NATIONAL REPORT — Both The Home Depot Canada and Canadian Tire shortened store hours this past weekend, while expanding their paid time-off policies to protect workers’ incomes.

These are excellent leadership moves by two of the country’s leading hardlines retailers. Unfortunately, these kinds of options are not typically available to most smaller dealers. Nevertheless, across the country, stores are coping with the pandemic in their own ways to accommodate the needs of both their customers and their employees.

Mark Westrum, a partner at Westrum Lumber, a TIMBER MART dealer in Roleau, Sask., posted on Facebook one morning last week the simple message, “The plain and simple of it is ... We Are Open.” Westrum admits the store is somewhat less busy than usual, as many customers are practising social distancing. But a lot of his customers, who are mainly contractors, are sending in their orders by text, email and phone, and making payments over the phone.

At Star Building Supplies, an ILDC member in Winnipeg, Vice President Mark Kennedy also finds that online options for customers are helping. Traffic is down slightly for the contractor-oriented dealer, but business remains strong with pro customers. “You can still do a lot of business over the phone and via email,” he notes.

In fact, more and more dealers that specialize in the back end are reporting that they are closing their retail areas to walk-in customers, but taking orders by phone, fax and email.

Serving a very different customer base in a well-heeled neighbourhood in Toronto’s west end, Joe Valenza at Baby Point Hardware says the crisis has not hurt business. With many people working from home in Toronto, Valenza sees them coming in with projects to undertake. “They’re home and they get bored.” He is seeing a lot of sales of paint, furnace filters and toilet-repair products.

In northern British Columbia, Marilyne Laferriere and her husband Sylvain serve the town of Mackenzie with their store, Ace Victory Building Centre. She reports that business has slowed somewhat. “We’re pretty isolated in Mackenzie so people are divided as to whether or not to self-isolate and we are considered an essential service so we’re still open. We are offering delivery to people’s homes for those self-isolating.” She adds that she and Sylvain have considered cutting hours but haven’t done so yet.

A building centre in the Lower Mainland is finding business is actually up slightly. However, one store employee, who asked not to be identified, reports that her store has lost staff due to concerns over COVID-19. Two of them felt uncomfortable taking the bus to work, while another has a compromised immune system and would be at risk if exposed to the virus.

And despite—or perhaps because of—shortened hours, the Home Depot store in Toronto’s Stockyards retail power centre remains busy. A visit there last week found the store filled with both DIYers and contractors. According to one employee, people continue to come in for home needs, everything from cleaning products to furnace filters.

The paint department was especially busy. “I figured I’d break quarantine for this,” said one woman who headed to the checkout with five cans of paint and an armful of roller trays. “It’s got to get done anyway.”

ABSDA Building Supply Expo sees good turnout to Halifax

HALIFAX —The 2020 Atlantic Building Supply Dealers Association (ABSDA) Building Supply Expo drew hundreds of Canadian dealers and vendors to Halifax earlier this month.

The show kicked off the evening of March 10 with an ice-breaker event at the Halifax Convention Centre, complete with entertainment from a live-band karaoke set-up. Dealers and vendors had a chance to network and enjoy themselves before the show began in earnest the next morning.

Dealers arrived bright and early, ready to buy. Attendance was good despite concerns and increased vigilance surrounding the spread of COVID-19, which the World Health Organization has officially named a pandemic. Many dealers and vendors took precautions such as avoiding shaking hands and maintaining a safe distance.

Representatives from many of the major banners—Home Hardware, Lowe’s Canada and RONA, Castle, BMR, TIMBER MART, Sexton Group and TORBSA—were in attendance to support their members.

A number of the banners, including Sexton, held meetings and receptions for their dealers in advance of the show. Tom Bell, VP of business development for Sexton Group, said he was very pleased with the results of day one for his group.

Despite a slow-down on the second day, most vendors were happy with the traffic and business they generated on and off the show floor. In fact, a number of them mentioned that the opportunity to interact with customers in a more casual, informal setting was one of the best things about a show like this.

ABSDA President Denis Melanson was pleased with the show’s success. Having engaged some members as ambassadors this year, the association also created a leadership team to promote the show and encourage industry peers to attend.

“We’re very happy. Participation was good and strong, both on the vendor side and dealer side, so everybody seems to be happy,” says Melanson. “We’re grateful that we have a really strong vendor community and dealer support for our show.”

