RED DEER, Alta.— It’s been almost eight months since Peavey Industries announced its takeover of the license and distribution rights to Ace Hardware stores in Canada. And certainly a lot has happened since then. Through it all, Peavey President and CEO Doug Anderson remains confident in the viability of the move, one that he believes will bring stability supported by a truly Canadian supply chain.

“At Peavey, we understand small towns,” Anderson says, making reference to fact many Ace dealers flourish in smaller communities. He notes that Peavey is an employee-owned company with the flexibility that kind of structure can bring. “We’re very focused on Ace long-term as a company.”

The Ace banner in Canada has had a varied history, one that dates back to the early 1990s. At that time, LBM wholesaler CanWel attempted a cross-docking arrangement for Ace products through one of its distribution centres in the Vancouver area. To this day, a handful of dealers, mainly in British Columbia, maintain an Ace affiliation from that period. Ace then came to Canada through a deal with Beaver Lumber back in the mid-1990s. That ended with Beaver’s demise barely five years later. Since then, ownership passed to now-defunct hardware wholesaler Sodisco-Howden Group, back to CanWel, then TIMBER MART, RONA and finally Lowe’s Canada (whew!—Editor).

Peavey acquired the Ace business from Lowe’s Canada.

“As a counter to the past, we believe we can provide the stability that the brand needs,” Anderson says. Ace’s legacy of change has also had an impact on the dealers themselves. Some chose to switch banners during the disruptions. However, the brand continued to add new dealers under Lowe’s Canada, offering an option that can support smaller stores.

“Our goal is to stop the churn. There’s no reason why the Ace brand can’t flourish in Canada. It’s an amazing brand—an international brand.”

Anderson points out that Peavey is big enough to provide the nearly 100 Ace dealers—plus a handful of un-bannered stores—with the purchasing power to stay competitive and the distribution system to support them. But, he adds, Peavey is not so large as to alienate or lose sight of its newly acquired retail customers. “Those values will definitely add value to the Ace banner and Ace network.”

The company has distribution centres in Red Deer and in London, Ont., home of TSC Stores, which Peavey acquired three years ago. Hardware distribution from Lowe’s Canada to Peavey was completed by the end of August, amidst the hindrances caused by the COVID pandemic.

For the next few months, LBM distribution for the dealers will continue to come from Lowe’s Canada.

Anderson expects to begin promoting the Ace banner to potential new dealers in the future. But for now he and his team will focus on the existing dealers “and prove ourselves to them and make them feel confident and comfortable.”

QUEBEC CITY — A privately held chain of building centres is on a path of tremendous growth, bearing witness to the appeal of aggressive marketing backed by low prices.

Canac is part of Laberge Group, which is run by the Laberge family and whose holdings include apartments and commercial real estate, as well as a custom window company and a commercial dealer division, Manugypse. That business, with two locations, in Quebec City and Boucherville, is part of the TIMBER MART buying group.

Back in the summer, CEO Jean Laberge, long the voice and face of the company, retired, while maintaining the chairman role at Laberge Group. Guy Bedard had previously retired as general manager at Canac five years ago. Jean’s cousin Pierre Laberge moved from the VP role to take over Canac fill the roles. “I have replaced Guy Bedard and Jean Laberge as president and general manager of the company,” says Pierre. “All of us have participated in the growth of Canac—including Guy, who has been a fantastic general manager.”

Other changes included Stéphanie, Jean daughter’s, replacing him for future site and store development. Charles, the son of Gilles Laberge, will replace Jean for construction and renovation on all stores and the distribution centres. Marc Laberge, who developed the contractor side of the business, has also retired. His son Jerome replaces Marc on contractor sales and operations related to contractors. Gilles Laberge, Pierre’s cousin and Marc’s brother, remains in charge of finance for Laberge Group.

And, Pierre adds, “Thomas Laberge in charge of IT and Simon Laberge is in charge of logistics and supply chain. They are both my sons.” Both my sons.

The family now oversees a chain of retail home improvement stores that is one of the largest independents chains in this sector in the country. With 30 stores—soon to be 31—and annual retail sales of $875 million, Pierre Laberge says the company has managed to double its sales over the past five years and is on track to exceed $1 billion in sales in 2020.

