April 23, 2018 Volume xxiv, #16
“Example is not the main thing influencing others. It is the only thing.”
—Albert Schweitzer (humanitarian, philosopher, musician, and physician, 1875-1965)
IN THIS ISSUE:
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Home Hardware Market draws national attendance despite winter storms
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Traditional home improvement categories lift UFA’s retail operations in 2017
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Castle returns to San Diego for 55th annual general meeting
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Memoir reveals former Quebec economy minister was furious over RONA sale
PLUS: Castle adds members, Lowe’s Canada launches Eco products, Home Hardware one of Canada’s best managed, BMR’s newest in New Brunswick, Home Depot hiring IT specialists, CHHMA offers hospitality at NHS, RenoWare partners with LinkGreen, Gow’s Amanda Fancy is a Top Gun, U.S. housing starts, and more!
Home Hardware Market draws national attendance despite winter storms
ST. JACOBS, Ont. — Home Hardware’s annual Spring Market was held last week, under the theme “One Solution”. This year’s keynote speaker was Marnie McBean, a three-time Olympic gold medallist in rowing, advocate for LGBT athletes, and the author of The Power of More: How Small Steps Can Help You Achieve Big Goals.
Winter ice storms ravaged most of Southern and Central Ontario with rain, snow, and ice pellets, causing road closures, forcing flight cancellations, and leaving upwards of 100,000 people without power. Despite the setback, the market managed to attract dealers from across the country to Home Hardware’s head office and distribution centre in St. Jacobs, Ont. And while cold temperatures put a damper on the outdoor exhibits, vendors met with dealers and their teams, who could also take advantage of meetings and seminars on the show floor.
Along with Home Hardware’s latest product offerings, dealers could visit a model store onsite featuring the latest merchandising ideas, and take a tour of Home’s Beauti-Tone paint and chemicals plant in nearby Burford, Ont. There, representatives from the Toronto Blue Jays, of which Home is a major sponsor, assisted at the unveiling of this year’s colour card. Beauti-Tone, which is the official paint of the Blue Jays, launched themed colours with names such as “Power Hitter”, “Slugger”, and “Grand Slam”.
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Traditional home improvement categories lift UFA’s retail operations in 2017
RED DEER, Alta. — United Farmers of Alberta Co-operative Ltd. released its annual report earlier this month, and the company reported positive results, with net income up 2%. Solid performance of the Alberta-based co-op’s combined retail business from its 35 Farm and Ranch stores, plus one traditional building centre in Fort McMurray, helped drive those numbers.
UFA generated a total of $1.5 billion in revenue last year, with $1.2 billion coming from petroleum sales. The co-op’s combined ag retail business totalled $366 million in 2017, up from $348 million in 2016. The overall business was up 5%, with categories like fencing and feed leading the way.
The division’s supply chain team developed a new market strategy in 2017 that focused on key categories, such as calving supplies and fence posts, to improve the availability of seasonal products when co-op members and customers need them. These items were added into store inventories at the start of the season to ensure seasonal items would be available as soon as the weather permitted.
The core ag categories performed well, “But lumber and building materials follow close behind,” says Glenn Bingley, COO retail operations, AgriBusiness for UFA. In fact, those traditional LBM categories saw bigger growth last year than the ag side, up 8%, Bingley says. Of the stores’ overall sales, $145.8 million was generated on the hardlines and LBM side. But, he points out, “Everything is sold out of the stores,” with the commercial side supported by its own external sales force that drives the orders back to the retail outlets.
That growth came despite a slow start to the year, “even though we had extremely challenging conditions and weather last year, including a very delayed spring. But it picked up through the year.” The hardware and building materials business experienced strong same-store sales growth, as the company has been actively investing in its retail operations with refined assortments and new merchandising. New visual merchandising tools and operational initiatives were developed to help both members and customers better navigate the stores.
“We’re seeing some nice growth there,” Bingley says. “Working with our vendors is paying off,” he adds, and response from customers has been positive, with increased store traffic recorded along with the strong sales growth.
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Castle returns to San Diego for 55th annual general meeting
SAN DIEGO, Calif. — Castle Building Centres Group returned to the historic Hotel del Coronado in San Diego, Calif., to celebrate its 55th annual meeting and bring dealers, vendors, and their families together for some vacation time. The event hosted almost 450 people.
