October 4 , 2010, Volume xvi, #38

“I believe in the discipline of silence and could talk for hours about it.” —George Bernard Shaw (Irish playwright, (1856–1950)

RONA to Acquire TruServ Canada

  BOUCHERVILLE, Que. & WINNIPEG — RONA will buy  up TruServ Canada Inc., the Winnipeg-based dealer-owned distributor. Under the terms of the  deal, Canada’s largest home improvement retailer will acquire TruServ share s,  adding two warehousing and distribution centres to RONA’s supply chain.

TruServ has 650 member dealers across Canada, though most of them are based in the West. They include 250 stores under the True Value, V&S, Country Depot and other specialized banners, plus 400 non-bannered stores.

With total retail sales of $600 million, TruServ generates distribution sales of more than $100 million. The company will continue to operate on its own, under the leadership of TruServ CEO Bill Morrison. And its home improvement members will continue as True Value dealers.

Some of those dealers will certainly have the option of joining RONA, says Robert Dutton, president and CEO of RONA inc. But this acquisition was less about getting more dealers, he says, than about strengthening RONA’s distribution business. TruServ’s distribution network consist of a 400,000-sq.ft. full-line DC in Winnipeg and a 250,000-sq.ft. facility in Kitchener, Ont., that supplies mainly Ontario dealers.

“I really saw during the recession how a lot of our business is cyclical, relying on housing starts. To be less cyclical, we have to strengthen two parts of our business — distribution and commercial.”

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Recruitment increases at Home Hardware

ST. JACOBS, Ont. — With nearly two dozen new dealers added to its ranks already this year, Home Hardware Stores Ltd. is having a banner year for, well, its banner.

Speaking at the recent Home Hardware dealer market here, Dunc Wilson, who heads up Home’s dealer development team, says Home has signed 23 new members since the beginning of 2010, with another 11 currently in the works.

His team was busy at the market, as well. Wilson says 18 “prospects” were in attendance, and there are a number of prospects who didn’t want to come for fear that the news of their presence would get back to their own group’s head offices.

Wilson is confident that at least 11 prospects in attendance will turn into new members. Before the end of the year, he expects to sign up another six dealers, for a total of 38 this year – “at least as many as we signed in 2009.”

With so much flux in the industry, especially in the aftermath of the downturn in 2008-2009, the buying groups and retail banners are all vying for new members. What’s the appeal of the red jackets at Home Hardware? “It’s easy to sell when you’ve got a good program,” says Wilson.

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Richelieu grows with latest acquisition

    MONTREAL — Richelieu Hardware Ltd. has closed yet another acquisition, this time to buy the assets of E. Kinast Distributors Inc., a Chicago-area distributor of hardware, laminates, finishing and related products.

This acquisition, Richelieu’s fifth this year, establishes the cabinet and builders’ hardware company’s presence in the Greater Chicago Area, while adding 22 distribution centres to its U.S. network, as well as $10 million in annual sales. It follows the purchase in July of Gordon Industrial Materials, a Canadian distributor, and New Jersey-based New Century Distributors in August.

According to Richelieu’s president and CEO, Richard Lord, the range of acquisitions – some seven companies over the past two years – all relate to the company’s core strength in specialty hardware. Complementary products, such as are made by EKD, are still targeted to a customer base of kitchen cabinet makers and the residential and commercial woodworking industry. Fully 80% of Richelieu’s sales are to this market, says Lord, with 75,000 SKUs available.

Richelieu is also growing its retail business in the U.S., with listings in Menards and, on a limited test basis, in some Lowe’s stores. However, our priority is to sell to Canadian retailers,” he notes, adding that the company has 5,600 retail customers in Canada alone, including smaller independents and large big boxes.

Richelieu’s acquisitions tend to be smaller companies, but together they now comprise the largest company of its type in North America, claims Lord. He expects at least two more deals to close before year’s end, as well – one in Canada and one in the U.S.

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Marwood stays focused on timber products

FREDERICTON — Marwood continues its efforts to develop new products for the LBM market. That, plus a redesigned shed program that’s been introduced in Lowe’s stores in Ontario. Its latest is the recent launch of its BluWood products in Atlantic Canada.

BluWood is a factory applied, two-part wood coating system designed to resist moisture absorption, mould fungus, rot fungi and wood ingesting insects such as termites.

According to Dave Harris, Vice-President of sales and marketing for Marwood, all these products reflect the company’s focus on timber materials. “We have resisted the urge to branch off into plastics and composites,” he says. “We’ve stayed true to our core business. Marwood’s mandate is to find new ways to create more products from each tree that’s harvested.

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Big brands sign up for 2011 Totally Shows

BIRMINGHAM, U.K. — The Totally Shows trade show for tools and hardware will be held in Birmingham for the second year running, in conjunction with Spring Fair International, a move that is attracting a number of major vendors. Top brands such as Crown Paints, Henkel, Yale Security Products, Plasti-kote and Arrow Fastener have all taken space at the show to support its second year here.

According to Brintex, the show organizer, the relocation from London’s Earls Court in 2010 managed to boost visitor attendance nearly fourfold. Some 9,372 visitors spent time in the 2010 Totally Shows, from just over 2,500 in 2009.

To date, exhibitor space for next year’s show, which will be held Feb. 6-8, is 65% sold.  Companies returning this time include Bulk Hardware, Chain Products, Eurolink Hardware, General Paints, Gorilla Glue, Olympia Tools, Sealey Power Products and Wagner Spraytech. For more info, contact: James Murray Exhibition Director, 020 7973 4606 or click here.

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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

Only 24 more days until the Hardlines Conference!

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September 27, 2010, Volume xvi, #37

“Ours is a world where people don’t know what they want
and are willing to go through hell to get it.”
—Don Marquis (American humourist, journalist and author, 1878-1937)

TIM-BR MART and IRLY plan expanded hardlines distribution

SURREY, B.C. — TIM-BR MARTS Ltd., along with its sister buying group IRLY Distributors, has plans to increase its own hardware distribution network, using IRLY’s own distribution centre here.

The latest “import show” held by TIM-BR MARTS Ltd. earlier this month reflects the group’s growing involvement in hardlines sourcing. On Sept. 9, at the office and distribution centre of its sister buying group, IRLY Distributors Ltd., TIM-BR MART, in conjunction with IRLY, held the last of five such shows (as reported in last week’s incredible issue! —Editor), aimed at introducing new ranges of hardlines products to the groups’ dealer members.

TIM-BR MART had invited IRLY to attend China’s largest buying show, the Canton Fair, last April, and buying teams from both groups headed over to China. A container load of samples was subsequently shipped back to Halifax for the first of the shows.

Products sourced through this event will be brought into IRLY’s warehouse here in Surrey to serve Western dealers, while CanWel, Hardware Division’s facilities in London, Ont., and Victoriaville, Que., will supply product to members in Central and Atlantic Canada. They will include tools, patio furniture, shelving and storage, and garden supplies.

Most significantly, the latest move indicates a growth of IRLY’s distribution beyond its own market in British Columbia. According to Catherine Brownlow, spokesperson for IRLY, the group is planning to begin shipping into Alberta as a way to expand distribution to fellow TIM-BR MART dealers there. IRLY is expected, under this new arrangement, to eventually supply dealers as far east as Saskatchewan.

The group’s Surrey distribution centre is expected to add to its assortments as its geographic reach broadens.

