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.

When Peavey Industries took over the Ace Canada brand two years ago, it was heading into unknown territory. The corporately-owned chain of farm and hardware stores was now in the wholesale hardware business. And that required the creation of a whole new division within Peavey, supported by many of the people who had moved over from Lowe’s Canada, which had held the rights to the Ace brand previously.

Two years in, the assimilation of the Ace brand by Peavey Industries continues. That includes a reorg based on a consulting project with The Foyer Group that looked at ways to make Peavey’s operations more efficient, says COO Dave Simmonds. “When we took on Ace, we did a lot of adapting on the fly and a lot of it wasn’t that efficient.” Much of the uncertainty came with the onset of COVID lockdowns which began just weeks after the deal was announced.

The latest efficiencies have extended to operations, supply chain, and category management. Buying teams for Ace, Peavey Mart, and Peavey’s MainStreet Hardware banner have been combined—both for in-store and online purchases—resulting in a handful of layoffs. “We’ve switched that around,” Simmonds says. “The category manager now operates in three channels, while respecting that each banner has different needs.”

The move was a positive one, Simmonds notes. “We were overbuilt and overstaffed for what we need to accomplish.”

The COO is proud of Peavey’s track record so far. He says that 100 people at Peavey are dedicated to supporting Ace either exclusively or as part of the whole team—far more support than Ace dealers had received before Peavey took over.

Simmonds stresses that Peavey’s commitment to Ace “is as strong as or stronger than when we started.”

Home Hardware “reimagines” its dealer event with move to Toronto

Home Hardware Stores Ltd. is returning to a live event this fall with a new location—and a new look—for its dealer event. After almost 60 years being held in and around Home Hardware’s headquarters in St. Jacobs, Ont., the dealer event will move to Toronto between Sept. 23 to 25.

While the event used to be called the Home Hardware Dealer Market, it’s got a new name: “Homecoming.” It is expected to host close to 3,000 dealer-owners, store staff, suppliers, business partners, and corporate staff at the Enercare Centre, on the grounds of Exhibition Place just west of downtown Toronto.

The fresh face for the event reflects the company’s shift from operating as a wholesaler to being an integrated retail-focused company. Home Hardware says that everything from the kick-off of the fall event to the training sessions—and even the pop-ups on the tradeshow floor—will be aimed at increasing support of its dealers.

“We are taking a successful Home Hardware tradition that started in 1963 and elevating it to meet the evolving needs of our dealers, as well as our brand’s growth and business strategy,” said Rob Wallace, Home Hardware’s chief retail operations officer.

Home Hardware’s past dealer markets have always included lots of training and education, but this year’s event is placing more emphasis than ever on promoting the culture and training aspect of the dealer experience. In addition to the traditional buying show, the event will include strategic updates and training sessions for dealer-owners and store staff along with social activities, keynote speakers, and a celebration dinner to recognize winners of Home’s own dealer awards.

“This reimagined event combines tradition with innovation, allowing our dealer-owners to stay on top of emerging retail trends, innovative products, and merchandising strategies,” said Marianne Thompson, Home Hardware’s chief merchandising officer.

Bonhomme rebrands with contractor stores and a focus on Ottawa market

Les Entreprises P. Bonhomme, a major dealer in the Ottawa and Gatineau market, has been repositioning itself over the past six months. That includes downsizing and developing a new customer focus—and launching a new banner to go with that new direction.

A long-time member of the Independent Lumber Dealers Co-operative, Bonhomme has been rationalizing its store count over the past decade. The Gatineau stores on the Quebec side of the Ottawa River used the Bonhomme name, while stores on the Ottawa side used the name Bytown Lumber (Bytown is a nickname for Ottawa).

Now more tightly focused on the Ottawa market, the four remaining Bonhomme stores have further narrowed their focus on the contractor customer, with an emphasis on core building materials for both residential and commercial markets. Those Ontario stores, in Rockland, Aylmer, Carleton Place, and Limoges, have been rebranded Bytown Pro.

But the company does not intend to exit the Quebec market. The Aylmer outlet is being relocated to Bonhomme’s head office location in Gatineau across the river. It will be bannered as Bonhomme Pro.

