October 2, 2017 Volume xxiii, #37


“Mistakes are the portals of discovery.”
— James Joyce (Irish author, 1882-1941)

IN THIS ISSUE:

  • Magennis gets promoted as part of organizational changes at Canadian Tire

  • Fresh ideas and its new branding highlight latest Home Hardware market

  • Ace finds a secure place in the Lowe’s family at latest buying show

  • Home Hardware VP Rick McNabb will present at Hardlines Conference

  • PLUS: Trois-Rivières BMR burns down, Ben-Mor celebrates its 25th, Wal-Mart will offer staff more hours at Christmas, Home Hardware names colour of the year, Coast Distributors adds power tool accessories, U.S. tariffs on Canadian softwood lumber, Liteline hires new finance director, retail sales, and more!

Magennis gets promoted as part of organizational changes at Canadian Tire

TORONTO — Canadian Tire has enjoyed success in recent years through the acquisition of a number of sometimes unrelated business units, which are operated separately under the corporate umbrella. But now the company is looking for ways to organize and market those disparate divisions in a more unified fashion.

Enter the “one customer, one company” strategy. Touting a focus on the end customer, Canadian Tire is looking for ways to present itself as a solution for a customer whose needs extend into different fields, not just, say, automotive or hardware.

Behind the scenes, that means making fundamental changes to the business, including assortments, analytics, and embracing digital. It also means closer collaboration across business units.

For the hardware side of the business, the one customer, one company approach means a new title for one industry veteran. Mike Magennis has taken on a new role as vice president, business development and operations.

A 26-year veteran of the company, Magennis reports directly to Greg Hicks, SVP of merchandising for Canadian Tire. He will still maintain his duties as VP merchandising for seasonal and gardening, until a replacement has been found for that role.

The new position focuses Magennis on integrating elements of two other Canadian Tire businesses, FGL Sports Ltd. and clothing retailer Marks, into the Canadian Tire stores. Both divisions share some common elements and product lines, but working closer with them could mean a greater emphasis on sporting goods and bigger ranges of workwear at Canadian Tire stores.

Besides working with these existing businesses, Magennis will be responsible for leading new business development initiatives focused on the “one company” strategy and developing strategic opportunities as they emerge. 

 

Fresh ideas and its new branding highlight latest Home Hardware market

ST. JACOBS, Ont. — The branding initiative launched at Home Hardware’s spring market received a major push to implementation at the latest show, held last week at the co-op’s head office and distribution centre in St. Jacobs, Ont.

On the show floor, vendors stayed busy with steady traffic from dealers who came in from every part of the country—including Home’s first dealer in Nunavut. On entering, those dealers were greeted by a new look for the overall show, with aisles that featured lower booths and display racking on the left side, and an expanded section for lawn and garden, especially outdoor furniture, on the right. The combined effect managed to open up the look and feel of the show at the front.

“Here’s How” is Home’s new tag line, also unveiled at the last show. This time around, dealers learned how the branding will look on signage, how that tag line will be tied in with the ad program for 2018, and what requirements for merchandising they’ll need to implement in their stores.

That look, as displayed in the show’s model store on the mezzanine, offered concise messaging on signage and endcaps that was intended to communicate Home stores’ ability to help customers with their purchases and their products. Dealers even received a “kit” to help explain how to use the new branding in their stores and marketing efforts.

 

Ace finds a secure place in the Lowe’s family at latest buying show

MONTREAL — A year and a half after closing its acquisition of RONA, Lowe’s is continuing to hone its multi-banner strategy in Canada, with more RONA big boxes being flipped over to the Lowe’s brand.

The company is also pushing recruitment of independents, both as RONA affiliate dealers and Ace Canada members. The Ace presence was a special focus at this fall’s Lowe’s Buying Show.

Asked about Ace Canada’s place in the Lowe’s family of banners, Bill Morrison, Ace’s divisional VP for Canada, emphasizes that “Lowe’s is highly motivated and interested in growing Ace. Lowe’s wants to become the number-one choice in Canada and to do that they need to be in places where the big box model doesn’t reach.”

