WORLD HEADQUARTERS, Toronto — We are proud to announce the addition of one of Canada’s fastest-growing hardlines retailers to the next Hardlines Conference. Hardware, automotive and home retailer Princess Auto will join the conference for the first time.

Presenting on behalf of Princess Auto, Fred Pennell, Vice President Merchandising Operations, will share the success story of this hardware and automotive retailer that started in Winnipeg 77 years ago and now has 46 stores across the country.

A significant player in the retail hardware industry, Princess Auto has been on our radar for many years. So we were delighted when Pennell and his company agreed to join us. (In fact, we’re sure this video with a blues ode, written exclusively for Princess Auto some years ago, helped tip them in our favour!—Editor).

Another important addition to this year’s conference is the first appearance of True Value Company to the Hardlines stage. And we’ve secured no less than President, CEO and Executive Director John Hartmann. Since joining True Value in 2013, Hartmann has led the company through an incredible transformation. Last year, True Value underwent a change in ownership: the selloff of 70% of the company put more than $230 million back in the hands of the dealer-shareholders. Hartmann will share the details of this transition on the Hardlines podium.

The 24th annual Hardlines Conference will be held November 13 to 14, 2019, at the Kingbridge Centre in King City, Ont., just 30 minutes from Toronto’s Pearson International Airport. With the theme, “It’s All About the Experience”, this year’s event will feature some of North America’s top thought leaders in hardware and home improvement retail. (To register for this incredible event, please click here.)

SPECIAL REPORT — Despite variable business conditions across the country last year, dealers did see growth in a range of product categories. A survey of business conditions conducted in the spring by Hardlines revealed some common areas of growth for dealers.

Among hardware stores, paint stood out as a growth category, being cited by dealers in Prince Edward Island, Quebec, Ontario, Manitoba and Saskatchewan. Plumbing was cited as another core category enjoying growth by hardware stores nation-wide, along with fasteners, electrical and HVAC.

Building supply dealers reported growth in categories that reflect an emphasis on homeowners looking to enhance their outdoor spaces. Decking, including composites, as well as lumber, were among the strong sellers. Dealers in Nova Scotia, Quebec, Ontario, Manitoba, Saskatchewan, Alberta and British Columbia in particular reported enjoying increases in treated wood and decking products last year.

Other strong growth categories for building supply dealers included seasonal and garden products. Siding was also cited by dealers in British Columbia, Alberta, Manitoba and Ontario.

(We’ll have the full report on how much the industry has grown, including forecasts for 2019 and beyond, analysis of the top retail players and market shares by province and store format, in the 2019 Retail Report. Coming soon. Click here to pre-order yours now!) 

NATIONAL REPORT — A common concern of any retailer is having to cope with unhappy customers. While those interactions can be unpleasant enough in the store, disagreements can too easily move to the more public forum of online comments.

The goal of complaint management is to keep disputes from escalating. That can mean something as simple as just refunding the customer’s money, rather than have them bad-mouth your store to other customers—or online.

Retailers tend to prefer to deal with customer complaints on their own turf: their stores or yard. But when those efforts don’t mollify customers, the internet often becomes the shopper’s megaphone. And the last thing dealers want is to get into a virtual shouting match with customers online.

Windsor Home Hardware in Windsor, N.S., knows this all too well. A customer once complained that the coating he bought to paint his $200,000 transport truck had failed. Owner Jeff Redden contends that the customer had applied the second and third coats prematurely. The store offered to replace the paint and applicators, but the customer wanted Windsor to pay for his labour as well. When Redden refused, the angry customer stormed out of the store and posted negative comments on the city’s website. After the city removed that comment, the customer reposted the same message—seven times.

Obsessive public harangues are uncommon, which may explain why some dealers choose radio silence when negative comments surface. Mike Doyle, president of The Home Improvement Warehouse in Calgary, whose store is on Facebook and Instagram, is even more emphatic: “Our policy is 'Do Not Engage', on either good or bad comments. It’s like Donald Trump on Twitter; it’s become entertainment. And you keep poking that bear, it will keep coming back at you.”

A number of dealers point out that managing complaints should start with avoiding them. “We’ve worked hard to create a service model upfront to prevent complaints in the first place,” says Doyle. He will even reward his salespeople when they get patrons to post positive comments about the store.

(This is an excerpt from a feature article that appears in the latest edition of our sister publication, Hardlines Home Improvement Quarterly. HHIQ is mailed to 11,000 dealers and managers across Canada four times a year. Free to retailers and managers, you can get your own subscription by clicking here!)

OTTAWA ― The Canadian Real Estate Association (CREA) has updated its home sales activity forecast for this year and next. The association tracks house sales through the Multiple Listing Service systems of real estate boards and associations across the country.

According to the report, many of the economic fundamentals that support housing activity remain strong, as population and employment growth has remained strong and the unemployment rate continues to fall. However, the Prairies, as well as Newfoundland and Labrador, remain slow.

Additionally, the Bank of Canada is widely expected to keep interest rates down over the rest of the year.

The federal government has raised the maximum individual withdrawal limit under the Home Buyers’ Plan from $25,000 to $35,000 and introduced the First Time Homebuyer Incentive, a shared equity program whereby the federal government finances a portion of a home purchase in exchange for an equity share in the home’s value.

