November 20, 2017 Volume xxiii, #44


“Knowledge speaks, but wisdom listens.”
—Jimi Hendrix (American rock musician and songwriter, 1942-1970)

IN THIS ISSUE:

  • Industry honours winning dealers at Outstanding Retailer Awards Gala

  • Hardlines Conference filled with ideas, challenges, and inspiration

  • Canadian Tire finally launches a test for home delivery of online sales

  • Lowe’s expands smart home “store-within-a-store” concept

  • PLUS: Federated Co-operatives tops list, Home Depot has strong comps, Meinert to retire, Hicks promoted at CTR, B.C. Sears store goes RONA, Loblaw closing 22 stores, Princess Auto continues Ontario expansion, CanWel results, Ace aces it, existing house sales, and more!

Industry honours winning dealers at Outstanding Retailer Awards Gala

NIAGARA FALLS, Ont. — Canada’s best hardware and home improvement retailers were recognized last week at the 2017 Outstanding Retailer Awards Gala Dinner. The Gala, held November 14, marked the end of day one of the 22nd Annual Hardlines Conference in Niagara Falls, Ont.

Dealers from across the country were celebrated in seven categories covering the range of hardware and home improvement retailing formats. Delegates at the Hardlines Conference joined leaders from the retail chains, co-ops, and buying groups who attended the Gala Dinner to honour their members and fellow retailers.

This year’s winners are:

  • Best Hardware Store, any size−Gow’s Home Hardware, Bridgewater, N.S., Amanda Fancy, Owner;
  • Best Building Supply or Home Centre under 15,000 square feet−Ace Matériaux Armand Dumaresq, Rivière-au-Renard, Que., Guy Samson and Camil Bouchard, Owners;
  • Best Building Supply or Home Centre over 15,000 square feet−Discovery Co-op, North Battleford, Sask., Mike Nord, General Manager;
  • Best Contractor Specialist−RONA Penticton, Penticton, B.C., Chad Mielke, Manager;
  • Best Large Surface Retailer−Lowe’s Barrie, Barrie, Ont., Piero Palmerio, Manager;
  • Best Young Retailer−Alex Yakovyshenko, Manager, Haney Builders Supplies, Maple Ridge, B.C.;
  • Marc Robichaud Community Leader−Sayer Home Hardware, Hagersville, Ont., David Sayer, Owner.

These dealers, chosen from a list of nominees in each category, have demonstrated leadership, a positive culture for staff, imaginative merchandising, creative niches in their respective markets, and solid sales growth year over year. The winners each displayed an edge that put them ahead of their peers and identified them as truly outstanding.

Launched in 1992, the Outstanding Retailer Awards are the industry’s only national awards program dedicated to celebrating the achievements of hardware and building supply dealers in Canada. In its 25-year history, the program has honoured more than 150 retailers.

 

Hardlines Conference filled with ideas, challenges, and inspiration

NIAGARA FALLS, Ont. — Powerful speakers brought key ideas to the delegates at the 22nd annual Hardlines Conference, which was held in Niagara Falls, Ont., November 14 and 15.

Robert Howard of retail consultancy Kurt Salmon kicked off day one with insights into the two worlds of bricks and mortar and online selling. He said it’s not enough to have one or the other; they must be utilized together to connect with consumers. Economist Peter Norman, of the Altus Group, talked about the housing and renovation markets in Canada. Based on healthy job growth and rising GDP, his outlook was largely positive for the entire country.

Retailers Doug Anderson of Peavey Industries and Daniel Lampron of Patrick Morin talked about finding niches in their respective markets. Both individuals stressed the importance of making—and maintaining—a strong connection with their respective customers. A strong corporate culture that values its employees figured in both their talks.

Other speakers at the conference were John Herbert of the European DIY retailers’ association EDRA/GHIN, Emil Cermak from FedEx Canada, Dan Tratensek of the NRHA, and Denis Melanson, president of the Building Material Council of Canada and head of the Atlantic Building Supply Dealers Association.

One of the recurring themes throughout the conference was the notion of respect. Much of the discussion centred around the importance of valuing the customer and providing great customer service to stand out from the competition. But several speakers addressed the need to maintain a strong corporate culture that respects staff, as well.

Anderson told the audience that one of his objectives, in growing the company, has been the need to maintain the corporate values that Peavey was built on. Jim Thompson, a former executive with Walmart Canada and Walmart China, stressed the need for having straightforward objectives and communicating those objectives clearly on an ongoing and consistent basis—a theme that figured prominently the presentation by Herbert from EDRA/GHIN.

The event was preceded by a meet-and-greet pub night the evening before the conference started, sponsored by RONA. Close to 100 people gathered at a local brew pub to network before attending the conference.

