Operations at one of Canadian Tire’s largest DCs remain suspended, two weeks after a fire on March 15 damaged the facility on Goreway Drive in Brampton, Ont. All of the employees at the facility were safely evacuated, the company says. However, delayed shipments are occurring.

The 1.2 million-square-foot A.J. Billes Distribution Centre distributes goods nationally. The company said that the suspension of the facility’s operations will impact Canadian Tire’s first quarter results, due to be released on May 11.

“Priority inventory” is being transferred to other Canadian Tire distribution centres, the company says, and temporary distribution facilities are being prepared. The extent of the damage and the reopening time frame are still being assessed, it added.

The losses to the firm include damaged or destroyed inventory, building damage, and the costs of cleanup and repairs. However, Canadian Tire’s insurance company is involved. The company says it plans to reopen the facility in stages when repairs are complete.

According to Canadian Tire, the A.J. Billes Distribution Centre, which was built in 1991, can fill 200,000 cartons and 120 truckloads of product a day. In 2006, it and the company’s Calgary DC were sold to H&R Real Estate and leased back from that firm. That lease expires in 2027, according to information made public at the time of the lease-back.

Canadian Tire also has two other DCs in this area on the west side of the GTA. One of them is a state-of-the-art bulk facility measuring 1.4 million square feet in Bolton, Ont. (sometimes referred to as the Caledon DC). It is 20 kilometres northwest of the stricken A.J. Billes facility. The company also has a second DC in Brampton, 14 kilometres to the west of the closed DC, on Hurontario St. This DC was completed last year—and is also considered state-of-the-art. It measures 1.3 million square feet.

Why should hardware and home improvement dealers be interested in the latest opening by industrial plumbing and heating supplier Wolseley? Because it’s another example of how the lines between channels are getting blurred.

In recent years, Wolseley has updated its merchandising and its overall offering to contractors and trades. But its new outlet in Ajax, Ont., on the east side of the Greater Toronto Area, features a recent new addition to the Wolseley offering: “Studio,” a showroom that features higher-end fixtures and fittings.

The Wolseley Studio has a separate entrance and more upscale feel than the rest of the store. The expanded offering includes high-end faucets and lines of bath hooks and towel racks. There is also an in-house designer to help contractors offer suggestions for their end-user customers and to put together a full package for a project.

There are currently 200-plus Wolseley locations in Canada and only 26 of them have a Studio, but watch for more to come. “We have plans to open more showrooms across Canada in coming years in those markets where it makes sense,” says David Stern, Wolseley’s vice-president for eastern Canada.

The target customer, he adds, is the residential contractor, typically someone doing a reno versus building a new home. The first Studio showrooms appeared in western Canada, and the first one in Ontario was in an outlet in Hamilton. Another half a dozen stores that will open in coming years will have the showrooms, including, says Stern, two that are expected to open this year. “We see this as part of our sales proposition to our plumbing contractors.”

The pandemic has obviously created all kinds of disruptions in the retail home improvement industry. Groups have experienced ownership changes, executive shuffles, and even new distribution models, driving many dealers to re-examine their strategic alliances. But BMR Group says it has seen very little attrition during Covid—and even gained four dealer-members last year.

Two of those dealers were in BMR’s home province of Quebec, says Charles Grégoire-Béliveau, vice-president of merchandising, where the banner has its strongest presence. But the group continues to set its sights farther afield, especially in Ontario. While Grégoire-Béliveau can’t offer up details of deals in the works, he says BMR will definitely sign more dealers before the year is out.

“We’ve enjoyed stability during these constantly changing times,” he adds. But why are the dealers staying put? It’s all about how BMR connects with and communicates to its members, according to Grégoire-Béliveau. “I think it’s the way we address those dealers and work with them in the market. We include them.”

The dealers are part of much of what goes on at head office, including line reviews, he points out. “They are part of the category review process.” He cites as an example of this inclusion the fact that BMR merchants took 35 dealers to the National Hardware Show in Las Vegas back in January—the second year in a row the dealers accompanied his team to the show. There, those dealers provided input and guidance on the various new products on display. “We involve them in the decision-making and they feel involved in the process.”

The barriers between head office and the stores are eliminated in other ways as well. For example, dealers have access to the cell phone numbers of all the merchants and executives. “I think it’s very personal what we have here,” says Grégoire-Béliveau.

“For them to switch or move away from BMR, they would not find this kind of family relationship.”

The Canadian Home Products Trade Association (CHPTA) has been monitoring the grocery industry as that channel works toward establishing a business “code of conduct” between grocery retailers and their suppliers. Now the CHPTA wants to implement a similar initiative for the hardlines industry.

According to CHPTA president Sam Moncada, his association’s goal is to leverage the final version of the grocery industry agreement and introduce a similar code of conduct for hardware, housewares, and home improvement products. “We’ve been talking and collaborating with grocery producers as they’ve worked for years and years on this, and they have a draft that they’ve shared with us,” says Moncada.

The grocery industry is looking to have its code of conduct implemented by the end of 2023, according to federal agriculture minister Marie-Claude Bibeau. Though the grocery retailers have come to the table to work on this, delays have come from their inability to find a common ground, Moncada notes.

The need for such a code in the hardlines industry is underscored by the sheer size of retailers and their ability to dictate terms—often changing them after a deal has been signed. Moncada cites a recent mandate from one retailer that added an approximately one percent back-end charge.

Manufacturers understand that circumstances can change, says Moncada, but leaving the vendors out of the negotiations is counter-productive. “When a retailer arbitrarily changes the terms without consultation, it definitely hurts the manufacturers.”

The federal government received a draft of the grocery code last November, the result of more than a year of negotiations between industry groups representing farmers, food processors and suppliers, independent grocers, and national retail chains. They worked with a government-appointed mediator. Using the grocery initiative as a template, says Moncada, “we want to invite all the players in the hardware and home products categories to the table to talk.”

(The CHPTA will reach out to retailers to participate in developing a similar code of conduct for this industry. It will also be inviting individuals from its member companies to serve on an advisory committee to help with this process. If you would be interested in participating on the advisory committee, email Sam or call him at 416-282-0022, ext. 125.)

Regal ideas has named Derrick Czayka as its new territory manager for Alberta as well as the Kootenays, Cranbrook, Fernie, Creston, and Trout Lake. His CV includes management positions at InFarm and The Home Depot Canada. As a result of this appointment, Bob Lloyd will move into a new position in business development and special projects.

Brian Greig joins the Telesteps Ladders team as director of business development and national accounts. He holds diplomas in marketing from York University and Seneca College and was previously national sales manager for Liteline’s retail division.

DID YOU KNOW…?

