October 30, 2017 Volume xxiii, #41
“By the pricking of my thumbs, something wicked this way comes.” IN THIS ISSUE:
SASKATOON — The Fall Buymart of Federated Co-operatives had the weather on its side as it kicked off on October 21 with a series of meetings for Co-op managers and staff. In preparation for the trade show that would begin the next day, they heard from Don Ryan, FCL’s marketing manager for the Home and Building Solutions business, about the importance of real customer service. He pointed out a distinction between a customer and a consumer, saying the latter requires more meaningful interaction but pays off with a bigger commitment to rely on one’s store as a retail destination. On Sunday, the show had lots of traffic, as an estimated 700 managers and employees from 400 stores walked the aisles. And while day two was slower, as typifies the final day of most trade shows, a number of store staff told HARDLINES that they welcomed the opportunity on that day to connect with vendors, get product knowledge, and air concerns. A key new offering for the Co-op stores was the expansion of its private-label paint line, under the Imagine name. The line, manufactured by General Paint, a division of Sherwin Williams, was first introduced in July 2016. At this show, an expanded assortment of paint applicators was introduced to support the program. A relatively new program of homes and cottages plans was also supported by the introduction of new POP. The 2017 Co-op Home and Cottage Plans Collection program, which first went live back in July, replaces an older generic one in favour of plans that have been developed by local architects and planners to better suit Prairie life, conditions, and tastes. A large area of the show floor was devoted to outdoor living, featuring patio furniture, décor, and fire pits. This was reflective of the push by other retailers—recent dealer shows by Lowe’s, Home Hardware, and Orgill had a similar emphasis on this growing segment. FCL’s lines were developed by its own Asian sourcing team. The fall show is divided into hardware and building materials in one hall, and agro products on the other. And while the hardlines and LBM appeared to draw the most interest, some traditional home centre dealers admitted that this side of the business is a growing one for them. More and more stores are taking on agro products, expanding into heavier lines like silos and towers which are shipped and installed by the manufacturers, by names like Vicwest and its Westeel division. And while these heavy farming products require knowledgeable and dedicated staff, they have the potential to provide good growth for some.
Lowe’s makes deal with Black & Decker to add Craftsman hand tools MOORESVILLE, N.C. — Stanley Black & Decker has made a deal with Lowe’s for the retailer to carry the Craftsman brand in all Lowe’s and Lowe’s Canada stores. For Canada, this will consist of the RONA, Lowe’s, Reno-Depot, Ace, Marcil, Contractor First, and Dick’s Lumber banners, to broaden its customers’ access to the well-known brand. Craftsman will not be a proprietary brand—Lowe’s own hand tool line is sold under the Kobalt brand. But the new addition is considered a strong addition to Kobalt and Lowe’s current national brands. And Lowe’s says it will work with Craftsman to co-develop exclusive products. Craftsman-branded products will begin appearing in Lowe’s stores in 2018.
GM of leading Quebec dealer Patrick Morin will present at the Hardlines Conference NIAGARA FALLS, Ont. — One of the country’s leading family-owned home improvement retailers will take to the podium at the upcoming Hardlines Conference. The event, to be held November 14 and 15 in Niagara Falls, Ont., will give Daniel Lampron, general manager of Patrick Morin, the opportunity to share the story of his company’s success. Quebec accounts for nearly a quarter of Canada’s home improvement market, and many large, national chains are beginning in earnest to attempt to break into the marketplace. Patrick Morin has 21 stores and more than a quarter of a million dollars in sales, with growth that exceeds the industry average. Lampron will weigh in on how the company is managing this kind of growth in the fiercely competitive Quebec market. Other retail speakers presenting at this year’s conference include Sylvain Prud’homme, CEO of Lowe’s Canada; Rick McNabb, vice president of marketing and sales for Home Hardware Stores; Doug Anderson, who heads Alberta-based Peavey Industries, 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, 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!)
