MONTREAL ― About 300 dealers and 330 suppliers descended on Montreal’s Palais des congrès on October 17 and 18 for the RONA and Ace Canada Buying Show. Dealers took part in training seminars covering topics from merchandising to loss prevention and celebrated their colleagues’ achievements at the annual gala dinner.

This year’s edition continued the show’s trend of expanding the seasonal segment, which seems to occupy a larger surface of the floor each year. New this year was a grilling demo station where dealers got to sample barbecue treats prepared from recipes by award-winning Quebecois chefs.

Getting the best bargains for dealers was once again a key focus of the show. Close to the perennial Deal Zone, cubicles were set up this year for negotiations with lumber traders. In response to dealer feedback, show specials were publicized in advance of the event, extending the opportunity to plan purchases.

Among other changes to the show’s layout, the lighting and flooring sections were strategically placed next to one another. The “cloud” of lighting fixtures descending from the ceiling was a welcome oasis as Montreal was pounded by 24 hours of heavy rains during the show.

The Well Made Here team was on site to boost awareness of Canadian-made products. Also new this year was a booth representing the Fondation Charles-Bruneau. Lowe’s Canada’s established support on the corporate end for this pediatric cancer charity has been complemented in recent years by increasing involvement by dealers.

At the end of the show’s first day, a gala celebration honoured outstanding performance among dealers. RONA Ferronnerie Houle (Saint-Jean-sur-Richelieu, Que.), RONA Sonnenburg Hardware (Massey, Ont.) and RONA J. Anctil (Saint-Denis-de-Brompton, Que.) were recognized as RONA Builders of Success. On the Ace Canada side, the laureates were Ace Victory Building Supplies (Mackenzie, B.C.), Ace Leader (Leader, Sask.) and Ace Building Centre Vanderhoof (Vanderhoof, B.C.).

“We are lucky to count on a network of dedicated affiliated dealers who dare to push ahead and spare no effort to achieve their goals,” Lowe’s Canada Interim President Tony Cioffi said.

SAINT JOHN, N.B.― Fairstone Financial Inc. has signed an agreement to provide point-of-sale financing for all retail purchases at all Kent Building Supplies stores.

Fairstone is a Canadian non-bank lender for near-prime borrowers, with more than $3 billion in assets on a consolidated basis. The company has two key business lines: lending directly to consumers through its branch network and online; and financing consumer retail and car purchases through retailers and dealerships. Headquartered in Montreal, Fairstone is privately held by an investor group led by funds managed by affiliates of J.C. Flowers & Co. LLC and Värde Partners.

“We’re pleased to be working with Fairstone to provide a simple, digital financing solution that gets our customers a step closer to realizing their home renovation and building goals,” said Mike Simms, general manager for Kent and VP of J.D. Irving’s retail division.

As part of its retail POS financing offering, Fairstone is also providing Kent with an automated, mobile and digital financing platform designed to shrink customer financing approval times to a matter of minutes.

The company touts its system as a time saver for customers that will be easy to integrate into existing retail practices. Kent has 49 stores across Atlantic Canada in a variety of formats, ranging from traditional lumberyards to DIY-friendly big boxes. Kent is part of the holdings of Saint John, N.B.-based J.D. Irving Ltd.

“We’re pleased to work with Kent to provide a positive financing experience for their customers and a simple, easy-to-manage solution for their in-store associates,” said Serges Bériault, Fairstone’s senior VP of indirect lending.

SPECIAL REPORT — For buyers at some of Canada’s top retailers, a product’s origin is an important consideration. For Home Hardware Stores Ltd., it’s been a part of the company’s overall strategy since it was founded. With a number of private label and proprietary brands that are Canadian-owned and -made, including its Beauti-Tone paint line and CIL fertilizer, the company proudly promotes its homegrown products.

“For Home Hardware, our Canadian identity is imprinted into virtually every practice,” says Joel Marks, vice-president, merchandise hardlines for Home Hardware. “When customers have access to high quality, competitively priced, Canadian-made products, it is a win-win situation.”

At BMR Group, Charles Grégoire-Béliveau, director of purchasing (hardware and retail), says about 75 percent of the company’s vendors employ Canadians, meaning their products are either manufactured in Canada or they have head offices or service centres here.

He adds that part of encouraging local domestic suppliers translates into giving work to its own customers. “The vendors we work with, at the end of the day, many of their employees are our customers,” says Grégoire-Béliveau. “Our stores are deeply rooted in their regions, so it makes sense for us to support local vendors, when we can.”

At Lowe’s Canada headquarters, its buyers make those decisions with a straightforward goal in mind. “Our product selection process starts with what Canadians want and need, and we adapt our merchandising strategy accordingly,” says Igor Halencak, the company’s executive vice-president, merchandising and marketing. “Our goal is simple: to get the products Canadians want at the right time and price.”

Halencak adds that when those criteria are met, Lowe’s Canada will always encourage domestic suppliers.

A major point of emphasis for all these buyers is ensuring the quality of the products their companies bring to market. Marks says Home Hardware has noticed that social and environmental concerns have become increasingly important for its customers. He’s found that many Canadians will pay a premium for local or Canadian-made products.

(This article is excerpted from a larger feature in the latest issue of our sister publication, Hardlines Home Improvement Quarterly.  HHIQ goes out four times a year to 11,000 dealers and store managers across the country. Click here for more info!)

WABUSH, N.L. ― Stagg & Templeman Construction is a building supply retail store in Wabush, in Labrador. The 5,500-square-foot outlet, which sits on 3.5 acres with an 11,000-square-foot warehouse, serves a Labrador West community of about 14,000 people.

