February 1, 2016 Volume xxii, #5

“It is not who is right, but what is right, that is of importance.”
— Thomas Huxley (British biologist and educator, 1825-1895)

IN THIS ISSUE:

• Home Hardware names VP marketing and sales

• Orgill adds trucks to serve Canadian customers

• Kitchen & Bath and Builders’ Shows big draw for Canadians

• LBM distributor adds new lines in Ontario

• PLUS: Lowe’s Canada to hire 3,000, Quebec gala a big draw, Beauti-Tone asks public to pick colour, Weiser adds Premis by Apple, Nicholson and Cates to distribute Certainteed lines, Grainger reports year-end, U.S. house prices, McKellar retires from Masco, Orchard Supply keeps growing—and more!

Home Hardware names VP marketing and sales

ST. JACOBS, Ont. — Rick McNabb has been named vice president, marketing and sales for Home Hardware Stores Ltd. The hire, which is effective March 7, comes after months of searching and brings in an outsider to the ranks of Canada’s largest co-op home improvement retailer, which is well known for hiring from within.

McNabb was formerly with Cara Foods, most recently as COO of Swiss Chalet and Harvey’s. In addition, his family has been in the home improvement business for 38 years: McNabb's brother Gary owns the Home Building Centre in Parry Sound, Ont.

The latest hire also continues the realignment of Home Hardware’s executive structure that began in 2015 under CEO Terry Davis. That restructure created a single merchandise organization responsible for all product sourcing led by one vice-president, Joel Marks. The addition of a vice-president, marketing and sales completes the formation of an integrated marketing and sales organization.

“As we strengthen our company for the future and ensure that we are well positioned to continue serving our dealer-owners, we welcome Rick’s extensive marketing and operations expertise and proven leadership to our team,” Davis said.
 
As part of the move, Dunc Wilson, who had been serving as acting vice president of operations, will now report directly to McNabb in a new role as executive director, retail sales and support. Rob Wallace, director, marketing, will also report to McNabb.

Orgill adds trucks to serve Canadian customers

MEMPHIS & LONDON, Ont. — Hardware wholesaler Orgill Inc. continues to beef up its new London facility, the former Chalifour Canada business that it acquired in 2015. Renamed Orgill Canada Hardlines and operating as a wholly-owned subsidiary, enhancements at the business include increasing the size of its truck fleet with a dedicated service for the growing base of customers in Central Canada.

“By the end of March, we will add 10 new tractors, 20 new trailers, and hire 10 new drivers to deliver product from our new London, Ont., distribution centre to customers located in Ontario and southern Quebec,” says Randy Williams, general manager, distribution for Orgill in Memphis.

In addition, service will continue as before to the West and Atlantic Canada. “Orgill Canada customers throughout the other provinces will continue receiving dependable service by contract carriers through Lakeside Logistics,” Williams adds.

Kitchen & Bath and Builders’ Shows big draw for Canadians

LAS VEGAS — Design & Construction Week in Las Vegas continued its growth and momentum with this year’s successful event, held Jan. 19 to 21 at the Las Vegas Convention Centre, and Canadians were there in force.

The Builders’ Show, as part of Design & Construction Week, featured the co-location of IBS and the National Kitchen & Bath Association’s Kitchen & Bath Industry Show. This year, DCW also included two partner events—the International Window Coverings Expo and The International Surface Event. This mega-event brought together more than 110,000 builders, general contractors, remodelers, designers, flooring professionals, as well as product specifiers from around the globe.

Bolstered by the growth in the American construction market, exhibitors went all out. The outdoor area was filled with model homes constructed for this event, including Ply Gem’s custom designed Innovation home titled the Home of Solutions. Featuring four solutions stations, the tour highlighted how to grow your business using Ply Gem’s products and design tools.

“The association between Ply Gem as an exterior building products company and the move to the outside exhibit area really resonated with our customers. We received a substantial amount of positive feedback on the Home of Solutions display,” said Ply Gem’s John Vukanovich, vice president, marketing, Canada.

Inside the Convention Centre, Canadian companies represented included Better Living Products, Richelieu, InStone, and Metrie. By mid-day of the first day, Peter Branidis, director of sales for Metrie, was feeling positive. “We see this as positioning ourselves for growth as the U.S. market improves. We’re ready.”

LBM distributor adds new lines in Ontario

BURLINGTON, Ont. — Alignments and realignments continue on Canada’s home improvement distribution landscape. Nicholson and Cates is the latest distributor to announce new supply agreements. The first is with Certainteed to distribute Certainteed’s PVC trim products in Ontario.

The new offering includes a full line of trim boards, sheets, corners, beadboard, columns, and mouldings. Certainteed, a subsidiary of France’s Saint-Gobain, is a Pennsylvania-based manufacturer of building materials.

