BMR Group is continuing to pursue growth outside its home province of Quebec, not only in Ontario but with a view to acquisitions nationwide, its CEO says. Hardlines spoke with Alexandre Lefebvre during BMR’s annual buying show, held earlier this month at the Centre des congrès in Quebec City.

“Obviously, we’re a dominant player in Quebec but in the past few years we’ve been able to make inroads, mainly in Ontario. Every year we’ve been fortunate enough to be able to sign fairly big dealers in Ontario, so it’s giving us bigger market share there.”

Lefebvre adds that BMR’s commercial division in the Greater Toronto Area, while “less well known,” is “growing a lot.” That division is part of the Lefebvre & Benoit business that BMR bought into in 2019. Shortly thereafter, Lefebvre moved the top job in BMR.

“More than ever, growing outside Quebec is a priority for us.” It makes sense to pursue that growth “organically, through the Maritimes, Quebec, and Ontario,” but, he added, “the rest of Canada is still very much on the radar. Realistically, it’s going to have to come through acquisitions, so if there’s a good opportunity that presents itself, we’re going to be looking.”

BMR’s management team has ensured the company’s house is in order and ready for growth. “We really solidified our balance sheet, cleared off the debt, so that we’re in a good position to be able to make acquisitions.”

The group offers an assortment of banners under the BMR name, including BMR Express for smaller, convenience-oriented hardware stores and BMR Pro for contractor-oriented dealers. Lefebvre notes that these options can help BMR appeal to dealers in a wide variety of contexts. “We’re a network of independent dealers, so it’s important for us to cater to different markets, different models, different sizes of stores.”

That versatility is further served by BMR’s strength in the agricultural side of the business, as well, which can be a boon for rural communities. “The fact that we have that core, in-house agricultural business gives us that volume, that critical mass to have a strong agricultural offer, which has been really beneficial, not just to the co-ops, but to a lot of the independent dealers as well.”

Mentioning that the company is in the midst of strategic planning, Lefebvre added that “another new vision” for the multi-banner strategy is coming soon.

Kent introduces heavy appliances in select stores in Atlantic Canada

Kent Building Supplies has launched a new and significant addition to its product mix. The Atlantic building supply dealer has begun selling heavy appliances in some of its stores and, effective last week, the new assortments were supposed to be available online as well.

The products are being sold at Kent’s nine big box stores for starters and are expected to roll out to additional stores over time. The company boasts that the major brands, including Samsung, Whirlpool, and GE, are represented in the new offering and the retailer is promoting the fact that it will ship the products directly to customers’ homes.

The launch is getting a push on social media, including Facebook. A contest that invited people to “like” the Kent post made them eligible to win a $2,200 GE stainless steel refrigerator and a $1,000 grocery gift card. While Kent was to have the products available online last week, a search of the website did not turn up any washers, fridges, or stoves. Kent did not respond to queries from Hardlines.

Kent is certainly not alone in taking on appliances. Other hardlines retailers are carrying appliances in Atlantic Canada, including Home Hardware dealers. Both RONA and Home Hardware introduced them about six years ago, following the demise of Sears, which was a major seller of fridges and stoves in Canada. When RONA exited Newfoundland and Labrador at the beginning of 2019, that left further room in the market.

Home improvement retailers advised to guard margins in their Black Friday sales

Canadian retailers from Home Hardware to Hudson’s Bay are taking advantage of the Black Friday sale trend with discount promotions of their own. The day, which follows American Thanksgiving and landed this year last Friday, Nov. 24, is a traditional discount sale day in the U.S. But over the past decade it has become an international phenomenon thanks to the borderless nature of online sales. It long ago surpassed Boxing Day as the biggest shopping event of the year in Canada.

David Ian Gray, a retail strategist and principal at his firm, DIG360, says even home improvement retailers can get some mileage out of Black Friday, and its following Monday online sales day, Cyber Monday (today), but he offers a warning: “With some product exceptions, home improvement and hardlines writ large is not the typical holiday priority for shoppers and these products have different seasons in which to peak.

“With the cost of cutting through the communications noise, especially for independents, there is not much point for many operators fretting about these promotional days.”

However, the big retail banners get involved heavily in the Black Friday phenomenon. Home Hardware, for example, has featured sales on a range of products. A search of its website reveals discounts of 25 percent off DeWalt tools, Philips light bulbs, and BeautiTone paint. The retailer’s own Benchmark power tool line is boasting discounts of up to 55 percent.

Office supply retailer Staples Canada announced a series of sales just two days before Black Friday, which were available only as long as supplies lasted. Customers could get “gate-crasher” specials on products ranging from iPods and printers to luggage and Keurig coffee makers by shopping online beginning at 6 p.m. the night before.

Gray warns hardware and home improvement retailers not to give away too much. “There is a chance to promote traffic with selected features that are relevant to the season, like lights and accessories. But avoid the pressure to crater your margins.”

And more and more retailers are stretching out the Black Friday timeline. This protects them from inventory shortages and can further help protect their staff from being slammed over a day or a few days.

Home Depot Canada has a prominent promotion on its site, inviting shoppers to “save on must-haves for the holiday season” with aggressive pricing on everything from power tools to holiday decorations. Hudson’s Bay began its Black Friday sale on Nov. 17 and runs until Nov. 28. Discounts are being offered on cosmetics, kitchenwares, and clothing. RONA’s website boasts nothing less than “One Month of Black Friday Deals.” Big discounts appear there on power tools, as well, such as 55 percent off Bosch products, plus 50 percent off artificial Christmas trees.