The 2018 AGM kicked off with an opening night party overlooking the Pacific Ocean. The events continued the following morning with business sessions and presentations from James Jones, VP of national marketing, and Castle President Ken Jenkins. The business program was balanced by recreational outings, including an evening at San Diego’s SeaWorld.
The event wrapped on the final day with a presentation by Peter Mansbridge, renowned Canadian journalist and former anchor on the CBC. He delivered a proudly Canadian keynote highlighting some of his most memorable journeys around the world, followed by a souvenir photo opportunity. The day came to a close with a gala dinner.
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Memoir reveals former Quebec economy minister was furious over RONA sale
QUEBEC CITY — Jacques Daoust, Quebec’s former economy minister, opposed the sale of RONA to Lowe’s and was furious when his government approved it without him, according to a document written before his death that was obtained by Quebecor Media and published in the Journal de Montréal.
Daoust held the economy portfolio at the time Lowe’s obtained approval for its acquisition of RONA. He was shuffled to the transport ministry at the beginning of 2016, continuing in that post until he resigned his seat the following summer.
He had been embroiled in controversy over his role as minister in charge of Investissement Quebec. That agency had sold its minority stake in RONA, clearing the way for Quebec’s Caisse de dépôt et placement, RONA’s majority shareholder, to go through with the sale. Support for the sale was not unanimous. The pension fund for Quebec’s largest trade union opposed the sale, but its stake in RONA amounted to just 3.5%.
Daoust’s resignation followed the leaking of emails between his former chief of staff, Pierre Ouellet, and an Investissement Quebec executive, in which Ouellet claimed Daoust was in the loop about the decision.
The opposition latched onto the emails as proof that Daoust had lied about his lack of knowledge about the deal. Even in resigning, however, he stuck to his story. In the newly uncovered document, Daoust accuses Ouellet of conspiring with Premier Philippe Couillard’s office to approve the sale behind his back, and then demanding Daoust’s public support for the decision.
In a radio interview, Sebastien Daoust said that the RONA sale was a sore subject for his father. But he stressed that the excerpts published by the Journal jive with what little the elder Daoust did confide. The premier, for his part, has held to his denial that he or his staff knew of the deal, but opposition politicians remain skeptical. The Leader of the Opposition, the Parti Quebecois’ Jean-François Lisée, denounced the Liberals’ “tome of lies” throughout the affair, accusing Couillard of “economic anti-nationalism.”
François Legault, the Air Transat co-founder who now leads the centre-right Coalition avenir Québec, gave a press conference after the extracts from the written declaration were published, supporting Daoust and his version of the events.
Daoust was 69 when he died last August.
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DID YOU KNOW…?
... that Hardlines will be at the National Hardware Show in Las Vegas? That’s right, we’ll be there looking for news—and new products. Got a hot new product you want dealers to learn about? Let us know before we get there, or even while we’re walking the show. Email Michael McLarney with your lead!
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RETAILER NEWS
ST. JACOBS, Ont. — For the sixth consecutive year, Home Hardware Stores was honoured as one of Canada’s Best Managed Companies. Now in its 25th year, Canada’s Best Managed Companies recognizes Canadian companies for their innovative business practices. Applicants are evaluated by an independent judging panel made up of representatives from program sponsors, in addition to special guest judges.
BOUCHERVILLE, Que. — Groupe BMR has welcomed its fourth store in New Brunswick: D.E. Landry in Saint-François-de-Madawaska is the fourth store in the province to join the banner in less than a month. A family-owned business for four generations, the store saw Joey Landry take the helm last March. “BMR is very aware of its impact on local communities, and its values align perfectly with ours,” says Landry.
MISSISSAUGA, Ont. — Castle Building Centres has added two new dealers to its ranks. The first is New North Exteriors in North Bay, Ont., which specializes in the supply and installation of exterior products. Owners David Bruneau and Sophie Belanger, with 30 years in the business, purchased the outlet just over a year ago. The other new member is Bamfield Builders Supply Ltd., on the west coast of Vancouver Island. Owners Bob Baden and Kelly Bartlett have been serving the local area, including the neighbouring First Nations village of Anacla, for 21 years.
