QUEBEC CITY ― At its latest trade show, held last week in Quebec City, BMR Group unveiled a new service offering for its dealers. Called the IMAGINE Program, it was developed by Laval-based merchandising and detailing company RDTS to optimize marketing, sales and store traffic. In its ongoing efforts to improve the customer experience, BMR will begin implementing the merchandising program beginning January 2020.

“We are really pleased to present this brand-new program to our dealers, which, in addition to offering more tools for powerful merchandising, is free of charge for them,” says Martin Ménard, BMR’s vice-president hardware and imports.

The program will be applied initially to the following departments: hardware, plumbing, electrical and paint. BMR plans to deploy the IMAGINE program to other departments in 2021. Vendors will contribute to the cost of executing the service.

BMR expects the program to deliver on a number of levels. One aim is to improve dealer loyalty to the BMR banner, while improving customer service. IMAGINE will also be used to standardize offerings in the stores across the BMR network, while increasing the visibility and availability of products through both national and regional planograms.

“This initiative reiterates our commitment to provide impeccable in-store service while continuing to help and support our dealers in their development,” Ménard adds. “We firmly believe that IMAGINE is a winning choice for both our vendors and the members of our network.”

VAUGHAN, Ont. — WSB Titan has announced that its Watson Building Supplies division has purchased Rigney Building Supplies in Kingston, Ont. It will become Watson’s seventh location in Ontario.

Previous owners Claudio and Nadia Saccon will stay on to manage the location, along with their team of 23 employees. They will report to General Manager Chuck Quick. In addition, Rigney’s purchasing arrangements will now be handled through Watson Building Supplies.

In a letter to suppliers, the principals at Watson stated, “This purchase is an important strategic component of our long-term growth strategy and we are thrilled with the opportunity to work with the many valued employees and customers of Rigney for many years to come.” The letter was signed by Doug Skrepnek, president of GMS Canada and head of Watson Building Supplies; Doug’s son Evan Skrepnek, who has stepped in as VP of Watson Building Supplies; and Travis Hendren, EVP of WSB Titan and a VP with parent company Gypsum Management & Supply, Inc. (GMS) in the U.S.

“Rigney is a great acquisition with the same type of culture that we’ve enjoyed at Watson for so many years,” says Doug Skrepnek. “And it rounds out our geographic footprint in Ontario.” The company has six other locations in the province.

WSB Titan, which is headquartered in Vaughan, Ont., just north of Toronto, serves residential, commercial and institutional markets with wallboard, insulation, lumber, roofing, steel framing and other complementary building products. Purchased in 2018 by GMS, its roots are a partnership of Watson Building Supplies in Vaughan, Shoemaker Drywall Supplies, based in Alberta, and Le Groupe Beauchesne in Quebec. (Beauchesne is not part of the GMS takeover. However, it remains a shareholder in Titan.)

MONTREAL ― At last month’s RONA-Ace Canada Buying Show in Montreal, Ace dealers were out in full force, riding the high of another year of growth.

At a time when many big boxes are feeling the pinch from e-retailers like Amazon, Ace has its constituency locked down. “For a lot of communities, Amazon can’t get to them,” says Nelson Lemos, director, dealer sales and relationship. “[Ace is] their only way.”

Not that Ace is neglecting the online channel itself. On the contrary, buy online, pick up in store (BOPIS) orders are key drivers of traffic both in store and on social media, while special orders also allow dealers to make the most out of the floor space.

Appliances are a growing category, says Lemos, with some 30 dealers currently looking to incorporate them into their offerings. By fulfilling online orders in store, dealers can tap into the market for appliances without needing to carry a large number of bulky items.

Meanwhile, Ace is putting Lowe’s Canada’s resources to work for dealers. “We’re focused on the dealer, ensuring they’re profitable and building traffic,” says Marketing Director Richard Hill, citing an improved flyer program and Ace’s commitment to “leveraging data from the relationship with Lowe’s.”

In the course of the gala at the end of the show’s first day, Ace Canada had its own Builders of Success categories alongside RONA’s. Ace Victory Building Supplies of Mackenzie, B.C., took the Community category. Ace Leader in Leader, Sask., was recognized as the Up and Comer, while Ace Building Centre Vanderhoof, in Vanderhoof, B.C., won for Lifetime Achievement.

The Vanderhoof store is “an example of a dealer that’s really pushing the envelope and serving its community,” says Lemos. It has one of the most extensive selections of appliances of any Ace Canada dealer, in a showroom that also includes kitchen and lighting categories.

Thirteen dealers were honoured for their advances in e-commerce in another indication of the growing importance of Ace’s digital platform. “Not only do they have great sales online, but they’ve also done a great job of promoting the Ace brand and leveraging social media,” Lemos adds.

NATIONAL REPORT ― Buying group leaders from across the country are watching current business conditions in anticipation of the direction of the industry—and the future for their members.

Bob Holmes is general manager of TORBSA, the Bolton, Ont.-based buying group. His observations include keeping a close watch on the political scene on both sides of the border to anticipate what will happen with issues such as tariffs.

“I think the tariffs certainly haven’t helped and, in some cases, we were talking to one manufacturer yesterday who told me that his business was off 20% all because of tariffs. So it does create an issue and it does slow things down and I think we’re going to continue to see that until we understand who the next President of the United States is going to be next year.”

Steve Buckle, president of Winnipeg-based Sexton Group, shares Holmes’s concerns about tariffs. “The overall economy globally and particularly the unpredictable application of trade tariffs are dampening Canadian economic prospects. This uncertainty carries forward into key product lines such as wood and steel-based products, where prices are proving challenging to forecast.”