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Calgary opening is Lowe’s first in Western Canada

    TORONTO — Lowe’s Canada’s first store opening of 2010 – and its first store outside of Ontario – took place last week in Rocky View, a suburb on the north side of Calgary.

Located in CrossIron Common at 261199 Crossiron Blvd., the store comprises 103,000-sq.ft. of retail selling space plus a 31,600-sq.ft. garden centre. Featuring more than 40,000 SKUs, the store represents an investment of $20 million in the community and will reportedly provide more than 160 new retail positions.

“Today marks the beginning of Lowe’s expansion into Western Canada,” says Alan Huggins, president, Lowe’s Canada. “With our new CrossIron store, Lowe’s is bringing outstanding products, services and customer service, in addition to significant economic and community investment to the Calgary area.”

Lowe’s last openings were in Ottawa and Sudbury, Ont., in December 2009. The company has developed a pattern in Canada of opening usually in either the fall or winter, usually before its year end of Jan. 31. The next openings are expected to be back in Ontario, beginning with London.

With 17 stores now, and more than 2,800 employees, Lowe’s Canada plans to open up to 100 stores in this country over the next six years.

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Succession planning key to RONA’s recruitment strategy

TORONTO — “Seventy percent of independents in Canada don’t have a succession plan.” That single comment from RONA SVP Jean-Luc Meunier at last week’s Executive Breakfast effectively underlines the direction of RONA’s strategy to support dealer recruitment.

Meunier, who heads up Affiliate Dealer-Owner Network Development for Canada’s largest home improvement retailer, told a roomful of retailers and vendors, “We need to support our dealers when they come to succession.” Young dealers taking over the family business face tremendous pressures, he says. Not only must they keep the business going, but they must pay back the previous generation.

Just 40% of companies continue into the second generation, he said, and that shrinks to 10% by the third generation. One company that has successfully made it to the third generation is Moffatt & Powell, a London, Ont.-based independent chain that recently joined RONA as an affiliate member. David Powell, along with his daughter Nancy Quinn Powell and her husband D’Arcy Quinn, were on hand to offer their testimonial for RONA’s support for independents.

RONA’s program to support dealers into the next generation consists of a funding piece, financed by a $100 million fund created by investment from five banks and from RONA itself. That fund supports activities in human resources, real estate, and a legal framework all aimed at helping young dealers get off on the right foot.

Four projects have already been completed under RONA’s succession program; 15 files are currently under consideration, while four requests for more information are also being reviewed.

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Advertising ramps up at Home Hardware Market

ST. JACOBS, Ont. — Home Hardware actually increased ad spending during last year’s recession. The result was more bang for its buck, as ad buys were better with media willing to make deals. More importantly, the company’s message had less clutter to combat as other companies pulled back their ad spending.

According to Jack Baillie, director of advertising for Home Hardware Stores Limited, the company is continuing to reinforce its message of “Home owners helping homeowners.” A new TV ad, being launched today, puts new emphasis on Home’s building materials offerings. While hardware, tools and home gadgets often figured prominently in its ads in the past, this new spot shows views of dealers’ lumberyards and the claim (perhaps a bit over-zealous) that “We are Canada’s largest lumber and building materials retailer.” It ends with a special offer on Owens Corning insulation.

Another highlight of Baillie’s initiatives for the coming year is a deal with its loyalty plan partner, Aeroplan, which gives users the option to redeem points for a Home gift card as well as for travel.

Baillie says his department is increasing its range of promotional and optional flyers. “As we grow, the millions [of flyers] increases, so more stores, more flyers.” The flyer programs work well in conjunction with Home’s online presence, says Baillie. “We don’t offer e-commerce yet; certainly that will happen in the years ahead. But customers are educating themselves before coming into the stores.”

(For an interview with Jack at the recent Home Hardware Market, click here. —Editor)

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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!

September 20, 2010, Volume xvi, #36

“Anybody who goes to see a psychiatrist ought to have his head examined.” —Samuel Goldwyn (American film producer, 1879-1974)

Industry forecast to rebound in 2010-11

SPECIAL REPORT — Following two successive years of overall sales declines, the retail home improvement industry is forecast to come out of its slump in 2010, a trend that will continue into 2011.

These forecasts are among the data presented in the latest HARDLINES Retail Home Improvement Report, which has just been released by the vast research team at the HARDLINES World Headquarters.

One of the most important findings in the study is the trend downward of the industry that actually began in 2007, when industry growth began to slow year-over-year. By 2008 it had actually shrunk – for the first time since HARDLINES began tracking this industry 15 years ago. Last year, that decline continued, as the retail home improvement market in Canada was valued at $39.12 billion, a 2.9% drop from the previous year.

“The retail home improvement industry shrank by almost 5.5% over the past two years,” says Michael McLarney, Editor of HARDLINES, who also spearheaded the research.

Each retail sector fared differently, with traditional hardware stores being hardest hit, followed by building centres. The good news, according the latest Retail Home Improvement Report, is that 2010 will mark the beginning of a modest recovery for the industry, with independent dealers leading the way.

The annual Report has become an important resource for retailers and vendors in the industry as they prepare for the year ahead. “The home improvement industry has certainly experienced some ups and downs during the past two years,” says Paul Straus, President and CEO of Home Hardware Stores Limited, which represents almost 1,100 independent retailers across Canada. “But the HARDLINES forecasts, based on the performance of our independent dealers across Canada, indicate that we are in for a solid but gradual recovery in 2010 and 2011.”

(The Retail Home Improvement Report features detailed analysis of the growth of the industry, plus the market shares of each retail format and province – plus growth strategies of Home Depot, RONA, Home Hardware and Canadian Tire. In handy PowerPoint format, if features 150 PPT slides to help you do your planning for the coming year! Click here or call us for more info: 416-489-3396. —Michael)

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TIM-BR MART and IRLY co-host import show

  SURREY, B.C. — TIM-BR MART and IRLY dealers joined forces earlier this month to be part of the last of five TIM-BR MART import shows. That final show hosted nearly 100 representatives from these groups, who shopped under the 5,400-square-foot tent that was erected right in the parking lot of IRLY’s head office and distribution centre here.

The shows featured samples from a container load of samples sourced by TIM-BR MART and IRLY buyers at the latest Canton Fair, China’s giant buying show. The buying teams traveled to China together to source import product for their dealers to offer better pricing and selection for their customers. The container of their selections was shipped to Halifax, for the first of the five shows. The others were held in Barrie, Ont., Winnipeg and Edmonton before coming to Surrey.

The show enabled the IRLY and TIM-BR MART dealers to examine the products IRLY and TIM-BR MART will import for the upcoming season. Orders are still coming in; however Brad Olsen, IRLY’s director of purchasing, says he’s pleased with the results so far. “We continue to compile the results. The purchases are very promising.”

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Home Hardware Market features innovation and solidarity

ST. JACOBS, Ont. — The latest market for Home Hardware dealers was abuzz with new products, services and programs.

The focal point of the event was a rallying cry from Home’s original brand leader Morris Saffer, President of Saffer Group Inc. and author of the slogan, “Home of the Handyman.” Saffer spoke on day two of the market about “the power of the Home brand,” stressing that all that the brand represents in ads and on flyers must be delivered further right in the store by the dealers themselves.

As independents, the entrepreneurial spirit of Home dealers is one of their great strengths. But, warned Saffer, “Your greatest strength is also your greatest weakness. As independents, you don’t like to be told what to do,” he pointed out, but added that consistency within each store is what delivers on the promise of the Home brand. “The brand doesn’t exist unless it exists in your store.”

