ST. JACOBS, Ont. — It’s considered the largest hardware show in Canada and it’s now online. Home Hardware’s Spring Market, typically held in St. Jacobs, Ont., in April, ended up going virtual. Now, the company has confirmed its Fall Market will follow suit.

President and CEO Kevin Macnab said he was “pleased with the success” of the first event, which the company says attracted some 3,500 participants electronically. “From delivering presentations in a virtual auditorium to engaging with our supplier-partners in a virtual trade show,” Macnab said, “we are able to offer our dealers a quality market experience, even in these unprecedented times.”

The Fall Dealer Market will run September 13 to 20.

Home Hardware is not alone in reconsidering the logistics of bringing large numbers of people together amidst the COVID-19 crisis. Another major wholesaler that has shifted to a virtual buying show is Orgill, as the safety of delegates and exhibitors alike remains a priority for the show organizers. “There were a number of factors that led to this decision,” said Boyden Moore, Orgill’s president and CEO, “including an abundance of caution as it relates to the safety of our employees, customers and vendors, as well as consideration for how a market would function in an atmosphere where strict social distancing would likely still be required.”

The industry in its various aspects is turning to online alternatives. Early last month, The Building Supply Industry Association of British Columbia (BSIABC) presented its annual Orion Awards to dealers and suppliers in its first-ever virtual awards ceremony.

But the online platform has its precedents. The first virtual show in this industry was held by Chalifour Canada in 2014. At the time, the hardware and LBM distribution company was part of TIMBER MART. The virtual event was produced to replace Chalifour’s annual buying show for its dealer customers. The web-based platform allowed “attendees” 24-hour online access to virtual buying and networking opportunities over several days.

Even as the ability to gather in groups is being restored in various parts of the country, the ability—or just the inclination—to travel, especially by air, may be slow to recover. In addition, dealers are finding themselves so busy in their stores, as they manage their way through the changing realities of the recovery process, that many are expected to be reluctant to take time away from their businesses for many months. All these factors will likely fuel the continued reliance on virtual platforms for the near future.

OTTAWA — The latest forecast from Canada Mortgage and Housing Corp. about the growth of the housing market over the coming months offers some sobering data.

CMHC’s latest Housing Market Outlook takes into consideration the impact of the COVID-19 pandemic on the economic outlook both provincially and nationally. It says housing is subject to “considerable risk” given the rapid growth and duration of the pandemic, the speed at which the global economy and financial markets are reacting and what it calls “significant regional disparities in economic impact on housing markets.”

The result? “Canada will experience a historic recession in 2020 with significant declines in all housing indicators,” says the report. “Severe loss in household income and employment, and migration at a standstill, contribute to unprecedented falls in construction activity and sales. The decline in housing activity is compounded in oil-producing provinces as the energy sector is also experiencing historic lows.”

There is some good news in the forecast, but not until well into next year. Declines will continue this year, but housing starts, sales and prices are expected to start recovering by mid-2021 as the pandemic recedes. However, the recovery will be slow, the report warns. Sales and prices are still likely to remain below their pre-COVID-19 levels right through to the end of 2022.

The slowdown in residential construction, particularly in Quebec and Ontario, will result in a decline of 51 to 75 percent in national housing starts in the second half of 2020 before recovery is expected to begin in the first half of 2021 as economic conditions improve.

CMHC does not expect existing home sales to fare much better. “Large declines in employment and household disposable income will cause large reductions in demand for existing homes in 2020. Listings will fall in response to weaker demand, placing significant downward pressure on existing home sales,” says the report. Sales are expected to decline by anywhere from 19 to 29 percent from their pre-COVID levels. The average price for existing homes will decline by between nine and 18 percent.

A gradual recovery in resale activity, coupled with a rise in prices, is anticipated to begin in 2021.

TORONTO — Canadian Tire’s Retail division recorded comp sales growth of 0.7 percent in its first quarter. Before March 11, it was tracking even stronger, with comps of 0.9 percent thanks to strong demand from stores in shipments of automotive, fixing and living categories, especially in kitchen, cleaning and pet. Then lockdowns began across the country, forcing stores to restrict access to customers.

“We saw increased demand for what we now call ‘boredom busters,’ products such as kids’ toys and games, exercise equipment, sports and outdoor recreation, as Canadians prepared to spend more time at home,” said Greg Hicks, president and CEO of CTC, on a call to analysts following the release of the company’s first-quarter results.

“The increased demand for these categories drove significant traffic to our stores and website.” Other strong sellers included trampolines, basketball nets, backyard play structures and treadmills. “With physical distancing and government restrictions in place, we were concerned that fewer trips to the store would translate into lower overall demand for our products,” Hicks said. “That has not been the case.”

