October 3, 2016 Volume xxii, #37

“The highest and most beautiful things in life are not to be heard about, nor read about, nor seen but, if one will, are to be lived.”
—Søren Kierkegaard (Danish philosopher, poet, and social critic, 1813-1855)

IN THIS ISSUE:

• Exclusive with CEO Terry Davis: good gets great at Home Hardware

• Hardlines Conference tackles challenges facing home improvement industry

• Home Hardware signs John St. as agency of record

• It’s time: recycled paint saves waste and budgets

• PLUS: Home Hardware named one of Canada’s 10 most trusted brands, Home Depot Canada removes Halloween novelty, Home Hardware stores celebrates milestones, Burgess at All Weather, Lowe’s looks for new agency, Super Remover expanding, Vicwest opens Centre of Excellence, GAF helps, Dimplex sold—and more!
  
  

Exclusive with CEO Terry Davis: good gets great at Home Hardware

ST. JACOBS, Ont. ― At the recent Home Hardware Fall Market, dealers were generally, and sometimes surprisingly, consistent in their reports that business is up year to date. Against this positive backdrop, Home Hardware CEO Terry Davis spoke with HARDLINES about internal changes that are geared to driving the company, reflecting the latest market’s theme, “From good to great.”

Big changes in the marketing department indicate Home is keen to stay abreast of what the new customer looks like. That means encouraging new ideas and getting more analytical than ever before. Davis says the hiring of Rick McNabb, formerly with Cara Foods (Harvey’s and Swiss Chalet), as VP sales and marketing, is a big part of the refresh at the dealer-owned co-op. McNabb has been responsible for pushing Home Hardware to dig deeper into its numbers to best understand the motivations and habits of millennials, and for shaking up its advertising side (see story in this issue —Editor).

Davis points out that his efforts, since taking over in 2014, to enforce company standards among all dealers have been successful in securing a consistent image and brand among Home Hardware customers country-wide. He had a target of 42 stores to be terminated for choosing not to adopt what he calls Home’s standard operating procedures initiative. But new owners have been found for some of these stores.

“We want the stores to be well branded and live up to the expectations of customers. But we don’t want them to be cookie cutter,” he emphasizes. “Each dealer must be free to add their own personality.”

Hardlines Conference tackles challenges facing home improvement industry

SPECIAL REPORT — Drawing on this year’s theme “Renovating the Art of Retail,” the speaker line-up at the 21st annual Hardlines Conference is filled with innovators, retail leaders, and branding experts. It takes place October 18 to 19 at the Sheraton on the Falls hotel in Niagara Falls, Ont.

On the first day, audience members will hear from Jay Heubner, president and general manager of Ace International, on how the company equips its dealers to deliver on a promise of being the helpful hardware brand and how support will continue with its growing ranks of dealers in Canada.

Nicolas Couture, now the third generation of his family to work for Gabriel Couture & Fils Ltée, will tell the story of how the business grew from a modest shop with five employees to 50 employees and four TIMBER MART locations. Dustin Kaehr, a retail motivator, formerly with Do it Best, will then provide insights into how all stores can experience such growth—simply by keeping customer experience top of mind.

Audience favourites Aron Gampel from Scotiabank and Ibrahim Ibrahim of U.K.-based retail consultancy Portland, return to offer their predictions on the year ahead for the economy and the future of retail, respectively.  

On day two, Sumit Srivastava from eBay Canada and Al Meyers of Kalypso will weigh in on the importance of ecommerce and how retailers can deliver the omnichannel experience consumers have come to expect. Drawing on brand-new data sponsored by HARDLINES, Sean Copeland from the Parent Life Network will give us the scoop on how retailers can cater to the growing millennial demographic.

Finally, you won’t want to miss Ron Beal, Orgill’s president and CEO, who will update the audience on the company’s presence in Canada.
 
Emceed by Mag Ruffman, acclaimed television personality of Road to Avonlea and ToolGirl, and located in the heart of Niagara Falls, Ont., the 21st annual Hardlines Conference promises to be equal parts fun, thought-provoking, and educational.

(For full agenda and to register, visit www.hardlines.ca/events/hardlines-conference.)

Home Hardware signs John St. as agency of record

ST. JACOBS, Ont. — After more than four decades with Morris Saffer Agency, Home Hardware Stores Limited has signed with a new advertising agency. John St. is a downtown Toronto firm (its address is, wait for it… 172 John Street—Editor) that provides a range of creative, design, and digital services with a client roster that includes Loblaws, Tangerine Bank, Maple Leaf Foods, Mitsubishi Motors, Shoppers Drug Mart, and Winners.

