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A Powershift Publication l Volume 19, Number 6 l December 2013

34 Contractor Business Technology Makes Jobs Easier

31 Mobile Payments Two Methods Take Lead

11 Female Shopper Colour And Light Attract Sales

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CONTENTSA POWERSHIFT PUBLICATION

VOLUME 19, NUMBER 6 December 2013

EDITORIAL DIRECTOR & PUBLISHER Dante Piccinin

EXECUTIVE EDITOR Joe Hornyak

STAFF WRITERKaren E. Treml

ART & PRODUCTION Keith Boa

VICE-PRESIDENT ADMINISTRATION & CIRCULATION

Catherine J. McKerchar

ADVERTISING SALES Dante Piccinin

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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: hir@powershift.ca. Advertising, and Editorial inquiries should be made to the above address. Issue dates are: Jan/Feb; March/April; May/June; September; October; Nov/Dec. Yearly subscription rates: Canada: $76 plus GST*; U.S. and other: $110/yr. Single Copy prices: Canada: $15 plus GST* prepaid; U.S. and other: $30 prepaid. HOME IMPROVEMENT RETAILING assumes no responsibility for the validity of the claims in items reported or for the opinions expressed by our writers. All rights reserved. Contents may not be reprinted or duplicated without written permission. Publisher assumes no responsibility for unsolicited manuscripts and art. Published by Powershift Communications Inc. PRESIDENT, D. Brian McKerchar; VICE-PRESIDENTS, Dante Piccinin, Catherine J. McKerchar, John L. McLaine; CORPORATE SALES & MARKETING MANAGER, Jennifer Bronsema.

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5 Editor’s ViEw Lessons From 1812

6 industry updatE

7 in storE

8 it’s your MonEy

9 priVatE wEalth Balancing Business: Start-up To Succession

11 FEMalE shoppEr Use Colour And Light To Attract Sales

12 GoinG GrEEn Green Initiatives – Big And Small

13 Focus on custoMErs Understanding Consumer More Important

15 ManaGEr’s Mind The Good Boss

38 publishEr’s pErspEctiVE Banners Uncertain About Year-to-come

Departments

Features17 19th annual spEcial

rEport on bannErs 2013: One Year Trend To Optimism

28 thE coMpEtitiVE adVantaGE Investment In Training

29 turn businEss cards into businEss

31 MobilE payMEnts No Clear Solution, Yet

33 thE consuMEr is nEw dEstination

34 contractor businEss Good Bang For The Buck

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eDitor’s View

5HOME IMPROVEMENT RETAILING • December 2013

Joe HornyakExecutive Editor

jhornyak@powershift.ca

The War of 1812 was the last mili-tary conflict which saw American troops invade Canada. During the course of the war, both land and

naval battles were fought on the American/Canadian frontier, most notably in the Battle of Queenston Heights, the first major battle in the war. Here British regulars, Canadian militia, and Mohawks Indians repelled a bid by the Americans to get a foothold on the Canadian side of the Niagara River.

Since then, relations between our two countries have been mostly harmonious with Canada depending on the U.S. for a great deal of its economic prosperity. Up until the last two decades, it also saw Canadians looking longingly at the stores available in the U.S and wondering why we didn’t have them here.

Changing In The 1990sThat, of course, started changing in the

1990s. In 1994, Home Depot Inc. bought a 75 per cent stake in a Canadian version of itself – Aikenhead's Home Improvement Warehouse – from the Molson Companies.

That same year, Walmart purchased the Woolco Canada chain from F. W. Woolworth Company.

With the arrival of Walmart and Home Depot, Canada was on the map for U.S. retailers. Over the next 20 years, we saw Lowe’s, Target, and a number of others heading north.

However, some of the glow is coming off the Canadian experience for U.S. retailers.

This month, Big Lots, the closeout retail-er, said it was leaving the country. Its stay was short-lived. It entered Canada in July 2011 with its purchase of Liquidation World Inc. After a loss of $52 million to $57 mil-lion this year, it plans to close its stores by next spring.

More curious is the saga of Target, Walmart’s biggest competitor in the U.S. Clearly a success story there, after it pur-chased the leases on 189 Zellers stores in January 2011, its arrival in Canada was eagerly anticipated. In March of this year, it opened its first three stores. After that, the stores opened in bunches and by year end it had around 120 stores in this country.

But, a funny thing happened between then and now. After the initial curious vis-its, Canadians stopped flocking to Target stores. If you accept the party line from Target Canada president Tony Fisher, the problem was it needed to get up to speed. The longer the stores are open, the better the job they are doing because they have been able to gather more information about how Canadian customers shop and adjust inventory accordingly. In fact, he admits they were caught a little by surprise as the differences between Canadian consumers and their counterparts in the U.S. were greater than they expected. This created the phenomenon of empty shelves and clear-ance sales at the same time in the stores. Target executives also theorized that shop-pers north of the border don’t share the American habit of going to just one store to buy goods in a variety of different categories.

Price is another problem, sup-posedly. Canadians who had already shopped at Target stores in the U.S., anticipated the same low prices and

they were somewhat surprised that prices here were higher. The threat of the arrival of Target also prompted its competition to cut prices, add stores, and expand product offerings.

While we suppose all of these are legiti-mate, it was more likely a case of expecta-tions exceeding the reality. If first impres-sions count, visits to those first Target stores were disappointing. Shopping one of these stores for the first time was a situation of roaming around the store looking at shelves with not a lot of access points.

Limited SelectionAs well, some of its explanations are

stretching it a bit. We would guess the vast majority of Canadians have never been in a Target store so prices should not be an issue. If the pricing was, it was because they were seeing a limited selection of items at different price points. If you have $25 to buy a pair of running shoes, you want more than one or two to choose from. And where once you could argue that Canadians didn’t prefer one-stop shopping, that is no longer the case as Wal-Mart’s supercentres have clearly shown.

Hopefully, Target will get it right as shoppers do benefit from choice.

And perhaps there is a lesson from the Battle of Queenston Heights. One of the explanations for the American defeat was a poorly managed offensive. As well, the Canadian militia victories over the U.S. forces helped promote the development of a distinct Canadian identity. One wonders if the same is happening in retail. American retailers are mounting poorly managed offensives which fail to take into account the distinct Canadian identity. ❖

Lessons From 1812

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HOME IMPROVEMENT RETAILING • December 20136

inDustry upDate

IHA Report Identifies Trends

Overall global housewares retail sales increased 1.2 per cent in 2011, says the 2013 IHA ‘State of the Industry Report.’ It shows average household housewares expenditures in the U.S. increased 0.4 per cent in 2011 and the average size of IHA member compa-nies increased to $21.7 million. Size distri-bution shifted upward slightly as 67 per cent of these companies reported annual sales under $10 million in 2011. The overall share of housewares sales increased slightly for discounters and supercentres. The top three categories for 2011 were cook and bakeware (18.3 per cent), kitchen tools and accessories (14.9 per cent), and kitchen electrics (11.7 per cent).

McIlveen Distributes AZEK

McIlveen Lumber Industries will dis-tribute the full line of AZEK premium, low-maintenance, exterior products in Alberta and S a s k a t c h e w a n , says CPG Building Products. McIlveen already distributes TimberTech com-posite decking, rail-ing, and accessories. AZEK Building Products and TimberTech were recently united to create CPG Building Products.

Canada’s Softwood Production Increases

Canada produced 54.5 million cubic metres of softwood lumber in 2012, up five per cent from 2011. Softwood lumber accounts for almost 98 per cent of Canadian lumber produc-tion. While softwood production rose in 2012, hardwood lumber production declined 13.2 per cent to 1.3 million cubic metres. While Canada is home to a variety of species, the spruce, pine, and fir species accounted for 90 per cent of the nation’s softwood production. The top three softwood producing provinces are British Columbia, Quebec, and Alberta. British Columbia (53.5 per cent), accounted for more than half of Canada’s softwood production in 2012, of which 83.1 per cent (24.2 million cubic metres) was spruce, pine, and fir.

Lynx Equity Purchases Lighting Distributor

Lynx Equity Limited has acquired Valuelight Limited, a Canadian lighting fixture man-ufacturer and distributor for interior and exterior lighting. “As LEDs are increasingly becoming the market standard, Valuelight’s reputation for responsiveness to customer needs, along with their innovative product line, make it an ideal addition to the Lynx group of companies,” says Dustin Mandel, partner at Lynx. Valuelight joins Lynx’s portfolio of 28 subsidiaries which includes lighting businesses, Southwest Energy Control Systems and TechniLite.

Ply Gem Seeks Innovation

Ply Gem, a manufacturer of exterior build-ing products, has introduced an initiative to give the best and brightest innova-tors, inventors, engineers, and designers a chance to turn their innovations into real-ity. Ply Gem Build Forward is specifically seeking ideas for new materials, installa-tion technologies, and/or manufacturing processes to improve existing products or develop new ones. “One of the pillars of Ply Gem’s success is innovation, consis-tently developing new products, materi-als, and processes that move the industry forward,” says Lee Clark-Sellers, innova-tion officer, Ply Gem. “Through the Build Forward program, we want to collaborate with others to push the envelope and ulti-mately help us improve home building and remodeling.”

Spectrum Moves Headquarters

Spectrum Brands Holdings, Inc. has moved its world headquarters, several North American divisional operations, and its technology centre into a newly-built and more economical and energy-efficient facility in the Discovery Springs area of Middleton, WI. Among the many high-lights of the new structure is the ‘Spectrum Brands Institute of Design & Technology,’ with state-of-the-art labs and equipment and 20 per cent more space than the prior facil-

ity devoted to research, innovation, and new product development for the company’s global battery, personal care, and home appliances businesses. It says this facility also is a more economical and energy-effi-cient option than renewing the lease on its long-time headquarters.

Leviton Purchases LED Lighting Company

Leviton has acquired JCC Advanced Lighting, a UK-based LED lighting compa-ny. The purchase establishes Leviton in the UK market and affords the company growth opportunities internationally, it says. JCC will operate as a wholly-owned subsidiary of Leviton, maintaining operations in the UK.

Boral And USG Form Joint Venture

Boral Limited and USG Corporation will form a joint venture to create USG Boral Building Products. The venture will leverage the two brands, complementary geographic footprints and technological expertise, to deliver a portfolio of build-ing products across Asia, Australasia, and the Middle East. Boral will contribute its gypsum division to the joint venture, which includes its plasterboard operations in Australia and Asia. USG, a manufacturer of plasterboard, will contribute its Asian and Middle Eastern businesses, as well as access to its ceilings, cement board, fibre board, lightweight plasterboard, and joint compound building products technologies. The combination is expected to position the business with a significant competitive advantage and market leadership position for the long-term. ❖

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HOME IMPROVEMENT RETAILING • September 2013 7HOME IMPROVEMENT RETAILING • December 2013

in store

Coop Fédérée Buys Interest In BMR

Groupe BMR and La Coop fédérée have entered into a commercial agreement under which La Coop fédérée, through its Unimat banner, is acquiring a minority interest in Groupe BMR. Through this association, the two companies will offer some 360 retail locations to consumers and contrac-tors in Québec, Ontario, and the Maritime provinces. “Groupe BMR’s expertise in the renovation industry is well-established. The strength of its brand and the trust of its customers represent major advantages from which we are sure our 100,000 members will greatly benefit,” says Claude Lafleur, CEO of La Coop fédérée.

Wal-Mart Changes Distribution Model

Wal-Mart Stores Inc. plans to accelerate growth of its small stores by linking them to its supercentres which will serve as mini-warehouses for their smaller cousins. The move comes as the retailer faces increasing pressure from online retailers like Amazon.com and dollar stores which have been rapidly building stores and winning custom-ers through low prices and convenience. It is starting to roll out the new distribution model in some U.S. markets.

Sears Leaving Eaton Centre

Sears Canada Inc. will terminate its leases for five stores for a total consideration of $400 million. Four of the five stores are owned by the Cadillac Fairview Corporation Limited and are located in Ontario: Toronto Eaton Centre, Sherway Gardens, Markville Shopping Centre, and London-Masonville Place. The fifth store is located at Richmond Centre in British Columbia and co-owned by Ivanhoé Cambridge and Cadillac Fairview. The transaction requires Sears to vacate the

Toronto Eaton Centre, Sherway Gardens, and London-Masonville stores by February 28, 2014, and Markville and Richmond by February 28, 2015. The company will oper-ate 111 full-line department stores after it vacates these five stores. Doug Campbell, its president and chief executive officer, says its “primary focus of creating long-term value for the company is best approached by focusing on the basics of the business and continuing to become more relevant with Canadian consumers coast to coast.”

RONA Completes Coupal Acquisition

RONA inc. is acquiring all of the minor-ity interest in Groupe Coupal inc. RONA, which has held a 51 per cent interest in the company since February 2006, is buying the 49 per cent interest held by Societe de ges-tion Doucet inc., a family-run business that has operated Groupe Coupal since 1971. Doing business under the name Materiaux Coupal, a banner that specializes in the sale of lumber and building materials to contrac-tors, it will celebrate its 100th anniversary next year. In 2012, its operations generated close to $130 million in sales. It has nine outlets selling building materials (residential and commercial) in the Greater Montreal area; two plants specializing in structural components (roof trusses, floor joists and prefab walls) and one division specializing in indoor finishing (two plants that handle the assembly of doors and frames, moulding distribution, and floor coverings); and one plant that makes prefab staircases.

Foundation Puts Focus On Youth Homelessness

The Home Depot Canada Foundation has released its ‘Thought Leadership’ white paper on youth homelessness. It notes that breaking the cycle of youth homelessness goes beyond providing shelter. The founda-tion has supported the issue of affordable housing in Canada since its inception in 2009. This year, it narrowed its focus to affordable housing and youth after com-pleting a scan of the affordable housing landscape in Canada. The $10 million, three-

year commitment will focus on renovation and repair projects, life skill development programs, and research and collaboration programs.

TruServ Market Dates Set

TruServ Canada is hosting two national buy-ing markets next year. Its spring market will be held April 12 to 14 and its fall market will be held September 27 to 29. More than 400 major manufacturers will showcase a wide selection of seasonal products, as well as timely specials on everyday products.

