BOUCHERVILLE, Que. — In the midst of crisis, our ability to look out for each other is what helps us get through. And at this point in the rise of the COVID-19 pandemic, the focus of dealers and store managers on the well-being of their workers has become a priority.

That is something Pascal Houle, CEO of BMR Group, hears repeatedly as he talks with his group’s member-dealers.

“Naturally, BMR dealers are concerned about the performance of their business, which will inevitably be affected by this crisis,” he admits. “But what I am hearing from them the most is that their main concern is the health of their employees and their customers. They are committed to continuing to serve customers, who need them, but in a way that is safe for everyone. And I must say that I am very impressed with their dedication and creativity in achieving that.”

In a world where conditions change daily, getting a read on how the COVID-19 crisis is currently impacting the industry means chasing a moving target. With an eye to a time when some sense of normalcy returns, Houle is certain the impact will be lasting.

“The strength of the Canadian economy and the construction industry throughout the country are two key elements that will define the extent of the impacts on the industry, both short and long term,” he says.

He also expects some outcomes that could have a direct benefit for bricks-and-mortar retailers who find themselves filling orders online and by phone. “The current surge in e-commerce is unlikely to decline once this crisis is over and will certainly create ample opportunities for us.”

Another positive spinoff could be a boost for local dealers. “Buying local will also take on a whole new meaning for consumers, who will doubtless want to encourage local businesses, benefitting the Canadian economy as a whole.”

TORBSA general manager: Some opportunities for commercial dealers

BOLTON, Ont. — The impact of the COVID-19 crisis is being felt by dealers of all stripes, including outlets that supply large contractors and big commercial contracts. Those kinds of dealers make up the bulk of the membership of the TORBSA buying group. General Manager Bob Holmes observes that most of his dealers are faring pretty well.

Holmes (shown here, pre-pandemic, with board president Greg Drouillard of Target Building Materials) admits there’s “a lot of uncertainty out there” and more changes in coming days and weeks could have a negative impact. But for now, his members who are tied in with infrastructure projects, ongoing condo construction or even residential builds that have the foundations poured will continue to do business.

He anticipates some layoffs among his members, “but the guys are still busy serving customers,” he says. He worries as well about possible product shortages if infrastructure gets interrupted. “There could be some tightness of supply, but the market has also seen a slowdown, so there’s not been as big an impact. But it could happen down the road,” he warns.

Unless the housing and construction markets slow down quickly, Holmes believes there’s enough work out there to carry many of his dealers along for the near future. “I think most businesses are okay for the next couple of months.”

He adds that the role of buying groups is being put to the test under the current situation. The ability to get dealers together to share ideas and best practices in face-to-face situations has been severely undermined by the necessities of physical distancing. “As far as buying groups go, we’ve always prided ourselves on communication—and this has really hampered that,” he says.

TORBSA members have managed to overcome this to some extent. A recent directors’ meeting was conducted by telephone, while the group’s annual general meeting will be held online. “At least it allows people to hear what other people are thinking.”

That sharing of ideas is more important than ever, Holmes notes. “These days, you have to be open to share information.”

SPECIAL REPORT — With business activity restricted during the COVID-19 crisis, many provinces and U.S. states have made exceptions for at least some home improvement and building trades businesses. From plumbing to electrical, hardware and home improvement dealers offer a variety of supplies that homeowners may need urgently.

As Serge Blain, owner of Montreal’s RONA Beaubien Hardware put it, “if your fuse pops or toilet leaks, you have to fix them.”

In some cases, the increased traffic, at a time when we’re all trying to stay apart, has generated backlash. South of the border, Lowe’s Cos. took heat for going ahead with its Spring Black Friday sale, which attracted shoppers to stores with discounts on items from barbecues to mailboxes. Lowe’s promotions underscored that “affordability matters now more than ever,” but a store employee in Indiana who fell ill with COVID-19-like symptoms questioned the wisdom of drawing in crowds.

In Michigan, the state attorney general had to twice reprimand big box chain Menards for promotions deemed to undermine physical-distancing protocols.

The message is clear: even at an essential business, not all business activities are essential.

Retailers in Canada are taking action to prevent similar mishaps. Home Depot Canada made the decision in mid-March to cancel all its major spring promotions and put flyers on hold. Around the same time, Canac also pulled its popular promotional circulars. “Once we put something in the flyer, it's hell!”, Canac President Jean Laberge explained to La Presse. “It creates monster traffic [in stores].” Lowe’s Canada has also eliminated all flyers until early May.

Meanwhile, one state and some local governments in the U.S. have gone a step further. Last week, Vermont barred big boxes from selling non-essential items in store altogether. Retailers like Walmart and Costco are required to pull those items from shelves or cordon off aisles to prevent customer access. Across the border in Quebec, the opposition Parti Québécois is calling on Premier François Legault to follow suit and order the closure of non-essential departments within big boxes.

Under the PQ’s proposal, only food, hardware and pharmacy departments would remain open, with other offerings available online. The party cited concerns about both store traffic in big boxes and their impact on smaller, locally owned businesses.

NATIONAL REPORT — The status of essential service has been a blessing for dealers nationwide. But the pressure that is putting on retail workers who must face the public has become something of a curse.

At Osoyoos Home Hardware in Osoyoos, B.C., co-owner Frances Sologuk notes that throughout the COVID-19 crisis, the store remains open given its status as an essential service, but the toughest thing for her has been providing support for her employees. “The stress on my staff is probably one of the hardest things to witness,” she notes.

