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CONNECTING THE HOME IMPROVEMENT INDUSTRY
 
July 13, 2020 | Volume xxvi, #28
  IN THIS ISSUE:
  • By going virtual, shows keep in step with industry expectations
  • Lowe’s CEO Marvin Ellison urges retail leaders to “do more”
  • Atlantic Canada faces lumber shortages as outdoor projects popular

PLUS: Lowe’s Canada donates air conditioners, Home Depot in the U.S. temporarily removes spooled rope from its stores, spoga+gafa moves dates, Richelieu’s second quarter, Blanco Canada celebrates 30th anniversary, Retail Council of Canada to hold webinar with Canadian Tire’s Greg Hicks, housing starts surge and more!

 
 
 
 
By going virtual, shows keep in step with industry expectations

NORWALK, Conn. & SASKATOON — Two major shows, one in Canada and one in Las Vegas, have made the decision to cancel in favour of virtual events.

Federated Co-operatives Ltd. announced it is moving its Buymart buying show online for 2020 due to ongoing travel restrictions. The annual trade show, which connects vendors with local co-operatives across Western Canada, was slated for October 18 and 19.

Then, just days later, Reed Exhibitions announced a similar move for its event, the National Hardware Show. That show, typically held each year in Las Vegas in early May, had already been postponed to the beginning of September because of the COVID-19 pandemic. Then, last week, in a statement to attendees, Reed stated that they had been closely monitoring the impacts of the pandemic on the global hardware and home improvement community and decided to make the show a virtual one. Reed says its decision was made with the safety of all involved in mind.

The decision by FCL is in line with the direction the industry is going with shows—and travel in general. An informal survey of the industry by Hardlines reveals that companies have no appetite for travel. Vendors are staying put, especially in light of the fact that the border with the U.S. remains closed. For the safety of their staff, companies are not allowing any travel to the U.S., where the COVID-19 pandemic has affected that country at a rate that is 30 times more extensive than in Canada.

On the retail side, buying teams in Canada have restricted travel both at home and abroad. Buyers are getting used to virtual meetings and head offices are not willing to risk travel, possibly for several months to come. And many vendors were emphatic about refusing to travel in the U.S.

Like Federated Co-op, and other groups ahead of them, NHS is adopting a virtual trade show platform. “Our entire team is dedicated to supporting all of our customers and partners,” says Rich Russo, industry vice president, National Hardware Show. “We are reimagining the entire physical trade show, so look forward to new initiatives, new pavilions and neighbourhoods and a complete transformation of NHS for 2021.”

Likewise, Federated Co-op will use an online platform that will allow vendors to share information, provide buying opportunities and engage local co-ops in the Co-operative Retailing System. The Buymart show is expected to return to Saskatoon as an in-person event in October 2021.

Just last week, Lowe’s Canada announced that its fall show for its RONA affiliated dealers will be held online, starting October 19. BMR Group, Home Hardware and hardware wholesaler Orgill have all made similar moves. The rulings by these companies fall in line with the sentiments of the industry in general.

 
 
Hardlines
Lowe’s CEO Marvin Ellison urges retail leaders to “do more”

NEW YORK — Lowe’s president and CEO Marvin Ellison recently discussed how the big box home improvement chain is adapting to serve customers during COVID-19, prioritize shopper safety and respond to nationwide social movements.

Ellison spoke to a virtual audience hosted by the National Retail Federation in the U.S.

In addition to how Lowe’s is responding to new employee and shopper needs during the pandemic, Ellison discussed how social justice movements across the world are impacting the home improvement chain. He spoke about growing up in rural Tennessee and later advancing to become one of only five Black CEOs of a Fortune 500 company.

Ellison recounted a lesson his father had taught him: “Sometimes, you have to decide to talk less and do more,” he said. That tenet has guided his time at Lowe’s, where executive team diversity has grown in recent years. He added that it is “mentally exhausting that in 2020, we’re still discussing racial injustice.”

The company is also giving more than $25 million in grants to small businesses owned by members of minority groups. Ellison said Lowe’s received more than 110,000 applications since the program started. The swell of applications shows there’s a true need for support at the ground level for many businesses, he added.

“That’s my challenge. Let’s stop talking. Let’s start doing,” Ellison said.

 
 
Atlantic Canada faces lumber shortages as outdoor projects popular

HALIFAX — Construction firms in Nova Scotia are faced with a lumber shortage during what should be their peak season, as the pandemic has driven up demand while slowing production.

“Like everything else with COVID, the plants were brought down to about 50 percent efficiency and it takes a couple months for that to trickle on down,” Scott Smith, president of the Nova Scotia Home Builders’ Association, told CBC News.

Demand has risen sharply among DIYers. Stuck at home, they are looking to fix up their living spaces in lieu of expenditures on cottages and camps and in restaurants and bars. That’s put a pinch on supply for contractors, who are trying to get larger projects done.

