After posting gains of 15.5 percent in 2020 and 11.3 percent in 2021, the retail home improvement industry in Canada plateaued in 2022. This was to be expected. Those two years under Covid were a great ride for the majority of dealers in the country.

However, the consumer frenzy for hardware and building supply products was dampened in the past year by multiple interest rate increases and declining commodity prices. Plus, the opening up of other places for customers to spend their money, as pandemic restrictions lifted, further slowed sales.

Hardlines estimates the industry grew 4.6 percent in 2022 to $61.14 billion, based on analysis of the growth by the large players, feedback from independent dealers through our annual Business Conditions Survey, and careful analysis of economic conditions and retail growth figures from StatCan. The data will be used in the 2023 Hardlines Retail Report, available in July.

Even after three pandemic years from 2020 to 2022, in which the industry grew 34.4 percent, the industry still managed last year to grow 4.6 percent. However, the Consumer Price Index was up nationally 6.8 percent in 2022, so the industry experienced a 2.2 percent decline in real terms, after inflation.

In 2019, pre-Covid, Hardlines reported an industry size of $45.5 billion. Last year’s gain was a tremendous feat, especially in a year in which commodity prices tumbled. The industry is still being impacted by commodity price declines and this will likely continue throughout the rest of this year.

(The final figures on the size and growth of the Canadian retail home improvement industry will be featured in our 2023 Hardlines Retail Report. This massive report, in a handy PowerPoint format, will be available in July. Click here for more details on this important body of research and to pre-order yours. As a Hardlines Premium Member-Subscriber, you’ll save over $400 on the price!)

Calgary’s Star Building Materials plans massive expansion

Star Building Materials, headquartered in Calgary, has unveiled an ambitious expansion plan that will greatly increase its output and capacity. The $53 million investment is expected to double the dealer’s production of trusses, engineered wood products, prefabricated wall panels, and interior finishing production. It will also add more than 140 new jobs.

Star Building Materials is a division of Qualico, a vertically integrated and fully diversified real estate and commercial construction company. Star has locations in Calgary and Winnipeg as well as a components division in Edmonton that supplies engineered wood products and trusses. It is also a member of Independent Lumber Dealers Co-operative.

Qualico Properties was instrumental in facilitating the acquisition of an 18-acre parcel of land adjacent to the company’s existing 12-acre facility in Balzac, Alta., in the Calgary Metropolitan Region. The expansion program is expected to help alleviate some of the stresses on the construction industry post-Covid as it confronts ongoing labour and material shortages.

“Through the past couple of years, we’ve learned how vital the supply chain is to the construction industry and we feel this expansion will add solutions to these challenges for years to come,” Ken Crockett (shown here), vice-president of Star Building Materials, told Hardlines. “Using new technologies, added automation, and expanding our production capacities will certainly help to alleviate these challenges.”

He says the expansion will double the capacity of Star’s existing operations and represents an overall investment in people, technology, automation, and the building industry.

The planned expansion follows another investment in growth in late 2019, when Star tripled the size of its distribution yard. That involved relocating from the Alyth Road operations site to its new North Star location near Stoney Trail.

Work on the expansion will begin in the fall and the site should be fully operational in late 2024 or early 2025. It will consist of three new buildings for production, adding to the existing two at the Balzac location. The company’s current operations in its Alyth yard located just off Deerfoot Trail will be consolidated at the facility in Balzac.

“Our plan is to have zero disruptions in service to all our clients throughout this process. Customer service is what has built our business and this expansion will only improve our customers’ experience with Star Building Materials.” Crockett adds.

RONA affiliate dealers open first urban store in the West

Amidst all the changes at RONA inc., with new ownership (Sycamore Partners) and a new boss (former Loblaw exec Garry Senecal), the company continues to develop its retail footprint.

One format that has been growing quietly is RONA’s urban store. It’s smaller than RONA’s building centres or big boxes, and the stores are strategically located in urban settings to better serve the surrounding communities. They can be in a shopping centre or in a downtown area.

With their small retail footprint, they also carry a reduced selection of building materials, but with no lumber yard. The stores also offer a small selection of appliances, supported by online ordering.

“In essence, regular RONA hardware stores are in every market throughout Canada, while an urban RONA store is one in the heart of a major city only,” says a spokesperson from RONA inc. A few of the urban stores already exist in Ontario and Quebec—RONA Bélanger in Montreal’s east-end neighborhood of Rosemont is one example.

Now, the retailer has established its first urban format store in western Canada. Two former RONA employees, Al Tsuchiya and Michael Trentalance (shown here), now the owners of the T&T Hardware Group, have joined RONA’s affiliated dealer network, with their store, RONA Walnut Grove in Langley B.C. The 5,500-square-foot location is getting a 2,200-square-foot expansion to offer up to 650 new SKUs of select building materials and plumbing products.

‘‘With the uniqueness of our distribution network and corporate stores within the Canadian markets, we can support this type of store better than anyone in our industry,” says Philippe Element, vice-president, RONA dealer sales and support.

On Gary Rasor’s 80th birthday, his children asked him to retire because there was no financial need for him to work. Rasor refused and told his children that he loved working at Home Depot, where he trained young employees and enjoyed interacting with customers.

Rasor continued to work for more than two years at The Home Depot in Hillsborough, N.C., until he was confronted by a man stealing three pressure washers last October. The man violently pushed Rancor, who crashed to the floor and was taken to the hospital—where he died from his injuries a few days after turning 83.

“He was just going to ask him for a receipt,” Rasor’s son Jeff said of his father and the man who attacked him.

The elder Rasor was attacked in the course of what authorities call organized retail crime—the large-scale theft of high-value items, which are then illegally resold. In an interview airing tonight on Nightline, Jeff Rasor told ABC News’ Erielle Reshef that he wants authorities to crack down on the growing phenomenon.

“There has to be consequences in my mind, and the consequences have to fit the crime,” he said. “I can’t imagine that any piece of equipment in Home Depot is worth a life—and so when you find out it’s $837, it’s just pretty bad.”

Five months after Gary Rasor’s death, another Home Depot employee was killed after confronting a shoplifter in a California store. Blake Mohs, a 26-year-old loss prevention employee, was shot in the chest while trying to stop a theft at a Home Depot in April. Two people have been arrested on murder charges in the case.

The two deaths come as law enforcement officials and advocates warn of an increase in violent and brazen acts during the commission of organized retail crimes. According to a report released by the National Retail Federation in the U.S., stores and retailers reported that the number of organized retail crime incidents increased by an average of 26.5 percent between 2020 and 2021.

More recently, a Florida man has been arrested on charges of being part of an organized theft ring that targeted Home Depot stores throughout Florida. The group would make fraudulent returns of stolen goods. He is allegedly responsible for a loss of $60,000 at stores in Orlando and Miami.

“It’s growing double-digit year over year,” Scott Glenn, Home Depot’s vice-president of asset protection, told ABC News. “We don’t have enough resources to handle it, [so] we have to prioritize the biggest impacts.”

Tony Cioffi, former president of Lowe’s Canada until March of this year—shortly after Sycamore Partners, a New York City-based private equity firm took over—has been appointed VP finance at Belron Inc. in Montreal. Belron is a giant automotive glass replacement firm with 32,000 employees in 34 countries. Its brands include Apple Auto Glass, Speedy Glass, and Lebeau. Cioffi was replaced as head of RONA inc. (formerly Lowe’s Canada) by Garry Senecal, a former Loblaw executive, who serves as RONA’s interim CEO.

DID YOU KNOW…?

… that the latest episode of our Hardlines podcast series features a great conversation with the current owners of BMR Paulin Moisan in Saint-Raymond, Que., cousins Mathieu Moisan and Marianne Moisan? The grandchildren of the store’s founders, they are also winners of our Young Retailer of the Year Award and have a great story to tell. But wait. It’s in French! Yup, this is our first podcast entirely in French, so ecoutez ici!

RETAILER NEWS

Home Hardware Stores Ltd. has signed a three-year extension as the official home improvement retailer of the Toronto Blue Jays. Under the new partnership, the Rogers Centre in Toronto will feature permanent signage promoting Home’s BeautiTone paint brand as the official paint of the Blue Jays. The retailer has been supporting the baseball team since 2005.

The A.R.E.N.A. Alliance has added BMR Group as its Canadian partner for the supply of renovation and home equipment products. A.R.E.N.A. is dedicated to sourcing and negotiation for DIY, garden, and home improvement products. BMR is its eighth national partner, and the first outside Europe.

Red Deer-based Peavey Industries has acquired its freight partner, Guy’s Freightways. The company is a logistics and transport company and a long-term partner of Peavey. Established in 1975 by Bernie Schwartz, Guy’s Freightways began as a single-truck operation delivering to six Peavey Mart stores. Now headed by Todd Schwartz, the company consists of 16 full-time trucks and 43 trailers. As part of Peavey Industries, it will continue to service Peavey’s retail network across Canada.

Home Depot Canada, through its charitable arm, the Home Depot Canada Foundation, has kicked off its Spring Orange Door Project. Until June 25, the fundraising drive will raise money online and through Home Depot stores across Canada on behalf of 126 local charities supporting youth within the local communities. The Home Depot Canada Foundation is committed to preventing and ending youth homelessness in Canada.

Calgary’s Mountain View Building Materials Ltd. has joined Sexton Group. Tracy Seibert and her late husband Doug founded Mountain View in early 2006. Today, the family business is owned and operated by their sons Joel and Brad, recently joined by a third partner, Sheila Carr.

The RONA Foundation, RONA inc.’s philanthropic arm, has contributed over $1 million to Opération Enfant Soleil and Children’s Miracle Network. In Quebec, RONA was once again the official materials supplier for the Maison Enfant Soleil, designed by Bonneville Homes. With the help of 14 suppliers and a corporate contribution, the network sponsorship was valued at $129,645.

Liesemer Home Hardware in Mildmay, Ont., celebrates its 150th anniversary from June 15 to 17. Founded in 1873 by Conrad Liesemer, the hardware store has been family-owned and operated for five generations. It was among the first stores to join Home Hardware back in 1964. The original building with its hardwood floors continues to serve the business after 150 years.

Princess Auto, the Winnipeg-based hardware and automotive products retailer, has opened its 70th location. The newest store is in Abbotsford, B.C. and marks its seventh location in British Columbia.

SUPPLIER NEWS

Taiga Building Products of Burnaby, B.C., has donated $20,000 to the Red Cross to support relief efforts after the recent wildfires in Alberta. “Taiga stands in solidarity with our customers, suppliers, and families directly affected by these devastating forest fires,” said COO Michael Sivucha.

Aliaxis, parent company of Ipex in North America, announced it has registered in Hydro-Québec’s Renewable Energy Certificates Pilot Project. The company intends to seek certificates covering 100 percent renewable electricity consumption for all its Quebec sites for the year 2023.

The value of building permits dropped 18.8 percent to $9.6 billion in April, the lowest level since December 2020. Residential permits declined 6.1 percent to $6.1 billion, the second consecutive monthly drop. Declines were posted for both the single-family and multi-dwelling components. However, much of that decline came from Ontario, down 10.5 percent. Elsewhere, British Columbia was up 2.6 percent and the value of building intentions in Saskatchewan was up a healthy 45.0 percent. Non-residential permits were down 34.6 percent following the strongest month on record in March. (StatCan)

NOTED

To show its support for its trade customers, Quebec retailer Canac, in partnership with its creative agency LG2, has launched an ad campaign that offers a fashion fix for plumbers when they bend and crouch to fix the pipes. With tongue firmly in cheek, the ad presents a new style of jeans that feature a flap to cover the infamous “plumber’s crack.” It’s very funny!

The Alberta forest fires have had a big impact on our industry, especially the forest products companies involved in logging and milling. One such firm is Weyerhaeuser Co. Ltd., which had to take emergency measures at three of its worker communities, in Drayton Valley, Edson, and Grande Prairie, Alta.

When multiple wildfires broke out at the beginning of May, the company completely evacuated about 300 employees plus their families from Drayton Valley and Edson. These employees were among an estimated 16,000 people in the two towns, most of whom were evacuated under an emergency order issued on May 4. By that time, there were 89 active wildfires in the province.

In Drayton Valley, the fires breached the perimeter of town, said David Graham, president of Weyerhaeuser’s Canadian subsidiary. “Our top priority was in protecting our people and the communities.” Houses were destroyed in both Drayton Valley and Edson. Grande Prairie, meanwhile, was threatened by multiple active wildfires during this time—although it was not under an evacuation order.

A core group of Weyerhaeuser employees stayed behind to help make the community safer, “under the protection and orders of the local authorities in command,” Graham told Hardlines. They engaged in creating more firebreaks, clearing land, and supporting the first responder crews.

At time of writing, the citizens of these towns are back home, the fires around these areas are no longer an immediate danger—rain the week before last helped—and the communities are safe again. But Graham is not breathing easier yet. “Fires in our timberlands are being monitored and some are still out of control,” he said.

