John Herbert has worked in home improvement retailing for four decades, ascending to leadership roles on both sides of the Atlantic.

As leader of the European DIY Retail Association (EDRA), an umbrella organization for DIY associations internationally, Herbert has worked tirelessly to unite this industry’s top companies and create an environment of camaraderie, best practices, and professional support. Eventually, his efforts to unite the industry pushed beyond the European Union with the formation of the Global Home Improvement Network (GHIN).

Now, those organizations, along with their counterpart representing suppliers, the Home Improvement Manufacturers Association (HIMA), have named Herbert as the industry’s Global DIY-Lifetime Award winner for 2022.

Who is John Herbert? He’s been in retailing since 1956, and in the home improvement and DIY industry since 1983. He gained notoriety for the advances made under his leadership of Knauber, a regional home improvement chain based in Bonn, Germany. Herbert’s stores were so advanced, using big box merchandising techniques, product assortment, and even wayfinding through the store, that they drew curious visitors from all over the world. Executives from Canadian Tire, Home Depot, and Home Hardware were just some of the Canadian retail leaders who travelled to Germany to walk the aisles at Knauber.

In 2001, Herbert was lured away by Bob Nardelli, then president at Home Depot, for a brief stint as West Coast president of that retailer’s Home Depot Expo Design Center business. But disillusioned by the leadership there, he soon returned to Germany to head up that nation’s DIY retail association.

He gradually expanded this role to become an international voice for the sector, connecting with the leaders of the top home improvement companies around the world and bringing them together. That includes presenting at the Hardlines Conference on more than one occasion. (During one of those visits, the president of Home Depot Canada at the time, Annette Verschuren, tried to convince Herbert to join her team.)

Most recently, Herbert’s efforts to bring the industry together included the sharing of messages from retail leaders in Ukraine and Russia concerning the devastation of the war between those two countries (see our March 15 edition of Hardlines—Editor).

Herbert knows how to look beyond his own market and the daily concerns that tether every business, retail or not, and instead to look for, and be part of, a bigger picture. Canadian retailers, by virtue of both this country’s geographic isolation from key European and Asian markets and its corresponding proximity to the dominant U.S. market, are often too fixated on their own market, or distracted by corresponding retailers south of the border.

With the curiosity and desire to explore new ideas and meet new people, Herbert has demonstrated true leadership through many years working on behalf of home improvement retailing. That’s something any business leader could learn from.

The apogee of Herbert’s efforts was the development of the Global DIY-Summit, launched in 2010 and inspired by our own Hardlines Conference. Now, Herbert will be honoured during this year’s Summit at a gala dinner on June 9 in Copenhagen.

(Ready to meet this industry’s top retail leaders? Join Hardlines at this year’s Global DIY-Summit, June 8-10 in Copenhagen.)

Home Hardware restructures its VPs into “executive leadership team”

Home Hardware announced last week the appointment of a new chief legal officer, but it was just one part of a wider range of changes within the executive team. While duties for the company’s senior leaders don’t change in most cases, their titles will change effective April 11.

“This restructuring,” said the company in a release, “will see members of Home Hardware’s current Leadership Team change to a newly formed Executive Leadership Team.”

For example, senior vice-president, merchandise Marianne Thompson will trade that title for chief merchandising officer. Scott Bryant, currently vice-president, HR, will become chief human resources officer.

CFO Sean MacCormack’s title remains unchanged. But Gino Gualtieri, currently VP for IT, will become chief information officer. Rob Wallace, VP, retail operations, will be chief retail operations officer. And John Dyksterhuis, who is now VP logistics and manufacturing, will be assigned the title of chief supply chain officer. Laura Baker, VP marketing, will, become chief marketing officer.

Meanwhile, Home Hardware’s chief legal officer role has been given to William Zeyl. Most recently VP, legal, at Canadian Tire Financial Services, Zeyl will oversee Home Hardware’s legal and compliance team and be responsible for company-wide legal, corporate governance, and regulatory compliance. Effective April 25, following Home Hardware’s annual general meeting, Zeyl will also be appointed corporate secretary, replacing Dianne McTavish, who moves to the role of VP, corporate records.

(Click here to see the full list of executives and their title changes.)

Hardlines Survey shows that supply chain issues are dealers’ biggest concern

Getting product on the shelves has become the biggest concern for dealers and managers in Canada, according to the latest data from Hardlines.

The 2022 Hardlines Retail Report Survey was sent to retail owners and managers across Canada earlier this year. Stores surveyed included hardware stores, building centres, and big boxes. Responses indicated how their retail sales have grown through the pandemic, while gauging the impact of other conditions on their businesses.

The survey revealed that 93 percent of dealers and managers considered availability of product as their biggest concern. Another 37 percent indicated a parallel issue, sourcing and product shortages, as their biggest worry. The prominence of these two issues combined reflects the widespread impact of worldwide product shortages on stores everywhere.

The next most cited response reflects another side of the business—recruiting. Fully 45 percent of respondents indicated that staffing was their biggest concern. Other issues keeping dealers awake at night included succession, at 12 percent, followed by online and e-commerce sales, cited by 10 percent of respondents. Just over eight percent cited supplier consolidation as a concern.

(The data from the Hardlines Retail Report Survey will be used to produce this year’s Hardlines Retail Report, our annual research report on the size and growth of Canada’s retail home improvement industry. It will be available in July. Click here for more info or to pre-order the Hardlines Retail Report for yourself.)

While home prices continue to climb at a dizzying pace, sales have slowed somewhat during the first part of the year, and that’s due largely to lack of supply.

The Canadian Real Estate Association (CREA) has updated its forecast for home sales activity, as tracked through the Multiple Listing Service used by the Canadian real estate industry. Home sales have kicked off 2022 below 2021 levels, but strong demand faces lower levels of housing than ever before.

CREA’s latest report notes that the ongoing housing supply shortage may well be exacerbated by higher interest rates. Discounted five-year mortgage rates have already begun to rise and are now back above pre-COVID-19 levels. In the face of rising inflation, the Bank of Canada announced a quarter-point hike in early March. More increases are expected through the year.

Another wild card is the housing policy changes announced in last year’s federal election campaign. CREA is waiting for more clarity on the possible impacts following the release of the Federal Budget later this spring.

With all these considerations, the association forecasts that about 612,800 properties will trade hands in 2022. That would mark an 8.1 percent decline from last year, but it would still be the second-highest annual figure ever—by a sizeable margin.

The national average home price is now forecast to rise by 14.3 percent on an annual basis to $786,000 in 2022.

Looking out to 2023, home sales are forecast to remain historically strong but will begin to stabilize at last, and edge back 2.7 percent to 596,150 units. Limited supply, higher prices, and higher interest rates are expected to further tap the brakes on activity and price growth in 2023 compared to 2022, particularly in Canada’s most expensive markets.

At Exchange-A-Blade, Scott Coates has been named director of sales and marketing for North American operations. Coates brings over 20 years of experience to the role, having worked for Stanley Black & Decker, Newell Rubbermaid, and most recently Techtronic Industries.

Home Hardware Stores Ltd. has appointed Keri McMillan as director, sales and service marketing. McMillan has been manager of marketing operations since 2020. In her new role, she will be responsible for Beaver Homes & Cottages, architectural solutions, home installs, and commercial sales. She reports to marketing VP Laura Baker.

DID YOU KNOW…?

… that we keep coming up with information products to help you run your business better? Besides the Hardlines weekly, we have a newsletter just for dealers and store managers. Our newest publication, Hardlines HR Advisor, is a dedicated to helping retailers and suppliers alike deal with the people side of your business. And, of course, you have to check out our amazing Podcast Series! Make sure you’re signed up for them all!

Kent Building Supplies has opened its latest big box store, this time in Moncton, N.B. The company says this location features modernized displays and enhanced signage to aid customer flow, along with expanded product assortments, a drive-through lumber yard, year-round garden centre, cut shop, and a large pro service desk. There’s also a bigger online pickup area than in existing stores.

Lowe’s Canada has been named a finalist in the Mercuriades 2022 business awards in the sustainable development category. The company has invested nearly $30-million in its energy efficiency strategy since launching it in 2018.

TORBSA will hold its second annual Virtual Vendor Expo from May 16 to 27, in addition to the in-person vendor event returning this year. The online expo will welcome dozens of TORBSA’s preferred suppliers to showcase their newest products, while offering show specials to the shareholder members.

Dollarama will raise its highest price point to $5 from $4 over the coming year, despite growing profits. Net earnings for Q4 rose to almost $220-million, or $0.74 per share, compared to $173.9-million ($0.56) a year earlier. Sales of $1.2-billion represented an 11 percent increase from the previous Q4, as the discount retailer expanded its store network. Comp sales were up 5.7 percent.

True Value Co. is acquiring the consumer paint business of and The Yenkin-Majestic Paint Corp., an Ohio-based coatings manufacturer. The division produces architectural coatings for home, agricultural, and specialty applications under the Majic brand name.

The newest Princess Auto store has opened in Saint-Hubert, Que. The grand opening was held March 29.

SUPPLIER NEWS

Saint-Gobain is investing $4-million through its subsidiary CertainTeed Canada to install heat recovery technology at its Vancouver gypsum plant. A heat exchanger will capture and recycle some of the warm air emitted from the plant’s industrial dryer. The process will allow the dryer to maintain its temperature while reducing the facility’s carbon dioxide emissions.

ECONOMIC INDICATORS

The national average home price is forecast to rise by a modest 3.2 percent on an annual basis to just under $811,000 in 2023. (Canadian Real Estate Association)

NOTED

Home Depot in the U.S. cut its overall workforce by 2.8 percent in the fiscal year ended Jan. 30, while increasing the number of salaried employees by 19.9 percent. According to the company’s 10-K annual report filed with the Securities and Exchange Commission, it had 490,600 employees at the end of fiscal 2021, versus 504,800 a year earlier. By comparison, Lowe’s workforce fell nine percent to 200,000 while full-time employees increased 40 percent to 140,000.

Ken Jenkins, who has been leading Castle Building Centres Group since 2007, has added the CEO role to his existing title of president.

Jenkins (shown here speaking at the 2015 Hardlines Conference) joined Castle as vice president in 2006. Positioned at the time to take over from Pro Wylie, who had helmed the group since 1994, Jenkins transitioned into the president’s role the following year. As head of Castle, he is also president of the group’s commercial division, Commercial Builders Supplies Inc. (CBS). He had previously spent a decade at insulation supplier CGC.

Under Jenkins’s guidance, Castle grew from just over 200 dealer locations to 325 outlets today. They consist of building supply dealers, hardware stores, and specialty and commercial operations.

In his added capacity as CEO, says the company, Jenkins will continue to lead Castle as it grows membership and sales overall.

Castle member-stores represent nearly $2-billion sales (source: Hardlines Retail Report), with locations in every region of the country except Yukon and the Northwest Territories.

Aside from Saskatchewan and Manitoba, where the group has an average of about eight percent of the market, its presence is strongest in Atlantic Canada, and especially in Newfoundland and Labrador. There, its dealer-members’ stores account for almost one-quarter of retail home improvement sales (source: Hardlines Market Share Report).

The group has been actively adding new members across the country in recent years, with big gains in the Greater Toronto area and in the province of Quebec.

Regina-area DC will streamline LBM shipments to Federated Co-op members

At Federate Co-operatives Ltd., the group’s Home and Building Solutions department (HABS) is coming off the strongest sales year in its history. Building the lumber and building material business is considered a priority, says the co-op, which means the HABS management team is building on its success with increased store supports. These include the planned addition of a new LBM distribution hub on a 6.7-acre site outside of Regina.

The $7.5-million investment will allow FCL to procure and distribute materials such as lumber, drywall, and decking materials from a centralized facility to Co-op Home Centres in Manitoba and most of Saskatchewan. Currently, LBM products are shipped directly to the stores from the manufacturer or other distributors, sometimes at a premium price for less-than-full truckloads.

FCL is using the investment in its distribution to buy more effectively and expand its vendor base. It anticipates taking inventory positions which will ultimately help drive sales for the co-op.

The model will let FCL centralize time-consuming procurement tasks such as obtaining quotes from multiple vendors. It will also help the stores to manage inventories and keep shelves stocked.

The hub began receiving product and building inventory in late 2021 and is expected to be fully operational with four full-time team members in the new warehouse and office space by the spring. A second facility in Alberta is planned to be operational in 2023 and will serve Co-ops in FCL’s West Zone.

Online selling, sustainability among top trends examined at DX3 conference

“Sustainability is not a trend, but it’s a reality.” This was just one of the determinations of a panel of digital marketers at the latest DX3 conference. The event, which gathers retail marketers and IT professionals from across Canada, was held virtually earlier this month.