Home’s Beauti-Tone paint division had two lines to promote at the show. The previously announced Simon Chang Designer Collection, featuring acolour card selected by the designer himself, got an official kick-off, complete with a fashion show. The second range, introduced at the market, was a kids-oriented selection of colours licensed by Sesame Street. “These are brilliant, bright colours designed specifically for children’s rooms,” says Doug Parsons, Sales and Marketing Manager for Beauti-Tone Paint and Home Products.

Celebrities were also on hand: four-time Olympic medalist Hayley Wickenheiser, of the Canadian women’s hockey team, gave a presentation on the last day, and Olympic gold medal pairs skaters Tessa Virtue and Scott Moir (shown here with Bruce Burnham, President of Programmed Insurance Brokers) were on the show floor signing autographs.

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Canadian Tire retools for growth

TORONTO — Canadian Tire Corp. has announced a major realignment of its senior team and operations. It’s all part of Canadian Tire’s growth strategy to focus on top-line growth, improve customer experience and reduce redundant costs between five inter-related businesses by making them operate as “one company, serving one customer.”

And it follows the latest shake-up at the company, involving the imminent departure of Michael Medline, President of automotive. He’s leaving at the end of October.

Mike Arnett has been promoted to Executive Vice President of Canadian Tire Corp. He remains President of Canadian Tire Retail. His expanded responsibilities include strategic marketing, including the roll-out of new loyalty programs, and brand stewardship. He will also oversee merchandise sourcing and procurement capabilities.

Glenn Butt has been promoted to Executive Vice President, Customer Experience and Automotive. He’s now responsible for the in-store customer experience and store operations at Canadian Tire, leading the automotive business and overseeing the company’s relationship with its 482 dealers across the country.

Pat Sinnott, Executive Vice President, Supply Chain and Technology, is responsible for Canadian Tire’s technology and supply chain, which includes both Canadian Tire Retail and Mark’s.

The latest changes include the departure of some senior managers from the company, including Huw Thomas, EVP Financial Strategy and Performance, and Stan Pasternak, SVP and Treasurer. Their duties will transition to Marco Marrone, EVP Finance and CFO. These departures will result in a one-time pre-tax charge of approximately $15 million in the third quarter.

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Home Depot donates $1 million to environmental centre

TORONTO — The Home Depot Canada, through its Home Depot Foundation, has committed one million dollars over the next five years to Evergreen Brick Works. This includes the community centre’s year-round environmentally-focused activities, workshops and programs. The commitment will include the volunteer services of Toronto-area Home Depot associates on behalf of the community environmental centre.

Evergreen is restoring Toronto’s derelict Don Valley Brick Works, revitalizing and reusing historic buildings and offering programming focusing on education, heritage and ecological sustainability. It’s a very cool space right in Toronto’s ravine system.

In recognition of Home Depot’s contribution, Evergreen has designated a 2,100-square-foot area as The Home Depot Outdoor Workshop, which will support children’s and family programming. Home Depot will provide associate expertise in DIY workshops beginning next month.

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15 Year Profile: Greg Dinsdale

Who we’ve met at the HARDLINES Conference

As we approach the 15th Annual HARDLINES Conference on Oct. 28 & 29, we will spotlight people who have been attending the Conference over many years. Our thanks go out to all of them – and all of you – for your unflagging support! —Michael

Greg Dinsdale President and CEO, LBMX Inc.

Where were you 15 years ago?   VP Sales and Marketing at Dimensions Retail Systems.

Where are you now? President and CEO of LBMX Inc.

How has HARDLINES been helpful to you and/or your business? HARDLINES has been an integral part of keeping me – and LBMX – current with industry news and trends. This has been very important in helping position LBMX to anticipate and meet the needs of our hardware and building material customers.

Do you have any memories you want to share about 15 years with Hardlines?  The HARDLINES organization has been instrumental in bringing together the most important decision makers in the industry and using these forums to foster a meaningful exchange of ideas. My specific memory is in continually recognizing the respect Michael, Bev and the HARDLINES team have earned though 15 years of hard work and service to the industry.

I also remember a particularly good night in Chicago at a National Hardware Show some years ago – but that story should wait for a 30-year anniversary publication! (’Nuff said!—Editor }

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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!

September 13, 2010, Volume xvi, #35

“Happiest are those who give most happiness to others.”
— Denis Diderot (French philosopher and writer, 1713-1784)

Home Hardware measures up mid-year

 ST. JACOBS, Ont. — As its latest dealer market gets under way here, Home Hardware Stores Ltd. has so far had a positive year. That, according to President and CEO Paul Straus, who catches up with Hardlines to give a recap of the dealer-owned company’s achievements year-to-date.

“We are very proud of Home’s performance in 2009 which positioned us well for 2010,” says Straus. He notes that, by mid-year, total sales were up double-digits and same store-sales had increased 6.4%, with the biggest gains coming from an increase in LBM sales. “In the face of a global recession, Home Hardware achieved impressive results, strong returns and unparalleled new store growth across Canada.”

That growth includes the addition of 24 new stores to its network, for a total of 55 new stores since 2009. In addition, the company’s Beauti-Tone Paint and Home Products division has had a 25% increase in sales so far this year, with the paint plant working double shifts to keep up with demand.

Reflecting a general sentiment we’re finding across the industry, Straus admits that shipments in July dropped across Canada compared with previous months, “which we attribute to weather, economic conditions, and the introduction of HST in Ontario and British Columbia. It was evident that consumers in those provinces were working hard to complete projects prior to July to avoid HST.”

He also says media coverage of the economic turmoil in Greece, Portugal and Ireland caused consumers to tighten their belts.

“The theme of this year’s Fall Market is ‘Building Tomorrow Today,’ a theme that reinforces our commitment to build the foundation today for tomorrow’s future successes,” he adds. “We know we must have the programs, services and staff in place now to ensure our future success tomorrow.”

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TORBSA announces new President and board

  BOLTON, Ont. — The TORBSA Group has announced its new executive and board of directors for the coming year. The building materials buying group has drawn from its membership of 49 stores in Central Canada to make the appointments.

Michael Bernardi of Bernardi Building Supply Ltd. in Weston, Ont., has been elected as the President of TORBSA Limited for the year 2010. He replaces Dante DiGiovanni of Blair Building Materials Inc., Maple, Ont., who will continue on the board as Past President.

Bob Holmes continues in his role as General Manager of the group, which had sales by its member dealers of $342 million in 2009 (according to the latest Who’s Who Report – available here now! — your ever-modest Editor).

The 2010 Board of Directors, all from Ontario, now consists of: (from l-r) Jim Holmes of Builders’ Supplies Ltd., Mississauga, Vice President; Doug Portiss of Sarnia Drywall Supply Ltd., Sarnia, Vice President Operations; Blake Oldershaw of Oldershaw Building Supply Co. Ltd., Chatham, Treasurer; President Michael Bernardi;, Past President Dante GiGiovanni; and Secretary Len Hewson of Hewson Brothers Supply Ltd., Brantford.

Bob Holmes continues in his role as General Manager of the group, which had sales by its member dealers of $342 million in 2009 (according to the latest Who’s Who Report – available here now! — your ever-modest Editor).

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McMunn and Yates DC supports added expansion

DAUPHIN, Man. — Last month McMunn and Yates, the independent building centre dealer based here, opened its 12th store. That kind of expansion has been aided, says Jason Yates, Vice-President of the company, by the addition earlier this year of a dedicated distribution centre of its own.

