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CHHMA NEWS

CHHMA - EYE ON OUR INDUSTRY
Volume 16, Issue 8, February 24, 2016

Inside This Issue:

• Make Your Plans to Attend the CHHMA Spring Conference & AGM on April 12th
• Have You Registered Yet for Canada Night in Chicago?
• Sign Up to Sponsor Maple Leaf Night in Las Vegas
• CSSA Holding March 3 Webinar On How to Prepare 2016 Steward Reports
• Points Raised During ÉEQ’s Schedule Consultations Still Under Review
• Lowe’s Tops Estimates on Improving U.S. Housing Market
• Target Swings to Profit, Same-Store Sales Rise in Q4
• Home Depot Reports Better than Expected Quarterly Results
• Sears Canada Hands Off 8 Sears Home Store Leases to Leon’s Furniture
• HBC Sales Get Bump from Currency Fluctuation, Online Sales
• Canadian Tire to ‘Selectively’ Look at Raising Some Prices; Eyes E-Commerce for Growth
• Wal-Mart Outshined by Amazon.com Despite Spending Billions on E-Commerce
• IHA Announces Finalists for Global Innovation Awards (gia) for Product Design
• Westcoast Building and Hardware Show Postponed
• Online Shopping in Canada Grew Substantially Over Holiday Season, BMO Report Says
• Canadian Retail Sales Plunge 2.2% in December
• Inflation Rate Jumps as Impact of Declining Loonie Takes Hold
• OECD Downgrades Canadian, Global Growth, Warns ‘Urgent’ Global Action Needed
• Latest U.S. Economic News


Association News

 
Make Your Plans to Attend the CHHMA Spring Conference & AGM on April 12th

The 47th CHHMA Annual General Meeting & Spring Conference will take place on Tuesday, April 12, 2016.

This year’s theme is “Overcoming Today’s Challenges” and we have an outstanding line-up of speakers and topics to help manufacturers’/brand owners’ better understand today’s marketplace and address some of those challenges.

It is also an opportunity to network with your fellow CHHMA members and get up to date with the latest association news and plans during the AGM portion of the day.

Also taking place during the conference will be the Industry Hall of Fame inductions which will occur during a luncheon prior to the afternoon program. This year’s inductees are Ms. Laurie O’Halloran Founder/Editor/Publisher of Home Style Magazine; Mr. Bill Calisina, retired (former President) of Bissell Canada, and Mr. James Mumby, retired (former President & CEO) of Dynamic Paint Products.

Senior retail customers will once again be invited to attend the Hall of Fame luncheon and afternoon speaker presentation.

Online registration will open later this week but in the meantime, you can click here for a PDF brochure and registration form with all the details.  

We hope to see you there on April 12th!



Have You Registered Yet for Canada Night in Chicago?

The 67th Canada Night reception will be held on Sunday, March 6, 2016, 6:00 to 8:00 p.m. at the InterContinental Hotel, Renaissance Ballroom in Chicago.

Canadian vendors, agents and suppliers to the industry in town for the International Home+Housewares Show are invited to purchase tickets to the event while Canadian retailers are invited as complimentary guests of the sponsoring companies.

The intent of the evening is to give everyone an opportunity to mix and mingle with peers and customers in a convivial environment celebrating the common bond of being Canadian while enjoying wine, beer, caesars and appetizers.

New this year will be live jazz and a whiskey tasting bar!


The registration fee is $175 (Cdn) per person (at the door price $225).

For all the details and to register, click here.  



Sign Up to Sponsor Maple Leaf Night in Las Vegas

Maple Leaf Night is taking place this year on the evening of Wednesday, May 4th at the Mirage Hotel & Casino in Las Vegas.This popular social event is open to CHHMA members and their retail customers in town for the National Hardware Show (May 4-6).

Sponsorship is $775 CDN and entitles companies to corporate identification on all tickets, letterheads and event signage.It also entitles your company to one complimentary ticket for the host who will participate in the receiving line and two additional complimentary sponsor tickets.

Additional sponsor tickets can also be purchased for a reduced price of $125 CDN.

Regular individual tickets are $185 CDN or $225 CDN at the door.

Retailers/customers are invited to attend complimentary on behalf of the sponsors.

