HARDLINES.CA CONNECTING THE HOME IMPROVEMENT INDUSTRY
FIRST QUARTER / 2018
PLUS! SUCCESSION PLANNING There’s no success without a plan REGIONAL HOME IMPROVEMENT QUARTERLY SPOTLIGHT Ontario dealers see steady, solid growth Th e 2017
The 2017 Outstanding Retail Award Winners!winners show us how it’s done.
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HOME IMPROVEMENT QUARTERLY
FIRST QUARTER / 2018 • VOLUME 8, NO. 1 528 Queen Street East, Toronto, ON M5A 1V2 • 416-489-3396 @Hardlinesnews • www.hardlines.ca
EDITOR-IN-CHIEF PUBLISHER Michael McLarney Beverly Allen [email protected] [email protected]
EDITOR VP BUSINESS DEVELOPMENT Sigrid Forberg David Chestnut [email protected] [email protected]
STAFF WRITER MARKETING DIRECTOR Geoffrey McLarney Katherine Yager [email protected] CONTRIBUTING WRITERS John Caulfield ACCOUNTING Frank Condron [email protected] Rob Wilbrink TRUST US, Bill Wilson ADMINISTRATION YOU’LL BE OKAY WITHOUT IT. Michelle Porter ART DIRECTION [email protected] Shawn Samson TwoCreative.ca
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NUMBERIN THE HOME IMPROVEMENT ONE INDUSTRY. ONLINE AND PRINT. YOU NEED DEDICATION AND HHIQ is just one facet of the Hardlines Information Network. HARD WORK, NOT LUCK. Since 1995, we’ve been delivering the most up-to-date information directly to you online, in print, and in person. Find out how you can get your message out with us. Contact: Beverly Allen David Chestnut PUBLISHER VP BUSINESS DEVELOPMENT taigabuilding.com Office: 416.489.3396 • Mobile: 647.880.4589 Mobile: 416.425.7992 Email: [email protected] Email: [email protected]
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Magazine : Natural Landscape Format : 9,125 in x 10,875 in N° de bon de commande : PO-025560 Date de tombée : xxxx Éditeur : Natural Landscape inc Date de parution : Q3 VOLUME 8, NO. 1 CONTENTS FIRST QUARTER / 2018
COVER STORY The 2017 Outstanding THE ORA 22 Retail Award winners WINNERS show us how it’s done
DEPARTMENTS
EDITOR’S MESSAGE 7 Retail is a one-person race
BUSINESS CONDITIONS SUCCESSION PLANNING 8 THERE’S NO SUCCESS Third quarter 2017 MARKET REPORT WITHOUT A PLAN 10 Challenges, opportunities FOR SUCCESSION for dealers in 2018 With baby boomers looking to retire PRODUCT SPOTLIGHT 34 in the next few years, the time to 18 13-amp reciprocating think about succession planning is now saw, shingles, and more
NEWS SPOTLIGHT SHOW REPORT 20 UFA realigns NEWSROUNDUP 12 HARDLINES company CONFERENCE with new focus Home Hardware launches The 22nd annual conference commercial maintenance 32 NEWS FEATURE program at latest market was filled with ideas, 36 Building Material challenges, and inspiration Council of Canada Paint, agro products, patio furniture get spotlight at REGIONAL SPOTLIGHT SHOW REPORT Federated Co-op’s Buymart ONTARIO DEALERS SEE 38 International garden show spoga+gafa RONA and Ace dealers front STEADY, SOLID GROWTH and centre at latest Lowe’s Dealers weigh in on challenges MERCHANDISING Buying Show 42 they’ve faced in a year of 40 Deciding what to sell otherwise positive growth Spancan announces STORE MANAGEMENT new purchasing director SELLING TO PROS 46 You are your SEARCHING FOR store’s brand Reno-Depot introduces Canada-wide delivery for THE RIGHT FIT ENDCAP online purchases Dealers leave no 50 Deane family 44 stones unturned store maintains legacy Organizational changes in their search for taking place at Canadian Tire qualified workers
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SIGRID FORBERG, EDITOR RETAIL IS A ONE-PERSON RACE It’s not a competition, but you do have competitors.
