Home Hardware has unveiled its new ‘Built to Build’ campaign as part of a relaunch for its private brand, Benchmark. Developed in collaboration with Toronto ad agency john st., the campaign will be supported through social and digital channels as well as a 30-second TV spot, in-store signage, and newly designed packaging. In French-language markets, it will be presented with the slogan “Conçus pour bâtir.”

The campaign runs until Dec. 24.

“Home Hardware’s‘Built to Build’ campaign is about connecting with DIYers across Canada and highlighting Benchmark as an innovative and affordable tool brand that can help them tackle the projects they’ve been dreaming of with ease,” said Laura Baker, vice president, marketing, Home Hardware Stores Limited. “We want Canadians to understand they can depend on Benchmark products, and that by using them, they are practically unstoppable.”

The announcement reinforces the full range of products that bear the Benchmark brand for Home Hardware. It also reflects the wider movement among retailers to beef up their private label offerings. (See the next story in this issue.)

Working with Toronto ad shop john st., Home Hardware’s agency of record for the past five years, the fully integrated campaign relies on traditional media, including television, highlighted by a new 30-second TV spot, plus in-store signage and newly designed packaging. The rebranding is also being supported through social and digital channels.

A cornerstone of the Benchmark relaunch is the brand’s new Omega 20-volt battery system. Keeping pace with the thrust of power tool technology, the system is compatible and interchangeable across all of Benchmark’s 20-volt cordless products, which includes power tools and lawn and garden equipment.

“We know that home renovation and repair projects continue to be a focus for our customers and innovative tools that help them get the job done within budget are important to them,” said Baker.

“The Benchmark brand offers a broad assortment of power and hand tools at affordable prices, without sacrificing quality and dependability.”

Canadian Tire enjoyed strong results in its third quarter, and while comp sales for its Canadian Tire Retail (CTR) stores were up just 1.4 percent, that follows on the heels of a whopping 25.1 percent increase during the same quarter of 2020. Much of the chain’s success came from its ability to drive private-label sales while managing its supply chain challenges.

Private brands are hot properties, and Canadian Tire has led the charge with a range of proprietary lines for everything from power tools to home décor. Supported by a strong infrastructure here at home, the company has been able to manage its inventories effectively.

“The non-perishable nature of our products gives us flexibility around lead times and commercial terms,” said CEO Greg Hicks on a call to analysts. “As the owner of significant distribution and storage capacity through our store network, corporate-owned real estate and the REIT, we can easily hold excess inventory in Canada.”

He pointed out that more than one-third of Canadian Tire’s revenue comes from its owned brands. As the supplier for its own products in these areas, the company can keep control of when and where goods are produced. Hicks cited NOMA Christmas lights, Mastercraft tools, and Denver Hayes apparel as examples.

CTR's performance was helped by growth in their own brands such as Canvas, Master Chef, Raleigh, and Sherwood. Executives on the call noted that the control over these lines gives Canadian Tire a real advantage, despite ongoing sourcing challenges worldwide.

“Our seasonal, living, and automotive divisions had the strongest performance in the quarter,” said Gregory Craig, Canadian Tire’s EVP and CFO. “Garden, backyard living, cleaning, and car care were among CTR’s top-performing categories, and our access to inventory was a key contributor to their performance.”

Craig said Canadian Tire is “the largest importer of record in Canada,” with strong vendor relationships and large investments in shipping and transportation, “particularly on the main routes in and out of Asia and across Canada to our more than 1,700 plus retail locations and distribution centres.”

Earlier this year, Canadian Tire invested in ships of its own to carry CTR products exclusively. “This strategic decision to charter four vessels enabled us to bring in key Christmas and winter categories in time for Q4. We have successfully built inventory to meet anticipated customer demand,” Craig said.

“We’re already working through our volumes and lead times for summer and fall of 2022, placing orders with vendors, looking at our product pipelines, and—while not across the board— anticipating an increase in some input costs.”

The National Hardware Show made its comeback last month as a live event, after moving to a virtual format in 2020. The show, which typically runs in early May, was pushed out to late October this year, to maximize the odds of people attending as North America continues to contend the persistence of the pandemic. While it did not attract too many Canadians, it did reach a critical mass that proved worthwhile for many in attendance.

The 75th edition of the show gathered exhibitors, industry leaders and other attendees for a return to business at the Las Vegas Convention Center’s new West Hall. There were 690 exhibitors, including 259 that attended for the first time. In 2019, the show had about 2,500 exhibitors.

“Despite a smaller footprint, we made important investments this year to ensure NHS remains the top destination for industry members to make meaningful connections and celebrate successes for years to come,” said Beth Casson, event leader for NHS.

One Canadian who was there noted the smaller size. Robert Greene, VP for the Consumer Products Division of Jacobs & Thompson, which has the Polar Bear brand of weatherproofing products, says the show was “just okay,” with traffic low overall.

“We didn’t see any Canadian retailers at the show except for one Home Hardware store that had won the trip.” He was referring to Ian McNaughton of Gravenhurst Home Hardware. McNaughton was an award winner and panellist at the conference portion of the show, held by the North American Hardware and Paint Association.

Another Canadian exhibitor, a Toronto-based garage storage company, was reportedly looking to expand its U.S. presence and was happy with the buyers walking the show and stopping by their booth.

The smaller size of the show did have its upside. Greene says the few connections he made were good ones. “On a brighter note, the customers, suppliers, and representatives that we did interact with were quality contacts that we expect will garner new business within the future.”
 
