December 19, 2016 Volume xxii, #47

“What I don't like about office Christmas parties is looking for a job the next day.” —Phyllis Diller (1917-2012, American stand-up comedian, actress, and voice artist.)

A Holiday Message from TEAM HARDLINES: All of us at the World Headquarters would like to extend our sincere wishes for a safe and happy holiday to you and your loved ones. Remember, there’s no issue next week. See you January 2! —Margaret, Sigrid, Katherine, Maggie, David, Beverly & Michael

IN THIS ISSUE:

  • BMR classifies its stores with new banner options

  • RONA conversions, support for affiliates all part of Lowe’s growth strategy

  • Home delivery from Home Depot stores still to come in Canada

  • Canadian Tire squeezes lower prices for products to drive sales

  • PLUS: TIMBER MART welcomes B.C. member, Home Hardware in National Capital Region, RONA plants one million trees, Amar Doman buys CanWel shares, Taiga promotions, Swinn moves up at Dow, Ply Gem has been recognized, CertainTeed awarded, Newell to acquire, Acklands-Grainger fined, and more!

BMR classifies its stores with new banner options

BOUCHERVILLE, Que. — Groupe BMR has unveiled a new banner strategy for its member dealers. Starting in 2017, BMR stores will gradually be segmented into four banners. The aim, says the company, is “to better serve customers” and “position dealers to reflect their specific expertise.” BMR will cover the costs of the conversions for dealers.

The banners will be as follows:

  • BMR Extra will be used by the group’s big box stores, offering a wide selection of products and services.
  • BMR Expert is designed for building centres that offer a wide variety of building materials and cater mainly to contractors.
  • BMR Express will identify smaller hardware stores, whether local or in small towns, that hold everyday hardware products and provide customers with personalized service.
  • BMR as a standalone banner will be used on home centres that cater to the general DIY customer with a mix of hardware and building materials.

While all BMR stores will benefit from the new banners, the group’s Unimat-bannered dealers will be unaffected. BMR says it will retain about 60 Unimat dealers in its network.

Along with the new classifications, BMR has developed a new exterior signage façade, which aims to be more streamlined and modern than its predecessor. The program will be available for all 325 of BMR’s hardware and building supply stores in Quebec, Ontario, the Maritimes, and Saint-Pierre et Miquelon.

(Click here to see the full lineup of new banner logos. —Editor)

 

RONA conversions, support for affiliates all part of Lowe’s growth strategy

BOUCHERVILLE, Que. — Lowe’s Canada has big plans for both its legacy Lowe’s banner and for the RONA banner it acquired last spring. That includes the conversion of some 40 existing RONA big box stores to the Lowe’s format, 23 of them outside Quebec, starting in spring 2017.

The conversion of RONA stores within Quebec, meanwhile, is hampered by systems software conversion, which won’t be resolved earlier than 2018. By 2019, another 17 big boxes in Quebec are slated for conversion.

Speaking to the media six months after Lowe’s acquisition of RONA, company president Sylvain Prud’homme and EVP Alain Brisebois laid out a multi-banner strategy aimed at more consistently meeting customer expectations.

Under the plan, the Lowe’s banner will serve the big box segment, with RONA stores being primarily mid-sized proximity stores and smaller neighbourhood dealers represented by Ace. This strategy is not a “pure model,” but will provide a guideline for how stores will be structured to offer customers a range of options designed to meet the needs of different demographics. Some smaller RONA stores, for example, are reluctant to trade in their long-standing banner for Ace. Ace dealers, who have smaller stores, are also a priority, says the company.

RONA intends to support the dealer growth with enhanced distribution services for its affiliate dealers.

In fact, the RONA brand has been fingered as a key driver of growth for Lowe’s Canada. “We have begun to reposition the RONA banner, with the goal of making the banner the number-one retailer in the proximity store market—small and medium surfaces—which currently accounts for about 56% of the home improvement market in Canada,” said Prud’homme.

 

Home delivery from Home Depot stores still to come in Canada

ATLANTA — Home Depot is staking a lot on blending its online business with its extensive bricks-and-mortar footprint throughout North America. That represents more than 2,000 stores in the U.S. and Mexico, and another 182 in Canada.

During the past several months, the company has been rolling out a new delivery service that lets people who are ordering online have their purchases delivered right to their homes. It’s now in about 1,600 stores and, according to the company, the program has resulted in double-digit growth in deliveries. About half of that growth is believed to be from incremental sales. The service is seen as a way to grow both the pro and DIY sectors of the business.

However, it has yet to come to Canada.

The Canadian operation considers the investment in interconnected capabilities “one of our top focuses,” says Emily de Carlo, a spokesperson for Home Depot Canada. “At this time, the BODFS or ‘buy online deliver from store’ program has not been implemented yet in Canada and is still in its planning phase. When the project does launch for the Canadian market, it will serve both our DIY and pro customer bases to create a frictionless customer experience end-to-end.”

No timeline was given for when home delivery from Home Depot stores would be available in Canada.

Canadian Tire squeezes lower prices for products to drive sales

 

TORONTO — Canadian Tire is looking for ways to drive efficiency and sees improved margins and same-store sales growth drivers for improvements. According to Stephen Wetmore, the company has been concentrating on products, revenue, and the nature and timing of promotional activities.

In a call to analysts following the release of the company’s third-quarter results, Wetmore referred to “some really hardcore initiatives to drop our pricing to get better products” that includes selling higher-quality products, but at lower prices. The products are being tested and evaluated to ensure good quality, while pricing goes back to what Wetmore called “excellent sourcing.” He also referred to the importance of getting the correct mix of product by season, by month, and by category.

