September 19, 2016 Volume xxii, #35

“Hey, hey, my, my, rock and roll will never die.”
—Neil Young (Canadian musician, songwriter, author, and screenwriter, 1945- )

IN THIS ISSUE:

• Orgill expands its Canadian infrastructure

• Lowe’s formalizes business units and banners

• Next year’s lawn & garden trends from the International Garden Fair

• Back-to-school spending means more expenditures and more worries

• PLUS: Home Hardware’s anniversary tulip, new titles at Lowe’s, Lowe’s and Woolies battle in Australia, Jeld-Wen makes an acquisition —and more (well, actually, not that much more this week!)
  
  

Orgill expands Canadian infrastructure

MEMPHIS, Tenn. — Hardware wholesaler Orgill has been making changes to its Canadian operation in recent weeks. These include the continued expansion of its Canadian field service organization and accelerated plans to expand deliveries to Canadian retail customers on Orgill operated trucks. 

The recent consolidation of the buying function across the company into the Memphis head office meant the closure of the buying office in London, Ont., but it reflects a continuation of its North American approach to the market. This, says Orgill, will better facilitate the integration of goods from Canadian manufacturers into its worldwide product offering—available to all Orgill customers. 

Orgill adds that it has also significantly increased staffing at its London distribution centre to accommodate an additional 25,000 SKUs to the London assortment, bringing London’s total to nearly 60,000 items available to all Canadian customers.

Since Orgill Canada acquired Chalifour last year, the company has converted all procurement and replenishment over to the Orgill buying system. Orgill’s purchasing team in Memphis will work with all Orgill Canada vendors through the transition.

Lowe’s formalizes business units and banners

MONTREAL — At its recent RONA dealer show in Montreal, Lowe’s Canada unveiled the new structure for the company and its banners. They are: Big Box, including Lowe’s and RONA L’éntrepôt/Home & Garden; Proximity, the name RONA has historically used for its mid-sized home centres and building centres, all under the RONA name; Affiliate Dealers, using RONA and Ace; and the Pro/Reno-Depot business, which consists of Reno-Depot, Dick’s Lumber in Burnaby, B.C., Marcil in the Montreal region, and its fledgling Contractor First banner.

Within that structure, Lowe’s outlined five key “brand propositions.” For its large-format stores, it aims to move most RONA Home & Garden big boxes to the Lowe’s name within the next three years. The RONA big boxes in Quebec, which bear the L’éntrepôt name, will be reconsidered over time. (In a separate interview with HARDLINES, Lowe’s Canada President and CEO Sylvain Prud’homme said he’d “let the customer decide,” adding “I can’t confirm what the brand will be in Quebec.”)

The Lowe’s business falls under the aegis of Jim Caldwell, who heads up the Lowe’s banner’s regional support centre in the Greater Toronto Area.

RONA will remain the banner for the building centres. Serge Ethier is the EVP in charge of the proximity stores. For the stores that are independently owned, Philippe Element, VP, dealer sales and support, oversees those that are bannered under RONA. Ace will be targeted at smaller stores that specialize in hardware, seasonal, and paint. Bill Morrison is the vice president of the Ace Canada Division. Both men report to Alain Brisebois, EVP, affiliate dealers and shared services.

Next year’s lawn & garden trends from the International Garden Fair

COLOGNE, Germany — A number of trends, including retro stylings, were in evidence at the recent international trade show for the lawn and garden sector, spoga+gafa.

About 2,000 exhibitors from 60 countries gathered in Cologne from September 4 to 6, showcasing the latest in open-air lifestyle furnishings and accessories.

A trend called “attentive gardening” focuses on getting personally grounded by immersing oneself in gardening and yard work in one’s outdoor space. The notion is to create a refuge that enhances a gardener’s sense of well-being in the midst of nature, offering a contrast to the hectic pace of everyday life.

“Classics reloaded” promises to be one of the big hits of the 2016-17 season. For example, manufacturers are re-discovering the classic garden furniture forms like the Hollywood rocking chair and the foldable beach chair. At the same time, classic indoor looks such as the ’60s-style sofa will make a statement on the deck or patio. Classics are turning up even among gardening preferences, which accounts for the current boom in old types of vegetables such as chard, parsnips, and turnips.

Manufacturers of sunshades are creating multi-functional umbrellas with integrated LEDs, infra-red heating, and even loudspeakers. As for the materials themselves, cement is in. Whether for tea-lights or small pieces of furniture, this robust material creates a clean, modern ambiance.

