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Michael McLarney, President & Editor mike@hardlines.ca Beverly Allen, Publisher bev@hardlines.ca John Caulfield, Contributing Editor Phone: 416-489-3396 |
September 22, 2008, Vol. xiv, #35 |
In This Issue | ||||||||||||||||||||||||||||||
“It’s only possible to live happily ever after on a day-to-day basis.” —Margaret Bonanno (American science fiction novelist, 1950- ) |
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U.S. dealer will lay out challenges of surviving tough times | ||||||||||||||||||||||||||||||
TORONTO — A major U.S. pro dealer that weathered the grinding downturn in the U.S. economy will share his story and his insights with Canadians at the 13th Annual Hardlines Conference. Mark Scherer, COO of Scherer Brothers Lumber in Minneapolis, watched sales tumble and his business threatened as the housing market in his area evaporated around him. Yet, two years later, his company has survived — and is operating more efficiently than ever.In its heyday, Scherer Brothers Lumber, a third generation, family-owned dealer with five yards, had gross annual revenues approaching $247 million. According to Scherer, up until 2004 his company had enjoyed 14 years of unprecedented growth. “The housing market and economy at large were incredibly strong. I had no reason to think that I should plan for a downturn — let alone a downturn of mammoth proportions.”
Effective planning enabled the company to survive, even though in just three years sales have tumbled to almost half of what they were and staff has been reduced by almost the same amount. “The most important thing is to have a Disaster Recovery Plan in place, based on multiple scenarios,” Scherer says. “If you start thinking about what you need to do once you’re there, then you’re too late.”
Scherer Brothers reduced staff, and then invested heavily in the people who remained. It re-examined its customer base, focusing on those customers that were most profitable on a net income basis. One smart decision the company made in the early part of the decade was to cater to a wider contractor base, not just large tract and package builders. “In around 2000-2001, there was a big push in the industry, and within our company, to service the large national builders exclusively. However, we remained committed to serve the custom installer and mid-range builder, even though they require more customer service.”
Mark Scherer will speak at the 13th Annual Hardlines Conference, Oct. 23-24, 2008 at the Renaissance Toronto Airport Hotel and Conference Centre. He joins a raft of leading retail leaders, including Ray Griffith, President and CEO of Ace Hardware Corp.; Greg Hicks, CFO of TSC Stores; Chuck Côté, Vice-President, UFA Co-operative Ltd.; Greg Dinsdale, Senior Partner of LBMX; retail guru Anthony Stokan of Anthony Russell & Associates; and Yves Gagnon, President and CEO of Groupe BMR. For more information, click here.
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City votes against proposed Lowe’s Canada site | ||||||||||||||||||||||||||||||
KINGSTON, ON — Lowe’s has been turned down in its bid to secure a site in this city’s west end. The land is zoned commercial, not retail, and city council voted 7-6 against changing the zoning in Lowe’s favour, despite the lure of some $350,000 in annual taxes and upwards of 170 new jobs.The industrial land in question, although considered in short supply, is already surrounded by other retailers, such as Wal-Mart. The giant retailer, which opened its first stores in Canada in December 2007, has 30 days in which to file an appeal. Kingston, a prosperous college town with a lot of ties to the nation’s capital (Ottawa is about two hours away), already has a Home Depot and a RONA big box. Lowe’s has traditionally set up stores in proximity to Home Depot. It’s been aggressively seeking sites across Canada and has been in discussions with property developers as far west as Vancouver. | ||||||||||||||||||||||||||||||
Canadian Tire develops new formats in face of sagging sales | ||||||||||||||||||||||||||||||
TORONTO — Although Canadian Tire Retail edged up 1.5% in its second quarter, same-store sales were down 0.5%. As the economy slows down, the giant retailer is looking for ways to expand its retail markets. Two distinct retail formats are being tried out, one that goes downtown, and one for smaller towns.![]() |
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Home Depot will cut prices to attract customers | ||||||||||||||||||||||||||||||
