November 6, 2017 Volume xxiii, #42
“Beware of the barrenness of a busy life.” IN THIS ISSUE:
VANCOUVER — The lack of progress in NAFTA talks gives U.S. lumber industry lobbyists no incentive to compromise in the parallel softwood negotiations, the largest Canadian forestry firm’s CEO warns. In a conference call, West Fraser Timber’s Ted Seraphim told analysts that a resolution was in the hands of the U.S. Lumber Council, whose leaders “haven’t shown a willingness to effectively negotiate,” the Globe and Mail reports. The U.S. Commerce Department is due to render a final decision by November 13. If it sides with American lumber producers, Canadian firms will have to pay combined final tariffs beginning next year. The ongoing softwood lumber dispute—in addition to hurricanes in the U.S. South and the wildfires in British Columbia—impacted West Fraser’s results for the third quarter. Sales fell to $1.25 billion from $1.32 billion and earnings of $120 million represented a decline from last Q3’s $146 million.
Latest seasonal décor from Home Depot Canada is heavy on high tech TORONTO — Just one day after Halloween, retailers of all stripes are already setting their sights on Christmas, and Home Depot Canada is no exception. On November 1, buyers from Home Depot Canada’s seasonal and outdoor products categories gathered in a hip restaurant in downtown Toronto to present the latest in seasonal décor for the coming Christmas season. The giant home improvement retailer was showing off everything from traditional trees and decorations to items driven by the latest high-tech gimmickry. Dara Greenberg, senior merchant for live goods, was joined by Mark Beaty, seasonal buyer, and Janette Ewen, Home Depot Canada’s décor and lifestyle expert. Greenberg explained how the buyers plan 18 months out for the latest trends and colours that will be in for the coming season. Then the retailer turns to its overseas suppliers to fulfill orders. A number of trees were pre-decorated right out of the box, while others featured trim also available from Home Depot Canada. A standout for this year was the increase in smart technology in many of the trees. One looked like a simple silver, unadorned tree. But it could be controlled remotely to begin changing colours, from red to green to purple. Another tree could shrink from nine feet to seven feet with the click of a button. In another room, power tools and smart home products got a big push, decorated and placed beneath even more Christmas trees. Home Depot’s own Ryobi and Ridgid brands were prominently featured, along with smart home products to help control the “smart” trees.
RONA’s new concept for its building centres aims at project sales, contractors BOUCHERVILLE, Que. — Lowe’s Canada has stepped up its commitment to small and medium-sized building centres with the launch of a new concept for its so-called proximity stores in the country. The new look is designed to better reflect the latest trends in the residential housing market, with open floor plans, brighter rooms, and outside spaces designed to become natural extensions of the interior. These trends are reflected both in the store layout and strategic placement of some departments, as well as in the product selection. The aim is to achieve a brighter, less compartmentalized store, with racking entirely redesigned and lowered, except on the perimeter of the store, giving customers a 360-degree view of their surroundings. In addition, seasonal products have been moved up near the entrance so the displays can be renewed on a regular basis, and household appliances now have a prime location near the kitchen project section. RONA’s Longueuil store on Roland-Therrien Boulevard is the first to undergo a major transformation, at a cost of $2.6 million. By the end of 2018, some 15 stores will have made the switch to the new RONA store model. The new format will be implemented in its corporate stores and be available to affiliate dealers, as well. “As we clearly stated a year ago, we are committed to RONA and the building centre model as one of Lowe’s Canada’s pillars of growth,” said Serge Éthier, executive vice-president of RONA Proximity. “Our new RONA store prototype was developed with three goals in mind: to better meet current needs and trends in renovation, establish ourselves as our customers’ go-to destination for projects, and enhance our offering for contractors and pros, who account for a larger portion of building centres’ client base than it is the case for big box stores.” The new building centre model emphasizes turnkey renovation projects, including remodelling a kitchen or bathroom, repairing a roof, or replacing doors and windows. To support project sales, the store will offer a full range of services to guide and support customers throughout their project. These include design consulting, 3D renderings, and installation services. These services are located near the appliance section. Eventually, all RONA building centres will feature a kitchen section. The new store model is also designed to provide contractors and pros with an enhanced selection of services. These include a reserved parking area, a dedicated entrance and service counter, extended business hours to fit contractors’ schedules, a special fleet of trucks for construction-site deliveries, a minimum 15,000-square-foot drive-through lumberyard, and charge-account services to speed up and simplify purchasing.
