Embed Size (px)
Citation preview
1 Go to page 3 CONTENTS
www.hirmagazine.comPM NO. 40008000
Retailers
CANADA’STOP
A Powershift Publication l Volume 17, Number 2 l April 2011A Powershift Publication l Volume 17, Number 2 l April 2011
9Private Wealth More Comprehensive Financial Planning
25The Leaders Bill Morrison On the TruServ/RONA Team Canada
26Contractor Business Latest Trends In Kitchen Designs
2 Go to page 3 CONTENTS
3
3
CONTENTS
For all subscription inquiries, fax to Cathy McKerchar at 416-494-2536
e-mail: [email protected]
Departments
Features
Visit Our Website: www.hirmagazine.com
5 Editor’s ViEw Coping With Looming Labour Shortages
6 in storE
7 industry updatE
8 it’s your MonEy
9 priVatE wEalth Fee-only Financial Planning
11 FrontlinEs Mobile Shopping Carts Coming
12 GoinG GrEEn RONA Updates Procurement Policies
13 FEMalE shoppEr ‘What Women Want’
28 pEoplE
29 product spotliGht
30 publishEr’s pErspEctiVE The Yankees Are Coming, Again
15 canada’s top rEtailErs How They’re Ensuring Their Future Prosperity
25 thE lEadErs – bill Morrison, cEo trusErV canada inc. Team Canada Coming Together
26 contractor businEss Kitchen Trends Your Contractors Need To Know About
HOME IMPROVEMENT RETAILING • April 2011
A POWERSHIFT PUBLICATION
VOLUME 17, NUMBER 2 April 2011
EDITORIAL DIRECTOR & PUBLISHER Dante Piccinin
EXECUTIVE EDITOR Joe Hornyak
STAFF WRITER George Di Falco
ART & PRODUCTION Keith Boa
DIRECTOR OF ONLINE INITIATIVES Tyson Fenech
VICE-PRESIDENT ADMINISTRATION & CIRCULATION
Catherine J. McKerchar
ADVERTISING SALES Dante Piccinin (416) 494-1066
Fax: (416) 494-2536
HOME IMPROVEMENT RETAILING is published 6 times yearly by Powershift Communications Inc., 245 Fairview Mall Drive, 5th Floor, North York, ON M2J 4T1, Canada. Telephone: (416)494-1066, Fax: (416)494-2536, e-mail: [email protected]. Advertising, and Editorial inquiries should be made to the above address. Issue dates are: Jan/Feb; March/April; May/June; September; October; Nov/Dec. Yearly subscription rates: Canada: $76 plus GST*; U.S. and other: $110/yr. Single Copy prices: Canada: $15 plus GST* prepaid; U.S. and other: $30 prepaid. HOME IMPROVEMENT RETAILING assumes no responsibility for the validity of the claims in items reported or for the opinions expressed by our writers. All rights reserved. Contents may not be reprinted or duplicated without written permission. Publisher assumes no responsibility for unsolicited manuscripts and art. Published by Powershift Communications Inc. PRESIDENT, D. Brian McKerchar; VICE-PRESIDENTS, John L. McLaine, Dante Piccinin, Catherine J. McKerchar.
CANADIAN PUBLICATIONS MAIL PRODUCT SALES AGREEMENT NO. 40008000 *Goods and Services Tax Registration Number R131006876. ISSN: 1204-3044
13
26
11
4 Go to page 3 CONTENTS
To find out how you can benefit by joining Home, visit home-owner.ca - or talk to one of us.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
“With Home, we’ve now got the tools to compete with the Big Boxes.”“Since we switched to Home, our sales have increased dramatically because our customers know we can always get the items they need. Between the excellent flyer program and national television advertising, our name is always out there. Home has the programs we need to ensure we’ll continue to grow – and succeed – together.”
Shelley Glover, Redmond’s Home HardwareUpper Tantallon NS
File: 18023_HIR_ShelleyGlover_ENDocket/Job: 18023Client: Home Hardware
Trim: 8.125" (w) x 10.875" (h)Safety: 7" x 10"Bleed: .125"
Pub: Home Improvement RetailingInsertion Date: Mar./Apr. 2011 IssueColours: CMYK
Art Director: SannaCopywriter: RickMac Artist: Mike
Proof printed at 100 %
18023_HIR_ShelleyGlover_EN.indd 1 11-02-02 10:48 AM
5
eDitor’s View
5HOME IMPROVEMENT RETAILING • April 2011
Joe HornyakExecutive Editor
Go to page 3 CONTENTS
Patrick Guilbert, owner of Neepawa Home Hardware in Neepawa, MB, believes that not having a back-ground in hardware and lumber
and building materials is no big deal when it comes to running a hardware store.
The former human resources executive says in Home Improvement Retailing’s ‘Top Retailers for 2011’ that when he first took over his store 2½ years ago, many people told him that because “I had no retail or hardware experience that I was destined to fail.” However, he believes the hardest part of taking over a store for some people is dealing with people, the HR. He didn’t have to think about it, it came naturally and allowed him to concentrate on learning about the products and every-thing else.
Prospective Owners
And he hopes he has opened some eyes regarding the recruiting process. “When looking for prospective owners, there are a lot of people out there that aren’t directly
in the home improvement retail industry, but could still do a wonderful job,” and that is something to keep in mind as home improvement banners and buying groups deal with succession planning issues.
Clearly, however, the secret of the suc-cess of many of our top retailers is their peo-ple and this too is going to be an important part of retail success going forward. There is growing sentiment that Canada will soon be entering a period of labour shortages and there will be increased competition to attract and retain good people.
Today it is hard to envision that with the Canadian unemployment rate at 7.7 per cent and forecasts of slow economic growth ahead, we are headed into a period of labour shortages. The most recent Statistics Canada numbers show little change in the unem-ployment rate in recent months as part-time jobs are disappearing with full-time jobs are replacing them.
However, keep in mind that economists believe that anywhere from two to seven per cent of the labour force can be unem-ployed and we can still be at full employ-ment. This frictional unemployment is due to people who are still in the labour force, but between jobs. That puts our 7.7 per cent unemployment rate very close to full employment.
Plus, demographers will say the reality is that as early as 2016, by some estimates, more people will be leaving the labour force than entering it. Since 2001, the number of people 65 years and older has increased by 11.5 per cent, while the number under 15 has declined by 2.5 per cent. By 2031, 25 per cent of Canada’s population will be over 65.
Some pin the hopes of dealing with labour shortages on immigration. But, this problem is not unique to Canada. Europe, Japan, Singapore, Taiwan, South Korea, and even China all have aging populations.
So how are Canadian retailers deal-ing with these impending labour chal-lenges?
Our ‘Top Retailers for 2011’ appear to have a handle on that.
Former HR executive Guilbert talks about not putting himself above anybody else. “If I need to mop floors, then that is what I do.” Plus, he says his staff has as much say as he does. “Valuing their opinion gets the buy-in from them.”
Brian Macey, owner of TIM-BR Mart Stores in Havelock, Kinmount, Harcourt/Gooderham, and Pembroke, ON, comes from a background of being a senior execu-tive at companies such as General Electric and BPB Westroc Industries. His path has been very aggressive, acquiring five TIM-BR Mart stores two years ago. He knew that making it work required a “great staff with a real ‘can do’ attitude.”
Voice Of Experience
And the voice of experience comes from Carl Fast, owner of Wm. Dyck & Sons Castle Building Centre, in Niverville, MB. He’s been in business for 60 years and says the key to success is “your people.” What keeps a smaller business competitive with some of the larger companies is staff that understands the nature of the business.
He tries to make sure all staff are involved in key strategic decisions. “For instance, when we decided to open a cabin department, that was an entire staff deci-sion,” says Fast.
But to get that staff, “you need to pay fairly – we have a fairly extensive profit-sharing program so they can see the results of the decisions they make.” You also need to create a strong work culture that people can see.
Still, Fast acknowledges that “finding really good people is always a challenge.” He also cautions that finding these people is not always about replacing staff, “as you are growing, you need people to fill new roles.” ❖
Coping With Looming Labour Shortages
6
in store
HOME IMPROVEMENT RETAILING • April 20116
Go to page 3 CONTENTS
RONA Stores Pool Strength
Three RONA inc. stores in the Greater Toronto Area of Ontario have pooled their separate strengths into a single retail force to deliver a full range of quality products and services to the local communities. “By sharing our management, inventory, and services, our goal is to become a triple shopping destination for the region,” says Benoit Leduc, vice-president of retail for Ontario.” The new arrangement also aims to further improve the level of service and the choice of products in the Scarborough and Markham areas. The three locations will share employees and expertise and are located within a 10-minute drive of each other. They will be operated as one unit.
Canadian Tire Tries New Approach
Canadian Tire has launched a fully integrated, new consumer campaign designed to posi-tion the company as Canada’s authority for fulfilling the jobs and joys of everyday life. Featuring consumers facing daunting tasks and saying, ‘Bring it On,’ the campaign replaces the current ‘For Days Like Today’ creative that has been in place since 2008. Rob Shields, senior vice-president of marketing, says “the campaign is far edgier than some of our more sentimental campaigns and gets straight to the heart of why Canadians love shopping at Canadian Tire.” The new campaign features Canadians saying, ‘bring it on’ to the everyday realities of everything from repairing a yard ravaged by winter to barbecuing in the rain or spring cleaning the house or car.
American Discount Store Opens In Toronto
American discount store Marshalls has opened its doors for the first time in the Toronto, ON, area. Similar to Winners, it carries brand name goods at discounted prices. Owned by TJX Companies, it has more than 750 conventional stores, as well as larger stores named Marshalls Mega Store, and covers 42 states and Puerto Rico.
Wal-Mart Expanding Pick Up Services
Wal-Mart is expanding its program that allows customers to pick up online orders at stores as a way of attracting people who prefer the convenience of Web shopping but want same-day satisfaction. It currently
offers the service on about 2,000 items in 750 stores but it is expanding it to all stores and applying it to 40,000 items, including baby items, toys, electronics, video games, and appliances. Groceries are not part of the program. Online orders are usually ready in about four hours at a dedicated counter in stores for pick up by customers.
