Lowe's unveils Canadian expansion plans

TORONTO—More than a year after announcing plans to come to Canada, Lowe's Cos. has set asides concerns that it must purchase another company's existing outlets to gain a foothold here. "Today, I can tell you we are absolutely on track with our plans to open 6-10 stores next year in Canada," said Doug Robinson, president of Lowe's Cos. Canada. He spoke with journalists last Thursday at the company's corporate headquarters and customer support centre on Yonge St. in Toronto's north end. The previously announced Hamilton, Ont., location will be the first to open—though not until the second quarter of 2007. It will be followed by Brantford, about 100 km west of Toronto, South Brampton (Kennedy Rd. N. and Steeles W.), and Toronto (Caledonia Rd., behind an existing Home Depot). Another nine stores are already in the Lowe's "pipeline", which means they are approved internally and in various stages development. Each store will be a full-sized big box, carrying 60,000 SKUs and weighing in at 145,000 square feet of retail space—including garden centre—that represents an investment of $20.5 million and employment for up to 175 people. All of these stores will be centred in Southern Ontario, specifically around the Greater Toronto Area. "Our focus is in Ontario," said Robinson, "but we will look at other opportunities." Other sites believed to be under consideration include Markham and Barrie. Regional consumer tastes will dictate that the merchandise mix in these new stores may differ in some ways from its U.S. counterparts. But another distinction for Canadian stores will be the addition of food service. Coffee shops are standard in most Canadian big boxes, and Robinson said the company is in discussions with a number of providers. He also said the company would soon begin recruiting staff, beginning with store managers. Catherine Townshend, vice-president of human resources for Lowe's Canada, is overseeing the recruitment process. "More than 3,500 people have contacted Lowe's’Äîunsolicited’Äîexpressing a desire to be part of the Lowe's team." Lowe's had 2005 sales of US$43.2 billion through more than 1,275 home improvement stores in 49 U.S. states. It may be half the size of its biggest rival, Home Depot, but it is nevertheless eight times larger than RONA and six times the size of Canadian Tire. But while Home Depot is the market leader in Canada and Mexico (after more than a decade here, it owns about 15% of the Canadian retail home improvement market), Lowe's had yet to establish itself internationally, until now.

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Mark Foote becomes head of Loblaw

TORONTO.—Mark Foote has been named president and chief merchandising officer of Loblaw Cos. Ltd., responsible for all food and general merchandise sourcing, procurement, merchandising, information systems and supply chain activities. Foote replaces John Lederer, who has stepped down from the position of president "by mutual agreement," according to a release. The appointment is part of a restructuring announced by company head W. Galen Weston, who is stepping down from his role as chairman of Loblaw Cos. He'll be succeeded by his son, Galen G. Weston as executive chairman of the giant grocery and general merchandise retailer. Galen the younger was formerly senior vice-president, corporate development. Foote hot-footed it out of Canadian Tire back in April 2006 to join Loblaw as executive vice-president, general merchandise. He had been president of Canadian Tire Retail, and considered by many to be next in line for leadership of the entire company. At Loblaw, he was in charge of all procurement and merchandising activities in the general merchandise business. His expertise in operations and merchandising was welcomed at Loblaw, which was having big troubles with its distribution following consolidation of operations into a new head office in Brampton, Ont. In addition, Loblaw has set its sights on increasing its general merchandise offerings to better compete with Wal-Mart, which is growing its grocery business in Canada. Besides these executive changes, Allan Leighton has joined the board as deputy chairman. A longstanding advisor to the Weston family, Leighton has also been appointed deputy chairman of Loblaw's parent company, George Weston Ltd.

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Short-handed, FCL asks suppliers to ship direct

SASKATOON—The high demand for workers’Äì-and the disproportionately high wages being paid—on Alberta's Oil Sands have drained the province's labour pool. Unable to compete for staff, many retailers and service companies have simply gone out of business. Now that shortage is being felt in larger operations, including the Calgary distribution centre of Federated Co-operatives Ltd. FCL, the giant farm, grocery and hardware co-op based here, wants vendors to help by bypassing the warehouse altogether whenever possible. In a letter sent last week to vendors, Rod Baergen, general merchandise department manager of FCL writes, "Over the past number of months our Calgary General Merchandise Warehouse has felt the impact of the current labour shortage in the province of Alberta. This labour shortage has affected our ability to deliver goods to our retails on the regular schedule we have been used to in the past." Under the new system, vendors who currently supply product to the Calgary distribution centre are being requested to set up a direct ship program, as well. According to Baergen, all invoicing would continue to be processed through head office in Saskatoon. However, no special terms are offered vendors for going direct. Rather, shipments will continue to be made "under the current arrangements with your company."