“Our business is throughout North America. We’ve got fires, hurricanes, floods. We have to respond with vigour. It’s part of what we do. This [the successful evacuations] was a good news story but it’s going to be a long summer.”

With higher Q1 inventory, Canadian Tire waits out Q2 uncertainty

After a tough first quarter, where comp sales for its Canadian Tire stores dropped 4.8 percent, Canadian Tire Corp. moved into the second quarter with slightly better results. By the end of April, those same-store sales were up three percent, even though higher Q1 inventory levels had yet to ease. And given the fluctuations in weather through the spring, reducing inventory levels remained a challenge.

Weather-related factors were responsible for the vast majority of the sales decline, with sales of items like toboggans, heaters, humidifiers, and snow blowers down in the quarter.

Greg Hicks, president and CEO of Canadian Tire Corp., told analysts on the company’s first-quarter earnings call that there have been some high points, including an uptick in Alberta and elsewhere on the Prairies. But between the weather and the slowdown in consumer confidence, Hicks and his team expected a turnaround in Q2 could be elusive.

“Q1 was such a complex quarter to unpack, with all of the weather impacts, and then we do see some consumer softening signals as well, so I think once we get through Q2, we’ll be in much better shape to kind of really understand the consumer landscape,” he said.

One response has been to increase promotional activity, particularly in discretionary categories, which have softened in comparison to essential lines. TJ Flood, president of Canadian Tire Retail, noted that the company was still “heavy on the spring-summer side of inventory”—a concern, he said, shared by other retailers selling seasonal products, “so I think we are going to expect some promotional activity to heat up here.”

He echoed Hicks’s concern that the company’s outlook will be clearer as products move through the system in the spring-summer season. “Once we get through Q2, we’ll probably have a better ability to tease out weather versus consumer sentiment at this point.”

While Canadian Tire’s distribution centres face excess inventory, with the rate of growth in Q1 down from the previous quarter, a lot of the higher cost of that inventory is due to inflation, said Flood. “Forty percent of that on the corporate side of things can be attributed to inflation, so we’re heading in the right direction in terms of the rate of growth and we’re going to be continuing to manage our inventory very surgically.”

On the dealer side, he notes, the situation is even more positive, as “they’re only up slightly [on] year-over-year in inventory, and that’s entirely attributable to inflation, so they’re in much cleaner shape.”

Home Depot in the U.S. now selling tiny homes online and through its stores

Houses that can be erected in as short a time as one day are being sold by Home Depot. The homes, as small as 140 square feet in size (for the “Sedona” model), are sold without extras like windows. Home Depot offers a link to a preferred partner that will build the house for the customer.

The tiny home trend is catching on in Canadian cities as a solution for both decreased housing affordability and increasing density. For example, Ontario has provincial regulations that allow the development of smaller-footprint residences with a minimum of 188 square feet in lanes, backyards, and on cottage properties. There are even several tiny home communities springing up throughout the province.

However, the tiny homes are not available at Home Depot stores in Canada, nor can they be purchased through Homedepot.ca. In the U.S., the tiny home trend offers an alternative to the affordable mobile or trailer home option.

While the price includes delivery, the package consists only of the steel structure and the necessary components to assemble it. It doesn’t include windows, doors, floors, walls, or siding. But Home Depot has its own construction and build team, which helps to determine the materials necessary to build each project, including wiring and plumbing.

In addition, all orders are checked by a certified engineer to ensure each complies with the purchaser’s local building codes. The services allow customers to work with the retailer directly to customize and adapt their tiny home package.

Hudson’s Bay Co. intends to keep expanding its Zellers brand across Canada—through both bricks and mortar and online presences. That will include increasing the store-within-a-store’s footprint in cities across the country. The retailer has significant liquidity to enhance its offerings and has raised additional capital to support that investment.

Now, Zellers is setting its sights on additional locations. The Zellers rebirth started as a series of pop-up boutiques within Hudson’s Bay stores—and more are to come. A pop-up Zellers section will launch this month at The Bay’s flagship Queen Street store in Toronto. An additional 20 pop-ups are expected to open in August.

The pop-ups will effectively measure customer response in each market to determine the best fits for the Zellers store experience. “We have always said that we will listen to Canadians, and they will tell us where to grow,” says HBC president Sophia Hwang-Judiesch. “With these pop-ups, our expansion strategy will be fueled by the interest and feedback from our customers across the country.”

The department store is a retail format that has had difficulty reinventing itself in the e-commerce age. Nor has Covid been kind to the all-in-one retail format. Yet discount mass merchants and dollar stores have flourished during the pandemic. For Hudson’s Bay, reviving the Zellers brand gives the retailer a conduit for low-priced assortments that could well be a strategy to compete with the discounters.

Zellers’ price philosophy is built on everyday low prices for product assortments that are built on three pillars, says the company: quality, design, and value. Those assortments cross a range of key lifestyle categories, including kitchen and bath, accent furniture and home décor, organization and storage, baby and kids’ toys and apparel, pets, and clothing basics.

HBC, the holding company whose holdings include Hudson’s Bay and Zellers, as well as Saks Fifth Avenue and Saks Off 5th, has raised $240 million of additional liquidity to further invest in and grow its operating businesses. The company says it sees “an immense opportunity for growth in its retail markets,” especially as other retailers exit the Canadian market.

IKEA veteran Selwyn Crittendon will take over as CEO and chief sustainability officer of IKEA Canada, effective Aug. 1. Previously country business development and transformation manager at IKEA U.S., he has been with the retailer for more than 20 years, starting out as customer service manager at a Washington, D.C.-area store. In the top job at IKEA Canada, he will oversee its continued efforts to expand its omnichannel strategy.

Executive recruiter DMC Recruitment has promoted Karine Gagnon to the role of manager of lumber and building materials recruitment. She will oversee the development of the team of LBM recruiters. Gagnon was recently named Recruiter of the Year for Quebec by the Association of Canadian Search, Employment, and Staffing Services (ACSESS).

 

DID YOU KNOW…?

… that Hardlines will be part of a luxury cruise for Canadians in tandem with next year’s International Hardware Fair in Cologne, Germany? In partnership with the Building Supply Industry Association of British Columbia, we’re organizing a business trip to Cologne to attend the largest hardware show in the world, followed by an industry tour of the Rhine River on our own dedicated ship. The seven-day trip begins March 6, 2024. Space is limited and we need to confirm enough people to make the trip work by the end of June, so please contact Thomas Foreman, president of the BSIA of B.C., as soon as possible to guarantee your spot!

RETAILER NEWS

Kingdon TIMBER MART in central Ontario held a grand opening for its store in Lakefield, about 20 minutes outside Peterborough. The 50,000-square-foot store replaces an older site nearby and the parking lot had lots of activities for customers and their families. Local food vendors served up treats, while other activities included chainsaw sculpture, product demonstrations, and axe-throwing contests.

BMR Group last week formally launched the BMR Amqui hardware store, which has been under the banner for almost a year. The hardware store was acquired in 2022 by BMR member Unoria Cooperative, owner of a network of 13 hardware stores in the Bas-Saint-Laurent and Gaspésie regions.

TIMBER MART has named the four finalists eligible to win grants for community projects through its Local Leaders Initiative. Dealers can nominate individuals who show leadership and make a positive impact through projects, programs, or initiatives in their communities. Each finalist wins $8,000 for a cause of their choice and the winner, to be announced July 10, will get an additional $10,000 for the cause of their choosing. The finalists are: Frank King of Charlottetown, P.E.I.; Pierre Côté of Sherbrooke, Que.; Karen Watson of Havelock, Ont.; and Joy Neufeld of Steinbach, Man.

Al Tsuchyia and Michael Trentalance, owners of the T & T Hardware Group, have joined RONA’s affiliated dealer network. The pair are former RONA employees. They have announced a 2,200-square-foot expansion of their hardware store, located in a shopping centre in Walnut Grove, B.C. It’s RONA’s first urban store in western Canada.

Retailers across Canada gathered last week in Toronto for the Excellence in Retailing Awards. They were presented during a gala dinner at the end of day one of the Retail Council of Canada’s conference, STORE23. Notable winners were: Canadian Tire Corp. for Environmental Leadership and for In-Store Experience & Design; Giant Tiger Stores for Philanthropic Leadership; Calgary Co-op for Philanthropic Leadership; and Staples Canada for Talent Development. The winner of the RCC’s Award of Distinction went to Greg Hicks, president and CEO of Canadian Tire Corp.

Matériaux Pont-Masson has marked the grand opening of its ninth store, in Val-Morin, Que. The new outlet includes a 13,000-square-foot sales area and a covered warehouse area of 30,000 square feet. The store will offer a range of dedicated services for pro customers, including extended contractor hours and financing.

Giant Tiger will hold a grand opening for its newest location on June 10 in Huntsville, Ont. The 18,600-square-foot store is located at 70 King William St. in the Central Ontario community.

SUPPLIER NEWS

Barbecue maker Napoleon is commissioning newly expanded warehouse operations in Crittenden, Ky. Driven by strong demand in the U.S. market, the added warehouse investment enables better fulfillment and customer service to Napoleon’s customers there, says the company, and marks the beginning of a larger U.S. supply network expansion. In addition, Napoleon was awarded for the 11th consecutive year as one of Canada’s Best Managed Companies by financial consulting firm Deloitte. The annual review recognizes Canadian-owned businesses for their strength in strategy, commitment, capability, financial performance, and leading practices in ESG.

Quebec kitchen and bathroom cabinet maker Ébénisterie St-Urbain (EBSU) is facing the threat of bankruptcy, Le Journal de Montréal reports, thanks to its 2021 acquisition of Woodlore. At the time of the deal, Ontario-based Woodlore concealed from EBSU that it was being sued for breach of contract by a customer accounting for 40 percent of its sales. It lost that customer three months after the acquisition. Compounding EBSU’s woes, RONA, BMR, and Patrick Morin have all reduced their orders from the manufacturer. A RONA spokesperson however told Le Journal that fluctuations in orders are normal and not attributable to EBSU’s situation and RONA’s current order volume with EBSU remains very high.

Ryobi Tools has launched a new merchandising concept at the Home Depot store in Barrie, Ont. The store-within-a-store concept, called the Ryobi Power Centre, has been designed to offer a wide range of power tools, power tool accessories, and outdoor power equipment in an immersive setting to encourage deeper engagement with customers. The concept offers information and education, interactive video displays, and live interactive demos, as well as exclusive in-store events every weekend.

OVERHEARD…

“Prices are up the most in 40 years. So I don’t expect people to be happy about that. At the same time, I think there’s a false narrative out there being propagated that grocers or retailers are taking advantage of the situation, which is completely untrue.” —Michael Medline, president and CEO of Empire Co., whose holdings include the Sobeys grocery chain. He was interviewed in the latest edition of ROB Magazine.

Forecasts by the leading public hardware and home improvement retailers have already sent a message that 2023 is going to be a slow year. Home Depot, Lowe’s, and Canadian Tire all expect sales to dip by as much as five percent. (See last week’s issue for the full story. —your helpful Editor)

The expectations of independent dealers across Canada indicate they are facing the same concerns.

Hardlines surveyed hardware and home improvement dealers earlier this spring and found that most are facing flat sales for 2023. The average for all dealers that responded is -0.7 percent. There were some highs—a few respondents in Ontario expect five or even 10 percent gains this year, and Saskatchewan dealers were most positive overall, on average expecting a two percent gain. In Nova Scotia, some dealers expect gains of seven, eight, and even 10 percent, despite their concerns about sourcing and product shortages.

However, most dealers in the survey anticipate zero growth in 2023. Dealers that expected a real drop in sales were typically forecasting a decline of 10 percent—and a few cited expected downturns of 20 and 25 percent. The dealers predicting the greatest anticipated losses are generally strong independents who had big gains in 2022, following a banner year for the entire industry in 2021. (None of the dealers can be named to respect the confidentiality of the survey.—your faithful fact-checking Editor)

In other words, dealers will have a hard time maintaining the momentum of the past three years. The slowdown began last year: after a strong first quarter, the industry saw sales drop off as interest rates and inflation sped up, coupled with falling LBM prices.

In fact, Hardlines has calculated a modest gain by the industry in 2022, but one that was still below the national inflation rate of 6.8 percent last year.

The flat forecast for the current year is not entirely bad news, then, but can instead be interpreted as a continued correction in the market. This cooling off can have a number of upsides, taking the pressure off hiring demands and easing the strain on the supply chain as product flow and pricing return to a new normal.

Under new owners, affiliate dealers will get a better deal, says RONA SVP

Without the leadership of Lowe’s Cos. in the U.S., the executive team at RONA inc. is wasting no time doing things their own way. The sale of the former Lowe’s Canada to a New York City-based private equity firm was finalized on Feb. 3.