According to the company’s website, the repositioning puts the stores more in line with the needs of contractors and builders in and around Ottawa: “Recognizing the explosive growth and need for housing in the region, the company rebranded itself as Bytown Pro in 2022, with a distinct focus in providing supply and service to regional builders and developers that is second to none.”

Last week, the Bank of Canada raised its benchmark interest rate by a full percentage point, to 2.5 percent. This was the largest single increase to the rate since 1998. It was also the fourth increase since March, as the central bank seeks to counter runaway inflation. It had been speculated that the rate increase would be only 0.75 ppt.

Economist Peter Norman of Altus Group (seen here addressing the 2021 Hardlines Conference) told Hardlines that he expects to see a “softening through this year” in the reno market. The sector “has been holding up so far” but “traditionally … has been fairly interest rate-sensitive due to the amount of borrowing” that fuels the sector.
The renovation sector “last year was nuts, up about 25 percent,” Norman said in an email. “[It’s] also up so far this year a further 20 percent … so there is room for it to drop.”

Norman also provided a counter-argument to his prediction of decreased reno activity. “On the other hand … there is a school of thought that as the home sales market cools off, some homeowners will look more closely at a reno rather than a move. Also, some potential renovating homeowners have been waiting for availability of contractors and possibly lower prices before they pull the trigger. Those segments may be active later this year.”

BMF, the store design and installation provider for home improvement dealers, has made some organizational changes. Sarah Hounslow, who has been a key player in the growth of the company since its inception almost 20 years ago, has been promoted to president. Rob Wilbrink, formerly president and CEO, will retain the CEO position. Mark Ehrlick, former director of operations at Lowe’s Canada and director of dealer development at Canadian Tire, joins BMF as vice president of sales and marketing. Ehrlick joins Gavin Ford, who recently joined the company after working at Lowe’s leading store setups across North America.

Lowe’s Canada has named Denis Ouellet as category director, hardware and cleaning products. Ouellet was previously national sales manager at Sherwin-Williams, and he also held category management positions at RONA between 2012 and 2018.

At Castle Building Centres Group, André Laurin has been named a new business development manager for Ontario. Laurin will be responsible for the dealer support and business development in the north and east of the province. He joins Castle with some 15 years of LBM experience.

DID YOU KNOW…?

… that you can now buy tickets for the next Hardlines Conference? That’s right, registration is now available online for the 26th annual Conference, being held 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.

BMR Group welcomes a new member, H. Dagenais et fils Inc., beginning January 2023. Founded more than 90 years ago, Dagenais operates two locations in Quebec’s Laurentian mountains, in Saint-Sauveur and Sainte-Anne-des-Lacs. Owners Annie and Martin Dagenais oversee a team of 180.

Ace Canada has forged a deal with Thunder Bay Co-op in Thunder Bay, Ont., that will see the cooperative co-branded and presented as Thunder Bay Co-op Farm Supplies – Ace Country & Garden. Thunder Bay Co-op Farm Supplies opened in 1952.

BeautiTone, the paint business of Home Hardware Stores, is partnering with Mattel Canada to mark the 60th anniversary of the Barbie Dreamhouse. The palette of the BeautiTone Barbie Dreamhouse Colour Collection was designed with “playfulness and liveability” in mind, the company said in a release. Each of the 13 colours comes with its own Barbie-inspired persona. HGTV Canada host Tiffany Pratt is the line’s ambassador.

Inventive Construction Supplies in Dartmouth, N.S., has joined TIMBER MART. The dealer has been serving DIYers, contractors, and builders in the Dartmouth market with a wide assortment of hardware and building materials since 2015. With continued growth, the store looked to partner with a group to access greater buying power and brand recognition. Craig Humphreys is the store’s owner.

Goulais River Country Store, a Castle dealer in Goulais River, Ont., has changed owners. The location opened its doors over a decade ago and will continue its Castle affiliation under new owner Kenneth Peter Van Daele, who will operate it with his daughter Kendralyn.