Sexton Offers Sales Training Program

The Sexton Group Ltd is offering an on-site sales training program for building supply dealers. Put together by Dave Leonzio, busi-ness development manager for the prairies and territories, a number of Sexton members have already experienced the training and deemed it a huge success. Ron Toews, from BorderView Lumber in Cartwright, MB, says they were very pleased with the training pro-vided onsite. “We were able to have all of our staff attend and we are seeing the benefits of what they learned every day.” Leonzio has an extensive background in sales training which he incorporated into an interactive onsite training session. “Building, maintaining, and growing our relationship with our customers is very important to our dealers and to us,” says Leonzio. “Whether your employees are inside sales, outside sales, or yard personnel, providing good service is a skill and, like any other, it must be taught, particularly to those employees new to the industry.” ❖

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it’s your money

HOME IMPROVEMENT RETAILING • December 20138

Stanley Black & DeckerStanley Black & Decker’s third-quarter rev-enues increased 10 per cent to $2.8 billion. Net sales for the period were $2.8 billion, up 10 per cent versus the prior year. The gross margin rate for the quarter was 35.8 per cent. “We continue to make significant progress driving organic growth through-out the organization. Our focused organic growth initiatives have resulted in a strong third-quarter performance and maintained the momentum we achieved in the sec-ond quarter. Progress from our organic growth initiatives combined with the overall strength and diversity of our portfolio and underlying strategic framework position us well to deliver on our previously stated long-term financial objectives,” says John F. Lundgren, chairman and CEO.

RONARONA inc.’s third-quarter showed annual-ized cost savings of $63 million, in line with its $110 million year-end objective. The retailer had sales of $1,169.2 million versus $1,221.7 million in the year-ago period. It saw a 2.4 per cent decrease in same-store sales. Net income was $30 million versus $5.5 million a year earlier. There was a $114.4 million year-over-year decrease in inventory. Subsequent to the end of the quarter, usage under credit facil-ity was reduced to zero after the sale of the commercial and professional market division.

WeyerhaeuserWeyerhaeuser’s third-quarter net income was up 34 per cent, partly due to the acquisi-tion of Longview Timber. Selling prices for lumber dropped seven per cent and average selling prices for oriented strand board fell 26 per cent. This was somewhat offset by better average selling prices for engineered wood products, higher sales volumes across all product lines, and lower western log costs. The company earned $157 million compared with $117 million a year earlier. Revenue increased 23 per cent to $2.18 bil-lion from $1.77 billion.

TrexTrex’s third-quarter loss widened to $15.3 million, from $14.3 million a year earlier. Revenue rose two per cent to $72.2 million from $70.8 million. Revenue totaled $74

million when removing the charges. The maker of wood-alternative decking and rail-ing products says that its board approved a new buyback of up to $30 million of its common stock.

Louisiana-PacificLouisiana-Pacific Corporation had third-quarter total sales of $507 million, up 10 per cent compared to the year ago quarter. Income from continuing operations was $38 million. The OSB segment reported net sales for the third quarter of 2013 of $245 million, an increase from $227 million on net sales in the third quarter of 2012. The siding segment reported net sales of $149 million in the third quarter of 2013, an increase of 11 per cent from $134 million in the year-ago third quarter.

TargetA pullback from U.S. shoppers and costs related to its expansion into Canada result-ed in Target Corp.’s third-quarter profit dropping 47 per cent. For the three months that ended November 2, it earned $341

million, down from $637 million a year earlier. Revenue rose two per cent to $17.26 billion from $16.93 billion. Wall Street expected $17.38 billion in revenue. Target expanded into Canada, its first foray outside the U.S., earlier this year, but it’s been challenging. The company is opening the stores in waves that should add up to about 124 stores at locations once owned by Canadian retailer Zellers by the end of the year.

CTC Canadian Tire Corporation, Limited had third-quarter retail sales growth of 3.1 per cent with positive contributions from all retail banners. Consolidated revenue increased 4.5 per cent. Consolidated net income grew 10.7 per cent compared to a year ago, due in part to strong margin performance across the retail and financial services segments. Sales increased 2.8 per cent and same store sales increased two per cent in the quarter driven by strong perfor-mances in automotive, seasonal, and kitchen categories. ❖

COMPANY SYMBOL OPEN HIGH/LOW 52-WEEK INDEX

Canadian Tire Corp. CTC.a 98.51 101.5 – 66.49 TSXCanWel CWX 2.78 3.22 – 2.33 TSXDow Chemical Co. DOW 40.61 41.74 – 29.81 NYSEFastenal Co. FAST 47.49 53.38 – 42.05 NASDAQGeneral Electric GE 27.09 27.5 – 20.26 NYSEHome Depot HD 79.32 82.27 – 60.21 NYSELouisiana-Pacific LPX 16.05 22.55 – 14.51 NYSELowes Cos LOW 47.68 52.08– 34.2 NYSEMasco Corp. MAS 21.52 22.94 – 15.64 NYSENewell Rubbermaid NWL 31.42 32.24 – 21.5 NYSEOwens Corning OC 38.79 45.55 – 34.1 NYSERichelieu RCH 44.33 46.21 – 34.4 TSXRONA RON 12.94 13.54 – 9.69 TSXSears Canada SCC 13.14 13.67 – 8.84 TSXSherwin-Williams Co. SHW 185,64 195.32 – 146.49 NYSEStanley Black & Decker SWK 80.87 92.76 – 71.2 NYSETrex TREX 70.8 74.2 – 36.23 NYSEUSG Corp. USG 25.95 30.97 – 21.35 NYSEWal-Mart WMT 79.72 81.37 – 67.37 NYSEWest Fraser WFT 95.33 100 – 69.1 TSXWD 40 WDFC 75.31 76.89 – 45.59 NASDAQ

As of December 10, 2013

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9HOME IMPROVEMENT RETAILING • December 2013

priVate wealth

Business start-ups are on the rise in Canada. In fact, 46 per cent of Canadian post-secondary students are planning to start a business after

graduation and two-in-five Canadians are planning to start their own business after they reach age 65 to help fund their retirement, says a report by the BMO Wealth Institute.

Business And FamilyThe report indicates that not only is it

important for owners of private businesses to consider and account for balancing the demands of their business with the needs of their family, but those who are success-ful in merging the financial goals of their professional and personal lives will achieve greater success at work and at home and be better prepared for retirement.

Sixty per cent of the Canadian business owners polled indicated that they spend sleep-less nights worrying about whether they will be able to retire from their business. However, the report shows that while more than three-quarters (79 per cent) of business owners in Canada have a business plan and 75 per cent have a personal financial plan, only 39 per cent have a business succession plan in place.

“Strong financial management is essen-tial to ensure long-term business stabil-ity and, ultimately, the growth of personal wealth over a lifetime,” says Chris Buttigieg, senior manager, wealth planning strategy, BMO Financial Group. “A business owner's family situation will progress alongside the business as it moves through the various stages of the business life cycle. By match-ing up these two areas, Canadian business owners can develop a holistic wealth plan and enjoy greater peace of mind as they progress towards retirement.”

However, “whatever your personal life stage, a common methodology for planning is to overlay the personal life cycle on the business’ life cycle. This helps the owner gain perspective on the unique needs that arise at various crossing points.”

The Business LifecycleWhile every business owner’s situation

is unique, invariably their business and personal life cycles are intertwined. The report outlines the various phases of a typical business life cycle and provides considerations on both a professional and personal level for each phase.

During the ‘start-up’ phase, access to investment capital and re-investment into the business of revenue earned may compete with the cash flow requirements for personal and family needs. Incorporating one’s business and purchasing insurance can limit some of the risks of busi-ness ownership.

In the ‘growth’ phase, owners continue to invest capital and in the process of gain-ing a strong team, cash outflow can be high. Including long-term needs and retirement needs into a financial plan can help to align the needs of the business with the needs of the family.

Once ‘established,’ a business should be able to earn larger profits which can provide for business expansion while also provid-ing for the personal needs of the owner. Nevertheless, owners still need to monitor and be aware of competition or fluctuations in the economy. As well, owners should review and/or update business plans regu-larly, consider group insurance, and initiate tax-planning measures.

Once established, businesses enter the ‘expansion’ phase where it becomes pos-sible to enter new markets or expand into new product lines. There may also be a need to draw from profits or to borrow from personal accounts to fund expansion. Expansion should have a clear plan for payback on the investment within a man-ageable time frame.

At the ‘maturity stage’ many owners are nearing retirement and may not want to make heavy investments in equipment, facilities, or staff to stay competitive. This is a good stage at which to continue saving for retirement and establishing an estate plan that includes life insurance.

Maturity Stage Following the maturity stage, there is

succession. A clear and well-planned exit strategy from the business will help to maxi-mize the value of the business. Putting a succession plan in place as much as 10 years before exit will allow for family or senior management to acquire the needed skills to successfully take over the business.

“Preparing for retirement takes proactive planning and personalized advice, especially when it involves the needs and priorities of a business owner,” says Buttigieg. “By work-ing with experienced and knowledgeable financial professionals, business owners can gain greater insight into their professional and personal needs and benefit from a com-prehensive approach to retirement planning.”

With sound business and financial plan-ning, business owners can balance the needs of the business and the family while devel-oping clear goals for retirement. In this manner, business owners can successfully manage their businesses and derive maxi-mum benefit from their succession plans. ❖

Balancing Business:Start-up To Succession

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11 Go to page 3 CONTENTS

Female shopper

By: Nienke Hinton

Use Colour And Light To Attract Sales

Manufacturers put a lot of effort into the colours of packaging and promotional items, so it is important for retailers to be aware of the right feeling and image they want to use to attract customers to these products and services. The wrong colour could mean no sale or an unhappy customer.

Consumers place visual appearance and colour above all other factors when shop-ping.

Researchers found that up to 90 per cent of snap judgments made about products can be based on colour alone. ‘Impact of Color in Marketing,’ by Emerald Group Publishing Limited says “People make up their minds within 90 seconds of their initial interactions with either people or products. About 62 to 90 per cent of the assessment is based on colours alone. So, prudent use of colours can contribute not only to differenti-ating products from competitors, but also to influencing moods and feelings.”

How Colours May AffectAlthough people react differently to

colours, there are some generalities that retailers can use as inspiration for store decor, displays, or vignettes. Here are some ways colours may affect your shoppers:

◆ Red can actually increase the viewer’s heart rate and makes people feel ener-getic and alive.

◆ Green has been recognized as lowering heart rates, making people feel rested and peaceful. This is why hospitals often have green walls. Green is also associ-ated with wealth.

◆ Blue makes people feel calm and cool.◆ Purple comforts, assures, and spiritual-

izes.◆ Black denotes seriousness and sophisti-

cation. It forces, disciplines, authorizes, strengthens, and encourages indepen-dence. It can be used to market luxury.

◆ White gives a feeling of cleanliness and makes people feel peaceful and quiet.Consumers are aware of brand or theme

appropriateness when it comes to colour. So, for example, you would choose a different colour to display a rugged, out-doorsy brand of lawn mowers or the outdoors department than you would for a top of the line light fixture or soft lighting vignettes.

There are many ways to improve the female shopping experience with colour. For example, if you have a department in the store that has lower sales, increase traf-fic flow by making the area more appeal-ing. Bring attention to an out-of-the-way spot by giving it a splash of colour. Invoke the moods you want your customers to experience by choosing the right colours for displays and vignettes. Keep in mind the colour of merchandise packaging, dis-plays, shelving and walls when designing planograms.

Don’t Forget LightingDon’t forget lighting to bring out the full

impact of the colours you choose. Lighting is a vital part of the design

in your store and plays a very important role in showcasing merchandise. Where and how you use lighting and what type of lighting you use can make the difference between a successful store layout or one that is ineffective. ❖

Nienke Hinton is a freelance writer and for-mer managing editor of Home Improvement Retailing.

Would you like your female customers to be calm, happy, buy your products and services and then grab

a bite to eat on the way out? Colours can help you achieve this. Studies show that retailers can use colours to enhance mood, calm down customers, reduce perception of waiting time, and even increase or decrease appetite.

It is estimated that the human eye can see up to 10 million different colours. And, women see colours differently than men. Research shows females are better at dis-criminating among colours, while males excel at tracking fast-moving objects and discerning detail from a distance – evolu-tionary characteristics that may be linked to our hunter-gatherer past.

Women naturally have a great sense of colour and light. They are drawn to colours based on emotional needs and a desire to express their originality. Since women make most of the home purchasing decisions, home improvement retailers need to be aware of this marketing opportunity.

11HOME IMPROVEMENT RETAILING • December 2013

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Green Initiatives – Big And Small

renovation options, followed by Alberta (70 per cent), British Columbia (67 per cent), Ontario (67 per cent), the Atlantic provinces (62 per cent), and Quebec (58 per cent).

◆ Two-thirds (65 per cent) of Canadian homeowners agree that green renovation choices will lower the operating cost of their homes in the long run.

◆ Half (52 per cent) of homeowners agree that green renovation choices will increase their home’s value.

◆ Eight-in-10 (78 per cent) homeowners

are likely to consider green products for a big renovation such as installing solar heating, while slightly more (84 per cent) would choose green products for a small renovation such as installing ultra-low

flush toilets.◆ Homeowners in Manitoba and

Saskatchewan are the most likely to consider smaller green renovation options (91 per cent), as well as bigger green renovation options (83 per cent).

◆ The top sources of inspira-tion for green home renova-tions are television programs (36 per cent); family, friends, and neighbours (30 per cent); home renovation stores (29 per cent); and the internet and social media (29 per cent).

◆ The primary barrier to green home renovations for Canadian homeowners is cost (56 per cent).

Small Fixes, Big Savings While not all homeowners are look-

ing to undertake major renovations, there are small fixes that can quickly increase the energy efficiency of a home. These include using a programmable thermo-stat to lower or increase temperatures as required; fixing leaky faucets to lessen water usage and costs; fixing drafty areas in the house to save money on heating and cooling; using high efficiency appliances to lessen energy consumption; using paint and home cleaning products that protect the air quality within the home. While these are indeed small and relatively inex-pensive fixes, they do make a difference for homeowners who wish to be more environmentally aware and conscious of their energy efficiency.

