. They came to see almost 600 exhibitors from 13 countries.

“Asian products, ordered in Cologne, marketed all over the world – the Asia-Pacific Sourcing concept was very well received by the market participants”, says Oliver P. Kuhrt, executive vice-president Koelnmesse GmbH, which owns the show. “In particular, the large level of participation from abroad underlines the significance of the trade fair as an international hub for global sourcing between Asia, Europe and North America.”

Under the heading “Best of China,” this year, for the first time, new products in various categories from the hardware segment were shown in a special presentation area.

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 Quebecers more pessimistic in 2011

MONTREAL — After stabilizing in 2010, the confidence index of Quebec consumers is down 8% from the same period last year. The drop has been attributed to pessimism associated with the province’s financial situation. The survey, prepared by Groupe Altus for the Retail Council of Quebec, addresses Quebecers’ buying behaviours and intentions for the next 12 months.

This survey reveals that 75% of Quebec households see their financial situation as having improved or remained stable in the past 12 months; this situation is nearly unchanged compared with the same period last year. Again this year, the increase in the cost of living is perceived as the main factor in the deterioration of households’ financial situation.

Nearly half (46%) of Quebecers believe that this is a good time to purchase big-ticket items, compared with 50% in winter 2010. The survey also shows a slight decline in intentions to make major purchases. Finally, automobiles rank first among major purchases planned, overtaking household appliances, which topped the list last year.

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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
• National Field Sales Manager with twelve plus years in power tools and hardware sales/merchandising. view this resumé
• Business Manager with U.S. & Canadian experience with retail & industrial customers seeks a new opportunity. 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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March 21, 2011, Volume xvii, #12

“May your blessings outnumber the shamrocks that grow,
and may trouble avoid you wherever you go.” —Irish Blessing

Dealers can keep IRLY name under TIM-BR MARTS merger

SURREY, B.C. — The acquisition by TIM-BR MARTS Ltd. of the distribution business of IRLY Distributors will not necessarily affect the operations of the IRLY dealers themselves.

The terms of the acquisition include the merger of all 46 IRLY Building Centre locations as full members of TIM-BR MARTS (formerly, they were affiliated with TIM-BR MARTS as part of the larger buying group). However, those dealers may continue to keep the registered name of “IRLY Building Centres” only, or co-brand with TIM-BR MART. The IRLY dealers also have the option now of converting to become fully-branded TIM-BR MART locations.

“TIM-BR MARTS Ltd. offered the IRLY family the opportunity to keep their independence, yet be part of the largest buying group in Canada – and a strong brand. It was clearly win-win,” says Susan Robinson, president and CEO, IRLY Distributors Ltd.

It’s also a win for the management and staff: “The entire IRLY Distributors team will remain in place to ensure there is no interruption to the excellent service our members and customers have come to expect,” Robinson adds.

In addition, the entire unionized warehouse team at the IRLY DC will be kept on.

Tim Urquhart, president and CEO of TIM-BR MARTS, notes that the company is eager to welcome all current IRLY dealers, as well as other independents already being supplied by IRLY in the West. “The addition of IRLY dealers brings a solid network of respected, service-driven entrepreneurs that we will be proud to represent,” he says.

IRLY, founded in 1963, stands for Independent Retail Lumber Yards. TIM-BR MARTS, in business since 1967, represents more than 700 member locations across Canada and over $2 billion in annual purchases.

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 TSC opens another Villager franchise store

AYLMER, Ont. — This town in Southwestern Ontario is the home of the latest TSC Villager franchise store. It opened here last Wednesday.

TSC Stores has experienced rapid growth in recent years, with new corporate stores going up throughout Southern and Central Ontario – and even into Manitoba. But another expansion strategy coalesced for the farm and hardware retailer three years ago when it decided to create a franchise program, as well. The franchise stores are branded “TSC Villager,” a reworking of a name used for a test hardware “store within a store” for building centres that TSC had tried out a few years earlier. At between 7,500 and 8,000 square feet, the Villager stores are smaller than traditional TSC outlets to suit smaller communities.

The first stores were former Country Depot outlets and this latest store in Aylmer is also a conversion from Country Depot. “The owner liked what he’d seen of TSC and decided to make the switch, rather than sell outright to TSC,” says Paul Chapman, director of dealer development for TSC.

Including the Aylmer store, there are now five Villagers in total, of which three are corporate stores. However, Chapman says, TSC already has prospects lined up to take those over.

Chapman expects another three or four to be opened this year, all in Ontario. However, he anticipates expansion outside of the province in coming years. “We have lots of interest from dealer prospects.”

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Valspar makes return to independents’ stores

ORLANDO, Fla. — Canadian dealers will have access to a national brand that has not had widespread distribution in this country for many years. Valspar was one of the exhibiting vendors at the recent Orgill market here, offering a prominent promotional effort to Canadian dealers walking that show. Orgill ships the Valspar coatings lines to its U.S. dealers and now the brand will be available to its customers in Canada.

