NIAGARA-ON-THE-LAKE, Ont. — Suppliers and retailers from across Canada gathered last week to honour the retail home improvement industry’s best hardware and home improvement retailers. The occasion was the 2018 Outstanding Retailer Awards Gala Dinner, which marked the end of day one of the 23rd Annual Hardlines Conference at the scenic Queen’s Landing hotel in Niagara-on-the-Lake, Ont.

Dealers from across the country were celebrated in seven categories covering the range of hardware and home improvement retailing formats. Delegates at the Hardlines Conference joined leaders from the retail chains, co-ops and buying groups who attended the Gala Dinner to honour their members and fellow retailers.

This year’s winners are:
• Best Hardware Store, any size − Quincaillerie Sainte-Julie in Sainte-Julie, Que., Michel Robidoux and Marie-Josée Hébert, Owners;
• Best Building Supply or Home Centre under 15,000 square feet − Ace Building Centre-Kaslo in Kaslo B.C., Monica and Jeff Davie, Owners;
• Best Building Supply or Home Centre over 15,000 square feet − Matériaux JLS-BMR in Mansfield-en-Pontefract, Que., Connie Gutoskie Lasalle and Jean-Guy Lasalle, Owners;
• Best Contractor Specialist − Form & Build Supply in London, Ont., Bill Ross, Owner;
• Best Large Surface Retailer − Lowe’s South Windsor in Windsor, Ont., Mark Birse, Manager;
• Best Young Retailer − Tyler Dueck, Co-owner of RONA Valley Enterprises in Rosenort, Man.;
• Marc Robichaud Community Leader − Fort St. John Home Hardware Building Centre in Fort St. John, B.C., Doug and Shelley Gallinger, and Darrell and Debbie Alexander, Owners.

Chosen from a competitive field of nominees, the winners each displayed an edge that put them ahead of their peers in the areas of good business practice, customer relations, innovation and niche marketing.

“These retailers reflect a diversity of backgrounds, marketplaces and personal challenges, yet they all share a passion for retail and incredible connections with their customers and communities,” said Michael McLarney, president of Hardlines Inc., which presents the awards. “These winners are truly outstanding and set new standards for excellence in retail.”

Launched in 1992, the Outstanding Retailer Awards are the industry’s only national awards program dedicated to celebrating the achievements of hardware and building supply dealers in Canada. In its 26-year history, the program has honoured more than 150 retailers.

NIAGARA-ON-THE-LAKE, Ont. ― Industry leaders from every sector of Canada’s retail home improvement industry, and from across the Canada, gathered for day one of the 23rd annual Hardlines Conference last week.

Under the theme, “The Power of Brand”, about 150 people gathered at Queen’s Landing hotel in Niagara-on-the-Lake, Ont. The event kicked off with insights from one of the country’s leading brand experts, Ian Madell, managing partner and president of Level5 Strategy Group. “Your brand is the value of a promise consistently kept,” he explained.

Speakers on day one included Darrin Noble, VP and general manager of Home Hardware’s Beauti-Tone paint division. Beauti-Tone is one of Home Hardware’s most important house brands. “Can a private label perform like a national brand in how it goes to market?” Noble asked rhetorically. “My answer is that it has to.”

Steve Buckle, president of the Sexton Group, explained how his buying group works with suppliers on behalf of his members. He noted that his group’s mandate is to support one brand―“the sign above the door” of the individual dealers that belong to Sexton Group.

Peter Norman, VP and chief economist for Altus Group, noted that renovation spending will continue to be relatively strong, even as new housing markets slow down.

Day two began with a presentation by Charles Valois, VP central marketing for Lowe’s Canada. Valois reaffirmed Lowe’s Canada’s commitment to the independent dealers who fly the RONA and Ace banners. “We’re very proud of these people,” he stated. “It’s incredible what they’re doing for our business.”

Two dealers took the Hardlines stage during the conference. Russ Jones, a RONA dealer with three stores on British Columbia’s Sunshine Coast, gave a deeply moving account of his personal involvement in the community and beyond. Jillian Sexton, a TIMBER MART dealer with three stores in the Maritimes, delivered a powerful message about the role, and challenges, of women in this industry.

Catherine Vaugh, brand building manager for Orgill Canada, talked about the range of services the wholesaler provides to dealers―in addition to the products in its warehouses. “I see us as an independent retailer’s brand building marketing department.”

The conference, now in its 23rd year, is the only national event for the retail home improvement industry in Canada. It gathers dealers, suppliers and retail head offices for two days of learning and networking. The next Hardlines Conference will be held November 12 to 13, 2019.

