Connecting the Home Improvement Industry

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CONNECTING THE HOME IMPROVEMENT INDUSTRY
October 22, 2018 | Volume xxiv, #39  
IN THIS ISSUE: Addition of Co-op stores increases BMR’s presence across Atlantic Region Gillfor says it’s ready to take on Canada’s wholesale giants Retailers ready to pounce as Sears files for bankruptcy protection New formulation opens door for safer paint stripper sales PLUS: Lowe’s Canada plants trees for Earth Day, Walmart Canada invests to update stores, Wayfair launches its own brand, Quebec association creates not-for-profit to support buy Canadian, Craftsman signs deal with NHL, Vukanovich at Derby, Home resales, IKEA offers in-home assembly, U.S. housing starts and more!  
Addition of Co-op stores increases BMR’s presence across Atlantic Region

BOUCHERVILLE, Que. — Groupe BMR has announced the addition of 17 new stores to its network. The stores, which will remain under their current Co-op Country Store banner unless and until they choose otherwise, are former members of Co-op Atlantic.

Specializing in the sale of agricultural products along with hardware products, the stores are spread across the Atlantic region, with nine in Nova Scotia, four in New Brunswick, three in Prince Edward Island and one in Newfoundland and Labrador.

In 2015, BMR’s parent, La Coop fédérée, through its Agri-business division, purchased the majority of Co-op Atlantic’s agricultural assets, including feed mills in Moncton, N.B., in Truro and New Minas, N.S., the Farm Supply and General Merchandising division, as well as the sector of activities related to grain marketing. Previously supplied in part by Atlantic Farm Services, a division of La Coop fédérée, under the new arrangement the Co-op Country Stores are now fully supplied by BMR, with access to BMR’s range of farm and hardware products.

“At BMR Group, we are distinguished by our in-depth knowledge of agricultural products, acquired over the years thanks to our dedicated team of specialists and strengthened since our acquisition by La Coop fédérée,” CEO Pascal Houle said. “We are therefore very well equipped to respond to the needs of the Co-op Country stores while offering them new possibilities, thanks to our different products and services.”

BMR now has a range of operating banners: BMR, La Shop, Unimat, Potvin & Bouchard and Agrizone. The addition of the Co-op Country stores brings the total number of new BMR locations in the Atlantic region to 22 for the current calendar year.

Gillfor says it’s ready to take on Canada’s wholesale giants

WOODSTOCK, Ont. — Gillfor Distribution didn’t even exist a year ago. But now it’s ready to serve LBM dealers across most of the country with a range of specialty products. And in so doing, it has ambitions to join the ranks of Canada’s top LBM wholesalers.

The company was borne of a merger in November 2017 between OWL Distribution, based in Southwestern Ontario, and McIlveen Lumber Industries, which has headquarters in Calgary and another DC in Edmonton. Since then, it has acquired two more wholesalers: Brown & Rutherford, which covers Central Canada from its facility in Winnipeg, and its latest acquisition, Brunswick Valley Distribution in Moncton (shown here).

The result is seven distribution centres across Canada supported by one reload centre.

“The goal was to create a national distribution entity, under the name Gillfor Distribution,” says Mike Schneider, Gillfor’s VP business development. “The newest acquisition, with a DC in Moncton, gives us access to the Maritime market.” He says the goal is to service all of Atlantic Canada over time.

Customers can expect to see product lines standardized, as each location will share products. The focus will be on nine product lines across the categories of lumber, decking and siding, plywood and engineered wood. “We’ve evaluated which lines make sense nationally and those are the ones we’ll move forward with.”

Schneider says the company will be ready to operate nationally as of January 1, 2019. “We’ll continue to use the regional brands of each distributor at the local level. “But,” he adds, “in negotiations, with suppliers we’ll be operating under the Gillfor name.

The industry is dominated by a handful of major nationals—CanWel, Taiga, AFA and Goodfellow. Does Gillfor deem itself ready to take on the big guns? “One hundred percent,” Schneider says without a moment’s hesitation. “We have competed with them effectively at a regional level and look forward to competing nationally.”

sears closed
Retailers ready to pounce as Sears files for bankruptcy protection

HOFFMAN ESTATES, Ill. — Sears Holdings Corp. has filed for chapter 11 protection from creditors in the U.S. Bankruptcy Court at White Plains, N.Y., and CEO Eddie Lampert has resigned from that role effective immediately.

