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IN THIS ISSUE:
- Senior execs from Federated Co-op and RONA will present at Hardlines Conference
- Is the supply chain still broken? Distributors of LBM speak out
- RenoRun is running on empty as it seeks creditor protection and key exec quits
- Quebec association advocates shorter store hours to ensure better customer service
PLUS: Igor Halencak joins Princess Auto, Guelph RONA dealer acquires another location, Tom Newton pivots to executive coaching, Target adds plastic plants, Hudson’s Bay opens 25th Zellers location, Canadian Tire breaks privacy laws, 3M cuts jobs, West Fraser’s first-quarter sales, Canadian Tire CEO awarded by RCC, retail sales edge down, and more!
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Senior execs from Federated Co-op and RONA will present at Hardlines Conference
Each year the Hardlines Conference is marked by a wide array of talented speakers from both within and beyond the retail home improvement industry. The 2023 roster will be no different, including retail executives from two of the country’s top banners.
Cody Smith (pictured left) is director of Home & Building Solutions, the hardware and LBM division of Federated Co-operatives Ltd. Since joining FCL in 2000, Smith has held various positions in Home & Building Solutions and was promoted to director in 2018. Under his leadership, the department provides strategic partnership and services to over 90 Co-op Home Centres across western Canada. These stores collectively represent more than half a billion dollars in retail sales, making FCL one of the retail giants of western Canada.
Another important retail network will be represented on the Hardlines stage during this year’s conference, as well. Jean-Sébastien Lamoureux is senior vice-president, RONA affiliates, wholesale, and public affairs. He joined Lowe’s Canada, now RONA inc., in 2017 as VP communications and public affairs. He was promoted to SVP, public affairs, asset protection, and sustainable development in 2018, and then to his current role in 2022. Prior to joining RONA, he was a VP at National Public Relations, one of Canada’s leading public relations agencies.
RONA inc. consists of more than 440 stores nationwide, including 211 independently owned, or affiliate, dealer stores. Lamoureux oversees those affiliate stores. Together, they represent more than $2 billion in retail sales.
Under new ownership, the RONA business in Canada is refocusing on winding down the Lowe’s banner in this country and getting behind the RONA affiliate dealer network. Lamoureux will share the latest on where this retail giant is headed.
These are just two of the retail 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 Member-Subscriber, you can use the code HARDLINES23 to get 20 percent off registration! Register here!)
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Is the supply chain still broken? Distributors of LBM speak out
Has the flow of building materials finally resumed its pre-Covid status? Is the broken supply chain fixed at last?
“Yes, I would say that most of the supply chain issues are behind us now,” said Russ Permann, president and CEO of Taiga Building Products, Burnaby, B.C. “We’re not having trouble accessing materials and getting things where they need to be.”
“Sure, fill rates are back up to normal,” agreed Mary Lohmus, executive vice president, Ontario and western Canada, for Goodfellow Inc., the national distributor in Delson, Que. “There are no real supply shortages anymore on our products.”
“The new normal? Yes, I would say,” concurs Mike Schneider, vice-president of business development for Woodstock, Ont.-based Gillfor Distribution.
But those optimistic forecasts are based on the question of whether the shortages of building materials—putting dealers “on allocation”—are behind us. When it comes to pricing—and the economy—the crystal ball gets a lot murkier, these executives warn.
“I think that some of the inflationary pressures we felt through the pandemic are easing on a number of products,” Taiga’s Permann says. “But I think we’d be naïve to believe that they will move back to their pre-pandemic costs in many cases. I’m not convinced that all of the increases that we experienced over the pandemic will necessarily be erased. Some of them will be, no doubt. But I don’t think in their entirety they will.”
But Canada’s building materials industry does not exist in a vacuum.
“It’s also about the world context,” points out Marc Séguin, president of CanWel Building Materials Group in Vancouver. “It’s not strictly North America. There could be something catastrophic happening overseas.”
Séguin believes that the economy of this industry is still motoring on, based on projects that were started during the pandemic. But he warns that the latest data indicate housing starts are coming down and the resale market has slowed, which affects reno spending.
