BMR Group has made changes to the structure of its executive team in a move to advance its strategic planning, drive transformation, and support growth.

Antonio Di Pasquale, currently chief operating officer, has been promoted to the position of chief executive officer, operations, of BMR Group. In his new role, he will be responsible for managing BMR’s day-to-day operations while driving continued transformation and ensuring the execution of the strategic plan.

Charles Grégoire-Béliveau, vice-president of merchandising, has been promoted to senior vice-president of commercial strategy and partner relations. He’s already in charge of merchandising, purchasing, store renovations and construction, imports, and private label. In his new role, he takes on expanded responsibilities, including marketing, events, communications, and digital.

In an exclusive interview with Hardlines, Grégoire-Béliveau explains what the new alignment means for both the company and the dealers it serves.

“We are actually doing a full transformation for BMR, so there are a lot of initiatives we are doing right now to support the dealers,” he says. Grégoire-Béliveau sees the consolidation going on in the industry and the need to support dealers as they seek to grow their businesses.

He says this will include providing more reports and data to dealers to better support their day-to-day operations. “We’re going to be launching in the next few weeks a new portal for dealers that will give them access to data from their own stores, like inventory analysis, sales per category, GMROI—a lot of info that they don’t have right now.”

This, along with other services, he adds, will be free for the dealers.

While BMR’s CEO Alexandre Lefebvre remains in charge of the entire company, the expanded duties for Di Pasquale and Grégoire-Béliveau will free up Lefebvre to focus on strategic development projects and initiatives to optimize the company, including acquisition opportunities.

(We’ll have more details from our conversation with Charles Grégoire-Béliveau in next week’s edition, including BMR’s plans for continued growth and acquisitions, dealer support, and expansion west of Quebec. Stay tuned!)

The coolest part of Canadian Tire Corp.’s new plan may well be its name: “True North.” But there’s a lot more to it than that.

CTC recently unveiled its latest strategy, priorities, and competitive thrust for the next four years. True North replaces the Better Connected plan that was initiated in 2022. That plan improved CTC’s customer service across all platforms and banners, thanks to a cohesive digital strategy.

True North is something of a marketing coup, reflecting the angst Canadians are feeling in the face of tariffs from the U.S.

According to a release from Canadian Tire, True North is a $2 billion initiative over the next four years, starting in 2025, to adapt to a changing marketplace. It embraces “dozens of strategic initiatives designed to accelerate retail growth and deliver improved financial performance. This includes investments in omnichannel network expansion and new data analytics that will be a catalyst for growing market share and expanding CTC’s total addressable market.”

Some of the highlights of the strategy include:

Shift to an operating company. CTC will reorganize under “True North.” It will convert from a holding company of individual businesses to a single operating company. This new model will remove siloes to reduce redundancies and consolidate back-office systems, enable more unified implementation of tech and AI, analytics, and reduce staff across banners. For example, the company has recently converted all its major banner websites onto a single digital platform.

Acceleration of Triangle Rewards. CTC’s loyalty program is going to be improved by technology and AI. The aim is to provide a more personalized experience for Triangle members. This will mean adding other “brand partners” outside of CTC stores that could use Triangle Rewards. That includes a newly-announced deal with Royal Bank of Canada that partners RBC’s Avion Rewards and Triangle Rewards. This collaboration will link eligible RBC credit and debit card holders to Triangle Rewards.

Changes at store level. The company is making changes with its banners as well, including SportChek, with new-concept stores—and the closing of 17 uncompetitive standalone Atmosphere stores. Fourteen Atmosphere sites will be relocated within existing SportChek stores.

Recently, CTC sold its Helly Hansen activewear brand to North Carolina-based Kontoor Brands Inc. The deal, valued at nearly $1.3 billion, will free up capital for debt reduction and share buybacks.

The company expects to invest up to $575 million this year on the continued modernization of Canadian Tire stores. It also plans increased investments in Mark’s, to capitalize on emerging market-share opportunities in the casual apparel sector.

Changes in leadership team. Strengthened leadership aims to focus on “customers, retail execution, and value creation.” TJ Flood is now EVP and COO, leading CTC’s newly-centralized banners: Canadian Tire, Mark’s, and SportChek. A 20-year company veteran, Flood was most recently EVP and president, Canadian Tire Retail. Susan O’Brien has been appointed EVP and chief transformation officer. A 17-year company veteran, she was most recently EVP and chief brand and customer officer. Darren Myers, CTC’s new EVP and CFO, joins April 1. Matt Moore will join as EVP and chief commercial officer, effective April 21.

After getting the green light from the Ontario Superior Court of Justice, Hudson’s Bay Co. began last Monday a liquidation process that will aim to preserve just six of its 80 locations.

“This is the art of the possible, and we are where we are today,” Judge Peter Osborne said in his March 21 decision. “In my view, there is no alternative.”

The six stores the company seeks to keep open are the flagship at Yonge and Queen Streets and the location at Yorkdale Shopping Centre in Toronto; plus Hillcrest Mall in Richmond Hill, Ont.; Ste. Catherine Street West in Montreal; Carrefour Laval in Laval, Que.; and Fairview Pointe-Claire in Pointe-Claire, Que.

Since the objective is to extract as much cash as possible in order to pay creditors, customers shouldn’t expect steep discounts yet. At press time, HBC stores were offering only 15 percent discounts. But the situation could evolve as the June 15 deadline for completion approaches.

Department store closures are nothing new, but no department store has had the patriotic cachet of the Bay. Chartered as a fur trading firm by King Charles II in 1670, HBC functioned as the de facto government of the vast area known as Rupert’s Land until it surrendered control to the new federal government in 1869.

Since the company filed for creditor protection, its iconic point blankets can be found on eBay with asking prices of up to $3,000.

Stores under HBC’s flagship Bay banner have shown signs of neglect for months, from non-functioning escalators to empty shelves. In 2022, the chain had shuttered its location on the edge of Toronto’s tiny Yorkville district, which served as its flagship in the city prior to HBC’s acquisition of the former Simpsons store on Queen Street in 1991.

HBC has also floated plans to downsize its downtown Montreal flagship by converting some of its floors to office space. Those plans have been stalled by the sluggish post-pandemic return to in-person working.

Retail expert David Ian Gray told CBC Radio’s Ontario Today program that the growth of e-retail and the advent of “category killers” like Best Buy have made the large-surface suburban general retail format less relevant. “Call it death by a thousand cuts, but it was always a matter of when, not if.”

While its comp sales were up only 0.8 percent in its fourth quarter, Home Depot’s online sales were up about 9.0 percent, representing a healthy increase year over year. To get there, the giant retailer focused on a number of efforts to improve online shopping. The efforts have included leveraging AI to enhance online chat features and product descriptions, and to create rating summaries for customers.

The company has focused on continual improvements to its interconnected retail experience, said Billy Bastek, Home Depot’s EVP of merchandising, on a fourth-quarter call to analysts. He added that “significant progress” has been made in expediting deliveries.

“We have invested in a broader assortment across our 19 flatbed distribution centres, established partnerships with third-party last mile providers, and made technology improvements across our 2,000-plus stores to better utilize all of our assets for the benefit of our customers. Today, we have the fastest delivery speeds across the greatest number of products in company history.”

That means developing a range of fulfilment options for customers, including same-day and next-day delivery. The result, says the company, has been higher ticket sales to those online customers.

That includes the expansion of Home Depot’s suite of generative AI tools, called Magic Apron, that helps customers find information on how to undertake their own home improvement projects. Available on The Home Depot app, it features millions of product pages online at homedepot.com.

The technology is powered by a proprietary home improvement knowledge base, combining large-scale datasets with Home Depot’s own expertise and product information. Today, Magic Apron is already powering several experiences on desktop and mobile, including answering customers’ questions and summarizing product reviews.

 “We know that driving a superior customer experience, including speed of delivery, drives greater customer satisfaction, higher engagement, higher conversion, and ultimately more sales,” Bastek added.

PEOPLE ON THE MOVE

TIMBER MART has announced the appointment of Joel Kakoske as regional director of member services for the Prairies, effective immediately. Kakoske began his career in the building materials industry in 2011 as a business development manager, then advanced to sales management and marketing before taking on this new role. Based out of the group’s Winnipeg DC, he will report directly to Phil Temple, TIMBER MART’s director of member services.

Tando Composites has named Joseph Picarella as regional sales manager – Canada. Picarella has more than 20 years of experience in sales and market development. Before joining Tando, he served as national sales director at Fiberwood and was a regional sales manager for Westlake Royal Building Products.