… that the latest edition of Hardlines HR Advisor is now available? This publication provides case studies and meaningful tips for managing the people side of your business. In this latest issue, we examine the problem of employee “ghosting,” getting your team passionate about sales, and useful suggestions for preventing repetitive strain injuries. If you’re not already receiving this monthly publication, click here now to sign up for free!

RETAILER NEWS

Russ Jones and his family, owners of Coast Builders in the Sunshine Coast region of British Columbia, last week celebrated the opening of two new kitchen and appliance showrooms, located at their Sechelt and Madeira Park RONA stores. This new showroom concept, which is aimed at both pros and DIYers, is designed to support customers through their home or professional kitchen improvement projects, from design to installation. The stores’ showrooms feature kitchen products and appliances displayed in a boutique environment.

Nunavut Logistic Solutions Inc. has joined Sexton Group. The company will transport construction materials from Quebec to northern Canada to support projects ranging from commercial construction to affordable housing projects, in collaboration with Nunavut Logistics’ sister company NCC Development Ltd.

Canac, the independently owned home improvement giant in Quebec, has decided on its two new locations. Rivière-du-Loup, on the St. Lawrence River some 200 kilometres northeast of Montreal, will be the site of the 33rd Canac location. Construction will begin on access roads and services this year. Meanwhile, Sorel-Tracy, a city about 80 kilometres northeast of Montreal, will be the site of Canac’s 34th location. That store is expected to open in 2024.

RONA has launched its sixth annual fundraising campaign for Children’s Miracle Network and Opération Enfant Soleil, a cause which supports 14 children’s hospitals in Canada. Until April 28, all corporate Lowe’s, RONA, and Réno-Dépôt stores across the country, as well as 42 RONA affiliated dealers and six distribution centres, will join forces to raise funds in stores and online.

Montreal-based discount mass merchant Dollarama had a strong close to 2022, with fourth-quarter sales up by 20.3 percent to $1.47 billion. Comparable store sales grew 15.9 percent. For the year, Dollarama’s sales increased by 16.7 percent to $5.05 billion, with comp sales up 12.0 percent. In addition, the company opened 65 new stores during the year, bringing its total to 1,486.

SUPPLIER NEWS

RenoRun Inc. filed for creditor protection in Quebec on March 28 as it begins the process of finding a buyer or investor. 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. The company was started in Montreal in 2017 before expanding to Toronto and Austin, Texas, shortly thereafter.

ECONOMIC INDICATORS

Retail sales increased 1.4 percent to $66.4 billion in January. The increase was led by higher sales at motor vehicle and parts dealers, up 3.0 percent, and gasoline stations and fuel vendors, which rose by 2.9 percent. Sales in LBM and garden categories rose by 1.5 percent from December but remained 8.4 percent below January 2022 levels. (StatCan)

NOTED

The federal government unveiled its new budget last week, earmarking $20.9 billion over five years to “green” the economy. The bulk of those funds go to investment tax credits for clean energy. The document offers competition to incentives under the U.S. Inflation Reduction Act, which had the potential to attract investment away from Canada.

OVERHEARD…

‘‘It is truly an honour to help improve the health and quality of life of children across the country and to help hospitals provide advanced care. We are also proud to see the mobilization of our network’s employees, as well as the contribution of our customers at each campaign and the generosity of our suppliers who donate materials for the Maison Enfant Soleil.”
—Mélanie Lussier, director, external communications and sustainable development, at RONA inc., on the retailer’s initiatives over the past five years, which have raised a total of $4.7 million for children’s hospital foundations across Canada.

“We understand that circumstances can change, but there should be some consultation and some collaboration—and some negotiation.”
—Sam Moncada, president of the Canadian Home Products Trade Association, on his association’s efforts to implement a code of conduct for retailers in this sector.

Do you know a winning dealer? The Outstanding Retailer Awards is Canada’s only national industry awards program open to stores of any banner. Now dealers and their head offices are invited to send in their entries, which have a deadline of June 16.

“Winning an ORA is like winning an Oscar,” said 2022 winner Sophie Moisan, dealer-owner with Philippe Moisan of Jean Denis Home Hardware in St-Raymond, Que. “It’s a very big mark of recognition from our entire Canadian industry! There’s a huge feeling of pride from an entire community for having won this award—from our team, from our customers, our suppliers, our families, and ourselves.”

Awards are presented for Best Hardware Store, Best Building Supply, Best Contractor Specialist Store, Best Big Box, Young Retailer of the Year, and Best Community Leadership (Marc Robichaud Award).

“Please, please recognize that this is a big deal,” urges Alex Yakovyshenko, of Haney Building Supplies in British Columbia, who won the Best Young Retailer Award in 2017.

“This is a big deal for your brand; this is a big recognition industry-wide.” He underscores the pride he took in “hearing our community talk about how proud they were to have a local business recognized Canada-wide.”

"It’s been wonderful! It was good to be recognized,” said Todd Brinson, of Gander Bay Building Supplies, a Castle dealer in Newfoundland and Labrador. He, along with his wife, Deborah Brinson, were ORA winners in 2022. “And once you get that recognition, people begin to see what you’re doing. We started at this store with nothing—and all kinds of problems—and we made it work. After winning this award, we had people coming in and saying, ‘I saw your name in the news. What you have done is incredible.’”

Winners of the ORAs attend the Hardlines Conference as our guests. In addition to being honoured at the ORA Gala Dinner, they get to take full advantage of the jam-packed conference program. Winners also receive PR and marketing materials including a write-up in Hardlines Home Improvement Quarterly magazine.

Visit the ORA website for more information and to download the nomination form. (Oui, le formulaire est également disponible en français! – votre rédacteur fidèle). Head office staff may complete the nomination form on behalf of dealers. Entries are due by June 16. Winners will be notified by July 13. The awards will be presented during the Hardlines Conference in Whistler, B.C., Oct. 17 and 18, 2023.

New org structure at BMR gives buyers more autonomy and accountability

BMR Group has made some substantive changes to its organizational structure, including the departments of finance, operations, and supply chain. But for BMR members and their vendors, the changes may be most evident in the merchandising department.

“We have decided to reshape the way we operate in our different departments,” says Charles Grégoire-Béliveau (pictured), vice-president of merchandising at BMR. Each department represented a different silo, he says, “But we don’t feel that it was the right way to organize our teams.” So now they’re organized into work cells, or business units, to give buyers full autonomy within their categories. Each business unit now includes an assistant buyer, someone to do replenishment, and other team members who are attached to the category who can identify the status of each product and order within the supply chain.

The new structure also means more directors. Grégoire-Béliveau’s team now consists of seven merchandising directors overseeing seven business units. The personnel at two of the cells haven’t changed. Audrey Poirier-Lemay remains senior director of Agrizone and Jean Marc Prudhomme is vice-president of forest products. Both still report to Alexandre Lefebvre, BMR’s CEO.