Private label plays an important role for Canadian Tire stores, as well. A range of lines that are exclusive to Canadian Tire and sourced directly from Asia include power tools, camping, outdoor living, and décor categories. “…[N]ow we can control them from manufacturing to shelf, [which] allows us to have control in terms of costs, but quality across the board, as well.”

Wetmore added that the company has to deliver on product quality, noting that initiatives like the “Tested in Canada” campaign, which has regular Canadian Tire customers trying out the products themselves, puts onus on the company to deliver.

 

DID YOU KNOW…?

... that our sister publication, Hardlines Home Improvement Quarterly, is mailed to more than 11,000 retailers and store managers across Canada? Or that the next issue will be in the mail in mid-January? If you’re not getting this amazing magazine, click here for more information now. Dealers get it free and so do advertisers!

RETAILER NEWS

VAUGHAN, Ont. — TIMBER MART has welcomed modular residential and commercial builder Muchalat Construction Ltd. to the group. The company has been serving residents and contractors of Vancouver Island for 35 years. It has 55 staff and operates two locations, a head office in Courtenay, B.C., and a 28,000-square-foot modular plant in Cumberland, B.C. “With the many modular manufacturers in the area, it was essential that we join a group that could lend us the buying power needed to compete in our local market,” says Joe Formosa, owner and president of Muchalat Construction.

ST. JACOBS, Ont. — The Aylmer sector of Gatineau, Que., is home to the new Quincaillerie Home Hardware d’Aylmer, located inside the Galeries Aylmer. At 10,000 square feet, the store carries products in categories including, hardware, Beauti-Tone paint, and home décor. The store is the second location in the National Capital Region for dealer-owners Marc Clement and Isabel Lamarche, who also own Capital Home Hardware in Ottawa.

BOUCHERVILLE, Que. — RONA announced it has recently completed its commitment to plant one million trees in Alberta’s boreal forests, near Slave Lake. The project, initiated in 2011 through Totem Building Supplies, which was acquired by RONA, was scheduled for completion by 2021. The project helped the Lesser Slave region replenish its landscape by planting one million trees in areas burned by fires as far back as 1998.

BENTONVILLE, Ark. — Walmart is reaching out to hurried last-minute shoppers, announcing that it will offer free in-store pick-up on all online orders placed by 6 p.m. on December 23. In addition, a newly launched website is focused on allowing customers to review remaining inventory at their local stores.

 

SUPPLIER NEWS
VANCOUVER — Amar Doman, CEO and chairman of CanWel Building Materials, bought 10,000 shares in the company recently. With an average price of $5.61 per share, the value of the transaction totalled $56,100.

CALGARY — Ply Gem has been recognized with Boma Best Gold Certification for its Canadian headquarters and window and door manufacturing facility. Awarded by the Building Owners and Managers Association of Canada, Boma Best is the country’s industry standard for commercial sustainability certification, recognizing outstanding environmental performance and management.

VALLEY FORGE, Pa. — CertainTeed’s Sustainable Insulation products have been awarded EPD verification that indicates conformance with stringent type III environmental declarations set by UL Environment and the International Standards Organization.

ATLANTA — Newell Brands is investing a total of $570 million to acquire two companies. The manufacturer of Rubbermaid-brand products has agreed to buy New Zealand-based food storage container maker Sistema Plastics for $470 million. At the same time, the company announced its pending acquisition of Smith Mountain Industries, which makes candles under the WoodWick brand.

EDMONTON — Acklands-Grainger has been hit with a $500,000 fine after pleading guilty to violating a ban on ozone-depleting products. Environment Canada said its investigation found the company to be selling products containing prohibited hydrochlorofluorocarbons, which the company admitted in court.

 

PEOPLE ON THE MOVE
At Taiga Building Supplies, Chris Jones will retire as VP, Allied Products, at month’s end. Jones got his start with the company in 1993 and since then has moved from overseeing roofing and insulation lines to his current position. Succeeding him will be Dave McNeil, currently VP Eastern Canada and National Accounts. McNeil, who joined the company in 2001, will combine his National Accounts responsibilities with the Allied Products portfolio. His role as VP Eastern Canada will be assumed by Bruno Jean, a 25-year veteran of the industry who has managed both of Taiga’s Quebec branches since 2010. Both appointments take effect on New Year’s Day.

At Dow Building Solutions, Martha Swinn, formerly national account manager for Canada, assumes the role of regional sales director for all markets in Eastern Canada. Swinn joined Dow Canada in 1991 and was named to her most recent position in 2012. David Kelly succeeds Swinn in the national account manager role. He joined the company in 1989 and was most recently senior account manager for the Ontario residential market.

Jon Louch has joined Condor Chemicals, a Drummondville, Que.-based company that manufactures roof vents, plastic cements, and coatings for flooring and foundations. As Ontario and Western Canada sales manager, he will be working with key accounts to build the company’s business in these regions. Louch was formerly with Exchange-A-Blade (now EAB) as national account manager in Ontario. (647-999-6634; jlouch@condor.pro)

 

ECONOMIC INDICATORS
Housing starts dipped 5.5% in November to 183,989 units seasonally adjusted, from 192,297 units in October. Urban starts decreased by 5.0% seasonally adjusted to 166,828 units, while multiple urban starts decreased by 7.7% to 105,915 units. Year over year, starts were down a whopping 15.0%. (CMHC)

Municipalities issued $7.6 billion worth of building permits in October, up 8.7% from September. Higher construction intentions for commercial structures and residential dwellings in Alberta were responsible for much of the gain, as builders filed permits in advance of the changes in the provincial building code. The value of permits for single-family dwellings rose 7.7% to $2.8 billion in October, the third consecutive monthly increase. The advance mainly stemmed from higher construction intentions in Alberta and Ontario. In the multi-family dwelling component, $2.3 billion worth of permits were issued in October, up 7.7% from September. (StatCan)


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