During the height of the pandemic, all of the LBM distributors overcame tremendous obstacles—as did their retail customers. As they were forced to figure out new ways of doing things, they were able to ride out the product shortages while the supply chain regained stability.
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RenoRun is running on empty as it seeks creditor protection and key exec quits
RenoRun, the Montreal-based contractor delivery service that applied for and was granted creditor protection in Quebec on March 28, has been given an extension by the province’s Superior Court as it seeks a buyer or investor. The company says there are a number of potential buyers that have shown interest.
RenoRun became a thriving online business after breaking out of its Montreal base in 2018 to become a significant option for contractors in Toronto and Austin, Tex., its test market in the U.S. The firm, which provides Instacart-style delivery for construction materials, received a US$142 million investment last year led by Tiger Global Management. Since then, ballooning interest rates and disagreements with potential investors have landed it in financial difficulty.
Court documents indicate RenoRun owes about $55 million. However, it also has a number of companies that are interested in it, including several that have signed non-disclosure agreements to have access to its financials. Its last-mile delivery service would make it a good fit for a major home improvement retailer like Home Hardware or RONA inc.
Meanwhile, RenoRun is going through some internal changes, as evinced by the departure of its top merchant, Igor Halencak. He spent the past year at RenoRun, starting out in a consulting role and then moving up VP merchandising. But he has now joined Princess Auto as vice-president of merchandising (see People on the Move in this issue—Editor).
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Quebec association advocates shorter store hours to ensure better customer service
A new survey of retail dealers by the Quebec industry association AQMAT has revealed that attitudes about customers may differ—including from the customers themselves. The survey was shared at the association’s Congrès des décideurs, a conference held last week in St-Hyacinthe, Que.
For example, while 67 percent of customers surveyed said they can find their way around a hardware store without help, dealers believe that 63 percent of their customers are typically looking for assistance. However, 42 percent of dealers and 46 percent of customers agreed that customers expect a high level of customer service in these types of stores. And the dealers themselves felt those customers want more engagement from staff than those staff can reasonably provide. Nor is this kind of service expected or given in other retail settings such as grocery or convenience.
AQMAT is using these findings to push for a change in the number of hours hardware and home improvement stores should be expected to stay open. Given the pressure on staff to provide the kind of detailed advice and product knowledge that typifies their role, these workers deserve and need more time off, says AQMAT president and CEO Richard Darveau.
And even though more and more hardware and building products are being purchased online, customers still seek out the advice of workers in home improvement stores. The survey bore this out: only seven percent of customers surveyed buy hardware or building materials online, and even then, only occasionally. This approach to purchasing only puts more pressure on store staff, a situation further exacerbated by the difficulty nowadays of finding suitable retail help, resulting in poor service, long lines, and disgruntled customers.
To reinforce the effort to lessen the stress on dealers, the survey asked homeowners whether they would prefer a hardware store with reduced hours or limited access to qualified staff. Homeowners voted 61 percent in favour of the former option.
Almost two-thirds of dealers believed that closing on Sundays would not negatively impact their customers, with 68 percent of homeowners agreeing. However, the idea of closing on a weekday was more concerning to dealers, 87 percent of whom disagreed with this option, versus only one-third of homeowners who opposed the idea of a weekday closing.
Acutely aware of the labour shortages facing its members, AQMAT is currently in discussions with its members make its intentions known after further discussion. One thing is sure, says Darveau: the scarcity of labour affects the customer experience and some kind of action will have to be taken.
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Igor Halencak has joined Princess Auto as vice-president of merchandising. Halencak is well known for his time at Lowe’s Canada, which he joined in 2013 after exiting Sears Canada. He moved through a variety of roles there before being appointed EVP of merchandising and marketing during his last year and a half at Lowe’s Canada. Most recently, Halencak spent the past year at RenoRun, where he started out in a consulting role and then became VP merchandising. RenoRun has since fallen into bankruptcy protection. Halencak has confirmed that he will relocate to Princess Auto’s head office city of Winnipeg.
