CHHMA - EYE ON OUR INDUSTRY
Volume 16, Issue 34, September 8, 2016

Inside This Issue:

• Save the Date: Seminar on the Secrets of Power Negotiating® and Developing Persuasive Proposals – November 23
• Last Call for Seminar on the Future of E-Commerce/Digital - Next Tuesday September 13th
• Help Honour the Memory of Some Industry Friends & Enjoy a Day on the Golf Course at the Industry Memorial Golf Classic on September 27th
• Come Hear Bernie Owens, President of TIMBER MART, Speak at CHHMA Breakfast – October 26 in Montreal
• Sears Canada Reports $91.6 Million Loss in Second Quarter
• HBC Loss Widens in Q2 on Real Estate Joint Ventures but Retailer Boosts Operating Profit
• Dollarama Posts Better than Expected Profit in Q2 after Adding 13 New Stores
• Lowe’s Introduces Autonomous Service Robots to Stores in San Francisco Bay Area
• Alibaba Group and Canadian Government Sign Cooperation Agreement to Connect Small Businesses with Chinese Consumers
• Canadian Building Permits Rise, Break Two-Month Slide
• Bank of Canada Keeps Rate Unchanged, Sees Substantial Rebound Later this Year
• Toronto Home Sales Up 23.5% in August, Realtors Vow to Study Foreign Investors
• Canada’s Economy Keeps Dragging — and Government Policies are Making it Worse
• Latest U.S. Economic News

Association News

Save the Date: Seminar on the Secrets of Power Negotiating® and Developing Persuasive Proposals – November 23, 2016

Attention: CHHMA Members

Interested in improving business results and profitability? Can you and members of your organization develop persuasive proposals and negotiate effectively? Are you sure?

Effective proposal development and negotiating skills are essential for everyone.

Save the Date: November 23, 2016

The CHHMA has organized a special tailored one-day seminar for association members featuring negotiating expert Michael E. Sloopka.

When: November 23, 2016 – 8:30 a.m. to 4:30 p.m.(Continental Breakfast at 8:00 a.m. and Lunch at 12 noon)

Where: Corporate Event Centre at the Centre for Health & Safety Innovation (CHSI), 5110 Creekbank Road, Mississauga, Ontario

Who Should Attend: Senior management, sales management, all levels of sales and marketing personnel, and relevant cross-functional staff

Investment Required: $399.00, plus $29.95 for course materials (HST not included)

What You Will Learn: The morning session will focus on teaching attendees topline negotiating strategies, tactics, techniques, and powerful tips. The afternoon session will focus on teaching attendees a proven formula for developing more persuasive proposals that also impact your company’s line item and business reviews, as well as its new product launches.

Don’t miss out on the benefits and return on investment from attending this cost-effective one-day seminar that will help improve your business results and outcomes. Spread the word to members of your organization who can also benefit from improving their negotiating and proposal development skills.

Additional details will be provided within the coming weeks.

Last Call for Seminar on the Future of E-Commerce/Digital - Next Tuesday Sept. 13th

The CHHMA along with the Canadian Office Products Association (COPA) are pleased to be bringing you a seminar on the future of e-commerce/digital to be presented by the RetailNet Group next Tuesday, September 13, 2016, 9:00 a.m. – 11:00 a.m., at the Centre for Health & Safety Innovation (CHSI), 5110 Creekbank Rd., Mississauga. The cost to attend for CHHMA Members is $99.00 + HST.

The seminar will explore how fast e-commerce is growing, the top e-commerce initiatives that retailers around the globe are working on today, and the future prevalent e-commerce fulfillment models. Participants will learn why retailers and brands need to build their roadmap of the table stakes and differentiating capabilities to carry them through the e-commerce and digital transformation.

So if you have not registered someone from your company to attend this seminar, please consider doing so in the next day or two. Read More >>

Help Honour the Memory of Some Industry Friends & Enjoy a Day on the Golf Course at the Industry Memorial Golf Classic on September 27th

The 15th Annual Industry Memorial Golf Classic is taking place on Tuesday, September 27th at the Blue Springs Golf Club in Acton, Ontario.

