September 10, 2018 Volume xxiv, #33
“Let the refining and improving of your own life keep you so busy that you have little time to criticize others.”
— H. Jackson Brown Jr. (American author and inspirational writer, 1940- )
IN THIS ISSUE:
- Peavey Mart stores sell licensed products to aid air ambulance care
- Home improvement retailers expected to fare well despite forecasted slowdown
- Giant Tiger keeps roaring across Canada, finding new niches
- Upcoming Home Improvement eRetailer Summit draws key retail groups
- PLUS:Hudson’s Bay opens new store, Walmart posts net loss, Eddie Lampert bids on Kenmore, Maibec sells sawmills, Stanley Black & Decker and Sears both sell Craftsman, Atis Group announces acquisition, Masonite to build new DC, Isolofoam adds to Ontario sales team, residential construction and more!
Peavey Mart stores sell licensed products to aid air ambulance care
RED DEER, Alta. Peavey Mart is teaming up with STARS (Shock Trauma Air Rescue Society) air ambulance service, selling STARS merchandise both online and in-store at all Peavey Mart and MainStreet Hardware stores. Proceeds from the sales—minus the cost of goods—go straight to STARS. The offerings include more than 20 styles and sizes of shirts, jackets and caps, all exclusive to Peavey Mart and MainStreet. More products will be coming over the next few months.
In a statement on the announcement, Bert Harbour, STARS’ manager of enterprise fundraising, noted that “half of all Western Canadians live in rural areas where emergency ground transportation isn’t always fast enough.”
“With the cost of one STARS mission at around $5,400, every purchase helps keep STARS in the air, ready to serve in the hour of need in rural Western Canada,” added Peavey Marketing Director Jest Sidloski. About four out of 10 Peavey employees know someone who has benefited from STARS’ services.
The relationship between the two organizations began earlier this year when Peavey CEO Doug Anderson participated in STARS’ annual Rescue in the Rockies fundraiser. Anderson was one of a handful of senior corporate leaders who were dropped in the wilderness for several days while money was raised to “rescue” them. His involvement generated more than $230,000 from customers and suppliers, as well as the commitment at the time to further collaboration with STARS.
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Home improvement retailers expected to fare well despite forecasted slowdown
WORLD HEADQUARTERS, Toronto While Canada’s retail home improvement industry grew at a healthier rate than anticipated in 2017, conditions affecting the industry point to a slowdown through the end of 2018. That moderation is expected to continue into 2019, as well.
According to the 2018-2019 Hardlines Retail Report, sales by hardware stores, building centres and big boxes, Canadian Tire, and related sales by Walmart and Costco, were up 5.1% year over year in 2017. But dealers’ sales are forecast to slow down to below 4.5% annually to the end of 2019.
On a regional basis, the greatest growth is forecast to come from the West, particularly Alberta, as the economy there continues to gain steam. That province’s retail home improvement sales are expected to grow by more than 5% annually. British Columbia is close behind, with anticipated annualized sales growth of 4.75% through this year and next. According to the Retail Report, Saskatchewan will also perform well to the end of 2019.
The report also looks at trends affecting home improvement dealers. “Hardware and home improvement dealers represent a significant part of the retail landscape in Canada,” says Michael McLarney, Publisher of Hardlines Inc., which produces the Retail Report. “They represent at least 135,000 direct jobs in this country, many of them in smaller communities. This report analyzes just how their business is evolving and how they are embracing new trends such as smart home technology and e-commerce.”
Offering a complete breakdown and analysis of Canada’s retail home improvement industry, the Hardlines Retail Report features in-depth analysis of the industry's top players, including the market shares of the top 20 players, and sales and forecasts for Home Depot, Canadian Tire and Lowe’s Canada. This year’s report features expanded forecasts both provincially and by store format. It also looks ahead at anticipated sales performance of the Top Four players.
The analytical data in the Hardlines Retail Report has been carefully researched by the Editors of Hardlines. Available in either PDF or handy PowerPoint format, it has 200 slides, dozens of charts and graphs, and more photos than ever before. (Click here for details and to order your Hardlines Retail Report now!)
