RONA inc. announced last week that it had made major changes within the organization to “simplify its organizational structure to strengthen its position on the market and be more efficient.” That included the elimination of 500 positions within the RONA network across Canada and the naming of a new CEO.

“In light of the current economic downturn, RONA, like other organizations that recently announced restructurings, needed to adapt to reflect new market realities,” says the release RONA sent out last week. “The organization firmly believes that its transition plan aimed at positioning RONA as the leader of the Canadian home improvement industry will support its viability and benefit stakeholders in the long run.”

RONA has clarified with Hardlines that the positions that were eliminated included 300 corporate positions throughout the country—200 of them at the Boucherville head office. The balance of the cuts are from RONA offices, DCs, and stores across the country. The positions affected range from upper management, including some merchants, down to front-line workers in the DCs and in the stores.

The company also affirmed that its head office in Boucherville, on the South Shore of Montreal, will remain in place.

At the same time, Andrew Iacobucci has been appointed CEO. Prior to joining RONA, he was EVP and chief commercial officer at US Foods, a food distribution company based in Rosemont, Ill. Before that, he spent 10 years at Loblaw Cos. Garry Senecal, RONA’s interim CEO, will stay on until the end of the year to ensure a smooth transition.

Earlier this year, Lowe’s Cos. completed the sale of its Canadian business, consisting of Lowe’s, RONA, and Réno-Dépôt-bannered stores, to Sycamore Partners, a private equity firm based in New York. Cutting costs outright can be a trademark of takeovers by private equity. However, when asked if the cuts reflected directives from RONA’s new owners, a spokesperson from RONA clarified to Hardlines that the decision came from RONA’s senior leadership team and was in response to current economic factors. RONA is not the only company facing these realities: Bell recently cut 1,300 jobs, closed or sold off nine radio stations, and eliminated most of its remaining international bureaus.

Concerning the job cuts, RONA’s statement said: “Decisions like these are never taken lightly as they impact the organization’s employees and their families. Employees affected by this change will be supported throughout this transition.”

BMR’s union with European buying group will enhance its overseas sourcing

BMR Group, the Boucherville, Que.-based buying group and wholesaler, has joined a major European buying organization. As part of the A.R.E.N.A. Alliance, BMR becomes that group’s Canadian partner.

A.R.E.N.A. is an international alliance of hardware and home improvement retailers (called DIY stores in Europe). The group is focused on sourcing, negotiation, and quality benchmarks for hardware, garden, and home improvement products. It maintains offices in Paris, Shanghai, Ho Chi Minh City, Warsaw, and New Delhi.

Some of Europe’s leading independent DIY retailers make up the A.R.E.N.A. alliance: Groupement Les Mousquetaires (France), hagebau (Germany), Jumbo (Switzerland), Gruppo Bricofer (Italy), Dedeman (Romania), Pevex (Croatia), Maxeda DIY Group (Benelux countries), and now BMR Group in Canada. Collectively, the eight retail companies, which largely represent groups of independent dealers like BMR, account for more than 15.5 billion euros ($22.4 billion) in sales, and are located in 12 European countries plus Canada.

BMR had been in negotiations with A.R.E.N.A. for two years before joining. For the Canadian buying group and wholesaler, the deal responds to the direction in which many of the industry’s players are headed. “When we look at the overall market, we see the biggest players getting bigger,” says Charles Grégoire-Béliveau, vice-president of merchandising at BMR Group. The alliance with A.R.E.N.A. helps level the playing field. “We were looking at joining something bigger so we can compete better in certain categories.”

Grégoire-Béliveau points out that the membership in A.R.E.N.A. will not mean BMR is going to have direct negotiations with the European offices of any of its domestic vendors—though he anticipates picking up important merchandising and packaging ideas. Rather, BMR will continue to support its relationship with ILDC, which works with the Spancan hardware buying group in this country.

The deal will be for products that A.R.E.N.A. sources overseas, such as outdoor living products, which are almost entirely manufactured in the Far East, often for private labels. “So we’ve found a good fit with buying better and sharing best practices among the other dealers,” Grégoire-Béliveau adds. The result, he says, will be broader assortments, better prices, and improved margins. “It’s good news for the dealers.”

Retail experts to share big insights at this year’s Hardlines Conference

Understanding the direction of retail and the patterns of consumer behaviour are key benchmarks for any retail owner or manager who wants to stay current in today’s competitive marketplace. And there’s no better place to tap the industry’s best thought leaders than at the Hardlines Conference.

This year’s Hardlines Conference will feature some of the brightest minds in retail today. And they’ll share their stories and insights at the conference’s new location in Whistler, B.C., on Oct. 17 and 18. The conference is being held in conjunction with the Building Supply Industry Association of British Columbia. The BSIA will host a table-top trade show concurrent with the conference to showcase its supplier members’ products and services. (For information on how to participate as an exhibitor, contact BSIA president Thomas Foreman directly.)

Dan Tratensek, COO and publisher at the North American Hardware and Paint Association, is a familiar face to conference delegates. He’ll bring the latest research on what NHPA members are facing on the frontlines. Another conference regular, Peter Norman, vice-president and chief economist at the Altus Group, will bring his trademark assessment of housing and economic factors to the Hardlines Conference audience, making sense of interest rates and inflation and consumer behaviours.

A big hit at last year’s conference was a newcomer, Zaida Fazlic, vice-president, people and culture, at Taiga Building Products. Fazlic (shown here) has her own profound passion for the importance of leadership in an organization, and the ways that the demands of leadership have changed during Covid. Her thoughtful and personal insights are not to be missed.