Lowe’s Canada presented $385,000 to the Fondation Charles-Bruneau at this month’s Tour CIBC Charles-Bruneau cycling event. Between July 2 and 8, the Lowe’s Canada team of nearly 70 cyclists—including associates, affiliated RONA dealers, and vendor partners—completed a variety of treks ranging from 50 to 900 kilometres. Lowe’s Canada was a Diamond Sponsor of the event, which supports pediatric oncology research and development projects. In the last seven years, the Lowe’s Canada teams have raised over $3.7-million for the foundation.

SUPPLIER NEWS

Richelieu Hardware reported Q2 revenues of $487.9-million, up 31.4 percent. Net earnings rose by 27.7 percent to $77.9-million, or $0.83 per diluted share. Canadian sales grew 17.3 percent to $292.3-million. Sales to Canadian retailers reached $55-million, up $9.3-million or 20.4 percent from the comparable period of 2021.

Oldcastle APG, an outdoor living and building materials manufacturer based in Atlanta, has acquired Barrette Outdoor Living. Founded in 1975, Ohio-based Barrette has 14 locations in the U.S. Its fulfilment needs are served by a warehouse just outside Granby, Que., 45 minutes from the Vermont border. Oldcastle’s parent company is CRH plc, based out of Dublin, with operations in countries from Switzerland to the Philippines.

Shares of Resolute Forest Products soared by 58.3 percent recently after the announcement of its pending acquisition by B.C.-based Paper Excellence, The Toronto Star reports. Under the terms of the deal, Paper Excellence’s U.S. business Domtar will purchase the Montreal-based paper and pulp maker for about $2.7-billion. Resolute is itself the product of a merger. Abitibi-Consolidated and South Carolina-based Bowater Inc. formed what was initially known as AbitibiBowater in 2007.

ECONOMIC INDICATORS

Investment in building construction edged down 0.2 percent to $20.6-billion in May, StatCan reports. That, however, was largely due to a strike action by Ontario’s unionized construction workers. Excluding Ontario, construction spending rose by 1.1 percent nationally. Likewise, the residential sector edged up by 0.1 percent. Single-family investment slid 2.5 percent, ending a seven-month growth streak.

NOTED

The July edition of our sister publication, Hardlines Dealer News, came out last week. In this issue, we discuss supply chain woes, Home Hardware’s contractor business, and evolving customer habits. Plus, learn how one B.C. retailer is reaching out to local tourists. (Hardlines Dealer News is monthly—and it’s free. Sign up here to subscribe!)

OVERHEARD…

“The new organization makes Peavey leaner and meaner, which is a benefit for the dealers.”
—Dave Simmonds, COO of Peavey Industries, on the recent reorganization at Peavey’s head office to align the Ace Canada banner operations. Peavey holds the licence for the Ace brand in Canada.

The retail home improvement industry came off a second record year of sales growth in 2021.

Blame—or thank—pandemic conditions, which took their toll on so many businesses. Nevertheless, lockdowns encouraged Canadians to spend money on their homes. And so many dealers across Canada posted record sales increases.

But just how big were those gains? According to the 2022 Hardlines Retail Report, the industry grew by a healthy 11.3 percent last year, which followed even bigger growth the preceding year. Over two years, retail sales by hardware and building supply dealers advanced by almost 27 percent. (Editor’s Note: click on the link above to order your own copy of this 188-page, PowerPoint ready, report on the Canadian industry.)

The report, which includes essential intelligence on our industry’s Top 20 retail banners, buying groups, and big box players, calculates that our industry exceeded $58-billion in retail sales in 2021. The 2022 Hardlines Retail Report contains proprietary data available only from Hardlines.

While conditions during the past two fiscal years were not positive for all dealers, the exceptions could often be attributed to local business conditions. On a regional basis, however, every province and territory enjoyed positive gains in their overall sales. The biggest 2021 gains were posted in Alberta (almost 16 percent), followed by Saskatchewan (just over 14 percent).

The Hardlines Retail Report examines the performance of hardware stores, building centres, big boxes, and Canadian Tire stores to identify different trends affecting the industry. With people staying close to home during COVID, the importance of convenience and accessibility became very important. That trend was reflected in the performance of hardware stores—which experienced national growth of some 16 percent.