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Giant Tiger keeps roaring across Canada, finding new niches
OTTAWA As other retailers face closures nationwide, Giant Tiger continues to grow. The Ottawa-based general merchandiser celebrated the grand opening of its Riverview, N.B., store late in July. The 22,000-square-foot location marked the occasion with a day of family events and promotional giveaways. And that’s just one of many that are appearing across the country.
Giant Tiger has been expanding aggressively since Target retreated from this country in 2015. With its broad range of discount merchandise, everything from fashions and work clothes to toys, snack foods and groceries, the Giant Tiger stores fit well into rural communities and smaller towns. The demise of Sears Canada has also opened up opportunities for more sites for the discount retailer.
In April, Giant Tiger opened stores in St. Thomas and Renfrew, Ont., and in Steinbach, Man., in May. In November 2017, openings took place in Brampton, Mississauga and Owen Sound, Ont.; and in Winnipeg—the 11th store in that market. In the summer, outlets under the Tigre Géant banner were opened in Rouyn-Noranda and Anjou, Que.
The majority of the Giant Tiger stores are franchised, with ownership by a member of the local community in which the stores operate. In Western Canada, the retailer has a master franchise agreement with The North West Company, a deal forged years ago that helped Giant Tiger accelerate its expansion westward.
Giant Tiger now has 243 locations, up from 220 just two years ago. The company plans to add as many as 15 stores per year over the next few years.
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Upcoming Home Improvement eRetailer Summit draws key retail groups
CHICAGO — Groupon Goods and The True Value Company are the latest high-profile businesses to confirm that they will be sending their respective e-commerce buying teams to the third annual Home Improvement eRetailer Summit, at the Hotel Monaco Chicago from November 7 to 9.
“The entire Groupon Goods Home Improvement buying team is looking forward to the summit and networking with new and current suppliers, as well as expanding our knowledge of best practices for serving our customers in the e-commerce marketplace,” says Scott Benedict, Groupon Goods’ divisional merchandise manager.
Benedict was on the original team at Walmart that launched the retail giant’s own Walmart.com e-commerce platform.
“This summit focuses on bringing together executives from the entire distribution channel to collaborate and learn how to compete in increasing the sales of home improvement products online,” says Sonya Ruff Jarvis, the summit’s founder.
The eRetailer Summit is attracting the entire buying departments of many key e-commerce players, she notes. “That demonstrates that there is a need for this kind of forum to identify new suppliers and share insights and intelligence on e-commerce, specifically as it relates to home improvement retail.”
Jerry Clasey is president of the hardware division for hardlines distributor Bostwick-Braun Company. He anticipates establishing contacts with other key retailers, with the goal of building longer-term relationships. He says he is also looking to learn what other companies are doing in e-commerce.
In addition to Groupon Goods and True Value, the e-retailers that have committed to attending the summit include representatives from the e-commerce teams for eBay, Sustainable Supply, The Grommet, FireFly, Buys, Sears and Supply Hog. More online retailers are expected to confirm their teams’ attendance in the coming weeks.
(For more information and to register for the third annual Home Improvement eRetailer Summit, contact Sonya Ruff Jarvis at 203-295-3385.)
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DID YOU KNOW...?
...that we’re about to launch a new publication? That’s right, Hardlines Dealer News is an email newsletter for store dealers and managers, with content carefully curated to help them run their businesses better. It’s being launched this week and will go free of charge to hardware and home improvement retailers across the country. If you’re a dealer, watch for it in your inbox. If you want to make sure you receive your own collector’s edition first issue of HDN (we’ve already got a hip acronym for it!), email us directly!)
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RETAILER NEWS
TORONTO Hudson’s Bay has opened a new store in LaSalle, Montreal, at Carrefour Angrignon shopping centre. A grand opening event was held on the weekend for the one-level, 129,000-square-foot store. It’s the company’s first new location in more than five years.
CHICAGO For the first time in its history, U.S. retail group True Value is opening its semiannual Reunion to all independent dealers. The company will host all retailers, regardless of affiliation, at the Colorado Convention Centre from September 27 to 30 with a full slate of buying opportunities, educational sessions and product assortments at discounted prices. The Fall Reunion is the company’s first since it closed a deal that involved the sale of 70% of the company’s stock to private-equity firm ACON Investments. The sale resulted in the return of more than $200 million to its members.