The facility, which now serves all 12 McMunn and Yates stores in Western Canada, including the latest, in the Northern Manitoba community of Flin Flon, has given the company the ability to bring in direct shipments of product. “That is helping McMunn and Yates expands its retail,” says Yates.

The latest store, at 3,000 square feet of retail, plus a yard, is at least half the size of the chain’s existing stores. But, says Yates, it’s well suited for the smaller community of Flin Flon.

“We can now service a wider area. The DC made this acquisition possible,” he adds.

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Home Depot builds on 2Q operational improvements

ATLANTA — Home Depot turned in relatively strong results for its second quarter and continues to make advances on a number of other fronts.

The world’s largest home improvement retailer opened its 14th and 15th Rapid Deployment Centres (RDCs) during the quarter, which has helped inventory management. “For the third quarter in a row, our inventory turns have improved. This is something we hadn’t achieved in almost a decade,” said Frank Blake, Home Depot President and CEO.

Blake also credited Craig Menear, EVP of Merchandising, with the effective implementation of new merchandising tools. “The benefits of this are most clearly seen in our reduced markdowns for seasonal categories like patio and barbecue grills,” said Blake, “where better visibility into, and planning for, seasonal inventory has significantly reduced the markdowns necessary to effectively exit those categories.

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Sears opens first stand-alone Craftsman store

CHICAGO — Sears has opened a store in this city’s trendy River North district to establish its first-ever Craftsman store. Called “Craftsman Experience,” this downtown Chicago venue aims to put one of America’s best known tool brands right in the hands of the customers, complete with hands-on project stations, live demos and clinics. The clinics comprise three project stations highlighting woodworking tools, automotive and mechanics tools, and lawn and garden products.

“This is the latest in a series of strategic moves by each of our brands – Craftsman, DieHard and Kenmore – to get closer to our customers,” said Guenther Trieb, President of the Craftsman brand at Sears Holdings. “The ‘Experience’ expands access to Craftsman for existing and new, younger customers.”

The launch was supported by viral videos showing the Craftsman and DieHard tools being put to gruelling tests of endurance.

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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!

September 6, 2010, Volume xvi, #34

“I drank summer like a sweet wine.”
— Louis Aragon (French poet, novelist and editor, 1897-1982)

HARDLINES is back to our regular weekly schedule of publication. But man, were we busy during the off weeks. We’ve just completed our Annual Retail Report on the industry – 150 PowerPoint slides with everything you need to plan for the coming year! I’m exhausted, but it’s worth it! —Michael

Orgill Show hosts record number of Canadians

 CHICAGO — Thousands of retailers attended Orgill’s Fall Dealer Market in Chicago last month, including a record number of Canadian dealers. And while many of the delegates were long-time customers of the giant independent hardware wholesaler, many of the Canucks were checking out Orgill for the first time, to see if its wide assortments – and especially its pricing – would suit independent dealers north of the border.

“I’m really happy,” said Ron Beal, Orgill’s president and CEO. “We have a really large contingent of Canadians. This is our biggest group ever.” He noted that 95% of Orgill’s Worldwide Sourcing lines – products sourced directly from key vendors – now have trilingual packaging.

More than three dozen dealers came from Canada, representing buying groups such as TORBSA, PAL, TIM-BR MARTS and Castle. In fact, so many Castle members were on hand – 25 in total – that they even had their own information desk, manned here by James Jones, Castle’s Vice-President National Marketing (left) and Bruce Holman, Business Development Manager for Canada’s central region

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Jones said there were lots of good reasons for his members to be there. “Orgill provides a competitive edge to independents against Home Depot and Lowe’s.”

  Those dealers came to see more than 1,000 vendors in 600,000 square feet at McCormick Place South Convention Center. Many of the products were represented in a new 28,000-square-foot farm and hardware model store. Named “Delta Farm & Hardware,” it featured assortments, services and signage that showcased Orgill’s commitment to serving the farm and hardware retail marketplace.

Orgill also reprised its presentation for pro dealers with a store-set focused on products that will sell to contractors through lumberyards.

“In almost every way, this show provided something new and inspiring to our customers,” said Beal. “The positive feedback from our attendees provides the motivation for our entire team to continue to think of new and innovative solutions and assortments that will help make our customers success retailers in their marketplaces.”

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Home Hardware beefs up its logistics system

  ST. JACOBS, Ont. — As it approaches its latest Dealer Market next week, Home Hardware Stores Ltd. has already had what company President and CEO Paul Straus calls “a very productive year.” Improvements and new developments company-wide include enhanced logistics systems.

“We are pleased to report that we are moving forward with a Logistics Management System (LMS). The LMS will help ensure we are meeting the needs of dealers and customers, operating efficiently and maximizing our resources,” he says.

Straus adds that the new system will include a number of important features. “These features will maximize warehouse space, reduce the number of hands that need to touch a product, move the product efficiently through our distribution system, connect with carriers in a timely fashion through an internet based management system and provide advanced shipping notices to predict reliable arrival times for merchandise,” he says.

“The first half of 2010 has been busy at Home Hardware, and it shows no signs of slowing down as we approach our Fall Market.”

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Former Weiser exec to steer Dusko’s relaunch
of Stanley Doors

MONTREAL — Bill Kushlick, a former GE, Stanley and Weiser executive, has joined forces with Dusco Doors Ltd. as President, Business Development for that company’s new Stanley Doors initiative.

Kushlick, most recently the President and COO of Taiga Building Products, will drive new business and develop programs to increase brand awareness of the new line of Stanley Doors products throughout North America.

Stanley recently granted Dusco Doors the exclusive license to manufacture and market Stanley Doors in North America.

The new product line will be sold under the Stanley Doors brand and include insulated entry door systems and patio doors. It is targeted to launch in the fall of 2010 through home improvement dealers, mass merchandisers, wholesale chains and industrial distributors in both Canada and the United States.

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RONA expands its affiliate dealer-owner network

BOUCHERVILLE, Que. — RONA has been actively growing its affiliate dealer-owner network since the beginning of the year. These new dealers generate more than $45 million in annual retail sales and have added 65,000 square feet of retail space to the RONA network. Furthermore, 45 development projects have been undertaken by the existing affiliates, for a total of $23 million invested in the network, including new stores and expansions representing close to 94,000 square feet of retail space.

Besides the recruitment of Moffatt & Powell, a key independent in Southwestern Ontario, five other dealers have joined RONA this year. In Ontario, Boyer Fence & Deck (Kitchener), Colony Ratcliff (Gormley), Davies Hardware (Grand Bend) and Murdoch (Durham) are now flying the RONA banner. In British Columbia, former RONA employee Al Tsuchiya and his business partner Gary Kandborg are opening a store in Port Coquitlam.

Besides recruiting dealers, RONA continues to build stores of its own. These include new proximity stores in Saskatoon and St. John’s, and an expansion of a store in St-Luc, Que. that will become a big box.

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Ideal acquires SK Hand Tools

SYCAMORE, Ill. — Ideal Industries Inc. has acquired certain assets of SK Hand Tools Corporation, a U.S. manufacturers of tools for the professional mechanic. Although SK filed for bankruptcy protection on June 29, Ideal says it has assumed no liabilities with this transaction.

Founded in 1921, Chicago-based SK Hand Tools is popular among mechanics, especially in the automotive and industrial maintenance markets. Ideal intends to sell SK Hand Tools’ portfolio of nearly 4,000 tools under the SK brand within the United States and internationally.

