September 17, 2018 Volume xxiv, #34
"To know oneself, one should assert oneself.”
―Albert Camus (French-Algerian philosopher, author, and journalist, 1913-1960)
IN THIS ISSUE:
- Home Hardware’s new CEO expected to bring outside expertise
- Western regional wholesaler continues expanding its ranks and operation
- Outdoor trends on display at German lawn and garden show
- Legalized cannabis: a potential new niche for hardware dealers?
- PLUS: Northlander joins Sexton Group, Knape & Vogt Canada signs McDonald Sales, CertainTeed’s drywall complaint turned down, Hardlines launches dealer newsletter, HBC reports loss, Henkel strengthens sustainable packaging targets, changes to Acceo Profitmaster team, housing starts and more!
Home Hardware’s new CEO expected to bring outside expertise
ST. JACOBS, Ont. — Would they hire from within or from without? The mystery was solved last week when Home Hardware Stores Limited announced the appointment of the former head of Toys “R” Us, Kevin Macnab, as president and CEO. His role becomes effective October 10.
Macnab has more than 30 years of retail industry experience, including heading up Toys “R” Us for Canada, then as president of the company’s international operations. His CV also includes stints at Marks & Spencer and the D’Allaird’s clothing store chain.
That outside experience, both nationally and internationally, is apparently just what Home was looking for.
“Kevin brings a combination of global retail experience and a deep understanding of the Canadian market,” said Christine Hand, chairman of the Home Hardware board. “He understands the importance of adapting to the fast-changing retail landscape and has a track record of increasing market share through omni-channel strategies and new store growth. Most importantly, he understands the unique value and potential of the Home Hardware brand.”
Macnab will replace Terry Davis, who has served as CEO since 2014, and as both president and CEO since May. Davis announced back in July his intention to retire before the end of this year. He has been with the company for 48 years. He stated in a previous interview that he would stay long enough to manage a smooth transition of duties. But now, Hardlines has learned, his last day will be October 10, when Macnab steps in officially.
“I am honoured to have been selected to lead such an iconic Canadian retailer with a storied past and strong, dependable brand,” Macnab said in a release. “I look forward to working with the dealer-owners and the entire team at Home Hardware to develop and implement strategies focused on engaging with our customers in new and innovative ways, both in-store and online.”
Western regional wholesaler continues expanding its ranks and operation
NANAIMO, B.C. — Coast Distributors is adding to its team and its distribution network as it expands its reach in the West. The Nanaimo, B.C.-based hardware wholesaler has opened a second distribution centre in Surrey, B.C. Both facilities in that community are designed to better serve Coast’s direct import program and its customers in the Lower Mainland. Coast also has two main DCs, in Nanaimo and Kelowna, which serve all of British Columbia and Northern Alberta.
Coast Distributors was established in 1986 by Alex Guy―in his garage. In 1998, Brad McCluskie joined as a sales rep for Southern Vancouver Island and eventually moved into the office as Guy’s second in command. In 2006, McCluskie bought into the company. In 2010, a group of senior employees and managers purchased the final shares when the founder exited.
The team continues to grow at Coast, as well. Bonnie Kellogg has recently joined as purchasing manager. She will work out of the company’s Surrey office, connecting with Coast’s re-buyers in the Nanaimo and Kelowna branches. Kellogg takes over from Anthony Snell, who has moved to the Nanaimo operation in the role of general manager.
These expansion efforts will, in part, support the push that Coast is making on its own private-label lines. Under the “TerraTuff” name, the company offers more than two dozen lines, including hand tools, paint brushes and paint accessories. Coast’s full range of products also includes electrical and plumbing, garden supplies, automotive accessories and housewares.
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Outdoor trends on display at German lawn and garden show
COLOGNE, Germany — Visitors from around the world gathered at the Koelnmesse exhibition centre in Cologne, Germany, for spoga+gafa, the annual international lawn and garden trade fair. The event, held September 2 to 4, drew 40,000 visitors from 114 countries and some 2,000 exhibitors spread across nearly 2.5 million square feet of floor space.
