October 5, 2015 Volume xxxiv, #37

“Don’t worry about the world coming to an end today. It's already tomorrow in Australia.”
—Charles M. Schulz (American cartoonist & creator of the “Peanuts” comic strip, 1922-2000)

IN THIS ISSUE:

• Chalifour sale to Orgill by TIM-BR MART finalized

• Welland, Ont., store marks TSC’s 52nd, with more to come

• Cornwall, Ont., location the latest in Lowe’s expansion plans

• Jack Baillie retires, leaving a legacy that includes Home, Beaver

• PLUS: Peavey Mart in High River, Vicwest in Edmonton, new VPs at Goodfellow, Home Hardware and Tree Canada, Wal-Mart urges price cuts (no, really?) , Costco year end, U.S. housing starts, GDP grows—and more!

Chalifour sale to Orgill by TIM-BR MART finalized

MEMPHIS, Tenn. & LONDON, Ont. — The sale of Chalifour Canada Ltd. to Memphis-based Orgill, Inc. has been finalized. The deal, first announced in mid-August, was awaiting approval by the Canadian Competition Bureau.

Orgill has managed the takeover through the creation of Orgill Canada Hardlines, ULC, a wholly owned, Canada-based subsidiary, which completed the purchase of the hardware assets of Chalifour Canada from TIM-BR MART Group. Those assets include Chalifour Canada’s London, Ont., distribution centre, as well as the hardware inventory in Chalifour’s Surrey, B.C., facility. 

All Canadian distribution and retail services previously provided by Orgill, Inc. and Chalifour Canada are now operating as Orgill Canada.

For the past five years, this country’s last national full-line hardware wholesaler was owned by TIM-BR MART Group. But under the leadership of President Bernie Owens, that group has been making radical changes to its organization. Divested of the distribution business, TIM-BR MART intends to stay focused on supporting its members with building materials purchases and other store services.

“This strategic alliance will offer our members many competitive advantages that will allow them to better compete in their local markets and continue to build profitable and sustainable businesses,” says Owens. “TIMBER MART continues to raise the bar for the independent entrepreneur, offering industry-leading programs, resources, guidance and services.” 

Welland, Ont., store marks TSC’s 52nd, with more to come

LONDON, Ont. — Farm and hardware retailer TSC Stores has opened its latest outlet in Welland, Ont. The newest store has 26,000 square feet of retail space and employs 20. It carries about 20,000 SKUs that include core hardware categories, automotive, animal and pet supplies, clothing and footwear, farm and fencing, hunting, lawn and garden, and toys.

“We’re excited to open a new store in Welland, Ont., to serve the Niagara area,” says President and COO Darryl Jenkins. “For more than 45 years, TSC has developed strong roots in Ontario, becoming part of local towns and communities. We felt that Welland was a perfect fit for a TSC Store.”

The location also fits well with TSC’s search for smaller sites as they become available—especially in locations other retailers have left behind, Jenkins says. Expansion efforts are focused mainly in Ontario, where most of its 52 stores are located, but the chain continues to eye Manitoba, where it already has two sites. In fact, TSC’s reach may extend even farther over time. “We’ve quite frankly looked right across Canada, albeit that’s a very long view,” Jenkins notes.

Growth is being directed at three levels: retrofitting of existing stores that warrant expansion; existing markets that are worth investing in with a new store at a new location; and new markets where the right rent structure exists.

Cornwall, Ont., location the latest in Lowe’s expansion plans

TORONTO — Lowe’s Canada has confirmed the establishment of a new store in Cornwall, Ont., which is scheduled to open mid-year 2016. The site will have about 100,000 square feet of retail sales space, plus a 13,000-square-foot garden centre.

“This new store will allow us to become part of an established and active shopping hub, and supports our ongoing strategy to be the home improvement choice for Canadians,” said Sylvain Prud’homme, president, Lowe’s Canada. The company plans to open 14 new stores in Canada through 2016, bringing its total to 54 locations.

Jack Baillie retires, leaving a legacy that includes Home, Beaver

ST. JACOBS, Ont. — After more than three decades in the hardware and home improvement industry, Jack Baillie, marketing director for Home Hardware Stores Limited, has retired.

