In the beginning, Home Hardware celebrated the strength of independent Home Owners united to improve their businesses and serve their communities.

Forty-seven years later, that spirit continues to thrive. Today, every Home Owner enjoys the benefits of shared strength, support and brand-name recognition while remaining proudly independent. That’s why over 115 independent hardware, lumber, building materials and furniture stores have joined the Home Hardware family since 2008.

Recent surveys report a significant increase in sales and special orders for new Home Owners since converting their stores to the Home Hardware banner. The reasons are simple: greater buying power, a comprehensive distribution and delivery network, a highly recognized nationwide advertising program and much, much more.

Home Owners enjoy all the advantages of Home without losing control of their direction or their businesses. As part of a Dealer-owned cooperative, Home Owners participate and share equally, accountable only to themselves, not to outside investors.

Home Hardware also provides Home Owners with all the tools they need to grow and improve their businesses, including expansion and renovation services with the Build a Better Home Design Service.

The power of a nationally recognized brand name, the strength of a comprehensive delivery and distribution network, and the support of Home Hardware programs and services guarantee that Home Hardware will continue to grow. Keep reading to learn more about how your business can thrive by joining the Home Team and enjoying all the advantages of Home Hardware.

Proudly Independent since 1964

VOL. 5 NO. 1

No one delivers the goods like Home Hardware, thanks to our extensive logistics and distribution network. Across the country, every Home Owner can depend on reliable fill rates and a high service level (averaging 95+%).

That’s because Home has four highly sophisticated distribution centres located in St. Jacobs and Elmira, Ontario; Debert, Nova Scotia; and Wetaskiwin, Alberta to fill and ship orders in industry-leading time.

To ensure the fastest delivery possible, Home relies on Canada’s most recognized fleet of delivery vehicles, consisting of 125 tractors and 400 trailers. Fully certified by the CSA, not only is the Home delivery fleet fast, it’s also one of the safest on the road.

Home Owners also provide their customers with products not normally carried in-store through Home’s special order service. Any product Home Hardware offers can be special ordered for delivery to any Home

location, so every customer is guaranteed to receive what he or she needs.

Home Owners can trust Home to reliably handle product distribution, delivery and logistics, freeing them to concentrate on assisting their customers instead of spending their time ordering products and organizing shipments. For consistent service and reliable logistics and product distribution, Home Hardware always delivers.

Add brand power to your business

One of the reasons for Home Hardware’s continued growth and success is the recognition and strength of the Home Hardware brand – and every Home Owner plays a part.

Home Hardware has over 99.6% brand identification – one of the strongest and most recognized brands in Canada. And

nearly 90% of recent survey respondents successfully recalled Home Hardware advertising – up from 67% in 2008.

In fact, the Home Hardware tagline, “Home Owners helping homeowners”, was the No. 1 correctly identified tagline within the home improvement category, identified correctly three times as often as our competition’s slogans.

Every Home Owner is a part of this success, and it’s not only because they’re featured in all our television commercials and in our print and online advertising. The independence that every Home Owner enjoys is integral to the strength of the Home Hardware Brand, and it’s reflected in the “Home Owners helping homeowners” tagline.

The groundwork for this strong brand awareness begins with the Home Hardware flyer, one of the most read and recognized flyers on the market, not just in the home improvement category. Eighty-nine percent of Canadian consumers read our flyers, according to recent survey results, supported by highly popular annual catalogues for every Home Hardware banner. This branding is supported at the store level through banner kits and signage for every sale, promotion and event.

In addition, Home also features nationally recognized spokespeople such as Gardening Expert Mark Cullen and Kitchen Expert Anna Olson as part of the Home Hardware team of experts. Both are part of a year-round TV advertising campaign that scores highly in terms of recognition, memorability and effectiveness year after year.

Online, Home’s presence is stronger than ever with a newly re-designed homehardware.ca website. From larger, clearer product pictures to related product searches, helpful advice and more, homehardware.ca is now simpler, more intuitive and easier to use. Customers can search over 60,000 products, find their nearest Home location and register for Home e-communications to receive exclusive online savings and the latest Home flyers, sale notices and more.

