• RONA offers incentives for Quebec tax credit
• TIM-BR MART dealer optimistic about upside opportunities
• Home Hardware launches interactive 3D room planner
• Former TSC chief executive invests in Window business
• Home Hardware dealer to build bigger store
• Johns Manville manager packs a punch at boxing match
• Home Depot Canada launches paint and battery recycling
• Our Classified Ads

“Some people are always grumbling because roses have thorns. I am thankful because thorns have roses.”
— Alphonse Karr, (French journalist and novelist, 1808-1890)

According to Claude Bernier, RONA’s executive vice-president, marketing and customer innovations, “… [w]e wanted to offer our support to Quebec consumers by providing them with additional savings on their renovation and improvement projects. This initiative could even inspire some consumers to start projects that would otherwise have been impossible for them to realize, since savings are applied on the first dollar they spend on their renovations.”

Under the RONA Visa Desjardins card’s Multi-Purchase Renovation Plan, consumers will be able to complete their purchases during a two-month period, after which their total spending will be divided into 36 equal payments. “We are happy that Desjardins is collaborating with us in implementing this competitive program. We believe the government’s measure is helping consumers, the industry as a whole, as well as contractors, who — let’s hope — will benefit from a higher number of projects in the year to come,” Bernier added.

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The store, Newton TIM-BR MART, was purchased from Wayne Newton, and will remain a member of the giant national LBM buying group, now under the name Havelock TIM-BR MART. The role will be a hands-on one for Macey, working with existing staff. “We’ll start by upgrading the marketing and presentation of the store,” he says.

Why invest now? He expects that a lot of people who have lost their jobs, especially in sectors such as the automotive industry, will have time on their hands to fix up their cottages, and he wants to be there to serve that market. “We think there are some upside opportunities for building the business.”

Macey also thinks there is opportunity beyond this business. “We’re not stopping here,” he adds.

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Visitors to the Home Hardware Virtual Room Planner can select from pre-designed rooms or begin space-planning from blank 2D/3D floor plans, adding dimensions and items to complete the design. The manufacturer-specific data in the Virtual Planner allows homeowners to view full product details for Home Hardware’s own range of kitchens and storage products.

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The building, on Exeter Rd. in south London, is the former home of a construction equipment rental business that moved to a bigger building. The store will carry lines from major door and window suppliers, with those relationships being firmed up over the coming months.

Of course, we have to ask the question on all our readers’ minds: why a door and window store, and why now? “We think in the renovation and do-it-yourself market, there is an opportunity [for homeowners] to reduce their costs significantly by cutting out the middle man,” says Carter. “We are trying to offer some more economical options.” The store will also carry B-grade products for lower-cost projects.

Opportunities for expansion exist, as well, he adds, calling this first store a chance for him to “get his feet wet in the door and window business.” Additional investments are limited only by difficulties in securing financing in the current economic climate.

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Consumers wishing to recycle old paint can bring in the unused portion in a clearly labeled container to the Returns Desk. The recycled paint will be used to create a new line of environmentally preferred paint products.

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WINDSOR & BARRIE, Ont. — Lowe’s Canada opens two more stores here this week, completing its announced expansion plans for its 2008 fiscal year (Lowe’s year end is Jan. 31, 2009). The stores open to contractor customers today, then to the public tomorrow, with grand opening celebrations through the weekend. Lowe’s now has 11 stores in Canada, all of them weighing in at 117,000 sq.ft., with an additional 31,500 sq.ft. or more devoted to a garden centre.

CAMPBELL RIVER, B.C. — A Home Depot store is slated to open here Feb. 19 — a month ahead of schedule. Even though the town is facing job losses, the manager of the store, Nancy Gurr, expects the new outlet to bring jobs to Campbell River, and help keep consumers from going to nearby Courtenay or Nanaimo to shop. Gurr has been with Home Depot for 12 years, most recently opening and managing the store in Abbotsford. Home Depot Canada has two more openings confirmed for this year: Fort Saskatchewan, Alta., on Feb. 5; and Duncan, B.C., on Aug. 6.

TORONTO — HBTC, the private equity company that owns Hudson’s Bay Company has said it will invest $70 million in the chain, which comprises The Bay, Zellers, Home Outfitters, and Fields. Another $60 million will be injected into the company’s U.S. retail chain, Lord & Taylor.

BURLINGTON, Ont. — Wal-Mart Canada is opening its first environmental demonstration store here, which, it claims, features a “first-of-its-kind application of geothermal technology in a large-scale Canadian retail operation”. The site also includes energy-conserving lighting innovations and other sustainable features. This year, Wal-Mart Canada will roll out more of these prototype stores, which are, the company says, 30% more energy efficient. The new Burlington supercentre is expected to use an estimated 60% less energy than a typical Wal-Mart supercentre store and to reduce carbon emissions by an estimated 141 tonnes. It is also expected to divert an estimated 85% of its waste from landfill through a variety of recycling programs.

TORONTO — Canadian Tire is pulling the plug on its online selling service. It’s just taking up too much time and money (besides, don’t 85% of Canadians live within 15 minutes of a Canadian Tire outlet?). Like other retailers, Canadian Tire has found the online presence works best providing product information for customers, which takes the pressure of staff in-store.

DUNCAN, B.C. — Western Forest Products, the integrated Canadian forest products company, has completed its $50 million rights offering, which was announced on Dec. 1, 2008. Approximately 188.7 million common shares were subscribed for by right holders pursuant to the basic subscription right, including exercise of the basic subscription right by Tricap Management, Western’s largest shareholder, for proceeds of approximately $35.9 million. The shares will be issued not later than Jan. 27, 2009.

Cologne, Germany
1-3 March, 2009
www.asia-pacificsourcing.com 

PEOPLE ON THE MOVE

Marty Hawthorn has expanded his former role of Ontario manager allied products at Taiga Building Products to become market development manager for Johns Manville insulation products in Southern Ontario. (mhawthorn@taigabuilding.com or 1-800-268-5095)

Hudson’s Bay Trading Company (HBTC), the parent of Hudson’s Bay Company, has realigned its retail team. Jeffrey Sherman’s role has been expanded to CEO of HBTC, overseeing all retail banners, which comprise The Bay, Zellers, Home Outfitters, and Fields in Canada and Lord & Taylor and Creative Design Studios in the U.S. The result of the restructuring is the creation of a new “Shared Services Group”, created to streamline and integrate central functions including finance, IT, supply chain, logistics, and operations. Don Watros, COO of HBTC Shared Services Group, will head up this new division and report directly to Sherman. Reporting to Watros: Mike Culhane, senior vice-president, finance, HBC, Canadian banners … Chris Sim, senior vice-president, finance, U.S. banners … Dan Smith, chief information officer, HBC, Canadian and U.S. banners … Gary MacDonald, senior vice-president, supply chain, logistics, central operations, real estate, Canadian banners … Bill Tracy, executive vice-president, supply chain and logistics, U.S. banners … Parker Vaughey, vice-president, strategic planning and internet. In addition, Bob Kolida will be appointed executive vice-president, Human Resources, HBTC, and will report directly to Sherman. Outgoing svp and CFO Steve Richardson will leave the company in mid-March to pursue other interests.

