September 28, 2015 Volume xxxiv, #36

“Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning.”— Albert Einstein (Nobel prize winning German physicist, 1879–1955)

IN THIS ISSUE:

• BMR to close large Ontario store

• Prime Minister drops in at Home Hardware Fall Market

• Learn how to drive online profits at Hardlines Conference

• Home Depot supports online sales with new fulfillment centre

• PLUS: TIMBER MART teams with Polaris for contest, Patrick Morin dispels takeover rumours, Shop.ca and FireFly Direct launch neighbourhood marketplace, Canadian Tire offers payments app, InterWrap partners with Goodfellow, Laurentide Paint releases fall palette, Saint-Gobain to sell U.S. distribution—and more!

BMR to close large Ontario store

ORLEANS, Ont. — Facing tough local competition, Groupe BMR has announced it will begin closing its Builder’s Warehouse hardware store in Orleans. The required time to complete the final closure will be two to three months. The move is significant for the fact that it is such a large store (the closing will affect 83 employees) and one of just a handful that BMR has in Ontario.
 
“It is a business decision that was carefully thought through,” says Martin Lecomte, vice president retail for Groupe BMR. “The strong competition in Orleans, paired with a difficult economic context in the hardware and renovation sector, has been making it hard to achieve profitability targets for several years already, despite our efforts and those of our team of employees.”

Since being acquired by La Coop fédérée late last year, the company has been looking for ways to consolidate its retail assets, mainly in the province of Quebec, where most of the Coop and BMR stores are located.

According to a release, the company “will ensure a fair and equitable transition for all of its employees,” which will include access to a range of resources to support them during the transition.

Prime Minister drops in at Home Hardware Fall Market

ST. JACOBS, Ont. — Home Hardware Stores held its Fall Market last weekend, drawing dealers—and a surprise guest—to the company’s hometown. The theme for the 2015 Fall Market is “Be Bold,” reflecting the company’s mandate to provide a retail setting that mixes tradition and innovation.

The company claims that up to 75% of its dealers make the trek to the market, which is held right in Home Hardware’s distribution centre in the small Mennonite town of St. Jacobs, where Home Hardware had its beginning.

Every morning of the three-day market began with sessions on best practices from dealers, such as John Locke of Orillia Home Hardware, who spoke on Monday morning. Locke told dealers how he manages his store, which is considered by many to be one of the best Home Hardware stores in the country.

Locke’s presentation was followed by the arrival of a special guest: Prime Minister Stephen Harper, who added St. Jacobs to his list of campaign stops across the country, leading up to the federal election on October 19.

Learn how to drive online profits at Hardlines Conference

TORONTO ― Understanding where the home improvement market is headed will be the focus of the upcoming Hardlines Conference. The conference, which is being held in just three weeks, on October 21 and 22, celebrates its 20th anniversary this year. And understanding the world of online retail will be a key part of many of the presentations.

Liz Drayton is part of the retail team at Google Canada, which means she works with the country’s largest retailers to help them best translate their brand and customer experience through digital media. She will present on day one of the conference, along with Joseph Thompson, VP Marketing, BuildDirect, who will explain how his company sells tiles, flooring, and other building materials online.

Each of these industry leaders is part of a complete lineup of speakers over the two days of the Hardlines Conference, which will be held October 21 and 22 at the Westin Bristol Place Hotel near the Toronto International Airport.

(Click here for more information on the conference and sign up today! ―Michael)

Home Depot supports online sales with new fulfillment centre

ATLANTA — The Home Depot has opened its third and largest of three new direct fulfillment centres. The centres are part of an infrastructure that supports the retailer’s online sales, which now account for approximately 5% of total revenues. The 1.6 million-square-foot facility is in Troy Township, Ohio, and is expected to eventually employ 500. The company opened two other direct fulfillment centres last year: one in Locust Grove, Ga., just outside Atlanta, and another in Perris, Calif. 

Home Depot says these new facilities enable the company to deliver 90% of its online orders of regionally stocked parcel items in two business days or less using economical ground delivery service.

The company also announced that in October it will officially open a 200,000 -square-foot technology centre in Marietta, Ga. It will house 1,000 information technology staff.

In November, the company will open a third online customer care operation in Tempe, Az., bringing 800 new jobs to that community. This will be the third online customer service operation dedicated to the online business.

DID YOU KNOW…?

RETAILER NEWS

VAUGHAN, Ont. ― Over the last three weeks, participating TIMBER MART members and recreational vehicle manufacturer Polaris awarded eight prize winners across Canada with $100,000 in off-road vehicles as part of the TIMBER MART “Do Anything, Go Anywhere” contest. One Polaris Sportsman XP 1000 ATV and one Polaris Ace 570 SP off-road vehicle was awarded in each of four regions: West, Ontario, Quebec, and Atlantic Canada. The contest garnered more than 46 million “impressions” (consumer views) through television advertising, flyers, an online campaign, posters, and in-store point-of-sale. “We’re glad to see the contest has been successful in increasing local brand awareness and consumer traffic for our members on a national scope,” says Jon Irwin, TIM-BR MART Group’s vice president of retail services.

