February 26, 2018 Volume xxiv, #8


“To have what we want is riches, but to be able to do without is power.”
—George MacDonald (Scottish minister, author, and poet, 1824-1905)

IN THIS ISSUE:

  • TIMBER MART gets back to basics with a “true buying show”

  • Home Depot’s contractor business, online sales jump in latest quarter

  • Patrick Morin kicks off a major spring hiring campaign

  • Lowe’s jumps on Apple’s new Business Chat technology

  • PLUS: Lowe’s opens in Winnipeg, Owl parent makes another acquisition, Cologne show features 3D technology—and Canada Night, Leblanc at Acceo, Chalifour at Formedica, Walmart results, U.S. housing starts, and more!

TIMBER MART gets back to basics with a “true buying show”

MONTREAL — TIMBER MART dealers began streaming into Montreal’s Palais des congrès early on the morning of February 16, as the group opened its eighth annual national buying show. All told, more than 1,100 dealers and vendors showed up for the two-day event, a figure President Bernie Owens credits to the deals on offer as well as the appeal of the location.

“Having the venue in Montreal is loved by the dealers nationally,” he says. Western dealers in particular “love coming to Montreal,” he adds, but “we also get a healthy response from the Atlantic, from all regions.” With several provinces observing Family Day at the weekend’s close, many dealers seized the opportunity to parlay the long weekend into a family vacation.

In addition to the prime location, there are simply fewer buying events nationwide to compete for the independent dealer’s time. “Over the years there are fewer shows,” says Owens, “Quebec doesn’t really have a show for independents, Ontario doesn’t, B.C. no longer does.” That makes it even easier for dealers to say “yes” to what TIMBER MART’s show offers.

“The focus of the show is on bringing the members together,” Owens explains. “The vendors are investing the time to be here; we're rewarding them with business. It’s a win-win.” Exclusive buys, including a Top 10-plus list of hot orders, “help [members] with the cost of the show and thank them for coming.”

In addition, dealer meetings covered topics such as preferred vendor deals and expansions to TIMBER MART Essentials, “day-to-day to products that our dealers use to run their businesses,” Owens explains. The group offers special deals on categories such as gasoline, auto, and telecom. “Those are the hidden savings. They have to buy these products to run their business, but by us consolidating their volumes, it rewards a vendor for the support, so the supplier will get increased business. In turn they have the combined clout” of the buying group, he adds.

Last year, as a trial, the show was held back-to-back with Orgill’s Spring Dealer Market. That pilot wasn’t repeated this year, but many dealers are still taking advantage of the timing of the two events. “The member survey at the end of the day [after last year’s show] said it was best to keep them separate,” Owens explains, “but it’s still that time of year, and many of our members will be going on to Orlando.”

“The success of the show is all about the independent,” he says. “They’re all local entrepreneurs: their strength is their customer service. They can adapt to local circumstances. Our framework is back to being a true buying group. It’s how we can provide value to our dealers and at same time reward our suppliers with business. It’s about buying.”

 

Home Depot’s contractor business, online sales jump in latest quarter

ATLANTA — The Home Depot continues to target the pro and contractor customer and, according to its latest results, the strategy is working in spades.

The company reported strong overall growth in the fourth quarter, as net sales increased by 7.5% to $23.88 billion. Profits for the quarter edged up by 2% to $1.78 billion, hampered by $127 million in costs related to U.S. tax revisions. Annual sales climbed to $100.9 billion, up 6.7% from fiscal 2016. Total same-store sales for the year rose 6.8% and 6.9% at its U.S. stores. 

While results overall were strong, sales to pros, or contractors and trades, were up by double digits, says President, Chairman, and CEO Craig Menear. He spoke last week to analysts on a call immediately following the release of the company’s fourth-quarter and year-end results.

Home Depot has been working hard to attract contractors, with a series of initiatives that include on-time deliveries from the stores and more interaction with pros through online sales.

Sales in related product lines also performed well during the quarter. “Pro-heavy categories—lumber, pressure-treated decking, insulation, and gypsum—all had double-digit growth during the quarter with solid unit productivity,” said Edward Decker, Home Depot’s EVP of merchandising, during the call. Other categories that had double-digit improvements included lumber, electrical, and tools.

Home Depot’s online sales also made strong gains. During the fourth quarter, they were up 21% and for fiscal 2017 grew 21.5%. Online sales now represent 6.7% of the company’s total sales. About 46% of those online sales in the U.S. are picked up in-store.

Based on the health of the U.S. economy, including tax reforms positive for business, an improved housing market, and an extra week in the calendar, Home Depot is forecasting sales growth of about 6.5% for fiscal 2018.

 

Patrick Morin kicks off a major spring hiring campaign

SAINT-PAUL, Que. — Quebec home improvement retailer Patrick Morin is embarking on a massive recruitment drive. On March 15, it will feature an open house in all 21 Patrick Morin stores and at its distribution centre. The company seeks to fill more than 200 positions in anticipation of the spring rush.

