ST. JACOBS, Ont. — There was something different about the latest Home Hardware Market, which concluded last week at the company’s head office and warehouse in St. Jacobs, Ont. Under the theme Share the Vision, the event kicked off with a presentation by HGTV’s Scott McGillivray on renovations and return on investments. Beauti-Tone’s 2020 paint colour of the year was also unveiled during the market (it’s called “Honey I’m Home”).

The differences were evident upon walking into the market itself. These included more emphasis on housewares, careful presentation of private labels according to programs rather than just products, more thoughtful grouping of Home’s various services to its dealers and a first-ever marketing strategy meeting for Home’s LBM dealers.

Additionally, there was a buzz that was generated around the show floor. That buzz was largely positive—and reflected the overall acceptance of the changes occurring.

That’s a big change from the initial stages of the transition within the company, which began under former CEO Terry Davis. Davis made the company’s first big executive hire from outside Home Hardware when he appointed Rick McNabb to the position of VP marketing and sales.

As changes were generated from a marketing direction, acceptance was often reluctant, even as the need for change was understood. At the Fall Market exactly one year ago, the notion of change was also prevalent. But many people, both dealers and head office staff alike, kept saying “change is good” as though trying to process the transition and anticipate a positive outcome.

Now, the momentum of change is apparent everywhere, but this time it starts at the top, with a focus on operations rather than marketing. Home Hardware’s president and CEO, Kevin Macnab, has been in place for almost a year now, 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. Reactions of vendors to new expectations from the company’s overhauled buying teams have been largely positive, if somewhat tentative. And dealers were much more accepting of the transitions occurring under Macnab’s leadership.

This acceptance translated into an upbeat market that found dealers and vendors alike generally energized by the changes that have already taken place and the ones to come.

(We’ll feature an exclusive interview with Home Hardware CEO Kevin Macnab in next week’s blazing edition of Hardlines!)

WORLD HEADQUARTERS, Toronto ― The 24th annual Hardlines Conference is fast approaching, with a lineup of speakers that will make it a must-attend for home improvement owners, managers and executives in Canada.

This year’s event will feature some of the industry’s top thought leaders, including two executives from Canadian Tire, the top merchant from Princess Auto, the marketing director from BMR Group and the chair of Home Hardware Stores Ltd. (Conference update: please note that the CEO of Staples Canada Canada will no longer be able to present at this year’s conference.)

This year’s conference has been organized around the theme, “It’s All About the Experience” to guide the presentations—and the destination of the conference itself is a world-class meeting facility just a short drive from Toronto’s Pearson International Airport. It will be held November 13 to 14 at the Kingbridge Centre in King City, Ont.

We’re excited to share some insights into a few of the presentations you can look forward to at this year’s conference.

Headquartered in Winnipeg, Princess Auto is a family-owned, Canadian company with 46 stores coast to coast. Fred Pennell, vice president merchandising operations, will share what makes this hardlines retailer such a unique company, with a loyal customer base that is expanding across the country.

Paula Courtney is a retail strategist, trusted by retail leaders around the world to help them refine and create a superior customer experience. She is the product founder and chief strategist at WisePlum, a software as a service-based research tool designed to measure specific customer insights. Paula will be joined on stage by two senior executives from Canadian Tire: Shawn Stewart, VP Loyalty and Customer Insights and Erin McFeetors, VP Store Operations, in a panel discussion.

Claudie Gervais, marketing director–promotional strategy and business intelligence at BMR Group will share insights into BMR’s strategy to be a truly national player. That includes boutique banner concepts, a world-class urban store concept—and aggressive expansion into the Ontario market.

Joe Franquinha owns Crest Hardware in Brooklyn, N.Y. By providing only the best customer service and top-notch products for his customers, he makes shopping at Crest a true New York experience, with a staff that makes you feel right at home. 

