April 30, 2018 Volume xxiv, #17

“I don’t want no other lover. Baby, it’s just you I’m thinking of.”—Otis Blackwell (African-American songwriter and musician, composer of many hits, including “Don’t be Cruel”, 1931-2002. Check out Elvis’s version here. Crazy, man!)

IN THIS ISSUE:

• BMR unveils La Shop, an urban concept store in downtown Montreal

• Lowe’s opens its 100th Ace store in Canada

• Canadian Tire previews fresh picks for backyard living

• Lee Valley’s founding family earns Lifetime Achievement Award

  PLUS: RONA snags five Quebec stores, Kent eyes Sydney location, Ace Canada reaches 100 stores, Lynn Edey retiring, True Value goes private, promotions at EAB, Costco results, 3M posts Q1 earnings, Stanley Black & Decker revenues, Sherwin-Williams profits, Toys “R” Us stores bought, new hire at KS Solutions, Jessica Cranmer joins WRLA, and more!
  
  

BMR unveils La Shop, an urban concept store in downtown Montreal

MONTREAL — Groupe BMR opened the pilot store for its new urban concept, La Shop, in Montreal’s Griffintown neighbourhood last week. The traditionally industrial quarter has been the site of a condo sales boom in recent years, its attractive prices and central location drawing the millennials BMR hopes to court with the new store format. A soft launch was held for media guests the day before the store opened to the public.

“We are determined to be the reference point for urban hardware,” Martin Lecomte, BMR’s VP of retail, told the crowd, noting that, as a millennial himself, he was “feverish” with excitement. “What distinguishes La Shop from traditional hardware stores is its product offerings,” he added.

Indeed, perusing the aisles of this 7,000-square-foot location, it’s clear that the store is meant to be a one-stop shop for the needs of local homes. Paints and tools are complemented by décor products like scented candles and oil diffusers. According to CEO Pascal Houle, traditional hardware categories such as plumbing and electric account for about 75% of inventory, but alongside them are such offerings as stationery and premium pet foods. (Dogs are welcome, on-leash, in the store).

Speaking to reporters, Houle underscored BMR’s pride in the new store, which he said was “100% focused on local consumer needs.” Ghislain Gervais, president of BMR’s parent company, La Coop fédérée, praised the “diverse, original, and local” concept.

Jonathan Lavoie, the store’s youthful manager, looks the spitting image of his archetypal customer, with his bow tie and neatly trimmed goatee. In his remarks, he praised the “incomparable, redoubtable people of Griffintown” and highlighted the store’s ties to Canadian suppliers.

La Shop’s retail offerings, sold at the “best price guaranteed”, are rounded out with personal touches like handyman services and free tool sharing, important for establishing the kind of relationship that younger customers seek from their retail experience. It also promises an omnichannel experience, enabling customers to order products online for next-day delivery, supported by BMR’s recent, extensive investment into its digital sales platform.

The initial pilot test will be fine-tuned through the fall, after customer feedback has been considered. The takeaways from the experience over the next few months will be key to BMR’s decision about any future expansion of La Shop.

(For a full tour of this new-concept store, click here now to see more pics! —Editor)

Lowe’s opens its 100th Ace store in Canada

BOUCHERVILLE, Que. — Lowe’s Canada, which owns the license to the Ace brand in Canada, has opened its 100th Ace store. Owen Sound Ace Country & Garden located in Owen Sound, Ont., is owned by the Huron Bay Co-operative, which is adding the Ace banner to its FS Co-op location there. This latest addition to the Ace banner’s network is also considered an important milestone for Lowe’s, which has been working aggressively to add locations since taking on Ace when it purchased RONA in 2016.

“We are thrilled to welcome our 100th Ace store and to witness such a great response from dealers toward the Ace banner throughout the country,” said Bill Morrison, divisional vice president for Ace Canada.

Ace fits into Lowe’s Canada’s lineup alongside the RONA banner by appealing to smaller and rural outlets. While they tend to be hardware stores, many of them carry building materials, as well.

To support affiliate dealers with the tools they need to succeed, Lowe’s Canada carried out several initiatives over the past two years. These included the integration of the Ace distribution and business centres into Lowe’s Canada’s existing facilities in February 2017. Lowe’s Canada also launched the Ace Canada transactional website in the fall of 2017 as part of its omnichannel strategy. This new platform provides Ace customers with a “click & collect” service for all dealer locations in the country.

