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CONNECTING THE HOME IMPROVEMENT INDUSTRY
September 28, 2020 | Volume xxvi, #36
IN THIS ISSUE:
  • National Hardware Show and conference will go live—and virtual—in two weeks
  • Shop-Vac’s demise not a reflection of how vendors are faring under COVID
  • NRHA expands membership, changes name to include paint retailers
  • FROM THE ARCHIVES: business conditions were soft 25 years ago this week

PLUS: Outdoor heaters are hot sellers, first-ever virtual Ace Canada show, Home Depot reinvents Black Friday sales event, Beauti-Tone announces Colour of the Year, Western rep for Liteline, IKEA Canada named one of Canada’s Greenest Employers, building construction increases, retail sales on the rise and more!

National Hardware Show and conference will go live—and virtual—in two weeks 

NORWALK, Conn. — The National Hardware Virtual Show will be held from October 12 to 15. In addition to a lineup of online exhibitors, the virtual show will feature educational programming focused on today’s challenges and trends.

It will be held in conjunction with the virtual All-Industry Conference, organized by the North American Hardware and Paint Association (NHPA). This year’s conference is presented with the theme “Industry Disrupters: How Today’s Leaders Are Winning the Retail Game.” Both events are free to dealers and buyers.

During the virtual show, attendees will be able to sync up their calendars and allow NHS to facilitate direct and virtual appointments between buyers and retailers and their suppliers, via Jublia, an event app. Additionally, attendees will get the chance to see and source the newest products and tools to help expand their current product offerings.

“Over the past few months, our team has had to rethink everything and open our minds to new, innovative ideas,” said Rich Russo, industry vice president, National Hardware Show. “We’re excited about our pivot to virtual, which allows us to bring our robust NHS programming to customers across the globe in a new, safe way.”

NHS is also working on plans to return to a physical show in Las Vegas next spring, with scheduled dates of May 11 to 13, 2021.

(For full details on the upcoming virtual NHS, click here.)

Hardlines
Shop-Vac’s demise not a reflection of how vendors are faring under COVID  

SPECIAL REPORT — The news recently that Shop-Vac is going out of business drew a lot of attention within the industry. The brand, which was synonymous with the wet-dry vac category, is closing its doors after 70 years in business. In statements to the press, the company blamed its demise on the challenges of an economy battered by the effects of the COVID-19 pandemic. It had set its hopes on being acquired by another company, but that deal fell through.

The fate of Shop-Vac does not, however, appear to typify the state of other vendors in the home improvement channel, especially in this country. While suppliers and retailers alike have felt the impact of the current crisis, hardware and home improvement has enjoyed more buoyancy than other retail sectors throughout the summer and into the fall.

According to Sam Moncada, president of the Canadian Hardware and Housewares Manufacturers Association (CHHMA), his members “are doing very well.” Moncada was surprised to hear about Shop-Vac, as his indications were that the company had been doing well—at least in Canada. “They were the ‘Kleenex’ of the wet-dry vac category. That’s how well-known they were,” he says.

Moncada believes the entire hardware and home improvement industry is on track to have a good year. “Everybody is stable. Everyone is making their numbers.”

In fact, vendors are having the problem of keeping up with demand, as the industry is benefitting from a populace that is stuck at home and willing to invest in their spaces to make living and working more amenable. “Most of our members are having issues keeping product in stock for the next three to six months, as everyone is drawing on their inventory. Their sales are all over expectations.”

Wolf Gugler, president of Wolf Gugler Executive Search, focuses on the hardware and home improvement industry. He evaluates the health of the industry based on how many individuals are in flux with their jobs. Early in the lockdown, he had a rash of calls from people who found themselves out of work. But by the end of the second quarter, things had settled down. “The flow of candidates who have lost their jobs due to COVID are few and far between now,” he says. He had only one executive search get put on hold due to the pandemic—and he fully expects that to resume in the near future.

One factor that has changed is the demand for people with digital experience. As the online sales at most retailers have soared over the past six months, being digitally savvy is a big plus for candidates. “The important factor now is the e-commerce experience,” Gugler adds.

