December 7, 2015 Volume xxxiv, #46

“I can't change the direction of the wind, but I can adjust my sails to always reach my destination.”
—Jimmy Dean (country music singer, TV host, actor, and businessman, 1928-2010)

HOLIDAY PUBLISHING SCHEDULE: We take a bit of a break during the holidays, so there will be no weekly edition of HARDLINES on December 14 or 28. The World Headquarters will remain open until December 18, however, as we put the finishing touches on the next issue of our sister publication, Hardlines Home Improvement Quarterly magazine, which gets mailed to more than 11,000 dealers across Canada. Our regular weekly schedule will resume January 4.

IN THIS ISSUE:

• Lowe’s Canada opens giant regional distribution centre

• 2016 Westcoast Building & Hardware Show partners with HARDLINES to offer dealer education

• Spectrum integrates Canadian operations to focus on home improvement channel

• Top Women include Canadian Tire’s Billes, Home Hardware’s Hand

• PLUS: Ikea Canada opens Pick-Up and Order Points, new Benjamin Moore store in Ladysmith, B.C., Sears Canada narrows loss, more people shopped online on Black Friday, Tru Tech launches commodity door program, TV’s McGillivray teams with CertainTeed, U.S. construction spending, Coast Distributors adds two more, Kirkland Lake dealer named to Home’s board —and more!

Lowe’s Canada opens giant regional distribution centre

MILTON, Ont. — Lowe’s Canada held an official opening of its new regional distribution centre in Milton, Ont., last week. The facility, half-an-hour west of Toronto, was erected for Target Canada, but vacated when that retailer exited Canada last year.

Many of the facility’s 330 employees were on hand for the ceremony. Mario Paradis, senior director of distribution, emceed the event. He was joined by members of Lowe’s management team, including Gregor Stuart, vice president of supply chain, and Wanda Walkden, VP human resources.

Paradis thanked his staff, saying, “You guys are the one who move the boxes. You’re the ones who keep our stores filled.” The facility is expected to employ up to 400.

Besides taking over this warehouse, Lowe’s purchased 12 Target retail sites that will be converted over the next 18 months. The next one to open will be in Ancaster, Ont. Other Ontario locations include Milton, Cornwall, and the Danforth neighbourhood in Toronto’s east end. Lowe’s currently has 40 stores in Canada.

Stuart noted that the new RDC will be instrumental in supporting not just Lowe’s bricks-and-mortar locations, but its online sales initiatives, as well.

The new RDC features about 1.3 million square feet of space, with room to expand by an additional 250,000 square feet in future. It features 197 bay doors—including 97 loading bays—plus a fully automated conveyor system that will move boxes at a speed of up to 630 feet per minute. It replaces an existing warehouse, also in Milton, that is 660,000 square feet in size.

The RDC has opened in time to manage extra capacity needed by the existing stores during the holiday season, while spring assortments will begin arriving by the end of this week.

2016 Westcoast Building & Hardware Show partners with HARDLINES to offer dealer education

SURREY, B.C. & TORONTO — The next edition of the Westcoast Building & Hardware Show will feature a new, powerful educational component for dealers and retail managers and a new format for more exposure to end users. 

Thanks to a new partnership with the Events Division of Hardlines Inc., the show, presented annually by the Building Supply Industry Association of British Columbia (BSIA), will feature a series of training and educational seminars to provide independent dealers and store managers with a full show experience to help them grow their businesses.

The combined event will be held March 11-13, 2016, at the Agriplex on the Cloverdale Fair Grounds in Surrey, B.C.

The Westcoast Building & Hardware Show will kick off with a breakfast speaker on both mornings of the show. Drawing on HARDLINES’ expertise and range of industry knowledge, topics will include industry trends, economic conditions, and an analysis of the West Coast home improvement market. The seminars will be carefully timed and will not interfere with dealers’ time on the show floor. A special presentation during the New Orion Awards and Supper will present information about the B.C. market that has been compiled exclusively for BSIA by HARDLINES.

Besides the powerful educational component of the show, retailers will be able to enjoy show specials from vendors. To make a dealers’ visit to the show a complete experience, a complimentary lunch will be provided by the finest local food trucks, and a chance to win incredible door prizes. Unique aspects of the Show, which sets it apart from any other buying show in the country, is that on Friday afternoon March 11, architects, designers, and contractors will be invited to attend seminars and to walk the show floor. In addition, on Saturday March 12 at 1:30, The Ultimate Home Show will open to the public. There will be onsite radio broadcasting. There will also be an “Ask the Expert” stage for presentations during the Home Show. 