Until now, Valspar had been available only through another U.S. company – Lowe’s, which has fewer than 20 locations so far in Canada.

“Now Castle and other dealers ordering through Orgill have a Canadian exclusive,” says Jack Ivy of Valspar. “They’re not competing against anyone with this line so we’re very excited about it.” Ivy adds that the Valspar cans meet Canadian packaging requirements, including bilingual labels.

The arrangement has an upside for Valspar, as well. The market in the U.S. continues to be weak, while Canada has been “pretty steady,” Ivy says.

“Manufacturers have to come to Canada. It’s their best opportunity for easy access to a market. It’s a truck ride away.”

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 Johnson replaces Khan at the helm of OSRAM SYLVANIA

MISSISSAUGA, Ont. —  James (Jim) L. Johnson, Jr. has been appointed president of OSRAM SYLVANIA Ltd./ltée, effective immediately. He replaces Abbas Khan, who is moving over to Carrier Canada to assume the role of president beginning April 1.

In his new role, Johnson will have overall responsibility for the Canadian company’s sales, operations and support functions, including the trade, retail and automotive lighting sales channels and the SYLVANIA Lighting Services division. He’ll be based in Mississauga, Ont.

Johnson joined GTE Sylvania, the predecessor of OSRAM SYLVANIA, in 1985 and has held positions of increasing responsibility at multiple locations and businesses. In 1995, he was named vice-president of OEM marketing and sales in the Automotive Lighting division, and then moved on to vice-president and general manager of the Automotive Lighting assemblies division in 1997. In 1998, Johnson was named president of Valeo Sylvania, a joint venture between OSRAM SYLVANIA and Valeo. He was then appointed executive vice-president and general manager for Global Automotive Lighting in 2001.

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 New products will be showcased at Las Vegas show

NORWALK, Conn. — New product introductions are expected to take centre stage at the 2011 National Hardware Show. This year’s event, May 10-12 in Las Vegas, will showcase innovations from brands such as 3M, Robert Bosch, Char-broil, The Coleman Co., and Jarden Safety & Security.

The show itself will be organized within these show categories: Hardware & Tools; Homewares; Lawn & Garden-Outdoor Living; Paint & Accessories; Plumbing & Electrical; Storage & Organization; and Tailgate-Outdoor Recreation. These core product categories will be further featured in the Show’s International Sourcing area.

“We are excited, not only by the depth of suppliers signed up for the 2011 National Hardware Show, but at the unveiling of new products across all categories,” says Rich Russo, event director, National Hardware Show. “The industry can look forward to seeing some of the most creative solutions imaginable in all segments of the industry.”

The show will devote four areas to new products, including the New Product Launch Spotlight, located right in the lobby of the Central Hall. New power tools from companies such as Skil and Ryobi, as well as new lawn and garden products, will be tested in the Handy Gardening How-To Product Test Shop.

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 Richelieu acquires two Canadian firms

MONTREAL — Richelieu Hardware Ltd. has closed two more acquisitions, bringing to nine the number of businesses acquired since the beginning of 2010.

This time, both companies are Canadian. Madico Distribution Inc. is a Quebec City-based maker of floor protection products, under the Feltac and Slidex brands. This acquisition represents additional annual sales of about $5 million.

Richelieu has also closed the acquisition of 85% of the shares of Provincial Woodproducts Ltd. A Newfoundland distributor of hardware, finishing products, panels and hardwood floors based in St. John’s, it has annual sales of $10 million. This acquisition reinforces Richelieu’s presence in Newfoundland and gives the company coverage of the entire Canadian market.

Richelieu now has 36 distribution centres in Canada, 23 in the U.S., and two manufacturing plants in Canada.

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March 14, 2011, Volume xvii, #11

“Never put off until tomorrow what you can do the day after tomorrow.” —Samuel Langhorne Clemens, aka Mark Twain
(American author and humourist, 1835-1910)

IRLY sells distribution business to TIM-BR MARTS

CALGARY — TIM-BR MARTS Ltd. has taken another important step in establishing a truly national hardware distribution network, through its Chalifour Hardware division.

The latest move is the acquisition of the distribution facilities of IRLY Distributors by TIM-BR MARTS. IRLY, a regional buying group based in Surrey, B.C., IRLY has just 46 members. But it also has its own hardware and building materials distribution, making it a unique model for Canada. (TIM-BR MARTS aside, the only other buying group with its own dedicated distribution is BMR in Quebec.)

The purchase includes the lumber, building materials and hardware inventory assets of IRLY and its members.

“This acquisition gives TIM-BR MARTS Ltd. a powerful coast-to-coast distribution network,” says Tim Urquhart, president and CEO. He says there was a gap in Chalifour’s distribution network, which is being filled by the IRLY deal. “This arrangement addresses that need.”

