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CONNECTING THE HOME IMPROVEMENT INDUSTRY
 
June 22, 2020 | Volume xxvi, #25
  IN THIS ISSUE:
  • BMR’s fall trade show will go virtual, make way for new ERP system
  • How a pandemic helped people rediscover their homes: a manifesto for DIY
  • Industry well-positioned to help rebuild Western economy, study shows
  • FROM THE ARCHIVES: Windsor Plywood expands—on both sides of the border

PLUS: New North American team at Blanco, Lowe’s Canada ranks for sustainability, Ace convention goes online, latest housing market stats, Canton Fair’s now virtual, U.S. retail sales and more!

 
 
 
 
BMR’s fall trade show will go virtual, make way for new ERP system

BOUCHERVILLE, Que. — BMR Group is the latest company to fall in line with a virtual alternative to its buying show. The event, historically held in Quebec City over the first week of November, is adopting a new format and a new date to accommodate conditions of the current pandemic.

A virtual event will now take place the week of October 5.

“There is no way to know what public health recommendations will look like by November, but right now it seems unlikely that we will be allowed to hold an event of nearly 1,500 people in one location,” the company leaders wrote in a letter to dealers. “As these sorts of changes tend to have ripple effects, we have also decided to hold the event earlier in the year.”

Another reason for moving the date up is to make way for the roll-out of a new enterprise resource planning (ERP) system. That platform, which will help the company manage day-to-day business activities with its member-dealers, will be deployed throughout the month of November.

In acknowledging the virtual format for its show, BMR is also considering it an opportunity for innovation. “We may be going virtual, but BMR Group plans to make this trade show as unifying and exciting as ever,” the letter continues.

“It remains a chance for you to find a wealth of useful information to help you plan your purchases for the next year. We have surrounded ourselves with partners who have great expertise in holding virtual events, so we are confident that ours will go smoothly and be enjoyed by all.”

BMR is following a trend established by other retail groups and wholesalers. Home Hardware will host its second virtual market September 13 to 20, while Ace Hardware in the U.S. has announced the cancellation of its Fall Convention in Orlando, Fla., in favour of an online event from September 9 to 12.

 
 
Hardlines
How a pandemic helped people rediscover their homes: a manifesto for DIY

COLOGNE — What is DIY? Is it about fixing your roof, painting your bedroom or mowing the lawn? On the surface, it helps you perform very concrete actions that are necessary for the upkeep and safety of your home. But it is not just about that. It cannot be. Our fast pace of life has arguably made us lose sight of the much greater purpose it serves—helping you improve, create and love your home.

These are some of the notions posited by the European DIY Retail Association/Global Home Improvement Network. The organization, which represents 214 retail home improvement companies around the world, has issued an extended statement. Entitled “Rediscovering Your Home in a Pandemic,” the tract stresses that DIY projects in the home fulfil a human need.

“Finding ourselves under lockdown has also brought something less expected with it by making us rediscover our home’s intrinsic value and the need to look after it,” the statement reads. “Helping you bring your DIY projects to life is the sole purpose of the home improvement industry.”

The organization argues that the COVID-19 outbreak, with social distancing measures and lockdowns, has forced people to rethink what home really means. By April, almost half of humanity was in lockdown. And, says the tract, “as people’s financial situation may deteriorate, carrying out DIY projects could be a more affordable option.” Becoming a DIYer will help people fulfil their needs.

Under the lockdown, people have been forced to cancel trips and curtail outdoor activities. The focus is now on the space we live in. “This rediscovery has triggered in us the desire to take greater care of our homes,” the manifesto continues. But satisfaction is not measured solely in the concrete results of completing projects around the home. The opportunity to acquire and solidify skills helps strengthen self-esteem. “How accomplished we feel when we make something with our own hands!”

Hardware and home improvement retailers play a key role in helping people improve and appreciate their homes. “Aware of our mission, we remain in constant evolution to meet consumers’ expectations and desires and will continue to do so.”

 
 
Industry well-positioned to help rebuild Western economy, study shows

WINNIPEG — A recent economic impact report shows the lumber and building materials industry provides more value and has a broader economic footprint than most other retail sectors in the Canadian economy.

If every household in the Prairie provinces spent, on average, an additional $500 on repair construction activities, it would boost provincial gross domestic product (GDP) by $1.5 billion, generate $938 million in labour income and support 14,800 jobs.

“The lumber and building materials industry is uniquely positioned to help rebuild the Canadian economy after the COVID-19 crisis,” says Liz Kovach, president of the Western Retail Lumber Association (WRLA), which commissioned the report. “A boost in sales in the building supply sector generates far more economic value in Canada compared to a boost in sales in the automobile, appliances, communications equipment or clothing industries, among other retail sectors.”

The report illustrates the wide-ranging impact of the LBM industry on the Prairies, where more than 1,300 stores across 330 communities employ an estimated 36,000 staff—and generated $7.2 billion in sales in 2019.

According to the report, the sector boosted provincial GDP by $2.9 billion in 2001, labour income by more than $1.6 billion and tax revenue to governments of an estimated $559 million, just from operations. Further, the labour income generated by the building supplies dealers sector boosted household spending by an estimated $1.16 billion, supporting businesses large and small in a broad range of industry sectors.

