February 27, 2017 Volume xxiii, #9

“The man who has no imagination has no wings.”
—Muhammad Ali (American world-champion boxer and activist, 1942-2016)

IN THIS ISSUE:

• Lowe’s Canada CEO Sylvain Prud’homme to speak at Hardlines Conference

• Orgill show draws Canadians from a range of banners to New Orleans

• Canada Night welcomes dealers at Orgill Market

• BMR plans conversion of some Unimat stores in coming months

• PLUS: Home Depot reports increase, Canadian Tire dealers up, Townsend Lumber’s new ownership, Wal-Mart sales up, Lowe’s in Edmonton, AQMAT holds Gala of Recognition, Deere & Co., new hire at Taymor, Greg Bridgeford at Lowe’s honoured, and more!
  
  

Lowe’s Canada CEO Sylvain Prud’homme to speak at Hardlines Conference

WORLD HEADQUARTERS, Toronto — Rounding out what is already an incredible roster of presenters, the closing speaker at the 22nd annual Hardlines Conference will be Sylvain Prud’homme, president and CEO of Lowe’s Canada.

Prud’homme has been at the helm of the company since February 2013, when he became the first Canadian to head the company. He came over from grocery retailing, where he had served as executive vice-president of merchandising for Loblaw. Before that, he ran Sobeys’ Western operations, and was a senior vice president at Wal-Mart Canada.

Prud’homme piloted Lowe’s through its takeover of RONA and is currently working with his teams to build Lowe’s retail presence in big boxes, traditional building centre formats, with pro customers, and among independents with the RONA and Ace banners.

The 22nd annual Hardlines Conference will be held again in Niagara Falls, Ont., from November 14 to 15. Prud’homme joins other top retail executives and thought leaders, including Daniel Lampron of Patrick Morin, Doug Anderson of Peavey Industries, and another newcomer to the roster, Jim Thompson, former head of Wal-Mart China and a former senior executive with Wal-Mart Canada.

(For more information on speakers and conference registration, please click here.)

Orgill show draws Canadians from a range of banners to New Orleans

NEW ORLEANS, La. — The sheer size of the Orgill Market makes it a must-attend for many Canadian dealers, and the latest show in New Orleans, February 16 to 18, attracted 350 accounts from across the country―despite poor weather in parts of the Northeast that prevented some dealers from completing their trek.

And with the opening of another distribution centre to serve Canadian customers, Memphis-based Orgill continues to enhance its viability in this country―and its appeal for Canadian dealers. (The new DC in Post Falls, Idaho, will serve the Western Canadian market.)

For dealers heading down from Canada, the sheer size of the event requires a rigorous schedule of visiting the many vendors, the new products, and—perhaps most importantly—the “hot buys” and other show specials that make the show so attractive to Canadian dealers.

The latest show featured some upgrades to its model stores. Maple Ridge Home Centre, aimed specifically at Canadian customers, featured a full inventory of Canadian-compliant products. It also offered expanded sections of lawn and garden, housewares, and paint. Another model store, Walnut Grove Hardware & Supply, featured 10,000 square feet of retail space, with a focus on lawn and garden, outdoor living, farm, and pet, while showcasing a variety of merchandising techniques to maximize floor space. 

This was the second time the show was held in New Orleans and Orgill has received positive response from customers. As a result, the company has announced plans to add the venue into its rotation of host cities going forward. 

“We were very encouraged by the energy and enthusiasm of our customers, especially those within the pro-oriented segment,” says Ron Beal, Orgill’s chairman, president, and CEO. “Retailers are anticipating a good year, and judging by the activity and comments we heard from retailers at the Spring Dealer Market, we have every indication that 2017 should be strong.”

Coming off a successful event in New Orleans, Orgill reported that pre-registration for its Fall Dealer Market scheduled for August 24 to 26 in Boston was already extremely strong.