• The new leads in other departments are:
• Benjamin Vanasse: senior director, merchandising – Materials
• Davina Hamel: director, merchandising – Seasonal
• Maxime Gladue: director, merchandising – Hardware & Tools
• Elaine Pellerin: director, merchandising – Flooring & Paint
• Annie Thomas: director, merchandising – Plumbing & Electricity

Each director has full responsibility for their cell. That gives them a sense of ownership that supports an entrepreneurial mindset, Grégoire-Béliveau adds.

If a dealer has a question about the status of a shipment, the answer will be found within the business unit, where there are now people tracking warehouse and distribution. “We feel that’s one way to be faster getting product to market and to help the dealers,” says Grégoire-Béliveau.

The new approach was inspired by retail companies in Europe, Grégoire-Béliveau told Hardlines, adding that BMR is the first in North America to adopt this approach. “The dealer does not have to wade through different departments to find out where their order is. We think it’s going to bring a lot of value to the dealers. We think it’s the right way to go.”  

Peavey banners get behind local ag-related community events

With its focus on the rural marketplace, Peavey Industries has made a lot of moves recently to support sports and activities within that demographic. That includes aligning its brand with one of western Canada’s largest agricultural events, even while it recognizes that its target market is expanding.

Peavey has signed a sponsorship agreement with the Royal Manitoba Winter Fair (horse event pictured), held in Brandon. Founded in 1906, the RMWF has been a go-to agricultural event in Manitoba for well over a century. Jest Sidloski, vice-president of marketing at Peavey Industries, calls the deal “an easy decision, and one that “creates links between the urban and the rural through education and awareness, entertainment, and community pride.” This year’s fair runs from March 27 to April 1.

Cutting across urban and rural markets is important to the company, as Peavey Mart stores continue to expand in cities and suburbs. ​Last week, Hardlines reported that Peavey has begun sponsoring professional late model stock car driver Junior Farrelly. Farrelly competes each season in the APC United Late Model Series on tracks across Ontario. The deal also involved Berne Workwear Canada.

But it’s not the only way the Peavey stores are promoting their brand to the farm and ag marketplace. Along with the MRWF, the retailer is sponsoring Crossfire Bullriding in the Prairies. Based in Eriksdale, Man., Crossfire operates events in rural Manitoba and Saskatchewan.

Sidloski said that this sponsorship “helps Peavey Industries to reach the rural audience in Manitoba and Saskatchewan through a unique and fun platform.”

Dealers that offer installed sales in their stores may find themselves competing with their big box neighbours for more than just sales. Finding available contractors in Canada is complicated by the fact that the two largest home improvement retail chains, RONA and Home Depot Canada, each has a robust installation services program that it markets aggressively.

“We are definitely not scaling back our installed sales programs, but rather are onboarding more installers in order to align with current market conditions,” says Patrice Prud’homme, director of RONA’s installation program. To attract pros to its already large network, RONA has implemented a new customer relations management system to better qualify homeowners and provide quality leads to pros. The retailer has also invested more than $2.4 million to redesign its stores’ signage to generate demand for installers.

This year, RONA will conduct its second annual National Installer Meeting for its entire network of RONA, Lowe’s, and Réno Dépôt stores. RONA has assigned territory managers to oversee its stores’ installation activities. And it organizes meetings and training for pros with key vendors.

Jamal Hamad (pictured), Home Depot Canada’s senior director of contractor services, notes that installation falls under a larger Home Services umbrella that encompasses equipment rental and “Local Pro” handyman services. “We’ve been spending a lot of time on improving the customer experience,” Hamad says about the retailer’s installed
sales, whose outreach with consumers has been expanded, because of Covid, by digital and online communications, especially for making appointments.

(This story is excerpted from a larger article that appears in the latest issue of our sister publication, Home Improvement Quarterly. HHIQ is mailed free-of-charge to 11,000 dealers and managers across the country and is $90 per year for suppliers. To get your own subscription, click here now.)

François Deschênes, president & CEO of Deschênes Group Inc., has been elected as a director on the board of AD. He leads Deschênes Group Inc., a Quebec-based distributor of plumbing and heating products. Deschênes joined the family business in 2000 and has also served as chairman of AD Plumbing & Heating. He is a member of Young Presidents’ Organization, the Cercle des présidents du Québec, and the board of directors of the Canadian Institute of Plumbing and Heating.

DID YOU KNOW…?

… that the latest edition of Hardlines HR Advisor went out last week? This monthly online publication provides case studies and meaningful tips for managing the people side of your business. In this issue, we look at the problem of employee “ghosting,” getting your team passionate about sales, and useful suggestions for preventing repetitive strain injuries. If you’re not already receiving this free monthly publication, click here now to sign up!

RETAILER NEWS

Ace Canada held its fifth annual Virtual Trade Show last week, from March 21-23, playing host to more than 140 vendors and 110 dealers. The virtual event allowed vendors to showcase their latest products, while dealers could share best practices and forge new partnerships within the industry. Peavey Industries, which holds the licence for Ace in Canada, will hold its annual in-person Trade Show & Buying Event for Ace dealers and Peavey Mart managers during the week of Sept. 24 in Red Deer, Alta.

Morin Supply, an Ottawa-area TIMBER MART dealer that specializes in gypsum, will add a second location this summer in Gatineau, Que. The new property will encompass 800 square feet of office space, a 42,000-square-foot yard, and 15,000 square feet of storage. Established in 1986, the business has evolved from a modest 4,800-square-foot shop to a 46,000-square-foot warehouse and 9,000-square-foot retail space, with plans for further expansion.

BeautiTone, the private label paint of Home Hardware Stores, has unveiled its 2023 Exterior Colour of the Year. Called “Western White,” it’s described as a “calming, pacific neutral that draws influence from the undertones of Canada’s western red cedars, lending it both a timeless and contemporary look.” The colour has been designed to interact unobtrusively with its surroundings as a holistic complement to outdoor elements such as natural wood, stonework, and landscapes.

The Ace Hardware store in St. Walburg, Sask., has a new owner. Kushal Parikh has taken over after making a deal with the former owners, who wanted to retire. Managed by Navneet Bansal, the 4,000-square-foot Ace Hardware St. Walburg will continue to sell a range of farming supplies, paint, hardware, housewares, electrical, plumbing, casual clothing, and workwear, as well as tools, automotive, seasonal, and hunting gear.

Zellers, the discount brand being revived in Hudson’s Bay stores, will mobilize on March 23. Zellers will open its first locations within Hudson’s Bay stores in Alberta and Ontario, along with its food trucks, ready to dish out nostalgic favourites from the original Zellers Family Restaurant: the Big Z Burger, Hot Chicken Sandwich, Grilled Cheese, Chicken Fingers, and Fries with Gravy.