A few years ago, Lowe’s Canada embarked on an ambitious journey that would bring its entire Canadian retail network and multiple banners to the next level of digital. Tanbir Grover, vice-president, e-commerce and omnichannel, will describe the why and how of Lowe’s Canada’s digital transformation, its execution within a unique context, and how the company seeks to provide the frictionless shopping experience that customers want and expect today.

As Canada’s only truly national event bringing the entire hardware and home improvement industry together, the Hardlines Conference offers an incredible opportunity for delegates to meet industry colleagues and customers in a professional yet casual setting. It will be held November 13 to 14 at the Kingbridge Centre, an incredible corporate retreat that will be a perfect backdrop to this year’s Hardlines Conference, which is “all about the experience”.

(Click here now for a list of all our speakers and to register for the conference!)

QUEBEC CITY — Canac has acquired a one-million-square-foot property adjacent to its Drummondville distribution centre, just days before it wraps up work on an expansion that will double its previous size.

The current second phase of the expansion takes the facility from 350,000 to 560,000 square feet. Representing a $15 million investment, it has allowed the creation of about 40 new jobs.

Details of the coming phase three are still to be released, but President Jean Laberge says it will create even more jobs and involve advances in automation. The distribution centre was originally built in 2015 at a cost of $30 million.

The expansion of Canac’s back-end support keeps in step with the company’s expansion of its retail footprint. Back in May, it opened its 27th store, in Thetford Mines, Que. The 39,000-square-foot building, with its 30,000-square-foot lumber yard, represented a $6 million investment and the addition of 90 local jobs. And Canac has acquired its 28th location, in Shawinigan, Que., which is scheduled to open in November.

Laberge is also setting his sights beyond Canac’s home province of Quebec. The eastern Ontario town of Hawkesbury will be the site of the first Ontario store for the retailer.

CHICAGO ― Canadian suppliers looking to expand their online business now have one more reason to attend the fourth annual Home Improvement eRetailer Summit, November 6 to 8 in Chicago. The event provides networking, education and one-to-one meetings for retailers, manufacturers, distributors and industry professionals who are interested in how to optimize the internet as a distribution channel.

Here, the Summit’s founder, Sonya Ruff Jarvis, spoke with us about some of the major takeaways attendees can expect from this event:

Vendors often feel challenged to get products to market cost-effectively when it comes to selling online. Any tips?

Drop shipment options shouldn’t frighten suppliers. The summit has had manufacturers like Honey Can Do speak about how drop shipping can be profitable. Our event in November will have Rakuten Super Logistics discuss how implementing the right fulfillment logistics can help suppliers be more competitive.

It is sometimes a misperception among dealers and suppliers that it’s harder to control prices when selling online. It’s not impossible, but it takes strategy, monitoring and policies. Many of the Summit’s attendees are doing just that, and they’ve been willing to share their experiences.

Where do you think the industry needs to improve in order to be more fully engaged in e-commerce?

Companies need to make a commitment to fully integrate online retail into their business models versus conducting e-commerce as an afterthought or, worse, a separate enterprise. Fifty-six percent of online shoppers still prefer the bricks-and-mortar shopping experience over online. So, the more successful retailers are taking a holistic approach that doesn’t leave customers or dollars on the table.

Any predictions about where e-commerce might be headed in the future?

Getting the logistics right is huge in order to build a profitable and sustainable online retail business. As we progress down this road, I believe that logistics and fulfillment will become more refined. You will see companies with these capabilities launch programs and services that make it easier and more efficient for dealers and suppliers to compete. Plus, software platforms will offer even more plug-ins and simpler-to-use options to enhance their value add. 

(The fourth annual Home Improvement eRetailer Summit will be held November 6 to 8 in Chicago.)

...that the 2019-2020 Hardlines Market Share Report breaks out the sales and store counts of every key home improvement banner by province? This invaluable marketing tool will help you identify sales and market opportunities and align your own forecasts with regional market breakouts. Now available in a special package with our Hardlines Retail Report, which provides valuable forecasts for the industry for 2019 and 2020, including analysis of the top players. Each report is available in either PDF or PowerPoint format, and at a special rate for Hardlines Subscribers. (For more info, click here!)

