September 14, 2015 Volume xxxiv, #34

“There is nothing noble in being superior to your fellow men. True nobility lies in being superior to your former self.”—Ernest Hemingway (American author and journalist, 1889-1961)

IN THIS ISSUE:

• RONA show focuses on buying opportunities for independents

• Atlantic buying expo attracts Castle members to Charlottetown

• Young leaders will weigh in on succession, empowerment

• RONA plans more openings for 2016

• PLUS: Cobourg Home Hardware to double in size, Lowe’s money loser in Australia, Home Depot’s “strong growth” in e-retail, Wal-Mart’s Neighborhood Market a hit, changes to buying team at Home Hardware, housing starts in August —and more!

RONA show focuses on buying opportunities for independents

MONTREAL — Turnout was strong and the attitude upbeat at the latest RONA dealer show, held in Montreal last week. According to show organizers, the event attracted about 85% of the company’s independent, or affiliate, dealers, as well as store managers from across the country. That included RONA, Reno-Depot, and Ace-branded stores, as well as more than a dozen prospects from other banners.

Held at Montreal’s Palais de congrès, the show floor was 20% bigger than last year and included an additional 50 vendors. Featured areas included an expanded, higher-end seasonal department and a revamped lighting program.

Dealers interviewed at the show all expressed their satisfaction with the availability of new products, special buys (from four “Deal Zones” throughout the show), and ease of ordering, which could be done electronically. Each store was provided with a tablet that let them order online.

Roy Perkins, a RONA dealer from Cornwall, Ont. (shown above), was enthusiastic about the entire experience. “It’s a buying show. I love it,” he said. “The iPad orders go right to our store’s order system, and a purchase order is created right away.”

Atlantic buying expo attracts Castle members to Charlottetown

CHARLOTTETOWN — Castle members and vendor partners from Atlantic Provinces and across the country teamed up last month in Charlottetown for the group’s 2015 Atlantic Region Buying Expo. Bob Delaney, business development manager for Newfoundland and Labrador, and Terry Mulock, who covers the Maritimes, along with representatives from Castle’s head office, welcomed some 250 guests to the Delta Charlottetown for the event.

The Buying Expo gives vendors 10 minutes of face time with each of the dealers in attendance. Castle introduced a new online buying platform that allows vendors to offer regional, time-sensitive, special promotions and buys in real-time. The paperless buying tool enabled Castle members to use tablets and laptops to take advantage of localized savings and pallet buys.

Young leaders will weigh in on succession, empowerment

TORONTO — Every new generation brings fresh, new ideas to the industry. But how can you recognize, inspire, and empower young leaders to take charge and turn those ideas into innovative policies and strategies?

Join us at the 20th Annual Hardlines Conference on October 21 and 22 for a panel discussion featuring some of this industry’s bright young leaders from across the country and from all levels: dealer, vendor, and corporate retail, while they weigh in on the needs and drives of the home improvement industry’s new generation. Moderated by Sherri Amos, the director, Dealer Support, at Home Hardware, the panellists will answer the burning questions about where they see this industry headed.

Preparing to pass on the torch to a younger generation is top of mind for many industry leaders. But along with current technology, the necessary knowledge and skillsets have evolved rapidly. In addition to navigating the fields of social media and e-commerce, there’s a need to draw in not just a younger generation for the family business, but also to attract young people that may never have considered a career in home improvement.

For panellists Jillian Sexton from Hector Building Supplies and Ryan Emmerson from Cottage Country Building Supplies, joining the family business was always the plan. But Vanessa Morin from Mountain View Building Materials and Matthew Raetsen from Mitten by Ply Gem didn’t always know they’d be so passionate about a career in the home improvement and hardware industry. Rounding out the panel will be Steve Wilson from Canadian Tire, who started his career in the industry as one of Lowe’s Canada’s first employees.

While they’ve each ended up in the industry through various experiences—both personal and professional—each of the panellists agree that there’s something special about the home improvement industry that has kept them here. How are they and their peers going to bring the industry forward? Join us at the Hardlines Conference to find out.

(Click here for more information on the conference and the full lineup of speakers.)

RONA plans more openings for 2016

BOUCHERVILLE, Que. — RONA says it will open 10 new stores in 2016, including at least one Reno-Depot. It is also working on a new concept for its other big boxes.

RONA rolled out a new concept for its 17 Reno-Depot stores in Quebec last year. Two other big box stores, in Calgary and Aurora, Ont., that had formerly been closed, were also been reopened as Reno-Depots (but with the accents dropped from the logo).

RONA says it will continue opening the new-format big boxes, but on a more measured basis. The next one will be in Quebec.

RONA is also working on another format, one that will modify its traditional big box stores. Luc Rodier, executive vice president of RONA, says the first store in this format will open in Anjou, Que., by year’s end.

The remaining openings for next year will be proximity stores, up to 50,000 square feet in size.

FROM THE ARCHIVES: This week in 1995

Ace’s attempts to grow its presence in Canada date back decades. Check out the headline from our September 18, 1995 edition: “Ace still keen on Canada.” Back then, currency exchange rates posed a problem for U.S. distributors, just as they do now. Plus: Home Depot sets up an office in Western Canada, headed up by none other than James Jones (now VP at Castle); and the beginning of a fine HARDLINES tradition: our Corrections! Click here to read these nuggets from 20 years ago!

