MEMPHIS — Orgill, Inc. has announced plans to cancel its Fall Dealer Market, which was scheduled for August 27 to 29 in Las Vegas.

“There were a number of factors that led to this decision, including an abundance of caution as it relates to the safety of our employees, customers and vendors, as well as consideration for how a market would function in an atmosphere where strict social distancing would likely still be required,” says Boyden Moore, Orgill’s president and CEO.

According to Moore, Orgill will hold a fall online buying event to ensure the distributor’s retail customers can still take advantage of the buying opportunities and special deals from the wholesaler and its vendors. Details about the online buying event will be released in the coming weeks.

“While we hope conditions improve between now and August, we believe that refocusing our efforts with our vendors now to an online buying event for all of our customers is a better way for us to deliver on our mission to help our customers be successful,” Moore said.

Moore adds that, while the company realizes there is no better way for customers to experience all Orgill has to offer than by attending in person, he’s confident his company can provide an effective buying experience through the online event.

One of the considerations for any organization that intends to hold a show in Las Vegas in coming months will be the actual availability of rooms. Hotels there are eager to reopen, with many, including the Venetian, saying they hope to restart sometime in June. However, even then, capacity will be restricted. For example, MGM Hotels, the Strip’s largest hotel chain, says it will only open two of its 13 hotels to start, and only at 25 percent capacity.

Another show scheduled in Las Vegas is the National Hardware Show. It was originally to take place in early May but has been rebooked for September 1 to 3. Room availability, and the easing of cross-border travel, will all be factors affecting attendance at the show, especially for Canadian delegates. And while governments are already being urged to reopen borders, the U.S. appears more anxious to make that happen than its Canadian neighbour.

SPECIAL REPORT — When asked to rate their biggest concerns for the year ahead, hardware and home improvement dealers put the long-lasting impacts of COVID-19, staffing and availability of products at the top of their lists.

These concerns were tracked by Hardlines in a national survey of dealers on the business conditions they're facing. And while issues like maintaining staff are ongoing for most dealers these days, the current pandemic has clearly exacerbated these concerns.

At the time of the survey, conducted from mid-March to mid-April, most provinces still had restrictions on even essential businesses. Hardware stores and building centres found themselves forced to move their business to online and over-the-phone orders with curbside pickup and home deliveries. Many dealers reported learning the ropes of the new systems, and e-commerce in general, as their top concerns.

In what should have been a strong quarter for growth, dealers could suddenly only serve a few customers at a time, with staff running back and forth grabbing each of their items. On top of that, many high-risk employees have faced a tough choice between working and prioritizing their health. Dealers have had to balance supporting their employees and keeping the business running.

Naturally, finances rated high on the list of concerns as well. Flyer programs were also scaled back as home improvement retailers were discouraged from advertising non-essential items and consumers were encouraged to limit their shopping excursions—leading to significant missed revenue.

One dealer reported that in the midst of the pandemic, collecting on receivables has become even more difficult. Instead of being able to do what they do best—sell materials—they were forced to spend their valuable time chasing down funds owed to them.

However, despite the challenges they were facing, some dealers made a point to offer up that their top priority remained keeping their staff safe and their communities supported throughout the pandemic. And some are keeping their ears to the ground, intent on learning new best practices and taking away something positive from the crisis. 

SURREY, B.C. — The Building Supply Industry Association of British Columbia (BSIABC) presented its annual Orion Awards last week in its first-ever virtual awards ceremony. The online event was hosted by the BSIABC Chairman Ron Tu of Cedarline Industries.

“We wanted to create an online experience that was professional and allowed the winners to be recognized by their peers and customers, and also took into account the highest scores of our B.C. Mystery Shopper program,” explains Thomas Foreman, president of the BSIABC.

The 2020 Orion winners are:

• Southridge Hardware Ltd., Urban Hardware & Rural Lumber Yards;
• Griff Building Supplies Ltd., Building Centre (Contract Yard);
• Ladysmith Home Hardware, Building Supply Centre or Home & Garden (Mini-Box);
• North Shore Door, Finishing & Specialty Products;
• TIMBER MART LBM Distribution, Supplier Company of the Year;
• Ace Challes, Westform Metals, Most Outstanding Outside Salesperson of the Year;
• Alex Stanculescu, TIMBER MART LBM Distribution, Customer Service Representative of the Year.

The association also used the ceremony to dedicate a fund to the province’s health care workers. Called “Power to the People,” the program reflects the efforts of BSIA members to raise money and donate meals to the individuals on the front line of fighting the pandemic.

“When COVID-19 first began, Ross Power at PowerHouse Building Solutions donated $2,500 to the Building Supply Industry Association of B.C. and the fund affectionately became known as the ‘Power to the People’ program,” says Foreman. PowerHouse is a building materials distributor serving mainly commercial yards in the Lower Mainland.

Additional donations came in from Cedarline, Southridge Hardware, North Shore Door and the BSIABC, until the total exceeded $6,500.

Foreman says the association then approached the other Orion winners, along with award finalists Chase Home Hardware Building Centre, RONA Maglio Building Centre Trail and Terrace Home Hardware Building Centre. They all partnered with a restaurant in their region and a local hospital or eldercare facility.