Laberge attributes much of the company’s success to its people. “We have great people in the stores. We have a great team and a fair price—and people like that,” he says. “It’s not that complicated.”

The company has gained notoriety for its adherence to low prices, making it a noteworthy competitor for other Quebec dealers. Laberge admires the model of Walmart found Sam Walton. “We buy cheap and we sell cheap and we try and make some money in between,” he says with a chuckle. “We try to buy the best quality at the best price.”

NORWALK, CT. — The 2020 National Hardware Virtual Show officially wrapped up last week. The four-day online event boasted a variety of educational sessions, webinars, networking opportunities and a platform for industry meetings.

According to show organizer Reed Exhibitions, the virtual show attracted more than 4,000 industry professionals, facilitated some 1,200 meetings, logged 111,387 profile and product views, and generated 12,726 educational content and session views.

(Due to ongoing demand for the sessions and networking, the National Hardware Virtual Show platform will remain open for continued access. Anyone who didn’t join initially can still access to the platform. Click here to register.)

“The 2020 Show was certainly different from years past, yet it provided the same great experience NHS patrons have come to know and love,” said Rich Russo, industry vice president of the National Hardware Show. “As always, the show provided attendees with premium educational content for the ever-expanding and ever-evolving industry, the opportunity to connect with key exhibitors, buyers and media, as well as unmatched sourcing opportunities of newly launched products that keep businesses growing and modern.”

The All-Industry Conference, hosted by the North American Hardware and Paint Association (NHPA, formerly the NRHA) featured 12 different sessions and kicked things off with a keynote from Dan Starr, president and CEO, Do it Best Corp. Entitled “How Independents Are Still Disrupting”, the keynote took place immediately following the NHS opening ceremony and addressed the future of the industry and the opportunities that are available for independents to innovate, compete and win in their markets.

NHPA executive vice president Dan Tratensek says this year’s event still empowered members of the industry to network and collaborate.

“While there is no doubt we all miss being able to interact with one another in person, I think we have all become accustomed to the virtual show experience. It’s exciting to be able to connect with retailers, offer seminars and feel engaged with the industry in a broader way,” said Tratensek. “Once again, the National Hardware Show has offered retailers of all banners a place where they can explore new products, learn from one another and pick up new ideas.”

The 2021 National Hardware Show is scheduled for May 11 to 13 in Las Vegas at the Las Vegas Convention Center.

ATLANTA — The Home Depot is relying on its vendors more than ever to deliver innovative new products. Speaking at Goldman Sachs’ Global Retailing Virtual Conference last month, Craig Menear, chairman and CEO of The Home Depot, with Ted Decker, Home Depot’s EVP merchandising, talked about how much of that innovation is directed at maintaining and strengthening the retailer’s relationship with both its pro and DIY customers. Decker called it “the hallmark” of good merchandising.

Menear laid out the importance of continual input from vendors. “So when you think about innovation, what the merchants are focused on at Home Depot is ‘how do you bring product to market that makes it easier for the consumer to be able to do a project? How do you bring product to market that allows the pro to be more efficient?’”

Decker went even deeper on the subject. He said Home Depot’s supplier partners must work on product development with the end user in mind, “and it really goes across the whole store.”

He cited some examples of new products that have been driven by new technology. “You've heard us talk a lot lately about cordless battery technology in power tools that is now exploding in outdoor power equipment. So categories that were exclusively gas for decades and decades are quickly shifting to cordless technology.” He said a lot of products in this category will be launched in the spring of 2021. “What you are going to be able to do in terms of size of job and run time and power with cordless technology and outdoor power equipment is incredible.”

Innovation is occurring in departments across the store, including building materials, appliances and even the grout bay, where one vendor introduced everything from floor levelers and large-format tile to quick-adhesion grouts and grouts that come pre-mixed for quick jobs. “It’s something you wouldn't think a lot about—innovation in tile-set material—but it really is remarkable for all the new products that came in that reset,” Decker said.

Darryl Jenkins has been promoted at Canadian Tire to senior vice president, corporate development and growth initiatives. He joined Canadian Tire in 2019 to head up the company’s newly acquired Party City business as managing director. Prior to that, he served as chief merchandising officer at TSC Stores.

