September 27, 2010, Volume xvi, #37

“Ours is a world where people don’t know what they want
and are willing to go through hell to get it.”
—Don Marquis (American humourist, journalist and author, 1878-1937)

TIM-BR MART and IRLY plan expanded hardlines distribution

SURREY, B.C. — TIM-BR MARTS Ltd., along with its sister buying group IRLY Distributors, has plans to increase its own hardware distribution network, using IRLY’s own distribution centre here.

The latest “import show” held by TIM-BR MARTS Ltd. earlier this month reflects the group’s growing involvement in hardlines sourcing. On Sept. 9, at the office and distribution centre of its sister buying group, IRLY Distributors Ltd., TIM-BR MART, in conjunction with IRLY, held the last of five such shows (as reported in last week’s incredible issue! —Editor), aimed at introducing new ranges of hardlines products to the groups’ dealer members.

TIM-BR MART had invited IRLY to attend China’s largest buying show, the Canton Fair, last April, and buying teams from both groups headed over to China. A container load of samples was subsequently shipped back to Halifax for the first of the shows.

Products sourced through this event will be brought into IRLY’s warehouse here in Surrey to serve Western dealers, while CanWel, Hardware Division’s facilities in London, Ont., and Victoriaville, Que., will supply product to members in Central and Atlantic Canada. They will include tools, patio furniture, shelving and storage, and garden supplies.

Most significantly, the latest move indicates a growth of IRLY’s distribution beyond its own market in British Columbia. According to Catherine Brownlow, spokesperson for IRLY, the group is planning to begin shipping into Alberta as a way to expand distribution to fellow TIM-BR MART dealers there. IRLY is expected, under this new arrangement, to eventually supply dealers as far east as Saskatchewan.

The group’s Surrey distribution centre is expected to add to its assortments as its geographic reach broadens.

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Calgary opening is Lowe’s first in Western Canada

    TORONTO — Lowe’s Canada’s first store opening of 2010 – and its first store outside of Ontario – took place last week in Rocky View, a suburb on the north side of Calgary.

Located in CrossIron Common at 261199 Crossiron Blvd., the store comprises 103,000-sq.ft. of retail selling space plus a 31,600-sq.ft. garden centre. Featuring more than 40,000 SKUs, the store represents an investment of $20 million in the community and will reportedly provide more than 160 new retail positions.

“Today marks the beginning of Lowe's expansion into Western Canada," says Alan Huggins, president, Lowe’s Canada. "With our new CrossIron store, Lowe's is bringing outstanding products, services and customer service, in addition to significant economic and community investment to the Calgary area.”

Lowe’s last openings were in Ottawa and Sudbury, Ont., in December 2009. The company has developed a pattern in Canada of opening usually in either the fall or winter, usually before its year end of Jan. 31. The next openings are expected to be back in Ontario, beginning with London.

With 17 stores now, and more than 2,800 employees, Lowe’s Canada plans to open up to 100 stores in this country over the next six years.

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Succession planning key to RONA’s recruitment strategy

TORONTO — “Seventy percent of independents in Canada don’t have a succession plan.” That single comment from RONA SVP Jean-Luc Meunier at last week’s Executive Breakfast effectively underlines the direction of RONA’s strategy to support dealer recruitment.

Meunier, who heads up Affiliate Dealer-Owner Network Development for Canada’s largest home improvement retailer, told a roomful of retailers and vendors, “We need to support our dealers when they come to succession.” Young dealers taking over the family business face tremendous pressures, he says. Not only must they keep the business going, but they must pay back the previous generation.

Just 40% of companies continue into the second generation, he said, and that shrinks to 10% by the third generation. One company that has successfully made it to the third generation is Moffatt & Powell, a London, Ont.-based independent chain that recently joined RONA as an affiliate member. David Powell, along with his daughter Nancy Quinn Powell and her husband D’Arcy Quinn, were on hand to offer their testimonial for RONA’s support for independents.

RONA’s program to support dealers into the next generation consists of a funding piece, financed by a $100 million fund created by investment from five banks and from RONA itself. That fund supports activities in human resources, real estate, and a legal framework all aimed at helping young dealers get off on the right foot.

Four projects have already been completed under RONA’s succession program; 15 files are currently under consideration, while four requests for more information are also being reviewed.

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Advertising ramps up at Home Hardware Market

ST. JACOBS, Ont. — Home Hardware actually increased ad spending during last year’s recession. The result was more bang for its buck, as ad buys were better with media willing to make deals. More importantly, the company’s message had less clutter to combat as other companies pulled back their ad spending.

According to Jack Baillie, director of advertising for Home Hardware Stores Limited, the company is continuing to reinforce its message of “Home owners helping homeowners.” A new TV ad, being launched today, puts new emphasis on Home’s building materials offerings. While hardware, tools and home gadgets often figured prominently in its ads in the past, this new spot shows views of dealers’ lumberyards and the claim (perhaps a bit over-zealous) that “We are Canada’s largest lumber and building materials retailer.” It ends with a special offer on Owens Corning insulation.

Another highlight of Baillie’s initiatives for the coming year is a deal with its loyalty plan partner, Aeroplan, which gives users the option to redeem points for a Home gift card as well as for travel.

Baillie says his department is increasing its range of promotional and optional flyers. “As we grow, the millions [of flyers] increases, so more stores, more flyers.” The flyer programs work well in conjunction with Home’s online presence, says Baillie. “We don’t offer e-commerce yet; certainly that will happen in the years ahead. But customers are educating themselves before coming into the stores.”

(For an interview with Jack at the recent Home Hardware Market, click here. —Editor)

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