July 24, 2017 Volume xxiii, #30
“Service to others is the rent you pay for your room here on Earth.”
—Muhammad Ali (“The Greatest”, American boxer and activist, 1942-2016)
SUMMER PUBLISHING SCHEDULE: Please note that HARDLINES is published once in August. There will be no issues on July 31, August 14, 21, and 28. We resume our regular publishing schedule with our September 4 edition.
IN THIS ISSUE:
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Orgill’s Boston dealer market promises more that’s new for Canadian dealers
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Fastway Group to purchase Winnipeg’s North American Lumber
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Canadian Tire offers a preview of its Christmas product line
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Ace Hardware’s latest hires draw from big box DNA
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PLUS: Nova Scotia dealer joins Castle, Churchill’s Home Hardware triples store size, Atis Group buys Pro-Tech, Vince Morency at Richelieu, Sears cleared for sell-off, pop-up store for mattress retailer, Stephen Ceolin starts agency, Jason Hamburger at AGF, and more!
Orgill’s Boston dealer market promises more that’s new for Canadian dealers
MEMPHIS, Tenn. — Hardware wholesaler Orgill is preparing for its next Dealer Market, August 24 to 26 in Boston, and it anticipates attendance by hundreds of Canadian independents.
Although a full-line distributor, Orgill does not attach itself to a banner. It counts among its customers in this country independents from just about every buying group. And those dealers will have lots to see at the next show, which will take up every available bit of space at the Boston Convention and Exhibition Centre.
The show is known for its model stores. Dealers who sell to contractors and professionals will be especially interested in “Central Tool & Building Supply,” a brand new model store that caters to pros. This footprint will feature 100% Canadian-compliant assortments, with displays from both the London, Ont., distribution centre and the new Post Falls, Idaho, DC.
“We wanted to highlight how a pro-focused retailer can utilize a tool niche featuring powerful brands to really build a store-within-a-store concept that will appeal to the professional contractor and builder market,” says Philip Walker, SVP merchandising services for Orgill.
The “Walnut Grove” model store has been scaled down this time, from 12,000 to just 8,500 square feet. Orgill is using the smaller footprint to show off its latest techniques for helping dealers maximize space on the store floor. The wholesaler promises to fit 15,000 square feet of products into the smaller space.
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Fastway Group to purchase Winnipeg’s North American Lumber
TORONTO — A Toronto-based diversified-investment company has just bought up another independent building supply dealer. Mill Street & Co., through its subsidiary, The Fastway Group, has entered into a purchase agreement for the acquisition of the business operations of Winnipeg-based North American Lumber Limited.
Through a network of stores that average less than 5,000 square feet in size, North American Lumber has maintained a solid reputation for providing a broad range of lumber, hardware, and building materials to smaller communities in Northwestern Ontario, Manitoba, and Saskatchewan for 110 years. However, in recent years, the company has lost both stores and sales. It currently has 11 retail locations with sales of about $21 million, down from a dozen stores and almost $37 million in sales in 2010 (source: Hardlines Who’s Who Directory).
“I am very pleased for the company, its staff, and the continuing legacy of this great brand,” said Martha Konantz, president of North American Lumber. “I believe The Fastway Group will bring positive energy and opportunities to the company and will successfully grow and develop the business in new directions.”
North American Lumber is just the latest acquisition by Fastway in the home improvement space. In 2016, it acquired Parliament Building Supplies in downtown Toronto, and Thorold Lumber, a dealer in Ontario’s Niagara region. Its portfolio of companies also includes Uxport Tools, an industrial tool supplier about an hour east of Toronto, and Sauve Lumber and Building Supplies in Timmins, Ont., which it acquired in May 2017.
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Canadian Tire offers a preview of its Christmas product line
TORONTO — Canadian Tire hosted its annual Christmas in July event last week. Reporters were invited in from the heat to an event space in Toronto’s west end where the Canadian Tire team was showcasing its Christmas décor, ornaments, and trees, as well as new products from its Canvas home furnishings line.
