The statistics don’t lie: revenue earned from retail e-commerce is estimated to exceed one trillion dollars in 2023 in the U.S. alone. According to both the U.S. Census Bureau and financial services provider Fundera, 16 percent of all retail purchases are made on e-commerce sites, which will translate into global online sales totaling $6.3 trillion this year.

But for independent hardware stores and building centres in this country, the reality is quite different. No question, during Covid dealers figured ways to accommodate their customers with virtual service, including curbside pickup. But that interaction was not always digitally driven. Especially in smaller communities, the telephone is often the preferred way to connect. Our latest survey of dealer business conditions bears this out.

Canadian hardware and building supply dealers that sell online averaged, in both cases, 0.9 percent. But the overall industry average of online sales for independents, not including Lowe’s and Home Depot stores, is barely 0.1 percent, because the majority of dealers cite no online sales.

There are exceptions to this data. Brent Perry of Alf Curtis Home Improvements, a Castle dealer with three stores based in Peterborough, Ont., admits his online sales aren’t much higher than those of his fellow dealers. But he says it’s not about how much you’re selling online; it’s about being there, about having a presence.

And his presence has been assisted by Orgill, the giant Memphis-based hardware distributor, which has introduced a suite of new e-commerce options for its dealer customers. Dubbed Impact eCommerce, the service was presented at the latest Orgill Spring Dealer Market, held earlier this year. The platform enables dealers to sell products online with a truly transactional site.

 Dave Audette admits he has a “love/hate relationship” with his store’s online business. He and his wife Jessica are the owners of Lorette Home Hardware, about 20 minutes south of Winnipeg. At seven percent of overall sales, their store’s online business far exceeds the national average for independent dealers.

Dave notes that in the past week the store received 31 e-commerce sales. They ranged from bone meal fertilizer and fasteners to a gazebo, one order for a barbecue and a lawn mower, and some gardening kits. Other items that sell really well online, he adds, include showers, especially by Maax and Mirolin. In fact, they sell twice as much online as in-store.

Cologne Hardware Fair in 2024: combine it with a Rhine cruise!

We’re pretty excited about this one, to put it mildly.

In partnership with the Building Supply Industry Association of British Columbia, Hardlines is pleased to announce a very special addition for Canadians to next year’s International Hardware Fair in Cologne, Germany. We are organizing a business trip to Cologne to attend the largest hardware show in the world, followed by an industry tour of the Rhine River in our own dedicated ship.

Dealers and suppliers can take the trip of a lifetime following the International Hardware Fair. Hardlines, with the Building Supply Industry Association of B.C., Expedia Cruises in Surrey, B.C., and the Asia Pacific Wine and Spirit Institute, presents this unique trip from Cologne to Amsterdam. And you’ll be in great company.

This seven-day trip, which begins March 6, is designed for industry leaders—dealers, buyers, and suppliers alike—who see the benefit of attending unique events and trade shows.

The International Hardware Fair is reason enough for any buyer, dealer, agent, or supplier to get overseas next spring. This show is not only a source for cutting-edge new products, but it’s a wellspring of merchandising and packaging innovations as well. It runs from March 3 to 6, 2024. From there, our group will move right over to board our own cruise ship, the Avalon Passion. It departs Cologne on March 6 and arrives in Amsterdam March 13.

Don't miss this once-in-a-lifetime trip along the Rhine aboard the beautiful Avalon Passion, sailing from Cologne to Amsterdam. And you’ll be making global home improvement industry connections along the way!

Join Dr. Clinton Lee, the executive director at the Asia Pacific Wine and Spirit Institute, who is an international wine and spirit educator. His CV includes being a keynote speaker and the author of “Master the art of Manners.” Dr. Lee has travelled to over 100 countries and has delivered masterclasses on five continents. He is an acknowledged global etiquette master and social media influencer with over two million followers. Our guests will join him on board to learn about wine, scotch, and fine cigars.

Dean McIntosh is a Canadian Red Seal Chef and Butcher, travelling the world and sharing his extraordinary global experiences with a range of foods and cultures. With Dean, guests will be able to prepare regional cultural dishes right on board.

The boat is limited to 100 people, so spots are limited. And we have to confirm enough people to make the trip work by the end of June, so please contact Thomas Foreman, president of the BSIA of B.C., as soon as possible to guarantee your spot on this once-in-a-lifetime adventure!

Fake news or savvy marketing: How old is Canadian Tire anyway?

Canadian Tire Corp. made a big splash in Canada last year celebrating its centennial year in business. The company was founded by John William Billes and Alfred Jackson Billes on Sept. 15, 1922, when the brothers pooled their savings and bought Hamilton Tire and Garage Ltd., an east end Toronto auto shop, for $1,800.

But obsessive industry-watchers like Hardlines (Editor: Don't we have anything better to do?) will note that the first Canadian Tire store, named as such, didn’t open until the following year, 1923, at Yonge and Gould in downtown Toronto.

What, then, to make of Canadian Tire’s 1953 Spring and Summer Catalogue, published at this time of year, 70 years ago? Such historic catalogues are framed and displayed in many Canadian Tire stores across Canada. At the bottom of this one (pictured), the Tire implied that it had been in business a decade longer than it actually had. The banner at the bottom reads: “40th Year of Service: 1913-1953.” But in 1913, A.J. was just 11 years old and his elder brother was only 16. In 1913, they were still nine years from their historic purchase of their first auto shop.

