September 24, 2018 Volume xxiv, #35
"Those who are at war with others are not at peace with themselves.”
―William Hazlitt (English writer, literary critic, philosopher and painter, 1778-1830)
IN THIS ISSUE:
- Behind the scenes: why Rick McNabb really left Home Hardware
- New publication from Hardlines targets dealers to help them drive profits
- Changes at Home Hardware’s fall market reflect broader corporate shift
- Lowe’s Canada show launches Craftsman, new awards for RONA and Ace dealers
- PLUS: BMR to renovate Potvin & Bouchard store, Lowe’s Canada honours RONA and Ace dealers, Home Hardware dealer bakes, Dollarama reports sales, LinkGreen and RenoWare, Festool launches campaign, Husqvarna consolidates, Canadian house sales, U.S. housing starts and more!
Behind the scenes: why Rick McNabb really left Home Hardware
ST. JACOBS, Ont. ― “Absolutely, it was his choice.” When asked why Rick McNabb left the organization, Rob Wallace, interim senior director of marketing for Home Hardware Stores Ltd., states emphatically that the former VP marketing and sales left of his volition.
Speculation has abounded over why he left the company so suddenly. McNabb, brought in two-and-a-half years ago, was the architect of sometimes controversial changes at the dealer-owned co-op, including updated branding with the tag line, “Here’s how”, and a new advertising campaign. He was considered by many to be a possible candidate for the role of CEO, and then presumed to have been either fired or pushed out by virtue of being passed over for the top job.
Kevin Macnab (no relation) was named recently as president and CEO, as incumbent Terry Davis prepares for retirement.
Wallace, speaking during the recent Home Hardware Fall Market, says the opposite was actually the case. “He never threw his hat in the ring. He never put forward that position.” Instead, Wallace suggests that McNabb’s role was always considered a fixer role, one which would not necessarily align with longevity at the company or McNabb's personal ambitions.
Wallace further vouches for the efficacy of Home Hardware’s current ad strategy—considered one of McNabb’s projects. While some vendors have indicated to Hardlines that their sales are down with the company this year and want to blame the advertising, Wallace says, “On the contrary, our research shows that the ‘Here’s how’ strategy is testing really well.” It’s resonating with the campaign’s target audience, young homeowners, he says, as Home Hardware works to develop a new generation of customers for its stores.
“Overall, our retail sales are up greater than plan.”
In the meantime, the company has reorganized to fill McNabb’s duties. “Dunc Wilson, who currently heads up dealer development, is now senior director of sales on an interim basis,” Wallace explains. “We’ll continue that arrangement until Kevin [Macnab] gets settled and is prepared to make some decisions.”
Wallace, who is already director of marketing, was given the senior marketing director role on an interim basis.
New publication from Hardlines targets dealer issues to help them drive profits
WORLD HQ, Toronto — Hardlines has launched a brand new publication that is targeted squarely at store owners and managers. Hardlines Dealer News is an email newsletter with content designed especially for dealers and owners who are trying to run their businesses at peak effectiveness.
The first issue was emailed out last week, featuring news, tips and trends to help retailers operate more successfully. The content of HDN is focused on store management, competitive trends and operational efficiencies. It’s sent out monthly to stores and retail head offices across the country.
The first issue of Hardlines Dealer News has stories on everything from managing your commercial sales to getting the most out of your endcaps. Future issues of Hardlines Dealer News will continue to carry powerful content for retail owners and managers, including how to maximize online relationships with customers, why buying groups continue to gain ground in this market, ways that big boxes are going after the independents’ key customers and how to hire in a tight job market.
HDN tells the stories of successful dealers of all sizes from every part of Canada, such as the contractor yard in Vancouver that has an engineer consultant on staff, or the hardware store owner in cottage country who shares her insights on how to become more involved in one’s own community.
Hardlines Dealer News is produced monthly by the editors of Hardlines. Dealers who wish to get their own subscription can sign up right here at no charge.
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Changes at Home Hardware’s fall market reflect wider corporate shift
ST. JACOBS, Ont. ― The aisles were busy with dealers, their staff and families from across the country looking for new products and deals at the latest Home Hardware Dealer Market, which was held last week in St. Jacob’s, Ont.
