Serving The Retail Home Improvement Industry

 

November 9, 2015 Volume xxxiv, #42

“We may encounter many defeats, but we must not be defeated.”

— Maya Angelou (American poet and author, 1928–2014)

 

IN THIS ISSUE:

  • Bernie Owens talks frankly about changes at TIM-BR MART

  • Lowe’s Canada hosts Quebec vendors

  • Taiga announces new manufacturing partner

  • Amazon opens its first bricks-and-mortar book store

  • PLUS: Sears Canada shows signs of recovery—and a new president, Wal-Mart studies drones, Canadians hot for renos, IPG buys  TaraTape, Newell Rubbermaid earnings, U.S. housing starts, Armstrong results, Deere buys Monosem —and more!

 

Bernie Owens talks frankly about changes at TIM-BR MART

TORONTO ― Bernie Owens admits he’s had to make some tough decisions. But, he noted, in a presentation that kicked off the 20th annual Hardlines Conference, they were necessary ones.

In the time that he has been president of TIM-BR MART Group, he has severed troubled relations with Ace International, closed a long-standing warehouse in Victoriaville, Que., and―most notably―sold off TIM-BR MART’s hardware distribution business, Chalifour Canada.

The need to pare TIM-BR MART back to its buying group roots was absolutely crucial, he said. “No company can be everything to everyone.”

TIM-BR MART had purchased CanWel Hardware at the end of 2010 in an effort to provide a seamless supply of hardware to the group’s 700-plus member dealers. Today, he is confident that his dealers can get a full range of hardlines through the group’s membership in the Spancan buying group. In addition, TIM-BR MART can better focus on LBM purchases, including being more attuned to local and regional needs of members.

“TIM-BR MART buys right for the independent dealer,” he noted, “with the highest volume of drywall purchases of any buying group in Canada―and that’s a fact.”

He also hinted that the changes aren’t done yet. “Stay tuned,” he told the audience. “This is an exciting time for the industry in Canada.”

Lowe’s Canada hosts Quebec vendors

MONTREAL ― A group of 10 buyers, led by Igor Halencak, Lowe’s Canada’s head of merchandising and marketing, convened on the Sheraton Hotel in downtown Montreal last week to meet with Quebec hardware and building materials vendors.

The morning was organized in association with Export Quebec for suppliers who had not done business with Lowe’s before. At the event they learned about the company’s growth plans―and had opportunities to get their products into Lowe’s stores across Canada. A total of 80 individuals representing 51 companies were present. Together with the Lowe’s Canada team and representatives from the Quebec government, more than 100 people were in the room.

Lowe’s Canada President Sylvain Prud’homme was on hand to share the story of Lowe’s expansion in Canada, and the company’s focus on various customer segments. He also underlined the importance of omnichannel retailing to the company’s growth plans.

When news of the planned meeting was first announced a few weeks ago, it sparked conjecture about Lowe’s eventual plans to expand into Quebec. Prud’homme said this kind of outreach to Quebec vendors was an important first step in that process.

Taiga announces new manufacturing partner

BURNABY, B.C. — Taiga Building Products has chosen a new manufacturing partner for engineered wood products in Canada. In Eastern Canada, the company will align with Boise Cascade, which claims to be one of North America’s largest EWP manufacturers. It offers a full line of solid sawn I-Joists, manufactured in New Brunswick.

In Western Canada, Taiga will continue its partnership with Pinkwood, providing a full line of I-Joists.

Over the coming weeks, Taiga and Boise EWP representatives will work with its engineered wood customers to convert their respective software material files, allowing them to specify the correct market-relevant products.

Taiga has been making changes on other fronts, as well. Just last month, the building materials wholesaler announced it would begin carrying Plycem’s Allura Fiber Cement products at all 15 of its Canadian distribution centres.

Amazon opens its first bricks-and-mortar book store

SEATTLE — The company that was responsible for the demise of so many book stores around the world has launched a book store of its own.

Online retail giant Amazon, which got its start selling books over the Internet 20 years ago, has opened its first bricks-and-mortar outlet in Seattle. The store is not a big box; it weighs in at only 5,500 square feet and has the features of a traditional, old-fashioned book store, complete with hardwood floors, wooden shelves and big easy chairs for patrons to settle in to.

However, there is a nod to Amazon’s high-tech roots here, as well: customers can try out electronic devices such as the Kindle reader and Fire TV in the store.

