SPECIAL REPORT — As dealers cope with how to manage their customers and staff in their local markets, retail leaders across the country are coping with the concerns of those dealers in a more generalized way.

From the outset, TIMBER MART President and CEO Bernie Owens has stressed the importance of maintaining the safety of staff. That includes considering how stores manage fewer hours or less traffic. But there’s more that must be taken into consideration. Decreasing hours for everyone, rather than laying off some workers so they can apply for employment insurance, could make more sense than decreasing the income of the entire team. Their overall well-being as they cope with isolation, reduced family income and kids stuck at home must be considered, Owens stresses.

Steve Buckle, CEO of the Sexton family of companies, which includes Winnipeg-based Sexton Group, notes that dealers are now facing issues that go beyond sanitation in their stores. The logistics of maintaining every aspect of a safe work environment are increasingly difficult. “The challenge becomes, how do you keep people safe,” Buckle notes. That process may not be overwhelming on its own, but it does require companies to implement a lot of smaller details “to live up to a commitment to safety.”

“A big challenge is that the dealers have to manage their trucks,” he says by way of example. “Managing the safety of staff in that kind of scenario is tough and raises all kinds of questions about best practices. How do you deliver to occupied homes?”

That concern, at least, is based on a renovation market that keeps going. But his commercial dealers, he notes, face the possibility that new construction will dry up as workers refuse to show up for work and governments shut down major projects. He says many of these dealers are still busy, as everyone works to get projects completed. “But the volume is bigger than the market would dictate.” He expects to see this drop off over the next several days.

Owens at TIMBER MART agrees. “Some job sites are starting to close down now,” he observes. “Workers are getting reluctant to show up on the site, and there are some supply issues.” He has also seen commercial dealers, especially in Ontario, face slowdowns, while the drop-off in Quebec has been even more dramatic after the provincial government there put a halt to some major construction projects.

Owens remains concerned about the financial health of independent dealers as the crisis drags on. “I’m really concerned about the industry over the long term.”

When it comes to the home reno market, Buckle remains hopeful, especially as people stuck at home begin to invest more in their living spaces. “I think there’s a renovation opportunity.”

But overall, he admits the country faces some tough economic challenges. “How deep and how long are we heading into a down cycle? And it’s pretty clear that this is happening. How do we ramp up to deal with that?”

Buckle is optimistic about the situation longer term, however. He anticipates that business will pick up again by as early as June, especially given the positive signs in the economy before the COVID-19 pandemic struck. “Aside from Alberta, things were looking pretty good ahead of this,” he says, noting that a pent-up demand will need to be met.

“I should say the second half of this year is going to be pretty good, because the first half will have been down so much.”

As some stores stay busy, big boxes ramp up COVID-19 safety measures

TORONTO — Canadians are staying home, except when they have to buy groceries or walk the dog. Now, add to that list the need to buy home improvement products.

Isolation and extra time have created the opportunity for many consumers to fix up their homes. And that has resulted in busy parking lots and steady store traffic at Canada’s large-format home improvement retailers.

But that traffic can put customers and staff at risk. Both Home Depot Canada and Lowe’s Canada have taken measures to increase sanitation with increased cleaning of surfaces and workspaces. They are also working to maintain physical distancing among customers.

Home Depot Canada is encouraging customers to limit store visits when possible. When they do show up at a store, customers find that a limit has been put on the number of people allowed inside at a time. Physical distancing signage with stripes marking the floor area are now in the stores to help everyone follow best practices.

As the situation continues to change from day to day, Home Depot Canada has been adjusting its policies accordingly. Most recently it has added these new measures:

• Curbside pick-up: Online orders made for in-store pick up will now be available for collection in designated parking spots.
• Van and large equipment rentals: Until further notice, Home Depot Canada is no longer renting vehicles or large equipment.
• Store checkout: Plexiglass screens are being installed in all stores to help with physical distancing.

In addition, associates who are 65 or older have been given more paid time off. Seniors employed on a full-time hourly basis received another 80 hours of paid time off in addition to the 80 already given to all full-time workers. Part-time hourly associates who are 65 or older received an additional 40 hours of paid time off, bringing up their total to 80 hours.

Like its competitor, Lowe’s Canada has made the health and safety of its employees—and customers—a priority. Its corporate stores, under the Lowe’s, RONA and Reno-Depot banners, have enhanced cleaning efforts and issued clear physical distancing guidelines. The stores have also implemented measures to ensure that cashiers and front-end teams are regularly cleaning their work areas and registers after each customer interaction.

Lowe’s in the U.S. has further committed $25 million to support the needs of its associates, customers and communities. This includes a $10 million donation in essential protective products to medical professionals on the frontlines of the health crisis. Nearly $4.5 million has been marked for Lowe’s stores in the U.S. and Canada to donate products in their communities.

QUEBEC CITY ― The independent retail chain Canac recently held the grand opening of its 30th store. It’s located in Prévost, Que.

According to Jean Laberge, president of Canac, this latest store is modelled after the chain's Notre-Dame-des-Prairies store, which opened in May 2019. That location represented an investment of $8 million and employs 90 people. It was also Canac's first store in the Lanaudière region of Quebec.

The main structure of the Notre-Dame-des-Prairies store is 42,000 square feet in size, with 28,000 square feet of selling space. Another building, which serves as the warehouse and is unheated, is 31,500 square feet in size. Laberge notes that the latest store, following the mould of its predecessors, represents no major changes in concept or merchandising.

However, that retail formula has been working well for Canac. The company has been expanding aggressively in recent years, adding about one store per year, and Laberge expects this kind of growth to continue. Construction is slated to begin on a new location on Montreal’s south shore in La Prairie, Que., he says. That store will be at the corner of Autoroute 30 and Route 104, between Candiac and Brossard.