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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!

August 23, 2010, Volume xvi, #33

“A successful life is one that is lived through understanding and
pursuing one’s own path, not chasing after the dreams of others.”
— Chin-Ning Chu (Chinese American business consultant, 1947-2009)

  Summer Publishing Schedule:

HARDLINES will NOT be published Aug. 30. We will be back to our regular weekly schedule on Sept. 6. So hang in with us for one more HARDLINES-free week after this, and remember that the World Headquarters remains open as we get ready for Amazing 15th Anniversary HARDLINES Conference on Oct. 28 & 29. —Michael

TIM-BR MARTS confirms dates for own show

CALGARY — TIM-BR MARTS Ltd. has confirmed that it will host its own buying show. Called the TIM-BR MART National Buying Show, it will be held at the Toronto Congress Centre March 31-April 2, 2011.

TIM-BR MARTS has created the show to provide the national buying group’s member dealers with a central venue for more than 250 preferred LBM and hardlines vendors. The event is also intended to provide a forum for networking and information exchange amongst industry colleagues.

The event will kick off with an opening evening “meet and greet,” followed by two days of buying activity. More than 350 TIM-BR MART dealers are expected to attend from across Canada.

“For three days, our dealers and vendors will see the power of Canada’s leading buying group for independents in action,” says Steve Stremecki, VP Retail Services at TIM-BR MARTS Ltd.”

 The show comes as a result of continued growth from a group that now manages some $2 billion in purchases annually.  “Our buying power has  reached a point where we can deliver the most value to our dealers and help our vendors build their business by bringing them together in an exclusive environment,” says Randy Martin, VP Procurement at TIM-BR MARTS.

The show is being managed by London, Ont.-based KCI Management, which also handles the Lumber and Building Materials Dealers Association’s annual buying show, the Canadian Home Improvement Show. Vendor registration will begin Aug. 30, with a limited number of booths available. Dealers will be able to begin registering in October.

More information will be available at www.timbrmartbuyingshow.com; vendors can also contact KCI directly at 519-963-4476.

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Home Depot and Lowe’s enjoy increases in second quarter

  ATLANTA — The Home Depot announced second-quarter results last week, which included a 1.8% increase in sales to $19.4 billion. Same-store sales were up by 1.7%. Net earnings reached $1.2 billion, up slightly from $1.1 billion in 2Q 2009.

These results, though positive, fall short of the numbers reported by Home Depot’s biggest rival, Lowe’s Cos., which reported its second quarter a day earlier. Lowe’s had net earnings of $832 million for the quarter, a 9.6% increase from the same period a year ago. Sales for the quarter increased 3.7% to $14.4 billion.

Same-store sales for the second quarter increased 1.6% and for the first half of 2010 increased 2.0%. Performance was especially strong for Lowe’s Canadian stores, which enjoyed a 2.4% increase in same-store sales in Canadian dollars and more than 11% in U.S. dollars.

While Home Depot’s same-store sales were up for only the second consecutive quarter since 2005, the severity of the economic climate in the U.S. kept those sales to a rise of only 1.0% domestically. The 0.7% boost came from the company’s international operations in Mexico and China. However, its 179 stores in Canada turned in flat same-store sales, as the division continued to feel the impact of slowdowns in some parts of Western Canada.

In a conference call with analysts, Home Depot President and CEO Frank Blake warned against a quick turnaround, “There are reasons to be cautious across our business.” He cited a slow return of business from the pro side, coupled with a still-flagging housing market in the U.S. “All of these factors counsel caution as we enter the back half of the year.”

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RONA continues to gain ground in second quarter

BOUCHERVILLE , Que. — RONA’s second-quarter results reflect continued recovery that started in the first quarter: Total consolidated sales increased 2.1% to $1.4 billion, while same-store sales were up 0.9% (representing a 2.6% increase in corporate and franchised stores segment sales and a 0.2% increase in distribution segment sales).

The company said both corporate and franchised stores did well in the early part of the second quarter, thanks to good weather through much of the country and a lift in housing starts. Things slowed down a bit later in May and in June, due in part to less-favourable weather.

The company’s net earnings were up 11.6%, however, excluding unusual items related to the cost of store closures, they were up 2.0%.

RONA made a number of strides during the quarter: the acquisition of Pierceys in Halifax helped to consolidate RONA’s positioning in the region; a 73,000-square-foot store was opened in Saskatoon and a 35,000 square-foot store was renovated and re-opened in St. John’s; and RONA’s sponsorship of the Canadian Football League was renewed through to 2012.

In addition, six independent dealers have joined RONA since the beginning of the year. They represent more than $45 million in annual retail sales.

While lumber and plumbing/HVAC were strong sellers on both the retail and commercial side, other categories were affected by poor weather in May and June, particularly in Alberta and Quebec. Other factors dampening sales included a decline in consumer confidence, a slowing down of the housing market, and delays in imports from China. Those delays hit the seasonal and garden categories especially hard.

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Downs and Simko named to run CanWel divisions

VANCOUVER — Two key appointments at CanWel Building Materials Group Ltd. resolve one of the big question marks surrounding the largest industry takeover in Canada last year.

CanWel purchased Broadleaf Logistics from Rudy Holding, folding it into CanWel’s own building materials distribution business. Bob Simko, formerly President and CEO of Broadleaf, has been named President of the new entity, called CanWel+Broadleaf Division. With combined sales of about $1.5 billion annually, it is Canada’s largest building materials distributor.

CanWel’s building materials division was previously headed by Tom Donaldson, who left the company for personal reasons, returning to his family roots in Nova Scotia.

Simultaneous with Simko’s announcement, CanWel Chairman Amar Doman announced the promotion of Robert Downs to President of the CanWel Hardware Division. He was formerly Vice-President and General Manager.

The appointments are effective Sept. 7. Both men will report directly to Amar Doman, Chairman and CEO of the company.

Earlier this month, CanWel Building Materials Group announced its second-quarter results, the first full quarter that includes operations from the former Broadleaf Logistics. Sales topped $404 million, up from $185 million for the comparable period in 2009. In that period, gross margin climbed to $43.7 million, or 10.8% of sales, vs. $25.4 million, or 13.7% of sales in 2009.

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Seasonal sales up for Canadian Tire in second quarter

TORONTO — Canadian Tire Corp. recorded a 2.5% increase in retail sales for its second quarter to $2.86 billion, while net earnings were up 15.6% from the prior year. Adjusted net earnings were up 14.8 %.

At Canadian Tire Retail, total retail sales in the second quarter increased 1.3% and same-store sales were up 0.8%. Sales increased in gardening and backyard living, due to a strong marketing campaign during the quarter. Kitchen and household cleaning also saw year-over-year increases in sales.

During the quarter, CTR retrofitted 39 of its “Smart” stores, and expects to have 59 retrofits completed this year. Two new Smart stores were opened, as well, and the company expects to open six more this year. CTR also opened two “Small Market” stores, with one more planned by year’s end.

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Certainteed offers educations seminars

OAKVILLE , Ont. — A series of seminars is being produced by Certainteed for its pro customers, including architects, designers, builders and contractors. The series, called “Be Certain”, features information on Certainteed’s lines of roofing, insulation, drywall, ceilings, fence products and foundations.

A seminar on “Minimizing the Threat of Mould and Mildew in Wall Systems” will also be part of the program, presented by Lucas Hamilton, an authority on building science.

