The past year was one of unique challenges and opportunities, and for many those forces were felt at both a professional and personal level. Here is a roundup of news stories that highlighted the business side of 2023.

One company managed to bookend the news cycle for the year. Early in January, Lowe’s Canada announced the appointment of Tony Cioffi (shown here at the 2022 Hardlines Conference) as president. It was a return to the role for Cioffi, who had served as interim president following the departure of Sylvain Prud’homme in the fall of 2019.

Fast-forward to November, when Lowe’s announced it was selling its entire Canadian business to Sycamore Partners, a New York-based private equity firm. Lowe’s Canada had performed solidly, but shareholders always struggled to understand how its distinctive multi-banner strategy fit into the wider Lowe’s business. Lowe’s Cos. CEO Marvin Ellison pitched the sale as a way of “simplifying” the company’s business model.

Lowe’s rival The Home Depot also announced a new leader early in the year. Ted Decker’s appointment as CEO, effective March 1, was made public toward the end of January. Decker, who took over from Craig Menear, had been with the business for more than 20 years. He had succeeded Menear as president in the fall of 2020, while also being named to the newly created role of COO. Menear stays on as chairman of the board.

The year also saw ownership changes on the buying group front. In June, TORBSA announced it was merging into AD Canada (Affiliated Distributors). The deal created a new division: AD Canada – Building Supplies, headed up by TORBSA president Paul Williams.

In October, Sexton Group’s parent company sold a majority stake to a private investor group. The group, led by PFM Capital, acquired 51 percent of the Sexton Family of Companies (SFOC). Under the agreement, SFOC chair Brian Kusisto retained a seat on the board, while Sexton Investments kept a minority interest in the business.

Home Hardware made headlines throughout the year with a series of senior appointments and promotions. In the spring, it named Carol Crystal as VP, merchandise LBM. Crystal had joined the company as director, merchandise hardlines, in the summer of 2020 after a career that included positions at Hudson’s Bay Co. and Lowe’s Canada.

That promotion was followed by a plethora of appointments in the fall. Marianne Thompson was promoted to the newly created role of chief commercial officer, while retaining her existing duties as chief merchandising officer.

The same month, the company announced a major spate of new VPs and directors, including both external hires and internal promotions. It wooed Bernie Gauthier from Taiga Building Products to serve as its VP of retail operations. John Pierce, hitherto VP of store operations at Loblaw Cos., was recruited as Home’s VP, retail business development.

At the same time, Chris Marinis was promoted to the role of VP, information technology; Melanie Beatty to director, e-commerce; Kristi Stemmler to director, brand management; and Chris Parsons to senior director, omni-channel marketing.

Personnel changes were also in the news at BMR. In June, Charles Grégoire-Béliveau was promoted to the post of vice president, merchandising. He joined BMR in 2016 as director, purchasing, for corporate stores before being named senior director, merchandising, in 2020.

At the same time, Antonio Di Pasquale was named chief operations officer. Having joined BMR Group in 2020 as vice president, supply chain and operational excellence, he now has oversight of all of BMR’s operations. Meanwhile, Jonathan Gendreau stepped down as VP of business development, marketing, and customer experience.

TIMBER MART started off the year by announcing additions to its trading team. Nathaniel Boyd was promoted from sales development agent to commodity trader early in January. At the same time, Milynn Bruneau joined the group as a commodity trader for Ontario. In March, TIMBER MART named CGC veteran David Rapini as VP of its commercial division, succeeding Mark Finucane on his retirement.

On the vendor side, there were two key mergers in 2022. At the end of April, Gillfor Distribution Inc. announced its acquisition of AFA Forest Products, solidifying its national reach. At the time, Gillfor explained the two businesses would operate “in parallel until a full operational assessment is completed and a seamless integration can be executed.”

A few weeks later, CertainTeed parent Saint-Gobain announced it had reached a $928 million deal to purchase Kaycan, a Montreal-based manufacturer and distributor of siding products. At the time of the announcement, Saint-Gobain pledged to retain Kaycan’s “locally well-established Canadian distribution.”

Going into 2023, your team at Hardlines will continue to keep you abreast of all the latest developments in the industry. And we love your feedback! If there’s an area of interest that you would like to see covered more, or you have some news to share, reach out to our editors, Steve Payne and Geoff McLarney.

Up close and personal with Home Hardware CEO Kevin Macnab

With just over four years under his belt at Home Hardware Stores Ltd., Kevin Macnab has been the author of big changes at the St. Jacobs, Ont.-based retail company. Despite the changes behind the scenes, Macnab has managed to stay out of the limelight, leaving much of the front-line activity to his executive team. Hardlines had the opportunity to sit with him during the company’s dealer market last fall.

Despite his low profile, Macnab’s own retail roots run very deep. Born in England, he completed a business degree there and worked for some of that country’s top brands. “I trained at Price Waterhouse, London,” he explains, “and then I went to Marks & Spencer.”