Ads have become more humorous, the RONA brand is getting increased awareness, and the affiliate dealers are getting more attention. Hardlines reached out to Jean-Sébastien Lamoureux, senior vice-president, RONA affiliates, wholesale, and public affairs. “Lowe’s were great partners right across the board, but we’re very excited by what we’ve seen from our new owners, Sycamore Partners,” he says, “and it’s really resonating with the independent dealers.”

Out of a total of 445 stores, RONA has 333 RONA-bannered locations, of which about half are affiliate dealers. “The dealer RONA network is one of the growth vectors for the future. That’s our main theme here. We value the history that the dealer network has with this company.”

Asked about what that growth will look like, Lamoureux underlines three strategies. The company definitely wants to add more dealers and increase the number of independents flying the RONA banner. Lamoureux also wants to broaden the geographic reach of the dealer network. Its greatest concentration—outside of its home province of Quebec—is in British Columbia and Ontario.

And the opportunity for individual dealers that are already part of RONA is big, he adds, with support in place for those dealers to add stores or buy out competitors. “We want to be a partner in their growth, not only organically, but in terms of consolidating their markets.”

Will RONA focus mainly on larger building centres? Lamoureux says no. The company wants to recruit and develop every type of dealer from hardware stores to home centres and lumberyards. Each type of store represents a format that can position a retailer effectively to serve its local market.

“As RONA is getting back to its roots, it’s only natural that the independent dealers play a significant role in the company in the future.”

(Jean-Sébastien Lamoureux will be a keynote presenter at this year’s Hardlines Conference, Oct. 17 and 18 in Whistler, B.C. You’ll want to hear the latest about RONA’s plans for its affiliate dealers right from the source! So click here now to learn more and secure your spot at this incredible event!)

Despite lower Q1 results, Lowe’s makes healthy online sales gains

Lowe’s Cos., which reported first-quarter sales last week that were five percent below last year’s Q1, is feeling the pinch on big-ticket items now that the Covid-driven consumer frenzy for home improvements has abated.

The retailer posted Q1 earnings of $2.26 billion, down from $2.33 billion a year ago. Sales fell by more than five percent to $22.35 billion, compared to $23.66 billion in Q1 of 2022. Comp sales fell by 4.3 percent. The biggest drop was from DIY customers; Lowe’s contractor business was healthier with positive comps in some pro categories.

“Candidly, what we’re seeing is pressure across big-ticket discretionary purchases primarily,” Marvin Ellison, president and CEO of Lowe’s, said on a call with investors and journalists. “We’re seeing some pressure in small-ticket [items], but it’s more pronounced in big-ticket [items] and is almost exclusively discretionary in DIY.”

However, the company continues to make gains in its online sales, as part of its “Total Home” strategy. E-commerce sales were up six percent in the quarter, bringing the retailer’s online sales penetration to almost 10 percent of overall sales.

One of Lowe’s strategies to counter the new consumer thriftiness will be to introduce more private-label Lowe’s products, including a new line of closet organization products and an exclusive line of tintable paints formulated specifically for pros from Sherwin-Williams.

“Our private-brand strategy allows us to deliver value to DIY customers who are looking for high-quality, on-trend products at more affordable price points,” said Bill Boltz, Lowe’s executive vice-president for merchandising.

A brand new retail home furnishings and décor banner is coming to Canada, and it’s taking over at least 21 former Bed, Bath & Beyond locations after that chain entered bankruptcy protection. Putman Investments—already an operator of multiple retail brands—will launch a new retailer called rooms + spaces.

Putman Investments is an Ancaster, Ont.-based company that already owns Toys “R” Us, Sunrise Records, FYE (For Your Entertainment), HMV UK, and T. Kettle (formerly Davids Tea). Hardlines interviewed the 39-year-old investment firm’s founder, Doug Putman, and found him bullish on the future of—not just his rooms + spaces brand—but bricks and mortar retail in Canada in general.

Putman Investments is all family money, Putman said, with sales from the 25 companies it owns approaching $4 billion. In addition to its flagship retailers, the company owns distribution, manufacturing, and real estate. “We take no outside investment, so everything we buy, we own 100 percent.”

“They are just companies that are out of fashion, or not doing well, and they’re just kind of at the end of their life,” Putman said. “People say to me, why did you get into the distressed [retailer] business? The answer was simple, I didn’t have enough money to buy a good business!”

Putman’s first investment was troubled Sunrise Records, which he bought for not much money at all. Now he is a significant global player in the recorded music bricks-and-mortar space (HMV UK is a top 10 retail brand), confounding sceptics who thought that Spotify, iTunes, and other digital music vendors would drive his record shops out of business.

“They are unfashionable businesses, for sure, but they do fantastically well,” Putman says. “We hit it perfectly with vinyl… and with an explosion in pop culture products in general, whether it’s T-shirts or paraphernalia.”

Putman once said that he didn’t want to invest in anything that didn’t have “unlimited upside.” Does rooms + spaces have that upside? To Putman it does: “We’re starting with about 30 stores [Putman is in negotiation to take over more Bed Bath & Beyond leases beyond the already-announced 21 locations] in a market that’s billions of dollars, right? I think we’ve got this potential. Are we going to have a large market share in certain areas? No. But I think we can have a good share.”

Walmart Canada has made changes to its lineup of senior executives. Mohammed Abdool-Samad has joined as CFO. He was group CFO at Walmart’s Massmart business in South Africa. John Bayliss has been named chief administration officer. He was formerly an EVP. Michon Williams has been promoted to chief technology officer from the role of VP technology. Joe Schrauder has joined as VP, operations and chief of staff to the CEO. He is relocating to Canada from Walmart’s Bentonville, Ark., head office, where he was VP, international operations and realty for Walmart International.

DID YOU KNOW…?

… that the 2023 Hardlines Conference will take place Oct. 17 and 18 at the Fairmont Chateau Whistler Resort in Whistler, B.C.? The two-day program includes speakers from leading home improvement organizations such as RONA, Home Depot, Taiga Building Products, Federated Co-op, and Ace Canada. Hardlines Weekly Report subscribers can take advantage of a 20 percent discount on registration, while special pricing is available to dealers!

RETAILER NEWS

Gow’s Home Hardware in Bridgewater, N.S., held a celebration recently for its 175th anniversary. Dealer-owner Amanda Fancy accepted the Outstanding Retailer Award for Best Hardware Store at the 2017 Hardlines Conference. Since then, the store has moved to a new location and added furniture and appliances to its offerings. During the pandemic, the store’s annual sales exceeded $18 million.

A Castle dealer is planning the opening this spring of a new store on Prince Edward Island. Brudenell Building Centre in Montague is the latest expansion for long-time Castle member Mike James. James owns Spring Valley Building Centre in Kensington, near Summerside, and O’Leary Building Centre in O’Leary, on the west side of the island. His new partner is Adam Baird, who will serve as the store’s general manager.

SUPPLIER NEWS

The Retail Council of Canada will hold its flagship event, RCC Store23, on May 30 and 31 at the Toronto Congress Centre, near Pearson International Airport. Speakers include Retail Prophet founder Doug Stephens, Holt Renfrew CEO Sebastian Picardo, and Danyal Syed Ali, head of consumer and customer insights at IKEA Canada. (Check out the complete agenda here or click here to buy tickets.)

Doman Building Materials Group, the owner of CanWel Building Materials, reported a big decline in revenue in the first quarter compared to Q1 of 2022. Revenues were $609.1 million, compared to $851.3 million in the prior year—a 28.5 percent drop. Net earnings for the first quarter were $14.91 million, down 64.5 percent from $42.03 million a year prior. The drop in revenue was “largely due to the impact of construction materials pricing, which peaked in the comparable period in 2022,” said the company in a release.

Aliaxis SA, which operates in North America under the Ipex brand, has reached an agreement to acquire the manufacturing business of U.S.-based Valencia Pipe Co. The $250 million transaction will bring two production facilities and one distribution centre into the Ipex fold, in the states of Arizona and Washington. In a release, Alex Mestres, Aliaxis’ divisional CEO of the Americas, called the acquisition “an excellent opportunity to expand our reach into the western United States.”

ECONOMIC INDICATORS

Retail sales decreased by 1.4 percent to $65.3 billion in March. Sales fell in five out of nine subsectors, representing 55.5 percent of retail trade. The biggest declines were in automotive and fuel categories. Core retail sales for the month rose by 0.3 percent in March, the fourth consecutive increase. The gain was led by higher sales at building material and garden equipment and supplies dealers, which were up 1.6 percent. (StatCan)

NOTED

Martha Billes, daughter of Canadian Tire co-founder A.J. Billes, and her son, Owen Billes, own 61.4 percent of all common shares of Canadian Tire Corp. According to CTC’s 2022 annual report, they “beneficially own, or control, or direct the shares through two privately held companies, Tire ‘N’ Me Pty. Ltd. and Albikin Management Inc. Both Martha and Owen are members of the CTC board. Martha was invested as an Officer of the Order of Canada in 2022.

OVERHEARD…

“Canadian Tire and our associate dealers do not condone the anti-Trudeau protests happening in some of our stores’ parking lots. Use of our logo, and unauthorized rallies in our stores or parking lots, are strictly prohibited.”
—A tweet issued by Canadian Tire on May 17.

Home Depot released its first-quarter results last week and they were sobering. The world’s largest home improvement retailer missed revenue expectations and reduced its 2023 fiscal year forecast, predicting that sales will decline between two and five percent this year. Previously, the company said sales in 2023 would be roughly flat.

Revenue for the quarter was $37.26 billion versus $38.28 billion expected. Comp sales fell 4.5 percent in the quarter. First quarter net income was $3.87 billion, down from $4.23 billion a year earlier.

Home Depot had reported a healthy performance in 2022, with sales up 4.1 percent following two of the best years of growth for the company—and the industry—in decades. But the market was already slowing through 2022, as LBM prices tumbled back down from the historic highs seen during the first two years of the pandemic.

While this industry flourished under Covid, forecasts by all the big retailers have tended to be moderate for the year ahead, as the momentum from home improvement and reno investments begins to tail off. Couple that with the fact that interest rates remain high and inflation rose again in April, to 4.4 percent from March’s 4.3 percent. That inflation is affecting core sectors such as food costs, and people are simply spending their money elsewhere. Home Depot said that customers were buying fewer big-ticket items.

The results fit a trend that independent dealers are already seeing—a slowdown versus a year of growth in 2022. It was a tough act to follow.

While Lowe’s results won’t come out until tomorrow, its year-end forecast for 2023 was already stated as flat or down one to two percent. Like its chief rival’s, this outlook may prove optimistic.

Canadian Tire Corp. shared similar pain in its Q1 results call, as overall net income fell 3.4 percent year over year. Comp sales for its Canadian Tire stores were down 4.8 percent. According to Greg Hicks, president and CEO of CTC, in a call to analysts, the outlook is more cautious moving through 2023.

“Given the macro backdrop combined with what we are seeing in the performance of our business, we are expecting a more constrained demand environment as we look forward, especially in the first six months of this year,” Hicks said. (Surely the most genteel way of saying, ‘People are buying less’ that we’ve heard in a long time!—Editor)

Like Home Depot, Canadian Tire has seen a shift in spending patterns by its customers. Discretionary spending has slowed, including for larger-ticket items, while its so-called “essentials” category has been moving a lot more product, especially automotive products and pet supplies.

(Next week, we will report on the business forecasts of independent dealers in Canada, using the data from our latest Hardlines Dealer Survey.)

Loblaw is the latest big retailer to enter appliance sales

Real Canadian Superstore, the big box format for the Loblaw chain, is now carrying heavy appliances in a pilot at its store in Milton, Ont. The retailer is teaming up with Canadian Appliance Source with a store-within-a-store model.

The pilot features more than a dozen brands, including LG, Kitchen Aid, Samsung, Bosch, and Frigidaire. At 1,900 square feet, the store-within-a-store concept will be operated by CAS appliance experts and offer the same service, terms, and conditions as standalone CAS stores. Customers will also be able to redeem PC Optimum points on major appliance purchases in this area of the store.

CAS was started in 2008 and now has almost 40 locations. They are concentrated in major cities like Toronto, Vancouver, and Montreal, but the retailer has locations across the Prairies and in Nova Scotia.

The appliance market is a strong one for home improvement retailers, albeit a relatively new one. The market for appliance sales opened up more than a decade ago when Sears, the leading appliance seller in North America, began its decline. Sears carried a range of brands, including its own Kenmore label. At its peak, it owned almost half the appliance market in the U.S., but even by 2003, Lowe’s was in second place with almost 14 percent of the market, while Home Depot was growing that category and had just over five percent of appliance sale share.

Lowe’s brought appliance sales with it to Canadian Lowe’s stores when it took over RONA inc. in 2016.

At one point, Sears Canada had 140 locations plus about 900 catalogue and online pick-up locations. When it closed its doors, Home Depot was quick to follow the Lowe’s lead in filling in the gap. Sears Canada closed its last store in January 2018, and soon after a new-look RONA store was introduced that featured an expanded appliance selection, following the model of the Lowe’s stores in Canada.

