Hardlines Weekly Report kicks off each year with a review of the past year’s most-read stories. Here’s what interested you, our Faithful Readers, most in 2023.

RONA inc. dominated headlines during the year, as the effects of its takeover by a U.S. private equity firm continued to reverberate. Sycamore Partners completed the acquisition of the former Lowe’s Canada business in February 2023, resurrecting RONA as a stand-alone firm.

With the connection to Lowe’s Cos. in the U.S. severed, RONA inc. began to phase out the Lowe’s banner. A new RONA+ banner, announced in June, was introduced to cover big box stores in Canada that previously operated under the Lowe’s and RONA Home & Garden names. In addition, a few of its big box stores have either closed their doors already or are in the process of winding down.

The first round of conversions took place in southern Ontario in July, with 10 former Lowe’s stores adopting the new brand. Several subsequent waves followed, and as 2023 ended just a handful of conversions were still in progress, mainly in Alberta but also two in B.C.

In October, RONA grew through an acquisition by its pro-focussed Dick’s Lumber division. ZyTech Building System, based on Balzac, Alta., makes and distributes building components and engineered wood products. The purchase is meant to allow Dick’s to capitalize on the developer and builder market in the western provinces.

Over at BMR Group, the biggest news of the year was the announcement that the company was joining the A.R.E.N.A. Alliance. While the impact may not be felt right away domestically, the partnership will open doors for BMR on the private-label side. As the sole Canadian partner of the European-based buying organization, BMR now has access to products that the alliance sources from overseas, such as outdoor living products from East Asia. The deal was the fruit of a two-year negotiation between BMR and A.R.E.N.A.

BMR’s VP of merchandising, Charles Grégoire-Béliveau, explained to Hardlines that the move would help to level the playing field in procurement. “When we look at the overall market, we see the biggest players getting bigger. We were looking at joining something bigger so we can compete better in certain categories.”

In November, BMR held its annual buying show and gala in Quebec City, and Hardlines was on the scene. CEO Alexandre Lefebvre told us, while efforts for expansion continue in Ontario and New Brunswick, the company is setting its sights further afield long-term. “The rest of Canada is still very much on the radar. Realistically, it’s going to have to come through acquisitions, so if there’s a good opportunity that presents itself, we’re going to be looking.”

Speaking of acquisitions, Canadian Tire Corp. made the news in May when it announced it was taking over 10 leases from Bed Bath & Beyond Canada. The home décor retailer went out of business in February and filed for bankruptcy in April. CTC paid $1.6 million to acquire the leases, six of which were to be used as new locations for existing Mark’s stores.

Meanwhile, TIMBER MART opened a new LBM distribution facility in Winnipeg in October. It provides weekly deliveries to dealer-members across Manitoba, Saskatchewan, and northwestern Ontario. The DC joins TIMBER MART’s existing facilities in Langley, B.C.; Mount Forest, Ont.; and St-Nicolas, Que.

(We want to hear from you! What kind of coverage would you like to see more of 2024? Get in touch with our editorial team at steve@hardlines.ca or geoff@hardlines.ca.)

2023 saw lots of movement among industry leaders in retail home improvement

Personnel changes are always hot stories for our readers. This year was no exception: in 2023, Home Depot in Atlanta saw the departure of its top merchant, Jeff Kinnaird. The Canadian was president of The Home Depot Canada before moving to the parent company’s head office in 2020 as EVP of merchandising. Kinnaird has since returned to Canada.

In March, just a month after the sale of Lowe’s Canada to Sycamore Partners closed, president Tony Cioffi was replaced by Garry Senecal, a former Loblaw exec, as interim CEO. Three months later, Andrew Iacobucci took over from Senecal as CEO of RONA inc. Prior to joining RONA, Iacobucci was EVP and chief commercial officer at US Foods, a food distribution company in Chicago. Before that, he spent 10 years at Loblaw Cos. The appointment capped further layoffs and restructuring across the RONA organization in June.

