March 12, 2018 Volume xxiv, #10 Small opportunities are often the beginning of great enterprises.” IN THIS ISSUE:
COLOGNE, Germany — The International Hardware Fair (Eisenwarenmesse) brought together some 57,000 attendees last week from all over the globe to meet 27,000 exhibitors from 55 countries. One of the largest fairs in the world, the biannual show offers North Americans great insights into the hottest trends and products hitting the home improvement market. Buyers from Canadian Tire, Home Hardware, Home Depot, and even Patrick Morin made the trip to walk the show. Although the show isn’t hugely popular with Canadian vendors, the few that do make the journey have found it to be worthwhile. Cobra Anchors, which has been exhibiting for several years, was back with a booth. Alain Di Vincenzo from Cobra says in the first few hours he met buyers from all over the world, including South Africa and Tunisia. Di Vincenzo says Cobra also made contact with buyers from Canadian Tire at the 2016 show. “We had to go to Germany to meet them,” he jokes. “Germany is very good for us. We did a lot of business last time; it’s huge for us.” The show offers North American companies the opportunity to get their foot in the door with international buyers. Alain Laniel, who takes care of international sales for Cobra, says the International Hardware Fair is a good show “to meet people from other countries, because they help introduce you to the right people. You can’t just go to these small countries if you don’t know anyone there.” This year’s show returned to the previous four-day format, after visitors had expressed that three days weren’t enough in 2016. There was plenty new to see. Digitalization was a major theme as both the products and the booths that housed them reflected the technological advancements that are influencing the future of the home improvement industry. A “Start-up Village”, sponsored by the Global DIY Summit, brought together groups that are leading the way in digital ideas and processes for retail. They presented seminars and displays, including a 3D printing exhibit that showcased many impressive 3D-printed items. Show organizers anticipate that 3D-printed products will soon be available for sale in retail stores, and they believe retailers are wise to become familiar with them now. Germany’s Amazon Business was also on hand—for their second-ever show—to answer questions and help B2B owners understand how they can work with, rather than compete against, the online juggernaut. Also of note at this year’s show was the growth of the Asian manufacturing presence. Three of the venue’s 11 halls were dedicated to exhibitors from Asia, especially China and Korea. The next International Hardware Fair will be March 1 to 4, 2020 in Cologne.
Hardlines Canada Night in Cologne maintains a long-standing tradition COLOGNE — Hardlines hosted its Canada Night reception at the end of the first day of the International Hardware Fair (Eisenwarenmesse) last week. In what has become an enduring tradition at the show, Canadians (and honorary patriots) gathered at the Kölschbar, right on the show premises, to enjoy some local beers and toast the start of a successful show. Sponsored by Koelnmesse, the organization that owns and operates the show, Canada Night drew a good number of attendees who turned out to network and go over the events of the day. Canadian retailers and vendors alike mingled with representatives from Koelnmesse, the Global DIY Summit, and other international organizations. No Canada Night is complete until a very enthusiastic version of “O Canada” is belted out. By the end of the evening, in true Canadian form, the last few stragglers outlasted even the bar staff and had to be sent home, as the cleaning staff waited outside to get into the bar.
RONA to feature products, services, and a good cause at Montreal Home Show BOUCHERVILLE, Que. — RONA is a co-presenter of the Montreal National Home Show, being held until March 18 at Montreal’s Place Bonaventure. RONA, now a banner of Lowe’s Canada, is a legacy brand that has been in Quebec since 1939, so Lowe’s is featuring it at the consumer show. RONA will occupy close to 6,000 square feet in the centre of the venue and showcase a series of booths that will give consumers ideas about the latest industry innovations for their home projects. Categories for the summer will be showcased, from patio furniture to barbecues and outdoor power equipment. RONA will also promote its installation services, considered by the company to be a major strength of the RONA banner. Front and centre in the RONA kiosk will be a 2,000-square-foot section dedicated to home appliances. To promote attendance, visitors will get free admission to the Home Show on March 13 by presenting a RONA invoice for purchases made during the last month. The show will also be a way for Lowe’s Canada to promote a good cause, and its involvement in that cause: the retailer is a major sponsor of the Maison Enfant Soleil, which will be on display at the National Home Show. The house is the prize in a charitable lottery by Operation Enfant Soleil to raise money for hospital care for children in Quebec. Lowe’s/RONA is the official supplier of building materials for the 2018 model home. Starting April 6, RONA and Reno-Depot stores throughout Quebec will sell tickets for the draw to the Maison Enfant Soleil. The winner will receive the entirely decorated and furnished house, as well as a grant for the purchase of a lot in the city of their choice—a prize worth $500,000.