QUEBEC CITY — Groupe BMR held its 2018 Trade Show from November 7 to 9 at the Quebec City Convention Centre, gathering some 700 representatives from its dealer ranks, with approximately 330 exhibitors on a 75,000-square-foot show floor.

Guests at this year's show included 27 “prospects”. These dealers, who are considering joining BMR’s ranks, had the opportunity to see the buying group and wholesaler’s latest offerings. Nine new product categories introduced this year point to a focus on the expansion of offerings outside the core hardware lines. Among them are bicycle parts and accessories, windshield wipers, kitchen accessories, vacuum cleaners and RV accessories.

The show’s floor featured a dedicated space for learning about turnkey merchandising solutions. A pavilion dedicated to horticulture and agricultural products was built to house several suppliers exclusive to BMR.

A particular focus this year was on the impact of the company's “digital shift” in customer service, including the www.BMR.co site, which became transactional this year. The company's efforts in that department were previously recognized in October with the Digital Shift prize from Quebec's retail council.

Winding down the show was the BMR Gala on the evening of Friday, November 9. This closing event was an opportunity to recognize outstanding performance by dealers and suppliers over the past year.

SPECIAL REPORT — Bricks-and-mortar retailers in the U.S. still garner the majority of consumer spending on power tools, despite the ever-expanding online retail marketplace.

Recent TraQline survey data from research firm The Stevenson Co. show that 81% of consumer power tool purchases happen in physical stores. The three U.S. retailers that draw the most consumer spending in the category are Home Depot, Lowe’s and Sears, according to the research.

However, in Canada, an increasing number of independent dealers, like Brent Perry of Alf Curtis Castle in Peterborough, Ont. (shown here), have found growth in the power tool category.

According to the U.S. study, nearly a quarter of customers there decide where to buy their circular saws, cordless drills and other similar products based on where they happen to be shopping for other items already. The results revealed that two-thirds of power tool shoppers are men shopping by themselves. And 60% of consumers make their final power tool purchasing decision based on price.

The study was not in any way skewed in favour of consumers with traditional shopping habits. The TraQline survey drew from a base of heavy online shoppers. More than half of the respondents are members of Amazon Prime, an annual subscription service that provides free shipping options and other members-only benefits. However, the data show that only 7% of consumer power tool spending goes to Amazon.

At TIMBER MART, Kurtis Norlen has been promoted to the role of national procurement manager for the buying group. He was previously building material procurement manager for Western Canada. Norlen will assume responsibilities additional to his current ones during TIMBER MART’s program negotiations. A six-year veteran of the company, he will continue to work from TIMBER MART’s Calgary head office.

Sylvie Pinsonneault will retire as Eastern Canada regional manager for Rockwool at year’s end. Pinsonneault joined the company in 2007 as a retail sales rep and was promoted through successive positions. With her departure, Allan Selway will be promoted to Quebec-Atlantic regional manager, residential and commercial. He has been senior sales representative, residential and commercial, since last year. Sarah Southwick, currently key account manager, will take over the responsibilities of Ontario regional manager. Reporting to her will be Emma Smetaniuk, who has joined Rockwool as Ontario sales representative, residential and commercial.

And from our team, Katherine Yager has left Hardlines after nearly six years with the company. In her absence, for anything relating to Hardlines business overall, please contact Michael McLarney. David Chestnut will handle all advertising and Michelle Porter will be taking care of administration, orders and subscription-related queries. We wish Katherine well in her new ventures and thank her for her many years of service!

...that the 23rd annual Hardlines Conference was an amazing success? If you were in Niagara-on-the-Lake, Ont., this past week, then you certainly did know that! But for those of you who missed it, watch for our reports on the conference in the pages of Hardlines—and don’t miss out next year. Mark your calendars now for November 12 and 13, 2019!

BOUCHERVILLE, Que. — Quincaillerie Mario Gélineau in St-Hubert, Que., is the latest independent to join Groupe BMR’s dealer network. Stéphane Baril and his spouse, Annie-Claude Hamelin, have decided to change their banner after 30 years in business. Baril acquired his retired partner Mario Gélineau’s equity on the latter’s retirement, and so the store will be renamed Quincaillerie Stéphane Baril. It will display the BMR Express banner, a smaller-store format combining must-have inventory with customized services.

ST. JACOBS, Ont. — Home Hardware has opened a second location in the St. John’s market in Newfoundland. Craig Smith and Home Hardware Chairman Christine Hand, who also owns the banner’s store in nearby Conception Bay, are the co-owners of Home Hardware Torbay Road. “We are excited to open the new store in an area that has been lacking a neighbourhood hardware store for the last few years,” said Smith. The 19,000-square-foot store held its grand opening this past Friday.