For outdoor cooks, barbecues are becoming increasingly multi-functional, with models that can grill, smoke, and roast all in one. High-tech innovations include food thermometers with sensors that transmit data on the food’s internal temperature directly to the user’s smartphone via Bluetooth. And some models can be controlled with a mobile phone. The user can link up with the “smart grille” on wifi and control the temperature, monitor the grilling time, or start the self-cleaning process with an app.

(For more info on these products and the show itself, go to www.spogagafa.com.)

Back-to-school spending means more expenditures and more worries

TORONTO — Back-to-school spending just keeps climbing, according to a new report by savings website www.RetailMeNot.ca. And those costs have become more stressful for parents than ever before. In fact, 92% of Canadians agree that purchasing back-to-school items can be a financial burden on families.

RetailMeNot is a digital savings destination connecting consumers with retailers, restaurants, and brands, both online and in-store. 

This year, Canadian parents are expecting to spend an average of $472 on their child for back-to-school shopping, $143 more than what they expected to spend last year. 

DID YOU KNOW…?

... that we have some incredible companies sponsoring this year’s Hardlines Conference? We are pleased to announce that both Home Depot Canada and Lowe’s Canada will support the event this year, as well as a brand new company, Ingersoll Products (you’ve seen their very cool MudGun advertised on our website www.hardlines.ca!). They join a cadre of staunch supporters who have been with us in past years: Home Hardware Stores, The Mibro Group, Storesupport, Groupe BMR, Sexton Group, BMF, Super Remover, the National Hardware Show, Orgill Canada, King Marketing, Seljax, Schlage, and NRHA. Won’t you join us as well? Come to Niagara Falls, October 17 to 18, for the 21st Annual Hardlines Conference!

RETAILER NEWS

ST. JACOBS, Ont. — The Canada 150 tulip left Home Hardware’s Distribution Centre on September 6 and is making its way into Home Hardware stores across Canada. Officers with the Waterloo Regional Police Service were on hand to help kick off the tulip’s trek. This limited edition bulb, commissioned as the official tulip celebrating the 150th anniversary of Confederation, is available exclusively at Home Hardware. The co-op retailer has partnered with the National Capital Commission, the Kingdom of the Netherlands, and Communities in Bloom for the selection and distribution of the Canada 150 tulip. Developed in the Netherlands to celebrate Canada’s milestone in 2017, the tulip is white with red flames, evoking the Canadian flag.

TORONTO — Lowe’s expects to open 12 stores in total in Canada this year, most of them the result of the acquisition of leases from Target, which pulled out of Canada last year.

SYDNEY, Australia — Lowe’s has taken former partner Woolworths to court over the dissolution of their joint venture, Masters Home Improvement. The American retailer, which owned a one-third stake in the venture, is seeking an order from the Federal Court of Australia appointing a liquidator to oversee the winding down of the big box hardware chain. Masters has 60 stores and has so far racked up about $1 billion in losses for the joint venture. Meanwhile, sales at Masters Home Improvement have skyrocketed as prices are slashed ahead of a projected December 11 deadline for winding up the failed joint venture.

SUPPLIER NEWS
CHARLOTTE, N.C. ― Window and door maker Jeld-Wen Inc. has completed the acquisition of yet another Australian window company. It’s paying up to $100 million for Breezway from private-equity firm Crescent Capital. Breezway makes window products under its ArcPac building materials division. Over the past year, Jeld-Wen has also purchased Trend Windows & Doors and Aneeta Window Systems, both based in Australia.

PEOPLE ON THE MOVE
Tanbir Grover at Lowe’s Companies Canada has a new title. He’s now vice president, ecommerce and omnichannel. He was formerly senior director, ecommerce. Also at Lowe’s Canada, Igor Halencak, formerly head of marketing and merchandising, is now in charge of global sourcing and procurement.

Lowe’s Companies in the U.S. has announced that James K. Han has joined its executive team as senior vice president of business development. He reports to Chief Development Officer Richard D. Maltsbarger. He was most recently VP for global marketing, product management, and business development with Tyco International’s retail business.

Burlington Merchandising & Fixtures has hired Bill Blackborow in support of its growing manufacturing operation. Bill brings more than 35 years of experience in quality, safety, and people systems. He helps BMF position itself for further expansion in support of new and existing clients.

OVERHEARD…
“It’s not about selling. It’s about entertaining.” —Richard Montgomery, vice president & general manager, The Bay, Queen Street store, in downtown Toronto. He was on hand at an event in-store during the Toronto International Film Festival that featured a guest blogger presenting to an audience of about 50 people. He spoke with our own HARDLINES Editor.

OUT AND ABOUT

CLASSIFIED ADS