Wolseley Canada is opening a new store, this time in Ajax, Ont. The company’s latest expansion will be a 21,000-square-foot store and showroom on Fairall Street that offers a full range of Wolseley Canada’s plumbing and HVAC products. The grand opening will be on March 28. Wolseley Canada is an industrial supplier of plumbing, heating, ventilation, air conditioning, refrigeration, waterworks, fire protection, and industrial products. Headquartered in Burlington, Ont., it now has more than 220 locations coast to coast.

Giant Tiger Stores is opening a new location in Montreal on April 1. The 18,000-square-foot store is located in the Côte-des-Neiges district and is the fifth location in Montreal.

ECONOMIC INDICATORS

Investment in building construction increased 1.5 percent to $20.4 billion in January. Residential construction was up 1.9 percent to $14.9 billion, after posting four consecutive monthly declines at the end of 2022. Single-family home investment was up 2.4 percent to $8 billion, with Ontario accounting for much of the gain on its largest increase since December 2021. The non-residential sector was up 0.5 percent to $5.6 billion. (StatCan)

The annualized rate of housing starts rose by 13 percent in February to 243,959 units. The monthly rate of total urban starts was up 16 percent, with 222,663 units recorded in February. Single-detached urban starts increased eight percent to 48,918 units. Rural starts for the month were estimated at an annualized pace of 21,296 units. (CMHC)

NOTED

AQMAT, the Quebec industry group, will hold its annual Congrès des décideurs (Decision-Makers’ Conference) on April 27 in Ste-Hyacinthe. This year’s theme is “Giving ourselves the means to reduce our uncertainties.” Speakers include Sean Bérubé, business owner and former hockey player in Ukraine, who has championed the inclusion of refugee children in Quebec’s pee-wee hockey tournament. Click here for more details and to order tickets.

OVERHEARD…

“We are thrilled to see such strong support from our dealers and vendors year after year. Their unwavering commitment and dedication to making these shows a success is a testament to the strong partnerships and collaborative spirit within the Ace Canada family.”
—Derek Smith, vice president of Ace Canada, on the involvement from delegates and exhibitors in the retailer’s latest virtual trade show.

Jeff Kinnaird, the Canadian who was the top merchant at The Home Depot in Atlanta, has left the company. He has been replaced by William “Billy” Bastek, who was promoted to the EVP merchandising position, effective immediately.

Formerly the president of The Home Depot Canada, Kinnaird moved to Atlanta in October 2020 to head up merchandising at the retailer’s head office. Before that, he spent almost five years running the Canadian division of the company. Kinnaird is well known for his modest beginnings at the company: he got his start working in the yard at the Home Depot store in Richmond, B.C. From there, he worked his way up to the VP merchandising role in 2011, before taking the top job at Home Depot Canada at the beginning of 2016. Along the way, Kinnaird earned an MBA at Queen’s University, Kingston, Ont.

“Jeff has made significant contributions to The Home Depot since starting in the lumber aisle nearly 27 years ago and progressing through every role in our stores,” said Ted Decker, chair, president, and CEO of The Home Depot in a release. “His leadership of our Canadian division, and more recently of our merchandising, marketing, and online businesses, is greatly appreciated.”

“Jeff has been a champion of our culture and values,” Decker continued, “and I would like to thank him for his hard work and numerous contributions across his career. I wish him well in his future endeavours.”

The reasons for Kinnaird’s departure are not immediately clear. The release stated simply that Kinnaird had “decided to leave The Home Depot.” Kinnaird has confirmed to Hardlines that his next steps include returning to Canada.

Bastek, a 33-year veteran of the company, has served in several leadership positions across the merchandising organization, most recently as senior vice president of hardlines. He began his career in 1989 at HD Supply (formerly Maintenance Warehouse), which was first acquired by Home Depot in 1997. His titles through the years have included global product merchant, senior merchant, divisional merchandise manager, and merchandising vice president for building materials.

Lowe’s Cos. year-end results reflect the selloff of its Canadian business

For what will be the last time, Lowe’s Cos. supplied financials last month that included Canada when it turned in its 2022 year-end numbers.

The company enjoyed healthy results, dinged only slightly by the impacts of its Lowe’s Canada operations. The deal to sell that business to Sycamore Group was finalized Feb. 3. Excluding the $441 million of pre-tax transaction costs associated with the sale of the Canadian retail business (all figures USD), Lowe’s was able to generate fourth-quarter adjusted diluted earnings that were up 28 percent compared with the comparable period of 2021.

“This increase was driven by our continued focus on productivity, as well as disciplined capital allocation,” said Marvin Ellison, president and CEO of Lowe’s, on a call with analysts. “Fourth-quarter sales were $22.4 billion, which includes approximately $1.4 billion in sales generated in the 14th week. Comparable sales declined 1.5 percent.”

Ellison talked further about the deal to offload Lowe’s Canada. “We completed the sale of our Canadian retail business to Sycamore Partners this quarter. As a result, we are now solely focused on the transformation of our U.S. business, where we estimate we have a $1 trillion addressable home improvement market, enabling us to invest more into higher-return opportunities to grow our business and to take market share.”

The Canadian business had a negative impact on the business for a couple of reasons. One was the weakness of the Canadian dollar in the last quarter of 2022. The other was the impact of price deflation on lumber, which typically comprised a larger amount of sales for Lowe’s in this country relative to the U.S. stores.

“Sales in Canada totaled $958 million, a decline of 18 percent in USD on a comparable basis, partly driven by exchange rate unfavourability due to a stronger [U.S.] dollar and lumber deflation,” said Brandon Sink, Lowe’s executive vice president and CFO.

Peavey backs a winner with joint sponsorship of stock car racer

Peavey Industries LP has joined with Berne Workwear Canada in a sponsorship of Junior Farrelly Motorsports. Junior Farrelly is the owner and driver of a professional late model stock car and race team, Junior Farrelly Motorsports, which competes each season in the APC United Late Model Series on tracks across Ontario.

In partnering on this sponsorship, Berne and Peavey Industries will highlight and build awareness of their brands in the Ontario region via the sport of professional stock car racing. Through this partnership, the two sponsors will aim to promote the benefits of “workwear in action.”

“For Peavey Industries this sponsorship is more than just sticking our logo on a race car,” says Jest Sidloski, Peavey’s vice president, marketing. “It’s an opportunity to actively engage with and contribute to the local communities we serve.”

Peavey Mart customers across Ontario will have the chance to get up close and personal with Farrelly when he and the Berne-Peavey Mart number 72 stock car visit Ontario Peavey Mart locations over the course of the 2023 APC Late Model Series race season. It kicks off at the Sunset Speedway in Innisfil, Ont., on May 20 and finishes with the championship race at the Delaware Speedway in Delaware, Ont., on September 23.