Big boxes represent the retail format with the largest rate of growth after hardware stores. Large-format retailers saw their collective sales increase by 12 percent last year, slightly ahead of the industry’s average growth rate of 11.3 percent.

(To pre-order you own copy of this exclusive report, click here now.)

Lee Valley Tools looks at smaller formats with online interface

Faced with rising rents, especially in urban locations where it flourishes, Lee Valley Tools is working on a smaller-format store. The Ottawa-based retailer, which currently has 18 stores, had to close two of them during COVID. One was in Toronto’s King Street West area, in a building being torn down to make way for a condo.

“Toronto is a challenge for us—and a challenge for all retail,” Lee Valley CEO Robin Lee admits. He told Hardlines that the pandemic temporarily put the brakes on further store openings. But the retailer is now in development phase for new stores—with a new format. He expects the new look to be finalized within the next 12 to 16 months.

Lee Valley will not follow a cookie-cutter approach in its new outlets. “We’re looking at the ability to tailor each store,” Lee says. “We’re working with Ernst & Young to imagine a greenfield retail model.”

And that starts with the size of the new model. They’ll weigh in at between 5,000 to 12,000 square feet, much less than the 20,000-square-foot size of a typical Lee Valley store. “Size will be informed by the design project, and may vary somewhat from community to community,” says Lee.

More importantly, he adds, these locations will provide an interface for customers to order online with the support of store staff, or serve as pickup points for orders made from home. “It’s not necessary to represent the entire product line.”

Canadian Tire makes a splash for its 100th anniversary

Canadian Tire marked its 100th birthday by “turning a random residential street in Toronto into a kilometre-long advertisement,” reports The Toronto Star.

Held between June 30 and July 3, the Summer of the Century event saw almost 50 homes on Bastedo Avenue in Toronto’s Danforth east-end neighbourhood transformed. Front yards were decked out with inflatable decorations. Across two blocks, residents got to see everything from garden gnomes to pink flamingoes.

The event, which kicked off with live music, treats, sidewalk chalk art, and giveaways, comes at a time when spending on outdoor (known as out-of-home or “OOH”) advertising has exploded.

“For the last two years, most interactions that companies have had with people have been virtual,” said David Soberman, who teaches marketing at the University of Toronto. “So they’re now wanting to get outside and advertise in the community.”

No permits are required for advertising on private property in Toronto—only the consent of the owners. While bylaws limit the scale of marketing installations, the city’s resources for enforcement are limited, even if a complaint were lodged.

“There are bylaws about how big advertising can be, but the benefit of displays like these is that they’re very temporary and probably take a few hours to put up and take down,” said Soberman. “And the community is evidently on board with it, so the risk isn’t high.”

At the conclusion of the festivities, all street decorations were donated to residents or saved for reuse.

Several Home Hardware dealers in Ontario recently finished a series of contractor events. It was a COVID-era version of Home Hardware’s Pro Road Show, and it was hosted at 10 Home Hardware Building Centres in Ontario last month.

Pre-COVID, Home Hardware had traditionally hosted these contractor events at half a dozen locations across the country. Each one was supported by multiple stores, drawing as many as 1,000 pro customers at a time.

As conditions under COVID have eased, Home Hardware tried out a modified version this year, using individual stores as the hosts for their respective contractor customers. For example, the one held at the Home Hardware Building Centre store in Picton, Ont., was held right in the dealer’s lumberyard.

“In the past, our Pro Shows have been hosted in Peterborough every two years,” says Busscher, “and generally we take two to three busloads of our pro customers.” But this year, Busccher’s hometown event grew to 200 pros who perused booths and watched demos from 19 vendors.

Brian Crouch is retiring from his position as sales director at Spectrum Brands, after nearly 25 years of service to the Weiser and Pfister brands. Crouch has been a key figure of the locks and faucet industries during a career that took him to Kwikset and Black & Decker before he joined Spectrum’s hardware and home improvement business. At the same time, Spectrum Brands is promoting AJ Bayne to the role of national sales manager, traditional retail.

DID YOU KNOW…?

… that you can now buy tickets for the next Hardlines Conference? That’s right, registration is now available online for the 26th annual Conference, being held 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.

