Suppliers and retailers from across Canada gathered last week to honour the retail home improvement industry’s best hardware and building supply retailers.

The occasion was the 30th Annual Outstanding Retailer Awards, presented during a Gala Dinner at the annual Hardlines Conference. The event was held Oct. 18 at the Queen’s Landing Hotel in Niagara-on-the-Lake, Ont.

Retailers were honoured in eight categories covering the range of hardware and home improvement retailing formats. This year’s winners were:

• Best Hardware Store – Quincaillerie Jean Denis (Home Hardware), St-Raymond, Que. Sophie Denis and Philippe Moisan, Owners. Award sponsored by JRTech Solutions.
• Best Building Supply or Home Centre under 15,000 square feet – Grunthal Lumber (Castle), Grunthal, Man. Mel Funk and Murray Rempel, Owners; Mike Bourgeois, Manager. Award sponsored by Johns Manville Canada.
• Best Building Supply or Home Centre over 15,000 square feet – Grande Prairie Home Hardware Building Centre, Grande Prairie, Alta. Kevin Gillman, Manager. Award sponsored by Trex.
• Best Contractor Specialist – Pierre Naud Inc. (BMR), Trois Rivières, Que. Marc-André Lebel and Philippe Lebel, Owners; Jessica Bastarache, Manager. Award sponsored by the North American Hardware and Paint Association (NHPA).
• Best Large Surface Retailer – Lowe’s Pickering, Pickering, Ont. Angelo Tzogas, Store Manager. Award sponsored by the National Hardware Show.
• Retail Spirit Award – Gander Bay Building Supplies (Castle), Victoria Cove, Gander Bay, N.L. Deborah and Todd Brinson, Owners. Award sponsored by Kohltech.
• Best Young Retailer – BMR Paulin Moisan Inc., St-Raymond, Que. Marianne Moisan and Mathieu Moisan, Owners. Award sponsored by Acceo.
• Marc Robichaud Community Leader – RONA Fort Erie, Fort Erie, Ont. Dennis Doidge, Owner; Jeff Hill, Manager. Award sponsored by BMF.

The winners were carefully chosen from a field of high-quality nominees submitted from every part of Canada. The winners stood out within this elite group thanks to their ability to exceed in the areas of good business practices, customer relations, innovation, and niche marketing.

“The past two and a half years were marked by a level of disruption not seen in this industry in our lifetime,” said Michael McLarney, president of Hardlines Inc. “In a field of entries where the bar was already raised high by pandemic conditions, this year’s winners shine bright.”

Hardlines Conference reunites the industry in Niagara-on-the-Lake

The 26th Annual Hardlines Conference hosted almost 150 delegates at the Queen’s Landing Hotel in Niagara-on-the-Lake, Ont., last week. The in-person gathering was supplemented by a large number of delegates watching virtually from their devices.

The two-day event at the Queen’s Landing Hotel represented a veritable who’s who of the industry, with attendees from BMR, Castle, Federated Co-op, Home Hardware, Lowe’s/RONA, Peavey Industries, and Sexton Group, among others. Virtual delegates included top execs from Home Depot and RONA along with key independent dealers. The vendor community was well represented on both the LBM and hardlines side of the industry, with a number of wholesalers, sales agents, and distributors in attendance.

Presentations by senior executives from BMR, Lowe’s Canada, and Sexton Group were followed on stage by thought-provoking presentations by a well-known housing and land economist and one of the country’s leading retail gurus.

The traditional opening pub night, held in a nearby Irish pub and hosted by RONA, was packed, noisy, and opinionated. For many delegates this was their first national gathering in our industry in almost three years.

Alison Fletcher, owner of Cookery—a kitchenwares retailer with stores in Toronto and Montreal—opened on day one with a no-holds-barred description of the career battles she has gone through in several decades in the food and beverage industry. Cookery’s charismatic owner urged delegates to follow their dreams—and the data.

Eric Palmer, VP and general manager of the Sexton Group, gave a personalized overview of the dealer-focused organization founded in 1985 by industry icon Ken Sexton. Palmer talked about his own career path through the organization. He also referenced the recent sale of the Sexton Family of Companies to an investor group, PFM of Regina, Sask., in a deal that is expected to close later this fall.

Altus Group economist Peter Norman, no stranger to Hardlines Conference delegates (he has appeared at the conference more than a dozen times), was blunt at the outset of his presentation. “Uncertainty and caution are what we’re going to talk about this morning,” he warned. “But also some good things,” he promised. The upside? Canada is not likely to experience a housing crash, Norman said. But interest rate hikes will likely mean the heady times for home improvement retailers are over.

Zaida Fazlic, VP people, culture and change management at Taiga Building Products, focused on the skills required to be a good leader. She talked about collaborative leadership and servant leadership, which both require listening carefully and authentically to the feedback and needs of employees.

Tony Cioffi, president of Lowe’s Canada, outlined how his organization, which includes the RONA and Réno-Dépôt banners, was able to lead the industry in converting to e-commerce during the early days of COVID. He gave some detailed insights into how his banners are not resting on their laurels, but tooling up for any future interruptions from future public health crises.

Charles Grégoire-Béliveau, VP merchandising at BMR, took delegates through a tour of what he called “BMR 2.0.” The Quebec-based group is continuing to expand in Ontario and the Atlantic Provinces as well as aggressively signing new dealers in its home province.

Rob and Joanne Lawrie, winners of an Outstanding Retailer Award at last year’s conference, talked about their company’s growth from a single store in Annapolis Royal to seven Home Hardware stores today. Rob had straight-talking advice for anyone who thinks expansion should stop once an extra store is added to their single one. “Do not stop at two stores,” he said. “Do not do it!”

Doug Stephens, known as the Retail Prophet, was back from last year, too, by popular request. He explained why our supply chains became so broken by the pandemic and offered a prescription to avoid future fractures to supply that includes a change in philosophy from always seeking the lowest landed cost for products.

Starting next year, the Hardlines Conference is going on the road. Our 27th annual conference will take place at the Chateau Whistler in Whistler, B.C., Oct. 17 and 18, 2023.

Lowe’s Canada’s president talks to delegates about the changing face of retail

The pace of change in retail has been accelerating, Tony Cioffi told the 2022 Hardlines Conference last week, and it’s about to ramp up even more.

“It’s really important that we adapt to change faster than we have ever adapted before,” Lowe’s Canada’s president said in his address. Flexibility in the way consumers shop is one example. “Today they might want buy-online-pick-up-in-store. Tomorrow they might want to buy online and get it delivered. The next day they might want to come in” to shop in person.

That makes a seamless omnichannel experience more crucial than it has ever been. The average grill purchase, Cioffi noted, is preceded by more than 60 online searches, but only one in-store visit—making it imperative to get the experience of that in-person visit right.

One way that Lowe’s Canada is working toward that seamless experience is by having staff assist in placing orders for items that are available only online. Those items can be shipped directly to the customer’s home. The plan is to have those stores and staff receive credit for such sales by the end of next year.

Another part of the equation is making the best possible use of staff talent. With the labour shortages exacerbated by the pandemic, self-checkout has been “a godsend,” Cioffi says, freeing up would-be cashiers to serve in more complex roles.

Customer expectations around delivery are also evolving. “Two-day delivery is the norm,” with most shoppers expecting to receive items in no more than three days. “Soon, same-day will be the expectation,” Cioffi declared, adding that for about a third of customers it already is.

Lowe’s Canada is responding to demand by changing the way it warehouses orders. “We have three stores in Quebec that we’ve converted this year into direct distribution centres.” Cioffi noted the company has just opened a new bulk DC in the Calgary area.

He continues to look for more ways to work with vendors to respond to customers’ needs. “I’m always challenging our buying team: can the vendor deliver directly to the customer? Can the vendor deliver to the job site?” he said.

“At the end of the day, in this inflationary market, we can’t impose [more] costs on our customers. We need to find a way to be more productive together.”

Canada’s third-largest LBM distributor is poised for some strong growth, and it intends to stay close to its preferred vendors to realize that growth.

“Our vision does not just apply downstream to our customers, but also upstream to the vendors,” says Mike Schneider, vice president of business development at Gillfor Distribution.

The Woodstock, Ont.-based wholesaler was established when OWL Distribution in Woodstock, Ont., and McIlveen Lumber, an LBM wholesaler based in Calgary, merged in 2017. A year later, the company added Brown & Rutherford in Winnipeg and Brunswick Valley Distribution, based in Fredericton. But the acquisition of Bolton, Ont.-based AFA Distribution, completed on June 30 of this year, was the play that catapulted the company to a new plateau.

Schneider says 2023 will be a year of rapid growth, as the company will unite all its divisions clearly under the Gillfor brand (see our Oct. 10 edition—Editor). Gillfor’s vision includes working with “best-in-class vendors and developing real partnerships to grow the market and to take share.”

Gillfor is working to combine its offering to its dealer customers across the country. The base of its existing lines is the specialty building materials category, while the AFA acquisition added a broader range of LBM commodities to the mix. The company’s push in 2023 will be toward a more consolidated approach to the market as it will relaunch all divisions under one brand: Gillfor.

However, Schneider says, that uniformity of marketing will not be at the expense of the wholesaler’s regional strengths, as realized through almost 20 facilities countrywide. Rather, Gillfor’s centralized model will enable it to implement its national programs along with that regional sensitivity, which will come down to the account managers serving their customers in each region and the branches themselves.

