NATIONAL REPORT — Across the country, dealers are responding to the COVID-19 pandemic by working smarter to preserve sales and ensure the health of both their staff and customers.

In Osoyoos, B.C., Carla Jorgens, manager of Osoyoos Home Hardware, explains how her store has adapted. Tape has been put on the floors to mark out six-foot distances and the aisles down the side of the store have been cordoned off. Customers can come in and stand in the main aisle, “then our staff members go and grab the products for them. It’s awful because we can’t deliver the kind of customer service we’d like.”

The store has also added a free delivery service during specific times of the day. “Lots of people are taking us up on this.”

The store usually benefits from increased business during spring break, but that didn’t materialize this year. “I’ve been looking at our sales and it’s not even worth it for us to stay open,” she admits. “But we’re remaining open as a service to the community.”

Severn TIMBER MART in Coldwater, Ont., has taken more extreme steps. Heather Mallard Houle, co-owner, has closed the retail area of her store to walk-in customers. An intercom has been set up in front of the store, along with a payment terminal. Customers are instructed give their orders by phone or text. They are then instructed to drive around to the back of the store, where they must wait at a stop sign while their order is loaded into their vehicle for them.

At Matériaux Lavoie in Gatineau, Que., General Manager Chantal St-Pierre has seen a hike of about 25 percent in paint sales during the COVID-19 crisis. Customers are steered around the store by staff at a safe distance, using gloves to handle merchandise and expedite their visit as much as possible.

At Dwight Lumber, a Sexton dealer in Dwight, Ont., co-owner Debbie Monson says the store is still letting people inside, “but we strongly suggest to anyone with compromised health that they stay outside and we’ll come out to the parking lot.” Like Jorgens in Osoyoos, she has put tape on the floors, while barriers have been set up between the cashiers and customers.

The store does most of its business with contractors. Monson says her pro customers continue to place orders, with sales of lumber staying strong. “And in the store, most of what we are selling now is cleaning products and disinfectants.”

At Star Building Supplies in Winnipeg, management has taken measures to protect staff and reassure customers. Now, deliveries to residential jobsites, which were formerly taken right into the house, are being left in the garage or at the curb.

Canac stores are operating at reduced hours but President Jean Laberge is seeking to avoid closures for the time being, Le Journal de Québec reports, to keep his staff off unemployment. Both the safety and the financial security of Canac’s employees remain his top concern, he said. In the meantime, Canac stores are limiting the number of customers admitted at a time and sticking to debit and credit payments.

Atlantic association recognizes industry achievement at gala

HALIFAX — The Atlantic Building Supply Dealers Association (ABSDA) capped off day one of its 2020 buying show with its annual gala dinner earlier this month. The sold-out event brought together nearly 650 show delegates (before the impact of the COVID-19 crisis had fully hit) to celebrate some of the association’s achievements of the past year.

It also included the presentation of awards recognizing individuals who’ve gone above and beyond supporting the association and the entire building supply industry.

Three new awards were introduced at this year’s event: Salesperson of the Year, presented to Kevin Arseneau of Building Products of Canada Corp; Young Leader of the Year, which was awarded to Duane MacDonald of Callbecks Home Hardware Building Centre; and Pleasant Building Supplies was recognized as Retailer of the Year.

Additionally, two Lifetime Membership Awards were presented along with the 2020 Industry Achievement Award. Lifetime Membership awards were given to Harold Mills from Nova Scotia Building Supplies and Gary Sullivan from PPG Architectural Coatings. And the 2020 Industry Achievement Award was presented to Vince Poirier of CertainTeed Canada.

After dinner, entertainment was provided by legendary Canadian rockers April Wine.

“We keep it light, try not to have too stuffy of a night,” says ABSDA President Denis Melanson. “People loved the entertainment. April Wine put on a good show and people had fun.”

RED DEER, Alta. — Peavey Industries is working to be able to service the national network of Ace dealers following the acquisition of the license for Ace Hardware in Canada from Lowe’s Canada.

The deal transfers to Peavey the agreements with 104 independent Ace Hardware stores in Canada, which have been supplied through the wholesale business of RONA. Peavey already owns 92 farm and hardware stores from Ontario to British Columbia.

While that transfer will take place over a six-month period, the buying function for Ace has already been moved to Peavey’s head offices in Red Deer, says Peavey CEO Doug Anderson. Peavey has put product specialists in place who are focused on the Ace lines, but general category management remains unchanged, he adds. Anderson expects to see some line changes as supply shifts from Lowe’s Canada’s DCs to Peavey’s and his team gets more commitments for orders from Ace dealers in coming months.

Product will be supplied to dealers through either the Red Deer distribution centre or the one in London, Ont. That location is the former head office of TSC Stores, which Peavey acquired outright at the end of 2017.

One thing many Ace dealers will need that Peavey doesn’t have yet is lumber and building materials. Anderson says Lowe’s Canada will continue to supply those lines over the next 24 to 36 months. “We need systems and agreements in place, so this gives us time to build out those systems and agreements to support the dealers. It gives us some breathing room.”