DID YOU KNOW…?

…that the Early Bird Special Pricing for our 20th Annual Hardlines Conference ran out on Friday? But no worries—sign up before 5 p.m. today and you can still save up to $135 on your registration at this incredible event, which takes place October 21 to 22. Click here to register now!

RETAILER NEWS

COBOURG, Ont. — The owners of Cobourg Home Hardware and the Home Hardware Building Centre, Joel Curtis and Brad O’Neill, are building a new Home Hardware Building Centre that is scheduled to open early next year. According to Northumberland Now, the new store will be 76,000 square feet, including 37,000 square feet of retail space, almost double the size of the two existing stores.

SYDNEY —In the wake of continued disappointing results from Australian retail giant Woolworths—including a string of high-profile resignations, speculation is mounting about who might acquire the Masters Hardware joint venture it shares with Lowe’s. The Sydney Morning Herald declared Wal-Mart “[o]ur bid for most likely bidder,” should Masters go on the market. Woolies and Wal-Mart already have some overlap at the highest levels: former Woolworths CEO Roger Corbett sits on Wal-Mart’s board while Wal-Mart U.S. CEO Greg Foran is also a Woolies alumnus.

ATLANTA — Home Depot reported “strong growth” in e-retail during Q2, as online sales rose by about 25%. The company also paid attention to improving the experience of mobile customers and website functionality. The online channel accounted for 5% of sales for the quarter. The growth in e-retail demand has prompted the company to respond at the supply end, and its third direct fulfillment centre has begun receiving orders.

BENTONVILLE, Ark. — Walmart’s quarterly report included the announcement that the retail giant will focus less on small stores in an effort to stress “quality over quantity.” The smaller Neighborhood Market format has been a hit with customers, outperforming other Walmart stores for the past two years. They may have been a victim of their own success: Brian Yarbrough, an analyst at Edward Jones, suggested the markets may be “cannibalizing supercentres.” Building forecasts for new Neighborhood Markets have been cut by up to 20% and fewer than 120 new ones will be built between now and the end of the year.

SUPPLIER NEWS

ATLANTA — Forest products supplier Georgia-Pacific has forged a sales and distribution agreement with Lamco Forest Products, a producer of laminated finger-jointed lumber (LFL) products based in St-Félicien, Que. Lamco will manufacture several LFL products for Canadian and U.S. markets under the Georgia-Pacific brand. Lamco’s LFL products use a patented process combining double tongue-and-groove and finger joints to create a warp-resistant dimensional beam. The Lamco products are expected to complement GP’s existing engineered wood lines. In addition, they add “a product that helps meet fire-related codes being adopted in some of the geographies in which we sell,” said Paul Watterson, general manager for Georgia-Pacific’s engineered lumber business.

PEOPLE ON THE MOVE

Home Hardware Stores Limited has created three new merchandise positions. Dave Martin, Brian Straus, and Ron Van Rootselaar have been appointed as group merchandise managers, assigned to a specific portfolio, all reporting to Joel Marks, vice president, merchandise. Martin has been with Home Hardware for six years, serving as the hand and power tools product manager. In his new role, he will continue to oversee his existing department as well as the electrical, plumbing, and hardware departments. Currently building products and heating manager, Straus will continue to oversee this department as well as overseeing seasonal, yard décor and maintenance, sporting goods and automotive, household cleaning and commercial maintenance, allied building materials and farm, agriculture, pets, and rentals. Van Rootselaar has been the major appliances and room air conditioners product manager for the past three years. In his new capacity, he will continue in that role, and oversee the housewares and giftware, paint and décor, small appliances and electronics, furnishings, and general merchandise, and toys departments.

Kevin VanderWerf has been appointed national channel marketing manager at InSinkErator Canada, effective October 1. He reports to David Coffey, general manager. VanderWerf started with Emerson in 2002 as a product manager at ClosetMaid. After five years at ClosetMaid, he had a stint with a Canadian ladder manufacturer, then rejoined Emerson in 2011 as national account manager for the ClosetMaid sales department.

ECONOMIC INDICATORS

Housing starts in August were up 12.6%, to 216,924 units seasonally adjusted from 193,253 units in July. Urban starts seasonally adjusted increased by 13.6% to 201,312 units, driven by condos, mainly in Ontario, as multi-unit urban starts nationally increased by 19.5%. By comparison, single-detached urban starts increased by just 1.4%. (CMHC)

Employment was little changed in August, ticking up 0.1% as an increase in full-time employment was offset for the most part by a drop in part-time work. At the same time, the unemployment rate rose for the first time by 0.2% after holding steady at 6.8% for six consecutive months, as more people sought work. Compared with the same time last year, employment was up 1.1%. (StatCan)

OVERHEARD

“A store is not overhead. It’s a brilliant piece of infrastructure from which you can sell [your products] on the internet.” ―Gerald L. (Jerry) Storch, CEO of Hudson’s Bay Company. He spoke earlier this summer at the Retail Council of Canada’s annual Store Convention.

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