To place a listing in our People on the Move section, please send information, including the person’s name, title and contact email or phone number, if desired, to mike@hardlines.ca. HARDLINES reserves the right to edit items for length.

ECONOMIC INDICATORS

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Achievement-oriented, entrepreneurial and creative. Ability to motivate and lead others. Extensive experience in marketing, sales and retail operations.. Full computer literacy, Cad, Coral, Windows etc.

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A highly qualified sales/marketing and senior buyer with over 25 years experience and a proven track record is seeking a senior management position with a growth-oriented corporation where leadership and strong communication skills will have an impact on profitability, productivity and market share.

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• Home Hardware CEO to speak at industry Breakfast
• RONA launches first web-only flyer
• Western show will feature buying, Burton Cummings
• Home Furniture unveils spring collection
• DIY Council will host store tour at NHS
• Our Classified Ads

“The limits of my language mean the limits of my world.”
—Ludwig Wittgenstein (German philosopher, 1889-1951)

• Where the economy is headed
• How jobs and housing are being affected
• The state of consumer confidence
• How the retail home improvement industry will be affected
• What opportunities and challenges confront the independent dealer

The speakers who have agreed to join us have the credentials to deliver on those insights. Paul Straus has been with Home Hardware since its inception, working in the accounting department of Hollinger Hardware in 1963, prior to the emergence of the Home brand. He was responsible for designing, installing, and programming the company’s first computer system.

In 1978, Straus was appointed vice-president controller and in 1985 he became vice-president finance and administration. After four years, he was promoted to evp and general manager and became vp and CEO of the $4.8 billion corporation in 1998.

Derek Holt is vice-president of Scotia Capital Economics. He has broad responsibilities for applying economic and capital market forecasts and research to fixed income and equity markets. He joined Scotia Capital’s trading floor from a senior role with another Canadian financial institution, where he held broad responsibilities for macroeconomic, regional, fiscal, and financial industry research and forecasts. His educational background includes an Honours B.A. (Economics) from York University, an M.A. in Economics from the University of Toronto, and an MBA in Finance from York University.

(We recommend that any sales executives who want to stay ahead of their customers’ needs and concerns, or marketing managers trying to understand the marketplace, attend this event. Retail owners, managers and buyers who wish to make their business as recession-proof as possible in this economic downturn should also consider this a must-attend. For more info, click here.
See you there! —Michael)

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RONA has already been printing most of its flyers on recycled paper in recent years. The new online initiative also addresses the rising popularity of the Internet for shopping, making price comparisons, and gathering product information. Electronic versions of RONA’s print flyers will continue to be available online. See the first one for yourself at: www.flyers.rona.ca.

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On the vendor side, 41 new companies are exhibiting this year and the show has been sold out since early October. “We have a waiting list of people already for next year,” he says.

Despite the economic downturn in Canada, Western dealers remain upbeat, says Hamilton. “We haven’t seen any backing off from the show as a result of the economy, because the economy still remains strong out here on the Prairies.”

The show kicks off on Jan. 22 with an opening night reception that features a casino buffet dinner, and entertainment by comedian Big Daddy TAZ. Matt Dusk is the featured performer at the gala on Friday night. Then, on Saturday, Jan. 24, the show wraps up with a closing night party featuring Canadian rock ’n roll legend Burton Cummings, former singer and songwriter with the Guess Who. The show will also feature a full ladies’ program. For more info about the Prairie Showcase, click here.

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Home Furniture is Home’s only “boutique” banner outside the hardware/home improvement industry, one that offers a range of designer home furnishings, appliances and décor items, which Home’s buyers source both locally and globally. Home Furniture’s extensive selection of brand-name furnishings and accessories ranges from traditional to modern and from urban to country.

The Home Furniture division has been growing rapidly in recent years, with eight new dealers signed last year alone. Many are start ups, while others are new business ventures, often erected alongside an existing Home Hardware store.

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Stores to be visited will include Wal-Mart, the world’s largest retailer, Home Depot, the world’s largest DIY chain, and Lowe’s, its major competitor and the world’s second largest home improvement chain. Other stores will include some independent retailers competing with these retail giants. The store tour will begin at the Las Vegas Convention Center at 11 a.m. and conclude at 4:30 p.m. The reception will last until 6 p.m.

Participants will be provided with a profile of each store to be visited, which will include operational statistics such as sales per store, sales per employee, gross margin and other data, so comparisons can be made with one’s own operation or national statistics.

The cost for the tour, including the reception, is US$100. Reservations can be made by e-mail to Don Droesch, executive secretary of the Worldwide DIY Council: ddroesch@cox.net

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WINNIPEG — Weiser Lock, a business unit of Black & Decker, has donated 400 deadbolt locksets, worth an estimated $15,000, to Age & Opportunity, a social service agency that provides programs and services to enhance the lives of older adults in Winnipeg. The donation was made in partnership with CC Craig, Weiser Lock’s distributor in Winnipeg. Age & Opportunity’s SafetyAid coordinators will install the locks in the homes of Age & Opportunity clients as part of a home safety audit.

NISKU, Alta. — Wood Composite Technologies Inc. has made the list of Alberta Venture magazine’s “The Fast Growth 50” for 2009, a list of Alberta’s fastest growing businesses based on growth in revenues, assets, profits, head count, and other criteria over the past three years. Wood Composite Technologies, which manufactures and markets a composite decking system through its wholly-owned subsidiary, Millennium Decking Inc., was ranked 19th fastest growing business in the under $20 million category.

NEW YORK — DHP Holdings II Corp. has filed for Chapter 11 bankruptcy protection. DHP, which owns Desa Heating, which makes heaters and fireplaces, was unable to get necessary financing to continue operations. The company says it will wind down its operations in an orderly fashion.

L’ISLET, Que. — Les Industries Amisco Ltée, a maker of composite painted tubular and steel sheet residential furniture, has entered into an acquisition agreement with Acquisitionco, a wholly-owned subsidiary of Gestion Martin Poitras Inc. Under the terms of the agreement, Amisco will amalgamate with Acquisitionco and the shareholders of Amisco will receive, upon completion of the amalgamation, $1.75 in cash for each Amisco share, representing a 110% premium over the trading price. The transaction, which will take Amisco private, has been approved by the company’s board of directors

TORONTO — Grocery giant Loblaw has introduced a five-cent charge for plastic bags at its checkouts across the city, in an effort to encourage shoppers to bring their own (reusable) sacks. The policy also anticipates a law that goes into effect in June 2009 that will oblige all retailers to charge for their bags.

LONDON — Barely a week after Home Depot announced it would drop its sponsorship of the Olympics (see last week’s issue —your helpful Editor ), retail home improvement giant B&Q has revealed it would pull out of its support of the British Olympic Association, citing reduced profits and slower consumer spending.

OAK BROOK , Ill. — Ace Hardware has moved up six places — from 12th to sixth — on Entrepreneur’s Franchise 500 list, an annual ranking of the best small-business franchise opportunities for individual entrepreneurs and potential investors. Ace is the only home improvement retailer in the top 50 on the 2009 list, which was published online and in the January 2009 issue of the magazine. The company has continued to climb in Entrepreneur’s rankings, moving from 18th in 2007 to 12th in 2008.