1,500 Attend Inaugural Show
TIM-BR Marts’ inaugural National Buying Show attracted more than 1,500 dealers and vendors to see the power of the buying group in action. Steve Stremecki, newly-appointed vice-president of corporate development, says about 40 per cent of its dealers from retail and commercial operations attended the show which showcased the products, services, and supports it provides for its members. Those services include a full hard-ware distribution network through TIM-BR MARTS’ Chalifour Canada hardware divi-sion. He also called it an opportunity to show its collaborative approach to doing business. “There are two stakeholders who help us measure our success,” he says. “Dealers are one, vendors are the other. Strong part-nerships with the supplier community are essential to us remaining the best choice for independent entrepreneurs across Canada.”
Home Depot Opens New BC Store
Home Depot has opened a store in Chilliwack, BC. The 80,000-square foot store includes a special home decor section, more than 40,000 products, an expansive outdoor garden area, a tool rental centre, and installation ser-
vices. Home improvement workshops will be offered at the store on topics such as how to build a deck, installing energy-efficient light-ing, and updating kitchens.
Retailers Should Embrace Channel BlurringRetailers often focus their merchandising, branding, marketing, and advertising cam-paigns on perceived needs of a hypothetical “core customer.” But given the prevalence of cross shopping and channel-blurring, some chains would do well to broaden their horizons by looking past these carefully crafted composite characters, says Joseph R. Bona, president of the retail division for global branding firm CBX. In seeing past the core customer, channel-blurring means retailers should embrace complexity – and even paradox, Bona says. Malls that once relied on upscale, fashion-forward tenant lineups, for example, are now welcoming Costco and Target to backfill vacated depart-ment store spaces. Convenience stores are transforming into something akin to a quick-serve restaurant, replete with cafés and prepared meals. Given these changes, many retailers could discover new opportunities by reaching out to the heterogeneous mix that is their customer base.
Lumber Liquidators Opens Toronto Stores
Lumber Liquidators has opened its first three Canadian stores, all located in Toronto, ON. The company says it will open 40 to 50 new stores in North America for 2011, with 35 to 40 in the U.S. and the remainder in Canada.
Castle Adds Three In Newfoundland
Castle Building Centres Group Ltd. is add-ing three members in Newfoundland to its expanding network of independent dealers. They include Power Brothers Inc, which com-menced operations in 1983; Cavendish Castle Building Centre, which began as Norm’s Lumberyard in Newfoundland’s Trinity area; and Burden’s Building Supplies, a family owned hardware store that has served north-ern Newfoundland since 1958. ❖
For FREE Daily News Alerts, visitwww.hirmagazine.com/home_improvement_news.html
�
7
7HOME IMPROVEMENT RETAILING • April 2011
Go to page 3 CONTENTS
inDustry upDate
ecoEnergy Program Extended
The federal government will extend the ecoEnergy program for one year. That is one of the measures that will have an impact on business outlined in the 2011 Canadian Federal Budget. The ecoENERGY retrofit program has the added benefit of encouraging people to work with legitimate renovators, says Vince Laberge, president of the Canadian Home Builders’ Association (CHBA). It will also bolster the govern-ment’s efforts to combat the underground cash economy in home renovation services.
Arbitration Clauses More Vulnerable
Arbitration clauses in consumer contracts may be more vulnerable to escape than previously believed, says an Osler, Hoskin & Harcourt LLP ‘Update’ on the Supreme Court of Canada decision in Seidel v. Telus Communications Inc. (Telus). At issue was
whether a mandatory arbitration clause in the appellant’s consumer contract with Telus meant that she could not proceed with a class action against Telus. In a ruling which appears to weaken the enforceability of arbitration clauses in both consumer and commercial agreements across the country, a majority of the court permitted the class action. The update says the extent to which future litigants will be successful in avoiding arbitration agreements remains to be seen, but given the recent number of Ontario cases which have permitted commercial parties to pursue court action in spite of arbitration agreements, it appears likely that Telus will lead to a greater amount of public litigation for commercial parties down the road.
Tax Credit Would Make Canadians
Environmentally EfficientA tax credit would impact the decision of 76 per cent of Canadians to make an environmentally efficient upgrade to their home, says the ‘Bosch Green Savings Survey.’ Steve Preiner, director of market-ing at Bosch, says “While Canadians are concerned about the environment, money plays an important role in energy efficient upgrades.” The top reasons for Canadians to make energy efficient upgrades to their homes are to save money (72 per cent), fol-lowed by reducing their home’s impact on the environment (37 per cent), and improv-ing resale value (34 per cent). ❖
For FREE Daily News Alerts, visitwww.hirmagazine.com/home_improvement_news.html
�
8 Go to page 3 CONTENTS
it’s your money
Williams-Sonoma Net Income Rises
Williams-Sonoma Inc.’s fiscal fourth-quar-ter net income rose 28 per cent, thanks in part to strong sales at its outlet stores and online. The company, which runs Pottery Barn, West Elm, its namesake stores, and other brands, earned $113.4 million for the period ended January 30, up from $88.4 mil-lion a year ago.
Dorel Posts Strong Quarter
Dorel Industries Inc.’s fourth-quarter reve-nue decreased 1.1 per cent to $539.5 million from $545.3 million a year ago. Quarterly net income rose 4.2 per cent to $25.2 million, from $24.2 million last year. Revenue for the full year rose 8.1 per cent to $2.3 billion as compared to $2.1 billion in 2009. Despite a challenging quarter, reduced consumer dis-cretionary spending, and rising input costs, the company says it was able to deliver revenue growth of over eight per cent and improved earnings over the prior year.
Armstrong Posts Fourth-quarter Loss
Armstrong World Industries, Inc. reported fourth quarter net sales of $642.9 million, down two per cent from $653 million in the same period last year. Quarterly net loss was $21 million for the flooring and cabi-nets producer, compared to a loss of $3.8 million in the fourth quarter of 2009. Wood flooring unit sales, which make up about 17 per cent of total revenue, decreased 11 per cent and were negatively impacted by a $20-million increase in lumber pricing, the company says.
Boise Cascade Reports Loss
Boise Cascade Holdings, L.L.C. posted a $16.2 million net loss for its fourth quarter and a $6.1 million full year 2010 net loss. Quarterly sales for the building materials distribution segment grew nine per cent to $402.7 million, while sales in the wood products division increased 14 per cent to $156.6 million. The timber producer attrib-uted the gain to a 12 per cent boost in ply-wood sales volumes and 13 per cent higher laminated veneer prices. It says prices of engineered wood products improved and that it was able to lower its per-unit plywood panel manufacturing costs.
Costco Up For Second Quarter
Costco reported second-quarter earnings of $348 million, compared to $299 million in the same quarter last year. Quarterly net sales rose 11 per cent to $20.45 billion, on same-store sales growth of seven per cent overall. Same-store sales increased five per cent in the U.S. and 12 per cent internationally.
Ace Fourth Quarter Improves
Ace Hardware reported total revenues of $859.3 million for the fourth quarter, an increase of $59 million or 7.4 per cent from the same period last year. Quarterly net income was $20.6 million, an increase of $8.2 million or 65.1 per cent, compared to $12.4 million in 2009. For the full year, total revenues were $3.5 billion, an increase of $73.5 million or 2.1 per cent from fiscal 2009. Net income was $75.1 million for fiscal 2010, a decrease of $20.6 million or 21.5 per cent, compared to $95.7 million in fiscal 2009.
Henkel Up In Fourth Quarter
Adhesives producer Henkel reported fourth-quarter net income of €254 million com-pared to €177 million last year. Sales for the German-based company were up 11.5 per cent to €3.73 billion from €3.35 bil-lion a year earlier. For fiscal 2010, Henkel posted a profit of €1.14 billion on revenues of €15.09 billion.
RONA Reports Increased Sales
RONA inc.’s total sales increased 2.6 per cent in 2010, even though its same-store sales remained flat. However, its commercial and professional market division experienced double-digit growth. Its net earnings of $143.2 million were up 3.6 per cent over 2009. “Again in 2010, RONA demonstrated its agility and ability to emerge stronger from the face of challenges,” says Robert Dutton, its president and CEO. “We are now at 19 per cent market share, up from 17.5 per cent at the beginning of the year, and on target to reach our 20 per cent objective by the end of 2011.” ❖
HOME IMPROVEMENT RETAILING • April 20118
COMPANY SYMBOL OPEN HIGH/LOW 52-WEEK INDEX
Canadian Tire Corp. CTC 61.25 68.93 – 50.86 TSXDow Chemical Co. DOW 37.31 39 – 22.422 NYSEFastenal Co, FAST 63.75 69.75 – 44.64 NASDAQGeneral Electric GE 19.77 21.65 – 13.75 NYSEHome Depot HD 37.78 39.38 – 26.62 NYSELouisiana-Pacific LPX 9.10 13.44 – 6.25 NYSELowe’s Cos LOW 26.64 28.54– 19.35 NYSEMasco Corp. MAS 12.91 18.775 – 9.94 NYSENewell Rubbermaid NWL 18.89 20.38 – 14.14 NYSEOwens Corning OC 36.25 37.7 – 23.05 NYSERichelieu RCH 30.03 31.75 – 21.55 TSXRONA RON 13.52 17.73 – 12.65 TSXSears Canada SCC 19.71 22.427 – 17.743 TSXSherwin-Williams Co. SHW 84.85 86.77 – 66.13 NYSEStanley Black & Decker SWK 76.11 77.47 – 48.76 NYSETaiga TBL 0.93 1.56 – 0.9 TSXTrex TREX 31.47 34 – 16.38 NYSEUSG Corp. USG 15.88 25.59 – 11.34 NYSEWal-Mart Stores WMT 53.08 57.898 – 47.77 NYSEWest Fraser WFT 58.64 62.86 – 32.18 TSX
As of April 18, 2011
9 Go to page 3 CONTENTS
HOME IMPROVEMENT RETAILING • April 2011
priVate wealth
Fee-only Financial Planning
goal of the client-advisor relationship. True fee-only financial planning ensures that the planner and their company are compensated solely by agreed upon fees paid by the cli-ent. This means there are no hidden costs, third-party financial motivations, or kick-backs – the planner represents the client and only the client. Objectivity is the name of the game, which is important in a global financial market that can be fraught with conflicts of interest.