Wes Wolch, SVP of marketing at fashion retailer Holt Renfrew, came back to the topic of environmental sustainability more than once during a panel discussion. He talked about the importance of a retailer reviewing its product lines. (Holt Renfrew discontinued selling furs last year and pulled all glitter and plastics from its products).

Growth of e-commerce sellers was a trend noted by another panelist, Prabal Majumdar, director of insights and analytics at Walmart Connect. “One of the biggest things we’re seeing is the number retailers coming into the online space,” he said. As an open retail platform, Walmart Connect looks for ways to make the presence of the sellers it hosts as meaningful and seamless as possible.

Marshall Kay, founder of retail consultancy RFID Sherpas, said the use of pop-up shops for online brands is another key trend to watch. Amidst all the retail disruption that is taking place, “There’s tremendous opportunity for new brands to enter the space.” As products and brands grow in popularity online, some of them see a physical location as a logical next step.

Consumers will continue to seek more options, Kay said. Physical locations address another big part of shopping—product returns. “I see the opportunity for more and more digitally native retail brands to show up in new markets.”

Existing bricks-and-mortar retailers have to up their game when it comes to fulfilling orders. “Retailers need to know what’s in stock and fulfill that order quickly.”

Wolch of Holt Renfrew expanded on that idea: “It’s about the relationship between online and bricks and mortar,” such as being able to accept returns of online purchases. “The relationship is going to be incredibly important."

Lowe’s Canada is relying on humour to help its consumer ads stand out as the industry heads into its busiest season. The retailer has launched two humorous advertising campaigns for its Lowe’s and RONA banners, created in partnership with the Sid Lee agency. They’re running on television, radio, billboards, social media, and the web until April 6.

The campaign also extends to radio with the use of broadcasts on location, offering consumers discounts of up to 30 percent off a range of spring products.

For the Lowe’s banner, the company used the theme “Don’t let spring catch you off guard” to encourage consumers to do their spring and summer shopping early. It features a series of humorous scenes in which a situation catches people off guard.

“It’s well known that in Canada we go from one season to the next in a snap of your fingers—sometimes we even see more than one season in the same day,” said Catherine Laporte, VP of marketing at Lowe’s Canada. “The Lowe’s ad campaign is a nod to this omnipresent reality in the meme-sphere and encourages consumers to plan their spring and summer seasons now.”

The campaign for the RONA banner finds two young people taking selfies in a backyard patio filled with outdoor furniture and accessories purchased from RONA. But there’s a fun twist (no spoilers! —Editor).

“Our merchandising teams did a great job again this year. We have an amazing selection, exciting offers, and, most importantly, we have enough inventory on hand to meet demand. It’s enough to make our customers’ neighbours jealous,” Laporte says wryly.
 
The ads support a big spring sales event that started March 24 at Lowe’s, RONA, and Réno-Dépôt stores across Canada and run until April 6.

(To see the Lowe’s and RONA advertising campaigns, click here.)

Manon Lecomte has been appointed business development manager for Embassy Ceilings. She will be responsible for relationships with head offices and distributors and will work toward expanding the business in new markets. A 25-year veteran of the hardware and building materials industry, she takes over from Mario Cloutier, who has moved up to become marketing manager. He will be responsible for updating and creating marketing tools and activities, as well as for product development and R&D.

DID YOU KNOW…?

… that Hardlines is the only national breaking news service for Canada’s retail home improvement industry? Our mission is to connect the industry through information. If you have news to share, whether it’s a new hire, banner change, acquisition, or a new line, let Hardlines know. We are working for you!

Peavey Industries will open a new Peavey Mart location in Salmon Arm, B.C., later this year. The 25,000-square-foot store in Centenoka Park Mall will be the third Peavey Mart in the province, joining locations in Dawson Creek and Kamloops. The store is slated to open in late September 2022, with a grand opening to follow.

Walmart Canada will open a 430,000-square-foot fulfilment centre this fall in Rocky View County, Alta., just outside of Calgary. The facility is slated to open in September and will serve as a delivery hub for orders from western Canada.

SUPPLIER NEWS

The National Hardware Show it will take place this year alongside the International Door Association’s IDAExpo and Coverings, the international tile and stone exhibition. The events will be held simultaneously at the Las Vegas Convention Center in the first week of April. These events join the NAHB International Builders’ Show and NKBA’s Kitchen & Bath Industry Show, also being held in conjunction with the NHS.

Einhell Germany AG has entered the Canadian market with the purchase of a majority stake in Montreal-based bench-top power tool and machinery distributor King Canada. Einhell will bring its engineering expertise, including its rechargeable Power X-Change battery platform, to the union. King’s president, Howard Richman, will continue at the helm. The integration is anticipated to provide strategic growth and additional employment opportunities with King Canada.

Quebec industry association AQMAT held its 10th Recognition Gala virtually on March 19. Streaming over YouTube from the Fairmont Queen Elizabeth in Montreal, the association presented awards to retailers and vendors in several categories. (The ceremony can be viewed here; click here for a complete list of winners.)

Intertape Polymer Group has added new products to its Tuck brand of building envelope products. These will include house wrap, flashing tapes, sheathing tapes, and roof underlayment products for both residential and commercial buildings.

ECONOMIC INDICATORS

Retail sales increased 3.2 percent to $58.9 billion in January. The increase was led by higher sales at motor vehicle and parts dealers. Core retail sales, which exclude auto and fuel categories, increased 2.9 percent, led by an 8.9 percent rise in sales of LBM and garden materials. (StatCan)

Sales of existing U.S. homes declined by 7.2 percent in February to an annualized pace of 6.02 million units. Sales were 2.4 percent below February 2021 levels. (National Association of Realtors)

In the U.S., February’s housing starts were at an annualized rate of 1.77 million units, up 6.8 percent from the previous month and their highest level since June 2006. Building permits were at a rate of 1.86 million, down 1.9 percent from January but still 7.7 percent above last February’s pace. (U.S. Commerce Dept.)

OVERHEARD…

“If our trade protectionist policies are not creating domestic jobs or increasing domestic production, then it’s time to revisit our trade positions.”
—Jerry Konter, chairman of the National Association of Home Builders, calling on the White House to end tariffs on Canadian softwood lumber. He told administration officials that costs for materials are up 20 percent on a year-over-year basis due to the tariffs.

Hardware and building supply sales helped drive results for Federated Co-operatives Ltd. in 2021. The Saskatoon-based co-op supplies member co-ops throughout the west that have ag centres, supermarkets, convenience stores, department stores, and home centres.

That last category is serviced by FCL’s Home and Building Solutions business, which saw wholesale sales reach $451 million from 93 stores in Manitoba, Saskatchewan, Alberta, and British Columbia. Those results, up from $363 million a year earlier, represent a healthy 24 percent increase—and record topline sales for the division.

The world’s appetite for home improvement and renovation-related expenditures during COVID would have been a big driver of these results. But the company has been beefing up its infrastructure as well, to support the growth. For example, the Home Centre stores have been undergoing a gradual and ongoing revamp, which includes expanding the back end with more drive-through options, a nod to their growing contractor customer base.

In 2021, FCL opened two new replacement home centres in Saskatchewan, in Weyburn and Melville.

Last year saw the launch of an online catalogue of products at participating Co-op Home Centres at Build.crs. The website provides a digital destination for customers to view products and inventory, submit orders, and arrange for pickup and payment in stores. Build.crs was rolled out to 13 locations last year, with more expected to go online over time.

To further support growth of the Home and Building Solutions business, FCL is finishing off the construction of a new LBM distribution centre near Regina. The investment will let the co-op ship product to local Co-op Home Centres in Manitoba and most of Saskatchewan.

FCL also worked with two local Co-ops on an electronic shelf label pilot project. Electronic shelf labels display the product’s latest price information in real time, reducing the need for a disposable label at each product location, and can be used across the entire store in all departments. The pilot locations, restricted for now to grocery stores, have experienced increased efficiencies, says the company, with more pricing accuracy and a reduction in labour costs. FCL plans to roll out the devices to another 15 locations in 2022.

Retailers, suppliers worldwide evaluate their presence, support in Russia

Companies across the globe are curtailing or stopping their operations in Russia, a move that protests that country’s invasion of Ukraine. In Canada, Canadian Tire Corp. has announced the suspension of its Helly Hansen operations in Russia, including retail stores, e-commerce services, and product shipments.

As with many companies with operations in Russia, halting operations does not mean turning its back on the people who work for them there. Some 300 Helly Hansen store employees at Canadian Tire’s 41 Russian locations will continue to be paid during the temporary pause and the company will continue to honour its commercial obligations.

Montreal-based convenience store operator Couche-Tard is another Canadian retailer that has suspended its business in Russia. It reports that it, too, is implementing plans to take care of its employees “in a responsible and safe manner.”

In Russia, Couche-Tard operates under its Circle K banner, with over 320 employees and 38 stores in St. Petersburg, Murmansk, and Pskov. The company has also donated over $1.5 million to the Red Cross and instituted a global campaign to raise further funds for the Ukrainian people. Since the beginning of the crisis, local Circle K teams in Poland, the Baltics, and across the European network have been supporting refugees with free fuel, food and beverages, housing, and donations to children’s charities.

These companies join a growing lineup of firms, including home improvement retailers in Europe like OBI, Kingfisher, and IKEA, as well as the likes of Heineken, McDonald’s (shown here), Coca-Cola, H&M, Zara, and Starbucks. 

Vendors are responding as well. The Positec Group, a power tool maker whose brands include WORX and Rockwell Tools, is suspending its business activities in Russia and Belarus.

The Chinese manufacturer issued a statement from CEO Don Gao: “In light of the ongoing military action in Ukraine and the tragic humanitarian crisis, we have made the decision to pause the export of our products and the investments to Russia and Belarus.”

But not all companies are stepping back. Knauf, the German LBM company that owns CGC, USG, and Knauf Insulation here in North America, and is the number-one gypsum player in the U.S., says it has no plans to leave the Russian market. It employs 3,900 people at 14 sites in Russia.

With new branding, Canadian Tire to invest $3.4 billion in its retail businesses

Canadian Tire Corp. has announced it will invest $3.4 billion over the next four years, “to deliver an improved omnichannel customer experience.” That includes an expansion of its private-label offerings. The plans were outlined during an investor meeting held recently in Toronto.

CTC’s strategic growth plan impacts multiple aspects of the business and builds upon the company’s customer loyalty and a new brand purpose: to “Make Life in Canada Better.” In conjunction with the new branding, CTC unveiled its long-term financial aspirations. These include the expectation that it can achieve over four percent annual average growth by 2025.

Much of the growth is focused on building up its own collection of private-label lines, which it calls its “owned brands portfolio.” They include names such as Mastercraft and Canvas, and represent $5.7 billion, or 38 percent of retail sales. Canadian Tire wants to push that past 43 percent by scaling up existing owned brands and introducing new products. The retailer anticipates launching over 12,000 new private-label products across all banners by 2025.

Another part of the growth strategy involves building membership in a premium version of its Triangle Rewards loyalty program. Called Triangle Select, it offers a value-added annual membership for a fee—akin to Amazon’s Prime service—to deliver what the company calls “an enhanced value proposition” that applies across all its banners. CTC aims to drive loyalty sales from 58 percent currently to more than 63 percent, while capturing the customer data that go along with that.

(See more on Canadian Tire’s digitally driven loyalty campaign in last week’s blazing issue of Hardlines.—Editor)

New research reveals just how much retail salespeople in this industry are making. The information is part of an effort by DMC Recruitment Group, in association with the Western Retail Lumber Association, to get a better handle on the challenges of attracting and recruiting people into home improvement retailing. DMC has provided Hardlines with a preview of the results from its 2022 Salary Survey for Sales Representatives in the Building Materials Industry.

Conducted during January 2022, the survey was distributed nationwide and focused specifically on sales representatives currently operating within the building materials industry.

Here is an outline of the base salary plus commission that comprises the compensation for sales representatives working for retail home improvement dealers and big box stores in the building materials industry nationwide:

• average base salary: $65,000
• average commission: $43,000
• average annual car allowance: $7,260
• average annual RRSP match: 3.27%

Travel is a big part of the job for many respondents. Sixty percent of respondents in the retail sector cited travel as a part of their role while almost one-quarter (24 percent) said they spend more than 20 percent of their time travelling.

DMC Recruitment’s full Canada-wide 2022 Salary Survey for Sales Representatives in the Building Materials industry, which includes sales reps working for manufacturers, distributors, dealers, big box retailers, and buying groups, will be available by the end of April.