While concern around the COVID-19 pandemic didn’t seem to prevent anyone from attending, it was one of the most-discussed topics on the show floor. Many correctly anticipated it may be the last show they’d attend for the foreseeable future: Home Hardware announced the cancellation of its Spring Market the day after the show wrapped, with the National Hardware Show's postponement notice coming through just hours later.

Melanson acknowledged the seriousness of the situation, but says timing and the fact that the virus had only begun to reach Atlantic Canada worked in the show’s favour.

“We really didn’t hear about anybody not coming because of it,” says Melanson. “I think people need to pay attention to it, especially if they have compromised immune systems.

“But put it this way: I’m happy our show wasn’t in another two to three weeks.”

SPECIAL REPORT — Head offices are taking steps to protect their staff and looking for ways to direct their dealers.

At the BSIA of British Columbia, association President Thomas Foreman is concerned about how his members are reacting to the COVID-19 pandemic.

He says everyone has to take this situation seriously and avoid what he calls a “seat-of-the-pants approach.” He recommends any company, whether a dealer or a supplier, consider their options for working at home and how teams can effectively stay connected if that happens. Even routine tasks like getting cheques into the bank can become problematic. “Can your operation be set up to operate remotely?” he asks.

Bolton, Ontario-based TORBSA announced last week that it would close its office to all visitors. However, day-to-day duties in the office are continuing, to maintain support for the buying group’s member-dealers and their suppliers.

Other head offices are watching out for their members as well. Bernie Owens, president and CEO of TIMBER MART, shares his members' concerns over the challenges they're facing as stores try to cope with the pandemic. “Now is the time to get behind your solid clientele and service them,” he says. “But don’t extend more credit to customers who are already slow. The credit side is an imperative right now. Now is the time to chase your receivables.”

He says dealers must also make decisions that are best for their staff, such as whether to reduce store hours or staff. However, he adds, such measures could affect the incomes of families already impacted by the crisis. “In these extraordinary times, the health and well-being of our employees is of paramount importance. With any changes to the business—whether it’s hours or staffing—we must make them keeping in mind not just their health, but their well-being,” he says. “We can only succeed by working as a team.”

Foreman at the BSIA agrees that communication and collaboration are key. “I think it’s really important that dealers talk to their staff—not to instill fear, but to lead and assure them.”

SASKATOON — Weathering the downturn that persisted throughout much of the Prairies last year, Federated Co-operatives Ltd. reported a drop in sales to $325 million in 2019 from $359 million the year before.

According to the company’s annual report, challenges facing the co-op included poor weather that impacted the ag side of the business, economic conditions that pressured the home and building sector and stiff competition within the food sector.

However, despite this adversity, the Ag and Consumer Business Unit, of which the Home and Building Solutions Department (HABS) is a part, made improvements internally to minimize the economic impacts. The increased use of technology was one of them.

“Overall, 2019 was a challenging year, with a soft economy and lumber depreciation having a significant impact in the Prairie provinces,” says Cody Smith, director of HABS. “Specific to the Home and Building Solutions business, FCL and the Co-operative Retailing System has not been immune to these headwinds and it had an impact on our sales, reducing them to $325 million from $359 million.

“We continue to remain excited about our Home and Building Solutions’ long-term vision, investing in several key areas that make our business viable well into the future,” Smith says. “The first area was a new POS platform, from Mi9, that is currently being rolled out to local Co-op stores and is expected to be completed in 2021.”

The initiative is expected to make procurement easier and more secure through handheld mobile devices. “This transition is vital to us gathering more information and better utilizing our data for business decisions.”

Over the past year, the Home and Building Solutions business was restructured to increase its focus on lumber, Smith notes. “We continue to build value for the Co-op retailing system by adding lumber personnel to centrally procure lumber on behalf of the stores.”

That focus on building materials is also being reflected in the stores with new merchandising. “Another area of investment in 2019 was new LBM selling centres that fit an eight-foot bay, showcasing core building material categories that are typically difficult to display,” Smith adds.

Local Co-ops continue to grow their businesses and become more sophisticated. That includes amalgamations and the acquisition of Hanna Building Supplies by Westview Co-op in Olds, Alta., in early 2019. There are now 111 Co-op home centre stores in the West. 

Dany L'Heureux has joined OCTO Purchasing Group as director-Industrial Safety Segment. Most recently, he was with Stelpro as director of sales. Before that, he was category manager for tools at Lowe’s Canada.