Peavey has also managed to secure Ace’s dealer support team. Guy Lichter, formerly director of dealer conversion for Ace at Lowe’s Canada, has moved over to Peavey as national sales director for Ace. He brings with him a team of eight territory support managers. However, says Anderson, “Our focus for the next six months to a year is the standardization of the existing Ace network.”

He adds that Peavey is now closely aligned with Ace International and will leverage Ace’s know-how and systems.

TORONTO ― Despite concerns in the early days of the coronavirus’s spread worldwide, hundreds of people, including marketers, online content developers and IT managers, gathered in Toronto on March 10 for Dx3 Canada.

The purpose of the event was to present expert insights from leaders who shape the retail industry. Attendees had the opportunity to hear from some of the most innovative retail professionals in North America, along with the tech experts who help retailers become more effective.

On day one, keynote speakers and panel discussions were held at two stages simultaneously throughout the day. The stages flanked a large trade show area for sponsors to share products and services.

One session even featured digital marketing managers from two of Canada’s biggest home improvement retailers on the stage together.

Robert Allan of Lowe’s Canada (centre, left) and Andrew Go of Home Depot Canada were joined by Erika DeHaas of Sobey’s (far left) and Tara Wickwire of National PR to talk about how a retailer can rebuild trust with customers by telling an effective, and authentic, brand story.

In another session, representatives from other retailers talked about the challenges of creating an effective environment for customers. Amina Mattern, head of strategy for Loblaw Media, talked about one effort that failed, even though the retailer had worked hard to listen to shoppers. “Customers didn’t like self-checkout. It turns out they liked the in-store experience.”

To be successful, a retailer has to stay in sync with the needs and expectations of customers, Mattern noted.

Unfortunately, the conference and trade show at the Metro Toronto Convention Centre was cut short the morning of day two. This followed a report in the Globe and Mail that a case of coronavirus had emerged from a large mining conference held at the same location a week earlier.

Cornerstone Building Brands has announced the appointment of Richard Hill as VP of marketing–Canada. Hill was most recently director of marketing at Ace Canada. Prior to that, he helped lead the marketing efforts for Home Hardware Stores Ltd. with partner Morris Saffer. Cornerstone manufactures windows, vinyl siding, insulated metal panels, metal roofing and wall systems under such brands as Ply Gem and North Star Windows.

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RETAILER NEWS

ST. JACOBS, Ont. ― Home Hardware Stores Ltd. says it’s taking special measures to ensure continued service during the COVID-19 crisis. Team members are working diligently to replenish inventory, putting top priority on delivering essential goods to customers. Many stores are offering specialized services, including customized in-store hours, online orders and deliveries for customers at home. All company events have been cancelled until further notice, including the company’s Spring Market, which is being retooled as a Virtual Online Market.

MISSISSAUGA, Ont. ― Niagara Building Centre is the newest independent LBM retailer to join the Castle Building Centres group. Located in Fonthill, Ont., the brand-new Castle location will be a full-service home improvement store with a lumberyard. Partners Chris Baxter, Kevin Bolibruck and Gary Bolibruck were looking for a well-supported, member-centered relationship. Construction is underway with the targeted grand opening set for early September.

BOUCHERVILLE, Que. — The owners of Vermilion RONA in Vermilion, Alta., are preparing to open a second store. James and Patrick Willis, the father-and-son team who own the business, will hold an opening in early April of their new 3,000-square-foot store in Goodsoil, Sask. The latest location will create eight new jobs.

MOORESVILLE, N.C. — Lowe's Cos. is refinancing debt with the sale of a portfolio of notes worth about $3.95 billion. The notes were sold at rates ranging from four percent to 5.125 percent. The notes come due in 2050. Lowe’s plans to use the net proceeds from the sale to repay the principal. Any remaining proceeds will be used for general corporate purposes, which may include the repayment of other indebtedness.

SUPPLIER NEWS

MINNEAPOLIS ― 3M and Ford will partner to manufacture air-purifying respirators for health care facilities. As the Big Three auto makers seek to revive their businesses during the coronavirus outbreak, Ford is “going into our parts bin to see what can be done” to help 3M make its hooded respirators, Ford Executive Chairman Bill Ford told the Today show. 3M is facing high demand for its powered air-purifying respirators during the pandemic.

VANCOUVER — West Fraser Timber is taking steps in response to the continuing COVID-19 pandemic. Starting today, lumber production at all British Columbia sawmills is being curtailed for one week. This will result in the elimination of an additional 24 million board feet of production for the week in addition to previously announced curtailments. In addition, plywood production at West Fraser’s Alberta plywood and Slave Lake veneer facilities will be temporarily suspended until at least April 6.

ECONOMIC INDICATORS

Sales of existing homes in the U.S. rose by 6.5 percent in February. The seasonally adjusted annual rate of 5.77 million was the strongest increase since February 2007 and was 7.2 percent above last February’s rate. Single-family home sales rose from a SAAR of 4.82 million in January to 5.17 million in February, 7.3 percent above the rate a year prior. (National Association of Retailers)

OVERHEARD...

“We have a vacation home in Goodsoil and thoroughly enjoy spending time there. We had been looking to expand our business for some time, so when we heard that there was an opportunity in the area, the decision was easy to make.”
—Patrick Willis, who, with his father James Willis, is preparing for the grand opening next month of their second RONA store.