And over time, they can add up to sub-stantial savings. So indeed, while green means different things to different people, there are a range of initiatives – from major renovations to minor fixes – that can work well within individual budgets while going a long way toward an overall greener environment. ❖

While ‘green’ means different things to different people, energy efficiency is a shared concept, particularly among

homeowners. With the rising costs asso-ciated with home ownership, energy efficiency is gaining momentum as a way of reducing costs. In a recent Scotiabank ‘Home Renovations Poll,’ two-thirds of Canadian homeowners indi-cated they are likely to consider making their homes more ener-gy efficient or environmentally friendly by making ‘green’ home renovations. And 66 per cent of those homeowners say they will consider green renovations even if they are more costly than tradi-tional renovations.

Green renovations seem to make sense, says David Stafford, managing director of real estate secured lending with Scotiabank. “Whether you are renovating to sell or stay in your home, there is no ques-tion that eco-friendly home improvements increase its value while benefitting the envi-ronment,” he says. “Green renovations typi-cally lower your overall monthly operating costs which can free up cash to put towards paying down debt such as a line of credit or your mortgage. People tend to think if they are going to pay off debt, that it has to be in large chunks. But even putting small amounts towards your line of credit or mortgage makes a big difference in paying it off sooner.”

Quick FactsSome quick facts from the poll show

that:◆ Canadian homeowners in Manitoba/

Saskatchewan are the most likely to consider green renovations (76 per cent), followed by the Atlantic provinces (75 per cent), British Columbia (74 per cent), Ontario (68 per cent), Alberta (65 per cent), and Quebec (48 per cent).

◆ Canadian homeowners in Manitoba/Saskatchewan (74 per cent) are the most likely to consider green renovations even if they are more costly than non-green

GoinG Green

HOME IMPROVEMENT RETAILING • December 201312

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13HOME IMPROVEMENT RETAILING • October 2013

Focus on customers

Understanding ConsumerMore Important

◆ ListeningWhen a customer is discussing his or

her needs, they do not want a sales pitch. They want vendors who are able to truly listen to them and make suggestions based on their goals. It is important to understand the customer’s needs com-pletely.

◆ Helping Avoid ProblemsCustomers know that decisions have

risk, but they also want the vendor’s help in minimizing the risk. They want to know what could go wrong, what has gone wrong, and what steps the vendor takes to ensure these problems won’t recur.

◆ SolutionsCustomers expect the vendor to have

the ability to define and propose a work-

able solution. The ability to do this is the price of entry in today’s retail. However, it is not by itself enough to win the sale.

◆ CommunicationCustomers dislike dealing with issues

like price, discounts, availability, total cost, add-on options, and so forth. They want vendors to tell them straight up what’s involved in the purchase and the terms of the purchase. They do not want last minute upsells.

◆ Connecting Ultimately, sales involve making a con-

nection and developing respect and trust. All things being equal, most people would rather buy from somebody they like.

◆ Value After all other considerations, cus-

tomers will determine how the presented price compares to similar offerings. A customer will go elsewhere if he or she is not convinced that the decision to purchase from that specific vendor is the right decision. Success in retailing goes to those retail-

ers that not only ensure they have the prod-uct selection, value, and pricing, but who also provide excellent customer experience. From developing trust with the customer to completely understanding their needs and offering realistic solutions built on product knowledge and expertise, the successful vendor will ensure it is all about providing the appropriate solution based on the cus-tomer’s needs and goals. ❖

With the changing landscape of retail, the growth of eTail, and ever-growing competition, the focus of consumer psychology

is more and more toward understanding the consumer and the choices consumers make. One element that needs to be understood is what is instrumental in making a customer opt to buy from one vendor over another. Research from the Rain Group, a sales consulting, sales coaching, and sales training company, outlines the leading factors affecting vendor selection. ◆ Perspectives and Ideas

Customers look to vendors that are able to provide them with new perspec-tives and ideas. Often customers are stuck and need help and those vendors that can provide insights and solutions will get the sales.

◆ CollaborationCustomers are not looking to be sold

on a product. They are looking for a ven-dor that will help them find the product or solution that achieves their goals. They want a vendor that is responsive to their concerns and their way of doing business.

◆ ConfidenceCustomers will not buy from a vendor

unless they trust that the vendor and the products will achieve the results they are seeking. Because confidence is conta-gious, the vendor must have belief and trust in his product offerings.

13HOME IMPROVEMENT RETAILING • December 2013

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manaGer’s minD

interest and looking towards the future, always geared to enhance the employees’ skills. The Mentor is a good boss because they ensure a future for the employee and the company while inspiring immediate productivity and engagement.

◆ The Cool Dude (or Dudette) is a boss that has fun and lets their employees have fun. This boss maintains a certain aura of authority while creating a like-able and lively atmosphere. They let their

employees enjoy their time at work and find time for small diversions, within the confines that the job still gets done … and done well. At those instances, this boss rewards their employees with time off or special workplace events within the realm of a respectable workplace culture. The Cool Dude or Dudette is a good boss because they understand that all employees are people, that all people need some kind of fun, and that happy employees are healthy, productive, and engaged. ◆ The Creator is a boss who

inspires invention and creativ-ity. This boss pushes the lim-its of their employees to ignite innovation. They challenge intel-lect and question the status quo, so that new products and ideas are developed from within. The Creator embodies the spirit of imagination and is never over-ly demanding. Creativity and invention come from a unique mindset, so this boss correctly identifies those in their team that are keen to this way of thinking. As such, they make a good boss because they are motivational and collaborative.

These five bosses, or rather their respec-tive characteristics, exemplify what makes for healthy leadership within organizations. Many bosses may embody many or all of these characteristics, but the best bosses are able to reflect upon their own natural incli-nations and experiences to leverage their assets and develop areas of weakness. Our new co-generational world is crying out for leaders – of all ages and generations – and looking to illustrate that great leaders can exist in the smallest, biggest, nearest, and furthest of places. ❖

Some people work to live while others live to work. Some find a balance between the two where one flows naturally and seamlessly into

another. We spend every day doing some form of work and the people we encounter and work with influence our experiences.

Our colleagues, clients, peers, bosses, and all of those we cross paths with at work influence our satisfaction, pro-ductivity, creativity, and diligence for the little niches we find or cultivate.

Jim Finkelstein looks at how these groups affect each and every one of us. With more than 34 years of consult-ing and corporate experience, he has worked in industries from healthcare to high tech and knows how a boss or anyone in a managerial, supervisory, or executive position leads others through experience and vision. However, he notes, not all bosses are created equal.

Finkelstein offers five prime exam-ples of good bosses to enlighten the modern workplace and workforce:◆ The Listener is a boss who will lis-

ten to and appreciate different points of view. This boss hears and honours their employees’ thoughts and con-siderations respectfully, but with a caveat being they may or may not put these ideas into action. The Listener listens to their employees because they were hired for a reason. As such, they trust their employees and value their input. Sometimes, they are even dependent upon it. They are a good boss because they have insight beyond their own experience and vision, insight that is influenced by many angles, and because if their employees are allowed to voice their own opinions and ideas, they are inspired and engaged.

◆ The Empowerer is a boss that lets employees run their own show and lets them learn by making some mis-takes. To a degree of trust and sup-port, this boss cultivates leadership in their team. Working together, they identify tasks and create a plan, but let the employees decide the nuts and bolts of how it actually gets done. The Empowerer doesn’t delegate aim-

The Good Boss

15HOME IMPROVEMENT RETAILING • December 2013

lessly, creating a sense of subordina-tion in their team, but rather engages their employees from the ground up in a focused manner. Employees are inspired to take on leadership roles and collaborate both with their boss and with others. They make a good boss because they can simultaneously ignite

productivity, personal development, and satisfaction among their employees.

◆ The Mentor is a boss that teaches, coach-es, and guides. This boss doesn’t neces-sarily need to be older, just a tad wiser or simply willing to share. They seek to understand their employees’ experiences and identify which ones need or want mentoring. The relationship with their employees is constructive, meaning both criticism and praise are offered with the intentions of growing the employee's, set of skills. An offer to mentor is either explicitly offered or subtly developed over time. The goal is both in current

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W hile for some retailers unpredictability – as a result of things such as the labour market, household debt, and unseasonable weather across much of the country – seems to have dominated 2013, others,

such as Castle Building Centres Group, Federated Co-operative Limited, and the Sexton Group have had record years.

Despite the challenges that 2013 brought with it, retailers continued to move forward – carefully and with prudence. They relied on initiatives including eCommerce, improvements in technology, retail modernization programs, and partnerships. Doing business in today’s retail climate requires efforts towards increasing efficiency while at the same time responding to the changing parameters of retail as a result of the rapidly growing

eCommerce space and the heightened bar of what is needed to maximize customer experience based on increased consumer needs and expectations.

As we come to the end of the year, there is a palpable optimism among the retailers as they look to 2014. A continued focus on the initiatives started in 2013 will carry through into the new year. There is a common focus on customers, dealers, and members and on providing value added services ranging from increased communications to eCommerce expansion and an increase in products and distribution.

Still, although there seems a common retail strategy going forward, there is no consensus on 2014. Some retailers anticipate another tough year while others look forward to a very good year.

2013: One Year Trend To Optimism

BANNERS19TH ANNUAL SPECIAL REPORT

WHO THEY ARE • WHERE THEY ARE • WHAT THEY ARE DOING

17HOME IMPROVEMENT RETAILING • December 2013

FEATURED ARTICLE

growth in 2013 – a slack in the labour market, high levels of household debt, and unseasonable weather, to name a few. The home improvement sector has not been immune to these factors.

However, despite these challenging times, Home Hardware’s careful planning and prudent approach to our business activi-ties has continued to serve us well.

During the past five years, Home Hardware has focused on the expansion of our dealer-owner network, which we suc-cessfully grew. As we began 2013, our focus was, and remains, strengthening our rela-tionships with their customers, improving

There have been a number of factors that have caused unpredictability in Canada’s

store systems and supply chain efficiencies, and growing sales.

We have made improvements to our technology and put into place new innova-tive services to support this growth and ensure our dealer-owners can operate as efficiently as possible.

Earlier this year, we moved ahead with our expansion project at the Debert, NS, Distribution Centre – a two-phase construction plan that will increase capacity of the centre and allow our dealer-owners to continue their commitment to excellent customer service.

Our stores benefit from a proprietary logistics management system which moves

Home Hardware Stores Limited

Paul StrausPresident & Chief Executive Officer

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FEATURED ARTICLE

members about a range of product offer-ings, as well as keeping them abreast of Castle news. The eBlasts have been very well-received and we have more than 1,000 recipients on the mailing list. It has been very successful for us.

In 2013, we also introduced a vendor report card which we also fine-tuned. We ran it twice for our members to give feed-back to our vendor community and we will move ahead with it in 2014.

For the upcoming year, a major initiative focus for Castle will be the fulfillment of the eCommerce solution. We are looking for a first half initiative of 40,000 SKUs available to Castle customers online by the middle of 2014. Currently we have a number of members who are our ‘test’ members where eCommerce is up and running. We want to roll out this program on a national basis so that across the country, any independent owner/operator who is a branded/unbranded Castle member has a solution to offer his consumers to help compete against Amazon and the other monster eCommerce solutions that are showing up in the online world.

One of the other areas where we continue to grow and advance is our virtual buying platform. The platform links members with the supply channel in a unique way in that it provides opportunity for our members to lower the cost of acquiring products.

At the member level, we have members who are working on the order entry process with their customers which allows custom-ers to place orders on a variety of devices across the country.

The success we have seen this year has not been an anomaly for Castle, it has been a continuous trend of continuous growth in our business over the past three years. We do not see that growth slowing in the future. We continue to gain members in all regions and both our retail and our commercial divisions continue to grow right across the country. Castle will move forward to 2014 in a very positive manner.

For TruServ Canada, 2013 was focused on dealers across Canada. We combined the resources of TruServ Canada and the 'Our

products smoothly across the entire supply chain and decreases operating costs which we continue to invest in.

Home’s lumber and building materials cat-egory, Beauti-Tone Paint and Home Products Division, continues to grow and yield posi-tive results as does PIB/RWAM Insurance.

As a dealer-owned company, our main objective is to do everything we can to enhance the long-term success of our dealer-owners; not the short-term interests of out-side investors. We will continue to deliver the results our dealer-owners expect, this year and every year.

As we prepare to celebrate our 50th anni-versary in 2014, we remain positive and optimistic for the year ahead. Although there are many external factors beyond our con-trol, we can say with certainty that Home Hardware’s original mission – to help the independent dealer succeed – remains as true today as it did 50 years ago. Our commit-ment to this mission will ensure the compa-ny’s continued success in 2014 and beyond.

This has been the most successful year on record for Castle Building Centres and it also coincides with it being our 50th anniver-sary year. It has been a very strong year with respect to member recruitment, as well as having been a great year performance-wise. This was compounded by the promotion of our 50th anniversary celebrations.

The level of purchase volume flowing through the group is at its highest in the history of Castle and the rebates and profits we have been returning to our shareholders are the highest they’ve been in the history of the group.

From the perspective of ‘new,’ we are currently in the process of launching eCom-merce for our members – solutions that we continue to develop in conjunction with our hardware solution provider, Orgill. These solutions are in their infancy right now and will be rolled out in 2014. It is a fairly sig-nificant platform that we have been devel-oping for our membership.

We also introduced an eBlast service. ‘Castle Connections’ and ‘Castle Contact’ are another way of communicating with our

Dealers: PR1ORITY' field team to deliver real service and programs.

The highlights of 2013 include expanded products in our distribution centres in all category areas; outstanding fill rates of 96 per cent and new transportation equipment (tractors and trailers) that improved on time deliveries to 98 per cent plus and reduced fuel emissions.

We continued with the development of our truhardware.ca and trucountryand garden.ca websites. As well, we launched a new program which allow dealers to have a customizable website of their own.

We were ‘rewarded’ with outstanding dealer attendance at our Annual Rewards Convention, record participation at our national markets, and 43 new TruServ Canada customers.

While this was a challenging year with many independent dealers impacted by the competition, cross border shopping, and eShopping, the combination of strong prod-uct programs and strong dealer service pro-duced a winning year.