The event is held on behalf of the hardware and housewares industry and it honours stalwarts from the industry who have passed away. CHHMA members and non-members are welcome to attend.

This year’s honourees are: David Holden (Hamilton Beach), Leonard Lee (Lee Valley Tools) and Warren Parr (D.H. Howden/TSC Stores).

Past honourees include: David Fry, Ted Kennedy, Geoff Somers, Ray Ceolin, Tom Ross, Bruce Webster, Chris Hrushowy, Mike Pullen, Jim Ypma, Bill Caldwell, Brayl Copp, Ed Hardison, Stuart North, Joseph Kuchar, Shelly Lush, Jack Pountney, Christof Vanooteghem, Ian Hay, Trygve Husebye, Bernie Carpenter, Don McDonald, Les Groves, Bob Hilton, Doug Straus, Mel Boshart, George Giles and Ed Barnes.

The day allows family, friends and colleagues to honour these gentlemen while enjoying a fun day out on the golf course followed by a dinner and silent auction.

The event will start off with registration and breakfast at 8:00 a.m. with a 9:00 a.m. tee off. Dinner will commence at around 2:30 p.m.

For full details and to register online, click here.

Click here for a PDF registration form.

Money raised from the event will go towards the CHHMA Scholarship Program which provides support for children of CHHMA member company employees to attend university or college. So please consider sponsoring a hole and/or donating an item for the silent auction for this worthwhile cause.

Click here for a PDF silent auction pledge form.

Come Hear Bernie Owens, President of TIMBER MART, Speak at CHHMA Breakfast – October 26 in Montreal

The CHHMA is pleased to be presenting Mr. Bernie Owens, President of TIMBER MART, at a CHHMA Breakfast Seminar on the morning of October 26 at the Hôtel Holiday Inn Montréal-Longueuil.

Mr. Owens began his career in the building-supply industry over thirty years ago, serving a long tenure at building-material manufacturer, CertainTeed – a subsidiary of multinational corporation, Saint-Gobain.Throughout his 21 years at CertainTeed, Mr. Owens served various roles including, General Manager - Finish Products for North America and Vice President of Sales for the company’s gypsum and insulation business units. Over the years, Owens adopted global best practices and fostered relationships with buying groups and building-material suppliers nationwide. Owens also went on to further his studies in business at international business school, INSEAD and York University’s Schulich School of Business.

Today, as the president of TIMBER MART, Mr. Owens leads the organization with a global industry perspective, fresh ideas, clear vision, and a relentless drive to make TIMBER MART the buying group of choice for Canadian independent building material and hardware entrepreneurs.

We look forward to hearing from Mr. Owens and his inside look into how he’s led TIMBER MART through some of their biggest organizational changes over the last three years. He'll explain how he’s leveraged change for TIMBER MART to become a best-in-class organization today – and supports Canadian independent entrepreneurs with a buying group that is better, faster and lower cost than ever before.

After the presentation, there will be a Question and Answer Period. Mr. Owens will also be accompanied by members of his management team.

Click here for all the details and to register.

Industry News

Sears Canada Reports $91.6 Million Loss in Second Quarter

Sears Canada reported on Wednesday a $91.6 million loss in its second quarter, which included severance and other costs associated with the retailer’s efforts to revitalize its business.

Last year’s second quarter was profitable due to a one-time gain of $67.2 million from the sale and leaseback of two logistics centres in Alberta and Ontario. No real estate gains were recorded in this year’s second quarter.

Net loss in this year’s second quarter amounted to 90 cents per share, compared with net earnings of $13.5 million or 13 cents per share in last year’s second quarter.

Revenue and store sales were down for a variety of reasons, including fewer transactions of appliances and other big-ticket items due to the termination of a credit card agreement and less revenue than expected from a merchandise agreement. Read More >>

HBC Loss Widens in Q2 on Real Estate Joint Ventures but Retailer Boosts Operating Profit

The Hudson’s Bay Company posted on Tuesday a net loss of $142 million in the second quarter amid increased costs from its real estate joint ventures.

The retailer has grown dramatically in the last year, acquiring German department store chain Galeria Kaufhof, online retailer Gilt and forming joint ventures with RioCan Real Estate Investment Trust and Simon Property Group in order to tie the company’s retail businesses to top-tier real estate investments.