Other retailers followed suit. Home Hardware eventually made the foray into heavy appliances, and the category now constitutes an important part of many Home Hardware stores. Even many of Home’s smaller traditional hardware stores maintain a small showroom and take special orders.

Loblaw has plans grow its presence in appliances as well. The first pilot will be expanded “to a small number of additional [Real Canadian Superstore] locations across the country later this year,” according to a release.

Where is housing going? Mixed messages, but overall positive signs ahead

Sales of existing Canadian homes jumped by 11.3 percent in April compared to the previous month. With prices stalled and supply low, the market appeared to take off following Easter weekend, reports the Canadian Real Estate Association.

Greater Toronto and the B.C. Lower Mainland in particular,were hotspots for growth. However, the rate has not returned to pre-Covid levels. The actual (not seasonally adjusted) number of transactions for the month were still 19.5 percent below April 2022. Still, CREA notes that this was a markedly smaller decline than those seen over the past year.

Demand still outstrips supply, keeping the market tight. The number of new listings that came on the market last month was up only 1.6 percent and represents a 20-year low. However, most of that gain was from the previous month, indicating a trend of picking up speed.

And the price for real estate is not increasing dramatically. The actual (not seasonally adjusted) national average sale price posted a 3.9 percent year-over-year decline in April. Looking ahead, housing intentions for the country, as reported by Canada Mortgage and Housing Corp., showed an increase of 22 percent in April, reaching 261,559 units. In urban markets, housing starts rose by 26 percent, with the greatest gains in the big three markets of Vancouver, Toronto, and Montreal.

The condo market in key markets is also showing healthy activity. Multi-unit urban starts increased by 33 percent to 201,621 units in April. However, that gain comes at the expense of the single-detached market. Urban starts for single-detached homes actually decreased by two percent to 39,964 units.

CMHC, in its Housing Market Outlook – Spring 2023 edition, anticipates that lack of consumer confidence will hold prices and markets down, at least through the rest of the year. “Weaker economic growth and higher mortgage rates continue to slow the economy in 2023. As a result, we expect a price decline between 2022 and 2023, but the average price will not revert to pre-pandemic levels. However, we expect this decline to bottom out sometime in 2023,” says the report.

The Prairies are expected to lead the growth, while Ontario, British Columbia, and Quebec are expected to see large declines in 2023 housing starts, despite the April surge in condo starts.

New home activity is strengthening, but those gains are being made primarily with condo markets in major cities. Commercial-side dealers may benefit. For dealers relying on single-detached houses, the market continues to be slow. Nevertheless, the reno and décor market that is typically a beneficiary of home resales could show more signs of life moving into the middle of the year.

A warehouse robotics firm has filed a statement of claim against Canadian Tire over the latter’s mid-March fire at one of its largest distribution centres in Brampton, Ont.

Calgary-based Attabotics specializes in inventory storage and supply chain systems, helping companies compete against the likes of Amazon.

The start-up was working with Canadian Tire to develop robots (Not exactly as shown—Editor) that “move and pick in three dimensions,” according to the company’s website, to reduce the inefficiencies of “legacy” row-and-aisle warehouse systems. The company claims the fire at the Brampton CTC facility caused damages to Attabotics.

The damages, according to the claim, include “loss of reputation, business opportunities, goodwill, market share, and/or loss of profit.” The fire occurred because of Canadian Tire’s “wrongful conduct, statutory breaches, breaches of contract, gross negligence, willful misconduct, negligence, and recklessness,” the claim alleges.

Attabotics is a startup that raised $71.7 million in new funding at the end of last year to help it develop its business. Funding came through Export Development Canada, with involvement from the Ontario Teachers’ Pension Plan Board, taking the company’s total funding to $165.1 million.

DID YOU KNOW…?

…that entries for our 2023 Outstanding Retailer Awards (ORAs) are due to be emailed to Hardlines in just four weeks? Yes, the deadline is Friday, June 16. Entering the ORAs is easy. Just go to hardlines.ca and click on the ORAs link. You’ll find everything you need to send us your entry. This prestigious award could be presented to you on the evening of Oct. 17, 2023, in Whistler, B.C., at the Hardlines Conference. If you win, you will be there as our honoured guest, accommodations and transportation included. Enter now! The publicity benefits of being named an ORA winner are huge!

RETAILER NEWS

Home Hardware dealer-owners Blair and Nyssa Kneller have expanded their store, Westlock Home Hardware, in Westlock, Alta., 90 kilometres north of Edmonton, from 8,800 square feet to 15,500 square feet. With the expansion, the Knellers now have an M&M Express meat shop and a large sporting goods department. The store has served the community for 110 years. Blair Kneller became dealer-owner of the store in 2012. In Ontario, Adam Moulton, dealer-owner of five Home Hardware stores, celebrated two grand reopenings recently following store upgrades of his own. He took over both Ingersoll Home Hardware Building Centre and Strathroy Home Hardware Building Centre in 2021.

Walmart has reported that its Q1 earnings came to $1.67 billion, down from $2.05 billion in the same quarter of 2022. Sales were up, however, rising by 7.6 percent to $152.3 billion. In Canada, net sales rose 6.7 percent to $5.5 billion while comp sales were up by the same percentage.

Target reported Q1 earnings of $950 million, or $2.05 per share, down from $1.01 billion a year earlier. Revenues overall edged up by less than one percent to $25.32 billion, beating an expected $25.29 billion. Comp sales for the quarter remained flat.

SUPPLIER NEWS

Rust-Oleum Canada has moved into the wall paint market. The company, best known for its range of specialty paints, stains, and anti-rust coatings, has now introduced Colour Spark, its newest foray into a broader range of coatings. The Colour Spark line consists of 13 pre-tinted shades which can be picked up in stores or ordered online. The self-priming paints come in both interior and exterior formulations and are available in either eggshell or semi-gloss finishes.

Taiga Building Products has become the official Canadian independent retailer distributor for Hoft. Based in Greater Montreal, Hoft manufactures all-aluminum privacy screens, railing, fencepost kits, and accessories. Hoft’s post kits are designed for both pros and DIYers.

Canfor Corp., the Vancouver-based forest products company, had a Q1 loss of $142 million. This compares to a profit of $534 million in the same period last year. The company blamed falling lumber and lumber product prices. Revenue in the quarter was $1.39 billion, down 37 percent from $2.21 billion in the previous Q1.

The Bosch Group ended 2022 with total sales of 88.2 billion euros (CD$129.2 billion), up 12.0 percent over the previous year. in the first quarter of 2023, the company saw a sales increase of 3.5 percent. North America was especially strong, with double-digit growth of 18 percent. In Europe, the company grew by 7.7 percent.

ECONOMIC INDICATORS

Investment in building construction declined 1.3 percent to $20.3 billion in March, with spending on residential builds down 2.1 percent to $14.6 billion. Investment in the single-family sector fell by 1.8 percent to $7.9 billion. Non-residential construction spending continued to climb, up 0.9 percent to $5.7 billion. (StatCan)

U.S. retail sales edged up by 0.4 percent in April. Sales by LBM and garden supply dealers were up 0.5 percent from March but remained 3.7 percent below last April. March’s data was revised slightly downward to a decline of 0.7 percent from the estimated 0.6 percent. (U.S. Commerce Dept.)

NOTED

Canadian Tire continues to invest in attracting members to its Triangle Rewards program, a loyalty program that rewards shoppers across all of Canadian Tire’s brands, including Mark’s, SportCheck, Party City, and PartSource. The program boasts 11.4 million active members. Canadian Tire’s new Triangle Select subscription membership program, launched in January 2023, now has more than 22,000 members.

OVERHEARD…

“We wanted to reinvent and simplify the painting experience to make it easier and less confusing for homeowners, renters, DIYers, and pros by creating a high-performance, pre-tinted paint line and easy online and in-store experience.”
—Maurice Lobreau, Rust-Oleum Canada’s vice-president and general manager, on the company’s launch of a line of wall paint, a significant departure from its focus on specialty paints and coatings.

The statistics don’t lie: revenue earned from retail e-commerce is estimated to exceed one trillion dollars in 2023 in the U.S. alone. According to both the U.S. Census Bureau and financial services provider Fundera, 16 percent of all retail purchases are made on e-commerce sites, which will translate into global online sales totaling $6.3 trillion this year.

But for independent hardware stores and building centres in this country, the reality is quite different. No question, during Covid dealers figured ways to accommodate their customers with virtual service, including curbside pickup. But that interaction was not always digitally driven. Especially in smaller communities, the telephone is often the preferred way to connect. Our latest survey of dealer business conditions bears this out.

Canadian hardware and building supply dealers that sell online averaged, in both cases, 0.9 percent. But the overall industry average of online sales for independents, not including Lowe’s and Home Depot stores, is barely 0.1 percent, because the majority of dealers cite no online sales.

There are exceptions to this data. Brent Perry of Alf Curtis Home Improvements, a Castle dealer with three stores based in Peterborough, Ont., admits his online sales aren’t much higher than those of his fellow dealers. But he says it’s not about how much you’re selling online; it’s about being there, about having a presence.

And his presence has been assisted by Orgill, the giant Memphis-based hardware distributor, which has introduced a suite of new e-commerce options for its dealer customers. Dubbed Impact eCommerce, the service was presented at the latest Orgill Spring Dealer Market, held earlier this year. The platform enables dealers to sell products online with a truly transactional site.

 Dave Audette admits he has a “love/hate relationship” with his store’s online business. He and his wife Jessica are the owners of Lorette Home Hardware, about 20 minutes south of Winnipeg. At seven percent of overall sales, their store’s online business far exceeds the national average for independent dealers.

Dave notes that in the past week the store received 31 e-commerce sales. They ranged from bone meal fertilizer and fasteners to a gazebo, one order for a barbecue and a lawn mower, and some gardening kits. Other items that sell really well online, he adds, include showers, especially by Maax and Mirolin. In fact, they sell twice as much online as in-store.

Cologne Hardware Fair in 2024: combine it with a Rhine cruise!

We’re pretty excited about this one, to put it mildly.

In partnership with the Building Supply Industry Association of British Columbia, Hardlines is pleased to announce a very special addition for Canadians to next year’s International Hardware Fair in Cologne, Germany. We are organizing a business trip to Cologne to attend the largest hardware show in the world, followed by an industry tour of the Rhine River in our own dedicated ship.

Dealers and suppliers can take the trip of a lifetime following the International Hardware Fair. Hardlines, with the Building Supply Industry Association of B.C., Expedia Cruises in Surrey, B.C., and the Asia Pacific Wine and Spirit Institute, presents this unique trip from Cologne to Amsterdam. And you’ll be in great company.

This seven-day trip, which begins March 6, is designed for industry leaders—dealers, buyers, and suppliers alike—who see the benefit of attending unique events and trade shows.

The International Hardware Fair is reason enough for any buyer, dealer, agent, or supplier to get overseas next spring. This show is not only a source for cutting-edge new products, but it’s a wellspring of merchandising and packaging innovations as well. It runs from March 3 to 6, 2024. From there, our group will move right over to board our own cruise ship, the Avalon Passion. It departs Cologne on March 6 and arrives in Amsterdam March 13.

Don’t miss this once-in-a-lifetime trip along the Rhine aboard the beautiful Avalon Passion, sailing from Cologne to Amsterdam. And you’ll be making global home improvement industry connections along the way!

Join Dr. Clinton Lee, the executive director at the Asia Pacific Wine and Spirit Institute, who is an international wine and spirit educator. His CV includes being a keynote speaker and the author of “Master the art of Manners.” Dr. Lee has travelled to over 100 countries and has delivered masterclasses on five continents. He is an acknowledged global etiquette master and social media influencer with over two million followers. Our guests will join him on board to learn about wine, scotch, and fine cigars.

Dean McIntosh is a Canadian Red Seal Chef and Butcher, travelling the world and sharing his extraordinary global experiences with a range of foods and cultures. With Dean, guests will be able to prepare regional cultural dishes right on board.

The boat is limited to 100 people, so spots are limited. And we have to confirm enough people to make the trip work by the end of June, so please contact Thomas Foreman, president of the BSIA of B.C., as soon as possible to guarantee your spot on this once-in-a-lifetime adventure!

Fake news or savvy marketing: How old is Canadian Tire anyway?

Canadian Tire Corp. made a big splash in Canada last year celebrating its centennial year in business. The company was founded by John William Billes and Alfred Jackson Billes on Sept. 15, 1922, when the brothers pooled their savings and bought Hamilton Tire and Garage Ltd., an east end Toronto auto shop, for $1,800.

But obsessive industry-watchers like Hardlines (Editor: Don’t we have anything better to do?) will note that the first Canadian Tire store, named as such, didn’t open until the following year, 1923, at Yonge and Gould in downtown Toronto.