Home Hardware is legendary for its loyalty to suppliers—and that included Saffer, which in turn was instrumental in making Home Hardware one of the most recognizable brands in the country. But since the arrival of Rick McNabb, Home’s new vice-president, marketing and sales, the dealer-owned co-op has been confronting change on several fronts.

“We are proud of our accomplishments—strong brand attributes, recognizable brand awareness and a higher level of service that sets us apart from the competition,” says McNabb. “We want to build on that success story and reach a new generation of customers on the channels they use most often. We met with some of the most accomplished and talented agencies in the country, and in the end, we felt that John St. was best suited to meet our needs.”

John St. is an integrated ad agency that opened a Montreal office at the beginning of last year and was purchased by London-based holding company WPP in 2013. The search for a new agency took place during the past summer and was led by McNabb, who applied his experience as a senior executive with a history of working in the advertising world, both as a senior executive at Ted Bates Advertising Agency and as a former senior executive at Cara Foods.

“We were looking for specific things: strong brand and channel planning, strong digital, design and retail experience, a track record of powerful and insightful creative, and perhaps most importantly, a really good DNA fit,” explains McNabb.

It’s time: recycled paint saves waste and budgets

BOUCHERVILLE, Que. — While traditional paint companies continue to count on trends and finishings to drive their sales, at Laurentide Paint, its Boomerang collection presents special marketing challenges. This line of recycled paints was originally acquired from Norman Maurice, a retired school principal in Victoriaville, Que., who developed a technique for making eco-friendly paints low in volatile organic compounds by remixing discarded returns with just 1% new paint.

Isabelle Huot, sales and marketing co-ordinator at Laurentide Re-sources, explains that marketing involves informing the customer. “Recycled paint isn’t ‘virgin’ paint, so people often need to be educated. Otherwise they’re afraid to buy it.” Consumers unfamiliar with the concept might, for instance, think it’s going to be “dirty” paint, she says.

The education pays off, however. “We’ve been doing two consumer shows a year, spring and fall. Now people know what it is.” And the values are hard to beat. Boomerang gets paint from Benjamin Moore and Sico, and even old Boomerang paint gets returned to create a third generation.

Because the “raw” material is already paint, overhead is cut dramatically. Returned paint is often high quality, as the cheaper stuff tends to get used up first time around. “If you have a lower budget for paint, you’re more likely to use all of it.”

(The full article on paint trends appears in the upcoming edition of our sister publication, Hardlines Home Improvement Quarterly magazine. Free to dealers across Canada! Click here to see a recent digital edition and subscribe yourself! —Editor)

DID YOU KNOW…?

... who’s coming to the 21st Annual Hardlines Conference? Just some of the companies signed up to attend so far include Lowe’s, Orgill, Federated Co-op, TIMBER MART, Moen, EAB, Garant, Henkel, BMR, Home Depot, Home Hardware, First Alert, Taiga, Loxscreen, MAAX, McDonald Sales, Taymor, Jeld-Wen, Osram Sylvania, Wolf Gugler & Assoc., Thomas & Betts, Task Tools, Armacell, Moen, Jacobs & Thompson, and Alu-Rex. October 18 & 19 in Niagara Falls. Shouldn’t you be there, too? Sign up right now!

RETAILER NEWS

ST. JACOBS, Ont. — Home Hardware Stores Limited has been recognized as one of Canada’s 10 most trusted brands. The 2016 Gustavson Brand Trust Index, out of the University of Victoria, highlights the importance of trust when it comes to making purchasing decisions. Consumers across Canada rated 276 brands in 27 categories on a wide range of factors including quality, value for money, innovation, and honesty. Home Hardware ranked fourth, after MEC, Presidents Choice, and Costco.

ST. JACOBS, Ont. — A number of Home Hardware stores celebrated milestones last week. Hardisty Home Hardware Building Centre in Hardisty, Alta., opened its doors tomorrow with an official ribbon-cutting, under dealer-owner Greg Schmidt. Callbecks Home Hardware Building Centre, in Summerside, P.E.I., has expanded to 25,000 square feet of retail space plus a new 6,000-square-foot warehouse. A ribbon-cutting ceremony was held September 29. Celebrating 20 years in business, Hodgins Home Hardware in Lucknow, Ont., under dealer-owner Laura Hodgins Johnston, hosted a customer appreciation barbecue and anniversary sale over the weekend. Val and Bill Manes at Acton Home Hardware also held a 20-year celebration over the weekend. The store has grown from its original size of 2,000 square feet to almost 10,000 square feet of retail space and has moved from the downtown core to the east side of town. In Plattsville, Ont., Plattsville Home Hardware has new dealer-owners: Kim McLellan and Dave Gerber. The store hosted a grand re-opening this past weekend, as well.