To sign up as a sponsor, click here.  

Regular registration for the event will commence in early March.



Stewardship News

CSSA Holding March 3 Webinar On How to Prepare 2016 Steward Reports


Stewards of packaging and printed paper (PPP) recycling programs including Multi-Material British Columbia (MMBC), Multi-Material Stewardship Western (MMSW), Multi-Material Stewardship Manitoba (MMSM) and Stewardship Ontario, should be aware that the Canadian Stewardship Services Alliance (CSSA) will be conducting a webinar on Thursday, March 3, 2016 (2:00 – 3:30 pm Eastern Standard Time) to help any stewards in preparing their 2016 report and answer any questions about the process or materials to report on.

CSSA will walk you through the reporting process, provide tips on gathering together your data, and answer any specific questions you may have.  Read More >>



Points Raised During ÉEQ’s Schedule Consultations Still Under Review

Éco Entreprises Québec’s (ÉEQ) recent consultation meetings with stewards on the 2015-2016 Schedule of Contributions drew feedback which led to subsequent meetings being held to discuss topics including increased rates for certain materials, the retroactive effect of the Schedule and the harmonization of material aggregates with other Canadian programs.

On January 22, 2016, ÉEQ’s Board of Directors reviewed scenarios and additional analyses developed following the consultation meetings. Some aspects still need to be reviewed before the 2015-2016 Schedule of Contributions can be adopted and subsequently submitted to RECYC-QUÉBEC for analysis and recommendation to the government.

Also, in compliance with Article 7 of the 2012 Schedule of Contributions, ÉEQ will be issuing credits totalling $1.86 million to companies who reported materials for 2012 but are not low-volume producers.   Read More >> 



Industry News

Lowe's Tops Estimates on Improving U.S. Housing Market


Lowe’s Companies, Inc. reported a better-than-expected rise in quarterly sales and forecast 2016 sales above estimates as the steady improvement in the U.S. housing market boosts demand.

The company, like other U.S. home improvement retailers, is benefiting from a pent-up demand for houses after the 2008 crisis, while low interest rates and growth in jobs, wages and credit have spurred spending on renovations. Besides the housing market improvement, unseasonably warm weather in the holiday quarter encouraged customers to continue outdoor activities and home renovations, which led to an increase in sales at Lowe’s and Home Depot.

Sales at Lowe’s established stores in the United States rose 5.5% in the fourth quarter. But that was less than the 8.9% increase Home Depot posted for the same period.

“As good as (Lowe’s) numbers are, comparisons will inevitably be drawn with Home Depot’s much stronger results,” said Hakon Helgesen, analyst as research firm Conlumino.  Read More >>



Target Swings to Profit, Same-Store Sales Rise in Q4

Target swung back to a profit for the fourth quarter and is reporting its sixth consecutive quarter of rising same-store sales.  The results Wednesday show that Target has made some progress in reinvigorating its business and winning back shoppers.

Target earned $1.43-billion, or $2.32 per share in the quarter ended Jan. 30. That compares with a loss of $2.64-billion, or $4.10 per share in the year-ago period. Still, adjusted earnings results were $1.52 per share, which was a bit below the $1.54 per share estimate, according to FactSet.

Revenue slipped 0.6% to $21.63-billion on the sale of its pharmacy business to CVS, also a bit shy of Wall Street expectations.  Same-store sales rose 1.9% during the quarter.  Read More >>



Home Depot Reports Better than Expected Quarterly Results

Home Depot Inc. reported on Tuesday, better-than-expected quarterly sales, helped by a rise in demand amid an improvement in the U.S. housing market.

Shares of the company, which also raised its quarterly dividend by 17% and announced a $5-billion (U.S.) share buy back plan, rose 2.6% to $126.04 in premarket trading on Tuesday.

The retailer said it had sales of $21.0 billion for the fourth quarter ended Jan. 31, a 9.5% increase from the fourth quarter of fiscal 2014. Same-store sales for the fourth quarter rose 7.1% overall and were up 8.9% in the U.S. Analysts on average had expected U.S. same-store sales to rise 5.3%, according to research firm Consensus Metrix.  Read More >>



Sears Canada Hands Off 8 Sears Home Store Leases to Leon’s Furniture

Sears Canada Inc. will hand eight of its big-box Sears Home store leases to Leon’s Furniture Inc., a potentially disappointing sign for a historically robust area of its business.