Amanda Fancy, co-owner of a Home Hardware and Furniture in Bridgewater, N.S., is likewise wrestling with the impact the pandemic is having on her employees, many of whom have opted to stay home and collect Employment Insurance. “We’re struggling to find staff,” she says. “I’ve always had an appreciation for our staff, but that appreciation level has gone up 150 percent for those who have stayed on.”

Sologuk at Osoyoos Home Hardware says her employees are likewise working beyond the norm, servicing customers in new and innovative ways. “We have taken all precautions, like free delivery with no minimums—even if you need a Rogers Chocolates fix. We have the aisles cordoned off and we are doing the shopping for you,” to prevent customers wandering around the store. 

Most recently, the store has ordered wireless terminals from Moneris, “which we should have probably had a long time ago, especially for customers with disabilities,” says Sologuk. “This way we can hand customers the terminal or bring it to their car —kind of like in the restaurants.” She says the new system will make curbside pickups easier.

For Fancy at Gow’s, she has been personally working the checkout, even as she worries about the larger issues of financing the business through the downturn in sales, which have tumbled by 25 percent during the crisis. Exactly a year ago, she moved her business into a larger, 60,000-square-foot store with furniture and appliances. And large-ticket items like those aren’t on the top of most people’s lists right now.

“Certainly, this will change the way we do business. We’ll be leaner and meaner,” she says ruefully. “And we’ll pay it forward to the customers and staff who got us through this. But we’ll prepare a long-term plan as well.”

The Wooster Brush Company’s board of directors has elected Ben Maibach to succeed Bill Fagert as president, effective May 1. Since joining Wooster Brush in 2014, Maibech has served as vice president of national accounts, held a seat on the company’s board of directors and most recently led the team overseeing Wooster’s rebranding efforts. Fagert, who has been president since 2010, will become vice chairman of the board of directors.

DID YOU KNOW...

... that back issues of our sister publication, Hardlines Dealer News, are now available at no charge? Yup, now in its third year of publication, this monthly e-newsletter has become a valuable tool for dealers and managers across the country. Click here to start browsing now!

RETAILER NEWS

VAUGHAN, Ont. — TIMBER MART has announced the addition of Montreal-based RenoRun Inc. to the buying group. RenoRun is a building material delivery business that offers residential contractors and builders 20,000 building material products through its mobile app. It delivers to job sites on demand or in advance throughout the Montreal, Toronto and Austin, Texas areas. Launched in 2017, the company employs more than 100 staff members, including 60 at the Montreal headquarters.

BURLINGTON, Ont. — IKEA Canada will provide approximately $2.3 million in home furnishings to support vulnerable communities impacted by the COVID-19 pandemic. It will also support those leading COVID-19 relief efforts by making contributions to medical services and facilities, including donating 230,000 N95 masks to local hospitals and healthcare centres.

TORONTO — Canadian Tire Corp. has launched a $5 million Canadian Tire COVID-19 Response Fund to help Canadian communities. This fund consists of two donations of $1 million each to the Canadian Red Cross and United Way/Centraide Canada, as well as up to $3 million in personal protective equipment (PPE) and essential products from across Canadian Tire’s family of companies.  

SUPPLIER NEWS

TORONTO — Wolf Gugler Executive Search is offering one-on-one and group outplacement services to allow employers who have laid off personnel due to COVID-19 to assist in their new job searches. The firm will meet with professionals through virtual means such as videoconference and email. (You can reach Wolf directly by emailing him; or check out his website here.)

WASHINGTON — 3M Co. says it has reached an agreement with the U.S. federal government to continue supplying Canada and other countries with N95 masks. The Minnesota-based conglomerate reacted with dismay last week when U.S. President Donald Trump invoked an emergency statute to divert goods bound for export to the domestic market. Since then, however, 3M and the White House “worked together to ensure that this plan does not create further humanitarian implications for countries currently fighting the COVID-19 outbreak,” the company announced.

RICHMOND HILL, Ont. — Liteline Corp., a family-owned lighting manufacturer for architectural, commercial, industrial and residential spaces, has named Lande Associates Inc. to represent its lines across southwestern Ontario. 

QUEBEC CITY — The Quebec government has unveiled a new website, Le Panier bleu (Blue Basket) to facilitate online orders to Quebec businesses. Though not transactional, the site serves as a searchable clearinghouse directing shoppers to Quebec’s online merchants.

ECONOMIC INDICATORS

March’s housing starts declined by 7.3 percent to a seasonally adjusted annual rate of 195,174 units, from 210,574 units in February. The SAAR of urban starts decreased by the same percentage to 182,553 units. Multiple urban starts decreased by 13.4 percent to 124,073 units in March while single-detached urban starts increased by 8.8 percent to 58,480 units. Rural starts were estimated at a seasonally adjusted annual rate of 12,621 units. (CMHC)

NOTED

To help independent retailers who are dealing with uncertainty during the ongoing public health emergency, the North American Retail Hardware Association (NRHA) is waiving membership fees for the months of April and May. Retailers can now access the NRHA’s 10 online training courses at no cost. Click here for an overview of the courses and here to register for free.

OVERHEARD...

“The only problem is that people don’t understand just how hard this is on the retail workers who have been trained to give good customer service and are now working in this ‘twilight zone’ of unprecedented times.”
—Frances Sologuk, co-owner of Osoyoos Home Hardware in Osoyoos, B.C., reflecting on the impact of the current COVID-19 crisis on her staff.