When Peavey Industries took over the Ace Canada brand two years ago, it was heading into unknown territory. The corporately-owned chain of farm and hardware stores was now in the wholesale hardware business. And that required the creation of a whole new division within Peavey, supported by many of the people who had moved over from Lowe’s Canada, which had held the rights to the Ace brand previously.

Two years in, the assimilation of the Ace brand by Peavey Industries continues. That includes a reorg based on a consulting project with The Foyer Group that looked at ways to make Peavey’s operations more efficient, says COO Dave Simmonds. “When we took on Ace, we did a lot of adapting on the fly and a lot of it wasn’t that efficient.” Much of the uncertainty came with the onset of COVID lockdowns which began just weeks after the deal was announced.

The latest efficiencies have extended to operations, supply chain, and category management. Buying teams for Ace, Peavey Mart, and Peavey’s MainStreet Hardware banner have been combined—both for in-store and online purchases—resulting in a handful of layoffs. “We’ve switched that around,” Simmonds says. “The category manager now operates in three channels, while respecting that each banner has different needs.”

The move was a positive one, Simmonds notes. “We were overbuilt and overstaffed for what we need to accomplish.”

The COO is proud of Peavey’s track record so far. He says that 100 people at Peavey are dedicated to supporting Ace either exclusively or as part of the whole team—far more support than Ace dealers had received before Peavey took over.

Simmonds stresses that Peavey’s commitment to Ace “is as strong as or stronger than when we started.”

Home Hardware “reimagines” its dealer event with move to Toronto

Home Hardware Stores Ltd. is returning to a live event this fall with a new location—and a new look—for its dealer event. After almost 60 years being held in and around Home Hardware’s headquarters in St. Jacobs, Ont., the dealer event will move to Toronto between Sept. 23 to 25.

While the event used to be called the Home Hardware Dealer Market, it’s got a new name: “Homecoming.” It is expected to host close to 3,000 dealer-owners, store staff, suppliers, business partners, and corporate staff at the Enercare Centre, on the grounds of Exhibition Place just west of downtown Toronto.

The fresh face for the event reflects the company’s shift from operating as a wholesaler to being an integrated retail-focused company. Home Hardware says that everything from the kick-off of the fall event to the training sessions—and even the pop-ups on the tradeshow floor—will be aimed at increasing support of its dealers.

“We are taking a successful Home Hardware tradition that started in 1963 and elevating it to meet the evolving needs of our dealers, as well as our brand’s growth and business strategy,” said Rob Wallace, Home Hardware’s chief retail operations officer.

Home Hardware’s past dealer markets have always included lots of training and education, but this year’s event is placing more emphasis than ever on promoting the culture and training aspect of the dealer experience. In addition to the traditional buying show, the event will include strategic updates and training sessions for dealer-owners and store staff along with social activities, keynote speakers, and a celebration dinner to recognize winners of Home’s own dealer awards.

“This reimagined event combines tradition with innovation, allowing our dealer-owners to stay on top of emerging retail trends, innovative products, and merchandising strategies,” said Marianne Thompson, Home Hardware’s chief merchandising officer.

Bonhomme rebrands with contractor stores and a focus on Ottawa market

Les Entreprises P. Bonhomme, a major dealer in the Ottawa and Gatineau market, has been repositioning itself over the past six months. That includes downsizing and developing a new customer focus—and launching a new banner to go with that new direction.

A long-time member of the Independent Lumber Dealers Co-operative, Bonhomme has been rationalizing its store count over the past decade. The Gatineau stores on the Quebec side of the Ottawa River used the Bonhomme name, while stores on the Ottawa side used the name Bytown Lumber (Bytown is a nickname for Ottawa).

Now more tightly focused on the Ottawa market, the four remaining Bonhomme stores have further narrowed their focus on the contractor customer, with an emphasis on core building materials for both residential and commercial markets. Those Ontario stores, in Rockland, Aylmer, Carleton Place, and Limoges, have been rebranded Bytown Pro.

But the company does not intend to exit the Quebec market. The Aylmer outlet is being relocated to Bonhomme’s head office location in Gatineau across the river. It will be bannered as Bonhomme Pro.

According to the company’s website, the repositioning puts the stores more in line with the needs of contractors and builders in and around Ottawa: “Recognizing the explosive growth and need for housing in the region, the company rebranded itself as Bytown Pro in 2022, with a distinct focus in providing supply and service to regional builders and developers that is second to none.”

Last week, the Bank of Canada raised its benchmark interest rate by a full percentage point, to 2.5 percent. This was the largest single increase to the rate since 1998. It was also the fourth increase since March, as the central bank seeks to counter runaway inflation. It had been speculated that the rate increase would be only 0.75 ppt.

Economist Peter Norman of Altus Group (seen here addressing the 2021 Hardlines Conference) told Hardlines that he expects to see a “softening through this year” in the reno market. The sector “has been holding up so far” but “traditionally … has been fairly interest rate-sensitive due to the amount of borrowing” that fuels the sector.
The renovation sector “last year was nuts, up about 25 percent,” Norman said in an email. “[It’s] also up so far this year a further 20 percent … so there is room for it to drop.”

Norman also provided a counter-argument to his prediction of decreased reno activity. “On the other hand ... there is a school of thought that as the home sales market cools off, some homeowners will look more closely at a reno rather than a move. Also, some potential renovating homeowners have been waiting for availability of contractors and possibly lower prices before they pull the trigger. Those segments may be active later this year.”