SAINT-PAUL-DE-JOLIETTE, Que. ― Rumours of a possible takeover of Patrick Morin by RONA inc. have been dispelled in a letter co-signed by the 21-outlet, family-held retailer’s president, Denis Morin, and Daniel Lampron, general manager. The letter, issued late last week to vendors, says, “Unfounded rumors are circulating about Patrick Morin’s acquisition by a competitor. We want to inform you that there is absolutely no ongoing discussion whatsoever with our competition on that matter. We don’t know the source of that rumor, but we want to insist on the fact that Patrick Morin plans to continue its expansion and to increase its presence on the market. Our constant growth seems to bother some of our competitors.” The letter ends by reaffirming Patrick Morin’s long-term strategy to grow under the third generation of the Morin family.

TORONTO — Shop.ca and FireFly Direct announced that they have entered into an exclusive agreement to power a soon-to-be-launched neighbourhood marketplace in Canada. Shop.ca is responding to queries from local merchants looking for an online market with the launch of Shop.ca Neighbourhood Marketplace within a year. The customized e-commerce site will allow customers to purchase products and services from their favourite local stores and schedule delivery times at their convenience. FireFly Direct will power the last-mile delivery trucks to pick up products from neighbourhood stores and deliver to the customer's doorstep at the scheduled time.

TORONTO — Canadian Tire Corp. has launched a mobile payments app called Canadian Tire Pay & Play. It’s an exclusive for holders of Canadian Tire’s Options MasterCard that allows users to make payments and track their banking information and e-Canadian Tire “money” rewards. It also has gaming features, special offers, and rewards. The app can be used at all Canadian Tire retail locations across the country and is available for download from the App Store and on Google Play.

SUPPLIER NEWS
VANCOUVER — InterWrap, which manufactures Titanium and RhinoRoof synthetic roofing underlayments, has reached a deal that makes Goodfellow its new Canadian distributor. The Canadian wood products processor and distributor’s strategic locations across the country appeal to InterWrap as demand for its products grows north of the border. Likewise, the addition of these new lines fits with Goodfellow’s move to diversify its range of construction products available to Canadian dealers. Goodfellow will also provide additional sales support to InterWrap’s distribution network.

SHAWINIGAN, Que. — Laurentide Paint has released a palette “to celebrate the bounty of fall,” featuring aubergine, teal, chocolate, copper, and ochre, contrasted with subtler shades of grey and cream. The neutrals offset the deeper hues to avoid oversaturating the room. Laurentide’s paints are sold through a retail distribution network spanning Quebec and Atlantic Canada.

PARIS — Saint-Gobain has signed an agreement to sell its U.S. distribution business to ABC Supply Co., Inc., a distributor of roofing and siding products. Norandex has a network of 103 branches specializing in windows, doors, siding, and roofing products. It has 770 employees and generated sales of $393 million in 2014. The transaction is in line with Saint-Gobain Building Distribution's strategy of divesting non-core assets and bolstering its positions in Europe and Brazil. The transaction is subject to clearance under U.S. antitrust legislation and is expected to close in the fourth quarter 2015.

PEOPLE ON THE MOVE
Olivier Picard has been named vice president of international business development for RDTS. He has 28 years of expertise in the field of merchandising in France. He joined the RDTS sales and merchandising teams in 2014, after working with RDTS on an IMAGINE Program deployment mandate in France. He is the designated person to support RDTS President Robert Di Tomasso in business development strategies and diversification efforts. (olivierp@rdts.ca)

At Osram Sylvania Ltd., Lou Tassone has joined as national account manager, retail. He was formerly with Domtar. (lou.tassone@sylvania.com)

Cam Brayton has been named territory sales manager for Eastern and Northern Ontario at Garaga Inc., a Canadian family-owned garage door manufacturer for the residential, commercial, and industrial markets. He reports to Maxime Gendreau, sales and marketing manager for  Canada. Brayton has worked in the door industry for more than 25 years in both the manufacturing and retail sectors. His experience includes being past president and director of the Ontario chapter of the Canadian Door Institute. (cbrayton@garaga.com)

ECONOMIC INDICATORS
Retail sales rose for the third consecutive month in July, up 0.5% to $43.3 billion. Higher sales at motor vehicle and parts dealers and clothing and clothing accessories stores accounted for most of the gain, as the building material and garden equipment and supplies dealers sector was down 0.7% seasonally adjusted from June, but up 3.2% year over year. In volume terms, all retail sales rose 0.2%. (StatCan)

OVERHEARD…
“Our company is recognized as Canada’s best-trained dealer group and it’s our goal to ensure we continue to provide the best service to our dealer-owners so they can provide the best service to their customers. The Fall Market is just one of the many ways Home Hardware supports the growth of its dealers to help them achieve retail excellence.” —Terry Davis, CEO, Home Hardware Stores Limited, on the attendance by thousands of dealers at last week’s market.

OUT AND ABOUT
Our intrepid Editor Michael McLarney is heading to Winnipeg this coming weekend to get the latest news coming out TruServ Canada at that wholesaler’s Fall Market.

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