Les Entreprises P. Bonhomme, an ILDC dealer in the Ottawa and Gatineau market, earlier this year divested itself of two stores in Quebec. Located in Papineauville and Buckingham, the businesses were acquired by Claude Bélec and Chantal Veilleux, co-owners of RONA Val-des-Monts.

Castle Building Centres Group has resumed its in-person Buying Expos, starting in central Canada. The summer events began in Quebec where Castle hosted a group of members from across the province for two days. That was followed by a three-day buying expo in Ontario at the Deerhurst Resort, where Castle welcomed hundreds of members and staff. Both the Quebec and Ontario events included one-on-one meetings with vendor partners and an extensive product showcase. (Click here to check out a video of event highlights.)

A fire of unknown origin in Palmarolle, Que., has destroyed a hardware store and an adjacent block of apartments. The blaze broke out late last Monday afternoon at Quincaillerie Palmarolle TIMBER MART and was subdued a few hours later. There were no injuries. Store owners Cindy Caron and Raphaël D’Amours are past winners of our Outstanding Retailer Awards, being named Young Retailers of the Year in 2016.

Lee Valley Tools held its first Plant Swap event at its Vaughan, Ont., location. It was hosted by Cheryl Li of The Modern Monstera. The Modern Monstera offers a variety of services, from plant styling consultations to plant rehab and DIY workshops, including tutorials on Lee Valley’s livestreams.

Century Home Hardware in 100 Mile House, B.C., held a grand opening last week, but with a twist. Along with special pricing on a variety of products, the celebration featured some unconventional inventory. The store has also expanded its offering with an M&M Food Market Express section. M&M has been growing its footprint in partner stores. The Express format allows retailers to carry a curated selection of frozen meals.

Canadian Tire is holding a Summer of the Century contest throughout July. Customers shopping with the Triangle Rewards program are entered to win prizes valued up to $1,000 in Canadian Tire money, offered daily. In addition, each purchase is eligible for one of 10 grand prizes of $10,000 in CT money.

SUPPLIER NEWS

Montreal-based Resolute Forest Products is set to be acquired by British Columbia’s Paper Excellence, through the latter’s U.S. business unit, Domtar. Paper Excellence will pay $20.50 for each Resolute share in a deal valued at about $2.7-billion, while retaining Resolute’s existing operations and personnel. Paper Excellence finalized the acquisition of Domtar last year, while Resolute was formed in 2007 from the merger of Bowater Inc. and Abitibi Consolidated. The transaction is expected to close in the first half of next year.

ECONOMIC INDICATORS

The value of building permits rose 2.3 percent in May to $12.1-billion. The increase was aided by a seven-percent spike in the non-residential sector, to a value of $4.3-billion. Residential permits edged down 0.1 percent to $7.8-billion overall due to declines in multi-family building intentions. For single-family dwellings, the value of permits rose by seven percent. (StatCan)

Investment in U.S. construction fell unexpectedly in May, with single-family building activity slowing down. Spending edged down by 0.8 percent. Investment in private builds was flat, while residential construction spending was up 0.2 percent. (U.S. Commerce Dept.)

OVERHEARD…

“I want to be the best I am at my job. But I also want to be the best mother. And juggling those two things can be difficult.”

—Jillian Sexton, co-owner of Sherwood TIMBER MART in Charlottetown, P.E.I., and winner of Hardlines’ 2021 Young Retailer of the Year Award. She dedicated her award to “the working moms.”

Hardlines has confirmed its speaker lineup for this fall’s 2022 Hardlines Conference (Queen’s Landing, Niagara-on-the-Lake, Ont.). This special roster of presenters is guaranteed to deliver two days of hard-hitting insights and ideas. Today and for the rest of this week, Hardlines subscribers can at last book their tickets.

If you are a Hardlines subscriber (dealers/retailers qualify for special pricing by using case sensitive coupon code DEALER2022), get front-of-the-line access to registration by clicking here now. Starting next week, remaining Hardlines Conference tickets will be released to the rest of the industry.