(If you would like a copy of the survey, please send an email here. DMC Recruitment and the WRLA will provide this data for free to anyone within the industry.)

DID YOU KNOW…?

… now is a great time to update your subscription to Hardlines? But please note: we have invested in a secure online portal for you to renew and manage your team’s subscriptions easily. Beginning May 1, we will only accept online credit card payments for your Hardlines subscription. Click here now for instructions on how to update your billing information, upgrade your subscription, and change your subscription users. If you require assistance, email michelle@hardlines.ca. Remember, you can pay by credit card to renew!

A Home Hardware dealer-owner in the B.C. interior has acquired a neighbouring store and is converting it to the banner. Jordan Torgerson, who owns the Home Hardware Building Centre in Cranbrook, is taking over Kimberley Building Supplies effective April 4, the Kimberley Bulletin reports. Stan Cuthill and Marie Kohlman are retiring after nearly 30 years at the helm of the store. A farewell celebration will be held April 1 and 2.

Canadian Tire Corp. is investing $675 million over the next four years to strengthen its supply chain fulfillment infrastructure and improve automation. That means adding 1.6 million square feet of warehouse space to its distribution centres across the country. Canadian Tire will open a 1.3 million-square-foot e-commerce fulfillment facility in the Greater Toronto Area, add 322,000 square feet to it Montreal DC, and implement a robotics automated system in its Calgary, Brampton, and Montreal DCs.

Lowe’s in the U.S. has introduced a new learning platform called DIY-U. It features how-to learning and instruction complete with live and on-demand home improvement skills training. Customers on the livestream workshops can shop in real-time and receive live answers to project questions from Lowe’s staffers.

SUPPLIER NEWS

Orgill’s recent hybrid show—its first—surpassed previous buying market sales records, the company reports. The live part of the event was held Feb. 24 to 26 in Orlando, while the Spring Online Buying Market ran from Feb. 21 to March 4. Sales from the spring 2022 event were up 33 percent and beat Orgill’s last in-person Dealer Market held in Spring 2020 by 47 percent. More than 12,000 people attended. During the live event, Orgill celebrated its 175th anniversary.

Montreal-based Intertape Polymer Group reported a Q4 decline in net income of $8 million to $9.1 million. Revenues of $413.7 million were up 20 percent from a year earlier, due in part to higher selling prices. For the fiscal year, the company posted a $67.8 million profit on sales of $1.53 billion. California-based private equity firm Clearlake Capital Group has announced it will take IPG private in a $2.6 billion cash deal.

PRO Group and Distribution America, two U.S. buying groups for hardware distributors, have announced that they will operate as Hardlines Distribution Alliance (HDA) effective April 1. The new service management company will represent more than 65 member distributors across the U.S. Shari Kalbach, VP and COO of PRO Group, will be HDA’s inaugural president.

Cornerstone Building Brands has reached an agreement that will see it acquired by affiliates of Clayton, Dubilier & Rice. The private equity firm currently holds a 49 percent stake in North Carolina-based Cornerstone and will pay approximately $5.8 billion to acquire the remainder in an all-cash transaction, making Cornerstone a privately held company. The purchase is expected to close in the second or third quarter of this year.

ECONOMIC INDICATORS

Investment in building construction increased 3.4 percent to $19.1 billion in January. Residential construction spending rose 4.1 percent to $14.1 billion, a fourth consecutive monthly increase. Investment in single-family homes was up 2.5 percent to $7.6 billion, with Quebec and British Columbia behind much of the national gain. (StatCan)

U.S. retail sales for February reached $658.1 billion, an increase of 0.3 percent from the previous month. (U.S. Commerce Dept.)

OVERHEARD…

“We condemn Russia’s aggression against Ukraine and the huge human impact it is having for both Ukrainians and Russians. As such, we have made the decision to suspend operations. Couche-Tard has had stores in Russia for nearly three decades, and we are proud of our Russian team members and their dedicated service to local customers and communities.”
—Brian Hannasch, President and CEO of Couche-Tard, on his company’s decision to suspend its retail operations in Russia during the country’s war on Ukraine. 

The world watches as Ukraine is pounded by the invasion from Russia. The resulting devastation includes the largest migration of people since World War II, as bombing and attacks have extended beyond the borders to residential areas—including hospitals—with mounting civilian casualties.

Retailers within Russia are facing challenges of their own, as the citizens of that country cope with a war confounded by the lockdown on any information about the Ukraine conflict.

John Herbert, general secretary of both the European DIY Retail Association (EDRA) and Global Home Improvement Network (GHIN), passed along to Hardlines some notes from his members inside Russia. Here are excerpts from those messages:

“Dear John, I consider it very important to let you know that the absolute majority of the population of Russia does not support the unjust war against the fraternal nation of Ukraine. My colleagues and I consider this an act of aggression and a terrible mistake, which will lead to a catastrophe in Russia and in Ukraine and will have a negative impact of the global economy. In Russia, all conditions have been created for an absolute information blockage of the population.”

The retailer adds that the country’s information sources have been suppressed and protests squashed. “All television channels and radio channels are controlled by the state, and social networks are blocked. Any public activity or participation in a peaceful rally is punishable by imprisonment. All opposition positions are recognized as extremists.”

Another note takes aim at Putin himself. “Dear John, you already know the latest news. It hurts to realize that in the centre of Europe the blood of innocent people is shed, sacrificed by politicians for their geopolitical interests, although human life should be the most important value in the world. I would like to say that as much as I am proud to be Russian, it hurts me that Russian (Putin’s) decisions lead to such victims and horror. This is embarrassing and devastating ….”

Herbert at GHIN sent a message to his members, reinforcing the opposition to the conflict. He expresses his hope that solidarity among the United Nations, the European Union, and NATO will support “the astonishing courage and determination of the Ukrainian people” to bring an end to Putin’s regime.

And this email from another Russian retail leader: “Dear John, I feel pain, shame and fear for my country. I could not believe this can happen even in my worst nightmare … Awful and tragic. Putin is a mad devil. All my friends pray for peace. Praying is the only thing we can do now.”

That email’s closing sentiments may well reflect the feelings of the world while driving home the desperation of people half a world away: “Russians do not want war, Russians do not need war … I cannot take this!”

Ukrainian home improvement retailer shares deadly effects of Russian attacks

Information directly from Ukraine indicates destruction that includes the country’s largest home improvement retailer. John Herbert, general secretary of the retail associations representing home improvement retailers worldwide through the European DIY Retail Association (EDRA) and Global Home Improvement Network (GHIN), has shared communications he has been receiving from the front lines in Ukraine.

“I am in contact with the CEO of Epicentre, Borys Artari-Kolumb, our GHIN Ukraine member, who today informed me of the dramatic situation his company is experiencing in the war in Ukraine,” Herbert says, adding that it’s “the dominant home improvement retail company in Ukraine, with 59 home improvement hypermarkets and sales exceeding 2 billion euros,” or almost $3 billion. Epicentre’s giant stores exceed one million square feet in size.

Herbert goes on to share the note he received from Artari-Kolumb: “Thank you very much for your support. Two Epicentres have already burned down. One was hit by a shell and broke through the roof. My main task for today is to move the family to a safe place; I’m doing it. We are doing a lot of work to organize the logistics of humanitarian goods and food through our logistics and shopping centres!”

Artari-Kolumb ends his note with a message of positivity that will resonate for everyone: “I am sure that we will save the world!!!”

Fall buying shows to go live, Home Hardware relocates its market to Toronto

The announcement last week that Home Hardware Stores Ltd. is planning an in-person 2022 Fall Market marks the growing trend for Canadian shows to go live again. Home Hardware is not alone here: BMR Group and Federated Co-op are other dealer groups that will host live events come the fall.

But the shift has not been without its pivots. Home Hardware’s announcement drew added attention for the fact that it will move, for the first time in 23 years, from the company’s distribution centre in St. Jacobs, Ont. The show will take place at the Enercare Centre on Toronto’s CNE grounds from Sept. 23 to 25. Home’s last live show was in St. Jacobs in the fall of 2019 (shown here).

One of the reasons for moving the event, says a Home Hardware spokesperson, is that the company has outgrown the space. Add to that the need for physical distancing. Even as the pandemic begins to settle down, health regulations will have to be respected. The narrow aisles that typified the layout of the show inside the company’s warehouse in the past would make that impossible.

There are logistical considerations as well. The effort of clearing out the warehouse for the show has become too disruptive, especially as the company now has in place new equipment and technology, including a new warehouse management system.

Other groups have confirmed their events for the fall season. BMR’s Salon d’achat will be held at the Quebec City Convention Centre from Nov. 9 to 11, while FCL’s Buymart will be held at Prairieland Park in Saskatoon on Oct. 16 and 17.

The hybrid approach will be a common scenario for most of these shows. TIMBER MART will take the same approach when its next show goes live at the Toronto Congress Centre on Feb. 16 and 17, 2023.

“We are looking at how we can create a physical show with the virtual platform advantages,” says Bernie Owens, president of TIMBER MART. “Our plan is to incorporate some of the virtual platform features—or learnings—into the live event.”

He cites as an example the fact that a dealer attending live can link their business’s staff to a virtual meeting when visiting a vendor’s booth.

In addition to a virtual platform, Home Hardware looks forward to the live aspect to deliver the networking that people have been deprived of for two years. “The special event we are planning for fall 2022 will support those key market traditions while providing dealers with the best opportunity to develop a strategic buying plan that drives growth and profitability for their stores,” said Rob Wallace, vice-president, retail operations.

However, no amount of planning can anticipate the state of the world six months out. The viability of a live Home Hardware show, says the company, will be dependent on conditions and mandates related to the state of the pandemic at that time.

Canadian Tire continues to focus on its web strategy to drive sales. A key to that strategy is the promotion of its Triangle Rewards program. It’s tied in with a dedicated credit card, with 2.4 million new members joining the program in 2021, an increase of almost 50 percent.

Card users are easier to track and they help drive online sales. “Since 2019, we’ve doubled the number of customers acquired through digital channels,” said Greg Hicks, president and CEO of Canadian Tire, on a call to analysts during the release of CTC’s annual results.

He added that members spend more money when they shop at Canadian Tire than non-members, with average basket sizes that are 30 percent higher. And they are more likely to shop across Canadian Tire’s other banners, which include Sport Chek, PartSource, and Helly Hansen.

The program is also attracting younger shoppers. “A large portion of the 2021 cohort is made up of a younger customer demographic, a shift we’re very happy to see,” Hicks said, adding that “both our assortment and multiple shopping options are leading to the emergence of millennials as a key component of our Triangle membership customer base.”

M-D Building Products Inc. has created four business units and appointed division presidents to head them up. They are M-D Pro and Canadian Consumer, headed by Joe Comitale, M-D Consumer (headed by Kipp Collins), M-D Manufactured Solutions and Cardinal Aluminum (Mike Wasson), and Tower Sealants.

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Canadian Tire Corp. has suspended its Helly Hansen operations in Russia, including retail stores, e-commerce services, and product shipments. Store employees will continue to be paid during the temporary pause and the company will continue to honour its commercial obligations. Helly Hansen operates 41 retail locations in Russia with more than 300 employees.

TORBSA has added Pro-Depot in the Montreal borough of LaSalle as its newest shareholder member. Founded in 2013, ProDepot specializes in residential and commercial projects, offering masonry, concrete, vapour barrier, and other specialty restoration products.

Ikea has closed all 17 of its stores in Russia. It joins a growing list of companies evaluating their presence in the country as attacks continue on neighbouring Ukraine. Ikea says it has also stopped sourcing materials from Russia and Belarus.

TIMBER MART welcomed more than 1,400 dealers and vendors to its second Virtual Buying Show between Feb. 14 and 17. The show platform featured a virtual Store on the Floor where vendors presented a wide range of SKUs and store-planning ideas. A TIMBER MART area showcased all of the group’s offerings, including marketing programs and support, LBM distribution centres, TIMBER MART Essentials programs, lumber trading, and procurement.

Canadian Tire Corp. will invest $3.4 billion over the next four years “to deliver an improved omnichannel customer experience.” The company’s strategic growth plan includes an expansion of its private-label offerings. It also calls for a threefold increase in the Helly Hansen banner’s business.

SUPPLIER NEWS

Clearlake Capital Group has reached an agreement to acquire Intertape Polymer Group. The cash transaction is valued at some $2.6 billion. It is expected to close sometime in the third quarter, making IPG a privately held company. Shareholders will receive $40.50 per share in cash.

A panel of digital marketers at the latest DX3 conference identified sustainability and online sales among the top retail trends. The event, which gathers retail marketers from across Canada, was held virtually last week. Wes Wolch, SVP of marketing at Holt Renfrew, talked about the importance of reviewing product lines: the retailer discontinued selling furs last year and pulled all glitter and plastics from its merchandise.