Fee-only financial planning should not be confused with fee-based investment man-agement, where an investor pays an annual fee to their investment advisor based on a percentage of their investments. A fee-based approach is simply a way to pay your invest-ment advisor – and even then, there is a fierce debate as to whether this is in the best interest of the investor or the advisor.
Fee-only financial planning fees are charged for comprehensive financial advice and are based solely on time. They typically take the form of an annual fee ranging from $2,000 to $5,000 and upwards depending on the mandate and whether tax preparation is included. They have nothing to do with a client’s income or assets, meaning every cli-ent is just as important as the next.
That said, those with a high net worth probably have the most to gain from work-ing with a fee-only financial planner because
the economies of scale are that much more compelling relative to the cost of the ser-vice. In essence, the return on investment can be that much greater. Compared to the typical fees on a $1 million investment port-folio, which typically range from $10,000 to $20,000 a year, even at $5,000 a year, fee-only financial planning is a bargain.
No products are sold by a fee-only finan-cial planner or their company. The advice and potential products are kept entirely separate, so most clients who work with a fee-only financial planner will also have a separate investment advisor and insurance agent.
No Integration
Some people are reluctant to add another advisor to their repertoire. They already meet with their investment advisor in February to make their RRSP contribution. They meet with their accountant in April to get their income taxes completed. They have an insur-ance agent who has arranged their insurance policies. They have a lawyer who updates their wills and powers of attorney from time to time. The problem is, even though these various professionals may be great at what they do individually, collectively, there is no integration of their recommendations.
Fee-only financial planners are com-prehensive advisors who can help you fit together all the different pieces of your financial puzzle. They also have a short list of third-party professionals who they can refer you to if you need to purchase a product as a result of their recommenda-tions – without accepting a kick-back or commission. In most cases, the third-parties discount their fees for the client, in lieu of a referral fee that might otherwise be paid to the planner. In some cases, the discounts put more money back in a client’s pocket than the cost of the fee-only financial planner’s fee in the first place.
It is estimated there are 150 fee-only financial planners in Canada. That is 150 individuals, not 150 companies. In con-trast, there are 17,000 Certified Financial Planners (CFPs). ❖
Jason Heath is a certified financial plan-ner for E.E.S. Financial Services Ltd. in Markham, ON.
Financial planning is not just about investments and insurance – and it is definitely not doled out by your father’s door-to-door salesman type
of financial advisor any more. There is a new age of financial planning that is emerg-ing as the gold standard in light of the 2008 financial crisis and a decade of disappoint-ing stock market returns around the world.
Financial planning is generically defined as the integration of all aspects of your fam-ily’s finances, including retirement, tax and estate planning, coupled with investment, and insurance strategies. It is occasionally a value-added service provided by banks and investment firms, but, in some cases, it is nothing more than a loss leader for their lucrative investment management business.
Investment Advice
For most Canadians, investment advice is the only real financial advice they get. Even tax planning advice is elusive, given that most people’s accountants simply do their tax return and nothing more.
An elite style of financial planning – called fee-only financial planning – brings the integration of all areas of personal finance to the forefront and makes it the sole
By: Jason Heath
9
11
11HOME IMPROVEMENT RETAILING • April 2011
Go to page 3 CONTENTS
Interactive e-books, mobile shopping carts, and more virtual experiences outside of gaming will be some of the emerging tech-nologies to watch for in 2011 and beyond,
says PwC’s Technology, Information Communications and Entertainment & Media (TICE) group.
“The future of consumer technologies resides in borderless digital communication designed for people who are looking for “feel good technologies,” as well as faster and more secure information they can access any-time, anywhere,” says Dr. David Jacobson, director of emerging technologies at PwC.
TransformationalTechnology changes will either be trans-
formational, which builds on prior innova-tions, or they will be disruptive, by being so completely different and new that they will very quickly influence and change the lifestyles and spending habits of consumers, says Jacobson.
Key emerging tech trends to look out for in 2011 (and beyond) include:◆ Wi-Fi Direct – This convenient new
way for devices to communicate directly with each other without having to con-nect first to a conventional Wi-Fi access point bypasses traditional Wi-Fi net-works and provides numerous device-to-device applications. Printers, scanners, and handheld devices such as phones and gaming consoles can now share and synch securely within a short distance of each other, for instance, exchanging files and videos at speeds more than 25 times faster than other options on the market.
◆ Next Generation e-Books – The huge interest in and use of mobile tablets or ‘pads’ is driving new multimedia appli-cations. Current e-books transform the conventional paper format into an elec-tronic book, but the next generation will go even further, providing an enhanced and interactive audio/visual experience for the reader through cross-linking of the e-book to other digital forms, includ-ing videos, social media, and web cams.
◆ Mobile payments going mainstream – Mobile commerce is becoming quicker and more secure for con-sumers and businesses alike, making it easier to shop and order secure-ly, particularly when making smaller transactions. Secure and quick-click checkouts from a mobile device will give consumers the ability to make on-the-go payments and to stay logged in while they surf for more goods to buy.
◆ The mobile shopping cart – Grocery stores will provide suggestions, advice, and check-out options to grocery shoppers using mobile devices including in-built screens on shopping carts that remember your last visit, know your preferences, and provide information and offers on what’s in stock, including row informa-tion and recipes. The relationship between consumer-packaged goods suppliers and grocery retailers and how they market to their customers will also evolve.
◆ VoD in-your-hand – Recently released Advanced Television Systems Committee (ATSC) standards have jump-started mobile and personalized video-on-demand (VoD). This IP-based technology will let you receive your choice of movie entertain-ment whenever you would like it, wherever you want it, complementing cellular, WiFi, and WiMAX channels and avoiding video-traffic overloads on these networks.
◆ ‘Feel-good’ technology: gesturing and haptic feedback – The desire for greater physical freedoms in controlling devices has led to gaming consoles with-out handheld controls that rely purely on interactive 3D visuals, sensors, and gesturing. A combination of gesturing and physical feedback will have applica-tions beyond gaming. The possibility to “reach” into the computer display and “grasp” electronically-generated objects,
feeling their size, shape, and texture will enhance education; for instance, teaching medical students to feel the difference between healthy and diseased organs.
◆ The mobile cloud – Accessing software, systems, and applications in ‘the cloud’ began with software as a service (SaaS) and is quickly accelerating as confidence grows. Companies are now using time- and security-critical solutions outside of their firewalls. Mobile computing is an impor-tant new impetus for use of ‘the cloud’ and versatile mobile devices are becoming pervasive ‘thin clients’ ideal for accessing cloud solutions, anytime, anywhere.
Digital Channel“The digital channel has already touched
all industries and is dramatically changing the ways in which consumers buy and relax. Companies have to keep pace with this rapid development of new technolo-gies and re-examine their business models so they can compete in the new mobile Internet,” says Jacobson. ❖
Mobile ShoppingCarts Coming
Frontlines
Photo courtesy of Media Cart Holdings, Inc
12 Go to page 3 CONTENTS
RONA Inc. has a new Responsible Procurement Policy (RPP). This policy encompasses the specific procurement policies already
introduced by the company for certain prod-ucts, including the wood products procure-ment policy and the policy ending sales of synthetic cosmetic pesticides. This new policy is an update of the Responsible Buying Code introduced in 2002.
Policy GoalUnder the new policy, the goal is to
ensure that products it sells:◆ Have the least possible impact on the
environment ◆ Are the result of the labour of workers
whose rights are respected ◆ Contribute to social and economic devel-
opment locally and regionally in Canada In order to thoroughly cover the issues
relating to responsible procurement, the development of its policy is based on rigor-ously identified principles based on analysis of best practices around the world and in consultation with recognized stakehold-ers. These stakeholders included ethical investment funds, special interest groups, and experts specializing in the social and environmental sectors, as well as suppliers.
The resources to implement this pol-icy will be devoted first and foremost to strengthening its employees’ and suppliers’ capacity to better understand the principles of the policy and participate in its implemen-tation. The strategy for implementation will be based on dialogue with front-line suppli-ers who will in turn be invited to do the same with their own subcontractors. In this way, it hopes to generate a commitment from all parties to continuously improve their social and environmental performance. Suppliers’ ability to comply with the policy will be a decisive factor in its business relationships.
The fundamental principles of the RPP are based on respect for the same environ-mental, social, and economic principles that determine the company’s approach to sustainable development.
With regard to the environment, the objective is to minimize the impact of its products and activities on the environment. To do this, RONA has adopted the life cycle assessment approach as an environmental platform, a process that measures envi-ronmental impact of products throughout their entire life cycle, in relationship with five key environmental issues agreed on by international scientific consensus: ◆ Climate change ◆ Water quality and supply ◆ Human health ◆ Quality of ecosystems ◆ Depletion of resources
With regard to social aspects, the impor-tance of promoting and respecting the rights of workers in any country where it conducts its activities or from where its products are supplied is being recognized. The prin-
RONA Updates Procurement Policies
GoinG Green
cipal references for this purpose are the International Labour Organization (ILO) Conventions, the applicable sections of the Universal Declaration of Human Rights, and the national laws of the countries where suppliers are located.
As a bare minimum, RONA regards respect on the part of its suppliers for the Declaration on Fundamental Principles and Rights at Work recognized by the ILO in 1998: ◆ Freedom of association and the right to
collective bargaining ◆ Freedom from compulsory labour ◆ Effective abolition of child labour ◆ Non-discrimination in employment
RONA also regards as essential compli-ance with other international labour stan-dards, recognized as relevant by interested parties and stakeholders:◆ Respectful labour relations ◆ Occupational health and safety ◆ Harassment or abuse ◆ Non-excessive working hours ◆ Wages and benefits ◆ Rights of indigenous peoples
Long-term ViabilityWith regard to social and economic
aspects, RONA intends to continue playing an active role in Canada’s economic development and has, therefore, adopted an approach which gives preference to local and regional suppli-ers and contributes to their long-term viability.
Given its broad scope, this policy will be implemented gradually. In the first phase of implementation, its will target its own eco and eco-responsible products, products sold under its private and controlled brands, and products imported through its Shanghai office or other intermediaries.
