May 22, 2017 Volume xxiii, #21
“The man who works and is not bored is never old.”
—Pablo Casals (Spanish cellist, conductor, and composer, 1876-1973)
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New products and innovation abound at National Hardware Show in Las Vegas
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McNabb at Home Hardware says e-commerce is the big push for 2017
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Canadian Tire showcases new spring Canvas line of home décor products
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Lowe’s promises best of both worlds with conversion of Edmonton RONA store
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PLUS: Home Depot tops expectations, TORBSA donates to LBMAO tuition fund, Imperial honoured, Lowe’s acquires MRO supplier, Morrison promoted at Goodfellow, Buchanan joins Castle, Roberge et fils joins Home Hardware, CertainTeed hiring again, housing starts in the U.S., Mario Petraglia is RCR president, and more!
New products and innovation abound at National Hardware Show in Las Vegas
LAS VEGAS, Nev. — The range of new products being featured at this year’s National Hardware Show was nothing short of impressive. Innovation ranged from high-tech robotics to distinctly low-tech but eminently practical vintage stylings.
(Click here for our report on what we saw at the National Hardware Show from companies such as Belwith, Caframo, Worx, Saint-Gobain, Napoleon, BBQ Québec, Broilchef, and more.)
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McNabb at Home Hardware says e-commerce is the big push for 2017
ST. JACOBS, Ont. — Home Hardware Stores Ltd. is getting serious about its e-commerce business. The dealer-owned co-op is gearing up its distribution capabilities to serve consumers with online sales.
According to Rick McNabb, vice president of marketing and sales for Home Hardware, the company will launch a ship-to-home capability at the beginning of 2018. With three distribution centres across Canada, Home can utilize its existing logistics network as sources for products bought online, “and harness our roots as a wholesale distribution centre,” he says.
“We’re trying to position an e-commerce business that dealer-owners have empowered us to manage and run from [head office].”
The initiative will include the launch of a new website during the second half of 2017 that will feature a new campaign to promote Home’s brand and products. The goal of the website, says McNabb, will be to reflect the experience of shopping in a bricks-and-mortar Home Hardware store. “There’s a huge amount of excitement around the company about the future,” he adds.
“Our goal is to be a full omni-commerce retail channel.”
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Canadian Tire showcases new spring Canvas line of home décor products
TORONTO — Canadian Tire’s spring launch of its Canvas line showcased a number of new seasonal offerings in the company’s lines of spring and fall home living products. Canvas, which was launched for Christmas 2013, began as a platform primarily for seasonal products, but the last few years has seen it grow its indoor offerings, as well.
The patio furniture the company is promoting this spring focuses equally on fashion and functionality. Tracy Platt, brand design and development manager, consumer brands for Canadian Tire, says there’s an increased blurring of design elements across patio and home furniture lines.
“Indoor furniture trends are influencing the outdoor trends,” says Platt. “There are some patio tables I see that aren’t clear whether they belong inside or outside—they would work in either space.”
And a few of the products found in this year’s patio displays—such as a wicker basket with a lid—have even been repurposed from previous years’ indoor lines.
Platt adds that her team also takes the Canadian summer season into consideration when it comes to design. As an example, she points out an ottoman that looks like it’s made of wood, but is actually composed of rust-proof aluminum. It has a plastic lining on the inside to help protect its contents from the elements. “There are a lot of smart details like that—we’re very mindful of the Canadian season in our designs.”
Platt says she and her team, who come from design backgrounds, are always thinking about pushing the envelope a little with each launch. “We’ve really embraced colour, and we’ve embraced pattern this year.”
In contrast, many of the home furniture offerings are neutral in nature, with a high-end look. Lighting especially has been influenced by international trends, with many of Canvas’s table-top lights and chandeliers featuring stark metal industrial looks, which are then complemented by furniture with sharp lines and neutral shades.
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Lowe’s promises best of both worlds with conversion of Edmonton RONA store
TORONTO — Lowe’s Canada will gradually convert RONA’s big box Home and Garden stores to the Lowe’s banner. The first, Namao RONA in Edmonton’s north end, is being converted now, with an expected completion by this summer. The store is undergoing full reracking and remerchandising, while staff will be trained according to Lowe’s guidelines.
The store will take on Lowe’s own private brands such as Kobalt, and add heavy appliances. However, don’t expect it to be a strict cookie cutter example of existing Lowe’s stores. According to Alan Blundell, divisional vice president, merchandising for Lowe’s Canada, the refurbished outlet will combine the best of both banners, especially in the case of RONA’s expertise in catering to contractors.
“RONA knows pros and we have to make sure we build on that,” he said during a presentation at the recent Hardlines Meet the Buyers Breakfast. That means providing the breadth and depth of product that pro customers count on.
The new store will also reflect a move by Lowe’s Canada to depart from the current model, which was developed to cater largely to the Ontario market. With this refit, Lowe’s will look for ways to let local markets drive assortments to a greater degree.
The new Namao Lowe’s will feature 97,429 square feet of retail sales space, a 30,188-square-foot garden centre, and a lumberyard that comprises 16,922 square feet.