LONDON — As the U.K. economy continues to get hammered, DIY retailer Homebase has reported a 10.2% drop in same-store sales to £479 million in the 18 weeks to January 3, reflecting a sharp drop in consumer spending. Home Retail, the parent company that also owns Argos, reported a sales decline at both its Homebase stores and its catalogue stores. Homebase’s gross margin fell 50 basis points in the period, due to increased promotional activity and the impact of clearance sales on seasonal stock.

TOWSON , Md. — Power tool maker Black & Decker has announced it will cut 125 jobs, most of them sales positions in the field, and not positions at head office.

DAYTON , Ohio — Wal-Mart, the world’s largest retailer, also wields the brand that shoppers find most compelling, according to a first-ever ranking of retailers by the amount of sales their respective brands are expected to generate annually. That listing was released last week by Interbrand Design Forum, which since 2001 has been analyzing the brand value of products and now expands its methodology to include retailers. Interbrand also ranks retail brands in Canada, where Canadian Tire and RONA placed second and third, respectively, behind Shopper’s Drug Mart. The full listing can be found here

Cologne, Germany
1-3 March, 2009
www.asia-pacificsourcing.com 

PEOPLE ON THE MOVE

Colleen Kelly has been appointed national account manager for Graham & Brown Canada. She comes over from OSRAM Sylvania Canada, where she worked in a number of different roles, most recently as director of sales. In the past 12 months, GBC has expanded into several key retailers in Canada and Kelly will take over these accounts in 2009 to manage them for continued growth.

Boake Paugh, President of Key-Bak, Div. West Coast Chain Manufacturing Co., is the 2009 chairman of the Worldwide DIY Council. The association is made up of U.S. and Canadian manufacturers who are active exporters to more than 140 countries around the world. Paugh had been vice-chair during 2008 and replaces Sandra Pierce of Mr. LongArm, Inc. as 2009 chair … Other board members elected for 2009 are our very own Jayne Seagrave of Vancouver Tool Co.; Jim Burton, Master Lock Co.; Rod Walck, Protective Coatings Co.; Patrick Murphy, Reid Industries; Phillip Ali, Ali Industries; Bill Marshek, DAP; and John Sullivan, Arrow Fastener Co.

ECONOMIC INDICATORS

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Achievement-oriented, entrepreneurial and creative. Ability to motivate and lead others. Extensive experience in marketing, sales and retail operations.. Full computer literacy, Cad, Coral, Windows etc.

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A highly qualified sales/marketing and senior buyer with over 25 years experience and a proven track record is seeking a senior management position with a growth-oriented corporation where leadership and strong communication skills will have an impact on profitability, productivity and market share.

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• Lowe’s seeks to replicate corporate culture in Canada
• Dealer Conference will offer financial tips, competitive intelligence
• TORBSA grows ranks despite downturn
• IRLY helps new dealers expand hardlines with localized sourcing
• Las Vegas hardware show introduces sourcing convention
• Home Depot drops out as Olympic sponsor

“When a thing is done, it’s done. Don’t look back. Look forward to your next objective.” —General George C. Marshall (American Army general and statesman, 1880-1959)

• Train Your Staff for Bigger Sales: Customer service is the great competitive advantage of independents over the large corporate retailers. Product knowledge training is the heart and soul of good service. Independents now have low-cost tools to begin product knowledge training for their staff, in a real-time online format. Presented by Dan Tratensek, Director of Publishing for the North American Retail Hardware Association.
• Inventory and Financial Management: What can you do to operate smarter and leaner in today’s economic climate? Learn how you can manage your business, your staff — and your customers — more effectively and profitably. Presented by Roy Carter, CA, former president and CEO of TSC Stores Ltd., and Bill Wilson, Retail Advisor, NRHA Canada.
• Succession – Planning for Your Future: The single most pressing issue for this industry is how to grow, sell or hand down your business. Find out what you must do to make your business ready to sell, and learn how to do it now! Presented by Richard Simms, of Black Eagle Consulting.
• Best Practices – Top Guns Share their Secrets: The slowdown in the Canadian economy is forcing every dealer to re-evaluate their business practices. Meanwhile, savvy American dealers have been weathering a crushing downturn there for the past three years. In this session, you will learn a range of powerful techniques and strategies drawn from the “Top Guns” of home improvement retailing in the U.S. — tips you can apply to keep your business strong. Presented by Dan Tratensek, Director of Publishing for NRHA.

Keynote speakers will lead off the program each morning. On day one, Pat Bolland, the insightful and outspoken broadcaster at BNN Television will talk about where the economy is headed and how it will affect independents. On day two, Michael McLarney, Editor of HARDLINES, will share the latest strategies of Canada’s big boxes, offering a vivid picture of the strengths and weaknesses of this major competitive sector.

The first-ever Johns Manville-Hardlines Dealer Conference will be held Feb. 5-6, 2009 at the Toronto Congress Centre, in conjunction with the Canadian Home Improvement Show. For more information and to register, contact the LBMAO at 905-925-1084, or go to www.canadianhomeimprovementshow.com.

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“I’ve learned that people are people,” Huggins says. “We’ve been able to find great people who care about the store, the product, and the customer.”

The company stays focused, however, on preserving that approach that has made Lowe’s a powerful competitor to Home Depot in the U.S. Things like keeping aisles clean and keeping a focus on customer service are central to Lowe’s modus operandi, which must be embraced by everyone from the managers to the sales staff.

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Bob Holmes, general manager of TORBSA, says Prestige joined to take advantage of TORBSA’s member-owned status, its small size, and its focus on pro and commercial dealers. “Our organization is very seamless,” he says. “We share everything with our members, while letting the dealers focus on their own business, under their own name.”

The intimate nature of the group (Holmes says it purposely restricts membership numbers) lets the dealers be part of a peer group in which they can form solid relationships. “It allows the members to knock information and ideas around and to learn from each other’s experiences.”

The group itself, says Holmes, has begun to feel the effects of the economic downturn that has hit the Ontario market especially hard in recent months. However, even as new housing construction slows, the dealers’ commercial and industrial business “is still fairly significant, as money flows into projects such as hospitals, condos, and power centres. There’s still work there,” he notes.

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The new owners have also expanded their product line to include paint, mouldings, windows and doors. Next month, the pair plan to re-merchandise their store and bring in plumbing and electrical lines, and build a compound for lumber.

Doug & Kathie Cadrin of 108 Mile Building Supplies bought a siding and window supply store in 2001 and have expanded their business to include all categories of building materials. Currently, their main product lines include windows, doors, landscaping and fencing. Now, the Cadrins have also expanded their warehouse and offices to 16,000 sq.ft. They have already begun remerchandising their store and plan to add new products for the renovation market, such as toilets and vanities. Doug cites better pricing and service as the main reasons for joining IRLY, after buying for years through IRLY’s Western Hardware division.

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Home Depot drops out as Olympic sponsor

The Associated Press reported that, in the previous four years, Home Depot’s had spent between $15 million and $20 million for its sponsorship. The program officially ends for the retailer on March 2.