The top executive from Lowe’s Canada will headline this year’s conference. As president, Tony Cioffi oversees a network of stores in a range of formats that is unique in the world. Cioffi joined Lowe’s Canada in September 2016 as senior vice president, finance, and two years later was promoted to executive vice president. He then served as interim president of Lowe’s Canada before being named senior vice-president, stores, a position he held until his appointment to the top job in January 2022.

The Hardlines Conference will take delegates from the executive suite to the front lines. Rob and Joanne Lawrie are a dynamic husband-and-wife team behind seven Home Hardware, Home Hardware Building Centre, and Home Furniture stores in southwestern Nova Scotia. From its beginnings in 1982 when Rob’s parents founded a store in Annapolis Royal, N.S., The Lawrie Group has grown into one of the most innovative and inspired home improvement groups in Atlantic Canada—not to mention an Outstanding Retailer Award winner in 2021.

Hardlines speakers will also include Dan Tratensek, COO and publisher with the North American Hardware and Paint Association (NHPA). Tratensek will do a deep dive into the growing importance of e-commerce and how independent dealers need to understand the huge opportunity that it presents.

Don’t miss the 26th annual Hardlines Conference on Oct. 17 and 18 in Niagara-on-the-Lake, just 80 minutes from downtown Toronto. (Attendance is strictly limited. Book your tickets today by clicking here!)

Hardlines announces Whistler, B.C., location for 2023 Conference

The Hardlines Conference will move away from the Greater Toronto Area for the first time in its history beginning in 2023. Next year, the conference will be held in Whistler, B.C.

The fresh location is the first step in moving the Hardlines Conference to a different destination around the country from year to year, to better serve our industry on a truly national basis. And locating it at the Chateau Whistler, a premier Fairmont hotel, will ensure it is another first-class event. It will be held Oct. 17 and 18, 2023.

“As Canada’s only truly national event for the retail hardware and home improvement industry, we felt it was important to make the Hardlines Conference as accessible as possible to all Canadians on an ongoing basis,” said David Chestnut, vice president and publisher at Hardlines Inc.

“We plan to provide an improved venue by holding the Conference in the Chateau Whistler,” Chestnut said. “And the calibre of speakers will likewise be top-notch. We intend to bring to Whistler some of retail’s top international experts.”

The 2023 Hardlines Conference will be the 27th edition of the one-of-a-kind annual event, which is a key gathering point for top retail executives, leading dealers, major vendors, and of course a prestigious roster of Canadian and international presenters.

Hardlines is working with British Columbia’s Building Supply Industry Association (BSIABC) in presenting the Whistler event. BSIABC president Thomas Foreman said he and his team are looking forward to working with Hardlines to ensure next year’s conference will be superb. “It will bring a fresh perspective for Conference delegates,” said Foreman. “And it will be a huge opportunity for our members to participate locally.”

“The Hardlines Conference is simply the best information event I attend every year,” said Foreman. “It offers more information than any other event we attend. To have this now available right on our doorstep in British Columbia is very exciting. I believe it will be a really positive move for all of us. We’ll be working closely with our friends at Hardlines for our members to participate in a positive way.”

The 2022 Hardlines Conference will be held again this later year at the Queen’s Landing Hotel in Niagara-on-the-Lake, Ont., October 18 and 19. “We have had tremendous success at the Queen’s Landing in recent years,” says Chestnut. “Niagara-on-the-Lake is one of Canada’s most prestigious tourist destinations. Moving to the mountains of Whistler in 2023 is going from strength to strength, as far as impressive surroundings is concerned.”

Lee Valley Tools’ new stores will tie in closely with digital sales

One retail company that’s had a strong online presence well before COVID hit is Lee Valley Tools. The national specialty tool, gift, and seasonal products retailer has just 18 stores, but its reach online in both Canada and the U.S. is significant.

CEO Robin Lee says rising rents forced the company to shutter two stores, including one in Toronto’s pricey downtown west area, over the past two years. Still, as the world comes out of COVID, Lee Valley Tools is gearing up to open yet more stores. “We’re excited to get back on track with new stores,” he said.

These new Lee Valley stores will be built with a difference, Lee adds. They will accommodate the important digital side of the business. “Every one has to be a shipping centre as well.”