David Stern has joined Wolseley Canada Inc. as vice president, Eastern Canada, based in Laval, Que. He was most recently with Lowe’s Canada, where he served as VP, pro, commercial and installed sales.

... that we are always looking for new products to feature for dealers? We have two publications that serve home improvement retailers. Our print magazine, Hardlines Home Improvement Quarterly, and our monthly e-newsletter, Hardlines Dealer News, both reach audiences of dealers and store managers across the country. And one of the things we know they are interested in is new products. If you’re a supplier with new products that are available to Canadian dealers, let us know! Send your product info to our New Product Editor, Geoffrey McLarney. (And yes, this is a free editorial service!)

VAUGHAN, Ont. — Quincaillerie J.P & F. Larochelle in Dunham, Que., is the newest member of TIMBER MART. Founded in 1975 as an army surplus store by Jean-Paul and Cécile Larochelle, it has branched out into hunting and fishing gear, hardware and garden supplies. The owners are Yvon and Sylvain Larochelle.

ST. JACOBS, Ont. — Fines Home Hardware in Cornwall, Ont., is moving to a larger space in the new year, a former Kmart store that has been vacant since 2013. The move is expected in March 2021. The Fines location in Ingleside, Ont., will continue its operations there.

ATLANTA — The Home Depot has reached an agreement with Enel Green Power to purchase renewable energy from a new plant Enel is slated to open in Texas next year. The hybrid Azure Sky Solar + Storage plant is expected to generate 586 gigawatt hours of energy each year. Home Depot has set a goal of making or purchasing 335 megawatts of alternate energy projects by 2025. It will receive 75 megawatts, enough to power 150 stores, annually from Enel’s new facility.

BRAMPTON, Ont. — Hudson’s Bay Co. is gearing up to modernize its stores by converting some properties into mixed-use developments. The reinvented spaces could host offices and residential units in addition to other retail stores. Executive Chairman and CEO Richard Baker has left the door open to selling off some real estate assets as well, noting plans to continue “generating value from these assets.”

SUPPLIER NEWS

SURREY, B.C. — The B.C. Building Supply Industry Association is following the success of its previous online conference with the BSIA 2021 Wave of the Future – Product Expo & PK Sessions. On January 19, presenters will be able to give 20 minute sessions and receive business card-sized ads in the BSIA News Magazine among other marketing and promotional benefits to connect with retailers. Networking opportunities will include interactive panels, discussion groups and product demos. For more information, visit the BSIA website.

DORVAL, Que. — Dural is reintroducing its Multibond brand with Advanced Hybrid Adhesive for flooring. The rollout was announced along with changes to the packaging of DuraPro adhesives.

ECONOMIC INDICATORS

Sales of existing Canadian homes edged up a further 0.9 percent between August and September, raising them to yet another all-time monthly record. About 60 percent of local markets saw gains, including Ottawa, Greater Vancouver, Vancouver Island and Calgary. These were mostly offset by declines in the Greater Toronto Area and Montreal. Actual (not seasonally adjusted) sales posted a 45.6 percent year-over-year gain in September, a new record for the month. (Canadian Real Estate Association)

Retail sales rose 0.4 percent to $53.2 billion in August, marking the fourth consecutive monthly increase since the record decline in April. Core retail sales—which exclude automotive and gasoline categories—also rose 0.4 percent on higher sales at building material and garden equipment and supplies dealers (up 4.5 percent) and food and beverage stores. (StatCan)

Sales of existing U.S. homes rose by 9.4 percent in September to a seasonally adjusted annual rate of 6.54 million units. On an annual basis, sales were up by 20.9 percent. September’s pace is the strongest since 2006. (National Association of Realtors)

NOTED

A new poll commissioned by La Presse found that 33 percent of Quebecers believe retailers make more from online than in-store sales, while just 13 percent believe the opposite. Patrick Delisle, director of marketing at Canac, remarks that “big myths” about e-retail persist among the public. Canac shuttered its transactional website in the spring because it wasn’t profitable enough, even without the option of home delivery.