Canadian Tire continues to look for more private-label lines to boost margins TORONTO — Canadian Tire recognizes the value of proprietary brands. They set the retailer apart, letting it offer products not available elsewhere, which is also a great counter-move against online price shopping. The house brands can typically give head office more control over supply and give the dealers better margins. The company is looking to its Mark’s clothing division for inspiration, says Canadian Tire CEO Stephen Wetmore. The Mark’s stores, he said in a recent analysts’ call, have a high ratio of private labels to national brands. In fact, about 70% of the products sold at Mark’s are owned brands. While Wetmore would like to see that ratio achieved in the Canadian Tire Retail stores, efforts to increase private brands are already working. By mid-year, CTR’s sales of owned brands were up 8% year over year. According to Allan MacDonald, president of CTR, a new line of jeans was introduced at its FGL stores, while additions have been made to the kitchenwares lines, “and you can expect to see similar announcements in the key categories of lawn and garden care, outdoor tools, and barbecues later this quarter,” he added. Most recently, Canadian Tire bought up the Paderno brand name for Canada and the retailer has been rumoured to be in talks with Sears Canada to acquire the Kenmore brand of appliances. Back in July, Sears in the U.S. began selling Kenmore appliances through Amazon, though the products are not available to Canadian shoppers.
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RETAILER NEWS BOUCHERVILLE, Que. — RONA in Saint-Odilon, Que., has new owners following the retirement of Edwin Magher. The Poulin-Lussier family, natives of the area, are taking the reins to keep the store open in order to serve the community’s needs. Maxime Lussier, co-owner of RONA Quincaillerie Poulin, Lussier et filles, said the family has been delighted by their reception in the community. Their priority is to grow the agricultural side of the business, a significant need in the region. HOFFMAN ESTATES, Ill. — In an employee memo issued last month, Sears Holdings Corp. announced it would no longer sell Whirlpool products, ending a partnership between the two companies that has spanned more than a century, according to the Chicago Tribune. Effective immediately, Sears will no longer carry many Whirlpool brands, including Maytag, KitchenAid, and Jenn-Air. In the memo, the retailer cited pricing disputes as its reason for discontinuing the partnership. SEATTLE — Amazon will open its seventh Canadian fulfillment centre, this one in the Nose Creek Business Park in the greater Calgary region’s Rocky View community. The 600,000-square-foot centre is the first for Amazon in Alberta and will create more than 750 jobs. The new facility will join Amazon's network of current fulfillment centres in Brampton, Mississauga, and Milton, Ont.; and Delta and New Westminster, B.C. STOCKHOLM — Ikea is experimenting with smaller outlets that can serve customers in city centres. These design and showrooms are part of the giant furniture maker’s efforts to become more accessible to a greater range of customers. One such trial site, a kitchen showroom, has been set up in Stockholm’s financial district. According to a report in Reuters, Ikea is looking for ways to display its entire product range digitally in these smaller spaces. TORONTO — Canadian Tire’s private-label brands of Maximum power tools and Noma Christmas lights have been showing up for sale on Amazon. But Canadian Tire says the sales are unauthorized. Like many other major retailers, Canadian Tire protects its owned brands carefully. In 2015, it sued Walmart, claiming the U.S. discount retailer had illegally copied a proprietary design of one of its Noma decorative lights. ISSAQUAH, Wash. — Costco Wholesale Corp. had net sales of $10.02 billion in October, an increase of 10.1% from $9.11 billion during the similar period last year.
SUPPLIER NEWS MONTREAL — Intertape Polymer Group has unveiled plans for the growth of its plant near Midland, N.C. The $13.5 million investment will create 10 new jobs, according to the company. The facility was built as part of a $49 million investment in North Carolina’s Cabarrus County announced last year. MISSISSAUGA, Ont. — Pfister has announced that its faucet lines will now be stocked in Canadian Tire stores as part of the retailer’s plumbing expansion. “We are proud to partner with Canadian Tire to bring these innovative styles and designs and unparalleled quality to more Canadians,” Pfister Marketing Manager Adam Findlay said in a release. MILWAUKEE — A federal court jury has ruled in Milwaukee Tool’s favour in a lawsuit the company filed against fellow Wisconsin manufacturer Snap-on. The jury awarded $27.8 million to Milwaukee, which had complained that Kenosha-based Snap-on infringed on three patents for battery packs when it produced lithium-ion battery packs of its own. Milwaukee welcomed the ruling, while Snap-on spokesman Rick Secor said in an email statement that the company would “vigorously appeal” the decision.
PEOPLE ON THE MOVE Steve Burgess has joined Briggs & Stratton Canada as country manager−Canada. Most recently general manager at All-Weather Windows, Burgess’s career in the industry also includes almost eight years at Master Lock. (burgess.stephen@basco.com; 905-565-0265, ext. 1006)
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