“Our share of international visitors rose again by 4%, to 64% overall,” says Katharina Hamma, COO of Koelnmesse GmbH, which owns the show. “This growth from abroad underlines the strong international significance of spoga+gafa. Both those in specialized trades and large-scale retailers were strongly represented.”
Visitors could see new furniture designs that responded to consumers’ desire for more sustainable products, while maintaining durability and creative designs. One vendor experimented with polypropylene webbing stretched across a frame to create an ergonomic lounge chair. Another vendor developed an umbrella that easily fit above a narrow balcony, reflecting a move by more designers to offer space-saving solutions to urban dwellers.
Another common theme throughout the show presented sustainable alternatives to common products. Several vendors showed planters made of recyclable materials. One offered fireplace logs made from recycled coffee grounds. For gardeners concerned about the negative impact of peat moss farming on the environment, another vendor offered an eco-friendly alternative.
Urban gardening is a trend that continues to gain steam. Visitors at spoga+gafa saw many options for products that helped consumers grow fruits and vegetables in a small space, whether it was self-watering planters that hung easily on a balcony or a vertical container for growing strawberries. Multiple grill vendors offered portable cooking units designed for balconies or tailgate parties.
Another popular area at the show was Outdoor Kitchen World. Consumers still have an appetite for spending big on outdoor entertainment areas, and that includes a growing trend to create a gourmet experience when eating outdoors. Besides traditional barbecuing, consumers want other cooking options such as smokers and woks.
Consumers also desire to marry form with function when purchasing a grill or fire pit for their yard. While it may be functional, they also want something that makes an artistic statement in their living spaces.
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Legalized cannabis: a potential new niche for hardware dealers?
SPECIAL REPORT — The imminent legalization of cannabis, and the uncertainty attached to just how it will be sold, has put a whole new sector of retailing into confusion. But the opportunities for selling accessories for this industry are more clear cut—and could provide new opportunities for dealers in select markets after legalization takes effect on October 17.
A recent visit to a cannabis trade show and conference in Toronto revealed a lot of optimism about the future of this nascent industry. And while the big focus was on start-ups and venture-capital plays, a number of exhibitors on the show floor were interested in finding new channels for the hardware and equipment that will drive the business.
Dealers in downtown, vacation or university markets may find they can stock up on paraphernalia, including the pipes, rolling papers and various vaping devices for preparing and using cannabis.
But another part of the upcoming legislation involves the ability for individuals to grow up to four plants of their own each year. But the challenge is in developing a healthy yield. And that creates another opportunity for retailers. Makers of soils, nutrients, lights, watering systems, hydroponics and heating units were at the cannabis show trying to find merchants to carry their products.
In fact, some of these items are already finding their way into conventional home improvement channels. At the latest National Hardware Show, held in May, at least one vendor was offering pots specifically designed for growing marijuana plants, while sales of hydroponic planting equipment are turning up at traditional home improvement retailers.
A lot of money will be spent—and made—in the cannabis sector in the next couple of years as legislation is finalized and this market settles out. As popular acceptance of cannabis, both recreational and medicinal, grows, traditional dealers may be able to take advantage of a completely new niche.
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DID YOU KNOW...?
... that there’s real excitement buzzing through the halls of the Hardlines World Headquarters these days? The reason? We’ve just launched a brand-new publication. Hardlines Dealer News is filled with information and tips to help dealers run their stores better. The very first issue of went out last week by email to thousands of dealers and managers across the country. Want to get your very own complimentary subscription to HDN? Click here right now for your free signup
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RETAILER NEWS
WINNIPEG — Northlander Industries of Exeter, Ont., has joined Sexton Group, President Steve Buckle announced last week. Founded in 1964, Northlander produces manufactured structures. The family-owned business has some 180 employees. “As a manufactured home builder it was important for us to partner with a team that would recognize our unique needs and bring value to our organization,” said General Manager Bryan Baker.