BOUCHERVILLE, Que. ― A dealer with two stores in Ontario has adopted the RONA banner. Mike Crow Sr., who has owned a building centre in Rodney, Ont., since 2004, bought a second location in 2016, in nearby Springfield. Now, he’s made the move to become a RONA affiliated dealer. Together, the RONA Rodney and RONA Springfield stores employ 45 people. They feature more than 10,000 square feet of retail sales space and, combined, their drive-through lumber yards, total more than eight acres and carry some 10,000 products.

SAINT-PAUL, Que. — Centres de la rénovation Patrick Morin celebrated the grand reopening of its Sainte-Marcelline store after a major fire in January. Company founder Patrick Morin himself cut the ceremonial 2x4, marking the culmination of a $3.5 million investment. The store now boasts a larger retail space of 12,000 square feet.

TORONTO — Hit entrepreneurial reality show Dragons’ Den is returning to CBC for its 14th season. This year, Canadian Tire and Desjardins Group are new sponsors. They join existing show partner BDC.

TORONTO — Hudson’s Bay Co. has announced that its Dutch division will wind down by year’s end. HBC Netherlands BV’s 15 retail stores, e-commerce site and suburban Amsterdam head office. The business is a joint venture between HBC and SIGNA Retail Holdings. Under the terms of HBC’s agreement with SIGNA, the historic Canadian firm is slated to assume control of Hudson’s Bay Netherlands when the transaction closes, which is expected to take place later in the fall.

IN MEMORIAM

We were saddened to learn of the passing of John Williams, retail consultant and founder of J.C. Williams Group. A brilliant thinker who remained active until the end, John was also a presenter at the Hardlines Conference twice over the years. He will be missed.

ECONOMIC CONDITIONS

Total investment in building construction increased 0.5% in July to $15.2 billion, with slight gains in both the residential and non-residential sectors. The multi-unit residential component was down 1.6% to $5.2 billion, due mainly to decreases in British Columbia and Saskatchewan. Investment in single-unit construction was up 2.9% to $5.2 billion, driven by Ontario and Nova Scotia. This increase more than offset the decline in investment in multi-unit construction. Non-residential investment remained largely unchanged. (StatCan)

Retail sales advanced for the first time in three months, increasing 0.4% in July to $51.5 billion. Higher sales were reported in six of 11 subsectors, representing 71% of retail trade. Sales at building materials and garden equipment and supplies dealers decreased 3.2% after increasing 5% in June, while remaining above the level observed in May. After removing the effects of price changes, retail sales in volume terms were essentially unchanged in July. (StatCan)

August saw a surprise spike in sales of existing U.S. homes, which rose by 1.3% to a seasonally adjusted annual rate of 5.49 million units. This second consecutive monthly gain puts home resales at their highest level in 17 months. Economists polled by Reuters had expected sales to edge down by 0.4%. Meanwhile, July’s rate of 5.42 million units was left unrevised. (National Association of Realtors)

U.S. homebuilding in August reached its highest level of activity since 2007, an indication that the housing market is responding positively to lower mortgage rates. Housing starts for the month soared by 12.3% to a seasonally adjusted annual rate of 1.364 million units, with construction of both single- and multi-family dwellings picking up speed. July’s estimate was revised upward to a rate of 1.215 million units, a more modest decline than the initially reported 1.191 million units. Year-over year, housing starts were up 6.6%. (U.S. Commerce Department)

NOTED

The Liberal and Conservative parties have each extended a hand to homeowners, promising to make it more affordable to renovate homes with the goal of increased energy efficiency. Justin Trudeau told supporters in B.C. that, if returned to power, his government would retrofit 1.5 million homes over five years through the Canada Mortgage and Housing Corp. Speaking in Quebec, Andrew Scheer restated the Conservative Party’s proposal for a two-year income-tax credit of 20% for upgrades to home energy efficiency.