October 19, 2015 Volume xxxiv, #39

“People often say that, in a democracy, decisions are made by a majority of the people.  Of course, that is not true.  Decisions are made by a majority of those who make themselves heard and who vote—a very different thing.”
—Walter H. Judd (American physician and politician, 1898-1994)

IN THIS ISSUE:

• Lowe’s opens its doors to Quebec vendors

• AQMAT to launch lobbying effort for permanent reno tax credit

• TruServ market showcases paint, décor, and high-end products

• TSC caters to rural customers with online sales

• PLUS: Castle adds Ontario member, Taiga adds line, Bemis bought, Masters sucks money, Armstrong spins off, Cologne Fair partners with promotional show, Tembec mill, U.S. retail sales —and more!

Lowe’s opens its doors to Quebec vendors

TORONTO — Lowe’s Canada will hold a meeting with Quebec vendors on November 5, but the company says it's not announcing any expansion plans for that province—at least not yet. 

In an exclusive interview with HARDLINES, Lowe’s Canada President Sylvain Prud’homme says, “Canada is an important, stable market that keeps growing.” He further notes that Quebec accounts for almost one-quarter of the Canadian retail home improvement market. For the next year and a half, however, expansion will focus on a dozen former Target sites: four in British Columbia, two in Alberta, one in Saskatchewan, and seven in Ontario—but none in Quebec.

The first step to expanding in Quebec is to begin understanding that market better, Prud’homme says. The meetings on November 5, in Montreal, will be an important first step. Lowe’s is interested in a range of new products, including doors, flooring, and décor.

AQMAT to launch lobbying effort for permanent reno tax credit

LONGUEUIL, Que. — The Quebec Hardware and Building Supply Association, AQMAT, has announced it will spearhead a lobbying effort to push for a permanent renovation tax credit, regardless of who wins today’s election.

According to a poll conducted by OpinionQc, 74% of Quebecers agree with the following statement: “a permanent tax credit of 15% on home renovations, available at all times, without limiting expenses for supplies and labour, would convince me to renovate my home.”

Respondents from all sections of the population showed support for such a tax credit, despite differences in gender, age, language, household, education, area of residence, or income. The most enthusiastic respondents, those who “strongly agreed,” were 35 to 54 years old, with a college education or higher, living as a couple and/or with children in a large urban centre, with a household income above $60,000.

The issue of a permanent tax credit for home renovations made headlines at the beginning of the election campaign and has come up again with the publication of the results of the poll. “The results provide assurance at a time when we have fittingly decided to create a fund financed by the hardware and building supply industry in order to conduct in-depth studies,” said Richard Darveau, president and CEO of the AQMAT.

The fund will be used to convince the federal government of the importance of a tax credit to encourage quality home renovations. AQMAT hopes to show that the cost of instituting permanent tax relief measures to promote quality home renovations would be largely covered by clear socio-economic and societal benefits.

TruServ Market showcases paint, décor, and high-end products

WINNIPEG — The recent TruServ Canada dealer market presented many new products, both from existing vendors and through an expanded assortment of private-label Ace-branded items.

New lines of household consumables, plus core categories such as locks and abrasives, were displayed right on the show floor in a dedicated Ace merchandising section. In addition, Greg Hollander, director of merchandising for TruServ Canada, told the dealers during a breakfast presentation about other sales opportunities for the coming months.

He suggested adding décor items to sales in core categories to increase margins. And he pointed out the value of selling higher-end lines, citing Husqvarna, the outdoor power equipment maker, which specializes mainly in sales through independents (notwithstanding a deal with Lowe’s Canada that carries over from its arrangement with Lowe’s in the U.S.). Promoting more sophisticated barbecues presents “a high margin opportunity,” he added. “In addition, housewares present a great sales opportunity in the fourth quarter.”

Other hot categories that dealers are picking up on include pet food and accessories, plus a major appliance warehouse program. Now one year old, the program lets smaller dealers compete by offering larger appliances through their stores.

TSC caters to rural customers with online sales

LONDON, Ont. — Farm and hardware retailer TSC Stores is looking for new ways to target its core “rural lifestyle and agriculture” customer, and online sales is an important part of the mix.

According to Darryl Jenkins, president and COO of TSC, the company launched an online sales initiative two years ago. The site is currently being enhanced with additional SKUs that are not available in its stores, while expanding core categories, such as equipment for agriculture, ranging from animal health to higher-end pet foods and supplies. Other products getting a push online include power tools and outdoor power equipment.

The site will also be able to offer “higher-spec” items, Jenkins notes, that would appeal to a more specialized user.

TSC now has an online community of 48,000 “TSC Country Members,” in addition to a loyal walk-in clientele that visits two to three times a week, Jenkins says.