“We have an unbelievable respect and confidence in our managers at the branches,” he says. “We believe they are the pillars.”

At BMR Group, Jean-Marc Prudhomme has been named VP, forest products, reporting to CEO Alexandre Lefebvre. Prudhomme joined BMR in 2011 as director of purchasing and was most recently senior director, commodity sales and purchasing.

DID YOU KNOW…?

… the latest edition of Hardlines HR Advisor hits inboxes on Wednesday? In this issue, we talk about the role of great mentors, plus managing the transition back to in-person work. If you’re not already receiving HR Advisor, click here to sign up for free!!

The Home Depot Canada’s nine stores in Atlantic Canada will donate $125,000 to the Canadian Red Cross for relief efforts following Hurricane Fiona. Each store will donate over $13,000 to show their support to local Castle Building Centres Group has announced the addition of Maderas, a new member in Rouyn-Noranda, Que., The new store will be a full-service home improvement centre complete with lumber yard, warehouse, and retail space. For co-owners Jonathan Gauthier and Hugo Dallaire Savard, it’s the fulfilment of a long-time dream to open a building centre.

Peavey Industries will open the doors of its newest store, in Salmon Arm, B.C., by the end of the month. The approximately 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. It will be the chain’s 91st location overall. It follows on the heels of an opening last month in Bedford, N.S., which was the chain’s first Peavey Mart store in the Maritimes.

SUPPLIER NEWS

Canadian Tire Corp. has submitted a request for a zoning variance that would allow the development of two high-rise residential towers at its downtown Toronto flagship. The design from Adamson Associates Architects preserves the façade of the current retail location. A new Canadian Tire outlet would anchor the project, which would consist of 49-storey north tower opposite a 41-storey tower fronting the subway. A new green space would replace the gas station at the existing store.

The Home Depot in the U.S. has launched a jobseeker marketplace to connect skilled tradespeople to trades professionals in the construction and home improvement industries. It’s part of Home Depot’s “Path to Pro” program to help address the growing skilled labour shortage in the U.S. Skilled trades jobseekers can visit PathtoPro.com to create a profile, upload their resumé, and add photos of their work to connect with Home Depot’s pro customers looking to hire in their local area.

SUPPLIER NEWS

JELD-WEN of Canada is donating $25,000 to the Canadian Red Cross to aid relief following the impact of Hurricane Fiona. The Canadian Red Cross is providing emergency shelter, financial aid, food, and clothing to those affected. The Government of Canada matched donations made by individuals and corporations up until Oct. 23.

JRTech Solutions has secured agreements to install its shelf label technology and cloud platform in 24 RONA affiliate stores. Among them are the nine stores under RONA Moffatt & Powell.

A.O. Smith, Blackstone, and Mansfield Plumbing have been recognized by Lowe’s Cos. as the retailer’s 2022 Vendor Partners of the Year. At the same time Lowe’s presented its Sustainability Award to Owens Corning, which has cut its greenhouse gas emissions by about 60 percent since 2007.

ECONOMIC INDICATORS

Sales of existing homes fell by 3.9 percent between August and September. While about 60 percent of all local markets saw sales fall, the national number was pulled lower by declines in Greater Vancouver, Calgary, the Greater Toronto Area, and Montreal. The actual (not seasonally adjusted) number of transactions in September came in 32.2 percent below September 2021 and about 12 percent below the pre-pandemic 10-year average for that month. (Canadian Real Estate Association)

The annualized rate of housing starts in September was at the highest since November 2021 at 299,589 units, up 11 percent from August. The rate of urban starts rose 12 percent to 276,142 units, though single-detached urban starts were flat at 59,593 units. (CMHC)

NOTED

The latest episode of our podcast series What’s In Store is now live! In this edition, we talk to Geneviève Gagnon, CEO of Groupe Gagnon, a flourishing chain of stores in Quebec. She talks about her trajectory from studying tax law to the multiple businesses she now manages and her passion for supporting causes such as palliative care. (Sign up now to get these Hardlines Podcasts. They are free!)

OVERHEARD…

“I think it’s important we don’t profit from the communities we serve in without giving back.”
—Rob Lawrie, of the Lawrie Group of Companies, who with his wife and business partner Joanne Lawrie told the story of their growth to a chain of seven Home Hardware stores in Nova Scotia. They presented at the latest Hardlines Conference, held last week in Niagara-on-the-Lake, Ont.

Registration is now open for the 2023 National Hardware Show, Jan. 31 to Feb. 2, 2023, at the Las Vegas Convention Center. The upcoming show shares access to four other trade shows: the NAHB International Builders’ Show (IBS), NKBA’s Kitchen & Bath Industry Show (KBIS), International Surface Event, and Las Vegas Market (Winter) show.

While NHS now has added horsepower behind it, many Canadians are still considering whether to make the trek to Sin City at the end of January. NHS was last held in April of this year and attracted very few Canadians, whether exhibitors or buyers. But as COVID restrictions are lifted and as air traffic is expected to improve in coming months, Canadians appear to be ready to get back to business in Las Vegas.

Unquestionably, the notion that retailers will send larger groups of their buyers down to attend multiple concurrent shows is a big draw for vendors. And buyers are putting the combined event on their calendars. “Yes, we are attending,” says Randy Martin, vice president of procurement at TIMBER MART. “Now that they are combining the three shows, including hardware, building materials, and kitchen and bath, we see a great opportunity. The plan is to have our procurement team in attendance.”

However, some vendors are skeptical of the show’s draw for Canadian buyers. Sam Moncada, president of the Canadian Home Products Trade Association (CHPTA), which represents hardware and housewares vendors, notes that a lot of retailers are waiting to decide whether to go. “A lot of vendors are concerned that retail organizations have been able to conduct business and launch new products without travelling. We’ll have to see if that will continue.”

While some vendors Hardlines spoke to will take a pass this year, many more are very positive about the prospects for the next show. However, not all of them will exhibit. “I do plan on attending the show,” says Kim Laurette, director of retail sales and Canadian marketing at A.O. Smith. She will not, however, exhibit. “I don’t normally attend IBS or Kitchen & Bath, so I look forward to walking those shows as well since it is all combined next year.”

Maxime Lebon, national sales manager for Belanger Laminates, is also interested in the opportunity to take in multiple shows. “We are planning to be at the National Hardware Show, KBIS, and the Builder Show as visitors. It’s good news that they have decided to combine all together.”

Richelieu Hardware is definitely going to be there, and an exhibitor at that. According to Larry Lucyshyn, VP for sales to U.S. retail markets, his company will actually exhibit at two shows. A retail booth at NHS will showcase its retail divisions—Richelieu, Onward, Reliable, Madico, Cedan, Nystrom, Mibro, and Task. The company will also have a presence at the Kitchen & Bath Show to present its industrial lines. “The needed sales and marketing team members from Canada and the U.S. will attend,” he adds.

Steve Finlay of Imperial Manufacturing was one of the few Canadian exhibitors at the April 2022 National Hardware Show. Now, he says, he’s looking forward to the next one. “I’m confident it will be a good event, because of the three shows in one. It will definitely bring the people in.”

Even though Imperial has some industrial lines as well as hardlines products, Finlay says he will confine his company’s presence to the hardware show only, at least this time. “But I’ll consider expanding to the Builders’ Show the following year.”

At the CHPTA, Moncada says that a month ago his members were pretty much split down the middle on whether they would go to NHS. And even if they do go down to Vegas in January, many vendors will travel light. “A lot of our manufacturers are planning to go down, not necessarily to exhibit, but to look around.”

But in recent weeks, Moncada has seen his members get more positive about travelling. “We are starting see and hear of more vendors heading down. The confidence level to participate in the event is starting to increase,” he says. A recent survey of members showed that 15.2 percent of them will exhibit, and another 37 percent will be there to walk the show. But more than a quarter of the member vendors said they won’t attend. Just over one-fifth remain undecided.

CHPTA will go ahead with an industry cocktail reception as it has done at NHS in years past. It used to be called Maple Leaf Night, but it’s being renamed Canada Night. Another big change is vendor accessibility to the event, which has historically been for CHPTA members only. “It will be a more casual event than in the past. And we’re going to open it up. It won’t be a member-only event now. You just have to buy a ticket to get in.”

While caution may be the watchword for many, the inclusion of other shows into NHS is considered a viable strategy, one that’s expected to see Canadian retailers send even more buyers than usual to Las Vegas. “In theory it’s a great opportunity to have the shows converge,” says Moncada. “I think it’s the right strategy.”

With integration of Ace, Peavey can focus on expansion of its corporate stores

Managing multiple banners keeps Doug Anderson very busy. He’s the president and CEO of Peavey Industries, which operates corporate stores under the Peavey Mart and MainStreet Hardware banners. Anderson also directs the wholesale and branding needs of a group of independent dealers that operate mainly under the Ace banner.

Ace is the newcomer—and the disrupter, in effect, that turned the Peavey into a wholesale distributor. But Anderson is investing in growth on all fronts, including new stores under the Peavey Mart banner. A store opened at the end of September in Bedford, N.S., marking the first location for the company east of Ontario. Why there? Anderson notes that various metrics, including demographics, were aligned for Peavey. “There was an opportunity, and we’re very opportunistic,” he says.