A progress report on implementation of this policy will be included in the com-pany’s annual report. The policy itself will be reviewed every three years. ❖
HOME IMPROVEMENT RETAILING • April 201112
13
Female shopper
Go to page 3 CONTENTS
From Mel Gibson’s starring role in ‘What Women Want’ to Dr. John Gray’s book ‘Men are From Mars, Women are from Venus,’ the mes-
sages have been out there for a long time. Communicating effectively with women is an art, and it will do things for your business.
Connecting with your female customers may be more important now than in the past.
Women control the majority of spend-ing in their households; they purchase the majority of new cars, computers, and home electronics. With $2 trillion dollars of earn-ings and a $3 trillion dollars of spending, you need to consider your female client.
How is your female customer different in the decision-making process than a male? Both are looking for a combination of knowl-edge and trust, yet men and women develop trust in different ways. Men make decisions based on few facts and tend to take action independently. Women need more informa-tion up front and tend to be slower to make a decision. She needs to process the informa-tion and feel like she’s been listened to; she’ll want to ask her friends and family about their opinions.
If you want to increase your sales among female buyers, consider the following:◆ Listening skills
Women are much more sensitive to your tone of voice than a male customer. If you’re stressed and tense, your words can unknow-ingly become clipped, curt and short. Your female client will tune into your tone and judge your business negatively because of the way you talk to your employees or other customers. This is called ‘anti-marketing.’
Women are more sensitive to eye con-tact, body language, and gestures. Women need sustained eye contact more than men; usually 20 to 30 seconds at least to feel you’re listening to her.
Focus on her during your presentation. Listen with your eyes, body language, and tone of voice. Listen to her story. If you’re busy looking at paperwork, she will feel you’re not listening and will not give you her trust. Direct your conversation toward her, but be sure to ask her spouse or significant other
about any concerns she or he may have. As she tells you her story, she’ll be giving you clues to her concerns, to her wants, her goals, and her desires.◆ Image is everything
Women are detailed oriented. From the very beginning, she needs to connect and for you to make her feel special. You cannot ever redo a bad first impression. If you have a store location, the front office area needs to be warm, inviting, clean, and neat. Your team needs to wear professional clothing. Women notice details! Look at the women’s restroom: It should be her restroom.◆ Don’t put down the competition
When communicating with women, it’s important to remain neutral when discussing your competitor. Never speak badly about another business. Instead, talk about the benefits of your products and how they will best suit her needs. Talk about your products with a positive focus on how they will meet the needs of her family. Women often have two main passions: family and making the world a better place. How will your product save her family money? Keep them safer? Protect the environment?
◆ Emphasize the benefit to the buyerWomen look for the perfect answer. It’s
in her nature; she wants to be certain she’s making the right decision. Help her make the right decision by discussing why it’s best she move on this decision right now.
Respect her time; don’t keep her wait-ing. Remember the phrase: “People count up the faults of those who keep them wait-ing.” This is especially true for women. Women are multi-taskers. If you keep a woman waiting, she’ll be thinking of all the other things she needs to do and will be more stressed than the majority of your male clients.
Another phrase to remember: “People shop up.” Most people want the best treat-ment they can afford. Women especially like to buy the best they can for their family’s needs. Provide her with her options, but do tell her what you feel is the best for her situation.◆ Expect to follow up
Many times, sales are lost with female customers because of a lack of follow up. When men say, “I’ll think about it,” it usu-ally means they’re not interested. When women say, “I’ll think about it,” it means she truly will think about it!
Ask permission to follow up within a week and answer any questions she may have. From there, she will direct you to what she wants. She’ll either need more time, more information, want to buy from you, or have decided on another prod-uct. Demanding, insistent salespeople will often lose the sale to the female client. She doesn’t want “to be sold!”
If you focus your business on the needs of the female customer, you will have her loyalty, trust, and referrals. Men have needs, but women need much more. Remember these three things:◆ If you don’t meet the needs of your
female customers, they will leave you.◆ If you just meet their needs, they’ll stay.◆ If you exceed their needs, they will refer
their friends, family, and colleagues. ❖
Dr. Rhonda Savage is an internationally acclaimed speaker and CEO for a prac-tice management and consulting business
(http://www.dentalbusinesstools.com/).
‘What Women Want’By: Dr. Rhonda Savage
HOME IMPROVEMENT RETAILING • April 2011 13
14 Go to page 3 CONTENTS
© 2011 JELD-WEN of Canada, Ltd. Reliability for real life is a trademark of JELD-WEN, inc., Oregon, USA. All other trademarks are the property of their respective owners.
Build confidence with homeowners who demand quality products and reliable
performance. JELD-WEN windows and doors offer superior selection in designs, materials
and value. Perfect solutions. Outstanding customer satisfaction. Choose JELD-WEN.
To learn more about our products and services, visit www.jeld-wen.ca.
Qua l i t y P roduc t s and P remium Per fo rmance .
59160 JELD-WEN Home Improvement Retailer.indd 1 11-04-18 8:59 AM
15
15HOME IMPROVEMENT RETAILING • April 2011
Go to page 3 CONTENTS
FEATURED ARTICLE
When I first took over, it was more your ‘average Joes’ just coming in and buying their basic hardware. I switched the store to also attract contractors in the renovation market. At the start, it was probably one per
cent contractor, now it’s about 85 per cent DIY’ers and 15 per cent contractors.
There is a lot of growth in Neepawa right now. We have new housing developments and condos going up. We have a big hog pro-cessing plant that brings in 300 immigrants a year to work. It is very diverse and growing, but it is growing at a controlled pace.
Before buying the store in 2008, I had a good idea of the market and I volunteered in the store for two months before I officially took over. Many customers did not real-ize we had tubs and other specialty items, which we could special order, because they couldn’t see it. So a light bulb went on – we were missing out on something here.
So when I bought the business, I took a 400 square-foot dirt room that was full of stuff from the 1980s and converted it into a bath centre with displays of tubs and fau-cets. In one year, out of that 400 square feet, I doubled my sales in plumbing. We also do quite well in trim, moulding, electrical, and seasonal. Those are the main areas.
Eventually we are going to move into lumber. Right now, we are just trying to
find the right land. There is no doubt that I am going to outgrow this building probably within five years.
Basically, it is traffic flow that really brings in sales. With Home Hardware we have our flyer program which is huge. I started up a 10 per cent off customer appre-ciation day the first Tuesday of every month and it has worked very well. I also think we have been successful because I do not put myself above anybody else. If I need to mop floors then that is what I do. My staff have as much say as I do. Valuing their opinion gets the buy-in from them. You cannot for-get about that.
My background is in human resources, so I understand how to work with people. At first, many people told me I had no retail or hardware experience and that I was destined to fail. What they did not realize was that the hardest part for owners taking over a store is dealing with people and doing HR. I did not have to think about, for example, doing payroll. It just came naturally and I could concentrate on just learning about the products and everything else.
How They’re EnsuringTheir Future Prosperity
Patrick Guilbert, Owner
Neepawa Home Hardware
Location: Neepawa, MB
In business: Since September 2008
Size: 5,500 square feet + 3,000 square-foot garden and sea-sonal area
Staff: 11
Retailers
CANADA’STOP
F rom a former HR professional to a senior executive in hardlines, Home Improvement Retailing’s Top Retailers for 2011 all share similar characteristics.
For the most part, they are customer- and staff-focused intent on communicating with the two essential elements necessary to build their businesses.
They are also adaptable, ready to respond to the needs of their markets whether it is identifying a niche for bathroom renovation products or making deliveries to clients prospecting for gold.
They operate big boxes and single stores. Some have been around for two decades while oth-ers have been in the business only a short time, but have already expanded to own and operate multiple stores.
In the interviews that follow, we go coast to coast from the urban areas to a reviving community in the Yukon to find out what these top retailers are bringing to the table as well as how they’re coping with today’s challenges to ensure the future prosperity of their business.
16
HOME IMPROVEMENT RETAILING • April 201116
Go to page 3 CONTENTS
FEATURED ARTICLE
I think I have opened some eyes regard-ing the recruiting process. When looking for prospective owners, there are a lot of people out there that aren’t directly in the home improvement retail industry, but could still do a wonderful job.
My background has been primarily as a senior executive with General Electric and BPB Westroc Industries. While working with these companies I quickly learned the success of your business depends on a strong vision and how well you take care of your customers. This is certainly not a one-person job; you must have a strong group of dedicated leaders and staff that go the extra mile because they love to.
When I began the journey of acquiring five TIM-BR Mart stores two years ago, I was looking for stores that had a good his-tory of success in their local markets with both contractors and consumers. In addi-tion, I wanted great staff with a real ‘can do’ attitude. I also needed a leader with top-level experience to guide the stores. This is when I brought Morley Sinclair on board as general manager. He came with 38 years of store experience inside and outside of TIM-BR Mart.
Today, we have five stores across Eastern Ontario. Our total staff level depends on the season and store location. Cottage country can get very quiet during the winter months, especially during hunting season.
Typically, our stores have a 60/40 split between contractors and consumers. That may swing towards contractor where we have some installers in specialty areas such as flooring, kitchens, and bathrooms. Our Pembroke store has a very strong flooring business which helps our other stores less
established in that sector. A strength of hav-ing a group of stores is to share ideas such as this.
In terms of new initiatives, we have completed a major re-merchandising of four stores in the past year and will finish the fifth shortly. The stores are all bright, mod-ern, and state of the art. Customers and staff alike have welcomed the changes and purchases are moving in the right direction. Further, Sinclair has worked very hard with management to focus on health, safety, and great housekeeping. Finally, a management training initiative is in full flight to prepare our team for the challenges ahead as we continue to grow.
Business over the last two months has not been exceptional, but there are better signs ahead as contractors are pushing for estimates on new projects and in-store traffic is picking up. One store, in particular, had a very encouraging start to their year. Some good weather will always help as well.
We’re a privately owned business that’s grown from building supply over the years. We’re also a group of companies – one being commercial construction, the other steel fabrication, and, at one time, we were in the cabinet business as well.