DID YOU KNOW

… that the latest instalment of our podcast series What’s In Store has gone live? In this episode, we talk to Barry Eidt, a former Ace dealer who is co-owner of Eidt’s BMR Express in Arthur, Ont. The winner of the 2023 Outstanding Retailer Award in the Young Retailer category co-owns two other stores with his parents, who founded their first store in Mitchell, Ont., when he was just 13. Sign up now to get updates about the latest free podcasts in your inbox!

RETAILER NEWS

The RONA Forget store in Mont-Tremblant, Que., has been acquired by RONA dealer Carlos Munoz. The affiliated dealer already owns three stores under the banner on Montreal’s South Shore. The Forget family will stay involved to ensure a smooth transition for the 120-year-old business. Some family members will retain their positions at the store for the long term as it continues to operate under the same name.

Canadian Tire Corp. and Royal Bank of Canada have announced a long-term strategic loyalty partnership between RBC’s Avion Rewards and Canadian Tire’s Triangle Rewards. This collaboration will link millions of eligible RBC credit and debit cardholders to Triangle Rewards at Canadian Tire, SportChek, Mark’s and other CTC retail banners. Users will also receive exclusive offers and promotions through RBC and Avion. These new offerings are expected to launch in 2026.

BeautiTone, the proprietary paint brand of Home Hardware Stores Ltd., has announced its 2025 Exterior Colour of the Year: “Briarwood.” This colour is designed to enhance the beauty of wooden surfaces, bringing out their natural character while setting the stage for a warm and inviting space—perfect for both relaxation and entertaining, the company stated in a release.

ECONOMIC INDICATORS

Retail sales decreased 0.6 percent to $69.4 billion in January. Sales were down in three of nine subsectors and were led by decreases at motor vehicle and parts dealers. Sales in LBM and garden categories were 1.5 percent below the previous month and down 0.5 percent from January 2024. Core retail sales—which exclude fuel and automotive categories—were down 0.2 percent in January. (StatCan)

Canadian shoppers are seeking out domestic products amid the early days of a trade war with the U.S. Will this momentum lead to a long-term change in consumer behaviour? It depends, says retail expert David Ian Gray. He told CBC Radio’s Sunday Magazine that with “values-based” choices like shopping local or choosing eco-friendly products, “the behaviour often falls short” of the intention, “and that’s usually because of the trade-off. If doing the virtuous thing costs too much, or the quality isn’t as good, those things become inhibitors.”

The burgeoning trade war with the U.S. is bad news enough. But the full impact of the tariffs remains to be seen. Meanwhile, the Canadian retail industry has been in a post-Covid funk for a few years. Uncertainty abounds, exacerbated by the demise of Peavey Mart, cutbacks at major retailers, and the potential end of one of Canada’s most iconic retailers: Hudson’s Bay Company.

The slowdown of the retail industry and the impact of tariffs is causing people to be concerned about their jobs and their futures.

Hardlines has services to help, whether you’re hiring or looking for work. Our free Resumé Posting Service is available to anyone. If you’re already looking for a new job or expect your situation to change, we invite you to use this free service. Simply post your resumé by clicking here. If you have a colleague who is currently out of work, please let them know that we will give them a free subscription to Hardlines Weekly Report for the duration of their job search.

If you are looking to hire, Hardlines has tools to help. Whether you are a dealer, at a retail head office, or a vendor, Hardlines Classifieds provide an affordable and targeted way to reach an audience of professionals and experts in the retail home improvement sector.

As a Hardlines Premium Member (you are if you paid to receive this newsletter), you are entitled to one free Hardlines Classified ad each year, plus an additional discount on all your ads. Click here for more info.

Don’t hesitate to tell your friends and colleagues about these services. Here at Hardlines, we are committed to the success of this industry, so let us help!

(If you have any questions about these services, contact Jill MacLeod at the Hardlines World Headquarters—based proudly in Canada!)

National pride was one of the key themes of this year’s National Hardware Show, held at the Las Vegas Convention Center last week. And Hardlines was there! The event brought together home improvement retailers, wholesalers, and distributors from around the world.

This year saw many companies making extra strides to showcase their regional place in the supply chain as the hardware sector grapples with the effects of tariffs imposed by U.S. President Donald Trump.

Many booths had signs indicating that their company was not affected by tariffs at this time or that they offered alternative product sourcing and distribution to mitigate the impact. That included a large number of Asian firms exhibiting.

For the small Canadian contingent present at the show, it was an opportunity to network and build new business partnerships.

Fernando DeFazio, director of creative services at Vaughan, Ont.-based Multy, an eco-friendly outdoor furniture retailer, noted that day one of the event was particularly busy.
“There was a very consistent pace, and we made a lot of new contacts,” he said.

For the team at Salmon Arm, B.C.-based Rubber King, a residential rubber fitness matt manufacturer, the show was an opportunity to reconnect after a five-year absence.

“This is our first year back since Covid,” said company CEO Mark Bunz. He added the show offered “great conversations” and “great contacts.”

Making their first appearance this year was Markham, Ont.-based Canada Fire Blanket, a company that manufactures and sells residential emergency fire blankets. Vice-President of business development Jamie Krebs says the show offered the right pace to meet with potential clients.

(Check out our video highlights from the National Hardware Show by clicking here!)

The Canadian retail landscape continues to change with the financial difficulties faced by the Hudson Bay Company. Store closures are pending as the retailer seeks to liquidate its assets after filing for creditor protection.

The company, which was founded in the 1600s as a fur trading outpost during Canada’s British colonial era, owes more than US$1 billion to vendors and is reported to only have $3 million in cash reserves. HBC also has hefty real estate investments. Many of them are held in a joint venture with RioCan Real Estate Investment Trust, which owns prime retail locations across Canada.

HBC currently operates 96 stores across Canada, including locations that sport the Saks Fifth Avenue and Saks OFF 5TH brands. As of press time, the Ontario Superior Court of Justice’s hearings had adjourned without a final decision on the historic retailer’s fate. Counsel for HBC was seeking to initiate liquidation sales, arguing that it was the only way forward without new financing. But at press time Friday an Ontario Superior Court judge had not yet ruled on the plan.

HBC has already returned a significant portion of its upscale merchandise back to vendors and has put a hold on its HBC points program. There are reportedly more than $58 million in points in the hands of customers that could be redeemed. The company also announced it would honour gift cards only until April 6.

RioCan said in a statement that HBC’s recent CCAA filing to seek bankruptcy protection was disappointing, although it recognized that restructuring can be a necessary step for companies to stabilize their operations and financial position.

To protect the interests of its unitholders and other stakeholders, RioCan announced it will pursue all available business and legal avenues to achieve the best possible outcome for each of the properties within the joint venture.

“The HBC locations in the JV include prime real estate within Canada’s major markets that have value either as operating retail centres or redevelopment opportunities. Our team has a proven track record of finding solutions for vacant space and will work to protect the value of the real estate in the JV,” said Jonathan Gitlin, president and CEO of RioCan, adding that he expects the process to take time and the “collaboration among all stakeholders,” suggesting the group will lean hard on landlords for concessions.

The evolution of e-commerce and how it’s used effectively by retailers was a major theme at the recent DX3 Canada Conference, held March 3 and 4 in Toronto. In one presentation, Cynthia Wong, vice-president of digital technology at Canadian Tire Corp. (shown centre), along with fellow panellists, discussed topics that included the customer journey and integrated customer and user experience across channels.

Wong shared what she called jokingly Canadian Tire’s “very sordid history with-ecommerce.”

The company originally launched e-commerce more as a catalogue to help customers pre-shop stores, “which we still know is a pattern. We actually abandoned that strategy in 2009. There were multiple challenges with the site,” she said.

When the company consolidated seven of its major retail banners, including Party City, Sport Check, and Marks, onto the same tech stack, the strategy was to make sure there was a consistent customer experience, without having to invest seven times, “as well as making sure that we can scale and compete against ‘hyperscalers’ and large e-commerce companies like Amazon,” she said.

Wong said she is seeing the industry continuing the leveraging of information on products at a store. “That was part of our strategy a long time ago—pick your store, shop the aisles, figure out your inventory—which is something we’ve seen expand across our competitors as well. We’re starting to see a lot of benefits in terms of the adoption of things like buy online and pick up in-store.”

Omnichannel experiences have driven much of the company’s investment. A significant portion of Canadian Tire’s revenue comes through the company’s mobile app, Wong said. “And as with most apps, we have a higher level of authentication, which means we can ultimately engage better with those customers.”