Home delivers even more value to Home Owners through our partnership with the industry-leading Aeroplan®

customer loyalty program. Not only can customers earn Aeroplan Miles at Home, they can also redeem them for valuable Home Gift Cards to keep them coming back Home.

This type of brand awareness and marketing reach can be difficult to achieve on your own. But with the help of Home, it’s easy to boost your brand power and give your business the recognition it deserves.

“Thanks to Home Hardware, we can enjoy high profile advertising, just like big companies, on an independent merchant’s budget. Now our flyers get results and our customers love them.”

– André Germain, Centre de Rénovation Germain Inc., Donnacona, QC

For delivery and distribution, there’s no place like Home

“Home Hardware is very much a reflection of Walter Hachborn’s commitment to the survival of the independent retailer and his vision for helping individual Canadians grow profitable, sustainable, long-term businesses. We will always remain true to our unique, cooperative business model – one that gives Dealers the ability to accomplish three critical goals at once: to remain independent, to compete on price and to retain rewarding profit margins. This is the foundation on which Home Hardware was founded more than 45 years ago, and it remains the cornerstone of our company today.”

Paul Straus President & CEO, Home Hardware Stores Limited

“Our family has been in the hardware business for a long time, with two stores in Quebec – a 4,000 sq ft store in St-Charles and a 5,000 sq

ft store in Ste-Claire. One of the main reasons we joined is the fact that Home is operated and managed by Home Owners for Home Owners.

“With Home, we’re still working for ourselves, with the advantage of incentive programs that have helped us expand and increase our sales – from Home Exclusive products and extensive television advertising support to an efficient,

courteous distribution system and the Spring and Fall Markets, where we receive additional product discounts.

“Since joining Home, we’ve undertaken six

expansion projects We relocated our St-Charles

store in 2001 and expanded it to 10,000 sq ft in 2007, with 25,000 sq ft of warehouse space. We also recently completed our third expansion to the Ste-Claire location.

“When we joined the Home Hardware banner in 1997, you could say we were pioneers in the region. At the time, there were very few Home Owners in Quebec. We’re proud to say that since we’ve joined, many other Dealers have consulted us before joining Home – and now they’re all proud, successful Home Owners, too.”

Georges LaflammeLaflamme Georges Inc. St-Charles & Ste-Claire QC

“I’ve worked with a lot of hardware

banners in my time, but

none have offered

the branding

and the support that Home has since I

joined them in 1999. Sincethen, I’ve kept on operating successively

larger Home dealerships. And with each step up in size and scope, Home has been there to help me build and grow the business.

“Home Hardware’s advertising program has been a big help. By raising awareness of the Home brand nationally, it helps inform our community locally. Home’s Exclusive brands also give us a big competitive advantage – unique products that are only available at Home!

Beauti-Tone paint is a great example – it’s built such great brand awareness that customers ask for it by name. Plus, the TV campaign also backs the excellent Home Hardware flyer program.

“All the support we get from Home allows me to focus on running my business at the store level. I’m able to stay competitive day-in and day-out while maintaining my margins and still seeing a rebate at the end of the year. No other program has been able to provide me with this substantial level of rebates. That allows me to keep re-investing in my business – and with the help of Home behind me, there’s no limit to how much we can grow.”

Parry EvansEvans Brothers Home Building CentreSwift Current SK

“When we joined the Home Hardware team in 2000, we knew we were joining a strong banner – but we didn’t realize how helpful their programs and services would be in growing our business. Our previous banner lacked the stability of Home, not to mention Home’s comprehensive LBM and hardware programs. Since we joined, we couldn’t be happier. It’s not one reason in particular – it’s the whole package, from marketing to LBM rebates to the outstanding service and support from the LBM office in Debert.

“We entered the market with a 7,500 sq ft store, and we’ve had two major expansions within the past 10 years totalling 13,000 sq ft, as well as an additional 12,000 sq ft of LBM warehousing. Our sales and

margins have both increased, and we’re extremely pleased with the services Home has provided along the way.

