May 15, 2017 Volume xxiii, #20

“I cook with wine. Sometimes I even add it to the food.”
—W. C. Fields (American comedian, actor, and writer, 1880–1946)

IN THIS ISSUE:

• Vendors enjoy solid traffic at NHS, despite no-show by Lowe’s buyers

• Canadian Tire announces acquisition, post sales increase in Q1

• CRBSC reorganizes, names ABSDA’s Denis Melanson chair

• Canac looks to expansion of west side of Quebec, then Ontario

• PLUS: Rioux Ace Building Centre, Lowe’s Canada supports flood victims, new facilities for BMR Matco store, Richard Paulin to retire, GreatStar acquires Arrow Fastener, Matthew Payzant awarded as Young Retailer, Ply Gem reports Q1 loss, Home Hardware teams up with Parks Canada, and more!
  
  

Vendors enjoy solid traffic at NHS, despite no-show by Lowe’s buyers

LAS VEGAS — Canadian vendors in Las Vegas this week were largely positive about the traffic and customer contacts they experienced throughout the three days of the National Hardware Show. The show, held this year from May 9 to 11, long-ago established itself as the destination for most of the Canadian hardware industry, with Canadian Tire, Home Hardware, Groupe BMR, Federated Co-operatives, and Home Depot Canada among the retailers that sent teams of buyers down.

The most conspicuous absence from Canada was from the country’s number-two player, Lowe’s Canada. That company decided at virtually the last minute to cancel its participation. Lowe’s Canada had originally planned to send up to 18 buyers from both its Lowe’s and RONA teams. According to a spokesperson for the company, the decision was made based on a desire to “focus on the business during this busy time of year, particularly given the shift in the weather.”

Nevertheless, other retailers were there in force, including senior decision makers. They included Joel Marks, VP Merchandising at Home Hardware Stores Ltd., Randy Martin, VP of procurement for TIMBER MART, Mike Daniels, GM of Spancan, and Tony Steier, Home and Building Solutions Director at Federated Co-operatives Limited. And there was plenty for them to see, as new products and innovations were particularly in evidence this year. The show again featured a strong showing by Canadian vendors, including RCR, Nuvo Iron, Task Tools, EAB, CTM Hardware, and Richelieu Hardware, which was exhibiting for the first time in more than a decade. There was even a group stand sponsored by Export Quebec.

The culmination of buyer-vendor liaisons was the Maple Leaf Night by the Canadian Hardware and Housewares Manufacturers Association. This event again managed to draw the buyer community from Canada to share drinks and stories at the Mirage hotel on May 9. According to CHHMA’s Sam Moncada, about 225 people attended overall.

Canadian Tire announces acquisition, post sales increase in Q1

TORONTO ― Canadian Tire Corp. reported healthy gains in its first quarter, including an increase in sales by its Canadian Tire Retail segment (which includes Canadian Tire-bannered stores) of 2.0%. That business’s same-store sales were up 0.5% compared to the prior-year quarter. And a new acquisition underscores the company’s desire to boost its presence in the kitchen category.

Overall consolidated retail sales for the corporation were up by $95.0 million, or 3.8%. Excluding petroleum, consolidated retail sales were up 1.4%. Consolidated revenue increased $194.1 million, or 7.6%, which includes a $62.4 million increase in petroleum revenue thanks to higher gas prices. Canadian Tire’s Retail segment enjoyed a revenue increase of 8.5% in the first quarter. Excluding petroleum, it was up 6.8%.

Canadian Tire has also entered into an agreement to acquire Padinox Inc., the company that owns the Canadian rights to the Paderno brand of kitchenware. In a release, the company says the acquisition, “coupled with Canadian Tire’s strength in product development and marketing, will play a central role in Canadian Tire’s new cooking innovations and expanded kitchen assortment.”

As part of the transaction, the manufacturing and wholesale distribution operations of Padinox Inc., based in Prince Edward Island, are being sold to Meyer Canada, a distributor of cookware and related kitchen products. Meyer’s other licensed brands include Farberware, Rachael Ray, Paula Deen, and Cake Boss.

According to CTR President Allan MacDonald in a call to analysts, “Kitchen is a brand-driven category, and our 8% penetration of owned brands in kitchen pales in comparison to the 88% we have in Christmas.” The Paderno acquisition is part of a move to increase that share of branded kitchen sales.

CRBSC reorganizes, names ABSDA’s Denis Melanson chair

OTTAWA — The board of directors of the Canadian Retail Building Supply Council (CRBSC) has appointed Denis Melanson as its new chair. The move follows the sudden resignation two weeks ago of AQMAT head Richard Darveau as CRBSC chair.

