Recognizing the contributions—celebrating the greatness—of your colleagues and team is an important aspect of leadership. This is the mandate of Sarah McVanel, one of our resident experts at our sister publication, Hardlines HR Advisor.

McVanel is a recognition expert, professional speaker, coach, author, and the founder of Greatness Magnified, an organization that specializes in providing training programs and certifications for employees at large.

“Our world needs everyone at work—and I mean everyone—to make it better for peers, customers and beyond,” she tells us. “Think of how many hours people work on any given day. That is how many hours of impact people can have! Why wouldn’t we recognize that so that impact can exponentially increase?”

The power and importance of recognizing great retail was why we launched the Outstanding Retailer Awards more than three decades ago. The ORAs are Canada’s only national awards program dedicated to celebrating the achievements of hardware, home improvement, and building supply dealers and their staff.

The impact these awards have had on dealers—and their teams—is nothing short of inspiring. “Being recognized as a Hardlines winner, along with the networking and fellowship at the awards gala and other Hardlines events, has really helped me grow my business,” says Barry Eidt, who won our Young Retailer of the Year award in 2023. Eidt is co-owner of Arthur Ace Hardware in Arthur, Ont. (Click here to see all of last year’s winners!—your ever-informative Editor)

All Canadian home improvement retailers/dealers who have operated under their current ownership for at least two years are eligible to apply.

And here’s what you win: a trip for two to the 29th Hardlines Conference, in Quebec’s Charlevoix region, Oct. 22 and 23. Your trip includes two nights accommodation and admission to the conference and ORA Gala Dinner, where retail leaders from every part of Canada will come to celebrate the industry’s finest.

But the deadline for applications is coming up fast on Friday, June 14, so act now! Nominate one of your stores, or if you’re a supplier, enter a favourite customer. Download the English ORA entry form HERE. Download the French ORA entry form HERE.

Good luck—and we’ll see you in Charlevoix at the Hardlines Conference.

The world’s second-largest home improvement retailer faces the same economic headwinds that the rest of the industry is facing. And those challenges were reflected in Lowe’s Cos.’ first-quarter financials.

Lowe’s reported Q1 sales totalling $21.36 billion, down from $22.3 billion a year earlier. Same-store sales declined by less than expected, down by just 4.1 percent. Comparable transactions declined 3.1 percent as homeowners continued to delay larger discretionary projects. And comparable average ticket was down 1.0 percent, with strength in the pro business partly offsetting the impacts of lower DIY bigger-ticket sales and ongoing appliance pricing pressure.

The company reported that the U.S.-wide rollout during the quarter of its DIY loyalty program boosted its market share in certain key categories.

The company is also winnowing down inventory levels, which were skewed and over-inflated, like so many other retailers post-Covid. Inventory levels at the end of the quarter were valued at $18.2 billion, $1.3 billion lower than last year, as Lowe’s continued to optimize replenishment to align with sales patterns and improve the efficiency of the spring product flow.

The retailer is looking to drive large-ticket sales, including kitchen and bath, décor, and flooring. But customers have been reluctant to spend on those types of products. “We’re watching for an uptick, specifically on discretionary bigger-ticket projects … We’re not seeing that at the moment,” said Brandon Sink, Lowe’s executive vice-president and CEO, on a call to analysts.

Lowe’s maintained its outlook for the remainder of fiscal 2024. “We continue to expect sales ranging from $84 billion to $85 billion, and comparable sales in a range of down 2.0 percent to down 3.0 percent, with pro sales outpacing DIY,” Sink added.

Gypsum Management & Supply Inc. has reached a deal, through its Canadian business unit, GMS Canada Inc., to acquire Yvon Building Supply Inc., along with its related companies.

The transaction, which is expected to close in July pending regulatory approvals, is valued at up to $196.5 million, according to Yahoo Finance. This latest asset, which includes Yvon Insulation Corp., Yvon Insulation Windsor, Laminated Glass Technologies Inc., and Right Fit Foam Insulation Ltd., also bolsters GMS’s penetration of the dense southern Ontario market, where the Tucker, Ga.-based company has been buying up mid- and larger-sized commercial and pro dealers.

Formerly a member of the elite buying group Independent Lumber Dealers Co-operative, Yvon provides drywall, insulation—including manufacturing and contractor installation services—finishing compound, steel, ceilings, truss core, and construction tools and accessories. Following the close of the transaction, the newly-acquired businesses will continue to operate under their existing names and under the leadership of current Yvon president Tom Scott.

GMS operates a network of approximately 300 locations, with extensive product lines including wallboard, ceilings, steel framing, and complementary products. In addition, GMS operates approximately 100 tool sales, rental, and service centres for its residential and commercial contractor customers.

“We are excited to sign this agreement to have Yvon join GMS Canada and our group of strong, in-market branded companies,” said Paul Green, president of GMS Canada. “The Yvon team has served the Ontario building industry for more than a decade and offers a complete package of primary light construction materials.”

He expects the acquisition to increase his company’s in-market service capability and allow GMS Canada to better support customers in the southern Ontario market. Not only does the move bring more clout to Yvon’s offering, but GMS intends to learn from its new acquisition’s expertise, with the potential to broaden assortments at other locations.

That two-way strategy worked for the specialty building products company in previous deals, like GMS’s initial foray into Canada, when it completed its acquisition of WSB Titan in 2018. In 2019, GMS purchased Rigney Building Supplies, a family-owned operation with one location in Kingston, Ont. Four years later, it made a deal to buy Blair Building Materials, a single-store operation in Maple, Ont.