We expect that 2014 will continue to challenge retailers as they face a frugal cus-tomer group, looking for value and service. Our goal will be to continue to provide excellent product selection and dedicated service to allow our dealers to respond to those customer needs.

In 2013, TORBSA welcomed in a new pres-ident – Laurie Kuntz, of Prestige Acoustics Limited. He is our ninth president in nine years. We have been very fortunate in being able to rely on or call upon our shareholders to sit on our board of directors and take on the role and ownership of president of the group. This year also saw our first full year with Ken Pompey, our business develop-ment manager. Adding Pompey to our team has worked out very well.

Under Kuntz’s direction, we’ve added five new members to the group in 2013, bringing additional volume through busi-nesses dedicated to the GSD (gypsum spe-cialty dealer), LBM, and specialities mar-ket segments. We have also expanded the breadth of our product offering by joining

Castle Building Centres Group Ltd.

James JonesVice-president of Marketing

TruServ Canada

Bill MorrisonPresident

TORBSA

Bob HolmesGeneral Manager

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FEATURED ARTICLE

19HOME IMPROVEMENT RETAILING • December 2013

Canadian TireRetail

Allan MacDonaldPresident, Canadian Tire Retail

The Sexton Group

Steve BuckleVice-president & General Manager

see the company continue to succeed as a proud, growing Canadian retailer. I have also seen the customers we have disap-pointed – an unfortunate and mathematical inevitability when you conduct more than one million customer transactions a day. But the new team running Canadian Tire deeply cares about every one of our customers’ experiences and this passion to always to do better for our customers is at the heart of the business today, along with the incredible entrepreneurial spirit and guidance of our 489 store owners/operators.

This year, we launched a new, authentic platform to communicate our best prod-ucts to our customers – ‘Tested for Life in Canada.’ We recruit ‘real customers’ to test our products in real-life conditions and then give us feedback on what makes sense and what doesn’t. The worst products come off the shelf, while the best products make it into our mainstream marketing channels and are promoted with the stamp of approval of the most discerning critics – our own cus-tomers. A new series of home improvement products will be going through the ‘Tested for Life in Canada’ program in early 2014 so new, innovative products will be showing up in stores later this fall.

2013 was also a year where custom-ers saw us make important investments in our brand. We finalized strategic business relationships with Canada’s Olympic Team, Maple Leaf Sports and Entertainment, the Ottawa Senators (and renamed their build-ing the Canadian Tire Centre) as well as associated ourselves with more than a dozen of Canada’s best professional and ama-teur athletes. While our business spans far beyond sport, the power and excitement of sport is an exceptional platform to inspire our customers – aside from own social responsibility to give back to the communi-ties where we live and work as we do with our ‘Jumpstart’ program that gets more kids into sports and activities.

Looking into 2014, you will see us contin-ue to evolve our store design with specialty shops in areas like camping, hunting, and fishing; you will see us put a special focus on our home improvement business and recap-ture our position of authority with Canadians in this critical category; you will see invest-ment in new technology as we continually work to digitize old-school retailing; and you will see us continue to improve customer service to give our customers the experience they expect and deserve from us.

Canadians have trusted us for decades to be the solution provider for all of the jobs and joys of life in Canada. It’s a big responsibility and I can assure you we wake up every day planning to exceed the bar that our customers set for us.

the Octo Purchasing Group, a buying group that gives us access to hardlines and plumb-ing programs. By expanding our product offering and welcoming new shareholders from different segments of the market, we feel that we can continue to look to grow our presence, and offer the independent dealer an alternative buying group choice.

Our strategy of holding steadfast to maintain and build on strong relationships both with our supplier partners and share-holders along with our true and complete transparency has led us once again to hold our own in a challenging market.

With respect to new ventures for the business, we continue to look to what tech-nology, communication, and social media platforms can bring to the table and how that might be something that the dealer network can certainly look at to solicit or strengthen their business.

For the short-term future, we feel that the market will be somewhat stronger in the first two quarters of 2014, but anticipate it will slow down again towards the end of the year.

Challenges in the next 12 to 18 months will include a strain on supply as the U.S. housing market picks up. Focusing on securing supply will be paramount until idled plants come back onstream.

Overall for 2013, we maintained our ability to compete in the marketplace. As a buying group, with the addition of new members, we have actually grown our busi-ness so we think we have something of strength and opportunity to offer the vendor community. We continue to develop those relationships, focus on competitive pro-grams, and maintain our transparency to our shareholders. We look forward to 2014.

Earlier in 2013, I was given the privilege to run Canadian Tire – the institution that I grew up with every Saturday morning with my father. It’s a daunting task to take on stewardship of a brand that evokes such strong feelings with Canadians and has been a fixture in our homes for nearly 100 years. I have seen such incredible, genuine support for the work we do in communities and customers who would do anything to

The economic situation made this year dif-ficult for everyone working in our indus-try. Housing starts were down significant-ly, especially in the province of Québec. However, thanks to a good demand for renovation products, BMR has had a good year considering the circumstances.

This year marked an important moment in BMR’s history. In November, after months of negotiations, we entered into a commercial partnership with another major LBM retailer in Québec – La Coop fédérée – which has acquired a minority interest in Groupe B.M.R. through its Unimat banner.

If the statistics prove to be correct, we antic-ipate another tough year for 2014. However, with the momentum of our new partnership with La Coop fédérée, we believe that we will grow even stronger in 2014. Given the economic uncertainty, the arrival of foreign competitors, and the highly competitive level required to survive in the home renovation centre and hardware store industry, we believe that this partnership will help our dealers to remain competitive all through 2014.

At BMR, it has always been important to us to build a strong core. We already have a very good reputation in the LBM and hard-ware retail industry and our partnership with La Coop fédérée will make us that much stronger when approaching new dealers and negotiating with our vendors. For the years to come, we will keep consolidating our positions while working on developing new markets and helping our bannered dealers become even more competitive.

It was a successful year for the Sexton

Groupe B.M.R. Inc.

Jean FalardeauVice-president, Operations

Well Connected.No Membership Fees. No Mark-ups.No Long-Term Contracts. No Kidding.

Get connected today.

Visit our linkwww.sextongroup.com

Please contact Steve Buckle: 1-800-665-9209

Link-up with us and discover a whole new world of unique buying opportunities, where there are no surprise charges, fees, or long-term contracts.

Let us introduce you to our preferred suppliers, through Sexton’s Direct Purchasing Programs; it’s the difference you’ve been searching for.

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21HOME IMPROVEMENT RETAILING • December 2013

TSC Stores L.P.

Darryl JenkinsChief Merchandising Officer

are debt free, efficient, and blessed to work with more than 300 terrific retailers across Canada. Our optimism is at an all-time high.

We have been pleased with our results in 2013, with strong positive comp and top line growth. Throughout the year, we have worked on and implemented a number of initiatives from our strategic road map and we are seeing our customers react positively.

One of the initiatives on our roadmap is to expand our footprint. In 2013, we opened three new stores in Ontario and added addi-tional selling space and covered compounds in three existing flagship stores. Our comp stores that had expansions and more space given back to product have performed quite well in 2013.

Our merchandising team has continued to implement our category management strategy which focuses on edible, consum-able, usable, and discretionary products. We have expanded the floor space in many of our stores to support edible and consumable businesses and have done that through the addition of several new key brand names, looking at different sizes, and ensuring that we have the appropriate price points sup-porting the expanded businesses. We also have redesigned the layout of our stores to support that strategy.

Through the year we have also been working on relocating our service desks to the front of our stores. This is in response to wanting to make the customer experience at the front of the store one of being easy to get in and get out and to ensure we support all of the service aspects of our customers. As well, we implemented a program called ‘GREAT’ which focuses on how we deal with and treat the customers that come through our stores – from the point of entering through to the exit. It is continuing through 2014.

We also completed a warehouse consoli-dation effort in 2013 where we moved to a new warehouse that gives us capacity for our growth plans over the next several years. During the consolidation, we also imple-mented a warehouse management system that is helping us manage our costs more effectively.

Group. Purchase volume growth again out-performed the industry as a whole and 2013 purchase volumes were the highest in the company’s history. We were successful in adding 27 new member locations in the past year (September 1, 2012, to August 31, 2013) from across Canada.

In the large majority of cases, we exceed-ed our volume targets with key suppliers as we continued to focus on channeling purchase volumes to reward the vendor with the best program.

Our communications strategy is matur-ing. We deliver our message and that of our supplier partners in a variety of formats. Our eNewsletter is the centre of this strategy and is received by over 10,000 professional con-tractors a month. Importantly, the eNewslet-ter is sent out under our retailer’s name and banner to only the contractors they choose. This creates a very powerful, focused, and connected relationship between the supplier, our member, and our member’s customer.

We are not anticipating industry-wide growth in Canada. We must continue to support our members with strong pricing and promotional support so they can gain market share. With the U.S. market continu-ing to rebound, we anticipate price increase pressure. It will be difficult to pass on all of these increases immediately and, there-fore, retailer margin may be eroded. The retail industry must handle this difficult task better than it has in the past several years and the buying groups must redouble their efforts to find ways to reduce delivered cost. This is a focus at the Sexton Group.

The Sexton Group operates on a principle of focused efficiency. This means concen-trating our efforts on developing competitive pricing programs for a full range of building materials and hardlines. Once finalized, our supply agreements face constant scrutiny and we must be quick to convince suppliers to adjust if a program isn’t working. We also must work hard with our members to ensure key suppliers gain market share with the Sexton Group members.

We are excited by the effectiveness and efficiency of electronic media to profes-sionally deliver our members’ customized message to thousands of building industry professionals. The Sexton Group will con-tinue to develop this winning strategy.

A number of years ago, we made the deci-sion to not invest in two-step distribution, choosing instead to support those already in the market. In addition, we see great opportunity in finding ways to reduce the cost of inbound logistics. This involves bet-ter timing of orders, co-ordinated deliveries to multiple members, and controlling the freight from factory gate to member location.

As we enter our 29th year of operation, we

One of the biggest challenges we faced in 2013 is managing our pace of change. We have a lot of exciting initiatives that we want to implement quickly, but managing the pace of change is important. Therefore, we are working hard on ensuring execution is our main priority. When you are in a busi-ness that supports customers that enjoy the country lifestyle, executing business readi-ness and in stock readiness is key.

Going forward, we expect continued growth both in our comp store sales and top line by continuing to take advantage of real estate opportunities in the market supported by our category management approach to our merchandising mix. New stores will continue to be built out into 2014. As well, a number of store refurbishes are planned to expand the size of some of our stores in order to provide an improved shopping experience. The refurbishes include every-thing from expanding space in our stores to covering compounds to facilitate a four season shopping environment.

In 2014 we will also be launching online ordering. A lot of our high ticket discretion-ary businesses will be placed online so that customers are able to shop 24 hours a day online and have the product shipped to their choice of store throughout Ontario and Manitoba.

Looking ahead to the future, we have implemented a number of initiatives in 2013 that have laid the foundation for strong and sustainable growth over the next sev-eral years and beyond. We are focused on growth in those businesses that will drive repeat purchases, create loyalty, and provide less seasonal variance in our stores.

Overall, we are well-positioned for 2014 and will continue with our initiatives.

This year was a year of transition for RONA. While financial results continue to reflect the magnitude of the changes taking place, the corporation still relies on a solid balance sheet. The management remained focused on transforming the business to accelerate value creation for all stakeholders.

Soon after assuming the helm at RONA, Robert Sawyer, president and CEO, announced restructuring and reorganization

RONA Inc.

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direct email campaigns to eFlyer subscrib-ers, social media, digital catalogue

Castle Building Centres Group Ltd.

100 Milverton Dr., Ste. 400, Mississauga, ON L5R 4H1Phone: 905-564-3307Fax: 905-564-6287eMail: kjenkins@castle.caWebsite: www.castle.caRetail Banners: Castle Building Centres, CBS (Commercial Building Supplies), Castle SpecialtyMember Stores: 294Outlets In: All provinces and territoriesNew Members in 2013 (As of September 1): 12 new member locationsAffiliates: Epic Alliance GroupConsumer Sales: 30 per centContractor Sales: 70 per centPrivate Label Lines: Castlegard, All Install, Castlecare, Castlegreen Dealer Education Initiatives: Castlecare, Home Improvement Retail Television, Castle store development and growth program

Canadian Tire Corporation2180 Yonge St., Toronto, ON M4P 2V8Phone: 416-480-3000Website: http://corp.canadiantire.caRetail Banners: Canadian Tire, Partsource, Gas+, FGL Sports (Sport Chek, Hockey Experts, Sports Experts, National Sports, Intersport, Pro Hockey Life, and Atmosphere), Mark’s, Canadian Tire Financial Services Canadian Tire Stores Private Label Lines: NOMA, Yardworks, Mastercraft, MotoMaster, Simoniz, Reflex, For Living, GarrisonDealer and Store Staff Education Initiatives: Training for store associate dealers and management; store engagement and high potential management develop-ment programs; learning for key areas like automotive, cashier, customer service desk, operations. Marketing Strategies: Radio and television advertising, credit card statements, newslet-ters to credit card members, weekly flyer to 11.5 million homes across Canada, online website at www.canadiantire.ca, eFlyers,

Marketing Strategies: Focused buying approach ensures member profitability with diversified business model that appeals to the LBM, commercial, and specialty seg-ments of the industry; focused on core building materials and hardwareHighlights of 2013: 50th Anniversary cel-ebrations were a great success, continued member growth in all regions of the country with 12 new locations addedContact for Membership Information: Les Gillespie, British Columbia; Alan Schoemperlen, Prairies; Bruce Holman, Ontario; Robert Legault, Quebec; Sandy Welsh, Prince Edward Island, Nova Scotia, New Brunswick; Bob Delaney Newfoundland & Labrador; Ron Craighead, CBS

Delroc Industries Ltd.5955 205A St., Langley, BC V3A 8C4Phone: 604-533-0599Fax: 604-533-9192eMail: contact@delroc.com Website: www.delroc.com Member Stores: 118Outlets In: British Columbia, Yukon,

plan. A portion of the savings is being rein-vested in repositioning RONA’s store cat-egories and in putting in place an energetic recovery plan for underperforming stores.