MOORESVILLE, N.C. — Lowe’s Cos. is looking for a new media agency after working with agency OMD for a decade. Marketing consultancy R3 is managing the review. The move comes just 10 months after Vice President of Advertising Marci Grebstein was promoted to the job of chief marketing officer. Lowe’s spent US$320 million on media in 2015.

SYDNEY ― The legal battle between former partners Lowe’s and Woolworths over joint venture Masters Home Improvement could continue through the end of the year. According to the Australian Financial Review, a prolonged feud could imperil the planned sale of Masters’ properties to a group of real estate investors for $725 million. An Australian court will rule tomorrow on Lowe’s petition for the appointment of an independent liquidator to wind down Hydrox, the company created by the JV partners to hold Masters.

SUPPLIER NEWS
GRANBY, Que. ― Super Remover is investing $700,000 to double the square footage of its warehouse, in order to be able to support projected growth. The company is amping up its presence outside Quebec, recently signing a deal with Lowe’s Canada, which will fill a gap in its distribution. At the same time, it is cautiously scouting potential clients in the U.S., with meetings lined up for October in Vermont and Maine. “There is interest [there],” says Éric Rousselle, VP of sales and marketing, “but it’s harder to enter the United States.” The company’s acquisition of Elano International, which provides its shipping containers, is another motivation for the expansion, which is slated for completion within a month.

OAKVILLE, Ont. ― Vicwest celebrated the grand opening of its new “Centre of Excellence” manufacturing facility in Acheson, Alta., near Edmonton, with a ribbon cutting last week. The company made the move after two years of study which identified Western Canada as the best region for its new location. The 60,000-square-foot facility has 18 full-time operators on the floor.

ROCKY HILL, Conn. ― Henkel marked its 140th anniversary last week, with “Henkel Day” celebrations in 51 North American sites, as well as locations worldwide. Beginning in 1876 as a small business in Aachen, Germany, the historic capital of the Carolingian Empire, Henkel moved to Dusseldorf and released its first consumer product, a “Cleaning Soda,” two years later. It got into the adhesives business in 1922 and made its initial public offering in 1985. The company has recently been recognized among Fortune’s “Most Admired Companies” and in the Dow Jones Sustainability Index for 2016.

VANCOUVER, Wash. ― Cadet Manufacturing, which has made heating products since 1957, will be acquired by Ireland’s Glen Dimplex Group, the world’s largest manufacturer of electrical heating. Like Cadet, Glen Dimplex is a privately held company managed by its founding family. The sale will be effective at closing later this fall. Cadet will retain its name for the foreseeable future, maintain its headquarters in Vancouver, and continue to be overseen by its existing management team. Its founder and current CEO, Dick Anderson, will continue with the company in a consulting role. Current president, Hutch Johnson, who has been with the company since 1998, will be promoted to CEO.

PARSIPPANY, N.J. — Roofing manufacturer GAF is continuing its partnership with No Roof Left Behind, a program that provides a new roof to deserving families in the U.S. and Canada. GAF provides the materials to the program, which gives contractors the framework to provide a new roof at no cost to a homeowner in need within their community. The partnership provides materials for contractors to install 70 new roofs for local families in need.

PEOPLE ON THE MOVE
At All Weather Windows, Stephen Burgess has joined in the role of general manager for the company’s Ontario operations. Burgess brings a strong track record in the industry that includes Master Lock and Newell Rubbermaid. With this hire, says the company, All Weather reaffirms its commitment to the Ontario market. (sburgess@allweatherwindows.com; 905-696-1505)

ECONOMIC INDICATORS
Lumber production by sawmills fell 10.1% from June to 5,300.3 thousand cubic metres in July. Compared with July 2015, lumber production rose 1.3%. Sawmills shipped 5,504.6 thousand cubic metres of lumber in July, down 8.9% from June, but up 7.3% from July 2015. (StatsCan)

OVERHEARD…
 “Home Hardware is an iconic brand. It’s ironic that for a brand that is as old as it is, it’s on trend. It’s not a big box. It’s service driven. Each store reflects the community it serves. People who know it love it. It’s our job to help get younger Canadians and new Canadians to love it like their parents do.” —Arthur Fleischmann, president of John St., Home Hardware’s new agency of record.

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