ECONOMIC INDICATORS

The value of building permits decreased 8.8 percent to $10.1 billion in January, with residential permits down 11.6 percent to $6.7 billion. Most of the decline in the residential sector was in multi-family housing, but single-family intentions also decreased by 3.8 percent. British Columbia and Ontario drove the declines. (StatCan)

NOTED

More than 90 percent of the products sold at Canadian Tire are priced under $50. These lines represent 50 percent of the retailer’s sales. Items costing over $200 have driven one-third of Canadian Tire’s growth through the pandemic.

OVERHEARD…

“Our markets have always been much more than trade shows—they are an opportunity to build friendships, share ideas, and create deep connections across our dealer network and with our suppliers.”
— Rob Wallace, VP of retail operations for Home Hardware Stores Ltd., on the company’s return to a live buying event for its dealers this fall.

“I beg you not to consider all Russians guilty of this catastrophe. We did not call for this war. We are suffering together with the people of Ukraine, with whom we had been one country for 70 years. Almost all of us have relatives and friends in Ukraine.”
— Excerpt from an email which came originally from a retail home improvement executive in Russia.

The RONA store in Cornwall, Ont., has moved to the BMR banner. Owners Roy and Muriel Perkins made the switch based on the support they saw coming from head office, along with the group’s pricing terms.

Boucherville, Que.-based BMR Group has identified Ontario as a key target for expansion beyond the borders of its home province, driven by the leadership of CEO Alexandre Lefebvre. He took over exactly one year ago after incumbent Pascal Houle returned to BMR’s parent company, Sollio Cooperative, eventually becoming its CEO.

“Our expansion in eastern Canada goes smoothly with the addition of the Cornwall BMR Perkins store,” said Jonathan Gendreau, vice president of business development, marketing, and customer experience at BMR, in a release. “With recent stores joining us in Kemptville, Hawkesbury, and Winchester, it is clear that the BMR network is very welcoming to independent dealers looking for a local partner.”

The Perkins store was the very first store in Ontario to sign with RONA, back in 1993. It is celebrating its 50th anniversary this year. “We are very happy to be part of the BMR family and are eager to roll out the brand in our area,” said Roy Perkins, who noted “the expertise of BMR’s staff” as well as its product lines.

The new banner and facade will be finalized over the next two months. The 10,000-square-foot interior layout will get updated with the BMR colours, offering a selection of nearly 17,000 SKUs of hardware, seasonal products, and building materials.

First-ever hybrid Orgill buying show features special buys, model stores

Orgill held its Spring Dealer Market last week at the Orange County Convention Center in Orlando, Fla. The three-day in-person buying event was the hardware wholesaler’s first since the pandemic. An Online Buying Event took place as well, running from Feb. 21 to March 4.

In addition to being the first time Orgill hosted online and live buying events at the same time, the distributor celebrated another milestone—its 175th anniversary.

“We have all waited a long time to be able to gather together in person, but we have also learned a lot over these last two years about how to make these buying events as productive as possible for our customers,” said Boyden Moore, Orgill president and CEO. “We have found that there are distinct advantages to an in-person event that are very difficult to replicate online, but that our Online Buying Events also offered additional opportunities for our customers.”

At both the live Dealer Market and the Spring Online Buying Event, retailers could take advantage of promotional buying opportunities, shop for seasonal merchandise, and browse thousands of new products. The same vendors and products were on offer at both the in-person and virtual events.

The live event, however, offered further benefits, said Greg Stine, Orgill’s executive vice president of marketing and communications. “Being able to hold both in-person and live events extends the buying experience beyond what either a stand-alone physical show or online buying event can offer. This is really the way of the future.”

The latest market featured two concept stores, one in a traditional hardware format and one geared to pro customers. The Town & Country Hardware concept store represented a traditional hardware store at 13,000 square feet. It had a destination paint department and a seasonal flex area featuring outdoor living categories such as wild birds, grills, and outdoor power equipment.

The Lumberjack Home & Building Center covered more than 7,000 square feet with a contractor focus. It featured a contractor and services counter, a pro paint department, and a 1,000-square-foot rental area. It included newly updated ProSource assortments and new merchandising planogram backers.

The Exclusively Orgill Showcase, formerly Worldwide Sourcing, featured a 2022 Christmas booking program and patio warehouse program. The 33,000-square-foot showcase also hosted a lighting program, expanded faucet selection, big box comparisons, promotional endcaps, and pallet specials.

“By sourcing products direct from the manufacturers, Orgill is able to offer high-quality products with higher margins than the national brand equivalents,” said Jeff Curler, executive vice president of purchasing.

“It’s humbling to be part of a company that has such a rich history that stretches back 175 years,” Moore said. “We want to honour that history and the milestone, and not just celebrate the company, but also the customers that have made this kind of longevity possible.”

Women leaders at Home Hardware honoured

Two senior employees at Home Hardware Stores have been recognized as outstanding leaders in the 12th annual Top Women in Retail report. The lineup was released by the Women in Retail Leadership Circle.

Marianne Thompson (shown right), senior vice-president, merchandise, has been named a 2022 Top Women in Retail honouree, and Jessica Kuepfer, director of communications, has been recognized as one of this year’s Women on the Rise.

Top Women in Retail honourees are selected based on criteria such as position within their retail organizations, the scope of responsibility, career achievements, and involvement within the retail industry. Women on the Rise honourees are individuals who are ready to take the next step in their careers and become tomorrow’s industry leaders.

“I want to congratulate Marianne Thompson and Jessica Kuepfer on this well-deserved recognition,” said Kevin Macnab, Home Hardware’s president and CEO. “Home Hardware is fortunate to have such talented and skilled leaders who not only drive our business forward, but also empower and support those around them.”

Women in Retail Leadership Circle is an community of women executives at leading retailers and brands throughout North America. It has a mission to foster leadership development for members through events, content, and connections.

The National Hardware and Paint Association has announced the speakers who will address its 2022 All-Industry Conference. The event is being held in Las Vegas from April 5 to 7, concurrent with the National Hardware Show.

Kevin Hancock, president and CEO of Hancock Lumber, and Farnsworth Group president Grant Farnsworth have been tapped as the keynote speakers.

Hancock revisits and reclassifies several long-standing assumptions about business and discusses the social and economic benefits of creating an employee-centred company. The first mission of work should be enhancing the lives of the people who do it, he says. Hancock explains how starting the flywheel of corporate success with the employee experience creates enhanced results for customers, communities, and corporations.

Featuring recent data from his research firm, Farnsworth will highlight key supply and demand factors impacting the future of home improvement. The research presented will include actionable data on contractor and DIY brand preferences, and how shoppers use technology before online and in-store shopping.

A series of retail panel discussions will also be part of the NHPA’s conference content. Keep Your Pro Promises is designed for retailers who serve contractors and other home improvement professionals. This panel will outline how perks for loyalty can be the difference between a recurring customer and a long-term relationship.

How Retailers Are Taking on Tech will offer strategies for independent dealers to invest in strategic technology to attract and retain customers as their expectations have changed during COVID. The conference will also host its Young Retailer of the Year honourees, who will share their stories and their ambitions for building their businesses.

(Click here for the complete program and registration info.)

At Taiga Building Products, Michael Sivucha has been named COO, supporting CEO Russ Permann and overseeing Taiga’s Canadian operations, including distribution and the Envirofor manufacturing business. Sivucha joined Taiga in 2012 as panel supply manager and was promoted to VP of commodities in 2015.

Adam Moulton, dealer-owner of Woodstock, Ingersoll, and Allandale Home Hardware Building Centres in Ontario, has been named a 2022 Young Retailer of the Year by the North American Hardware and Paint Association (NHPA). The award, now in its 26th year, recognizes the individual achievements of retailers 35 years of age or younger in Canada and the U.S. Moulton was included in the Multistore Retailers category.

Julie Boucher has been appointed general manager of Matériaux Pont-Masson, succeeding Eric Bailey. Boucher joined the company in 2011 and was named deputy general manager a year ago. Bailey will continue in his role of sales management, commodity purchasing, and business development. Pont-Masson has been in business for 40 years and has eight locations, including two in eastern Ontario. It joined BMR last July.

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Peavey Mart will enter the Maritime market in September when it opens its first store east of Ontario. The 39,000-square-foot Bedford, N.S., location will be the farm and ranch retailer’s 90th overall.

At its recent AGM, Federated Co-operatives announced more than $9 billion in revenue and $495 million in earnings for fiscal 2021. That was up from $7.9 billion in revenue and $177 million in earnings in 2020. From those earnings, FCL will return $353 million to local Co-ops across western Canada.

Home Hardware is participating in Tim Hortons’ 2022 Roll Up To Win contest, which runs from March 7 to April 3. Tim Hortons customers will have the chance to win 10 Home Hardware eGift Card prizes valued at $5,000, and 1,000 Home Hardware eGift Card prizes valued at $100. This is the second consecutive year Home Hardware has participated in the contest.

Sollio Cooperative Group closed the fiscal year with sales of $8.3 billion—up 10 percent from the previous year—and a loss of $18.7 million compared to a surplus of $201 million in 2020. Sollio’s retail division fared best of its three major segments, thanks to a banner year for its BMR Group division. Demand for construction and renovation materials remained high, offsetting the impact of challenges ranging from supply chain pressures to rising container prices.

Gypsum Management & Supply Inc. reported a Q3 rise in sales of 53.6 percent to $1.15 billion. Earnings of $61.4 million, or $1.40 per diluted share, were up from $16.1 million ($0.37) in the comparable period of the company’s fiscal 2021. Strong residential markets boosted sales, as did GMS’s acquisitions of D.L. Building Materials in Quebec, California-based Westside Building Material, and AMES.

Lowe’s Cos. has unveiled “DIY-U by Lowe’s” in its U.S. stores. The DIY education community delivers live, on-demand home improvement skills training. The new program is a destination for how-to project workshops. DIYers of all skill levels can register for the monthly live streams. Two live streams are featured: an in-person kids’ workshop to teach DIY skills, and two adult in-person workshops in all stores nationwide.

SUPPLIER NEWS

Taiga Building Products reported Q4 sales of $412.5 million, up from $411.3 million a year earlier. Earnings fell to $10.3 million from $17.6 million in the comparable period of 2020. Sales for the year rose to $2.22 billion from $1.59 billion. The 40 percent increase was attributed to higher selling prices for commodity products. Net earnings for 2021 rose to $92.7 million from $70.8 million in the prior year.

Sika AG, a Swiss manufacturer of specialty chemicals, has acquired Sable Marco Inc. The Quebec City-based company makes mortars, cementitious products, and polymeric sand.

The 11th annual DX3 Canada Conference is this week. Canada’s largest retail, marketing, and technology event will be held virtually. Speakers include Cynthia Wong, associate VP for digital product management at Canadian Tire Corp., and Prabal Majundar, director of insights and analytics at Walmart Connect. Today only, up to 50 of our Faithful Subscribers can get free passes by using the code HARDLINEDX3VIP22 at checkout. Click here to register.

ECONOMIC INDICATORS

Capital expenditures on non-residential construction and machinery and equipment are expected to rise 8.6 percent to $298.2 billion in 2022, following a 10.4 percent increase in 2021. (StatCan)

Capital spending by the public sector should rise for a sixth consecutive year, reaching $116.8 billion (+9.7 percent) in 2022. The public sector’s share of capital spending on non-residential tangible assets increased from about one-third in the years preceding the pandemic to close to two-fifths in 2021 and 2022. (StatCan)

NOTED

The Retail Council of Canada has partnered with the Ontario Provincial Police and the Canadian Anti-Fraud Centre (CAFC) on an in-store and social media campaign to draw attention to the most commonly used gift card fraud tactics. Retailers will be encouraged to share the message as part of Fraud Prevention Month throughout March. According to the CAFC, $3.8 million in gift card losses was reported last year.

OVERHEARD…

“As a female leader in a traditionally male-dominated field, mentoring women and supporting their career development is something I am deeply passionate about.”
— Marianne Thompson, senior vice-president, merchandise at Home Hardware Stores, on being named a 2022 Top Women in Retail honouree.

The industry’s two largest players reported their fourth-quarter and annual results last week, both offering an indication of the continued buoyancy of home improvement retailing in North America.

Home Depot reported Q4 sales of $35.72 billion, up 10.7 percent, while comp sales grew by 8.1 percent. Earnings for the quarter came to $3.21 per share. While all of Home Depot’s divisions in the U.S. posted positive comps of 7.6 percent in the fourth quarter, the Canadian business actually achieved double-digit comps.