Holmes is also concerned about margins. “Business across the country in some commodity products is off anywhere from 20% to 25%. And we don’t see that making up any sort of ground over the balance of the year.” He wonders whether his dealers are going to make up any of the difference that’s been lost already this year.

At BMR Group, based in Boucherville, Que., CEO Pascal Houle is keeping his eye on the growth of online selling. “Not surprisingly, e-commerce remains a ‘must’ within the retail industry,” he notes. “BMR will continue to evolve, improving substantially its online selection for hardware and building materials. We will also move toward our digital shift, which will help us acquire new technologies to enhance our daily operation management.”

The easing of mortgage rules should help housing starts in 2020, says Bernie Owens, president and CEO of TIMBER MART, even though predictions for next year anticipate a further decline in housing starts.

Looking for opportunities, Buckle at Sexton says his members will look for ways to tap into smaller home building as multi-unit housing―condos and townhouses―replace single-family dwellings. And more importantly, he’s watching the shift to renovation spending. “There is a great opportunity to capitalize on the booming renovation market.”

Owens at TIMBER MART agrees. “The resale and renovation markets should benefit, and we believe this will continue to be a viable business opportunity for the independent.”

(This article is excerpted from a larger feature in the latest issue of our sister publication, Hardlines Home Improvement Quarterly. HHIQ goes out four times a year to 11,000 dealers and store managers across the country. Click here for more info!)

Henkel has announced that CEO Hans Van Bylen will leave his position “for personal reasons” at year’s end, with CFO Carsten Knobel taking the reins on January 1. Knobel joined the company in 1995 as assistant to the management board.

SFA Saniflo has announced the appointment of Teresa Cardona as new marketing and communications manager for North America, effective November 1. In her new role, Cardona, previously marketing and social media manager at Aramark, will lead Saniflo North America’s marketing and communications team from its New Jersey head office.

DID YOU KNOW...

... that the 2019-2020 Hardlines Market Share Report breaks out the sales and store counts of every key home improvement banner by province? This invaluable marketing tool will help you identify sales and market opportunities and align your own forecasts with regional market breakouts. Now available in a special package with our Hardlines Retail Report, which provides valuable forecasts for the industry for 2019 and 2020, including analysis of the top players. (For more info, click here!)

TORONTO ― Canadian Tire Corp. has released its third-quarter results for the period ended September 28. Consolidated retail sales increased $39 million, or 1.0%, in the third quarter. Excluding Petroleum, consolidated retail sales were up 2.7% over the same period last year. Consolidated revenue increased $5.4 million, or 0.1%; excluding Petroleum, it was up 1.7%. For the retail segment, revenue decreased $13.6 million, or 0.4%. Excluding Petroleum, retail segment revenue increased 1.2%. Canadian Tire Retail sales increased 2.7% and comparable sales were up 2.4%.

MOORESVILLE, N.C. ― Lowe’s Cos. said it will phase out rugs and carpets containing PFAS chemicals, which have been associated with cancer risk in some studies. A spokeswoman for the company told the Associated Press the transition away from the products began a year ago. Home Depot announced in September that it would remove products containing PFAS chemicals by year’s end.

ST. JACOBS, Ont. ― Quincaillerie Gérard Raymond Home Hardware, which has served Pierrefonds and Montreal’s West Island for more than 60 years, has opened a second location. Located in L’Île-Perrot, the new store boasts an 8,000-square-foot retail space. “We are very proud to extend the offer of our services and vast selection of Home Hardware products to the community of L’Île-Perrot,” said dealer-owner Claude Lavoie. Quincaillerie Gérard Raymond joined the Home Hardware banner in 2015.

BURLINGTON, Ont. — IKEA Canada had sales of $2.53 billion for the fiscal year ending August 31, an increase of 6.1% over the previous year. The home furnishings retailer also reported strong digital engagement, with 117.2 million visits to IKEA.ca, representing a 12% lift that contributed to IKEA Canada’s e-commerce sales for the year of $261.2 million.

SUPPLIER NEWS

MADISON, Wis. — Spectrum Brands has sold its four-storey head office to Harbor Group International, a private real estate investment firm. The property, built in 2013 and renovated in 2017, spans 252,122 rentable square feet. It is 100% net leased to Spectrum Brands through 2034.

VANCOUVER ― Acadian Timber Corp. generated sales of $25.4 million in the third quarter, compared to $26.6 million in the prior-year period. Operating costs and expenses were $20.6 million during the third quarter, compared to $21.2 million in 2018. The net loss of $10.9 million, or $0.65 per share, was $16.8 million below the previous third quarter’s income of $5.9 million, or $0.36 per share.

LANCASTER, Pa. ― Armstrong World Industries has reached an agreement to purchase MRK Industries, a manufacturer of specialty metal ceilings and walls with annual revenues of approximately $14 million. That transaction is expected to close in the fourth quarter.

NOTED

Nearly half of Americans (45%) have used cellphones while inside a bricks-and-mortar store to find online reviews of a product or to find better prices. That’s just one of the findings of a recent survey of U.S. adults by Pew Research.

OVERHEARD...

“Our business is performing well and as one of Canada’s largest e-commerce retailers, having generated more than $500 million in sales in the last 12 months, we are exceptionally well-positioned as we head into our customers’ biggest spending season.”
―Stephen Wetmore, president and CEO of Canadian Tire Corp., on the company’s third-quarter results.

OUT & ABOUT

Team Hardlines is heading to the 24th annual Hardlines Conference this week. We kick off with the RONA Pub Night at 7:00 p.m. tomorrow night at the Kingbridge Centre in King City, Ont. We hope to see you there!