June 4, 2018 Volume xxiv, #22

“I have learned silence from the talkative, toleration from the intolerant, and kindness from the unkind; yet strange, I am ungrateful to these teachers.”
—Khalil Gibran (Lebanese novelist, poet and artist, 1883-1931)

IN THIS ISSUE:

• Hardware and home improvement retailers take honours at Retail Council awards

• Kohltech Windows awarded during transition to new branding

• UFA updates stores with a focus on consistency, product programs

• Small town independent focuses squarely on farm and rural customers

  PLUS: Home Depot Canada helps homeless youth, GTA dealer joins TIMBER MART, new member for Sexton Group, Blue Jays and Beauti-Tone paint, Ply Gem opens in Quebec City, Prud’homme stresses RONA growth, Canadian Tire and Home Hardware top rated, Orgill awarded for export growth, Ace Hardware’s Q1 revenues, Kent helps out community living, Wesfarmers ditches Homebase, FCL’s Doug Knowles retiring, new VP at Derby, and more!
  
  

Hardware and home improvement retailers take honours at Retail Council awards

TORONTO — Home Depot President Jeff Kinnaird headed up a stellar roster of individuals and companies from the hardware and home improvement industry at last week’s Excellence in Retailing Gala. The event capped day one of the RCC’s annual convention, STORE. Kinnaird was selected as Distinguished Canadian Retailer of the Year.

“He’s a retailer through and through, doing what most great merchants do, starting out at the bottom and working his way through different roles,” said RCC President Diane Brisebois, in her remarks about Kinnaird. She described him as having a passion that spreads to his team and to the communities served by Home Depot stores. “And all this is done with humility and gratitude.”

Robin Lee, president and CEO of Lee Valley Tools, earned a Lifetime Achievement Award for the success and rich corporate culture that company has maintained since its inception in 1978.

Other winning companies included Canadian Tire, which was nominated in a number of categories, and earned top honours for both in-store merchandising and supply chain innovation. From Lowe’s Canada, Reno-Depot was nominated for the e-commerce experience, while its sister banner RONA won for mobile experience, thanks to the launch of a new, responsive website. “Offering a seamless, consistent, and transparent experience to our customers no matter when, where, and how they interact with us is what Lowe’s Canada’s omnichannel strategy is all about,” saidTanbir Grover, vice president, e-commerce and omnichannel at Lowe’s Canada, on the award.

Rounding out a strong showing by hardlines retailers in the evening’s awards, Federated Co-operatives was nominated in two categories, including best marketing strategy, and won for philanthropic leadership.

UFA taps big box DNA to improve best practices, and sales are going up

CALGARY — One of the ways UFA has been able to get more in touch with store operations is through its field merchants. “They’re our eyes and ears in the stores,” says Glenn Bingley, They can identify everything from slow-selling merchandise in particular markets to community needs that a particular store could respond to. “We’ve been working very hard to fulfill those needs,” Bingley adds.

In fact, the use of field merchants reflects just one of the many best practices UFA has borrowed from the big box retailers. Bingley himself came over from Home Depot Canada seven years ago. There, he had served in a number of roles over 17 years with the big box retailer, ultimately as vice president of merchandising. Another big box alumnus, Mark DiGioacchino, was director of field merchandising at Home Depot Canada before moving to Lowe’s Canada. He has been at UFA for two years as director of merchandising.

“We learned a lot of strong retail fundamentals from the big box retailers,” Bingley admits. They include rigorous line reviews, better management of vendor relations to benefit both sides, and improved retail programs, with standardized assortments that vary only in size depending on the footprint of the store. The process, he says, has given UFA access to a broader range of new products and increased value for customers.

“That discipline is something Mark has been able to bring to his buying teams,” he says. “And ultimately we’re seeing improved sales.”

Bingley is confident the trend will continue. Despite the flat economy in Alberta, where most of UFA’s stores are located, the retail business was able to grow by just over 5%. And despite a slow start to 2018, something shared across the country, the year ahead looks good. “We’re very optimistic. We had a very, very strong 2017. The economy in Alberta is picking up.”

Kohltech Windows awarded during transition to new branding

DEBERT, N.S. — Kohltech Windows & Entrance Systems has been recognized for overall business performance and sustained growth as one of Canada’s Best Managed Companies. The 2018 Best Managed program award winners are amongst the best-in-class of Canadian owned and managed companies with revenues over $15 million demonstrating strategy, capability, and commitment to achieve sustainable growth.

The growth and success of Kohltech, formerly Peter Kohler in the Atlantic provinces, continues to be driven by the culture of service the company was founded on. It has made consistent efforts to improve business practices in an increasingly complex industry, whether through its award winning “Best in Class” dealer software or through training programs delivered at their dealer learning centre. Customer loyalty and word of mouth have propelled the company from being a top regional brand towards becoming a top national brand over the last few years.

“We are incredibly grateful to be receiving this designation,” says Kevin Pelley, President of Kohltech Windows & Entrance Systems. “This accomplishment recognizes the hard work and dedication of our staff to serving our customers, to producing quality products, and to relentless innovation in windows and doors.”