Tuesday’s announcement, which covers four home stores in British Columbia, three in Ontario and one in Moncton, N.B., is the latest in a series of lease exits by Sears in recent years as the retailer shrinks its retail store footprint amid dwindling overall sales, which have fallen for the past nine years to $3.4 billion. The company’s shares have fallen 43% this year.

Unlike the other real estate deals, which have been a boom to the company, bringing in hundreds of millions of dollars to Sears Canada, Tuesday’s deal transfers essentially no money to Sears: It merely allows the faltering retail chain to exit locations at which it has been losing money.  Read More >>



HBC Sales Get Bump from Currency Fluctuation, Online Sales

The Hudson’s Bay Company has given investors a preliminary look at its financial performance at the end of last year.  On Tuesday, the retailer announced its same-store sales results for the fourth quarter and fiscal year ended Jan. 30.

The company says same-store sales growth was up 11% overall for the quarter, although that was boosted by a higher U.S. dollar compared with the Canadian currency that HBC uses for financial reporting.  On a constant-currency basis, sales at HBC stores that have been open for at least a year were up 1.8% overall for Q4.  Read More >> 



Canadian Tire to ‘Selectively’ Look at Raising Some Prices; Eyes E-Commerce for Growth

Despite a weak dollar that has pushed up purchasing costs for Canadian Tire Corp. Ltd., the retailer has generally resisted passing on those added expenses to consumers in the form of higher prices – until now.

Feeling the currency pressures, Canadian Tire will start to “selectively” look at raising some prices, Michael Medline, chief executive officer of the giant retailer, said last Thursday after the company reported its latest quarterly results.

Mr. Medline also told analysts during last Thursday’s conference call that the next acquisition for Canadian Tire Corp. will likely be in e-commerce.  Read More >>



Wal-Mart Outshined by Amazon.com Despite Spending Billions on E-Commerce

After spending billions on its web operations to take on rival Amazon.com Inc., the last thing Wal-Mart Stores Inc. wanted to tell investors was that online sales momentum was slowing.  Yet the world’s biggest retailer said last Thursday that e-commerce sales rose only 8% in the fourth quarter. That’s down from 10% in the third quarter and 16% in the second.

The retailer attributed the deceleration to increased competition in the U.K. as well as economic downturns in Brazil and China. As for its domestic e-commerce sales, Wal-Mart would only say that its U.S. online operations have grown faster than the company-wide total. But with the retailer set to spend more than US$1.1 billion this year on e-commerce, investors are getting impatient.  Read More >>



IHA Announces Finalists for Global Innovation Awards (gia) for Product Design

The 60 finalists in the IHA Global Innovations Awards (gia) for product design were announced last week by the International Housewares Association. Winners in each of 12 categories will be announced during the invitation-only gia dinner on Saturday, March 5th taking place during the 2016 International Home + Housewares Show. The finalists and winners will be on display in the Hall of Global Innovation in the Lakeside Center Lobby. The show opens at 10 a.m. on March 5 and runs through 3 p.m. March 8.

More than 500 entries were received and were judged by a panel of industry experts and news media. The finalists will also be on display in the New Product Showcases located in the Buyers Club in each Show building.  To see the list of finalists .... Read More >> 



Westcoast Building and Hardware Show Postponed

The upcoming Westcoast Building and Hardware Show, which was to be held March 10-13, 2016 at the Cloverdale Fair Grounds in Surrey, B.C., has been postponed. A press release last week from the Building Supply Industry Association of British Columbia (BSIA), which owns and operates the show, stated that the show was being postponed due to lower than expected response (booth sales and retail pre-registration).  Read More >>



Economic News

Online Shopping in Canada Grew Substantially Over Holiday Season, BMO Report Says

Online shopping was the winner this holiday retail season, according to a report that says many traditional retailers will have to up their game in order to prevent Amazon and eBay from siphoning away sales in the future.