The housing market has been good here of late. Our business is two-thirds contrac-tor, one-third retail. We really are a con-tractor-oriented business. That has been our strength. We understand the construction business front-to-back.
I think we excel in knowing the resi-dential contractor business both in single-family, duplex, and multi-unit. In the last few years, we have supplied a number of small, medium, and large apartment build-ings as well.
Because we have a steel-fabrication side,
we have our own engineers on staff that can supply home plans. We have almost a one-stop shop here, from plans to materials. We also own two subdivisions, which we develop but do not build. We partner with some of our contractors to sell them land so that they can build homes.
One of the changes that came with join-ing BMR was our ‘Inspiration Boutique,’ which offers gifts, small furnishings, etc. It does not tie in with contractor business, but it has enhanced our business.
For us, it is all about communication and knowing our contractor customers – their jobs, anticipating what they need and when, having the materials they want in stock, and providing on-time deliveries. To forecast what resources they’ll need, we sit down and have very candid discussions with them to make sure we know what they are doing, but also to let them know what we are doing. Networking and communication are keys to our success.
We pride ourselves on being flexible, on reacting when new products hit the market. We embrace trends and educate our con-tractor customers. Some other keys to our success are training, product knowledge, and having experience among our staff. For example, in 2009 we introduced ICF (Insulated Concrete Form) products, which was new for us, but we gathered all the information we needed and partnered with the right supplier. We then brought that information to our contractors and it has been a success story for us.
We see 2011 at or better than 2010. We are not an industry town, so we did not see too much impact from the downturn.
I have been in retail for about 32 years, 27 years in retail management. Our biggest success is our customer service. With our staff, we have built a strong culture right from day one. We build relationships with customers so they keep coming back. They
Brian Macey, Owner
TIM-BR Mart Stores
Locations: In Havelock, Kinmount, Harcourt/Gooderham, and Pembroke, ON
In business: Owner began acquiring stores two years ago
Size: Ranging in size from 1,000 square feet to 10,000 square feet
Staff: Ranges from 42 to 50
Rick Truant, Store Manager
Lowe’s Windsor
Location: Windsor, ON
In business: Since January 2009
Size: 117,000 square feet
Staff: About 170
Danny Neuffer, Sales Manager
Sherwood BMR
Location: Charlottetown, PEI
In business: More than 25 years
Size: 14,000 square feet, 2-acre lumberyard, 30,000 square-foot warehouse
Staff: 25
17 Go to page 3 CONTENTS
Your trusted building supply partner Contact your Business Development ManagerWest Alan Schoemperlen (204) 771-1509BC Les Gillespie (250) 469-4744Ontario Bruce Holman (647) 228-1414 Quebec Robert Legault (514) 208-4158 Atlantic Sandy Welsh (902) 471-7113 Go to castle.ca/freedom
At Castle, it’s all about leadership – it’s the best in the industry. They are proactive and forward thinking. They believe in the freedom of the independent. They provide great programs and don’t force anythingon you. No forced flyers, no forcedmarketing.
You’re either independent or you’renot. At Lind Lumber, we only sell whatwe want to sell.
Chris Willsie, Lind LumberDorchester, OntarioCastle member
Does your buying group give you the
freedom to succeed?
& hardware®
18
HOME IMPROVEMENT RETAILING • April 201118
Go to page 3 CONTENTS
FEATURED ARTICLE
tell their friends and family and that is how we grow business. The store is a big place, but it is all about communication. As long as you are communicating with your staff and there is a trust factor there, it works.
We have such a diverse demographic down here. We have a lot of DIY’ers and a good contractor base. We are finding a lot more DIY’ers because products are becoming so much more user friendly. The innovations are really making that sector bigger. You do not need somebody to put in your vanity anymore, for example. There is more information available on how to do it too.
We are always getting new, innovative products. We have a great merchandising team in Toronto who are always out and in front of the different trends. For example, the new patio sets, the colours, the bar-beques, they are unbelievable. Those items are becoming multi-functional and they are very competitively priced. It is all about moving your entertainment outside for the summer to get people excited about it.
Our garden centre is state-of-the-art. It is beautiful. It is probably the shining little star in the store. It is a small shop or boutique service in a big box format. Our customer service is always there and the quality of products is beautiful.
Statistically, even with higher unemploy-ment in Windsor lately, our business keeps growing so we are doing something right. They like what they see and they are tell-ing their friends. I think 2011 is going to be a great year, definitely an improvement over last year. We are getting a little more consumer confidence back overall relating to larger investments, such as kitchens, whereas two years ago they might not have made that investment. I think consumer con-fidence is coming back.
We have been with RONA now for 2½ years, but have been in this location for
almost 25 years. I have owned the business for six years. At last year’s Spring Show, we won the ‘Builders of Excellence Award’ from RONA, which I’m proud of.
At first, we were a 5,000 square-foot retail store with no real warehouse at all and only about 2.5 acres, but RONA has helped us with the planning of our expan-sion.
We have traditionally been a contractor yard attracting knowledgeable builders, but since the renovations we have attracted a lot more of the DIY’ers, particularly women, an exciting new group for us. We were tra-ditionally about 80 per cent/20 per cent con-tractor/retail and now it is closer to 60/40, coming up to a 50/50.
We had big growth last year. It was our best year ever. We were up more than 40 per cent in sales last year in a declining market. It’s traditionally been about lumber and forestry up here, but that’s been shrinking. I was definitely concerned about the economy and wanted to grab more of the retail mar-ket, not just the contractor. Now we are attracting a whole new group who bring their projects in to us and we help them from beginning to end.
I think customers are appreciating our eco-friendly products. RONA’s goal is to ensure that the products sold have the least possible impact on the environment through a rigorous life-cycle assessment by a recognised third-party. We are proud to be a part of that program. We also have a recycling program for paints, batteries, saw blades, etc.
Our customer service is most important to our business. We will go out of our way to do whatever if takes, particularly with our contractor customers. We will work strange hours or go to our competitors to get them the right product. We are also looking to give them the best possible shopping expe-rience. We are investing in our staff, our young leaders. We have a young leader in our group. And we are huge into community involvement.
For 2011, it is going to be a challeng-ing start, but we will gradually increase sales. Success is going to depend a lot on consumer confidence and job creation. Consumers are all prudent and thus selec-tive in their spending right now. They all want value. So we are trying to add the right product mix and loyalty program, such as our popular RONAvantage pro-gram, to deliver that.
The toughest challenge right now is the weather. We have more snow this year than we have ever seen. We still count on our builders a lot and nobody is really doing any building or outdoor projects. So it has been slower, but we are taking this time to
increase our staff awareness, training, doing a lot of store re-sets, that kind of stuff. So I think when the weather co-operates, we will be ready.
Our average everyday customer comes in for solutions to their problems on everyday things, whether it’s a toilet that is not work-ing or electrical or automotive problems. They do shop around, but I would say 60 per cent come in to solve immediate problems. About 30 per cent would be contractors and 10 per cent would be tourists, since we have a lot of lakes and cabin owners from Regina, Saskatoon, and even all the way from Calgary.
This business has moved locations three times, originally starting out in Watson, SK, and then over to La Ronge. It’s a family business with my wife Tammy’s mom and dad working it before. My wife and I bought it from them and have been partners for about 18 years now.
While so many stores have gone away from special orders and layaways, we con-tinue to cater very strongly to all that. In other words, if you want it, we are going to get it for you. We’re like that really old gen-eral store, except expanded and modern, that carries everything from A to Z. We carry live pets, for instance, sporting goods, trap-ping supplies, toboggans, fire arms, crafting, knitting, confectionary, paint, toys. There are no boundaries, which I think is rare these days.
A key to our business is the daily deliver-ies we do. We are running stuff to the airport for the trucking industry; we supply other stores in the north; we deliver to the aviation base downtown through the summer for the camps. So if anybody wants something in town, we deliver.
Business has been a bit down over the last year due to the recession and the rising price of gas and food. It has been a direct hit. And it has been a long, cold winter so
Don Kirzinger, Co-owner
True Value/V&S
Location: La Ronge, SK
In business: 35 years
Size: 16,500 square feet + 4,000 square-foot warehouse
Staff: 9
Rod Bellmann, Owner
RONA Prince George
Location: Prince George, BC
In business: Almost 25 years
Size: 12,500 square feet + 10,000 square-foot warehouse
Staff: 30 to 45
19 Go to page 3 CONTENTSFull Page: 8.125" wide x 10.875" high - v.18 - September 23, 2009
(Home Improvement Retailing)
As seen on Extreme Makeover… As seen on Extreme Makeover… Low maintenance aluminum fencing that looks as good as it did the day you installed it… for years!
KitQuickKitQuick ®
Aluminum Fencing System
10’
8’
QuickStepQuick ®
Aluminum Stair Stringers
White
Yard Bronze
Black
QuickSnapQuickAluminum Columns
®
Never RustPowder Coated AluminumTread Increments from 1 to 9 Steps
top view
Three piece powder coated column wraps around existingposts or can be used instead of wood posts.
Aluminum RailingAluminum RailingWHITE YARD BRONZE TAUPEBEIGEBLACK
NEW! NEW!
Contact: Ernie Couillard, VP Sales and Marketing(303) 681-3104 - [email protected] - regalideas.comContact: Ernie Couillard, VP Sales and Marketing(303) 681-3104 - [email protected] - regalideas.com
20 Go to page 3 CONTENTS
To inquire about what TruServ Canada can do for your business,contact a member of our Sales & Business Development team:
Or call Toll Free: 1.800.665.50851530 Gamble Place, Box 6800, Winnipeg, Manitoba R3C 3A9
Phone 204.453.9511 Fax 204.477.0455 www.truserv.ca
Bonnie BirolloDirector, Sales
Western Canada1.587.434.5880
Serge VézinaDirector, Sales
Eastern Canada1.514.220.2283
Wilf GerhardtNational Business
Manager1.204.453.9590
Dave LeonzioNational Growth
Manager1.204.453.9594
The NEW Canadian Solutionfor Hardware DistributionWe are committed to helping you grow your business; we’ll work with you, YOUR way.
We are Team Canada... think about it...A solution for your business.
It’s SimpleAt TruServ Canada there are no long term contracts or investments. We want you to invest in your business. With no restrictions or mustcarry categories, you can buy what you want.
