May 7, 2018 Volume xxiv, #18

“Love all, trust a few, do wrong to none.”
—William Shakespeare (British playwright, actor, and poet, 1564-1616)

IN THIS ISSUE:

• What’s in a name? Target Building Materials forges its own direction

• B.C. dealers’ association gears up for 80th anniversary at Harrison Hot Springs

• High-tech barbecues, colourful accessories coming to Canadian Tire this spring

• eRetailer Summit sets agenda, and sights, on bolstering online selling

  PLUS: One lucky dealer will win $100,000 at NHS, Canac’s latest, Nicholson and Cates partners with Jeld-Wen, Ace Hardware sets up in supermarkets, Loblaw profits up on falling sales, Fairfax gets approval for Toys “R” Us stores, softwood lumber, Weyerhaeuser reports Q1, Armstrong World Industries, Robert Perreault new VP at Colonial Elegance, Martin Ross pursues management consulting, U.S. construction spending, and more!
  
  

What’s in a name? Target Building Materials forges its own direction

WINDSOR, Ont. — Best name for a retailer ever? Well, maybe not. But despite continual confusion with the like-named general merchandise retailer in the U.S., Target Building Materials in Canada has not only endured, it’s established itself as an important supplier for trades and commercial projects around the city of Windsor, Ont., where it has been doing business since 1967. That, despite pressure at one time from Target in the U.S. to give up its storied name.

Owner Greg Drouillard explains that the business was started by his father. Greg joined a few years after—reluctantly at first—in 1974. But over time, he gradually took over and along the way was able to drive growth, stay competitive, and carve a strong commercial niche. He has also done it with a sense of humour, such as when he had a comical photo mural put on the door of a delivery truck.

And now, as the housing market picks up in Windsor, Target is benefitting from that boom and sales of insulation and construction specialty products is a focus for the store. But business has also expanded to important commercial contracts. He’s hopeful that he can get some business from an intended hospital project that is just down the road from the store. In addition, two international bridge crossings are being planned (Windsor sits across the St. Clair River from Detroit).

His latest project? To beef up the back end of the store. He has 30,000 square feet in the warehouse and 2,500 of that are being converted to a showroom. The area will be filled with new products, something, Drouillard says, his store is “thirsty” for.

“When I get to a trade show, I run right to the new product section,” he says. “I don’t want to be a me-too.” The expanded showroom will put more of those new products in front of the contractor customers. “Contractors want to touch and feel. It’s show and tell. They are as eager for that experience as consumers. We have to be a resource for what’s new and relevant for them.”

Another important segment is architects and specifiers who will spec the specialty products that Target carries. “They’ve become almost as important to us as the contractors.”

B.C. dealers’ association gears up for 80th anniversary at Harrison Hot Springs

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

Organizers say the purpose of the event is to bring the province’s building supply industry together in an environment that enables association members and supporters to network, relax, and get inspired. The event will also have a table-top trade show component featuring new products. “We did a trade show in the past, but we’ve tried a fresh approach this time,” says Scott Emo of PowerHouse Building Solutions in Surrey, B.C. Emo is on the BSIA board and heads up the anniversary event committee.

Attendees will be given the red carpet treatment, literally, as they enter the gala. Table-top displays will feature products and services by sponsoring companies along the way as they enter the meet-and-greet area. The dinner that evening will include the BSIA’s Orion Award winners, and a keynote—TED Talk style—by B.C. business leader, author, and speaker Peter Legge. “We’re trying to keep it as upbeat as we could and be different,” Emo points out.

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

The small size of the host village of Harrison Hot Springs will ensure that delegates can interact both on and offsite. “It’s really just a chance to bring everyone together and make it entertaining,” says Emo.

(For more information about the BSIA’s 80th Anniversary gala, please click here.)

High-tech barbecues, colourful accessories coming to Canadian Tire this spring

TORONTO — Canadian Tire offered the media a chance to view its new Canvas backyard living line for summer 2018 late last month. The company hosted the event in a showroom in midtown Toronto and partnered with the Toronto Flower Market to help decorate the space.

On display were vignettes of the line’s new patio furniture and accessories. In keeping with the previous year’s focus on outdoor living, this spring’s update continued to put an emphasis on fashionable-but-functional products.

Tracy Platt, Canadian Tire’s design manager, was on hand to walk visitors through the line’s latest offerings. To complement the outdoor seating for this year, Platt’s team designed a lower-to-the-ground dining table, which is meant to meet the height of cozy outdoor chairs and couches.

“Being much more comfortable when you’re dining outdoors is really driving the trends we’re seeing,” says Platt.

