TORONTO — This was supposed to be a year of celebration. After all, Hardlines has endured in this industry for 25 years. But, in just two months, the world has changed dramatically. Like all of you, our business has changed too. That’s why we’ve made the difficult decision to cancel the Hardlines Conference in 2020.

The 25th Annual Hardlines Conference was to take place in the third week of October. Some of the top retail leaders in Canada—and the world—had agreed to present as part of our birthday bash. We also looked forward to hosting leading dealers, retail head offices and industry suppliers, as we do every year, as delegates at the conference.

But the impact of the COVID-19 crisis has been too great, and that impact may persist for months to come. Even if it doesn’t (and we hope that’s the case!), the retail home improvement industry will be busy catching up and taking care of its customers and workers as we get used to a new kind of “normal.”

Through the rest of the year, we will stay focused on covering the industry and the current crisis. We will find stories about how dealers are coping around the country, while staying close to industry leaders for their input and insights.

We will also focus on updating our two key research reports, the Hardlines Retail Report and the Hardlines Market Share Report. We want these, like our other products, to help retailers and suppliers alike to understand the market and develop their strategies for 2021 and beyond.

Until that time, everyone here at Hardlines wishes you the very best as you do business in these challenging times. And on a personal note, we hope you and your loved ones are keeping safe and well through this crisis. We look forward to coming out the other end and will be here for you as we do.

Canadian Tire stores enjoy positive Q1 comps as online sales soar

TORONTO — Canadian Tire Corp. saw its first-quarter sales drop by 2.7 percent overall. Sales by CTC fell to $2.78 billion, from $2.83 in Q1 2019; revenue fell 1.6 percent to $2.85 billion.

However, sales through its Canadian Tire stores were up 2.2 percent. CTR’s comp sales for the period were up 0.7 percent, in spite of the impact of the COVID-19 crisis. In fact, an upside of the current situation was a spike in online sales for Canadian Tire dealers of almost 80 percent. 

“To date, we have seen a quantum leap in our e-commerce performance across all of our banners and we have accelerated our planned investments in our digital capabilities to meet our customers’ increased desire to shop online,” said Greg Hicks, president and CEO of Canadian Tire Corp.

And more people were putting those purchases on their Canadian Tire credit cards. In Q1, revenue for CTC’s Financial Services division increased four percent over the prior year due to higher credit charges resulting from growth of 4.2 percent in gross average credit card receivables.

The first-quarter results definitely saw impacts from the rise of the pandemic. Despite being up against a very strong quarter last year, comp sales trended well for the company right up until March 11. After that, “consumer spending patterns changed dramatically, with a focus on essential items, resulting in Canadian Tire experiencing growth in certain categories, such as household consumables and cleaning solutions, exercise and sports equipment and accessories and laundry solutions, while categories such as backyard living, tools and automotive saw declines,” the company noted in a release.

After an initial rush for essential items, customer traffic at Canadian Tire-bannered stores began to normalize as Canadians adopted self-isolation measures. Once confined to their homes, people began shopping online, driving CTR’s positive quarterly comps.

MILTON, Ont. — As dealers and managers across the country scramble to meet changing conditions under the siege of the COVID-19 pandemic, the suppliers that keep the stores filled have faced challenges of their own.

Dave McNeil, VP allied products and national accounts at Taiga Building Products, is someone who recognizes the chaos of the new normal. “I call it business as unusual,” says McNeil. “There is no such thing as a ‘real market.’ We’re all dealing with conditions on the fly—and then it may all change again overnight.”

The Burnaby, B.C.-based wholesaler, which has DCs across the country, quickly adapted to the changes, beginning in March. During the week of March 16, the company began rolling out a series of modifications to its workplaces. Workers were split into two cohorts and work hours were shifted. Where warehouse staff were once working 10-hour shifts, each cohort now works a five-hour shift.

“It reduced our capacity in the moment—as we paid our forklift truck drivers to stay home, for example—but demand was reduced too,” McNeil says.

