June 20, 2016 Volume xxii, #25

“The true sign of intelligence is not knowledge but imagination.”
—Albert Einstein (German-born theoretical physicist, 1879-1955)

IN THIS ISSUE:

• Lowe’s Canada announces new leadership team

• Orgill Idea Centre a hotbed for merchandise customization

• BMR has five-year investment plan that will start with Beloeil, Que., store

• Canadian Tire catalogue reflects slowdown of bricks-and-mortar in favour of digital sales

• PLUS: Ace in Kaslo, B.C., Castle in Baddeck, N.S., Home Hardware in Neepawa, Man., Walmart Canada phases out Visa, Richelieu Hardware’s new showroom—and more!

Lowe’s Canada announces new leadership team

BOUCHERVILLE, Que. — Lowe’s Canada has formalized its leadership team following its takeover of RONA inc. The new lineup includes some RONA veterans and at least one newcomer to the company. The reorganization reflects the company’s efforts to help drive Lowe’s Canadian business strategy with a new operating model focused on growth.

Coming from the RONA side, Alain Brisebois will work closely with the leadership team to define and implement the banner strategies. Guy Beaumier will lead the pro-contractor stores and Reno-Depot. Christian Proulx will lead human resources and communications. Serge Ethier will lead the proximity stores.

New to Lowe’s is Jim Caldwell, who joins effective today and will lead the big box business unit. Most recently, he was president of the Brick Group, Canada’s largest furniture retailer. He also worked for Wal-Mart in Canada. Caldwell will be the senior executive in place in Lowe’s Toronto office.

Finally, Brendan Hughes has moved up from Lowe’s U.S. office in Mooresville, N.C., to lead the alignment of the different banner strategies and head up the project management office and business intelligence.

“Our new structure will allow us to increase our focus on customers, allowing us to better co-ordinate our resources and efforts and to have a maximum impact on the segments we serve,” said Sylvain Prud’homme, president and CEO of Lowe’s Canada.

Titles for each of these individuals had yet to be finalized as of press time. They will all report directly to Prud’homme.

“Each member of the leadership team will play a key role, enabling us to maximize the potential of all of our banners to ensure strong growth across all of our different markets,” Prud’homme added. “Following Lowe’s recent acquisition of RONA, this team of seasoned experts will contribute to the alignment of our two organizations so we can become the number-one choice of Canadians for all their home improvement needs.”

Recruitment is currently under way to select a candidate to lead the administration function, including financial business support, accounting, and legal. 

Orgill Concept Centre a hotbed for merchandise customization

MEMPHIS, Tenn. — Hardware wholesaler Orgill, Inc. doesn’t offer a specific banner program for its customers, but it takes the business of merchandising very seriously. It will even develop merchandising and layouts for existing customers and for its various regions.

The concepts are generated and laid out in a facility that’s a short drive from Orgill’s headquarters in Memphis. Called the Concept Centre, it is actually a former Milwaukee distribution centre with 240,000 square feet of space. Canadian customers who have attended Orgill’s buying shows in the U.S. will recognize store concepts such as “Kodiak Trail Hardware & Supply,” “North Lake Lumber,” and “Windsor Falls Home Centre” as formats with assortments tailored specifically for Canadian customers.

All those store formats were developed right at the Concept Centre.

The facility is also used for developing planograms for its private-label programs for products sourced through Orgill’s own Worldwide Sourcing channel. And it’s where planograms and merchandising are developed that will be shipped to each of Orgill’s own shows. “We build it, we crate it, and we ship it,” says Philip Walker, senior vice president, merchandising services for Orgill.

BMR has five-year investment plan that will start with Beloeil, Que., store

BOUCHERVILLE, Que. — Groupe BMR has made clear its mandate to grow its business, under the direction of Pierre Nolet, the newly appointed senior director−business development (see last week’s incredibly enlightening issue!—Editor). Based on its latest investment initiative, that growth strategy will include corporate stores as well as independent member-dealers.

The company is spending more than $1 million on its corporate store in Beloeil. The location, at 215 Brebeuf Street, will benefit from an expanded warehouse and shelter for building materials. The warehouse will be adjacent to the store, to improve access for customers. Work is expected to start in August and everything should be completed in December. The renovation centre will remain open during the work.

The expansion is part of a five-year investment plan by BMR to modernize its corporate stores to meet consumers’ changing needs. BMR is also working with various dealers that currently have development plans of their own.
 
“This investment will allow us to offer more building materials to meet our customers’ needs,” says Martin Lecomte, vice president of BMR’s retail division. “In addition to expanding our warehouse, we will add a heating system that will allow us to keep a larger selection of materials in inventory, which must be stored at a specific temperature to remain in good condition.”

BMR, now a subsidiary of La Coop fédérée, combines 325 renovation centres and hardware store in Quebec, Ontario, and the Maritimes, as well as on the French islands of Saint-Pierre et Miquelon.