Canada Night welcomes dealers at Orgill Market

NEW ORLEANS, La. — More than 250 dealers gathered at the end of day one of the Orgill Spring Market for a drink and a chance to rub shoulders with fellow Canucks during the Hardlines Canada Night Reception.

The event, which was supported by a number of (mostly Canadian) exhibiting vendors, offered a break after the show for dealers from a range of banners and from every province in the country, before they headed out to a night on the town in New Orleans’ fabled French Quarter. (Shown here: Michael McLarney, Beverly Allen, and David Chestnut of Hardlines prepare for the arrival of some 250 dealers at Canada Night.)

(If you’re an exhibiting vendor at the Orgill Market in Boston in August and would like information about being a sponsor, please contact David Chestnut.)

BMR plans conversion of some Unimat stores in coming months

BOUCHERVILLE, Que. ― As Groupe BMR ramps up support for its core BMR banner, it has no plans to diminish the Unimat banner that is also part of its stable of brands.

When La Coop fédérée bought BMR in 2015, it saw the acquisition as a way to fortify its presence in the retail home improvement arena in Quebec. While La Coop already had a range of home centre and hardware dealers under the Unimat banner, the addition of 180 BMR stores established the group as the largest Quebec-based retail organization in the home improvement sector.

It now has a total of 360 stores, with 230 under the BMR banner, which are further classified as either hardware, home centre, or contractor specialty stores depending on their updated branding (see our February 13 issue―Editor).

The company also maintains 86 Unimat stores. However, over the coming months, about 25 of them will convert to the BMR name, as either Expert, Extra, Express, or BMR. But 60 dealers will remain Unimat stores, ensuring that the banner remains a going concern.

DID YOU KNOW…?

...that Sylvain Prud’homme of Lowe’s Canada and Jim Thompson, former senior executive at Wal-Mart Canada, have just joined our roster of presenters at the 22nd annual Hardlines Conference? And did you know that our Early Bird Pricing will save you money? Act now to ensure you have a seat at this incredible networking and learning event, November 14 to 15 in Niagara Falls, Ont. For more info and to register, click here now!

RETAILER NEWS

ATLANTA — Home Depot has reported an increase of 5.8% in sales for the fourth quarter. Net earnings for the world’s largest home improvement banner rose to $1.74 billion, or $1.44 per share, from $1.47 billion, or $1.17 per share, a year ago. The Canadian business posted positive comps in local currency for the fourth quarter, representing 21 consecutive quarters of positive comps. The company announced it will buy back $15 million in shares.

TILLSONBURG, Ont. — Townsend Lumber announced new ownership recently. Laura Townsend and her husband, Mike Penner, have assumed ownership of the Townsend family businesses, which consists of Townsend Lumber, Kitchener Forest Products, Breeze Dried, and BreezeWood Floors. The business was established by David Townsend’s father Robert more than 50 years ago as a travelling sawmill, supplying local farmers with firewood for their tobacco kilns. The business succession makes Laura the third-generation owner.

BOUCHERVILLE, Que. — Lowe’s is taking on Edmonton in a big way. On March 2, the retailer will open its first Lowe’s store in Sherwood Park, located at 501 Emerald Dr. Representing a local investment of $29 million, it will create 130 full-time and 30 seasonal positions. Meanwhile, the RONA Home and Garden store in the community of Namao, north of Edmonton, will be the first RONA big box to convert to the Lowe’s banner. Renovations and inventory overhaul are expected to be completed by the summer. Once finished, the store will offer new categories, including appliances.

OAK BROOK, Ill. — Ace Hardware reported Q4 revenues of $1.2 billion, an increase of $67.6 million or 5.8% from a year ago. Net income was $21.5 million, an increase of $9.4 million or 77.7% from the close of 2015. Consolidated revenues for the full year were $5.1 billion, an increase of $80.5 million or 1.6% compared to the prior year. Annual net income was $161.2 million, an increase of $5.0 million or 3.2%. The 4.4% increase in retail same-store-sales during the quarter reported by the approximately 3,000 Ace retailers who share daily retail sales data was the result of increased customer count and average transaction size. Same-store-sales at these stores were up 2.5% for the full year.