ATLANTA — The Home Depot has reported Q3 sales of $26.3 billion, a 5.1% increase from the same period last year. Comparable sales for the quarter rose by 4.8%. Net earnings were $2.9 billion, or $2.51 per diluted share, compared with net earnings of $2.2 billion, or $1.84 per diluted share, in Q3 of 2017. Diluted EPS increased by 36.4% from a year ago.

BENTONVILLE, Ark. ― Walmart’s total revenue was up 1.4% in Q3 to $124.9 billion. Comparable sales in the U.S. rose 3.4%, with traffic up 1.2% and ticket 2.2% higher. Comparable sales were up 3.2% for the Sam's Club business on a 6.2% jump in traffic.

BURLINGTON, Ont. — Ikea Canada’s sales reached $2.39 billion for fiscal 2018, an increase of 8% on the previous year. Traffic on Ikea.ca swelled to 104 million customers, contributing to $241.5 million in e-commerce sales, an increase of
18.8%. The retailer grew to 14 stores across Canada in the past year, with major openings in Quebec City and Halifax drawing crowds. In-store traffic rose by 6.9% to 30 million customers.

CORRECTION: In last week's issue, we inadvertently identified Lowe's head office as being in Atlanta, Ga. It's in fact in Mooresville, N.C.

SUPPLIER NEWS

BURNABY, B.C. — At Taiga Building Products, Q3 profits declined to $5.6 million from $6 million a year ago, primarily due to decreased gross margin dollars, which in turn were attributed to falling commodity prices. On a per-share basis, net earnings came to $0.05. Sales for the quarter rose to $399.6 million from $396.6 million in Q3 of 2017.

VANCOUVER — Third-quarter sales for CanWel Building Materials rose 10.5% to $350.2 million, compared to $316.8 million a year ago. Sales increased in part due to the inclusion of the results from the Honsador Building Products Group acquisition. Net earnings declined to $8.5 million from the $11.6 million posted in Q3 of 2017. The quarter saw the opening of CanWel’s custom-built distribution centre on a 20-acre site in Acton, Ont.

TORONTO ―The Hillman Group, Inc. will relocate its Canadian national distribution centre and head office to a newly designed, 400,000 square foot facility in the Metro East Business Park, at 1395 Tapscott Road in Toronto. The move is part of a wider restructuring that also includes a move in Edmonton to a new and expanded Western regional hub to serve the Canadian fastener and hardware market, says Hillman Canada President Scott Ride. The new Toronto facility is near completion and will consolidate seven operations around the Greater Toronto Area. Starting in early 2019, a phased move of the company’s $200-plus million Canadian business will begin in the Tapscott Road location.

DRUMMONDVILLE, Que. — In a surprise move, toolbox manufacturer SPG International has closed its doors after being granted bankruptcy protection. The company’s Asian-based shareholders had tried without success to find a buyer. Court-appointed trustee Deloitte Restructuring said the closure will mean the loss of about 100 jobs. An asset sale is under way, and SPG still has the opportunity to strike a deal with creditors to avert bankruptcy.

ENGLEWOOD, Colo. — Bona U.S., the hardwood floor products company, has moved into a 74,209-square-foot building in Englewood, Colo., that will serve as its new North American headquarters.

ECONOMIC INDICATORS

Sales of existing Canadian homes edged back by 1.6% in October. While activity is still stronger compared to the first half of 2018, it remains below monthly levels recorded from early 2014 through 2017. Actual (not seasonally adjusted) activity was down 3.7% compared to October 2017 and in line with the 10-year average for the month. Lower sales in Greater Vancouver and the Fraser Valley more than offset the rise in sales in the Greater Toronto Area and Montreal by a wide margin. (Canadian Real Estate Association)

U.S. retail sales logged their biggest increase in five months, according to the latest U.S. Commerce Department data. Sales edged up by 0.8% after a 0.1% slip in September, as several areas in the South Atlantic region contended with Hurricane Florence. August and September had marked the first back-to-back declines in five years. Gasoline and automotive categories drove the growth in October. (U.S. Commerce Dept.)

NOTED

Even though Black Friday and Cyber Monday are still relatively new to Canadians, bargain hunters will be looking this weekend for deals in every kind of category. But electronics remain at the top of the list. According to a recent survey from savings destination RetailMeNot.ca, almost one-third of Canadians plan on buying large and small electronics this Black Friday and Cyber Monday, and will spend $3,300 on average.

“Groupe BMR has a business model based on independent dealers just like us, which can be adapted to match our reality as a neighborhood hardware store.” ―Stéphane Baril, who, with his wife Annie-Claude Hamelin, has joined Groupe BMR and taken on the BMR Express banner.