The Right ProductsOur distribution centres, in Winnipeg, MB and Kitchener, ON, carry over 60,000 skus of the best products from the best vendors. We’ll deliver right to you, on a weekly basis.
Leveraging $6 Billion in Purchases to offer Low CostsWith a low price guarantee, you will find Big Deals at big savings foryour store. Our easy to understand, low price guarantee is the best inthe industry.
In-Store Dealer ServiceTruServ Canada is proud to have the largest Field Team in Canada, dedicated to Dealer service. We have experience, knowledge, and retail information to assist with your front end.
Home Improvements Mar Ad_Layout 1 11-04-14 4:24 PM Page 1
21
21HOME IMPROVEMENT RETAILING • April 2011
Go to page 3 CONTENTS
FEATURED ARTICLE
that has affected seasonal, but I’m not too worried about it. As a general feeling, we are just coming into that bottom dip and we are just starting to climb out of it.
For us, the challenge that I see is just making sure we have our basic stock at all times, so dealing with freight and delivery dates internationally or from overseas is an issue. You need your basic products in the store, especially for the younger generation, because it they don’t find it, they’ll pull out their iPhone and get it the next day on ebay or Kijiji.
And I think local support for business is coming back. I think people are starting to realize, especially the younger generation – because I hear it all the time – that it is such a pain in the neck to go to a box store and try to find something or get answers fast. When boxes came in, you ‘were crazy if you didn’t buy from there; it’s so much cheaper and such a selection.’ Now there’s more support for local businesses.
Situated between York region and Toronto, we have a very diverse customer base that covers a wide range of demographics. The store has a high number of contractors, plus a mix of do-it-yourself and do-it-for-me customers.
Overall, the store tends to do well across all categories. Specifically, we have excelled in flooring, appliances, and specialty. In addition, our off-shelf products tend to do well due to the high number of contractors who come into the store to purchase their project completers.
Our store has a bit of a unique layout with the storage and organization and appli-ance sections located at the front of the store. Another interesting point to note is the traffic pattern of our customers. We have a large contractor base so we are very busy in the early morning, but we also see a lot
of traffic at both lunch and dinner with our DIY customers.
Providing consumers with an outstand-ing customer experience that exceeds their expectations is a must for success in retail, which means constantly reviewing all areas of the store and business to look for ways to enhance this experience. One way we do this is through our weekly and daily store walks to ensure that we are in-stock and ready to serve our customers. Daily, there is also a store standards walk to review the presentation of the store.
At the heart of any shopping experi-ence is customer service and we emphasize our ‘Customers First’ program with all our associates. Communication is also an important part of the customer experience. This includes communication from the store leadership team to all associates and from the store as a whole to our customers.
So far, 2011 has been a successful year for our store and our business as a whole. Consumer confidence continues to rise and we are seeing more consumers investing in their home. The greatest shift we have seen with our customers is that they are far better educated about the products and projects they want as they have done a lot of research before coming to the store.
Consumers are still very careful as to where they invest their money. Therefore, it will be important to continue to show consumers the value of investing it in their home. This includes showing the benefits of all projects from simple repairs, mainte-nance, and updates to larger renovations and smart upgrades to lower the cost of operat-ing the home.
I grew up with the lumber business and local saw mills. We originally started in 1975 in Dawson City with a portable mill
in the bush and, over time, it evolved into a retail lumberyard in 1980. Back then, there were no businesses in this community pro-viding this service. Dawson City is where the Klondike Gold Rush took place and when it was over, it became a very dormant community.
But our market is growing again. If you follow the stock market you’re aware that there is a major hard-rock gold opetration going on again near Dawson City and, in fact, the whole mining exploration indus-try is pretty active these days in the Yukon. We are seeing a lot of sales related to that. That industry is building core sheds, tent camps, wall tents, and large camps. There’s a huge demand for core boxes, a specialty item related to the mining industry, which we supply in conjunction with some local carpenters. We are anticipating a vibrant year because of the mining growth.
Geographically, we have always served a pretty large market. We run deliveries into Alaska, only 60 miles from the border here, and to our neighbouring communi-ties. We have about 10 trucks in total – pick-ups, tandem trucks, logging trucks that we use with our sawmill operation. We deliver up the Dempster Highway into the Northwest Territories frequently. It is not unusual for us to do a 500-mile round trip delivery.
It all goes back to providing service. If we want to sell the material, we need to be able to get it to where people need it. Logistics is a very big part of our business. We are at the end of the food chain here. We are 1,500 miles northwest of Edmonton which is where the majority of our materials come from. The process of acquiring mate-rials from our suppliers in Edmonton and building truck loads around those materials is sometimes quite challenging.
Our lumberyard is a full service yard with a full line of materials. The rough lum-ber and timber related to our mill certainly sets us apart. In Dawson City, we have a rather unique building code because of the economic umbilical cord attached to the tourism industry. The majority of the build-ings, particularly in the historical down-town core, have to be done according to a Victorian/European architecture. So we find ourselves dealing with materials specific to those requirements. For example, we sell a lot of wood siding, not vinyl siding; and corrugated metal roofing, instead of asphalt shingles.
Succession planning is certainly a chal-lenge for me these days, one that we are attempting to address. Fortunately, we enjoy our work and, for now, we are still capable of doing it, so we are not in a huge rush to abandon the ship.
Azmina Hussein, Store Manager
The Home Depot Dufferin
Location: Toronto, ON
In business: Since April 2005
Size: Just over 100,000 square feet
Staff: 160 associates
Bill Bowie, Owner
Arctic Inland Building Products
Location: Dawson City, YT
In business: Since 1980
Size: 3,500 square feet, five-acre yard, about 15,000 square feet of covered cold storage
Staff: 6
22
HOME IMPROVEMENT RETAILING • April 201122
Go to page 3 CONTENTS
FEATURED ARTICLE
Our market is very diverse. We have a fairly good agricultural market, substantially in the hog industry – chickens, creating barns, and such. I would say roughly15 to 20 per cent of customers, depending on the year, are agricultural. And then we have pretty close to 40 per cent contractor and 40 per cent retail customers coming in.
But we have had to change our focus
many times based on changing industries. For instance, the hog industry, a big part of our component, collapsed and we had to look at other ways of doing business. We went after a different segment, more on the retail side. We now have a fair bit of DIY’ers in the renovation market and contractors who are five-to-10-houses-a-year producers.
What we are particularly proud of is our ability to supply a house from the concrete stage to all aspects of product groups. And we recently added a cabin division to our company. We have a wide variety of prod-ucts but building materials is still probably the core for us. That is the engine that drives our business.
I am proud of my staff and all the departments. The key to success is your people. We are very fortunate to have, what I consider, the best staff in the area here – from our service team and delivery team to inside-store staff and cashiers. The majority of our staff understands the nature of what keeps a smaller business like ours competi-tive with some of the larger companies.
We try to make sure all staff are involved in key strategic decisions. For instance, when we decided to open a cabin depart-ment, that was an entire staff decision. I
think the way you get that from your staff is you need to pay fairly – we have a fairly extensive profit-sharing program so they can see the results of the decisions they make – and create a strong work culture that people can see.
We expect a modest increase in sales from last year, in the area of two to five per cent. We are forecasting a fairly positive market. We are very close to the American market though, so we are chal-lenged by the fact that a lot of manufac-turers are protective there. You can buy similar products in the States in certain categories for substantially less money than from Canada and some of those com-panies are moving into our market and actually setting up.
Finding good, new people is always a challenge too. Manitoba is a very strong market right now, so finding really good people is always a challenge. Not necessar-ily to replace staff, but as you are growing, you need people to fill new roles.
The increasing scale of inflation is also something we’re looking at closely. Based on pay increases and gas going up, people have higher costs which puts more pressure on us. You have to increase your sales to keep up with the costs of doing business. ❖
Carl Fast, Owner
Wm. Dyck & Sons Castle Building Centre
Location: Niverville, MB
In business: 60 years
Size: 20,000 square feet, on about 6.5 acres of land
Staff: About 35 to 40
23 Go to page 3 CONTENTS
Your trusted building supply partner Contact your Business Development ManagerWest Alan Schoemperlen (204) 771-1509BC Les Gillespie (250) 469-4744Ontario Bruce Holman (647) 228-1414 Quebec Robert Legault (514) 208-4158 Atlantic Sandy Welsh (902) 471-7113 Go to castle.ca/freedom
We trust Castle. They’re always thinking of ways to maximizeour profits. The new hardlines program isalready putting a whole lot more money in our pockets. The revolution has started.
Leigh Wilson, Wood CountryMcLean, Tisdale and Estevan, SaskatchewanCastle member
Is your buying group maximizing your profitsor theirs?
& hardware®
24 Go to page 3 CONTENTS
25
25HOME IMPROVEMENT RETAILING • April 2011
Go to page 3 CONTENTS
Thanks to RONA inc’s acquisition of its business, an important new piece is in place for TruServ’s 650 independent dealers, says CEO
Bill Morrison. “We believe our company today is starting to come together as a vision of ‘Team Canada’ – people from small town Canada who believe in hard work and com-petition, and ready to take on the best from the big city and the U.S.A.”
As part of the deal, which closed in November of last year, RONA acquired all of the issued and outstanding shares of TruServ. It includes its 400,000 square-foot distribution centre in Winnipeg, MB, and another 250,000 square-foot facility in Kitchener, ON, where it supplies more than 40,000 products (SKUs) with another 80,000 available on direct programs.
For its 250 stores under the True Value, V&S, Country Depot, and other specialized banners as well as 400 non-bannered stores, RONA will offer three different solutions – the RONA bannered dealer store, the TruServ specialized banner, or distribution services for dealers without banners.
Boost Of ConfidenceAs large-scale U.S. retailers continue to
enter Canada, the benefits that come with being a part of a “bigger” company, such as RONA, have grown significantly in impor-tance, Morrison says. The combined entity will boost TruServ’s purchasing power from $100 million to almost $6 billion and will draw on more distribution points across the country for greater logistical efficiency. Importantly, as well, the deal immediately provides TruServ dealers with a vital “boost of confidence,” he says, much needed as competition intensifies.