Those were the beginnings of a career in retail that started in 1987 and spanned 28 countries around the world, mainly at Toys “R” Us, where Macnab served in numerous countries before his last role there as president, international. This range of experience has given him what he calls “a view of world retailing.”

For Macnab, Home Hardware stands out as another leading retailer. “Home Hardware is just such a great, iconic Canadian brand. It’s such a great opportunity, it’s such a great company. The dealer-owned model,” he says, “is what makes the difference.”

In his efforts to update the company, he keeps the dealer-owner at the forefront. The transformation the company is undergoing can be done, he says, effectively within the dealer-owned model. “Our objective is to improve the programs and services they have so that they can offer better programs and services to their customer, all within a dealer-owned model of choice.”

A key challenge to that transformation is how to evolve and grow without undermining the strong corporate culture that makes Home Hardware unique. Here, Macnab relies on his expansive retail background. “I look at it as a business person and see that one of the key differentiators, if not the key differentiator, is the dealer model—because there's an entrepreneur in every community across Canada who is a part owner of the company.”

Those dealers are typically an integral part of their respective communities and give back to those communities. “So it's very community-based, and what we do—which was the original [vision] pictured by the founders to build this brand, and the incredible job they did building the brand—was to bring dealers together.” By combining forces, they can compete against the large retail chains.

Macnab invokes his evolving executive team as he stresses the importance of ensuring the company stays focused on dealers’ needs. “What I'm seeking to do with the team is just strengthen those programs and services, and still do it within a dealer choice model,” he says. “Because if we bring the majority of dealers along, we have a lot of volume and the dealer can choose: is it a better program or service or not? And if it is, they'll choose it.”

Data is now more critical than ever to that effort. Macnab notes that sharing sales data from the stores helps Home Hardware in its transformation from a wholesale model—focused mainly on getting product to the stores—to a retail model that focuses on assortments that meet end customers’ needs.“We’re starting to gather that data so that we can look at it and make better decisions, more informed decisions about what programs and services really work. So it's not just about the corporate shipments. It’s getting data on what is selling at point-of-sale. It’s really just sharing information.”

Top retailers make environmental accountability part of their business plans

Top retail companies are responding to the pressures of climate change and activist shareholders to make their companies more environmentally responsible. Those changes are becoming more and more integral to the business plans of every responsible business. And retail home improvement is no exception.

Lowe’s Cos. has announced a new goal to reach net-zero emissions across its value chain by 2050. To reach that goal, it will need to eliminate at least 90 percent of its greenhouse gas emissions and offset whatever remains, effectively driving its emissions footprint to zero, the company says. “Lowe’s takes pride in making homes better for all, and part of doing that is reducing our impact on the environment,” said Marvin Ellison, chairman and CEO, in a release.

This new goal signals a shift from a focus on operational emissions to “scope 3” emissions, which include all other indirect emissions in a company’s value chain. For Lowe’s, most scope 3 emissions are tied to the life cycle of the products the retailer sells. This includes the emissions associated with the manufacture and transportation of the products in their stores, continuing to how those products are used in customers’ homes.

The concept of assessing a product’s footprint based on its entire life cycle was pioneered over a decade ago at RONA under then-CEO Robert Dutton.

The Home Depot announced that 100 megawatts of solar energy purchased from National Grid Renewables at its solar and storage project in Denton County, Tex., will generate the approximate equivalent of nearly eight percent of The Home Depot’s total electricity usage.

Home Depot has pledged to produce or procure 100 percent renewable electricity equivalent to the electricity needs for all its facilities by 2030, expanding the company’s previous commitment of 335 megawatts of renewable or alternative energy by 2025.

“Solar energy is the most abundant energy resource on earth,” said Ron Jarvis, chief sustainability officer for The Home Depot. “With this purchase, we are getting a step closer to our goal to produce or procure 100 percent renewable electricity equivalent to the needs of our facilities. We anticipate about three-quarters of our alternative and renewable energy capacity will come from solar energy by the end of 2023.”

Since 2010, the company says it has cut electricity consumption in its U.S. stores in half. It currently operates rooftop solar farms on more than 80 stores and electricity-generating fuel cells in more than 200 stores.

BMR Group has appointed Marek Jankowski as VP, information technology. He reports to André Lavoie, EVP, shared services. With nearly 25 years of experience in IT, Jankowski joins BMR Group after having worked for over 10 years with TC Media and TC Transcontinental.

Larry Gregoris has been named senior national sales manager, pro channel, for Rust-Oleum Canada. He was most recently with The Hillman Group. Gregoris reports to Lawrence Genga, who has an updated title himself. He is now Rust-Oleum Canada’s director of sales, distribution, and pro channel.

At Kohltech Windows & Entrance Systems, Andy Moss has been appointed sales manager, to manage the growing Atlantic Canada sales team and market. A 21-year veteran at Kohltech, he was previously territory manager for Newfoundland.

