Digital Issue - Home Improvement Retailing Magazine
Transcription
Digital Issue - Home Improvement Retailing Magazine
www.hirmagazine.com [email protected] A Powershift Publication l Volume 17, Number 6 l December 2011 17 th Annual Special Report Who They Are • Where They Are • What They Are Doing www.hirmagazine.com PM NO. 40008000 1 Go to page 3 CONTENTS 9 23 Private Wealth Ice Melt Maximizing Tax Deductions A Profitable Ice Melt Season 26 Retailing By Design Enhancing The Contractor Experience www.bmr.co [email protected] YOUR FUTURE IS GREEN 187 DEALERS IN 5 PROVINCES 4 LUMBER & BUILDING MATERIAL WAREHOUSES 1 HARDWARE WAREHOUSE For more information, Please contact Al Holton toll free : 1 800 361-0885 cell : 519 657-5808 www.bmr.co HARDWARE 2 Go to1 HIQ BMR Octobre2011.indd page 3 CONTENTS 30/09/11 8:57 www.hirmagazine.com CONTENTS A POWERSHIFT PUBLICATION VOLUME 17, NUMBER 6 December 2011 EDITORIAL DIRECTOR & PUBLISHER Dante Piccinin EXECUTIVE EDITOR Joe Hornyak STAFF WRITER Daniela DiStefano ART & PRODUCTION Keith Boa 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; VICEPRESIDENTS, 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 Departments 10 5Editor’s View Capabilities For Success 6Industry Update 7In Store 8It’s Your Money 9Private Wealth Maximizing Tax Deductions 10Female Shopper Female Leadership Great Asset 11Coach Your Team 13 Delegate Tasks To Reach Success 13Manager’s Mind Time Management: Challenging For Most Leaders Looking Past Traditional Customer Base 28Product Spotlight 29Calendar Of Events 29People 30Publisher’s Perspective The ‘Buy Canadian’ Myth Features 1417th Annual Special Report On Banners 2011 Became Year To Refocus 23Preparing For A Profitable Ice Melt Season 24Contractor Business The Latest In Windows And Doors 26Retail By Design Enhancing The Contractor Experience 24 Visit Our Website: www.hirmagazine.com For all subscription inquiries, fax to Cathy McKerchar at 416-494-2536 e-mail: [email protected] 3 HOME IMPROVEMENT RETAILING • December 2011 3 www.home-owner.ca “We joined Home Hardware because of their wide selection of available products – priced competitively for our market – and their reputation for quick and efficient delivery. But what impressed us most was the service and support we received during our transition. We couldn’t be happier with the decision we made – and we look forward to many more years as Home Owners.” Jim Robinson Robinson’s Home Hardware Barrie ON 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 1 4 18155_HIR_JimRobinson_EN.indd Go to page 3 CONTENTS 11-11-11 2:53 PM [email protected] Editor’s View Capabilities For Success W hat capabilities will drive success for retail in 2012 and beyond? Booz & Company’s ‘2012 Retail Industry Perspective’ survey reveals the thinking on this for the year ahead and when we review the capabilities identified in this report and compare them to the comments of industry executives in our annual ‘Banners’ (see page 14) and other recent industry announcements, we can see that some in the hardware and lumber and building materials retail industry in Canada are already headed in the same direction. Format Innovation The survey suggests the first capability is format innovation, the ability to manage new formats, optimize the existing footprint, and strengthen capabilities in the growing online channel. This means retailers need to continue the long-term task of exploring store formats that will enable them to penetrate new geographies and consumer segments. Wal-Mart, for example, is now experimenting with Wal-Mart Express, a scaled-down version of its core format designed for space-constrained urban markets and low-population rural markets. In Canada, we also see this happening in the hardware and lumber and building materials retail sector. In fact, we see a blurring of retail sectors with, for example, Canadian Tire adding food to some of its stores. Rod Baergen, general merchandise marketing and operations director for Federated Co-Operatives Ltd., says its retail banners continue to focus on expansion in the convenience store market. Plus, some of our banners are looking at new store formats. Bill Morrison, president of TruServ Canada Inc., says it will launch three new brands in 2012 – Tru Hardware, Tru Building Centre, and Tru Country and Garden. Booz & Company also believes the growth in online channels will remain the big story in retail. To capitalize on this trend, retailers need to go beyond the basics – such as easily navigable websites and liberal return policies – and develop new capabilities that will enable them to innovate and gain competitive advantage. For instance, Wal-Mart just announced its ‘endless aisle’ which allows its suppliers to bolster their business by peddling a vast array of products online, more than they could ever squeeze onto its shelves. Wal-Mart’s move online is part of a wider strategic effort by its U.S. parent to become a heavyweight in cyber space, pitting it against Amazon.com. Its initial effort is in two major holiday giftgiving areas – toys, which Amazon.ca does not carry in Canada, and electronics. In the next year, Wal-Mart says it will rev up its e-Commerce offerings in home furnishings and hardware as well as sporting and seasonal goods and apparel. What is missing, however, is any suggestion of the next step, where shoppers instore can access the online experience and expand the product assortment available to them. A shopper could be looking at chain saws in the store and then access the online portal with their smartphone or tablet to see all the chainsaws it can get through Wal-Mart. Curated merchandising is another capability that retailers will need to explore. With consumers becoming more frugal, driven in part by the necessity of retiring the debt they accumulated over the last decade, retailers need to develop the capabilities required to place the right product in the right store at the right price. This is essential to fuel topline growth and profitability. Furthermore, customers are demanding a more ‘curated’ selection. They want the right styles, prices, and experience all in one format. To get the most out of their stores, retailers will also need to tailor them to better reflect local tastes and preferences. Retailers will need to know how many and which SKUs in each category they should carry, what the base price of SKUs is in each category, and so on. In essence, they need to localize their stores by collecting and analyzing data from store trait databases; promotion returns; and performance measurement. Social Media Finally, we are told forward-looking retailers are already focused on social media, which Booz & Company believes is likely to become the next generation of e-Commerce engines and a powerful new sales channel. Almost all sizable retailers are already using social media, such as Facebook and Twitter, to connect with customers. Robert Dutton, president and CEO of RONA Inc., tells us that along with launch of a new website in 2012, it also has plans for social media and mobile initiatives. The specific capabilities that retailers develop to address these four areas – format, merchandising, experience, and social media – will differ among companies. Not every capability is suitable for every retailer. To decide which to pursue, you need to carefully consider how you differentiate from your competitors and how to develop which capability or capabilities to best take advantage of your unique strengths. ❖ The article is at http://hirmagazine.com/ reports/2012Perspective.html Joe Hornyak Executive Editor [email protected] HOME IMPROVEMENT RETAILING • October 2011 5 Go to page 3 CONTENTS 5 www.hirmagazine.com/ home_improvement_news.html Industry Update Challenging Times Coming For Canadian Business Canadian businesses of all sizes are likely to face challenging conditions in the months ahead, says Scotia Economics. Domestic prospects are being constrained by the much slower and uneven pace of economic growth in most advanced nations, amid increasing fiscal restraint and persistently high unemployment. A report says the current environment favours firms whose products and services are geared to corporate customers over those that rely primarily on households. Small businesses also will continue to benefit from the ongoing buoyancy in resource-related activity. Beacon Purchases Roofing Distributor Beacon Roofing Supply has acquired The Roofing Connection, a distributor of residential roofing products and related accessories with one location in the Halifax suburb of Dartmouth, NS. The company will be operated as part of Beacon Roofing Supply Canada Co. Co-founders Cheryl and Pat O’Brien said joining with the Massachusetts-based company will allow the distributor to expand product offerings and grow throughout the province. OGC Adds SpruceWare.NET OGC has entered into a partnership agreement with software company Spruce Computer Systems for the commercial rights to its For FREE Daily News Alerts, visit www.hirmagazine.com/home_ improvement_news.html � 6 6 HOME IMPROVEMENT RETAILING • December 2011 Go to page 3 CONTENTS new offering will enhance the company’s product line so that it can better meet the specific needs of its customers in the hardware and building materials industries. ❖ www.easyinstall.ca SpruceWare.NET product in the Canadian market. Through this agreement, OGC has gained the exclusive rights to sell, implement, and support SpruceWare.NET in Canada. This www.taigaselectflooring.com Royal Launches New Look Royal Building Products, formerly Royal Group, is launching a new look and feel to complement the company’s successful history and to pave the way for future growth. Its updated brand promise – ‘Working together to build neighbourhoods of lasting value’ – is articulated in a customer-focused video that can be viewed on YouTube. A new logo also was designed to retain the legacy of the company’s original symbol – the crown – while shifting emphasis from manufacturing to a focus on what its products do to transform neighbourhoods. It manufactures a broad range of building materials that go on and around the home. www.hirmagazine.com/ home_improvement_news.html In Store RONA Focuses On Paper Consumption RONA inc. has revealed its new ‘Paper Products Use and Procurement Policy’ and ‘Sustainable Packaging Policy’ as part of its initiatives in sustainable development. The policies are to ensure all products sold and used by RONA have the smallest impact possible on the environment. By 2014, the company plans to reduce paper consumption by 15 per cent and by 2015 reduce packaging by 10 per cent on its private brand. Lowe’s Uses iPhones In-Store Lowe’s has rolled out iPhones to more than 60 per cent of its stores where they are used as sales tools and scanners. Rick Damron, executive vice-president of store operations, says the devices are customized with retail applications based on Apple’s iPhone technology. They are expected to be rolled out to all stores by the end of the year. Each store will have about 25 of the iPhone devices. Because employees no longer have to walk to a fixed terminal about 400 times a day, it makes them more productive, he says. Sixth Canadian Flooring Location Lumber Liquidators is growing again with a location in Cambridge, ON. This store opening is part of the brand’s continued expansion into Southern Ontario and the sixth Canadian location. Lumber Liquidators offers more than 300 varieties of flooring including hardwood, bamboo, laminate, vinyl, and cork. Castle Adds Seven Members Castle Building Centres Group is expanding its network of independent dealers with seven new locations. The independent dealers are Materiaux Manic – Baie Comeau, QC; Saumarez Quincaillerie Ltee – Saumarez, NB; Provincial Partitions Ltd – Mississauga, ON; Materiaux De Construction Jean Guy Dube Inc – Mont-Joli, QC; New Concept Walls and Ceilings Supply – Edmonton, AB; Custom Walls & Ceilings Supply – Prince George, BC; and Ian Roberts Building Materials Ltd – Portage La Prairie, MB. is spending up to $10 million per store to upgrade the existing locations it is taking over from Zellers. Home Hardware Wins Healthy Workplace Award PayPass Will Ease Holiday Line Ups Sears Canada Inc. will introduce MasterCard’s PayPass contactless payment technology in its retail stores across the country. The PayPass option speeds up the transaction, reducing customer wait times, says Peter Kalen, senior vice-president. Consumers with a PayPass-enabled credit card or mobile phone quickly and securely pay for their purchases with a tap of their card or phone on a PayPass point-of-sale payment terminal and the transaction is confirmed within seconds. 