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Home Hardware finds growth through existing dealers

ST. JACOB'S, Ont.—When Paul McCann spoke to his fellow dealers at a breakfast meeting during last week's Home Hardware Fall Market here, he talked about his expansion to three stores. The dealer, from Penticton, B.C., typifies the new model for successful growth—square footage through existing dealers, rather than relying solely on recruitment. "There's a certain segment of our dealers that understand there is potential to open second or third stores," said Bill Ferguson, dealer support manager for Home Hardware. That kind of growth is something that the dealer-owned co-op is eager to support. "We have a whole network. Every department can get behind someone like Paul to help him manage and forecast. All the tools are there." Often, family members are integral to this kind of expansion. Ferguson mentions the Home Hardware dealer in Perth, Ont. Bob Ellard, a former Canadian Tire manager, saw an opportunity to add another store when his son joined the business. In his latest move, Ellard consolidated those two stores into one 45,000-square-foot building centre that had its grand opening this past spring. A Home Furniture outlet was added to the mix, as well. It is operated by Ellard's wife and daughter.  Creating a presence in a specific market that maximizes that market—whether the store is 45,000 square feet in size or 10,000 square feet—represents the new model for Home Hardware's expansion, says Ferguson.

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Giardini gets vp job at Weyerhaeuser Canada

VANCOUVER—At Weyerhaeuser Co., Anne E. Giardini, 46, has been appointed vice-president and general counsel for Canada, effective immediately. Giardini previously served as assistant general counsel and assistant corporate secretary for Weyerhaeuser in Canada. During that time she played a key role in a number of transactions, including the acquisition of MacMillan Bloedel in 1999, the divestiture of the BC Coastal Group in 2005, and the recent combination of Weyerhaeuser's Fine Paper business with Domtar Inc. In her new role, she reports directly to Sandy D. McDade, senior vice-president and general counsel for Weyerhaeuser, and will continue to be based in the company's Canadian head office in Vancouver. Giardini holds a B.A. (Economics) from Simon Fraser University, an LL.B from the University of British Columbia, and an LL.M. from Trinity Hall, University of Cambridge.

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Newell Rubbermaid to sell European décor business

ATLANTA—Newell Rubbermaid, the giant home improvement products supplier, has signed an agreement to sell portions of its Home Dˆ©cor Europe business to Hunter Douglas, the manufacturer best known for its window treatments. The sale, according to a prepared statement, will include Newell's operations in Portugal, the Nordic countries and in Central and Eastern Europe. Newell had previously sold off its Home Dˆ©cor business in the United Kingdom, and is looking for buyers for its dˆ©cor businesses in Western Europe. Newell Rubbermaid placed Home Dˆ©cor Europe under "discontinued businesses" on its balance sheet in late June. The biggest part of what Hunter Douglas has agreed to buy makes drapery hardware and window treatments that Newell sells under its Gardinia brand and a few other labels.  Hunter Douglas is taking a minority stake in the management buyout of this business. The transaction is scheduled for completion by year's end.

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Electronic fence company will supply prisons

MINNEAPOLIS—While it's typically found on farms to hold back livestock, electronic perimeter security fence products made by Zareba Systems Inc. will be installed at several federal prisons throughout the U.S. Through its exclusive distributor, SIGCOM-GDI Fencing Solutions in Greensboro, N.C., Zareba was awarded the contract by the Federal Bureau of Prisons for prisons in North Carolina. Zareba developed a product specifically for use in the federal prison project in association with GDI. The electronic perimeter security fences will be manufactured at the company's Ellendale, Minn., facility and shipped sometime next year. Zareba expects the deal to be worth more than $500,000 in sales as a result of the Federal Bureau of Prisons' contract with GDI.

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