But these extended sales strategies have their downside, says Gray.

“Over the past two years, we’re seeing a stepping back from hype by many mainstream retailers, save for those who strive to ‘own’ Black Friday. There’s also a growing concern the extreme peaks and troughs day-by-day in the season bring extra strain on already tired and stretched front-line and back-office staff. And the peaks create vulnerabilities in the surge of in-store theft.”

Bad Boy Furniture has entered bankruptcy protection in an effort to restructure its business. The Toronto-area furniture and appliance retailer was (in)famous for decades for its TV ads that featured old-time hustle and bravado, with endless variations on the slogan: “Who’s better than Bad Boy? Nooobody!”

Now, faced with high interest rates and a slowed housing market, Bad Boy has filed a notice of intention proposal under the Bankruptcy and Insolvency Act. Faced with $13.7 million in debt, the company has appointed Infinity Asset Solutions to oversee the total liquidation of its entire inventory, valued at $25 million. The decision to hold the liquidation sale is part of Bad Boy Furniture's strategic restructuring plan, according to a release. The retailer is promoting savings of up to 50 percent on appliances, furniture, electronics and home décor.

The story of Bad Boy began in 1953 with Mel Lastman, a flamboyant Toronto appliance salesman who went on to become mayor of Toronto. That year, his future wife, Marilyn, got Lastman a sales job at an appliance store in Toronto. A year later, he purchased the business. In 1955, he opened his first Bad Boy store. A brilliant self-promoter and outspoken TV personality, he grew the business to 40 locations by 1990.

In 1972, Lastman became mayor of North York, a suburb on the north end of the Greater Toronto Area, a post he held for an impressive 10 terms totaling 25 years. In 1998, he became mayor of Toronto, a role he held until 2003—with somewhat less distinction. (He called in the army to help with snow removal after a major snowstorm in 1999, an incident Torontonians continue to live down to this day.)

In 1991, Lastman’s son Blayne revitalized the image of stores, complete with the striped prison outfit and the infamous “nooobody” slogan. Mel Lastman died in 2021.

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RETAILER NEWS

Lowe’s Cos. reported Q3 revenues of $20.74 billion for the quarter, down 11.7 percent from a year earlier. Adjusted earnings of $3.06 per share were down from $3.27. CEO Marvin Ellison pointed to a “greater-than-expected pullback in DIY discretionary spending, particularly in bigger ticket categories.” The pro side, which accounts for 25 percent of Lowe’s business, saw an increase in comp sales, however. Lowe’s has downgraded its forecast for the full year and expects comp sales expected to be down about five percent, compared to its forecast at the end of Q2 of a drop of two to four percent.

Canac is investing $10 million in the expansion and renewal of its store in Quebec City’s Charlesbourg district. The store was lifted onto beams and moved by truck in what marketing director Patrick Delisle called “a manoeuvre you don’t often see.” The retail space is to be expanded by 10,000 square feet. For the time being, the store is open with limited inventory. It will close Dec. 4, with a reopening planned for the spring.

Walmart posted Q3 earnings of $453 million, compared with a $1.79 million loss a year earlier. Revenues of $160.84 billion were up 6.1 percent from $152.81 billion. In Canada, net sales rose by 5.3 percent to $5.8 billion.

The Home Depot has entered into an agreement to acquire International Designs Group (IDG), a distributor of tile, stone, and other architectural specialty products for contractors. IDG owns finishes supplier Construction Resources, which has pro showrooms across the eastern and southeastern U.S. The world’s largest retailer is acquiring IDG from Mill Point Capital LLC, a private equity firm.

Exchange-A-Blade (EAB) has been awarded the Corporate Leadership Award by the Recycling Council of Alberta (RCA). The power tool accessories maker was recognized in the province’s “Rs of Excellence” program, which honours the special contributions by RCA members to “promote, facilitate, and advocate for a circular economy in Alberta through waste reduction and resource conservation.” EAB has been committed to reusing blades and bits through its resharpening and remanufacturing program since 1976, the vision of Rob Forbes, founder and owner of EAB.

West Fraser Timber Co. has completed its acquisition of Spray Lake Sawmills in Cochrane, Alta. The operation produces treated wood products, dimensional lumber, and a variety of wood residuals and bi-products. It has an annual lumber capacity of 155 million board feet.

Investment in building construction increased by 5.3 percent to $18.9 billion in September. Residential construction spending grew by 7.3 percent, reaching $12.9 billion. Manitoba’s 33.6 percent gain was the largest. Single-family home investment increased 6.4 percent to $6.3 billion. (StatCan)

The annualized pace of housing starts rose by one percent to 274,681 units in October, from 270,669 units the previous month. The rate of urban starts increased two percent, with 257,357 units recorded. Total starts were down 43 percent in Montreal and 24 percent in Toronto, while Vancouver recorded an increase of 35 percent, driven by the multi-unit segment. (CMHC)

U.S. housing starts increased by 1.9 percent in October to 1.37 million units. Building permits edged up 1.1 percent to 1.49 million units following a 4.5 percent drop in September. (U.S. Census Bureau)