But what was most noticeable about this familiar event, which has been running in Home’s own warehouse since 1979, is how much was different. The layout, which has had a similar format for years, had been altered to emphasize the range of services Home offers to its dealers, while emerging categories were given more prominence than ever.
Dealers entering the show found a showcase of outdoor living products to their right in what appears to be a larger space each show. To the left of the centre aisle, heavy appliances have a place of prominence, a statement about Home’s intention to capture more of this growing market.
Changes on the show floor reflect larger changes taking place currently within the organization itself. In fact, conversations with just about anyone wearing a red jacket at this show would elicit a thoughtful “change is good” response, as everyone from dealers to senior management company-wide are coping with the shift.
Those changes have been reflected in Home Hardware’s ad campaigns, service offerings and, not least, the lineup of senior management. A new CEO, Kevin Macnab takes the helm officially on October 10. He made an appearance on day two of the show to walk through it and get familiarized with Home’s culture.
Other parts of the business getting a push at this show included the Aeroplan loyalty program and Home’s marketing efforts to pro and contractor customers.
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Lowe’s Canada show launches Craftsman, new awards for RONA and Ace dealers
MONTREAL — Lowe's Canada last week hosted this year’s RONA and Ace Canada buying show recently at Montreal’s Palais des congrès. Beginning on September 12, the show brought together record numbers of participants, including some 300 dealers and 330 suppliers. The show aimed to underscore Lowe’s Canada’s commitment to its affiliate RONA dealers and independent Ace stores.
Highlights included the launch of the Craftsman brand, “something that's going to be major” for dealers in the words of Annick Day, national director, RONA dealer support, who had been at work on the show for the past six months. The tool line is exclusive to Lowe’s Canada’s banners, which are honouring the warranties on Craftsman products bought from Sears before the sale last year of the line to Stanley Black & Decker.
On the Ace end, Divisional Vice President Bill Morrison hailed Lowe’s Canada’s commitment to the banner: “We’ve had an incredible year, and it’s only with Lowe’s Canada’s support that we could do that.”
Front and centre at the show was a large seasonal section full of lawn and garden supplies and furniture for the spring selection. Power buys exclusive to the show this year featured special deals for larger purchases: buy more, save more. The LBM section offered sit-down booths to accommodate the in-depth negotiations that lumber transactions can entail.
On the first day of the event, dealers had the opportunity to take part in workshops on subjects ranging from merchandising to e-commerce. The following evening brought the annual gala recognizing outstanding local dealers. Three new categories were introduced this year under the “Builder of Success” heading.
This year’s winners in the new category are: Nancy Powell-Quinn, RONA Moffatt & Powell, London, Ont. (Up and Comer); RONA Forget, Mont-Tremblant, Que. (Community); and Bruce Allen, RONA North Vancouver (Lifetime Achievement). Ace dealers in the category are: Chad Camp, Ace County Farm Centre, Picton, Ont. (Up and Comer); Ace Armand Dumaresq matériaux de construction, Gaspé, Que. (Community); and Bryon Calvert, Ace Hardware Beaverlodge, Beaverlodge, Alta. (Lifetime Achievement).
The show closed with a visit from RONA-sponsored NASCAR Pinty’s Series driver Alexandre Tagliani, for a meet-and-greet with dealers and suppliers.
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DID YOU KNOW...?
... that the reserved block of rooms for the 2018 Hardlines Conference expires September 30? So reserve your spot today. Space is limited for this year’s conference—and we’re not just making that up to sell more tickets! We’re holding it at Queen’s Landing in Niagara-on-the-Lake, Ont., which is a cool, historic venue, but smaller than we’re used to. Click here right now to reserve your room!
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RETAILER NEWS
BOUCHERVILLE, Que. — Groupe BMR will commence the renovation of its Potvin & Bouchard store in La Baie, Que., starting immediately and slated for completion next May. The project aims to create a more modern store to respond to customers’ needs. The planned realignment of the store’s format, which has been entrusted to Les Constructions Technipro of Saguenay, includes upgrading the storefront in line with previously renovated Potvin & Bouchard stores in Alma and Chicoutimi.