“CertainTeed’s PVC offering allows us the opportunity to combine superior performance and innovative products, along with our dedication to servicing our customers,” says Rick McQuin, VP of market development at Nicholson and Cates. Nicholson and Cates has been in the LBM industry for more than 85 years. Its Specialty Products Division distributes a range of siding and decking brands, serving dealers throughout Ontario.

DID YOU KNOW…?

RETAILER NEWS

QUEBEC CITY — AQMAT, the hardware and home improvement association in Quebec, held its fourth annual Gala last week at the Château Frontenac. Co-hosted by AQMAT CEO Richard Darveau and Julie du Page, a popular Quebec actress and presenter, the event drew a sold-out crowd of 500 retailers and suppliers from throughout the province. Sixteen awards were given during the evening: six to employees, nine to businesses, and one for product of the year. Next year’s event will be held February 18, 2017.

TORONTO — Lowe’s Canada has announced plans to hire some 3,000 new employees to fill seasonal roles at its existing stores and positions at six new stores that are expected to open in British Columbia, Alberta, Saskatchewan, and Ontario by mid-2016. To help meet customer needs during the spring and summer seasons, Lowe’s will host its second annual National Hiring Day on March 5 at its 42 Lowe’s locations across Canada. The announcement coincides with the opening of two more stores last Thursday, in Ancaster and Mississauga, Ont.

ST. JACOBS, Ont. — Beauti-Tone, Home Hardware’s paint division, turned to the public to determine its 2016 colour of the year. The firm selected four trending colours, and invited consumers to vote on Home Hardware’s social media pages for their favourite. Voting ended last week to choose among Hot Cha-Cha-colate (brown), Avocado Dip (green), Japonica (pink) or French Charming (blue). The winner was French Charming.

SAN JOSE, Calif. — Lowe’s is growing its Orchard Supply Hardware chain, which the big box retailer bought out of bankruptcy in 2013. Orchard Supply is set to open nine stores in 2016, taking the total to 85. The company has locations throughout California and Oregon. Bob Tellier, president of Orchard Supply, says the company is predicting 33% new-store growth, with its format of 25,000 to 28,000 square feet plus a nursery that ranges from 3,000 to 8,000 square feet in size.

SUPPLIER NEWS
TORONTO — Smart lock manufacturer Weiser has added Premis, its first Apple HomeKit-compatible lock, to its portfolio. Premis promises homeowners the convenience of unlocking and locking the door using Siri voice controls and patented security features, including SecureScreen and the latest version of Weiser SmartKey security. “Weiser closely listens to feedback and monitors new technologies to develop products that meet consumer needs,” says Steve Kolobaric, Weiser’s marketing manager. “Premis was specifically developed to work with Apple HomeKit, a simple and secure smart home technology we truly believe in and are excited to support.”

CHICAGO —Grainger Supply reported a static sales performance of $10 billion for the fiscal year 2015, while Q4 sales of $2.5 billion edged down by 1% compared to a year before. Net earnings reported for the year totalled $769 million, representing a 4% decline from $802 million in 2014. In Canada, sales at Acklands-Grainger fell by 14% in local currency, largely due to volume, while operating earnings were down 60% when $300 million in restructuring costs are excluded.

ECONOMIC INDICATORS
House prices in the U.S. grew faster than anticipated in November, with the 20-City Composite jumping by 5.8%. Following a 5.5% rise in October, analysts had expected a slight acceleration to 5.6%. The jump was attributed to continued low mortgage rates, tight supplies, and an improving labour market. Sales of existing homes were up 6.5% in 2015 versus 2014, and the number of homes on the market averaged about a 4.8 months’ supply during the year; both numbers suggest a seller’s market. (S&P Case-Shiller Home Price Index)

PEOPLE ON THE MOVE
Dave McKellar, vice president retail sales at Masco Canada Limited, has retired after 26 years of service. He began his career in retail in 1974 as a buyer for the Hudson’s Bay Company. Along the way, he worked at companies including Black & Decker and Jacuzzi Whirlpool and Bath. In 1990, he joined Peerless Home Products, which later became the retail division of Delta Faucet Canada. Delta Faucet Canada joined with Brass Craft Canada in 2005 to become Masco Canada Limited. (DaveMcKellar1@gmail.com)

NOTED
Canadian Tire Corporation’s controlling shareholder Martha Billes has been named to the Canadian Association for the Advancement of Women and Sport and Physical Activity (CAAWS) Most Influential Women in Sport and Physical Activity List of 2015. The list is presented annually to recognize Canadian women for their scope, depth of leadership, and influence in sport and physical activity in Canada and internationally. Billes is chairman emeritus of Canadian Tire Jumpstart Charities, through which she channelled her passion for creating opportunities for kids to participate in athletics without financial barriers.           

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