U.S. distributor buying groups Pro and Val-Test announce alliance
DENVER, Col. — Two major U.S. retail groups have announced a new alliance. Pro Group and Val-Test Group, both of them buying groups for regional hardware wholesalers, are joining forces. The partnership is “designed to leverage both groups’ strengths to deliver superior value to member wholesale distributors and suppliers, and the retailers they serve,” said a release by Pro Group. Both Pro and Val-Test are independently owned and operated, and their memberships consist of wholesalers that serve the hardware, marine, farm, lawn and garden, pet, flooring, and paint and sundries industries. Together, Pro Group’s 75 member distributors and Val-Test Group’s 45 member distributors represent combined annual sales of more than $6 billion. The two groups will collaborate to streamline promotional and advertising efforts, combining printing and digital media efficiencies to reach a larger consumer audience. Additionally, the united groups plan to collaborate on merchandising and to consolidate trade shows.
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RETAILER NEWS VAUGHAN, Ont. — TIMBER MART has renewed its agreement with Hockey Canada as an International Partner through 2022, retaining marketing and activation rights to the organization’s national championships and select International Ice Hockey Federation events on Canadian ice and around the world. Hockey Canada and TIMBER MART first struck a partnership in 2010, and at the IIHF World Junior Championship hosted in Toronto and Montreal, the buying group launched its Sharp Shooter-FanPhoto contest to engage Canadians online and encourage them to show, through photos, what hockey means to them. BOUCHERVILLE, Que. — Lowe’s Canada has submitted a site plan to the city of Windsor, Ont., for a new location on the premises vacated by a former RONA store in 2013, the Windsor Star reports. The location, in the city’s east end, would be Lowe’s second in Windsor. Under the plan, the most significant changes to the site would be a 4,500-square-foot expansion of the warehouse and modernization of the façade. TORONTO — Ontario’s Superior Court has named a law firm as independent reviewer to probe payouts of some $3 billion made to Sears Canada shareholders. Sears pensioners had asked the court to appoint Lax O’Sullivan Lisus Gottlieb LLP to investigate the payments, which were made when the company’s pension plan was nearly $300 million short. They are seeking to reclaim some of the cash from CEO Eddie Lampert’s hedge fund, ESL Investments, one of the beneficiaries of the payouts. ISSAQUAH, Wash. — Costco Wholesale Corp. reported that second-quarter net sales increased 10.8%, to $32.28 billion, from $29.13 billion last year. Net sales for the first 24 weeks of fiscal 2018 increased 12.0% to $63.40 billion, from $56.60 billion last year. Same-store sales for the quarter were up 7.1% in the U.S. and up 8.7% in Canada, thanks largely to inflation of gas prices.
SUPPLIER NEWS CHARLOTTE, N.C. — Jeld-Wen Holding has reached an agreement to acquire all outstanding shares of door and frame maker ABS. The deal is expected to close late in the first quarter. Jeld-Wen also completed the acquisition of A&L, an Australian manufacturer of residential aluminum windows and patio doors.
PEOPLE ON THE MOVE Trish Hopkins is now national account manager at Intertape Polymer Group. She was most recently with Quinco & Co. (Smart Tiles), and her background includes positions at Richelieu Hardware and RCR International. Jennifer Cave has joined geo-textile manufacturer Hanes Companies as general manager, Canada. She was previously VP business development for Toolway Industries, and served on the board of the Quebec industry association AQMAT. (jennifer.cave@hanescompanies.com) Mike Kostesku is now a national account manager for CanWel Building Materials. He was previously at Southwire Canada and his background includes stints at Home Depot Canada and Sears Canada. (mike.kostesku@canwel.com) Dave Bickel is now SVP, sales and marketing with Quality Craft after a long career in the DIY industry, most recently as vice president of sales at K’nex, a U.S.-based construction toy company. Jeld-Wen CEO and President Mark Beck has left the company by mutual agreement. Chairman Kirk S. Hachigian has taken on his duties on an interim basis.
ECONOMIC INDICATORS Spending on construction in the U.S. remained stable in January, with a 0.6% uptick in single-family dwellings offset by commercial construction spending, which declined by 2.7%. The figures come after 2017 saw the slowest growth in construction spending in six years. State and federal governments compensated for the some of the slump by upping their activity, with federal spending surging by 14.9% to a seven-year high. (U.S. Commerce Dept.)
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