The seminars will be held in Calgary, Sept. 1; Oakville, Ont., Sept. 16; and Vancouver, Sept. 21. For more information, call 1-800-233-8990.

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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!

August 9, 2010, Volume xvi, #32

“These times, like all times, are very good ones,
if we but knowwhat to do with them.”
—Ralph Waldo Emerson (American philosopher,
essayist and poet, 1803-1882)

  Summer Publishing Schedule:

HARDLINES will NOT be published Aug. 16 or Aug. 30. We will publish on Aug. 23 and anytime something big comes up (like today). So make note of these dates, get an extra-large cup of coffee on Monday mornings (oh, and go ahead and get that Danish!) to make up for the off weeks, and remember that the World Headquarters remains open through it all. —Michael

McMunn & Yates opens new location

  FLIN FLON, Man. — This community in Northern Manitoba is the location for the newest outlet by McMunn & Yates Building Supplies.

The store, which opens today, is McMunn & Yates’ 12th. It’s an existing operation, bought by the Dauphin, Man.-based company in a departure from its tradition of opening stores from the ground up. At just 3,000 square feet of retail, plus a yard, “It’s not a big store by any means,” says Jason Yates, President of McMunn & Yates, “but it’s going to bring some nice volumes for us. It fits well for what we’re doing and the kinds of markets we want to be in.”

McMunn & Yates, which is a member of Independent Lumber Dealers Co-operative, has sales of about $60 million, according to our Who’s Who Directory (shameless plug!—Editor).

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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
• Results oriented sales professional with a strong record of achievement in strategic and tactical roles. 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!

August 2, 2010, Volume xvi, #31

“Anyone can cut prices, but it takes brains to produce a better article.”
—P.D. Armour (American businessman, founder
of the meat-packing company Armour and Co., 1832-1901)

  Summer Publishing Schedule:

HARDLINES will NOT be published Aug. 9, Aug. 16 or Aug. 30. We will publish on Aug. 23 and anytime something big comes up. So make note of these dates, book your shrink or golf game now to make up for the off weeks, and remember that the World Headquarters remains open through it all. —Michael

Moffatt & Powell joins RONA

 BOUCHERVILLE, Que. — RONA inc. has signed a significant independent retailer to its dealer-affiliate network. This time it’s London, Ont.-based Moffatt & Powell Limited, a strong player in the contractor market in Southwestern Ontario – and the first member of the Independent Lumber Dealers Co-Operative (ILDC) to join RONA.

Moffatt & Powell has five stores located in London, Mitchell, Strathroy, Tillsonburg and Watford, Ont. They range in size from 2,500-7,500 square feet and generate in excess of $30 million in annual retail sales.

Moffatt & Powell is co-owned by David Powell, who is in the process of turning over management to his daughter, Nancy Powell Quinn, who has recently been promoted to Vice President, and her husband, D’Arcy Quinn.

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Orgill expects more Canadians at its next market

MEMPHIS — Despite a continued slowdown in the U.S. economy independents, as in Canada, are faring better than the home improvement industry at large.

And that’s just who hardware wholesaler Orgill caters to.

“We’re experiencing double-digit growth at Orgill, which is unbelievable in this economy,” says Jerry Cardwell, Vice President Corporate Development at Orgill. Cardwell is expecting that strength to be reflected at the company’s dealer market, being held in Chicago Aug. 12-14. He adds that a number of dealers from other wholesale banners, such as Ace and True Value, are coming to see what Orgill offers.

“Our programs continue to evolve to support independents and that’s our strength,” he says. “We offer good programs, good prices and good services.”

“We expect a record number of folks from Canada this year,” says Cardwell.

That focus on the independent is what is attracting a number of Canadian dealers. Orgill has been shipping to a growing number of independents over the border in recent years, as it evaluates the Canadian market.

Last year, Canadian independents, including members of groups such as TORBSA and Castle, went down to check out the Orgill market. This year’s show will include several new product launches and a complete 30,000-square-foot farm, ranch and hardware store right on the show floor.

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Marwood educates end users with online product knowledge

FREDERICTON — As Marwood Ltd. continues expanding, it is also looking for ways to understand its customers better. According to Dave Harris, Vice President of Sales and Marketing for the family-owned building products manufacturer, whose origins date back to the 1920s, that has meant everything from fine-tuning its distribution across the country to creating a new website.

The company has its roots – and six facilities – in Atlantic Canada, selling into both retail and industrial channels. However Marwood products are sold coast to coast. “We’re fortunate to be a vendor of record for both CanWel and Broadleaf, meaning we’re in all markets across Canada,” he says, referring to the recently merged national wholesale distributors. The company even sells internationally, with customers in the U.S., the U.K. and Europe. For example, Marwood has been selling FSC-certified pressure-treated deck accessories to B&Q, Britain’s largest home improvement retailer, for the past 12 years.

But even with its supply chain firmly in place, Marwood continues to enhance its logistics and increase its marketing efforts. A new website reflects the company’s efforts to get more sophisticated – and more in touch with its dealers, while resisting the opportunity to sell direct. “It’s taken a great deal of effort over the last five years for us to better understand our dealers’ business and make the necessary changes to ensure that we remain relevant,” says Harris.

The website, with its slogan, “Build Something Beautiful,” was designed as an aid for Marwood’s dealer customers, one that provides product information for the end user that comes into their stores. “More and more, those end users want to buy based on the research done online,” Harris adds. “So the website just really supports the retailers by offering information on the products.”

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Europeans try out winter barbecuing

COLOGNE , Germany — Firing up the barbecue in the winter, long a staple of Canadian life, is an idea whose time has come in Europe, it seems.

It’s just one of the things being spotlighted at the upcoming garden and outdoor show, spoga+gafa, being held here Sept. 5-7. Other innovative sales and merchandising ideas are being featured in the show’s “boulevard of ideas,” a showcase for point-of-sale concepts presented jointly by the fair and the trading agency Kom:pakt.

Practical inspiration is presented in six themed areas presenting products for all four seasons, including firing up the grille in the winter and growing vegetables in the summer.

“The challenge is to ensure that customers begin to experience the garden lifestyle while they are still walking through the furniture store, garden centre or DIY store,” says Oliver P. Kuhrt, Executive Vice President of Koelnmesse, which owns the show. “On the Boulevard at spoga+gafa this year there will be many innovative ideas and inspirations showing how product ranges that belong together can be jointly presented.”

(For more information about the upcoming spoga+gafa trade show, click here.)

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Affluent consumers spend more on home enhancement

STEVENS, Pa. — For sales of luxuries like garden and outdoor items, linens and bedding, 2009 was a rocky year. Far fewer affluent consumers purchased items from this category, according to the latest report from Unity Marketing.

However, those who made purchases spent on average 50% more than they spent on luxuries for their home in 2008. “The contraction in the percentage of “affluents” buying home luxuries – from 52% in 2006 to 41% in 2009 – is a cause for concern for marketers,” says Pam Danziger, President of Unity Marketing and author of the report. “However, significantly higher levels of spending from affluents who did make a home luxury purchase should have a moderating effect for marketers.”

Affluent home owners invested in sprucing up their homes in 2009, helping home improvement retailers to increase their share of high-end sales of furniture, lights and floor coverings. In addition, says Danziger, “all things luxury for outdoor living got a boost in 2009. From outdoor furniture and power equipment to lighting and barbecues, luxury consumers invested more in their outdoor living spaces.“

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Papaiz of Canada sold to Addalock Inc.

