Retailers face setbacks amid further shutdowns

NATIONAL REPORT — Governments at every level are looking at the next two weeks as critical in Canada for suppressing the spread of the COVID-19 virus and to “flattening the curve” of ill patients. That has resulted in more curtailments and shutdowns of business activities. The effects of those shutdowns are being felt by hardware and building supply dealers.

In Quebec, the closing of some construction sites a week ago included a stop to some infrastructure projects. And while hardware and building supply dealers could remain open, they, along with other retailers that remain open in the province, must close their doors on Sundays.

Quebec Premier François Legault has announced the extension of the province’s shutdown until May 4, extending it beyond the original date of April 13.

This past Friday, the Ford government in Ontario took hardware stores off the list of essential services for the next 14 days, commencing yesterday. Stores must close their doors to customers, while online sales can continue, including curbside pickup.

Large retailers in this sector lined up to comply as independents must  adjust to meet the new requirements.

Home Depot Canada has closed the doors of its Ontario stores. They will remain open, however, for curbside pickup and continue to offer delivery. Its stores in Quebec were complying with the Sunday closing rule.

A note to Hardlines from Lowe’s Canada confirmed that, “starting April 5, and effective for 14 days, our Ontario stores will remain open, but only for curbside pickup” through the company’s Lowe’s and RONA website. It will continue to offer free parcel delivery in many cases and contact-free home delivery.

Canadian Tire, which has 203 stores in Ontario, has likewise announced its compliance. However, its gas stations and auto service centres can remain open. To facilitate online orders, Canadian Tire has also introduced curbside pickup. Online shoppers reported site crashes as they flooded Canadian Tire’s e-retail channel Sunday night.

Construction activity being curtailed
The squeeze on construction activity in both Quebec and Ontario will also have an impact on dealers. In Ontario, construction related to “critical infrastructure,”, including transit, transportation and energy, as well as projects focused on health services or facilities to product protective personal equipment, can all continue. Residential construction projects that were begun before April 4 can also continue.

Meanwhile, governments across the country are developing programs to provide assistance to small businesses and retailers to help them through the current crisis. These include the deferral of provincial sales tax remittances.

At the municipal level, cities including Toronto, Ottawa, Saskatoon, Edmonton and now Winnipeg are introducing measures to waive penalties for unpaid property and business taxes for property owners and business owners.

Hardlines’ update from British Columbia
We had the opportunity to join in on a “industry town hall” meeting of the Building Supply Industry Association of British Columbia. Our thanks to President Thomas Foreman for letting us share some perspective on how the industry is responding nationally to this crisis. Foreman expects that the Ontario guidelines may be imposed on B.C. dealers in the coming days.

 

 

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