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Volume 16, Issue 22, June 9, 2016

Inside This Issue:

• Need Some Tips on Digital Marketing? - Join us on June 14th for Webinar
• Sign-Up for June 20 Webinar on “How Digital is Changing Stores in Canada"
• Applications for CHHMA Scholarship Program Due by July 15th
• Sears Canada to Cut More Costs, Price Match as Posts Larger First Quarter Loss
• Dollarama Beats Profit Expectations as Sales and Margins Rise
• Keurig Discontinues Cold-Beverage Maker After Less than a Year
• HBC Sees $15 billion in Sales this Year, Nearly Quadruple its Revenue in 2013
• Wal-Mart Tests Grocery Delivery with Uber; Use of Drones in Distribution Centre
• Pace of Housing Starts Slows in May
• Value of Building Permits Drops on Weakness in Ontario
• More Sources Call on Canadian Government to Cool Surging Home Prices
• Latest U.S. Economic News

Association News

 Need Some Tips on Digital Marketing? - Participate in June 14th Webinar

Sofie Andreou of Sofie Andreou & Associates, who was a keynote speaker at the CHHMA Spring Conference & AGM in April, held a free webinar earlier this morning for CHHMA and COPA members on the topic of Digital Marketing.This introductory webinar focused on the basics and provided tips in each of Facebook, Twitter and LinkedIn.

If you missed this morning’s webinar, there is an opportunity to participate in the same webinar next Tuesday, June 14th from 1:30 p.m. to 2:15 p.m. with a possibility of more webinars with Sofie in the future.
If there is interest from the membership, we will also look to extend access to Sofie's online digital marketing tutorials called "Coffee Break Learning" in the fall. To find out more on Coffee Break Learning or Sofie click here:

For the GoToMeeting sign-in details for the webinar and links to a few of Sofie’s video tutorials which you might find useful, click here.

Sign-Up for June 20 Webinar on “How Digital is Changing Stores in Canada”  

On Monday, June 20, CHHMA members will once again have an opportunity to participate in a webinar (at no cost) put on by Michael Rogosa, a senior analyst at RetailNet Group.

Mr. Rogosa previously held a webinar on March 22nd for CHHMA and COPA members that presented some interesting demographic information and consumer trends impacting retail sales in Canada.

This time, the webinar topic will be: How Digital is Changing Stores in Canada.

Canada’s low scale and adoption of ecommerce has been well documented, but many have made the mistake of overlooking the broader impact digital tools and capabilities are having on the retail environment. While Canada has not seen the same movement in products leaving stores as many other developed nations, the shopper’s path to purchase and value chain have changed dramatically.

This session we will look at the impact of digital tools on the path to purchase and show examples of retailer investment in digital integration in the store.

The webinar will start at 2:00 p.m. EDT and last approx. 30 minutes.

To register for the webinar, click here

Applications for CHHMA Scholarship Program Due by July 15th

The CHHMA is once again pleased to be able to offer the opportunity for children of employees of our member companies to apply for a scholarship to help offset the cost of post-secondary education. The Association recognizes the importance of education and therefore encourages children of our member companies to attend University or College. Successful candidates receive $1,000 CDN per year for the first two years of study leading to a diploma or degree from an accredited community college or university.

The scholarship program is available to the dependents of any current full-time employees of the CHHMA or member companies. The program is only offered to Canadian companies or divisions of companies based in Canada which are members of the CHHMA. The member company must remain a member in good standing in order for the student to qualify for the second year of the scholarship.The student's parent or guardian must be an active full-time employee with at least one year seniority with the CHHMA or member company as of July 15th in the year of application. Applicants must be preparing to enter an accredited community college or university in the fall term, and attain a minimum average of 75% in the last year of high school (or CEGEP).The decision of the Selection Committee and the CHHMA is final and not open to appeals.The CHHMA reserves the right to withdraw a scholarship should the student's parent(s) or guardian(s) voluntarily leave the employment of the CHHMA or member company, or if employment is terminated for just cause prior to the start of the school year, or if the company terminates its membership in the Association.

