January 22, 2018 Volume xxiv, #3


“Advice is like snow—the softer it falls, the longer it dwells upon, and the deeper it sinks into the mind.”
—Samuel Taylor Coleridge (English poet and philosopher, 1772-1834)


IN THIS ISSUE:

  • New look Co-op stores cater to DIY convenience and needs of contractors

  • Lowe’s EVP Alain Brisebois no longer with the company

  • B.C. association will celebrate 80th year with hot springs bash

  • Castle adds three members in first weeks of the new year

  • PLUS: Sears Canada shutters remaining stores, Acceo acquired by Harris Computer, DirectBuy assumes Sears Canada warranties, Walmart closing Sam’s Club locations, Watson Gloves celebrates 100th, CanWel takes environmental heat, Colin Carey promoted at Orgill, Jake den Hollander at Doidge RONA, sawmill activity up, and more!

New look Co-op stores cater to DIY convenience and needs of contractors

SASKATOON — Federated Co-operatives Ltd. has been investing in big changes to the look of its home centres. The Greystone Co-op Home Centre in Saskatoon offers the freshest example of this new direction. The 35,000-square-foot store replaces a smaller one that was about five minutes down the road.

The store is operated by Saskatoon Co-op.

Don Ryan, marketing manager for FCL’s Home and Building Solutions division, says the refresh has been under way for the past three years. Part of the process includes standardizing layouts in the stores, while creating more traction for contractors. “We have 20 stores that have changed so far,” he says. “Ongoing, it’s been successful.”

Walking through the Greystone store, Ryan points out how the increased size of the store lends itself to some big box touches. A power aisle through the centre of retail area showcases key seasonal and promotional items such as snow blowers, roof rakes, and brand-name power tools. The high ceilings accommodate large, full-colour product images in signage above the racks.

He further stresses the importance of a “show-and-tell” approach for increasing sales, exemplified by the presence of numerous vignettes in the kitchen and bath department. “In the past, we could talk about selling sinks, but people couldn’t see what they looked like.” The vignettes include a range of countertops, and in the bath area, vignettes feature coloured tubs.

Overall, this store has more building materials on the floor than its predecessors. That includes a bigger range of doors and mouldings than in the past. “We’re trying to get them out of the back and let customers see them,” Ryan says. He credits one supplier, Alexandria Moulding, which worked closely with store design and merchandising company BMF. “They’ve been good partners for us,” he notes. This merchandising philosophy applies to all the Co-op home centres, he added.

In addition, the home centres have seen an increase in demand for dimensional and sheet lumber and the new store reflects efforts to meet that demand, including a 25,000-square-foot drive-through lumber area. “We want to build on that.”

FCL is sourcing higher quality lumber on behalf of the Co-ops as wood is becoming more popular as an interior finish. And, thanks to the indoor drive-through, the Greystone store is also attracting more contractors. It’s the first of the Co-op stores to offer this.

(We have more photos of this store for you to view. Click here to take a tour of Greystone C-op Home Centre.—your ever-helpful Editor)

 

Lowe’s EVP Alain Brisebois no longer with the company

BOUCHERVILLE, Que. — One of Lowe’s Canada’s top executives has left the company. Alain Brisebois, who had the hefty title of executive vice-president, operations central services, and affiliate dealers, has departed suddenly.

Brisebois joined RONA in 2013 and had been in his current role since June 2016. He managed to weather the changes at RONA as it transitioned through the takeover by Lowe’s Cos. to become Lowe’s Canada. Reporting directly to CEO Sylvain Prud’homme, Brisebois was a key member of the senior team that helped Prud’homme and the Lowe’s team manage RONA’s integration; and he was an important point person for RONA’s dealings with its independent, or affiliate, dealers.

Lowe’s Canada would not comment on Brisebois’ departure. However, according to a Lowe’s Canada spokesperson, “His responsibilities have been shared amongst the other members on the executive team.”

Brisebois had a range of duties in his role as EVP. But Lowe’s Canada confirms that his interaction with the affiliate dealers is being taken over by Tony Cioffi, senior vice president and CFO of Lowe’s Canada. Cioffi joined the company in September 2016, and was formerly with KPMG.

