Home improvement distribution needs to step up its technology game, says Russ Permann, CEO of Taiga Building Products. In the latest episode of Hardlines’ What’s In Store podcast series, he warns that big global players could decide to invest in Canada, disrupting the market drastically.

Permann says these “disruptors” have deep pockets and the latest technology, which they could use to intervene in building products distribution in Canada. That is, unless the players here embrace tech more fully.

“I look at other supply chains—and other industries—and I see that there’s a lot of room for us to improve as a business,” Permann says. “We have a lot of catching up to do. And you look at building materials: there’s an enormous addressable market around the world, but in North America in particular. There’s a lot of material flowing, [yet] there is a sizeable lack of transparency in our supply chain. If we don’t, as an industry, work to address this gap, there will be others attracted to this market, due to its sheer size.

“And they’ll focus on disrupting the business as it looks today.”

While no one knows the future, Permann admits, it hasn’t escaped his attention that there are parties “that can raise a lot of interested capital” if they wanted to seize a large part of the building materials distribution business in our country and south of the border.

“Outsiders are watching and they’re willing to take a risk to disrupt this business, just because of its sheer size. And the fact that you can see that it’s an industry that hasn’t spent a lot of time focusing on productivity improvements and efficiencies; we still get materials to market in largely the same way. We still build things in largely the same way.”

In this latest Hardlines podcast, Permann says that Taiga has been making significant investments in technology in recent years. It’s invested in its warehouse management systems, starting in 2015, and rolled out tech programs throughout its operations consistently over the ensuing years. “It took us a while, but what it’s done for us is make us much more internally transparent, accurate in our work… and we’ve made enormous progress.”

(You can listen to our complete conversation with Russ Permann in the latest episode of the What’s In Store podcast series! Like all our podcasts, it’s free, so sign up here!)

Retail innovators will share their stories—and vision—at Hardlines Conference

The theory of retail can be complicated, evasive, and elusive. The practice of retail is all that, plus lots of hard work, luck—good and bad—and big heartedness. Three speakers at this year’s Hardlines Conference embrace and embody all those traits. And they’ll share their stories and insights in Whistler, B.C., Oct. 17 and 18.

Geneviève Gagnon (pictured above, right) is the head of three businesses in Quebec. She is CEO of a chain of building centres called Gagnon La Grande Quincaillerie. She also operates a wholesale business, Évolution Distribution. Finally, she runs a truss and wall panel manufacturing division called Évolution Structures.

Gagnon is part of an illustrious hardware family business that she’s been involved in since her childhood. Her father, Yves Gagnon, was the president of BMR Group for many years. As the third generation of her family, Geneviève has been responsible for many big changes to update the business.

On the personal front, Geneviève is deeply involved in her community, contributing to causes including child cancer and palliative care homes. She also manages a family, as the mother of three children.

Move with us now to central British Columbia, to the small community of Mackenzie, a remote town with a population just 3,800 people. There, Marilyne and Sylvain Laferriere (pictured above, left) own and operate Ace Victory Building Centre. We invited the Laferrieres to share their story at our conference, including their wins and their challenges. They were keen to take the podium. But, warned Sylvain, “It won’t all be good news.”

In 2005, motivated by their frustration with a lack of products and services in the area, Sylvain and Marilyne purchased an existing business in town. They renovated the store, added product lines, and Victory Building Centre Ace was born.

Local engagement is essential for the Laferrieres, who love their town. It’s also an important aspect of their business model. These 2019 Outstanding Retailer Award winners will share the ups and downs of delivering on that model during the challenges of staff shortages, combined with rising insurance rates, wages, fuel, and transportation costs.

These are just a few of the amazing 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 today!)

WRLA launches giant ad campaign to attract workers to the industry

The number-one topic among dealers and suppliers country-wide is labour and how tough it is to find people. That problem is being acutely felt in western Canada, where the Western Retail Lumber Association has found it’s a persistent problem.

The search for good talent is made even more difficult by the low profile the home improvement industry has with potential new hires. Because the opportunities are not widely known, WRLA is launching a giant ad campaign to promote awareness of the industry and the potential it has for new recruits.

Called “Let’s Go Build,” the campaign will highlight the LBM industry to all of western Canada, using print, digital, and social media. The message of the ads seeks to connect people who are looking for their next career move with the businesses in this industry.

“For years we have talked about how rewarding it is to work in the LBM industry and have often commented on how this may be one of the best kept secrets, which needs to change,” proclaims a message on the WRLA website. “This is where Let’s Go Build comes in. Let’s Go Build is a dedicated campaign designed to raise awareness of our industry and share the incredible diversity of available career options.”

The launch date is May 10. On the same day, the association is hosting an information webinar to outline how its members can participate in the ad program. (Members can join the webinar by clicking here.)

Quebec industry group AQMAT welcomed more than 150 participants in late April to its 2023 Decision Makers Conference. It was held at the Centre de congrès de St-Hyacinthe under the theme of “Finding ways to reduce our uncertainties.”

Hosted by AQMAT CEO Richard Darveau, the event presented the results of a survey of dealers and consumers on how hardware stores can best meet their communities’ needs in a time of staffing crunches and unpredictable costs. Both groups of respondents agreed in preferring to reduce store hours, such as by returning to Sunday closures, rather than sacrificing the availability of employee expertise.

In presenting the results, Stéphane Gendron, vice-president at market research firm CROP, stressed that hardware stores join computer stores at the top of the list of retail sectors in which customers rank knowledgeable staff as a top priority.