Complete details, application forms and information sheets (for bulletin board postings) in English and French can be found at Please print off and post these notices in your lunch room or high traffic area.

The CHHMA must receive applications from potential candidates no later than July 15th.

Since 2001, the CHHMA has awarded $160,000 towards scholarships and some 80 young people have benefited from the scholarship program.

Industry News

Sears Canada to Cut More Costs, Price Match as Posts Larger First Quarter Loss

Sears Canada Inc. reported a bigger quarterly loss on Wednesday, and said it would cut more costs this year, as the company struggles with declining sales.

Same-store sales at its “core” locations (95 department stores and 39 home stores) fell 6.9% and overall same-store sales were down 7.4%.  The net loss in the quarter increased to $63.6-million, or 62 cents per share, from $59.1-million, or 58 cents, a year earlier.  Revenue fell 14.5% to $595.9-million.

The company raised its 2016 cost reduction target to $127-$155-million from the $100-million-$127-million it forecast in March.  Sears Canada said it cut about $80-million in costs in the first quarter ended April 30 and said savings would be reinvested in growth initiatives.

Sears Canada also said it has implemented a strategy to match rivals’ lowest appliance and mattress prices – changing prices in its stores daily – in a reflection of the significant impact of Internet comparative shopping on traditional retailers.  Read More >>

Dollarama Beats Profit Expectations as Sales and Margins Rise

Canadian dollar-store operator Dollarama Inc. reported a bigger-than-expected rise in first-quarter profit on Wednesday, helped by higher sales and margins, and slightly raised its margin forecast for the year.

The company raised its earnings before interest, taxes, depreciation and amortization (EBITDA) margin forecast for fiscal 2017 to 21.0-22.5% from 20.5-22.0%.

The Montreal-based company’s profit rose 28.4% to $83.2 million ($65.7 million), or 68 Canadian cents per share. That beat analysts’ average estimate of 63 Canadian cents, according to Thomson Reuters.  Dollarama’s sales rose 13% to $641 million.  Same-store sales growth, however, slowed to 6.6% from 6.9%.  Read More >>

Keurig Discontinues Cold-Beverage Maker After Less than a Year

Keurig Green Mountain Inc., the single-serve coffee company acquired by JAB Holding this year, will discontinue its cold-beverage machine less than a year after a rollout hampered by delays and tepid demand.

The company plans to phase out the product — known as the Keurig Kold — and offer customers a full refund if they’ve already bought one, according to a statement on Tuesday. The move handed a victory to soda-machine maker SodaStream International Inc., which saw its shares jump almost 3% on the news.

The Keurig Kold, released last year, was the company’s big bet that it could duplicate the success it had with single-serve coffee machines.  The idea was to let customers make their own soda at home, providing an alternative to SodaStream machines. Coca-Cola Co. threw itself behind the effort, agreeing to buy a stake in the company. Coca-Cola Chief Executive Officer Muhtar Kent said last year that the Keurig Kold might be a bigger hit than the company’s original coffee machine.  However, there were questions about its affordability for the average consumer.   Read More >>

HBC Sees $15 billion in Sales this Year, Nearly Quadruple its Revenue in 2013

The Hudson’s Bay Company expects sales of $15 billion from its global retail banners this year as the department store chain opens new stores and makes inroads into the European market with new stores in Germany, Belgium and the Netherlands.

That is almost quadruple the company’s annual revenue when it went public in 2013, when sales were about $4 billion, chief executive Jerry Storch told the company’s annual general meeting of shareholders last week, but the acquisitions of banners such as luxury chain Saks Fifth avenue have allowed the company to beneficially leverage its scale.  Read More >>

Wal-Mart Tests Grocery Delivery with Uber; Use of Drones in Distribution Centre

Wal-Mart Stores Inc. will begin testing the delivery of groceries using Uber and Lyft drivers, aiming to match the convenience of services offered by Inc. and other e-commerce companies.