WOODBRIDGE , Ont. — Papaiz of Canada has a new owner. The Brazil-based lock manufacturer, which is owned and operated by the Papaiz family, has had distribution in Canada since 1976. However, in recent years the company has been restructuring and selling off its distribution operations around the world to concentrate on manufacturing. Papaiz of Canada is the last of these operations to be sold.

But the company here remains in familiar hands. The new owner is Shai Rappaport, who managed Papaiz of Canada for 18 years before leaving in 2005. He was approached by the Papaiz group to purchase the Canadian operations and the deal was finalized in July.

Operating as Addalock Inc., the company continues at the existing Papaiz location. “My first objective is to make sure that all the existing customers are looked after and that the transition will be very smooth,” says Rappaport. (sales@addalock.com)

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15 Year Profile: Mike Trottman

Who we’ve met at the HARDLINES Conference

As we approach the 15th Annual HARDLINES Conference on Oct. 28 & 29, we will spotlight people who have been attending the Conference over many years. Our thanks goes out to all of them – and all of you – for your unflagging support! —Michael

Mike Trottman
VP Sales & Marketing – Canada, Knape & Vogt Canada Inc.

In 1995 I had just returned to Intercraft Industries, a division of Newell Industries, as Director of Sales & Marketing. It was a time when HARDLINES was also just beginning. I met Michael at one of his reception/networking opportunities. It was one of the first times I experienced the benefit of “networking”, which I have since made an important part of my life and daily routine.

Today I am the VP Sales & Marketing for Knape & Vogt Canada, a hardware company which manufacturers drawer slides, kitchen & bath accessories (Real Solutions), KV shelving & brackets, Ergo office products, storage organization systems and other hardware related items.

HARDLINES has been a part of my weekly routine for almost the full 15 years. I read each issue every Monday morning first thing to catch up on industry happenings and people moving around. HARDLINES has evolved from a gossip newsletter into a broad information vehicle supplying market information, networking opportunities, educational programs & conferences, job postings and much, much more all while having fun, which has always been one of Michael & Bev’s major components of their success.

The HARDLINES Conference always brings together some of the most interesting and important people who impact our industry. The speakers from all over the world always have stories, both successful and unsuccessful, which we can all learn from and take back to our own companies. Mixed in with all the learning, the conference offers excellent opportunities to network and get close to many of the leaders of our industries.

Many times the conference has given Michael a chance to show his musical side with his harmonica playing, which will always be a fond memory for me. Michael has always been a trend setter and his tee-shirt under his jacket changed the look of a stuffy old shirt & tie group into a casual, more comfortable business attire. We will always be thankful to him for doing that.

HARDLINES has always been a friend to anyone in the industry who wanted to communicate to all the key people with professional, focused, fact-based knowledge and information. You are the “eyes & ears of the industry”.

Early Bird Rate Registration
View the Agenda
Conference Overview
Sponsorship Information

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
• Results oriented sales professional with a strong record of achievement in strategic and tactical roles. 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!

July 26, 2010, Volume xvi, #30

“The secret of business is to know something that nobody else knows.” —Aristotle Onassis (Greek shipping tycoon, 1906-1975)

RONA’s “Imagine” program to include power tools

BOUCHERVILLE, Que. — RONA inc. continues to widen its in-store service and merchandising program to include new categories, most recently tools.

A letter received last week by its hand and power tool vendors requested they fax back their consent to abide by the program, which turns over in-store servicing of their lines to a third-party agency in partnership with RONA.

Home Depot Canada is about to roll out its own in-house Merchandising Excellence Team (MET) overseen by Joe Allen, Home Depot’s Director, Vendor Services. However, RONA has contracted an outside agency, RDTS, to manage the service on RONA’s behalf “for all Rona banners including all Rona big box stores across Canada, Réno-Dépôt, Lansing, Home Centres and Western dealers,” according to the letter to vendors, which was signed by Jean Lamarche, RONA’s director for hardware, tools and furniture.

RONA has been rolling out its Imagine program since the beginning of January 2009, when the lighting and electrical, seasonal and RONA house brands were put under RDTS’s aegis.

“The Imagine program is in line with our important initiative for more innovative merchandising to enhance our customer shopping experience,” says Julie Seidel, Director, External Communications for RONA. “It has been designed to provide a better merchandising service to our suppliers at a better cost.”

She adds that the vendors have received ongoing communication about the program and its objectives. “We expect and are expected to make proactive changes in merchandising, and have designed a program to be co-ordinated rapidly with our partners. We have full confidence in the capacity of our partners to react promptly to such an initiative.”

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Newest Castle members must meet tough financial criteria

MISSISSAUGA, Ont. — The addition of another six members to its ranks (see the July 12 issue of HARDLINES—Michael) reflects the ongoing growth strategy of Castle Building Centres Group, which seeks not only to increase the sales of its existing members, but to find new members that fit Castle’s independent mould.

But regardless of their specialty (the latest recruits include a door and window dealer and a dock supplier) or their location (according to the Hardlines Market Share Report, the buying group has members as far flung as N.W.T. and Nunavut), each dealer must meet “stringent” credit criteria, says Castle President Ken Jenkins.

“We’ve got the toughest credit criteria in the industry,” he stresses. And those rules of engagement are no less stringent for the specialty dealers that join Castle.

Jenkins says the group’s ability to offer a solution to independents, whether they are traditional LBM dealers or specialty businesses, has been generating a lot of interest in the group over the last couple of years.

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Ontario government pulls eco fees after just three weeks

TORONTO — Just three weeks after the launch of an “eco fees” program to pay for diversion of waste to the province’s landfills, the Ontario government says it will temporarily suspend the program while looking for ways to revamp it.

A major problem with the program was the July 1 launch date, which was the same day as the introduction of the HST. In addition, awareness of the program before the launch was not strong. When Canadian Tire Corp., the country’s largest hard goods retailer, announced its withdrawal from the program, the government of Ontario decided to go back to the drawing board for 90 days to give Stewardship Ontario time to “retool” the program.

The program is now being reconsidered to ensure it is rolled out properly next time around. (Click here to join the discussion on Michael’s latest Blog post!)

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Canadian dealer wins North American Award

SAVANNAH, Ga. — The focal point of the Annual Convention & All-Industry Conference of the North American Retail Hardware Association is the Young Retailer of the Year Awards. At this year’s convention, held here last week, a Canadian, Patrick Guilbert, was one of the winners in the category of stores under $2 million in sales.

Since leaving Winnipeg and returning to his home town of Neepawa to become a Home Hardware dealer in 2008, he has made strides in developing the business, starting with an expansion and facelift to the store. In fact, from day one he’s been setting himself apart – on opening day April 2, 2008, he sold an incredible 720 gallons of paint from the 8,000-square-foot location.

Sales in the paint and sundries department continued to grow – by a whopping 35% by the end of the first year – and within two years overall sales were up by $300,000.

“My philosophy has always been to empower my staff to be better sales people, but also better human beings,” Guilbert said when accepting the award.

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Dealers share ideas at NRHA annual convention

SAVANNAH, Ga. — Independent retailers from across North America gathered here last week to participate in the Annual Convention & All-Industry Conference of the North American Retail Hardware Association. They learned from industry experts, economists and each other during a series of seminars and breakouts.

One panel discussed how dealers can move forward. David Dishke, owner of Grand River Home Hardware in Caledonia, Ont., said his father told him to invest $25,000 back into the business for each $1 million you earn in sales annually. Another dictum he has learned to live by: “Finding out what the customer wants and then giving them what they want is most important.”