BOUCHERVILLE, Que. — Lowe’s Canada has announced the launch of its Eco product program in all corporate and participating affiliated RONA, Reno-Depot, and Lowe’s stores across the country. The program aims to help consumers reduce the environmental footprint of their home improvement and construction projects by offering and clearly identifying 3,500 products that represent more environmentally-friendly alternatives. To kick off the program, a tree was to be planted for each Eco product (excluding forestry) sold on Earth Day.
CHICAGO — W.W. Grainger reported that its Q1 sales amounted to $2.8 billion, a 9% increase from $2.5 billion posted a year ago. Net earnings for the quarter of $232 million were up 32% from $175 million in 2017. In Canada, Acklands Grainger saw sales decline 6% in local currency. The Canadian segment posted an operating loss of $20 million, compared to $17 million in the prior year, primarily driven by higher restructuring expenses.
ATLANTA — The Home Depot is hiring approximately 1,000 new technology professionals this year at its primary technology centres in Atlanta, Ga., and Austin and Dallas, Tex. The hires will support initiatives related to Home Depot’s $11.1 billion, three-year strategic investment plan, which addresses the store and online shopping experience, supply chain and delivery capabilities, and associate and workforce management systems.
SUPPLIER NEWS
LAS VEGAS — The Canadian Hardware and Housewares Manufacturers Association will host a hospitality room at the upcoming National Hardware Show in Las Vegas. The show will be held May 8 to 10 at the Las Vegas Convention Centre and the CHHMA’s hospitality room will be in Room N106, upstairs on the mezzanine above the main entrance to the show. Show attendees are invited to drop in for a cup of coffee and spend some time with CHHMA President Sam Moncada.
BARRIE, Ont. — LinkGreen has announced it has reached an agreement with RenoWare to provide the lumber and building materials industry with a comprehensive quote-to-order supply chain system. LinkGreen provides wholesale order management and POS Integration for a range of industries including lumber and building materials. RenoWare makes software designed to help building centres manage design estimating and installations. Through this strategic partnership, LinkGreen will supply vendor catalogue data to RenoWare and its users. This data exchange enables building centres to access current vendor catalogue data, including product images and costs.
PEOPLE ON THE MOVE
The North American Retail Hardware Association will honour high-achieving retailers at the upcoming National Hardware Show through its “Top Gun” program. This year’s Top Guns represent the first all-female group in the program’s history, including one Canadian dealer. Amanda Fancy of Gow’s Home Hardware in Bridgewater, N.S., bought her store just seven years ago. In that time, she has managed to grow sales in a stable retail market, using proactive marketing and merchandising strategies. Amanda also garnered the Hardlines Outstanding Retailer Award for Best Hardware Store in 2017.
ECONOMIC INDICATORS
The growth of U.S. housing starts in March exceeded expectations, with residential starts increasing by 1.9% to an annualized rate of 1.32 million. Multi-family dwellings drove the increase with a 14.4% surge that more than compensated for a 3.7% slide in single-family starts. Building permits rose by 2.5% to a rate of 1.35 million. (U.S. Commerce Dept.)
After three consecutive monthly declines, U.S. retail sales edged up by 0.6% in March. Higher spending on motor vehicles and other big-ticket purchases hinted at building momentum going into the second quarter. (U.S. Commerce Dept.)
NOTED
Canadians left their hockey sticks outside in solidarity with the mourning families of Humboldt, Sask., earlier this month as they observed “Jersey Day” in memory of the fatal bus crash in eastern Saskatchewan. Home improvement retailers were among those who went to work sporting their team colours, with stores from numerous banners across the country wearing jerseys to honour the victims of the crash.
OVERHEARD…
“We’re set up to serve that rural Alberta farmer and ranch owner.”
—Glenn Bingley, COO, retail operations, AgriBusiness for UFA, on the company’s solid year-end results, following a slow start to 2017.
OUT AND ABOUT
Our Editor Sigrid Forberg and our Marketing Director Katherine Yager will be attending Canadian Tire’s Canvas Backyard Living showcase on Tuesday, April 24. Watch for the latest seasonal lines coming from this retailer in next week’s blazing edition of HARDLINES!