The transaction was welcome, not a shock, to Morrison, as it had already com-pleted a strategic review and developed the goal of moving to a new model with the TruServ Canada board in 2009. As the deal took form, he was also aware of the com-mitment by RONA to maintain the complete TruServ management team, including him-self as CEO, to grow the company.
There’s still a great deal of work ahead to make sure dealers are on track, he says, but it’s among many challenges the Winnipeg
native has tackled in the Canadian retail industry. Before joining TruServ as presi-dent and general manager in late 2004, Morrison served as vice-president of Home Outfitters under the Hudson’s Bay Company. His executive experience in the logistics and supply chain industries span all the way back to 1984 when he was vice-president and gen-eral manager for the Foot Locker and Randy River, divisions of Woolworth Canada.
Aligned CulturesExperienced in past acquisitions and amal-
gamations, Morrison says it’s important for the two sides coming together to have cultures that can compliment each other in effective ways. Although with roots in different parts of the country – RONA in Quebec and TruServ in Western Canada – both are 100 per cent Canadian companies with strong histories of supporting independent dealers.
That paralleling commitment to Canadian independents bodes well looking forward, he says, as more and more U.S. companies enter the market and as big boxes closely consider small- and mid-size stores, possibly in rural markets where TruServ dealers operate.
“The market today is served by very large companies and we think those that are
going to thrive and survive require scale and sophistication. It is critical that our dealers align themselves with a company that has the tools to compete,” says Morrison.
It has been a great fit, as well, because the physical facilities involved in the acqui-sition are distinct and do not overlap with any existing facilities, he says. By and large, about 95 per cent of TruServ dealers are in markets where there are no RONA stores close by. The distribution centres are also well-positioned to support one another since they are not in the same regions. “It’s now up to us and the RONA leadership team to find the right fit of products in each DC, which can best suit our customers.”
Maximizing Logistical Efficiency
As energy and freight costs mount, maximizing logistical efficiency by hav-ing distribution centres ideally located has become critical, Morrison says, especially with many TruServ stores located in remote parts of the country. “We constantly tell ourselves the days of sending three trucks, instead of one, to Kapuskasing, ON, are coming to an end.”
By utilizing both TruServ’s and RONA’s facilities and resources, the aim, Morrison says, is to mitigate freight costs for dealers by, for example, reducing the number of trucks and deliveries, implementing long-term logistics planning, and simply “think-ing in new ways about DCs.”
Among TruServ dealers, reaction has been positive, he says. Although early in the pro-cess, the impact of the transition is being felt. Thanks to the acquisition, TruServ dealers currently have access to an extra 5,000 hard-ware SKUs, LBM products, and RONA’s PRO-PULSE and FACTO control brands.
The added resources have also allowed it to “put more people on the ground to better respond to customer needs,” Morrison says. It now has four new district managers for Western Canada, two new in Eastern Canada, and two more to go for other parts of the country. By April, it will have doubled its field team from 2008. “We hope to leverage the ability to compete in Ontario, Quebec, and elsewhere. “We have a lot of work to do, but early signs are encouraging.” ❖
Bill Morrison, CEO
TruServ Canada Inc.
Team Canada Coming Together
the leaDers
26
HOME IMPROVEMENT RETAILING • February 2011HOME IMPROVEMENT RETAILING • April 201126
Go to page 3 CONTENTS
One thing the 24/7 plethora of home improvement shows now on television tells us is that the kitchen ranks as one of the top
areas of concern and interest.And, for you and you contractor custom-
ers, they offer perhaps the best source of profit.
Like everything, however styles come and go and it becomes part of your job to make sure your contractor customers are ahead of the curve when it comes to the latest in kitchen design trends. More than 100 designers who are members of the National Kitchen & Bath Association (NKBA) and who designed kitchens during the last three months of 2010, participated in an NKBA survey to reveal design trends in the marketplace for 2011. The results of this survey suggest there will be some changes in the direction that kitchen styles will take this year across the United States and Canada.
Here are the survey’s findings:
cent, while maple has risen to 76 per cent. Alder was used by 28 per cent of designers surveyed over the last three months of 2010, representing a sharp decline from the previ-ous year (39 per cent).
Dark FinishesDark natural finishes overtook medium
natural, glazed and white painted finishes to become the most specified type of finish toward the end of 2010. The percentage of designers specifying dark natural finishes rose from 42 per cent to 51 per cent and usage of medium natural finishes fell from 53 per cent to 48 per cent. Usage of glazed finishes fell from 53 per cent to 42 per cent.
Fewer designers specified white painted finishes: 47 per cent, compared to 49 per cent last year.
Light natural and coloured painted fin-ishes remained fairly common, rising only slightly from the previous year: 24 per cent to 25 per cent for the former and 24 per cent to 29 per cent for the latter.
Shake It Up Although the popularity of the Shaker
style began in 2009, it truly gained momen-tum in 2010. By the end of the year, it over-took contemporary as the second most pop-ular style used by NKBA member designers, which, given its versatility, may not come as a huge surprise.
Traditional is still king (76 per cent) among surveyed designers, but its popular-ity has fallen slightly from last year. Shaker-style cabinetry was specified by 55 per cent of survey respondents while 48 per cent went contemporary and 21 per cent used cottage-style cabinets.
Maple Is SweetAs 2010 began, cherry was the wood
species of choice in kitchen cabinetry for NKBA member designers, with 78 per cent of survey participants specifying it in their work (compared to 64 per cent who selected maple, the second most popular wood). This year, however, those numbers are nearly reversed and cherry has fallen to 71 per
Contractors Need To Know AboutYourKITCHEN TRENDS
27 Go to page 3 CONTENTS
Distressed finishes dropped significantly from a year ago, falling from 16 per cent to just five per cent.
A Place For Wine And Everything Else
Homeowners still like to keep wine, but they may be less fussy about stor-ing it at fine-tuned optimal temperatures. According to the survey, the inclusion of wine refrigerators seems to be on the decline, while unchilled wine storage is growing in popularity.
With kitchen organization a concern for most, other types of cabinetry options remain more common, but even most of these appear to be experiencing a drop in favour. Here are the stats:◆ 51 per cent of surveyed designers incor-
porated wine storage areas into their kitchens, up from 39 per cent
◆ Tall pantries declined in use from 89 per cent to 84 per cent
◆ Lazy Susans fell from 90 per cent to 78 per cent
◆ Fewer designers used pullout racks: 71 per cent, compared to 81 per cent last year
◆ Appliance garage usage is also on the wane, falling from 36 per cent at the end of 2009 to 29 per cent a year later
Solid ShowingThat granite and quartz continued their
reign as the number one and number two in countertop materials may not come as a surprise to anyone. Solid surfaces as a clear third, however, may raise a few eyebrows (or not). Both granite and quartz essentially held their dominance from a year earlier, with the percentage of designers incorpo-rating these countertop materials into their kitchen designs changing very little from a year earlier. It shows 89 per cent of survey respondents used granite in their work, down from 90 per cent while 70 per cent used quartz, down from 72 per cent.
Laminate usage dropped from 21 per cent to 17 per cent.
More surveyed designers specified solid surfaces: 25 per cent, up from 14 per cent.
Butcher block usage increased, jumping from seven per cent to 12 per cent.
Marble also had a surge in popularity, increasing from seven per cent to 14 per cent.
Inducting A New Cooktop Induction cooktops haven’t overtaken
gas and electric models, but they’re closing the gap. As we entered 2010, gas cooktops had been recently specified by 76 per cent of NKBA designers, compared to 38 per cent for electric and 26 per cent for induction.
However, while the incorporation of gas cooktops has fallen to 70 per cent, electric cooktops has risen slightly to 41 per cent, while induction cooktops are up to 34 per cent.
Meanwhile, single wall ovens are down from 46 per cent to 42 per cent, although double wall ovens are up from 68 per cent to 74 per cent.
In addition, warming drawers are down from 49 per cent to 42 per cent, and ranges are down sharply from 81 per cent to 68 per cent.
LED LightingIncandescent lighting continues its jour-
ney to obsolescence. While 50 per cent of NKBA member designers incorporated incandescent bulbs into their designs at the end of 2009, only 35 per cent have done so a year later. Instead, designers are clearly opting for more energy-efficient lighting options. While the use of halogen lighting is down from 46 per cent to 40 per cent over the past year, LED (light-emitting diode) lighting has increased from 47 per cent to 54 per cent.
Designers aren’t turning to CFLs (com-pact fluorescent lights) as a solution, though, most likely due to the poor quality of light they produce; their use by designers remained flat at 35 per cent. ❖
28 Go to page 3 CONTENTS
Weston Forest Steve Ekstein is executive vice-president and vice-president of distribution at Products Inc. He joined the company in 1987 and is now taking full responsibility for growing market share in the industrial and infrastructure sec-tors. Steve Rhone is vice-president of opera-tions. A career lumberman at the company, he joined it in 1987 as a general labourer. He has served as U.S. sales manager, North American sales manager, and hardwood pur-chasing manager. Steven Rustja is vice-pres-ident of trading. He joined in 2001 as a sales-person and was put in charge of a small sales team in 2004. Rob Hruby is vice-president of purchasing. He has held numerous positions in the industry including vice-president of purchasing at Great Lakes MSR Lumber and president of Georgian Bay Forest Products.
WQAScott Macdonald, Ontario business leader of Envirogard Products, has earned a Water
Quality Association Award of Merit. The Award of Merit is given for “exceptional service to the water quality improvement industry.” In presenting the award, WQA stated that he “has given his time and expertise to the Canadian Water Quality Association and to WQA.”
