BOUCHERVILLE, Que. — Nick Malone, formerly senior director of central merchandising for Lowe’s Canada, has been promoted to vice president merchandising for the Lowe’s banner at Lowe’s Canada.

He replaces Alan Blundell, former divisional vice president, merchandising for Lowe’s big box stores and Reno-Depot. Blundell has moved over to head up PetSmart Canada as president of the Burlington, Ont.-based pet food and products retailer.

Malone reports to Igor Halencak, EVP central merchandising and global sourcing for Lowe’s Canada. Malone joined Lowe’s as the company’s supply chain director when it first set up shop in Canada, spending almost 11 years there. After a brief stint at Canadian Tire as assistant vice president for gardening and outdoor tools, he returned to Lowe’s Canada as senior director of central merchandising.

The news follows the announcement earlier this month by Lowe’s Canada that it would close its Mississauga, Ont., offices, affecting up to 200 people there. A spokesperson for Lowe’s Canada confirms that some jobs will be transferred to the Boucherville head office, as this will allow all teams to be regrouped at the same location.

NIAGARA-ON-THE-LAKE, Ont. — According Denis Melanson, chair of the Building Material Council of Canada (BMCC), 25% of the workforce in lumber and building materials is age 55 and over. And that, he says, should serve as a wakeup call for the entire industry.

Speaking at the 23rd annual Hardlines Conference, held last month, he explained to a group of 150 dealers and suppliers that BMCC has rallied sponsor support and invested in recruitment tools to woo a new generation of workers to enter the world of building materials. The mandate is to serve both the retail and the supplier sides of the industry with a job board online, at buildingsupplycareers.ca. Since its launch in June 2018, it has become the “go-to site” for the industry, says Melanson.

A video on the BMCC site aimed at the 18-44 demographic spotlights the dynamic, people-oriented aspects of working in the building materials industry. It is filled with clips and sound bites from retail employees and warehouse workers who’ve thrived in the industry. The video has been viewed 150,000 times (It’s actually a very cool video! —Editor) and Melanson notes that 27% of the site’s followers are women.

The BMCC brings together the Atlantic Building Supply Dealers Association (ABSDA), the Lumber and Building Materials Association of Ontario (LBMAO), the Western Retail Lumber Association (WRLA) and the Building Supply Industry Association of British Columbia (BSIA). It represents more than 2,400 members from the retail, wholesale and vendor sides of the business.

TORONTO — Canadian Tire Corp. may be getting ready for more acquisitions. It has just completed a public offering, through its CT Real Estate Investment Trust, of 21,115,000 units of CT REIT. The offering consisted of a secondary offering of 15,936,000 Units by Canadian Tire and a treasury offering of 5,179,000 Units by CT REIT, for gross proceeds of $200 million and $65 million, respectively.

The company says part of the proceeds from the offering will be used to support its continued investment in Canadian Tire’s brand initiative, which is an important part of the retailer’s online strategy. Canadian Tire has made clear its intentions to continue investing in its own brands, which could well include further acquisitions like the $985 million takeover of Helly Hansen it made in May of this year. Exactly a year earlier, it acquired the Canadian license to the Paderno brand of cookware.

The net proceeds of the treasury offering will be used by CT REIT to fund previously announced acquisitions and the ongoing development of existing properties, and to pay down its credit facility. Canadian Tire Corp. intends to remain the majority unit holder of CT REIT over the long term.

OTTAWA — After strengthened activity in 2016 and 2017, housing starts in this country have been slowing through 2018. And that trend is forecast to continue into 2020, says a new report. However, reno spending is expected to punch above its weight, says one forecaster.

According to the latest housing report from Canada Mortgage and Housing Corp., housing starts will slow down gradually over 2018 to 2020, from the 10-year high recorded in 2017. The slowdown will be “more in line with a moderating economic outlook and demographic conditions,” particularly as income and job growth slow, the report says.

The latest numbers buck this trend, but they’re not expected to maintain. Housing starts were at a rate of 205,925 units seasonally adjusted in October, up from 189,730 units in September. “Over our forecast horizon, housing starts are projected to decline from elevated levels recorded recently,” says Bob Dugan, chief economist for CMHC.