Another new store will open at the end of October on the other side of the country. This Salmon Arm, B.C., outlet will be the company’s 90th Peavey Mart location.

In fact, the idea of opportunity comes up more than once in conversation with Anderson. Even under the Ace banner, Peavey has made a point of acquiring and maintaining a few as corporate locations—when the opportunity presents itself.

The renewed focus on incremental expansion reflects the alignment of the company following several years of aggressive growth. That included the acquisition of 50-plus TSC stores, mainly in Ontario, in 2017 followed by the takeover of the Ace Canada licence in March 2020 from Lowe’s Canada. The early part of 2021 marked the completion of the changeover of the TSC stores to the Peavey Mart banner.

“The TSC changeover was good but there’s always work to do with redirection, etc. But we’re getting good at that.” Anderson says the lead-up to the rebranding of TSC was carefully plotted, as buying teams were combined and systems consolidated. “We had moved the stores to be more aligned, so by the time of the switch it was just a matter of putting up the new sign.”

Now, as Peavey Industries sees its corporate stores and its wholesale business working together more effectively, the focus is on the continued growth of Peavey Mart. “We aim to be a true national company.”

Castle’s new business development director anticipates another strong year

A new national director with an expanded dealer development team reflects the changes—and growth—occurring at Castle Building Centres Group.

Doug Keeling took over as the buying group’s director of business development on Sept. 1 from Bruce Holman, who has retired. Keeling oversees a team of eight people taking care of Castle’s 300-plus members, while connecting with prospects to keep adding to the group’s ranks. “We’re making changes for the growth we expect in the future,” says Keeling.

Coming out of COVID, the industry and the economy are confronting a lot of change, and change is always good for dealer recruitment, Keeling adds. As things have slowed down a bit, dealers are willing to take time to look at their own businesses more closely.

In addition, new ownership at rival groups such as Sexton Group and TORBSA adds to the sense of disruption. “We’re coming out of a couple of years that were crazy for all the groups, not just Castle. There have been big changes across various banners. That is causing some dealers to relook at the groups they’re with,” he says. “As Castle continues to grow, we are attracting attention.”

Part of that growth has meant splitting the Ontario territory, which has about 100 Castle dealers. The reps there are André Laurin for central and northeastern regions, and Lillian Diaz, business development manager for the central and southwestern parts of the province. Also, Brad Dixon has recently left his post as business development manager for British Columbia; Castle is actively looking for a replacement.

Despite the headwinds of rising interest rates and continued inflation, Keeling expects the momentum in the industry to continue. “This has been another record year for Castle, for both our new members and our existing dealers. And while some are skeptical about 2023, we expect the momentum, especially on the commercial side, to continue.”

At BMR Group, Jean-François Lemelin has been appointed assistant VP, sales. He will report to Martin Lecomte, VP, corporate store operations and dealer service. Lemelin has over 15 years of experience in the retail, hardware, and renovation industries. Most recently, he was VP of sales, marketing, and customer service at Boiseries Raymond. He is also a former sales manager for Jeld-Wen Canada.

DID YOU KNOW…?

… that top retail executives from Home Hardware, Lowe’s Canada, Sexton Group, Orgill, Federated Co-op, BMR Group, Castle, and Peavey are all attending the 26th annual Hardlines Conference in Niagara-on-the-Lake, Ont., Oct. 18 and 19? If you’re already registered, give yourself a mighty pat on the back because you are going to have a blast networking with everyone this year! If haven’t registered, avoid FOMO and mark your calendar for next year—Oct. 17 and 18, 2023, in Whistler, B.C.!

The Home Depot Canada’s nine stores in Atlantic Canada will donate $125,000 to the Canadian Red Cross for relief efforts following Hurricane Fiona. Each store will donate over $13,000 to show their support to local communities.

Kent Building Supplies and the town of Bay Roberts, N.L., signed a letter of intent that could see the retail giant become the first tenant in the town’s commercial park, SaltWire reports. The deal is conditional on the town’s finding either a second anchor tenant or multiple smaller tenants. Although the agreement was signed about two years ago, the town has only recently been publicizing it as part of its effort to recruit tenants, Bay Roberts economic development officer Ron Delaney told SaltWire.

The Canadian Tire show was back last month after a two-year hiatus during the pandemic. It was held in Toronto at the Metro Toronto Convention Centre. Along with hosting Canadian Tire’s preferred vendors, the show floor showcased the company’s 100th anniversary with black-and-white graphics and images of old flyers and storefront ads.

SUPPLIER NEWS

Orgill has announced plans to build a new 800,000-square-foot distribution centre in Tifton, Ga. It will replace Orgill’s current facility in the city, which covers 650,000 square feet. It opened in 1995 and is currently the oldest location in the company’s network. Along with the Tifton location, Orgill operates seven full-service distribution centres in the U.S. and one in London, Ont.

Taiga Building Products is donating $30,000 to the Canadian Red Cross in support of the hurricane Fiona recovery efforts in the Atlantic Region. “Many of our people and partners call the Atlantic region home,” CEO Russ Permann said in a release. “We hope that our support will help those that are close to us, and the broader community, recover from this storm.”

Richelieu Hardware reported Q3 sales of $472.9 million, an increase of 26.7 percent. In Canada, sales rose by 14.8 percent to $279.6 million. Sales to Canadian hardware retailers reached $51.6 million, up 11.2 percent. Net income increased by 19.6 percent to $46.4 million. The quarter saw Richelieu acquire Quincaillerie Deno, a Quebec distributor of specialty hardware products.

ECONOMIC INDICATORS

The value of building permits in Canada rose by 11.9 percent in August to $12.5 billion. Both the residential and non-residential sectors saw strong gains, with Ontario causing much of the increase. Residential permits for the month increased 12 percent to $8.4 billion nationally. Gains in Ontario offset losses posted in seven provinces. Construction intentions in the single-family homes component edged up 0.4 percent. (StatCan)

Lumber production decreased 16.9 percent from June to 3.74 million cubic metres in July. Production was down 10.2 percent from the previous July. Sawmills shipped 4.3 million cubic metres of lumber in July, down 5.5 percent from June and up 3.1 percent from July 2021. (StatCan)

Investment in U.S. construction fell by 0.7 percent, the largest drop since February 2021. August’s decline compounded the 0.6 decrease seen in July. In a Reuters poll, economists forecast that construction spending would edge down by 0.3 percent. Year-over-year, spending was up by 8.5 percent. (U.S. Commerce Dept.)

NOTED

The Hardlines Conference kicks off this evening at the Queen’s Landing hotel in Niagara-on-the-Lake, Ont., with the RONA Pub Night. We look forward to welcoming our delegates, who will arrive from every part of the country to network and learn. See you there!

OVERHEARD…

“Our priority during this time is the safety of our customers and our associates while we support them during this unprecedented time.”
—Sebastian Brand, district manager for Home Depot Canada in Atlantic Canada, on the efforts of its stores in that region to raise money for victims of Hurricane Fiona.

The latest buying event for Peavey Industries was held last week at the Toronto Congress Centre near Pearson International Airport. The trade show was called “Family Reunion,” and played host to some 75 independent Ace Canada dealers representing 150 store locations as well as managers from Peavey’s 90-plus Peavey Mart, MainStreet, and corporate Ace stores.

While he doesn’t like to bite the hand that passed the Ace portfolio over to Peavey (whew, that is one mangled metaphor!—your bemused and befuddled Editor), Jest Sidloski, Peavey’s VP of marketing, e-commerce and customer experience, said that this show was smaller and more intimate than the shows Ace dealers would have experienced when affiliated with Lowe’s Canada. “That intimacy aligns with the needs of the Ace dealers.”

The event was further distinguished by an emphasis on group meetings and information sessions among the dealers. Sidloski said these events provided important forums for Ace dealers to provide feedback on their concerns, as their relationship with Peavey is a recent one—beginning in 2020 shortly after the initial lockdowns brought on by the rise of Covid-19. At that time, Peavey Industries took over the licence for the Ace brand from Lowe’s Canada, which had operated it through its RONA division.

This event marked the first time that Ace dealers have gathered in person under the auspices of Peavey. Including exhibiting vendors in 150 booths, about 650 people in total attended the three-day event. Unlike at a traditional hardware show, product lines such as apparel and workwear, feed and pet, and farm and ranch were well represented.

Vendors were largely upbeat about the show, happy to be meeting with their customers face-to-face. They also noted with satisfaction that the dealers had made the trek from across the country, including a strong contingent of western Canadian dealers. Positive feedback came from both the Ace dealers and the Peavey managers who were walking the show.

The next show will be held in Peavey’s hometown of Red Deer, Alta., in 2023.

Canadian Tire supports staff in wake of homicide in Ontario store

A Toronto-area Canadian Tire store remained closed through much of last week as police investigated the stabbing death of a woman there last Monday evening. A local man was charged with first-degree murder in the attack at the retailer’s location in Mississauga’s Heartland Town Centre mall, at the intersection of Mavis Road and Britannia Road.

The Peel Police Homicide Unit charged Charanjeet Singh, 26, of Mississauga with the first-degree murder of 22-year-old Chandanpreet Kaur, his wife of three years.