 

B.C. association will celebrate 80th year with hot springs bash

SURREY, B.C. — The Building Supply Industry Association of B.C. (BSIA) is celebrating 80 years in existence and will cap off the milestone with an anniversary event at Harrison Hot Springs Resort on July 5 and 6, 2018.

According to Thomas Foreman, president of the BSIA, the purpose of the event is to bring the province’s building supply industry together in an environment that enables association members and supporters network, relax, and get inspired. The event will also have a trade show aspect featuring new products.

This event will begin late in the afternoon of July 5, when delegates will be able to view table top displays of products and services. In the banquet room, entertainer Andrew Johns, who also performed at the BSIA’s 75th anniversary in Whistler, will be performing. A guest speaker will lead of the evening, followed by a gala dinner. The gala will also play host to the BSIA’s annual Orion Awards presentation.

Day two will feature a series of leisure activities, starting with a continental breakfast, and include a golf tournament and sturgeon fishing.

The host hotel is the Harrison Hot Springs Resort and the BSIA has set aside a room block from July 5 to July 8. The venue features biking, swimming, hiking, fishing, paddling, and spas. Special rates have been negotiated for delegates for the 80th anniversary.

(For more information and to book your room at Harrison Hot Springs, please click here.)

 

Castle adds three members in first weeks of the new year


MISSISSAUGA, Ont. — Castle Building Centres Group has hit the road running this year, with three new members announced already in the first half of January. The first is a dealer in Sherbrooke, Que. Murexpair Inc. has been serving the local community there for 17 years.

Murexpair owner Jonathan Sirois specializes in roofing and siding to contractors and local consumers. When he and his current partner Bruno Langlois began to consider a buying group, they were looking for an opportunity to grow their business by adding new products, while maintaining their store’s identity and branding. Through Castle, Murexpair expects to offer a wider range of steel roofing, siding, decking products, and commercial steel siding.

Also new to the group is Timber Spirit Supply in Spiritwood, Sask. Matt St. Onge founded the business in 2015 as a full-service lumber, building materials, and hardware destination for local contractors, home builders, and consumers.

“Our team is dedicated to accommodating our customers’ every need and ensuring the best possible fit and solution. We needed the same custom fit for our growing business and Castle was the only buying group that could offer this kind of flexibility,” said St. Onge. A grand opening celebration as Castle Building Centres is planned for the spring, once the store has gone through a complete rebranding.

The latest member to join the buying group is in Saskatoon. LKQ Building Supply is a specialty supply operation owned by Ken Spetz. The business provides building materials for restoration and finishing, along with a range of specialty building products for local contractors.

“When we decided to expand into retail, we saw the best opportunity for success with Castle,” said Spetz. That store will also hold a grand opening in the spring.


DID YOU KNOW…?

...that this year’s Eisenwarenmesse, the International Hardware Fair, will be held in Cologne from March 4 to 7? The show, which is held every other year, has returned to a four-day format, due to the sheer size of the event. Spread across 1.5 million square feet of show space, the International Hardware Fair expects to attract more than 45,000 trade visitors. They will include a number of Canadians, both vendors and buyers, who will be able to network at Hardlines’ own Canada Night Reception. Click here for more information.

RETAILER NEWS

TORONTO — Sears Canada shuttered its last remaining stores on January 14. The retailer had been in Canada since 1953. By the time it announced at the end of last year that it would close for good, it had 190 department stores. Canadian Press named the closing of Sears the business news story of 2017.

TORONTO — DirectBuy, a members-only shopping club selling home products, has announced a new warranty membership for Sears Canada extended warranty customers who have been left without coverage for their appliances. All Sears customers who join DirectBuy will continue to be covered at no additional cost. DirectBuy has six stores, in Vancouver, Central Alberta, Calgary, Toronto, and Ottawa.

 

 

HOFFMAN ESTATES, Ill. — Sears has borrowed $100 million more from CEO Edward Lampert’s investment companies and may get an even bigger loan through a new agreement, according to a document filed with the Securities and Exchange Commission. The loan agreement gave Sears an initial $100 million, with provisions for Sears to potentially borrow another $200 million from Lampert’s companies, the document says. Lampert had already loaned Sears, which has struggled for years to turn a profit, hundreds of millions of dollars. Recently, the retailer announced that it would be closing 103 stores by early April.