The Ace Canada dealer network, he adds, allows Lowe’s to grow beyond the base of its other banners.

The multi-banner approach is “a very common model,” Morrison says, “but not so much in our industry.” He cites Loblaw Cos. as an example of an operation that meets a variety of needs through different banners, with its no frills stores for budget shoppers and independent President’s Choice proximity markets.

“Great companies see that one size doesn’t fit all,” he concludes.

 

Home Hardware VP Rick McNabb will present at Hardlines Conference

MONTREAL — Call him a disruptor.

Home Hardware hired him more than a year ago to shake up the country’s largest dealer-owned home improvement group, and he’s done just that. From replacing Home’s agency of record and re-organizing its buying and marketing teams, to pushing his dealers to higher standards of performance and his own teams to greater levels of competitive intelligence, Rick McNabb, Home Hardware’s vice president of marketing and sales, has cut a swath through Home’s vast organization.

Now he’s going to share his vision for retail success at the 22nd annual Hardlines Conference, November 14 to 15 in at the Sheraton by the Falls hotel in Niagara Falls, Ont.

McNabb came over to Home Hardware from Cara Foods, where he was involved in running a number of divisions, including Harvey’s and Swiss Chalet. In fact, his very hiring—from outside Home’s own ranks—reflected something of a disruption for the company that is well known for hiring from within. But it is also famous for encouraging family members to join the company, and McNabb has a brother who is himself a dealer.

Other retail speakers presenting at this year’s conference include Doug Anderson, CEO of Peavey Industries; Daniel Lampron, general manager of Quebec-based retail chain Patrick Morin; Sylvain Prud’homme, CEO of Lowe’s Canada, and Jim Thompson, former COO of Wal-Mart China and former senior executive at Wal-Mart Canada. Other thought leaders on the podium this year include Dan Tratensek, VP of publishing for the North American Retail Hardware Association, Peter Norman, economist Peter Norman of Altus Group, and Robert Howard of the U.S. retail consultancy Kurt Salmon.

The Hardlines Conference, which will play host to some 200 industry dealers, suppliers, and executives, is being held November 14 to 15 at the Sheraton on the Falls hotel in Niagara Falls, Ont.

(For more information about the 22nd annual Hardlines Conference, click here now!)

 

 

DID YOU KNOW…?

...that the 2nd annual Home Improvement eRetailer Summit has been rescheduled to a new date? That’s right, we were all set to do it earlier this month, but Hurricane Irma had other plans and we had to postpone at the last minute. But we’re back on track for November 29 to December 1. Here’s your chance to get on board and learn how to grow your e-commerce business in a hands-on way. There are two parts to the Summit: networking with some of North America’s leading e-commerce sellers, including BuildDirect.com and eBay; and a powerful day of learning from leading retail and online business presenters. Isn’t time to get your e-commerce house in order and grow your online sales? Contact Beverly Allen now!

RETAILER NEWS

TROIS-RIVIÈRES, Que. — Less than a month after unveiling its newly renovated store, BMR Pierre Naud fell victim to a pre-dawn blaze this week. The fire, the cause of which is still being investigated, claimed the store’s entire retail space but spared the lumber yard and garage. For the time being, the store’s customers will be served from the other two BMR Pierre Naud locations, in Shawinigan and Sainte-Thècle. Marc-André Lebel, co-owner of the store along with Philippe Lebel, expressed his disappointment to Trois-Rivières’ Le Nouvelliste. “It’s very difficult to see our store, in which we invested so much effort to renovate, ravaged by flames,” he said.

BURFORD, Ont. — Beauti-Tone, Home Hardware’s paint business, has announced "Green Peace" as its 2018 colour of the year. The hue is part of the Model Home “Trend Colour” collection by Simon Chang. “For Beauti-Tone, the colour of the year is not something we choose,” explains Creative Director Bev Bell. “Rather it, like all meaningful colours, evolves from what is happening in our lives and in the lives around us.” In this case, Green Peace is a response to the customer’s need for calm.