“With 46 locations, a regional office, and a distribution centre, Ontario is a vital market for the Peavey Mart brand,” Sidloski adds, “and we’re proud to be a part of the community. Expect to see us out and about cheering on Junior and the team as we continue to support and serve our local communities.”

Canadian Tire Corp. has launched its premium online membership service, Triangle Select. The fee-based subscription program, which “delivers an enhanced value proposition to customers” according to a release, is the retailer’s answer to enhanced loyalty programs like Amazon Prime.

For $89 per year, Triangle Select members can earn CT Money even faster on all eligible purchases in-store at Canadian Tire stores, as well as at Mark’s, Sport Chek, Sport Experts, Party City, and L’Équipeur, with bonus rewards. Shipping fees are reimbursed in CT Money on the first five Canadian Tire ship-to-home purchases and waived outright on online purchases over $50 from Sport Chek, Mark’s, and L’Équipeur.

Other incentives include a 10-times everyday in-store bonus on most in-store purchases at all CTC retailers and 20-times Canadian Tire money on in-store purchases of some private-label brands such as Helly Hansen, FWD, Denver Hayes, Mastercraft, and Canvas. In addition, Triangle Select members will receive 20-times bonus Canadian Tire money at the end of the subscription year on their largest eligible in-store purchase.

The company is confident consumers will find value in the annual fee. “In our beta test of Triangle Select, the average member’s annual incremental earnings through select-specific bonuses were more than three times the subscription fee—demonstrating the incredible value this program will bring to our customers this year and beyond,” said Jason Blanchette, senior vice president, loyalty and customer insights, at Canadian Tire Corp.

For 2022, Canadian Tire saw sales to its regular Triangle Loyalty member go up eight percent. The company reported that it has 11.3 million active members in the program and loyalty penetration came close to 60 percent in 2022.

Michael Simms, has stepped away from the position of general manager at Kent Building Supplies, which he held for almost 17 years. He remains at parent company J.D. Irving in his role as VP of retail. Rannie MacDonald has taken over the GM job at Kent. MacDonald comes over from Grainger Canada, where he spent almost seven years, most recently as VP of commercial sales.

Vicwest has appointed Toby Handley as western Canadian sales manager for light gauge. In this role, he reports to Brian Glen, director of sales for central and western Canada. Handley joined Vicwest in 2021 as business development manager for Ontario and then North America as a whole. Before that he was at Milwaukee Tool for two years.

DID YOU KNOW…?

… that the latest edition of Hardlines Dealer News hit inboxes last week? In this issue, we look at how independent dealers are slowly moving into online sales, plus UFA’s store updates and one RONA employee’s mastery of the store PA system. Hardlines Dealer News is monthly and it’s free: click here to subscribe now!

RETAILER NEWS

Two new members have joined Castle Building Centres. Rénocentre RDB in Chicoutimi, Que., has been in business for more than 40 years; the current owner is Normand Blanchette. In Nova Scotia, Beautiful Baths Renovations is a family-owned business based in Lower Sackville that’s been serving the Halifax, Dartmouth, Kentville, and Bridgewater markets since 1994 with bathroom sales and installations. The owners are Chris and Tori Bowie.

Busy Bee Tools is a tool retailer with 10 stores across the country and it plans to open more. According to Retail Insider, the specialty retailer of woodworking and metalworking tools has enjoyed strong growth in recent years and now has one location in British Columbia, two in Alberta, six in Ontario, and one in Nova Scotia. The family-owned business is headed by Hanif Balolia.

Lowe’s has introduced security robots at some of its U.S. stores to patrol the parking lots. With concerns of rising violence and thefts at some of its stores there, the giant retailer is using the self-driven, 400-pound Knightscope K5 robots  to enhance security. Pilot tests of the new technology are happening at stores in Philadelphia, Washington state, North Carolina, D.C., and California.

In-store automation continues at Canadian Tire stores. The retailer says that 80 percent of its CTR stores now have pickup lockers and more than half have electronic shelf labels. In addition, an online automotive service appointment system that was launched in late September 2022 has been used by over 80,000 customers using the system in more than 80 percent of its stores. 

SUPPLIER NEWS

The Quebec industry association AQMAT will host its annual Congrès des décideurs on April 27 at the Centre de congrès in Saint-Hyacinthe, Que. This year’s event is expected to host about 100 people, including retail leaders from a range of banners as well as industry vendors and service providers. The keynote speaker is Valentine Thomas, activist, thought leader, author, spearfisher, and freediver. (Click here for more information.)

3M has been honoured as a leader in ethics and integrity in business conduct and compliance. The designation was awarded by the Ethisphere Institute and was given to a total of 135 companies around the world that were recognized as the World’s Most Ethical Companies in 2023. 3M was recognized for the 10th straight year.

Doman Building Materials reported Q4 net earnings of $4.3 million, down from $11.6 million a year earlier. Revenues for the quarter declined to $572.9 million from $641.6 million in the comparable period of 2021, with construction materials accounting for 72 percent of sales. For the full fiscal year, net earnings came to $78.7 million, down from $106.5 million in 2021. Revenues of $3 billion were up 19.5 percent when compared to $2.5 billion the previous year.

ECONOMIC INDICATORS

Investment in building construction increased 1.5 percent to $20.4 billion in January. Residential construction was up 1.9 percent to $14.9 billion, after posting four consecutive monthly declines at the end of 2022. Single-family home investment was up 2.4 percent to $8 billion. Multi-unit construction increased 1.3 percent to $6.8 billion.
The non-residential sector was up 0.5 percent to $5.6 billion. (StatCan)

Sales of existing Canadian homes rose 2.3 percent in February compared with the previous month. Gains were led by the Greater Toronto and Greater Vancouver areas. The actual (not seasonally adjusted) number of transactions in February 2023 came in 40 percent below an unusually strong February in 2022. The February 2023 sales figure was comparable to what was seen for that month in 2018 and 2019. (Canadian Real Estate Assoc.)

The annualized rate of housing starts rose by 13 percent in February to 243,959 units. The monthly rate of total urban starts was up 16 percent, with 222,663 units recorded in February. Single-detached urban starts increased eight percent to 48,918 units. Rural starts for the month were estimated at an annualized pace of 21,296 units. (Canada Mortgage and Housing Corp.)

NOTED

This year’s Hardlines Conference will have a fresh look—and a new location. The annual summit for industry retailers and executives is moving to Whistler, B.C., on Oct. 17 and 18. Working closely with the Building Supply Industry Association of British Columbia, Hardlines will hold the conference at one of the most stunning locations on the planet—the luxurious Fairmont Chateau Whistler resort. (Hardlines weekly Subscribers get a 20 percent discount off the regular conference price. Contact Michelle Porter to get your Subscriber discount code!)