The app has an in-store mode that can guide customers to the correct aisle, “but with most of our stores today, there’s actually something in the app where you can say ‘find product’ and you navigate to the aisle, and the electronic shelf label that we also have invested in will start to blink, which is incredibly helpful.”

In testing during Black Friday and Cyber Monday, Wong noted that a team member placed an online order that was delivered in 40 minutes. It’s “something that our competitors like Amazon cannot do, but it goes back to our local presence—1,600 physical retail locations across the country.”

PEOPLE ON THE MOVE

At TIMBER MART, Doug Smith has been named the new regional director of member services for British Columbia. Smith will be responsible for managing relationships with TIMBER MART members in that province and will act as a liaison between the national buying group and its regional membership. His previous experience includes working at Peavey Industries as an account manager for the Ace Canada banner. Most recently he was an account manager at Norske Tools Ltd. in Vancouver. Based out of TIMBER MART’s distribution centre in Langley, B.C., Smith reports directly to Phil Temple, director of Member Services.

DID YOU KNOW

… that the latest edition of Hardlines HR Advisor is now out? In this issue, we look at how Hardlines can help during uncertain economic times with our free resumé posting service. Also in this issue: making job postings compliant with human rights legislation and leveraging employees’ strengths. HR Advisor is monthly and it’s free: click here to sign up today!

RETAILER NEWS

To help customers find Canadian-made goods faster, Kent Building Supplies recently added a “Made in Canada” icon to its digital price labels. The store follows suit with other retailers such as Loblaw, which has placed similar labels on its shelves to mark Canadian products.

A store in the Kelligrews neighbourhood of Conception Bay South, N.L., has switched to the Home Hardware banner. Christine Hand (who is also chair of the board of Home Hardware Stores Ltd.) and Thomas Hand, owners of Handyman Home Hardware in Conception Bay South, have acquired the nearby building materials location. It will now operate as Kelligrews Home Hardware Building Centre.

Watson Building Supplies, a distributor of construction materials, and Blair Building Materials, a diversified material supplier, have announced the opening of a location in Owen Sound, Ont. The new outlet will feature a wide assortment of products including drywall, insulation, roofing, ceiling systems, and related accessories. This location has a 40,000-square-foot drive-through warehouse, contractor shop, large showroom, and a two-acre yard to support exterior products.

Canac is the latest retailer to join the “Well Made Here” program in order to identify domestic products. It’s a familiar step for the chain, which already participates in the Les produits du Québec certification scheme. “We were looking to help customers make informed choices about the origin of their purchases while maintaining a high standard of credibility in product selection,” Canac GM Martin Gamache said in a release. “The accreditation promoted by Well Made Here perfectly met this ambition.”

IKEA Canada hosted a ground breaking ceremony last week at the location of its future Customer Distribution Centre (CDC) and Collection point in Hamilton, Ont. The new facility will be part of a $400 million-plus investment by IKEA to reinforce its supply chain. The CDC will be 483,285 square feet in size. The addition of the Collection point will let customers pick up online orders from that location. IKEA claims that, once certified, it will be among the five largest zero-carbon industrial buildings in Ontario.

SUPPLIER NEWS

Lumber industry observers say that Canadian softwood still has an advantage over American product despite the imposition of U.S. tariffs, the Globe and Mail reports. That advantage is its superior quality: Canadian spruce, pine, and fir two-by-fours is lighter in weight and more durable than American pine. “Southern yellow pine has wider growth rings. Therefore, it twists more and it warps and splits more easily,” Josh Sawatzky, owner of Madera Forest Products in Acheson, Alta., told the Globe.

Kilz primer products have been added to Home Depot’s lineup of “exclusive” products in the U.S. and Puerta Rico. This includes Kilz Original, Kilz PVA, Kilz 2, Kilz 3 Premium, Kilz Restoration, and Kilz Mold & Mildew. Home Depot is also the preferred big box retailer of Behr Paints, and both brands are part of Masco Corp.

Sales month-over-month of existing Canadian homes dropped by 9.8 percent in February. That was the lowest level for home sales since November 2023, and the largest month-over-month decline in activity since May 2022. Actual (not seasonally adjusted) monthly activity came in 10.4 percent below February 2024. (Canadian Real Estate Assoc.)

Investment in building construction rose by 1.8 percent to $22.1 billion in January. The residential sector increased 2.3 percent to $15.4 billion. Single-family home investment declined $155.5 million to $7.2 billion, with declines recorded in eight provinces and one territory. (StatCan)

The six-month trend in housing starts increased 1.1 percent in February to 239,382 units. The trend measure is a six-month moving average of the seasonally adjusted annual rate (SAAR) of total housing starts. The total monthly SAAR of housing starts decreased 4.0 percent to 229,030 units, compared to 239,322 unit in January. Urban starts were down 17 percent year over year. (CMHC)

Amidst the latest round of tariffs announced last week by the U.S. government, many Canadian economic and legal experts are sounding the alarm that it’s time for Canada to take broader steps to mitigate long-term economic damage.

“President Trump and America have introduced a wave of tariffs intended to destabilize the Canadian economy, while other sectors—auto, agriculture, and energy come to mind—will likely be more affected than building and construction,” says Marshall Leslie, in a statement on LinkedIn. (It’s a very thoughtful piece. We encourage you to read this! —Editor).

Leslie is the owner and principal of M. Leslie Inc., a consulting firm in Toronto. Leslie’s clients include some of North America’s largest manufacturers of building products, Canadian and American trade associations, independent power generators, First Nations, and standards development organizations.

After several waves of tariffs, Leslie recommends that businesses consult with a lawyer and customs broker and review all contracts and sales agreements regarding who’s responsible for duty liabilities and transfer prices.

He adds that businesses should also be doing their research as to which goods they can source within Canada, noting that companies such as Home Hardware “have already taken the initiative of identifying domestic producers.” The Well Made Here/Bien fait ici program is an example of a source of hardware and building materials that are made in Canada. That initiative is supported by several of our industry’s leading retail banners and buying groups—including RONA, Castle, Patrick Morin, Home Hardware, and Sexton Group.

Leslie recommends consulting the registry of product assessments created by the Canadian Construction Materials Centre (CCMC) at the National Research Council of Canada (NRCC) for more information on what’s approved for use in Canada.

Canada will have to look from within to find support as the trade war grows. “Canada is on its own. There is no ‘Canada lobby’ in America,” Leslie writes. “There are American constituencies with similar interests, but none of them hold sway with President Trump. The Republican Party has no spine. And the European Union, Mexico, South Korea, and Japan perceive that their turn is approaching.”

Leslie believes that tariffs are an opportunity to showcase the power Canada has over American products. He believes President Trump when he says he wants to annex Canada and that Canadians need to give our leaders support and come together as a nation to confront America.

The Atlantic Building Supply Dealers Association held its 2025 Expo earlier this month. The event, which marked the association’s 70th anniversary, kicked off with a meet-and-greet at the Halifax Convention Centre on March 4. The following evening, members and sponsors participated in a gala dinner that honoured the industry’s best and showcased some top entertainment from the Maritimes.

ABSDA President Denis Melanson noted that more than 760 people were in attendance. “We ran out of dealer badges today, which never, never happens,” he said enthusiastically.

The gala kicked off with a series of tongue-in-cheek awards presented to various products, including “Most Used for Everything” (duct tape, inevitably) and “Most Likely to Be Left Behind” (the 10-mm socket).

Melanson saluted the perseverance of the association’s members. “Entrepreneurship is not an easy thing. We’ve survived recessions and generation after generation of succession.”

Three new lifetime members were inducted into the association. They were Tim Dietrich, director of retail operations for Atlantic Canada at Home Hardware Stores Ltd.; Chris Deveaux, past chair of the ABSDA board and owner of Home Hardware Building Centres in Oxford and Tatamagouche, N.S.; and John Logan, the association’s longest-serving employee.

High Tide Home Hardware Building Centre of Truro, N.S., was recognized as the ABSDA’s Retailer of the Year. Olivier Lavoie, of Lavoie Home Hardware Building Centre in Campbellton, N.B., was named Young Retailer of the Year. Metrie’s Jeff Smith was recognized as Salesperson of the Year.

The Industry Achievement Award went to Terry Mulock, business development manager for the Maritime provinces at Castle Building Centres. The association also took advantage of the gala to salute Connie Chevarie, manager, accounting and events, for 25 years of service.

Following the awards presentation, attendees were treated to performances by a troop of bagpipers, a step-dancing ensemble, and the association’s own “house band,” the Kiln Dried Studs.