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MISSISSAUGA, Ont. — CPI Plastics Group Ltd. has succumbed to the economic slowdown, and unable to secure further financing, has responded to demands by its lender for immediate repayment of all of CPI’s credit facilities. The lender has further notified CPI that it intends to enforce its security over all of CPI’s assets if repayment cannot be made. According to a release by CPI, the company “understands that the lender will move immediately for the court appointment of an interim receiver over all of CPI’s assets. CPI does not intend to object to the appointment.” The company also announced the resignation of its CEO, and the resignation of all of CPI’s other directors. CPI’s Outdoor Living Products Group manufactures and markets Eon Decking and Fencing Systems, as well as cladding and accessory components to the outdoor hot tub industry. The company has more than 600 employees manufacturing out of six plants in Ontario and Wisconsin.

ALEXANDRIA, Va. — Smitty’s Building Supply, a leading pro dealer that has been serving Virginia builders and contractors for more than 34 years, succumbed to the collapse of the housing market when it filed for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code. The company generated between $91 million and $94 million in revenue in 2007, the latest year for which estimates were available from trade journals in the U.S.

ISSAQUAH, Wash. — Costco Wholesale Corp. had net sales of $7.40 billion for December, a 2% decrease from $7.55 billion in the same period a year earlier. For the 18-week year to date, Costco reported net sales of $24.92 billion, an increase of 2% from $24.53 billion during the similar previous-year period. Same-store sales for December were down 4%, and down 1% year-to-date.

NEW YORK — One retail sector that is flourishing amidst the economic turmoil in the U.S. is liquidation sales. Estimated to be worth as much as US$100 billion in sales, the sector finds liquidators becoming busier than ever purchasing closeout and distressed merchandise from over-inventoried stores, bankrupt retailers, and overstocked Asian factories.

LONDON — Marks & Spencer, the venerable, and dare we say, iconic, British retailer, is consolidating operations in the face of a severe downturn in that country’s economy. It has laid off 1,230 staff and will close 27 of its 600 stores in Britain. In its latest quarter, sales were off 7.1%.

Cologne, Germany
1-3 March, 2009
www.asia-pacificsourcing.com

Charles R. Williamson has been appointed non-executive chairman at Weyerhaeuser. He was the executive vice-president of Chevron Texaco Corp. from August 2005 until his retirement in December 2005. Before that, he was chairman and CEO of Unocal Corp. until its acquisition by Chevron Texaco in 2005. Williamson replaces Steven R. Rogel, who will retire April 15 at the age of 65, which is the mandatory retirement age for executives at the Federal Way, Wash.-based company. Rogel joined Weyerhaeuser in 1997, coming over from Willamette Industries to serve as president and CEO until becoming chairman in 1999.

At Wal-Mart, Doug McMillon will be promoted to president and CEO of Wal-Mart International, effective Feb. 1. He will have responsibilities for the company’s overseas operations, including India. McMillon, 42, is currently president and CEO of Sam’s Club, a Wal-Mart Subsidiary. He began his career with Wal-Mart unloading trucks at a distribution centre while he worked his way through college.

ECONOMIC INDICATORS

November’s level, the lowest since February 2007, was 22.6% below last year’s monthly average. On a year-to-date basis, the total value of building permits reached $65.7 billion, down 3.9%. (Stats Canada)

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Achievement-oriented, entrepreneurial and creative. Ability to motivate and lead others. Extensive experience in marketing, sales and retail operations.. Full computer literacy, Cad, Coral, Windows etc.

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A highly qualified sales/marketing and senior buyer with over 25 years experience and a proven track record is seeking a senior management position with a growth-oriented corporation where leadership and strong communication skills will have an impact on profitability, productivity and market share.

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• Industry experts will present at new Dealer Conference
• Training is top of mind for top dealers
• Lowe’s begins next round of openings in Canada
• IRLY opens commercial division
• Taiga unveils succession plan

“Only two things last: shoes too small and foolishness.” —Hamilton Wright Mabie (Minou Drouet (French poet, 1947- )

To maximize accessibility of the event to independent dealers, the JM Hardlines Dealer Conference will be presented in conjunction with the Canadian Home Improvement Show, a high-impact buying event that attracts retailers from across Ontario and beyond, held Feb. 5-6, 2009 at the Toronto Congress Centre. The show is held by the Lumber and Building Materials Dealers Association of Ontario (LBMAO).

Leading retail and economic experts have been confirmed for the JM Hardlines Dealer Conference, including Pat Bolland, the insightful and outspoken broadcaster at BNN Television. Bolland will tell dealers how they can recession-proof their business with the latest information about where the economy is headed and how it will impact independent dealers.

Michael McLarney is the Editor of HARDLINES, the weekly newsletter for the retail home improvement industry. He will share the latest strategies of Canada’s big boxes and how they want to go after your business (including a close look at the new kid on the block – Lowe’s). Drawing on more than 20 years experience tracking the industry, and using the latest statistics on the growth of big boxes, drawn from the Hardlines Database, dealers will get a vivid picture of the strengths and weaknesses of this major competitive sector.

Learn how to beat the economic downturn by training your staff to better sales. The latest product knowledge training is now available to Canadian dealers, and NRHA’s Dan Tratensek will explain how it can work in your store. Mr. Tratensek will also make a presentation of techniques being used by U.S. dealers to weather the severe downturn that has stricken the economy there. “Best practices: top guns share their secrets” will offer a wealth of useful — and practical — tips for Canadian dealers.

Richard Simms, Consultant with Black Eagle Consulting, will talk about succession planning for your future and how to ensure maximum return on a lifelong investment. He will explain how succession planning is not a one-time event, but a lifelong process that encompasses a wide range of steps aimed at ensuring the continuity of your business.

The first-ever Johns Manville-Hardlines Dealer Conference will be held Feb. 5-6, 2009 at the Toronto Congress Centre, in conjunction with the Canadian Home Improvement Show. For more information and to register, contact the LBMAO at 905-625-1084, or click here.

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NRHA Canada has recently welcomed dealers of all sizes, from across Canada, to its ranks. These include: Kent, Turkstra Lumber, and RONA Arrow Building Supplies. They join existing members including Home Hardware Stores Limited, IRLY Distributors, Federated Co-operatives, and Ottawa-based Preston Hardware.

“We use the online learning tool provided by NRHA for our departmental general product knowledge training needs,” said Patti Robichaud, Training Manager for Kent, the chain of 33 stores based in St. John, N.B. “We have found the module learning to be a user-friendly and creative solution satisfying our multi-location and virtual team training needs.”

At the heart of NRHA Canada’s programs are the Basic Training Course in Hardware Retailing and Basic Training Course in Building Materials Retailing. Both contain everything hardware and home improvement retailers need to train employees to improve their skills, including interactive modules that cover product knowledge, selling tips and merchandising techniques. The course also includes testing and grading functions to ensure employees retain this information. All training programs have been customized for Canadian dealers.

“For the dealer who is time starved and challenged with an overloaded schedule, these training programs from the NRHA can provide the solution,” said Bill Ferguson, dealer support manager for Home Hardware Stores Limited, the co-op representing more than 1,000 dealers nationwide, headquartered in St. Jacobs, Ont.

Ferguson points to the ease of use as one of the key advantages of the NRHA’s training. “These programs are easy to use by the staff member and easy for the dealer to administrate. The staff member is provided with an on-line test that instantly evaluates their comprehension of the course completed. Staff can choose to take the entire course or concentrate on the product category that is most pertinent to their responsibility.”