For the fiscal year 2021, the company earned $16.4 billion on sales of $151.2 billion, which were up 14.4 percent. Comps for the year were up 11.4 percent.

A day later, Lowe’s released its numbers, announcing fourth-quarter earnings of $1.21 billion, or $1.78 per share, up from $978 million ($1.32 per share) a year earlier. Sales rose to $21.34 billion from $20.31 billion. U.S. same-store sales grew by 5.1 percent.

For fiscal 2021, the company reported earnings of $8.4 billion on sales of $96.3 billion, up from $5.8 billion and $89.6 billion respectively. For the year, comp sales increased by 6.9 percent.

Marvin Ellison, chairman, president, and CEO of Lowe’s, noted on a call to analysts that performance in Canada continued to lag behind the U.S. However, he added, “The Canadian leadership team continues to drive productivity through proven technology and processes that have delivered great results in the U.S.”

Looking ahead, both companies are displaying caution as markets are expected to normalize somewhat post pandemic. Forecasting out its performance for 2022, Lowe’s expects total sales of $97 billion to $99 billion, with the occurrence of a 53rd week expected to increase total sales by between $1 billion and $1.5 billion. Comparable sales are expected to range from a decline of one percent to an increase of one percent.

Similarly, Home Depot expects sales growth and comparable sales growth to be slightly positive in 2022, while its operating margin is forecast to be flat compared to 2021.

Photo credit: Patrick Woodbury (Le Droit)

Yves Gagnon steps aside as CEO of Gagnon Group, passes along the baton

Groupe Yves Gagnon, representing a small but important chain of Quebec building centres, has changed leadership. After more than 49 years as president of the stores, Yves Gagnon has transferred the family business to his daughter Geneviève Gagnon, who, for the past 18 years, has run the stores as general manager. She now becomes the new owner and president.

The business started in 1973, when Gagnon bought his father’s general store in Chénéville, in the Outaouais region, and transformed it into a renovation centre. Today, the business, branded Gagnon – La Grande Quincaillerie, consists of five stores throughout the province. Those outlets represent more than 145,000 square feet of sales area, plus indoor and outdoor storage, and employ 350 people.

While Geneviève has been the general manager for the past 18 years, she has been involved in the business since she was a child. “It was a natural shift. I have been fortunate having my dad giving me all his confidence and the space to get involved over the past 18 years,” she told Hardlines. The transition has been “very smooth.”

“The success story of the family business would not have been possible without the professionalism of a strong management team and the dedication of all employees,” Yves added.

As if these achievements weren’t enough, Gagnon père et fille have both made a wider impact on the home improvement industry. Yves joined BMR Group in 1983, and in 1995 became president and CEO of the group. At the time, BMR consisted of 42 stores generating $200 million in sales. By the time he retired as head of BMR in 2014, the group had grown to 185 stores representing $1.3 billion in sales. Gagnon left after 20 percent of that group was acquired by La Coop fédérée (now Sollio Cooperative Group). La Coop went on to purchase BMR in its entirety in February 2015.

Geneviève Gagnon has been busy with a side hustle of her own. Two years ago she started up Evolution Distribution, offering an alternative source of supply for dealers in Quebec. That business, she says, continues to be fine-tuned, and now serves 20 stores in total, including the five Gagnon stores. “It’s going very, very well and we’re very, very happy with it.”

She explains how this business stands out for its members. “The main advantage of Evolution is that we can have our own identities, so we can be more involved in our local markets and the special needs of each dealer.”

Her father now intends to concentrate on his other love, raising Simmental cattle, a dual-purpose breed originally developed in Switzerland and Germany. In fact, Yves is considered one of the premier breeders of this type of cattle.

He concludes with an observation about the importance of a strong succession plan. “When you’ve built a business like I have, it’s not only about how to make it. But what to do after. We’re not stopping. We are continuing, because Geneviève took it over and there will be no big changes. The company will keep going further.” 

Companies should address mental health, and hiring pressures keep growing

Good business management includes good people management, something that has become a big challenge under COVID. Our sister publication, Hardlines HR Advisor, addresses issues concerning well-being and the care of staff. The latest issue, which was released last week, examines the impact of mental health in the workplace, focusing on tactical suggestions to help companies consider designing benefits that improve employees’ mental health.

According to retail consultant Sonya Ruff Jarvis, business leaders need to be fully involved to defuse the stigma of talking about mental health. Their actions have to be purposeful to truly open the lines of communication throughout the organization. It doesn’t help that, in today’s world, companies unintentionally add pressure by expecting employees to be constantly connected.

On top of all this, retail workers are considered to be the employee group suffering the most from mental health issues since the pandemic. Ruff Jarvis examines how to create a mental health care program that supports the needs of the individual and helps them feel financially secure, focusing on easy-to-measure tools.

The latest issue of Hardlines HR Advisor also looks at the hiring market and the pressure on recruiters to find hires who are familiar with this industry.

“We are seeing more clients request that we headhunt from specific organizations to try and acquire talent that’s already familiar with their category,” says Wolf Gugler, president of Wolf Gugler Executive Search. “This is especially true in the Canadian market, with the doing away of non-compete employment contracts.”

(Hardlines HR Advisor is a free monthly newsletter that focuses on issues of hiring, retention, workplace culture, and leadership. It’s designed specifically for retailers and suppliers in the home improvement industry. Click here to sign up for your free subscription now!)

Canadian retailers finished 2021 with $674 billion in sales, up 11.6 percent from 2020 with increases observed in all subsectors. This increase comes in the wake of a decline in 2020 when retail sales experienced the largest drop since the 2009 global financial crisis.

In volume terms, retail sales increased 8.4 percent in 2021.

Sales were up in all provinces in 2021, with Ontario up 9.1 percent and Quebec up 13 percent. British Columbia saw a 12.6 percent increase.

“Retail sales growth in 2021 was 11.6 percent, the highest in the last 5 years. While this looks good, there are a number of caveats,” warns retail consultant Ed Strapagiel. “First of all, the high sales gain in 2021 reflects a rebound from the previous year, when total retail sales actually declined thanks to COVID.”

He notes that the annual gain was also significantly boosted by automotive, especially gas stations—whose 2021 sales increased 24.4 percent due to rising gas prices. Furthermore, most of last year’s gain occurred in the first half of the year; by the time the fourth quarter rolled around, retail sales were up a more modest 6.4 percent year-over-year.

“If you just looked at Q1 and Q2, you’d be thinking, wow, happy days are here again. But, no, those huge gains don’t reflect how good things were in the first half of 2021, but how bad things were the year before when COVID hit.”

Much the same holds for the building material and garden equipment and supplies dealers subsector. Again, sales were strong in the first half of the year, up 36.5 percent in the first quarter and 24 percent in Q2. But by the latter half of the year, that growth had shrunk to 1.69 percent in Q3 and 1.71 percent in the last quarter.

This sector could face other headwinds, Strapagiel explains. “Another issue is inflation and that spending on building material and garden equipment and supplies may be somewhat discretionary. If you have to pay more for gas for your car, you might put off painting the house for one more year.”

He adds that an interrupted supply of some products could cool consumers’ renovation ambitions. “I’m saying don’t get too exuberant. There are still plenty of crocodiles in the swamp.”

At TIMBER MART, David Rapini has joined as VP of the group’s commercial division, effective March 1. Most of his 15 years in the building materials industry have been spent at CGC Inc. in sales and commercial management roles. Rapini succeeds Mark Finucane, who is retiring, and will report directly to TIMBER MART CEO and president Bernie Owens.

Regal ideas president Ernie Couillard retired at the end of last year after more than 20 years with the company. Andrew Pantelides, VP of marketing and business development, has assumed Couillard’s former responsibilities. At the same time, Joe Jacklin, director of marketing and contractor development, is adding Canada sales to his portfolio. Quinton Weber continues as U.S. sales director. Jim Topliss, director of commercial development, will be responsible for working with architects focusing on multi-family and commercial projects. Clifton Phelps is now the director of dealer
development. Leela Varanasi, a 23-year veteran of the company, rounds out the marketing team as marketing and sales coordinator. Melinda Okmanas has joined the company as marketing and brand development specialist.

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Walmart saw fourth-quarter revenues edge up 0.5 percent to $152.9 billion, taking a hit from the impact of divestments. Operating income came to $5.9 billion, with earnings of $1.28 per share. Full-year revenues were $572.8 billion, an increase of 2.4 percent. On a per-share basis, earnings came to $4.87.

BuildDirect.com Technologies Inc., the Vancouver-based online LBM seller, has closed a new round of financing. The combined $3 million is from Pelecanus Investments Ltd., Lyra Growth Partners Inc., and Beedie Investments Ltd. The loan will be used to advance BuildDirect’s strategy and for general working capital purposes.

Australian hardware chain Bunnings has rolled out a battery recycling service to all its stores. The program was launched in November following a pilot in the state of Victoria and now extends throughout the retailer’s store network.

SUPPLIER NEWS

Epicor has been named Do it Best’s POS vendor of choice for the co-op’s member-owners. The new partnership is part of Do it Best’s strategy to enhance members’ e-commerce services. They can now adapt their IT infrastructures with Epicor industry cloud platforms, including Epicor Propello, Epicor Eagle and Epicor BisTrack, and add functionality and business intelligence to their operations.

Resolute Forest Products Inc. has reached a deal to buy out Louisiana-Pacific Corp.’s 50 percent stake in two joint ventures producing I-joists in Quebec. Upon regulatory approval, the transaction, valued at $50 million, will make Resolute the full owner of Resolute-LP Engineered Wood Larouche Inc. and Resolute-LP Engineered Wood St-Prime Limited Partnership. At the same time, the company announced an agreement with Boralex for the acquisition of a cogeneration facility in Senneterre, Que. Both purchases are to be made in cash.

Henkel AG reported profits of 1.63 billion euros for 2021, up from 1.41 billion the previous fiscal year. Sales of 20.07 billion euros were up from 19.25 billion in 2020. The conglomerate, whose brands include Loctite and Persil, had previously released preliminary Q4 revenues of 5.05 billion euros.

ECONOMIC INDICATORS

Retail sales fell 1.8 percent to $57 billion in December. Lower sales at clothing and furniture stores drove the decline, which coincided with concerns over the spread of the COVID-19 Omicron variant in December. Following four consecutive monthly gains, sales at building material and garden equipment and supplies dealers fell five percent in December. (StatCan)

U.S. housing starts dropped 4.1 percent to 1.63 million units in December. Building permits for the month increased by 0.7 percent to 1.9 million. (U.S. Census Bureau)

Sales of existing U.S. homes rose unexpectedly in January to a one-year high. Closing transactions grew 6.7 percent from December to an annualized 6.5 million. The number of homes on the market meanwhile fell 2.3 percent to a record low of 860,000. (National Association of Realtors)

NOTED

In Canadian Tire’s fourth quarter, 40 percent of its sales across all banners were driven by the company’s owned brands. 

OVERHEARD…

“This program is particularly helpful for our trade and DIY customers, with the collection units being purposely designed to also receive power tool batteries.”
—Jen Tucker, director of merchandise for Australian big box chain Bunnings, on the rollout of a battery recycling program at its stores.

With a history of a century in the business behind it, iconic retailer Canadian Tire is going to market this year with messaging that draws from that history.

A TV advertisement was recently rolled out for the centennial that features segments from ads over the years. The ad ran throughout January and was sent out over social media. In addition, the company has recruited a number of Canadian celebrities to share their memories of their experiences at Canadian Tire—including a funny bit by Ryan Reynolds on Instagram.

The company has even added a scented candle to its line. Called Canada’s Scent, it smells just like a Canadian Tire store.

Canadian Tire got its start in 1922, when two brothers, John William Billes and Alfred Jackson Billes, bought a tire reseller in Toronto called Hamilton Tire and Garage Ltd. The company’s first Canadian Tire store was on Yonge Street in mid-town Toronto (where it stands to this day). With more than $18 billion in consolidated retail sales, it is one of Canada’s largest retailers, with 500-plus Canadian Tire stores located in every province and territory except Nunavut. These stores are independently operated and co-owned by Canadian Tire’s franchise, or associate, dealers. The dealers own the fixtures, equipment and inventory, while the head office owns the real estate.

Based on its sales of hardware and home improvement products alone, it is one of Canada’s top four home improvement retailers by sales volume (source: 2021 Hardlines Retail Report).

Watch for a series of anniversary-related sales throughout the year, which will be featured in Canadian Tire’s weekly flyers. The flyers also showcase nostalgic images aimed at reflecting 100 Years of Life in Canada.

Regional tool distributor sticks to his niche—and it pays off

“It’s been a very challenging, but successful, couple of years.”