1,500 Attend Expo Chalifour Canada’s first annual ‘Retailer Buying Expo’ attracted more than 1,500 retailer and vendor attendees. ‘We mean business’ was the theme of the national Expo and was chosen to convey the message that the show is relevant to many segments of the retailers’ business. Attendees could gather information on not only hardware and LBM, but plumbing, electrical, paint, and seasonal. It also offered special features such as a ‘Store on the Floor,’ featuring merchandising and planograms in core categories. Target Aims For Unique Canadian Experience Target Corp. will strive to make its stores as “Canadian” as possible when it begins opening in this country in 2013, says John Griffith, executive vice-president of property development. In a speech to the International Council of Shopping Centres Canadian convention, he said the mass merchandiser merchant sees Canada as the best opportunity for international growth and hopes to become Canada’s favourite retailer. More than 70 per cent of Canadians are already familiar with the brand and 11 per cent have shopped at the retailer in the last year. The company Home Hardware Stores Limited has been awarded Waterloo region’s Healthy Workplace Gold Award. The program recognizes and celebrates workplaces in Waterloo region who demonstrate a strong commitment to improving the health of their employees. In 2011, the company launched its ‘Good For You! Wellness Program’ to promote health and wellness among corporate staff. The company’s wellness initiatives also include flu clinics and heart clinics at each of its distribution centres. From left to right are Stew Gingrich, vice-president, human resources, and Deb Benham, recruitment and communications manager, Home Hardware Stores Limited. Canadian Tire Maintaining Sustainable Operations Canadian Tire Corporation completed 84 initiatives in the third quarter towards its sustainable business practices. As a result the retailer says it is forecasted to annually avoid more than $1.1 million in costs, 596 tonnes of waste, and more than 1,200 tonnes of greenhouse gas (GHG) emissions – equivalent to the energy use and emissions from powering more than 138 Canadian homes each year. ❖ For FREE Daily News Alerts, visit www.hirmagazine.com/home_improvement_news.html � HOME IMPROVEMENT RETAILING • December 2011 7 Go to page 3 CONTENTS 7 It’s Your Money Fastenal Fastenal Co. had sales and earnings gains both in excess of 20 per cent in the third quarter ending September 30. The company’s net sales increased 20.4 per cent to $726.7 million, while net earnings increased 29.1 per cent to $96.8 million. The distributor and retailer of specialty building products and fasteners slowed down its aggressive store growth plans. However, it still opened 94 stores in the first three quarters. Zep Zep Inc.’s fiscal fourth quarter net income rose 93 per cent, helped by higher revenue from acquisitions and price increases and the fact that year-ago results include restructuring charges. Revenue rose eight per cent to $173.8 million from $161.4 million last year, helped by acquisitions and price increases. For the fiscal year, its net income rose 29 per cent to $17.4 million from $13.5 million in 2010. Revenue rose 14 per cent to $646 million from $568.5 million. Valspar Valspar Corp. had net sales of $1.05 billion for its fourth fiscal quarter, a 19.4 per cent increase from the fourth quarter of 2010. The company posted a net loss of $295.7 million for the quarter, which ended October 28, 2011. This compares to a profit of $51.3 million for the same quarter in 2010. Fiscal year 2011 sales totaled $3.95 billion, a 22.5 per cent increase from fiscal year 2010. Net loss for fiscal year 2011 was $138.6 million. Williams Sonoma Williams-Sonoma Inc.’s third quarter net income rose 19 per cent as shoppers picked up more home goods at its stores. Net income in the August/October quarter was $43.4 million, up from $36.5 million in the same period last year. Revenue rose six per cent to $867.2 million from $815.5 million. Target Target Corp. had a 3.7 per cent increase in third quarter profits, helped by solid spending and improvement in its credit card business. The discounter earned $555 million in the three-month period ended October 29. That compares with $535 million in the year-ago period. Revenue rose 5.4 per cent to $16.05 billion. Revenue at stores opened at least a year rose 4.3 per cent in the quarter. Target’s sales have rebounded 8 8 as it expanded its offerings of food and emphasized its low prices in advertising. The retailer is also wooing shoppers with a five per cent discount program it launched in October 2010 for customer who pay with Target branded credit and debit cards. Sears Canada Sears Canada Inc. posted a net loss of $46.6 million in the three months ended October 30, down from a profit of $20.8 million a year ago. Same-store sales fell 7.8 per cent over the same period last year. Calvin McDonalds, its president and CEO, says the company has significant work ahead to overcome lagging sales as the Canadian marketplace faces increased competition. Revenue was off 7.1 per cent to $1.11 billion from $1.2 billion. Wal-Mart Key sales at Wal-Mart Stores Inc. U.S. discount stores rose more than expected, reversing a string of nine quarterly declines in quarterly profit growth. Wal-Mart earned $3.34 billion in the third quarter ended on COMPANY Canadian Tire Corp. Dow Chemical Co. Fastenal Co. General Electric Home Depot Louisiana-Pacific Lowe’s Cos Masco Corp. Newell Rubbermaid Owens Corning Richelieu RONA Sears Canada Sherwin-Williams Co. Stanley Black & Decker Taiga Trex USG Corp. Wal-Mart West Fraser As of December 14, 2011 HOME IMPROVEMENT RETAILING • December 2011 October 2011 Go to page 3 CONTENTS October 31, compared with $3.44 billion a year earlier. Net sales rose 8.2 per cent to $109.5 billion. Sales at U.S. discount stores open at least a year rose 1.3 per cent. Home Depot Home Depot Inc.’s profit rose to $934 million in the third quarter ended October 30 from $834 million a year earlier. Sales rose 4.4 per cent to $17.33 billion. Sales at stores open at least a year rose 4.2 per cent globally, including a 3.8 per cent rise in the United States. RONA RONA Inc. had a net income of $50.1 million in its third quarter. Net income was up from $48 million last year and revenues were $1.3 billion, up $27.9 million. President and CEO Robert Dutton says economic uncertainty continues to impact consumer confidence and purchases and the circumstances were felt by the retailer. RONA had a 5.1 per cent drop in same-store sales due to more cautious spending by consumers and a decline in residential housing starts. ❖ SYMBOL OPEN HIGH/LOW 52-WEEK CTC DOW FAST GE HD LPX LOW MAS NWL OC RCH RON SCC SHW SWK TBL TREX USG WMT WFT 72.17 25.38 40.25 16.34 39.37 7.2 24.16 8.9 14.94 25.81 28.77 9.77 12.2 83.73 64.65 0.63 22.24 8.72 57.73 39.61 77.4 – 61.01 42.23 – 20.61 43.04 – 25.805 21.65 – 14.02 40.93 – 28.13 11.625 – 4.41 27.45– 18.07 15.03 – 6.6 20.38 – 10.87 38.94 – 18.67 31.75 – 24.35 15.4 – 8.64 20.69 – 11.9 87.87 – 69.47 78.19 – 47.07 1.15 – 0.58 34 – 14.53 19.906 – 5.75 59.395 – 48.31 62.86 – 34.9 INDEX TSX NYSE NASDAQ NYSE NYSE NYSE NYSE NYSE NYSE NYSE TSX TSX TSX NYSE NYSE TSX NYSE NYSE NYSE TSX Private Wealth Maximizing Tax Deductions Y ear-end means the thoughts of many small business owners turn to tax season, especially what they can do which will pay dividends come tax time. Cathy Pin, vice-president, commercial banking, BMO Bank of Montreal, says “While 2011 may be a year remembered most for its economic challenges, many small business owners we talk to are cautiously optimistic and confident about their ability to finish 2011 on solid ground. However, she adds, now is also the time to sit down with your business advisors and accountant to do a quick financial check-up and to put in place strategies to help minimize the amount of 2011 income tax payable. Year-end Strategies For small business owners in Canada (most commonly a sole proprietorship or partnership), there are a number of yearend strategies that can be applied to reduce the amount of income tax payable. To start, do a financial check-up. Professional business advisors can help you have a clear understanding of your current financial situation. These professionals can also help develop or adjust existing plans based on new needs or changing circumstances. You should also consider ways you can defer income. Depending on a number of factors (e.g. future tax rates, projected profit or loss for 2011, cash flow), small business owners may be able to reduce the current taxes they will be paying by deferring some of the income they expect to receive in December into January 2012. You should also start gathering business receipts. Income tax deductions can be maximized by ensuring all allowable receipts for business-related expenses (e.g. gas, stamps, customer lunches, coffee for the office) are itemized. Over the course of a year, those receipts for the little things can add up. Consult the guide- and your accountant about the tax rules that apply to your particular situation. lines available from the Canada Revenue Agency or speak to your tax advisor to determine which are eligible business expenses. You can also increase some expenditures now on things you will need early in 2012 in order to maximize 2011 deductions. For example, consider accelerating the purchase of new equipment or other depreciable assets before the end of the year so you can benefit from a claim for tax depreciation in the current year. A drop in the value of inventory may also provide an opportunity for an additional income tax deduction for the current year. However, before you write off any inventory, you need to speak to a banking advisor RRSP Contribution For unincorporated small business owners, income earned by the business becomes personal income when filing taxes using the T1 form. However, many small business owners fail to take full advantage of one of the best income tax deductions available to Canadians – the Registered Retirement Savings Plan (RRSP). RRSP contributions are deducted from annual income, thereby lowering income tax payable at the individual’s marginal tax rate. As a business owner, if you have been paying yourself a salary, setting up a new RRSP or maximizing your annual RRSP contribution enables you to benefit from the tax-deferred growth right away. Clearly, there are ways to maximize your tax deductions to minimize the tax you pay. Sitting down with your business advisors can help you identify the maximum benefits you can get when it comes to tax time. ❖ Source: BMO Bank of Montreal (This article is provided for information purposes only and should not be construed as advice. For advice, please consult your professional advisors.) HOME IMPROVEMENT RETAILING • December 2011 9 Go to page 3 CONTENTS 9 F emale S hopper Female Leadership Great Asset W omen lead differently than men and in the world of business it’s a great asset, says Susan T. Spencer, an entrepreneur and business professional. Spencer has navigated her way through male-dominated industries such as law, professional sports management, and food distribution and over the years has expanded her business empire to three successful companies with combined annual revenues of $50 million. She attributes her success to the natural talents that all women possess, and