BENTONVILLE, Ark. Walmart posted a net loss of $861 million in Q2, compared to profits of $2.9 billion a year ago, largely due to one-time costs such as those stemming from the sale of its majority stake in Walmart Brazil. Sales at U.S. stores open for at least a year climbed 4.5%, excluding fuel price movements, ahead of the 2.38% predicted by analysts. A rebound in grocery, apparel and seasonal categories led the growth. Online sales soared by 40%, following a 33% increase in Q1.
HOFFMAN ESTATES, Ill. ESL Investments, the hedge fund operated by Sears Holding Corp.’s CEO Edward Lampert, has made a formal bid to purchase the Kenmore brand from Sears, the Chicago Tribune reports. In its proposal, the hedge fund valued Kenmore at $400 million, excluding the impact of cash or debt, according to a U.S. Securities and Exchange Commission filing. In a separate proposal, ESL Investments is offering to purchase a portion of Sears’ home services division for $70 million.
SUPPLIER NEWS
RIVIÈRE-DU-LOUP, Que. Maibec has announced the conclusion of the sale of its Saint-Pamphile, Que., and Masardis, Maine, sawmills to Groupe Lebel. Both companies are privately owned and so terms of the deal will not be published, except that all 315 affected employees will keep their jobs under Lebel.
CHICAGO — Stanley Black & Decker has launched 1,200 new Craftsman tools in recent weeks, but the giant tool manufacturer is not alone. Under the terms of the sale of the brand, Sears retains the right to manufacture products under the Craftsman label, as well. The companies have agreed to a common set of brand standards to ensure consistency. The deal has Stanley paying royalties on its Craftsman line to Sears for the first 15 years.
MONTREAL Atis Group has announced the acquisition of Vitrotec Portes & Fenêtres Inc., a retailer of windows and doors in the Montérégie region. Vitrotec operates two stores in St-Ours and St-Hyacinthe. Founded in 1976, it was acquired by François Bouthillier and Chantal Renaud in 2013. Following the acquisition, Bouthillier will stay on as Vitrotec’s general manager.
MISSISSAUGA, Ont. Door manufacturer Masonite is set to build a new distribution centre in the new industrial park in Windsor, Que. The 90,000-square-foot facility will involve an investment of some $8.5 million and is expected to be operational next spring. The company will rent the premises and pay operating costs to the town of Windsor.
ECONOMIC INDICATORS
Investment in residential construction in Canada increased 7.8% year over year to $36.0 billion in the second quarter. Ontario and Quebec led the growth, up 8.0% and 15.8% respectively. British Columbia was also strong, with Q2 growth of 10.1%. Among the Atlantic provinces, Nova Scotia was up 6.7% and New Brunswick’s residential construction activity was up 9.7%. Prince Edward Island posted its seventh consecutive double-digit year-over-year increase, up 20.5%. On the Prairies, Manitoba was the only province to post gains, up 1.8%. Saskatchewan and Alberta both reported year-over-year declines. StatCan
OUT & ABOUT
Our intrepid VP of Business Development David Chestnut and our Quebec reporter Geoffrey McLarney will be at the Lowe’s/RONA show this week in Montreal. Then, on the weekend, David and our Publisher Michael McLarney will visit St. Jacobs, Ont., to attend Home Hardware’s Fall Dealer Market.
Isolofoam has added to its Ontario sales team. Daniel McDevitt was named territory sales manager for the GTA and Central to Northern Ontario regions at the beginning of the year, while Dianne Smith took over in Eastern Ontario in the spring. McDevitt, who has two decades of experience in construction products, spent the last two years as territory sales rep for Sable Marco. Smith, who got her industry start more than 30 years ago, has been a territory sales manager for companies such as Bonneville Windows, Laflamme Doors and Windows and Neos Gordonply (a division of Richelieu).
Saniflo Canada has appointed Alexandra Motts as its new national sales manager, effective July 27. Motts brings some 20 years of industry experience to the role, having previously held top management positions in the HVAC, plumbing and event management industries.