MONTREAL — At its dealer buying show last week, Lowe’s Canada honoured several RONA and Ace dealers for their accomplishments. A number of milestones were celebrated as well, including RONA A. Fluet & Fils, Stanstead, Que. (70 years in business); and RONA A. Champagne, Saint-Honoré-de-Shenley, Que. (75 years).
BROCKVILLE, Ont. — An assistant manager at Brockville Home Hardware Building Centre is one of 10 contestants on CBC’s The Great Canadian Baking Show, which premiered this week. Tim Chauvin learned to bake growing up near Windsor, Ont. “My earliest baking memories would go back to Christmas time,” he told the Brockville Recorder & Times. The 38-year-old landed his place in the contest, according to CBC publicists, with “a delectable cake adorned with homemade peanut butter cups.”
MONTREAL — Dollarama reported that its sales for the second quarter increased by 6.9% to $868.5 million, compared to $812.5 million a year ago. Comparable store sales grew 2.6%, following on a 6.1% gain in Q2 of last year. Net earnings increased to $141.8 million, or $0.43 per diluted common share, compared to $131.8 million, or $0.38 per diluted common share in 2017.
SUPPLIER NEWS
BARRIE, Ont. — LinkGreen, a supply chain platform, has completed its integration with RenoWare, an installed sales software provider. RenoWare’s software is designed specifically for home improvement, lawn and garden and specialty centres to better manage the design, estimating and installation process. The RenoWare system integrates with a number of point-of-sales systems used by building centres in Canada. The data exchange through LinkGreen enables its building centre customers, which include Home Hardware, TIMBER MART and Castle dealers, to access current vendor catalogue data and product images.
LEBANON, Ind. — Festool has just launched a “Trade up to Festool” campaign, which will run through October 31. Customers who buy a new, Festool 55-series saw or Festool plunge router can send in any brand of used power tool, regardless of age or condition, and receive a $120 prepaid MasterCard. The Trade Up promotion is the first of its kind for the German power tool manufacturer.
STOCKHOLM — Husqvarna Group has cautioned investors that its core operating profit for the third quarter will be cut in half, owing to inclement weather, restructuring costs and tariffs. The company had already in July announced restructuring to its Consumer Brands segment, in part because of lower demand in the U.S. “In addition to the restructuring, the third quarter has also been impacted by the extended warm and dry weather,” the company added in a statement. Among the restructuring measures planned is the closure of the company’s McRae, Ga., plant.
ECONOMIC INDICATORS
Sales of existing homes rose by 0.9% in August, marking a fourth consecutive monthly gain. However, sales activity is still running below levels in most other months going back to early 2014. Roughly half of all local markets recorded an increase in sales from July to August, led again by the Greater Toronto Area (GTA), along with gains in Montreal and Edmonton. Actual (not seasonally adjusted) activity was down 3.8% year-over-year in August, due mainly to declines in major urban centres in British Columbia.—Canadian Real Estate Association
U.S. housing starts in August were at a seasonally adjusted annual rate of 1,282,000, up 9.2% from the previous month, and ahead by 9.4% over August 2017. Single-family starts were up 1.9%, while multi-unit housing starts were up 2.5%. However, looking ahead at building intentions, the number of building permits issued in August fell by 5.7% seasonally adjusted from July’s rate, and were down 5.5% year over year.—U.S. Commerce Dept.
NOTED
The 2018 Hardlines Retail Report is now available for marketers and planners. This incredible PowerPoint report features 200 slides, with in-depth analysis of the country’s top hardware and home improvement players and breakdowns of the Top 20 retail groups. And this year, it has more trends analysis and more forecasts than ever. But there’s more! The Hardlines Market Share Report is just days away from release. We have special bundled pricing if you buy both reports. Click here for details and to order both reports now!
OVERHEARD
“By bringing together RONA and Ace dealers in one show, we are maximizing the strength of our network. More than ever, Lowe’s Canada is committed to fuelling the growth of its dealers and being a partner in their success.”
— Antonio Cioffi, EVP, finance, affiliate dealers and real estate, on the Lowe’s Canada Buyer Market, held in Montreal earlier this month.
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.