The BSIA is the official voice of the building supply industry in British Columbia. It is an association of retailers and related suppliers, wholesalers, and manufacturers who strive to provide information and services for members, promote the industry, and address issues of concern at all levels of government.

More details about keynote speakers for the Education Program will be announced in coming weeks. For more information about the show, contact the BSIA at 604-513-2205 or toll free at 1-888-711-5656; or info@bsiabc.ca.

Spectrum integrates Canadian operations to focus on home improvement channel

SPECIAL REPORT — Spectrum Brands is a big company. It represents US$4.4 billion in sales through a number of divisions, and features a range of brands. However, in Canada, the company is working on marketing those various brands in a more cohesive manner to the home improvement channel.

First, a little background: Spectrum has four divisions. Batteries and appliances feature Rayovac and Remington, plus Black & Decker, George Forman, and Russell Hobbs small appliances. Hardware & Home Improvement (HHI) consists of the Stanley Black & Decker division, acquired in 2012, and includes Weiser, Baldwin, Kwikset, and Pfister. National Hardware is also part of this division, but was pulled from Canada earlier this year. There’s an automotive division (ArmorAll and STP) and a pet division.

Each division in Canada had worked discretely in the past, with their own sales forces and relying heavily on direction from the U.S. parent. But now, says Dave Albert, vice president of HHI’s International Business, the Canadian operation is seeking a more unified approach, especially, he says, as all those divisions have products that are sold through the hardware and home improvement channel.

So Spectrum has been integrating all the divisions in Canada. “We will be integrating into one office, coming on around February or March 2016, with about 60 people in that office,” Albert says. The company is looking for other ways to invest in Canada, as well. “We’re adding another 20 people in the next 90 days and that is part of looking at all our business and bringing it together under one structure.” The aim, he says, is to point all those diverse products more effectively into the home improvement channel.

Despite the retreat of National Hardware, Spectrum plans to put more emphasis on the remaining brands here. “We have a great portfolio of brands and we have a vision to be good stewards of those brands,” says Albert. “Each of those brands needs their own focus.”

Despite the departure of National Hardware, he believes a strong Canadian presence is crucial to that focus; there’s “a significant advantage to be in Canada for Canada,” with more autonomy than ever from the U.S. head office. “We want to maintain the focus and value proposition of each brand and leverage economies of scale.”

Top Women include Canadian Tire’s Billes, Home Hardware’s Hand

TORONTO ― The Women’s Executive Network’s newly announced roster of Canada’s 100 Most Powerful Women includes names from the hardware and home improvement industry.

Christine Hand (shown here), chair of Home Hardware Stores’ board of directors since 2012, was recognized in the Corporate Directors category. Canadian Tire was represented by both controlling shareholder Martha Billes and Mary Turner, CEO and president of Canadian Tire Bank and senior VP of finance for corporate.

Comments were solicited from each winner on a range of topics. Hand said, “I would like to see more women take credit for their accomplishments without worrying about feeling arrogant or undeserving.” On the topic of embracing diversity in the workplace, she noted that “high-potential candidates must be balanced to reflect the makeup of your overall employee base. For instance, if 40% of the employees are female, then as leaders we should not accept a list of high-potential candidates that is 95% male.”

WXN founder Pamela Jeffery launched the Top 100 in 2003 to recognize the accomplishments of professional Canadian women. This year’s honourees were inducted recently at a gala at the Metro Toronto Convention Centre.

FROM THE ARCHIVES: This week in 1995

HARDLINES readers got some encouraging news this week with a report that the economy was beginning to show some signs of recovery: both housing starts and building permits made positive gains. IRLY Distributors plans its golf tournament and OSRAM gets a new president. Plus, our very first Christmas message to our readers! Click here to read these blasts from the past!

DID YOU KNOW…?

RETAILER NEWS

VAUGHAN, Ont. ― Distribution Lazure in St-Urbain-Premier, Que., has joined TIM-BR MART Group. Owned and operated by Marcel Billette and his son, Joel, the business employs about 20 staff, serving contractors and home builders in Quebec’s Monteregie region. “TIM-BR MART’s competitive and transparent buying programs will allow us to increase our gross margins,” says Billette. “We look forward to maintaining our independence while taking advantage of TIM-BR MART’s programs and services.” This newest member will benefit from TIM-BR MART’s affiliation with the Spancan hardware buying group and access products through TIM-BR MART’s building materials distribution centre in St-Nicolas, Que., says Daniel Rioux, TIM-BR MART’s regional director of member services for Quebec.