Another panel of award-winning dealers discussed the new sense of frugality pervading the shopping habits of today’s consumer. While this trend is more marked in the U.S., Canadians too are watching their spending as equity in their homes shrinks due to high levels of borrowing.

Sarah Rurka, one of the owners of the Home Hardware Building Centre in Lloydminster, Alta., observed that her customers are becoming more involved in gardening, adding that sales of seeds for vegetable gardens are really taking off. “That’s a big category for us.”

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GP’s latest OSB acquisition a “big one”

ATLANTA — The recent acquisition of Grant Forest Products’ OSB facilities in Canada and the U.S. was a major one for Georgia Pacific, and one that expands the forest products company’s production capacity geographically.

The Grant mills are in Allendale and Clarendon, S.C., and Englehart and Earlton, Ont. Previously, the farthest north that GP had mills was in West Virginia, says Jeff Key, Marketing Communications Manager at Georgia-Pacific Wood Products LLC. “So this acquisition is expected to open up the Canadian and Northeast [U.S.] markets.”

Will there be more acquisitions from GP? “I don’t know,” Key says. “But a big one like this doesn’t come along very often.”

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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
• Results oriented sales professional with a strong record of achievement in strategic and tactical roles. view this resumé
• Senior sales/marketing leader with experience in all classes of trade wishing new HARDLINES career. view this resumé
• Very Experienced Business Unit Manager, great passion for generating sales and building relastionships.view this resumé
• Worked through my career within the manfucaturer, wholesale and consumer goods industries. view this resumé
• Senior Sales Manager with vast experience in retail and wholesale sales growth in Canada. view this resumé

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July 19, 2010, Volume xvi, #29

“A bank is a place that will lend you money if you can prove that you don’t need it.” —Bob Hope (American comedian and actor, 1903-2003)

Eco fees should come as no surprise

TORONTO — The consolidated Municipal Hazardous and Special Waste (MHSW) Program was launched July 1, in the form of “eco fees” on a range of products, with those costs being passed down to consumers at checkout.

The program is managed by Stewardship Ontario, an industry association (not a government body and not a tax collection agency). It’s an industry agency devised to respond to the Waste Diversion Act of 2002. The agency has calculated the costs of managing the end-of-lifecycle of a range of products, divided that cost by the estimated sales for the year ahead, and tacked the cost onto each can of paint, bag of cement and battery being sold from July 1 on. The monies will be turned over to the province’s municipalities, which manage the waste recovery.

“That fee reflects the direct cost of managing waste disposal,” says Vaughn Crofford, President of the Canadian Hardware and Housewares Manufacturers Association. Until last month, when he stepped down, Crofford sat on the board of Stewardship Ontario, representing the durable goods sector. “CHHMA has been involved from day one and we’ve provided a lot of solutions for calculating the costs of packaging in the Blue Box and of waste materials.”

Yes, details of how the program would play out at retail were unclear, and yes, it was ill-advised to launch on the same day as the introduction of the HST. “It certainly caught everyone off-guard,” admits Steve Copp, President of Copp Building Materials in London, Ont., reflecting the attitude of many dealers across the country.

However, the program has been in the works for years, during which time companies like Home Hardware have been getting ready with upgrades to their systems.

Crofford, for one, is skeptical of consumer response to the program, which is being fuelled by Ontario’s opposition party. “The Tories are calling it an eco-tax – but it’s not a tax,” he points out. “It’s a true fee reflecting the cost of handling this material.” In fact, he adds, the Waste Diversion Act got passed under the provincial Tory regime, “so this is an all-party program.”

More information about this eco fee can be found at the Stewardship Ontario website.

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Home Depot suppliers adjust as MET launch looms

TORONTO — Following a round of meetings with vendors last month, Home Depot Canada is preparing to begin the rollout of its Merchandising Excellence Team (MET) into its stores beginning Sept. 7.

The program brings in house the weekly merchandising and arranging of products on the shelves in all 179 Home Depot stores in the country. Those duties have been, until now, performed by outside service companies, often attached to rep agencies.

The electrical category will be included in phase one of MET and participating vendors are getting ready for the transition. “We’re part of MET and it will take over servicing of the light bulb category,” says Kris Ovstaas, director of consumer sales for Philips Lighting. “Our agency has given notice to its team. They are already departing to look for new jobs.”

While many of them will likely find jobs at Home Depot as part of MET, the transition may result in some disruption of weekly in-store detailing duties through the rest of the summer. “However, we have contingency plans to keep the stores properly serviced,” Ovstaas says.

Not all vendors will be required to participate in MET, however. Behr Paints, which is exclusive to Home Depot in this country, will continue to use its own service team. And so will TTI, which produces the Ryobi and Ridgid brands exclusively for Home Depot.

Craig Baxter, President of TTI Canada, was not surprised by the decision to exempt his company. “We’ve been told our store service is exemplary. There’s nobody that has more passion and know-how for this category than we do.”

His company is still making some adjustments, however. TTI’s team of 35 service people will grow to 40 by the end of the month, and he’s even installed an inventory analyst on site at Home Depot’s head office. “That person is working for Home Depot but is on our payroll,” he says.

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New format for show in Atlantic Canada

DIEPPE, N.B. — Attendees at next spring’s Atlantic Building Materials Show will see some significant changes to the show’s format and timing. The latest changes are part of an ongoing process to keep the show relevant and responsive to the needs of dealers in Atlantic Canada.

“Two years ago we changed to a two-day show,” says Don Sherwood, of the Atlantic Building Materials Association, which owns and operates the show. “And we moved it to a Thursday and Friday, even though this went against the wishes of some smaller independents who would bring their staff in on a weekend.”

Now, says Sherwood, changes are being made to maximize the networking opportunities among vendors and dealers. “We’re going to focus heavily on this on the first night of the show, changing from a meet-and-greet to a cocktail hour and ‘quiet time’ right on the show floor. This will let buyers walk the show unhampered.”

The second night will switch from a gala dinner to a less formal networking reception and dinner. The show will be held Feb. 24-25, 2011, at the new casino that’s been built in Moncton.

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Canadian dealer wins Retail Innovator Award

SPECIAL REPORT — Each year, the North American Retail Hardware Association recognizes cutting-edge independent retailers with its Retail Innovators of the Year Awards. We’re proud to announce that one of this year’s winners is a Canadian member of NRHA. (NRHA in Canada is represented by HARDLINES, of course! —Michael)

Sponsored by NRHA and Vermont American Power Tool Accessories, the Retail Innovators of the Year Awards allows the NRHA to single out retail pioneers who are raising the bar and setting a new standard for retail operations.

Lloydminster Home Hardware Building Centre won the Award in the category of “Store Operations.” The store is half contractor customers and 50% retail consumers – but every customer gets 100% of what they need from this dealer’s unique store operations and exceptional customer service. Call-in ordering, same-day delivery and access to an extensive fleet of trucks and forklifts make Lloydminster Home Hardware Building Centre highly efficient for contractors.

For retail customers, it offers an interior design boutique complete with its own staff of experts, a “Gingersnaps” Coffee Shop, and even a baby boutique – all in addition to an extensive collection of traditional products.

The Retail Innovator Awards will be presented at the NRHA’s Annual Convention and All-Industry Conference, July 19-21 . (A number of NRHA members from Canada will be heading to the Convention at the Hyatt Regency in Savannah, Georgia!)

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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
• Results oriented sales professional with a strong record of achievement in strategic and tactical roles. 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!