Another significant priority during the current crisis has been Canadian Tire’s e-commerce platform. In fact, the added traffic on the CTR website grew so rapidly that the site crashed.

Before March 11, Canadian Tire Retail was drawing an average of 5,000 online orders per day. After ramping up quickly, which included moving to the cloud, the site has been made more stable and lets users better personalize their shopping experience.

“Our CTR website is now processing more than 80,000 orders daily,” said Hicks.

BOUCHERVILLE, Que. — Lowe’s Canada is promoting the at-home lifestyle with its collection of tools and décor products this summer. With a focus on staying at home, the retailer is highlighting cooking and planting and some casual décor and enhancements for one’s outdoor living space.

As people find themselves stuck at home, they are looking for products to help them enjoy a patio or garden, including small spaces such as balconies. For maintaining the yard and deck, Lowe’s Canada is highlighting lines of outdoor power tools by Greenworks, Husqvarna, Karcher and Craftsman.

The retailer is responding to DIY trends during the pandemic that include paint, with a push on Purdy paint brushes, and fanciful décor that includes a hanging planter by Allen + Roth. Starter kits for seeds, especially for vegetables and herbs, tap into wider trends internationally to position one’s garden and outdoor space as a sustainable retreat.

Home Hardware has added to its merchandising teams. Michael Robert and Lee Hooper have been appointed merchandise LBM directors, reporting directly to Marianne Thompson, VP of merchandise LBM. Robert has held executive positions at Canadian Tire and Lowe’s Canada, as well as Summit Tools and Spectrum Brands. Hooper’s background includes time at Southwire Canada and Nestle Waters. They will be responsible for the development and deployment of Home’s LBM program for all building centre locations.

Tom Bell has left Sexton Group. For the last two years he had served as business development manager for Sexton in Western Canada. Bell had a similar role in the early days of the buying group before becoming a dealer himself as owner of Jeni’s, a hardware store in LaSalle, Man. His industry involvement also includes serving as chairman of the WRLA from 2018 to 2019.

... that Hardlines remains committed to keeping you up to date on the issues and news related to the ongoing COVID-19 crisis? We provide regular news updates through our Daily News feed. If you’re not already subscribed to this free service, please click here right now to stay informed!

REGINA — The winner of the $100,000 grand prize in Federated Co-operatives’ “Fuel Up to Win” promotion can thank her husband’s oversight. When David Woitas forgot to buy a jar of sauerkraut on a grocery expedition at Sherwood Co-op, his wife Carol went to the store to get it and ended up receiving the seventh game piece needed to win the big prize. More than $8.5 million in prizes and discounts were available to Co-op customers in this year’s Fuel Up to Win contest, which was held March 5 to April 29.

QUEBEC CITY — Driver Raphaël Lessard returns to the NASCAR Gander RV & Outdoors series sporting the colours of new main sponsor Canac. The 18-year-old from Beauce, Que., had competed in just two events of the season when it was suspended due to COVID-19. Lessard acknowledged that racing without spectators will be an unusual experience, but welcomes Canac as a main partner.

OAK BROOK, Ill. — Ace Hardware Corp. reported first-quarter growth in sales and profit. The co-op’s revenue was $1.4 billion during the first quarter, an increase of 3.8 percent above the first quarter of 2019. Net income was $36.2 million, a year-over-year increase of about 60 percent. Same-store sales increased by 4.2 percent during the quarter due to a 5.1 percent increase in average ticket.

ECONOMIC INDICATORS

Retail sales in March fell for the first time in five months, plunging 10 percent to $47.1 billion. Retail e-commerce sales were $2.2 billion (not seasonally adjusted) in March, an atypical uptick for the month and more similar to the pattern normally observed at the start of the annual holiday shopping period. Unadjusted sales for the building material and garden supply sub-sector were up 2.4 percent in March and up a healthy 4.6 percent year to date. (StatCan)

Sales of existing U.S. homes took their biggest hit in nearly a decade in April. The seasonally adjusted annual rate of sales fell by 17.8 percent to 4.33 million units. Year-over-year, home resales in April fell by 17.2 percent. (National Association of Realtors)

NOTED

Canadian Tire’s website ranks number 32 in visits in Canada, according to SimilarWeb.com, which analyzes websites and apps. Google and Youtube are number one and two, respectively.

OVERHEARD...

“Following large declines in 2020, housing starts, sales and prices are expected to start to recover by mid-2021 as pandemic containment measures are lifted and economic conditions gradually improve. Sales and prices are likely to remain below their pre-COVID-19 levels by the end of our forecast horizon in 2022. The precise timing and speed of the recovery is highly uncertain because the virus’s future path is not yet known.”
—Bob Dugan, chief economist at CMHC, quoted in the latest housing forecasts for the country.