Tony Cioffi (left) and and Garry Senecal

Tony Cioffi, president of RONA inc., has been replaced in the top job at the Boucherville, Que.-based retail company. Garry Senecal, a former long-standing C-suite executive with Loblaw Companies Ltd., has taken over as interim CEO.

The interim change in executives at the top of one of the largest retail home improvement firms in Canada, announced March 9, comes just over a month after Lowe’s Companies closed the sale of its Canadian operations to Sycamore Partners, a private equity firm in New York City. It took just 34 days after that deal was made final for RONA to announce a new top gun at the network of some 450 stores under the RONA, Lowe’s Canada (these will be rebranded RONA over time), Réno-Dépôt, and Dick’s Lumber banners.

Cioffi joined RONA in 2016 as senior vice president, finance, and group financial officer. He had held the president’s position at RONA since January 2022 after holding it on an interim basis previously. Senecal, meanwhile, filled senior executive roles at Loblaw for almost 13 years. He was at various times: chief customer officer of the company; former president, market division; and executive vice president, conventional division. He was a past member of the Loblaw management board. Senecal had announced his plans to depart Loblaw in the spring of 2020 and, nevertheless, stayed to help the company with its pandemic response thereafter.

Federated Co-op turns in solid annual results despite drop in construction

Federated Co-operatives Ltd. reported its annual results last month. On the sales side, FCL saw a significant increase, achieving a new sales record in 2022 with $12.5 billion while net income reached $411 million. This growth was due largely to the impact of inflation, which affected every area of our business.

FCL’s overall performance in 2022 was also impacted by the $264 million investment, in November 2021, in the acquisition of the Husky chain of retail fuel sites. This was the largest retail acquisition in Co-op’s history. In August 2022 the Canadian Competition Bureau approved the acquisition of 171 retail fuel sites, which consisted of a mix of corporate- and dealer-owned gas bars as well as car washes and convenience stores.

FCL achieved record sales in the Ag Solutions business lines, including a record year for fertilizer. But a combination of increasingly competitive markets and industry-wide reduction in demand led to a decline in sales volumes in home and building solutions, as well as in the food and crop supplies businesses.

Wholesale sales in FCL’s strategic business unit, Home and Building Solutions, which consists of the purchase and distribution of home and building supplies on a wholesale basis, fell in 2022 from $451 million in 2021 to $412 million in 2022. Sales declined as a result of consumer pullback on projects while they shifted back to pre-pandemic spending activities such as travel and entertainment, says the company.

Top-line sales from the division’s Co-op Home Centre stores reached an estimated $520 million last year. Federated Co-op ranked number 15 in the Hardlines Top 20. FCL added one new Home Centre location during the fiscal year.

On mixed year-end results, Canadian Tire stores see growth of value shoppers

In February, Canadian Tire Corporation (CTC) released its fourth-quarter and full-year results for 2022.

Consolidated retail sales for the year (excluding petroleum) were $19.25 billion—up 5.4 percent, or $984.2 million, in 2021. Including petroleum in a year that included torrid fuel spikes, that year-over-year increase in revenue was nine percent. However, sales by Canadian Tire stores, which were strong during the first half of the year, eased during the last six months. Sales and comps in the fourth quarter were flat compared with the same period a year earlier.

Canadian Tire said it benefited from an “improved omnichannel experience” in which sales to its Triangle Loyalty member were up eight percent. The company reported that it has 11.3 million active members in the program and loyalty penetration came close to 60 percent in 2022.

As the year progressed, Triangle member sales at Canadian Tire stores in particular were driven by customers looking for deals. Shoppers were trading down, especially in essential categories, a trend that is expected to continue. “We are not seeing a meaningful shift in our discount mix, but we grew categories we would deem as essentials, offset by a decline in non-essentials,” said Greg Hicks, president and CEO of CTC, in a call to analysts.

He added that 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.”

One of the categories considered essential is pet food and supplies. During the year, Canadian Tire continued to expand its pet categories, including plans to roll out its dedicated PetCo store-within-a-store concept to 90 percent of Canadian Tire stores by the end of this summer.

Customers will continue to look for more value in their spend, Hicks said, “and that’s where you can expect us to be laser-focused in 2023.”

RONA will once again host a dealer show for all its affiliated, or independent, RONA-bannered dealers. The second edition of RONA Connexia will take place through the autumn months, represented again by a series of three events.

First, “The Rally” will bring together for the first time all RONA affiliated dealers in Canada. This event will take place on September 13 and 14, 2023, in Mont-Tremblant, Que. The concept was inaugurated last year, following a two-year hiatus for its dealer shows during Covid. Last year’s Rally was held at two locations a week apart, Quebec City and then Vancouver. This year, the Mont-Tremblant location will draw the dealers together in one location to get face-to-face with preferred vendors.

RONA says the event will provide “a great opportunity to hear from the RONA affiliated dealers and to exchange their vision of our network. It will also be an opportunity for selected vendors to present their new products for 2024.”

“The Showcase” will follow in October to present all 2024 season’s products, with an exact date to be announced in the near future. Last year, the in-person event was held at the company’s Planogram Centre in Boucherville, Que., and RONA plans to hold the product showcase there again this year.

FInally, “The Deals” event will take place in November and will allow the dealers to shop for their 2024 spring and summer lines, as well as some core product assortments, via an online buying platform. These events are open to all RONA affiliated dealers.

DID YOU KNOW…?

… that sharing your 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. Contact Jillian at Hardlines to add people to your company’s subscription.

RETAILER NEWS

The founder of Princess Auto died last month, just a few months shy of his 100th birthday. Harvey Tallman founded the company in the early 1940s, according to the Winnipeg Free Press. It was originally called Princess Auto Wrecking. Tallman started by taking apart old cars and selling off the parts. Over the years he added mail order and began selling parts and farm and industrial machinery made from army surplus goods. His sons Bob and Larry Tallman took over the business in 1976. The first Princess Auto retail store opened in 1978. There are now 53 Princess Auto stores in ten provinces in Canada.

A new interactive service for children from The Home Depot is a platform to engage kids remotely in crafts and assembly activities. It’s also the company’s first foray into the metaverse. The Virtual Kids Workshop is an experience in Roblox’s Redcliff City that challenges gamers to play and learn by collecting materials to build projects. Kids’ workshop kits can be ordered through the Home Depot website and provide a certificate of completion, an apron pin, and an orange Kids Workshop apron.