Jerome Paul is the new warehouse and logistics manager for DAP Canada, reporting to general manager Frank Profiti. He was most recently with Ab InBev-Labatt Breweries.

Simon Masella has been appointed sales and brand manager for King Canada Inc. He was most recently a regional manager with Stihl.

Orgill has appointed Laura Freeman to fill the newly created position of EVP, human resources, and chief human resources officer. Also at Orgill, Chris Freader has been promoted to SVP, retail services. He was most recently VP, retail services. Myron Boswell is retiring as VP of dealer sales, Northeast. Todd Nowels is moving from management of the Southeast region to succeed Boswell.

At Walmart Canada, Gonzalo Gebara has been named president and CEO, effective Jan. 30, and pending authorization to work in Canada. He joined Walmart in 2000 and was most recently CEO of Walmart Chile.

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Two Gravenhurst, Ont., families will get affordable homes this year thanks to a $70,000 donation from Chamberlain TIMBER MART and Home Building to Habitat for Humanity Ontario Gateway North. That support builds on gifts from the Rotary Club of Gravenhurst and Residents Against Muskoka Poverty. Ground-breaking on the pair of semi-detached, 869-square-foot homes is slated for June.

Lowe’s Canada held its second Vendor Forum event just before Christmas. Over 1,000 participants from close to 600 partner companies attended to hear about the company’s strategies and priorities for 2023 and to meet leaders from its banners. The event was also an occasion to recognize outstanding vendors, with honours doled out to Napoleon, EBSU, and Hoft.

Fredericton Direct Charge Co-op is the newest independent to join Castle Building Centres. Located in Fredericton, N.B., the consumer co-operative building materials business currently operates with over 10,000 member owners. That signing falls on the heels of the addition of Margaree Castle in Northeast Margaree, N.S. Under owners Nolan Brown and David MacLean, a grand opening is planned for the spring.

For its fiscal year ended Oct. 31, Costco reported net sales of $222.7 billion, an increase of 16 percent, with comparable sales up 14 percent. Net income for the year was $5.8 billion, an increase of 17 percent. Revenue from membership fees increased nine percent to $4.2 billion.

Gypsum Management & Supply reported Q2 sales of $1.43 billion, a 24.4 percent increase from the prior year’s quarter. Excluding the impact of an additional selling day, GMS’s net sales were up 22.5 percent. Earnings of $103.2 million represented a 38.7 percent increase. GMS has a growing portfolio of home improvement companies in Canada, including WSB Titan in Woodbridge, Ont., and Rigney Building Supplies in Kingston, Ont.

IN MEMORIAM: Bob Sutherland

Robert Dundas “Bob” Sutherland died unexpectedly last month while recovering from heart surgery. Through his business Solutions Training, Sutherland traversed the country instructing front-line staff from all banners on the use of plumbing and electrical wares. Sutherland began working in high school for the Dominion grocery chain, which sent him to Cornell University on a scholarship. He later worked in sales for Rutherford cigarettes, always keeping a few in his shirt pockets for potential customers even after quitting himself. Sutherland is survived by Ilse, his wife of more than 50 years; children Morrell and Richard (Maricel) Rutherford; and three grandchildren.

SUPPLIER NEWS

Trusscore has entered a recycling partnership with Return Polymers Inc. Through its Full-Circle Recycling program, Return Polymers will collect, grind, and recycle Trusscore PVC material to make new PVC products. Return Polymers has recycling facilities in Michigan and Ohio.

ECONOMIC INDICATORS

A slight decrease in inflation in November made little impact on Canadian households as food and shelter prices continue to rise. The Consumer Price Index was up 6.8 percent from a year earlier, slightly less than October’s 6.9 percent annual rate. The annual food inflation rate rose to 11.4 percent from 11 percent. The inflation rate peaked in June at 8.1 percent. (StatCan)

Sales of existing homes fell by 3.3 percent between October and November. The actual (not seasonally adjusted) number of transactions in November came in 38.9 percent below the near-record high for the same month last year and stood about 13 percent below the pre-Covid 10-year average for November sales. (Canadian Real Estate Association)

Investment in building construction remained stable in October, edging up 0.2 percent to $20.9 billion, with Ontario accounting for nearly all the gains. Residential construction spending was down slightly by 0.1 percent. Single-family home investment decreased 2.3 percent to $8.2 billion. (StatCan)

The annualized pace of housing starts in November edged down by 0.2 percent to 264,159 units. The rate of urban starts was also flat, with 242,644 units recorded in November. Multi-unit urban starts increased by two percent to 190,415 units, while single-detached urban starts fell seven percent to 52,229 units. (CMHC)

NOTED

Since its inception in 1922, Canadian Tire Corp. has grown to 13 businesses with 1,700 retail stores and gas outlets from coast to coast. The company claims that 1.8 million Canadians have worked at a Canadian Tire, Mark’s, or SportChek store over that time.