Tom Newton has founded Trillium Executive Coaching. He’s held executive positions in sales, marketing, and general management with companies such as Deft, M-D Building Products, and ODL Canada. But now, he’s using his experience to provide leadership coaching to emerging, mid-level, and senior leaders, as well as teams. Newton is accredited as a Professional Certified Coach and holds graduate certificates in Executive Coaching and Advanced Coaching Practices from Royal Roads University. (For more information, check out his website or email Newton directly.)
Greg Hicks, president and CEO of Canadian Tire Corp. is the winner of the Retail Council of Canada’s Distinguished Canadian Retailer of the Year. The RCC said the award goes annually to a retail leader who “has demonstrated outstanding business success, innovation, community commitment, and exceptional leadership within their corporation, the retail industry in Canada, and the community at large.”
MSL has appointed Kevin Good to a newly created territorial manager position, with responsibility for British Columbia and Manitoba. Good brings 20 years of experience in general renovations and soundproofing to the role. Garry Slezak will continue to cover Alberta and Saskatchewan. In addition, Alessia Floria has joined MSL’s marketing department as a digital marketing specialist.
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DID YOU KNOW...?
... that The 2023 Hardlines Conference will take place Oct. 17 and 18 at the Fairmont Chateau Whistler Resort in Whistler, B.C.? The two-day program includes speakers from leading home improvement organizations such as RONA, Home Depot, Taiga Building Products, Federated Co-op, and Ace Canada. Hardlines subscribers can take advantage of a 20 percent discount on registration, while special pricing is available to dealers.
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RETAILER NEWS
Paul Sharpe, owner of the RONA store in Guelph, Ont., has acquired another location. He’s taken over BFD RONA Building Centre in nearby Kitchener, Ont. Major renovations have already been completed, including a new pro desk and a lumber yard redesign.
Target stores in the U.S. have upped their garden centre game, with a new up-market line of plastic plants. The retailer has developed the line with “plant stylist” and author Hilton Carter, who has worked with Lowe’s before.
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The Bay opened its 25th and final Zellers location last week. This one is in the Hudson’s Bay at Place Rosemère in Quebec. The retailer promises that customers can expect a “playful shopping experience packed full of low prices” with “a core focus on design and value—and a hint of the nostalgia” associated with the venerable Zellers brand.
A report from the Information and Privacy Commissioner for British Columbia says Canadian Tire broke privacy laws by deploying facial recognition technology (FRT) in the province’s stores. Canadian Tire has now removed the facial ID devices, which the company says were used for loss prevention to detect the presence of “persons of interest.” The commission investigated four Canadian Tire stores over three years.
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SUPPLIER NEWS
3M Co. has announced it is slashing about 6,000 positions worldwide at a time when discretionary spending is down. The conglomerate, which manufactures power tools and personal protective equipment in addition to the Scotch Tape and Post-It Notes brands, employed around 92,000 people at the end of the last year.
Faced with “challenging demand,” West Fraser Timber Co. saw its first-quarter sales inch up to $1.627 billion from $1.615 billion in the fourth quarter of 2022. Earnings for the period dropped to $42 million from $94 million in Q4 2022. Seasonal effects, as well as higher mortgage rates that moderated U.S. new home construction, impacted West Fraser’s lumber and North America EWP [Engineered Wood Products] businesses.
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ECONOMIC INDICATORS
Retail sales edged down by 0.2 percent to $66.3 billion in February. Sales decreased in six provinces, and in four of nine subsectors which represent 48 percent of retail trade. Leading the decline was a 5.0 percent drop in gasoline and fuel sales. Sales in LBM and garden categories posted a 0.2 percent uptick from January. (StatCan)
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NOTED
According to a study by the Canadian Federation of Independent Business, labour shortages have pushed the average small business owner to a workweek equivalent of eight days, or up to 54 hours. “Owners have to work more hours, or they have to choose to have their employees work more hours,” said CFIB economist and co-author Laure-Anna Bomal.
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