To further stimulate the economy and the industry, WRLA will be launching a “support local” campaign on social media that asks the public to shop at their local building supply store. The organization is also urging the federal and provincial governments to enact home renovation and eco-renovation tax credits to encourage spending and retrofits of existing buildings to reduce their carbon footprints.

“As we emerge from the pandemic, the LBM industry will be a major player in recovery and we can contribute exponentially more if the governments introduce the renovation tax credits,” says Kovach.

“We want to see all Canadians, as much as they can, do their part to help our country bounce back, and these credits will encourage homeowners to spend money to upgrade their homes and spend money to support the LBM industry, and subsequently, the provincial and national economies.”

Hardlines
FROM THE ARCHIVES: Windsor Plywood expands—on both sides of the border

SPECIAL REPORT — A British Columbia-based specialty chain made the news in Hardlines 25 years ago this week.

Windsor Plywood, based in Surrey, B.C., was enjoying some solid growth in the spring of 1995. Hardlines reported the opening of a new store in Whistler, the resort community northwest of Vancouver. Windsor Plywood was overseen in those days by Operations Manager Al Wightman, who was a regular contact for the fledgling Hardlines newsletter during its initial years of operation. It was the chain’s 67th location.

But that expansion, on the site of a former independent dealer, Garibaldi Lumber, mirrored activity across the border as well. A few months earlier, Windsor Plywood had opened its fourth store in Washington state.

The stores are full-service home centres, but they are known for their wood products. Assortments range from mouldings and interior stair components to hardwood flooring and specialty live-edge hardwoods. The company, which started in the early 1950s, began franchising in 1969 and prides itself on having outlets that are locally owned and operated.

Wightman’s operations role is now held by Curt Crego, who is also the point man for franchising. Today, Windsor Plywood has 58 stores, according to its website. More than half of those are in its home province of B.C., but they are spread across the West all the way to the Lakehead.

And, yes, there are still four stores in Washington state.

People on the Move

Blanco North America has announced changes to its executive leadership following the promotion of Garth Wallin to the position of CEO and president. Wallin had previously spent six years as president of Blanco Canada. Wendy McPherson has been named VP, sales and marketing – Canada. Jeremy Cressman has been named VP sales and marketing – USA. Edyta Drutis, director, brand and communications for North America, was formerly Blanco’s director of marketing. Tim Maicher, a 12-year veteran of the company, is now director and head of product management – North America. Mike DiFranco, who joined Blanco 17 years ago, has been named SVP finance and administration – North America. Jake MacDonald, newly appointed director, quality – North America, began his career at BLANCO Canada in 2006 and was most recently senior quality and product manager.

DID YOU KNOW...?

... that every year, Hardlines puts together a 200-slide PowerPoint analysing the Canadian home improvement marketplace? We measure the size of the industry, examine the winning strategies of the country’s top retailers and break out market share by retailer and province. The Hardlines Retail Report will be available next month. You can preorder your copy here and get front-of-the-line access to this invaluable report!

RETAILER NEWS

BOUCHERVILLE, Que. — For the eighth time, Lowe’s Canada has received a Leader in Sustainability award from non-profit Call2Recycle in recognition of its commitment to battery recycling. In 2019, 116,000 kg of batteries were recovered thanks to the recovery units installed in Lowe’s, RONA and Reno-Depot corporate and affiliated stores across Canada.

OAK BROOK, Ill. — Ace Hardware in the U.S. has announced the cancellation of its 2020 Fall Convention in Orlando, Fla., planned for October 20 to 22. It is being replaced by an online event from September 9 to 12. Earlier this year, the co-op also cancelled its spring convention in favour of a virtual platform.

SUPPLIER NEWS

GUANGZHOU, China — The 127th China Import and Export Fair (Canton Fair) has kicked off with the first virtual installment of its event. Nearly 26,000 companies gathered with China’s Premier Li Keqiang attending the virtual opening ceremony and remotely touring the online exhibition halls. Exhibitors have arranged round-the-clock live streams for different time zones and have introduced products according to customer segments.

ECONOMIC INDICATORS

Sales of existing Canadian homes rebounded by a record 56.9 percent in May 2020. The May gain represented a return of only one-third of the activity lost between February and April, and the May 2020 sales figure was still the lowest level for that month since the mid-1990s. Actual (not seasonally adjusted) sales activity was still running 39.8 percent below last May. (Canadian Real Estate Association)

U.S. housing starts rose by 4.3 percent in May to an annualized pace of 974,000 units. Most of the gain came from multi-family dwellings, with single-family homes edging up just 0.1 percent. Building permits rose by 14.4 percent to 1.22 million. (U.S. Census Bureau)

U.S. retail sales in May rose by 17.7 percent from April, reversing April’s 14.7 percent decline. Gains were seen across categories. Nevertheless, sales remained 6.1 percent below their May 2019 level. (U.S. Commerce Dept.)

NOTED

“In Conversation with Retail Leaders in Canada” is a new online series by the Retail Council of Canada featuring in-depth conversations with Canada’s top retail leaders and industry insiders. It’s hosted by RCC President and CEO Diane J. Brisebois. The next one features Haio Barbeito, president and CEO of Walmart Canada, June 24 from 4 p.m. to 5 p.m. ET. Click here for more info and to register!

 

 

 

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