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CONNECTING THE HOME IMPROVEMENT INDUSTRY
October 3, 2022 | Volume xxviii, #37
  IN THIS ISSUE:
  • Home Hardware relaunches dealer show with new location and format
  • Atlantic dealers face devastation and disruption in wake of Hurricane Fiona
  • Peavey CEO Doug Anderson sees big growth opportunities for Ace banner
  • New Ottawa store is Canadian Tire’s biggest ever

PLUS: Lowe’s Canada’s new Quebec dealer, IKEA Canada hosts art installation honouring Indigenous women and children, Home Hardware’s new loyalty partner, Costco’s Q4 sales, Lowe’s Canada joins Avion Rewards, BeautiTone unveils Colour of the Year, Goodfellow’s new wood-processing machine, retail sales figures, and more!

Hardlines
Home Hardware relaunches dealer show with new location and format  

Home Hardware has held its first in-person dealer show since the pandemic’s outbreak. Dubbed Homecoming (Retrouvailles in French), it took place Sept. 23 to 25 at the Enercare Centre on the grounds of the Canadian National Exhibition in Toronto.

More than 5,000 guests, including dealer-owners, employees, and suppliers, gathered for the occasion. Homecoming replaced Home Hardware’s traditional dealer markets on its home turf of St. Jacobs, Ont. “St. Jacobs has a lot of history, but we needed the space,” explains CEO and president Kevin Macnab.

Participants got to learn about the latest trends, including a sneak peek at the company’s proprietary paint brand, BeautiTone, and its colour of the year. “Moments” is described as a “calming, shaded blue with an influence of green.”

“With all that’s going on in the world, we wanted a calming colour, but a moving-forward colour,” BeautiTone’s Donna Robertson explained, “but not everyone is moving forward at the same pace.” The choice of palettes, she added, reflects that mixed reality.

Also on display was BeautiTone’s Barbie Dreamhouse Colour Collection. A partnership with Mattel, it pairs the classic Barbie pink hue with complementary shades aimed to appeal to both kids and adults.

An electric Volvo truck was displayed on the show floor. Two such vehicles will go into service with Home’s fleet next spring. “We’re going to be the first home improvement retailer in Canada delivering to homes [with electric vehicles], and also to some warehouses,” Jason Libralesso, Home’s director of transportation, explained. The vehicles, he added, have a 440-kilometre range.

Home Hardware’s Homecoming event included the announcement of a partnership with the Scene+ rewards program. Starting in the summer of 2023, cardholders will be able to redeem points at Home Hardware stores. Begun as an initiative between Scotiabank and Cineplex, Scene+ has expanded to include restaurant chains such as Swiss Chalet and East Side Mario’s and tech retailers like Apple and Best Buy.

Home Hardware’s commitment to the pro customer was also in evidence at Homecoming. Popular contractor purchases were flagged with a “Pro Approved” label, while private-label offerings also catered to pros.

As at past gatherings, honouring exemplary dealer-owners was a highlight of the agenda. This year, the Home Hardware Store of the Year Award was presented to Sophie Denis and Philippe Moisan of Quincaillerie Jean Denis Limitée in Saint-Raymond, Que.

(O'Leary Building Centre. Photo courtesy: Melissa Heald, West Prince Graphic)

Atlantic dealers face devastation and disruption in wake of Hurricane Fiona

 

Hurricane Fiona hit the east coast a week ago Friday, leaving hundreds of thousands of homes in the Atlantic provinces and Quebec’s Magdalen Islands without power. Hardware stores felt the crunch as customers sought out generators ahead of the storm’s landfall.

“We sold 10 to 12 since yesterday afternoon I believe and we have a few left, but they're going very quick,” Vince MacLellan, manager of a Sydney, N.S., department store, told CTV News. One P.E.I. Castle store, pictured here, succumbed to the force of the hurricane.

The storm, and the damage it wrought, varied in intensity throughout the Atlantic region. But not everyone was devastated. Deb Brinson, co-owner of a Castle location in Gander Bay, N.L., reported that she experienced “very minimal damage here in this area,” as the western part of the province took the brunt of the storm. “We were quite lucky!”

Andrew Payzant is president and CEO of Payzant Building Products, a chain of eight Home Hardware Building Centres based in Lower Sackville, N.S. He, too, dodged the worst of the storm.  “Our stores are doing okay. Seven out of eight lost power for anywhere from 24 to 72 hours.”

As of last Wednesday, Payzant noted that the company was steadily returning to normal, including getting the power back. “All but one have received power back as of today. Other than that, no severe damage other than a bit of cosmetic stuff that is easily repaired.”

Payzant had already put a detailed information bulletin on its website in advance of the hurricane. There, the store listed essentials to stock up on ahead of the storm, including bottled water, canned food, a manual can opener, a crank or battery-operated flashlight, and a first aid kit.