FROM THE ARCHIVES: This week in 1995

We covered the appointment of Canfor-Weldwood CEO Tom Donaldson to the additional role of EVP at parent company Canfor. Plastmo names Pierre Langevin general manager (Plastmo was also my very first-ever plant tour! —Michael). And Kmart’s fortunes continue to erode. Click here to read these blasts from the past!

DID YOU KNOW…?

RETAILER NEWS

MISSISSAUGA, Ont. — Castle Building Centres Group Ltd. has added Stoney Point Hardware Ltd. in Stoney Point, Ont., as its newest member. The business has been part of the local community since 1949, when founder Rob Duquette decided that the small lakeside town in Southwestern Ontario needed a hardware store of its own. Since the move to Castle, Stoney Point Hardware has renovated the store and showroom and re-branded under the Castle name. A grand re-opening is planned for next spring.

SYDNEY — Woolworth’s and Lowe’s have injected an additional $150 million into their loss-making joint venture Masters Home Improvement, just ahead of the date after which Lowe’s can sell its 33% stake. Documents filed with the Australian Securities and Investments Commission and obtained by the Sydney Morning Herald show that Woolworth’s invested $70 million and Lowe’s $35 million on September 30, the fifth time the partners have boosted the struggling chain’s capital this year. From October 20, Lowe’s is permitted under the partnership’s terms to sell its one-third of the business provided it gives 13 months’ notice.

LONDON — British DIY retailer B&Q says it will close nine stores in Wales through next year as it continues its overall plan to shut 60 stores across the UK over the next two years. These closures will leave 15 stores in Wales. B&Q will also close five outlets in Northern Ireland. The chain is owned by Kingfisher.

SUPPLIER NEWS
BURNABY, B.C. — Taiga has announced that it will carry Plycem’s Allura Fiber Cement products at all 15 of its Canadian distribution centres. The building materials wholesaler has been experiencing high demand for the Allura line at its west coast centres in Canada and the U.S. since Plycem launched the brand last year. Builder and Developer magazine named Allura “Editor’s Pick for Best Exterior” and the line was also chosen as the 2014 Brand Survey Winner for Best Exterior Siding.

DRUMMONDVILLE, Que. — Gas and electricity supplier Napec has announced its U.S. subsidiary Riggs Distler & Company’s acquisition of Bemis. A business of Willbros Group, Jacksonville, Vt.-based Bemis has provided construction and maintenance services to utility companies since 1981. Under the terms of the $19.2 million dollar deal, the Bemis management team will remain in place. It currently employs a staff of 40.

COLOGNE, Germany — When Eisenwarenmesse, the Cologne International Hardware Fair, opens its doors March 6 to 8, 2016, it will overlap with the International Trade Fair for Retail Promotions and Imports (IAW), enabling visitors to visit both events. At the Cologne International Hardware Fair, trade visitors from all over the globe gain an overview of products in the hardware industry, including tools, industrial supply, fastening technologies, and building supplies. IAW is a fair for promotional and trend-led products and high-volume orders. For more information, contact Sarah Kraft at Koelnmesse.

TEMISCAMING, Que. — Demolition of the former Marathon, Ont., Tembec mill continues and is expected to be complete in the fall of 2016, the Thunder Bay Chronicle-Journal reports. Ontario’s Ministry of the Environment cleared the project for an extension, originally due by the end of this year, but turned down Tembec’s request to leave an evaporator building standing until 2017 while a buyer was sought. Tembec attempted to abandon the mill after its 2009 bankruptcy, but was ordered to retain control while environmental hazards were eliminated.

MANOR TOWNSHIP, Pa. — Armstrong World Industries has filed with the Securities and Exchange Commission to separate its resilient flooring and wood flooring business into its own company, Armstrong Flooring Inc. Writing to shareholders, chairman James J. O’Connor explained that, “As two distinct publicly-traded companies, AWI and AFI will be better positioned to focus resources on their respective businesses and strategic priorities.” The spin-off company already has a team of executives in place and is expected to formally separate early in the new year.

ECONOMIC INDICATORS
U.S. retail sales in September were up 0.1% from August to $447.7 billion. However, they were up 2.4% from the same month a year earlier. Excluding automobiles, retail sales were $353 billion, down 0.3% from the prior month but up 0.8% from one year earlier. The building materials sector was down 0.3% from August, but up 3.4% year over year. (U.S. Commerce Dept.)

OUT AND ABOUT
We are, of course, at the 20th Annual Hardlines Conference this week, starting with a Meet & Greet cocktail reception sponsored by RONA tomorrow evening. It’s not too late for you to attend: you can still pay at the door! Won’t you join us?

CLASSIFIED ADS