Kaur died at the scene shortly after Peel Regional Police arrived to respond to “multiple stabbings.” Singh reportedly suffered minor injuries and was treated in hospital. CTV News reported that the crime occurred in the store’s garden centre, according to a customer in the store at the time.

A statement issued by Canadian Tire at the time said: “We are deeply saddened by the tragic incident that occurred at our Heartland location yesterday evening. The safety of our employees and customers is of utmost importance to us and we are working closely with the Peel Regional Police as they investigate the incident. Counselling services have been made available to support our store staff through this difficult time. The store is currently closed and will remain so until the onsite police investigation has been completed.”

Quebec association head calls for change to laws governing retail hours

AQMAT president Richard Darveau has issued an open letter calling on candidates in Quebec’s election to step up on behalf of the province’s retailers as they battle Amazon. The head of the Quebec building supply association issued the missive following this month’s first televised leaders’ debate, which Darveau says all but ignored the housing crisis at the heart of many voters’ concerns. (A second debate was held as Hardlines was going to press).

Quebecers go to the polls Oct. 3 and pundits consider a second majority government for François Legault’s Coalition Avenir Québec a near certainty. Quebec politics defy easy left-right narratives and Legault’s government has shown itself to be both business-friendly and unafraid of public spending to stimulate the economy.

Darveau argues that the sole advantage independent retailers have against the e-commerce giants—personal attention to the customer—is undermined by current laws which permit retailers to stay open almost 24/7. He wants those regulations changed so that independents and their teams can recharge without sacrificing competitivity.

“Opening 83 hours per week exhausts managers and employees, hinders dealer-owners in recruitment and retention of talent, and jeopardizes their chances of finding a successor,” Darveau wrote.

Speaking to Hardlines, Darveau stresses that the letter should not be read as primarily about staffing shortages, but about sustaining vital customer service offerings.

“People might think the main reason we’re battling is the lack of manpower. That’s not it and I think it’s a misreading of our letter that people are focusing on that,” he explains.

Although that is an issue he addresses in the letter, the driving motivation for writing, he says, is a concern for sustainable customer service.

“The reason is we’re looking at the numbers, where players like Amazon are getting more and more market share each year. With the status quo, if government does nothing, we might end up like Florida, where there are lots of franchises but no independent stores,” Darveau said.

Darveau contrasts the customer experience in a hardware store with sectors like grocery and pharmacy, where shoppers can go in armed with the info needed to make a purchase. “When you enter a hardware store, it’s for one of two reasons: you have a problem to fix, or a project or dream to realize. And in that case artificial intelligence isn’t enough.”

But retaining the human talent that is needed will be impossible if no action is taken, he adds, because “qualified people want their evenings and weekends.”

The U.S. Lumber Coalition is spearheading an attack on four Canadian federal climate programs which it says amount to unfair subsidies. It has joined with other players, including Weyerhaeuser Co., under the umbrella of COALITION. (The acronym stands for “Committee Overseeing Action for Lumber International Trade Investigations Or Negotiations.”)

In a filing with the U.S. Commerce Department, the consortium “hereby submit[s] an allegation of additional subsidies available to Canadian producers of softwood lumber products.”

Softwood lumber has been a perennial sticking point in Canada-U.S. trade relations. The crux of the dispute hinges on the contrasting systems of land ownership in the two countries. Most Canadian softwood is harvested from Crown land, for which the federal government charges modest “stumpage” fees.

U.S. lumber producers pay higher prices for timber from mostly private lands. In their view, the low cost of stumpage fees in Canada amount to a government subsidy, in violation of the U.S.-Mexico-Canada Agreement on free trade (and, previously, the North American Free Trade Agreement).

Trade arbitrators have consistently rejected that reasoning, but that hasn’t stopped U.S. regulators from periodically imposing countervailing and anti-dumping duties that tie up Canadian producers until they’re overruled.

The position of U.S. lumber producers also puts them at odds with their homebuilding counterparts. The National Association of Home Builders in the U.S. has described American duties on Canadian softwood as a “tax” on American builders and buyers that has driven up prices at times when domestic lumber supply isn’t sufficient to meet their needs.

This time, the U.S. lumber lobby is taking a different tack. This latest salvo is aimed mostly at federal and provincial climate incentives, though COALITION (which stands for… oh, never mind—Editor) is also concerned about a tax exemption for exporters and a federal wage program that encourages hiring Indigenous youth.

The targeted programs include two Natural Resources Canada initiatives, the Clean Growth Program and the Green Freight Assessment Program. Also under fire are the Tax Savings for Industry incentive for renewable energy use and the Western Business Scale-up and Productivity Program, which funds growing businesses in that region.

Provincial programs are also at issue. COALITION objects to programs in British Columbia and New Brunswick designed to help companies meet carbon goals.

In a written response, lawyers for Canadian parties including the federal government cautioned the U.S. Commerce Department not to “undermine the Biden administration’s stated policies on combatting climate change, reducing greenhouse gases, and protecting the environment.”

The response notes that government programs to forestall the climate crisis cut across industries and “cannot be considered specific.” It warns that if the Commerce Department imposes new duties, it “would be violating the applicable countervailing duty statute and regulations, and would be at odds with the executive order of the president directing trade policy to address the global climate crisis.”

Canada and the U.S. have lacked a bilateral agreement on softwood exports since the last one expired in 2006.

Chris Parsons has been named senior director, omni-channel marketing and strategic insights, at Home Hardware Stores Ltd. He joined the company in 2019 as director of e-commerce. The host of the podcast Delivering eCommerce, he has experience in the field at Walmart Canada and Ren’s Pets.

At Garant, Jonathan Cole is the new VP of sales and customer service. Cole held the position of national account manager from 2008 to 2012, then returned to Garant in 2014 as sales manager and was promoted to director in 2018.

DID YOU KNOW…?

… that it’s time you spent a couple of days working ON your business, not IN it? So join us to learn the latest about where home improvement retailing is headed by attending the 26th annual Hardlines Conference, Oct. 18 and 19 at the Queen’s Landing Hotel in Niagara-on-the-Lake, Ont. Sign up now for this year’s event!

The Home Hardware fall market had a new name, a new look—and a new location—this past weekend. Instead of the traditional St. Jacobs, Ont., gathering of dealers, the company held its buying show at the Enercare Centre, on the Canadian National Exhibition grounds west of downtown Toronto. The event had a new name, “Homecoming.” (The Hardlines team was there, of course, and we will have a full report on the show in the next spine-tingling edition of this newsletter.)

Surrey, B.C.’s Crown Building Supplies marked its eighth anniversary recently during its annual customer appreciation barbecue. Crown Building Supplies became a member of AD Building Supplies in July when Crown’s buying group, TORBSA, became AD’s Canadian division. Crown CEO Gary Sangha is chair of AD Building Supplies – Canada.

Lowe’s in the U.S. has launched an interactive store “digital twin,” which enables store staff to visualize and interact with nearly all of a store’s digital data to optimize operations and localize plans to serve customers. Built by the Lowe’s Innovation Labs team, the digital twin is a completely virtual replica of a physical home improvement store, created in NVIDIA’s Omniverse environment. It’s currently live in two U.S. stores.

Walmart Canada will invest more than $100 million to build a high-tech sortable fulfilment centre in Vaudreuil-Dorion, Que., outside Montreal. Walmart’s first in the province, the new facility is slated to open in 2024. At about 457,000 square feet, the warehouse will serve as a delivery hub for orders in Quebec and the Atlantic provinces. It’s part of a broader $1 billion effort in the retail giant’s infrastructure that also includes store upgrades and remodeling.

SUPPLIER NEWS

The B.C. Building Supply Industry Association will host a two-day event next month for retail members’ staff. The Westcoast Tour 2022 will take members to 10 manufacturers and suppliers in the Lower Mainland on Oct. 26 and 27 from 7 am to 6 pm. Attendees will learn about products and connect with others within the industry. Tour stops include CanWel Building Materials, Metrie, and Taiga Building Products. (Only 24 spots are available so click here to register.)

Avantis Cooperative, Quebec’s largest BMR member, will install JRTech Solutions’ electronic shelf labels in nine of its stores. The rollout builds on the existing partnership which has seen JRTech’s labels go up in 15 Avantis locations.

Demand for Halal home financing is strong in some provinces, The Globe and Mail reports. Islam prohibits both payment and receipt of interest, which rules out conventional mortgages. As a result, the country’s more than one million Muslims are disproportionately renters. Edmonton start-up Canadian Halal Finance Corp. is working with the Al Rashid Mosque to fill the niche. Contracts typically resemble a lease-to-own agreement.

ECONOMIC INDICATORS

Canada’s inflation rate fell to seven percent in August, following a 40-year high of 8.1 percent earlier this summer. Falling gas prices fuelled the steeper-than-anticipated decline. Food prices by contrast continued to mount, with grocery bills rising by a total of 10.8 percent over the past year. The actual price of goods, called core inflation, continues to stay high. (StatCan)

U.S. housing starts rose 12.2 percent in August to an annualized rate of 1.575 million units. Building permits for August fell by 10 percent to a rate of 1.517 million units. (U.S. Commerce Dept.)

NOTED

A recent poll commissioned by Canadian Imperial Bank of Commerce found that 17 percent of the 1,522 people surveyed changed employment in the past two years. Twelve percent moved to a new home; 11 percent acquired a new pet.