When Todd Schoular reflects on recent events in his business, he could easily be echoing most people in the retail home improvement industry during COVID. Yet, as a specialty tool distributor whose focus is on the Ontario market, Square Deal has had its challenges, some of which predated the pandemic. The company is co-owned by Schoular, who is president, and his brother Matt, who is vice president.

“We rationalized about five years ago, shrinking our lines and cutting out vendors we were doing less than about $25,000 or $30,000 with,” he says. The move was a response to the impact of full-line wholesalers getting more competitive in Canada. That meant focusing on hand tools, power tools, and power tool accessories. That specialization relies on national brands, even as many groups are relying more and more on private-label or in-house brands.

One of the big names Square Deal did stick with was Stanley Black & Decker. Along the way, the company has been adding other tool brands, including Johnson, over the past three years. During that time, it also overhauled its website to enable dealers to more easily find—and order—products.

“We specialize in the tool department,” Schoular says. “Our goal is to provide a turnkey for dealers who want to change out their tool departments.” He cites, as a recent example, a Home Hardware dealer in central Ontario who took on a 72-foot section of power tools and accessories.

The company’s success has required growing the team. A new territory rep for northern Ontario, Heather Rodman, was hired last month. “With the increase in our product lines, we expect to hire another Ontario rep in the fall.”

Lowe’s Canada joins movement to eliminate plastic bags in stores

Lowe’s Canada is the latest retailer to ramp up efforts to eliminate plastic bags in its stores. It will gradually stop offering single-use plastic shopping bags in corporate stores and participating RONA affiliate stores by June.

The company, which started charging for these bags in the summer of 2018 to incentivize customers to adopt more sustainable shopping habits, is continuing its efforts to minimize the environmental impact of its operations. So far, the initiative has resulted in 24 million bags being eliminated at the store level.

“Over the last three years, charging for plastic bags has reduced the number of bags given out in our stores by 60 percent,” said Mélanie Lussier, director of external communications and sustainable development.

It’s part of an ongoing effort by retailers, big and small, to confront the ecological impacts of their businesses. Following a pilot program in some stores last summer, Walmart Canada has rolled out an initiative of its own to eliminate single-use plastic bags in all of its locations by this spring. The company says this will prevent almost 750 million plastic bags from entering circulation each year.

Similarly, Ikea continues to focus on its environmental action plan in an effort to reduce waste both in its store operations and with its products and services to customers.

But these shifts by the retailers require educating customers—and keeping them on board. In advance of the change, Walmart is launching a comprehensive customer awareness and education campaign to assist in the transition to a plastic bag-free experience. Shoppers are encouraged to bring reusable bags from home to carry their purchases. Reusable bags will also be available for purchase in stores if needed.

Awareness is something Lowe’s Canada has also focused on. “Our customers have had the time to adapt and progressively change their shopping habits, and we want to close the loop this spring by completely removing this type of product from our stores,” Lussier added.

While inflation takes hold and interest rates rise, the housing market remains a juggernaut.

According to the most recent statistics from the Canadian Real Estate Association (CREA), national home sales remained historically high in January, and that’s despite historically low levels of properties for sale.

Home sales edged up one percent between December and January, with the divide between local markets where sales were up and those where sales were down evenly split. Gains occurred in Calgary, Greater Vancouver, and Ottawa, with declines in Winnipeg, Montreal, the Fraser Valley, and Hamilton-Burlington.

“As expected, January was pretty quiet on the new listings side of things, with this year’s first big new supply numbers unlikely to emerge until the weather starts to warm up a bit,” Cliff Stevenson, chair of CREA, said in a statement. “The question is: will that supply be overwhelmed by demand as it was last spring, or will we start to see the re-emergence of some of the many would-be sellers who have been hunkered down for the last two years?”

Shaun Cathcart, CREA’s senior economist, would also like to see that happen. “The ideal situation between now and the summer would be that a huge surge of sellers comes forward looking to sell in the spring 2022 market,” he said. That would help increase sales, help frustrated buyers become homeowners, and perhaps result in some cooling off of house prices. “Those are all things this market needs. It really comes down to how many properties come up for sale in the months ahead.”

The number of newly listed homes dropped by 11 percent month-over-month in January, with a pullback in the GTA accounting for more than half of the national decline. There were just 1.6 months of inventory on a national basis at the end of January, tied with December for the lowest level ever recorded. The long-term average for this measure is a little over five months.

“Either way, it’s shaping up to be another interesting year for the housing market,” said Cathcart.

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Home Hardware will hold its 2022 Virtual Spring Market from March 7 to 14 under the theme “Elevate”. Dealers will get to learn about new buying opportunities, products, and category trends. “Home Hardware is focused on growth and investment to drive profitability for our close to 1,100 dealer-owned stores,” CEO and president Kevin Macnab said in a release.

TORBSA has added L.A. Building Supplies in Lethbridge, Alta., as its newest shareholder member. The company was founded last year after a longstanding distribution business was sold and rebranded. Under manager Barry Jordan, it supplies gypsum, lumber, steel framing, and insulation products for the commercial and residential markets.

Canadian Tire posted Q4 revenues of $5.1 billion, up 5.4 percent from $4.9 billion a year earlier. Net income rose to $535.7 million, or $8.40 per share, from $521.8 million ($8.04) in the comparable period of 2020. Comp sales at flagship Canadian Tire stores rose by 9.8 percent. For the full year, sales rose 9.6 percent to $16.3 billion. Earnings rose to $1.3 billion ($18.56 per share) from $862.6 million ($12.35) the previous year.

Lowe’s Canada has been named one of Montreal’s Top Employers by Mediacorp for the second year in a row. The annual competition celebrates employers in the Greater Montreal Area that stand out in their industry due to their exceptional work environments. Winning companies are evaluated based on a range of criteria including workplace and work atmosphere, health, financial and family benefits, vacation, training and skills development, and community involvement.

Ace Hardware Corp. in the U.S. reported record fourth-quarter revenues of $2.1 billion, up by $14.2 million or 0.7 percent from the comparable period of 2020. Earnings fell by $33.8 million to $9.3 million. For the full fiscal year, earnings rose by $13.1 million to $330 million, while sales of $8.6 billion represented a 10.7 percent increase from the previous year.

SUPPLIER NEWS

Orgill is set for its first in-person Dealer Market since the outbreak of the COVID-19 pandemic. The live Spring Dealer Market in Orlando will take place from Feb. 24 to 26, alongside a Spring Online Buying Event.

Three major U.S. trade shows will take place together in 2023. The National Hardware Show (NHS), NAHB International Builders’ Show, and NKBA’s Kitchen & Bath Industry Show will be held in Las Vegas, from Jan. 31 to Feb. 2.

West Fraser Timber Co. reported Q4 sales of $2.04 billion, down from $2.36 billion in Q3. Revenues rose 57 percent to $2.04 billion, from $1.3 billion in the comparable period of 2020. For the full year, the company reported earnings of $2.95 billion ($27.03 per share) on sales of $2.08 billion.

ECONOMIC INDICATORS

The actual (not seasonally adjusted) national average home price was a record $748,450 in January 2022, up 21 percent from the same month last year. The national average price is heavily influenced by sales in Greater Vancouver and the GTA, two of Canada’s most active and expensive housing markets. Not counting these two markets cuts almost $160,000 from the national average price. (Canadian Real Estate Assoc.)

NOTED

Orgill recently celebrated its 175th anniversary in Memphis with a tasting of two new house beers. Joe, a smooth lager, and Mike, a strong ale,  bore the names of Joe Orgill and Mike McDonnell. The two members of the company’s founding family presided over a boom in its growth beginning in the 1980s. The beers will be available during events at the upcoming Orgill Spring Dealer Market in Orlando, as part of the company’s 175th-anniversary celebrations.

OVERHEARD…

“Our sustainability efforts are integral to our business strategy and are part of a continuous improvement journey to protect the natural heritage of future generations.”
—Jean-Sébastien Lamoureux, senior vice-president, RONA affiliates, wholesale, and public affairs for Lowe’s Canada, on the company’s initiative to eliminate plastic bags at its stores by June.

The establishment of CanSave, the Barrie, Ont.-based specialty LBM distributor and manufacturer, had unlikely beginnings, and all because of the weather.

Co-owners Cully and Larry Koza share the story of the rise of their company in the latest episode of The History of Home Improvement, our podcast series. Listen to their story later this week.

The brothers operated an attic insulation company in the early 1980s called Can-Save Insulation. When a tornado blew through central Ontario in 1985, roofing repairs became a priority overnight. The Kozas were already installing WhirlyBird brand turbine roof vents as part of their insulation business. All of a sudden, the demand for these products soared and they began getting calls from dealers throughout the affected region. Larry and Cully explain how they took advantage of a new opportunity and quickly found themselves in the specialty building materials distribution business.

Responding to calamities has been a trademark of the company, something the brothers talk about in detail in this new podcast. Listeners will learn how CanSave positioned itself following the worldwide recession of 2008, overcoming supply chain issues back then to add manufacturing to the mix. You’ll also find out how they became the largest Ontario customer for one courier company—and why.

Over the years, the company kept adding products—and kept growing. “We took on lines that were too small for the commodity guys to ship and to sell and care about, and hard for the Americans to ship to small towns in Ontario,” says Larry. “Through those years we grew multiple times, into new warehouses, more racking, more sales guys, more product lines. It was a fun time.”

The podcast recounts the details of CanSave’s evolution from distribution into manufacturing, providing dealers with the products and the sales platform to compete in the kitchen cupboard and pre-hung door markets.

(Hear the full story of how the entrepreneurial spirit of two brothers drove CanSave from an insulation company to a specialty distributor, and then into kitchen and door manufacturing, in the latest episode of our podcast series, The History of Home Improvement. Click here to join our mailing list and get notified when this one goes live on Wednesday!)

Orgill’s upcoming buyer market will feature live and virtual opportunities

With Orgill’s Spring Buying Event less than two weeks away, Orgill customers and staff will have the chance to meet in person for the first time since before COVID. But thanks to an enhanced virtual component, these dealers will now have more ways than ever to interact and more opportunities to engage their own teams.

In a call to journalists last week, Orgill president and CEO Boyden Moore (shown here), with Greg Stine, EVP of marketing, shared some of the details of what to expect at the event, which will take place in Orlando, Fla., Feb. 24 to 26. It will also be a celebration of the company’s 175 years in business.

There’s been a lot of good response with the dealers coming to the live show at the same time as the virtual show, said Moore. “That’s the first time for us.”

Despite having a live event, the company has also recognized the value of keeping a virtual component. Moore pointed out that companies bringing their core teams to the live show can also have additional store members back home participate virtually. They can participate in online buying and join some of the show’s educational seminars remotely. “It really takes the experience of in-person attendance to another level and it lets us take the virtual buying to another level too.”

But the value of networking, connecting with Orgill reps and vendors, can’t be replicated virtually. Even buying online prevents dealers from experiencing the products first-hand. “Our online events have been very successful for showcasing new products,” said Stine. “But nobody could touch and feel the products. There’s a pent-up demand for that,” he said, which will be addressed at the upcoming show.

Along with this live event and the virtual show, Orgill will host three more virtual events through 2022, to give dealers more opportunities to keep abreast of the latest products and pricing specials.

Lowe’s Canada and other retailers promote jobs this spring

Lowe’s Canada launched its spring hiring campaign last week, accompanied by announcements that it seeks to fill over 5,000 positions in its Lowe’s, RONA, and Réno-Dépôt corporate store network.

Announcements of hiring initiatives by large retailers have long offered a feel-good publicity nod, reflecting a retailer’s contribution to the economy and the communities it serves. Under COVID, these campaigns have become much more than that.

The need for employees in every sector has become more acute as working from home, side-gigs, and general exhaustion from work that’s not considered personally rewarding have had their effect on the labour market. Add to that the challenge among front-line retail workers as they contend with customers who pose frustrating and oftentimes dangerous behaviour in their stores.

These announcements serve the added function of notifying local markets of the availability of jobs. At the beginning of February, Home Depot in the U.S. issued a release of its own about its drive to hire 100,000 people this spring. The jobs, both full-time and part-time positions, include customer service and sales, store support, freight, merchandising, and warehouse.

The messaging often stresses that joining a hardware or building supply dealer can be more than a job: it can be part of a meaningful career. The U.S. Home Depot message includes mention of Crystal Hanlon, who began her Home Depot career as a cashier and today leads the company’s northern division stores as president. Hanlon has even been named one of Fortune’s Most Powerful Women in business.

Home Depot Canada messaging in the past has included mentions of former Home Depot Canada president Jeff Kinnaird’s start as an associate in the yard at a Home Depot store in Richmond, B.C.