This year’s colour theme is alpine white. Accented by clear glass and pale blue in one display and gold and blonde wood in another, Tracy Platt, the style and design manager for Canadian Tire, says the various white tones can easily be combined to suit the homeowner’s own DIY style. “Within every colour story we usually do two themes and they all mix and match together,” says Platt. “We’re always trying to show our customers different ways to put things together.”
One new item Platt singled out is a fireplace with a built-in pull-out storage unit. It’s part of a trend she says her team especially appreciated for its very practical appeal.
The Canadian Tire merchants also worked with Toronto designers Davina Nathan and Deidre Wicks to design original Christmas stockings, pillows, ornaments, and festive tableware. In a nod to the Canada 150 celebrations, Salima Kassam, senior category manager for Canadian Tire, noted the colour red features heavily in these items.
On the new technology side, Canadian Tire has focused on the look and feel of its artificial trees. According to Jason Kane, AVP for Christmas, this year’s selection is modeled after real trees. “You can see the different species,” says Kane. “It’s much more premium, and much more life-like.”
And the new Noma brand string lights have also been developed with a new technology that seals the socket so that when one light burns out, none of the others on the string are impacted. The lights also carry a 10-year warranty as opposed to the typical five. “They’ve gone out to build the best light they can,” says Kane. “These are not the strings you used to spend hours hanging on the tree to have to find the one not-working bulb when it burnt out.”
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Ace Hardware’s latest hires draw from big box DNA
OAK BROOK, Ill. — The dealer-owned co-ops are stepping up their executive ranks, on both sides of the border. Ace Hardware’s latest high-level hires came from three of the large public companies that compete with Ace stores—and that’s an advantage, according to the co-op.
Many of Ace’s corporate positions are filled with people whom Ace has promoted internally. But also acquiring “more and better leaders” from competitors offers strategic advantages, says Kane Calamari, vice president of human resources, organizational development and communications for Ace. “We think it’s a pretty potent combination.”
Home Hardware has been going through similar changes. Historically reliant on hiring from within, the signing in May 2016 of Rick McNabb as VP of marketing and sales marked a big step for the co-op to look outward, both in terms of personnel and vision. McNabb had come over from Cara Foods, where he spent a decade as a senior executive presiding over a number of brands, including Harvey’s, Swiss Chalet, Kelsey’s, and Montana’s.
Ace in the U.S. is following suit. Since April, the co-op has announced the hiring of former Grainger executive Mark Spanswick to serve as president and general manager of Ace’s wholesale division; John Sommers Jr., a 23-year Home Depot veteran, as vice president of merchandising; and Lisa Doyle, who previously worked for Lowe’s, as Ace’s new head of retail training.
“Although we’re battling them day in and day out, we’re making sure that we’re learning from them,” Calamari says. But, he adds, executives from big box companies, who are accustomed to working with corporately owned stores and very different shareholder owners, do have a learning curve when Ace hires them to serve independent retailers.
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DID YOU KNOW…?
...that 51% of dealers expect online sales to be a big challenge looking out five to seven years? But guess what? That will be too late! That’s why we’re co-hosting the 2nd Annual Home Improvement eRetailer Summit, September 13-14 at the Rosen Shingle Creek in Orlando, Fla. Retailers looking to understand the e-commerce space and suppliers who want to make real connections with leading eRetail decision makers will find this ground-breaking forum an amazing way to meet, share ideas, and grow online sales. You will get face-to-face with, and learn from, the top hardware, housewares, and home improvement eRetailers in North America! Check it out now―or contact Beverly Allen for more info and join us in Orlando!
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RETAILER NEWS
MISSISSAUGA, Ont. — The latest dealer to join Castle Building Centres Group is Trinity Maintenance Solutions Ltd. in Stellarton, N.S. This new location is part of the Trinity Energy Group of companies, which consists of 80 staff with branches in Nova Scotia and New Brunswick. The company, founded by Dwaine and Karen MacDonald in 2006, began as a source for expertise on making homes and commercial dwellings more energy efficient. This latest outlet reflects a move into a more extensive line of home improvement and hardware products. “We feel Castle will open up additional opportunities for our business,” said Dwaine MacDonald.