Also on hand was David Jackman, the category manager for barbecues at Canadian Tire. The Grill Turismo, introduced by Canadian Tire last year, was updated here with a stainless-steel version. Both feature interchangeable bezels, and are equipped with a convertible valve system, making it possible for consumers to convert from propane to natural gas.

For barbecue accessories, the company is again promoting wood-bristle brushes. The bristles have the same rigidity as stainless steel, but will simply burn up if they become detached, rather than posing the threat of accidental ingestion or injury from wire-bristle brushes. New this year was a paddle-shaped wood barbecue scraper. With use, the wood moulds to the grate of the barbecue to become a custom cleaning tool.

Platt adds everything on display at the showroom was designed to help Canadians make the most of the too-short summer season in style. “People really want to be comfortable in their outside spaces.”

eRetailer Summit sets agenda, and sights, on bolstering online selling

CHICAGO — The Home Improvement eRetailer Summit has set its agenda and its roster of speakers and panelists representing a broad range of experts. They will include progressive retailers thriving in the e-trenches, retail influencers in the media world, and top researchers.

The Summit, which is being held November 7 to 9 at the Hotel Monaco in downtown Chicago, will provide in-depth information, analysis, and advice on how retailers and suppliers can leverage the power of the internet to reach more customers. What makes this event different, too, is that it not only presents a wide view of the e-commerce landscape, but also homes in on important trends—all with a focus on the home improvement industry.

The agenda was shaped by the Summit’s six-person Advisory Council, whose members come from such leading e-commerce sellers as SustainableSupply.com, SupplyHog.com, Organizeit.com, HSN.net, Sears.com and Kmart.com, and Table + Dine. Brian Fricano, CEO of SustainableSupply.com, is also a confirmed speaker.

The Summit’s keynote speaker is Ryan DeChance of The Grommet (recently purchased by Ace Hardware), which identifies and gives exposure on its web platform to innovative products across 16 consumer categories.

Retailers, manufacturers, distributors, and industry professionals who are interested in learning how to increase their home-improvement online presence should attend. For more information and to request an invitation to the Summit, please contact Sonya Ruff Jarvis, the event’s founder.

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? Email Michael McLarney with your tip or hot new products! Need sales or promotional support? Connect with David Chestnut.

RETAILER NEWS

ST. JACOBS, Ont. — Terry Davis, currently CEO of Home Hardware Stores Limited, has been appointed president and chief executive officer. Davis succeeds retiring President Paul Straus, who will remain a consultant to the company. In his expanded role as both president and CEO, Davis will continue to report to Home’s board of directors. He is accountable for the control of the business and the general conduct and affairs of Home Hardware Stores and its wholly-owned subsidiaries. He also remains responsible for the financial control and long-term health of the company. Davis joined Home Hardware more than four decades ago in a junior warehouse position at the distribution centre in St. Jacobs, Ont. In 2010, he was appointed executive vice-president and COO, and became CEO in 2014.

QUEBEC CITY — Canac last week launched its 27th store, in Thetford Mines, Que., in the presence of local government representatives and other guests. The 39,000-square-foot building, with its 30,000-square-foot lumber yard, represents a $6 million investment and will be the site of 90 local jobs. The new store realizes a longtime goal for Canac parent Groupe Laberge. “It’s been a long time that we’ve flirted with Thetford Mines,” said spokesperson Mélissa Laberge, pointing to the “dynamic region [and] growing population.”

NORWALK, Conn. — The National Hardware Show will present $100,000 to one deserving retailer during the show next week in Las Vegas. The Reimagine Retail program helps independent retailers put ambitious business improvement plans into action to boost their sales, engage customers, and enrich their local economy. Independent retailers were asked to describe how they would use technology to improve their businesses. Weeks Home Hardware in Waterdown, Ont., is the Canadian finalist this year. According to that store’s entry, the team from Weeks wants to use technology to track customers, install self-serve kiosks, and build an e-commerce platform. On May 9, Rich Russo, vice president of the National Hardware Show, will announce the winner.

BRAMPTON, Ont. — First-quarter results for Loblaw Companies Limited reflected wage increases, health care reforms, and the sale of its gas stations one year ago. Revenue dropped 0.4% for the quarter. However, retail sales, excluding the disposition of its gas bar operations, were up 2.9%. Net earnings of $377 million were up 62%. The company says it’s actively ramping up its efforts to build e-commerce sales.