Canadian Tire catalogue reflects slowdown of bricks-and-mortar in favour of digital sales

TORONTO ― Wow! Canadian Tire’s newly revived print catalogue has been driving—wait for it—the company’s online sales. And that’s just the result the giant retailer was aiming for.

Called the “Wow Guide,” the print catalogue revives a venerable Canadian Tire tradition that was ended nine years ago. The newest iteration was sent to 12 million households in Canada featuring products in a range of categories including outdoor living, sporting goods, tools, and automotive. The Wow Guide reflects a greater focus on digital sales, aimed at driving people to the Canadian Tire website.

According to company executives, that mission was accomplished. Just a week after the book was launched, online sales doubled, and CTR executives say they’ve learned a lot from the program. Another catalogue is planned for the fall.

DID YOU KNOW…?

RETAILER NEWS

WINNIPEG ― Ace Canada’s newest member is Saint-Paulin Building Centre, which celebrated joining the banner with a three-day sale early this month. Owner Dominic Crete was pleased with the changes to his store, “We’ve a good response to the new Ace paint,” he said. “It did well during our recent event.” The store in Saint-Paulin, southwest of Shawinigan, Que., was welcomed by Ace’s National Director of Business Development, Josée Desrosiers, who called Crete “a young retailer who is aggressive in his market.”

WINNIPEG ― Ace Canada announced that the neighbourhood Building Supplies store in Kaslo, B.C., has joined the Ace banner. The store celebrated with a grand re-opening at the beginning of the month. Store owner Jeff Davie called the community response “crazy,” noting that lunch was served to more than 200 visitors. “We are thrilled with the response to the Ace brand,” said Bill Morrison, President of Ace Canada, “and we’re proud to have Jeff and his staff as part of the Ace team.”

MISSISSAUGA, Ont. — Castle has announced a new member in Baddeck, N.S. Baddeck Building Supplies Company Ltd. is located on the northern shore of Bras d'Or Lake on Cape Breton Island. It was established in 1967 as a full-service drive-through lumberyard and hardware store by James MacDonald. Baddeck Building Supplies has supplied the local community for almost 50 years and has been a Pittsburgh paint dealer for more than 40 years. MacDonald’s sons Sheldon and Stuart continue their father’s legacy with their focus on customer service and expert advice.
 
ST. JACOBS, Ont. ― Neepawa Home Hardware in Neepawa, Man., has undergone a complete renovation, holding a grand re-opening last week. “Our newly renovated store provides our customers with the exceptional product selection and expert advice that Home Hardware is known for,” says dealer-owner Michelle Gerrard. In addition to expanding inventory, the store has doubled its staff and added a new Home Expressions department and Paint Boutique.

MISSISSAUGA, Ont. ― Walmart Canada announced this weekend that it will phase out acceptance of Visa cards in its stores, citing “unacceptably high” card fees. Visas charges fees to retailers roughly comparable to its main rival MasterCard, but the latter offers lower rates for large retailers like Walmart. The new policy will be rolled out beginning July 18 in Thunder Bay. Walmart joins the ranks of retailers including No Frills, which also pointed to high fees as a factor, and Costco, who don’t take Visa.

SUPPLIER NEWS
WINNIPEG ― The Western Retail Lumber Association has announced the schedule for its 2017 Buying Show and Convention from January 18 to 20. The events include an opening night gala sponsored by Castle Building Centres, a luncheon hosted by Sexton Group, and a closing party sponsored by Jeld-Wen Windows and Doors. Click here for more details (online registration coming soon).

OAK BROOK, Ill. — Ace Hardware International is now using Blue Ridge’s supply chain planning technology. The technology will be used to unify and enhance supply chain planning functions across the co-op’s global distribution centres and retail locations. Blue Ridge uses cloud technology designed to help clients such as Ace to predict and forecast customer demand patterns and manage long lead times. It is also intended to help to improve internal collaboration, supporting 600 stores across 62 countries.

ECONOMIC CONDITIONS
After reaching an all-time high in April, sales of existing homes in Canada declined 2.8% in May, according to the latest statistics. The decreases affected about 70% of all markets, led by those in British Columbia and Ontario where the number of homes listed for sale has fallen to multi-year or all-time lows. Actual (not seasonally adjusted) sales activity was up 9.6% year-over-year in May 2016 and stood 15.1% above the 10-year average for the month of May. At the same time, the association reported that its home price index rose 12.5% from May of 2015. (Canadian Real Estate Association)

OVERHEARD…
“I don’t see any reason why we can’t continue to occupy the same space in e-commerce that we occupy in bricks and mortars in the not too distant future.”
―Allan MacDonald, COO of Canadian Tire Corp., on the rise of online sales for the company, especially in light of the boost those online sales have received thanks to the launch of Canadian Tire’s print catalogue, the “Wow Guide.”

“We’re proud that our guiding ethic—believing that community and the common good is simply good business—continues to resonate with consumers.”
—Terry Davis, CEO of Home Hardware Stores Limited, on Home Hardware being ranked as one of the most highly regarded companies in Canada.

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