January 18, 2016 Volume xxii, #3

“Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly, and applying the wrong remedies.”
—Groucho Marx (greatest comedian ever, 1890-1977)

IN THIS ISSUE:

• TruServ Canada rebrands as Ace Canada, updates billing info

• TIM-BR MART restructures for greater efficiency

• Lowe’s adds senior merchant, gears up for more growth

• Cologne Hardware Fair: a treasure trove of new products for Canucks

• PLUS: New dealer joins Castle, new hires at King Marketing, Richelieu adds GRK, Wal-Mart to close stores, Epicor adds services, CanWel picks up new lines, Coleman retires from CanWel, Toolway adds to sales team, housing starts drop—and more!

TruServ Canada rebrands as Ace Canada, updates billing info

WINNIPEG — TruServ Canada has been renamed Ace Canada. The deal follows the realignment of Ace in this country with RONA inc., after RONA signed a master license agreement for the Ace brand in this country in August 2014. And while the company has been answering the phones as Ace Canada for months, the change was not made official until just before Christmas, according to a letter sent to vendors dated December 18, 2015.

The letter, signed by Bill Morrison, president of Ace Canada, clarifies that RONA is now using Ace Canada as an operating name for products and programs relating to its Ace Canada business, as the company moves more resources to Ace in order to support the influx of new retailers under the banner. It also unveiled a new logo for Ace Canada—and clarified billing information. “To facilitate the processing of your documents and invoices and to avoid unnecessary delays, we encourage you to make the necessary updates to your accounts receivable and/or billing systems. For clarity, the billing name that should appear on your invoices is RONA inc./Ace Canada,” the letter notes.

TruServ Canada was purchased by RONA in 2010, giving the Quebec-based company both a distribution centre in Western Canada and a foothold with a wider range of independents than it had before. Under RONA, TruServ dropped its affiliation—and costly licensing fees—with True Value Company in the U.S., switching its dealers from the True Value banner to a new TRU banner. Many of those dealers were concerned about having to switch again when RONA allied with Ace.

TIM-BR MART restructures for greater efficiency

VAUGHAN, Ont. ― TIM-BR MART is reorganizing its procurement, LBM distribution, lumber trading, and retail services support functions with an aim to increasing efficiency. And that includes some changes to the roles of its key leadership team.

Lumber trading and distribution will be led by John Morrissey, formerly VP of building materials, in his new role as VP of distribution and trading. Morrissey will oversee both the St-Nicholas, Que., facility and the DC in Surrey, B.C. Formerly responsible for all building materials procurement as vice-president of building materials, he will continue to work out of TIM-BR MART’s Dartmouth, N.S., office.

And Randy Martin has a new role. As vice-president of procurement, he will manage all building materials and hardware procurement, including TIM-BR MART’s relationships with the hardware buying group Spancan and hardware wholesaler Orgill Canada. Martin was formerly the direct report for all regional directors of member services as vice-president of business development.

The buying group’s Retail Services division is being re-named “Member Services” and its four Regional Directors of Members Services will now report directly to Jon Irwin, VP member services. TIM-BR MART’s Regional Directors of Member Services (RDMSs) (i.e.: Phil Temple, RDMS for Western Canada, Ian Cook, RDMS for Ontario, Daniel Rioux, RDMS for Quebec, and Dave Dingwell, RDMS for Atlantic Canada) will now report directly to Jon Irwin.

“This restructuring will further streamline our organizational structure and closely align our leadership team with their areas of expertise,” says Bernie Owens, president of the TIM-BR MART Group. “In turn, we will achieve greater organizational efficiency and take another step towards becoming best in class.”

Lowe’s adds senior merchant, gears up for more growth

TORONTO — With the announced hiring last week of a new head merchant at Lowe’s Canada, the country’s fastest-growing home improvement retailer (source: 2015-2016 Home Improvement Retail Report) is getting its house in order for its next level of growth.

Alan Blundell left Walmart Canada to join Lowe’s Canada in a newly created role as divisional vice president, merchandising, overseeing the merchandising function and having responsibility for leading the company’s category management strategy. According to Igor Halencak, head of marketing and merchandising, all merchandising functions will report to Blundell, who in turn reports to Halencak.

The realignment reflects the fact that the Lowe’s Canada merchandising team can now work separately from the U.S. head office. “We today have full autonomy over our assortment,” Halencak says. “But having said that, we do leverage our buying [with the U.S.] where it makes sense.”

Cologne Hardware Fair: a treasure trove of new products for Canucks

COLOGNE, Germany — The world’s largest hardware trade show will take place March 6 to 8, 2016, in Cologne. Celebrating 40 years, Eisenwarenmesse–the International Hardware Fair will feature some 2,700 exhibitors from 50-plus countries—80% from abroad.

The show focuses on the following segments: Tools, Industrial Supply, Fasteners and Fixings, Fittings, and Home Improvement, all spread over a million and a half square feet. “We have further developed Eisenwarenmesse−International Hardware Fair 2016 in order to accommodate the industry’s needs and trends more efficiently,” said Katharina Hamma, COO of Koelnmesse GmbH, which owns and operates the event. “Our trade visitors can once again look forward to an excellent range of high-quality offers as well as a supply of information that deals with the hot themes of the industry.”

For the first time ever an E-Commerce Theme Day is being staged, which will address the developments of the online trade and its effects on the hardware sector.

The show has traditionally been a good spot for Canadians looking for new products and packaging ideas. Vendors and buyers alike from every part of the country have attended in the past, and more are expected again this year.