Gendron also pointed to a disparity in the perception of customers, most of whom see themselves as able to browse a hardware store autonomously, and dealers, who estimate that a majority of shoppers require assistance. “That’s good news: if we concentrate on the consumer [who needs help], we don’t waste the employee’s efforts.”

The audience was also treated to a panel discussion about a new service Périscope, a data-driven platform AQMAT is developing to help to dealers, buying groups, distributors, and manufacturers to navigate supply-chain and hiring decisions.

Samuel Nadeau, financial director at Couture TIMBER MART, represented the dealer’s perspective. Mélanie Belley, sales director at CanWel, spoke to the manufacturing and distribution side, while Évolution Distribution’s Martin Ménard addressed the concerns of buying groups.

Following the panel, conference guests gave collaborative feedback into the design of the platform’s dashboard. Among the themes emerging from the discussion were the need for training in the use and interpretation of Périscope data. Materials prices and construction starts were ranked as the most critical indicators users would need to consult.

Before departing at day’s end, delegates socialized over mocktails while a Tarot reader was on hand to entertain the delegates.

AQMAT will next gather its members on Nov. 11, 2023 at its 11th Recognition Gala, once again being held at Montreal’s historic Fairmont Queen Elizabeth Hotel.

Patrick Fedor has joined Vicwest Building Products as VP, commercial. Fedor has 20 years of experience as a professional engineer and senior sales leader in the building industry. In his new role, he will oversee and manage company-wide sales and business development. In addition, he will coordinate and lead the technical services group with a key focus on compliance, sustainability, and new product development.

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RETAILER NEWS

Canadian Tire Corp. has made a deal to acquire the real estate leases of 10 former Bed, Bath & Beyond locations for $1.6 million. CTC will turn six of the sites into Mark’s stores. These will be relocations of existing Mark’s stores in Grande Prairie, Medicine Hat, Red Deer, and Strathcona County, Alta.; Langley, B.C.; and Oakville, Ont. CTC says the new sites represent larger, more convenient locations. The remaining sites will become home to four new Pro Hockey Life stores, a brand that Canadian Tire purchased in 2013. This move will bring the Pro Hockey Life store count up to 20. The 10 leases represent more than 242,000 square feet of combined retail space. Bed, Bath & Beyond declared bankruptcy and closed the last of its 54 stores in Canada.

Leis Lumber Co. Ltd. in Goderich, Ont., is joining the BMR Group family, effective June 10. A family business for almost 20 years, it will operate under the BMR banner with store redevelopment slated for completion by the end of the summer. Leis Lumber boasts a 26,000-square-foot floor space, a large lumber yard, and a fleet of 12 trucks servicing an area spanning three counties.

GMS Inc., the specialty building products distributor and parent company to GMS Canada, has expanded its presence on Vancouver Island with a new acquisition. Jawl Lumber Corp., which operates under the Home Lumber and Building Supplies brand, has one location in Victoria. Founded in 1960 by the Jawl family, it sells lumber, engineered wood, doors and framing packages, siding, and other related building materials. One month earlier, GMS completed the acquisition of Blair Building Materials in Maple, Ont.

W.W. Grainger reported Q1 sales of $4.1 billion, up 12.2 percent from $3.6 billion a year earlier. Diluted earnings of $9.61 per share represented a 36 percent increase from the comparable period of 2022.

IKEA Canada is expanding its electric vehicle charging network in Central Canada. The retailer added 25 EV charging stations at five store locations in Ontario and Quebec. With $300,000 in funding from Natural Resources Canada’s Zero Emissions Vehicle Infrastructure Program (ZEVIP), plus more than $305,000 of its own funds, IKEA installed the stations at stores in Montreal, Boucherville, Quebec City, and Ottawa, as well as at its distribution centre in Beauharnois, Que. IKEA now has EV charging stations at 14 stores across Canada.

AD says member sales in Q1 rose by six percent to $18.3 billion, setting a new record for the quarter. Purchases by member companies from AD suppliers reached $4.63 billion. Net distributions to members grew 11 percent in the quarter to $386.3 million. Same-store member sales increased by 12 percent.

Walmart Canada officially cut the ribbon on its new distribution centre in Moncton, N.B., last week. The facility is the first DC for Walmart in Atlantic Canada. It measures 223,000 square feet and will employ 130 people.

SUPPLIER NEWS

CGC Inc. has announced it will relaunch a gypsum quarry in Little Narrows, N.S. The $104 million investment will allow the quarry to produce up to 2 million tonnes of raw gypsum material per year. “This investment will cement our long-term commitment to the Canadian market and our dedication to providing the best experience for our customers across North America,” said Chris Griffin, CEO of parent company USG Corp. The company has pledged to respect Mi’kmaq treaty rights and share the economic benefits of the re-launch.

NOTED

Dave Campbell, who steered the Ontario Lumber and Building Materials Association as its president for the past 21 years, was honoured last week with a retirement party at the Waterside Inn in Port Credit, Ont. The event was organized by Campbell’s LBMAO colleague Joanne Moquin and emceed by his successor, current association president Trevor Small. Guests included fellow association leaders: Thomas Foreman from the BSIA of British Columbia and Denis Melanson from the ABSDA in Atlantic Canada. Attendees included LBMAO board members past and present, including current chair Rebecca Gravelle of Renfrew Castle in Renfrew, Ont.

OVERHEARD…

“Since entering into this post I’ve met with several actors in the sector. You will always find in me an ally for putting in place the necessary solutions [to overcome the challenges facing the industry].” —France-Élaine Duranceau, minister responsible for housing in Quebec’s ministry of municipal affairs and housing, speaking at Quebec industry association AQMAT’s recent 2023 Decision Makers Conference.