“Now we offer more products to more people, including exceptional Home Exclusives such as Beauti-Tone paint .We’re so pleased with the Beauti-Tone line that we eliminated our second line of paint within two years of joining Home. With its extensive programs and services, as well as a local LBM office that

understands our region, joining the Home Hardware banner adds up to a bigger success than we ever imagined.”

Andy AllenHighland Home Building CentreAntigonish NS

“Lumber and building materials have always been a big part of my life. I got my start at age 15 as a part-time yard employee for Saveway Lumber, a division of Beaver Lumber at the time. From there, I worked my way up to various positions from merchandising to regional assistant for Central Ontario.

“In 1983, I was offered the manager position at Beaver Lumber in Kingston, and four years later, my wife (who also worked at Saveway and Beaver) and I decided to franchise this location.

“When Home Hardware bought Beaver Lumber in 2001, it was an exciting time for all of us. The conversion meant greater product selection, which would allow us to capture a bigger audience than with Beaver. Plus, we’d now be truly independent with the backing of a company highly respected within the industry.

“Later that year, we closed the Kingston location and purchased the Gananoque Home Hardware Building Centre, an 8,000 sq ft location with sales of $4 million. After many great years there, we relocated the store to a new location up the street.

“The new Gananoque Home Hardware Building Centre features a Home Furniture store and a drive-thru lumberyard. Our new location boasts 84,000 sq ft of indoor shopping – truly a dream come true. Thanks to my family and Home Hardware for helping us become proud Home Owners.”

Ken O’ConnorGananoque HHBC/Home FurnitureGananoque ON

Lifting lumber to new heights

A new banner for a growing business Pioneering growth

Building from the brand up

There’s more to Home than just Home Hardware. In fact, there are over 500 Home Hardware Building Centre and Home Building Centre locations across the country – up from 484 in 2009. It’s because Home Building Centre Owners benefit from Home’s tremendous buying power, which is even greater than the retail sales of some of our competitors.

At the heart of this buying power are four regional buying offices that make it all possible. Located near the volatile LBM markets, these buying offices help Home Building Centre Owners across the country get the best possible deals on lumber and building materials.

Home Building Centre Owners also benefit from a wide range of programs and services to help them and their customers, from everyday consumers to construction and home renovation contractors. Home Building Centre Owners offer Home Installs installation services, Home Architectural Solutions, the Beaver Homes & Cottages design program, and loyalty programs such as the Top Notch rewards program. Other programs include the Tough as Nails Contractor Club, which sponsors many highly successful regional trade shows and rewards Home’s most valued contractor customers.

These are just some of the many ways that Home Building Centre Owners benefit from being a part of the Home Hardware family. Whether you’re looking to expand your building centre or you’re just looking for a competitive edge, Home has everything you need to build a better business and a better building centre.

An essential part of the Home Hardware brand is exclusive Beauti-Tone paint. Not only is Beauti-Tone Canada’s fastest-growing brand of paint, it’s also Canada’s No. 1 Canadian-owned retail paint brand.

With Beauti-Tone paint, Home Owners are well positioned to take advantage of the highly popular home decorating market. Beauti-Tone consistently ranks as one of the very best paints money can buy compared to other leading brands in independent laboratory tests conducted by an ISO-certified laboratory.

Beauti-Tone also leads the way in innovative paint technologies such as anti-scuff and mildew-resistant finishes and all-in-one paint and primer for the Designer Series paint line. In fact, Beauti-Tone performs so well versus competing brands that over 90% of Home Owners stock Beauti-Tone paint exclusively – and because Beauti-Tone is owned by Home Owners, all profits are returned to them through rebates based on a percentage of sales.