OVERHEARD…

“I prefer to have a surplus of staff in a hardware for 50 hours a week than to close the doors for good.”
—Richard Darveau, president of the Quebec industry association AQMAT. He was referring to his open letter to candidates in the province’s upcoming election that urges them to advocate for improved working hours for dealers.

The installation of Claudie Gervais as vice president of marketing and communications at BMR Group, announced last week, is just the latest step in the realignment of the executive team at the Quebec-based wholesaler and buying group.

Gervais (shown here) joined BMR in 2017 as director, promotional strategy and business intelligence. She moved up through the ranks until earlier this year, when she took over as senior director, marketing and communications, before assuming her current VP role.

But other appointments within the company are reflective of a larger trend under the leadership of BMR’s CEO, Alexandre Lefebvre, who has drawn on his background with his own family-owned business to oversee this latest reorg.

That includes a new head buyer, Charles Grégoire-Béliveau, who was promoted to vice president, merchandising at the beginning of June. He was previously senior director, merchandising. At the same time, Antonio Di Pasquale was named COO. He had joined BMR in 2020 as vice president, supply chain and operational excellence. In his new role, Di Pasquale oversees all BMR’s operations and much of the management team reports into him, including Gervais in her new VP role. A year earlier, Simon Grouin was appointed senior director, business development, for Eastern Canada, while François Grenier was named VP of human resources.

“I’m pretty excited about the team and where they’re headed now,” Lefebvre told Hardlines. A year and a half into the job himself, he came over to BMR following the group’s acquisition of his family’s business, Lefebvre & Benoit.

The vision was to reduce the number of people at the top of the organization and make the remaining execs more hands on, with many of them, including Gervais, reporting to COO Di Pasquale, “so they’re not in silos and we can move more quickly,” says Lefebvre. “Now they’re more agile.”

These experts will share their retail insights at the upcoming Hardlines Conference

The 26th annual Hardlines Conference is just weeks away (Oct. 18 and 19 in Niagara-on-the-Lake, Ont.).  The lineup of speakers will include top executives from Lowe’s Canada, BMR Group, and Sexton Group. In addition, delegates can count on getting a first-hand glimpse of the latest trends and big-picture outlooks from a world-class lineup of retail experts.

As the founder of global consultancy Retail Prophet, Doug Stephens (shown here) is one of the world’s leading retail and consumer futurists—and a top global retail influencer. He is also one of our most in-demand speakers for the conference. This year, he’ll take a deep dive into the future of retail in what he calls The New Age of Risk. “The role of the retail leader is increasingly one of anticipating and mitigating risk,” he says.

“Essentially, I’ll be promoting the idea that smart retailers are moving away from the goal of lowest unit cost and moving to a model where the goal is lowest business risk. Brands that are able to achieve this new model are garnering outsized customer loyalty and capital investment.”
  
For insights into the future of the economy, including housing and reno markets, we’ll rely on Peter Norman, one of Canada’s foremost land economists and forecasters. As vice president and chief economist at Altus Group, he is widely quoted in the Canadian media and remains a regular favourite on the Hardlines Conference podium.

Dan Tratensek is COO and publisher with the North American Hardware and Paint Association. NHPA represents independent retailers in the $400 billion-plus home improvement, paint, and decorating industry throughout the U.S. and Canada. Always a welcome addition to the Hardlines Conference, this year he will present brand-new data on how independents can benefit from growing their digital sales.

The 26th annual Hardlines Conference is returning to the Queen’s Landing Hotel in Niagara-on-the-Lake, Ont., a scenic destination just 70 minutes from Toronto Pearson International Airport. It will kick off with the ever-popular RONA Pub Night on the evening of Oct. 17. The 30th Annual Outstanding Retailer Awards Gala is a must-attend event on the evening of the first day of the conference, Oct. 18.

(We still have some seats available for the Hardlines Conference. To see the full list of speakers and to secure your spot at this incredible event, please click here!)

Online building materials supplier offers “last mile” service for pros

It started out 18 months ago as a way to get products to contractors’ jobsites in Vancouver’s Lower Mainland. Now, Warehoos Online Inc. has rolled out its delivery services throughout Canada and parts of the U.S.

Warehoos serves builders and provides same-day delivery for most building materials through its online marketplace. Unlike some “last mile” delivery services, Warehoos does not rely on its own warehousing but works with existing building supply dealers to source its products.

“Almost everything is actually fulfilled from building supply yards closest to the delivery, or if we don’t have a yard in the area, from the closest one we’ve partnered with,” says Ross Power of Warehoos. For example, in the Vancouver area, the service has worked with dealers like Dick’s Lumber in Surrey, Poco Building Supplies in Port Coquitlam, and Griff Building Supplies in New Westminster. A third-party logistics company picks up the products and makes the actual deliveries to the jobsites.

Power is also the president of PowerHouse Building Solutions, a Surrey, B.C.-based distributor specializing in building products for home construction on the west coast. But the new business is completely separate from the wholesale distribution company. “We don’t carry inventory ourselves, so we’re really an extension of the building supply yards that we partner with.” It’s a different business from PowerHouse, he stresses, with different staff and even competitive products to those that PowerHouse carries.

Power admits the new service is a way to adopt to changing demands of the marketplace, “to remain relevant in the years to come as opposed to some online suppliers that try to cut out the middleman and do as much as possible directly. We’re here to disrupt the industry and service the contractor without messing with the current distribution channel—to be complementary.”

He recognizes the need to overcome that “last mile” delivery challenge in the product supply chain. “Contractors inherently need service and products ASAP that most online companies simply cannot provide. The fact that we use building supply yards and have connections all over the place allows us to get product into the hands of the contractor faster than any other service we know of.”

He adds that the manufacturers appreciate the Warehoos model as well. “We can connect their materials to contractors that want to use them in markets where their products cannot otherwise be easily sourced.” 

The Home Depot is working on racial equity and deforestation assessments in response to shareholder proposals from the company’s latest annual meeting. But the assessments are nothing new for the company. The current initiative will expand on the information previously shared in the company’s annual Environmental, Social, and Governance (ESG) report.

The ESG efforts include initiatives and goals around what the company call three “fundamental pillars”: focusing on its people, operating sustainably, and strengthening communities.

Home Depot’s Office of Diversity, Equity, and Inclusion leads the company’s diversity reporting, which includes gender, ethnicity, and pay equity data for its workforce. Numerous initiatives have been designed to increase the diversity of its workforce, promote inclusion, amplify support for diverse suppliers, and enrich the communities the chain serves. The planned assessments will help the company benchmark its DEI and responsible forestry programs, highlight the ways it is upholding its commitments, and potentially identify opportunities to enrich its efforts.

The Home Depot has been investing in policies to promote fairness and combat bias, while ensuring that associates and business partners have access to the resources they need to succeed at work. In 2021, the company says, it spent $3.3 billion with its top suppliers and recently announced a goal to spend $5 billion annually by 2025.

Home Depot continues to focus on its sustainable forestry initiative, as well, a practice that dates back more than 25 years and reflects the company’s recognition that responsible forest management is essential to protecting the health of the world’s ecosystems. To help protect endangered forests and support efforts to preserve timber for future generations, it first issued its Wood Purchasing Policy in 1999, working with suppliers to understand and practise sustainable forestry throughout the world.

The company expects to publicly release its reports on these assessments by the end of its fiscal 2023 year.

Christine Joannou has joined Luxo Marbre as its chief strategy officer. The manufacturer and distributor of kitchen and bathroom furniture says rapid expansion and increased demand prompted the hire. Her experience includes terms as VP for the House of Rohl and Maax sales departments and serving on the board of the Canadian Institute of Plumbing and Heating.

At VicWest Building Products, Brian Glen has been appointed director of sales for Ontario and western Canada. In this role, he’s responsible for strategy development and deployment across all channels VicWest serves.

David Kohler has been elected chairman of the board of Kohler Co., in addition to his existing roles as CEO and president. The announcement follows the death of his father, executive chairman Herbert Kohler Jr., earlier this month.

DID YOU KNOW…?

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

Princess Auto is slated to open a location next year in a newly renovated retail plaza in Sault Ste. Marie, Ont., according to Soo Today. In addition, next March it will open its seventh British Columbia location, in Abbotsford.

Hickey’s TIMBER MART held the grand opening recently for its newest store, located in Goulds, NL. Jim and Mary Hickey started the business 49 years ago, with the business now run day-to-day by sons Brad and Jay Hickey. Today, Hickey’s has four stores, with the other locations in Conception Bay South, Harbour Main, and St. John’s. 

The owners of Orillia Home Hardware Building Centre in the gateway to Ontario’s cottage country have a new store. Dean Smales is retiring after 34 years as dealer-owner of Dean’s Home Hardware in nearby Huntsville.

Dollarama reported Q2 net earnings of $193.5 million, up 32 percent from $146.2 million a year earlier. Total revenues grew by 18.2 percent to $1.2 billion, buoyed by the net increase of 13 stores in Dollarama’s network during the quarter. Comp sales rose by 13.2 percent while the number of transactions surged by 20 percent.