What, then, to make of Canadian Tire’s 1953 Spring and Summer Catalogue, published at this time of year, 70 years ago? Such historic catalogues are framed and displayed in many Canadian Tire stores across Canada. At the bottom of this one (pictured), the Tire implied that it had been in business a decade longer than it actually had. The banner at the bottom reads: “40th Year of Service: 1913-1953.” But in 1913, A.J. was just 11 years old and his elder brother was only 16. In 1913, they were still nine years from their historic purchase of their first auto shop.

If you think you know the answer to this apparent trickery on dates—probably the work of A.J., who was one of the savviest marketers in Canadian retail history—send an email to steve@hardlines.ca and we will publish the best answer next week! (Clue: It has to do with the car in the foreground, not “fake news.”—Editor)

Spectrum Brands Holdings has agreed to a stipulation with the U.S. Department of Justice to settle the DOJ’s challenge of Assa Abloy’s acquisition of the company’s Hardware and Home Improvement segment. The DOJ had sued to block the sale, saying it would consolidate the door hardware market unfavourably.

Spectrum’s roster includes Remington, George Foreman, Russell Hobbs (formerly Salton), and Black+Decker home appliances. But it’s HHI family of products is more hardware directed and includes Kwikset, Baldwin, National Hardware, and Pfister.

Spectrum had acquired these hardware, plumbing, and lock lines in 2012 from Stanley Black & Decker. With Russell Hobbs, Spectrum now had the Black & Decker licensing for small appliances, though not for its power tools.

Fast forward now almost a decade to September 8, 2021. That’s when Spectrum Brands announced its intention to sell the HHI business to Assa Abloy in a deal worth $4.3 billion. But one year later, on September 15, 2022, the DOJ filed its suit. The next move was Assa Abloy’s: to satisfy the DOJ, it agreed to sell off some of its businesses. The Emtek and the Smart Residential Business in the U.S. and Canada will be hived off to Fortune Brands, which is already home to brands like Moen and MasterLock.

These moves pave the way for Spectrum Brands to complete the sale of HHI to Assa Abloy. The deal is expected to close by June 30.

Spectrum had been paring down before this deal. In early 2018, it sold off its Rayovac battery division to another competitor, Energizer. Before the end of that year, Spectrum then sold off its global auto care division, which features brands such as Armor All and STP, to Energizer as well.

DID YOU KNOW…?

… that the latest episode of the Hardlines podcast series, What’s In Store, is now online? In this instalment, we talk to Taiga Building Products CEO Russ Permann. Topics covered include how Taiga responded to the extraordinary supply-chain pressures brought on by the pandemic and how commodity pricing is evolving as we enter the new normal. Sign up now for free and get updates about our latest podcasts in your inbox!

RETAILER NEWS

As reported last week, Canadian Tire will take over the leases of 10 Bed, Bath & Beyond locations. Meanwhile, at least 21 more locations (Editor: check out our special report in next week’s Hardlines to see the actual number!) of the bankrupt bed and bath retailer are also being acquired, this time by Doug Putman, owner of Toys “R” Us, Sunrise Records, HMV UK, and other chains. Putman intends to launch a new brand: rooms + spaces. It will be led by Greg Dyer, former GM for Bed, Bath & Beyond.

On May 12, the RONA Foundation celebrated its 25th anniversary. The organization, which oversees all the philanthropic activities of RONA inc., has chosen to redefine its mission. In addition, the organization has launched “Build from the Heart,” a new community initiative that will help eight non-profit organizations across the country.

Canadian Tire Corp. reported a drop in profits and sales during its first quarter, which saw a fire hit a Greater Toronto distribution centre. Net income for the quarter fell to $7.8 million from $182.1 million a year earlier. Revenues of $3.71 billion were down from $3.84 billion. Comp sales declined by 4.8 percent at Canadian Tire stores but grew 4.8 percent at the Mark’s banner and 3.7 percent at SportChek.

Bernard Hamel, owner of Roger Grenier Inc., held grand openings last week for his two stores in Quebec, Warwick Home Hardware Building Centre and Laurier-Station Home Hardware. The Warwick store has over 5,000 square feet of retail space and an additional 1,000 square feet of warehouse, under store manager Alain Corriveau. Laurier-Station Home Hardware boasts 7,000 square feet of retail and 1,000 square feet of warehouse, under store manager Jessica Pelletier.

SUPPLIER NEWS

Taiga Building Products reported Q1 net sales of $408.5 million, down from $612.7 million a year earlier. The 33 percent decline was attributed to lower selling prices for commodities. Net earnings fell to $13.5 million from $39.5 million, primarily due to decreased gross margin.

Trusscore, the vendor of wall and ceiling products, is sponsoring two scholarships at Conestoga College in Cambridge, Ont., worth a total of $2,500 per academic year. The Trusscore-Conestoga partnership is designed to promote and support local skilled trades training and drive the creation of more opportunities in the trades.

“Let’s Go Build” is a recruitment campaign for dealers who are members of the Western Retail Lumber Association. The WRLA’s campaign aims to increase awareness of the opportunities and benefits of a career in the home improvement industry among both traditional and non-traditional audiences. The Let’s Go Build website bridges the gap between employers and employees with a “Build Your Career” page that will list job openings for WRLA’s 1,100-plus members.

The Retail Council of Canada will hold its flagship event, RCCStore23, on May 30 and 31 at the Toronto Congress Centre, near Pearson International Airport. Speakers include Retail Prophet founder Doug Stephens, Holt Renfrew CEO Sebastian Picardo, and Danyal Syed Ali, head of consumer and customer insights at IKEA Canada. Check out the complete agenda here or click here to buy tickets.

ECONOMIC INDICATORS

The value of building permits advanced 11.3 percent in March to $11.8 billion, led by a 32 percent surge in the non-residential sector. Residential permits declined by 0.9 percent to $6.6 billion, with permits for 21,400 new dwellings issued during March. Strong gains in British Columbia and the Atlantic provinces were offset by decreases in Ontario and Saskatchewan. (StatCan)

OVERHEARD…

“To celebrate the foundation’s quarter-century, we have adopted a new mission that is fully aligned with RONA inc.’s activities and that will engage our employees, suppliers, affiliated dealers, and customers.”

—Sébastien Lamoureux, senior vice-president, RONA Affiliates, Wholesale, and Public Affairs at RONA inc. and chair of the board of the RONA Foundation.

Home improvement distribution needs to step up its technology game, says Russ Permann, CEO of Taiga Building Products. In the latest episode of Hardlines’ What’s In Store podcast series, he warns that big global players could decide to invest in Canada, disrupting the market drastically.

Permann says these “disruptors” have deep pockets and the latest technology, which they could use to intervene in building products distribution in Canada. That is, unless the players here embrace tech more fully.

“I look at other supply chains—and other industries—and I see that there’s a lot of room for us to improve as a business,” Permann says. “We have a lot of catching up to do. And you look at building materials: there’s an enormous addressable market around the world, but in North America in particular. There’s a lot of material flowing, [yet] there is a sizeable lack of transparency in our supply chain. If we don’t, as an industry, work to address this gap, there will be others attracted to this market, due to its sheer size.

“And they’ll focus on disrupting the business as it looks today.”

While no one knows the future, Permann admits, it hasn’t escaped his attention that there are parties “that can raise a lot of interested capital” if they wanted to seize a large part of the building materials distribution business in our country and south of the border.

“Outsiders are watching and they’re willing to take a risk to disrupt this business, just because of its sheer size. And the fact that you can see that it’s an industry that hasn’t spent a lot of time focusing on productivity improvements and efficiencies; we still get materials to market in largely the same way. We still build things in largely the same way.”

In this latest Hardlines podcast, Permann says that Taiga has been making significant investments in technology in recent years. It’s invested in its warehouse management systems, starting in 2015, and rolled out tech programs throughout its operations consistently over the ensuing years. “It took us a while, but what it’s done for us is make us much more internally transparent, accurate in our work… and we’ve made enormous progress.”

(You can listen to our complete conversation with Russ Permann in the latest episode of the What’s In Store podcast series! Like all our podcasts, it’s free, so sign up here!)

Retail innovators will share their stories—and vision—at Hardlines Conference

The theory of retail can be complicated, evasive, and elusive. The practice of retail is all that, plus lots of hard work, luck—good and bad—and big heartedness. Three speakers at this year’s Hardlines Conference embrace and embody all those traits. And they’ll share their stories and insights in Whistler, B.C., Oct. 17 and 18.

Geneviève Gagnon (pictured above, right) is the head of three businesses in Quebec. She is CEO of a chain of building centres called Gagnon La Grande Quincaillerie. She also operates a wholesale business, Évolution Distribution. Finally, she runs a truss and wall panel manufacturing division called Évolution Structures.

Gagnon is part of an illustrious hardware family business that she’s been involved in since her childhood. Her father, Yves Gagnon, was the president of BMR Group for many years. As the third generation of her family, Geneviève has been responsible for many big changes to update the business.

On the personal front, Geneviève is deeply involved in her community, contributing to causes including child cancer and palliative care homes. She also manages a family, as the mother of three children.

Move with us now to central British Columbia, to the small community of Mackenzie, a remote town with a population just 3,800 people. There, Marilyne and Sylvain Laferriere (pictured above, left) own and operate Ace Victory Building Centre. We invited the Laferrieres to share their story at our conference, including their wins and their challenges. They were keen to take the podium. But, warned Sylvain, “It won’t all be good news.”

In 2005, motivated by their frustration with a lack of products and services in the area, Sylvain and Marilyne purchased an existing business in town. They renovated the store, added product lines, and Victory Building Centre Ace was born.

Local engagement is essential for the Laferrieres, who love their town. It’s also an important aspect of their business model. These 2019 Outstanding Retailer Award winners will share the ups and downs of delivering on that model during the challenges of staff shortages, combined with rising insurance rates, wages, fuel, and transportation costs.

These are just a few of the amazing retail leaders who will be featured at the 27th annual Hardlines Conference. For our complete lineup of presenters, click here.

(The 27th Annual Hardlines Conference will be held at the Fairmont Chateau Whistler resort Oct. 17 and 18, 2023. As a Faithful Hardlines Member-Subscriber, you can use the code HARDLINES23 to get 20 percent off registration! Register here today!)

WRLA launches giant ad campaign to attract workers to the industry

The number-one topic among dealers and suppliers country-wide is labour and how tough it is to find people. That problem is being acutely felt in western Canada, where the Western Retail Lumber Association has found it’s a persistent problem.

The search for good talent is made even more difficult by the low profile the home improvement industry has with potential new hires. Because the opportunities are not widely known, WRLA is launching a giant ad campaign to promote awareness of the industry and the potential it has for new recruits.

Called “Let’s Go Build,” the campaign will highlight the LBM industry to all of western Canada, using print, digital, and social media. The message of the ads seeks to connect people who are looking for their next career move with the businesses in this industry.

“For years we have talked about how rewarding it is to work in the LBM industry and have often commented on how this may be one of the best kept secrets, which needs to change,” proclaims a message on the WRLA website. “This is where Let’s Go Build comes in. Let’s Go Build is a dedicated campaign designed to raise awareness of our industry and share the incredible diversity of available career options.”

The launch date is May 10. On the same day, the association is hosting an information webinar to outline how its members can participate in the ad program. (Members can join the webinar by clicking here.)

Quebec industry group AQMAT welcomed more than 150 participants in late April to its 2023 Decision Makers Conference. It was held at the Centre de congrès de St-Hyacinthe under the theme of “Finding ways to reduce our uncertainties.”

Hosted by AQMAT CEO Richard Darveau, the event presented the results of a survey of dealers and consumers on how hardware stores can best meet their communities’ needs in a time of staffing crunches and unpredictable costs. Both groups of respondents agreed in preferring to reduce store hours, such as by returning to Sunday closures, rather than sacrificing the availability of employee expertise.

In presenting the results, Stéphane Gendron, vice-president at market research firm CROP, stressed that hardware stores join computer stores at the top of the list of retail sectors in which customers rank knowledgeable staff as a top priority.

Gendron also pointed to a disparity in the perception of customers, most of whom see themselves as able to browse a hardware store autonomously, and dealers, who estimate that a majority of shoppers require assistance. “That’s good news: if we concentrate on the consumer [who needs help], we don’t waste the employee’s efforts.”

The audience was also treated to a panel discussion about a new service Périscope, a data-driven platform AQMAT is developing to help to dealers, buying groups, distributors, and manufacturers to navigate supply-chain and hiring decisions.

Samuel Nadeau, financial director at Couture TIMBER MART, represented the dealer’s perspective. Mélanie Belley, sales director at CanWel, spoke to the manufacturing and distribution side, while Évolution Distribution’s Martin Ménard addressed the concerns of buying groups.

