HHIQ 2Q 2016

STORE MANAGEMENT
FLE
WHAT
CAN YOUR
DISTRIBUTOR
DO FOR YOU?
BY BILL WILSON, RETAIL ADVISOR, NRHA CANADA
Distributors have many programs
to help drive sales. In these
competitive times, you should
be taking advantage of all the
programs you can. Your banner
distributor can be your business
partner in today’s market.
D
espite the number of corporate-owned big box stores and
other competitors that have entered the Canadian market
over the years, distribution has played an important role
in ensuring the independents’ share in the market.
A LITTLE HISTORY
Back in the 1960s, several hardware distributors formed a group
called Pro Hardware Canada, joining together and merging their
volumes to receive volume pricing. They then launched a retail
banner Pro Hardware, which was franchised from Pro Group in the
U.S. In 1964, 122 independent Ontario hardware retailers purchased
Hollinger Hardware Limited of St. Jacobs, Ont. This resulted in the
formation of a dealer-owned hardware co-operative. The Home
Hardware name and logo became official on November 9, 1967.
In 1962, Les Marchands en Quincaillerie ltée was purchased
by a group of hardware store owners. This transaction marked
the beginning of their co-operative operations and the company
that became RONA. These three new entities could now gain better
buying power to compete in the marketplace. This was their
response to the challenges posed by the new “big box” discount
retailers that enjoyed the advantage of direct-from-manufacturer
buying power.
These distributors were then able to create additional programs,
required by retailers to grow their business and lower the costs of
doing business for their members. Programs included:
• advertising flyers and marketing programs;
• models or basic stocks for each category;
• modernized retail outlets developed for the target consumer;
• a profit-making system for the retailer with inventory control
and functional ordering programs; and
• volume purchasing programs with suppliers for the complete
retail environment, e.g., credit card costs, insurance, etc.
This was the start of hardware distributors thinking like retailers
to help their members grow and be profitable.
46 SECOND QUARTER / 2016
Hardlines Home Improvement Quarterly
www.hardlines.ca