January 6, 2016 Volume xxii, #1

“A hero is someone who understands the responsibility that comes with his freedom.”
—Bob Dylan (American songwriter, musician, and poet, 1941- )

IN THIS ISSUE:

• TIM-BR MART strategically expands commercial division

• Peavey ranked among top 10 corporate cultures

• Luxury spending: big $$ for home improvement channel

• Canadian Tire puts more ad dollars into digital

• PLUS: Amazon has record holiday sales, Home Depot eyes Cuba, Wal-Mart and Target apps, Boise Cascade acquires GP business unit, Canadian company provides staff scheduling software, a new marketing exec at Wal-Mart —and more!

TIM-BR MART strategically expands commercial division

VAUGHAN, Ont. — TIM-BR MART Group is looking to strategically expand its commercial division. But, Mark Finucane, VP of commercial for the company, says that the buying group is pursuing that growth in a measured way. “We’re looking for quality over quantity,” he stresses.

In the past 15 months, TIM-BR MART has bolstered its ranks of commercial dealers, which provide important volume for a buying group. In fact, according to President Bernie Owens, TIM-BR MART has the highest volume of drywall purchases of any buying group in Canada. Its latest members are: Clare Interior Supplies in Hamilton, Ont.; Master Building Materials in Woodbridge, Ont.; and Manugypse in Quebec City—the group’s first commercial dealer in the province of Quebec.

Finucane says each of these new members bring TIM-BR MART more volume, increases the group’s critical mass, and broadens its buying power.

Peavey ranked among top 10 corporate cultures

RED DEER, Alta. ― Peavey Industries, parent company of Peavey Mart stores, has been named one of Canada’s 10 Most Admired Corporate Cultures of 2015.

The hardware and farm supplies chain currently has 36 stores stretching from Kamloops, B.C., to Winnipeg, with its head office and distribution centre in Red Deer. Operating under the Peavey Mart name since 1975, it uses the tagline, “hardware and a whole lot more.” The retailer also offers local sustainability products including beekeeping, home food preparation, and lawn and garden products.

Peavey’s submission was scored on six categories: vision and leadership, recruitment and hiring for fit, cultural alignment and measurement, retention, rewards and recognition, organizational performance, and corporate social responsibility. Distinctive elements of Peavey’s corporate culture, which helped it make the list, include internal programs for “kudos”, team-building, fundraising for co-workers in need, and health and safety.     

“I can see our strengths in each of the categories we are evaluated on,” says Doug Anderson, president of Peavey Industries. “How we hire. Respecting each other’s unique abilities and contributions. The fact that others can’t believe we can accomplish what we do, the way we do it.”

Corporate social responsibility initiatives have included electric vehicle charging stations, and powering its stores and home office with renewable energy. As well, the Peavey Mart Community Agricultural Grant provides up to $50,000 each year to non-profit groups.

Last year, Peavey Mart added stores in Kamloops, B.C., and Strathmore, Alta., as well as adding office and distribution space to its head office in Red Deer.

Luxury spending: big $$ for home improvement channel

Stevens, Pa. — A new report indicates that wealthy Americans are spending more than ever on home improvement related products and less on “bling.” According to “Home Luxury Report USA,” published by luxury marketing guru Pamela Danziger, major appliances, bath, and building products are hot in the luxury home category, with kitchen appliances and laundry appliances representing the top two most purchased products within the category. 

Investments in home improvements are considered a more solid long-term investment, says Danziger. “For example, buying a new handbag or outfit gives a momentary thrill, but once the newness wears off, it is just another thing in the closet,” she notes. “But investing in home improvements, like redesigning the closet or new kitchen appliances, is something that greatly improves the quality of your everyday life.”

Affluents, as she calls them (income earners above $100,000) are picking up the pace in spending in furniture, lamps and lighting, floor coverings, major home appliances, building products, window coverings, and bath fixtures. “American affluents have a passion to gain the greatest return on their investment in spending and where they are investing their money today reflects it.”

The report further indicates that national brands hold a lot of sway with wealthy consumers. The top-rated brands are LG, followed by GE. As far as shopping destinations, Home Depot and Lowe’s take the lead. 

“Because at any one time over half of all affluents—about 14 million out of the 28 million affluent households—are making or planning a home furnishings purchase, the market potential is still strong for home brands,” she says. But those customers are doing lots of research ahead of time, and shopping online more than ever, so marketers have to be “at the top of their game,” she warns.