ST. JACOBS, Ont. — Churchill’s Home Hardware Building Centre in Bay Roberts, N.L., has expanded to a larger location after upgrading from the Home Building Centre banner. The mid-June grand opening showcased the store’s expansion from 3,000 to 10,000 square feet. David and his wife Donna are the fourth generation of hardware store owners in the Churchill family, which has been in business in the area for more than a century. Churchill’s joined the Home Hardware banner in 2005.
TORONTO — Sears Canada Group has obtained orders from the Ontario Superior Court of Justice for its restructuring efforts under the Companies’ Creditors Arrangement Act to extend the stay period provided by the Initial Order to October 4, 2017. Sears has also received approval to launch a Sale and Investment Solicitation Process, whereby the company can seek out proposals for buyers or investors. The SISP deadline for binding offers from parties interested in pursuing a transaction is August 31, 2017.
TORONTO — Online mattress seller Casper is making more inroads in Canada. The mattress specialist has partnered with design and marketing agency Community to create a pop-up store this summer. The Casper Cottage, styled in a monochromatic Casper-blue, is designed to evoke Canadian summers. Following the success of the second annual Casper Nap Tour and a recently launched partnership with furniture retailer West Elm, Casper’s pop-up shop will add to the brand’s lineup of touch-and-feel experiences.
SUPPLIER NEWS
LONGUEUIL, Que. — Atis Group, which manufactures doors and windows, has announced the acquisition of retailer Fenestration Pro-Tech, which has been based in Stanbridge Station, Que., for 25 years. The deal is part of Atis’s growth plan focussed on the acquisition of retailers throughout Quebec and Canada.
RIVIÈRE-DU-LOUP, Que. — Groupe Lebel, which owns sawmills throughout Quebec, has reached an agreement with Bolton, Ont.-based AFA Forest Products to distribute its treated wood products through AFA’s seven Central and Eastern Canadian outlets. The partnership comes at a time when the Canadian lumber industry is seeking to hold its own against protectionist U.S. tariffs. Groupe Lebel opened its first mill in 1956. AFA, founded in 1973, has 13 distribution locations stretching from Vancouver to Newfoundland.
PEOPLE ON THE MOVE
Vince Morency has been appointed Channel Manager Retail Canada at Richelieu Hardware Ltd., where he will be in charge of co-ordination, development, and execution of account, regional, and trade-show promotions, off-shelf promotions, and booking programs. His background includes category manager roles at Chalifour Canada and Orgill Canada. Most recently, he was Category Business Manager at TSC Stores. (vmorency@richelieu.com)
After 21 years at Recochem Inc., Stephen Ceolin has opened his own sales agency, Ceolin & Associates, representing leading brands in the hardware and housewares industry. (stephen@ceolinandassociates.com; 905-866-8659)
Jason Hamburger is now Corporate Business Manager at Atlas Graham Furgale. Previously, he had spent 14 years at Home Hardware Stores Ltd. as a Product Manager. Most recently, he was National Sales Manager for CP Industries in Fergus, Ont. (Jason.hamburger@agfurgale.com)
ECONOMIC INDICATORS
Existing home sales dropped in June, the third monthly decline. The number of homes sold via Canadian MLS Systems fell 6.7% last month, the largest monthly decline since June 2010. Activity in June came in 14.1% below March and was down in 70% of all local markets, led mainly by the Greater Toronto Area. Monthly declines were also posted in all surrounding Greater Golden Horseshoe housing markets, the Lower Mainland of British Columbia, Kingston, Montreal, and Quebec City. Actual (not seasonally adjusted) activity was down 11.4% on a year-over-year basis, also driven largely by a significant drop in GTA sales activity. (Canadian Real Estate Association)
OVERHEARD…
“The people coming and joining us need to understand our culture. Our shareholders are our customers. The big thing for us in the onboarding process is to make sure they get out in the stores as soon as possible.”
—Kane Calamari, vice president of human resources, organizational development and communications for Ace, on the recent hiring of a number of senior executives who formerly worked for Ace’s big box competitors.