includes them in her book, ‘Briefcase Essentials,’ to educate women on the skills they need to utilize to succeed in male-dominated workplaces. Here are the top skills women can employ to lead and succeed in their careers: Perceptive Communication Women are natural communicators; men listen and women talk … to everyone. A women’s ability to communicate is not just her ability to talk, they are aware of what others are thinking. All of women’s senses contribute to their special talent (touch, smell, taste, vision, and hearing), giving them a decided advantage in evaluating a business situation. These traits, along with other observations that women instinctively notice – such as body language, facial expressions, tone of voice, and body movements – collectively represent what women in business uniquely possess – the ability to be perceptive communicators. Being Engaging Have you observed the way most businessmen greet each other? They immediately extend their hand and wait for the other person to do the same; then they grasp hands firmly and give a shake or two. Generally, they don’t make eye contact with each other and if they exchange words, they’re often mumbled or perfunctory. When women greet each other, they hug, they smile, and they look each other in the eye and say how good it is to see the other one. This is true even if they’re business colleagues. These gestures are more than symbolic, it’s how women use body language to communicate the importance of relationships. When you meet a businessperson in the ordinary course of business, being engaging includes the way you meet and greet other businesspersons. It begins the moment you extend your hand and continues throughout the greeting. Don’t miss an opportunity to make a great initial impression by using your natural skill of being engaging. Being Empathetic The ability to identify with and understand someone else’s feelings or difficulties is a female leadership skill that engenders employee loyalty and trust. It’s a rare moment when most executives or leaders show this side of themselves, but if it’s sincere, it’s a moment that will be appreciated forever by everyone who witnesses it. Communicating openly and honestly with employees, customers, and colleagues is a great trait to use wisely in business situations. 10 10 HOME IMPROVEMENT RETAILING • December 2011 Go to page 3 CONTENTS Being Inclusive Businesswomen are ‘people persons,’ they fill this role naturally because they are comfortable relating one-on-one with people at all levels of an organization. They make it a point to know the names and faces of people they are working with. They want to know them and feel comfortable with them as well. Sometimes, they make customers or suppliers feel so comfortable with them that they share personal information which brings the relationship closer and gives them the opportunity to be candid and straightforward with them about business problems when they arise. Businessmen tend to act impersonally and do not interact at all levels; in other words, they are exclusive not inclusive. For women, the term ‘inclusive’ carries with it an implicit acknowledgement that ‘people come first.’ By being inclusive with every business contact – whether customer, supplier, or employee – the natural talents that women apply to business give them a decisive edge. Never underestimate the strength of leadership that women possess by championing the maxim of being inclusive which carries with it an implied understanding that people come first. Being Resourceful Every business has its ups and downs. One of the most important business skills – and a talent that women seem to be able to handle better than men – is juggling lots of balls in the air at one time. Women problem solve the same way. They think about several options instead of zeroing in on one, toss them around in their head, weigh alternatives, consider several points of view, and come up with more than one way to proceed.❖ Coach Your Team Delegate Tasks To Reach Success T oo often, small business owners unwittingly stall the growth of their own companies. Doug and Polly White, management consultants who guide small and mid-sized businesses, say they are intrigued by why some companies attain great success while others constantly struggle to take their business to the next level. Their book, ‘Let Go to GROW,’ shares their 50 combined years of experience working with entrepreneurs and owners in human resources, people management, finance, and consulting. Here the Whites share their advice for defining the principal’s role in the business and utilizing the right tools for hiring and managing staff to reach profitability. Know What You Have To Offer Smaller companies often struggle against larger organizations that might be able to offer more pay or benefits, and end up feeling like they do not have a lot to offer. However, the Whites say they need to re-think what it is they can offer an employee. Many times a small business can offer a more personal relationship with the owner of the company, maybe some coaching or mentoring from the owner, and the opportunity to have a greater variety of responsibilities to enhance work experience. These benefits can create a more open and inviting workplace environment and improved company morale. On Hiring Staff The Whites say the first step is to know what you need before doing any hiring. This means going out to look for someone that will fill more than just a job title. Take the time to think about what makes for the right person to fill the position, whether it is an inventory clerk, cashier, or manager. Many small business owners just put out an ad, get a bunch of resumes, and only really look to see if the applicant has done this job before. Or they turn to family and friends to fill their staff positions which is rarely the best choice. Instead, they say owners should hire behaviours and train skills, which means they can take on someone with a good work ethic who can learn and evolve within the position. As well, it is best for small business owners to leverage multiple methods of opinions during the hiring process instead of taking the entire task under their control. It is much more effective to have other people help with the interviewing, maybe peers or an outside HR professional, who might have valuable insights that could be missed. “Hiring and managing people is not something you are born knowing how to do, it is a learned skill,” says Doug White. They also encourage owners to do thorough background checks for criminal history when hiring all new employees as a safeguard. Many entrepreneurs are reluctant to do it just because there is an extra cost involved in having a background check, but it could save thousands of dollars down the road. Letting Go As the business grows, the principal has to let go. What the Whites find most often stalls the growth of small businesses is that the business has reached a point where the principal needs to let go, but he or she has not been able to do so. Owners need to understand where the business is in its growth. Is it a microbusiness, a small business, or a mid-size business? Are you treating the business accordingly? If you are in a small business, are you concentrating on hiring and training and managing employees, and not trying to do everything yourself anymore? And, when the small business owner transfers from small to mid-size, they need to delegate the decision-making authority. Delegating authority is something many owners are often reluctant to give up because it means losing some control, but it is imperative for success. The Whites say the owner must understand they cannot be involved in everything that goes on within the business after a certain point. When entrepreneurs try to hang on to all the decision-making authority, most often they become overwhelmed by every task and unable to give all their time and energy. Having good managers in place, having processes documented, and having good metrics can help with the process. Owners need to be clear with all management staff about how things need to be done to ensure consistency. Without the documented processes, it is inevitable things will end up being done in very different ways which can lead to setbacks. The Whites say the number of startups that actually fail is huge because many ignore the fact that they may not possess the skill set to do every single business initiative to the maximum potential. Good, qualified professionals are easy to find to help fill consulting, coaching, marketing, and other business functions and this wide counsel can make all the difference in growth and sustainability in the long run.❖ HOME IMPROVEMENT RETAILING • December 2011 11 Go to page 3 CONTENTS 13 11 www.truserv.ca If we weren’t such polite Canadians we’d boast that we have about six times the buying power, almost twice the SKUs and a better pricing guarantee than our American wholesaler friends. But they do squeeze great orange juice, eh? TRUSERV CANADA has been supplying the hardlines needs of independent dealers, on a low-cost, no frills basis, for almost 100 years. Now we are part of the largest hardware and LBM distribution company in Canada. Which means that we can confidently beat any hardware distributor’s Canadian pricing, coast to coast, every time, guaranteed. Note: Offer does not apply to citrus products. Scan for complete details. www.truserv.ca/priceguarantee The landscape has changed. Call us toll free 1.800.665.5085 www.truserv.ca TRUSERVCANADA_ad-HIR.indd 1 12 Go to page 3 CONTENTS 11-12-06 11:53 AM Manager’s Mind Time Management: Challenging For Most Leaders I f time is money, finance executives may have something to worry about, says a survey by Robert Half Management Resources. More than one-third (38 per cent) of the 1,400 U.S. chief financial officers interviewed cited time management due to competing priorities as their biggest work challenge. Keeping up with technology and accounting regulations garnered 30 per cent and 19 per cent of the response, respectively, and achieving a work/ life balance was cited by 13 per cent. “The current business environment is exerting greater pressure on executives and their teams to do more with less,” says Paul McDonald, senior executive director of Robert Half Management Resources. “As CFOs revive projects postponed during the downturn and build out plans for business growth, they’re having difficulty allocating time, technology, resources, and staff to these initiatives.” Some tips to help get more value out of your workday include: ◆ Identify the ‘mosts’ – When every project seems to be top priority, focus efforts on those that will save the most money, grow the most revenue, or open doors to the most new business. Encourage your staff to use this same approach to manage their time. ◆ Be realistic about internal resources – Delegating another major project to your staff may bring already overloaded employees to the breaking point. Understand their limitations in terms of time, knowledge level, and experience – bringing in outside experts to manage the project may result in faster execution and fewer errors. ◆ Avoid micro-managing – Set milestones and regular checkins, but otherwise let staff run the initiative. Getting mired in details will slow the process for you and others. ◆ Practice the golden rule – Show respect for others’ time. Avoid scheduling meetings that, on closer inspection, aren’t really necessary. Don’t keep staff waiting for feedback and approvals. ❖ Looking Past Traditional Customer Base R etailers often focus their merchandising, branding, marketing, and advertising campaigns on the perceived needs of a hypothetical ‘core customer.’ Given the prevalence of cross-shopping and channel-blurring across many segments of retail, 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. Bona describes how timeworn retail channels are blurring today in interesting ways. Malls that once relied on upscale, fashion-forward tenant lineups, for example, are now welcoming the likes of Costco and Target to backfill vacated department store spaces. Walgreen’s, which has been looking more like a convenience store with each passing year, now aims to put e-vehicle fueling stations in its parking lots, making that resemblance even more striking. Given these changes, Bona says many retailers could discover new opportunities by reaching out to the heterogeneous mix that is their customer base. While he acknowledges the value of data-driven customer profiles, he also points to the rarely discussed limitations of drawing up vivid descriptions of a core customer and then basing all subsequent campaigns on the perceived needs of this composite character. This single-minded focus on one type of shopper tends to ignore the reality of channel-blurring. Over time, however, more retailers have learned to appreciate that their stores are not necessarily for one type of person alone. “Cross-shopping among store formats and price-points is rare only among the very rich and the very poor,” he says. Indeed, savvy retailers have already prospered by reaching out to new shoppers. Bona says Walmart did this by ramping up quality and cleanliness while preserving its emphasis on price. In the ‘new normal’ of today’s economy, Bona explains, shoppers will continue to be circumspect about how they spend, and this will make cookie-cutter approaches even more outdated. “Embracing complexity – or even, at times, paradox – is a must,” he says. “While your brand might have been founded on other attributes, it is still possible to introduce, say, more value or convenience.” ❖ HOME IMPROVEMENT RETAILING • December 2011 13 Go to page 3 CONTENTS 13 FEATURED ARTICLE 17 th Annual Special Report 2011 Became Year To Refocus V olatility has become an economic reality for Canadian retailers in recent years, as waning consumer confidence, political upheaval, and U.S. competition form new challenges for independent dealers. After a bumpy ride in 2010, many used this past year to refocus on growing their image, to strengthen their support to dealers and their customers, and to secure long-term opportunities and relationships for future success. Looking back it was a busy year highlighted with new ownerships, acquisitions, and growing team members, store renovations and brand launches, and significant investments in new programs, services, and technologies. Home Improvement Retailing’s ‘2011 Banners Report’ reveals how groups are making the most of today’s retail climate to stay committed to dealers and customers. Ken Jenkins President Castle Building Centres Group Ltd. Another successful year for Castle saw the addition of 25 new member locations, with growth in both the LBM and Commercial segments. President Ken Jenkins says the company’s business model in Quebec gained significant momentum in 2011 with a number of new members in the region. “Our hardware distribution solution is in high gear and we continue to grow the hardware opportunities of our members,” he says. Global economic uncertainty continues to swirl, but Jenkins says Castle is excited about new opportunities in 2012. The group forecasts its largest annual increase of new 14 14 members based on current talks with independents. “We will continue to focus on the ‘transparency’ of Castle meaning our members have full exposure to our rebate programs, operating costs, and strategic plans,” says Jenkins. “Our focus on strong buying programs combined with an increasingly efficient business model makes Castle a formidable competitor.” Paul Straus President & CEO Home Hardware Stores Limited Home Hardware’s success during uncertain times is attributed to the commitment and passion of its dealer/owners, says Paul Straus, its president and CEO. “They focus on long-term relationships HOME IMPROVEMENT RETAILING • December 2011 Go to page 3 CONTENTS with their employees, customers, service providers, and their community, and it is these relationships that carry them through tough times.” As the economy slowly recovers, the retailer has used its dealer network to take advantage of new growth opportunities and has expanded with 88 new stores in the last three years. “As always, our attention has been on delivering the best program for independents and we have not changed our focus on helping our independents do what they can in good times and in bad times,” says Straus. Home dealers are adjusting to capitalize on both aging boomers and the expectations of a new generation of homeowners by ensuring they can offer knowledge and a wide selection of products at competitive prices. This year, Home Hardware launched a new intranet system for dealers to stay connected with the company, fellow dealers, and customers. “The tool allows users to join groups, search for information, and customize their experience to suit their specific needs,” Straus says. It also introduced a more versatile point of sales system to FEATURED ARTICLE accommodate collecting sales information, as well as launching a mobile site with customer service in mind for shoppers to locate stores, search products, view flyers, and create shopping lists. Robert Dutton President & CEO RONA Inc. Robert Dutton, president and CEO of RONA, says a tough economy has given it the opportunity to increase its market share. Dealers have reinvested more than $50 million in store relocations and renovations, and with the help of the company’s marketing program, have been able to attract and retain customers. This year saw the continued integration of the TruServ banner, which was acquired in 2010, with more than 100 new TruServ clients and the launch of three new banners along with a revamped sales and marketing team. “It is a challenging time for us, it’s a time of opportunities, and it is a time where creativity and passion have their place to build confidence for the future,” he says. RONA has been preparing for the 2012 launch of its new website as well as social media and mobile initiatives. Priorities for next year include continuing to grow its private label program and investing in new advertising platforms with new flyer programs and rebates for dealers. The company has also been heavily involved in programs supporting young members and future dealers with training programs, mentoring, youth retreats, and summer camps. “Next year is the year of the youth at RONA, and we are developing individuals who will become good managers and good leaders, and take their place in the business,” Dutton says. Yves Gagnon President & CEO Groupe B.M.R. Inc. Groupe BMR took a step forward in the integration of its services this year by creating the BMR credit card operated by its new financial services company. “The creation of this affiliated company together with the launch of our very own BMR training facility and the inauguration of our fourth LBM distribution centre has truly made 2011 a milestone in the company’s history,” says Yves Gagnon, its president and CEO. The training facility will welcome BMR dealers and employees from across Canada, offering professional education through a new program that puts the needs of dealers and their customers at the forefront. Looking forward to 2012, BMR will continue to grow with the launch of five new stores that will be built according to the new ‘BMR Eco’ concept, with the first opening expected for April. Customer approach will also be a key focus for next year as ongoing re-merchandising plans will be put in place to strengthen the emotional aspects of the consumer shopping experience. Tim Urquhart President & CEO TIM-BR MART Ltd. TIM-BR MART kicked off the year by integrating its team with Chalifour Canada and continued that process with the agreement to acquire IRLY Distributors Ltd. Coming to the close of 2011, Tim Urquhart, its president and CEO, says it has been gratifying to see a national team that understands retailing and is delivering full-scale distribution and sales support to the independent retailer. “The industry support for the first TIMBR MART National Buying Show in March was incredible and told us we hit the mark and delivered an exclusive show dealers and vendors could really get behind from a buying and selling perspective,” says Urquhart. The team is well into the planning of the next show and is looking forward to the same positive support and response. Next year, TIM-BR MART celebrates its 45th anniversary and Urquhart expects the momentum from 2011 to continue. “In just over a year, our company underwent significant strategic changes that made us a more powerful partner for the independent retailer in Canada. The transition demands both an immediate and long-term vision, and we will be continuing our efforts to refine processes and deliver programs that are of exceptional value to dealers and appropriate for their markets.” Bill Morrison President TruServ Canada Inc. This year was year one of TruServ’s new ownership under RONA, and a year of change, learning, and adjustments, says Bill Morrison, its president. “ It was a year, from our view, of positives and just a tremendous year of new directions and new relationships with customers. Busy and exciting would be the quick view from a TruServ lens,” he says. As the market continues to undergo fluctuations, Morrison believes the industry will see fewer and stronger players emerge in the next few years. From the challenges of new U.S. competitors to adapting to new technologies, political upheaval, and an uncertain consumer, the industry is learning to deal with new realities. TruServ will launch three new brands in 2012 – Tru Hardware, Tru Building Centre, and Tru Country and Garden – across the country. “Busy and exciting will still hold strong for 2012,” he says. The role of e-commerce continues to be important and TruServ is investing in new websites to fulfill the research needs and product demands of customers. Steve Buckle Vice-president & General Manager Sexton Group Ltd. Steve Buckle, Sexton Group’s vice-president and general manager, says the outcome of 2011 shows its members have had a successful year in their local markets despite challenging industry times. Nine new members joined the group over the last year as the western Canada-based company continues to concentrate on growing membership in the Ontario and Atlantic markets. “The Canadian market has held up very well in most regions and I would say the 2012 outlook is mostly the same,” says Buckle. “The focus of our buying group really is purchasing and working with our members on that very key part of their business.” HOME IMPROVEMENT RETAILING • December 2011 15 Go to page 3 CONTENTS 15 FEATURED ARTICLE In the last two years, Sexton Group has also been focusing on growing its image as not just a building materials company, but also a supplier of hardlines. It has been growing in this category and connecting members with the most competitive pricing to strengthen its opportunities, he says. continue to strengthen in 2012, as national marketing, loyalty programs, and an increased product offering will help dealers grow and boost sales. Despite lagging consumer confidence, Robinson says growth activity in the north and in the lower mainland of British Columbia will see IRLY continue to develop and remodel stores, and increase membership in 2012. Susan Robinson Rod Baergen President & CEO IRLY Distributors Ltd. Federated Co-Operatives Ltd. Overall, 2011 is set to be a record year for Federated Co-Operatives Limited (FCL) and its divisions. The company’s retail banners continue to focus on expansion through to 2012 in the convenience store market and with its banners Co-op and ValuMaster in rural areas. General merchandise marketing and www.dumondchemicals.com This year started out soft for IRLY, but gained strength as it progressed, says Susan Robinson, president and CEO. “The finalization of our acquisition by TIM-BR MART/Chalifour was a big help to our distribution and retail businesses in British Columbia and we see a tremendously powerful relationship in our TIM-BR MART/Chalifour partnership,” Robinson says. The benefits of the relationship will General