Until recently, the company had operated under the Peter Kohler name in the Atlantic provinces and Kohltech outside of Atlantic Canada. The long-term plan has always been to trade under the Kohltech name once brand recognition was established.

The company plans to transition the Peter Kohler brand to Kohltech by promoting both brands in its messaging over the next eight months. An advertising campaign has already begun, showcasing the brand transition using TV and digital video advertisements shown across Atlantic Canada.

Small town independent focuses squarely on farm and rural customers

CLARKSBURG, Ont. — James and Patricia Hindle of Hindle’s Clarksburg Hardware in Clarksburg, Ont., have been running their 2,000-square-foot small town hardware store for 46 years, and all without the benefit of kitchen and bath displays, doors and windows, or lumber and building materials.

“Lots of other stores carry those kinds of things, so we don’t think it makes any sense to fill the store up with products we can’t compete on,” says Hindle. “Instead, we focus on specializing in items those other stores don’t have.”

The Hindles’ store stocks all the items you would expect to find in a typical small hardware store—like basic plumbing and electrical supplies, housewares, hand tools, some paint, and seasonal items—but large sections of the store are devoted to products essential in their specific market. The town of Clarksburg is in a rural area of Central Ontario where orchards are common, and Hindle’s Hardware has carved out a niche as the go-to supplier for specialized tree pruning and horticulture tools.

“We have been importing specialized horticulture tools since the 1970s—from the U.S., France, Switzerland, and even Japan,” Hindle says. “Plus, we service and sharpen that equipment and carry the parts. We’ve sold equipment to orchards as far away as Nova Scotia and to forestry businesses in Quebec.”

Hindle’s also stocks a wide assortment of work gloves, clothing, and boots specifically for seasonal workers who come to the area to work at the local orchards. In addition, the store stocks a huge assortment of fasteners that are commonly found on agricultural vehicles and equipment, as well as a wide assortment of chains. Says Hindle: “Lots of our customers are farmers, and they know they can come here and get exactly what they need.”

(This is an excerpt of a larger feature that appears in the current edition of our sister publication, Hardlines Home Improvement Quarterly. HHIQ is mailed to 11,000 dealers, owners, and managers across Canada. Click here to get your own subscription today!)

DID YOU KNOW…?

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RETAILER NEWS

VAUGHAN, Ont. — TIMBER MART has announced the addition of LBM retailer Zion Building Supplies in Toronto's east end to its team. Zion carries a wide selection of building materials and hardware, including lumber products, tiles, and plumbing fixtures and accessories. With its staff of about 40, the store caters to both contractors and DIYers in the GTA. In a release, General Manager Annie Jiang hailed the buying power and competitive leverage of membership in the buying group.

TORONTO — The Home Depot Canada has launched a campaign to fundraise for its “Orange Door” initiative, which raises money to support safe housing options, life skills development programs, and prevention initiatives for at-risk and homeless youth across Canada. Until June 24, customers can contribute by purchasing a $2 paper orange door at their local Home Depot store. Through the fundraising campaign, The Home Depot Canada Foundation supports 120 organizations that share a commitment to preventing and ending youth homelessness across the country.

WINNIPEG — REP Windows & Doors, located in Kingston Ont., since 1992, is the latest dealer to join Sexton Group. Originally focused solely on wholesale and retail sales of doors and offers, REP has expanded its assortments and now offers a wide range of products. Recently, Richard Garrah, President of REP, moved the business into a new, larger building to continue his growth within the greater Kingston market. “I am pleased to welcome REP Windows and Doors to the Sexton Group. REP represents many of the core values of the Sexton Group—hard working, continual growth, and proud to represent the local community in which they operate their business,” says Sexton Group President Steve Buckle.

BURFORD, Ont. — As official paint of the Toronto Blue Jays, Beauti-Tone, the coatings division of Home Hardware Stores Limited, has released a collection of baseball-inspired colours. The Beauti-Tone team worked with three Blue Jays team colours—blue, navy blue, and red—along with seven more complementary colours, including the nostalgic powder blue hue of the 1977 to 1988 Blue Jays uniform.

MONTREAL — A “growth scenario”, and not synergy, supported Lowe’s acquisition of RONA, President and CEO Sylvain Prud’homme told the Canadian Club of Montreal last week on the heels of the merger’s second anniversary. Invited to speak on the topic of leadership development during periods of corporate change, Prud’homme stressed that the company continued to expand its staff and open new stores through the acquisition process. He said RONA’s 2017 comparable sales were the best in 13 years. He added that Lowe’s Canada has kept the Boucherville, Que., head office as the base of decision-making and continues to favour Quebec and Canadian suppliers.

TORONTO — The Reputation Institute has published the latest edition of “Canada RT50,” the 50 most reputable companies as ranked by Canadian consumers. For the second year in a row, Google tops the list, while the top Canadian company is Mountain Equipment Co-op at number five. Canadian Tire came in at number 14 with a score of 76.9, and Home Hardware is in the 21st spot with 75.4.