He adds that his support of this show gave his company the opportunity to negotiate better pricing and a more favourable booth location for next year. The 2022 show will be held April 5 to 7, once again in the West Hall at the Las Vegas Convention Center.

AQMAT held its 10th Congress of Decision-Makers last month under the theme “Se retrouver pour mieux s’allier” (finding one another to better unite ourselves). Dominique Bélanger, chairman of the Quebec industry group’s board, dubbed the occasion “historic.”

“When I look at the importance of the topics on the agenda, I indeed think we are called to reflect, even to speak out on some of the most critical issues facing our hardware stores and the suppliers who allow us to operate, namely the suppliers and buying groups.”

Delegates adopted resolutions dealing with price controls, Sunday closures, and a potential code of best practices for hardware retailers. While supporting a mostly free-market approach, AQMAT and construction industry group APCHQ are exploring algorithm-based technologies that can take out some of the guesswork as supply remains unpredictable.

Participants also heard from Pierre-Alexandre Blouin, head of Quebec’s food retailers’ association. Blouin suggested that AQMAT has an advantage in bringing together all kinds of hardware industry actors. In the food business, by contrast, “to make progress it’s necessary to coordinate ten or so different and sometimes diverging associations.”

AQMAT president Richard Darveau (shown here) noted that new federal cabinet ministers were receiving their mandate letters the same day in Ottawa. Like them, he said, he felt “entrusted with clear and engaging objectives for the collective good of the members of our community.”

DID YOU KNOW...?

... that Hardlines has the tools to help you identify Canada’s top home improvement retailers? If you want to know who the big retail customers are, what their sales are in each province, and the product strategies of the top players, check out the Hardlines Retail Report and the Hardlines Market Share Report. This exclusive info is just not available anywhere else but at Hardlines. We even have special pricing if you buy both reports together. Let us help you get ready for the year ahead!

Lowe’s Cos. announced its Q3 profits rose to $1.9 billion, or $2.73 per share, compared with $692 million a year earlier. Revenues increased to $22.92 billion from $22.31 billion. Same-store sales were up by 2.2 percent in the quarter. Like rival Home Depot, Lowe’s benefited from a strong housing market, even as house prices and building materials costs heat up.

The Home Depot posted Q3 revenues of $36.8 billion, an increase of $3.3 billion or 9.8 percent from 2020. The ongoing trend toward investment in the home seen since the COVID-19 outbreak continued to propel sales, with comp sales increasing by 6.1 percent. Net income rose to $4.13 billion (or $3.92 per share), from $3.43 billion ($3.18) a year earlier.

Digital construction platform Toolbx has expanded to Vancouver. The service offers a single platform from which builders can source materials from any local supplier, to be delivered to the job site within two hours. The expansion comes amid skilled labour shortages in the area, which the Vancouver Regional Construction Association expects to continue over the coming years.

Vancouver-based BuildDirect Technologies has acquired Superb Flooring & Design LLC in a $10 million cash transaction. The Michigan-based flooring retailer serves pro customers across the U.S. Midwest. At the same time, BuildDirect reported Q3 revenues of $22.4 million, up 51 percent from a year ago. Gross profit increased 48 percent to $8.1 million, compared to $5.5 million for the comparable period of 2020.

Walmart Canada and Duo Bank of Canada are launching the Walmart Rewards Mastercard Installment Plan. Customers can split their in-store and online general merchandise purchases into six equal installments billed to their Walmart Rewards Mastercard monthly when the total purchase is $199.99 or more. As part of the launch of the program, the 2.5 percent set-up fee is being waived for a limited time.

SUPPLIER NEWS

CertainTeed Canada, a subsidiary of Saint-Gobain, has announced a new partnership with Hyperframe, which specializes in AI-powered software for the construction industry.

Intertape Polymer Group’s Q3 sales rose 23 percent to $395.6 million. Net earnings fell by five percent to $25.3 million. Net income was $58.7 million, up from $55.6 million a year ago.

ECONOMIC INDICATORS

Sales of existing homes have already set a new annual record in 2021. Sales were up 8.6 percent between September and October 2021, marking the largest month-over-month increase since July 2020. Actual (not seasonally adjusted) monthly activity was down 11.5 percent on a year-over-year basis. (Canadian Real Estate Assoc.)

The seasonally adjusted annual rate of housing starts in Canada was 236,554 units in October, according to the Canada Mortgage and Housing Corp. That was down 5.3 percent from 249,922 units in September. The SAAR of urban starts declined by 3.7 percent to 214,797 units. Single-detached urban starts increased by one percent to 58,016 units. (CMHC) 

U.S. construction starts were at a seasonally adjusted annual rate of 1.52 million in October. That was a decrease of 0.7 percent. Compared to October 2020, however, starts were up by 0.4 percent. The SAAR of building permits for the month was 1.65 million. That was four percent higher than in September and 3.4 percent above the previous October’s pace. (U.S. Census Bureau)

NOTED

A Quebec man whose family is behind a series of trademark applications using the Zellers name says Hudson’s Bay Co. missed out on its chance to retain rights to the name. HBC’s “lawyers didn't do their work. The trademark was expunged,” Robert Moniz said in a CBC Radio interview. “They had enough time to take over the trademark. They didn't take it.” Members of the Moniz family are named in a statement of claim filed by HBC, with allegations including trademark infringement and deceptive marketing.

OVERHEARD...

“Our owned brands continue to be a key focus for us, providing several differentiated advantages, one being a healthy margin premium over national brands.”
—TJ Flood, president of Canadian Tire Retail, on the importance of its private labels.