“E-commerce is becoming a more preferred shopping channel among Canadians as these digital platforms offer comfort and convenience for shoppers,” said the report this month from BMO Capital Markets analyst Peter Sklar, who compared share of Canadian Web visits during the holidays between online only retailers and bricks-and-mortar retailers with online divisions, such as Canadian Tire and Walmart.  Read More >>



Canadian Retail Sales Plunge 2.2% in December

Following a 1.7% rise in November, retail sales fell 2.2% to $43.2 billion in December Statistics Canada reported last Friday, a much larger drop than the 0.9% that economists had been predicting.  Declines were widespread as lower sales were reported in 10 of 11 subsectors, representing 97% of retail trade.  Later snowfalls and unseasonably warm weather in many parts of Canada may have contributed to lower seasonal purchases.  In volume terms, retail sales were down 2.3%.  Read More >>     



Inflation Rate Jumps as Impact of Declining Loonie Takes Hold

The Canadian dollar’s sharp drop over the past year is beginning to stoke inflation. The Consumer Price Index (CPI) rose 2% in January from a year earlier, Statistics Canada said last Friday, the highest since November 2014 as the U.S. dollar’s gain drives up food costs in Canada.

The jump in prices, which exceeded economist expectations, poses a problem for a central bank that is scrambling to shore up growth with historically low borrowing costs as the country struggles with a plunge in commodity prices. Worries about the impact of the currency kept Governor Stephen Poloz from cutting interest rates last month.

“All those anecdotes about higher cauliflower prices certainly came through in this report,” said David Tulk, chief Canada macro strategist at TD Bank. It “speaks to the concern the Bank of Canada had which probably made them more cautious about cutting rates last month.”  Read More >> 


 
OECD Downgrades Canadian, Global Growth, Warns ‘Urgent’ Global Action Needed

The Organization for Economic Co-operation and Development (OECD) is taking a markedly dimmer view of Canada’s economy, though its latest forecast is far more upbeat than some other projections.  The OECD now projects economic growth of just 1.4% in Canada this year as the oil shock wreaks havoc on parts of the country, with a ripple effect outward. That’s well shy of its earlier call in November for 2%.

The group also warned of trouble around the world, saying a “stronger collective policy response is urgent.” The OECD downgraded its 2016 global growth outlook to 3% from 3.3%, matching last year’s underwhelming growth rate.  Read More >>       



Latest U.S. Economic News
       

Annualized U.S. single-family home prices rose less than expected in November, a closely watched survey showed on Tuesday.  The S&P/Case Shiller composite index of 20 metropolitan areas rose 5.7% in December on a year-over-year basis, matching the increase the month before. That was just below the 5.8% estimate from a Reuters poll of economists.

Rising rents and medical costs lifted underlying U.S. inflation in January by the most in nearly 4-1/2 years, signs of a pick-up in price pressures that could allow the Federal Reserve to gradually raise interest rates this year.  The Labor Department said last Friday its Consumer Price Index, excluding the volatile food and energy components, increased 0.3% last month. That was the biggest gain since August 2011 and followed a 0.2% rise in December.  Read More >>  

  

 Upcoming CHHMA Events 

Seminar: Transportation Trends for E-Commerce
Thursday, February 25, 2016
CHSI (Centre for Health & Safety Innovation), Mississauga, Ontario

Canada Night
Held in Conjunction with the International Home+Housewares Show
Sunday, March 6, 2016
InterContinental Hotel, Chicago, Illinois

CHHMA Spring Conference & AGM
Tuesday, April 12, 2016
International Centre (Conference Facility), Mississauga, Ontario

CHHMA Maple Leaf Night
Held in Conjunction with the National Hardware Show
Wednesday, May 4, 2016
The Mirage Hotel & Casino, Las Vegas, Nevada

CHHMA Quebec Golf Classic
Thursday, May 19, 2016
Club de golf Le Fontainebleau, Blainville, Quebec

CHHMA Ontario Golf Tournament
Tuesday, May 31, 2016
Angus Glen Golf Club, Markham, 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.


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"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

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Canadian Hardware & Housewares Manufacturers Association | 1335 Morningside Ave., Suite 101, Scarborough, ON M1B 5M4
Telephone: (416) 282-0022   Email: pwinter@chhma.ca