TORONTO — Lowe’s celebrates the grand opening of its new Milton, Ont., distribution centre tomorrow. Mayor Gordon Krantz will join Lowe’s Canada executives and employees for an official board cutting and community grant presentation, followed by a 45-minute guided tour of the new facility. With 1.3 million square feet of space, 197 bay doors, and a fully automated conveyance system, the new centre will be fully operational in time for the holiday rush.

MONTREAL ― La Coop fédérée has signed a deal to buy the majority of Co-op Atlantic’s agricultural assets. Through its Agri-business Division, La Coop will take over feed mills in Moncton, N.B., and in Truro and New Minas, N.S., along with the Farm Supply and General Merchandising division. The deal is subject to approval by the Competition Bureau.

ST. JACOBS, Ont. — Stratford, P.E.I.’s Home Hardware will close its doors on December 16, the parent company has announced. Home Hardware opted to shutter the store after failing to find a local entrepreneur to take it over. The closure leaves 11 stores in the province operating under the Home Hardware banner.

SUPPLIER NEWS
BYHALIA, Miss. — Roxul USA affiliate Rockfon, a subsidiary of Danish-based Rockwool International, has confirmed plans to build its first North American acoustic ceiling manufacturing facility in the United States. The facility will be located in Marshall County, Miss., adjacent to the current Roxul USA factory, approximately 30 miles south of Memphis, Tenn. The new Rockfon facility represents an initial investment of approximately $40 million. Construction of the 130,000-square-foot facility is expected to begin in early 2016 with production expected to begin mid-2017. The new facility will employ approximately 100 people.

COLOGNE, Germany — Registration is now open for the 4th Global DIY Summit, a conference for European and North American home improvement retailers and suppliers. The DIY Summit will be held June 8 and 9, 2016, in Stockholm, Sweden. This year the motto of the event is “A Disruptive World−New Trends in Home Improvement.” Topics will include: connected home, new challenges in the digital world, leadership performance, and an examination of home improvement around the world. Early bird registration is available until March 15, 2016.

MIDDLETON, WIS. — Earnings for Spectrum Brands Holdings fell 45% on higher expenses, stemming from the consumer-products company’s recent acquisitions and other one-time items during the fourth quarter. At the same time, the company reported a sales leap of 11%. Overall for the fourth quarter, Spectrum Brands reported a profit of $26.6 million, down from $48.1 million a year earlier.

FRANKFURT — Henkel’s Q3 operating profits increased by a higher margin than anticipated, with a gain of 12.3% to €778 million ($1.12 million). CEO Kasper Rorsted noted the Russian and American markets were areas of improvement. Rorsted wants to see the firm’s brands expand in the U.S. “We need to consistently become bigger in the U.S.”

ECONOMIC INDICATORS
Sales in the U.S. new single-family houses in October were 495,000 at a seasonally adjusted annual rate, up 10.7% from September and up 4.9% from October 2014. New home sales jumped 10.7% from the previous month. Strength in new housing sales was offset by a 3.4% drop in existing home sales. The median sales price of new houses sold in October was $281,500; the average sales price was $366,000. The seasonally adjusted estimate of new houses for sale at the end of October was 226,000, which represents a supply of 5.5 months at the current sales rate. (U.S. Commerce Dept.)

Following four months of gains, retail sales fell 0.5% in September to $43.3 billion. Sales were down in eight of 11 subsectors, representing 60% of retail trade. Sales at building material and garden equipment and supplies dealers advanced 0.4%, though the level of sales remained below the all-time high recorded in May. Retail watcher Ed Strapagiel notes that the figures represent a “soft” trend leading into the holiday shopping season, bad news for store merchandisers, who rely on holiday sales the most. (StatCan)

PEOPLE ON THE MOVE
The Canadian Hardware & Housewares Manufacturers Association will induct three industry veterans into its Hall of Fame in 2016. Vaughn Crofford, the association’s president, announced that Home Style magazine founder Laurie O’Halloran, Bill Calisina of Bissell Canada, and James Mumby of Dynamic Paint Products will form the 32nd cohort of honourees. The three will be inducted at a luncheon during the CHHMA Spring Conference in April.

Coast Distributors has appointed Anthony Snell to its management team as purchasing manager for all three warehouses in British Columbia. He will work with re-buyers in each location and manage Coast’s new Surrey office and warehouse. He’ll also oversee the three Coast sales reps and the warehouse staff in the new Surrey location, a major step for the company in its push to be a complete hardware supplier on the West Coast. (604-371-1341)

CLASSIFIED ADS