Following the panel, conference guests gave collaborative feedback into the design of the platform’s dashboard. Among the themes emerging from the discussion were the need for training in the use and interpretation of Périscope data. Materials prices and construction starts were ranked as the most critical indicators users would need to consult.

Before departing at day’s end, delegates socialized over mocktails while a Tarot reader was on hand to entertain the delegates.

AQMAT will next gather its members on Nov. 11, 2023 at its 11th Recognition Gala, once again being held at Montreal’s historic Fairmont Queen Elizabeth Hotel.

Patrick Fedor has joined Vicwest Building Products as VP, commercial. Fedor has 20 years of experience as a professional engineer and senior sales leader in the building industry. In his new role, he will oversee and manage company-wide sales and business development. In addition, he will coordinate and lead the technical services group with a key focus on compliance, sustainability, and new product development.

DID YOU KNOW…?

… that sharing this copy of Hardlines with others violates our Fair Play Policy? That’s right, we work hard to protect our copyright and ask that you, our Faithful Readers, respect that. We have great, affordable ways to add more people at your company to your existing subscription for only a few dollars per year. Our Team at the Hardlines World Headquarters is dedicated to bringing you the news that matters, so contact Jillian to add people to your company’s subscription.

RETAILER NEWS

Canadian Tire Corp. has made a deal to acquire the real estate leases of 10 former Bed, Bath & Beyond locations for $1.6 million. CTC will turn six of the sites into Mark’s stores. These will be relocations of existing Mark’s stores in Grande Prairie, Medicine Hat, Red Deer, and Strathcona County, Alta.; Langley, B.C.; and Oakville, Ont. CTC says the new sites represent larger, more convenient locations. The remaining sites will become home to four new Pro Hockey Life stores, a brand that Canadian Tire purchased in 2013. This move will bring the Pro Hockey Life store count up to 20. The 10 leases represent more than 242,000 square feet of combined retail space. Bed, Bath & Beyond declared bankruptcy and closed the last of its 54 stores in Canada.

Leis Lumber Co. Ltd. in Goderich, Ont., is joining the BMR Group family, effective June 10. A family business for almost 20 years, it will operate under the BMR banner with store redevelopment slated for completion by the end of the summer. Leis Lumber boasts a 26,000-square-foot floor space, a large lumber yard, and a fleet of 12 trucks servicing an area spanning three counties.

GMS Inc., the specialty building products distributor and parent company to GMS Canada, has expanded its presence on Vancouver Island with a new acquisition. Jawl Lumber Corp., which operates under the Home Lumber and Building Supplies brand, has one location in Victoria. Founded in 1960 by the Jawl family, it sells lumber, engineered wood, doors and framing packages, siding, and other related building materials. One month earlier, GMS completed the acquisition of Blair Building Materials in Maple, Ont.

W.W. Grainger reported Q1 sales of $4.1 billion, up 12.2 percent from $3.6 billion a year earlier. Diluted earnings of $9.61 per share represented a 36 percent increase from the comparable period of 2022.

IKEA Canada is expanding its electric vehicle charging network in Central Canada. The retailer added 25 EV charging stations at five store locations in Ontario and Quebec. With $300,000 in funding from Natural Resources Canada’s Zero Emissions Vehicle Infrastructure Program (ZEVIP), plus more than $305,000 of its own funds, IKEA installed the stations at stores in Montreal, Boucherville, Quebec City, and Ottawa, as well as at its distribution centre in Beauharnois, Que. IKEA now has EV charging stations at 14 stores across Canada.

AD says member sales in Q1 rose by six percent to $18.3 billion, setting a new record for the quarter. Purchases by member companies from AD suppliers reached $4.63 billion. Net distributions to members grew 11 percent in the quarter to $386.3 million. Same-store member sales increased by 12 percent.

Walmart Canada officially cut the ribbon on its new distribution centre in Moncton, N.B., last week. The facility is the first DC for Walmart in Atlantic Canada. It measures 223,000 square feet and will employ 130 people.

SUPPLIER NEWS

CGC Inc. has announced it will relaunch a gypsum quarry in Little Narrows, N.S. The $104 million investment will allow the quarry to produce up to 2 million tonnes of raw gypsum material per year. “This investment will cement our long-term commitment to the Canadian market and our dedication to providing the best experience for our customers across North America,” said Chris Griffin, CEO of parent company USG Corp. The company has pledged to respect Mi’kmaq treaty rights and share the economic benefits of the re-launch.

NOTED

Dave Campbell, who steered the Ontario Lumber and Building Materials Association as its president for the past 21 years, was honoured last week with a retirement party at the Waterside Inn in Port Credit, Ont. The event was organized by Campbell’s LBMAO colleague Joanne Moquin and emceed by his successor, current association president Trevor Small. Guests included fellow association leaders: Thomas Foreman from the BSIA of British Columbia and Denis Melanson from the ABSDA in Atlantic Canada. Attendees included LBMAO board members past and present, including current chair Rebecca Gravelle of Renfrew Castle in Renfrew, Ont.

OVERHEARD…

“Since entering into this post I’ve met with several actors in the sector. You will always find in me an ally for putting in place the necessary solutions [to overcome the challenges facing the industry].”
—France-Élaine Duranceau, minister responsible for housing in Quebec’s ministry of municipal affairs and housing, speaking at Quebec industry association AQMAT’s recent 2023 Decision Makers Conference.

Each year the Hardlines Conference is marked by a wide array of talented speakers from both within and beyond the retail home improvement industry. The 2023 roster will be no different, including retail executives from two of the country’s top banners.

Cody Smith (pictured left) is director of Home & Building Solutions, the hardware and LBM division of Federated Co-operatives Ltd. Since joining FCL in 2000, Smith has held various positions in Home & Building Solutions and was promoted to director in 2018. Under his leadership, the department provides strategic partnership and services to over 90 Co-op Home Centres across western Canada. These stores collectively represent more than half a billion dollars in retail sales, making FCL one of the retail giants of western Canada.

Another important retail network will be represented on the Hardlines stage during this year’s conference, as well. Jean-Sébastien Lamoureux is senior vice-president, RONA affiliates, wholesale, and public affairs. He joined Lowe’s Canada, now RONA inc., in 2017 as VP communications and public affairs. He was promoted to SVP, public affairs, asset protection, and sustainable development in 2018, and then to his current role in 2022. Prior to joining RONA, he was a VP at National Public Relations, one of Canada’s leading public relations agencies.

RONA inc. consists of more than 440 stores nationwide, including 211 independently owned, or affiliate, dealer stores. Lamoureux oversees those affiliate stores. Together, they represent more than $2 billion in retail sales.

Under new ownership, the RONA business in Canada is refocusing on winding down the Lowe’s banner in this country and getting behind the RONA affiliate dealer network. Lamoureux will share the latest on where this retail giant is headed.

These are just two of the retail leaders who will be featured at the 27th annual Hardlines Conference. For our complete lineup of presenters, click here.

(The 27th Annual Hardlines Conference will be held at the Fairmont Chateau Whistler resort Oct. 17 and 18, 2023. As a Faithful Hardlines Member-Subscriber, you can use the code HARDLINES23 to get 20 percent off registration! Register here!)

Has the flow of building materials finally resumed its pre-Covid status? Is the broken supply chain fixed at last?

“Yes, I would say that most of the supply chain issues are behind us now,” said Russ Permann, president and CEO of Taiga Building Products, Burnaby, B.C. “We’re not having trouble accessing materials and getting things where they need to be.”

“Sure, fill rates are back up to normal,” agreed Mary Lohmus, executive vice president, Ontario and western Canada, for Goodfellow Inc., the national distributor in Delson, Que. “There are no real supply shortages anymore on our products.”

“The new normal? Yes, I would say,” concurs Mike Schneider, vice-president of business development for Woodstock, Ont.-based Gillfor Distribution.

But those optimistic forecasts are based on the question of whether the shortages of building materials—putting dealers “on allocation”—are behind us. When it comes to pricing—and the economy—the crystal ball gets a lot murkier, these executives warn.

“I think that some of the inflationary pressures we felt through the pandemic are easing on a number of products,” Taiga’s Permann says. “But I think we’d be naïve to believe that they will move back to their pre-pandemic costs in many cases. I’m not convinced that all of the increases that we experienced over the pandemic will necessarily be erased. Some of them will be, no doubt. But I don’t think in their entirety they will.”

But Canada’s building materials industry does not exist in a vacuum.

“It’s also about the world context,” points out Marc Séguin, president of CanWel Building Materials Group in Vancouver. “It’s not strictly North America. There could be something catastrophic happening overseas.”

Séguin believes that the economy of this industry is still motoring on, based on projects that were started during the pandemic. But he warns that the latest data indicate housing starts are coming down and the resale market has slowed, which affects reno spending.

During the height of the pandemic, all of the LBM distributors overcame tremendous obstacles—as did their retail customers. As they were forced to figure out new ways of doing things, they were able to ride out the product shortages while the supply chain regained stability.

RenoRun, the Montreal-based contractor delivery service that applied for and was granted creditor protection in Quebec on March 28, has been given an extension by the province’s Superior Court as it seeks a buyer or investor. The company says there are a number of potential buyers that have shown interest.

RenoRun became a thriving online business after breaking out of its Montreal base in 2018 to become a significant option for contractors in Toronto and Austin, Tex., its test market in the U.S. The firm, which provides Instacart-style delivery for construction materials, received a US$142 million investment last year led by Tiger Global Management. Since then, ballooning interest rates and disagreements with potential investors have landed it in financial difficulty.

Court documents indicate RenoRun owes about $55 million. However, it also has a number of companies that are interested in it, including several that have signed non-disclosure agreements to have access to its financials. Its last-mile delivery service would make it a good fit for a major home improvement retailer like Home Hardware or RONA inc.

Meanwhile, RenoRun is going through some internal changes, as evinced by the departure of its top merchant, Igor Halencak. He spent the past year at RenoRun, starting out in a consulting role and then moving up VP merchandising. But he has now joined Princess Auto as vice-president of merchandising (see People on the Move in this issue—Editor).

A new survey of retail dealers by the Quebec industry association AQMAT has revealed that attitudes about customers may differ—including from the customers themselves. The survey was shared at the association’s Congrès des décideurs, a conference held last week in St-Hyacinthe, Que.

For example, while 67 percent of customers surveyed said they can find their way around a hardware store without help, dealers believe that 63 percent of their customers are typically looking for assistance. However, 42 percent of dealers and 46 percent of customers agreed that customers expect a high level of customer service in these types of stores. And the dealers themselves felt those customers want more engagement from staff than those staff can reasonably provide. Nor is this kind of service expected or given in other retail settings such as grocery or convenience.

AQMAT is using these findings to push for a change in the number of hours hardware and home improvement stores should be expected to stay open. Given the pressure on staff to provide the kind of detailed advice and product knowledge that typifies their role, these workers deserve and need more time off, says AQMAT president and CEO Richard Darveau.

And even though more and more hardware and building products are being purchased online, customers still seek out the advice of workers in home improvement stores. The survey bore this out: only seven percent of customers surveyed buy hardware or building materials online, and even then, only occasionally. This approach to purchasing only puts more pressure on store staff, a situation further exacerbated by the difficulty nowadays of finding suitable retail help, resulting in poor service, long lines, and disgruntled customers.

To reinforce the effort to lessen the stress on dealers, the survey asked homeowners whether they would prefer a hardware store with reduced hours or limited access to qualified staff. Homeowners voted 61 percent in favour of the former option.

Almost two-thirds of dealers believed that closing on Sundays would not negatively impact their customers, with 68 percent of homeowners agreeing. However, the idea of closing on a weekday was more concerning to dealers, 87 percent of whom disagreed with this option, versus only one-third of homeowners who opposed the idea of a weekday closing.

Acutely aware of the labour shortages facing its members, AQMAT is currently in discussions with its members make its intentions known after further discussion. One thing is sure, says Darveau: the scarcity of labour affects the customer experience and some kind of action will have to be taken.

Igor Halencak has joined Princess Auto as vice-president of merchandising. Halencak is well known for his time at Lowe’s Canada, which he joined in 2013 after exiting Sears Canada. He moved through a variety of roles there before being appointed EVP of merchandising and marketing during his last year and a half at Lowe’s Canada. Most recently, Halencak spent the past year at RenoRun, where he started out in a consulting role and then became VP merchandising. RenoRun has since fallen into bankruptcy protection. Halencak has confirmed that he will relocate to Princess Auto’s head office city of Winnipeg.

Tom Newton has founded Trillium Executive Coaching. He’s held executive positions in sales, marketing, and general management with companies such as Deft, M-D Building Products, and ODL Canada. But now, he’s using his experience to provide leadership coaching to emerging, mid-level, and senior leaders, as well as teams. Newton is accredited as a Professional Certified Coach and holds graduate certificates in Executive Coaching and Advanced Coaching Practices from Royal Roads University. (For more information, check out his website or email Newton directly.)