The past year had its share of losses among industry personnel. One of the highest-profile of these passages was the death of Patrick Morin, the founder of the retail home improvement chain of the same name. He died on Dec. 2 at the age of 96. In 1960, he and his wife, Denise Benny, opened their first store. Since then, the Patrick Morin chain has since grown to be one of the largest privately-held home improvement retailers in Canada, with 22 locations in Quebec.

Meanwhile, Home Hardware Stores Ltd. began the year with a return and ended it with some departures. In January, Home Hardware named Jason Hamburger as dealer development manager. Though he had most recently been with BMR Group, Hamburger was already a familiar face for Home, where he had been a product manager from 2002 to 2017.

Fast-forward to December, when we began getting news of executives leaving Home Hardware. Early in the month, Michael Gawtrey, the director of loyalty and CRM, retired. Then, just before Christmas, the company informed dealer-owners of the departure of Marianne Thompson after a five-year tenure (see story below). Right after Christmas, the company’s communications director, Jessica Kuepfer, also departed.

Marianne Thompson, Home Hardware’s number-two exec, departs

Marianne Thompson has left the building: the former chief commercial officer at Home Hardware Stores Ltd., considered number two at the company, concluded her role there effective Dec. 22.

The news was revealed to the industry in a letter to Home Hardware vendors that went out 10 days before Christmas. Signed by Thompson, it expresses “a mix of excitement and nostalgia” over the move and adds that she is leaving “for new opportunities.”

The letter goes on to share a list of accomplishments at head office under Thompson’s leadership (she reported directly to Home Hardware president and CEO Kevin Macnab). “We developed a category management program, implemented a new LBM negotiation process, and introduced the reimagined Homecoming event [a new look and location for its dealer market]. This year, we launched a new loyalty program, improved inventory and service levels and are making progress with our in-store system solution. We have produced strong promotional sales and have just celebrated the ISS St. Jacobs Home Hardware store Go-Live.”

Thompson joined Home Hardware exactly five years ago, at the beginning of 2019, after serving as SVP of North American sales at Jeld-Wen Inc. She joined as VP, merchandise LBM. Her appointment was part of Macnab’s plans to realign the procurement side of the business. Thompson quickly ascended to the top merchant role before moving to her latest role as chief commercial officer. She was also considered the face of the company to the industry, especially the vendor community.

Thompson was integral to the execution of Macnab’s vision to change the focus of the company and she oversaw the creation of a new merchandising team at Home Hardware. Since its inception, Home Hardware had been squarely focused on the member-dealers, operating as a wholesaler to satisfy their merchandising and business needs. Under Macnab, the company has been shifting that focus to the end customer, and repositioning as a retail company.

In her letter to the vendors, she said, “I want to extend my deepest appreciation to our esteemed Supplier-Partners for your unwavering confidence and commitment to Home Hardware as you have played an important role in Home’s success. Thank you for your support and I am proud to have been a part of your journey. I know I can count on you to keep Home Hardware moving forward both during and after this transition.”

At BMR Group, Simon Gouin has been promoted to the position of vice-president, business development, effective Jan. 8, 2024. Gouin joined BMR Group in 2021 as senior director, business development – eastern Canada. He brings over 17 years of business development experience in the industry, including nearly a decade managing hardware stores. In his new role, he will oversee the expansion of BMR Group’s network in eastern Canada and maintain relationships with existing dealers. Gouin will continue to report to André Lavoie, BMR’s executive vice-president, shared services.

Liz Rodbell has rejoined Hudson’s Bay as president and CEO, effective Dec. 1. Rodbell previously served as the retailer’s president from 2013 to 2017, being appointed to the top position serving as chief merchant. She replaces Sophia Hwang-Judiesch. Under Rodbell's previous tenure, Hudson's Bay's sales rose 22 percent.