 

LONGUE-POINTE-DE-MINGAN, Que. — The BMR store in this community on Quebec’s North Shore has ceased operations. General Manager Marc Poliquin pointed to the state of the local economy, recruiting challenges, and the reopening of the Unimat in nearby Havre-Saint-Pierre as reasons behind the closure. The property will be placed on the market in October.

BENTONVILLE, Ark. — Wal-Mart will offer existing employees additional hours instead of recruiting temporary workers for the winter holiday rush. Labour groups cautiously praised the move, which addresses long-simmering discontent among underemployed workers. “The struggle to get enough hours has been the number one issue angering associates,” said Dan Schlademan, a spokesman for the United Food and Commercial Workers affiliate OUR Walmart. “We’ve never been able to understand why Walmart continues hiring seasonal workers when there are so many people begging them for more hours.” Labour advocates expressed concern however about employees being pressured to take additional hours or penalized for taking holiday time off.

 

SUPPLIER NEWS
SAINT-HYACINTHE, Que. — Ben-Mor is celebrating its 25th anniversary this year, and the wire and cable company marked it with a big party. About 500 customers, family, and friends took a tour of the manufacturing plant in the afternoon, then reconvened at a nearby conference centre for a gala dinner. The company was founded in 1992 in Saint-Hyacinthe and has four owners: Lyne-Mireille Leduc, VP finance; Benoît Frappier, president and CEO; Richard Plante, VP sales and marketing; and Éric Rompré, VP production.

NANAIMO, B.C. — Coast Distributors has added Bosch power tool accessories to the array of products it offers to dealers and independents in Western Canada. The company has also expanded its partnership with Montreal-based Cathelle. In addition to offering Cathelle’s Power Source electrical line, Coast will also distribute Cathelle’s Renotech plumbing line. Coast is looking to bolster its offerings in plumbing and electrical categories.

WINNIPEG — U.S. tariffs on Canadian softwood lumber, designed to protect the lumber industry south of the border, have instead driven up costs for American consumers to the profit of Canadian producers, Bloomberg reports. Shares of Canfor and West Fraser Timber have risen amid high demand for Canadian softwood, boosted by rebuilding efforts during the hurricane season in the southeastern U.S.

 

PEOPLE ON THE MOVE
At Liteline Corporation, Carrie Scott has joined as director of finance and administration.
She joined the company in August 2017, and is now responsible for planning, implementing, and managing the finance and administration functions, and she leads the execution of finance and administration plans. Before joining Liteline, Scott was corporate controller at GS1 Canada, a not-for-profit supply chain standards organization.

 

ECONOMIC INDICATORS
Retail sales rose 0.4% to $49.1 billion in July, with motor vehicle and parts dealers and food and beverage stores leading the gains. Building material and garden equipment and supplies dealers saw sales of $3.1 billion, down 0.2% year over year but a 15.1% surge from June. Sales were up in six of 11 sub-sectors, representing 75% of total retail trade. After removing the effects of price changes, retail sales in volume terms decreased 0.2%. (StatCan)

U.S. sales of new homes fell unexpectedly to their lowest rate in eight months as the housing market felt the impact of the recent hurricanes in the country’s southeast. Sales fell 3.4% to 560,000. (U.S. Commerce Department)

 

NOTED
Presidents Council will host a RONA buying day on November 8 in Boucherville, Que., at a location near Lowe’s Canada’s head offices. The buying teams of both RONA and Reno-Depot will be available to see new products and new vendors. Each vendor gets their own 20-minute, one-on-one meeting. The fee for each buyer meeting is US$600. For more information, please click here.

 

OVERHEARD…
“The delivery of our “one customer, one company strategy requires us to work differently. It will require a great deal of collaboration, not only across functions within CTR [Canadian Tire Retail] but across banners in CTC [Canadian Tire Corp.]. The strategy will require us to find the capacity to think through new business development opportunities, integrate them across the organization, and ensure they deliver the customer experience we are striving for in all channels. We see huge opportunities to organize our strategic efforts to focus on a single customer for a lifetime in Canada.”
—Greg Hicks, SVP merchandising for Canadian Tire, in a letter to vendors announcing the promotion of Mike Magennis to a new role as vice president, business development and operations.


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