Greg Hicks, president and CEO of Canadian Tire Corp. is the winner of the Retail Council of Canada’s Distinguished Canadian Retailer of the Year. The RCC said the award goes annually to a retail leader who “has demonstrated outstanding business success, innovation, community commitment, and exceptional leadership within their corporation, the retail industry in Canada, and the community at large.”

MSL has appointed Kevin Good to a newly created territorial manager position, with responsibility for British Columbia and Manitoba. Good brings 20 years of experience in general renovations and soundproofing to the role. Garry Slezak will continue to cover Alberta and Saskatchewan. In addition, Alessia Floria has joined MSL’s marketing department as a digital marketing specialist.

DID YOU KNOW…?

… that The 2023 Hardlines Conference will take place Oct. 17 and 18 at the Fairmont Chateau Whistler Resort in Whistler, B.C.? The two-day program includes speakers from leading home improvement organizations such as RONA, Home Depot, Taiga Building Products, Federated Co-op, and Ace Canada. Hardlines subscribers can take advantage of a 20 percent discount on registration, while special pricing is available to dealers.

RETAILER NEWS

Paul Sharpe, owner of the RONA store in Guelph, Ont., has acquired another location. He’s taken over BFD RONA Building Centre in nearby Kitchener, Ont. Major renovations have already been completed, including a new pro desk and a lumber yard redesign.

Target stores in the U.S. have upped their garden centre game, with a new up-market line of plastic plants. The retailer has developed the line with “plant stylist” and author Hilton Carter, who has worked with Lowe’s before.

The Bay opened its 25th and final Zellers location last week. This one is in the Hudson’s Bay at Place Rosemère in Quebec. The retailer promises that customers can expect a “playful shopping experience packed full of low prices” with “a core focus on design and value—and a hint of the nostalgia” associated with the venerable Zellers brand.

A report from the Information and Privacy Commissioner for British Columbia says Canadian Tire broke privacy laws by deploying facial recognition technology (FRT) in the province’s stores. Canadian Tire has now removed the facial ID devices, which the company says were used for loss prevention to detect the presence of “persons of interest.” The commission investigated four Canadian Tire stores over three years.

SUPPLIER NEWS

3M Co. has announced it is slashing about 6,000 positions worldwide at a time when discretionary spending is down. The conglomerate, which manufactures power tools and personal protective equipment in addition to the Scotch Tape and Post-It Notes brands, employed around 92,000 people at the end of the last year.

Faced with “challenging demand,” West Fraser Timber Co. saw its first-quarter sales inch up to $1.627 billion from $1.615 billion in the fourth quarter of 2022. Earnings for the period dropped to $42 million from $94 million in Q4 2022. Seasonal effects, as well as higher mortgage rates that moderated U.S. new home construction, impacted West Fraser’s lumber and North America EWP [Engineered Wood Products] businesses.

ECONOMIC INDICATORS

Retail sales edged down by 0.2 percent to $66.3 billion in February. Sales decreased in six provinces, and in four of nine subsectors which represent 48 percent of retail trade. Leading the decline was a 5.0 percent drop in gasoline and fuel sales. Sales in LBM and garden categories posted a 0.2 percent uptick from January. (StatCan)

NOTED

According to a study by the Canadian Federation of Independent Business, labour shortages have pushed the average small business owner to a workweek equivalent of eight days, or up to 54 hours. “Owners have to work more hours, or they have to choose to have their employees work more hours,” said CFIB economist and co-author Laure-Anna Bomal.

Under new owners, RONA has begun actively communicating its intention to eventually eliminate the Lowe’s banner in Canada. Online ads have appeared nationally that are aimed at customers who shop Lowe’s. The ads tell those customers that Lowe’s Canada stores will convert to the RONA brand.

The headline to one of the online ads is, “Lowe’s knows warranties.” The text that follows reads: “And we know you care about those warranties. Heck, why wouldn’t you? They’re WARRANTIES after all. So, we want you to know that any and all warranties issued by Lowe’s will be honoured. Yes, even after we change our name to RONA.” Another web page assures customers that, “Lowe’s knows we owe everything to our customers. So we want you to know this: We got you.”

The ads link to a page on the Lowes.ca site outlining what customers can expect from the transition.

Lowe’s sold off its Canadian division earlier this year (the finalized deal was announced Feb. 3). The Lowe’s Canada business was acquired by a New York City-based private equity firm, Sycamore Partners. All of Lowe’s Canada’s retail brands, consisting of RONA, Lowe’s, Réno-Dépôt, and Dick’s Lumber, are now owned by Sycamore.

The banner conversion process involves keeping those Lowe’s customers loyal to RONA. As a result, the Lowe’s Canada site indicates that the RONA stores will continue to carry Lowe’s private-label brands, including Craftsman. In addition, the retailer intends to honour all Lowe’s Canada gift cards, service agreements, financing arrangements, and warranties.

The company also intends to continue to offer its VIPpro program, a loyalty platform for contractors and pros.

The messaging from RONA inc. about the conversion is meant to assure customers that they will continue to be well looked after. “The conversion of the Lowe’s stores will have no impact on you,” says the online messaging. “You can count on our 26,000 employees across Canada to be there for you as you have always been there for us. We thank you for your business, your trust, and your loyalty.”

The Hardlines Conference takes to the road starting in 2023 and our first destination will be Whistler, B.C. Our 27th annual conference will take place Oct. 17 and 18 at the Fairmont Chateau Whistler.

The Hardlines Conference is the only national event for the home improvement industry that is open to all banners and suppliers. We take great pride in being able to host top retailers and buying group executives from across the country, as well as leading wholesalers and manufacturers. And this year we are proud to work closely with the Building Supply Industry Association of British Columbia to provide a world-class event to match the world-class destination.

The association is celebrating its 85th anniversary this year, so involvement in the conference has even greater significance, says Thomas Foreman, president of the BSIA of B.C. The association’s birthday celebration will be an important part of the proceedings.

“With 85 years behind us, we are celebrating a very significant milestone,” says Foreman. “This is a once-in-a-lifetime opportunity to join the Hardlines Conference and a great lineup of inspiring, insightful speakers who will stretch your imagination. And it’s in our backyard—so take advantage of it!”

The BSIA’s birthday bash will be held during its annual social event and industry awards program, the Orion Awards. It will take place the day before the conference, Oct. 16, from 4 pm to 5 pm right at the event hotel, the Fairmont Chateau Whistler. All BSIA members have access to special pricing for the conference of almost one-third off regular registration. (Click here for more details or contact Michelle Porter at Hardlines.)

Foreman is working with his team to feature a trade show at the conference. The tabletop show will give supplier members of the BSIA the opportunity to present their products and services to industry leaders from across the country. So far, says Foreman, 12 exhibitors are confirmed, and he anticipates at least another 10 are already committed to participate.

Exhibiting companies must be registered delegates at the Hardlines Conference, but through their BSIA membership, they are eligible for the BSIA discount off the regular admission. (Click here to learn more about the BSIA and the tabletop show!)

The speaker line-up at the 27th Hardlines Conference includes executives from RONA, Federated Co-operatives Ltd., and Taiga Building Materials. In addition, our presenters include thought leaders and analysts from the North American Hardware & Paint Association and economics advisory firm Altus Group.

(The 27th Annual Hardlines Conference will be held at the Fairmont Chateau Whistler resort Oct. 17 and 18, 2023. As a Faithful Hardlines Member-Subscriber, you can use the code HARDLINES23 to get 20 percent off registration! Register here!)

Orgill’s family-owned status offers advantages to workers, says its senior HR exec

Laura Freeman is the executive vice-president of human resources and chief human resources officer at Orgill, Inc. She joined the company earlier this year and Hardlines had the chance to sit down and talk with her.

Before joining the giant Memphis-based hardware wholesaler, Freeman spent seven years heading up HR as chief people officer at Schnucks Markets, a family-run chain of supermarkets in the American Midwest.

Despite the differences in the two businesses, Freeman found some similarities that made the transition an easy one. One similarity between Orgill and her previous employer is the fact that Schnucks Markets is a privately held family-owned business, “and Orgill is the same. There’s some really great things about that—not being publicly traded—but more importantly, it’s the foundation that’s there.”

Her grocery gig was with a company that’s almost 90 years old, while Orgill is likewise venerable, having been founded more than 175 years ago, “and you don’t find companies like that very much, that are kept in the family.” Freeman says the values and culture of a family-based business is something “that really means a lot.”

She says the changes happening in the workforce during the pandemic had started well before the arrival of Covid. “Even pre-Covid we were seeing our workforce change. It did not all of a sudden started changing; it was just accelerated.”

With up to four generations working side by side, they all have different needs and goals. “From an HR perspective, you really have to think about that employee proposition across all different areas and then across all the different generations you have in your workforce today.”

(We have a more in-depth interview with Laura Freeman in the latest edition of our sister publication, Hardlines HR Advisor. This free monthly newsletter will help you manage the people side of your business more effectively. To subscribe at no charge, click here now!)

Loyalty means more than points, something smart retailers are figuring out

As retailers have become larger and more powerful, pursuing their own programs has also become an increasingly popular option. According to one loyalty program executive who asked not to be named, “They want to deal with their own databases, they want to be dealing with their own customers. They want to keep their information to themselves. I think it’s more sensitive now.”

The executive stresses that the heart of data collection is that it’s not personal. These platforms are not trying to get personal data on individuals so much as create a consumer profile they can cater to more effectively, she adds.

Ken Hughes sees elements like points programs as part of a larger vision of the future of retail that dealers would be wise not to overlook. Hughes is a consumer behaviouralist affiliated with University College Cork, Ireland. An internationally renowned speaker on retailing, Hughes believes that success in retail will always require retailers to understand their customers. But Hughes urges retailers to go beyond that thinking. “You have to get inside the head of today’s consumer.”

Through all that the digital, virtual world embodies, it will remain crucial to maintain the capacity for connecting with other people. For retailers, the idea of the “customer lifetime model” is still strictly transactional, which is no longer enough. The connection has to be deeper; it has to be real. “We need to get to that place with our customers. We need to give them some reason to connect with us as a brand,” says Hughes.

That’s where loyalty programs come in. Their real advantage lies in the data, something that smart retailers are identifying and counting on to drive awareness of who their customers are and what they want.

(This article is excerpted from a larger story that appears in the latest edition of our print publication, Hardlines Home Improvement Quarterly. HHIQ is mailed out to 11,000 dealers and store managers across the country. It’s a free publication for retailers. Click here for a free subscription or to update who should get it at your store!)

Martin Lecomte, BMR’s VP of corporate store operations and dealer service, has left the company. He had spent almost nine years there in various store operations roles at BMR, and served as far back as 2006 at BMR’s parent company, Sollio (then La Coop fédérée). According to a post on LinkedIn, Lecomte is “carrying out some personal projects in the coming months.” A BMR spokesperson says to watch for Lecomte to assume a new professional challenge within the BMR family.

BP Canada has promoted Yves St-Cyr to senior national director, national accounts. He remains primarily responsible for business development and maintenance of national accounts, as well as contributing to the development of sales for specialized distributors. St-Cyr joined BP in 2017 as national account manager after more than 10 years at Roxul.

George Weston Ltd. and Loblaw Cos. have announced the appointment of Per Bank as president and CEO of Loblaw. Bank will formally join the company by Q1 2024. He comes over from Salling Group A/S, a giant Danish grocery retailer with 1,700 supermarkets in three countries. The appointment anticipates the planned retirement of Robert Sawyer, Loblaw’s COO, at the end of this year. Sawyer is known in this industry for his stint as president and CEO of RONA inc. from 2013 to 2016. Before joining RONA, he had been COO at grocery retailer Metro inc. He replaced Robert Dutton, who had been at RONA for 35 years and built the company into a national player. Sawyer’s mandate was to slash costs, effectively readying the company for sale to Lowe’s Cos. That deal happened in May 2016.

DID YOU KNOW…?

… that the latest instalment of the Hardlines podcast series, What’s In Store, is now available? This episode features Joel Seibert, an owner and the business development manager at Calgary’s Mountain View Building Materials. Seibert talks to Hardlines about strategies for identifying different personalities on a sales team and rewarding them according to their distinctive needs (hint: communication and transparency are key). Sign up now for free and get updates about our latest podcasts right to your inbox!

RETAILER NEWS

Slack Lumber is the latest dealer to join the Sexton Group. The business is located in York, Ont., south of Hamilton. The owners are Mykel Spinks, Nicholas McCollum, and Jonathan Lowenberg.

Peavey Mart has renewed its partnership with prominent Canadian athlete Brooklyn McDougall. A decorated long-track speed skater, McDougall has represented Canada at numerous international competitions, setting new records. As part of the renewed partnership, McDougall will appear at various Peavey events, including store openings and community initiatives. She will also be featured in Peavey Mart marketing campaigns.

