Entrepreneurial pursuits

One of the biggest retail groups in the Canadian market for hardware and home improvement is Home Hardware, a cooperative organisation. Although its roots go back to 1934, when a St. Jacobs-based hardware wholesaler named Hollinger began selling various lines to other independent dealers, Home Hardware Stores Limited was actually founded on 1 January in 1964 – on the initiative of Walter Hachborn – by a group of 122 independent hardware retailers. The company now has a network of more than 1 080 stores across Canada. Alongside the original Home Hardware brand the group now has three more sister sales formats: Home Building Centre, Home Hardware Building Centre und Home Furniture. Home Hardware is 100 per cent dealer-owned, “which allows Home Hardware dealers to retain their independence and entrepreneurial pursuits while benefiting from the strength afforded us by our numbers and our powerful national brand,” says Paul Straus, CEO and President. “The unique business model creates a culture of ownership, one which allows each dealer to reap the benefits not only of his or her individual success, but the collective success of Home Hardware Stores Limited.” Home Hardware dealers benefit from an industry-leading warehousing and logistics system, a national advertising and marketing programme, more than 10 000 exclusive private-label products, and numerous programmes to help them merchandise and improve their stores and finance growth. They also own their own paint manufacturing plant, insurance company and hardware packaging business. “The business model and share structure have allowed Home Hardware to provide merchandise at lower costs than the competition, while continuing to grow our company and ensure that we remain a competitive force and a smart investment for dealers,” argues Paul Straus. “Although Canada has fared well compared to other world economies, we are not immune to the effects of the economic crisis in Europe,” he continues. “We operate in a very challenging economic environment. It is a connected world and the Canadian economic recovery hinges on the performance of the global economy.” With almost 50 years of history, Home Hardware has gone through several economic downturns and has always emerged stronger, with a sharpened focus on what dealers need to best serve their customers and grow their businesses, maintains Straus. He gives an example from the current downturn: Home’s diversified product base and multi-sector offerings, which…