Orders and deliveries have been spaced out, with staff picking orders on weekends now. This enables them to maintain physical distancing, without the whole shift being onsite—and at risk—at one time.

“We’re getting creative.” And, he adds, many lessons learned from this crisis will likely continue. “Some practices we’ll keep and some we’ll just smile about in two years.”

NATIONAL REPORT — Individuals and companies within the retail hardware and home improvement industry have been helping others throughout the current crisis. And suppliers have been no exception. Here are a few good news stories.

Jacobs & Thompson Inc., a Toronto-based manufacturer whose product lines include weatherstripping under the Polar Bear brand, has partnered with the federal government to supply 6,000,000 face shields. J&T’s 12 manufacturing facilities throughout North America, including its Polar Bear weatherstripping division, have added production lines to help various health agencies, first responders and retailers that may require the face shields.

Regal ideas, a maker of aluminum railing systems, donated 100 microwaves to the Atira Women’s Resource Society in Vancouver. The society is dedicated to supporting women and children affected by violence. The organization offers safe and supportive housing as well as education and advocacy aimed at ending all forms of gendered violence. “We hope to encourage many others to help those in need,” says Andrew Pantelides, vice president of marketing and business development at Regal ideas.

IPEX is doing its bit in the fight against COVID-19 by repurposing some of its manufacturing operations in Ontario. With the retooling, the plants can produce 50,000 face shields a week for health care workers and front-line employees. A dedicated group in the organization took the project from concept to execution in just 21 days. The company expects the first masks to come off the line in about two weeks.

Early on in the rise of the pandemic, Liteline Corp., a lighting manufacturer based in Richmond Hill, Ont., stepped up to help out. Mark Silverstein, VP sales and marketing led a campaign to donate a portion of Liteline’s sales during April and May to purchase equipment for healthcare networks locally and across North America. “We have committed to donating at least 10,000 masks, 10,000 sets of gloves and 15,000 bottles of hand sanitizer,” he says.

Workplace uniform manufacturer McCarthy Uniforms has provided uniforms for the likes of Home Depot, Canadian Tire and Walmart—as well as generations of young people going to private schools. During the current crisis, the company considered temporarily shutting its doors. Instead, it decided to keep its people employed, sourcing and making medical isolation gowns made of upcycled school uniform fabric. It’s also delivering masks to frontline workers. So far, McCarthy has delivered more than 100,000 units to hospitals throughout the Greater Toronto Area.

Daniel Beliveau has been named senior marketing activation manager – Canada at K+S Windsor Salt Ltd. A nine-year veteran with the company, he most recently held the title of national retail sales manager.

Gary Gill, national account manager for Canadian Tire at Apex Tool Group, is retiring. He started in the hardware business 35 years ago as the director of marketing at Minwax. In 1992, he moved to Sherwin-Williams, where he spent more than a decade, then spent another decade at Graham & Brown, this time as general manager of North America. Four years ago, he joined Apex Tool. Taking over from Gill is Randi Cox, formerly senior national account manager at Keter.

At SFA Saniflo Canada, a Cambridge, Ont.-based maker of drain pumps and macerating and grinding toilets, Jeremy Martin has been appointed Western regional sales manager. His background includes stints at Fastenal, Ace Hardware and RONA. Robert Marchio joins as Central Canada regional sales manager, overseeing Ontario, Manitoba and Saskatchewan. He was most recently general manager at Global Plumbing and Heating.

DID YOU KNOW...

... that dealers and managers can sign up at no charge for our sister publication, Hardlines Home Improvement Quarterly? But suppliers can also subscribe, for a small annual fee, to this important trade magazine. Click here to sign up today!

RETAILER NEWS

SASKATOON — Federated Co-operatives Ltd. has launched its Co-op Helps campaign to coincide with the online trend of Giving Tuesdays. In order to help communities and individuals in Western Canada impacted by the pandemic, the co-op is making a $250,000 donation to food banks in the region. It is also asking Westerners to submit the names of individuals who have gone out of their way for neighbours and friends. Up to 1,250 of them will be selected to receive a $100 Co-op gift card. Nominations are open until May 19 at www.wecare.crs.