ATLANTA — In an effort to revive faltering consumer spending and recapture market share in the U.S., Home Depot is reducing prices on 1,200 items in its stores. The price drops, which range from 5%-50%, were being introduced last week, backed by advertising that touts “guaranteed low prices, even lower”.The need to gain market share has been underscored by Home Depot’s results: sales in the second quarter were down 5.4% and same-store sales were down 7.9%. But any move by the world’s biggest home improvement to become the Wal-Mart of home improvement could spark price wars with competitors like Lowe’s and RONA, resulting in eroded margins. Home Depot is also examining its merchandise mix, reducing multiple brands on some lines, such as bath fittings, and eliminating others, such as apparel, all together. | ||||||||||||||||||||||||||||||
National Hardware Show lures back national brands | ||||||||||||||||||||||||||||||
NORWALK, CN & COLUMBUS, GA — Char-Broil, LLC, a brand leader in the gas grill sector, will return to exhibit at the National Hardware Show next year. This marks a return to the show, being held May 5-7, 2009 at the Las Vegas Convention Center, after a six-year absence.Char-Broil will occupy an inside presence on the show floor within the Lawn & Garden World section of the show, anchoring a new outside feature area that will showcase hands-on testing and education covering “what's new” in grills, outdoor furnishings, accessories, storage, and coverings. The new section is called the “ Stay-Cation Marketing Center”. According to Ed Several, group vice-president for the National Hardware Show, the show is working hard to listen to vendors’ concerns and help them connect with retailers and buyers. “We are making major changes to inspire manufacturers and retailers with new ideas, education and — most importantly — new products to jump-start sales in a challenging marketplace,” he said. “The new Stay-Cation Marketing Center is the first of many new areas that we have planned that are specifically designed with our customers’ needs at the forefront.” | ||||||||||||||||||||||||||||||
The Bay unveils “green” store | ||||||||||||||||||||||||||||||
WATERLOO , ON — The Bay has opened a 120,000-sq.ft. Bay store at Conestoga Mall, the first green Bay location in Canada.Among the store's many environmentally efficient features:
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Does your company have a strategy to grow as the economy slows down? Come to the 13th Annual Hardlines Conference for the competitive information you need to grow in the months ahead. Learn from the industry’s best: Oct. 23-24, 2008 in Toronto. Click below for more info. —Beverly |
Speakers - Registration
Questions contact Brady at 416-489-3396 |
COMPANIES IN THE NEWS |
NEW YORK — Home Depot’s $600 million ad business is currently up for review and at least six agencies have responded to the RFP. According to Adweek , the RFP states that, “in the past five years Home Depot has ‘lost its competitive advantage on all key brand drivers’ and now compares unfavourably to Lowe’s on shopping experience and is about equal in terms of products, inspiration, price and experience.” The short list of agencies has been identified as Interpublic Group units McCann Erickson; Holliday, Connors, Cosmopulos; WPP Group units JWT and Grey; Omnicom Group's GSD&M Idea City; and the incumbent, The Richards Group. Home Depot is expected to choose the new agency in November.OTTAWA — Preston Hardware, a major independent in the National Capital Area, had ![]() ![]() |
PEOPLE ON THE MOVE |
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ECONOMIC INDICATORS |
The manufacturing sector saw an increase in sales in July, rising 2.7% to $54.1 billion. This was the fourth consecutive monthly increase. Overall, 17 out of the 21 manufacturing industries increased compared with June, accounting for over 97% of total sales. Most of the sales gains in July were due to higher volumes, in contrast to the price-induced increases observed in recent months. In 2002 constant dollar prices, July sales increased 2.0% to $48.2 billion, the highest level since November 2007. (Stats Canada)Canada , the largest wood supplier to the U.S. market, shipped 17% fewer wood products to the U.S. in 2007; shipments by non-Canadian suppliers (including those from Europe, Australia and New Zealand) were down by 35%. ( U.S. Western Wood Products Association) |
Resumés |
Posted Sept 2 A proven sales record with key national accounts and their independent dealers in the hardware, building materials, and paint industries and superior business development skills. |
Posted July 14 Highly effective relationship management skills with a track record of developing and executing programs effectively. Strong strategic thinking and management background. Solid propensity for team building, coaching, mentoring and developing others. A competitive manager with a proven sales, marketing, merchandising and, leadership record. |
Hardlines Products |
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