HOME HARDWARE CEO SEEKS STRONGER RELATIONS, BUT WITH FEWER VENDORS

Fully settled in his position as president and CEO at Home Hardware, Kevin Macnab has implemented a series of changes at the company, impacting all corners of its business.

Home Hardware’s president and CEO, Kevin Macnab, has been in place for just over a year, and his reorganization of the company has affected every corner of the business. Those changes have included a wholesale overhaul of the company’s buying teams, with new faces on board, and existing buyers taking on new portfolios. But behind the scenes, changes are unfolding that will impact Home Hardware’s vendor base.

For example, tougher guidelines are being put in place for vendors to bring the company more in line with standards imposed by other home improvement retailers and to make it more competitive.

Home is looking to rationalize overlapping or duplicate SKUs, especially among suppliers who do less than $50,000 a year with the company or are listed in fewer than 50 stores. This, Macnab admits, may mean fewer vendors and fewer products for Home Hardware over time.

There’s been much talk around head office about changing Home Hardware’s focus from that of a wholesaler to one of a retailer. That refers to being more attentive to the perceptions of the end consumer, “whether it’s a pro, DIY or furniture shopper,” to see the company “from a consumer lens,” Macnab says. “It’s a different focus.”

It doesn’t mean ignoring the reality of Home Hardware’s role as a wholesaler, but with a look at the end user. So yes, meetings with suppliers have challenged them to review assortments, marketing programs and data, using it in different ways.

“It’s about building a business with our supplier partners,” Macnab explains. “That means adding programs rather than just products, while relying on vendors in a way that goes beyond just dollars. Which vendors want to lean in with us?”

Macnab expects the process to result in a reduction of vendors, and more reliance on the ones who remain. “We’re about growth—and vendors will have more clearly defined expectations of their roles.” These will include those fines for incomplete orders. He says the goal is to strengthen relationships with vendors, but part of that is expecting vendors to live by their commitments.