BOUCHERVILLE, Que. — As the COVID-19 pandemic continues, Lowe’s Canada says it will extend its temporary $2 an hour wage premium for all eligible full-time, part-time and seasonal hourly employees through May. The policy applies to Lowe’s, RONA and Reno-Depot corporate stores, contact centres and supply chain facilities in Canada.

CALGARY — United Farmers of Alberta Co-operative Ltd. announced it is donating $60,000 for COVID-19 relief in support of vital services in rural areas. The amount includes $19,000 donated by UFA delegates on behalf of UFA, with funding directed to local food banks and other supports.

QUEBEC CITY — Canac-sponsored NASCAR driver Raphaël Lessard is raring to get back on the course as the organization adds some closed-door events to its schedule following a hiatus. “Simulations are well and good but there’s nothing like a real course,” Lessard told Le Journal de Montréal. NASCAR’s season was interrupted in March after its first four events.

SUPPLIER NEWS

MISSISSAUGA, Ont. —The Lumber and Building Materials Association of Ontario announced it has partnered with a software training support company to provide its members with virtual drivers’ education courses. Designed for vehicles from pickup trucks to cargo vans and flatbed trucks, the courses include defensive driving, fall protection and practical cargo securement. Click here for more info.

RICHIBUCTO, N.B. — Imperial Manufacturing Group has announced its recent acquisition of Pointe-Claire/Green Valley Steel Group Inc., a steel service centre offering warehousing, slitting, levelling and cut-to-length of flat rolled steel products. Its corporate head office is located in Hamilton, Ont., and it has facilities in Pointe-Claire, Que., and Bolton, Ont. “After working on this agreement for quite some time now, I am proud to say that it has finally come to fruition,” said Imperial CEO Normand Caissie.

CAMPBELLVILLE, Ont. — Goodfellow Inc. and Texas-based Fortress Building Products have expanded their partnership to deliver Fortress’s Evolution brand of steel deck framing to the Canadian market. “Goodfellow has been partnered with Fortress on their railing products and have found them to be a first-rate manufacturer,” said Ken Vanderwal, the wholesaler’s building materials product manager.

MOORESVILLE, N.C. — Simpson Strong-Tie will have an extended assortment in Lowe’s stores in both Canada and the U.S. this spring. Lowe’s is calling it the widest selection of Simpson Strong-Tie hardware products in the marketplace. Designed to serve contractor customers, the line includes framing hardware and fasteners. Lowe’s will offer localized Simpson Strong-Tie assortments in markets prone to earthquakes and hurricanes that have unique building code requirements. They will also be available on LowesForPros.com.

ECONOMIC INDICATORS

The public health crisis has taken a toll on activity in the Greater Toronto housing market. Realtors reported 2,975 residential transactions through the board’s MLS System. This result was down by 67 percent compared to April 2019. New listings for the month totalled 6,174, down on a year-over-year basis by a similar rate compared to sales. (Toronto Regional Real Estate Board)

NOTED

Castle Building Centres Group has launched a fund to support the family of one of its dealers. Kurt and Tina Gratto of Masstown Hardware Castle Building Supplies lost their daughter Jamie Blair and her husband Greg Blair in the tragic mass shooting in Nova Scotia in April. The Blair’s two sons, Jack and Alexander, managed to escape unharmed are now in the care of their stepbrother. Witnessing the outpouring of industry support, and hoping to offer the children a legacy of hope, Castle has established The Jack and Alexander Blair Trust. Contributions will go toward meeting their future needs for cost of living, education, health, as well as extracurricular activities such as sports and hobbies. For more information or to make a donation, click here.

OVERHEARD...

“UFA was built by farmers, for farmers. We know that communities are sustained by strong people, both physically and mentally. Now, more than ever, we believe it’s our co-operative’s responsibility to ensure our rural communities have access to the services they need to thrive even in the face of adversity.”
—Kimberly MacDonald, community investment manager for United Farmers of Alberta, on the co-op’s decision to donate $60,000 for COVID-19 relief in rural areas.