Sexton Group Ltd. has become the latest member of Octo Purchasing Group, the Montreal-based hardlines, electrical, and plumbing buying group. The arrangement will begin Jan. 1, 2025. In a release, the companies stated that the deal “unites two Canadian-founded entities dedicated to supporting their independent members through the robust industry relationships they have cultivated.”

Octo is a buying group for hardlines. Its specialties include hardware, plumbing, electrical, HVAC, industrial safety, and paint. The group was founded in 1982 in Quebec and now has over 70 members representing 2,500 outlets across the country. Members include traditional hardware and home improvement groups like Castle Building Centres and Peavey Industries, as well as independent dealers such as Canac in Quebec, E.G. Penner Building Centre in Steinbach, Man., and Ottawa’s Preston Hardware.

But the buying group also counts industrial suppliers and commercial distributors in its membership, such as MacMor Industries in Winnipeg, Campbell’s Concrete in Charlottetown, and Stratford, Ont.-based Rideau Supply.

Octo connects with 448 suppliers and says it represents some $8 billion in member sales.

Sexton Group, based in Winnipeg, has dealer-members across the country, with a mix of commercial yards and building centres. Eric Palmer, president of Sexton Group (shown here at the 2023 WRLA Building and Hardware Showcase), says that Octo’s model of a dedicated distribution model for hardlines fits well with Sexton. “Increased pricing is a concern, while volume sales are more and more important to vendors, so it certainly made sense to our members.”

Palmer adds that the Octo partnership fits well with Sexton’s strategy to offer an opportunity for upgraded front-end sales. “We have plans to add another 100-plus vendors in new categories over the next couple of years, and this will help us to fast-track the process. We would have a big challenge internally to accomplish this on our own.”

He says that many of the member yards in the west, where Sexton got its start, are heavily GSD- and commercially-oriented. But with increased expansion eastward, more dealers in Ontario, and especially in Quebec, Palmer says, tend to have bigger front ends. “Even for our contractor yards, the front-end programs are important. But as we move east, a lot more of the lumberyards have a strong front-end presence.”

"We are thrilled to welcome Sexton Group Ltd. to Octo Purchasing Group. As a strategically run, growing organization that is dedicated to its members, Sexton shares our commitment to excellence,” adds Frédéric Perrin, executive director of Octo.

Castle Building Centres Group is running a contest that gives customers the chance to win prizes totalling $40,000 in value. Called “The Four Seasons of Fun Contest,” the promotion will award one prize for each season of the year to a total of four winners. Prizes include a riding lawnmower, a snowmobile, and an all-terrain vehicle.

The contest, which began in April and runs until Sept. 30, is being advertised widely through a range of media. “We are currently advertising the contest in Canadian Home Trends magazine, [Castle’s own] Contractor Advantage magazine, and on Castle web and social channels,” says Jennifer Mercieca, director of communications for Castle.

But to make the most of the summer home improvement season, Castle has stepped up its advertising efforts even further. “We also advertise on cable TV, with a commercial on The Weather Network and HGTV all summer long.”

According to Mercieca, Castle members across the country are participating in the promotion and all four prizes will be awarded at the end of the contest period. No purchase is necessary, she adds, but to enter, customers must visit a participating Castle building centre to fill in a ballot or go online.

“The contests are a great way to create more awareness and to support our members. The contest advertising often brings new customers into the store, and locations that have been lucky enough to have a winning ballot enjoy lots of community excitement for months to follow.”

Mercieca adds that the sheer scale of this promotion makes it a big event for the group. “It’s one of the largest, if not the largest, home improvement store contests of the summer.”

Federated Co-operatives Ltd. continues to deal with the fallout of what the company calls a “cybersecurity incident” recently that affected its retail locations in western Canada.

FCL is a $12.46 billion diversified business based in Saskatoon, supplying everything from groceries and agro products to building materials and fuel through a network of 1,600-plus retail locations in more than 650 communities. It counts 2.2 million members across western Canada.

On June 27, the co-op posted on social media that it was experiencing a cybersecurity incident that was impacting some internal and customer-facing systems at local retail co-ops and cardlock fuel locations. The impacts included disruption to product flows through FCL’s distribution centres and stock outages on store shelves, especially of fresh produce. As of press time, the FCL website appeared to be down, as well.

As a precaution, the company shut down some of its systems and brought in third-party experts to determine the cause of the incident. The company provided customers with a list of locations where cardlock services were still active across western Canada.

FCL later announced that there was no evidence that consumer data was compromised, but if an investigation did determine that consumer data was compromised, appropriate action would be taken, the company said.