In addition, NRHA member retailers can take further advantage of their membership in their respective dealer association for further discounts in the cost of the training. Dealers who are members of the Building Supply Industry Association of British Columbia, the Western Retail Lumber Association, the Lumber and Building Materials Association of Ontario, the Quebec Hardware and Building Supply Association, or the Atlantic Building Supply Dealers Association receive a 10% discount off the regular NRHA Canada rate.

For more information about NRHA Canada, click here.

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The Belleville store opens exactly one year after Lowe’s opened its first site in this country. Six more were opened within a month, then the company spent the rest of 2008 operating those stores and filling in its real estate pipeline to prepare for future openings.

Does the latest opening reflect any major shifts in Lowe’s approach since first arriving here? “Mostly what we’ve learned has validated what we started with,” says Alan Huggins, vice-president operations for Lowe’s Canada. Some enhancements were made to core categories, such as plumbing and electrical, but otherwise the Lowe’s formula, as initially repurposed for Canada, has held up. “Where we thought there was a compelling difference we could make here, customers tell us that there is.” Those differences include maintaining high standards within the store that include clean, bright aisles and a strong focus on customer service.

Some fine-tuning did take place however. Huggins points out that doors and windows are more prominently featured, more high-end products have been added, particularly in closet and storage organization (garage storage is a big category for customers in the Greater Toronto Area, he notes). Kitchen displays have become larger and more integrated, featuring shelf storage and more appliances, while throughout the store more special-order items are featured on end-caps and in portable vignettes. Otherwise, he says, there have been no major changes to the store or to the merchandise assortment.

“Our customers have pretty much validated our concept,” Huggins says.

The company will open three more this month, all in Ontario. The soft openings for each will be: Whitby (4605 Garrard Rd.), Jan. 13; and Windsor (1848 Provincial Rd.) and Barrie (71 Byrne Dr.), both on Jan. 27. This will bring the total number of Lowe’s stores in Canada to 11.

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IRLY’s first commercial account is North Shore Doors, a door and window supplier located in North Vancouver, B.C.

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Doug Morris, Taiga’s evp, supply and major accounts, will retire effective March 31, 2009. Considered one of the key builders of Taiga in Eastern Canada, Morris has contributed to Taiga’s growth opportunities and will remain a key advisory resource to the company.

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LONDON — According to a survey of 36 countries conducted on behalf of sponsor Checkpoint by the Nottingham-based Centre for Retail Research, the U.K. has the highest rate of retail theft in the world. Losses reached £4.1 billion ($7.3 billion), or 1.3% of retail sales, higher than the European average of 1.27%. Occasional shoplifters and organized gangs account for 42.6% of the theft in U.K. stores.

NEW YORK — Amazon.com had its best holiday sales season ever, reporting a 17% increase in its online sales during its busiest day, Dec. 15. On that day, 6.3 million products were ordered, up from 5.4 million on the same day the previous year. However, according to SpendingPlus, which tracks credit-card spending, online sales in general were down by 2.3% this holiday season, compared to last year’s.

BENTONVILLE, Ark. — Wal-Mart plans to open its first Sam’s Club warehouse club store in Shanghai, in Pudong, later this year. This will be the fourth such outlet in mainland China. Wal-Mart introduced Sam’s Club to the Chinese market in 1996.

LONDON — Shortly after Christmas, Woolworth’s, the venerable British mass merchant, closed 200 stores. Unable to find a buyer and with debt that has climbed to £385 million ($691 million), the remaining 600 stores are slated for closure this week.

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Holiday publishing schedule: This is our last issue of Hardlines until Jan. 5, 2009. Very best wishes for the holiday season to all of you, our Faithful Subscribers, from all of us here. Please note: the World Headquarters will remain open until Dec. 23. —Michael, Beverly and Brady

• Big boxes on the wane: a special HARDLINES Report
• TIM-BR MART adds stores
• German Sourcing Show will bring Asian suppliers to Western buyers

“Blessed is the season which engages the whole world in a conspiracy of love.” —Hamilton Wright Mabie (American essayist, critic, and lecturer, 1846–1916)

Canada will have 274 big boxes by year’s end — or one store for every 26,000 families in Canada. “We are seeing a gradual slowdown in the expansion of the big box,” said Michael McLarney, editor of HARDLINES. “Reasons range from market saturation as new sites become harder and harder to find, to changing tastes of Canadian consumers.”

According to the HQR report, big box retailers are evolving to meet these changes, however. Home Depot Canada is building smaller stores, while RONA, with estimated sales of $2.5 billion from 80 big box stores (out of total estimated sales this year of $6.5 billion), is shifting its expansion plans to focus more than ever on traditional retail formats.

At the same time, Lowe’s Canada is opening four more stores over the next several weeks. (See our hardlines.ca mainpage for updates—MM)

The latest issue of HQR also features results of the Hardlines 3Q Business Conditions Survey, plus Economic Indicators – invaluable info for anyone trying to navigate the economic downturn facing Canadians. The new Big Box Report is in the latest issue of Hardlines Quarterly Report, which is published four times a year by, who else — HARDLINES, the weekly newsletter for the retail home improvement industry in the U.S. and Canada. For more information click here.

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CALGARY — TIM-BR MART’s reach is extending further into communities in New Brunswick, Ontario, Saskatchewan, and Alberta with the addition of five more dealer locations and a new member of the national network.

By adding new operations in North Battleford and White City, Sask.; and St. Paul, Alta., McDiarmid Lumber brings their number of locations to 17. These three operations will focus on their “ready-to-move” manufactured homes market, which builds and delivers custom-made homes ready for hook-up.

With the addition of a new store in Unity, Sask. (shown here), North American Lumber’s total location count is now 20. The recently acquired Unity Building Supplies offers customers a 1,500-sq.ft. retail store and two drive-through LBM warehouses. Established in 1906, North American Lumber will continue its growth pattern with rebuilds planned for 2009.

TNT Insulation and Building Supplies is now serving contractors and retail DIY customers of Jacksonville, N.B., with a second location. This store has recently completed renovations and merchandising to be fully branded under the TIM-BR MART banner.

Gibson Roofing Supplies of Markham, Ont., is the newest industrial dealer of the group, specializing in roofing products. This strong dealer in the Greater Toronto Area has a large roofing division and a strong contractor customer base, including large homebuilding companies.

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The concept of the show is to replace a trip to Asia (which may permit only a few visits to suppliers) with a one-stop shopping experience that lets buyers and sourcing vendors line up many meetings with a host of potential new business partners in a very short period of time.

Admission is now available for the show and registration is possible online, which enables visitors to attend for free, instead of paying €40 for a day ticket or €70 for a season ticket. For more information and to register, click here.

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The event also attracted some of our favourite people, including Larry Koza of Barrie, Ont.-based Can-Save, rock and roll legend Rompin’ Ronnie Hawkins (on behalf of Cambria), and HARDLINES’ own publishing diva, Beverly Allen.

MONTREAL — The Canadian Hardware and Housewares Manufacturers Association held its annual cocktail reception for its Quebec members recently. The event, both entertaining and edifying, was held at the Montréal Museum of Archaeology and History.

CALGARY — UFA Co-operative Limited has moved to new corporate offices, effective today: 4838 Richard Rd S.W., Suite 700, Calgary, Alta. T3E 6L1. The new main reception number is: 403-570-4500.