“This truly is an exciting time to be joining the banner,” Morrison added. “Ace Canada is thriving and we expect to keep growing the banner as more dealers continue to join our family and seize this opportunity to be part of something bigger.”

The Owen Sound Ace Country & Garden store will hold a grand opening from June 21 to 23. Ace Canada will also host an online-only nationwide promotion on acecanada.ca .

Canadian Tire previews fresh picks for backyard living

TORONTO — Canadian Tire offered media and influencers a sneak peek last week of what’s to come this summer for the retailer’s Canvas line. The company partnered with Patchouli Design, a downtown Toronto floral design studio, to deck out the Canvas showroom in midtown Toronto. A week after Toronto was hit by an ice storm, the fresh flowers helped set a spring-like mood in the space.

Canadian Tire’s design manager Tracy Platt was on-site to offer insights into the new offerings. With several new patio sets, this year’s selection featured warmer tones, offset by clean, Scandinavian design elements. One stand-out was the Clarkson teak patio table, which, Platt took care to note, was made from reclaimed wood. Teak is a hard, durable wood, which makes the table weather-resistant, Platt notes.

Another new item in the collection is the Jensen couch. With a mid-century feel, it was featured last year as a special-order item, but has been promoted to Canvas’s core collection. With mix-and-match coffee and side tables and bold textiles, Platt says the styles echo what her team is currently seeing in Europe.

In terms of outdoor accessories, the textiles are made to hold up under the elements, with water- and UV-resistant umbrellas, pillows, and rugs. While they look like they could pass for indoor accessories, they’re designed with outside in mind. As the trend of outdoor living continues to grow, Platt predicts the duality of function and fashion will dominate the market.

Lee Valley’s founding family earns Lifetime Achievement Award

TORONTO — Robin Lee, CEO of specialty hardware retailer Lee Valley Tools, along with his parents, founders Leonard and Lorraine Lee, have been awarded the Excellence in Retailing Awards 2018 Lifetime Achievement Award.

The award is presented by the Retail Council of Canada. It recognizes a family or an individual in retail who has demonstrated outstanding business success and community service throughout their career, and who has left an indelible mark on the industry through innovation and commitment to customers and employees.

Robin Lee, son of Leonard Lee, was cited for preserving “his family’s focus on unique products, a ‘customer-first’ philosophy and a commitment to integrity, fairness, and respect for all.” In the 15 years since Robin Lee took over as president and CEO, Lee Valley has expanded from selling high-quality woodworking and gardening tools to now include products for outdoor, home, kitchen, leatherworking, cabinet hardware, and power tools.

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 new product you want dealers to learn about? Let us know. Email Michael McLarney with your tip or hot new products!

RETAILER NEWS

BOUCHERVILLE, Que. — The stores owned by Groupe Godin have returned to the RONA family. Founded in 1979, Groupe Godin opened its first store in Namur, Que., in the Outaouais region. Today, the company—which is managed by siblings Joël, Jérôme, Marc, and Nathalie—operates five home improvement centres. In addition to the Namur flagship, the group has two more stores in Quebec (Lachute and Grenville) and two in Ontario (Dunvegan and L’Orignal).

SYDNEY, N.S. — Kent Building Supplies is reportedly eyeing expansion with a new location in Sydney, N.S. The home improvement chain, owned by J.D. Irving Ltd., already has 49 stores throughout Atlantic Canada, including nine big boxes. According to the Cape Breton Post, Kent has applied for a zoning amendment from the local council to allow the retailer to purchase a 100-acre site to build a store. More than half the land is on a business corridor, but the rest is zoned residential, according to the Post.

CHICAGO — Private equity firm Acon Investments has concluded its purchase of a 70% stake in True Value Corp. More than 80% of True Value shareholders approved the sale. With the deal, True Value departs from the co-op model it has been identified with for 70 years. CEO John Hartmann has expressed his “great respect” for the model but says it is now dated and inflexible. Current co-op members will share in the value generated by the company through the new True Value Co., which is being set up to hold the remaining 30% of True Value Corp’s assets.