His presence at the latest Home Hardware dealer market, held two weeks ago, would be Baillie’s last, as his final day of work was September 30. He and his wife have retired to Abbotsford, B.C., a place he worked in at one point during a career that included 18 years at Beaver Lumber and another 16 at Home Hardware, after that company bought Beaver Lumber in 1999.

FROM THE ARCHIVES: This week in 1995

In this issue of the HARDLINES fax newsletter from exactly 20 years ago, we surveyed the buying groups across Canada. They were all facing a poor housing market, with even “bright spots” like British Columbia and Newfoundland skidding to a halt. In Newfoundland, AWARD dealers were stymied by housing starts that fell by more than 62% over the summer. Home Hardware’s fall market, held a week earlier, was likewise not an upbeat affair, as that company found itself below budget year to date.  Read these nostalgic tidbits by clicking here!

DID YOU KNOW…?

RETAILER NEWS

RED DEER, Alta. — Peavey Mart’s High River, Alta., store has a new, larger location. Last month, store manager Randy Doran told High River Online that the old location was no longer fit for the purpose. “We’re getting more merchandise all the time and our yard was way too small,” he explained. Doran expects the larger store to take on six to 10 new employees.

ST. JACOBS, Ont. — Home Hardware and Tree Canada teamed up to plant and care for mature trees at 38 locations across Canada in celebration of the fifth National Tree Day. In support of the occasion, Home Hardware dealer-owners are hosting tree-planting and maintenance events throughout the fall. Rather than planting small saplings, Home Hardware dealer-owners will plant and help look after large, mature trees in the urban areas of communities.

BENTONVILLE, Ark. — Wal-Mart is urging suppliers who manufacture goods in China to cut prices, arguing that it should also benefit from the devaluation of the yuan, Reuters has reported. Managers have been in touch with more than 10,000 suppliers over the past few weeks asking for price reductions of 2% to 6% on items including home furnishings, fashion and beauty, appliances, electronics, and toys. The People’s Republic adjusted its closely-managed currency downward by 2% last month in an effort to encourage growth.

ISSAQUAH, Wash. — Costco saw its Q4 net sales rise 1% to $34.99 billion, while net sales for the fiscal year increased by 3% to $113.67 billion. A $57 million tax benefit boosted net income, which rose from $697 million the same time last year, to $767 million. Revenues from membership fees climbed 2.2% to $785 million, while gross margin grew from 10.7% to 11.1%.

SUPPLIER NEWS
OAKVILLE, Ont. — Vicwest Building Products has announced that it has secured the site of a new manufacturing facility in Edmonton, to open in the first quarter of 2016. With the opening of this new “centre of excellence,” the company confirmed it will close its Delta, B.C., plant at the end of this year. Western customers will be served from the current facilities in Edmonton and Saskatoon in early 2016 until the new Edmonton site is fully operational. “The decision to close the Delta manufacturing plant was not taken lightly,” said President and General Manager Paul Lobb.

PEOPLE ON THE MOVE
Michel Simard has been appointed national director of IT for the Imagine division of RDTS, the Laval, Que.-based retail merchandising services company. (514-334-7387)

Christian Levasseur has joined Goodfellow Inc. as vice-president, procurement. He was most recently at Richelieu Hardware as director of purchasing. Harold Sheepwash, Jr., moves to the position of vice-president, sales and marketing. He was formerly vice president, industrial and manufactured wood products.

The British Home Enhancement Trade Association (BHETA) has appointed Paul Grinsell as home improvement executive director following the departure of Peter Stone. Grinsell brings to the role 18 years’ experience in the DIY industry in both sales and marketing. Most recently, he was exhibition and sales director of the Totally DIY and Totally Tools Exhibitions for Brintex Ltd. Prior to that, he worked in industry publishing with roles at Miller Freeman, Morgan Grampian, and Benn Publications, respectively. (pg@bheta.co.uk)

ECONOMIC INDICATORS
Real gross domestic product grew 0.3% in July, after rising 0.4% in June. The growth in June and July followed five consecutive monthly declines from January to May. The July increase was led by mining, quarrying, and oil and gas extraction, manufacturing, and the finance and insurance sector. Gains were also made in retail trade, up 0.2%, although wholesale was down 0.4%. (StatCan)

U.S. Construction spending in August reached $1,086.2 billion at a seasonally adjusted annual rate, up 0.7% from July and up 13.7% from August 2014. (U.S. Commerce Dept.)

OUT AND ABOUT

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