OAK BROOK, Ill. — For the holiday season, Ace Hardware has launched “Ace Your Face,” a viral campaign that provides consumers a fun and entertaining way to send holiday greetings to family, friends and coworkers. Check it out at http://aceyourface.acehardware.com. The online tool allows individuals to upload photos of themselves and their loved ones in order to create customized holiday scenes. The eight settings feature kitschy group shots with matching snowman sweaters, winter sports adventures, and Santa visits.  “Ace Your Face” is a fun distraction that can easily be shared via e-mail, social media sites and blog links. The marketing and advertising promotions for the campaign include direct e-mails to corporate employees and to members of Ace Rewards, Ace’s one-to-one customer loyalty program; banner ads on social media sites, such as Facebook, and popular sites like AOL and Yahoo!; and paid search initiatives. To date, the “Ace Your Face” site has attracted nearly 60,000 visitors.

ATLANTA — Home Depot is going to erect a 465,000-sq.ft. distribution centre in Topeka, Kan. Construction is expected to begin in 2009, and employ 150 people initially.

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• Canadian system will be rolled out to U.S. Home Depot stores
• BMR moving into higher-end hardware assortments
• B.C. entrepreneurs open door shop supplying dealers
• European conference addresses customer preferences, sustainability

“They err who thinks Santa Claus comes down through the chimney; he really enters through the heart.” —Mrs. Paul M. El

SAP can also send sales data back to the vendors, so they can refine their programs by store and region.

Home Depot’s CEO, Frank Blake, came up from Atlanta to address the vendors, as well. He reiterated the value of the SAP system, noting Home Depot Canada’s importance to the whole chain. In fact, the Canadian division has served as a “lab” for the company many times in the past, and the test of the SAP system here is one more example of this. Now that it has proven successful here, it will be rolled out in the U.S. over the next two years, he said.

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Brouse and Miller know doors. They worked for many years in the door business before striking out on their own. Between them, they have almost 20 years experience in every facet of door sales and construction. Both are experienced in managing a dealer sales network, and commercial multi-family sales.

While the big push has been on the door business, North Shore Door also offers door hardware, mouldings, and windows. A new All-Weather Design Centre is now part of the showroom’s design offerings.

North Shore works with retailers all over British Columbia, shipping to IRLY dealers through the IRLY distribution centre in Surrey. Brouse and Miller already have four employees, and with sales higher than projected, they are already considering expanding.

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Going upscale will attract more female customers, who, he recognizes, are so integral to the buying decisions for home décor and renovations. For example, the $129 barbecue used to be standard fare in most stores — and a loss leader with little margin built in. Now, barbecues selling for $600 and $700 — and even $1,000 — are commonplace in BMR stores.

The move to become more retail friendly by supplying a wider assortment of hardware products still has its limitations, however, Gagnon admits. For example, kitchen and bath assortments tend to remain more elementary. He leaves the higher-end items to the specialty kitchen and bath stores. “We do have the basics,” says Gagnon. “But if you want the glamour — we’re not there yet.”

Other areas that are showing growth for BMR dealers include flooring and décor products. But, once again, Gagnon warns against high-ticket items, such as heavy appliances. “They are too low-margin, they can get damaged, and they take up lot of space on the retail floor.”

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Oliver Schmitz, international category manager for GfK Living, GfK AG, Nuremburg, spoke about the opportunities in the current crisis and the fears present, based on his group’s surveys of consumers. Andreas Sandmann, managing director, OBI Germany, the leading DIY retailer in that country, spoke on OBI’s direction, including the company’s vision for remaining a leading European retailer, which involves focusing on quality to maintain success.

Several speakers, including Sandmann, addressed a host of trends, including sustainability and the move by consumers to stay home and garden or fix up, rather than take a vacation.

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BURNABY, B.C. — JR Home Products Ltd. has moved to new offices. It is now at: Unit 1-5628 Riverbend Dr., Burnaby, B.C., V3N 0C1; telephone: 1.800.561.5550. JR is an importer and manufacturer of outdoor leisure products under the Grapevine name, as well as Paramount hearth products and Century cabinet hardware.

ISSAQUAH, Wash. — Same-store sales in the U.S. were down 2.2% for Costco, the warehouse-club chain, while international same-store sales fell 15%, largely as result of the devalued Canadian Loonie, which has fallen 21% against the U.S. dollar during the year. Costco had net sales of $5.55 billion for November, a decrease of 3% from $5.72 billion last year. For the first thirteen-week period, it had net sales of $17.52 billion, up 3% from $16.98 billion.

SHANGHAI —  Kingfisher plc, Europe’s largest home improvement retailer, has decided to close its Trade Depot stores in China. The chain, which focuses on contractors and builders, was started in 2005. Kingfisher also intends to close three B&Q home improvement big boxes in China. The stores are facing declining sales in that market. B&Q’s overall sales are down nearly 20% for the year.

HOFFMAN ESTATES, Ill. — The mass retailer Sears Holding Corp. continued to downsize its operations in the three months ended Nov. 1. The company, which operates Sears, Kmart and Sears Hardware stores, took a pretax charge of $101 million to cover the closing of 14 stores and impaired assets. As a result the company reported a net loss for the quarter of $146 million (versus a $4 million gain in third quarter 2007) on revenue of $10.7 billion, which was down 7.7% from the same period a year ago.

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• RONA show highlights sustainable products, practices
• RONA introduces two proprietary brands
• Home Depot Canada cuts jobs, realigns
• UFA to purchase U.S. sporting goods chain

“God is in the roses, and the thorns.”—Roseanne Cash (American singer and songwriter, daughter of Johnny Cash, 1955 -. From her excellent album,“ Pink Cadillac”)

He also pointed out the desire of homeowners to rely increasingly on professionals as their time becomes tighter and projects become more sophisticated and costly. He noted that 85% of houses in Canada are more than 10 years old. With the market heading toward more of these types of projects, sustainable development will become more top of mind with consumers, and will be a “key priority” for RONA.

RONA’s new sustainability policy addresses sourcing for forest products. Normand Dumont, executive vice-president merchandising for RONA, explained in greater detail the scope of the policy. Phase one will include wood products – both the use and sale of wood products. His team will be working with vendors and giving preference to those who meet specific criteria for sustainability. Those criteria are inclusive, and embrace all three major certification programs — Forest Stewardship Council, the forest products marking program of Canadian Standards Association, and Sustainable Forestry Initiative. (In fact, the only way RONA can achieve its goals of 90% sustainability in 2009 and 100% by 2012 is to accommodate all of these programs.)

FSC is considered most rigorous, especially as regards biodiversity and aboriginal issues. RONA wants to have all its stores 25% FSC compliant by 2013.

The company will also eliminate chemical fertilizers from its shelves by July 1, 2009. Dealers, managers and staff from across the country were able to see many of these initiatives first-hand at the show, which featured some 2,000 new products, including 500 new private-label items.

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A line of pneumatic compressors was introduced, as well, branded under the Michelin name. A first for the tire company, this line will be proprietary for RONA under a three-year agreement, featuring three corded and three cordless models for 2009.

RONA’s private-label paint line also featured a new “eco” paint line that is VOC (solvent)-free.

(Click here to get a Hardlines TV tour of the RONA Show)

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“We’re educating our customers on how to do those smaller projects. For example, they aren’t as likely to replace a kitchen now, so they’ll change their lighting fixtures and cabinet hardware, instead.”

