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CONNECTING THE HOME IMPROVEMENT INDUSTRY
March 25, 2019 | Volume xxv, #12
IN THIS ISSUE: Hardlines Conference promises insightful speakers, fresh new location Federal budget offers good news for homeowners, some positives for dealers CanWel CEO Amar Doman is on the lookout for more acquisitions Hardware wholesaler Square Deal beefs up its team to drive growth PLUS: Ace Canada in Saskatchewan, Amazon will close stores, EPA bans retail sales of methylene chloride, CHHMA annual meeting coming up, Sika will acquire King Packaged Materials, building construction rebounds, Dx3 underlines importance of omnichannel, Amcor buys Bemis and more!
Hardlines Conference promises insightful speakers, fresh new location

WORLD HQ, Toronto ― The Hardlines 24th Annual Conference is shaping up to be one of the best yet. The two-day event, which is this industry’s only national-level conference, will take place November 13 and 14 at the Kingbridge Conference Centre and Hotel in King City, Ont., just 30 minutes away from Toronto Pearson Airport.

Featuring the theme, “It’s All About the Experience”, this year’s location and agenda both reflect that theme with a powerful speaker lineup set in an extraordinary executive resort nestled alongside the scenic Humber River.

This year’s lineup of retail leaders and home improvement experts includes Tanbir Grover, vice president of e-commerce and omnichannel for Lowe’s Canada. Grover will provide an in-depth look at how Lowe’s Canada has integrated the online and bricks-and-mortar sides of its business and what’s next following a new corporate website launch.

From the front lines of home improvement retailing, some leading independent dealers will tell their stories. From Newfoundland, Christine Hand, a Home Hardware dealer-owner and chair of the company’s board, will share her story and insights. From Brooklyn, N.Y., Joe Franquinha of Crest Hardware will explain how he has made his store a memorable destination in his eclectic urban neighbourhood.

Economist Peter Norman of Altus Group will return to the Hardlines stage by popular demand. He will provide his own unique analysis of Canada’s housing and renovation markets. Dan Tratensek of the North American Retail Hardware Association (NRHA) will offer a topline look at some of the association’s most recent dealer research.

But the experience doesn’t end when the presentations are over. Be sure to book a room at the Kingbridge Centre and stay for the duration to make the most of this location’s beautiful grounds and facilities. The centre will also serve as the location for this year’s Outstanding Retailer Awards and our annual pub night kick-off on the evening of November 12.

For more information and to register, visit www.hardlinesconference.ca. And be sure to check back as we finalize this year’s lineup and start selling tickets for the Gala dinner. The Hardlines team is working to make this year’s conference one you cannot miss!

Federal budget offers good news for homeowners, some positives for dealers

OTTAWA ― Despite one broken promise, to balance the federal budget by 2019, the Liberal government did offer some measures in last week’s budget that would positively affect home improvement dealers. The most important one is new guidelines concerning home ownership. First-time home buyers will be able to get a shared equity mortgage through CMHC to finance part of their purchase.

The government would pick up part of the cost of a mortgage for eligible Canadians―up to 5% of the cost of a mortgage on an existing home purchase and 10% on a new home build.

In addition, the limit that home buyers can draw from their RRSPs has been increased by $10,000 to $35,000. That program, according to the budget document, is targeted at Canadians who “face legitimate challenges entering housing markets.” While restricted to first-time home buyers, it would also be opened up to individuals coming out of a marriage breakup or common-law relationship. The program is expected to cost $1.25 billion over the next three years.

Minister of Finance Bill Morneau told reporters that he doesn’t expect the budget measures to cause a spike in housing prices. “We’re recognizing that it is challenging for people in the housing market. It’s a real issue, but what we’ve done is we’ve carefully looked at what’s the best way to deal with that issue.”

The government has plans for other ways to increase housing supply―and make housing more affordable. These include establishing a national expert panel on housing supply and affordability, and providing additional funds for an existing program that supports the construction of new rental units. The budget also provides $300 million for a contest for cities to develop innovative ways to expand their housing stock.

Other measures presented by Morneau included job- and career-related initiatives. A new Canada Training Credit will provide up to $250 per year for workers to apply to training. Dealers could also benefit from the injection of $2 billion of local infrastructure spending to local municipalities.

CanWel CEO Amar Doman is on the lookout for more acquisitions

VANCOUVER ― CanWel Building Materials Group Ltd. is open to further acquisitions, says the company’s CEO, Amar Doman.

In a call to analysts following the recent release of CanWel’s annual results, Doman indicated that he would not slow down in his pursuit of companies to purchase. He would remain on the lookout for opportunities, “when they come up and they fit our model, strategically and value wise,” he said. He further noted that CanWel had successfully raised a war chest of $60 million last fall “to do strategic acquisitions at will.”