If you think you know the answer to this apparent trickery on dates—probably the work of A.J., who was one of the savviest marketers in Canadian retail history—send an email to steve@hardlines.ca and we will publish the best answer next week! (Clue: It has to do with the car in the foreground, not “fake news.”—Editor)

Spectrum Brands Holdings has agreed to a stipulation with the U.S. Department of Justice to settle the DOJ’s challenge of Assa Abloy’s acquisition of the company’s Hardware and Home Improvement segment. The DOJ had sued to block the sale, saying it would consolidate the door hardware market unfavourably.

Spectrum’s roster includes Remington, George Foreman, Russell Hobbs (formerly Salton), and Black+Decker home appliances. But it's HHI family of products is more hardware directed and includes Kwikset, Baldwin, National Hardware, and Pfister.

Spectrum had acquired these hardware, plumbing, and lock lines in 2012 from Stanley Black & Decker. With Russell Hobbs, Spectrum now had the Black & Decker licensing for small appliances, though not for its power tools.

Fast forward now almost a decade to September 8, 2021. That’s when Spectrum Brands announced its intention to sell the HHI business to Assa Abloy in a deal worth $4.3 billion. But one year later, on September 15, 2022, the DOJ filed its suit. The next move was Assa Abloy’s: to satisfy the DOJ, it agreed to sell off some of its businesses. The Emtek and the Smart Residential Business in the U.S. and Canada will be hived off to Fortune Brands, which is already home to brands like Moen and MasterLock.

These moves pave the way for Spectrum Brands to complete the sale of HHI to Assa Abloy. The deal is expected to close by June 30.

Spectrum had been paring down before this deal. In early 2018, it sold off its Rayovac battery division to another competitor, Energizer. Before the end of that year, Spectrum then sold off its global auto care division, which features brands such as Armor All and STP, to Energizer as well.

DID YOU KNOW...?

… that the latest episode of the Hardlines podcast series, What’s In Store, is now online? In this instalment, we talk to Taiga Building Products CEO Russ Permann. Topics covered include how Taiga responded to the extraordinary supply-chain pressures brought on by the pandemic and how commodity pricing is evolving as we enter the new normal. Sign up now for free and get updates about our latest podcasts in your inbox!

RETAILER NEWS

As reported last week, Canadian Tire will take over the leases of 10 Bed, Bath & Beyond locations. Meanwhile, at least 21 more locations (Editor: check out our special report in next week’s Hardlines to see the actual number!) of the bankrupt bed and bath retailer are also being acquired, this time by Doug Putman, owner of Toys “R” Us, Sunrise Records, HMV UK, and other chains. Putman intends to launch a new brand: rooms + spaces. It will be led by Greg Dyer, former GM for Bed, Bath & Beyond.

On May 12, the RONA Foundation celebrated its 25th anniversary. The organization, which oversees all the philanthropic activities of RONA inc., has chosen to redefine its mission. In addition, the organization has launched “Build from the Heart,” a new community initiative that will help eight non-profit organizations across the country.

Canadian Tire Corp. reported a drop in profits and sales during its first quarter, which saw a fire hit a Greater Toronto distribution centre. Net income for the quarter fell to $7.8 million from $182.1 million a year earlier. Revenues of $3.71 billion were down from $3.84 billion. Comp sales declined by 4.8 percent at Canadian Tire stores but grew 4.8 percent at the Mark’s banner and 3.7 percent at SportChek.

Bernard Hamel, owner of Roger Grenier Inc., held grand openings last week for his two stores in Quebec, Warwick Home Hardware Building Centre and Laurier-Station Home Hardware. The Warwick store has over 5,000 square feet of retail space and an additional 1,000 square feet of warehouse, under store manager Alain Corriveau. Laurier-Station Home Hardware boasts 7,000 square feet of retail and 1,000 square feet of warehouse, under store manager Jessica Pelletier.

SUPPLIER NEWS

Taiga Building Products reported Q1 net sales of $408.5 million, down from $612.7 million a year earlier. The 33 percent decline was attributed to lower selling prices for commodities. Net earnings fell to $13.5 million from $39.5 million, primarily due to decreased gross margin.

Trusscore, the vendor of wall and ceiling products, is sponsoring two scholarships at Conestoga College in Cambridge, Ont., worth a total of $2,500 per academic year. The Trusscore-Conestoga partnership is designed to promote and support local skilled trades training and drive the creation of more opportunities in the trades.

“Let's Go Build” is a recruitment campaign for dealers who are members of the Western Retail Lumber Association. The WRLA’s campaign aims to increase awareness of the opportunities and benefits of a career in the home improvement industry among both traditional and non-traditional audiences. The Let's Go Build website bridges the gap between employers and employees with a “Build Your Career” page that will list job openings for WRLA’s 1,100-plus members.

The Retail Council of Canada will hold its flagship event, RCCStore23, on May 30 and 31 at the Toronto Congress Centre, near Pearson International Airport. Speakers include Retail Prophet founder Doug Stephens, Holt Renfrew CEO Sebastian Picardo, and Danyal Syed Ali, head of consumer and customer insights at IKEA Canada. Check out the complete agenda here or click here to buy tickets.

ECONOMIC INDICATORS

The value of building permits advanced 11.3 percent in March to $11.8 billion, led by a 32 percent surge in the non-residential sector. Residential permits declined by 0.9 percent to $6.6 billion, with permits for 21,400 new dwellings issued during March. Strong gains in British Columbia and the Atlantic provinces were offset by decreases in Ontario and Saskatchewan. (StatCan)

OVERHEARD…

“To celebrate the foundation’s quarter-century, we have adopted a new mission that is fully aligned with RONA inc.'s activities and that will engage our employees, suppliers, affiliated dealers, and customers.”

—Sébastien Lamoureux, senior vice-president, RONA Affiliates, Wholesale, and Public Affairs at RONA inc. and chair of the board of the RONA Foundation.