Home Depot employs more than 30,000 associates in this country.

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UFA will acquire a majority interest in Sportsman’s Warehouse, subject to successful completion of negotiations and a comprehensive due diligence process. UFA has already made what it calls “a significant cash injection” into the U.S. retailer to ensure it’s well stocked for the holiday retail season.

UFA is driving a controlled diversification strategy that includes construction and outdoor-lifestyle businesses. As a rural marketer, outdoor recreational products and services are a logical extension of UFA’s existing relationship with customers and members. With the addition of Wholesale Sports and Sportsman’s Warehouse, UFA is a major North American force in the outdoor adventure industry.

UFA’s 2007 revenues were more than $1.8 billion, ranking it among the 40 largest Alberta companies in terms of revenue, according to PricewaterhouseCoopers and Alberta Venture magazine. In 2008, UFA revenues will top $2 billion for the first time, having surpassed the $1 billion mark just four years ago. Sales through its Farm and Ranch Supply outlets and retail building supply business are estimated to reach $400 million this year (source: HARDLINES Who Directory).

MONTREAL — Shops in Downtown Montreal will be able to stay open past five p.m. on weekends. Stores in tourist areas of Old Montreal, Chinatown, and the Old Port, have been able to stay open later for years. The move recognizes the 20,000 tourists that come to Montreal each weekend (and likely responds to tightening spending by consumers). The program is a trial for 18 months.

EDMONTON — Home Depot opened another store here last week, its seventh in Edmonton. It’s located in the city’s oldest mall, Westmount Centre. The store employs about 100 staff. Another store, in the city’s toney Windmere district, will open Dec. 11.

LONDON — For its third quarter, Kingfisher plc, whose retail divisions include B&Q, Castorama, Screwfix, and Hornbach, reported that retail sales were flat, at £2.6 billion, while retail profit was down 4.0% to £176 million. Same-store sales were down 5.1%. In the flat French market, sales and retail profit both grew. In the weak U.K. market, retail profit was £36 million, down £9 million, with margin and cost initiatives helping to offset the impact of lower sales. While its businesses in Eastern Europe delivered strong sales and profit growth, market conditions in China continued to deteriorate, impacting trading. “Consumer confidence has clearly been shaken over the last few months by international economic events and this has impacted demand in all our markets,” said Ian Cheshire, Group CEO. “However, we enter this period of slowdown in a strong position with a robust balance sheet, international market leadership, retail brands with a strong value positioning, and significant buying scale.” He added, “There are clearly more challenging times ahead and we are concentrating on trading effectively in difficult markets by managing our working capital, cash and costs tightly.”

CALGARY, — RenoWorks Software, based here, has been recognized, along with its client, Home Hardware Stores Ltd., by the International Academy of the Visual Arts with a Silver Davey Award for HomeWorks Software, a state-of-the-art visualization software created for Home Hardware by RenoWorks to allow homeowners to try Home Hardware building products on images of their own home — before they buy. HomeWorks users have access to more than 2,500 Home Hardware products from more than 30 major building materials manufacturers. In addition to the software, the awards recognized a nationally run contest that saw thousands of design ideas submitted by homeowners and over $10,000 in prizes. “HomeWorks is a unique product that partners homeowner creativity with Home Hardware products through technology,” said Doug Vickerson, RenoWorks CEO. “The recognition of a Davey Award confirms that we are providing an innovative solution for Home Hardware”.

MISSISSAUGA, Ont. — Wal-Mart Canada will operate 192 of its 310 stores nationwide around the clock in December. The stores will open their doors on December 1 and leave them open until closing time on Christmas Eve, 576 hours later.

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• Retail giants’ earnings nosedive in third quarter
• RONA realigns executive team
• Brossard departure triggers RONA’s executive shift
• Home Depot execs find positives amidst bad news
• BMR head says 2009 will be a “bunker year”

“Success in running a business carries by itself
no promise of success outside business.”
—Peter Drucker (American management consultant and author, 1909-2005)

Lowe’s Cos., Depot’s primary rival, didn’t fare much better. The Mooresville, N.C.-based retailer reported that its net income dropped for the fifth consecutive quarter. Earnings during latest three months, which ended Oct. 31, fell 24.1% to $643 million on sales of $11.7 billion that were off 1.4%. The company’s same-store sales were down 5.9% for the quarter and 6.5% for the first nine months of its fiscal year, during which its total revenue rose marginally to $38.3 billion, and its earnings were down 15.3% to $2.03 billion.

Robert Niblock, Lowe’s CEO, stated that his company’s quarterly financial performance benefited from the relatively strong sales of products for maintenance and outdoor living projects. Lowe’s also experienced an uptick in sales from products that went toward post-hurricane reconstruction in the Gulf States. However, Niblock said that consumers, in general, are delaying discretionary spending, especially for bigger-ticket jobs.

Lowe’s opened 39 stores during the quarter, bringing its total to 1,616. It expects to open between 33 and 38 more in the fourth quarter, when it projects that sales will fall within a range of -3% to 2% up. It expects its cash flow to be off by 330 basis points during the last three month, and off 190 points for the full year. The company has reduced its full-year forecast for earnings to $1.48 per share, from a previous estimate of $1.56.

Home Depot, which slowed new-store openings this year (it opened 11 net new stores in the quarter and its capital expenditures were down nearly two-fifths through nine months), ended its latest quarter with 2,268 outlets that include operations in Canada (where it will open 10 stores in total this year), Mexico and China. (The company operates 257 stores in those three countries.) System wide, its customer transactions so far this year were down 3.1%, and its average sale per customer was off 2.2% to $56.97, although that falloff was probably cushioned by Home Depot’s launch during the quarter of a new lower-price merchandising and marketing campaign.

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Home Depot, and its nearest rival, Lowe’s, are hardly alone in feeling the pinch from an economic downturn that is manifesting itself in a significant curtailment in consumer spending. Target, for example, recently announced that it would scale back its store-opening plans for the next five years. The one exception appears to be Wal-Mart, which last week reported an 8% increase in quarterly sales and an 9.8% gain in earnings. Equally surprising was Wal-Mart’s rosy projection for good holiday sales.

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This initiative stems from RONA’s 2008-2011 Strategic plan and aims at helping the company continue to grow while optimizing the entire RONA network.

The shift reflects a realignment of all stores under one vice-president, while the role of marketing has been expanded, now including “customer experience”. Assigning the portfolio to Bernier, whose roots were in marketing (he hired Brossard in the first place), puts it back in the hands of an indefatigable worker who is one of Dutton’s most trusted lieutenants.

Dutton’s hands-on role on the recruitment side reflects the company’s recognition of affiliate dealer-owners as a continued growth opportunity for RONA. “The organizational changes we are announcing today are providing RONA with a renewed dynamism and solid leverage to face the challenges that await us in this tough economic context,” said Dutton. “The support of affiliate dealers and recruitment of new independent dealers are central to our growth strategy. Even greater attention will now be devoted to this sector and I am making it a personal priority, in order to further crystallize our role as industry consolidator in Canada.”

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Brossard, currently evaluating the package offered to him by RONA, says he will take time to evaluate his options, “then choose the organizations that are the right fit for me.” He admits he hopes to land something related to sports.