Merchandise Marketing & Operations Director 16 16 HOME IMPROVEMENT RETAILING • December 2011 Go to page 3 CONTENTS operations director, Rod Baergen, says the company is currently upgrading facilities and revamping stores with things such as new fixtures and racks. It aims to have all stores re-merchandised in the next few years. “We are preparing our stores for a successful future with new merchandising and new POP materials to bring them up-to-date in light of the continued expansion of the big box competitors,” Baergen says. “Our focus continues to be selling to any independent that wants to purchase from us, even under their own banner which is most common in the secondary markets where our strengths lie.” ❖ FEATURED ARTICLE BARGAIN BUILDING MATERIALS LTD. 125, rue du Carrefour, Saint-Antonin, QC G0L 2J0 Phone: 418-868-0404 Fax: 418-868-0567 eMail: [email protected] Website: www.mabp.ca Retail Banners: Matériaux à bas Prix ltée / Bargain Building Materials Ltd. Member Stores: 4 Outlets In: Quebec (Lachute, Gatineau, Saint-Antonin), Ontario (St-Isidore) Affiliates: Castle Building Centres Group Consumer Sales: 93 per cent Contractor Sales: 7 per cent Marketing Strategies: Business model provides, among other things, strict cost control and high stock turnover. This model is based on purchasing and pricing policies. It offers its clients two concrete ways to save money – by using quality materials at low prices and industry seconds at even lower prices. Contact for Membership Information: Jean-Guy Quann, general manager CANADIAN TIRE CORPORATION 2180 Yonge St., Toronto, ON M4P 2V8 Phone: 416-480-3000 Website: www.canadiantire.ca Retail Banners: Canadian Tire, Mark’s, PartSource, Sport Check, Sports Experts, Atmosphere, Hockey Experts, Fitness Source, S3, Nevada Bob’s Golf, Intersport, Athlete’s World, National Sports, The Tech Shop Outlets In: All provinces and two territories Private Label Lines: NOMA, Yardworks, Mastercraft, Motomaster, Debbie Travis Collection, Hero, Blue Planet Marketing Strategies: Weekly flyer to 11.5 million homes across Canada, radio and television advertising, credit card statements, newsletters to credit card members, online at www.canadiantire.ca, eFlyers, direct email campaigns to eFlyer subscribers, launched new ‘Bring It On’ campaign in 2011, social media CASTLE BUILDING CENTRES GROUP LTD. 100 Milverton Dr., Ste. 400, Mississauga, ON L5R 4H1 Phone: 905-564-3307 Fax: 905-564-6287 eMail: [email protected] Website: www.castle.ca Retail Banners: Castle Building Centres, CBS (Commercial Building Supplies), Castle Specialty Member Stores: 284 Outlets In: All provinces and territories New Members in 2011 (As of September 1): 25 new member locations Affiliates: Epic Alliance Group Consumer Sales: 30 per cent Contractor Sales: 70 per cent Private Label Lines: Castlegard, All Install, Castlecare, Castlegreen Marketing Strategies: Focused buying approach ensures member profitability is industry leading; diversified business model that appeals to the LBM, commercial and specialty segments of the industry; focused on core building materials and hardware Contact for Membership Information: Les Gillespie, British Columbia; Alan Schoemperlen, Prairies; Bruce Holman, Ontario; Robert Legault, Quebec; Sandy Welsh, Atlantic; Ron Craighead, Commercial (CBS) DELROC INDUSTRIES LTD. 5955 205A St., Langley, BC V3A 8C4 Phone: 604-533-0599 Fax: 604-533-9192 eMail: [email protected] Website: www.delroc.com Member Stores: 116 Outlets In: British Columbia, Yukon, Alberta, Saskatchewan, Manitoba, Ontario, USA New Members in 2011 (As of September 1): 1 Affiliates: ILDC, Spancan Consumer Sales: 50 per cent Contractor Sales: 50 per cent Marketing Strategies: The company’s main objective is to provide maximum buying power for its members at a minimal cost and this approach has served its members well over the last 37 years. The company is a member of ILDC – one of Canada’s national buying co-operatives with a combined volume of more than $4.5 billion and more than 1,000 outlets coast to coast. Through its membership in ILDC, the company is also a member of Spancan, a hardlines buying group. These strategic alliances will further strengthen the company’s buying power, provide greater access to a range of products and suppliers, and continue to better position its members in an ever-increasing competitive marketplace. Contact for Membership Information: John Physick, general manager FEDERATED CO-OPERATIVES LTD. 401 22nd St. E., Saskatoon, SK S7K 3M9 Phone: 306-244-3311 Fax: 306-244-3403 eMail: [email protected] Website: www.coopconnection.ca Retail Banners: Co-op and ValuMaster Member Stores: 360 Outlets In: Western Canada Affiliates: Spancan, ILDC Consumer Sales: 70 per cent Contractor Sales: 30 per cent Private Label Lines: Shopmaster, Rialto, Co-op, Turf-Care, Sportster, Sonic, Harmonie Marketing Strategies: 60 flyers created for Co-op stores Contact for Membership Information: Doug Knowles, general merchandise sales & retail manager. GROUPE B.M.R. INC. 1501, rue Ampere, Ste. 200, Boucherville, QC J4B 5Z5 Phone: 450-655-2441 Fax: 450-655-1766 eMail: [email protected] Website: www.bmr.co Retail Banners: BMR, BMR Hardware, Potvin Bouchard Member Stores: 187 Outlets In: Quebec, Ontario, New Brunswick, Nova Scotia, PEI, and St. Pierre and Miquelon (France) New Members in 2011 (As of September 1): 8 Affiliates: OCTO Consumer Sales: 60 per cent Contractor Sales: 40 per cent Private Label Lines: BMR, EZE Tool, Evolution, Torkk, Eco Attitude, and Inspiration brand names Marketing Strategies: Flyer program, radio campaigns, regional advertising, and buying shows Major New Customers: Winchester BMR (Winchester, ON), Matériaux Pineault (Saint André, NB), Matériaux Nomelbro (Plessiville, QC) Contact for Membership Information: Bruno Baldessari, director of retail projects HOME HARDWARE STORES LIMITED 34 Henry St. W., St. Jacobs, ON N0B 2N0 Phone: 519-664-2252 Fax: 519-664-1260 eMail: [email protected] Website: www.homehardware.ca Retail Banners: Home Hardware, Home Hardware Building Centre, Home Building Centre, Home Furniture Member Stores: 1,071 Outlets In: All provinces and territories New Members in 2011 (As of September 1): 19 new Home locations to the end of October Affiliates: Alliance International LLC Private Label Lines: Beauti-tone Paint, Woodshield Stain, Weather Shield, Designer Series Paint, Tech-Stone Granite, Flexrock, Benchmark, Home Handyman, Home Gardener, Natura, Survival, Mark’s Choice, Home Pak, Home Builder, Home Security, Home Crete, Professional, River Trail, Active, Home Plumber, Classic, Home Electric, Kitchen Value, In Style, Value, Unival, Kuraidori Marketing Strategies: Home Hardware Stores Limited supports its independently owned stores through a national advertising program that includes flyers, catalogues, a commercial catalogue, and television and sports venue advertising. It is a marriage of a total marketing program and the dealer’s entrepreneurial HOME IMPROVEMENT RETAILING • December 2011 17 Go to page 3 CONTENTS 17 we train the LEADERS of TOMORROW At RONA, we are the only ones who think not only of your present, but also of your future, by training the leaders of tomorrow. PRESIDENT CAMP TALENT AND LEADERSHIP DEVELOPMENT RONA’s president and senior management believe that investing directly in young people is crucial. Every year, some 60 participants (merchants’ children and future owners) from all across the country come together to cultivate their talents. We are proud to have been the first to provide young leaders with such a unique mentorship opportunity starting three years ago. Work sessions, coaching workshops, and meetings with inspiring entrepreneurs Tours of new concept stores (New York, Montreal) Training on emerging market trends, leadership, and consumer habits YOUNG LEADERS NETWORK EXCEPTIONAL NETWORKING OPPORTUNITIES Sharing information on trends and business opportunities Networking gatherings 18 & 19 Go to page 3 CONTENTS Building a network of RONA merchants on Facebook via the New World Group FEATURED ARTICLE strengths. The program provides the retail tools to effectively and efficiently compete. Home Hardware continued as Aeroplan’s exclusive home improvement retailing partner in 2011. This partnership provides Home dealers with a significant competitive advantage, attracting new customers and providing added value to existing customers’ shopping experience. Home Hardware also continued its partnerships with kitchen expert Anna Olson and gardening expert Mark Cullen, who brings the exclusive Mark’s Choice line of lawn and garden products to consumers and helps dealers grow their lawn and garden category with a focus on product knowledge, customer service, and further strengthening their selection of live goods. Contact for Membership Information: Dunc Wilson, director, national dealer development INDEPENDENT LUMBER DEALERS COOPERATIVE (ILDC) 596 Kingston Rd. W., Ste. 100, Ajax, ON L1T 3A2 Phone: 905-428-0700 Fax: 905-428-0690 eMail: [email protected] Website: www.ildc.com Retail Banners: 23 Member Stores: 855 Outlets In: All provinces and territories Affiliates: Spancan Consumer Sales: 40 per cent Contractor Sales: 60 per cent Marketing Strategies: The members exchange flyer programs, etc., for information purposes Contact for Membership information: Andrew Battagliotti, general manager IRLY DISTRIBUTORS LTD. 7846 – 128 St., Surrey, BC V3W 4E8 Phone: 604-596-1551 Fax: 604-597-3693 Website: irlybird.com Retail Banners: IRLY Building Centres Member Stores: 43 (IRLY); 100 (Western) Outlets In: BC New Members in 2011 (As of September 1): 5 Affiliates: TIM-BR MART, Spancan, BSIA (Building Supply Industry Association), WRLA Consumer Sales/Contractor Sales: Varies by location Private Label Lines: Numerous and all branded IRLY and TIM-BR MART Marketing Strategies: IRLY Distributors provides a centrally driven flyer program, radio advertising, merchandising program, IRLY Building Centres credit card, gift card, onhold messaging, and a Special Events Trailer. Contact for Membership Information: Brad Dixon, director of business development, purchasing & branding 20 20 LA COOP FÉDÉRÉE 4225 rue St-Joseph, Trois-Rivières, QC G9A 5L9 Phone: 819-379-8555 Fax: 819-379-5252 eMail: [email protected] Website: www.unimat.ca Retail Banners: La Coop, Unimat, PlusVert, Unijardin Member Stores: 177 Outlets In: Quebec, New Brunswick, Ontario Affiliates: Spancan, ILDC, Interprovincial Co-op Private Label Lines: Home and garden, hand tools, automotive, paint and thinner, animal food, building materials, farm products. Marketing Strategies: Conversion of all La Coop flyers to Unimat flyers for year 2011; agricultural, horticultural; and maple grove flyers; customer strategies support by radio and television advertising programs. Consumer Sales: Distributors Hardware and Building Material Major New Customers: Unimat Contact for Membership Information: Jean-Claude Dionne RONA INC. 220, chemin du Tremblay, Boucherville, QC J4B 8H7 Phone: 514-599-5900 eMail: [email protected] Website: www.rona.ca Retail Banners: RONA, RONA L’Entrepôt, RONA Le Régional, RONA L’express, RONA Le Rénovateur, RONA Le Quincaillier, RONA L’express Matériaux, RONA Lansing, RONA Cashway, RONA Home & Garden, RONA Home Centre, RONA Hardware, RONA Building Centre, Réno-Dépôt, STUDIO par RONA, TOTEM, Botanix, Curtis Lumber, Chester Dawe, Matériaux Coupal, Dick’s Lumber, TruServ Member Stores: 900 Outlets In: Across Canada New Members in 2011 (As of September 1): 12 Private Label Lines: Close to 5,000 products Marketing Strategies: National TV ads; nationwide weekly flyers; national sponsorships with Maple Leaf Sports & Entertainment (Toronto Maple Leafs – NHL, Toronto Raptors – NBA, Toronto FC – MLS, and the Toronto Marlies – AHL); the CFL; the Canadian Olympic Committee; partnership with the Vancouver Canucks; partnership with the Calgary Flames Contact for Membership Information: Serge Vezina (Quebec), John Penner (Western Canada), John Longo (Ontario & Atlantic regions) SEXTON GROUP LTD. 46-1313 Border