The iconic retailer, which was founded 132 years ago, was famous for its catalogues since its days as Sears, Roebuck & Co. but it’s struggled in recent years to retain its customer base in the face of online competition. It has closed about 300 stores since the beginning of the year, leaving it with about 700 that remain open.

Extensive debt, meanwhile, hamstrung the company’s ability to turn itself around. It filed for bankruptcy protection last week when it was unable to meet a $134 million debt payment.

Sears intends to keep open stores that are profitable, it says, and look for buyers for the remaining sites. The company will be run for the time being by the office of the CEO, while independent directors will oversee the process of dismantling the company’s assets. Lampert is staying on as chairman. His ESL Investments Inc., Sears Holdings’ largest shareholder, is in talks to buy “a large portion of the company’s store base,” says the company.

As with the demise of Sears Canada earlier this year, other retailers are poised to pounce on the business that Sears would leave behind. In the home improvement sector, that’s primarily the heavy appliance sector, which Sears once dominated in the U.S., until finally being overtaken by Lowe’s in 2017. Sears already hived off its Craftsman brand, first licensing it to Ace Hardware in 2010, and then selling the brand outright to Stanley Black & Decker last year.

Meanwhile, U.S. retailers are lining up to pick up the pieces of Sears’ customer base. Walmart, Target, Kohl’s, Home Depot and Best Buy all stand to profit from the closure of the 700 Sears and Kmart stores. With about 20% of those slated to close by year’s end, competitors could face a short-term squeeze from liquidation discounts but stand to gain a new pool of customers in the long run.

New formulation opens door for safer paint stripper sales

GRANBY, Que. ― The announcement back in June that Lowe’s Cos. in the U.S. would pull all paint strippers off its shelves that contain methylene chloride and N-Methylpyrrolidone (NMP) took suppliers and retailers alike by surprise. Other retailers soon followed, as Home Depot, Sherwin Williams and Walmart all decided to de-list traditional paint strippers that contain the toxic chemicals by the end of this year or early in 2019.

Lowe’s in Canada, including its RONA stores, pulled the products from its shelves in August. All corporate stores are forbidden from selling any products carrying the toxic chemicals.

Over time, consumers will look for safer alternatives, while others will shop elsewhere for the more toxic formulations that they know will work, as manufacturers have been challenged to develop ecological substitutes that can effectively remove old paint.

But now, paint chemicals producer Super Remover has developed a formulation in partnership with the Toxics Use Reduction Institution (TURI) at the University of Massachusetts Lowell. According to Sébastien Plourde, president of Super Remover, the new product, called Super Remover New Generation, has been thoroughly tested and is just as effective as the toxic products.

“It’s the only recipe we have that safely replaces methylene chloride,” says Plourde. “This will remove paint just as quickly.” His company is the official partner in North America of the TURI Institute for this product.

Plourde points out that the launch of New Generation is not a reactionary move. He’s been working with the TURI Institute for more than a year on this. “We’re ready to deploy,” he says.

The U.S. Environmental Protection Agency is set to follow in the European Union’s footsteps with a ban on methylene chloride. Super Remover New Generation will be on shelves at all Canadian Tire stores by year’s end and at participating Home Hardware and BMR dealers.

People on the Move

At Derby Building Products Inc., John Vukanovich has been named vice president of marketing. In this role, he will oversee and implement marketing programs to support Derby’s Tando and Novik brands of stone and shake exterior cladding. Vukanovich has more than 20 years in the building supply industry, having worked most recently with Ply Gem-Mitten, as well as Royal Window and Door, Selkirk and Canadian Fireplace Manufacturing. Based in Burlington, Ont., Vukanovich will spend time at both Derby’s Quebec City and Miami facilities. jvukanovich@derbybp.com

CashierPRO, a provider of POS and inventory management systems for hardware, farm and LBM dealers in Canada, has added Lynda Hawke to its customer service team. She will be assisting existing clients, as well as providing installation and training to new clients. Hawke has an extensive background in retail services, accounting and inventory management, most recently as controller at Fisher River Building Centre and All Nations Building Centre. lynda.hawke@cashierpro.com

OVERHEARD

“This is not a reaction to what’s happening. This is something we’ve been working on since 2017.” —Sébastien Plourde, president of Super Remover, on the release of a non-toxic paint stripper that was developed in partnership with a U.S. testing and research facility, the Toxics Use Reduction Institution.

DID YOU KNOW...?