FROM THE ARCHIVES: This week in 1995

HARDLINES started out as a bi-weekly, sent by fax every weekend from a basement that housed the original World Headquarters. Early on we started sending “Fax Extra” editions with breaking news, and the alliance between Ace Hardware and Beaver Lumber was certainly newsworthy. Read about Ace’s second attempt to get into Canada by clicking here right now!

 

DID YOU KNOW…?

…that the Atlantic Region accounts for just over one-tenth of Canada’s retail home improvement market? Or do you know which one of the Atlantic Provinces had the most growth last year? The answer will surprise you! It’s all in our incredible Hardlines Market Share Report. Click here right now to learn more!

RETAILER NEWS

ST. JACOBS, Ont. ― Home Hardware dealers kept to their message of “Home Owners helping home owners” by participating in Random Act of Kindness Day last Friday. Twenty-nine stores in Ontario and British Columbia participated in the event spearheaded by the Community Foundations of Canada. Random Acts of Kindness Day is an opportunity to encourage members of the community to do nice things for their neighbours, co-workers, friends, and family.

TORONTO — Now under new leadership (see People on the Move), Sears Canada has leaked some positive news about its current financial performance. The company’s “core retail store network” had positive same-store sales for the third quarter ended October 31. Full results for the quarter will be announced on December 3.

BENTONVILLE, Ark. — Wal-Mart is getting into drone technology as a way to deliver online orders right to its customers’ doors. The giant retailer has requested a waiver from the U.S. Federal Aviation Administration to test drones outdoors to determine whether the drones would be viable for deliveries. Amazon and Google are already testing drones for the same purpose.

TORONTO — Canadians remain hot for renovations, according to a new study by Scotiabank. Every province except oil-reliant Alberta is spending big on additions, alterations, installations, and equipment renewal, all of which are up 6% so far this year. Ontario and British Columbia are the two regions making the strongest gains, with expenditures in garden supplies and building materials ranking high. The report says renovation spending will reach $53 billion, with an average household expenditure of about $3,300.

 

SUPPLIER NEWS
MONTREAL & FAIRLESS HILLS, Pa. — Intertape Polymer Group has announced the acquisition of RJM Manufacturing, which manufactures filament and pressure-sensitive adhesive tapes under the TaraTape brand for industrial applications. Located in Fairless Hills, Pa., TaraTape has 55 employees. The US$11.0 million acquisition is IPG’s second of the year (it bought Better Packages, Inc., a supplier of water-activated tape dispensers, in April). Greg Yull, IPG’s president and CEO, indicated that the company intends to look for more acquisitions.

ATLANTA — Newell Rubbermaid reported an earnings increase of 9.7% for the third quarter, driven by a strong showing in its stationery sector. For 2016, the company has projected per-share adjusted earnings of $2.35 to $2.44 on sales growth of 2.5% to 3.5%. CEO Michael Polk called the results “just about the strongest quarter we’ve seen in many, many years.” Newell Rubbermaid announced last month that it has agreed to buy Elmer’s Products, the manufacturer of Krazy Glue and X-Acto knives.

LANCASTER, Pa. — Armstrong World Industries announced earnings of $0.80 per share on revenue of $658.50 million, down 3% from the last Q3.

MOLINE, Ill. — Deere & Company has signed a definitive agreement to acquire Monosem, a European maker of precision planters. The purchase includes the company’s four facilities in France and two in the U.S. Deere does not plan to change the independent nature of Monosem. President John May said the business will retain its own brand and trademark and will leverage its own operational strengths. Monosem has been a family-owned enterprise through three generations since it was founded in 1948.

 

ECONOMIC INDICATORS
Construction spending in the U.S. in September reached $1,094.2 billion at a seasonally adjusted annual rate, up 0.6% from August and up 14.1% from September. Residential construction was valued at $394.7 billion seasonally adjusted in September, up 1.9% from the previous month. During the first nine months of the year, construction spending was up 10.5% over the same period in 2014. (U.S. Commerce Dept.) 

 

PEOPLE ON THE MOVE
TORONTO―At Sears Canada, Carrie Kirkman has been appointed president and chief merchant.  She was most recently interim president of Nine West Canada and before that served as president of Jones Apparel Group, Canada from 2010 to 2015. Her experience in the Canadian apparel industry also includes senior roles with Hudson’s Bay Company from 2002-2010.

 

OVERHEARD…
“The main goal is not winning. The main goal is being the best you can be.” —Hugo Girard, Canadian strongman, speaking recently at the 20th annual Hardlines Conference.


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