St., Winnipeg, MB R3H 0X4 Phone: 204-694-0269 Fax: 204-694-4507 eMail: [email protected] HOME IMPROVEMENT RETAILING • December 2011 Go to page 3 CONTENTS Website: www.sextongroup.com Retail Banners: Sexton Group Ltd. Member Stores: 280 Outlets In: Across Canada and France New Members in 2011 (As of September 1): 7 Affiliates: ILDC, Spancan Buying Group Consumer Sales: 70 per cent Contractor Sales: 30 per cent Marketing Strategies: The focus is on having an immediate impact on member’s bottom line and making sure members are able to competitively purchase a full range of building materials and hardlines products, backed up by one-on-one relationships that also address local market issues as they happen. Contact for Membership Information: Steve Buckle, vice-president & general manager SPANCAN (1999) CORP. 596 Kingston Rd., Ste. 100, Ajax, ON L1T 3A2 Phone: 905-428-0700 Fax: 905-428-0690 Email: [email protected] Website: www.spancan.com Retail Banners: TIM-BR-Mart (includes Chalifour Canada), La Coop Federee, Federated Coop, ILDC Outlets In: Across the nation Contact for Membership information: Mike Daniels, general manager TIM-BR MART 705-1601 Airport Rd. NE, Calgary, AB T2E 6Z8 Phone: 403-717-1990 eMail: [email protected] Website: www.timbrmart.ca Retail Banners: TIM-BR MART, ACE, PRO Member locations: 768 Outlets In: 10 provinces, Nunavut New Members in 2011 (As of January 1): 13 new dealers and 20 new locations Affiliates: ACE Hardware Consumer Sales: 25 per cent Contractor Sales: 75 per cent Private Label Lines: Insulation, house wrap, select hardware, moulding/trim, doors, and windows; private ACE-brand products Marketing Strategies: Air Miles Rewards Miles, national flyer programs, (conventional and electronic), in-store digital advertising, consumer website, Timberclub direct e-marketing, home/garage/cottage plans, consumer credit and gift cards, project financing, multi-media national advertising, EcoChoice, consumer and industry tradeshows (e.g. Cottage Life and TIMBR MART Contractor Show), Timbrkids Charitable Foundation, World Juniors Video Challenge, Hockey Canada sponsorship Contact for Membership Information: Jon Irwin, director, marketing & merchandising TORBSA LIMITED 2 Marconi Ct., Unit 13, Bolton, ON L7E 1E5 FEATURED ARTICLE Phone: 905-857-5811 Fax: 905-951-9923 eMail: [email protected] Website: www.torbsa.com Member Stores: 50 Consumer Sales: 15 per cent Contractor Sales: 85 per cent Marketing Strategy: Flyers, radio and TV advertising, and retail technology are handled by individual dealers Contact for Membership: Bob Holmes, general manager TSC STORES L.P. 1950 Oxford St. E., London, ON N5V 2Z8 Phone: 519-453-5270 Fax: 519-453-6068 eMail: [email protected] Website: www.tscstores.com Retail Banners: TSC Stores, TSC Villager Consumer Sales: 90 per cent Contractor Sales: 10 per cent Outlets In: 44 in Ontario and 2 in Manitoba Private Label Lines: TSC, Rolling Acres Feed Major New Customers: 200 wholesale accounts signed up as customers to TSC Country Pro Services; launched in 2011, this is TSC’s wholesale division. Contact for Membership Information: Kim Gillis WINDSOR PLYWOOD 20039 – 96th Ave., Langley, BC V1M 3C6 Phone: 604-455-9663 Fax: 604-455-5043 eMail: [email protected] Website: windsorplywood.com Retail Banners: Windsor Plywood Member Stores: 62 Outlets In: British Columbia, Alberta, Manitoba, Ontario, Washington, Montana Consumer Sales: 55 per cent Contractor Sales: 45 per cent Marketing Strategies: Marketing materials are centrally produced at the head office to ensure continuity of the appearance and message delivered to the consumer. In-house production allows promotions to be tailored to specific regions and stores giving dealers control of content and their advertising budgets. Contact for Membership Information: Curt Crego, chief operating officer ❖ www.dumondchemicals.com TRUSERV CANADA INC. 1530 Gamble Pl., Winnipeg, MB R3C 3A9 Phone: 204-453-9511 Fax: 204-452-6615 eMail: [email protected] Website: www.truserv.ca, www.truhardware.ca Retail Banners: TRU Hardware, TRU Building Centres, V&S, Country Depot; Launching in 2012 – TRU Country & Garden, UNIQ Quincaillerie, UNIQ Centre de rénovation Member Stores: 725 Outlets In: All provinces and territories New Members in 2011 (As of September 1): 93 Affiliates: Part of the RONA dealer network Consumer Sales: 90 per cent Contractor Sales: 10 per cent Private Label Lines: For TRU Banners: pri- vate label paint; Tools/Plumbing: FACTO, ProPulse, HAUSSMANN, UBERHAUS Marketing Strategies: To provide strong national flyer and catalogue programs to banner customers, as well as provide custom advertising options to independent customers; dealers can take advantage of a customized gift card program and a dealer loyalty program that rewards TruServ Canada dealers for working on their business Major New Customers: 34 new customers (hardware, variety), 59 new LBM customers Contact for Membership Information: Bonnie Birollo, director, sales & business development (west); Serge Vezina, director, sales & business development (east); Wilf Gerhardt, national manager, business development HOME IMPROVEMENT RETAILING • December 2011 21 Go to page 3 CONTENTS 21 www.hirmagazine.com 22 Go to page 3 CONTENTS [email protected] Preparing For A Profitable Ice Melt Season By: Ken Johnston W hen it comes to consumer ice melt products, fall can be a missed opportunity. Many retailers figure that all salt is the same, so they stock a few kinds of basic ice melt products to arm homeowners for winter. And most homeowners just grab the first bag of ice melt they see after the first snowfall. All ice melt products melt ice, but some have superior melting capacity or other features, which means they do a better job for homeowners and command a premium price. An educated store owner is better equipped to guide homeowners toward the most appropriate ice melt products for their needs, generating increased customer loyalty and profits. Educate Yourself The variety of ice melt products available can be simplified into three main categories: rock salt, salt blends, and salt alternatives. Rock salt (sodium chloride) is very popular among homeowners because it’s reliable and economical for keeping walkways clear and safe. It melts down to minus 15 degrees Celsius, so it works well in moderate climates and is safe to handle and store. But homeowners should manage it properly if they use it around landscaping as too much sodium chloride can harm vegetation. As rock salt melts ice, it creates brine that refreezes at a higher temperature compared with other ice melt ingredients or blends. This freeze/thaw cycle can cause damage to concrete driveways and walkways. To limit any concrete damage, you can recommend that your customers remove slush and brine before it has a chance to refreeze. Salt blends are also very popular. They typically contain sodium chloride mixed with magnesium chloride, calcium chloride, and other additives to provide additional benefits such as fast-acting melting power, extended freeze/thaw cycles to protect concrete surfaces, safety for pets and vegetation, and colouring to assist with even application. Depending on the blend, they can melt ice in temperatures as low as minus 31 degrees Celsius. Salt alternatives offer increased melting power and other benefits compared with sodium chloride, so, like salt blends, they can be better suited for colder climates or for customers who have landscaping or concrete concerns. Two popular choices include magnesium chloride and calcium chloride. Magnesium chloride is an excellent choice for homeowners. It melts down to minus 26 degrees Celsius and is friendly to landscaping and concrete when used as directed. Calcium chloride also has superior melting power and can melt ice down to minus 32 degrees Celsius. However, pure calcium chloride can burn skin, so homeowners should wear goggles and gloves when working with it. It can also harm landscaping and concrete. Studies have shown that improperly applied calcium chloride can cause significant damage to concrete by chemically ‘attacking’ it, even before freeze/thaw cycles take place. Retailers’ Challenge The variety of ice melt products benefits customers and retailers alike. The challenge for retailers is to guide their customers to the ice melt choices that are best for them. Talk to your suppliers about which product mix will work best to meet the needs of your customer base and understand the specific needs that each product meets. You’ll be able to ask the right questions when customers enter your store and guide customers toward the right solution. Place ice melt displays near the entrance and exit for better visibility and for customer convenience. Heavier bags of ice melt are easier to carry shorter distances to parking lots. Many successful retailers also leave shipments of ice melt products on pallets, both inside and outside the store. Consider late fall as the ice-melt preseason. Don’t wait until after the first storm hits. If you do, your customers will likely buy the first bag of ice melt they see. Instead, start merchandizing your ice melt products and educating your customers in late fall. This allows homeowners to stock up on premium ice melt products that meet their specific needs before winter. You’ll generate advance, rather than lastminute, sales while increasing customer loyalty and profits. ❖ Ken Johnston is director of consumer and industrial sales at Sifto Canada Corp., which manufactures and markets the Sifto line of residential de-icers. HOME IMPROVEMENT RETAILING • December 2011 23 Go to page 3 CONTENTS 23 [email protected] The Latest In Windows And Doors An oversized custom front door incorporating window design and upgraded hardware makes for an inviting and appealing entranceway. By: Daniela DiStefano H omeowners know upgrading doors and mouldings is a simple and cost effective way to add visual impact to the home. “Those slight changes in moulding, panelling, and door styles can really make a house into a home and alter the look and feel of a room,” says Peter Branidis, branch manager for Moulding and Millwork Ontario’s moulding division. Implementing different styles of paneled doors and trim adds the value and competitive edge to a project that will attract homeowners looking for quality extras. Demand for windows and doors, especially in the residential building market, is forecast to rise to 6.8 per cent each year to $192 billion globally by 2015, says a study from the Freedonia Group. And with increasing consumer awareness and government support in the form of tax credits, the 24 24 demand for energy-efficient products will be the fastest rising category in the market. Trends And Demands Textured doors have been popular in the market for some time, but Brandis says he has been seeing a strong shift to smooth products as homeowners seem to be more attracted to the finish and aesthetics. Solid core doors or sound reducing products are also being requested as the market shifts from solid wood doors. Fibreglass doors are another popular option. Brad Lowes, marketing manager at JELD-WEN Windows and Doors, says higher-end fibreglass composite doors are growing in demand. The company’s custom fibreglass door products emulate the look and feel of wood. “I’ve been in the industry for more than 20 years and I can’t tell the difference between the fibreglass door and the wood door,” he says. With the implementation of higher ceil- HOME IMPROVEMENT RETAILING • December 2011 Go to page 3 CONTENTS ings in today’s home construction market, there has been a dramatic rise in the demand for eight-foot interior doors in Canada from the standard six or seven foot offerings. “Whether the customer chooses to stick with a standard door height and add a tempered window above the door or go with an extended door height, these projects create focal points for the home,” Lowes says. These options are also extended to front doors where customers will most likely be looking for a piece that will shape the curbside appeal of the home. Custom and