Canadian Tire Corp. has made a multi-million-dollar investment in its Women’s Sport Initiative (WSI), which involves earmarking a minimum of 50 percent of the company’s sponsorship dollars towards women’s professional sport by 2026. As part of the program, CTC is a founding partner of Project 8, Canada’s first women’s professional soccer league, slated to launch in 2025.

Costco Wholesale Corp. reported Q2 sales of $55.27 billion, an increase of 6.5 percent. Revenue from membership fees rose to $1.03 billion from $967 million in the comparable period last year. Net income for the quarter came to $1.47 billion, up from $1.3 billion.

SUPPLIER NEWS

The Atlantic Building Supply Expo was held last week at the Halifax Convention Centre. Hosted by the Atlantic Building Supply Dealers Association, the show kicked off on March 7 with an industry meet and greet. The event was very busy, marked by a positive vibe as dealers from across Atlantic Canada were able to gather again after interruptions due to Covid.

Goodfellow Inc. has announced Q4 net earnings of $4.4 million, down from $10.1 million a year earlier. Consolidated sales for the quarter rose to $149.3 million from $143 million in the comparable period of 2021. For the full year, net earnings of $32.7 million were down from $37.8 million in 2021. Sales amounted to $631.2 million, up from $615.9 million.

ECONOMIC INDICATORS

The value of building permits in Canada fell by four percent in January to $9.8 billion. Residential permits decreased 6.6 percent to $6.1 billion. Total permit values for single-family homes decreased 4.4 percent in January. The total value of non-residential sector permits was up slightly by 0.7 percent. (StatCan)

NOTED

The latest episode of Hardlines’ podcast series What’s In Store goes live this week. This time, we talk to Eri Mathy, former head of business development and transformation at IKEA Canada. She shares her thoughts on IKEA’s omnichannel strategy, the impact of the pandemic on the meaning of home, and the retailer’s new smaller store concept. Sign up now to get updates about the latest podcasts in your inbox! The What’s In Store podcast is free!

Anyone who has ever spoken with Liz Kovach, president of the Western Retail Lumber Association, learns quickly that she is not one for understatement. During the WRLA’s Building and Hardware Showcase, held Jan. 13 and 14 in Winnipeg, she was asked for her take on the show. (Some language has been amended for our more Delicate Readers.—Editor)

The show was only a few hours old, but it was already generating an energy that Kovach was feeding off. “It’s freaking awesome, is what it is,” she enthused.

The event, one of the last general buying shows left in Canada (the other is the Atlantic Building Supply Dealers Association’s Building Supply Expo in Halifax, taking place March 8 and 9 this year), brought together a range of the industry’s leading suppliers, who played host to dealers of all sizes from Canada’s western provinces.

Based on show traffic, which was considered stronger than last year’s event by many exhibiting vendors who were interviewed by Hardlines, plus the overall buzz that prevailed, the show was a success. “The vibe was amazing—a great vibe for the show floor. There’s certainly a lot of stuff going on,” Kovach said.

Kovach and her team were hoping for 500 dealers to attend. But the event quickly surpassed that. “We had more than 550 at registration on day one,” said Kovach. The increased dealer attendance translated into purchases and opportunities for relationship building, which made the show a hit for most vendors.

One important aspect of this show was its Showcase Workshop Series, featuring seminars to help dealers run their businesses better and provide a platform for vendors to feature their latest innovations. Again, Kovach was nothing short of enthusiastic, calling the series “awesome.”

“It’s important to showcase the R&D and innovation of the vendors,” she said. “We really want to support that.” Next year’s show will again be in Winnipeg, from Jan. 18 to 19, 2024.

Goodfellow ramps up promotions—and fun—as it turns 125 this year

Goodfellow Inc. is celebrating its 125th anniversary this year. The LBM and flooring distributor kicked off the milestone with a party for 125 minutes at its booth during the WRLA’s Building & Hardware Showcase, which was held recently in Winnipeg.

“We had parties across the country for our staff and this was the launch at the show, and it will continue all year," said Mary Lohmus, Goodfellow’s executive vice president for Ontario and western Canada.

And watch for additional promotions and anniversary-related messaging throughout 2023, she says. “We have a new logo and more birthday parties—including another celebration during the Atlantic Building Supply Dealers Association’s Building Supply Expo in Halifax, March 8 and 9.”

“Watch for branch and equipment enhancements happening all year long, including the arrival of electronic delivery and material handling equipment, year-long messaging on our website and social media, and a big extravaganza planned across our entire network in August.”

Goodfellow got its start in Montreal in 1898 under George Goodfellow, a lumber broker. The company went public in 1984, but has remained under the control of the Goodfellow family. Since 2017, Patrick Goodfellow—great-grandson of the founder—has headed up the company, which now operates out of Delson, on the south shore of Montreal. Today, the company has 12 sales offices serving dealers across the country, with annual sales of more than $600 million.

But the wholesale supply side for dealers is only part of it. The company also has a large manufacturing business. “We produce a huge variety of engineered wood products,” Lohmus says. These range from glue-laminated timbers, crossarms for the power industry, stop logs for the water and power generation industries, and timber construction mats for temporary roads, to name just a few.

A recent project was with Vélodrome Sylvan Adams at the Centre Multisports Desjardins, an indoor bicycle track in Bromont, Que. During Covid, Goodfellow supplied the immense spruce glulam beams that hold up the roof, along with spruce glulam used for the spectator stands.

Other projects through the years have included a new mast for one of Canada’s most historic sailing ships, Bluenose II. “These types of custom projects are typically quite complex, and are driven by a group of highly-trained people within our organization,” Lohmus adds.

RONA affiliate dealer Moffatt & Powell adds 10th store in Ontario

A major RONA dealer in southwestern Ontario has added a 10th location to its store network. The former RONA Davies Hardware store in Grand Bend is the latest to come under the umbrella of the Moffatt & Powell enterprise, which dates to 1956. The company is planning a 10,000-square-foot expansion for the store’s outdoor lumber yard and an inventory increase of over 1,000 SKUs, mostly in the LBM category.

Owners D’Arcy Quinn and Nancy Powell Quinn, (left and centre) joined with Kevin Davies (right), whose family had owned the Grand Bend store, in the venture. “The acquisition coincides with Moffatt & Powell acquiring the neighbouring vacant property to the store, which will allow for an immediate expansion of the lumber yard and a future store expansion,” says Powell Quinn.

She and D’Arcy have known Davies for more than a decade; he has maintained a stake in the store and its management. “Kevin and his team will remain active in managing the day-to-day operations of the store and he retains a vested partner position in the Grand Bend location,” she adds.

The newly expanded store will be rebranded Moffatt & Powell RONA Grand Bend over the coming months. In the process, the expanded space will accommodate a wider range of products than before, reflecting the merchandise mix of the chain’s other stores. The store will also offer Moffatt & Powell’s design services and will serve customers through Moffatt & Powell’s delivery fleet.