At Lowe’s Canada, the message is similar. “With the home improvement growth we have seen over the past two years, our network offers much more than just a job; it offers the perfect learning ground for anyone who wants to develop their skills and grow,” said Marc Macdonald, SVP of human resources, in a release.

Over the next two months, Lowe’s Canada will host hiring events at the national, provincial, and local levels, inviting job seekers to meet with members of its recruitment team. Available positions include receiving clerks, sales associates, and night crew members, along with administrative support and merchandising roles.

The actions of truckers protesting the imposition of vaccine mandates have dominated headlines, but industry observers have their concerns about the measure’s potential impact as well.

Both Canada and the U.S. began requiring proof of adequate vaccination last month for non-citizen truckers crossing the border. Unvaccinated Canadian truckers must complete a quarantine after arrival, but they’re permitted to make their deliveries before they do so.

The response to the mandate from public health specialists has been mixed. “A vaccine requirement for a select group of people I don’t think is highly likely to make a big, huge difference in the short-to-medium term,” Dr. Lynora Saxinger, an infectious diseases researcher at the University of Alberta, told CBC News.

On the other hand, a University of Saskatchewan epidemiology professor judged the policy scientifically sound. “More than any sector of workers, truckers are constantly mobile and cross many jurisdictions,” Dr. Nazeem Muhajarine told CBC.

The Canadian Trucking Alliance has taken pains to underscore the overwhelming uptake of the vaccines among its ranks. According to its figures, only around 10 percent of truckers are not fully vaccinated.

Even if the mandates were dropped in Canada, they will still exist in the U.S. “This regulation is not changing so, as an industry, we must adapt and comply with this mandate,” president Stephen Laskowski said in a statement.

Still, the raw numbers are enough to add even more strain to an already crunched supply chain. The Canadian Chamber of Commerce and the Retail Council of Canada are among the lobbying groups that have expressed concern about the mandate’s impact on logistics.

Heather Rodman is the new northern Ontario addition to stocking distributor Square Deal’s sales team, reporting to co-owner Todd Schoular. She was most recently with LavaGrip, and before that served as northern Ontario territory manager for EAB (Exchange-A-Blade).

Don Demens, president and CEO of Western Forest Products, has announced his intention to retire by March 31, 2023. Demens will continue in his role until a replacement is found.

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Despite delays, Canac says it remains on track to open a new store in Rivière-du-Loup, Que. The chain acquired the site in 2017 and at the time expected an opening as early as 2019. But environmental regulations, among other factors, caused the date to be pushed back. Canac still hasn’t set a date for the store’s opening but is aiming for 2023.

Lowe’s Cos. is rolling out a new private brand for housewares and décor. Origin21 (the name evokes the company’s founding in 1921) is designed with “the stylish, trend-seeking millennial consumer” in mind. It complements the company’s existing home décor private brand, allen + roth. Origin21 will initially include patio furniture and home décor accents alongside lighting, seasonal, outdoor living, and lawn and garden items.

SUPPLIER NEWS

Greater Montreal-based private equity firm Namakor Holdings is the new owner of Duchesne et Fils. Founded in 1927 and female-led since 1995, Duchesne is a family business, with general manager Audrey Duchesne-Milette representing the fourth generation at the reins.  It supplies products ranging from siding and roofing to nails and reflective insulation. Christian Dauphinais joins the company as president and CEO. Sylvain Toutant is chair of Duchesne’s board, succeeding Françoise Duchesne. Toutant has headed up a number of companies including Réno-Dépôt and the Société des alcools du Québec.

Spectrum Brands Holdings had an adjusted Q1 loss of $0.06 per share, compared to earnings of $0.83 a year ago. Net sales grew 2.9 percent year-over-year to $757.2 million. The results come on the heels of the company’s announcement that it will acquire the home appliances and cookware segments of Tristar Products Inc. The value of the transaction is $325 million in cash, plus additional milestone payments of $125 million in coming years. Tristar’s brands include PowerXL, Emeril Lagasse, and Copper Chef.

Masco Corp. has reported Q4 profits of $132 million. On a per-share basis, profits came to $0.55 and adjusted earnings to $0.67. Profits for the full year came to $410 million ($1.62 per share), with revenues of $8.38 billion.

Honeywell International Inc. saw Q4 earnings rise by five percent to $1.43 billion, or $2.05 per share, from $1.36 billion ($1.91 per share) a year earlier. Sales for the quarter edged down two percent to $8.66 billion as demand for N95 masks cooled.

Resolute Forest Products posted a Q4 loss of $128 million, more than double the $52 million it lost in the comparable period of 2020. The loss worked out to $1.64 per share, compared to a loss of 68 cents per share a year earlier. Sales rose however from $769 million to $834 million.

ECONOMIC INDICATORS

After the initial hit taken by the pandemic on all business sectors in 2020, U.S. retail made a strong recovery in 2021. The year saw twice as many store openings as closures. The country’s major retailers opened more than 8,100 new locations in 2021 and closed 3,950. Dollar and discount stores represented nearly half of those new openings.
(U.S. Commerce Dept.)

NOTED

Consumers spent $871.03 billion online with U.S. merchants in 2021, up 14.2 percent year over year from $762.68 billion the prior year, according to research from Digital Commerce 360. Amazon and its third-party merchants represented 41.8 percent of digital spending in the U.S. in 2021 compared to 40.7 percent in 2020.

OVERHEARD…

“Rivière-du-Loup is a market we’ve been looking at for a long time and we’re really eager to establish ourselves there.”
—Charles Laberge, who heads up construction and development for Canac. The Quebec-based retail chain has been adding stores regularly in recent years. Canac currently has 31 stores.

Canadian Tire Corp. has announced that current chairman Maureen Sabia will retire from the board of directors after the company’s annual shareholder meeting on May 12.

Sabia’s 37-year tenure on the board has been surpassed only by that of Martha Billes, CTC’s controlling shareholder and the daughter of Alfred Billes, who, with his brother William, founded Canadian Tire almost 100 years ago.

Sabia’s successor is J. Michael Owens, who has been a director since 2020 and is currently the chairman of the board’s brand and corporate responsibility committee. Owens is a fellow of the Chartered Professional Accountants of Ontario and a former partner at Deloitte LLP.

Sabia started as a lawyer after graduating from the faculty of law at the University of Toronto—one of only three women in her year to do so. Since 1986, she has held a variety of board positions. She worked on the board of the Export Development Corp. and was made chair in 1991. She’s also served on the boards of O&Y Properties Corp., Gulf Canada Resources, Hollinger Inc., Skyjack Inc., and Laurentian General Insurance.

Sabia has served on committees and boards for the University of Guelph and Brock University, both in Ontario, as well as several hospitals and charitable organizations. Not surprisingly, she was named an Officer of the Order of Canada in 2011.

She is not the only member of her family to hold huge power over the direction of home improvement retail in this country. Her brother is deputy finance minister Michael Sabia. A decade ago, as president and CEO of Caisse de dépôt et placement du Québec, which was a major shareholder in RONA inc., Sabia refused to support then-CEO Robert Dutton’s plan to take RONA private. That move would have turned control back to the dealers.

“Maureen’s track record of strategic thinking and focus on execution has been instrumental in helping transform CTC into the strong and successful company it is today,” CEO and president Greg Hicks said in a release.

Associations cope with restrictions, bad timing as they plan their next shows

When the Atlantic Building Supply Dealers Association (ABSDA) announced the cancellation of its 2022 Building Supply Expo recently, it eliminated one of the few remaining general buying shows for dealers. The event was set for March 9 and 10 at the Halifax Convention Centre. Organizers explained that they were not confident public health restrictions would be lifted in time to allow the expo to take place.

To complicate the situation even further, no other dates were available later in the spring in which to rebook the show, says ABSDA president Denis Melanson. As a result, the ABSDA board saw cancellation until next year as the only option.

Next year’s show is again planned for March. In the meantime, the association is working to reimburse vendors that have paid for booth space for this year’s event.

The other leading general buying show for the industry, the Western Retail Lumber Association’s Building & Hardware Showcase, has already been rescheduled for March 31 and April 1, after being pushed out from its original dates in January. That show will be held at the RBC Convention Centre in Winnipeg.

According to Liz Kovach, president of the WRLA, several activities and events are planned to make that show a success. HGTV personalities the BroLaws will give a workshop called “the Rethink the Contractor,” while a full day will be dedicated to building science and energy efficiency. Panel discussions will address topics such as labour issues.

“I am working on a couple of other sessions, but don’t have the details quite finalized,” Kovach adds. She expects to have more information in the next couple of weeks.

For Melanson at ABSDA, his association’s year-end is in March, so he says he won’t have time to come up with any other events or activities, virtual or otherwise. He hints that he’s considering “an interesting activity” for the fall, but won’t disclose details yet.

Melanson looks forward to bringing the industry together again next spring. “We’re hoping to have a fantastic show since people are so very eager for face-to-face interactions again.”

Lowe’s ups its contractor game with enhanced range of services

Lowe’s Cos. has launched a new loyalty program for pro customers in the U.S. The Lowe’s MVPs Pro Rewards and Partnerships Program builds on the Lowe’s for Pros loyalty plan introduced last year. It includes many benefits similar to what’s already available to Canadian dealers through Lowe’s Canada’s VIPpro.

Lowe’s MVPs can earn rewards on their purchases, track their orders with a dedicated mobile platform, and get deals on items such as paint and paint accessories.

Users of the MVPs program also get the chance to win big-ticket prizes like Ford F-Series trucks. In Canada, VIPpro members have similar opportunities throughout the year as well as during specific events. Last fall, the PROvember campaign in support of men’s health saw more than $50,000 worth of prizes given away in Canada, including three covered trailers.

A Bonus Points system is soon to be added to the MVPs program to allow participants to redeem additional rewards. In Canada, VIPpro members already enjoy instant five-percent discounts across the board, with an additional five percent off for paint and accessories.

“Lowe’s MVPs Pro Rewards is another big step in Lowe’s continued Total Home strategy when it comes to the important pro customer,” Tony Hurst, SVP for pro services and international (and former head of Lowe’s Canada), said in a release.

“We are committed to a true business partnership mindset to help pros as they grow their businesses and their futures.”

One feature of Lowe’s MVPs program not yet offered in Canada is a suite of business support services designed to help pro entrepreneurs manage their back-of-house operations. In an email to Hardlines, a Lowe’s Canada representative confirmed that plans are in the works to bring these services north of the border.

While loyalty plans can be a big draw for retail customers, Home Hardware Stores will no longer be loyal to its service provider in this category. The company is ending its partnership with the Aeroplan rewards program as of March 31. After that, customers will still be able to redeem existing points, but only for Home Hardware gift cards.

As for how the Aeroplan program will be replaced, the company would not say, except to indicate that “a new loyalty program will be introduced in the coming months.”

Nor did Home Hardware reveal whether its new plan would be with another existing provider. Aeroplan’s big competitor has historically been Air Miles. But that plan is already partnered with TIMBER MART at the independent dealer level, and with Lowe’s Canada at the national corporate level. It also has an agreement with Kent Building Supplies, which has 48 stores throughout Atlantic Canada. Kent, a division of J.D. Irving Ltd., has piggy-backed onto Air Miles’ larger partnership with Irving gas stations.

Other retailers are looking for homemade programs. Using a dedicated credit card lets customers collect points automatically with every purchase, a route Canadian Tire has taken as it tries to phase out its paper Canadian Tire money.

Home Depot Canada has a commercial credit card for its contractor customers. Besides giving discounts off regular pricing, it earns the user Home Depot electronic gift cards every quarter. The card is powered by Citi Retail Services.

This approach could well be the direction Home Hardware takes. While it no longer has a dedicated Home Hardware credit card—it was terminated at the end of 2016—Home Hardware does offer a bulk gift card program. The cards are aimed at contractors, charities, and other organizations as a way for those groups to incentivize or reward their employees and local communities.

Julie McLaren has joined RDTS as territory manager. She brings 20 years of experience in various merchandising, business development, and management roles in retail and manufacturing.

Wolseley Canada has appointed Harry Kandilas as director, showrooms. Kandilas brings more than 20 years of sales leadership experience in the plumbing and building material industries, most recently as national sales manager at Zurn Industries. He also managed Canadian business for Belanger Faucets and American Standard. He reports to president Sébastien Laforge.

DID YOU KNOW…?

… that we are always looking for new products to feature in our publications? That’s right—tell your marketing manager! Our magazine, Hardlines Home Improvement Quarterly, is mailed to 11,000 dealers and managers four times a year. And the Hardlines Dealer News email newsletter gets emailed to thousands of people every month. We include a featured products section in both HHIQ and Dealer News. If you have new products, send them to our product editor, Geoff McLarney!