BMR head says 2009 will be a “bunker year”

Thanks to that regional resilience, as well as some real gains in member numbers in 2008, Gagnon expects his group’s retail sales to be up as much as 8% this year. More than a dozen dealers joined BMR in 2008 (another eight defected, leaving BMR with a net gain) and another 36 attended the dealer market, investigating the viability of BMR’s programs.

Fully half of those dealers were hardware store operators, interested in BMR’s new BMR Hardware banner, which was launched last summer with the signing of 12 dealers. While that number hasn’t grown since the program’s inception — Gagnon says he wanted to “go slowly” with this initiative — he believes the time is right to put the push on it. Adjustments have been made to the flyer program and the product mix. “We are more and more complete,” he says.

As one BMR Hardware dealer said, the program has become more complete since its inception, with more and more hardware products now available through BMR’s own 350,000-sq.ft. hardware distribution centre in Longueuil, Que.

Gagnon believes the Hardware banner could number 50 dealers within three years.

However, growth does not come without its challenges. BMR’s efforts to grow outside of its home province of Quebec took a body blow with the recent loss of R.D. Gillis Building Supplies, a major dealer with estimated sales in excess of $8 million in Sydney River, N.S., which is being sold to some competing Home Hardware dealers. Within Quebec, the competition for dealer is heating up. TIM-BR MART has just formed a dealer development team in Quebec, and Home Hardware has a new team, headed by BMR’s former dealer recruitment manager, Dunc Wilson. Check out the classifieds in this issue of HARDLINES to find out which group is also throwing its hat into the ring in Quebec.

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• RONA sales up, profits down in 3Q
• PRO dealers get chance to switch to Ace
• IRLY’s wholesale benefiting from TIM-BR MART alliance
• Zellers, Target cater to cheap chic appeal

“There are many beautiful things, but the silent beauty of a flower surpasses them all.” —Sofu Teshigahara (Japanese floral artist and founder of the Sogetsu School of Ikebana, 900-1979)

RONA performed well in many parts of the country — for example, in Quebec, investments in updating its Réno-Dépôt stores are paying dividends and same-store sales rose 2%, although the Ontario and Alberta markets have dragged. The company’s independent dealers in smaller markets across the country also fared well.

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The PRO dealers in attendance were overwhelmingly positive about this option, and many of them will make the switch to Ace. However, PRO will continue to be supported, and there will be a PRO flyer in 2009.

TIM-BR MART is reportedly making gains in Quebec, as the new TIM-BR MART recruitment team for that province, under Desrosiers, adds new members that will carry the Ace banner. Desrosiers’ team is also implementing the PRO and Ace store-branding program in conjunction with TIM-BR MART’s retail programs.

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Garry Anderson, executive vice-president and general manager of IRLY, says the alliance between the two groups has given IRLY the opportunity to “prove that we can do a good job for them.” He adds that the Western division has been able to buy better, “because of their volume on a lot of products.” Some of the lines that have been expanded under the new relationship include plumbing. “We just didn’t have the volume before,” says Anderson. “It just adds to the mix.”

“The partnership is working great,” says Tim Urquhart, president of TIM-BR MART. “The IRLY truck is going out weekly and many of our dealers are now getting delivery.” Western started more than a decade ago selling to fewer than a dozen dealers. It now makes deliveries to more than 100 independents.

Through its alliance with TIM-BR MART, Western Hardware is now a member of Independent Hardware Dealers Association (IHDA), along with Independent Lumber Dealers Co-operative. Urquhart says there is room to continue growing the relationship between IRLY and TIM-BR MART. “Everything is open right now.” 

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Meanwhile, north of the border, Mark Foote, the new president and CEO of Canada’s home-grown discount mass merchant, Zellers, believes his company is well-positioned to capture cash-strapped consumers’ share of mind and wallet.

According to the Globe and Mail, Foote reports that Zellers is already enjoying a lift in sales, as the Canadian economy has slowed right down. “As a value retailer, a bad economy is a good thing,” Foote was quoted as saying.

He took over the top job at Zellers, a division of Hudson’s Bay Co., in August following the purchase of Hbc by the U.S. holding company that also owns Lord & Taylor.

Like Target, Zellers faces its stiffest competition from Wal-Mart. Foote has had experience on that front, however. He was at Loblaw, the giant grocery chain, for two years previously, as it battled to ward off the effects of Wal-Mart’s incursion into grocery. Before that, he was president of Canadian Tire Retail.

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• RONA sales up, profits down in 3Q
• PRO dealers get chance to switch to Ace
• IRLY’s wholesale benefiting from TIM-BR MART alliance
• Zellers, Target cater to cheap chic appeal

“There are many beautiful things, but the silent beauty of a flower surpasses them all.” —Sofu Teshigahara (Japanese floral artist and founder of the Sogetsu School of Ikebana, 900-1979)

RONA performed well in many parts of the country — for example, in Quebec, investments in updating its Réno-Dépôt stores are paying dividends and same-store sales rose 2%, although the Ontario and Alberta markets have dragged. The company’s independent dealers in smaller markets across the country also fared well.

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The PRO dealers in attendance were overwhelmingly positive about this option, and many of them will make the switch to Ace. However, PRO will continue to be supported, and there will be a PRO flyer in 2009.

TIM-BR MART is reportedly making gains in Quebec, as the new TIM-BR MART recruitment team for that province, under Desrosiers, adds new members that will carry the Ace banner. Desrosiers’ team is also implementing the PRO and Ace store-branding program in conjunction with TIM-BR MART’s retail programs.

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Garry Anderson, executive vice-president and general manager of IRLY, says the alliance between the two groups has given IRLY the opportunity to “prove that we can do a good job for them.” He adds that the Western division has been able to buy better, “because of their volume on a lot of products.” Some of the lines that have been expanded under the new relationship include plumbing. “We just didn’t have the volume before,” says Anderson. “It just adds to the mix.”

“The partnership is working great,” says Tim Urquhart, president of TIM-BR MART. “The IRLY truck is going out weekly and many of our dealers are now getting delivery.” Western started more than a decade ago selling to fewer than a dozen dealers. It now makes deliveries to more than 100 independents.

Through its alliance with TIM-BR MART, Western Hardware is now a member of Independent Hardware Dealers Association (IHDA), along with Independent Lumber Dealers Co-operative. Urquhart says there is room to continue growing the relationship between IRLY and TIM-BR MART. “Everything is open right now.” 

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Meanwhile, north of the border, Mark Foote, the new president and CEO of Canada’s home-grown discount mass merchant, Zellers, believes his company is well-positioned to capture cash-strapped consumers’ share of mind and wallet.

According to the Globe and Mail, Foote reports that Zellers is already enjoying a lift in sales, as the Canadian economy has slowed right down. “As a value retailer, a bad economy is a good thing,” Foote was quoted as saying.

He took over the top job at Zellers, a division of Hudson’s Bay Co., in August following the purchase of Hbc by the U.S. holding company that also owns Lord & Taylor.

Like Target, Zellers faces its stiffest competition from Wal-Mart. Foote has had experience on that front, however. He was at Loblaw, the giant grocery chain, for two years previously, as it battled to ward off the effects of Wal-Mart’s incursion into grocery. Before that, he was president of Canadian Tire Retail.

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