Kent Building Supplies sent an email last week to its sales associates advising them of the situation. “The huge sales increase has completely stripped the supply chain,” it reads in part. “There is no supply left in Atlantic Canada. Replacement from Western Canada is five to six weeks away ... Costs are through the roof.”

Mary Keith, spokesperson for Kent parent J.D. Irving Ltd., said the notice applies to most of Kent’s Atlantic region stores. “We are working to resolve the supply issue of plywood and pressure treated lumber as soon as possible and appreciate the patience of our local consumers and contractors.”

Other dealers in the region are seeing shortages in a range of products related to outdoor projects—especially decks. Quoting TIMBER MART dealer Jillian Sexton, who has stores in Nova Scotia and Prince Edward Island, CTV News reported shortages of pressure-treated wood, screws and joist hangers, “all things you would use to build a deck.”

 
 
 

 

DID YOU KNOW...?

... that Hardlines’ Annual Retail Report will be released this month? It includes everything we know about the industry, newly expanded with more analysis and data than ever before! Featuring industry sales data as of year-end 2019 and up-to-date analysis of marketplace trends, this incredible report is truly a marketer’s dream. Click here for more details and ordering information.

RETAILER NEWS

BOUCHERVILLE, Que. — Lowe’s Canada is donating 300 portable air conditioners to the City of Toronto, in support of the city’s efforts to encourage greater social distancing among homeless residents. In order to reduce crowding in high-demand shelters, the city is offering their clients vacant public housing units. With summer settling in, these air conditioners will help provide these residents with a more comfortable living environment as they go through self-isolation.

ATLANTA — Home Depot in the U.S. has temporarily removed spooled rope from the aisles of its stores, after a string of reports from customers who found rope fashioned into nooses. “Unfortunately, we’ve had some instances where spooled rope was used to create hate symbols and we’re not going to tolerate it,” spokesperson Margaret Watters Smith said. Instead, shorter measures of pre-cut rope will be offered in plastic packaging, with store associates on hand to assist with custom lengths. Nooses have been increasingly spotted in the U.S. in the midst of backlash against the wave of protests for racial justice this year.

SUPPLIER NEWS

MONTREAL — For the second quarter ended May 31, Richelieu Hardware had consolidated sales of $248.3 million, compared to $281.1 million for the corresponding quarter of 2019, an 11.7 percent decrease. Growth of 6.6 percent during the quarter was realized through acquisitions, partially offsetting an internal decrease of 18.3 percent. Sales to hardware and home improvement retailers were $41.3 million, down 3.5 percent due to the current pandemic. Since mid-March, many of Richelieu’s DCs have been impacted, particularly in Quebec and Ontario, as well as in the Northeast and Midwest U.S. markets. At the end of June, Richelieu completed the takeover of Central Wholesale Supply, a specialty hardware distributor in Richmond, Va.

COLOGNE — With a majority of exhibitors and visitors choosing to withdraw in recent weeks, this year’s edition of spoga+gafa, which was scheduled for September 6 to 8, has been cancelled. The world’s largest lawn, garden and outdoor living show is moving to next spring and will take place from May 30 to June 1, 2021. Koelnmesse, the company that owns the show, has announced this new timeframe will be permanent, to fit better with the buying cycles for garden and outdoor products.

TORONTO — Blanco Canada is marking its 30th anniversary alongside digital audiences nationwide throughout the entire month of July. The kitchen sink and faucet maker will kick off a digital campaign showcasing fun facts, company archives, employee stories and design throwbacks from the last three decades. The company has also partnered with House & Home magazine to launch a prize-pack giveaway through to October.

ECONOMIC INDICATORS

Canadian housing starts were at a seasonally adjusted annual rate of 211,681 units in June, an increase of 8.3 percent from 195,453 units in May. The SAAR of urban starts increased by 8.7 percent in June to 196,675 units. Multiple urban starts increased by 13 percent to 154,602 units while single-detached urban starts decreased by 4.5 percent to 42,073 units. Rural starts were estimated at a seasonally adjusted annual rate of 15,006 units. (CMHC)

NOTED

The Retail Council of Canada is holding a webinar this Wednesday, July 15, with Greg Hicks, who was appointed president and CEO of Canadian Tire Corp. earlier this year. He will be in conversation with Diane Brisebois, the council’s president and CEO. Hicks has more than 20 years of retail experience in senior leadership positions, including seven years at CTC, most recently as president of Canadian Tire Retail. Click here for more info and to register.

OVERHEARD...

“Local businesses are the foundation of our community. When we shop local, we are not just giving money to a giant corporation, but we are helping people in our community. And these local businesses in turn give back to their neighbourhoods through sponsorships, fundraisers and volunteering.”
—Liz Kovach, president of the Western Retail Lumber Association. The WRLA has launched a “shop local” campaign to encourage people to support their local community by shopping at their local building supply store.

 

 

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