The expo was historically held in Moncton, near the ABSDA’s Dieppe, N.B., head office. The event moved to Halifax in 2017 and has been “growing here ever since,” Melanson told Hardlines.

Hudson’s Bay Co. has been granted creditor protection, with a view to restructuring its business. In a submission to the Ontario Superior Court of Justice, the historic retailer said it would retain as many jobs as possible, without making any guarantees, and will explore options to keep its store network alive.

CFO Jennifer Bewley testified in an affidavit that without court intervention, HBC would quickly default on rent payments and payroll obligations.

However, the company could shutter half of its 80 stores in an effort to head off bankruptcy (the Montreal store shown here). In addition, HBC may still have to lay off thousands of workers as part of its restructuring plan. A source familiar with company discussions told The Toronto Star that the company hasn’t yet decided which locations could be affected, and that the total number of planned closures could change.

The Hudson’s Bay Co. is not only the oldest company in Canada, it’s one of the oldest businesses in the English-speaking world. What was to become Canada’s most iconic retailer began as a fur trading business, with control at one time of most of what is now Central and Western Canada, thanks to a charter by King Charles II of England. The territory was called Rupert’s Land and included all of what is now Manitoba, most of Saskatchewan, Southern Alberta, Southern Nunavut, northern parts of Ontario and Quebec, and parts of the U.S. states of Minnesota, North and South Dakota, and Montana.

In the 1800s, HBC got involved in retail. It expanded eastward to Ontario and Quebec in 1960, buying out the Morgan’s chain. In 1978, it began buying up competitors with the acquisition of Zellers and Simpsons. In 1993 it took over Woodward’s in British Columbia and five years later bought K-Mart Canada’s stores. Along with Hudson’s Bay, the company owns the Neiman Marcus, Saks Fifth Avenue, and Saks OFF 5TH banners.

The creditor protection process aims to ward off bankruptcy by sloughing off HBC’s least-profitable stores and leveraging its vast real estate holdings.

Walmart Canada has unveiled a couple of ways it intends to take more market share in the country’s home enhancement and home improvement markets. The first is a new line of home décor and a kitchenwares line, its second limited-edition assortment in collaboration with cookbook author and lifestyle influencer Tori Wesszer.

The collection debuted March 6 in select stores and online.

According to a release, the new assortments offer customers “affordable pieces for their homes that evoke the fusion of simplicity and luxury, spotlighting warm neutral tones, soft sun-worn hues, as well as unique terracotta finishes and earthen effects, just in time for the spring season.”

Products include watering cans, lanterns, planter sets, and gardening tools, as well as tablecloths, kitchen towel sets, and porcelain bakeware, with prices starting below $6. The collection was developed in collaboration with Wesszer, a registered dietitian based in British Columbia who has developed a following as a food and lifestyle blogger. She is also a tech start-up founder and cookbook co-author.

But the giant retailer is making even more moves into home improvement. Go Lime Inc., which supplies home heating products and services, has partnered with Walmart Canada to install retail stores within Ontario stores. The first two are in the Milton Supercentre Walmart and the Heartland Supercentre in Mississauga.

Go Lime specializes in energy-efficient water heaters, including tank and tankless options, plus HVAC, furnaces, and heat pumps. According to Go Lime president and CEO Jeff Schwartz, five to 10 more stores are planned over the next 12 to 18 months in key markets across Ontario. All its stores will be within Walmart locations, at least for now.

“At this point in time we prefer to stay concentrated only in the Ontario market,” Schwartz told Hardlines. The aim is to help control service quality by relying on its own teams. “We want to always deliver the best possible experience for our customers and that means having our own workforce.”

Another aspect of Toronto-based Go Lime’s service mandate is to be able to provide installation or service either same day or next day.

“We’re not just selling products. We’re building relationships with our customers based on trust and transparency,” Schwartz added. “Our team is dedicated to making sure every customer receives personalized service and the best possible experience when shopping with Go Lime.”

PEOPLE ON THE MOVE

Jean-Claude Lasserre has been appointed CEO of Saint-Gobain Canada. Currently global CEO of Saint-Gobain Surface Solutions, Lasserre brings more than three decades of experience within the Saint-Gobain Group. He will succeed Julie Bonamy, effective April 1. Bonamy managed nearly $4 billion in Saint-Gobain’s acquisitions of Kaycan, Building Products of Canada, and Bailey Group of Companies, to complement the existing CertainTeed building products portfolio.

DID YOU KNOW

… that the latest edition of Hardlines Dealer News has landed in inboxes? In this issue, you’ll meet the new CEO of United Farmers of Alberta, learn about TIMBER MART’s latest show, and get the scoop on the Canadian presence at Orgill’s Spring Market. Hardlines Dealer News is monthly and it’s free: click here to subscribe now!

ECONOMIC INDICATORS

The value of building permits issued in Canada in January fell to $12.8 billion. That was $425.8 million, or 3.2 percent, lower than in December 2024. Residential construction intentions fell by 3.4 percent to $8.8 billion after increasing by $1.7 billion in December. In the single-family sector, however, permits increased by $111.4 million. (StatCan)

RETAILER NEWS

RONA inc. says it will showcase more than 6,500 Canadian-made products endorsed by the Well Made Here program. “We’ve always had a strong selection of Canadian-made products,” CEO and president J.P. Towner said in a release. “In fact, less than 10 percent of our supply comes directly from the United States.” Though RONA is now owned by New York-based private equity firm Sycamore Partners, Towner underscored that “our head office is located on Montreal’s South Shore, our leadership team is entirely Canadian, and we employ nearly 21,000 people across the country.” He added that independent affiliates make up almost half of RONA’s store network.

Federated Co-operatives Ltd. has acquired ColdStar Solutions Inc., a transportation, warehousing, and grocery wholesaler headquartered in Victoria. ColdStar provides trucking and warehousing services, as well as wholesale groceries and produce, to stores and supermarkets across Vancouver Island, the Gulf Islands, and the Lower Mainland. With warehouse locations in Richmond, Victoria, Ladysmith, and Comox B.C., ColdStar will provide FCL with strategic supply chain advantages on the West Coast.

Home Depot’s online sales in its fourth quarter were up about 9.0 percent. The company attributed that rise to its focus on improving the customer shopping and browsing experience, the use of AI to enhance deliver capabilities, and increased assortments in its flatbed distribution centres. Company execs provided details on a call to analysts on the release of Home Depot’s year-end results last month.

Gypsum Management & Supply Inc. said this week its Q3 net sales rose by 0.2 percent to US$1.3 billion while organic net sales declined by 6.7 percent. GMS’s gross profit of US$393.1 million represented a US$21.6 million decline from the prior year’s third quarter.

Empire Co. reported Q3 profits of $146.1 million, up from $134.2 million a year earlier. The parent of Sobeys and Safeway said its sales rose to $7.73 billion from $7.49 billion in the comparable period of its fiscal 2024. Same-store sales were up by 2.5 percent.

A pause on U.S. tariffs until April 2 will include Canadian softwood lumber, following the intercession of the (U.S.) National Association of Home Builders, Wood Business reports. President Donald Trump announced on March 4 the imposition of 25 percent tariffs on all goods entering the U.S. from Canada and Mexico. Two days later, he paused them on goods covered by the Canada-U.S.-Mexico Agreement. While softwood lumber isn’t one of them, the NAHB worked with the White House to secure their inclusion in the pause.

Canfor Corp. has reported a Q4 net loss of loss of $63.3 million on sales of $1.29 billion that were up from $1.28 billion a year earlier. For the full year, sales amounted to $5.25 billion, down from $5.43 billion, while the company’s net loss widened to $669 million from $326 million in 2023.

While Saint-Gobain Canada CEO Julie Bonamy is stepping down effective April 1, she has been busy here since taking the top job in September 2022. During that time, Bonamy managed nearly $4 billion by Saint-Gobain in the acquisitions of Kaycan, Building Products of Canada, and Bailey Group of Companies to complement the existing CertainTeed product portfolio. She joined Saint-Gobain in 2017 in Paris as group vice-president, strategy, and planning. She then moved up to serve as CEO of Saint-Gobain Malaysia, Singapore, and Indonesia before coming to Canada.

More than 90 percent of Canadian consumers say they want to buy Canadian, and they’re turning to their local retailers to help them. A new survey from KPMG finds that shoppers want stores to promote Canadian products and think grocery stores should be required to give them preferential shelf space. Nearly 70 percent say they want their local stores to stop selling U.S. products altogether. Eight in 10 are actively looking for non-U.S. versions of products when a Canadian one isn’t available.