Last fall, Canac acquired a one-million-square-foot property adjacent to its Drummondville distribution centre. According to Laberge, construction will begin there this fall on a large warehouse to handle distribution of the company’s building materials, including plywood, foam and all wood products.

The expansion of Canac’s back-end support keeps in step with the company’s expansion of its retail footprint. The chain has even made overtures to entering the Ontario market. In October 2018 Canac secured property in the eastern Ontario town of Hawkesbury. Laberge expects construction there to begin in 2021.

OTTAWA ― Figures from Statistics Canada indicate that total investment in building construction for the year increased by 3.4 percent to $181.8 billion. Investment increased in six provinces, with substantial gains in Quebec (+10.7 percent to $38.6 billion), British Columbia (+10.3 percent to $32.6 billion) and Ontario (+1.8 percent to $71.7 billion).

Prince Edward Island reported the highest percentage growth in 2019, increasing 50.9 percent to $851.7 million. The rising population contributed to a significant increase in the residential sector, in both multi-unit investment (+162.7 percent to $199.3 million) and single-unit investment (+34.8 percent to $475.0 million).

Construction spending in Alberta fell in 2019, dropping $2.5 billion from 2018. Declines in the residential sector constituted the majority of this, down $2.1 billion to $11.7 billion, while non-residential investment declined by $400.6 million to $8.9 billion. Nationally, investment in residential construction increased 2.3 percent to $123.9 billion in 2019. Multi-unit investment continued to grow, up 11.8 percent to $62.6 billion, while single-unit investment declined, down 5.9 percent to $61.3 billion.

Increases in Ontario, British Columbia and Quebec led investment in multi-unit to surpass single-unit construction for the first time on an annual basis. Increased investment in apartments (+12.7 percent to $50.2 billion) and row homes (+9.8 percent to $8.2 billion), along with decreased investment in single homes (-6.5 percent to $57.5 billion), broadly reflected a national shift toward the intensification of urban areas.

Dan Giansante is the new director of marketing, R&D and regulatory for Rust-Oleum Canada. He was most recently director, marketing for ROCKWOOL North America.

James Feere has joined L.S. Starrett as the new Canadian sales manager. He comes over from Karcher North America, where he was director of sales, Canada.

DID YOU KNOW...

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RETAILER NEWS

MISSISSAUGA, Ont. ― Calgary’s Remuda Building Ltd. is the newest independent retailer to join the Castle Building Centres group. Remuda was founded in 2006 by owner and CEO Steve Schouten, who had been looking to expand his product offerings. “Our goal has always been to create a sustainable business that will be around for years to come, and one that our local community can trust,” he said. “Castle was the buying group that best shared our vision of growth and longevity.”

QUEBEC CITY ― Most Quebec businesses, including hardware and grocery stores, will close on Sundays during the month of April so that strained workers can have a break, Premier François Legault has announced. Gas stations, pharmacies and convenience stores will remain open on Sundays, while restaurants will continue to offer take-out and delivery services.

CHICAGO — True Value Co. is converting parts of its Cary, Ill., paint manufacturing facility to handle production of hand sanitizer to help combat the COVID-19 pandemic. After registering with the U.S. Food and Drug Administration, the company will produce hand sanitizer alongside other essential products like hand soap, degreasing cleanser and all-purpose cleaners. The first several thousand gallons will be donated to True Value hardware stores across the U.S. for use by its employees while serving customers. The product is scheduled to be shipped to stores in early to mid-April.

MONTREAL ― Dollarama’s Q4 sales increased by 0.5 percent to $1.07 billion, while operating income grew 1.4 percent to $266.1 million. Net earnings increased by 7.5 percent to $0.57 from $0.53 a year ago. For the fiscal year, sales rose by 6.7 percent to $3.8 billion with operating income up 2.7 percent to $868.1 million. Comparable store sales rose two percent for the quarter and 4.3 percent for the year.

QUEBEC CITY ― Canac is responding to concerns about a shortage of medical supplies with a donation of $90,000 worth of equipment to health care institutions. A major benefactor of the gift is Centre hospitalier universitaire de Québec, a network of three teaching hospitals linked with Laval University in Quebec City.

SUPPLIER NEWS

MONTREAL — The management of Richelieu Hardware will hold its annual general meeting as scheduled on April 9 at 10:30 a.m. However, in accordance with government health guidelines and in light of the need for physical distancing in respect of the COVID-19 virus, the company has asked its shareholders not to attend in person, but to participate by voting by proxy in advance of the meeting.

ECONOMIC INDICATORS

Total construction spending in the U.S. for February reached $1,366.7 billion, 1.3 percent below January’s level of $1,384.5 billion. (U.S. Commercial Dept.)

NOTED

Businesses and non-profit groups whose revenues fall by 30 percent or more as a result of COVID-19 will qualify for a wage subsidy of 75 percent, Prime Minister Justin Trudeau has announced. Eligibility does not depend on an organization’s number of employees. The subsidy will cover up to 75 percent of salaries on the first $58,700, a weekly payment of up to $847.

OVERHEARD...

“We can only succeed working as a team.”
—Bernie Owens, president and CEO of TIMBER MART, who has been busy fielding a variety of concerns from his members in recent days.

“To really help is to recognize that we’re all in the same boat, that we all have a role to play. I hope this gesture will inspire others to put their shoulders to the wheel in these exceptional times.”
— Canac President Jean Laberge, on his company’s donation to support health care institutions working on the front lines of the battle to combat the COVID-19 pandemic.