CHICAGO — Ace Hardware’s Q1 revenues came to $1.31 billion, an increase of $73.9 million or 6% from a year ago. Net income for the quarter was $11.9 million, a decline of $16.4 million from Q1 of 2017. Same-store sales in the U.S. rose 2.2%, while sales on the AceHardware.com channel shot up by 34%. Ace added 28 new U.S. stores in the quarter and closed another 28. Revenue gained from the new stores was four times greater than sales lost from cancelled stores. In Canada, Ace recently reached 100 stores.

STELLARTON, N.S. — Kent Building Supplies and the Canadian Association for Community Living in Antigonish, N.S., are teaming up to sell wooden deck chairs in support of CACL’s work with intellectually disabled adults. The chairs are made by between 12 and 16 workers at CACL’s Antigonish workshop with materials purchased from Kent, where in turn they retail for $129. The Stellarton store is one of 19 in the Atlantic provinces where the chairs will be available. Store manager Steven Benjamin told The News of New Glasgow, N.S., that past collaborations with CACL have seen the chairs sell out fast. Sales proceeds will be invested back into the association’s programming, according to Executive Director Jeff Teasdale.

MILTON KEYNES, U.K. — Australian DIY retailer Wesfarmers has aborted its botched entry into the U.K., selling its 250 Homebase stores at a loss to restructuring firm Hilco. The 24 stores which have already converted into Bunnings outlets will revert to the Homebase banner when the deal is finalized toward the end of June. Hilco, which owns HMV, is reportedly likely to close up to 60 stores. Wesfarmers had planned a £500 million ($865 million) investment to import the popular Bunnings brand, famous in Australia for its “sausage sizzles”, to the U.K., but struggled to hold its own among the intense competition in the British DIY market. The company said it expects to incur a £230 million loss on the sale.

SUPPLIER NEWS
COLLIERVILLE, Tenn. — Orgill is among the 43 U.S. companies recognized last week by Secretary of Commerce Wilbur Ross with the President’s “E” Award, the highest honour for companies that export U.S. goods and services. This year, after its first “E” Award in 2014, Orgill took the “E” Star Award for Exports, which recognizes previous “E” laureates who have reported four years of additional export growth. The awards are now in their 56th year.

MONTREAL — A “growth scenario”, and not synergy, supported Lowe’s acquisition of RONA, President and CEO Sylvain Prud’homme told the Canadian Club of Montreal last week on the heels of the merger’s second anniversary. Invited to speak on the topic of leadership development during periods of corporate change, Prud’homme stressed that the company continued to expand its staff and open new stores through the acquisition process. He said RONA’s 2017 comparable sales were the best in 13 years. He added that Lowe’s Canada has kept the Boucherville, Que., head office as the base of decision-making and continues to favour Quebec and Canadian suppliers.

PEOPLE ON THE MOVE
Doug Knowles, operations manager for the Home and Building Solutions division of Federated Co-operatives Limited, is retiring at the end of this month. His final day is June 29. (Doug.Knowles@fcl.crs)

At Derby Building Products, manufacturer of the Tando and Novik brands of exterior cladding products, Mark Schlagheck has been named vice president of retail sales. In his new role, Schlagheck will position Novik for expansion to the retail home improvement channel in the U.S. and Canada. He will divide his time between Dayton, Ohio, and Derby’s headquarters in Quebec City. With 30-plus years of experience, Schlagheck previously served as VP retail sales at The AZEK Company and the Kohler Company. He will report directly to Mitch Cox, Sr., vice president of sales. (mschlagheck@derbybp.com)

IN MEMORIAM
Blair Douglas died last week in Caledonia, N.S. Formerly the president of N.F. Douglas Home Hardware in Caledonia, he served as president of the National Retail Hardware Association from 1999 to 2000. He was also a past president of the Canadian Retail Hardware Association and had represented it on the NRHA board.

NOTED
Companies that exhibited at the recent National Hardware Show had all kinds of cool new products on display. We’ve created a special photo tour of some of the product highlights for our visit to Las Vegas last month. So click here to see for yourself!

OVERHEARD…
“Every night in neighbourhoods across the country, more than 6,000 youth don’t have a safe place to call home. That is why 100% of every customer donation goes directly to helping youth impacted by this very serious issue. Thanks to the support of our communities, we’re helping vulnerable and homeless youth realize brighter futures, one orange door at a time.”
—Jeff Kinnaird, chair of The Home Depot Canada Foundation and president, The Home Depot Canada, on the launch of the retailer’s annual Orange Door fundraiser for homeless youth in Canada.

OUT AND ABOUT
Our Editor Sigrid Forberg and our Marketing Director Katherine Yager are down in Washington, D.C., this week. They’re attending a conference for newsletter and special interest information publishers. We want to make sure we’re serving our Faithful Hardlines Subscribers in the most up-to-date and efficient ways possible!

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