BENTONVILLE, Ark. — Walmart is closing 63 Sam’s Club locations across the U.S., potentially impacting up to 11,000 workers. The news came unexpectedly, taking both employees and Wall Street by surprise. At some locations, staff showed up for their shifts to find notices on the doors. Employees at other locations were sent away by police. “After a thorough review, it became clear we had built clubs in some locations that impacted other clubs, and where population had not grown as anticipated,” Sam’s Club CEO John Furner said in an email to employees.

 
SUPPLIER NEWS
MONTREAL — Retail support and POS provider Acceo Solutions Inc. has been acquired by Constellation Software Inc., through its wholly-owned subsidiary N. Harris Computer Corp. Harris has agreed to purchase all the assets and shares of Acceo for $250 million. Acceo provides management, accounting and payments, consulting, and support for e-business to small and medium businesses, specializing in hardware and home improvement centres, retail, public sector, daycare centres, and tour operators. Sales last year totalled about $116 million. Harris owns a number of software companies, serving industries in utilities, healthcare, and the public sector, especially in Quebec.
 
VANCOUVER — Canadian work-glove maker Watson Gloves is celebrating its 100th anniversary this year. The company was founded in 1918 by John Watson and Wayne Stanley, who started selling hand-crafted gloves to Vancouver dock workers. Today, it sells 2,000 styles for use in construction, motorcycling, and gardening.

SMITHERS, B.C. — CanWel Building Supplies is taking heat for its efforts to get government approval for permits to begin logging in land adjacent to Seven Sisters Provincial Park. CanWel owns the timber-cutting rights to the land. Advocates for the park, a 39,000-hectare wilderness tract between Smithers and Terrace, B.C., claim some of the CanWel lands that are right beside the park could have a negative impact on wildlife, nearby watersheds, and mushroom picking areas.

 

PEOPLE ON THE MOVE
At Orgill, Inc., Colin Carey has been promoted to the role of district manager for Western Canada. He was previously an Orgill sales representative in Northern Alberta and Saskatchewan. In his new position, Carey will support Orgill’s customers throughout British Columbia, Alberta, Saskatchewan, and Manitoba. Carey distinguished himself last year, and was recognized by Orgill, for his service to his customers and community during the 2016 wildfires that tore through Fort McMurray. As a volunteer firefighter, Colin used his vacation time to head to the area and help fight the fires.

At Doidge Building Centres Ltd., Jake den Hollander has been promoted to general manager operations. He was formerly GM. The six-store chain recently joined RONA as an affiliate store.

At Walmart, Judith McKenna has been named the company’s international president and CEO. She was formerly COO. McKenna succeeds David Cheesewright, effective February 1.

IN MEMORIAM
David Deyell passed away on January 14 after a brief, sudden illness. Deyell joined specialty extrusion maker Armacell Canada Inc. in 1999 when it was still known as Industrial Thermo Polymers Ltd., and is credited with raising its profile both here and in the U.S. He is survived by his wife Catrina and their son Cory, having been predeceased by his mother Eleanor in 2011.

 

ECONOMIC INDICATORS
Lumber production rose 6.3% from September to 5,991,000 cubic metres in October. Production was 1.2% higher than in October 2016. Sawmills shipped 5,884,000 cubic metres of lumber in October, up 1.1% from September and 0.3% higher than in October 2016. (StatCan)

 

NOTED
The year 2017 is “poised to be one of the strongest years for Canadian retail in recent memory,” according to retail consultant Ed Strapagiel’s analysis of data for the quarter ending last October. Sales growth of 7% year to date seems likely to continue to be reflected in the data for the last two months of the year, he says. The year was particularly kind to building and garden centres, he added, with year-to-date sales rising 13.2%.

 

OVERHEARD…
“We made significant progress in 2017 through our efforts to reset our cost base and enhance our liquidity … The financial transactions we are pursuing and incremental cost actions are designed to accelerate our return to profitability and enable Sears Holdings to increase our investment in the most promising opportunities in our enterprise, including our Shop Your Way network and our Sears Home Services business.”
—Edward Lampert, CEO of Sears, on his latest infusion of cash to the ailing retailer.

 

OUT AND ABOUT
David Chestnut and Michael McLarney will be attending the CHHMA breakfast seminar featuring Mike Magennis, VP business development and operations at Canadian Tire. It’s taking place tomorrow at the Mississauga Convention Centre in Mississauga.


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