 

Canadian Tire finally launches a test for home delivery of online sales

TORONTO — Canadian Tire continues to develop its online strategy, aiming to make at-home delivery its next plateau. Online shoppers can, so far, have their purchases delivered to a nearby store for pickup. But a fully integrated delivery model to a shopper’s own home is just now materializing for the giant retailer.

Home delivery was first announced by CEO Stephen Wetmore at Canadian Tire’s annual general meeting back in May and confirmed upon the release of its latest results last week. A pilot has begun with 10 stores in the Ottawa area.

“We’re phasing our deployment here first and then we’ll look to extend regionally and eventually nationally,” said Greg Hicks, newly appointed to the role of president of Canadian Tire Retail (see People on the Move). The original intention was to facilitate a wider rollout in the New Year.

“Our focus right now is on parcel delivery, which is over 100,000 SKUs, which represents about 80% of our assortment.” Hicks added that the company’s Living and Playing categories were showing the best results with online sales.

However, there are challenges still to be worked out, which may push a wider launch further into 2018. These include the logistics of delivering from the stores, how it will impact each dealer’s own sales, and how to track inventory.

The company has had its ongoing challenges with online sales. It tested a pilot online program to buy online and pick up in-store in Nova Scotia in 2012. It was to be rolled out within a year to the rest of Canada. After a test period that lasted more than two years, a wider rollout finally materialized.

 

Lowe’s expands smart home “store-within-a-store” concept

MOORESVILLE, N.C. — Lowe’s announced it is building on the “Smart Home powered by b8ta” pilot project it launched last fall in three stores in partnership with software-powered retailer b8ta. The store-within-a-store will be rolled out to 70 locations across the U.S., to serve customers interested in smart home devices.

“Smart home products simplify life—but the technology can sometimes be confusing or intimidating,” explained Ruth Crowley, Lowe’s VP of customer experience design, in a release. “So, we developed Smart Home powered by b8ta to emulate a ‘lab-like’ atmosphere that empowers customers to make informed decisions.”

Each location features a curated selection of more than 60 smart home products in wood-panelled aisles near the front of the store. Trained experts known as “b8ta testers” offer onsite customer support. Products include such categories as thermostats, security systems, and cameras from well-known brands like Google, GE, and Samsung. Customers can use iPads and smartphones to try out interacting with apps.

The venture is a logical move for Lowe’s, one of the industry’s early adopters of technologies linked to what has come to be known as the “internet of things”. The retailer started its home automation business in 2011, teaming up with AlertMe to launch smart home platform Iris early in 2012.

Since then, Lowe’s and its Innovation Labs have been at the forefront of combining high-tech with brick-and-mortar. In the fall of 2015, the Labs unveiled the Holoroom virtual reality system, which allows renovators and decorators to envision projects as they’ll appear in the home. It also serves as the basis for the Holoroom How-To, a virtual DIY tutorial launched this year.

According to Lowe’s Canada, there are no plans in the short run to introduce the b8ta testers on this side of the border.

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RETAILER NEWS

SASKATOON — For the fifth year in a row, Federated Co-operatives Limited has ranked first in SaskBusiness Magazine’s list of the Top 100 largest companies in Saskatchewan. “The success of FCL and our member-owners,” CEO Scott Banda said in a statement, “is the product of our diversity, our longstanding relationships with Co-op members, and our unwavering commitment to the communities we serve.”
 
ATLANTA — The Home Depot has reported sales of $25.0 billion for the third quarter of fiscal 2017, an 8.1% increase from Q3 2016. Comparable store sales were positive 7.9% and comp sales for U.S. stores were positive 7.7%. Net earnings reached $2.2 billion, or $1.84 per diluted share, compared with net earnings of $2.0 billion, or $1.60 per diluted share, in the same period of fiscal 2016. For the third quarter of fiscal 2017, diluted earnings per share increased 15.0% from the same period in the prior year.

 

 

SECHELT, B.C. — The last Sears store in B.C.’s Sunshine Coast region will stay in business following the chain’s liquidation as it moves to the RONA banner this week. Owners Lorene and Lyle Hagdorn said in a release last week they have reached an agreement to sell Sunshine Coast Appliance and Mattress Experts to an area RONA dealer and stay on as managers. Russ and Tess Jones, who own two Coast Builders RONA, including one in Sechelt, will assume ownership in February. Last week, however, the store, which has been preparing to go independent since the first wave of Sears closures was announced in June, will swap out the Sears branding for RONA.