Throughout the year, RONA invested in product liquidation and promotions in order to reduce inventory. Two months before year-end, obsolete inventory had been reduced by $114 million.

In 2014, RONA’s management team will be focused on repositioning its store catego-ries. While market conditions remain dif-ficult and the retail environment is increas-ingly competitive, the corporation is deter-mined to offer Canadians the best customer experience in the industry.

It has been a good year for Federated Co-operative Limited as a company.

measures designed to ramp up its recovery and improve its profitability. In May, he appointed Alain Brisebois as executive vice-president and chief commercial officer. His job is to improve operational efficiency and synergy among the company’s purchasing, merchandising, procurement, and market-ing teams. He is a retail veteran who has held numerous strategic positions at major retailers over the past 30 years. Under his management, dedicated teams are work-ing on repositioning the company activities along four major store categories – big box stores; the Réno-Dépôt banner, proximity stores; and contractor specialists – accord-ing to target consumers.

As part of the additional measures put in place, 11 non-profitable stores were closed, expenses were reduced, and some 300 posi-tions were eliminated in administrative offices across the country.

In October, RONA sold its commercial and professional market division which spe-cialized in plumbing, heating, ventilation, and air conditioning (HVAC) systems. This transaction was fully in line with the com-pany’s intentions to focus on unlocking the full potential of its retail and distribution business.

In the third quarter, RONA continued to generate savings and realized $63 million in annualized savings. It was on track to achieve the objectives of its $110 million recovery

Although the numbers are not officially in and finished, I would anticipate it will be a record year for the company. As far as our commodities sector, we had a good year and we were exactly on budget for what we had anticipated.

We are continuing with what we call our ‘retail modernization program’ which involves both our fixtures upgrades program and our interior décor program. We are well underway with these endeavours. The upgrades involve all of the signage inside of the retail locations – customer service signs, bio markers, bunk end signs, etc. Our pri-mary goal is consistent branding across all of our retailers, although we are undertaking some environmental upgrades as well. We completed quite a few locations in 2013 and will probably upgrade double the amount of locations in the coming year.

We are looking toward updating our technology. We have not done anything specific as yet, but we are certainly mov-ing forward in the coming years with a number of initiatives on the technology side. However, it does take time to analyze and review and decide on the right pro-grams to invest in.

Overall, 2013 was a strong year for Federated Co-operative Limited and we look forward to continuing and achieving our goals and objectives for 2014 and hav-ing another strong and successful year. ❖

Federated Co-operative Ltd.

Rob WilliamsHome & Building Supplies

Sales Manager

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FEATURED ARTICLE

23HOME IMPROVEMENT RETAILING • December 2013

New Members in 2013 (As of September 1): 4Affiliates: OCTOConsumer Sales: 60 per centContractor Sales: 40 per centPrivate Label Lines: BMR, EZE Tool, Evolution, Torkk, Eco Attitude, InspirationDealer Education Initiatives: Training centre at Boucherville head office offers several training sessions to dealers throughout the yearMarketing Strategies: Flyer program, radio campaigns, regional advertising, trade shows, reward card program, gift card pro-gram, in-house credit card programHistory: BMR was founded in 1967 by six building supply retailers looking for group buying power. Since then, it has rapidly grown to its current position of 180 dealers.Highlights of 2013: Commercial partner-ship with La Coop fédérée (Unimat banner)Major New Customers: Pierre Naud inc. (Trois-Rivières, QC), Matériaux Sainte-Anne-des-Plaines (Sainte-Anne-des-Plaines, QC), J. Drolet et Fils ltée (Val-d’Or and Malartic, QC)Contact for Membership Information: Jean Falardeau, Executive Vice-presidentOther Key Contacts: Yves Gagnon, President & CEO; Al Holton, Business Development Manager

Home Hardware Stores Limited

34 Henry St. W., St. Jacobs, ON, N0B 2N0Phone: 519-664-2252 ext. 6676Fax: 519-664-1260eMail: duncan.wilson@homehardware.caWebsite: www.homehardware.caRetail Banners: Home Hardware, Home Hardware Building Centre, Home Building Centre, Home FurnitureMembers Stores (As of October 31, 2013): 1,056Founded: 1964Outlets In: All provinces and territories in CanadaNew Stores (Not new members; As of October 31, 2013): 13Affiliates: Alliance International LLCPrivate Label Lines: Active, Beauti-Flo, Beauti-Tone, Beauti-Tone Designer Series, Beauti-Tone Natura, Beauti-Tone Rust Coat, Beauti-Tone Signature Series, Benchmark, Benchmark DIY, Benchmark Plus, Series, Black Gold, Blue 2, Builder’s Hardware, Chelini, Classic, Country Hardware, Cover

Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia, U.S.New Members in 2012 (As of September 1): 7Affiliates: BYCOConsumer Sales: 50 per centContractor Sales: 50 per centMarketing Strategies: Main objective is to provide maximum buying power for mem-bers at a minimal cost; along with Sexton and Allroc, a founding member of the new-ly-formed BYCO Group, a strategic alliance to strengthen its buying power and better position its members in an ever-increasing competitive marketplaceContact for Membership Information: John Physick, General Manager

Federated Co-Operatives Ltd.

401 22nd St. E., Saskatoon, SK S7K 3M9Phone: 306-244-3311Fax: 306-244-3403eMail: rob.williams@fcl.caWebsite: www.coopconnection.caRetail Banners: Co-op, ValuMasterMember Stores: 360Outlets In: Western CanadaAffiliates: Spancan, ILDCConsumer Sales: 70 per centContractor Sales: 30 per centPrivate Label Lines: Shopmaster, Turf-Care, Turf-Green, Sonic, Rialto, Sportster, Co-opDealer Education Initiatives: Training pro-vided in numerous areas including store management, POS, PK (product knowl-edge), and estimatingMarketing Strategies: 60 flyers Highlights of 2013: Continuation of store modernization programContact for Membership Information: Rob Williams, Home & Building Supplies Sales Manager

Groupe B.M.R. inc.1501, rue Ampere, Ste. 200, Boucherville, QC J4B 5Z5Phone: 450-655-2441 Fax: 450-655-1766eMail: info@bmr.coWebsite: www.bmr.coRetail Banners: BMR, BMR Hardware, BMR Matco, Potvin & Bouchard, Builder’s WarehouseMember Stores: 180Founded: 1967Outlets In: Quebec, Ontario, New Brunswick, Nova Scotia, PEI, France (St. Pierre and Miquelon Islands)

Up, Economy, Eurostream, Fisherman’s Paint, Generic, Home, Home Bond, Home Builder, Home Building Centre, Home Electric, Home Expressions, Home Gardener, Home Gardener Premium, Home Handyman, Home Hardware, Home Pak, Home Plumber, Home Security, Homecrete, Homeworks, Ice Mover, Instyle, Instyle Betty Crocker, Instyle Flooring, Instyle Holiday, Instyle Outdoor, Kitchen Value, Kuraidori, Mark’s Choice, Natura, Power Extender, Premier Collection, Professional, Reactor, River Trail, Snow Mover, Store N Lock, Survival, The Ultimate, TMT, Trademaster, Unival, Vac N Store, Vagabond, Value Items $1, Value Items $2, Vincente, Weather Shield, Wood Shield, Wood Shield BestDealer Education Initiatives: At the heart of everything Home Hardware does is its desire to help its dealer-owners grow and succeed; it remains Home’s primary mis-sion. To ensure we remain true to this mission, Home offers a number of retail education and communications initiatives. These include: ◆ Semi-annual dealer markets and pre-mar-

ket conferences that offer dealer-owners the opportunity to view Home’s new-est products, speak to vendors, book their seasonal requirements, gain product knowledge, attend seminars, and network

◆ Specially developed training programs for dealer-owners, managers, and per-sonnel who are new to Home, covering information that is vital to their daily store operations

◆ Monthly video training, available online as well as in DVD format

◆ Webinar training and cross-country sem-inars (sessions on plumbing and electri-cal, leadership and management training were completed in 2013)

◆ Connect, Home’s dealer-owner portal, featuring internal information, best prac-tice sharing, and applications to support dealer-owners and staff

◆ Ongoing communications to ensure dealer-owners and staff remain well-informed

◆ On-demand eLearning courses for deal-er-owners and staff; recently launched, these courses are interactive, measurable, and affordable and allow stores to easily assign and track training online

◆ The Young Leaders of Home Hardware, a group focused on bringing together the

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HOME IMPROVEMENT RETAILING • December 2012HOME IMPROVEMENT RETAILING • December 201324

FEATURED ARTICLE

monthly statements and rebate summa-ries – allows the timely, consistent deliv-ery of store specific information.

◆ An increased rollout of online educa-tion programs for Home’s dealer-owners and staff, providing training that is cost effective, available on demand, and in bite-size modules. New comprehensive eLearning programs were introduced for selling skills and new staff orientation. Close to 1,000 training videos and more than 150 product knowledge webinars are now available through Connect. A new learning management system has been integrated with Connect to allow dealers to assign training to their staff and track the results.

Awards and Recognitions◆ In February, Home was named one

Canada’s Best Managed Companies, a title that bought with it much recognition and a sense of pride across the Home network.

◆ In April, Kim Ytsma, dealer-owner of Alliston Home Hardware Building Centre in Alliston, ON, was named by the North American Retail Hardware Association (NRHA) as one of the hard-ware industry’s eight Young Retailer of the Year Award recipients.

◆ In September, Rob Marshall, a profes-sional truck driver with Home Hardware Stores Limited representing Team Ontario, was named grand champion and rookie of the year at the National Professional Truck Driving Championships.

◆ In September, two of our stores were awarded outstanding retailers for 2013: Wellington Home Hardware in Wellington, ON, and POPS Home Hardware in High Prairie, AB. Over the past seven years, Home Hardware has received 19 outstanding retailing awards.

Semi-Annual Markets ◆ The Spring Market was Home’s 100th mar-

ket and, during the fall market, the gov-ernor general of Canada, David Johnston, was there to recognize its dealer-owners’ commitment to their communities and also to launch My Giving Moment, a national campaign committed to creat-ing a new culture of giving and inspiring Canadians to become active members of their communities. Home Hardware Stores Limited is a national partner.

Contact for Membership Information: Dunc Wilson, Director, National Dealer Development

youngest generation of Home Hardware dealer-owners and potential future dealer-owners; the national group meets online monthly to share ideas and discuss business issues; at the fall market, Home hosted a Young Leaders Bus Tour of local stores across Ontario Marketing Strategies: To ensure its dealer-owners are supported at every level, in 2013 Home continued its integrated marketing program, anchored by an up-to-52-week flyer program, which is one of the most comprehensive in the industry; sustained its year-round TV advertising campaign, which scores very high in terms of recognition and maintained other activities including sports venue advertising, online and in-store mar-keting, contests, promotions, public rela-tions, charitable partnerships; continues to leverage partnerships with spokespeople – Anna Olson, kitchen expert, & and Mark Cullen, gardening expert – as well as part-nerships with Aeroplan and the Top Notch Rewards program for contractorsHistory: From its small beginnings in St. Jacobs in 1964, Home Hardware Stores Limited has grown into the largest indepen-dent home improvement retailer in Canada, with annual collective retail sales of more than $5.25 billion. As the company embarks on its 50th anniversary in 2014, it remains committed to its original mission: to help the independent dealer succeed.Highlights of 2013: In 2013, made improve-ments to technology and put into place new, innovative services to support the growth of its dealer network and ensure they con-tinue to operate as efficiently as possible. Highlights include: ◆ The expansion of its Debert Distribution

Centre; a two-phase construction plan that will add 236,000 square feet to its facility in Debert, NS. Construction of Phase 1 started the beginning of March with completion scheduled for January 2014, adding 183,000 square feet.

◆ A new look and feel for Home’s deal-er-owner portal, Connect, which has streamlined the delivery of information – everything from planograms to promo-tional materials, new items to company news. Its quick links feature allows one click access to the most popular content, and notifications and reminder alerts are sent to dealer-owners on the informa-tion they need to know. The electronic delivery of reports – from invoicing to

Other Key Contacts: Paul Straus, President & Chief Executive Officer; Terry Davis, Executive Vice-president & Chief Operating Officer; John Dyksterhuis, Vice-president, Distribution; Ray Gabel, Vice-president, Merchandise & Marketing – Hardlines; Stew Gingrich, Vice-president, Human Resources; Grant Knowlton, Vice-president, Finance; Eric Konecsni, Vice-president, Operations; Dianne McTavish, Vice-president & Corporate Secretary; Darrin Noble, Vice-president, General Manager, Burford Paint and Home Products; John Rogez, Vice-president, Information Technology; Bruce White, Vice-president, Merchandise & Marketing – LBM

Independent Lumber Dealers Cooperative (ILDC)596 Kingston Rd. W., Ste. 100, Ajax, ON L1T 3A2Phone: 905-428-0700Fax: 905-428-0690eMail: ildc@ildc.comWebsite: www.ildc.comRetail Banners: 21Member Stores: 500New Members in 2013 (As of September): 1Outlets In: All provinces and territories Affiliates: SpancanConsumer Sales: 40 per centContractor Sales: 60 per centDealer Education Initiatives: Tax planning, EDI, retail strategiesMarketing Strategies: The members exchange flyer programs, etc., for informa-tion purposesContact for Membership Information: Andrew Battagliotti, General Manager

La Coop fédérée4225, rue St-Joseph, Trois-Rivières, QC G9A 5L9Phone: 819-379-8555Fax: 819-379-5252eMail: accueil@lacoop.coop Website: www.unimat.ca Retail Banners: La Coop, Unimat, Unijardin Member Stores: 174 Founded: The banner Unimat was founded in 2003, but La Coop fédérée has been in the hardware industry since 1977 (banner previ-ously was Co-op.) Outlets In: Québec, Ontario, New Brunswick Affiliates: Spancan, ILDC, Interprovincial co-op

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25HOME IMPROVEMENT RETAILING • December 2013