Now, the CRBSC, the national organization made up of the five regional building supply associations across Canada—ABSDA (Atlantic Canada), AQMAT (Quebec), LBMAO (Ontario), WRLA (Western Canada), and BSIABC (British Columbia)—are unrolling a plan for the near future.

Melanson, who is president of the ABSDA, will serve as chair for a two-year term. The CRBSC was legally incorporated in 2016 when the regional associations identified the need to unite as a structured entity to better respond to the changes in the building supply industry, specifically at the national level.

As part of that mandate, it hosted a meeting with key industry stakeholders on March 22 in Halifax. “We were thrilled to host 33 industry leaders from across the country at our leadership summit,” said Melanson. “They assisted in a program which validated exactly what the CRBSC’s priorities should be when charting a plan for the future.”

Four strategic priorities were identified, with the need for a unified national voice at the top of the list. “The absence of a national voice hindered us from advocating as one on issues and topics that affect our industry. Going forward, the CRBSC will act as a unified national voice for the building supply industry,” Melanson continued.

The CRBSC will hold a national meeting in Montreal in June to finalize an action plan based on the recommendations and strategic direction provided at the Halifax leadership summit.

Canac looks to expansion of west side of Quebec, then Ontario

L’ANCIENNE-LORETTE, Que. — The grand opening last week of a store in Granby, Que., about an hour east of Montreal, is a clear indication of the commitment by retail giant Canac to move in on the greater Montreal market. And after actively expanding into new markets in the east side of the province, Canac, which is based in L’Ancienne-Lorette, near Quebec City, is now looking westward for new markets. Jean Laberge, president of Canac, says a store slated for Rivière-du-Loup would sew up markets on the east side of the St. Lawrence River. “It will complete for us the east side of the province.”

But, he adds, “We are slowly moving west. There’s room there for many, many more stores for Canac.”

That expansion could even include Anglophone markets in the future. Already, the company has translated its website and flyers into English in anticipation of opening a store in Ontario by as early as 2019. And while he considers the Ottawa market well served, he says there are other opportunities in the Ontario market.

“We looked for land in Ontario, near the border, where we could install Canac stores. We are almost ready to go into the English market,” he says.

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RETAILER NEWS

WINNIPEG — Distribution Rioux Ace Building Centre in Saint-Louis-du-Ha! Ha! is the newest member of the Ace banner. Owners Guy Rioux and Marie-Francine Pelletier purchased the original 1,800-square-foot location two years ago with the goal of increasing its size. The 4,800-square-foot location now features an 8,000-square-foot drive-through and a 25,000-square-foot lumberyard. “The growth of the store means they have created 12 new jobs and they expect to have up to 15 during the peak seasons,” said Mark Blouin, business development director for Ace Canada.

BOUCHERVILLE, Que. ― Lowe’s Canada has implemented a nationwide campaign to provide support for the Canadian Red Cross to help spring flooding victims. Customers from all Lowe’s Canada stores―Lowe’s, RONA, Réno-Dépôt, Marcil, and Ace―are being invited to make a donation toward the Quebec Flood 2017 and Canada Flood 2017 funds to help their fellow citizens. The Canadian Red Cross will use the funds to meet the recovery needs of flood-affected residents across the country. Flood victims will benefit from the funds raised within their province.

BOUCHERVILLE, Que. — BMR has opened the new facilities of its BMR Matco store in Beloeil, Que., following an investment of $1.8 million to expand the warehouse and build a shelter for building materials. Now connected to the store, the new warehouse allows the company to keep a wider line of building materials in inventory. Other changes include the addition of a BBQ Québec zone, a decoration service, an estimation service, and boom truck delivery, as well as a revamped layout for some departments.

LONGUEUIL, Que. — Door and window manufacturer Groupe Atis has closed the acquisition of dealer Groupe Racine in Saint-Eustache. It’s the company’s 20th acquisition since its start in 2004. Atis President Robert Doyon told Le Journal de Montréal that he wants to double his business over the next five years. The Racine banner will continue under the new ownership.

ST. JACOBS, Ont. — Two Ontario Home Hardware stores celebrated grand re-openings last week. Fines Home Hardware in Cornwall has added a new front entrance and façade, as well as expanding its offerings with 5,000 new products and a larger garden centre. In Tavistock, Yantzi Home Hardware’s ribbon cutting and barbecue marked the store’s 65th year in business.