The tariff landscape continues to shift just one week after President Donald Trump imposed 25 percent tariffs on Canadian goods. After just two days, Trump rescinded tariffs which fell under the Canada-United States-Mexico Agreement (CUSMA), until April 2.

Following the initial implementation of tariffs, Prime Minister Justin Trudeau placed a 25 percent retaliatory tariff on about $30 billion of U.S. goods. These were not removed (as of press time).

He emphasized the negative impact tariffs will have on American jobs, inflation, and national security, and highlighted Canada’s efforts to combat fentanyl, including a $1.3 billion border plan and a $200 million joint operations partnership. Trudeau added that Canada would not back down on what he called a “bogus” trade war, adding that imposing tariffs on the U.S.’s closest ally was “a very dumb thing to do.”

Ontario Premier Doug Ford responded to the tariffs, ordering all U.S. liquor to be removed from Ontario liquor stores, which are operated by the province, and by implementing a 25 percent export tax on electricity.

In his 2025 joint address to Congress last week, Trump announced that further undefined “reciprocal tariffs” would be imposed on countries across the globe on April 2. However, on Mar. 5, he announced that he was putting a one-month delay on automobile tariffs on the Big Three auto makers—Ford, General Motors, and Stellantis (formerly Chrysler).

Meanwhile, Canadian industry leaders are making it clear that tariffs will only have a negative impact on business growth.

“After months of taunts and threats that have already hurt investment decisions and jobs in Canada, Trump has fired the first shot in a full-on trade war and now every Canadian politician, business leader, worker, and resident must fight back,” said Unifor national president Lana Payne in a statement. “Trump has seriously misjudged the resolve and unity of Canadians, and he has misjudged how damaging this trade war will be for American workers.”

According to the Canadian Department of Finance, Canada is the top customer for U.S. goods and services exports and a critical supplier of goods and services integral to the U.S. economy, with Canada buying more from the U.S. than China, Japan, France, and the United Kingdom combined.

Additionally, more than US$2.5 billion worth of goods and services crosses the border every day.

Canada is the largest export market for 36 states and is among the top three for 46 states, with 43 states exporting over US$1 billion to Canada every year. Of the U.S.’s top five trading partners, Canada is the only country with which the U.S. has a trade surplus in manufacturing equalling US$33 billion in 2023.

Michael Rowe has got a new job at the world’s largest home improvement retailer. Formerly president of The Home Depot Canada, Rowe has been appointed executive vice-president of Pro for Home Depot, effective immediately.

Taking over in the top job at the Canadian division is Vinod Nalajala (shown here). In his 24-year career at Home Depot, he has worked his way up through various roles, starting as a sales associate in a store in Vancouver. When Home Depot opened its Regina location, Nalajala ran it as store manager before becoming regional sales manager, senior manager of sales execution, and district manager. More recently, he served as vice-president of human resources, central operations, contact centres, asset protection, and building services.

For Rowe, the new position has him moving to Home Depot’s head offices in Atlanta, Ga. Rowe got his start in consumer-packaged goods at Procter & Gamble, followed by finance roles at Reckitt Benckiser in Eastern Europe and Russia, then at Maple Leaf Foods back in Canada. From there, he joined Home Depot Canada as CFO, along with the additional title of VP marketing, digital, and contractor services.

During that time, he was instrumental in building out Home Depot’s contractor business in Canada. In 2020, he got the top job at the Canadian division, replacing Jeff Kinnaird.

The new boss is another Canadian.

“As the new president of The Home Depot Canada, I am honoured to lead our associates into the next chapter of our company,” Nalajala told Hardlines.

“My journey with Home Depot began in 2001 as a sales associate, and I have since taken on various leadership roles. I believe that our success is driven by two key factors: our people and our values. As we look ahead, I am excited to grow our DIY and pro business with these pillars in mind.”

During the Orgill Spring Market, held last month in New Orleans, CEO Boyden Moore shared his thoughts about the growing difficulties of doing business across the border, including the threat of tariffs—which have now become a reality—and the weakness of the Canadian dollar versus its America counterpart.

Moore noted that, “it’s been growing as an issue,” despite Orgill’s ongoing moves to buy futures in currency to hedge against price fluctuations. “It’s a challenge. It’s something that makes it harder for us to be profitable in Canada. But it doesn’t change our commitment, what we’re doing in Canada—so we’re working through it.”

Concern about tariffs “causes a lot of challenges in trying to plan your business and know what’s going on. We’re constantly assessing how we could mitigate those risks, but we’re hoping that it subsides sooner than later.”

Offering competitively priced products is a key mandate for Orgill. “Generally, we want to be able to bring competitive products to our customers at the lowest prices, and if we can’t do that, it makes it hard for us to be successful. But we’re committed to find ways to do that.”

One way is by responding to customers’ desire for more bang for their buck. “We’ve seen a pivot to value, so the more you can promote and deliver value, the more successful you’ll be.”

That includes more focus on Orgill’s own private-label brands. With less disposable income available, especially for lower-income customers, people can’t afford to invest in large home improvements. The value equation is reflected “across the store,” Moore said. The challenge is to provide a lower-priced alternative in every department. He added that vendors are stepping up to provide value-priced products, as well.

Ultimately, the tariff threat is a big unknown. But reflecting on his conversations with dealers on the show floor at the time, Moore was very encouraged by their attitude. Nevertheless, dealers on both sides of the border do not have high hopes for a strong economy in 2025. He anticipates a relatively flat environment for all of North America.

But the company has seen enormous growth from new customers, including from Canada, with lots of new customers coming down to the show from north of the border. That is expected to drive upwards of 10 percent growth for Orgill this year. “We’ve been outgrowing the industry for a while and we expect to do that this year, as well.”

Sollio Cooperative Group ended its 2024 fiscal year with a net surplus of $270.7 million, up 135 percent from $115.4 million in 2023. The parent of BMR Group unveiled the results at its recent annual general meeting.

Sales for the co-op fell by almost $500 million to $7.8 billion from $8.3 billion the previous year. Falling grain prices in particular contributed to the decline. However, BMR Group showed “a cautious recovery,” Sollio said. Its net surplus of $30.5 million was down by just $4 million, despite all-time low housing starts early in the year.

BMR is emphasizing its history as a business founded and controlled by Quebecers, as the public mood sours on buying American goods. “You can’t get more Quebecois than BMR,” CEO Alexandre Lefebvre (pictured here) told La Presse .

“It’s not the flavour of the month. It’s an enterprise that will never be sold because it’s a co-op.”

 A new marketing campaign features a mineral wool background with a message noting that the company has been “pure laine” Quebecois since 1967. (The expression, which literally translates to “pure wool,” refers to old-stock Quebecers).

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PEOPLE ON THE MOVE

Stephanie Smith has been promoted to EVP of human resources at The Home Depot in Atlanta. Previously, Smith served as senior vice-president of supply chain for The Home Depot. She succeeds Tim Hourigan, who will retire on June 6.

DID YOU KNOW

… that the latest issue of our amazing new publication, Hardlines PRO Dealer Business, was emailed out to subscribers last week? This digital newsletter features tips and case studies to help dealers sell more profitably to their pro and contractor customers. If you missed the latest issue, subscribe to this free newsletter here! Don’t miss out!

RETAILER NEWS

At its recent AGM, Federated Co-operatives Ltd. reported that 2024 sales reached $11.9 billion, resulting in net earnings of $297 million. As a result, FCL provided $252 million back to local Co-ops in 650 communities across Western Canada. The meeting also marked the end of Sharon Alford’s term as president and chair of FCL’s board of directors. Paul Hames was elected as the new president and chair.

The A.R.E.N.A. Alliance, a buying collective based in Europe, has added the Irish home improvement chain, Woodie’s. A subsidiary of Grafton Group PLC, Woodie’s has 35 DIY stores in the Republic of Ireland. A.R.E.N.A. has 10 partners, including two in Canada: BMR Group and Kent Building Supplies.

How does one coffee shop stand out from another? By providing a combination of top-notch service and a consistent experience. This was the observation of one retail executive speaking at last week’s DX3 conference for retail and tech, held in Toronto. Armin Yassaie is a partner with Mos Mos Coffee, a small chain with locations in Toronto’s business district. Yassaie stressed the importance of building customer expectations—then living up to them.