NOTE: HARDLINES will again sponsor an incredible Canada Night International Reception at the Fair. All Canadians going to the show (and we strongly encourage you not to miss this world-class event!) are invited, along with your guests, customers, and new contacts that you’ll make when you go there. Contact Katherine Yager at the HARDLINES World Headquarters for more info.

DID YOU KNOW…?

RETAILER NEWS

MISSISSAUGA, Ont. — Castle Building Centres Group has announced its newest member in Western Canada, and the group’s first new location of 2016. This one is in Fisher River, a Cree community 200 km north of Winnipeg. Castle Fisher River Building Supplies is now under construction, with the project led by Chief David Crate and his Council, and scheduled for completion in April.

BENTONVILLE, Ark. — Wal-Mart will close 269 stores worldwide, including 154 in the U.S. Internationally, Wal-Mart is closing 115 stores outside the United States, most of them in Latin American markets. As of press time, HARDLINES cannot confirm any Canadian closings. Confirmed closings include 60 recently-closed, money-losing stores in Brazil and another 55 money-losing stores in other Latin American markets. Also closing: 23 Neighborhood Markets, 12 Supercenters, seven stores in Puerto Rico, six discount centers, and four Sam’s Clubs. Wal-Mart says it will focus on strengthening its Supercenters, optimizing Neighborhood Markets, and growing its e-commerce business.

TORONTO — The Hudson’s Bay Company is acquiring online retailer Gilt Groupe Holdings in a cash deal worth US$250 million. The acquisition is part of HBC’s effort to advance its off-price business through integration with its Saks OFF 5th stores. Gilt has more than nine million members, according to HBC.

SUPPLIER NEWS
MONTREAL — Richelieu Hardware has announced a new Canada-wide distribution agreement between its Reliable Fasteners division and GRK Fasteners Canada, a division of American-based Illinois Tool Works. GRK produces specialty fasteners for contractors, installers, and other construction and renovation professionals. They are mostly sold in hardware stores and home centres. According to Reliable GM René Labrecque, the new agreement “will benefit our customers as well as help us expand and diversify our functional hardware offering in Canada.”
AUSTIN, Texas — Epicor Software Corp., producer of point-of-sale software for businesses, has announced availability of its Gift and List Registry platform for Epicor Eagle N Series system. The Registry feature will allow independent retailers to take advantage of the benefits of gift list registries, such as wedding and baby shower services, which are a boon to sales at major chains. Consumers will be able to develop their own gift list registry from items sold at a given retailer which they can share publicly or keep private for their own reference.
ALIQUIPPA, Pa. — Versatex Building Products has reached an agreement with CanWel for the distribution of its PVC architectural trim, LBM Journal reports. The deal will see CanWel roll out the full Versatex line immediately at 12 locations, with the potential for expansion to four more sites in Ontario and B.C. down the road. Rick Kapres, sales and marketing VP for Versatex, said that his company plans to engage one new sales rep each for the Maritimes and Prairies. A similar agreement was reached with Snavely Forest Products’ Dallas division.

WOODBRIDGE, Ont. — Gary Coleman retired officially last week after 16 years at CanWel Building Materials―and more than 45 years working in this industry. Colleagues and customers were on hand for a surprise retirement party on Coleman’s behalf held just north of Toronto. During the evening, he got a bit of a roasting from two colleagues, one a customer and one a former colleague: Doug Shantz, Ontario merchandise and marketing manager LBM at Home Hardware Stores Ltd.; and Rick Royce, former VP sales for CanWel. 

ECONOMIC INDICATORS
Housing starts dropped in December from the previous month, to 172,965 units seasonally adjusted from 212,028 units in November, StatCan reports. Urban starts decreased by 19.1% in December to 159,007 units. Multiple urban starts decreased by 27.0% and single-detached urban starts held steady at 57,743 units. (CMHC)

The value of building permits issued by municipalities was down 19.6% from October to $6.2 billion in November, falling below the $7 billion mark for first time since May 2015. The decrease was the result of widespread declines in both residential and non-residential sectors in most provinces, particularly Alberta. The value of residential building permits fell 17.8% to $4 billion in November, the third decline in four months. The decrease stemmed from lower construction intentions for multi-family dwellings in nine provinces, led by Alberta, which had posted strong gains the previous month. (StatCan)

PEOPLE ON THE MOVE
King Marketing, the national manufacturers’ rep agency, has added four new sales representatives to its national team. In Quebec, King welcomed Jessica Turcotte, who previously worked with Reno-Depot; and Martin Bélanger, whose background includes a family construction business. In Winnipeg, Fab Di Nella brings 15 years of professional sales experience in the packaged and consumer goods industry to the Southern Manitoba territory. In Kelowna, Judy Steel is now responsible for sales in the Southern Interior of British Columbia. She was most recently with Match Marketing Group.

Toolway Industries has announced the relaunch of the Goldblatt masonry, drywall, and tiling tool brand in Canada. To support the initiative, the company has rounded out its sales force here. Ken Smith joins Toolway as national sales manager and oversees the entire Canadian sales team. This is a newly-created position reporting to Asher Peres, president. Smith was formerly at DAP Canada for more than three decades, most recently as national account manager. Ann Bedard joins Toolway’s Montreal branch as national account manager, working alongside Bertrand Latendresse co-managing the Quebec retail and Industrial markets. This is a newly-created position reporting to Jennifer Cave, VP business development. Bedard was previously account manager at Innovac. 

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