Aluminum and glass railing products maker Vista Railing Systems Inc., based in Maple Ridge, B.C., is expanding its in-market sales team. Jim Pastway has been named territory sales manager for Ontario. Jaime Valencia is now territory sales manager for the U.S. West.

DID YOU KNOW...?

… that, as a Subscriber-Member of Hardlines Weekly Report, you get one free Classified Ad every year? Hardlines Classified Ads are read by professionals right in the home improvement industry, which means they get results. Click here to get a free quote on your next Hardlines Classified Ad! And if you are looking for your next placement, you can take advantage of our free Resumé Service. Post your resumé on our website at no charge. Click here for more details. Remember, your next ad is on us!

RETAILER NEWS

Castle Building Centres Group has a new member. Jianyong Edmund Liu’s store, St. Charles Hardware, has been servicing the community of St. Charles, 60 kilometres east of Sudbury, Ont., since 2010.

Giant Tiger Stores has opened a new location in Vaughan, Ont., just north of Toronto. A grand opening at the 18,875-square-foot store was held on Dec. 2.

Montreal-based Dollarama Inc. reported Q3 profits of $261.1 million, up from  $201.6 million a year ago. Sales rose to $1.48 billion from $1.29 billion. The discount retailer attributed the increase to the growth of its store network and to an 11.1 percent spike in comp sales.

Mastermind Toys, the specialty toy and children’s book retailer, is being acquired by Unity Acquisitions Inc., a company owned by Canadian retail pioneers Joe Mimran, Frank Rocchetti, and David Lui. Unity also owns Kit and Ace and Casca Footwear. Under the terms of the asset purchase agreement, it will purchase 48 of the 66 Mastermind Toys store locations.

Costco Wholesale reported Q1 adjusted earnings of $3.58 per share, while revenues of $57.8 billion were up by six percent year-over-year. Comp sales were up by 3.8 percent overall but rose by a full 6.4 percent in Canada. In e-commerce, sales grew by 6.3 percent.

SUPPLIER NEWS

Trex Co., the composite decking and railing company, recently earned three high-profile accolades for its ongoing commitment to sustainability. Lowe’s Cos. honoured Trex with its 2023 Sustainability Award, the company was named one of the 100 Best ESG Companies for 2023 by Investor’s Business Daily, and last month it was ranked by Newsweek magazine as one of America’s Most Responsible Companies.

Prosol Inc., a leading distributor of flooring installation products, has been appointed as the exclusive distributor of Barricade Subfloor Products’ subfloor lines in Canada.

Regal ideas has won gold at the 19th Annual Davey Awards, an international award which honours outstanding creative work from agencies worldwide. Regal, a Canadian firm that makes aluminum and glass railing products, won the award for its “Power Strategies” campaign.

Stanley Black & Decker has reached an agreement to sell its attachment and handheld hydraulic tools business, Stanley Infrastructure, to Swedish mining equipment manufacturer Epiroc. The Oregon-based division makes excavator attachments and handheld tools sold under brands such as LaBounty and Paladin. The cash transaction is expected to close in the first quarter of 2024.

ECONOMIC INDICATORS

The annualized pace of housing starts declined by 22 percent in November to 212,624 units. The rate of urban starts fell 23 percent, with 195,363 units recorded. Single-detached urban starts decreased by seven percent to 44,066 units. Rural starts were estimated at a rate of 17,261 units. (CMHC)

Sales of existing homes dipped 0.9 percent in November from the previous month. It was the smallest decline since July. The actual (not seasonally adjusted) number of transactions came in just 0.9 percent below November 2022. (Canadian Real Estate Assoc.)

NOTED

The latest instalment of our podcast series, What’s In Store, goes online this week and addresses some of the changes dealers should be aware of concerning building codes. In this bilingual episode, we talk with Lisa Bergeron, director of business development and government affairs at Jeld-Wen. She shares with us how the harmonization of building codes across the provinces and territories is affecting the window business, and how Jeld-Wen’s product offering is responding. Sign up now to get updates about the latest free podcasts in your inbox!