A more important indicator for much of the retail home improvement industry is the renovation market. Home fixups, improvements and repairs represent a much larger market than new housing, says Peter Norman, vice president and chief economist at Altus Group, an economic and market consultancy that focuses on housing. Renos were strong, he says, running at about 8% growth nationally year to date. “Overall, we’ve seen reno spending growing above the rate of other growth.”

The reno market is worth $78 billion, while spending on new housing weighs in at $58 billion. He expects growth of at least 4% for reno spending over the next few years. “But we may be challenged,” he cautioned, citing a slower forecast for GDP growth this year, rising interest rates and a sluggish economy.

A big driver of renos and repairs can be measured in sales of existing homes, and these are slowing, as well. Sales of existing homes edged back by 1.6% in October, according to the Canadian Real Estate Association. While activity is still stronger compared to the first half of 2018, it remains below monthly levels recorded from early 2014 through 2017.

Steve Figueiredo is the new field operations manager for The Reset Team, based in Toronto. He reports to Bob Arora, president. Before joining The Reset Team, Figueiredo spent almost 13 years at ServRite Inc.

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MOORESVILLE, N.C. — Lowe’s Cos. is looking for a buyer for its Iris Smart Home platform as part of a “strategic reassessment”, which sees the company focusing on its core business. Along with its exit from the home automation business, Lowe’s has also closed its Orchard Supply banner and will do the same to all Lowe’s stores in Mexico. It’s also selling off its Alacrity Renovation Service. All told, the changes are expected to save the company $280 million in costs tied to leases, inventory and severance packages.

HOFFMAN ESTATES, Ill. — Sears plans to sell 505 stores early next year in a bid to preserve the brand, the Dallas Morning News reports. The company, under bankruptcy protection, has told the court it is cutting costs but needs help from mall landlords, from whom it hopes to secure rent cuts. The court documents were filed just after a Black Friday that saw fewer sales for Sears than last year.

SUPPLIER NEWS

DELSON, Que. — Goodfellow Inc. has expanded its assortments with the addition of Fortress Railing Products. The national wholesaler of specialty building products will distribute Fortress’s new Al13 Home Aluminum Railing series to Canadian building materials dealers. “Fortress Railing is excited about our new relationship with Goodfellow and the opportunity to work with them to reach new customers and expand our presence in the Canadian market,” said Chris Jones, general manager of Fortress Railing Products.

COURBEVOIE, France — Saint-Gobain says it will accelerate its ongoing asset sale and revamp its structure to grow its margins and trim costs. The company’s three divisions and 14 delegations will be consolidated into five reporting units, generating some €250 million ($378 million) in savings. At the same time, Saint-Gobain has announced the appointment of Benoit Bazin as COO and Sreedhar Natarajan as CFO.

ST. LOUIS — Energizer has completed its $1.25 billion acquisition of Spectrum Brands’ Global Auto Care group, the division that makes Armor All and STP brands. The news comes as Energizer’s purchase of Spectrum’s battery business nears completion, expected early in the new year. Energizer’s COO told investors this month it can boost the Global Auto Care group’s performance.

ECONOMIC INDICATORS

Retail sales edged up 0.2% to $50.9 billion in September following a relatively flat August. The gain was led by food and beverage stores and, to a lesser extent, general merchandise stores and motor vehicle and parts dealers. Sales were down at gasoline stations, and building material and garden equipment and supplies dealers saw a decline of 1.9%. Excluding gasoline stations, retail sales rose 0.4%. (StatCan)

U.S. sales of new single-family houses in October were at a seasonally adjusted annual rate of 544,000. This is 8.9% below September’s estimate of 597,000. (U.S. Commerce Dept.)

“We expect resales in 2019 and 2020 to remain below recent peaks, while prices should reach levels that are more in line with economic fundamentals, such as income, job and populations growth.
—Bob Dugan, chief economist for CMHC, on the agency’s latest housing market outlook.

Michael McLarney is heading down to Chicago this week for the North American Retail Hardware Association’s State of Independents Conference. This one-day, interactive event delivers proprietary research, live feedback, networking opportunities and advice from high-impact retailers on how to work more closely with the independent retail channel. Hardlines proudly represents the NRHA in Canada.