CanWel’s most recent acquisition was Honsadar Building Products Group, a U.S. building materials distributor that serves residential and light commercial builders with framing lumber and plywood, appliances, cabinetry, doors, drywall and accessories, exterior finish systems, fasteners, vinyl and composite fencing and windows. The business has seven locations in Hawaii. That deal, worth $100 million, was completed in the latter half of 2017 and the positive impact of that company’s sales boosted CanWel’s latest year-end results.

Hardware wholesaler Square Deal beefs up its team to drive growth

BRAMPTON, Ont. — Square Deal, a regional wholesaler based in Southern Ontario, has been steadily building its business over the past couple of years.

Todd Schoular, owner of the company, has just brought on a new team member, Matthew Strong-Clarke, as buyer and new product development manager. He will manage Square Deal’s expansion in Atlantic Canada, as well as covering Northern Ontario. Strong-Clarke has a solid background in retail, going back to Central Supply in Nova Scotia and including TSC Stores, Lowe’s Canada, Orgill and, most recently, Turkstra Lumber in Southwestern Ontario.

Both men were at the recent ABSDA Buying Expo in Halifax.

Square Deal, formed in 1994, is a family-owned business carrying a range of lines, including Garant, Olfa, Bosch, Pintar, Arrow and Cantech. Schoular notes that his company now has eight people on the road, and the growth in personnel reflects the addition of new lines and ambitions to expand the private wholesaler’s geographic reach.

While the focus at shows like the one in Halifax is connecting with independents, Schoular says he will start soliciting the buying groups in earnest in the near future. “Their members want options again,” he notes.

Square Deal also has a relationship with another regional wholesaler, Coast Distributors, based in Nanaimo, B.C. Schoular says the two companies share ideas and products, currently on an informal basis.

ECONOMIC INDICATORS

Total investment in building construction rebounded in January, up 6.7% from December to $14.8 billion. Gains in the residential sector, up 9.0% to $10.4 billion, led investment for the month. Investment in single-dwelling construction broke from the downward trend set over the last three months of 2018, increasing by 10.6% in January to $5.4 billion. Investment in multiple-dwelling construction was up as well, by 7.2% to $5.0 billion. The non-residential sector continued to moderate, up just 1.5%. (StatCan)

OUT & ABOUT

Most of the Team is heading to Montreal today in preparation for our Meet the Buyers Breakfast with Lowe’s Canada tomorrow. If you managed to snag a ticket before they sold out, we look forward to seeing you!

DID YOU KNOW...

... that Hardlines Classifieds provide a targeted, cost-effective way to find your next hire? Our Classifieds reach thousands of strong candidates in sales and marketing management in the hardware and home improvement industry. Contact Michelle Porter at the Hardlines World Headquarters for a free quote!

RETAILER NEWS

AIR RONGE, Sask. — Ace Canada has welcomed Kushal Parikh as the new owner of the Air Ronge, Sask., Ace store. Under its new management, the 14,000-square-foot store will broaden its product mix over the next few months. “Ace Air Ronge is a well-established business, focused on meeting the needs of local northern communities and offering quality products and excellent customer service,” said Parikh.

SEATTLE — Amazon will close its 87 physical pop-up stores in April. The pop-ups, located in Whole Foods and Kohl’s, as well as malls across the U.S., allow shoppers to try out Amazon products like Kindle e-readers and services such as Prime Video. At the same time, the online giant is planning to expand its Amazon 4 Star stores, which feature products from the site with a rating of four or more stars. The company is also adding more Amazon Books stores and dozens of new grocery stores.

SUPPLIER NEWS

WASHINGTON — The U.S. Environmental Protection Agency has issued a ban on retail sales of methylene chloride, a common paint stripping ingredient, for household use. Expected to go into effect in November, the ban does not affect industrial or commercial use of methylene chloride. Anticipating the move motivated the development of New Generation Stripper by Super Remover, a paint stripper free of the chemical. Granby, Quebec-based Distribution J. Des Serres teamed up with researchers at the University of Massachusetts Lowell to develop the formula.

SCARBOROUGH, Ont. ― The Canadian Hardware and Housewares Manufacturers Association (CHHMA) will hold its annual meeting and conference next week, April 2, at the Mississauga Convention Centre, 75 Derry Rd. W., Mississauga, Ont. Presenters include economist Brian DePratto, sportscaster Joe Bowen and Janice Gross Stein, a political expert who will talk about the driving forces behind the new technical revolution. The 2019 Industry Hall of Fame inductions will be held during lunch. This year’s inductees are: Terry Davis, Home Hardware Stores; Solly Feldman, Accent Fairchild; Dennis Nykoliation, Black & Decker Canada, CanWel and GSW. (For more information and to register, click here.)

MONTREAL — Sika will acquire King Packaged Materials Co., maker of shotcrete, grouts and mortars for the construction, mining and home improvement industries. King operates a facility in Sudbury that includes offices, a fabrication shop and an equipment shop. Other Ontario locations are in Brantford, Burlington and Oakville, while the company also has operations in Boisbriand, Que., and Allentown, Pa.