Loblaw Cos. Ltd. took a non-cash charge of $129 million in Q4 as consumers redeemed their PC Optimum points with alacrity. “We increased this liability based on our expectation that more customers will redeem more of their … points going forward,” president and CFO Richard Dufresne said on an earnings call. “What it reflects is that more and more consumers are liking PC Optimum, are using it, and so from our perspective … we’re more than happy to do it because it reflects what’s happening in our stores.”

 Alimentation Couche-Tard’s ambition to acquire
7-Eleven parent Seven and i Holdings Corp. has a new lease on life after the collapse of a rival bid. Itō Junro, son of Seven and i founder Itō Masatoshi, sought to head off the Canadian group’s proposal with one of his own. The Japanese retailer announced yesterday that it has learned the younger Itō has been “unable to secure the financing required” to bring forward an “actionable proposal.”

SUPPLIER NEWS

The Atlantic Building Supply Dealers Association’s 2025 Expo was held last week, and Hardlines was on the scene. The event, which marked the association’s 70th anniversary, kicked off with a meet-and-greet. At the end of the show’s first day, members and sponsors participated in a gala dinner honouring the industry’s best. Three new lifetime members were inducted into the ABSDA. They were Tim Dietrich, director of retail operations for Atlantic Canada at Home Hardware Stores Ltd.; Chris Deveaux, past chair of the ABSDA board of directors; and John Logan, its longest-serving employee.

Taiga Building Products reported Q4 net sales of $389.0 million, up $21.3 million from $367.7 million in the comparable period of 2023. Net earnings for the quarter fell to $6.6 million from $9.4 million, primarily due to higher tax charges. For the full year, sales declined to $1.63 billion from $1.68 billion in 2023. Net earnings of $47.6 million were down from $61.3 million in the prior year.

Many retailers have deployed “buy Canadian” marketing in the first few days of Trump’s trade war. Among them is Thunder Bay, Ontario’s, Memorial Home Hardware Building Centre. The store has printed out little Canadian flags to go with Canadian products, says a report in TBnewswatch.com. Dealer-owner Chris Sauer told the website that Trump’s trade war on Canada has brought a lot of apprehension to his customers. “For the first time, people really are looking at where a product is made. We have customers come in and that’s the first question they ask, not the last question,” Sauer told the local reporter.

Speculation continues over the impact of sweeping 25 percent tariffs on Canadian goods, which U.S. President Donald Trump confirmed last week would go into effect as soon as March 4. Trump’s executive orders also include a 10 percent levy on Canadian energy products.

In a joint press conference with French President Emmanuel Macron, Trump claimed that tariffs will move “very rapidly” despite Canada’s recent concessions to beef up border security and appoint a fentanyl “czar” to reduce the volume of drugs entering the United States.

“The tariffs are going forward on time, on schedule,” Trump told reporters.

In addition to tariffs imposed on Canada and Mexico, Trump has also threatened similar tariffs across Europe and China. Trump noted that the “reciprocal” tariffs would match duty rates and offset the trade barriers between the U.S. and Canada and with other countries around the world.

The Canadian hardware industry has already begun to feel the effects of looming tariffs, with many businesses already stocking up on materials ahead of potential cost increases.

“All these actions constitute a huge wake-up call to Canadians to reassess their trade affiliations and not be so reliant on one partner,” Michael McLarney, president of Hardlines, told Newsweek. He noted that the threat of tariffs is “a major breach of trust that will not heal quickly” against one of the United States’ strongest trade partners.

He added that Trump’s comments on making the country the 51st state “sting the Canadian psyche as much as tariffs would impact our pocketbooks.”

He does not expect the financial boost to domestic retail sales seen in a wave of “buy Canadian” patriotism to last. However, Canadian brands should expect to see a slight boost in sales as buyer attitudes shift.

On Feb. 22, Prime Minister Justin Trudeau spoke with Trump about shared progress at the Canada-U.S. border combatting fentanyl, including the work of Canada’s new fentanyl czar and Canada’s listing of cartels as terrorist entities under the Criminal Code. Trudeau told Trump that seizures of fentanyl at the border have decreased.

Earlier in the month, the prime minister delivered a speech on Parliament Hill announcing Canada’s response to U.S. tariffs, including imposing similar tariffs against $155 billion worth of American goods.

Trump quickly put the tariffs on hold, warning that they would instead be implemented in March.

Trudeau noted that, like American tariffs, the Canadian response would be far-reaching and include everyday items such as American beer, wine, and bourbon, some food and major consumer products, lumber, and plastics.

“We will stand strong for Canada. We will stand strong to ensure our countries continue to be the best neighbours in the world. With all that said, I also want to speak directly to Canadians in this moment. I’m sure many of you are anxious, but I want you to know we are all in this together,” Trudeau said. “This is Team Canada at its best.”

The world’s two largest home improvement retailers reported their fourth-quarter and year-end results last week. Both companies experienced modest comp gains for the quarter, while Home Depot enjoyed a bump in sales thanks to an acquisition last year.

At The Home Depot, sales for the fourth quarter reached US$39.7 billion, an increase of 14.1 percent from the comparable period of fiscal 2023. Comp sales for the quarter increased 0.8 percent. Comps in the U.S. were up 1.3 percent, while Canada also turned in positive comps.

Q4 net earnings were $3.0 billion, up 0.7 percent from US$2.8 billion a year earlier.

Sales for fiscal 2024 were up 4.5 percent to $159.5 billion. However, comp sales for fiscal 2024 decreased 1.8 percent, and comparable sales in the U.S. decreased 1.8 percent. Sales for the year enjoyed a lift from the addition of 12 new stores, plus Home Depot’s acquisition last June of SRS, a wholesale distributor. For fiscal 2024, SRS contributed $6.4 billion in sales.

Net earnings for the full fiscal year dipped to $14.8 billion, from $15.1 billion in fiscal 2023.

“Our fourth-quarter results exceeded our expectations as we saw greater engagement in home improvement spend, despite ongoing pressure on large remodeling projects,” said Ted Decker, chair, president, and CEO.

Lowe’s reported net earnings of US$1.1 billion for the quarter ended Jan. 31, 2025, compared with $1.0 billion in the fourth quarter of fiscal 2023. During the quarter, the company recognized a $80 million pre-tax gain associated with the 2022 sale of the Canadian retail business.

Total sales for the quarter were $18.6 billion, flat with Q4 sales a year earlier. Comp sales increased 2.0 percent, driven by high-single-digit pro and online comparable sales, and strong holiday sales. The company also got a boost from its efforts to support communities affected by Hurricanes Helene and Milton as well as the wildfires in California. However, continued cautious DIY spending offset the strength of those results.

“Our results this quarter were once again better than expected, as we continue to gain traction with our Total Home strategic initiatives,” said Marvin Ellison, Lowe’s chairman, president, and CEO, referring to the company’s strategy to focus on contractor sales, accelerated online sales, expanded home services, and customer loyalty.

For the full year, Lowe’s net sales were $83.67 billion, down 2.5 percent from $86.73 billion in the previous fiscal year. Net earnings dropped about 4.0 percent to $6.96 billion from $7.23 billion.

Home Depot provided its guidance for fiscal 2025, with total sales expected to grow about 2.8 percent and comp sales anticipated to increase by about 1.0 percent. The retailer plans to add up to 13 new stores this year.

Lowe’s offered its own guidance, similar to the Home Depot forecast. Lowe’s anticipates total sales of $83.5 billion to $84.5 billion, with comp sales expected to be flat to up to 1.0 percent.

Fred Thun, new president and CEO of United Farmers of Alberta Co-operative Ltd. (UFA), has a lot to say about tariffs—and about Canada’s current retail landscape. He shared his thoughts with Hardlines in a recent interview.

Thun replaces Scott Bolton, who retired in December 2024. UFA is one of Canada’s largest co-operatives and is a member-owned organization approximately 120,000 strong. It has over 100 petroleum outlets in B.C., Alberta, and Saskatchewan and 36 retail Farm & Ranch Supply stores in Alberta.

Thun has been with UFA since 2020 but took on the role of CEO on Jan. 1 of this year. At the time, UFA combined its Petroleum, Agribusiness, and Supply Chain business units, and named Don Smith as the new COO, with all those business units under Smith’s purview. That includes the retail stores under the Farm & Ranch Supply banner. This division was previously headed by Glenn Bingley, who has retired.

“I’ve fallen in love with who UFA is and the purpose that we can bring, which I think differentiates us from other organizations,” Thun says. “My sole purpose is to perpetuate and to support rural communities and the rural lifestyles. And that provides us a really unique window that allows us to do things that other organizations can’t necessarily do.”