The next challenge for vendors is how to prepare for the months ahead. As retailers draw on more inventory, everyone is stockpiling product whenever they can. Moncada at the CHHMA expects the rest of the year to be positive, even if forecasting remains uncertain for 2021. But overall, he says the outlook is positive. “If you’re well managed and you’re doing well now, you’re going to be okay.”

NRHA expands membership, changes name to include paint retailers 

INDIANAPOLIS — The North American Retail Hardware Association (NRHA) is broadening the reach of its membership to include independent paint and decorating store operators. And it’s changing its name to reflect this evolution.

The association will now be known as the North American Hardware and Paint Association (NHPA) and will represent the interests of all independently operated hardware stores and home centres, plus paint and decorating outlets, throughout North America. The change comes following the closure of the Paint and Decorating Retailers Association, an organization that NRHA had worked with for many years.

“Independent hardware stores and home centres share so much common DNA with independent paint and decorating retailers that this expansion of our membership can only benefit the industry as a whole,” says NHPA President and CEO Bob Cutter. “We are excited to offer paint and decorating retailers an expanded breadth of resources, and we look forward to combining all of their ideas and insights with the already strong pool of retail thought leaders from the hardware side of the channel.”

As part of this expansion, independent paint and decorating store owners and operators will immediately have access to all of the free programs and services already available through the newly named NHPA.

Former PDRA CEO LeAnn Day will be serving as NHPA’s executive director for NHPA paint and decorating programs, a newly created position. Dan Simon, a long-time fixture with PDRA’s publishing operations, will also continue to represent ​Paint & Decorating Retailer​ magazine to the industry. NHPA will take over producing the monthly publication.

“We want to make sure paint and decorating retailers have access to the programs and information they have come to rely on to run their businesses better and more efficiently, but also have them realize they are now part of a larger community with a broader range of resources and programs available to them,” Cutter says.

FROM THE ARCHIVES: business conditions were soft 25 years ago this week

NATIONAL REPORT — The lead story in Hardlines 25 years ago was a roundup of business conditions across the country. At the time, the industry was dealing with a slow housing market and a tight retail market.

In the West, IRLY Distributors, whose member-dealers carried the IRLY Bird banner, reported business slowing on Vancouver Island and in British Columbia’s interior region. That followed the group’s second-biggest August ever, according to General Manager Al Munro. On the other side of the country, John MacDougall, president of the AWARD buying group, admitted his members were contending with one of the worst housing markets in the country, especially in Newfoundland.

Both groups would merge into the TIMBER MART buying group over the next few years.

And at the TIMBER MART office (then called Tim-BR-Marts Ltd.), VP Merchandising David Mackenzie said his group had seen “a slight turnaround,” despite conditions. At Castle Building Centres, Pro Wylie was positive about his dealers’ performance overall, saying they had fared relatively well, despite pressure on margins due to growing competition.

Home Hardware had just had its fall market a week earlier and reported steady growth. However, the LBM side was below budget for the year to date, which was also blamed on slow housing starts.

Larry Tysoe at ILDC expressed the outlook of most groups when he said, “the regional picture is as bleak as the national one,” and expected his dealers for the year to “be about even.”

People on the Move

At Liteline Corp., Martin Parilak has joined the company’s Canadian regional sales team supporting customers in Western Canada. Parilak brings more than 20 years of electrical industry knowledge and experience to the lighting manufacturer, as both a distributor and agent.

DID YOU KNOW...?

...that more than half of all retail home improvement sales last year came from just four retailer groups? That is just one of the many statistics you’ll find in the 2020 Hardlines Retail Report. It’s your definitive guide to the state of the industry, with in-depth analysis of the industry’s key players, breakdowns by province and store format and forecasts for 2021. Hardlines subscribers save more than 20 percent on pricing, so be sure and take advantage of this! Click here now to learn more and order yours!

RETAILER NEWS

RED DEER, Alta. — Ace Canada held its Virtual Buying Show over two days last week. It was the first virtual show for the banner’s approximately 100 dealers, and their first show since Peavey Industries acquired the Ace licence and distribution business back in March. Peavey is supplying all Ace Canada dealers’ hardware and farm needs out of its Red Deer, Alta., and London, Ont., facilities.