“I’m touched to think of all the people that are impacted; this is truly a win/win/win for these uncertain times.”

MONTREAL — Stores are waiting for their chance to reopen fully in the coming days and weeks. But the process of letting customers back inside has challenged retailers to maintain a safe and healthy environment.

Robert Di Tomasso is in the business of keeping shelves stocked for retailers. His company, RDTS, has been doing merchandising for stores for 25 years. His customers include BMR Group, pharmacy chain Uniprix, Walmart Canada, pet-products retailer Mondou and French DIY group Bricomarché, as well as some of Canada’s leading hardware manufacturers. But the realities of today’s retail environment require new safety measures. So, Di Tomasso is about to add a new layer of in-store service: sanitary audits.

He says many stores, including corporate locations managed centrally, can vary widely in their respective compliance with safety and health standards set out by local governments and by head offices. The audit can include identifying the presence of signs that instruct customers on behaviours such as physical distancing, as well as the use of masks by staff or their requirement for customers.

“It’s important for the retailer to know their network. They have to make sure their standards are respected and apply to all stores in the same way,” Di Tomasso says. “And it has to be consistent. It has to be the same from month to month.”

Di Tomasso says the new service came out of a major examination of his own business to determine how RDTS could better serve its customers. “We’ve worked hard to change our service offer. We have geared up our own reporting system to be ready for it. We can generate reports with key performance indicators showing where problems lie.”

TJ Flood has been appointed president of Canadian Tire Retail. A 12-year veteran of Canadian Tire, he spent the last two years in the role of president of the company’s FGL Sports division. He succeeds Greg Hicks, who was named president and CEO of parent company Canadian Tire Corp. back in March.

Robert M. McCutcheon has been appointed president of North America for Husqvarna Division. Previously president and managing director of the Americas at Britax Child Safety, McCutcheon has also spent time at Walmart and Conagra Brands during his 23-year career in consumer products.

... that the latest edition of our sister publication, Hardlines Dealer News, was released last week? This monthly e-newsletter has become a valuable tool for dealers and managers across the country. You can subscribe at no charge by clicking here. And now you can check out all the back issues here. Happy reading!

RED DEER, Alta. — According to a post from Peavey’s e-commerce and marketing department, the new website for Ace Canada is now underway. New creative, functionality, content and messaging are being developed to support independent Ace dealers, who are now being supplied through Peavey’s distribution system. Peavey took over the license for Ace in Canada after acquiring the rights from Lowe’s Canada earlier this year.

BRAMPTON, Ont. — Grocery chain Loblaw experienced an estimated increase in revenue from the impact of COVID-19 of approximately $751 million in its first-quarter results. The boost came from increased consumer demand from stockpiling during the onset of the COVID-19 pandemic, causing sales to surge in the final two weeks of March.

TORONTO — Canadian Tire Corp. has signed a five-year extension to its contract with the Canadian Tire dealers, which was originally set to expire in December 2024.

KAMLOOPS, B.C. — The Home Depot in Kamloops may be on unsteady ground. The city’s fire department has closed the store due to “slope instability near the property,” according to Canadian Press. Experts are reportedly at the scene to assess the situation.

LONDON — Kingfisher PLC, which owns the B&Q banner, reported an uptick in sales a month into its phased reopening. Revenues for Europe’s largest DIY retailer rose by 2.7 percent in the first week of May after a 74 percent dive at the beginning of April, as public health restrictions were put into place. All 288 B&Q stores have reopened, as have France’s Castorama and Brico Depot locations. Kingfisher’s 683 Screwfix outlets are offering click-and-collect services.

SUPPLIER NEWS

NORWALK, Conn. — The National Hardware Show has unveiled NHS Connects, a digital platform that enables networking and business to continue leading up to and beyond the show, slated for September 1 to 3 in Las Vegas. NHS Connects will provide year-round digital content for the hardware and home improvement industry. The site can also be used to set up direct appointments with manufacturers and to source new products.

COLOGNE — The German garden trade fair spoga+gafa is set for September 6 to 8 in Cologne, its organizers say. Director Stefan Lohrberg and Catja Caspary, VP of trade fair management, say they will revisit their plans if large numbers of exhibitors cannot attend. The show will provide refunds in the event of a cancellation.

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)

The seasonally adjusted annual rate of housing starts for all areas in Canada excluding Quebec rose 10.8 percent in April from March. The SAAR of urban starts increased by 12.4 percent. Multiple urban starts increased by 35.7 percent while single-detached urban starts decreased by 27.1 percent. (CMHC)

The value of building permits issued by Canadian municipalities fell by 13.1 percent to $7.4 billion in March, the biggest drop since August 2014. The value of residential permits decreased 13.1 percent to $4.6 billion in March, including a 15.3 percent decline in single-family dwellings to $2.2 billion. (StatCan)

OVERHEARD...

“The dealers will tell you they are run off their feet with every single product being concierged. I would suggest to you that they’re probably operating with about 150 percent of the labour cost for not as much sales. So, part of that is just the nature of the service and part of that is friction in the technology.”
—Greg Hicks, president and CEO of Canadian Tire Corp., on the challenge of staffing and operating Canadian Tire stores on a curbside pickup basis only in markets where those stores were forced to close.