HBC’s net loss in the period ended July 30, which amounted to a loss of 78 cents per share, compared with net earnings of $59 million (a profit of 28 cents per share) in the same period of 2015, which included a pre-tax gain of $133 million related to the creation of the joint ventures. The normalized net loss in the quarter was $122 million, compared with a loss of $61 million in the same period of 2015.

“We don’t have the benefit from the pre-tax gain last year on the sale of the properties into the joint ventures,” Hudson’s Bay chief executive Jerry Storch said. “Secondly, the rents from the joint venture are flat throughout the year no matter how big the quarter is, even though the most profitable quarters are the third and fourth quarters. So earlier in the year, the expenses are higher relative to the income and later in the year the income is much higher relative to the rent.”

Storch was more keen to focus on the company’s operating profit. Adjusted earnings before interest, taxes, depreciation and amortization climbed 60% to $81 million, compared with $52 million a year ago. Operating profit excluding rent grew to $263 million, up 113.8% from last year’s $123 million, thanks to HBC’s European operations. Read More >>

Dollarama Posts Better than Expected Profit in Q2 after Adding 13 New Stores

Dollarama Inc. reported last Thursday a better-than-expected profit in its second quarter ended July 31, as sales got a boost from more shoppers visiting its stores.

Dollarama, which raised its price ceiling to $4 from $3 during the second quarter ended July 31, said traffic rose 1% from a year earlier.

The Montreal-based retailer said it opened 13 stores in the second quarter, bringing the total number of stores to 1,051.

Dollarama said same-store sales rose 5.7%, compared with 7.9% last year. The company’s net income rose 11.4% to $106.4-million ($81.1-million U.S.), or 88 Canadian cents per share. Revenue rose 11.6% to $729-million from $653.3 million. Read More >>

Lowe’s Introduces Autonomous Service Robots to Stores in San Francisco Bay Area

Robots are increasingly common in warehouses and stores. Now Lowe's will start rolling out autonomous retail service robots that can help manage inventory and show customers where to find products.

E-commerce companies already use robots for materials transport and picking orders , but brick-and-mortar stores don't want to be left out of the automation trend. Now Lowe's joins the growing list of retailers that are using artificial intelligence to help with both logistics and customer service. The home improvement retailer will start rolling out autonomous retail service robots to 11 San Francisco Bay area stores over the next seven months.

Lowe's partnered with Silicon Valley technology firm Fellow Robots to develop LoweBot, a 5-foot-tall NAVii machine that can navigate itself through store aisles while avoiding obstacles. The two companies have previously worked together to develop a similar robot that has been tested for the last two years in Orchard Supply Hardware, a chain owned by Lowe's. Read More >>

Government & Legislative News

Alibaba Group and Canadian Government Sign Cooperation Agreement to Connect Small Businesses with Chinese Consumers

Alibaba Group Executive Chairman Jack Ma and Canadian Prime Minister Justin Trudeau unveiled last weekend a declaration of cooperation that will strengthen efforts to promote trade between Canadian small and medium sized businesses and Chinese consumers.

Both Mr. Ma and Prime Minister Trudeau said at a ceremony at Alibaba Group’s head office that the cooperation agreement empowers the Canadian Trade Commissioner Service and Alibaba to work together to expand the two-way flow of goods, services and people. The two sides will strategize on how to use e-commerce to stimulate trade, with opportunities for Canadian small and medium-sized exporters. Read More >>

Economic News

Canadian Building Permits Rise, Break Two-Month Slide

The value of Canadian building permits issued in July rose by 0.8% to $6.5 billion from June, led by authorizations to construct non-residential buildings, Statistics Canada said on Thursday. Ontario and Alberta led the national increase.

The increase was less than the 3.0% month-on-month advance predicted by analysts in a Reuters poll. Permits had dropped by 5.3% in June and 2.1% in May. Read More >>

Bank of Canada Keeps Rate Unchanged, Sees Substantial Rebound Later this Year

The Bank of Canada is still anticipating a “substantial rebound” in the second half of this year as the economy gets a lift from federal spending, rebuilding from the Alberta wildfires and recovering oil production. The central bank opted once again Wednesday to keep its key overnight interest rate at 0.5%, where it has sat for the past 14 months.