Nevertheless, customers faced challenges of their own, putting a run on certain products in the stores. “We’re pretty much out of generators,” said Payzant. “We’re selling lots of the normal emergency products like batteries, flashlights, propane, Coleman fuel, candles, and stuff like that.”

The hurricane—officially “downgraded” to a tropical storm when it hit the Maritimes Sept. 24 and 25—was the “one of the worst hurricanes to hit Atlantic Canada in my lifetime,” says Arnold Hagen, owner of two Home Hardware Building Centre stores in the Truro, N.S. area.

Truro had many homes hit by trees, but no fatalities. Hagen’s store in Bible Hill, just east of Truro, took “significant” damage to its roof and was flooded with water inside. Talking to Hardlines a full 72 hours after the storm departed, he said the store was still without power along with much of the Truro area.

“We’ve got a generator going in there so we can power the contractor desk. But people need flashlights to see what they’re doing in there, it’s pitch black. We’ve got a lot of roofers buying shingles, that’s for sure. Between us and the TIMBER MART and the Kent Building Supplies in Truro, we’ve already supplied a lot of shingles to the town.”

The bestselling item at the Bible Hill store has been generators. The store sold 100 units on Monday morning, Hagen said, adding last Wednesday that Home Hardware’s DC in Debert, N.S., 20 km west of Truro, was out of generators. “I hear they’ve got a tractor trailer load of generators almost in Debert from St. Jacobs, Ont. But I think they are all sold out in advance, too.”

Peavey CEO Doug Anderson sees big growth opportunities for Ace banner

 

Two weeks ago, Doug Anderson walked the first live Peavey dealer market since the pandemic hit. He told Hardlines at the Toronto Congress Centre, Sept. 20, that he was proud to see Ace dealers and Peavey Mart store managers from across the country come together. “We’re making some good progress and added new dealers in this mix. And there’s still work to be done. But this show brings it all together.”

Anderson says he sees lots of opportunities for Peavey—and for the Ace brand—including adding dealers to that banner. It can offer services and support for all kinds of independents, he notes, so growth is coming from a range of hardlines retail formats. “We’re making changes across the board. We’ve added building materials outlets. We appeal to the country stores and the traditional hardware stores.”

But the Ace banner also offers options for dealers with their eye on succession or retirement. Peavey is buying up, on a selective basis, independents who want to cash out, turning the stores into corporate locations. “We have the flexibility to take advantage of specific market opportunities.”

The range of dealer formats also broadens the portfolio for Peavey. Anderson says co-op ag sales are up, and the company has signed some good dealers which do not necessarily carry the Ace banner. They nevertheless rely on Peavey for a range of ag products—including many that the competition is not carrying, he says.

One important deal that was inked earlier this summer was a co-branding agreement with Thunder Bay Co-op, in Thunder Bay, Ont. The cooperative will do business as Thunder Bay Co-op Farm Supplies – Ace Country & Garden.

The building materials side of the business represents another huge opportunity for growth, Anderson says. Much of that supply comes through an agreement with the Sexton Group, based in Winnipeg, that provides drop ship to the Ace dealers. Anderson says the company is working to warehouse building materials, thereby providing a wider range of LBM products to dealers.

New Ottawa store is Canadian Tire’s biggest ever

Canadian Tire has opened its largest store in the country as it celebrates its 100th birthday. The 136,000-square-foot location occupies a former Sears site in Ottawa’s Carlingwood Shopping Centre.

It is the second store CTC has opened this year under its large-scale “Remarkable Retail” format, following a store launch in Welland, Ont., in the spring. Construction on the Carlingwood store began in 2019.

Until now, the biggest Canadian Tire store was in Edmonton, weighing in at 134,000 square feet with 73,000 SKUs. It opened in 2015.

The new store concept represents the next generation of Canadian Tire’s large-format retail stores, with more than 100,000 square feet of retail space. According to press information from Canadian Tire, “They are focused on delivering a ‘wow’ experience to customers by showcasing the breadth and depth of Canadian Tire’s product assortment and bringing meaningful brand experiences to life.”

The stores will tap into Canadian Tire’s “most advanced analytical insights on demographics, market trends, and loyalty data” to serve customers with expanded assortments and omnichannel shopping options, including click-and-collect, curbside pickup, and delivery to home.

The new Ottawa location replaces an existing store at Fairlawn Plaza, across from Carlingwood Shopping Centre. That store was closed a few days before the new one opened.

This store also features:

  • Six-car customer pick-up canopy area for click-and-collect purchases.
  • A 26-bay auto service area with a lounge and upscale tire wall.
  • An expanded seasonal centre, including an indoor plant area and, for this time of year, lots of Halloween décor.
  • Three aisles devoted to hunting and fishing products.
  • The second-largest Canadian Tire warehouse in the country, capable of holding 1,200 skids

This store is part of Canadian Tire’s $3.4 billion strategic investment over four years “to create better customer experiences across the country.”