The merger solidifies an existing agreement between the two groups, whereby IRLY and its dealers were already members of TIM-BR MARTS and already share in the purchasing strength and programs of the giant group. The existing agreement included IRLY supplying hardware to TIM-BR MART dealers in the west through its own IRLY distribution centre; this merger brings the IRLY distribution business directly into Chalifour Canada.

IRLY had already begun promoting its wholesale business aggressively to dealers outside of British Columbia, touting its logistics capabilities at the WRLA’s Prairie Showcase back in January. At the time, IRLY said it was working to complement the distribution provided by Chalifour in Central and Eastern Canada.

The addition of the Surrey DC will also give the group access to its ever-growing import programs, with container loads coming directly from China. “I t will allow our import program to grow, since we can land goods and ship to our dealers and customers quickly and efficiently,” Urquhart says.

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 Lumber Liquidators opens first stores in Canada

TORONTO — yet another American retailer has entered Canada, this time without the fanfare of the likes of Lowe’s and Target.

Instead, Lumber Liquidators has quietly opened two stores in the Toronto area – at 470 Norfinch Dr. and 1400 O’Connor Dr. A third store will open March 18 on Steeles Ave. at Tomken Rd.

Overseeing the Canadian expansion is Tyler Greenan, the company’s vp store operations and its fifth longest-serving employee.

While so many other retailers are hurting in the U.S., Lumber Liquidators is in a solid growth mode. Specializing in hardwood, laminate and specialty flooring, it has more than 200 stores in the U.S. It intends to open 40-50 more stores this year, with 35-40 of them in the U.S. and the remainder in Canada – its first international market. While we’ve yet to confirm other locations, insiders suggest that at least some of them will be within the Golden Horseshoe that stretches from Niagara to Kitchener-Waterloo and to Oshawa west of Toronto.

Up to a dozen outlets may be slated then, for this year. With net sales in 2010 of $620.3 million – up 14% from the previous year – and profits which were down 2% to $26.3 million, it anticipates net sales in 2011 to exceed $700 million.

Lumber Liquidators was founded in 1994 when Tom Sullivan, now chairman, began selling surplus building materials at heavily discounted prices. Two years later the company identified an opportunity to sell hardwood flooring at “liquidator” prices. Lumber Liquidators began working directly with vendors and mills to provide customers with flooring assortments at everyday low prices.

Lumber Liquidators claims to be the largest specialty retailer of hardwood flooring in the U.S.

 (Lumber Liquidators is just the latest U.S. retailer to come north. Click here to see the latest HARDLINES TV segment featuring our take on this important trend.)

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Home Depot Canada leadership turned over to an American

TORONTO — Barely a month after taking over the helm of The Home Depot Canada, Aaron Carmack has left, “taking an extended leave of absence to attend to a personal illness,” says the company. He’s been replaced by Bill Lennie as president of The Home Depot Canada. (According to a release, Carmack will assume a different leadership role within the organization when he returns.)

Lennie, who was most recently senior vp of merchandising, international and sourcing, was already providing operational and strategic direction to Canada. He was also the guy who was put in place to take over the Asia portfolio when Annette Verschuren exited that role back in May 2010.

At the time, Tiziana Baccega, manager, public relations and external affairs for Home Depot Canada, told HARDLINES that “Annette’s involvement with The Home Depot Asia began in 2007, with the mandate to get the company’s Chinese business up-and-running. With that goal accomplished, the next step in the evolution of the Chinese business involves transferring day-to-day responsibilities to Bill Lennie, The Home Depot’s senior vice-president of merchandising, international and sourcing.” As head of the company’s international sourcing operation, Lennie was already making regular visits to China.

His career at The Home Depot began in 1992, when he joined as a merchant for millwork and building materials. In 2002, he was promoted to senior vice-president of décor. He left the company in 2006, spending time at Dick’s Sporting Goods as senior vice-president of merchandising, hardlines, before returning to Home Depot in 2009.

(What does Bill Lennie’s appointment mean to Home Depot in Canada? Click here to see the latest HARDLINES TV segment featuring our take on this management change.)

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 Winter keeps McDiarmid focused on retrofits, training

WINNIPEG — The cold winter pervading Western Canada has many dealers waiting out the weather before business picks up in a meaningful way – and McDiarmid Lumber is no exception. “We’re looking at gaining solid traction heading into the spring,” says Michael Ryz, vice-president operations for the 15-store chain.

While not sitting back (business remains steady despite the cold winter – and the giant dealer is actively knocking on doors to generate business), it is using the slow season to focus on retrofitting existing stores and renewing its staff training initiatives.

“We’re half-way through one retrofit right now. Then, in the fall, we’ll have two more to do, which we expect to be completed by Christmas or early January.”

On the training side, McDiarmid is a member of the North American Retail Hardware Association Canada. Ryz says there’ll be a push on NRHA training for employees before the spring arrives.

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