RONA has been named one of Canada’s Greenest Employers for a third consecutive year as part of Mediacorp’s Canada’s Top 100 Employers contest. “Creating a culture of sustainability that reaches all areas of the company is very important to us at RONA,” said Mélanie Lussier, director of external communications and sustainable development, in a release.

Walmart Canada Store 1033 in Edmundston, N.B., was recently named the retailer’s 2022 Store of the Year, beating out more than 400 stores across the country, the mass market retailer announced.

SUPPLIER NEWS

PPG’s Glidden paint will become Walmart’s primary paint brand in the U.S., in a multi-year agreement that expands the existing relationship between manufacturer and retailer. Starting this month, U.S. customers at more than 3,800 Walmart stores can choose from 25 premixed colours. At the same time, PPG is not neglecting its independent dealers in the U.S. From May 1, it is expanding its offering to independents. That includes the addition of Glidden Fundamentals exterior paint and a wider selection of ready-mixed paints for DIYers.

Last month, Loyalty Ventures Inc., the U.S. parent of Air Miles, filed for bankruptcy protection south of the border, while the same day its Canadian subsidiary sought bankruptcy protection under the Canadian Creditors Arrangement Act. Now, shares of Loyalty Ventures Inc. have reached penny stock status. They closed at $0.013 on the NASDAQ last week. A year ago, the shares traded at $16. Five years ago, their price was $28. BMO is trying to rescue the Air Miles program by buying it.

ECONOMIC INDICATORS

The annualized rate of housing starts fell by 11 percent in March to 213,865 units, compared to February’s 240,927 units. The rate of urban starts fell by 12 percent to 192,545 units, with single-detached urban starts down 16 percent. (CMHC)

Sales of existing Canadian homes rose by 1.4 percent in March compared to the previous month. That followed an identical increase in February, the first back-to-back monthly gains in more than a year. However, the actual number of transactions in March, not seasonally adjusted, came in 34.4 percent below a historically strong March 2022. (Canadian Real Estate Assoc.)

NOTED

The shuttering of the Sears chain is still reverberating on the landscape of Canada’s malls more than five years later, The Globe and Mail reports. At some locations, like Toronto’s Fairview Mall and McAllister Place in Saint John, major overhauls followed the banner’s exit. Kate Camenzuli, VP of retail at realty services firm CBRE, told the Globe that most of the former Sears properties remain dedicated to retail, but have been subdivided into smaller units, “allowing new product to come into the market.”

OVERHEARD…

“From an HR perspective, you really have to think about that employee proposition across all different areas and then across all the different generations you have in your workforce today.”
—Laura Freeman, executive vice-president of human resources and chief human resources officer at Orgill, Inc., in an exclusive interview that appears in full in the latest issue of our sister publication, Hardlines HR Advisor.

Cindy Jardim is The Home Depot Canada’s senior manager of trend and design. At a recent open house hosted by Home Depot Canada, she gave an overview of some of the trends in style, colours, and finishes that are driving the retailer’s assortments for this spring and summer.

A big part of the season’s offerings is lines of patio furniture and outdoor living products. The showcase presented a varied sampling of Home Depot Canada’s newest styles for outdoors. “At Home Depot, we are really stretching our look and feel of patio,” Jardim said.

Where the retailer used to focus on a more traditional look, it’s now getting more style minded. Products like pillows and cushions present “clean lines and colours that will stand the test of time.” And those prints and patterns are now being developed in-house, Jardim added. “It’s very on-trend—and affordable.”

By keeping styles more up to date, Home Depot’s merchants want to stay more “trend-right” while being compatible with the traditional looks that have been indicative of Home Depot in the past. The retailer can maintain a broad assortment that is appealing to a wide range of customers, “but curated and co-ordinated to work together so you will find something to suit your style.”

Another trend Jardim identified was for products that address smaller spaces. Recognizing the homes many Canadians find themselves in, whether co-owning or sharing, or living in condos, Home Depot is working to provide products to meet that demand. “Small spaces are really big for us,” Jardim said.

A recent open house hosted by The Home Depot Canada provided a showcase for product trends to watch for this spring and summer. The event was held in Toronto and attended by a group of merchants from Home Depot’s head office. Hardlines had the opportunity to be there.

Smart Home. Craig Bowler is the divisional product merchant for lighting, including Hubspace, Home Depot’s own lighting and smart home brand. Bowler says the Home Depot stores now carry 50 smart home products and another 50 will be added by year’s end. Those lines include everything from smart alarms, door locks and chimes, and security devices to lighting and light bulbs, and even ceiling fans.

Smart Home is finding its place outdoors more than ever this year, Bowler says. Products here include path lights, spotlights, and string lights. “It allows the customer to really personalize the space.”

The technology behind these products is advancing, making these smart devices easier than ever to install and use. “All our Hubspace products can be set up in 60 seconds or less.” The smart home technology also connects with other Home Depot private brands, including Hampton Bay, EcoSmart, and Defiance.

“Don’t be afraid of technology and smart home,” Bowler urges.

Outdoor living. Meredith Clayton (shown here) is the Home Depot merchant for patio as well as interconnected merchandise for online. This season, natural finishes are being mimicked with faux stone and wood lookalikes. Different furniture styles can be used in the same space, creating different “zones” in the yard. Clayton points out that Home Depot Canada has a new partnership with designer Brian Gluckstein.

Clayton expects that people will be watching their wallets this spring. The range of products in her category have been selected to satisfy that expected trend. Rather than investing in completely new patio sets, customers will mix and match new items with existing furniture and accessories.

“So add one piece—a chair or a pillow—with coordinating patterns. It’s for the customer who doesn’t want to go big and instead wants to mix it up.”

Not surprisingly, any products that can make Canadian climates more comfortable are gaining in popularity. Giant space heaters, like the gas-powered ones used in restaurant patios, have been downsized and made suitable for home use. “It’s on trend in outdoor heating, trying to extend the season a little more,” Clayton says.

Tools. Westley Cannata is Home Depot Canada’s senior merchant, tools. He said that the retailer has added a whopping 280 new power tools. Home Depot’s proprietary Ryobi brand, he says, represents a big, cohesive assortment using the same portable power system. “That’s the biggest power tool platform in Canada,” he says.

The new lines include a lithium battery charging system that uses USB ports. Cannata says the line landed at the end of 2022, with eight tools that use the USB cell battery. Products include a rotary tool, compact flashlight, and an LED flip light. The program will have 31 tools by the end of the year. The battery can even be used to charge a phone, says Cannata.

B&Q, the UK big box home improvement retailer, has published its second annual “Slice of Home Life” report, exploring the mindset of UK households. The report examines how people are living in and adapting their homes to cost-of-living increases and other challenges.

And a lot of it reflects consumer trends here in Canada.

The report identified four emerging trends: pets taking priority, the rise of the utility room, the death of the open floor plan, and accidental sustainability.

Among UK consumers who own pets, one in three admitted that their furry friends dominate their home, with 38 percent saying they have reorganized or restyled their homes to make room for the products needed for their pets. Almost two out of five have considered moving to a larger home to make more space for their pets.

The open concept floor plan is giving way to more privacy. More than half of homeowners surveyed indicated that they find the idea of temporary partitions very appealing. That could include the addition of doors to divide up their open plan living area to create more private zones, creating a more intimate living room atmosphere. Larger rooms, says the report, can be more difficult or expensive to heat, lack privacy and leak too much noise, or allow cooking odours to spread from the kitchen.

One trend is distinctly English but reflects a move to a more North American-style home trend. The report uncovered that the utility room is the new middle-class “must-have.” A utility room is considered a practical space that takes the washing machine out of the kitchen. It frees the kitchen up, while providing a space for pets’ beds and bowls, as well as coats and shoes. The utility room makes room for both a washer and a dryer, enabling homeowners to dry their clothes without hanging them all over the house.

The B&Q report also reveals the unlikely way households are becoming “accidentally” more sustainable. With energy bills rising, 89 percent said keeping costs of energy bills down is important to them, which has resulted in households making decisions that have a positive impact on energy use, for reasons aside from directly protecting the environment. Plugging drafts, insulating lofts, and turning down the heat at night are all moves that help the environment. But these decisions were often made for their impact on reducing energy bills rather than for the benefit of the environment.

The desire for a second bathroom is another trend identified in the report. With more adults living under one roof, the pressure on bathrooms has mounted. It’s exacerbated by the fact that people spend more time there, with more toiletries than ever before. As a result, 54 percent of consumers surveyed indicated they would like another bathroom.

Liohn Sherer has been promoted to the role of president of Ideal Security. He takes the helm of the third generation of this family business. Sherer joined the company in 2016 and was previously executive vice-president. Based in Montreal, Ideal Security was founded in 1956 by Jack Jospe, who was eventually succeeded by his son, Joe, who expanded the company’s range beyond storm and screen door hardware to categories ranging from specialty window hardware to home security systems.

Steve Conroy has joined Central Builders Supply in Courtenay, B.C., on Vancouver Island, as director of operations and merchandise. He was most recently at Slegg Building Materials in the role of director of merchandising and supply chain.

At Lowe’s Cos., Juliette Pryor has been appointed vice-president, chief legal officer, and corporate secretary, effective May 3. Pryor joins the company from Albertsons, where she served as executive vice-president, general counsel, and corporate secretary. Pryor succeeds Bill McCanless, who has served as Lowe’s executive vice-president, general counsel, and corporate secretary since 2015, and advised the company last year of his intention to retire at the end of May.

DID YOU KNOW…?

… that the latest edition of Hardlines Dealer News is out now? In this issue, we look at the challenge of finding contractors for installed sales and how one RONA affiliate expanded its store network. Hardlines Dealer News is monthly and it’s free: click here to subscribe now!

RETAILER NEWS

RONA has welcomed Vantage Building Supplies in Vegreville, Alta., and its owners, to the network of RONA affiliated dealers. The owners are investing more than $1 million to expand the existing 4,500-square-foot retail space in two phases, adding a total of 5,500 square feet. Vantage Builders was founded in 1975 and the Vantage Building Supplies store was added in 2005.

Senso Group Building Supplies Inc. is the newest member to join AD, the North American hardware buying group. Senso has joined AD’s Building Supplies – Canada division (formerly TORBSA). Senso has three divisions of its own: building supplies, construction equipment and rentals, and waste management. The building supplies business was established in 2011.

BuildDirect, the omnichannel building materials retailer, reported total revenue of $92.2 million for 2022, an increase of 1.6 percent year over year, largely driven by the revenue contribution from BuildDirect’s acquisition of Michigan-based flooring retailer Superb Flooring & Design at the end of 2021. Full-year 2022 revenue from pro customers reached $77 million, up 35 percent from 2021, driven by the company’s overall shift in strategy to focus on pro customers, plus the acquisition of Superb. The company says it will continue to look for acquisitions of other pro-focused retailers.

SUPPLIER NEWS

Richelieu Hardware has reported Q1 sales of $403 million, up $18.5 million, or 4.8 percent, from $384.5 million in the comparable period of 2022. The past year’s acquisitions contributed 3.0 percent to the growth in sales. Sales in Canada came to $230.9 million, up 0.7 percent from $229.4 million a year earlier. Net earnings fell 25.4 percent to $22.6 million.

A Winnipeg-based group of door and window manufacturers is seeking bids for its assets under the court-appointed monitorship of Deloitte Restructuring. The firms include Polar Window of Canada and Accurate Dorwin. In February, the Winnipeg Free Press reported that the six companies combined had unsecured debts totalling $9.5 million in addition to $13.5 million in secured debt. One supplier told the paper the business was “under-capitalized.”

Regal ideas collaborations took first place in four categories at the North American Deck and Railing Association’s 13th annual National Deck Competition held in Clearwater Beach, Fla., at the end of March. Regal’s awards included the prize for best overall project: a collaboration between Regal ideas and Neighbourhood Fence and Deck.

ODL Inc., a maker of door glass and insulated blinds based in Zeeland, Mich., is expanding into exterior doors with its acquisition of Tru Tech Doors in Woodbridge, Ont. Tru Tech is a steel and fiberglass door manufacturer founded by John Careri in 1998. Careri will join the ODL team as EVP and president of the Door Division.

ECONOMIC INDICATORS

Investment in building construction rose slightly by 1.0 percent to $20.6 billion in February. Residential construction spending increased by 1.1 percent to $15 billion. Single-family home investment, up 1.3 percent, contributed the most to the growth. In the non-residential sector, spending rose by 0.8 percent to $5.6 billion. (StatCan)

NOTED

A report from Rider Levett Bucknall gives a snapshot of how many cranes are operating in each major city in North America. With data current to mid-Q1 2023, the latest RLB quarterly cost report shows that cities seeing an increase in cranes include Denver, Honolulu, Las Vegas, Los Angeles, and Seattle. But in terms of sheer numbers, Toronto tops the list. Canada’s largest city has a whopping 238 active cranes. By comparison, the U.S. city with the most cranes is Seattle with 51, followed by Los Angeles with 47, and Denver with 36.