September 21, 2015 Volume
xxi, #35
“The moments of happiness we enjoy take us by surprise. It is not that we seize them, but that they seize us.”— Ashley Montagu (British anthropologist, 1905-1999)
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Lowe’s plans Quebec vendor day as it eyes new markets
TORONTO — A planned day of meetings for Quebec vendors by Lowe’s Canada indicates that company’s desire to do business with suppliers from la belle province. But is the giant retailer ready to expand into Canada’s second-largest market?
“Canada is an important, stable market that keeps growing,” says Lowe’s Canada president Sylvain Prud’homme, noting that Quebec accounts for almost one-quarter of that market. And with nine consecutive quarters of positive same-store sales growth—eight of them in double digits—Prud’homme believes his company is in step with that growth.
Meanwhile, he is keeping an eye on the Quebec market. For now, that means formal meetings with Quebec vendors. The meetings, which are slated for November 5, could be considered a first step in getting to understand that market better.
“Yes we are starting to look seriously into the opportunity,” says Prud’homme, “and as we get engaged with the [Quebec] community and we learn from that market we will determine the right timing for the entrance.”
He does admit that initial growth for the company when it entered Canada in 2007 was “slower than expected,” but that slowdown has proved beneficial. It helped Lowe’s prevent making the kinds of mistakes that hammered Target when it tried unsuccessfully to expand into this country.
(Quebec vendors who wish to participate can get more information by clicking here. —Editor)
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Castle adds three members over the summer
MISSISSAUGA, Ont. ― Over the summer, Castle Building Centres Group added three new member locations: Interlake Glass in Arborg, Man.; VONR Hardware in High Prairie, Alta.; and South Parry Lumber, Parry Sound, Ont.
Castle’s mandate to support independents on their own terms, leaving them to promote their own local banners, continues to have resonance for dealers. “The continued growth of Castle is no coincidence. It is a direct result of the Castle business model and the message that new and existing Castle members are sending to the industry,” says Castle President Ken Jenkins, adding that Castle goes to market as “a secure and transparent buying group.”
Interlake Glass located north of Winnipeg, a new Castle Specialty store specializing in windows, doors and glass, and custom cladding, roofing and mouldings. The owner is Chris Eyolfson, who purchased the existing store and warehouse in 2012. He plans to add an additional 2,000 square feet of retail and 1,000 square feet of warehouse.
VONR Hardware is northwest of Edmonton, in the industrial town of High Prairie. Co-founders Trever Sekulich and Debra Wales have been owner operators for more than 11 years, and moved to Castle when they decided to expand into lumber and building materials.
In Ontario cottage country, Mike Argue and Neil Tucker acquired South Parry Lumber in Parry Sound in August. The store will hold a grand re-opening later this fall.
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Dealers drawn to RONA show by new products, simpler corporate structure
MONTREAL — The second annual show for its independent dealers provided a preview of the company’s spring lineup, including a revamped lighting department and expanded lawn and garden assortment.
The show, held September 10 and 11 at Montreal’s Palais de congrès, featured several outdoor furniture sets in the middle of the floor, including more high-end collections. A new line of lighting included a nostalgic look with Edison light bulbs and vintage fixtures, showcased in a lower light cloud to enhance a sense of intimacy in the store. Dealers could also take advantage of a new mix-and-match program for lamps and shades.
These assortments, tailored for independents, are among the efforts RONA is making to secure its affiliate dealer base―and attract new dealers. More than a dozen prospects attended the show, and RONA has recruited 26 new dealers so far this year. In addition, RONA has removed a layer of dealer involvement by purchasing its franchised dealers in Quebec.
“We’ve simplified the business. They see where we’re going,” says Luc Rodier, executive vice president of RONA. “We’ve proved that the dealers are an important part of our strategy going forward.”
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Tembec faces investor unrest as share prices drop
MONTREAL — Prem Watsa, dubbed “Canada’s Warren Buffett,” is Tembec’s biggest shareholder—and if its fortunes don’t improve, he may be its saving grace. Bloomberg News reports that shares in the forestry company plunged after it warned investors that without a turnaround, it risks breaking the terms of a bank loan.
Running out of options, the firm may have to resort to a bailout from Watsa’s Fairfax Financial Holdings, if its own bankers don’t cut it a break, says Ed Sustar, who rates Tembec for Moody’s Investors Service. “Fairfax is behind all of this debt that’s on Tembec’s balance sheet, so they have the ability to lend them money,” he told Bloomberg. “We’re kind of at crunch time.”
Tembec, which has been struggling with falling sales, is responding to investor pressure by issuing an optimistic earnings forecast as its fourth quarter draws to a close. The forest product manufacturer is expecting that EBITDA for the quarter ending September 26 will rise to between $31 and $34 million from $2 million in the previous quarter. Operating earnings will be in the range of $19 million to $22 million in the September 2015 quarter, as compared to an operating loss of $11 million in the June 2015 quarter.
The June 2015 quarterly results had been negatively impacted by significant planned major maintenance activities at the Temiscaming, Quebec, and Tartas, France, complexes. There will be no significant planned major maintenance in the September 2015 quarter. The decrease in the relative value of the Canadian dollar is also contributing to the more favourable operating results.
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FROM THE ARCHIVES: This week in 1995
The addition of a West Coast buying office results in some changes in Home Depot Canada’s buying team. Eric Schmidt is put in charge of lumber and building materials (he would be Western regional VP three years later, then go on to head up Southwire), while Mike Daniels (now GM at Spancan) takes over the flooring and paint portfolio. Also: Rubbermaid results suffer, due in part to its woes with Wal-Mart; and Hudson’s Bay earnings decline. Blame Wal-Mart for that, as well. Click here to read these blasts from the past!
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At Home Hardware Stores Limited, Laurie Wittie has accepted the position of store design manager, effective September 14. Laurie has been serving as the assistant manager, visual merchandising in Store Design.
At Lowe’s Cos., Jocelyn Wong has been named senior vice president and general merchandising manager for the company’s seasonal product business area, effective October 12. She will be responsible for merchandising strategies for the lawn and garden, seasonal living, and outdoor power equipment divisions. Wong joins Lowe’s from Family Dollar, where she served as SVP, chief marketing officer. She will report to Chief Merchandising Officer Michael P. McDermott.
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CLASSIFIED ADS
Product Merchandising Coordinator – Retail (St-Jean-sur-Richelieu, QC)
The Product Merchandising Coordinator is responsible for the structure and positioning of the product lines in accordance with regional electrical codes requirements (residential and light commercial markets) by accounts. He has an excellent understanding of the major home improvement retailers.
Responsibilities
- Serve as product expert
- Manage the product portfolio according to performances objectives
- Produce analysis with multiple inputs
- Develop excellent collaboration with the Sales team and excellent communication with internal and external clients
Projects
- Develop the product structure for the introduction of a new line of products including all related activities
- Participate in the development of added value strategies in consideration of line revisions
- Develop planograms for each client and product line
- Identify and coordinate cost saving projects
- Identify and communicate stock management improvement projects according to the clients’ needs
- Prepare a price list based on price increases or reductions, according to the established strategy
Qualifications
- College Diploma or Bachelor Degree in Marketing
- 5 years of experience in portfolio management or similar experience
- French and English: written and spoken
- Organization and excellent ability to manage and perform multiple tasks
Thank you in advance for sending your resume to hr_canada@tnb.com, quoting the position title in your email.
For further information on our company, please consult our web site at www.tnb.ca.
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