non-traditional door offerings represent almost limitless opportunities for contractors and designers to assist their clients in making a statement that will complement their design visions. Mix and matching materials, colours, and textures can bring natural light into the home and make it feel warm and inviting. Gaining in popularity are French or Shaker style double doors used to divide the dining room, den, or family room from the rest of the home which are making a comeback from the Victorian era, Lowes says. The double door system is also prevalent for bedrooms to add a double entry system to the master suite with decorative glass patterns and textures to add additional emphasis. Contractors and even DIY homeowners also appreciate the abundance of pre-assembled or pre-hung door options available for Large windows let in more natural light and can create a more spacious feeling inside the home. their project needs. These offerings emphasize greater variety and design and save a considerable amount of time for busy professionals as they include the doors and frames. Pre-hung packages are most popular for basement renovations and replacing existing doors around the home. “They can be purchased at virtually any building centre and come almost entirely put together. They’re hinged, put in a frame, and have a hole for the doorknob,” Brandis says. “The package just needs to be installed in the opening.” Moulding details add an extra distinguishing feature to any door design and easily enhance the overall impact to the home. Crown moulding is becoming a popular request and Brandis says medium-density fibreboard (MDF) products are most widely used. Professionals were reluctant to choose MDF, but changes in the composition have it far lighter with a more consistent finish than wood. Window Offerings For years contractors and builders could only choose between wood and vinyl windows, but now the option of hybrid window materials are giving professionals more offerings to pass on to clients. “Hybrid windows are a combination of two different materials, whether it be a vinyl and aluminium or a wood and aluminium blend,” says Lowes. As material selection has grown so has exterior colour choices and window pallets have grown from basic white to meet the market demands and design preferences of homeowners from British Columbia to Quebec and beyond. Homeowners are becoming far more educated on industry offerings and options when embarking on their renovations and, Lowes says, professionals need to keep up the trends and changes their clients want. “Home renovation shows are quite popular and homeowners are doing their research so they can make informed renovation decisions,” he says. Historically what are known as slider or glider windows have been the most popular, but Aaron Latimer, vice-president of marketing at All Weather Windows, says casement windows are the best choice today. “They are cranked open and then cranked shut and locked, making them the most energy-efficient operating window available for keeping heat in or out,” he says. Upgrading glass options to tri-pane from dual pane windows is another upgrade customers are willing to make to improve overall performance and increase thermal sound insulation in the home. Just as the demand for taller interior doors continues, Latimer is keeping his eye on the rise of larger window requests. “Customers are looking to let in natural light and want the Casement windows are a popular choice for customers looking for functionality and energy efficient upgrades. outdoors to be visible from inside the house for better views so the trend is growing,” he says. Bay windows are still widely popular in kitchens and living rooms and do an excellent job of making the room feel spacious. In rooms where homeowners are looking to keep the natural light but increase privacy, typically in bathrooms or basements, textured or patterned glass give the protection they are looking for without having to add window treatments. Contractors can also suggest custom windows of unique shapes and sizes as a way to create visual interest both in and outside of the home. New Look For Garages The garage door is also getting more con- sideration. Once the place to store junk and old sports equipment, today it has become an alternative living space as the home for the Hot Rod or ‘man cave.’ “The garage is much more of a predominant living area and the garage door is a big part of that,” says Travis Reynolds, national marketing manager at Steel-Craft Door Products Ltd. As most homebuilders are constructing the garage attached to the front of the home rather than detached at the rear, the garage door has become the largest face on the front of the house. As a result, homeowners are looking for garage door systems that will not only do their job, but also compliment the exterior look of their home. Reynolds says in the last decade consumers have become much more specific about incorporating doors that are more customized than the standard raised panel of years gone by. They are looking to match their brick colour, vinyl siding, stucco, or front door and the industry has responded by producing a multitude of colour options to meet their needs. “From door colours to handle designs, decorative hinges, and textures, we are seeing a larger demand for decorative options,” he says. The garage door has evolved and Reynolds says homeowners are looking for something that will distinguish their home from their neighbour’s, plus they are willing to pay for a product they feel will add value and character to their home. ❖ Daniela DiStefano is staff writer for Home Improvement Retailing (ddistefano@power shift.ca). The garage door is typically the largest face at the front of the home, and today’s offerings provide the overall look and feel homeowners are looking to achieve. HOME IMPROVEMENT RETAILING • December 2011 25 Go to page 3 CONTENTS 25 [email protected] Enhancing The Contractor Experience By: Daniela DiStefano W hen Marie-Claude and Mario Audet took over the RONA store on Père-Lelièvre Boulevard in Quebec City, QC, in 2010, it was important for them to diversify the products and services available to both homeowners and professional contractors. The third-generation dealers, and owners of a second RONA affiliate store in Saint-Marcdes-Carrières, QC, expanded to 4,000 square feet with more than $1.4 million in investments to enhance customer experience. One of the most drastic changes was the design of a specialized paint department catering solely to contractors. “Before the renovations, we had one paint department serving retail and contractor customers, but we decided separating into two departments would ensure we could take better care of contractors’ needs,” says Eric Cyr, general manager. As Sico brand experts, the store already had strong relationships with many local contractors, but the team was looking for ways to improve the quality of service and attract new clients. New Initiatives Designing specialized database soft- Materiaux Audet’s specialized paint department was renovated in 2010 to exclusively service professionals in Quebec City, QC. ware specifically for contractors has been one of the most successful new initiatives of the contractor paint department. “We give the in-house software to our professional customers and they can install it on their personal computers,” Cyr says. Four full-time employees ensure the department is always ready to answers contractor questions and fill their requests in store. 26 26 HOME IMPROVEMENT RETAILING • December 2011 Go to page 3 CONTENTS www.atlaspolar.com “From there, they can directly place their product orders to be picked up at the store the next morning.” Utilizing the database to place orders means contractors have the flexibility to request materials from their home or office on their own schedules, even if the store is closed and have them ready when needed. Since launching the database earlier this year, 80 professional customers have started using the service and Cyr hopes the number will continue to grow. “Contractors are still calling and coming into the store to place their orders, but many are finding this database option convenient.” Utilizing the database also eliminates administration duties for contractors as the program stores order information that would be needed for accounting purposes – an added bonus for many of the small companies and selfemployed professionals who would typically have to take care of all the paperwork themselves. During the renovation process, Matériaux Audet hired two team members from a competitor to bring in additional expertise for the new department. “We have four full-time employees for the department which is a big part of its success,” Cyr says. “Some of them have more than 30 years of experience working with 27 Go to page 3 CONTENTS professionals and all department staff has been trained to answer contractor questions and give them advice based on their project needs.” Specific Needs Opening the store at 6:30 a.m. is another way the paint department tends to the specific needs of contractors. The specialized department has been open for a little over six months now and Cyr says it has brought an increase in business to Matériaux Audet. “I would say the local market has gone down 10 to 20 per cent in the last little while, but we’ve seen an increase in sales of almost 15 per cent,” he says. Providing prompt and attentive service to painting professionals has brought in about 10 new regular customers, expanding the department’s clientele from one or two person operations, to companies with more than 20 professionals. “Big or small, businesses know they can come here and that we are going to deliver,” Cyr says. “We’ve been able to decrease wait times and increase one-on-one service to stand out in the local market.” ❖ Daniela DiStefano is staff writer for Home Improvement Retailing (ddistefano@ powershift.ca). New initiatives such as an online order database, longer operating hours, and tailored service have drawn new clients to the store. P roduct S potlight Short Work Of Pumping The Slide-N-Pump makes short work of pumping or siphoning water anywhere, all without the need of or danger associated with electricity and water. Attach to a standard garden hose to both ends, insert the open hoseend into any volume of water or other liquid, and it will start it flowing. Number Of Cuts Doubled IRWIN Tools’ 4-Point Snap Blade snaps on the score to create four cutting points, doubling the number of cuts made by standard carbon blades. Combining the toughness of a traditional utility blade with the versatility of a snap blade, it gives tradesmen instant access to a sharp new point without the hassle of having to constantly change blades. Cleaver, Chef’s Knife Combined The Granton Edge Santoku Knife is made by Victorinox Swiss Army. It combines features of a cleaver and a chef’s knife. The ice-tempered, high-carbon stainless steel blade retains sharpness and carries a lifetime warranty against defects. Tape For The Holidays Duck Brand’s EZ Start Printed Packaging Tapes are now available in festive holiday patterns, ‘Reindeer Games’ and ‘Cinnamon Snow’ for packaging holiday gifts as an alternative to traditional paper and ribbon. Wall Mount Frees Up Counter Space Moen Canada’s 90 Degree Rothbury and Waterhill wall mount faucets pair well with vessel sinks and provide extra counter space in the bathroom. The faucets are certified to meet WaterSense criteria and offer a 5.7 litres per minute flow rate for water savings. Bulky Tool Belts Eliminated Napoleon Adds To Grill Line stubborn packaging and ties with ease and includes a snap-in combination screwdriver for prying open small compartments. It is part of the ShopBoss line of multipurpose tools. Colours For Men CIL Paints’ Ultimate Man Caves colour collection is designed to appeal to male customers. The collection features 20 of the most popular paint colours for men with names such as ‘Iced Vodka’ and ‘Beer Time.’ Deck Line From Recyled Content Trex’s Enhance Decking is a high-performance composite decking line manufactured with 95 per cent recycled content including reclaimed wood, sawdust, and plastic bags. Each deck board is offered in both square and grooved profiles measuring 1” x 5½”. It is available in Clam Shell, a deep charcoal, and Beach Dune, a warm honey brown. Wooster Expands Plush Line Napoleon Gourmet Grills has made some new additions to the Prestige 500 Series line of barbeques for 2012. The series consists of two editions, the Prestige I and the PRO models available in stainless steel or a black porcelain. 28 28 The ToolVest eliminates bulky tool belts with 20 pockets and 14 quick access pockets to keep tools ready for use. It zips on and off like a jacket and the vest frame is made from breathable and durable mesh fabric for superior strength and circulation. Fluorescent panels keep workers visible and safe in the dark. Tools Opens Packages Fiskars’ Package Opener cuts through HOME IMPROVEMENT RETAILING • December 2011 Go to page 3 CONTENTS Wooster is expanding its Micro Plush line to include microfibre options of 9⁄16” and ¾” nap heights. Micro Plush rollers are made with soft white microfibre that delivers a very uniform, even finish with all paints and enamels. ❖ www.castle.ca/freedom [email protected] Calendar Of Events March 10-13 – The International Home + Housewares Show, McCormick Place, Chicago, IL. Visit: www.housewares.org JANUARY 2012 Jan. 10-12 – International Horticultural Lawn and Garden Trade Show and Conference, Toronto Congress Centre, Toronto, ON. Visit: www.canadanursery.com March 16-25 – Canada Blooms Flower and Garden Show, The National Home Show, Direct Energy Centre, Toronto, ON. Visit: www.canadablooms.com March 30-31 – The 2012 TIM-BR MART National Buying Show, Toronto Congress Centre, Toronto, ON. Visit: www.timbrmart show.com/ APRIL April 24-26 – The Kitchen & Bath Industry Show, McCormick Place, Chicago, IL. Visit: http://www.kbis.com/ MAY May 1-3 – The National Hardware Show, Las Vegas Convention and Visitors Authority, Las Vegas, NV. Visit: http://www. nationalhardwareshow.com ❖ Jan. 14-17 – Canadian Home Furnishings Market, International Centre, Toronto, ON. Visit: www.tchfm.com Jan. 18-20 – WRLA’s 2012 Prairie Showcase Buying Show & Convention, Prairieland Park, SK. Contact: ckelly@wrla. org MARCH March 4-7 – International Hardware Fair, Koelnmesse Convention Center, Cologne, Germany Visit: http://www.eisenwarenmesse.com/en/iem/home/index.php People and represents the majority of new home builders, renovators, land developers, trade contractors, building product suppliers, and other professionals. Masco Keith Allman is group president, responsible for Brasstech, Delta Faucet Co., Hansgrohe, Liberty Hardware, Masco Bath, Masco Canada, and Mirolin Industries Corp. Most recently, he was president of Delta Faucet Co., a position he took over in 2007. He joined Masco in 1998 as vice-president, manufacturing, at cabinet maker Merillat Industries. CHBA Ron Olson, general manager of Boychuk Developments, is president of the Canadian Home Builders’ Association (CHBA), the voice of the Canadian residential construction industry. He has been a member of the association since 1974. He will serve a 20-month term. Established in 1943, the CHBA has more than 8,000 member firms MasonryWorx Jack Prazeres is president of MasonryWorx and will lead the board and executive committee. He succeeds Dante Di Giovanni who will remain on the executive committee as past president. MasonryWorx represents manufacturers, suppliers, and skilled professionals from across Ontario, providing government information about the use and benefits Jack of brick, block, and stone Prazeres masonry products. Richelieu Antoine Auclair is vice-president and chief financial officer of Richelieu Hardware Ltd. Prior to joining the company, he was vicepresident and controller at CAE Inc. IKO Malcolm Orr is national accounts manager for IKO’s Canadian residential sales group. He was previously sales manager for Quebec and Atlantic Canada. Colin Rancier is sales manager – one step distribution for Western Canada. He was formerly national accounts manager (Western Canada). Vince Carrier is sales manager – one step distribution for Western Canada. Previously, he had been a sales representative in British Columbia. Vincent Chicoine is sales manager for its Quebec operations. He had been sales supervisor for Montreal, QC. Habitat Council Henry Banman, senior executive vice-president and founding partner at All Weather Windows, has accepted an advisory position with Habitat for Humanity Canada’s National Leadership Council. The National Leadership Council is a group of Canadian business and community leaders who believe that building stronger communities depends upon safe, affordable, and accessible housing. “When you’ve been a part of Canada’s building industry for as long as we have, you see first-hand that there’s a tremendous need to provide critical resources for thousands of people,” says Banman. ❖ HOME IMPROVEMENT RETAILING • December 2011 29 Go to page 3 CONTENTS 29 [email protected] Publisher’s Perspective The ‘Buy Canadian’ Myth W hat would happen if Canadians started to ‘Buy Canadian,’ or more likely ‘Buy North American?’ Earlier this year, Diane Sawyer, the anchor of the ABC World News television program, did a week-long special report focusing in on just that. The gist of the series is that Americans don’t buy many U.S.made products anymore and are, therefore, responsible for the persistent and relatively high rate of unemployment in the country. In one report, they took a typical middle-class American’s home and removed all the items that were not made in the USA. When the moving trucks were done, the only thing left was the kitchen sink. The conclusion Sawyer drew was that if every American spent just $64 more than normal on USA or Canadian made items, it could create up to 200,000 new jobs. Grass Roots Campaign Of course, this prompted a grass roots 30 30 campaign on both sides of the border with Americans and Canadians demanding that we start buying nationally to bring jobs back. Forbes magazine quickly took exception to the Sawyer report. It accused the network of selling dangerous, nationalistic propaganda. For example, it noted one of the points made in the Sawyer report is that in 1960, foreign goods made up just eight per cent of Americans’ purchases. Today, nearly 60 per cent of everything Americans buy is made overseas. However, back in the ‘golden age’ of the 1960s, when imports were oddities, the per-capita U.S. income was $2,914. In 2009, per-capita income was $46,411 which in real, inflation-adjusted terms, even with a U.S. population increase from 181 million to 307 million, is almost triple what it was in 1960, about $42,277 versus $15,669 in 2005 dollars. So while Americans are buying more overseas goods, their income has soared during the same period. In fact, the magazine contends U.S. manufacturing is thriving and leading the world in terms of value of output. While Americans today are less likely to find products manufactured in the United States in their homes, this is because U.S. manufacturers have moved on to producing higher value products. Instead of being focused on products that consumers find in retail stores (furniture, hand tools, sporting goods, flatware, draperies, carpeting, and clothes), American factories are producing the highest value products – pharmaceuticals, chemicals, airplanes, sophisticated componentry, technical textiles, and other items often sold directly to other businesses. The one area where U.S. manufacturing is not thriving is employment. Manufacturing employment peaked in 1979 and has been on a downward trajectory ever since. However, that is the point of economic growth – making more with less is the goal. It is not that there are no jobs out there, it is that skilled workers are in short supply. Consider, a recent report from Deloitte and the National Association of Manufacturers (NAM) says U.S. manufacturers have 600,000 unfilled positions because of a lack of qualified skilled HOME IMPROVEMENT RETAILING • December 2011 Go to page 3 CONTENTS workers and most manufacturers expect the problem to worsen in the coming years. Similar concerns about shortages of skilled workers, especially with the growing number of Baby Boomers who will soon be leaving the labour force, have been voiced throughout the continent and in most of the developed world. So if ‘Buy American’ or ‘Buy Canadian’ campaigns did gain traction, where would we find the workers? And, those who point to immigration as a solution are way off base because the countries with the highest populations often have the lowest levels of education. The competition for skilled workers is global, with every developed economy facing shortages going forward. Uneducated, Unskilled There is a labour supply out there. When you look at the demographics of the unemployed, it is the uneducated, unskilled who cannot find jobs. Often, these are primarily young people. That these people are unable to find jobs is not a failure of the manufacturing industry, it is a failure of the education system which could not motivate them to stay in school and our social system that was unable to get a large chunk of our youth to get the training they need to fill these jobs. And, if they are motivated, we fail to provide them with access to the education they, and our economy, need unless they are willing to spend years digging out from under a mountain of debt. The sad thing is as our world gets faster and we need more productivity from fewer people, the demand for skilled workers will grow even more. However, it is a lot easier to blame offshore manufacturing for economic woes than address the real issues, the real problems. ❖ Dante Piccinin Publisher and Editorial Director [email protected] www.regalideas.com [email protected] Aluminum Railing BLACK NEW! WHITE YARD BRONZE TAUPE BEIGE NEW! QuickStep Quick ® QuickSnap Quick Aluminum Stair Stringers ® Aluminum Columns Never Rust Powder Coated Aluminum Tread Increments from 1 to 9 Steps 10’ 8’ White top view Yard Bronze Black QuickKit Quick Kit ® Aluminum Fencing System As seen on Extreme Makeover… Low maintenance aluminum fencing that looks as good as it did the day you installed it… for years! Contact: Ernie Couillard, VP Sales and Marketing (303) 681-3104 - [email protected] - regalideas.com 31 Go to page 3 CONTENTS Full Page: 8.125" wide x 10.875" high - v.18 - September 23, 2009 Three piece powder coated column wraps around existing posts or can be used instead of wood posts. www.castle.ca/revolution Name: Vicki Hagel Occupation: Owner of Cook Street Castle Building Centre. Successful, independent business woman. Revolutionary behaviour: Embraces change. People oriented. Free to run our business our way. We deliver knowledge, solutions, hardware and lumber – every day. M.O.: Service. Service. Service. Our staff is knowledgeable and experienced. Our store is a city-block long with a drive-thru lumberyard, located in the heart of downtown Victoria. Fears: Losing our freedom. Losing our independence. On being a Revolutionary: We buy whatever we want from any vendor we choose. Since our store has a large hardware footprint, the Castle/Orgill focus on “North American Pricing” has been beneficial to us. Our buying group does not dictate what we do, or how we do it. It’s our free will, business acumen and independence that have made us successful. For more detailed information: www.Castle.ca/Revolution Warning: Independence is not for everyone. Do you have the passion to lead? & hardware Your trusted building supply partner® Retail. Commercial. Specialty. 32 Go to page 3 CONTENTS Contact your Business Development Manager West Alan Schoemperlen (204) 771-1509 BC Les Gillespie (250) 469-4744 Ontario Bruce Holman (647) 228-1414 Quebec Robert Legault (514) 208-4158 Atlantic Sandy Welsh (902) 471-7113 [email protected] [email protected] [email protected] [email protected] [email protected] castle.ca/freedom