People on the Move

Paul Pahal at Costco Canada has stepped back to take on an assistant general merchandise manager role. He has spent 25 years at Costco in buying roles, including the past four years as general merchandise manager.

DID YOU KNOW...?

... that the Hardlines Conference is just days away? That’s right, tickets are going fast for the biggest information and networking event of the season. Registration is open online for the 26th annual Hardlines Conference, Oct. 18 and 19 at the Queen’s Landing Hotel in Niagara-on-the-Lake, Ont. Sign up now as tickets are limited for this year’s event!
RETAILER NEWS

Lowe’s Canada has added Arthur Rivest Hardware in Sainte-Julienne, Que., to its RONA affiliate dealer network. Nathalie Fortin, Michel Ricard, and Guy Ricard own the store, which consists of an 11,000-square-foot sales floor, 5,000-square-foot indoor lumber yard, and 10,000-square-foot outdoor yard.

IKEA Canada is hosting an art installation by The Canadian Library that honours thousands of murdered and missing Indigenous women and children in all its stores. Since Sept. 30, National Day for Truth and Reconciliation (“Orange Shirt Day”), each installation will feature one of IKEA’s Billy bookcases filled with books covered in Indigenous-inspired fabric. The exhibits continue till Dec. 31.

Home Hardware has a new loyalty partner. The retail company has signed a partnership with the Scene+ rewards program. Starting in the summer of 2023, cardholders will be able to redeem points at Home Hardware stores. Earlier this year, grocer Empire Co. acquired a stake in the program, which is being rolled out on a regional basis at its banners, which include Sobeys and IGA.

Costco Wholesale Corp. saw its Q4 sales rose 15.2 percent to $70.76 billion, from $61.44 billion a year ago. Earnings of $1.87 billion were up from to $1.67 billion in the comparable period last year. For the full fiscal year, sales rose 16 percent to $222.73 billion, compared with $192.05 billion the previous year. Earnings rose to $5.84 billion from $5.01 billion.

Lowe’s Canada is the latest major retailer to join Royal Bank of Canada’s Avion Rewards program. Shoppers can use their RBC debit or credit card to earn cash back in the form of statement credits at all Lowe's, RONA and Réno-Dépôt corporate stores and online. Later this fall, a flexible financing option will be offered help customers pay for their purchases, whether or not they bank with RBC.

SUPPLIER NEWS

Burlington, Wash.-based Pacific Woodtech (PWT) has announced a long-term agreement with CanWel Building Materials to have CanWel distribute PWT’s full line of engineered wood products in Canada. CanWel operates 15 distribution facilities in Canada “and boasts a large and seasoned team of dedicated EWP professionals,” a company release said. PWT acquired LP Building Solutions’ EWP business Aug. 1, 2022.

Goodfellow Inc. has increased its wood processing capabilities through the acquisition of a new Hundegger K2i machine. Installation was completed in July at Goodfellow’s main operating facility in Delson, Que., and full production is now underway. The machine allows Goodfellow to offer its customers doubled capacity, faster order and job turnaround, and the ability to process larger pieces.

ECONOMIC INDICATORS

Retail sales decreased 2.5 percent to $61.3 billion in July, the first decline in seven months. Sales were down in nine of 11 subsectors, representing 94.5 of retail trade. The decrease was driven by lower sales at gasoline stations and clothing and clothing accessories stores. Core retail sales—which exclude gasoline stations and motor vehicle and parts dealers—decreased 0.9 percent. (StatCan)

Sales of existing U.S. homes took a 0.4 percent dip in August to an annualized rate of 4.8 million units. It was the seventh consecutive monthly decline. Sales were flat in the South, while increases in the Northeast and West were offset by declines in the Midwest. (National Association of Realtors)

Sales of new U.S. homes rose unexpectedly in August by 28.8 percent to an annualized rate of 685,000 units. The increase cut across all regions and was the strongest pace since March. (U.S. Commerce Dept.)

NOTED

The new Canadian Tire store at Carlingwood Shopping Centre in Ottawa, the company’s largest to date, is 7,200 feet long, or as long as 36 NHL hockey rinks. The store’s warehouse can fit 10,552 tires. If stacked on top of each other they would be three times taller than the CN Tower.

Classified Ads  

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There are positions for Mid-level and Senior-level management in the Sales department (Paint & Industrial channel).   Attractive compensation package is been offered for these roles.

If you are interested or know someone suitable for the role, share the resume with HR at hr@rustoleum.ca or visit https://www.rustoleum.ca/pages/Careers/Career-opportunity for details.

  Looking to post a classified ad? Email Michelle for a free quote.

Hardlines
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