530 corporate, franchise, and affiliate stores under several different banners and in a number of complementary formats; with its 13 distribution centres and its specialized TruServ Canada wholesaler, RONA serves its network as well as many independent dealers operating under other bannersFounded: 1939Outlets In: Across CanadaConsumer Sales: 70 per centContractor Sales: 30 per centPrivate Label Lines: More than 5,000 products (RONA, RONA ÉCO, RONA Collection, RONA Xpert, Vitalium, UBERHAUS, HAUSSMANN, Facto, Pro-Pulse)Marketing Strategies: Marketing plan will be deployed according to the repositioning of RONA’s four major store categories: big box stores, the Réno-Dépôt banner, proxim-ity stores, and contractor specialists accord-ing to target consumersContact for Membership: 888-461-7662, ext. 1211 or send an email to succession@rona.ca

Sexton Group Ltd.Unit 46, 1313 Border St., Winnipeg, MB R3H 0X4Phone: 204-694-0269Fax: 204-694-4507eMail: admin@sextongroup.comWebsite: www.sextongroup.comRetail Banners: Sexton Group Ltd.Member Stores: More than 300 member storesFounded: 1985Outlets In: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland, Yukon, Northwest Territories, Nunavut, FranceNew Members in 2013 (As of September 1): 27Affiliates: BYCOConsumer Sales: 15 per centContractor Sales: 85 per centDealer Education Initiatives: Quarterly regional meetings, yearly group meetings, Sexton leadership program, Sexton onsite sales trainingMarketing Strategies: To have an immedi-ate impact on members’ bottomline with a focus on making sure members are able to competitively purchase a full range of building material and hardlines products; backed up with strong one-on-one relation-

Private Label Lines: Home & garden, hand tools, automotive, paint & thinner, animal food, buildings material, farm product. Dealer Education Initiatives: Training classes on horticultural products, maple products, construction materials, lubricants (oils and greases), decoration, paint, plumb-ing, co-operation, customer service, and pesticides with 960 participants and 557 hours of training over the year Marketing Strategies: In January 2013, La Coop fédérée and Groupe B.M.R. con-firmed that discussions were underway towards an eventual business relationship. This slowed many marketing strategies of Unimat. However, it stayed very active with its flyers and had an advertising campaign throughout the summer which included pro-motions in stores as well as a contest. History: Initiated by agricultural producers and local entrepreneurs, the Unimat home renovation centres and La coop hardware stores are open to everyone. Today, more than 178 regional locations benefit from the work and values of those pioneers. The basic ideal of the foundation of these two brands has remained unchanged and is even highlighted in its mission statement, which can be summarized as “allow members and consumers to buy products they need, at home, in the heart of their community, at competitive prices.”Highlights of 2013: La Coop fédérée and Groupe B.M.R. announced in November 2013 that they have reached an agreement whereby La Coop fédérée, via its Unimat division, will purchase a minority stake in BMR. This alliance will make the two organizations a major player in Québec with a network of nearly 360 Unimat and BMR stores across the province as well as in eastern Ontario and the Maritime provinces. The agreement between the two parties will help form an important critical mass for the benefit of consumers.Contact for Membership Information: Jean-Claude Dionne

RONA inc.220, chemin du Tremblay, Boucherville, QC J4B 8H7Phone: 514-599-5900Website: www.rona.ca/corporateRetail Banners: RONA, RONA L’Entrepôt, RONA Home & Garden, Réno Dépôt, Coupal, Dick’s LumberMember Stores: Operates a network of over

ships with dealers and suppliers that address local market issues as they happen; strong advocate for membersHistory: Founded in 1985Highlights of 2013: Website launched at the beginning of the year as well as social media presence (Facebook, Twitter, LinkedIn); eNewsletter included a supplier presence with links and a new template design with fresh content; creation of an onsite customer service training program that took the train-ing right to the dealer yardContact for Membership Information: Steve Buckle, General Manager & Vice-presidentOther Key Contacts: Joe Collerone, Marketing Manager; Norm Bougie, Marketing Manager; Calla Komarnicki, Communications Manager; Krista Venn, Accounting Manager; Dave Leonzio, Business Development Manager – Prairies, Northwestern Ontario, & Territories; Frank Bayuk, Business Development Manager – British Columbia; Phil Brown, Business Development Manager – Ontario, Quebec, & Atlantic

TIM-BR MART705 – 1601 Airport Rd. NE, Calgary, AB T2E 4Z8Phone: 403-717-1990eMail: communications@timbrmart.caWebsite: www.timbrmart.caRetail Banners: TIM-BR MART, ACE, PRO, IRLYMember locations: 750+Founded: 1967Outlets In: 10 provinces, NunavutNew Members in 2013 (As of September 1): 11Affiliates: Holds the Canadian licensing rights to ACE HardwareConsumer Sales: 25 per centContractor Sales: 75 per centPrivate Label Lines: TIMBER MART, ACE, Endurance; also controls brands like ORBIT RECYCLED PAINT, BLUE RIBBON, CLARK + KENSINGTON PAINT + PRIMER IN ONEDealer Education Initiatives: Regular webinars from internal & external sources; dealer development & store support team (office and field); newsletters; national & regional dealer meetings; conventions; Timbrnet (dealer intranet); emerging leaders summit, field representatives.Marketing Strategies: AIR MILES Reward Miles, comprehensive national flyer pro-grams (conventional & electronic), in-

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Just another case of window envy.

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Visit allweatherwindows.com to learn more about our Canadian-made window and door products.

000393.06.08.13

000395 Home Improvement Retailing August.indd 1 13-08-06 11:35 AM

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27HOME IMPROVEMENT RETAILING • December 2013

Consumer Sales: 90 per centContractor Sales: 10 per centPrivate Label Lines: Tools/hardware/plumbing/electrical; FACTO, ProPulse, HAUSSMANN, UBERHAUSDealer Education Initiatives: Retailer train-ing program, educational conferences, retail store training, retail technology training, financial management, semi-annual busi-ness seminars, best practice training, district manager support (in-store), in-field techni-cal specialistsMarketing Strategies: To provide strong national flyer and catalogue programs to banner customers as well as provide custom advertising options for independent custom-ers, dealers can take advantage of custom-ized gift card program and dealer loyalty program that rewards them for working on their businessHistory: TRUSERV CANADA traces its roots in Canada back to the founding of Macleods in western Canada by Roland Macleod. From its beginnings in 1916, the company grew from a mail order busi-ness to retail stores owned and operated by the retailer. Over the years, through a commitment to having everything that a family needs to servicing do-it-yourselfers and contractors, it grew to be a major retail force in Western Canada offering product lines such as hardware, electrical, plumbing, and paint. In 2011, independent stores were converted to TRU Hardware and TRU Building Centres. In 2012, the Country Depot banner was converted to the TRU Country & Garden banner. These stores are all locally owned and operated by independent retailers and true to their roots, they offer everything that their customer’s need, when they need it. It is a distribution company that offers a vast range of products for over 723 indepen-dent dealers in Canada. The company’s strength is in providing flexible solutions to independent retailers and it is part of one of the largest distribution networks in Canada.Highlights of 2013: Launch of new store websites for dealers as part of the national TRU banner websites; opened ground up stores in Grenfell, SK, Coronation, AB, Logan Lake, BC, Drumheller, AB, Fort Macleod, AB; conversion to TRU Hardware in Raymond, AB; TRU Hardware Breton, AB, won outstanding retailer of the year for best hardware store

store digital advertising, consumer web-site, Timbrclub direct eMarketing, home/garage/cottage plans, consumer credit & gift cards, project financing, multi-media national advertising, EcoChoice, consumer & industry tradeshows (e.g. Cottage Life), Timbrkids Charitable Foundation, Hockey Canada sponsorship.History: Founded in 1967 by four indepen-dent Winnipeg, MB-area building supply dealers, TIM-BR MART Group has grown to become Canada’s largest LBM buying group.Highlights of 2013: TIM-BR MART Group welcomed new president, Bernie Owens; new retail logo launched; Chalifour hosts first patio showcaseContact for Membership Information: Rich Huisman, National Director of Sales

TORBSA Limited2 Marconi Ct. Unit 13, Bolton, ON L7E 1E5Phone: 905-857-5811Fax: 905-951-9923eMail: bob@torbsa.comWeb: www.torbsa.comMember Stores: 76New Members in 2013 (As of September 1): 5Founded: 1966Consumer Sales: 25 per centContractor Sales: 75 per centAffiliates: Epic Alliance Buying GroupDealer Education: Training seminars are conducted at monthly meetings by manu-facturersMarketing Strategy: Flyers, radio & TV advertising as well as retail technology are handled by individual dealersContact for membership Information: Bob Holmes, General Manager; Ken Pompey, Business Development Manager

TruServ Canada1530 Gamble Pl., Winnipeg, MB R3T 1N6Phone: 204-453-9511Fax: 204-452-6615eMail: info@truserv.caWebsite: www.truserv.caRetail Banners: TRU Hardware, TRU Country & Garden, TRU Building Centres, V&SMember Stores: 723Founded: In 1917, with MacleodsOutlets In: All provinces & territoriesNew Members in 2013 (As of September 1): 43 storesAffiliates: Part of the RONA dealer network

Contact for Membership Information: Guy Lichter, Director of Dealer Development & Support; Serge Vezina, Director, Sales & Customer Relations (East); Wilf Gerhardt, National Manager, Business Development Other Key Contacts: Bill Morrison, President; Ellen Baranyi, Controller; Greg Hollander, Merchandising Manager; Luc Roy, Merchandise Program Manager; Rob Hagborg, Transportation/Logistics Director; Sandra Duncan-Allen, HR Director; Lora Deighton, Marketing/Communications Manager; Dominic Cote, Director of IT

TSC Stores L.P.1950 Oxford St. E., London, ON N5V 2Z8Phone: 519-453-5270 Fax: 519-453-6068Website: www.tscstores.comRetail Banners: TSC Stores L.P., TSC VillagerConsumer Sales: 90 per centContractor Sales: 10 per centOutlets In: 44 in Ontario, 2 in ManitobaContact for Membership Information: Darryl Jenkins

Windsor Plywood20039 – 96th Ave., Langley, BC V1M 3C6Phone: 604-455-9663 Fax: 604-455-5043eMail: contact@windsorplywood.comWebsite: windsorplywood.comRetail Banners: Windsor PlywoodMember Stores: 62Founded: 1969Outlets In: British Columbia, Alberta, Manitoba, Ontario, Washington, MontanaConsumer Sales: 55 per centContractor Sales: 45 per centDealer Education Initiatives: ‘Windsor U’ training classes are held at the distribution centre.Marketing Strategies: Marketing materi-als are centrally produced at 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 advertis-ing budgets.History: Windsor began franchising in 1969 and today has 62 locations including four in the U.S.Contact for Membership Information: Curt Crego, Chief Operating OfficerOther Key Contacts: Randle Jones, President ❖

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In the highly competitive home improve-ment retailing market, customer experi-ence is the key to success and ensuring your staff is focused on customer service

and satisfaction is essential to a positive customer experience.

When customers come in the door, they do not come in because they want to buy something, they come in because they have a problem. And the employees in the store are there to solve their problem, says R.D. (Bob) Sutherland, of Solutions Training, a training service for the hardware and build-ing supply industry. “If you do not have well-informed staff, they are not going to be able to solve the problem and the customer is going to go somewhere else. Having well trained employees that are able to look after the customer, in fact, creates a customer. As a result, the store will have customers com-ing back because, ‘oh yes, they helped me out there.’ And that satisfied customer tells the next door neighbour that he went down to that store and they solved the problem for him, thus creating more customers.” So, while factors such as pricing, merchandising, availability, and delivery are important, sales can quickly be lost if your employees are not service oriented and knowledgeable. “I have been doing seminars for retail sales people for many years. It is very obvious that people who have not had proper training tend to avoid DIY customers because they do not feel they have sufficient product knowledge to answer the customers’ questions.”

Hands On So while Sutherland advocates training,

he is quick to add that not all training is created equally. The biggest problem with training programs, he says, is that typically someone gets up at the front and they just talk without actually involving the trainees.

“I am a firm believer that your brain only absorbs as much as your butt can. When your butt gets sore, your brain turns off,” he says. Involved training programs are a combina-tion of video, hands on, and some talking. In his plumbing course, trainees are hands on about 50 per cent of the time while in the electrical course they are hands on about 75 per cent of the time. The trainees are physically doing things and because they are physically doing something, they remember. “They have played with it. They have felt it. They have touched it. They remember.”

As well, they should also leave courses with extensive course manuals for further training.

Competitive AdvantageAs far as who should take training,

Sutherland says he has had a range from store owners to people who have just started and are first day on the job. Regardless of who takes the training, Sutherland says there is not a retailer out there in the build-ing supply industry that should not be focus-ing on training. If retailers want to remain competitive in today’s economy, they need look no further than their employees.

Whether a retailer is looking to teach employees new skills or update their indus-try knowledge, there is always room to improve. Investment in training can build a competitive advantage by developing staff member skill sets. Embarking on a business plan that includes training and development increases the likelihood of a company’s success. ❖

R.D. “Bob” Sutherland has facilitated plumbing and electrical workshops to indus-try employees from coast to coast for many years. For information, eMail solutions straining@hotmail.com.

The compeTiTive advanTage:Investment In Training

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29HOME IMPROVEMENT RETAILING • December 2013

Your Relationship – Now that you have their information, what about your relation-ship with them, is this important to you? If so, what is it you want to store and manage?◆ Collect any and all phone calls and take

note of important things discussed◆ Keep a record of things covered and dis-

cussed during meetings and presentations◆ Any eMail correspondence (if eMail is

an important part of this, you definitely want to look at a CRM system that syncs with your eMail)

Projects, Tasks, and EventsSome CRM systems have their own

calendar or they can integrate with your calendar system making it easy to share events, projects, and tasks with other people in your team. It is helpful to have your tasks and events synced with your contact system. This is definitely worth checking into. With some CRM systems you can even automate a lot of your assignments and tasks which is a great time saver!

For example, let’s assign a new task to Jane, asking her to call a new lead. That task will have all the details and instructions for that call – what to say and what ques-tions to ask such as ‘Is lead interested?’ If Jane answers ‘Yes,’ the CRM automatically creates a personalized eMail to the lead, thanking them for their time. It also creates a follow-up task for Jane to drop by their office with a welcome basket.