These are just a few of the amazing thought leaders who will be featured at the 27th annual Hardlines Conference. For our complete lineup of presenters, click here.

(The 27th Annual Hardlines Conference will be held at the Fairmont Chateau Whistler resort Oct. 17 and 18, 2023. As a Faithful Hardlines Weekly Report Member-Subscriber, you can use the code HARDLINES23 to get 20 percent off registration! Register here today!)

Saint-Gobain has entered into a definitive agreement to buy Building Products of Canada Corp., the privately owned roofing manufacturer. The deal is worth $1.33 billion in cash. BP Canada, with operations in Montreal, Edmonton, and in Pont-Rouge, Que., had EBITDA of $111 million in 2022.

Saint-Gobain already owns CertainTeed, which has a significant roofing division of its own, in North America. Last year, Saint-Gobain made another major acquisition here with the purchase of siding manufacturer Kaycan.

BP Canada is a major producer of asphalt shingle roofing in Canada. It also supplies other wood fibre insulation panels and acoustic panels. The company had its start when it was incorporated as Building Products Ltd. in 1925, the result of a merger of two companies. Bird and Son was founded in 1795 and built what was to become BP’s Pont-Rouge fibreboard plant in 1905. Ruberoid Co. installed a roofing plant in LaSalle, Que., one year later. BP Canada began production in the West when it built a mill in Edmonton in 1951.

In 1964, the company was acquired by Imperial Oil, then purchased again in 1987 by the plumbing products distributor, Emco. In 2003, it established production in St-Joliette, Que.; three years later, Emco was acquired by private equity.

Saint-Gobain is based in France, just outside of Paris. Considered the largest building products company in the world, it has about 168,000 employees in 75 countries, and 2022 sales totaled €51.2 billion ($73.7 billion). This latest acquisition “will reinforce its leadership in light and sustainable construction products in the Canadian market,” according to a release. The deal is expected to close by the end of 2023.

DID YOU KNOW...?

... that the latest edition of Hardlines Dealer News hit inboxes last week? In this issue, we offer some forecasts for how 2023 is going for dealers, examine one Home Hardware dealer’s “love/hate relationship” with e-commerce, and provide a report on UFA’s support of its farm customers. Hardlines Dealer News is monthly and it’s free: click here to subscribe now!

RETAILER NEWS

Atlantic Canada has experienced its worst wildfires season in years. Kent Building Supplies, which has 49 stores in the region, will match every dollar contributed to the Canadian Red Cross Nova Scotia & Atlantic Canada Fires Appeal. The governments of Canada and Nova Scotia are also matching those donations.

Federated Co-operatives Ltd. is investing $1 million in 15 community projects across western Canada through its Community Spaces program. Since 2015, Co-op Community Spaces has provided $12.5 million to 175 projects in three categories: recreation, environmental conservation, and urban agriculture. This year’s projects include playgrounds in Lloydminster and Englefeld, Sask., and West Kelowna, B.C.; and outdoor trails in Hornby Island, B.C., and Ste. Rose, Man.

Aluminium B. Bouchard is the latest dealer to join TIMBER MART. Located in the Greater Montreal Area, the building materials business is owned by Serge Bouchard. Aluminium B. Bouchard encompasses three buildings—a retail store and two LBM storage buildings—which total 13,200 square feet. It employs a team of almost 60 and has been serving the communities of Laval, Montreal, and the surrounding areas since 1976.

Home Depot held its annual Investor and Analyst Conference last week to update its outlook for 2023. The retailer expects sales and comps to decline between two and five percent from fiscal 2022. It further anticipates a diluted earnings-per-share decline of between seven and 13 percent.

Hipperson Home Hardware in Nelson, B.C., is celebrating its 100th anniversary throughout June. Founded by Bill and Becky Hipperson in 1923, Hipperson Hardware joined the Home Hardware banner in 1981. It has passed through five generations and is now operated by dealer-owner Courtney Dooley and her siblings, Brittany Winje and Linden Horswill.

Ace Hardware of Oak Brook, Ill., has acquired a portfolio of HVAC, plumbing, and electrical home services companies from Grove Mountain, an Atlanta-based private equity firm, reports Franchise Times. The 12 firms operate under the Unique Indoor Comfort brand, a company headquartered in King of Prussia, Penn.

Dollarama reported higher first-quarter sales and earnings as inflation pressures continue to drive traffic to discount retailers. The Montreal-based company’s net earnings for the quarter rose to $179.9 million, from $145.5 million a year earlier. Overall sales rose by 20.7 percent to $1.29 billion, while comp sales were up 17 percent.

SUPPLIER NEWS

Techniseal is underscoring the durability of its products, while appealing to commuter frustration about ongoing construction that ties up traffic, in a new publicity campaign. In three billboards, near Montreal’s Jacques-Cartier bridge and Lafontaine tunnel, and on Toronto’s Gardiner Expressway, the manufacturer invokes its motto "Ça dure longtemps", or “Built to last.” In a pledge that its products will last longer than major construction projects in the respective areas, Techniseal boasts “See you after the work in the tunnel” in Montreal and “See you when the Eglinton LRT is done” in Toronto.

Aliaxis, parent company of Ipex in North America, announced it has registered in Hydro-Québec’s Renewable Energy Certificates Pilot Project. The company intends to seek certificates covering 100 percent renewable electricity consumption for all its Quebec sites for the year 2023.