BRAMPTON, Ont. — Loblaw Cos. Ltd. will shutter 22 underperforming stores and begin rolling out home delivery. The company, whose banners include Loblaws and Provigo, declined to indicate which stores would be affected, but expects the closures to be completed during Q1 of the coming year. At the same time, it announced the introduction of an online delivery service, beginning in Toronto in December. The service will then be rolled out to Vancouver in January with more markets to be added through 2018. Partnering with U.S. online grocery platform Instacart, the company will offer one-hour delivery of online purchases through the Loblaws, Real Canadian Superstore, and T&T banners.

OAK BROOK, Ill. — Ace Hardware announced it has received one of the 2017 Top Workplaces awards from the Chicago Tribune. The report, issued at the end of last week, ranks Ace Hardware number five among all large companies to work for in the Chicago area. The Top Workplaces lists are based on the results of an employee feedback survey administered by research firm Energage LLC. Metrics considered included alignment, execution, and connection.

WINNIPEG — Specialty hardware retailer Princess Auto continues to expand its operations across the country. A store in Kanata, Ont., near Ottawa, opened on September 19. The 25,000-square-foot outlet employs 28 full-time and up to 25 part-time employees. It’s one of two new locations opening in Ontario, with a location in Peterborough planned for 2018 or 2019. The company has 43 stores now.

 

SUPPLIER NEWS
WOODSTOCK, Ont. & CALGARY — Owl Distribution and McIlveen Lumber have announced the merger of their companies to create a national wholesaler for retail lumber dealers across Canada. The transaction is expected to close by mid-November. The new combined entity will consist of five distribution centres and two reload facilities covering markets from Quebec to British Columbia. The companies will continue to operate with their respective structures and management in place while providing national scope to their customers in buying groups across the country. 

LONDON, Ont. — RenoWare announced it’s pairing up with Epicor Software Corp. for the release of the Epicor Eagle installed sales application. The system combines an end-to-end solution for completed installed sales management with Epicor Eagle’s point of sale, inventory, and accounting functions. Using the application, according to RenoWare, retailers will “save time, avoid errors, and optimize prices and profits.”

VANCOUVER — CanWel Building Materials’ Q3 revenues rose to $317 million, up 14.7% compared to the $276 million reported a year ago. The company said its strategic focus on product mix and target customer base paid off, offsetting the impact of B.C. wildfires on the forestry segment. Gross margin for the quarter was $41.6 million, compared to $35.1 million the same time last year, representing an increase of 18.5%.

 

PEOPLE ON THE MOVE
Greg Hicks has been put in charge of Canadian Tire Retail, the company’s largest division, as president of CTR. Hicks was formerly group senior vice-president, consumer products and retail experience for Canadian Tire, where he oversaw that division’s general merchandise and automotive businesses and was also responsible for managing store experience, store operations, product sourcing and quality including the management of the company’s Pacific Rim offices. With this move, Hicks replaces Allan MacDonald, who has moved into a role as executive vice-president, retail. MacDonald now oversees Canadian Tire’s nearly 1,700 retail and gasoline outlets across all of its retail banners, as well as consumer brands and marketing.

Bailey Metal Products has announced the upcoming retirement of Executive Vice President Kenneth Meinert, taking effect at the end of March 2018. Meinert, who joined Bailey’s executive team in 2010, has more than two decades of experience in the gypsum industry, including time as CEO of the Canadian Gypsum Company. At the same time, Bailey announced three new VP appointments: Malcolm Nobbs for strategic development, Mark Griffioen for operations, and Derick Vinthers for sales. A family firm since 1950, Bailey Metal Products recently moved to third-party certification of its drywall studs.

 

ECONOMIC INDICATORS
Sales of existing Canadian homes rose slightly in October, but remained below levels recorded a year ago. Home sales via Canadian MLS Systems increased by 0.9% on the heels of monthly increases in August and September, but remained almost 11% below the record set in March. Activity in October was up from the previous month in about half of all local markets, led by the Greater Toronto Area and the Fraser Valley, together with a number of housing markets in the Greater Golden Horseshoe region. Actual (not seasonally adjusted) activity was down 4.3%, while the national average sale price climbed by 5% year over year. (Canadian Real Estate Association)

 

OVERHEARD…
“Judge people on today, not on yesterday.”
—Jim Thompson, former executive with Walmart Canada and Walmart China, on the power of good leadership. He spoke last week at the 22nd annual Hardlines Conference in Niagara Falls, Ont.

 

OUT AND ABOUT
We’re just back at the World Headquarters following another very successful Hardlines Conference last week—and LBMAO’s grand celebration of the association’s 100th anniversary. We won’t be going anywhere for a while now, but stay tuned for details of next year’s Conference. Yes, we’re already planning the 2018 line up!

 


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