Reno-Depot introduces Canada-wide delivery for online purchases BOUCHERVILLE, Que. — Lowe’s Canada is giving its Reno-Depot banner a boost by expanding its e-commerce program ahead of schedule to offer parcel delivery in most of Canada. It’s an expansion of Reno-Depot’s “Click-Buy-Renovate” program that was first rolled out in January, followed by the addition of truck delivery in all Reno-Depot stores in May. Since October 24, Canadians can buy products at renodepot.com and have them delivered almost anywhere in Canada. “The response from consumers has been positive and we have seen good results at each phase of implementation of our e-commerce strategy, which spurred us to roll out parcel delivery earlier than planned,” says Isabelle Laliberté, divisional vice president, Reno-Depot. The website has been designed to be responsive to ordering by a desktop computer, tablet, or smartphone. Packages are delivered by either Canada Post or courier. Another service, which has been available since May, allows customers to have their online order delivered by a Reno-Depot truck within a 35-kilometre radius for a charge of $65. This is suitable for larger orders, as anything over 150 pounds can’t be shipped as a parcel.
DID YOU KNOW…? ...that we have, not one but two, conferences coming up in November? That’s right! We hope you’re already coming to the 22nd Annual Hardlines Conference on November 14 and 15. But if you’re doing any business online, you should be signing up for our Home Improvement eRetailer Summit, November 29 to December 1 in Orlando, Fla. This incredible event will bring together some of North America’s top online sellers to share ideas and meet with potential new suppliers. Click here now to get more info and sign up today!
RETAILER NEWS BOUCHERVILLE, Que. — Lowe’s Canada and Ace Canada announced that all Ace stores in Canada will be offering the “Click & Collect” service to their customers before year’s end. This new service, which lets customers make purchases on the Ace Canada website and collect their orders in their local Ace dealer store, is being deployed in waves this fall. After tests in five pilot stores over the last few weeks, Ace Canada added 21 stores to the program last week, with the remainder to join by the end of November. SYDNEY — Bunnings has announced plans to add 100 new stores in the UK over the next five to eight years. The Australian retailer made its entry into the UK market last year when its parent Wesfarmers bought DIY chain Homebase. The smaller format stores will open in urban centres to attract the coveted millennial shopper. The conversion of Homebase stores to the Bunnings banner continues gradually, with 20 more expected by year’s end.
BOUCHERVILLE, Que. — Lowe’s Canada has launched a new corporate identifier that includes a new logo—and a video to introduce the public to its business. The video, developed by the Sid Lee agency and executed by BLVD productions under the direction of Olivier Labonté Lemoyne, is now on YouTube. It promotes all seven of Lowe’s retail banners: Lowe’s, RONA, Ace, Reno-Depot, Contractor First, Marcil, and Dick’s Lumber.
SUPPLIER NEWS VANCOUVER — West Fraser Timber’s Q3 sales fell to $1.25 billion, down from $1.32 billion the same time last year. Earnings of $120 million represented a decline from the previous Q3’s $146 million. The quarter saw the acquisition of a finger-joint mill and six sawmills in Florida and Georgia. Hurricanes in the U.S. South, wildfires in British Columbia, and the ongoing softwood lumber dispute with the U.S. all impacted results for the quarter. ST. PAUL, Minn. — 3M reported third-quarter earnings of $2.33 per share, up 8.4% from a year ago. Sales of $8.2 billion amounted to a 6% increase year-over-year. Operating income for the quarter was $614 million, an increase of 3.1%. The Canadian and Latin American segment helped to lead the sales hike, showing growth of 5.6%. With the positive results for the quarter following on a strong first half, the company revised its outlook for the year to 4% to 5% sales growth. CLEVELAND — Hurricanes and merger costs put a dent in Sherwin-Williams’ Q3 profits, which tumbled by 18% to $316.6 million from a year ago. By the paint manufacturer’s own estimates, the storms cost it about $50 million in sales. Nevertheless, net sales rose by 37.4% to a record $4.51 billion. Same-store sales in the U.S. and Canada increased by 5.2%, while Valspar operations increased earnings by $0.49 per share.
ECONOMIC INDICATORS Sales of new single-family houses in the U.S. in September were at a seasonally adjusted annual rate of 667,000, up 18.9% from August. (U.S. Census Bureau)
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