KITCHENER, Ont. — Retailers are selling out of outdoor heaters as restaurateurs seek to prolong the patio season for as long as possible to mitigate the pandemic’s hit on their revenues. “Whenever the demand is that high for something it’s just really difficult to find them anywhere in town,” said Zach Haime, manager of Swanson’s Home Hardware in Kitchener. “[The] supply chain took a hit and everything is backed up. They’re trying their hardest to get everything going.”

ATLANTA — Home Depot will not hold its usual Black Friday event this year, opting to offer seasonal discounts during November and December rather than promote a one-day surge in store traffic. The retailer published a statement on its website explaining that pandemic safety considerations influenced its decision to “reinvent” Black Friday, which has already been transitioning into a more digital event. Deals will be available in-store and online, with mobile app users getting first crack at savings on select items in early November.

BURFORD, Ont. — Beauti-Tone Paint has announced its 2021 Colour of the Year, a pastel blue dubbed Dancing in the Rain. “We took a serene and carefree approach with our 2021 Colour of the Year,” said Kristen Gear, Beauti-Tone’s lead colour designer. “It’s a blue we can relax in while feeling as though we are in a calm and tranquil environment.”

BURLINGTON, Ont. — IKEA Canada has been named one of Canada’s Greenest Employers for the 12th consecutive year by Mediacorp Canada. The retailer, which has just launched a “Year of Sustainability,” has phased out single-use plastics and committed to 100 percent zero-emission home delivery by 2025.

 
ECONOMIC INDICATORS

Sales of existing Canadian homes rose a further 6.2 percent in August, raising them to another new all-time monthly record. Actual (not seasonally adjusted) sales activity posted a 33.5 percent year-over-year gain in August. Unlike the previous two months, in which activity was up right across the country, sales in August were led by the Greater Toronto Area and by British Columbia’s Lower Mainland. It was a new record for the month and the sixth-highest monthly sales figure of any month on record. (Canadian Real Estate Association)

U.S. retail sales in August edged up by 0.6 percent. Sales of building materials and garden equipment rose by two percent. (U.S. Commerce Dept.)

OVERHEARD...

“For years we have preached that independent retailers are so much stronger when they come together through their association, and now we are stronger than ever.” —Bob Cutter, president and CEO of the newly renamed North American Hardware and Paint Association. Formerly NRHA, the new name reflects the inclusion of paint dealers in the association’s membership.

“Sometimes the fine is greater than the margin generated from the order, so you actually lose money on the order. The manufacturer has to make a decision: do I send the medium-size order to the independent who has no compliance fines, or do I send the complete order to the large retailer?” —Michael Graydon, head of Food, Health and Consumer Products of Canada, in a statement decrying the move by Loblaw to start punishing vendors with charges for incomplete orders.

Classified Ads  

ST. JACOBS ASSOCIATE MERCHANDISE MANAGERS (#766) ONE POSITION PER CATEGORY

JOB DESCRIPTION: Your primary focus will be assisting with the development and implementation of the strategic plan to support the category objectives and financial plan. Collaborate with Merchandise Manager to establish and track performance matrix including, but not exclusive to sales, profitability, turns and forecasting ensuring objectives are achieved.

Provide strong leadership, support and direction to the Merchandise Associate and the collaborative cross-functional team.

Prepare in-depth analytics, analyze shipment and POS performance on a regular basis, and conduct market research.

Manage and build strong supplier relationships with existing and new strategic partners to our grow business.

Coordinate the product selection, product pricing for Dealer Support Centre and Supplier Direct, artwork requirements and sourcing of specials to support various advertising formats.

QUALIFICATIONS: College / University Diploma or Degree in Business and/or Merchandising preferred.  Previous experience with product knowledge associated to the retail industry is required. Analytical and leadership skills with ability to support development and execute category financial plans. Knowledge and experience within the industries above would be an asset. Excellent communication, planning, organizational and negotiating skills. Flexible and adaptable; able to operate independently and work effectively as part of a team.

INTERESTED CANDIDATES, PLEASE VISIT www.homehardware.ca/careers TO APPLY!

Looking to post a classified ad? Email Michelle for a free quote.

Hardlines
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