As UFA is yet another business whose members have trade ties with the U.S., Thun reflects on the possibility of tariffs. “It’s a hard one to read because in many respects, be it right or wrong, it’s changing the rules. From a business standpoint, whenever you see a new approach, you’ve got to take notice and say, ‘Okay, how does this impact us? And how do we change how we operate?’”

Whether or not Canada is being reactive or complacent, he says, is a hard question. “As someone in my position representing my industry, I think the current situation highlights the necessity of investment that we didn’t do over the last decade. And I think it highlights the importance of infrastructure, and what I call self-sufficiency-related investment that now has to get escalated on our priority list.”

Canada is rife with resources and a wealth of talent, Thun says. The tariffs could be the catalyst to invest within the country, rather than outside our borders. Regarding tariffs and counter tariffs, he says “the biggest loser is the consumer.” Applying this statement to UFA members, Thun believes it will be very hard on the beef industry, and on the crop side—Canadian canola and meal. “The live cattle transport over the border is significant on a daily basis. And it becomes a question of who can take the stomach punch the easiest.”

Looking at the broader social implications which tariffs could create, there’s also a societal risk. “I always worry about anything that creates an economic downturn,” Thun says. “An economic downturn, which would be a pretty natural outcome of a tariff environment in Canada, almost inevitably creates an increase in rural-related crime.

“I think it’s incumbent on any organization, on any community, to look at ways to make itself more self-sufficient and to make itself more valuable to the communities around it. I think regardless of the environment that’s a healthy mind-set. And the fact that we’re talking about tariffs probably escalates conversations that would have been useful several years ago.”

Thousands of retailers—including hundreds of Canadian dealers—gathered at the Ernest N. Morial Convention Center in New Orleans recently for Orgill’s 2025 Dealer Market. The three-day show featured nearly one million square feet of products, special buys, and deals from vendors and service providers.

The show ran concurrently with a digital buying forum, Orgill’s Spring Buying Event, through an online platform at Orgill.com. The online buying event is one of four seasonal online events Orgill holds throughout the year.

A big focus was on providing value for Orgill’s dealer customers with pricing and promotions available only at the show. “Whether it is our long-term vendors who have supported our customers for years or newer relationships, our merchandising team is constantly working to create strong vendor partnerships that allow our customers to meet the unique needs within their trading areas,” said Clay Jackson, Orgill’s executive vice-president and COO.

The exhibitors stepped up to support those pricing initiatives. “I give a tremendous amount of credit to our vendors who understand how important these events are for our customers. The exhibitors here know that this event plays a key role in helping the retailers we serve plan their promotional buying for the year, and the Market allows them to maximize their margin potential by taking advantage of show specials.”

At the end of day one at the show, Hardlines held its annual Canada Night reception for Canadian dealers who were in attendance. The event drew more than 250 dealers from every part of Canada, along with Orgill’s Canadian reps and sponsoring vendors. The evening was highlighted by an open bar, great food, and a rousing rendition of “O Canada” sung by everyone in both official Canadian languages. To top it off, the Canada-U.S. hockey game was on the TV, which Canada won in nail-biting overtime—making it a truly Canadian event.

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PEOPLE ON THE MOVE

Jon Fontaine is the new Western region sales manager with Robertson, Inc., reporting to Brian Cooley, director of sales. Fontaine most recently worked with Fasteners & Fittings.

Al D’Addese has joined Doman Building Materials Group as general manager for the Toronto area. He previously served as VP of sales at Weber-Stephen Products and the VP sales role at CertainTeed Corp.

DID YOU KNOW

… that the latest instalment of our podcast series, “What’s In Store,” went live last week? In this episode, we talk to Marilyne and Sylvain Laferriere, owners of Victory Building Centre in Mackenzie, B.C. They offer a heartfelt report from the frontlines of home improvement retail on the challenges and wins of serving their Northern community. Don’t miss this great episode: sign up now to get updates about the latest podcasts in your inbox!

RETAILER NEWS

Home Hardware Stores Ltd. has announced the conversion of a store in Indian Head, Sask., to the Home Hardware banner. The 8,000 square-foot retail space is owned by Maulik, Bhautikaben, and Rishabkumar Patel, who purchased the location in 2023. Formerly with Ace, they plan to expand their product selection under their new banner.

BMR Group hosted its annual contractors’ evening recently. Using the slogan, “Tailgate Party,” the event’s sports-themed activities helped foster a festive atmosphere at the Centrexpo Promutuel Assurance in Drummondville, Que. The event drew some 800 dealers and contractors, as well as 43 exhibiting suppliers.

Homegrown initiatives aren’t wasting any time stepping as Amazon prepares to exit the Quebec market. Signé Local, based on Montreal’s South Shore, is looking to fill the void for Quebecers moved to boycott Amazon. It currently has four locations, one of which processes all online orders. By the end of February, it’s poised to set up its own one-stop-shop online marketplace platform. Co-owner Dawei Ding told CTV News that sales are up by some 250 percent from a year ago.

McDonald Home Hardware and Building Centre in Brussels, Ont., remains open despite a partial roof collapse last week. The roof caved under the weight of heavy snow which has plagued the region—and much of Canada—for most of February.

Walmart in the U.S. has launched a program whereby it sends products to approved customers to try out in their homes. Taking a page from Canadian Tire Corp., which has operated its Tested for Life in Canada program here for many years, Walmart is letting certain vendors provide products to Walmart’s “Customer Spark” community, which was formed in 2018 as a target group that fills out shopper surveys.

SUPPLIER NEWS

Canadian lumber producers are awaiting a decision from the U.S. Commerce Department on preliminary rates for anti-dumping duties on softwood lumber. Currently, most producers are paying 7.66 percent, but trade observers say that figure could rise to 20 percent. A preliminary increase on countervailing duties is expected in May. It could see those rates rise to 10 percent from the 6.74 percent in effect at present.

Barrie, Ont.-based barbecue maker Napoleon took out a full-page ad in The Toronto Star urging Canadian consumers to choose domestic products as trade disputes with the U.S. heat up. The ad expresses disappointment at the U.S. government’s aggressive tariff strategy. “As the economy faces uncertainty, we invite you to join us in strongly supporting not only Napoleon but all Canadian businesses.” Napoleon president Mike Tzimas told CTV News the company is “completely focused on keeping everybody employed.”

The Retail Council of Canada’s STORE Conference will be held this year at the Toronto Congress Centre June 3 and 4. The event brings together retail leaders, innovators, and changemakers to address the big challenges facing the global retail sector, and with a distinct Canadian perspective. Register now to take advantage of early bird pricing because it ends Feb. 28. (Click here for more info and to get special pricing that will save you $200.)

Retail sales increased by 2.5 percent to $69.6 billion in December. Sales were up in all nine subsectors and were led by increases at food and beverage retailers and motor vehicle and parts dealers. Sales in LBM and garden categories grew by 2.4 percent. (StatCan)

The latest buying show for TIMBER MART dealers was held in Toronto Feb. 13 and 14 at the Toronto Congress Centre in that city’s west end. A giant snowstorm disrupted travel, causing delays for some flights from Western Canada, while some Ontario dealers who had planned to drive there also faced challenges. But a series of dealer meetings held Feb. 12 brought the majority of dealers in ahead of the storm.

The mood on the show floor was positive, and TIMBER MART president and CEO Bernie Owens told Hardlines that, despite headwinds, “I actually think 2025 will be a good year.”

That mood permeated the show. In addition to the hundreds of TIMBER MART store personnel in attendance, 227 vendor booths and 150 vendor companies were on the 65,000-square-foot show floor of the facility. The hybrid format included a cloud-based virtual tradeshow platform to support the in-person event. A show app was available again this year to communicate pertinent show information and allow for online chat and appointment scheduling among attendees.

Along with the range of show displays and attractions, the show floor featured a new product showcase and a pallet-buy area, which presents a wide range of products for sale in pallet quantities. At the centre of the floor there were hubs for all of TIMBER MART’s services and programs, including LBM distribution, dealer marketing, merchandising, and banner support.

“Once again this year, we’re seeing very strong attendance and support for our hybrid show thanks to the virtual convenience it has to offer alongside the member-exclusive deals and great networking opportunities,” said Owens.

“The hybrid show format is proving to be a valuable and cost-effective option for dealers and vendors alike and is likely one that is here to stay, especially given the inclement weather we’re experiencing this year.”

The pending closure of the Peavey Mart chain leaves a significant gap in the farm supply industry. The company was a staple in the rural landscape, offering farming supplies, feed, seed, and other agricultural goods for both large-scale and urban farmers. In late January, parent company Peavey Industries announced it would be closing all 90 of its stores across Canada.