SEATTLE — Amazon CEO Jeff Bezos recently revealed information that has long been kept secret: Amazon Prime has more than 100 million paid members around the world. The announcement was included in Bezos’ annual letter to shareholders, which provides a look at the e-commerce giant and its plans for the future. The Amazon Prime subscription service costs $79 annually in Canada and includes a variety of benefits, such as free two-day shipping, music streaming, game content, and on-demand video.

ISSAQUAH, Wash. — Costco Wholesale Corp. had net sales of $12.92 billion in March, up 10.9% from the same period a year ago. For the 31-week year-to-date period, the company reported net sales of $81.43 billion, an increase of 11.8%.

SUPPLIER NEWS
ST. PAUL, Minn. — 3M Co. posted Q1 earnings of $2.50 per share. Revenues were $8.3 billion, up 7.7% year over the previous year’s $8.1 billion. In the Canada and Latin America region, total sales rose 4.3%.

NEW BRITAIN, Conn. — Stanley Black & Decker reported Q1 revenues of $3.2 billion, a 12% increase from a year ago. Earnings for the quarter amounted to $170.6 million, or $1.11 per share; excluding special items, adjusted earnings were $213.7 million ($1.39 per share). During the quarter, the company incurred restructuring costs of $22.9 million.

CLEVELAND — Sherwin-Williams reported that Q1 profits rose to $250.1 million, or $2.62 per share, from $239.2 million ($2.53 per share) a year ago. Sales surged by 44% to $3.97 billion, largely on the strength of the paint maker’s acquisition of Valspar.

VAUGHAN, Ont. — Toys “R” Us has wound down the auction for its Canadian segment, with Fairfax Financial Holdings making the lone qualified bid. Fairfax made its $300 million stalking-horse offer on the heels of several new purchases including infrastructure firm Carillon Canada and an expanded stake in Torstar.

PEOPLE ON THE MOVE
Lynn Edey is retiring effective May 4. As supply director for Alexandria Moulding, he has been the main contact for independent dealers for the moulding company for the past 40 years. He spent 10 years before that working as a drywall installer before getting recruited by Alexandria in 1978. “I still love it, but I feel it’s time for me to move on,” he says.

EAB Tool Company, the seller of reusable power tool accessories, has announced the promotion of two territory sales representatives to sales managers. Marc Handy is now the Eastern regional sales manager, overseeing sales related activities in Eastern Canada, consisting of Ontario and the Atlantic provinces. Handy has been with EAB for five-plus years handling Southern Ontario. Matt Tudor is now Western regional sales manager, responsible for British Columbia, Alberta, Saskatchewan, and Manitoba. Tudor joined EAB last year bringing with him many years of experience managing the Southern Alberta territory for one of EAB’s distributors.

KS Solutions Sales & Service has appointed Harriet Rennie as sales support administrator, assisting the agency’s sales team. Rennie joins the company after a brief retirement from Home Hardware Stores, where she gained 25 years of experience in areas such as plumbing, electrical, and heating.

Jessica Cranmer will be joining the Western Retail Lumber Association in May as trade show and events manager. In this role, she will be responsible for the WRLA’s Buying Show in Calgary, as well as other member events. Cranmer has spent 15 years in event management and community relations at non-profits in Manitoba. Her most recent post was with the Victoria General Hospital Foundation.

West Fraser Timber CEO Ted Seraphim will retire at the end of the second quarter in 2019. At the same time, EVP and COO Ray Ferris has been named president and COO, and will serve in that role until he takes over as CEO on Seraphim’s retirement. Ferris joined West Fraser in 1997. He had a series of executive roles before assuming his most recent position in 2016.

ECONOMIC INDICATORS
Sales in the U.S. of new single-family houses in March were at a seasonally adjusted annual rate of 694,000, up 4.0% from February and up 8.8% from March 2017. The median sales price of new houses sold in March was $337,200. The average sale price was $369,900. (U.S. Commerce Dept.)

OVERHEARD…
“This is the first day I’ve been home this month.”
—Lynn Edey, speaking with HARDLINES on April 25 to share details of his career. He’s retiring from Alexandria Moulding after 40 years with the company, most of them on the road. His last official day will be May 4.

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