BMF, the store design and installation provider for home improvement dealers, has made some organizational changes. Sarah Hounslow, who has been a key player in the growth of the company since its inception almost 20 years ago, has been promoted to president. Rob Wilbrink, formerly president and CEO, will retain the CEO position. Mark Ehrlick, former director of operations at Lowe’s Canada and director of dealer development at Canadian Tire, joins BMF as vice president of sales and marketing. Ehrlick joins Gavin Ford, who recently joined the company after working at Lowe’s leading store setups across North America.

Lowe’s Canada has named Denis Ouellet as category director, hardware and cleaning products. Ouellet was previously national sales manager at Sherwin-Williams, and he also held category management positions at RONA between 2012 and 2018.

At Castle Building Centres Group, André Laurin has been named a new business development manager for Ontario. Laurin will be responsible for the dealer support and business development in the north and east of the province. He joins Castle with some 15 years of LBM experience.

DID YOU KNOW...?

... that you can now buy tickets for the next Hardlines Conference? That’s right, registration is now available online for the 26th annual Conference, being held Oct. 18 and 19 at the Queen’s Landing Hotel in Niagara-on-the-Lake, Ont. Sign up now as tickets are limited for this year’s event.

BMR Group welcomes a new member, H. Dagenais et fils Inc., beginning January 2023. Founded more than 90 years ago, Dagenais operates two locations in Quebec’s Laurentian mountains, in Saint-Sauveur and Sainte-Anne-des-Lacs. Owners Annie and Martin Dagenais oversee a team of 180.

Ace Canada has forged a deal with Thunder Bay Co-op in Thunder Bay, Ont., that will see the cooperative co-branded and presented as Thunder Bay Co-op Farm Supplies – Ace Country & Garden. Thunder Bay Co-op Farm Supplies opened in 1952.

BeautiTone, the paint business of Home Hardware Stores, is partnering with Mattel Canada to mark the 60th anniversary of the Barbie Dreamhouse. The palette of the BeautiTone Barbie Dreamhouse Colour Collection was designed with “playfulness and liveability” in mind, the company said in a release. Each of the 13 colours comes with its own Barbie-inspired persona. HGTV Canada host Tiffany Pratt is the line’s ambassador.

Inventive Construction Supplies in Dartmouth, N.S., has joined TIMBER MART. The dealer has been serving DIYers, contractors, and builders in the Dartmouth market with a wide assortment of hardware and building materials since 2015. With continued growth, the store looked to partner with a group to access greater buying power and brand recognition. Craig Humphreys is the store’s owner.

Goulais River Country Store, a Castle dealer in Goulais River, Ont., has changed owners. The location opened its doors over a decade ago and will continue its Castle affiliation under new owner Kenneth Peter Van Daele, who will operate it with his daughter Kendralyn.

Lowe’s Canada presented $385,000 to the Fondation Charles-Bruneau at this month’s Tour CIBC Charles-Bruneau cycling event. Between July 2 and 8, the Lowe’s Canada team of nearly 70 cyclists—including associates, affiliated RONA dealers, and vendor partners—completed a variety of treks ranging from 50 to 900 kilometres. Lowe’s Canada was a Diamond Sponsor of the event, which supports pediatric oncology research and development projects. In the last seven years, the Lowe’s Canada teams have raised over $3.7-million for the foundation.

SUPPLIER NEWS

Richelieu Hardware reported Q2 revenues of $487.9-million, up 31.4 percent. Net earnings rose by 27.7 percent to $77.9-million, or $0.83 per diluted share. Canadian sales grew 17.3 percent to $292.3-million. Sales to Canadian retailers reached $55-million, up $9.3-million or 20.4 percent from the comparable period of 2021.

Oldcastle APG, an outdoor living and building materials manufacturer based in Atlanta, has acquired Barrette Outdoor Living. Founded in 1975, Ohio-based Barrette has 14 locations in the U.S. Its fulfilment needs are served by a warehouse just outside Granby, Que., 45 minutes from the Vermont border. Oldcastle’s parent company is CRH plc, based out of Dublin, with operations in countries from Switzerland to the Philippines.

Shares of Resolute Forest Products soared by 58.3 percent recently after the announcement of its pending acquisition by B.C.-based Paper Excellence, The Toronto Star reports. Under the terms of the deal, Paper Excellence’s U.S. business Domtar will purchase the Montreal-based paper and pulp maker for about $2.7-billion. Resolute is itself the product of a merger. Abitibi-Consolidated and South Carolina-based Bowater Inc. formed what was initially known as AbitibiBowater in 2007.

ECONOMIC INDICATORS

Investment in building construction edged down 0.2 percent to $20.6-billion in May, StatCan reports. That, however, was largely due to a strike action by Ontario’s unionized construction workers. Excluding Ontario, construction spending rose by 1.1 percent nationally. Likewise, the residential sector edged up by 0.1 percent. Single-family investment slid 2.5 percent, ending a seven-month growth streak.

NOTED

The July edition of our sister publication, Hardlines Dealer News, came out last week. In this issue, we discuss supply chain woes, Home Hardware’s contractor business, and evolving customer habits. Plus, learn how one B.C. retailer is reaching out to local tourists. (Hardlines Dealer News is monthly—and it’s free. Sign up here to subscribe!)

OVERHEARD...

“The new organization makes Peavey leaner and meaner, which is a benefit for the dealers.”
—Dave Simmonds, COO of Peavey Industries, on the recent reorganization at Peavey’s head office to align the Ace Canada banner operations. Peavey holds the licence for the Ace brand in Canada.