This new study gives a seven-year perspective on trends in affluent home purchases, from 2008-2014. For more information on the report, contact Pam Danziger at Unity Marketing.

Canadian Tire puts more ad dollars into digital

TORONTO — When Canadian Tire launched its Woods camping and outdoor brand last year, the retailer didn’t include any TV advertising in its mix. While the promotion of both Canadian Tire and its proprietary brands remains a priority, more and more emphasis than ever before is being put on digital advertising.

The new focus was disclosed by Dean McCann, executive vice president and CFO, during a call to analysts following the release of the company’s third-quarter results.

“The launch of the Woods campaign this year was 100% digital. We didn't use TV for that, and that was a great learning experience. For the first time, we launched a major brand without traditional media.”

He called the initiative “very successful from a learning standpoint,” adding that the brand is performing well. “So you will see next year more of a transition away from the traditional media and to new media.”

DID YOU KNOW…?

RETAILER NEWS

SEATTLE — Amazon.ca has reported its busiest holiday sales ever, with a record number of packages shipped during the season. Amazon Prime offers unlimited free two-day shipping and Amazon reports that more than three million people worldwide joined Prime during the third week of December. (On Cyber Monday, Amazon.ca customers purchased enough LEGO to reach the top of the CN Tower 27 times.)

ATLANTA ― The lifting of the U.S. embargo on Cuba creates opportunities for home improvement, but challenges remain, according to the Huffington Post. About nine out of 10 Cubans own their homes, many of which are ripe for repair, aided by government subsidies for renovations. Home Depot has shown interest in taking advantage of the new regulations, which explicitly permit sales of building materials for private construction. CEO Craig Menear was cautious, however. “Cuba is an area we’re watching carefully,” he said.

BENTONVILLE, Ark. ― Walmart is introducing a new feature to its mobile app that will allow customers to pay in store, following the success of a similar platform at Starbucks, Fortune reports. The retailer now joins such companies as Apple, Samsung, Google, and PayPal in adopting the technology, which Forrester Research forecasts will process $142 billion in transactions by 2019.

MINNEAPOLIS ― Target is taking steps to develop its own mobile wallet platform. The company has not committed to a launch yet, but could do so as early as within a year, although sources stressed that it is too early to speculate. While decisions have already been taken to partner with credit card companies and adopting scanning technology to process payments, no in-store testing has taken place yet, according to a source.

SUPPLIER NEWS
BOISE, Idaho ―Boise Cascade has reached an agreement to purchase Georgia-Pacific LLC’s engineered lumber production facilities located at Thorsby, Ala., and Roxboro, N.C., for $215 million, including a closing date working capital target of $25 million. The company currently plans to use approximately $90 million of its cash and $130 million in new borrowing to pay for the transaction, which is expected to close in the first half of 2016. The Thorsby facility produces laminated veneer lumber (LVL) and the Roxboro facility currently produces I-joists. The Roxboro’s LVL facility is currently idled, but Boise plans to get that operation up and running again.

TORONTO ― Employers spend an average of 2.8 hours each week dealing with absenteeism, according to industry research by Mercer Canada. Reducing that window has become a mission for Calgary entrepreneur Kory Arsenault. His eSchedule program manages shift changes for anywhere from five to 15,000 employees and tracks and approves their requests for time-off. The web-based software counts Ace Hardware among its customers. (Special for our faithful Hardlines readers: a 15-day free trial. Click here to find out more.)

PEOPLE ON THE MOVE
Duncan Fulton, SVP at Canadian Tire Corp. and chief marketing officer for FGL Sports and Mark’s, has been named Canada's 2015 Marketer of the Year by the Canadian Marketing Association. Fulton, who was instrumental in the rebranding of Sport Chek, has led the company’s strategy for the last six years to tie its brand to sports and Canada's communities through a series of sponsorship agreements, experiential events, and integrated marketing and communication campaigns.

Wal-Mart has named Tony Rogers chief marketing officer as it attempts to buoy its sales and build its customer base. Rogers, who takes over from Stephen Quinn, has been with the company for a decade, most recently as chief marketing officer for Wal-Mart in China.

NOTED
Product sales for smart homes are estimated to soar by 1,000% over the next five years. A report by Juniper Research says lower technology costs and rising consumer awareness are driving the trend.

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