TORONTO ― Dx3, Canada’s biggest retail, innovation and technology event took place in Toronto earlier this month. Thousands of retailers and marketers flooded the Metro Toronto Convention Centre to learn from the top retail brands such as IKEA, Indigo, McDonalds, LCBO, Snapchat and Tim Hortons. With an emphasis on digital marketing and innovation, attendees learned what the future holds for retailers and their marketing teams. One message was that the old bricks-versus-clicks debate is over. Rather, it’s now about integrating both and assisting the consumer in making an informed decision―both online and off. That person wants a seamless interaction between all the steps of their purchase.

NEENAH, Wis. — Bemis Co. and Amcor Ltd. announced that progress toward their merger has been made with the filing of shareholder documentation and finalization of appointments to the board of directors and senior leadership. The all-stock transaction has the backing of both companies’ boards. Amcor’s acquisition of Bemis was first announced last August, but hit delays due to the U.S. federal government shutdown in January.

NOTED

We’re still getting a lot of mail sent to our old address. Please note the Hardlines World Headquarters has a (relatively) new address: 330 Bay St., Suite 1400 Toronto, ON, M5H 2S8.

OVERHEARD

“Be honest and do the right thing, no matter what the consequences. Work hard but work smart. Treat people the way you want to be treated yourself.” —Duncan Wilson, director of business development for Home Hardware Stores Ltd. He spoke during the recent ABSDA industry gala dinner, where he was honoured with the association’s Lifetime Achievement Award.

Classified Ads

STORE PLANNER (#864) About Home Hardware Stores Limited Home Hardware Stores Limited is Canada’s largest Dealer-owned cooperative with close to 1,100 Stores and annual retail sales of over $6 billion. Located near Kitchener/Waterloo, Ontario, Home Hardware remains 100% Canadian owned and operated.  Home hardware has received designations as one of Canada’s Best Cultures and Best Managed Companies and is committed to providing local communities with superior service and quality advice. Responsible to the Store Design Assistant Manager, Store Planning for assisting Home Dealers with efficient design and management of their retail environments as it relates to Store Design projects for remerchandising existing locations, expansions, new stores and developing proposals for dealer prospects. Develops the store fixture layout for the most efficient customer traffic flow and store operations. Develops the product layout by allocating the appropriate space to various product categories and merchandising programs. Makes recommendations about new and existing stores with respect to building type, store branding treatments and materials, electrical layout, site planning, cost effective construction or renovations as it relates to the store design process. QUALIFICATIONS: Minimum two years’ experience with project management in the retail sector or construction industry preferred; College or University courses in Project, Construction or Facilities Management will be considered an asset. Ability to read and interpret architectural drawings. ‎ Architectural building construction and/or AutoCAD experience an asset. Must have excellent communication skills and a demonstrated ability to coordinate multiple projects and/or task deadlines in a dynamic, fast paced environment. Through previous experience, accuracy and the attention to detail is a requirement for this position. Must be willing and able to travel when required to store locations across Canada. Interested applicants, please submit your resume to Dayna Weber, Recruitment, Human Resources at hr@homehardware.ca. Full posting available at www.homehardware.ca. Phone: 519-664-4975 34 Henry St W, St. Jacobs, ON, N0B 2N0 *While we appreciate all applications received, only those to be interviewed will be contacted. We will accommodate the needs of qualified applicants on request under the Human Rights Code in all parts of the hiring process

Director, Kool-Ray Aluminum Railing Location: Based in Dieppe or Richibucto, NB

Kool-Ray, a division of Imperial Manufacturing Group, manufactures and distributes quality aluminum railing, column, and fencing products for the retail, wholesale, and contractor markets.  Our extensive product line is easy to assemble and offers solutions for any style and project.  For more information about Kool-Ray please visit our website: http://www.koolray.ca. We are currently looking for a self-motivated business professional who has the skills, abilities and passion to manage our Kool-Ray Aluminum Railing division as if they owned it.  You are our ideal candidate if you can lead a multidiscipline team to create and execute business strategies that will result in continued growth of our business throughout Canada and the United States. Key areas of responsibility Grow business profitability Ensure customer have the right product assortment to maximize their ROI Introduce new products & improve existing products Manage concise SKU offering

Knowledge and Skill Requirements Self-starter, highly motivated, and able to work in a fast-paced environment Combination of analytical and customer relationship building skill set Proven experience leading multidisciplinary teams

Bachelor’s degree in management, marketing, accounting, finance or related field is required.   Preference will be given to those who have a master’s degree or professional designation in related field (e.g. MBA, CPA, SCMP).   Consideration will also be given to those who have the equivalent education based on experience.

To know more about this opportunity or to apply, please visit our website:  http://www.imperialgroup.ca/opportunities.cfm

Looking to post a classified ad? Email Michelle for a free quote.

Hardlines
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