...that we will honour some of Canada’s top retailers and managers in home improvement at our upcoming Outstanding Retailer Awards Gala? The event will close day one of our 23rd annual Hardlines Conference on November 13 in Niagara-on-the-Lake, Ont. As the only national awards ceremony for home improvement retailers across all banners, the ORA Gala is an amazing way for retailers and suppliers alike to come together. And you’ll enjoy a great meal in the bargain. Click here to register for the ORA Gala Dinner!

RETAILER NEWS

BOUCHERVILLE, Que. — Lowe’s Canada has worked with Jour de la Terre Quebec and Earth Day Canada to plant 48,658 trees. The initiative was the result of a commitment to plant a tree for every one of its Eco brand products (excluding forest products) sold on April 22. To wrap up the project, 22 Lowe’s Canada employees participated last week in planting 600 trees at the Canadian Space Agency facility in Saint-Hubert, on Montreal’s South Shore, near the company’s head office.

MISSISSAUGA, Ont. ― Walmart Canada is investing $175 million to update its stores. Several stores will be refurbished to enhance the in-store and online shopping experience. Already, 23 stores are set for renovation before February 2019. In addition, the company has just opened a Walmart Supercentre in Burnaby B.C. Also, Walmart Canada recently expanded its Supercentre store format into Newfoundland with the conversion of three stores there. The focus with the updates is mainly on the grocery side of the business and include dedicated parking spaces for online grocery pickup and areas where customers can complete online orders.

BURLINGTON, Ont. — IKEA Canada has announced the launch of an in-home assembly and mounting service in select markets. Called TaskRabbit, the on-demand service is now available in-store and online in the Greater Toronto Area, with plans to roll it out to the Vancouver market in mid-November and the Montreal area next spring. The offer allows customers to have products assembled in-home at their convenience, as early as the next day after purchase. Assembly services are priced by flat rate according to the type of furniture, starting at $32.

BOUCHERVILLE, Que. — Lowe’s Canada’s Heroes campaign has raised $1.1 million. Throughout September, every Lowe’s, RONA and Reno-Depot corporate store in the country collected donations to help local non-profit organizations or public schools of their choosing. Lowe’s Canada matched 50% of all funds raised through the in-store campaign, up to a maximum of $2,000 per store.

BOSTON — Online home furnishings seller Wayfair has launched its own brand of furniture and home décor products. The lines will be available in both the U.S. and Canada. Called Greyleigh, the brand has been developed, says the company, as a way to deliver sophisticated looks and high quality. “With Greyleigh, for the first time ever, discerning shoppers can access the same artisan-inspired furnishings and décor found in high-end galleries and showrooms, without the mark-up associated with specialty retailers,” the company said in a statement.

SUPPLIER NEWS

LONGUEUIL — AQMAT, the Quebec association for the home improvement industry, is in the process of creating a not-for-profit organization aimed at encouraging retail shoppers to buy Canadian first and to seek out hardware and building supply stores for their needs. “Bien Fait Ici−Made Right Here” will be federally chartered and will see its soft launch on October 31. Banners are currently being approached to invest in the initiative while manufacturers will be invited to do so on the day of the pre-launch.

MISSISSAUGA, Ont. — To support the relaunch of the Craftsman brand of hand and power tools and accessories, Stanley Black & Decker Canada has signed sponsorship deals with several Canadian Hockey League teams, as well as a deal with the NHL. The partnership with the Canadian Hockey League allows Craftsman to connect with hockey fans of 10 teams across the country. The NHL teams are the Edmonton Oilers, Vancouver Canucks and Toronto Maple Leafs. Craftsman will benefit from live game coverage on NHL rink boards, in arena ads, social and digital programs, as well as website and mobile banner ads.

ECONOMIC INDICATORS

Home resales in September dipped by 0.4%, marking the first decline since April. While sales activity is still somewhat stronger compared to the first half of this year, it remains well below most other months since 2014. Sales declined from August to September in slightly more than half of all local markets, despite gains in the Fraser Valley and Montreal. Actual (not seasonally adjusted) activity was down 8.9% compared to September of last year.—Canadian Real Estate Association

Housing starts in the U.S. in September reached a seasonally adjusted annual rate of 1,201,000. This is down 5.3% from the previous month, which was up 7.1%. However, the overall trend is positive, as housing starts for the first nine months of the year were up 6.4% over the same period in 2018. Building permits fell by 0.6%, the second decline in two months.—U.S. Commerce Dept.

NOTED

Craftsman, which is owned by Stanley Black & Decker and exclusive in Canada to the Lowe’s, RONA, Reno-Depot and Ace banners, is expected to roll out more than 1,200 tools and products within the year.

 
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