The increased HBP withdrawal limit took effect in late March, while the First Time Homebuyer Incentive is slated to launch in September. These factors are expected to support the beginnings of a recovery in home sales over the second half of 2019 after a weak start to the year.

Nonetheless, the overall level of sales is expected to remain well below where it was in recent years. National home sales are now projected to edge up 1.2% to 463,000 units in 2019. This would still leave annual sales below the 10-year average and a big change from the annual record set in 2016, when almost 540,000 homes traded hands.

The federal government has named former Home Depot Canada President Annette Verschuren as chair of the board of directors for Sustainable Development Technology Canada. The federal agency manages funding for clean technologies and falls under the oversight of the minister of innovation, science and economic development, Navdeep Bains. Verschuren, who is currently chair and CEO of energy storage development firm NRStor, was named an officer of the Order of Canada in 2011.

...that Hardlines offers various ways for you to stay up to date on the industry? Make sure you are subscribed to: our Daily News (free); monthly Dealer News (free); and our print magazine, Hardlines Home Improvement Quarterly! (free to dealers and retail head offices!) For more information on all of our news, just click here!

IN MEMORIAM

Ken Roney passed away on June 4, 2019, in Moose Jaw, Sask., after a short battle with cancer. Born in Imperial, Sask., on April 28, 1942, he was well known in this industry as co-owner, with Michael Westrum, of Westrum Lumber and managed the store in Moose Jaw. Ken started at the company with Westrum’s father, Leonard Westrum, in 1964. He leaves his wife of 52 years, Loraine; sons, Aron Roney (Marlene) and Jason (Tracy) Roney; daughter, Stacey (Brad) Moser and nine grandchildren.

VAUGHAN, Ont. — Adam Lumber Ltd. in Waterloo, Que., has joined TIMBER MART. Since 1923, this original equipment (OEM) manufacturer produces roof and floor trusses, wall panels and i-joists, as well as a wide selection of building materials such as gypsum, insulation and engineered wood products. It sits on a 30-acre property that encompasses 11 buildings and employs 55 staff. Today, Adam Lumber serves communities in Southeastern Quebec and the Northeastern U.S.

MOORESVILLE, N.C. — Lowe’s Cos. has designated Charlotte, N.C., as the site of its planned 357,000-square-foot tech hub. The largest city in the company’s home state beat out Dallas for the distinction. The facility will generate up to 2,000 local jobs, according to Lowe’s. The company expects to be ready to open the location by late 2021.

MONTREAL — Dollarama Inc. is acquiring a 50.1% interest in Latin American discount retailer Dollarcity. The purchase price is based on a five-times multiple of Dollarcity’s EBITDA, minus net debt and subject to customary adjustments, and will be paid in cash.

SUPPLIER NEWS

VANCOUVER — The Futura Corp. and Arbutus Distributors have made a proposal to take Tree Island Steel private, with a cash offer of $2.25 per share. The two companies together currently own about 14.7 million shares in Tree Island, a majority of its issued and outstanding shares. Futura and Arbutus have proposed that the potential transaction be structured by way of a court-supervised statutory plan of arrangement, which would require shareholder approval.

NEW BRITAIN, Conn. — Stanley Black & Decker has won four Comparably Awards for Best CEO as rated by female employees, Best CEO as rated by racially diverse employees, Best Leadership Team and Best Company for Professional Development. Comparably Award winners are determined based on a series of structured and comprehensive workplace questions in some 20 core culture categories.

VANCOUVER — West Fraser Timber has announced a two-week suspension of production at its Alberta plywood operations and High Prairie sawmill to address low log inventories for the facilities, which have been adversely impacted by wildfire-related logging curtailments compounded by recent wet weather. Plywood production is anticipated to be reduced by 13 million square feet, while the impact on Alberta lumber production is anticipated to be minor.

VANCOUVER — Conifex Timber is selling its Fort St. James sawmill and associated forest license to Hampton Lumber. The purchase price is about $39 million plus the market value of finished lumber and log inventory at closing. Hampton Lumber operates nine sawmills in Oregon, Washington and British Columbia.

ECONOMIC INDICATORS

Construction jobs drove the bulk of May’s decrease in non-farm payrolls, the first decline for that month in seven years. Seasonally adjusted payrolls were down 0.1% in May for a total of 16,519,461. That’s 16,020 fewer jobs than in April, with construction jobs alone falling 1.1% to 1,013,127 compared to May 2018. (ADP Canada National Employment Report)

Construction spending in the U.S. in May was estimated at a seasonally adjusted annual rate of $1,293.9 billion, 0.8% below April’s estimate of $1,304 billion. The May figure is 2.3% below the same period a year ago. During the first five months of this year, construction spending amounted to $498.8 billion, 0.3% below the same period in 2018. (U.S. Commerce Dept.)

OVERHEARD

“Our programs in gypsum, insulation, roofing and siding will give Adam Lumber the competitive advantages and growth opportunities they need to be successful.” —Alain Charbonneau, TIMBER MART’s national membership development manager for Quebec, on the signing of Adam Lumber in Waterloo, Que., as the buying group’s latest member.

OUT & ABOUT

Our VP and Publisher David Chestnut will be in Ottawa this week to attend the TORBSA annual meeting and golf tournament.