“The overall balance of risks remains within the zone for which the current stance of monetary policy is appropriate,” the bank said in a statement.

On the plus side, the bank pointed to recovering oil production and the increase in the Canada Child Benefit, brought in by the federal government, which is expected to boost consumer spending. Read More >>

Toronto Home Sales Up 23.5% in August, Realtors Vow to Study Foreign Investors

Toronto realtors say an extra two working days in August created a major boost for sales of existing homes in the month even in the face of a continued shortage of listings.

The Toronto Real Estate Board (TREB) said Wednesday there were 9,813 sales through the Multiple Listing Service last month, a 23.5% increase from a year ago. The majority of sales were on working days and without the two extra ones August, 2016, sales would have risen about 13% from a year ago.

With the focus in Vancouver on foreign investors and their impact on their market, Toronto realtors say they will study the issue on their own in the coming months. Last month, British Columbia began taxing foreign investors an extra 15% on property taxes and some have linked that move to a major decline in August sales in the province’s largest city. Read More >>

Canada’s Economy Keeps Dragging — and Government Policies are Making it Worse

Statistics Canada reported last week that second-quarter GDP fell 0.4% nationally, which is not particularly alarming in and of itself since all of the drop was due to the May wildfires in the Fort McMurray area. Already, the Macdonald-Laurier Institute leading indicator shows the underlying trend of the economy righted itself in June and July, auguring a recovery in the second half of the year. However, this is no reason to be sanguine: Growth rates are likely to prove uninspiring, as the North American economy remains stuck in the slow lane. Meanwhile, our governments’ monetary and fiscal prescriptions are proving ineffective, and possibly dangerously counterproductive.

More worrisome than tepid overall growth is the source of the weakness. Business investment and exports remain a drag on growth. The investment slump is especially noteworthy for its implications for long-term productivity growth. While much of Canada’s slump can be attributed to plunging oil prices, that does not explain the U.S. slack. Furthermore, Canada’s expected upturn in manufacturing output and investment hasn’t materialized, despite the boost from lower energy prices and the lower dollar. Read More >>

Latest U.S. Economic News

U.S. employment growth slowed more than expected in August after two straight months of robust gains and wage gains moderated, which could effectively rule out an interest rate increase from the Federal Reserve this month.

Contracts to buy previously owned U.S. homes surged in July after two straight months of declines as demand rose almost across the board, suggesting the housing market remains on solid ground despite last month's drop in home resales. Read More >>

Upcoming CHHMA Events

Future of E-Commerce/Digital Seminar
Tuesday, September 13, 2016
Centre for Health & Safety Innovation, Mississauga, Ontario

Industry Memorial Golf Classic
Tuesday, September 27, 2016
Blue Springs Golf Club, Acton, Ontario

Bernie Owens (TIMBER MART) Breakfast Seminar
Wednesday, October 26, 2016
Hôtel Holiday Inn Montréal-Longueuil, Longueuil, Québec

Secrets of Power Negotiating & Developing Persuasive Proposals One-Day Seminar
Featuring Negotiating Expert Michael E. Sloopka
Wednesday, November 23, 2016
Corporate Event Centre at CHSI, Mississauga, Ontario

CHHMA Industry Calendar

To register for all events visit our website at www.chhma.ca or call Pam Winter at (416) 282-0022 ext.21.

CHHMA Links

Freight Logistics Savings
No Obligation Consultation

Discount Cellular
Phone Rates

Long Distance &
Telecommunications Savings

Discount Gas & Diesel Rates

Logo Apparel &
Promotional Products

Office Product Discounts

"Eye On Our Industry" is published by the CHHMA as an information resource for our members. Member input regarding content and format is welcomed. Please contact Michael Jorgenson by email: mjorgenson@chhma.ca, or call at (416) 282-0022, ext. 34. CHHMA is located at 1335 Morningside Ave., Suite 101, Scarborough, ON, M1B 5M4 www.chhma.ca

If you would no longer like to receive our newsletter, please click here: Unsubscribe