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RETAILER NEWS
ATLANTA — The Home Depot topped expectations with Q1 results boosted by a strong U.S. housing market and the beginning of the gardening season. The retailer reported sales of $23.9 billion for the first quarter of fiscal 2017, a 4.9% increase over the 2016 quarter. Same-store sales were positive 5.5%, with comp sales for U.S. stores up 6%. Net earnings climbed to $2 billion, up 11% over $1.8 billion in 2016. Q1 diluted earnings per share increased 16%. The company expects that sales for 2017 will be up about 4.6% and comp sales will be up around 4.6%.
BOLTON, Ont. — TORBSA has contributed $2,000 to the Lumber and Building Materials Dealers Association of Ontario to support a special student bursary in celebration of the LBMAO’s 100th anniversary this year. The bursary will be awarded on September 29 to one person who is currently an employee or dependent of a full-time employee of any retailer or supplier member of the association.
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MOORESVILLE, N.C. — Lowe’s Cos. has signed a deal to acquire Maintenance Supply Headquarters, a distributor of maintenance, repair, and operations (MRO) products to the multi-family housing industry in the U.S. The deal is valued at $512 million. Based in Houston, Tex., Maintenance Supply Headquarters operates 13 distribution centres serving customers in 29 geographic areas, primarily in the western, southeastern, and south central U.S., with a portfolio of 5,300 products and value-added services for maintaining and renovating multi-family properties. The acquisition is expected to be completed in Lowe’s second fiscal quarter. It is considered an important step in Lowe’s strategy to strengthen its relationship with contractors and pros.
ST. JACOBS, Ont. — After 35 years in business, Roberge et fils inc. of La Sarre, Que., joined the Home Hardware Building Centres banner last month. The company, which also owns a door and window plant, was sold at the end of last year to local businessmen Simon Gaignard, Richard Racine, and Sylvain Rouleau. The trio is planning to increase the store’s sales surface area from 12,000 to 14,500 square feet.
MISSISSAUGA, Ont. — Buchanan Hardware, in the Parry Sound district of Port Loring, Ont., is the latest dealer to join Castle Building Centres. The family-run business was founded in 1929 and, three generations later, under the ownership of Buchanan sisters Cathy, Karen, and Patricia, along with their mother Betty, the business has plans to expand into LBM.
BOUCHERVILLE, Que. — Lowe’s Canada is among the major sponsors of the sixth edition of C2 Montréal, an event that brings together 5,000 decision makers from across continents and industries. Lowe’s involvement includes a talk by Kyle Nel, executive director of Lowe’s Innovation Labs, a master class, and a workshop. All the events will take place at the Arsenal art gallery in Montreal on May 24 and 25.
SUPPLIER NEWS
RICHIBUCTO, N.B. — Imperial Manufacturing Group has achieved Platinum Club status with the Canada’s Best Managed Companies program by retaining its Best Managed designation for seven consecutive years. Normand Caissie, accompanied by his executive management team, accepted the national award during the recent gala celebrations in Toronto. Imperial is a manufacturer of HVAC, stove, and fireplace maintenance and building products founded by Caissie in a 6,000-square-foot building in 1979. Since then, the company has established locations in New Brunswick, Nova Scotia, Ontario, Quebec, and the U.S., representing more than 800,000 square feet of manufacturing and warehouse space.
MISSISSAUGA, Ont. — CertainTeed is hiring again. The company has come out in support of the federal Western Economic Diversification office’s Drywall Support Program, following on the resolution of CertainTeed’s anti-dumping complaint against U.S. gypsum manufacturers. The Canadian International Trade Tribunal agreed earlier this year with the substance of CertainTeed’s complaint, but sought to inoculate rebuilding efforts around Fort McMurray from the effects of tariffs. “Since the government's ruling for the imposition of duties on U.S. imports, we have increased hiring at our Western plants and re-established shifts which were cut over recent years due to domestic share loss,” said CertainTeed GM Matt Walker.
ECONOMIC INDICATORS
Housing starts in the U.S. saw an unexpected second monthly decrease in April, falling to a five-month low. New residential construction declined by 2.6% to a rate of 1.17 million units, suggesting that the housing recovery may be cooling. At the same time, single-family dwelling construction picked up modestly. (U.S. Commerce Dept.)
PEOPLE ON THE MOVE
RCR International has named Mario Petraglia as President, effective immediately. He will continue to report to CEO Lester Lee. Petraglia holds nearly 27 years of experience in finance and operations roles with companies such as PwC, Rio Tinto Alcan, Loblaw, and Laura Canada, including the past 17 years in senior and executive-level positions. Founded in 1946, RCR International is a North American maker of residential and commercial weather proofing and flooring products.
At Goodfellow, Jeff Morrison has been appointed Vice President of National Accounts. He has worked for the lumber and hardwood flooring products supplier for more than 15 years, starting in the company’s Edmonton branch in inside sales. He moved to Ontario in 2004 to join the LBM team there and has taken on progressively more responsibilities with Goodfellow over the years.
NOTED
The U.S. federal government has released economic data showing that American customers are investing in their homes again, with sales rising at hardware stores even as they slow down in clothing and other sectors.
OVERHEARD…
“Having eight when they need 12 just isn’t going to cut it.”
—Alan Blundell, divisional vice president, merchandising for Lowe’s Canada, on tapping RONA’s expertise with contractors as RONA big boxes begin being converted to the Lowe’s banner. He was speaking to a room full of vendors at the recent Hardlines Meet the Buyers Breakfast.