With your sales cycle you can go as simple or as detailed as you need. Some things to think about:◆ Do you need to keep track of your sales

cycle with each client? ◆ If you sell products, do you need a sys-

tem for keeping track of your inventory?◆ Do you need an online shopping cart?◆ Do you want to be able to invoice your

clients directly from your CRM tool?Your team is another consideration. How

many people are in your team? Is it just you, do you have just a few people, or is there a big team? Size does matters when looking for the right system.◆ When working with a team you want to

keep track of who is working on what

By: Athenee Mastrangelo◆ Do you need a social network site for

your team (something that works like Twitter and Facebook, but privately for your team)?

◆ If there are more people on your team, are you all using the same operating sys-tem? [Hint: consider using a cloud-based system so this won’t be an issue]

◆ Consider looking into a time-tracking system, even if it is just you

◆ Where does everyone work? At the office? From home? Or are they mostly on the road?

Important To Check OutNow that you know a little bit about what

you need, ask yourself the following ques-tions about the system you are looking at:◆ Accessibility – With today’s technology,

consider looking into a cloud solution. You’ll have access to your important information no matter where you are. All you need is a computer, iPad, iPhone, or any other smart phone.

◆ Security and Backup – Is your informa-tion secure and is there continuous back-up? Obviously very important things to look into.

◆ Pricing – Know your budget and remem-ber more expensive does not necessarily mean better (for you).

◆ Export strategy – If you do decide to leave, you want to be able to easily take your information with you.

◆ User friendly – Is it easy to use and is there a good support system?

◆ Reviews – Do you like what you are reading?

◆ Customizable – Are you able to change things like your dashboard, fields, reports, etc.?

◆ Integration – Does it play well with other systems such as eMail, calendar, scanners, invoicing, online forms, etc?

◆ Social Media – Some CRM systems let you sync your contacts with social media sites, so you’ll always have the latest news and information. ❖

Athenée Mastrangelo is president of Action Chaos (www.ActionChaos.com).

Your clients are your top priority, right? So how are you managing their information and your rela-tionship with them? Do you have

all their information stuffed in a shoebox or do you have an effective CRM (Contact Relationship Management) system? Or maybe you’re somewhere in between?

The difference between having the right and the wrong CRM system can make or break your business. Finding the right system is not an easy task. It’s also a personal task. Just because Mike next door is very happy and successful with his CRM system does not mean it’s the right system for you! Every person, business, and situation is unique. For example, Kevin wanted only top of the line for his team and chose one of the more expensive CRM systems. Unfortunately, it was too complicated and too time-consum-ing, so in the end his team ended up never using it. Then there is Becky who started out with a free CRM system, but slowly had to start upgrading to a paid version to get the necessary options. In the end, she was paying more than the average system, but was get-ting less in return for her investment.

Five Key AreasPrior to investing your time, money, and

energy into a new CRM system you want to ask yourself some important questions. Here are some ideas to get you started:

Contact Management – For starters, you know you need to store and manage all the people in your life from your clients, colleagues, leads, and vendors, but what is it that you need to save (aside from the obvi-ous – their name, address, phone numbers, eMails, etc.)? ◆ Do you want to store their family infor-

mation such as spouse and children’s names, pets, birthdays, and stories?

◆ Are you a visual person and would like to be able to store their business card image/logo? What about their picture?

◆ Do you want to be able to organize your contacts into groups? [Hint: Yes!]

Turn Business Cards Into Business

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31HOME IMPROVEMENT RETAILING • December 2013

moBile paymenTs:

No Clear Solution, YetCurrently, NFC technology has draw-

backs – primarily with the availability of NFC-compatible phones as presently very few are embedded with NFC chips. Secondarily, there are a limited number of point-of-sale (POS) terminals currently in retail shops. Both are required for NFC-based transactions.

With cloud-based wallets, banking information is saved in the cloud where it is accessed by the user’s device. Cloud-based wallets consist of an app and when a customer makes a purchase, they type in the required information (pin number or password). The purchase is debited from either a prepaid account or their bank account.

There are drawbacks to cloud-based mobile payments. To date, cloud wallets are e-commerce focused and do not offer as many ‘beyond-payment’ add-on options as does NFC technology. As well, cloud wal-lets generally do not incorporate multiple phone service providers or financial institu-tions, whereas NFC-based solutions such as the Visa and ISIS wallets can incorporate many. Too, cloud-based solutions do not readily fit into POS infrastructure. Most require changes to the merchant’s system. And with the number of options available in cloud-based wallets, consumers need to learn a number of payment options. For many, it would perhaps be easier to simply use their credit or debit cards.

Mobile Phones As Credit Card Terminals

Another emerging option is the cell phone as a credit card payments terminal. This is the concept behind such compa-nies as Square (partnered with Visa) and Payfirma. Square offers a free credit card reader and app for the iPhone, iPad, and Android devices. Payfirma’s mobile pay-ment app is similarly based.

For these payment solutions, busi-nesses have a mobile account with a secure merchant account and mobile pay-ment processing. Typically the merchant account is linked to the merchant’s busi-ness bank account so when payments come through, they are deposited directly to the account.

Mobile payment apps allow businesses to process sales, pre-authorizations, and refunds ‘on the go, as well as monitoring sales activity from within the app.

By Karen E. Treml

While those of us matrixed in mobile technology would all love the day that our smartphones become the

Victorinox Swiss Army Handyman Multi-Tool Pocket Knife of yesteryear, the truth is our personal devices will absolutely never be able to uncork a bottle, whittle a stick, hang a picture, or walk the dog. Too bad – the dog has become a tad overweight. However, one definitive capability of the smartphone is in the field of mobile market-ing – one of the fastest growing fields in marketing today.

The smartphone has proven itself the handy tool in what is known as ‘pre-commerce,’ whereby customers use their phones and tablets to access product infor-mation in-store. Using barcode /QR (quick response) code technology, customers can source product and pricing information. Certainly pre-commerce has gained a very strong foothold with consumers who are quickly becoming very savvy in mobile commerce.

Yet, this is only the beginning. The most talked about trend in mobile marketing today is mobile payment. At present two main forms of mobile payment options are emerging – the virtual (mobile) wallet and the mobile phone as a credit card terminal.

The Virtual WalletThere are two types of virtual wallet –

an NFC-based (near-field communication) solution and a cloud-based service. The primary difference between the two has to do with where consumer payment informa-tion is stored – either on the user’s phone or in the ‘cloud.’

With NFC technology, payment informa-tion is stored on the user’s phone in a chip secured by use of an ever-changing code which safeguards against hacking. With NFC solutions such as ‘Google Wallet,’ consumers pay through a cardless credit card terminal which automatically transfers funds from their credit card or bank account. With NFC, customers can save loyalty cards and coupons to the wallet where they are then available in much the same way as physical loyalty cards or coupons are. In many cases, these loyalty cards and coupons can be set up to ‘auto-redeem.’

Why The Delay?While pre-commerce has gained rapid

momentum, the concept of mobile pay-ment, on the other hand, has been slow to gain ground. Concerns about security, and the lack of NFC enabled devices and contactless terminals stand as roadblocks. However, maybe the larger issue is really that mobile payment is solving a prob-lem that doesn’t actually truly exist. The complexities that arise from the various payment technologies, and the fact that no one technology is offering the total solu-tion, leaves merchants unclear on whether mobile payments are the answer and if so, which technology for what answer? Adding to this, with the ease of credit and debit card payments, consumers are not ‘gunning at the gate’ for mobile payment. Without a clear and compelling need, there is little impetus for merchants and consumers to sort through the underlying battle of tech-nologies, nor to invest time and money into technologies that have not, as yet, gained clear purpose. ❖

Karen E. Treml is Home Improvement Retailing’s staff writer (karen@powershift.ca).

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33HOME IMPROVEMENT RETAILING • December 2013

“The job of the sales associate is more important now and the next 10 to 15 years than it has been in the last 100 years. You need very highly skilled people to curate and create experiences in store and the new law of average demands that you be remarkable. You can no lon-ger get by by being average.”

Start with Your WebsiteStephens says there are lots of opportunities for home improve-

ment retailers both in-store and out of the store. However, most need to start with their websites and make them more user-friendly on mobile devices. “If I can’t easily navigate and transact on your website from an iPhone, don’t move on to anything else just yet.”

Home improvement retailers should “optimize their websites for mobile devices and begin opt-in marketing programs based on geo-fenced offers that alert consumers of promotions when they’re within a specific distance of the store. There are scalable means of doing both of these things on the market.”

Another big opportunity for home improvement retailers is to leverage YouTube as a channel for commerce. Some retailers already offer videos demonstrating products or projects, but Stephens suggests taking it a step further. “If I can see the tools used for a particular project, understand how to use them, and buy them directly from the video, that would be great. And, it’s quite possible.” He suggests retail-ers take a look at the aforementioned Ebay app, ‘Watch with Ebay.’

Both small and large home improvement retailers have opportunities to create remarkable experiences. “Some of the most remarkable busi-nesses on earth are small and independently owned,” says Stephens. “The key is for small retailers to understand that for every dollar the big box spends to make their experience more convenient and technologi-cally slick, they need to spend to make their experience more engaging and remarkable. Many independents kid themselves into believing that they’re delivering an excellent experience when, in fact, they’re not.

“Retailers need to understand that in a pre-Internet world, having all those tools and accessories in their store was impressive. Now, post-Internet, consumers want and expect more – more interesting in-store information, displays, classes, workshops, etc. The irony is that as sales got tougher, many retailers stopped doing the very things they should have done more of in order to excite customers in-store.”

Stephens says consumers will increasingly choose business that offer either ‘anywhere convenience’ or ‘only here experiences.’

“Everything in the middle may as well be invisible.” ❖

Nienke Hinton is a freelance writer based in Burlington, ON, and a former managing editor of Home Improvement Retailing.

As the world of technology evolves, brick-and-mortar retail stores will no longer be the ultimate destination of con-sumers. According to Doug Stephens, founder of Retail Prophet, a future-focused specialty retail consulting orga-

nization, the new destination will be the consumer.“When you think about it,” says Stephens, “all the way back to

the Roman Empire, retail has fundamentally been about two things, going somewhere to get something.”

This is true even today, he says. Customers who shop online are going somewhere (the Internet) to get something.

This is about to radically change.“Increasingly it will be the products that seek out consumers and,

in the process, render consumers the destination,” says Stephens. “The destination is no longer a store or a URL, it is me. The goods are coming to me in real time wherever I am.”

New ConceptThere are many examples of this new concept. In Korea, people can

buy products on the subway by using iPads or iPhones and linking to advertisements. Consumers can scan QR codes in advertisements to get more information on products and companies. Virtual room deco-rating allows customers to move furniture around in a simulated room or change the colour of the paint on their walls.

Ebay has come out with a new app called ‘Watch with Ebay,’ not yet available in Canada. With this app consumers can use the app

on a tablet or smart phone and sync it with their cable provider. The app will then recognize what show you are watching and it will offer up products from within that show for users to buy in real time. This app would pro-vide many opportunities for home improve-ment retailers with the profusion of home

improvement shows on television today. All of this means “the product

now becomes the store,” says Stephens, and retailers need to “think about opportunities and touch-points. Where are you going to give the consumer an opportunity to buy and through which touch-points can you be consistent?

“Regard the store as the beginning of the experience, not the end. It used to be the end. Once you got them to the store, your job was done

as marketer. Now, your job has just started when they walk in

the door. It is a big paradigm shift.

By: Nienke Hinton

The walls of the Seonreung subway station in downtown Seoul, South

Korea, are lined with virtual displays of more than 500 of Tesco’s

Homeplus store’s most popular products. These products have bar

codes which customers can scan using the Homeplus app on their

smartphones. The products are delivered right to their doorsteps.

The Consumer IsNew Destination

Doug Stephens, Founder Of Retail Prophet

When time means money, effi-ciency is all important. For contractors, this translates to tools that deliver good bang

for the buck – tools that are easy to set up, easy to use, have combined applications, and offer value adds. From Bluetooth connectiv-ity to no fuel mixing, these tools combine time- and cost-saving features with jobsite durability. And that adds up to true efficiency.

Laser Has One-time Setup

Bosch’s GLL 3-50 three-line laseris designed for level, align, plumb, and square applications with one-time setup. Displaying one horizontal and two vertical lines plus a plumb down point, it can be used for such things as leveling doors and windows on multiple walls or installing framing on a commercial jobsite. It offers 1⁄8-inch accuracy at 33 feet and can be com-bined with an optional LR2 receiver in pulse receiver mode to deliver up to ¼-inch accu-racy up to 165 feet. It comes with a versatile mounting base that provides 360 degrees of tool rotation with a manual fine adjust-ment for easy setup. Adjustable legs allow users to alter the height of the tool in order to see the plumb point down and a locking/unlocking mechanism assures that the tool maintains the set benchmark. Over-mold housing delivers durability and drop protec-tion, while an IP54 rating provides dust and water resistance amidst jobsite conditions. The tool’s smart pendulum system self lev-els and indicates out-of-level conditions and locks for safe transport when switched off.

The Bosch GLM 100 C Laser Measure com-bines a laser measure with Bluetooth wireless technology. Featuring an extended measuring distance of 330 feet, increased memory storage for up to 50 measurements, and angle mea-surement in two axis, the measure allows for

accurate measurements that are instantly transferred to smart devices via the Bosch Measurement mobile app. With the help of the app, contractors can store and manage measure-ments without relying on pen and paper, making it fast and easy to calculate mate-rial needs and estimate labour costs on-site. Measurements also can be superim-posed on jobsite photos, allowing users to create and share detailed quotes contain-ing pictures and comments. With remote control functionality, professionals can control the GLM 100 C from smart phones or tablets to make steady measurements at long range, short range, and targetless measurements or in hard-to-reach spots.