SUPPLIER NEWS

Garaga Inc. has acquired North Central Door in Bemidji, Minn., its second U.S. facility. The manufacturer previously bought Mid-America Door in Ponca City, Okla., in 2018. “The acquisition of North Central Door will allow us to strengthen our position in the American market and thus continue our growth,” said Garaga co-president Maxime Gendreau.

M-D Pro’s new web address has gone live at www.mdpro.com. Its search functionality and category tabs allow users to access Prova tile installation products and M-D Pro flooring accessories. The website introduces a “Become a Distributor” page for distributors to join M-D Pro’s network, and provides information on authorized M-D Pro retailers and distributors.

Eisenwarenmesse 2022, the International Hardware Fair, will take place Sept. 25 to 28 in Cologne, Germany. It’s the first in-person edition of the show in four and a half years. Some 1,400 exhibitors from 50 countries will gather at the Koelnmesse exhibition centre to showcase new products from tools to building and DIY supplies.

ECONOMIC INDICATORS

Sales of existing Canadian homes dropped slightly, by one percent, in August from the previous month. The actual (not seasonally adjusted) number of transactions came in 24.7 percent below August 2021. While still a large decline, it was smaller than the 29.4 percent year-over-year drop recorded in July. The number of newly listed homes fell to 5.4 percent on a month-over-month basis in August, building on a 5.9 percent decline recorded in July. (Canadian Real Estate Assoc.)

Investment in building construction rose 0.8 percent to $21 billion in July. Both the residential and non-residential sectors showed increases. Spending on residential building construction advanced one percent to $15.7 billion in July. Single-family home investment edged up 0.3 percent to $8.6 billion. (StatCan)

NOTED

Home Depot reports that its U.S. workforce is consistently more ethnically diverse than the U.S. working population at large, based on U.S. Department of Labour data.

OVERHEARD…

“We’ve partnered with building suppliers in B.C. and have been able to become a great customer. As we expand, we need more partners in Canada and the U.S. We’re also helpful for yards or suppliers that have niche products not available everywhere but which we can help fulfil to expand their reach.”
—Alec Yu, director of operations at Warehoos, which partners with dealers to source products and deliver them to nearby contractor jobsites.

At Home Hardware Stores Ltd. Marianne Thompson has been appointed to the role of chief commercial officer. The position takes effect September 12.

In this newly created role, Thompson will be responsible for Home Hardware’s overall commercial strategy, which will emphasize driving business growth and expanding market share. She assumes her additional role’s duties in addition to her current responsibilities as chief merchandising officer, a position she assumed in March of this year. That means Thompson will keep her merchandising portfolio, with oversight of marketing, supply chain, and retail operations added in.

Prior to joining Home Hardware in 2019, Thompson was SVP of North American sales at JELD-WEN Windows and Doors. She will continue to report in to Kevin Macnab, Home Hardware’s president and CEO.

“With over 30 years’ experience in the home improvement industry, Marianne Thompson has the strategic vision and leadership skills needed to drive continued results for Home Hardware and the success of this great Canadian retailer,” said Macnab. “Marianne is a transformative leader who brings passion, creativity, and heart to everything she does.”

Thompson now has a number of the company’s officers reporting directly to her. They are John Dyksterhuis, chief supply chain officer; Rob Wallace, chief retail operations officer; and Laura Baker, chief marketing officer.

Her senior merchandising team will continue to report to her as well. They are Rob Szekszer, vice president, merchandise—hardlines; Carol Crystal, vice president, merchandise—LBM; Meriyem Kaf, director, merchandise strategy and execution; and Colin Lalonde, director of merchandise services.

As president and CEO, Macnab will continue to oversee finance, human resources, IT, legal, and corporate records. Besides Thompson, other people reporting to him Macnab are Sean MacCormack, chief financial officer; Scott Bryant, chief human resources officer; Gino Gualtieri, chief information officer; William Zeyl, chief legal officer and corporate secretary; and Dianne McTavish, vice president of corporate records.

RONA’s Quebec City buying event is only one part of a three-pronged strategy

Lowe’s Canada brought its affiliate dealers in from different parts of the country to participate in a new type of buying show this past weekend. The show has a new name—and not one but two new locations.

Called RONA Connexia, the new events are a complete reinvention of the traditional RONA Buying Show, Lowe’s Canada says. They are exclusively dedicated to RONA affiliate dealers.

RONA Connexia is divided into three interconnected activities spread throughout the fall. It kicked off in person last Wednesday in Quebec City and ran until Friday, Sept. 9. The next stage is from Sept. 14 to 16 in Vancouver. These two events, or rallies, will give the independent RONA dealers a chance to get face-to-face with preferred vendors.

The last live event was in 2019, when 300 RONA and Ace dealer-owners gathered at the Palais des congrès de Montréal (shown here). Since then, Lowe’s Canada has divested itself of the Ace business, focusing its wholesale distribution business solely on its RONA affiliate dealers.

This year, the in-person events in Quebec City and Vancouver aim to help RONA head office to “reconnect” with RONA dealers. “The objective of those events is to bring our network together and talk about our recent accomplishments and what’s coming for our RONA affiliated dealers,” a Lowe’s Canada spokesperson told Hardlines.

“Most of our RONA affiliated dealers will be present, which demonstrates the strength of our network.” RONA has more than 200 affiliated dealers across the country.

The new locations were part of an effort to shake things up a bit and freshen up the experience for the dealers. “After a two-year pause, we wanted an inspiring location, ideal to connect and discuss. That’s why Quebec City and Vancouver were selected this year.”

The third aspect of the combined events is a showcase that will be held in October and will take place at the Lowe’s Canada Planogram Centre in Boucherville, Que., which is near the Lowe’s Canada head office on Montreal’s south shore. All 2023 seasonal products will be presented during this face-to-face event.

And finally, RONA will host an online buying event, called “The Shopping Zone.” It will run from Oct. 31 to Dec. 6.

Will the format be repeated next year, with new locations? The company said it did not have any details for next year’s event or events.

CertainTeed Canada names Julie Bonamy Racine as its first-ever female CEO

The appointment of CertainTeed Canada’s first female CEO is the latest in a series of moves by parent company Saint-Gobain to strengthen its Canadian operations.

Last week, the company announced the appointment of Julie Bonamy Racine as CEO of CertainTeed Canada Inc., its Canadian building products subsidiary. Bonamy is CertainTeed Canada’s first female chief executive and succeeds Richard Juggery, who led the company for four years before being named CEO of Saint-Gobain Benelux in July.

Bonamy comes to her role in Canada with a strong international CV. In fact, her schooling pointed in that direction early on. She is a graduate of the Paris Institute of Political Studies and the National School of Public Administration, which led to a role as a public servant. That included a stint as an advisor for the budget and digital sector for the Office of the French Minister for the Economy.

She joined Saint-Gobain in 2017 in Paris as group vice president, strategy and planning. She eventually moved up to serve as CEO of Saint-Gobain Malaysia, Singapore, and Indonesia.

Saint-Gobain acquired Malvern, Penn.-based CertainTeed in 1970. In Canada, Saint-Gobain and CertainTeed have 27 manufacturing locations and employ more than 2,200 people nationwide. Bonamy’s appointment as CEO comes after the company has taken several steps this year to strengthen both its business and sustainability profile in Canada.

Saint-Gobain is considered one of the largest building materials companies in the world. It operates in 76 countries, has 167,000 employees, and achieved sales of €44.2 billion (CAD $58 billion) in 2021. In July it finalized its acquisition of Kaycan, a family-owned manufacturer and distributor of exterior building materials, in a deal that was valued at $1.2 billion.

A month earlier, the company announced plans to invest $91 million to upgrade equipment at its CertainTeed Montreal wallboard manufacturing facility. Those upgrades include technology to reduce the plant’s carbon emissions by up to 44,000 tonnes per year, creating the first zero-carbon drywall plant in North America. The company says the upgrades will also increase the facility’s production capacity by up to 40 percent.

In March, the company announced it would install heat recovery technology at its CertainTeed gypsum manufacturing site in Vancouver, which is expected to reduce the plant’s carbon dioxide emissions by 10 percent and improve its energy efficiency.

Earlier this year, Saint-Gobain announced a multi-faceted partnership with Habitat for Humanity Canada to build affordable housing in several communities where the company operates. It will donate construction materials and cash to Habitat for Humanity projects across the country.

At the beginning of this month, Doug Keeling assumed his previously announced position as director of business development for Castle Building Centres Group. He had served as business development manager for Ontario since he joined Castle in 2016. Keeling took over from Bruce Holman, who retired from the role earlier this summer after nearly two decades in the industry.

Garant has announced the appointment of Jonathan Cole as vice‐president of sales and customer service. He was the company’s national accounts manager from 2008 to 2012, returned to Garant in 2014 as sales manager and was then promoted to director in 2018.

DID YOU KNOW…?

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

Home Hardware Stores Ltd. has partnered with shopping rewards app FlipGive to launch the Play More Matching Grant. Building on the past spring’s $25,000 investment in young athletes, the program will distribute another $50,000 to local teams. “Home Hardware’s dealer-owners have a long-standing history of supporting local youth-sport in the communities they serve,” CEO and president Kevin Macnab said in a release.