Beauti-Tone paint is manufactured and packaged by Home Hardware in Burford, Ontario, in one of the most technologically advanced facilities in North America. But the Burford plant makes more than just paint. Its complete product line-up includes household cleaners, stains, clear coatings, caulking, sealants and liquid lawn fertilizers – all made exclusively for Home Hardware.Home provides Home Ownerswith great Beauti-Tone products, but Home also provides them with the programs and services to help them maximize their profits and sales. Some of these initiatives include:

• Annual training seminars, in-store merchandising and cost-saving direct- buy programs

• A comprehensive commercial

Paint a more colourful future with Beauti-ToneBuild a better Building Centre with Home paint program to help Home Owners

access the $650-million professional market

• Successful customer appreciation events

• Video training and correspondence courses on topics such as Selling to Contractors and Décor Consulting

This is all supported by a strong Beauti-Tone presence across all media, including national and regional print, radio, television and online advertising. In fact, Beauti-Tone outspends the next leading competitor by $1 million in terms of media buys.

Digitally, Beauti-Tone leads the way with several online tools and initiatives to help customers find the right paint for their homes, including the Beauti-Tone Home Designer, the Beauti-Tone Colour Finder and the Beauti-Tone Project Centre.

Beauti-Tone also enjoys high-profile partnerships with some of Canada’s best known colour authorities, including Style at Home magazine and renowned fashion

designer Simon Chang, for exclusive

colour collections available only at Home. And for children, Beauti-Tone has recently partnered with Sesame Street for another exclusive colour collection featuring some of kids’ favourite characters.

This year, Beauti-Tone takes colour-matching to a new level with the introduction of Capsure. This advanced colour-matching tool allows Home Delaers to perform a colour-match in customers’ homes or on a contractor’s job site. This advanced technology will make finding the perfect colour easier than ever!

Beauti-Tone also leads the way in environmentally responsible initiatives, setting the standard with Zero VOC paint and Zero VOC colourants long before the competition. And to help improve the air quality in Canadian homes, Beauti-Tone partners with the Canadian Lung Association, and donates a portion of all proceeds towards them. The first Canadian paint manufacturer to switch to plastic cans, Beauti-Tone also proudly offers the Natura line of eco-friendly paint and cleaning products.

“When joining the Home Hardware banner, I knew I was joining a strong hardware program, but what surprised me was the LBM side of things. I was skeptical at first to switch to a banner without an LBM warehouse, but after enjoying the benefits of a strong national presence – and more importantly, the strong regional presence of Home Hardware’s LBM program – I wouldn’t trade it in for anything else. The regional team is always making sure we get the best deal at the right time with all of our rebates.”

–Conrad LeBlanc, Tediche Home Hardware Building Centre, Cap-Pelé, NB

Helping every Home Owner improve and succeedAt Home Hardware, every Home Owner’s success is our success, and we’re constantly looking for new ways to help improve their business. Whether it’s adding more training programs and initiatives, providing new and exciting product lines or sponsoring sporting events and charitable organizations, our goal is to continue elevating the value of the Home Hardware brand, and every Home location along with it.

As members of a cooperative, Home Owners are what truly set Home Hardware apart, and the input we receive from them is crucial to our efforts. Without their constant feedback

and communication, it wouldn’t be possible to offer Canadians the best quality and value across all home improvement categories.

Join Home Hardware and help build your business with the products, programs and services you need to serve your community and improve your bottom line. From marketing support and brand name awareness to comprehensive logistics and distribution, there truly is no place like Home.

“We’re always on the lookout for opportunities to grow and expand the Home brand. Innovation is a key factor in planning our future, and we are constantly looking at new ways to approach challenges and develop innovative solutions that help us do a better job. We are committed to building the foundation today for tomorrow’s successes, and we know we must have the programs, services and staff in place to ensure that future success. Making investments and upgrades to our stores goes a long way in strengthening the Home brand, increasing sales in our stores and in turn, growing our organization.”

Terry DavisExecutive Vice-President & COO Home Hardware Stores Limited

Dunc Wilson, National, 519.498.1302

Georgette Carriere, Ontario, 519.501.5988

Luc Martin, Quebec, 819.357.0203

Andrew Parkhill, Western Canada, 604.751.3853

Kevin MacDonald, Atlantic Canada, 902.368.1620

Arnie Small Home Building

Centre–Paris Paris, ON