The venerable Zellers name is being re-introduced to Canadians both online and in stores. Twenty-five Hudson’s Bay stores across the country will introduce a store-within-a-store concept featuring the Zellers discount brand. The retail concept will be supported by a new e-commerce site, Zellers.ca.

The product offering will replicate the discount department store vibe of the former Zellers retail chain, which was bought by Hudson’s Bay Company in 1978. HBC promises customers “a thoughtful selection of design-led products across home décor, toys, baby, apparel, and pets, housed within Zellers’ signature red and white that will guide customers along in their retail journey.”

The Zellers shops within the Hudson’s Bay stores will be between 8,000 and 10,000 square feet, depending on the location. HBC is encouraging customers to sign up at Zellers.ca in order to receive updates about its e-commerce platform as the Zellers program takes shape. The plan is to launch in-store and online simultaneously.

While no date has been confirmed for the Zellers launch, the 25 Bay store locations have been selected for these locations—BC: Abbotsford, Kamloops, Surrey, Vancouver; AB: Calgary, Edmonton, Medicine Hat; SK: Saskatoon; MB: Winnipeg; ON: Burlington, Cambridge, Kingston, London, Mississauga, Ottawa (Cambridge Centre and Rideau Centre), Scarborough, St. Catharines; QC: Anjou, Gatineau, Québec, Rosemère, Sherbrooke; NS: Dartmouth, Sydney.

HBC has been testing the new bricks-and-mortar model with pop-ups Hudson’s Bay stores in Burlington, Ont., and in Montreal.

The reintroduction of Zellers comes as runaway inflation drives more and more traffic to discount chains. So HBC’s debut of its new/old concept in certain markets could be a way to shore up The Bay’s traditional department store model.

The head of the Sexton Family of Companies, which includes the Sexton Group, has been honoured by the Western Retail Lumber Association. Steve Buckle was awarded the Outstanding Achievement Award during the WRLA’s annual Lumber and Hardware Showcase, held in Winnipeg Jan. 13 and 14.

Iain Nairn will retire this month as head of The Bay, the online marketplace business of Hudson’s Bay Company. HBC president Sophia Hwang-Judiesch will assume his responsibilities in addition to her current role. HBC spun the online business off from its bricks-and-mortar division in 2021. Nairn, who had been named HBC’s president in January 2020, was chosen to helm The Bay marketplace. Also at HBC, Wayne Drummond was promoted from chief merchant to president of the Hudson’s Bay network of stores.

DID YOU KNOW…?

… the latest edition of Hardlines HR Advisor hit inboxes last week? In our latest issue, we look at lessons in leadership from Steve Buckle of the Sexton Family of Companies, and John Herbert, internationally known retail leader and head of the Global Home Improvement Network. Also in this issue: the power of upskilling and reskilling and the importance of employment contracts. (If you’re not already receiving HR Advisor, click here to sign up for free!)

Home Hardware Stores Ltd. has made it onto this year’s Forbes list of Canada’s Best Employers. The ranking is developed annually by Forbes and Statista Inc. Evaluations were based on direct and indirect recommendations from employees who rated their willingness to recommend their employer to friends and family. These evaluations included participants’ opinions on a series of work-related topics such as working conditions, salary potential, and company image.

Peavey Industries has announced the construction of a new Peavey Mart store, this time in Steinbach, Man. It joins existing stores in Winnipeg, Brandon, Swan River, and Winkler. The Steinbach location will be at #41 Hwy 52 West and will be 28,800 square feet in size. It will also feature a 14,400-square-foot greenhouse and is expected to employ up to 40 people. A soft opening is anticipated for spring 2024.

The Canadian Tire store in Vernon, B.C., which closed after it was extensively damaged by a fire in November, reopened last week for online shopping. “While inventory in some departments may be limited, we will continue to add items daily,” the store reported via social media. “We are working hard to re-open in-store shopping as soon as possible to serve the community of Vernon.”

The Home Depot is increasing its commitment to rooftop solar panels on its stores, reports the website of the Environment America Research & Policy Centre. The lobby group says that the chain will install the panels on 25 store locations in California, “bringing the total number of The Home Depot stores that have gone solar to 98.” The Home Depot has nearly 2,000 stores in the U.S. The environmental group says that Home Depot “ranks third behind Walmart and Target when it comes to rooftop solar potential … Going solar is part of the Home Depot’s plan to power its facilities with 100 percent renewable energy by 2030,” the website reports.

Home Hardware Stores Ltd. partnered for a second year with shopping rewards app FlipGive to support 500 youth sports teams across Canada. The Play More Matching Grant distributed $75,000 in funding to teams in 2022. “It’s never been more expensive to keep your kids in sports and the impact of double-digit inflation is putting an even tighter squeeze on families,” FlipGive CEO Amy Halpenny said in a release.

SUPPLIER NEWS

Richelieu Hardware reported Q4 sales of $457.5 million, up 14.9 percent from $398.2 million a year earlier. In Canada, sales amounted to $273.5 million, a 5.2 percent increase from the comparable period of 2021. Earnings of $44.9 million were up 0.8 percent. For the fiscal year 2022, sales rose 25.2 percent to $1.8 billion, while earnings grew 18.8 percent to $168.4 million.

ECONOMIC INDICATORS

Retail sales decreased 0.1 percent to $61.8 billion in November. Sales declined in six of 11 subsectors, led by a 3.8 percent drop in building materials and garden categories. That was the subsector’s largest decrease in seven months. Overall, sales were down in eight provinces, with B.C. posting the largest increase at 0.9 percent. (StatCan)

Sales of existing U.S. homes fell by 1.5 percent in December. The annualized pace of 4.02 million units was the lowest level of sales since November 2010. The decline was the eleventh in as many months, the longest downward streak since 1999. (National Association of Realtors)

NOTED

Hardlines will head to New Orleans for Orgill’s 2023 Spring Dealer Market, Feb. 9 to 11. And we’re very excited to host our Canada Night reception once again. Every dealer and their team is invited—and the beer is on us! It’s being held at Mulate’s Original Cajun Restaurant on Feb. 9 from 6 pm to 9 pm. Want to join us? RSVP here. (Sorry, this fab event is only open to dealers and our vendor sponsors!)

OVERHEARD…

“It’s an honour for Home Hardware Stores Ltd. to be named on this prestigious list of Canadian companies for the third consecutive year. Home Hardware’s incredible journey of growth is driven by the dedication and hard work of our team members in support of our dealer-owners, who in turn provide customers with the high-quality service they expect from us.”
—Kevin Macnab, president and CEO of Home Hardware Stores, acknowledging the retailer’s recognition on the Forbes list of Canada’s Best Employers.