The store operates within a mining economy that owner Mike Stagg says is a “mixed bag,” as his annual sales swing with the economy’s ebb and flow. He relies on three common carriers to receive products because trucking companies aren’t always reliable due to driver shortages, and their dispatching puts the mines and food delivery first.

Northern dealers like Stagg would have a difficult time surviving without their buying groups to lean on as reliable product sources. He views his affiliation with TIMBER MART as a “huge advantage” in terms of working with trucking companies for deliveries and backhauls. And besides the challenges of working with available delivery options, Stagg has to contend with the extremes of weather. His store receives between one and four trailers per week, depending on the time of the year.

“Mike Stagg is successful is because he’s figured out the logistics game,” says John Morrissey, vice president of distribution and trading for TIMBER MART.

Annette Verschuren is among those who will receive honorary doctorates at Concordia University’s fall convocation. The citation for the degree invokes the Cape Breton native’s “vision and leadership in the business sector”, which includes her 15 years as president of The Home Depot Canada, from 1996 to 2011. Verschuren, who is already an Officer of the Order of Canada and a CHHMA Industry Hall of Famer, will address Concordia’s John Molson School of Business in November.

...that space is filling up fast for the 24th annual Hardlines Conference? And, no, we’re not just saying that to get your attention! The Kingbridge Centre is an amazing venue, but has limited space, so we urge you to buy your ticket now. In fact, the hotel is already booked up, but don’t worry, you can still get a room 15 minutes down the road at the Aloft Vaughan Mills. To be part of this incredible event, please click here.

VALLEYFIELD, Que. ― Éric and Stéphane Bailey, the co-owners of Matériaux Pont-Masson, celebrated last week the grand opening of their seventh RONA location, in Ste-Clotilde-de-Chateauguay, Que. The new store will serve as Matériaux Pont-Masson’s distribution centre.

TORONTO ― The winners of eBay Canada’s 2019 Entrepreneur of the Year awards were unveiled last week, including Nan Xu of Investments Hardware Ltd. Xu joined the Woodbridge, Ont., family-owned business in 2014 and quickly set about redesigning and expanding involvement in the eBay store to tap into export growth. Today, IHL operates in a 160,000-square-foot warehouse complemented by a 4,000-square-foot showroom for local clientele.

BOUCHERVILLE, Que. — Lowe’s Canada will cut 60 accounting jobs in Boucherville, in an effort to reduce costs. Instead, the Canadian business will rely on Lowe's shared services out of the Lowe’s head office in Mooresville, N.C. "As the Canadian division of a global company, we have made the decision to leverage Lowe’s accounting shared services," said a spokesperson from Lowe's Canada. Impacted employees have been notified and will be helped to transition during the first half of 2020.

TORONTO ― The Ontario Court of Appeal has rejected a bid by Walmart Canada and The Home Depot Canada to appeal the terms of the settlement in a class action against Visa and Mastercard. The original case turned on allegations of price-fixing between Visa, Mastercard and 10 issuing banks. The Superior Court last year approved a settlement, over the two retailers’ objections, in which both credit card companies agreed to pay almost $10 million without admitting liability.

MONTREAL ― Outstanding dealers and suppliers were at the centre of the gala held at the recent RONA and Ace Canada buying show. A full list of those recognized in the RONA and Ace Canada Builder of Success categories and their respective sub-categories, along with affiliates marking milestone anniversaries and Ace eCommerce Award winners, can be found on the Lowe’s Canada website.

SUPPLIER NEWS

VANCOUVER ― West Fraser Timber Co. reported a loss of $45 million or $0.65 per share for the third quarter, with higher production in the U.S. South outweighed by cuts to output in Canada. A year ago, the company had posted profits of $238 million, or $3.25 per share. Sales of $1.19 billion were down from $1.65 billion the previous third quarter.

AMSTERDAM — Signify, the Dutch lighting company (formerly Philips Lighting), has acquired Cooper Lighting from Eaton Corp. The acquisition is intended to give Signify a stronger foothold in the North American market. The deal is expected to close in the first quarter of 2020.

CHICAGO ― Grainger had third-quarter sales of $2.9 billion, up 4% over the 2018 third quarter. Gross profit reached $1.1 billion, up 2%. Operating earnings reached $338 million, up 78%, while adjusted net earnings of $233 million were down 3%.

ECONOMIC CONDITIONS

Investment in building construction increased 1.4% in August to $15.5 billion, with gains in both the residential and non-residential sectors. Investment in residential building construction was up 1.8% to $10.6 billion. The multi-unit component edged up 0.4% to $5.3 billion, led by Ontario. Investment in single-unit construction increased 3.2% to $5.4 billion, slightly exceeding multi-unit residential investment. This was partly due to gains in Ontario and Alberta. (StatCan)

Sales in the retail trade sector edged down 0.1% in August to $51.5 billion. Sales were down in six sub-sectors. After increasing 5% in June, sales edged down by 0.5% at building material and garden equipment and supplies dealers, the second consecutive monthly decrease. They nevertheless remained above the level observed in May. (StatCan)

Sales of existing U.S. homes fell 2.2% in September, amidst an ongoing supply shortage. It follows on two consecutive monthly gains. (National Association of Realtors)

NOTED

Habitat ReStore has a new website with a brand-new look and more information about products. Inventory can now be updated daily in real time as new stock arrives. (Habitat ReStores are the charity of choice for the Hardlines Conference, coming up November 13 and 14.)