Martin & Associates/Dover Finishing Products has added Tamirah Fairbarn as the company’s new regional rep in Ontario. Fairbarn comes over from Sherwin-Williams, where she spent 21-plus years in a variety of roles. She will call on independent paint, hardware, industrial (OEM) and regional chains.

DID YOU KNOW...

... that in light of the recent developments in relation to the spread of COVID-19, we’ve decided to make the Hardlines newsletter free to everyone for the next month? If you, as one of our Faithful Subscribers, know someone who would benefit from our info each week, please pass this link along to them. We have to take care of each other through these difficult times!

RETAILER NEWS

SASKATOON ― Federated Co-operatives Ltd. kicked off its annual Fuel Up to Win contest earlier this month. Now in its eighth year, the event gives Co-op members and customers in Western Canada an opportunity to win more than $8.5 million in prizes and discounts. Customers will receive a game ticket for each purchase from participating Co-op stores until April 29.

TORONTO ― The Home Depot Canada is temporarily adjusting store hours in response to COVID-19. Stores will now close daily at 6 p.m.; they typically close between 8 and 10 p.m., depending on the day. All hourly full-time associates will receive an additional 80 hours of paid sick or personal time, and part-time workers will receive an additional 40 hours. And if any staff are diagnosed with COVID-19, Home Depot Canada will continue to pay them during that time.

LONGUEUIL, Que. ― BMR Group has announced the addition of Ferronnerie Meilleur in Ferme-Neuve to its Quebec network. Father-and-son team Normand and Jérémie Lachaîne have owned the store since 2001.

TORONTO — Canadian Tire Corp. has reduced store hours at its Canadian Tire Retail stores and temporarily closed its other stores, Mark’s/L'Équipeur, SportChek, Atmosphere, Party City, Pro Hockey Life, National Sports and PartSource, until April 2. Operations will be reassessed at that time. During the closure period, full- and part-time employees will continue to be paid.

QUEBEC CITY ― Canac is sponsoring Raphael Lessard and Kyle Busch Motorsports in the NASCAR Gander RV & Outdoors Truck Series. Lessard’s Toyota Tundra bore Canac’s colours last week at Homestead-Miami Speedway. “Raphael is a young man from our region, and it is important for Canac to encourage the next generation of major sports in Quebec,” said Canac President Jean Laberge.

ATLANTA — Home Depot says it’s in the process of resetting its outdoor power equipment segment to showcase products by brand. The company will be highlighting EGO, Toro, Milwaukee, Ryobi, Dewalt and Makita assortments for the spring.

BURLINGTON, Ont. ― IKEA Canada has temporarily closed all stores nationwide, effective immediately. The retailer had already closed its dining facilities and children’s play areas.

SUPPLIER NEWS

NORWALK, Conn. ― The National Hardware Show has new dates after postponing its May time slot due to the COVID-19 outbreak. The 75th anniversary of the show will now take place from September 1 to 3, 2020, at the Las Vegas Convention Center. The third day of the event will be shortened, ending at 1 p.m. All amounts paid to attend the show in May will roll over for participation in the rescheduled event.

MONTREAL ― Intertape Polymer Group reported net income of $11.68 million for Q4, up from $10.61 million a year earlier. Total revenues came to $291.48 million, up from $287.65 million, largely on the strength of an acquisition in 2018. For the full fiscal year, IPG posted profits of $41.22 million, a decline from $46.64 million, due to higher interest and tax expenses. Revenues for the year rose 9.5 percent to $1.15 billion.

ECONOMIC INDICATORS

Sales of existing Canadian homes rose by 5.9 percent in February 2020, marking one of the larger month-over-month gains of the past decade. The increase was largely the result of a 15 percent jump in activity in the Greater Toronto Area (GTA). Actual (not seasonally adjusted) sales activity stood 26.9 percent above February 2019. (Canadian Real Estate Association)

U.S. housing starts fell by 1.5 percent in February to 1.6 million units. Single-family starts dropped to 1.01 million. Building permits for February declined by 5.5 percent to 1.46 million. (U.S. Census Bureau)

U.S. retail sales fell by 0.5 percent on a monthly basis in February. On a yearly basis, sales rose by 4.9 percent. The monthly decline almost negated January’s upwardly revised 0.6 percent gain. (U.S. Census Bureau)