On the retail side, there has been a movement to fill the gap. With spring planting season just a couple of months away, companies are looking to shore up farm products while Peavey Mart prepares to shut down.

Home Hardware Stores Ltd. has stores in 70 percent of the markets that Peavey is leaving, according to Rob Szekszer, Home Hardware’s vice-president of merchandise, hardlines. He said the company is working to ensure business continuity for farmers as the new agriculture season begins.

“Home Hardware is working closely with suppliers to quickly increase our farm-related product assortment in areas such as feed, farm equipment, tools, hardware, and clothing. By expanding our product assortment, we can better support our Home locations and help them meet the needs of farming communities across Canada,” he said.

Szekszer noted that Home Hardware is committed to ensuring that all locations have access to products that serve their customers. He says that “we are actively expanding our farm-related assortment to support the areas that have been directly impacted by the Peavey Mart closings.”

At Lee Valley Tools, president and COO Jason Tasse said the closure is proof that no one is immune to changing economic trends. After several years of growth and expansion, Lee Valley Tools is in protection mode right now and not planning to expand into new areas of business.

He added, however, that the company will reach out to Peavey Mart trade areas to remind them that Lee Valley is another alternative Canadian option.

“We fully expect we’ll see same-store sales growth just because of the void in the market. We have to be prepared and well-stocked so that we can deliver a service level that Lee Valley is known for,” Tasse said. He added that Lee Valley Tools has carved out a niche assortment of items that don’t overlap with perceived competitors.

The Peavey Mart closings provide an opportunity to introduce new customers to the Lee Valley Tools level of customer service. It’s not only an opportunity for his company, but one for other merchandisers to examine their business plans, as well, Tasse said.

“I think the best advice for Canadian organizations is to be thoughtful. Think not just about your short-term financial plans but also about your long-term planning and strategic horizons. We have never been an advocate of growth for growth’s sake. It’s about sustainable growth.”

The prospect of a trade war looming with the United States has driven a surge of patriotism in Canada, including a push to buy Canadian-made products. Well Made Here, the certification program for Canadian manufacturing, is uniquely positioned to step up to the plate.

In response to what it calls a “wake-up call” from the White House, the program has even updated its logo to incorporate the red and white of the Canadian flag to capture the patriotic feeling of the moment. Its original “neutral sand tones” were designed “to blend seamlessly with all types of packaging and product labels.”

Well Made Here (“Bien fait ici” in French) was established in 2018, through the initiative of about a hundred manufacturers, their sales networks, and several associations in the renovation and construction sector. Its mission is to promote the manufacturing and sale of hardware and construction materials that comply with building codes and standards, with at least 51 percent of production costs originating from Canadian factories. Currently, over 13,000 SKUs are accredited from more than 150 Canadian factories.

Founder Richard Darveau, who is also president of the Quebec industry association AQMAT, says domestic alternatives are readily available for most U.S. imports. “Everything is findable in Quebec and in Canada,” he told Le Canal Nouvelles, the French-language sister network of CTV News Channel.

Industries like food and clothing are highly reliant on imports from overseas, he noted. “We can’t grow bananas or pineapples … but we can build or renovate a house, an apartment, from basement to attic, with products made in Quebec and in Canada.”

The backlash against U.S.-made products has been particularly pronounced in Quebec, where Amazon is shuttering all of its warehouse operations. The threat to tariff Canadian products—which drew retaliatory threats from the Canadian government to impose dollar-for-dollar tariffs on U.S. imports—was announced by U.S. President Donald Trump ahead of his inauguration.

Electronic shelf label maker JRTech Solutions has integrated the Well Made Here logo into its own shelf tags, allowing retailers to automatically display Canadian products for easy identification by shoppers.

Dealers from across the country gathered recently for TIMBER MART’s annual buying show, returning to Toronto as they did last year. But before Covid, the show took turns locating in Montreal as well as the Queen City.

“I would like to get back to Montreal at some point,” says TIMBER MART CEO Bernie Owens (shown here, centre). But, he adds, his organization needs the right facility. The show’s former location in the Palais des congrès is no longer available since Covid disrupted event planning everywhere. Nevertheless, the destination has many advantages, Owens says.

“It’s a direct flight for most people, with a facility that can handle changes in the weather,” in the event an outdoor activity had to be moved inside at the last minute. In addition, the show’s current hybrid format means team members from the stores can stay home while still being involved in the show, “so we can get more involvement from each store.”

He adds that Montreal is a welcome destination for most dealers, who enjoy the city’s unique character, historic legacy, and busy night life.

For now, however, the show remains in Toronto, while Owens and his team look for opportunities—and the right venue—that will enable them to move it to Montreal sometime in the future.

PEOPLE ON THE MOVE

Stephanie Tychanski has joined JD Canada, the licensee for Briggs & Stratton in this country, as national accounts manager. She reports to Steve Burgess, country manager. Tychanski was most recently with Smart Brands International.

Gary Percy has joined Telesteps Ladders Inc., a Regal ideas division, as the new director of business development. He reports to Andrew Pantelides, senior vice-president of Regal ideas. Percy was most recently with Norgar Consulting.

DID YOU KNOW

… that the latest edition of our sister publication, Hardlines HR Advisor, is now out? In this issue, we look at two new business leadership programs, what makes employees stay, and coping with winter commutes. HR Advisor is monthly and it’s free: click here to sign up today! (And check out our archive of past articles here!)

RETAILER NEWS

Canadian Tire Corp. has reached an agreement to sell its Helly Hansen activewear brand to Kontoor Brands Inc. The deal is valued at nearly $1.3 billion. Kontoor, based in North Carolina, is the parent of the Lee, Wrangler, and Rock & Republic denim brands. In a press release, CTC referred to the current climate of “market uncertainty.” It will use proceeds from the sale to invest in its retail store network, as well as for debt repayments and share buybacks.

Our favourite RONA rock-and-roller, Rob Faries, who has two stores in Moosonee and Moose Factory in Ontario’s far north, is also the lead singer for the Relic Kings. The band is making a rare appearance in the Greater Toronto Area next month, when they play at the Richmond Hill Centre for the Performing Arts. This is a great rock band that released a killer song last summer that tackles the tough issue of youth addiction and loss. (We encourage anybody who loves good rock and roll to check this out, March 11 in Richmond Hill, Ont. Click here for ticket info!—your air-guitar playing Editor.)

Castle Building Centres Group kicked off its buying expo season with a three-day event in Quebec City last week. Over 80 percent of its Quebec and northern New Brunswick members attended the event the Hôtel Château Laurier, just steps away from Quebec’s Parliament Hill.

Loblaw Cos. Ltd. plans to invest $2.2 billion in 2025 to grow its footprint. The company plans to open 80 new retail stores under the No Frills, Maxi, Shoppers Drug Mart, Pharmaprix, and T&T banners, among them some 50 discount stores.

Costco will open a new location at Winnipeg’s Westport development later this year. Construction has already started on the 166,984-square-foot store. Westport is situated in the heart of the largest concentration of sporting and recreational complexes in Manitoba. The site includes a million square feet of mixed-use development, including retail and restaurants.

Princess Auto is slated to open a new warehouse just outside Calgary in 2026. The 605,000-square-foot Stoney North Logistics Centre is to be the first building on the Balzac, Alta., property.

AD has announced that member sales for increased by 6.0 percent in 2024 to US$83.3 billion. On a same-store basis, sales in Canada rose by 3.0 percent. More than 100 new members joined AD during the year, bringing the total count in the U.S. and Canada to 932.

Lowe’s Cos. is revamping its MVPs Pro Rewards & Partnership Program as MyLowe’s Pro Rewards. The new branding aligns with the retailer’s MyLowe’s Rewards plan for DIY customers.

The annualized rate of housing starts increased by 3.0 percent in January to 239,739 units. Actual urban starts were up 7.0 percent year-over-year, with 15,930 units recorded in January, compared to 14,883 in January 2024. (CMHC)

Sales of existing Canadian homes declined by 3.3 percent on a month-over-month basis in January. The drop was largely due to sales trailing off in the last week of the month. The number of new listings jumped by 11 percent compared to December 2024. (Canadian Real Estate Assoc.)

U.S housing construction declined by 9.8 percent to an annualized pace of 1.37 million units in January, after surging by more than 15 percent in December. Building permits edged higher overall but remained unchanged in the single-family residential segment. (U.S. Census Bureau)