Another target for cluster expansion by GMS is the west coast. Exactly a year ago, GMS acquired Jawl Lumber Corp., which serves the Vancouver Island market under the Home Lumber and Building Supplies banner. Part of GMS’s acquisition of Titan included Slegg Building Materials, which already has 10 locations on Vancouver Island.

April’s national inflation rate, measured by the Consumer Price Index (CPI), dropped to 2.7 percent year over year, StatCan reported last week. The CPI was at an annual rate of 2.9 percent in March. That lowering of consumer prices spurs hopes of an interest rate cut by the central bank, the Bank of Canada, at its next rate decision on June 5.

That 2.7 percent inflation—after the pandemic boom drove interest rates up to 4.8 percent in 2022—is a three-year low for Canada, analysts say. The Bank of Canada had forecast that inflation would remain around 3.0 percent for the first half of 2024, before slowing to 2.2 percent by the end of the year. Retail analysts say that the drop in consumer spending is primarily because of mortgages coming due for renewal over the past year—at significantly higher interest rates than they were before.

For example, the Canadian average fixed 25-year mortgage rate on a five-year term is currently 6.84 percent. At this time in 2020, four years ago, that same mortgage was 4.84 percent. That two percent mortgage hike might not seem like much, but for Canadians with $500,000 mortgages, paying their mortgages monthly, that amounts to $7,284 in extra payments annually.

Different sectors of the economy experience different levels of inflation, of course. Grocery food price inflation dropped to 1.4 percent annually in April. But gas prices are still highly inflationary. Canadian consumers paid an average of 7.9 percent more for gasoline in April than they did a year prior. Rent went up nationally by 8.2 percent in April, versus the prior April, driven by the mortgage rate increases.

PEOPLE ON THE MOVE

Rob Wallace, chief retail operations officer at Home Hardware Stores Ltd., has left the company. Wallace spent a lifetime at Home Hardware, starting there over 35 years ago while a student and steadily working his way up through promotional and PR roles. In 2015, he was named director of marketing and four years later became VP of marketing. From there he was promoted into the retail operations role. Also at Home Hardware, Jennifer Bryl has moved over from books and lifestyle retailer Indigo to join as director, loyalty, credit, and CRM marketing. She takes over Home Hardware’s loyalty portfolio following the retirement of Michael Gawtrey at the end of 2023.

DID YOU KNOW...?

… that as a valued Hardlines Premium Member, you get to run a complimentary Classified Ad each year in this newsletter? Don’t pass up a free chance to grow your team, add new lines, or advertise a new opportunity at your company. Contact Jillian MacLeod at the Hardlines World Headquarters to book your free Hardlines Classified. (For a full list of all your Premium Membership benefits, click here!)

RETAILER NEWS

Castle Building Centres Group has introduced funding for people who want to get into the trades. The group is offering the opportunity to earn a $2,500 scholarship to any student enrolled in an eligible skilled trade program at a recognized Canadian trade college. The 2024-25 Trade Scholarship program is now open to the public. Deadline for applications is Aug. 16.

RONA inc. has announced the conversion of 19 stores to the RONA+ banner this fall. They include all but one of the remaining Réno-Dépôt stores, along with three RONA big box stores: the RONA Home & Garden stores in Winnipeg and Waterdown (Hamilton, Ont.) and the RONA l’Entrepôt store in Quebec City.

The Home Hardware store at the Altona Mall in Altona, Man., has new owners. Henry Suderman bought the business from the Janzen family, which also owns a Home Hardware Building Centre in Morden, Man. According to pembinavalleyonline.com, the grand reopening is set for the end of this month.

The owners of Midland Home Hardware Building Centre and Design Centre in Midland, Ont., have sold their business to another dealer-owner in the region. Brothers Kevin and Keith Mateff and their wives Wendy and Elizabeth are retiring. Chris Locke, Bill Ecklund, and Kirk McLean, dealer-owners at Orillia Home Hardware Building Centre, have acquired the business.

Wolseley Canada will hold the grand opening this week of its Market Distribution Centre, a 180,000-square-foot facility in Brampton, Ont. The facility includes a branch outlet and showroom, along with a distribution facility with automation that will support Wolseley locations in the Greater Toronto Area and surrounding markets. The new DC will stock 10,000 products. The grand opening takes place May 29 and will feature Maple Leaf hockey legend Doug Gilmour.

Financial services are now available in IKEA Canada stores nationally. In keeping with the company’s desire to make life more affordable for Canadians, IKEA Canada is collaborating with Royal Bank of Canada to launch purchase financing to its customers called “PayPlan by RBC.” This pay-over-time program gives in-store customers access to financing with no hidden fees, says the retailer. The new financing options are available at IKEA stores across the country, with plans to make PayPlan by RBC purchase-financing available for online shoppers starting in June.

The Gendreau family, owners of Garaga Inc., have announced the acquisition of Novatech Group, a Canadian manufacturer of doors and insulated glass. Founded in 1982 by Raymond Ouellette in Sainte-Julie, Que., Novatech now boasts more than 3,000 employees and an annual turnover in excess of $1 billion. The transaction is expected to close this week.

Month over month, investment in building construction increased 4.5 percent to $20.4 billion in March. The residential sector rose 5.4 percent to $14.3 billion, while investment in the non-residential sector decreased 2.3 percent to $6.1 billion. Seven provinces logged increases in residential construction spending, led by Ontario and Quebec. Investment in detached single-family homes grew 6.5 percent to $7.3 billion in March, up for the eighth consecutive month. (StatCan)