The goal of the recruitment day is to present the various types of positions available at Patrick Morin and the many benefits of working for the family-owned chain. The company opened its 21st store in 2017 in Saint-Eustache and has indicated that it will continue to look for new opportunities to add stores and grow its business in the future. It is currently eyeing opportunities in the Quebec City region and on Montreal’s South Shore.

“Patrick Morin is looking to the future and seeing the many opportunities that lie ahead. This massive entry of new hires reflects the growth of our organization and our commitment to constantly setting the bar higher when it comes to customer service,” says Daniel Lampron, general manager at Patrick Morin.

 

Lowe’s jumps on Apple’s new Business Chat technology


MOORESVILLE, N.C. — When Apple announced details of its yet-to-be-released iPhone operating system last month, the Lowe’s name popped up as a partner in a new feature. Business Chat is an avenue for Lowe’s to offer customer service through text messages, according to Apple.

“With Business Chat, it’s easy to have a conversation with a service representative, schedule an appointment, or make purchases using Apple Pay in the Messages app,” a release from Apple says. “Business Chat doesn’t share the user’s contact information with businesses and gives users the ability to stop chatting at any time.”

Apple lists Discover, Hilton, Lowe’s, and Wells Fargo as companies that will be offering the chat feature beginning this spring. Apple’s marketing includes an image of a phone and an interaction between a customer and a Lowe’s employee about a smart home lock.

Business Chat will eliminate the need to make phone calls to get support by putting users in direct contact with Lowe’s customer support people.

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RETAILER NEWS

BOUCHERVILLE, Que. — Lowe’s Canada has opened its newest big box store, this one in Winnipeg. It’s the first for Lowe’s flagship banner in Manitoba and the 64th overall in Canada. The company invested more than $19 million in the new store, which will create 130 permanent jobs. The store features a retail offering space totaling 115,000 square feet, including 95,000 square feet of retail and an adjacent garden centre of 20,000 square feet.

BENTONVILLE, Ark. — Walmart reported higher sales than expected in Q4, as its efforts to ramp up its online channel and make over its stores paid off, but profits still plunged 42.1%. The payment of bonuses and restructuring costs contributed to the decline. Earnings of $2.17 billion represented a decline from $3.76 billion a year ago. Revenues for the quarter totalled $136.27 billion.

 

 

SUPPLIER NEWS
SURREY, B.C. — Gillfor Distribution Inc., the parent company of Owl Distribution Inc. and McIlveen Lumber Ltd., announced its purchase of Brown & Rutherford Co., a distribution company in Winnipeg. Brown & Rutherford was founded in 1872 as a furniture manufacturer, later moving into specialty lumber processing and lumber distribution. With the acquisition, Gillfor adds a strategic distribution location in Manitoba to its five existing DCs and two reload facilities.

COLOGNE, Germany — 3D printing will be highlighted at Eisenwarenmesse, the International Hardware Fair, March 4 to 7. In co-operation with the Berlin agency Haute Innovation, the show is presenting a special exhibition during the show that provides an overview of the potential for production at hardware and home improvement stores, as well as specialized trades and online sales. A total of 30 exhibits will be involved in the program.

 

PEOPLE ON THE MOVE
Marc Leblanc has a new title and expanded responsibilities at Acceo, as a result of organizational changes. He’s been named senior sales and operations manager, responsible for ProfitMaster, Omni, and OGC. The expanded role reflects his takeover of sales function for ProfitMaster, which had been previously handled by Don Kroeker, who has left the company. (Marc.Leblanc@acceo.com)

Claude Chalifour has joined Formedica, a home health care products company, as vice president of business development and major accounts. Chalifour has extensive background in the hardware business, having working at Sodisco-Howden Group, Techniseal, Sterno Home, and Napa Auto Parts.

 

ECONOMIC INDICATORS
U.S. housing starts in January rose by 9.7% seasonally adjusted to 1,326,000 units. Year over year, starts were up 7.3%. Single-family housing starts were up 3.7% from December. Housing intentions as tracked by building permits were up 7.4% in January from the previous month, and up 7.4% year over year. (U.S. Census Bureau)

 

NOTED
According to forecasts by the financial experts of the ING Bank in the Netherlands, 50% of all goods will be manufactured with the help of 3D printers by the year 2060.

 

OVERHEARD
“Overall, we’re very pleased with our pro business in 2017 and we continue to see growth there. And as customers continue to take on bigger projects, as a result of feeling good about their home values, we see that continuing as we move into 2018.”
—Craig Menear, president, chairman, and CEO of Home Depot, commenting on the retailer’s double-digit growth in sales to contractors throughout 2017.
 

OUT AND ABOUT
Our Editor Sigrid Forberg and Publisher Beverly Allen are headed to Cologne, Germany, later this week to attend Eisenwarenmesse—the International Hardware Fair. Weighing in at 1.5 million square feet of floor space, the show is huge—and Beverly and Sigrid will be hosting our annual Canada Night International Reception again. It’s on March 4, at the end of day one of the show, from 6 to 9 p.m., at the Kölschbar, located between Halls 10 and 11. For more information or to register, click here.


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