BOUCHERVILLE, Que. — Lowe’s Canada announced that its independent affiliate dealer RONA Lespérance is opening a third store, in Blainville, Que. The new store is the result of an investment of nearly $10 million and will create 50 new jobs. The 40,000-square-foot retail space features large window displays, a 10,000-square-foot garden centre, and a 22,500-square-foot indoor lumberyard. Owner André Lespérance’s father joined the RONA banner in the mid-1960s.

ST. JACOBS, Ont. — Home Hardware Stores has joined with Parks Canada to create a line of Beauti-Tone paint colours “inspired by the breathtaking scenery of our land.” The line is part of Home’s celebration of Canada’s 150th anniversary.

SUPPLIER NEWS
SADDLE BROOK, N.J. — All shares of Arrow Fastener have been acquired from Masco by Hangzhou GreatStar Industrial Co., a Chinese hand and power tool manufacturer. Arrow’s range of tools will continue to be manufactured at its New Jersey plant, which will also serve as a North American distribution hub for GreatStar products. Arrow’s management team remains in place.

HOBOKEN, N.J. — Newell Brands’ Q1 profits soared by 52% to $164 million amid high demand for Rubbermaid containers and Sharpie pens. Core sales increased by 2.5% to $3.27 billion. The company also announced that it had closed the sale of 10% of its brand holdings to better focus on its core business.

LANCASTER, Pa. — Armstrong Flooring sustained a $7.8 million loss in Q1. Total revenues amounted to $265.2 million for the quarter.

CARY, N.C. — Ply Gem Holdings reported a Q1 loss of $3.6 million. The company, whose products include patio doors and vinyl siding, saw net sales increase 5.2% to $430 million. Operating earnings were $11.8 million, an improvement of $2.3 million from the first quarter of 2016.

ECONOMIC INDICATORS
New house prices were up in 10 of the 27 metropolitan areas surveyed, with the largest increases in Ontario, in Oshawa (+1.1%) and Guelph (+0.9%). Vancouver was the top contributor to the national gain, with prices up 0.7%. Ottawa (+0.6%) and Windsor, Ont., (+0.4%) also posted significant price gains. In Toronto, prices edged up 0.2%. Year over year, national new house prices were up 3.3%. (StatCan)

PEOPLE ON THE MOVE
Richard Paulin will retire from his role as President of the Hillman Group Canada, effective July 1. He joined H. Paulin & Co. Limited in 1977 and started his career as a financial analyst. Harry Paulin, Richard’s grandfather, started the company in 1920. It was family-owned and operated until 1972 when it went public on the Toronto Stock Exchange. Hillman acquired H. Paulin in 2013 and Richard took on the role of President of Hillman Canada at that time.

The North American Retail Hardware Association held its annual awards dinner for young retailers last week in conjunction with the National Hardware Show. Winners from across North America were honoured, including a Canadian: Matthew Payzant, General Manager of Payzant Home Hardware Building Centre in Sackville, N.S. 

Festool has announced the appointment of Aaron Brading as Chief Sales Officer, responsible for leading the company’s sales functions in the U.S. and Canada. Previously with Hilti Inc., Brading led teams in the power tools and accessories, and civil and energy divisions.

Susan Collins has joined the customer service department at CashierPRO, a Stratford, Ont.-based company that provides point-of-sale and inventory management systems for hardware, farm, and building materials dealers. Collins has a background in retail services, accounting, and inventory management, most recently as the operations manager at Crompton Home Hardware Building Centres. She also was a software platform specialist, providing training and support for Epicor and Epicor/Dimensions products.

Thomas Kinisky has been named CEO and President of Saint-Gobain Corp., Saint-Gobain’s North American holding company. He takes over from John Crowe. Kinisky joined Norton Co. in 1989, a year before it was acquired by Saint-Gobain. Most recently, he held the role of President of Saint-Gobain Performance Plastics.

NOTED
Developing World Connections will host its second Ontario golf tournament and gala on June 6 at Copper Creek Golf Club in Kleinburg, Ont. The event will raise money to go toward Light Up Guatemala, DWC’s initiative to install clean-burning eco-stoves into the homes of impoverished families so they can be healthier and reduce their impact on the environment. (Click herefor more information.)

OVERHEARD…
“Owning our own brands provides us with a competitive edge and we are thrilled to add Paderno to our portfolio of world-class brands.”
―Allan MacDonald, president of Canadian Tire Retail, on the company’s acquisition of the Canadian licensee of Paderno, which makes cookware in Prince Edward Island.

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