TIM-BR MARTSteve Stremecki is head of corporate devel-opment overseeing and growing corporate partnerships as TIM-BR MART has made some changes to its divisions to further
MAYMay 10-12 – National Hardware Show, Las Vegas Convention Center, Las Vegas, NV Contact: Tel: (203) 840-5622 or (888) 425-9377 Fax: (203) 840-9622 eMail: [email protected] Web: www.nationalhardwareshow.com
May 21-23 – 2011 Do-It-Best May Market, Indianapolis, IN Contact: Rosie Wilson, Meeting and Market Planning Manager eMail: [email protected]
May 26-28 – Montreal International Interior Design Show (SIDIM), Place Bonaventure, Montreal, QC Contact: Tel: (514) 284-3636 Fax: (514) 284-3649 eMail: [email protected] Web: www.sidim.com
JUNEJune 15 – BATIMAT Expovivienda 2011, La Rural Exhibition and Conference Centre, Buenos Aires, Argentina Contact: Web: www.batev.com.ar
AUGUSTAug. 14-18 – The Gourmet Housewares Show, New York, NY Contact: Web: www.thegourmetshow.com
Aug. 27-31 – Tendence, Frankfurt Fair, Frankfurt, Germany Contact: Web: http://tendence.messefrankfurt.com
SEPTEMBERSept. 4-6 – spoga+gafa, The Garden Trade Fair, Cologne, Germany Contact: Christopher Beavers Tel: (773) 326-9928 eMail: [email protected] Web: www.spogagafa.com
Sept. 12-14 – DOMOTEX Middle East, Dubai International Convention & Exhibition Centre, Dubai, United Arab Emirates Contact: Tel: (416) 690-0331 or (800) 727-4183 Fax: (416) 690-1244 eMail: [email protected] Web: www.domotex-middle-east.com
OCTOBEROct. 8-10 – 2011 Do-It-Best October Market, Indianapolis, IN Contact: Rosie Wilson, Meeting and Market Planning Manager eMail: [email protected]
Oct. 16-17 – Federated Co-operatives Fall Buymart, Prairieland Park, Saskatoon, SK Contact: Howard Vogelsang eMail: [email protected] ❖
People
CalenDar oF eVents
For a complete listing of upcoming events, visitwww.hirmagazine.com/home_improvement_events.html
�
integrate the newly acquired distribution operations into their business. Andrew Allen, formerly general manager of CanWel Hardware, is now in charge of sales and operations.
OSRAMJames (Jim) L. Johnson, Jr. is president of OSRAM SYLVANIA LTD. In this role, he will oversee the company’s sales, operations, and support functions includ-ing the trade, retail, and automotive lighting sales channels and the SYLVANIA lighting ser-vices division. ❖ Johnson
HOME IMPROVEMENT RETAILING • April 201128
29
29HOME IMPROVEMENT RETAILING • April 2011
Go to page 3 CONTENTS
proDuCt spotliGht
Adjustable Height
Price Pfister’s ‘Elevate’ provides users with the freedom to customize faucet height. Its adjustable spout offers more control, allow-ing one to change style and functionality whenever desired. It also has an ergonomic pull-out sprayer and swivels 360 degrees for greater manoeuvrability.
Smart RefrigeratorsFisher & Paykel’s French Door Refrigerators feature ‘Active SmartT’ technology, auto-matic ice making, chilled and filtered water on demand, and strong extendable stor-age drawers. Active Smart system has two variable speed fans, providing faster cool-ing and freezing with an even temperature throughout each level. The system continu-ously adjusts the flow of cold air based on daily use and climatic conditions, ensuring it quickly reaches the safe temperature for maintaining freshness.
Electric Version Of WandHyde Tools’ electric version of its ‘Pivot Nozzle Wand’ for gas pressure wash-ers is suitable for cleaning decks, siding, trucks, ATVs, and worksites. It features a simple slide handle that pivots the nozzle as you work, allowing you to reach all around obstacles while maintaining maximum power. The addition to the line comes with four connec-tors and fits any major brand of electric pressure washer.
Modern Convenience
Moen Canada’s ‘Brantford’ collection brings modern convenience to traditionally
styled kitchens. It includes elegant high-arc, multi-function pull-down wands and docking systems that allow users to switch
between several water-flow patterns with the touch of a button. It is offered in chrome, stainless, and oil rubbed bronze. ❖
30
publisher’s perspeCtiVe
Dante PiccininPublisher and Editorial Director
Go to page 3 CONTENTS
Is Target’s acquisition of Zeller’s a signal that more American retailers are getting ready to enter Canada? Clearly, there is renewed interest. Not only did we see Target come
to Canada, we also saw Lumber Liquidators open its first three Canadian stores, all located in Toronto, ON. It plans to open 40 to 50 new stores in North America for 2011, with 35 to 40 in the U.S. and the remainder in Canada.
As well, American discount store Marshalls has opened its doors for the first time in the Toronto, ON, area. Owned by TJX Companies, it has more than 820 stores, covering 42 states and Puerto Rico.
Takeover Targets
And there are rumours that well-known Canadian clothiers Le Chateau, Jacob, and Reitmans could become takeover targets as a wave of U.S. retailers follows Target north of the border.
Target is so excited about Canada it is already revising its plans. Instead of 150 stores, it is aiming for 200 because “The sun,
the moon and the stars all lined up properly ... Canada represents a vibrant retail market, where we think we can highly succeed.,” says its CFO, Douglas Scovanner.
The International Council of Shopping Centers clearly thinks this is a trend. Its first-ever ‘Toronto Next Generation Program’ was called ‘Growing Pains: The Challenges U.S. Retailers Face When Coming to Canada’ and its next session, May 4 in Toronto, ON, will focus on how retailers and developers will have to use the power of their brands and skills of their marketing departments to ensure success amid competition com-ing from international brands entering the Canadian playing field. Finally, at the May 10 Canadian Retail Research Seminar, it will feature a session called ‘At the Retail Frontier: U.S. Retailers in Canada.’ (For more information, visit http://www.hirmaga-zine.com/home_improvement_events.html).
At its first session, Jerod Dinkin, director of real estate of Bed Bath and Beyond, said American retailers are coming to Canada because they think it is a sound place to do business. Factors such as a common language, similar business practices, geographic prox-imity, and similar governments make Canada an easier market for them to move into.
However, perhaps more importantly, they need to find growth somewhere.
Between 2003 and 2008, U.S. retailers were in a period of massive growth, mostly to satisfy Wall Street. Bed Bath and Beyond was opening 80 stores a year during this time because if it didn’t, Wall Street would see it as a negative, he said. Today, Wall Street views it as a failure if retailers are not scaling down or closing stores.
So growing in Canada helps them meet their growth requirements and offset some of the losses resulting from closing unsuc-cessful stores in U.S. markets.
Coming to Canada is not without its challenges. A scarcity of real estate in big Canadian cities makes takeovers of com-panies with ready-made store locations the surest route for foreign entrants. That was one of the motivators when Target took over the Canadian leases on up to 220 Zellers stores owned by Hudson’s Bay Co. And, in fact, it followed the model of its number one com-petitor, Wal-Mart which entered Canada by
acquiring 120 Woolco stores from Woolworth Canada. As well, this was the method Home Depot used to enter the Canadian market as it acquired the Aikenhead’s hardware chain from Molson in 1994.
However, there are examples where U.S. retailers entered Canada with no foothold. Look no further than Lowe’s which opened its first three stores in this country in 2007 and now has 20.
As well, unlike the U.S. where there are numerous medium sized cities capable of supporting more than one chain’s offerings, in Canada, the number of markets which can sustain multiple stores is limited. That means in many markets, only one store is viable. So the threat to the Canadian store was overwhelming when Wal-Mart moved onto these markets. So if Target moves into these same markets, what is it bringing to the market to unseat Wal-Mart?
Recent ReshufflingStill, where does this leave us 10, 20, or
30 years in the future in the Canadian retail sector and, more specifically, the hardware and LBM areas? It really puts into context the recent reshuffling of the landscape with Castle Building Centres hooking up with Orgill, RONA acquiring TruServ Canada, and TIM-BR-Mart acquiring CanWel Hardware, now renamed Chalifour Canada.
While the big box landscape in Canada may be settled, unless some foreign entity such as Saint Gobain takes a kick at the Canadian market, is there a threat looming of U.S. buying groups looking north to grow their businesses and going head to head or acquiring Canadian groups?
Perhaps the reality is that this is inevi-table. The world is shrinking and it is as easy to do business in Canada today with your head office in Bentonville, AK, as it is St. Jacob’s, ON. ❖
The Yankees Are Coming, Again
HOME IMPROVEMENT RETAILING • April 201130
31 Go to page 3 CONTENTS
Our unique new Weather-TiteTM technology adds 2 sealant bands to every BP Laminate Shingle for the most powerful hurricane-resistant protection available anywhere.
Build your sales by helping your customers choose BP with a few powerful facts about Weather-TiteTM:
> Better wind resistance
> Better wind-driven rain resistance
> Better resistance to water infiltration
> Better resistance to surface uplift
BREAKTHROUGHSHINGLETECHNOLOGY
SOLID SEALANT BAND
PATTERNED SEALANT BAND
SHO
WN
EA
ST W
EA
TH
ER
-TIT
E
www.bpcan.com
CANADIAN PATENT NO. 2,448,498 U.S. PATENT NO. 7,204,063
OFFER YOUR CUSTOMERS DOUBLE THE PROTECTIVE POWER AND SEAL THE DEAL!
BP ROOFING PRODUCTS:BETTER PROTECTION, BETTER WARRANTIES, BETTER SALES
Home_Imp_Retailing_W-T.indd 1 2/21/11 2:47 PM
32
Contact your Business Development ManagerWest Alan Schoemperlen (204) 771-1509 [email protected]
BC Les Gillespie (250) 469-4744 [email protected]
Ontario Bruce Holman (647) 228-1414 [email protected]
Quebec Robert Legault (514) 208-4158 [email protected]
Atlantic Sandy Welsh (902) 471-7113 [email protected]
Your trusted building supply partner
castle.ca/freedom
®
Go to page 3 CONTENTS
![hir jugu jugu Bgq aupwieAw pYj nwmdyau muiK lwieAw ] jn ... - Rehiraas [Gurmukhi].pdf · hir jugu jugu Bgq aupwieAw pYj rKdw AwieAw rwm rwjy ] hrxwKsu dustu hir mwirAw pRhlwdu qrwieAw](https://img.pdfslide.us/doc/110x75/5a754e447f8b9a4b538c60f0/hir-jugu-jugu-bgq-aupwieaw-pyj-nwmdyau-muik-lwieaw-jn-rehiraas-gurmukhipdfaa.jpg)