Air Miles has announced a series of new benefits that the company says will “reshape the future of loyalty programs in Canada.” Called “Collect more points,” it’s a platform that Air Miles says “marks a fundamental shift in how the program operates and functions to reward collectors almost everywhere they shop and allow them to get more from what they want.”

According to a release (one of the longest, most confusing press releases we’ve received in years—your perplexed Editor), “These enhancements include a new travel platform with improved earning opportunities and more flexibility on booking, the introduction of the innovative Air Miles Receipts offering Canadians a new way to earn Miles and stack on the value while grocery shopping, and new Card Link Offers (CLO) partners….”

Some of the benefits:

• Gold and Onyx collectors can convert Dream Miles to Cash Miles and vice versa. Onyx collectors enjoy unlimited transfers, while Gold collectors can transfer up to 1,000 Miles per year
• the ability to convert Cash Miles to Dream Miles and vice versa
• the opportunity to earn more ways at more places, including at over 94 percent of grocers nationwide and on eligible liquor purchases through Air Miles receipts
• New card-linked offers with Turo, Instacart, Moroccanoil, and Porter Airlines

PEOPLE ON THE MOVE

Lowe’s Cos. chairman and CEO Marvin Ellison has received the 2024 William McGowan Ethical Leader of the Year. The annual honour is presented by the William McGowan Charitable Fund, dedicated to fostering ethical leadership, in partnership with human resources firm SHRM. It includes a $25,000 grant to a non-profit organization of Ellison’s choosing.

DID YOU KNOW...?

… that the 2024 Hardlines Retail Report will be released later this month? This massive research breaks out the size and growth annually of the industry, identifying which retail sectors and which banners are winning and losing from year to year. It features more than 150 slides in a handy PowerPoint format. Click here for more info and order details—and remember, as a Premium Member (if you are subscribing to this newsletter, you are one!) you will get a big discount on the price!

RETAILER NEWS

RONA affiliate dealers Al Tsuchiya and Michael Trentalance, owners of T & T Hardware Group, have celebrated the grand opening of their new RONA Walnut Grove Urban store in Langley, B.C. Leaders from the RONA dealer support team, partners, and store employees gathered for a traditional board-cutting ceremony. Over the past year, Tsuchiya and Trentalance have added 2,200 square feet to their hardware store. This new space, now offering a total sales area of 5,500 square feet, has allowed them to increase their selection of building materials and plumbing products.

The Home Depot Canada has been named the Energy Star Canada National Retailer of the Year for the sixteenth time. In a statement, the company said it is dedicated to environmental and social governance, offering 5,000 Energy Star certified products in its 182 stores and online.

The Weather Network (TWN) has launched an ad campaign using an AI-powered avatar of presenter Rachel Schoutsen. TWN partnered with Home Hardware Stores Ltd. to promote local stores during Ontario summer forecasts, including highlighting summer sales. “This partnership puts Home Hardware front and centre when Canadians are engaging with weather content and planning for the summer ahead,” said TWN chief revenue officer Simon Jennings.

Hudson’s Bay Co. has reportedly concluded a deal to buy Neiman Marcus, the Dallas-based luxury department store chain. HBC also owns Saks Fifth Avenue and Saks Off 5th. The deal has been reported to be worth US$2.65 billion. Neiman Marcus has 36 stores in the U.S. According to the Dallas Morning News, the combined company would represent sales of US$10 billion.

The Washington Department of Ecology has issued a US$1.6 million penalty to The Home Depot for selling prohibited hydrofluorocarbon (HFC) products. HFCs are powerful greenhouse gases used mainly for refrigeration and air conditioning. “Restricting HFC products and equipment is key to achieving the state’s statutory greenhouse gas emission limits and ultimately getting to net-zero by 2050,” said Joel Creswell, manager of Ecology’s Climate Pollution Reduction Program. Home Depot has 30 days to appeal the penalty to Washington’s Pollution Control Hearings Board.

In celebration of its 100th anniversary, Koelnmesse, the German trade fair organization, has announced the opening of Confex, an event centre with facilities for conferences and trade shows. It has space for 6,200 guests located at the Cologne Messe/Deutz railway station. The state-of-the-art venue creates new opportunities for innovative event formats in the region and its location at the railway station provides convenience to attendees coming from across Europe and around the world. Koelnmesse is the site of the biennial International Hardware Fair, Eisenwarenmesse, which will be held next in the spring of 2026.

Construction spending in the U.S. experienced a slight downturn in May, falling by 0.1 percent to an annual rate of US$2.1 trillion. That dip follows a rise of 0.3 percent in April. Spending on residential construction inched down by 0.2 percent to an annual rate of US$918.2 billion. Non-residential construction spending dipped by 0.3 percent to an annual rate of US$733.9 billion. (U.S. Commerce Dept.)