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September 1, 2014 Volume
xx, #32
“Success is going from failure to failure without loss of enthusiasm.” —Winston Churchill (British politician, and prime minister, military officer and author, 1874-1965)
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RONA turns around losses in second quarter
BOUCHERVILLE, Que. — RONA reported net income of $42 million in the second quarter, compared to a net loss of $144.7 million during the same period last year.
Second quarter revenues stood at $1.19 billion in 2014 versus $1.25 billion in 2013. The $55.5 million or 4.4% decline is a result of a $37.4 million or 4.2% decrease in retail segment and an $18 million decrease or 5.2% in the distribution segment.
Consolidated revenues from continuing operations amounted to $1.19 billion, down 4.4% from $1.25 billion for the second quarter of 2013. This decrease primarily reflects the closure of underperforming stores, a late spring in Quebec and Ontario which had an adverse impact on sales in the first half of the quarter, coupled with a decline in housing starts in Quebec.
Same-store sales in the retail segment were down 0.7%, narrowing the margin from negative 3.4% same-store sales in Q1. This latest quarter also marks the first time since 2010 that the company has reported positive same-store sales for its corporate stores across the country. This performance was driven by the strength of the Western Canadian market as well as the repositioning of the Totem banner in Alberta and the refurbishment of the Réno-Dépôt chain in Quebec.
In terms of expansion, the company intends to grow in a number of ways in the year ahead. That will include enlarging or reallocating existing stores and opening new stores, as the opportunity arises.
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U.S. Big box giants see Q2 sales and profits climb
MOORESVILLE, N.C. & ATLANTA — Lowe’s Cos. has reported net earnings of $1.04 billion for the second quarter, an increase of 10.4% over the same period a year ago. Sales increased 5.7% to $16.6 billion, from $15.7 billion in the second quarter of 2013, and year-to-date sales were $30.0 billion, up 4.2% over the same period a year ago.
Comparable sales increased 4.4% and year-to-date comps are up 2.8%. In Canada, Lowe’s delivered its fifth consecutive quarter of double-digit comps.
Home Depot also reported strong Q2 results, with profits up a healthy 14% on sales of $23.8 billion, a 5.7% increase. Comparable store sales were slightly ahead of Lowe’s, up 5.8%, and comp sales for U.S. stores were positive 6.4%. Net earnings were $2.1 billion, or $1.52 per diluted share, compared with $1.8 billion, or $1.24 per diluted share, a year earlier.
The company attributed improved weather conditions to increased sales of lawn and garden products, while appliance sales were also strong in the second quarter. Sales over $900, of washers, dryers, and water heaters, which account for 20% of Home Depot’s sales, were up by 8%.
Home Depot’s Canadian business had positive comps for the 11th consecutive quarter.
Lowe’s outlook for fiscal 2014 anticipates an increase in total sales of about 4.5%. Comparable sales are expected to increase approximately 3.5%. The company says it expects to open about 15 stores this year. Home Depot anticipates a slightly stronger year, with a forecasted sales increase of 4.8%.
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Orgill’s latest show draws Canucks despite timing
CHICAGO — Orgill’s fall buying show was held right in the middle of the busiest trading time for most dealers, but that didn’t stop about 100 Canadian independents from heading to the Windy City to attend the event.
As ever, the lion’s share of dealers came from Castle Building Centres, the buying group that Orgill formed its first agreement with on arriving in Canada. But other banners were represented, as well, reflecting the current turbulence in the Canadian market.
James Jones, VP marketing for Castle, says his dealers had their best July ever, with business catching up for them after a slow start to the year. Despite the busy summer, he notes that 95 Castle dealers came down to Chicago for the show, admitting, “It’s a tough time of year to get dealers out of their stores.”
Held at Chicago’s McCormick Place, the Dealer Market spanned 865,000 square feet, making it the largest show floor in Orgill’s history. In addition to its typical market-only deals, educational seminar lineup and new products, Orgill used the market to showcase category-specific displays for hand and power tools, winter and wild bird assortments, spring products, and popular MRO solutions.
One highlight of the show was “One Stop Hardware,” one of three model stores set up right on the show floor. This one, brand new for this show, featured a full assortment merchandised for stores with limited square footage. The store filled only 4,700 square feet, but used a number of space saving systems, such as pull-out drawers (shown here), sliding shelves, wing panels on endcaps, and overlapping displays. “If you took all of this product and merchandised it in a traditional way, it would take up 8,000 square feet,” says Jim Parker, a field marketing manager for Orgill.
“A good hardware store you need 8,000-10,000 square feet, but many dealers just don’t have the space,” he adds, pointing out some of the features of the model store. “Note the 84-inch height on the gondolas, so you can use the outer walls for stock and free up the floor for retail."
Endcaps are only two feet wide to leave room for wings to display more merchandise. “It can be done,” Parker concludes.