n this issue, we celebrate the Going through the applications every as well. We have a feature on succession 2017 Outstanding Retailer Award year, there’s no shortage of stories like planning on page 34. And our Selling to Pros I winners. If there’s one thing that all David’s. Every store has managed to find column in this issue focuses on finding and the ORA applicants have in common, it’s its place in its respective community and a retaining staff in departments that require a that they have a deep respect for the value way to meets its specific needs. Bill Wilson, little more knowledge or experience. Some of good service. Going above and beyond our regular columnist and an ORA judge, dealers have found creative ways to attract to make customers happy comes naturally. outlines some examples of how this year’s new employees and to incentivize them to Part of it is a strategic choice. Any dealer retailers make their stores outstanding stay on long-term. who wants to stay competitive can’t afford and what lessons you can learn from Finally, our show report on page 38 to give surly, or even perfunctory, service. their approaches. highlights some of the most interesting But every year, we’re blown away by the In our regional spotlight on Ontario retail trends we saw at spoga+gafa last stories of dealers like David Sayer of Sayer on page 42, we hear from dealers across summer. The show, the world’s largest Home Hardware in Hagersville, Ont., who Canada’s most populous province. While garden fair, held in Cologne, Germany, offered a lot of great examples of the innovative products we can expect to see in this growing category. Every store has managed to find Leading edge products, customer service, its place in its respective community the business end of things—it’s a lot to “and a way to meets its specific needs. manage. But it helps to know everyone’s facing the same challenges. And we’re here to support you with the information you need to help you best position your business provides free deliveries and installation for it’s a market that steadily ”experiences for the year to come. one of his elderly customers. While she’s not healthy growth year after year, dealers the only customer he does this for, David must balance growing their businesses and and his wife Cheryl will also practice yoga staying true to the quality of service their with her and she’s known for sharing her customers have come to expect. As Carlo delicious homemade baked goods. Guido, co-owner of Lakeview RONA in It’s a culture of caring embedded in North Bay, Ont., puts it, there’s no sleeping the store’s philosophy. It’s the difference on the job in this industry. [email protected] between making your customers happy and The beginning of the year is a good time making them feel like family. to review your policies on the business end,
www.hardlines.ca Hardlines Home Improvement Quarterly FIRST QUARTER / 2018 7 QUARTERLY BUSINESS CONDITIONS
Vendors In Q3 2017, howVendors did In Q3 2017, how didVendors In Q3 2017,Vendors how did In Q3 2017, how did your business compare with yourthe business compare with theyour business compareyour with business the compare with the THIRD QUARTER 2017 same time last year? same time last year? same time last year? same time last year? ild summer weather that continued well into fall has future holds for the home improvement industry at the end of Q3 Up 54.2% Up 54.2% Up 54.2% Up 54.2% resulted in good business for many retailers across the 2017. In fact, just over half the retailers and vendors surveyed Down 29.2% Down 29.2% Down 29.2% Down 29.2% M country. But some vendors who sell seasonal products have expected sales to be up compared to the previous year. Same 16.6% Same 16.6% Same 16.6% Same 16.6% expressed concern that it’s begun to impact their winter sales. The top issues right now for retailers are staffing, customer With unpredictable weather, the increasing scarcity of lumber, retention, and e-commerce challenges, while suppliers are and general uncertainty hanging over the political sphere, both concerned with retail consolidation, higher raw material and retailers and vendors were far less optimistic about what the shipping costs, and the exchange rate with the U.S. dollar.
HOW DID YOUR DO YOU EXPECT YOUR DO YOU EXPECT YOUR AT YEAR-END 2017, BUSINESS COMPARE SALES TO INCREASE SALES TO INCREASE HOW DO YOU EXPECT WITH THE SAME TIME OVER THE NEXT OVER THE NEXT SALES FOR THIS YEAR Vendors In Q3 2017, howVendors did In Q3 2017, howVendors did In Q3Vendors LAST2017, YEAR? how did In Q3 2017, howSIX did MONTHS? 12 MONTHS? TO HAVE GONE? your business compare with theyour business compare withyour the business compareyour with business the compare with the same time last year? 1 .1 same time last year? . same1 .1 time last year?same 1 .1 time . last year? . . 12. 12. 12. 8. 8. 8. 8. 1 .1 UNSURE UNSURE UNSURE 12. 1 . 1 . 1 .7 1 . 1 .7 1 . 1 .7 1 .7 UNSURE UNSURE UNSURE Up 54.2% SAMEUp 54.2% UNSUREUp SAME54.2% Up SAME54.2% FLAT FLAT SAMEFLAT SAME UNSURESAME UNSURE UNSURE SAME 18.7 18.7 FLAT 18.7 SAME UNSURE Down 29.2% Down 29.2% Down 29.2% Down 29.2% 18.7 UNSURE UNSURE UNSURE 7. 7. 7. 7. .7 UNSURE .7 .7 FLAT FLAT FLAT .7 . FLAT Same 16.6% Same 16.6% Same 16.6% Same 16.6%RETAILERS YES 8. . YES YES . . VENDORS RETAILERS 8. RETAILERS 8. RETAILERSRETAILERSYES 8. RETAILERS RETAILERSRETAILERS RETAILERSRETAILERS YES RETAILERSRETAILERS YES RETAILERSRETAILERSYES VENDORSRETAILERS RETAILERSVENDORS .2 VENDORS VENDORS .2 VENDORS .2 VENDORSVENDORS VENDORSVENDORS VENDORSVENDORS .2 VENDORSVENDORS .2 VENDORS .2 VENDORS .2 UP UP UP YES 2. .8 2. .2 .8 2. .8 UP UP UP UP UP 2. .8 DOWN DOWN UP UP DOWN2 .2 UPUP 2 .2 UP 2 .2 UP . . . . . . . DOWN UP UP 2 .2 DOWN DOWN DOWN DOWN . DOWN NODOWN NO NO DOWN DOWN NO . . . 8 . 8 . 8 . 1.7 1.7 8. 1.7 8. 8. . NO NO 8 . YES 1.7 YES YES 8. DOWN DOWN DOWN NO NO YES YES YES DOWN YES YES
Year over year, the percentage of The percentage of retailers Retailers’ negative outlook for the Looking ahead to the end of the retailers experiencing better sales expecting sales to decrease in year ahead is significantly less year, the percentage of retailers than last year has increased more the next six months has gone optimistic than the same quarter the that predict sales will go up has than 11 percentage points from 37.0 up slightly from 37.0 percent in year before, when only 22.2 percent increased slightly, compared to percent to 48.4 percent in Q3 2017. Q3 2016. didn’t expect sales to increase over 48.2 percent in Q3 2016. the next 12 months.