The retailer will start trying out Uber in Phoenix and Lyft in Denver within the next two weeks, Wal-Mart’s chief operating officer of e-commerce, Michael Bender, said in a statement. The company previously began a pilot program in March using Deliv to deliver Sam’s Club groceries and other merchandise in Miami.

Meanwhile, inside a 1.2 million-square-foot Wal-Mart distribution centre near its headquarters, a buzzing sound — like a swarm of bees — comes from an aisle of shelves laden with merchandise from diapers to microwaves.  Flying up and down the seemingly endless aisle is a drone with a custom-built camera that takes 30 pictures a second.  The aircraft is capturing images of every item to make sure it’s placed in the appropriate spot on the shelves so employees can quickly find it when it’s needed by a store.  Wal-Mart demonstrated the technology to reporters at a media event before last Friday’s shareholders meeting.  Read More >>

Economic News

Pace of Housing Starts Slows in May

The Canada Mortgage and Housing Corporation reported on Wednesday that the pace of housing starts slowed last month compared with April. The seasonally adjusted annual rate (SAAR) for May came in at 188,570 units for the month, down 1.5% from 191,388 in April.  The six-month moving average of the seasonally adjusted annual rate was 191,000 in May compared with 194,950 in April.

“Housing starts slowed in May, and are now on pace to reach 191,000 units in Canada — falling within the upper range of our housing market outlook forecast for the year,” said Bob Dugan, CMHC chief economist. “The decline we see in the trend is led by fewer multiple starts in urban areas, particularly in larger centres like Toronto.”  Read More >>   

Value of Building Permits Drops on Weakness in Ontario

The value of Canadian building permits issued in April fell for the second month in a row, slipping by 0.3% from March to $6.9 billion on lower construction intentions in Ontario, Statistics Canada said on Wednesday.  Analysts polled by Reuters had predicted a 1.5% increase after March's 6.3% decline. April marked the first time since February 2015 that the value of permits had dropped for two consecutive months.  Read More >>     

More Sources Call on Canadian Government to Cool Surging Home Prices

Canadian bankers are calling on the government to take further steps to cool surging housing markets in Toronto and Vancouver.

The heads of National Bank of Canada and Bank of Nova Scotia said last week that mortgage down-payment requirements should be boosted to tame the market, joining the Organisation for Economic Cooperation and Development (OECD), which also commented last week that measures should be taken to reduce the risk to financial system from household debt and rising prices.

Vancouver Mayor Gregor Robertson over the weekend also called on the federal and provincial governments to intervene with measures to cool off the region’s scorching real estate market.  Read More >> 

Latest U.S. Economic News

The U.S. economy created the fewest number of jobs in more than five years in May as employment in the manufacturing and construction sectors fell sharply, suggesting a deterioration in the labour market that could make it harder for the Federal Reserve to raise interest rates.

The Federal Reserve said last Wednesday that the U.S. economy grew at a modest pace in much of the country from April to mid-May, leading to tightening labour markets and higher wages.  The Fed’s latest survey of business conditions found that half of its 12 regions described growth as modest, while Dallas said economic activity had increased “marginally.” Two districts – Chicago and Kansas City – said growth had slowed from the past report. New York described activity as “generally flat.”  Read More >>  


 Upcoming CHHMA Events 

Digital Marketing Webinar – Sofie Andreou Presenter  
Tuesday, June 14, 2016, 1:30 p.m. – 2:15 p.m. 

How Digital is Changing Stores in Canada Webinar - Michael Rogosa Presenter
Monday, June 20, 2016, 2:00 p.m. – 2:30 p.m.  

CHHMA Industry Calendar

To register for all events visit our website at 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:, or call at (416) 282-0022, ext. 34. CHHMA is located at 1335 Morningside Ave., Suite 101, Scarborough, ON, M1B 5M4

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