BENTONVILLE, Ark. — U.S. same-store sales at Wal-Mart Stores rose by 1.8% in Q4, but profits declined 18% as the retail giant invested in its thriving e-retail channel to up its competitive game against Amazon. Analysts surveyed by Thomson Reuters expected on average a sales increase of just 1.3%. Online sales surged by almost 30% on the strength of Wal-Mart’s acquisition of Jet.com and its online grocery sales. Net income fell to $3.76 billion from $4.57 billion a year earlier, while total revenues reached $130.94 billion.

MOORESVILLE, N.C. ― Lowe’s continues to make cuts to its staff. The latest is the layoff of 430 employees from its corporate head office in Mooresville, N.C., plus another 70 support staff in Wilksboro, N.C. The cuts, says the company, represent less than one percent of its overall staff company wide.

SUPPLIER NEWS
LONGUEUIL, Que. — AQMAT, the Quebec hardware and building supply association, held its Gala of Recognition over the weekend at Quebec City’s historic Château Frontenac hotel, honouring industry greats and raising more than $13,000 for Montreal’s Hôpital Sainte-Anne foundation. Attendees exceeded the goal of $10,000 in online donations for the veterans’ facility. Lowe’s invited others to match its own $1,500 contribution, with BMR, Castle, Home Hardware, TIMBER MART, and Patrick Morin heeding the call. Sixteen dealers and employees were honoured in four categories at the fifth annual awards dinner.

MOLINE, Ill. — Deere & Co. reported net income of $193.8 million, or $0.61 per share, for the first quarter, compared with $254.4 million, or $0.80 per share, a year ago. Worldwide net sales and revenues for the first quarter increased 2%, to $5.625 billion, compared with $5.525 billion last year. Net sales of the equipment operations were $4.698 billion for the quarter compared with $4.769 billion a year ago.

PEOPLE ON THE MOVE
At Taymor industries, Debbie Lucas has joined as sales representative covering the retail channel in Alberta and both the retail and builders’ market channels in Saskatchewan. Lucas has several years of sales experience in Western Canada, working with interior designers, kitchen and bath showrooms, contractors, builders, and retailers and is a member of Construction Specification Canada. She takes over from Rob Putters, who has relocated and is now covering Vancouver Island and the Sunshine Coast. (dlucas@taymor.com, 780-993-0122; rputters@taymor.com, 250-418-0733)

Gregory M. Bridgeford of Lowe’s has been selected to receive the industry’s Global DIY Lifetime Award 2017 during the Global DIY Summit in Berlin on July 8. Bridgeford joined Lowe’s in 1982 as executive assistant to the chairman and through his 32-year career served in a variety of positions including the senior vice president for merchandising, marketing, and business development. In his role as Lowe’s first head of international business, he pioneered the company’s entry into Canada and Mexico, and was involved in the earliest stages of Lowe’s acquisition of RONA.

ECONOMIC INDICATORS
Following four consecutive monthly increases, retail sales decreased 0.5% in December. Declines were widespread as lower sales were reported in nine of 11 sub-sectors, representing 82% of retail trade. After removing the effects of price changes, retail sales in volume terms decreased 1.0%. Building material and garden equipment and supplies dealers reported higher sales for the fourth consecutive month, with an increase of 0.7%. (StatCan)

NOTED
Memphis-based hardware wholesaler Orgill is actually still a family-owned business. Founded in 1847, Orgill now distributes hardware and home improvement products to customers in 50 states, 10 Canadian provinces, and more than 50 countries throughout the world. Joe Orgill, representing the fifth generation of the family, still stands at the entrance of each dealer market to greet customers as they walk in the door.

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