BUTLER, Ill. — Ace Hardware is working with four Giant Eagle supermarkets in Pennsylvania to open hardware stores within the grocery stores. Grocery and hardware combination stores have been successful for Ace retailers in other markets. For example, E&H Hardware in Ohio has operated joint grocery and hardware store locations for years. Giant Eagle is a supermarket chain with 400 locations in Pennsylvania, Ohio, West Virginia, and Maryland. The first of the Ace openings will take place this summer.

VAUGHAN, Ont. — Fairfax Financial Holdings has been given approval by both U.S. and Canadian courts for its bid to purchase the Canadian business of Toys “R” Us. Fairfax had confirmed last week that it is also scouting U.S. stores and beyond as the toy retailer, which has filed for bankruptcy protection, moves to cease operations. While subject to further court and regulatory approvals, the purchase is expected to close during the current quarter.

SUPPLIER NEWS
OTTAWA — A year after the U.S. slapped protective tariffs on Canadian softwood lumber, its own consumers are being hit the hardest, while Canadian producers have emerged relatively unscathed. The last round of the softwood dispute saw widespread losses of jobs and mill closures in Canada, but fears of that happening again haven’t been realized this time around. Instead, American consumers are picking up the tab for the cost of the duties. Very little of the funding earmarked by the Economic Development Bank of Canada for aid to the industry has been sought out, a spokesperson for the bank told the Canadian Press.

BURLINGTON, Ont. — Building materials wholesaler Nicholson and Cates Limited has forged a new distribution partnership. It will distribute Jeld-Wen’s Extira exterior panels in Ontario. Thanks to a patented manufacturing process, the panels are designed to be rot and termite resistant, and twice as strong as MDF, making them suitable for interior and exterior projects in high-moisture environments. Nicholson and Cates will inventory a wide variety of common widths and sizes, with additional sizes available by special order. With this partnership, the company says it can now offer a full line of architectural-grade exterior trim and panel products.

SEATTLE — Weyerhaeuser reported Q1 net earnings of $269 million, or $0.35 per diluted share, on net sales of $1.9 billion. The results are a marked increase from earnings of $157 million ($0.21 per diluted share) on net sales of $1.7 billion for the same period last year. In the Western region, domestic and export log sales improved compared with the fourth quarter, and forestry costs declined seasonally. In the South, seasonally lower fee harvest volumes were offset by slightly higher average sales, lower unit logging costs, and reduced forestry expenses.

LANCASTER, Pa. — Armstrong World Industries has reported Q1 profits of $27.8 million, or $0.51 per share. The wall and ceiling maker’s total revenue came to $227.3 million, down from $231.4 million.

PEOPLE ON THE MOVE
Robert Perreault has been appointed vice president of sales and marketing at Colonial Elegance Inc. He will report directly to President and CEO Pierot Drouin. Perrault will be responsible for all sales, marketing, and innovation operations at Colonial Elegance. With 30 years of experience at both national and international levels, he has held sales leadership positions at Cobra Anchor, Belanger UPT, and, most recently, Artika for Living. (514-640-1212; rperreault@colonialelegance.com)

Industry veteran Martin Ross (previously of Tree Island, Taymor, and CanWel) is now pursuing a career as a consultant with the management consulting group Claritee. In this role, he and his associates assist owners of medium-sized businesses, not only with their marketing efforts, but by working with senior managers to help      them meet their long-term goals. Ross will gladly engage any company looking for improvement through a call and discuss what he and his team can do to assist them in achieving success. (778-862-3079; mrmartinross@gmail.com)

ECONOMIC INDICATORS
Total construction spending in the U.S. in March was $1,284.7 billion seasonally adjusted, down 1.7% from February’s estimate of $1,306.4 billion and up 3.6% from March 2017’s $1,239.6 billion. During the first three months of the year, construction spending amounted to $279.0 billion, up 5.5% from $264.5 billion for the same period in 2017. (U.S. Commerce Dept.)

OVERHEARD…
“We’re the other Target, just opposite the airport. We’re here if you ever need building materials.”
—Greg Drouillard, owner of Target Building Supplies in Windsor, Ont. During the brief presence in Canada by a like-named U.S. mass merchant, Drouillard and his team fielded a continual barrage of calls from customers asking about bedding and clothes and groceries. Drouillard would always conclude with this gentle promotion for his own business.

OUT AND ABOUT
David Chestnut and Michael McLarney from Team Hardlines are heading to Las Vegas today to attend the National Hardware Show. Got a sales lead? Call or text David at 416-725-7992. Presenting new products at the show? Reach Michael at 647-209-5663. Here at home, our Editor Sigrid Forberg is attending the Canadian Tire annual general meeting on Thursday.

CLASSIFIED ADS