TORONTO — Hudson’s Bay Co. reported a Q2 net loss of $147 million, widening from a $100 million loss from the same time last year. Lower sales at the Lord & Taylor and Saks OFF 5th banners took their toll on the quarter’s earnings. CEO Helena Foulkes promised shareholders that turning the two banners around would be a priority
SUPPLIER NEWS
MISSISSAUGA, Ont. — At Knape & Vogt Canada, Gilles Paré, director of retail sales, has announced that McDonald Sales has been appointed KV’s exclusive sales agency for Ontario. Krista Hamilton, president, and her sales team will be responsible for all KV retail brand products in that province. Knape & Vogt is a specialized manufacturer and distributor of shelving hardware, closet organizer systems, drawer slides and kitchen and garage storage products.
OTTAWA — The Canadian International Trade Tribunal has rejected a call from CertainTeed Gypsum to extend Western Canadian drywall tariffs to cover 54-inch boards. The company doesn’t manufacture boards in that size, but claimed that dumping of U.S.-made boards was preventing it from doing so. The tribunal concluded, however, that “the evidence does not disclose a reasonable indication that the dumping of the subject goods has caused injury or retardation or is threatening to cause injury to the domestic industry.”
LANCASTER, Pa. — The sale of gasket manufacturer Interface Performance Materials to Manchester, Conn.-based Lydall Inc. has been finalized, the companies have announced. Under the $265 million deal, Interface’s 100 employees will retain their jobs. The two companies use similar production systems to make different products: Lydall specializes in filtration products. Interface started off as the industrial specialties division of Armstrong World Industries, which spun off Interface in 1999.
DUSSELDORF — Henkel has strengthened its sustainable packaging targets, committing to the use of 100% recyclable, reusable or compostable materials by 2020. Within that time, the firm is aiming for 35% of the plastic in its consumer goods to be recycled.
ECONOMIC INDICATORS
The national trend in housing starts continued to decline in August from the historical peak that was recorded in March 2018. This moderation reflects recent declines in multi-unit starts from historically elevated levels earlier in the year. The trend in housing starts was 214,598 units in August, compared to 219,656 units in July. This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates of housing starts.—CMHC
OVERHEARD
“This is an exciting time for Home Hardware and I am grateful to the board for their confidence in me as we plot a course for an even brighter future for the business.”
―Kevin Macnab, the former Toys “R” Us executive who will join Home Hardware Stores on October 10 as president and CEO.
OUT AND ABOUT
If you are at the Home Hardware Fall Dealer Market today, so are we! Look for VP of Business Development David Chestnut on the show floor. Got a news tip or a new product to tell us about? Email us right away!
Dy-Mon Sales has added to its sales team, rounding out the agency’s representation in Western Canada, reporting to Dy-Mon’s partners, Harvey Dyck and Larry T. Bryant. Alan Graham has joined and is based in Vancouver. He has spent the last 28 years in the retail hardware and building supply market, first as a sales representative, moving on to regional responsibilities and as a retail sales manager for RCR in Canada. He was most recently a sales manager at Tree Island Steel. (alang.dy-mon@outlook.com).
Also at Dy-Mon Sales, Stephen A. van Kampen joins and is based in Calgary. A 15-year veteran of the industry, he started out as a buyer, then moved into regional sales responsibilities, and was most recently a national sales director for Lanart Rug Inc. (stephenv.dy-mon@outlook.com)
Stéphane Gaumond has resigned as general manager for Canada at Continental Building Products. Gaumond has been with the company, which was formerly Lafarge North America’s gypsum division, for 11 years. Previously he was sales director at Metrie.
Yoga wear maker Lululemon has named former Sears Canada CEO Calvin McDonald as its CEO. McDonald had been president and CEO of cosmetics giant Sephora for the past five years.