Through the efforts of the Children’s Miracle Network and Opération Enfant Soleil fundraising campaign, initiated back in April, Lowe’s Canada was able to donate $170,000 to the SickKids Foundation. The donation was the result of the participation of 53 RONA and Lowe’s stores that chose to support the campaign. The SickKids Foundation supports an important network of foundations, research, and hospitals whose mission is to treat sick children. The Hospital for Sick Children (SickKids) in Toronto is the largest children’s hospital in Canada. 

J.R. Roy Inc. TIMBER MART in Saint-Léon-de-Standon, Que., celebrated last month Jacques Roy’s 50 years of service to the business. The management of neighbouring Émile Bilodeau & Fils Ltée TIMBER MART said this in a congratulatory message: “It is a privilege to have a Mr. Jacques in your company: too bad for the others, it’s us who have him!”

Crest Hardware & Urban Garden Center, in Brooklyn’s Williamsburg neighbourhood, attracts animal lovers. Franklin, its resident potbellied pig, is a big reason for that. “People like to shop where they feel welcome,” Joe Franquinha, co-owner of the store with his wife Liza, told The New York Times. Franklin, he adds, has “got his own weird little cult following of customers that love to come in and check in on him or ask and see how he’s doing.”

Home Hardware Stores Ltd. this month is celebrating three decades of its partnership with Tree Canada. To mark the occasion, 30 Home Hardware dealer-owners across the country are participating in this year’s “Home Grown: 30 years of planting at Home” campaign.

A leadership shakeup at Lowe’s Cos. in Mooresville, N.C., first reported by CNBC, has resulted in the departure of the company’s chief marketing officer, Marisa Thalberg. The marketing team now reports to Bill Boltz, executive vice president of merchandising, the network reports. Thalberg started at Lowe’s in February 2020. She had reported directly to CEO Marvin Ellison. In other changes at Lowe’s, says CNBC, Tony Hurst, the senior vice president who oversees Lowe’s pro business, will now report to Joe McFarland, Lowe’s executive vice president of stores. He previously reported directly to Ellison. Hurst was president of Lowe’s Canada for two years in 2020 and 2021. Early in January, Tony Cioffi was moved up to replace Hurst in Canada, though he still reported into Hurst in the latter’s new role in Mooresville. Cioffi still reports into Hurst after the changes, Lowe’s Canada told Hardlines.

SUPPLIER NEWS

Registration is now open for the 2023 National Hardware Show. Register before Sept. 30 for free admission, subject to approval based on registration qualifications. NHS will occupy the South Hall and Bronze Lots at the Las Vegas Convention Center from Jan. 31 to Feb. 2, 2023. Pack your walking shoes, as the show shares a badge that gains access to four others: the NAHB International Builders’ Show (IBS), NKBA’s Kitchen & Bath Industry Show (KBIS), International Surface Event, and Las Vegas Market (Winter) show.

ECONOMIC INDICATORS

Investment in U.S. construction projects fell by 0.4 percent in July, following a 0.5 percent decline in June. Residential construction spending was down by 1.5 percent, with investment in the single-family segment tumbling by four percent. Rising mortgage rates and elevated housing prices both contributed to cooling demand from prospective buyers. (U.S. Commerce Dept.)

OVERHEARD…

“I am delighted to welcome Marianne Thompson to the role of chief commercial officer. Home Hardware is on an exciting journey with a bright future, and I am confident Marianne will continue to bring strategic leadership and strong business acumen as we move forward.”
—Christine Hand, chair of the board of Home Hardware Stores Ltd., on the promotion of Marianne Thompson to a new role as chief commercial officer.

IN MEMORIUM

Herb Kohler Jr. died last weekend at the age of 83. The third generation of his family to head up the Kohler plumbing business, he was CEO for more than 40 years before serving as executive chairman. During his time at the helm, Kohler focused on expanding design options, emulating the auto industry’s offering of deluxe add-ons.

The 26th annual Hardlines Conference is just weeks away (Oct. 18 and 19 in Niagara-on-the-Lake, Ont.). The lineup of speakers will guarantee a first-class offering of ideas and trends. Speakers will include top executives from Lowe’s Canada, BMR Group, and Sexton Group, plus some amazing insights from one of the country’s top economists.

But aside from the trends and big-picture outlooks, the Hardlines Conference, as always, will drill down to the human side of the business, thanks especially these presenters:

Zaida Fazlic, Vice President, People & Culture, Taiga Building Products Ltd. In her lead HR role at Canada’s largest distributor of building materials, Zaida Fazlic oversees the operations of the human resources and payroll functions at Taiga’s HQ in Burnaby, B.C. But she also focuses on people and talent development by creating programs and initiatives that actively support and encourage employees to grow, succeed, and accomplish their goals.

Fazlic began her career with Taiga in 2005, first as an executive assistant before pivoting into the world of real estate. There, she managed the development of a property in the heart of Richmond, B.C. She returned to Taiga in 2018 in the HR department, from where she was promoted to her current role.

During COVID, she has found the urgency of taking care of the company’s workers—at every level—an exciting and engaging challenge.

Alison Fletcher, Owner, The Cookery Store. After a successful 19-year career in sales and marketing, working for some of Canada’s biggest companies, including Maple Leaf Foods, Tim Hortons, Weston Bakeries, and Burger King, Alison Fletcher chose to go out on her own. Combining her passions for cooking and retail, she decided it was time to apply her business planning skills to a vision of her own.

Conceived and launched in 2014, Cookery is both a specialty kitchenware store and cooking class studio. It’s also an incredible COVID success story. It has grown to three locations in Toronto and one in Montreal. Offering a beautiful collection of both heirloom and everyday cookware, kitchen tools, bakeware, barware, dinnerware, serving ware, and cookbooks, Cookery caters to passionate home cooks and cooking-inspired gift givers.

Fletcher has proven herself a master of engaging her customer base, regardless of lockdowns. The store offers cooking classes for both adults and children, which went virtual during the heights of the pandemic.

Joanne Lawrie, Co-owner, Lawrie Group of Home Hardware Stores. Along with her husband Rob, Joanne Lawrie heads up a family-owned group of businesses based in Annapolis Royal, N.S. They consist of six stores operating under the Home Hardware, Home Hardware Building Centre, and Home Furniture banners, all located in the southwestern part of Nova Scotia.

Joanne and Rob represent a growing trend among dealers to consolidate at a local level, establishing themselves through a number of outlets to dominate in their respective markets. This is a front-line retail story that’s not to be missed!

This year’s conference is returning to the Queen’s Landing Hotel in Niagara-on-the-Lake, Ont., a scenic destination just 70 minutes from Toronto Pearson International Airport. It will kick off with the ever-popular networking RONA Pub Night on the evening of Oct. 17. The 30th Annual Outstanding Retailer Awards Gala is a must-attend event on the evening of the first day of the conference, Oct. 18.

(To see the full list of speakers and to secure your spot at this incredible event, please click here!)

Quebec dealer’s stand-alone appliance showroom is a first for RONA banner

A RONA dealer has opened a dedicated appliance showroom—the first of its kind in the RONA store network. Affiliate dealer Eric Deslongchamps already owns three RONA stores in western Quebec as RONA Deslongchamps. The new appliance showroom is in Rivière-Rouge, Que.

The 5,000-square-foot building and 2,000-square-foot adjacent warehouse have been completely renovated, representing an investment of $500,000 which resulted in the creation of three full-time jobs. Customers now have access to an expanded offering of appliances with brands like Bosch, Frigidaire, Samsung, LG, and Whirlpool.

The goal of this new concept is to provide an improved shopping experience. The store is designed to showcase appliances and other products in fully-furnished indoor and outdoor living spaces. A wide range of products is on display, including high-end stoves and fireplaces, barbecues, kitchen cabinets, fashion plumbing items, as well as bricks and stones.

Customers can choose their products and leave with their purchases on the same day. Or they can take advantage of a high-end “White Glove Delivery Service,” which ensures that their purchases will be delivered within a few days. This applies to all products in stock, including hundreds of appliance models. 

RONA Deslongchamps has been in business for over 80 years. Its stores are in Mont-Laurier, Rivière-Rouge, and Maniwaki.

“We listened to our customers and wanted to innovate to provide a shopping experience that meets their needs,” said Deslongchamps. “Through this new store concept, we want to show projects as a whole and inspire our customers. But above all, we want to give them quick access to the products they need for their home or commercial projects, as well as a wide selection of appliances.”

“The retail market is constantly changing. Eric and his team have been able to adapt and stand out in a way that benefits their customers,” added Philippe Element, Vice-President, RONA sales and dealer support at Lowe’s Canada. “We’ve been pleased to collaborate with their team and use our expertise to support their vision and growth plans since they joined our network of RONA affiliated dealers in 2006.”

Orgill president gives update on fill rates, private brands, and in-store promos

During Orgill’s Fall Online Buying Event, Orgill president and CEO Boyden Moore presented a virtual address to delegates and staff. He provided a wide-ranging update on the company’s performance and achievements, while offering his outlook on the rest of the year.

Moore said the Memphis-based hardware distributor’s year-to-date sales are up 10 percent but added that supply chain recovery is the company’s number-one priority. Orgill does not intend to ease up on fixing that until it can return to its traditional service levels, which he said typically exceed 96 percent. Moore noted that Orgill’s private brands (“Exclusively Orgill”) can offer dealers both better margins and higher fill rates, which are already over the 96 percent mark.