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Canadian Tire sales up, Medline takes CEO role
TORONTO — Canadian Tire Corp. reported consolidated revenue for the second quarter of $3.2 billion, up 4.8% from the same time last year. Retail sales for the quarter were also up 4.8%, to $3.7 billion.
Retail sales at Canadian Tire-bannered stores were up 3.4% and same store sales increased 2.8%. The company reported “solid sales across key seasonal and non-seasonal categories.” R etail segment revenue increased 4.7% or $129.9 million to $2.9 billion in the quarter.
At the same time, the company has announced that Michael Medline has been named president and CEO, effective December 1. He replaces Stephen Wetmore, who is stepping aside, but will remain on the board in a newly created position as deputy chairman.
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James Mumby sells Dynamic to U.S. distributor
SPARTANBURG, S.C. — The Merit Distribution Group will acquire Dynamic Paint Products, a 40-year-old family-owned distributor and manufacturer of paint-related products based in Toronto. Merit is the corporation that includes Lancaster, a full-line paint sundries distributor. It currently operates in the U.S., Mexico, Caribbean Islands, Central America, and South America.
Terms of the deal were not disclosed.
Dynamic, which was known for years as Mumby and Associates, has grown into a national manufacturer and distributor of paint products and accessories. It has also expanded its sales internationally. The acquisition gives Merit a foothold in Canada. Dynamic will operate as a wholly owned subsidiary of Merit and president James Mumby will continue to oversee Dynamic’s Canadian and international business.
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Classified Ads
At CGC Inc. we go the distance to provide The Better Way. Delivering building solutions for customers worldwide is our goal. Relationships are our foundation. Integrity, Dependability and Innovation are the standards by which we live.
CGC Inc., a wholly owned subsidiary of USG Corp., is a leading marketer, manufacturer and distributor of gypsum wallboard products, interior finishing material and suspended acoustical ceilings. With locations around the world, CGC and USG have the resources, plants, products and people to build walls, ceilings and careers.
We are currently seeking to fill the opening of: Manager, Technical Solutions and Quality.
Qualifications:
- Minimum 10 years of experience in building science, engineering, architecture or related field
- Post-secondary education in building science, engineering, architecture or a construction related discipline. Designation as a P.Eng., C.E.T., or C.T.R preferred
- In-depth knowledge of building materials, constructions processes, cladding, and roof systems
Valid driver's license and clean driving record
Excellent communication skills, both verbal and written.
- Excellent public speaking skills to present professionally to groups of all sizes.
- Bilingual - English / French an asset
- Overnight travel required up to 25%
This challenging position offers a competitive compensation package, comprehensive benefits package, a company auto and the potential for an annual bonus.
Interested applicants may find out more and apply by clicking here.
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Director, Retail Sales- Schlage
Leading a national team of sales professionals, the Director of Retail Sales, controls and directs all activities of the retail sales organization, ensures development of retail programmes to attain planned sales, productivity and budget compliance. Driving profitable growth through best in class category leadership, account management and flawless execution against our strategic plan
- Directs the domestic retail sales activities including, Big Box, LBM and e-Commerce
- Exercises management and sales initiatives which ensure that a competitive position is maintained within the market.
- Directs sales planning and provides input to market research activities.
- Reviews sales and forecasts.
- Makes recommendations for new products and changes in existing products
Experience
- Minimum 10 years related experience in retail or consumer packaged goods environment Big Box DYI preferred
- 5-10 years’ of progressive sales experience
- Minimum of 5 years’ experience in a senior position leading a sales team
- University degree preferred or an equivalent degree in a field of study related to the position
For more information about this position visit http://careers.allegion.com/ for more details.
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National Account Manager
Blount International, Inc. has an exceptional National Account Manager opportunity supporting our global headquarters in Portland, Oregon by representing our products to their assigned customer base within Canada.
This position has the primary responsibility to sell an established consumer goods product line to mass merchants in Canada. This means conducting all marketing functions through the entire sales channel. The job also requires collecting information that will enable the Company to react in a timely manner to competitive actions and market trends. The primary area for this position is in Southern Ontario, Quebec and Atlantic provinces.
RESPONSIBILITIES INCLUDE, BUT ARE NOT LIMTED TO:
- Developing and growing sales opportunities via an increase in sales and market share, while maintaining solid profits; Achieving sales targets and goals
- Calling on national and regional retailers, hardware coops and hardware distributors at their HQ location, as well as supporting those customers via field visits
- Ensuring that top selling products are represented in the retail line
- Reviewing inventory movement and cull the line of slow selling products – replace with faster moving products
- Identifying new products/new program growth opportunities
- Managing the day-to-day account management responsibilities
- Making certain that customer's website, catalogues, and rental locations product offerings are up to date
- Presenting marketing & advertising programs for all products
- Supporting our negotiated retailer programs in the field by meeting with individual retailers
For more information about this position visit http://www.blount.com Click on the tab Careers and choose Search Careers –Canada.
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