Caulking Gun Has AdjustableDispensing Speed

The Makita 300 millilitre cordless caulking gun has an anti-drip function that eliminates residual pressure on the caulk-ing tube to prevent caulk from escaping when the trigger is released. It features a variable speed dial to set the maximum dis-pensing speed while the variable speed trig-ger enables fine adjustment for maximum control and precision in a wide range of applications. The 360 degree rotating tube tray allows the operator to adjust position-ing based on materials or application. It has an overload protection feature with warning light to prevent motor burnout and the new battery protection system pro-vides over-discharge, temperature, and cir-cuit protection for enhanced performance,

battery cycle life, and overall battery life. The LED job light has a pre-glow and afterglow feature. It works with all stan-dard 300mL cartridges.

Makita’s Model EK7651H 14-inch 4-stroke power cutter requires no fuel mixing and has reduced fuel consumption. With the cleaner 4-stroke emissions, it limits environmental impact and reduced carbon buildup. The cutter has automatic decom-pression which reduces required start up force by 40 per cent and the pressure com-pensated carburetor prevents flooding by automatically adjusting to ensure the proper amount of fuel delivery. The reversible cut-

HOME IMPROVEMENT RETAILING • December 201334

technology. Featuring an extended measuring distance of 330 feet, increased memory storage for up to 50 measurements, and angle mea-surement in two axis, the measure

can store and manage measure-

Good Bang For The Buck

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ting arm enables the cutting disc to be side or centre mounted for optimal opera-tional versatility. The tool provides perfor-mance and durability on heavy duty jobsites.

The Stanley 25 foot FatMax tape rule (FMHT33338) has a blade that auto-matically locks at the length to which it is extended. The tape also features a manual mode to override the auto-locking mecha-nism, enabling it to become a tradition-al retractable tape. The true-zero end hook provides accurate measurements. It features a customizable detachable hook system so users can configure their tape for applica-tions such as connecting the over-sized hook attachment for framing applica-tions or removing it for standard appli-cations. The tape rule has onboard hook storage for two attachments. The 1¼-inch blade has 11 feet of standout, is coated in Mylar, and features BladeArmor coating for durability and long life.

Cordless Gas-Free Nailer Delivers Cost Savings

DEWALT’s Gas-Free Cordless Framing Nailer (DCN690M1) combines the company’s brushless motor technology with its 20V MAX 4.0AH li-ion battery pack to produce a gas-free cordless fram-ing nailer with the power to drive a 90

millimetre ring shank nail in cold tempera-tures. The nailer maintains consistent per-formance throughout the life of the tool. Cost savings are realized because there is no need for costly gas canisters. The nailer drives a large quantity of nails per charge. Even heavy use should only require one recharge over a full day’s work. Users have the choice between two firing modes

– bump fire or sequential mode. It mea-sures just 345 millimetre long and will eas-ily fit between 16-inch OC studs. Design features include a tool-free depth adjuster, a profiled nosepiece for good visibility and grip when firing at an angle, and fault indicator lights that instantly show why a nail has not been fired, either a low battery or a nail jam. ❖

35HOME IMPROVEMENT RETAILING • December 2013

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HOME IMPROVEMENT RETAILING • December 2013

proDuct spotliGht

Tape Has Aggressive Cling

Intertape Polymer Group Inc.’s bundle wrap stretch film is available in 2”x178’–120 gauge, 2”x650’–120 gauge, and 3”x600’–80 gauge. It is lightweight to help reduce stress in applying the film and has an aggressive cling to ensure that the film will stick to itself and not damage the product being bundled or protected. It is puncture and tear resistance.

Shingles Have Thick Cut Appearance

Westman Steel's DECRA Shingle XD has the appearance of a heavyweight architec-tural shingle at a fraction of the weight. With its thick cut edges and deep distinctive shad-ow lines, the shingle provides dimensional-ity and a robust appearance for those who prefer the look of heavy-cut wood shingles. The product is made of pressure formed aluminum-zinc alloy coated steel with an acrylic bonded stone chip finish. The stone coating resists fading and UV penetration.

Heat Exchange System Reduces Energy Use

The Amvic Ecoair ground-air heat exchange system works by pre-warming air with ground heat in winter and pre-cooling it

with cooler ground temperatures in summer. It provides controlled fresh air ventilation and reduces the amount of additional energy required to heat and cool a building, espe-cially when combined with a heat or energy recovery ventilator (HRV or ERV). It lowers the relative humidity and may eliminate the need for a central air conditioner in temper-ate climates. The system requires only a small amount of electrical power to operate an air intake fan.

Coating Product Restores Decks

Rustoleum Deck & Concrete Restore is a durable coating product used to resurface most wooden and composite decks while provid-ing protection against moisture and sun. It can be applied over most outdoor wood or concrete surfaces to achieve a new finished look, free of cracks and exposed splinters.

Tape Is Water ResistantCantech’s water resistant tape is made of polyes-ter scrim laminated to a polyethylene film and coated with high tack rubber adhesive. It pro-vides high wet grab and

shear for all types of sealing applications. It is 48 mm wide and comes in a variety of lengths.

Sheathing Lowers Energy Costs

Building Products of Canada’s BP Air-Lock is a non-woven polypropylene membrane that contains ultraviolet inhibitors. It reduces drafts and lowers energy costs with its breath-able air barrier properties. It reduces the risk of moisture damage and prevents the growth of mould, mildew, and rot within the wall cavity by preventing water infiltration from

the outside and allowing inside water vapour to escape. Line-up and installation is fast with easy-to-see nail guides every 8”. Air-Lock is available in 10’ x 95’ and 40” x 100’.

Mixers Good For DIYTUFX Fort Concrete Mixers are for the do-it-yourself enthusiast. The pressed steel drums range from a 120 to 180 litre capacity and are fitted with single-phase electric motors. They are well suited for home improvement jobs.

Toilet Seat Designed For Easy Cleaning

Centoco’s HP30SLC Deluxe Solid Plastic Toilet Seat has a top-mount hinge for easy installation and extended back with con-cealed hinge. It has integrally-molded, per-manent and sanitary, colour-keyed bumpers that won’t fall off, as well as corrosion-free hardware. It withstands cleansers and strong chemicals and is designed for easy cleaning.

Thermostat Is Installer Friendly

Broan’s Model 1D23W Thermostat for electrical baseboard heating systems features factory pre-stripped leads for easier installation. It also has a streamlined bi-metallic sensing strip which allows more finger room for the installer. The double pole unit is CSA certified with maximum amps of 22A and voltage of 120/240 VAC. The easy-to-turn control knob allows for temperature control from 10C to 30C.

DAP FASTPATCH 30 Sets Fast

DAP’s Fastpatch 30 is a multi-purpose pow-der patching compound formulated to set fast and dry hard. It sets hard in 30 minutes which allows finishing of interior repair projects in less time than traditional patch-ing compounds. Easy to mix, apply, and sand, it requires no priming before painting. It can be filed, drilled, nailed, or chiseled and provides good anchoring strength for fasteners. ❖

HOME IMPROVEMENT RETAILING • December 201336

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All Weather Windows Sante Cigana is vice-president – eastern Canada at All Weather Windows. Based out of Mississauga, ON, he will be responsible for the management and overall growth of the company in eastern Canada. He brings with him over 28 years of experience in the window and door industry, having held many senior roles including, most recently, vice-president of sales and marketing.

TIM-BR MART Bernie Owens is president of TIM-BR

MART Group. Most recently, he was vice-president of Certainteed Canada.

CTCMichael Medline is president of Canadian Tire Corporation. Most recently the presi-dent of FGL Sports and Mark’s, his 13-year career with CTC includes overseeing a

Peoplerevamped strategy for the automotive busi-ness, leading the com-pany’s corporate services group as chief corporate officer, and serving as a director on the board of Canadian Tire Bank. In addition, he has led all of the company’s acqui-sitions and integration efforts in the last 11 years including Mark’s, FGL Sports, and Pro Hockey Life. ❖

37 HOME IMPROVEMENT RETAILING • December 2013

SANTECIGANA

MICHAELMEDLINE

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publisher’s perspectiVe

HOME IMPROVEMENT RETAILING • December 201338

Dante PiccininPublisher and Editorial Director

hir@powershift.ca

Canada’s banners are approach-ing 2014 with some trepidation. This year, 2013, saw them move forward despite the challenges

posed by the slow recovery from the recent financial crisis. With the spectre of a hous-ing bubble bursting, anticipated increases in interest rates, and the ramification of stricter mortgage qualifications, the all-important housing sector was basically up and down all year in all regions of the country.

In our annual ‘Banners’ report start-ing on page 17, Paul Straus, president and chief executive officer of Home Hardware Stores Limited, points to some additional factors that have caused unpredictability in Canada’s growth in 2013 – a slack labour market, high levels of household debt, and unseasonable weather, to name a few. The home improvement sector has not been immune to these, he says.

Looking ahead, Jean Falardeau, vice-president, operations, at Groupe B.M.R. Inc., hints that 2014 could be more of the same. “If the statistics prove to be correct, we anticipate another tough year for 2014” given the economic uncertainty as well as the arrival of foreign competitors in the highly competitive home renovation centre and hardware store industry. Bill Morrison, president of TruServ Canada, concurs that 2014 will continue to challenge retailers as they face a “frugal customer group, looking for value and service.”

Staying in this year for the moment, some banners say 2013 has been a record year.

Castle Building Centres Group Ltd. has just had its most successful year (co-inci-dently its 50th anniversary) on record in terms of member recruitment and perfor-mance. The level of purchase volume flow-ing through the group and the rebates and profits it has returned to its shareholders are also the highest in its history. Rob Williams, home and building supplies sales manager at Federated Co-operative Limited anticipates, although the numbers are not officially in, a record year for that company. Steve Buckle, vice-president and general manager at the Sexton Group, says their purchase volume growth again outperformed the industry as a whole and 2013 purchase volumes were the highest in that company’s history.

Significant EventLooking back at 2013, perhaps the most

significant event was RONA’s performance. Through much of the year it was in cost-savings mode and, as of the end of its third quarter, it said it was on target for its $110 million annualized cost savings year-end objective. To do that, however, it launched initiatives including closing stores it deemed

unprofitable, eliminating jobs, and selling the commercial and professional market division it acquired in 2007.

If your store was not RONA, however, you looked at different measures to meet the challenges of 2013.

Castle focused on communicating with its members with an eBlast service. It also

introduced a vendor report card to allow its members to give feedback to its vendor community.

Home Hardware made improvements to its technology and continued to invest in its proprietary logistics management system which moves products smoothly across the entire supply chain and decreases operat-ing costs.

Buckle says since the Sexton Group oper-ates on a principle of focused efficiency, it continued to concentrate its efforts on devel-oping competitive pricing programs for a full range of building materials and hardlines.

At TruServ Canada, Morrison says 2013 was focused on dealers across Canada with its ‘Our Dealers: PR1ORITY’ program. It expanded products in its distribution centres in all category areas and contin-ued with the development of its websites, including the launch of customizable web-sites for its dealers.

Focus On eCommerce And that is a segue to 2014 where the

overriding focus seems to be on eCom-merce. Consider the following:◆ For the upcoming year, a major initiative

focus for Castle will be the fulfillment of the eCommerce solution which will make 40,000 SKUs available to Castle customers online by the middle of 2014.

◆ The communications strategy at the Sexton Group is maturing and it is deliv-ering its message and that of its supplier partners in a variety of formats.

◆ Bob Holmes, general manager at TORBSA, says it continues to look at technology and communication and what social media platforms can bring to the table.The other consistent message is that all

of the banners are doing whatever it takes to connect their members with their customers to deliver the best in services and products. Ultimately, that will prove to be the most important tool to handle the challenges of 2014 and beyond. ❖

Banners UncertainAbout Year-to-come

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ORGILL CUSTOMER INSIGHTS

Now, Orgill Gives All Dealers A Choice.Long-Term

Commitment

Worldwide Distribution & Retail Services

A Simple MissionAs Orgill has emerged as the world’s largest independent

hardlines distributor, its mission hasn’t changed. Like our

way of doing business, our mission is simple and to the

point… “help our customers be successful.” Everything we

do at Orgill focuses on fulfilling that mission and ensuring

our customers’ success.

A Solid PartnerNot only does Orgill have a long track record of service, but

it is also known for its innovation, growth and dedication

to helping retailers prosper. Orgill is fully committed to

providing Canadian retailers with all of the products,

programs and services they need to succeed now and into

the future.

A Unique System for Unique RetailersWith thousands of SKUs in stock, Orgill can deliver unique

assortments to customers of all shapes and sizes throughout

Canada. With more than 160 years of distribution

experience, you know you can count on Orgill to deliver

when you need it.

1-800-347-2860 EXT. 6780 • WWW.ORGILL.COMOrgill, Inc. P.O. Box 140, Memphis TN 38101-0140

To find out how Orgill can help you be more successful, call Phillip Walker

ORGILL HAS A LONG HISTORY OF EFFICIENCY, INNOVATION AND RELIABILITY! YOU CAN COUNT ON ORGILL!

Now, Retailers Throughout Canada Have A Choice!

For more than 160 years, Orgill, Inc. has helped home improvement retailers succeed by providing them with a reliable source for products, programs and services. Now, retailers throughout Canada have access to all of Orgill’s resources and can rely on a distribution partner that is going to be there for them over the long haul.

Long Term_HIR.indd 1 12/11/12 12:45 PM

Get the facts. Contact the Business Development Manager in your area:Western Canada Alan Schoemperlen (204) 771-1509 aschoemperlen@castle.caBritsh Columbia Les Gillespie (250) 469-4744 lgillespie@castle.caOntario Bruce Holman (647) 228-1414 bholman@castle.caQuebec & NB Robert Legault (514) 208-4158 rlegault@castle.caAtlantic Canada Sandy Welsh (902) 471-7113 swelsh@castle.caNewfoundland & Labrador Bob Delaney (709) 649-7173 bdelaney@castle.ca

Your trusted building supply partner

& hardware®

“With Castle, I have the freedom to make my own decisions that affect my business, my employees and my family. Transparency is also very important to our family business of 80 years. Castle’s knowledge of the industry, and the leadership of Ken Jenkins and James Jones, empowers us and helps us grow. And, we are growing - we’ve gone from seven to 23 staff members in the last two years! “

Keven RobinBrisson Castle Building Centre Cochrane, ON

castle.ca/freedom

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