He expects to see fulfilment numbers get above 85 percent by the end of 2022, while Orgill continues to work with its vendors to close the gap during the first half of 2023. “We are beginning to see sustained improvement in our supply chain recovery.” Demand has moderated from the incredibly high levels that we experienced last year, and many of our vendors have improved their performance to us and that has led to this sustained improvement.”

Most economists in the U.S. are expecting continued declines in the rate of inflation throughout the remainder of 2022 and a return to lower levels of inflation in 2023, he observed.

For dealers managing their retail space, Moore predicts that, as customer traffic slows, promotional planning will become more important. “The challenges of the past two years have made promotion planning seem like a waste of time and money for many,” he said. “We see promotions being more important going forward, and we’re working hard to provide you with strong traffic-driving promotions to support your business throughout the second half of the year.”

Moore outlined a plan for four quarterly Online Buying Events to maximize promotions and assortment opportunities for retailers. The company will host one in-person market, its 2023 Spring Dealer Market, Feb. 8 to 11 in New Orleans.

The aftermath of COVID continues to translate into steady sales for home improvement retailing, as reflected in the strong earnings of the industry’s two largest players worldwide, which followed strong results in 2021.

The results at The Home Depot were the highest quarterly sales and profits for the company in its history. Earnings rose to $5.17 billion from $4.81 billion a year earlier, an increase of 7.6 percent, while net sales grew by 6.5 percent to $43.79 billion. Comp sales for the quarter were up 5.8 percent.

The performance at Lowe’s Cos. was not quite as dramatic, but the company came close to maintaining the momentum of the previous year. Lowe’s reported a Q2 profit of $3 billion, almost flat with the second quarter of 2021. Total revenues were $27.48 billion, down slightly from the previous year. Comp sales slipped by 0.3 percent.

One area in which the company made big gains was the contractor market. Lowe’s reported that sales to its pro customers during the quarter were up 13 percent.

Similarly, Home Depot once again saw its pro business grow faster than its DIY sales. Those pro sales result in a bigger basket size. “Big-ticket comp transactions for those over $1,000 were up 11.6 percent compared to the second quarter of last year,” said Jeff Kinnaird, executive vice president, merchandising in a call to analysts following the release of the Q2 results. “We saw big-ticket strength across many pro-heavy categories like pipe and fittings, gypsum, and fasteners.”

And big gains were made on the e-commerce side of the business. Digital sales at Home Depot increased by 12 percent during the second quarter.

At KS Solutions Sales & Service, founding partner Paul Sutton is retiring. Sutton began his career at Cashway Building Centres and was a sales VP at MAAX Bath when he helped to establish KS. At the same time, Chris Straus is joining the company. Straus worked in sales at his local Home Hardware while studying at Wilfrid Laurier University. After graduating Straus worked in sales and customer service at Donald Choi Canada Ltd. Also at KS, Mike Garner has been promoted from sales manager to vice president.

Home Hardware Stores Ltd. has appointed Tracy Moorhouse as manager, private brands. Moorhouse, a Humber College graduate, was previously sourcing manager for private brands at Walmart Canada. Prior to that, she held several positions at Loblaw Cos. Ltd., including as category manager and director.

Gypsum Management & Supply has appointed Leigh Dobbs as chief human resources officer, effective Sept. 6. Dobbs has more than 20 years of experience in HR. An MBA grad of Emory University, she was most recently EVP and chief HR officer for Zenith American Solutions.

At The Home Depot, president and CEO Ted Decker has been elected as chair. He will officially succeed former CEO Craig Menear in the role on Oct. 1. Decker joined the company in 2000 and was named president and COO in the fall of 2020 before taking over as CEO in March of this year.

Henry Co., a division of Carlisle Construction Materials, has appointed Rodge Briones as a technical sales representative for western Canada. Briones joins the company with more than 20 years of experience in the building materials industry. He reports to national sales manager Michael Lovering.

DID YOU KNOW…?

… that the latest episode of Hardlines’ podcast series What’s In Store features Rebecca Gravelle, winner of the 2019 Outstanding Retailer Award for Young Retailer? She shares the challenges of wearing many hats—including managing HR—as VP of operations for two Castle stores in eastern Ontario. (Sign up now to get updates about the latest podcasts sent directly to your inbox!)

Matériaux Pont-Masson, a BMR member since July of last year, is building a new location in Val-Morin, Que. This ninth branch will include a 13,000-square-foot store along with a warehouse and cantilever racks.

Ace Hardware has reported record second-quarter revenue of $2.53 billion, up 1.7 percent, its best Q2 revenue on record it said, and second quarter net income of $124.8 million, an increase of $8.8 million from the second quarter of 2021. Increases were seen across most departments with outdoor power equipment, plumbing, paint, and outdoor living showing the largest gains, said the Oak Brook, Ill.-based company. Total retail revenues for the quarter were $258.0 million, an increase of $2.7 million or 1.1 percent.

Hudson’s Bay Co. has plans to launch a Zellers e-commerce site early next year. At the same time, the company will expand the reach of Zellers spaces within its bricks-and-mortar stores. HBC opened a pop-up Zellers shop at its Burlington, Ont., Hudson’s Bay store in 2020, followed by one in Montreal the following year. The retailer says it is looking to offer an experience that “taps into the nostalgia of the brand.”

Lowe’s Cos. has already begun rolling out its Halloween decorations, this year featuring an exclusive product line inspired by the Tim Burton movie, “The Nightmare Before Christmas.” The Lowe’s Master of Fright collection by Gemmy Industries features inflatable and animated decor. The line includes characters such as a nine-foot Jack Skellington and a six-foot Clown with the Tear-Away Face.

Walmart posted Q2 profits of $5.15 billion compared to $4.28 billion in the comparable period of fiscal 2022. Revenues overall came to $152.86 billion. Canadian sales rose by 10 percent with comp sales up 10.3 percent.

Tractor Supply Co. has broken ground on a new distribution centre, located in Maumelle, Ark. The 1.2million-square-foot facility and will be the 10th largest DC in the U.S. farm and ranch retailer’s network. It is scheduled to open in late 2023 and service over 300 Tractor Supply stores. The facility includes 50,000 square feet of mezzanine space devoted to the company’s growing e-commerce business.

SUPPLIER NEWS

Taiga Building Products reported Q2 sales of $646.1 million, down from $786.7 million a year earlier. The decline of $140.6 million or 18 percent was attributed largely to lower selling prices for commodity products. Net earnings fell to $20.8 million from $58.5 million. For the first half of the year, earnings came to $60.3 million, down from $87.6 million.

Orgill will sponsor the North American Hardware and Paint Association’s Independents Conference in Dallas next summer. Furthermore, the wholesaler has adjusted the timing of its Fall Online Buying Event to coincide with the conference. The NHPA Independents Conference will take place Aug. 2 and 3, 2023, while Orgill’s online event will run from July 31 to Aug. 13.

Liteline Corp. has acquired Contraste Lighting, a Canadian lighting fixture manufacturer that does business across North America. Liteline will continue to market the Contraste brand, while the business will be merged with Liteline. In addition, Liteline ha appointed TMC Sales as its agent in Manitoba and northwestern Ontario. TMC Sales is a lighting and controls-focused agency based in Winnipeg.

The Kress brand of outdoor power equipment is set to make its North American debut. Part of the Positec family, the brand is designed to offer OPE pros in North America an alternative to gas-powered products. The North American launch will take place in Q4 of this year in tandem with International Equip Exposition.

ECONOMIC INDICATORS

Retail sales increased 1.1 percent to $63.1 billion in June, the sixth consecutive increase. Sales were up in eight of 11 subsectors, representing 76.8 percent of retail trade. Higher sales at gasoline stations and motor vehicle and parts dealers led the increase. LBM and garden equipment sales were up 0.1 percent from May and 9.1 percent from June 2021. (StatCan)

The annualized pace of housing starts in July was 275,329 units, an increase of 1.1 percent from June. The rate of total urban starts decreased by 0.8 percent to 254,371, with single-detached urban starts down 2.3 percent to 58,384 units. Rural starts were estimated at a seasonally adjusted annual rate of 20,958 units. (CMHC)

Sales of existing homes fell by 5.3 percent between June and July, according to new data from the Canadian Real Estate Association. Sales were down in about three quarters of all local markets, led by the Greater Toronto Area, Greater Vancouver and the Fraser Valley, Calgary, and Edmonton. The actual (not seasonally adjusted) number of transactions came in 29.3 percent below July 2021.

Sales of existing U.S. homes declined 5.9 percent in July, according to the U.S.-based National Association of Realtors. This sixth consecutive decrease left resales at an annualized pace of 4.81 million. Compared to a year earlier, sales were down 20.2 percent.

NOTED

The North American Hardware and Paint Association will host retailers and other partners next year to the NHPA Independents Conference. It will be held in Dallas on Aug. 2 and 3, 2023. The theme of the event is “Putting Technology to Work for You” and will feature breakout educational sessions, industry-leading speakers, and retailer panel discussions.

OVERHEARD…

“With a more dependable supply chain and a more moderate level of inflation, we are hoping to return to a somewhat more predictable and dependable business environment.”
—Boyden Moore, president and CEO of Orgill, on the Memphis-based wholesaler’s anticipation of a return to lower levels of inflation by 2023.