Princess Auto made Forbes’s 2022 list of Best Employers in Canada, coming in at number 43. Forbes partnered with market research firm Statista to compile the annual list by surveying more than 10,000 Canadians working for businesses with at least 500 employees.

The application period is now open for Federated Co-operatives Ltd.’s Co-op Community Spaces program. A total of $1 million is available this year to support capital projects dedicated to recreation, environmental conservation, and urban agriculture in western Canada. Visit FCL’s website for more information.

Lowe’s Canada is launching its spring hiring campaign to fill over 5,000 positions in its Lowe’s, RONA, and Réno-Dépôt corporate store network. Over the next two months, the retailer will be hosting national, provincial, and local hiring events where job seekers will have the chance to meet with members of Lowe’s recruitment team.

Inflation and challenges with sourcing product have obliged Montreal-based budget chain Dollarama to sell some products for as much as $5. That hasn’t hurt its sales. The company generated $860 million in profits in 2021, even with store closures and staff turnover.

SUPPLIER NEWS

Stanley Black & Decker reported Q4 revenues of $4.1 billion, up two percent from a year ago. Earnings amounted to $328.6 million. Adjusted for one-time gains and costs, that came to $2.14 per share. Full-year profits for fiscal 2021 totalled $1.68 billion, or $10.16 per share, with revenues of $15.62 billion.

ECONOMIC INDICATORS

The total value of building permits decreased 1.9 percent to $11.2 billion in December, with declines in both the residential and non-residential sectors. The total value of residential permits decreased 2.7 percent to $7.7 billion. Multi-family permit values declined 6.0 percent to $4.1 billion, with British Columbia (-20.3 percent) responsible for most of the national decline. Construction intentions for single-family homes were up 1.3 percent to $3.6 billion, led by Quebec (+14.6 percent). The total value of commercial permits fell 7.9 percent to $1.9 billion. Construction intentions in the industrial sector rose 8.4 percent to $762 million. (StatCan)

Investment in U.S. construction edged up by 0.2 percent in December, after a 0.6 percent lift in November. Economists polled by Reuters expected on average an increase of 0.6 percent in December. Expenditures on private construction rose, with a particularly strong showing in the single-family segment, up 2.1 percent. That wasn’t enough however to offset a sharp downturn in public projects. (U.S. Commerce Dept.)

OVERHEARD…

“It remains a store that’s very popular. It’s a store that’s accessible: they’re everywhere. I think it’s a beautiful business model.”
—Philippe Bertrand, co-founder of consultancy Amplio Stratégies, commented in Le Journal de Montréal on the unflagging success of Montreal-based Dollarama, despite rising prices in its stores.

For the third year in a row, Home Hardware Stores Ltd. has made Forbes’ list of Canada’s Best Employers, compiled in association with Statista Inc.

The list is based on a survey of more than 10,000 Canadian employees working for companies employing at least 500 people in Canada. Home Hardware landed in number 227. “Being recognized by Forbes speaks to Home Hardware’s culture and our commitment to providing a welcoming environment where everyone feels valued and supported,” Scott Bryant, VP for human resources, said in a release.

The recognition follows closely on another, more industry-specific, kudos received by the company just one week earlier. It was named the No. 1 hardware retailer in Leger’s 2021 Ontario WOW study. Leger, the largest Canadian-owned market research firm, surveyed more than 13,000 shoppers across the province.

“We are honoured to be recognized for best in-store experience in the hardware category and flattered to be chosen by our valued customers,” CEO and president Kevin Macnab said in a release.

In partnership with the Retail Council of Canada, Leger evaluated the performance of 153 Ontario retailers in 20 different sectors. Customers were surveyed on 20 key dimensions, such as staff courtesy, competency and attentiveness, efficiency at checkout, and store layout and ambiance.

Canac expands its distribution facilities, continues to add new stores

Canac is investing $30 million in the construction of a store and fulfilment centre in Lévis, on the south shore of Quebec City.

The privately-owned chain of building centres acquired two lots in December, one with an area of more than 600,000 square feet. The delivery station will comprise more than 100,000 square feet of warehouse space, while the store will open on a neighbouring property at a date to be determined.

The distribution centre is the priority for the company, says Canac’s marketing director, Patrick Delisle. He expects that facility to be operational by the end of 2022 or early 2023. “As for the store that is planned to go with it, it will probably take a few years. We already have Contrecœur near Montreal planned out for the end of 2022.”

The new delivery centre will enable Canac to take the pressure off its already overburdened delivery centre on the north shore, where Canac’s head offices are located.

“For many years now the old delivery centre hasn’t been able to keep up with our growth,” Delisle told Hardlines. The new location responds to a need to shorten delivery distances and overcome the increased volume of traffic over the two bridges that span the river at Quebec City. “Now with DCs on both sides of the St. Lawrence River, we can serve more clients and go a little farther.”

The latest expansion efforts tied in with the completion of a second building at Canac’s Drummondville, Que., distribution centre. The 432,000-square-foot structure is geared toward seasonal products and building materials. It sits on a million-square-foot lot that Canac purchased in 2019, situated in an industrial park opposite a DC Canac already has there.

The company continues to add stores as well. The planned opening of the store in the city of Contrecœur, which began construction last summer, follows the opening in the spring of 2021 of Canac’s 31st store, in La Prairie, Que. The 40,000-square-foot store has a 10,000-square-foot outdoor garden centre and a 24,000-square-foot lumber yard. According to Delisle, that store has been “a great success.”

The latest edition of HR Advisor examines what’s ahead for recruitment

The latest issue of our sister publication, Hardlines HR Advisor, came out last week. In this issue, we look at recruitment trends, prioritizing mental health in the workplace, and planning for staff reductions. To help companies shape their expectations for hiring in the year ahead, we spoke with some of this industry’s top executive search specialists.

Wolf Gugler of Wolf Gugler Executive Search has experienced a strong start to the year. He’s conducted searches on behalf of his home improvement customers in the roles of sales, operations, and sales leadership.

But despite the apparent buoyancy in the marketplace, one headhunter, Stephen Borer, partner at DMC Recruitment Group, warns that the climate is “challenging,” and “the most difficult recruitment market for an employer that I’ve ever seen in 25 years.”

Matt Frost, a recruitment consultant at Lock Search Group, adds that the velocity of hiring has increased as well. Companies looking for top people will have to move fast to secure them before they get taken by another company—or even another sector. “If you have a candidate that meets all of your requirements, the recommended approach is to not waste time getting to the offer stage.”

Another topic examined in the latest edition of Hardlines HR Advisor is the importance of mental health awareness and supports within your company. Regardless of size, many companies can show flexibility and empathy towards employees struggling with mental illness symptoms—without sacrificing profits, says retail marketing consultant Sonya Ruff Jarvis.

“Company profits can be maintained by acting on this shift in the workplace,” she says. “Those profits diminish with low productivity, poor quality of work, job dissatisfaction, and low loyalty, which can all result in critical negative profit measurements such as high absenteeism and turnover.”

The people side of the business has become more important than ever under COVID. Hardlines HR Advisor offers support for your company’s HR needs every single month.

(If you’re not already receiving HR Advisor, click here to sign up for free!)

RONA Home & Garden in Kelowna serves a population of nearly 250,000 in and around British Columbia’s fastest-growing municipality. It was the area’s first home improvement big box when it opened in 1995 under the Revy banner.

Last fall, it was recognized with its second Outstanding Retailer Award and third nomination. Matt Wachter, store manager of RONA Kelowna, accepted the ORA for Best Large Surface Retailer at the 25th Hardlines Conference, held in Niagara-on-the-Lake, Ont.

Since the store first won that award in 2016, its growth has continued relentlessly. It has posted double-digit sales increases for the past nine consecutive years.

While a family-owned retail operation must overcome its challenges, Wachter’s store requires him to oversee a small army of staff. He credits the 200-plus people who work at the store with making it possible for the location to thrive in a competitive environment that includes four other big boxes within a 10 km radius, along with a lumberyard across the street and various local independents.

“We hire the best, invest in their skills, and we want them to stay with us for many years,” says Wachter. It’s a strategy that’s paid off: the average employee has been with the store for 15 years. Customers’ testimonials rave about the personalized service they have received there.

Staff training is a particular area of focus at the store. Instead of being relegated to a quarterly or even a monthly event, it takes place every week, usually in the form of online orientation in product knowledge.

Along with independent dealer-owners, managers of corporate stores like Wachter’s comprise one of the two main groups of retailers in the industry Hardlines serves. In addition to recognizing their achievements through the Outstanding Retailer Awards, Hardlines tells their stories through our network of publications. The latest edition of our print magazine, Hardlines Home Improvement Quarterly, examines the best practices of all our Outstanding Retailer Award winners for 2021.

(HHIQ is free to dealers, managers, and their staff! Suppliers can subscribe for just $90 per year!)

The Home Depot has announced the appointment of Edward (Ted) Decker to succeed Craig Menear as CEO, and his election to its board of directors, both effective March 1. Decker, who joined the company in 2000, assumed the newly created role of COO in October 2020, at which time he took over as president from Menear, who continues as chair of the board.

Derek Matysik has joined Footprint Products Ltd. as vice president of sales and marketing. He brings 29 years of experience in the hardware and home improvement industry to his new role. His previous roles include stints at Black & Decker, Campbell Hausfeld, and most recently ShopVac.

DID YOU KNOW…?

… now is a great time to update your subscription to Hardlines? You can manage your team’s subscriptions easily, adding new personnel and removing names as needed. Click here now for instructions on how to update your billing information, upgrade your subscription, and change your subscription users. Please email michelle@hardlines.ca if you need any help. We want you to stay up to date!

U.S. farm and ranch retailer Tractor Supply Co. reported that its Q4 sales increased 15.3 percent to $3.32 billion from $2.88 billion a year prior. Comp sales rose 12.7 percent, compared with a 27.3 percent hike in the previous Q4. Net income soared by 62.9 percent to $221.3 million from $135.9 million. Diluted earnings per share increased 67.8 percent to $1.93 from $1.15 in the comparable period of 2021.

SUPPLIER NEWS

Richelieu Hardware reported Q4 sales of $398.2 million, compared with $319 million from a year prior, an increase of $79.2 million, or 24.8 percent. In Canada, sales amounted to $260.1 million, an increase of $45.1 million, or 21 percent, compared to Q4 of 2020. Sales to hardware and home improvement retailers reached $45.1 million, up 10 percent. Net earnings were $0.79 per share, a 64.6 percent surge from 2020.

3M Co. reported Q4 earnings of $1.34 billion, or $2.31 per share, down from $1.41 billion (or $2.41 per share) in the comparable period of 2020. Net sales saw a 0.3 percent uptick amid high demand for products such as N95 masks, of which 3M is the largest U.S. manufacturer.

Western Forest Products has reached an accord with four Vancouver Island First Nations that will see logging deferred on 2,500 hectares of old-growth forest in the area. Na̲nwaḵolas Council, which consists of the Tlowitsis, K’ómoks, Wei Wai Kum, and We Wai Kai nations, signed a “joint planning and reconciliation agreement” with WFP under British Columbia’s logging deferral plan, announced in November 2021.

ECONOMIC INDICATORS

Retail sales were up 0.7 percent to $58.1 billion in November. The increase was led by higher sales at gasoline stations, up 4.9 percent, and building material and garden equipment and supplies dealers, which were up three percent. Food and beverage stores gained by one percent. Given the rapidly evolving economic situation, StatCan is providing an advance estimate of retail sales which suggests that sales will have decreased by 2.1 percent in December. (StatCan)

Sales of new U.S. homes rose in December by 11.9 percent to an annualized rate of 811,000 units. That was their highest level since March 2021. November’s sales rate was revised downward to 725,000 units, from the initial estimate of 744,000 units. A boom in sales in the South and Midwest in December more than compensated for a slide in the Northeast. (U.S. Commerce Dept.)

NOTED

Quebecers must now show proof of vaccination to enter large-surface retail stores. Those retailers are concerned that the mandate will aggravate staff shortages and create competition that favours smaller retailers. Hardware stores were previously included in essential business exemptions throughout the pandemic.

OVERHEARD…

“We’re not going to ask someone who’s dealing with water damage [in their home] if they’re vaccinated or not. It’s really frustrating to have to manage clients’ living situations like that. It’s not our job.”
—Patrick Delisle, head of marketing at Canac, as told to Radio-Canada, reflecting the Quebec industry’s frustration over the requirement in that province that large-footprint stores demand proof of vaccination from their customers.