Lee uses terms like “zone skipping” and “flex labour” as he explains what the new stores will look like. But the stakes are high: as service levels keep rising (for example, Walmart Canada is launching a pilot program to deliver groceries and home goods to customers in 30 minutes) along with shipping costs, the challenge is always to figure out how to compete against the likes of Amazon.

Lee Valley will use a shipping network model, which means a single product can be taken off a store shelf and shipped cost-effectively. “It offers an improved service level for customers while at the same time it can balance the workload in-store when traffic is slow. It’s allowed us to really leverage our labour efficiency inside the stores.”

Another important advantage of the new system, says Lee, is that it will allow Lee Valley to find store locations that aren’t just based on street traffic.

Lowe’s Canada is in a unique position when it comes to e-commerce in Canada. Customers have at least three options for buying online from Lowe’s in this country: the Lowe’s site supporting some 70 Lowe’s big boxes in Canada; the RONA site, supporting more than 210 independent RONA dealers as well as close to 150 corporate-owned RONA stores; and the Réno-Dépôt site supporting 20 corporate stores.

Hardlines asked Michel Bernier, Lowe’s Canada’s senior director, sales and dealer services, about how the company’s e-commerce strategies have changed since the pandemic began.

“True expertise is the product,” Bernier replied. “It’s about the service, not just the product and the price. During the pandemic, we introduced online tools like our colour selector, which is easy to use … and also our deck design tool.”

“Customers are often building a project,” not just ordering individual SKUs, Bernier said. Lowe’s recognizes that customers needing expertise want to have a discussion online,  too.

Retail consultant Bill Morrison says that an important part of all smart retailers’ online strategies is to have exclusive or control brands that can protect them from direct price comparisons with the Amazons of the world.

Lowe’s Canada’s Bernier told Hardlinesthat his company’s control brands such as Ego, Craftsman, Kobalt, and Eklipse Cabinets have all been very important to growing his company’s online sales.

When the world began to lock down in March 2020, Lowe’s and RONA were already reasonably well prepared, he explained. “RONA was already in a favourable position because we had made significant investments in online.”

(Excerpted from a feature article on e-commerce in the forthcoming issue of our companion publication, Hardlines Home Improvement Quarterly. HHIQ is being mailed out to 11,000 dealers and store managers across Canada in early July. If you want your own subscription to HHIQ—it’s free to stores—click here now!)

Mike Tzimas will become president of Barrie, Ont.-based barbecue maker Napoleon, effective July 11. He joined Napoleon in January 2020 as vice president of finance and was promoted to CFO a year later. He succeeds Ron McArthur, who previously announced his intention to retire at the end of 2022. Prior to joining Napoleon, Tzimas held senior finance and manufacturing roles within the auto industry. He will report to Napoleon’s co-CEOs Chris Schroeter and Stephen Schroeter.

DID YOU KNOW…?

… that Hardlines subscribers can now buy tickets for the next Hardlines Conference? That’s right, online registration is now available exclusively for our faithful Hardlines subscribers. Sign up now before tickets go on sale to the wider industry by clicking here!

Pemberton Valley Building Centre in Pemberton, B.C., is the newest dealer to join TIMBER MART. Founded more than 20 years ago, the business has 36 staff across two properties. These include a 7,200-square-foot retail space in Pemberton and a four-acre lumber yard with a 24,000-square-foot storage unit for building materials a few kilometres away. By the fall of 2024, the owners, Garth and Valerie Phare, Blair Gourlay, Deborah Phare, and Jeff Clarke, plan to open a new 20,000-square-foot store that will combine hardware and building materials in one location.

IKEA Canada has a new marketing campaign ahead of Quebec’s July 1 Moving Day. It plays on French expletives and fictitious versions of the retailer’s distinctive Swedish product names. The day when most leases in the province end is famously fraught with headaches for tenants and movers alike. The new ads, developed with agency Rethink, pay homage to those challenges with taglines such as Les enfants ont cassé toute la KALAS de vaisselle (“the kids have broken all the ******* dishes”).

Gypsum Management & Supply reported Q4 adjusted earnings of $2.09 per share. Net sales were up 38.2 percent on a year-over-year basis, rising to $1.29 billion as compared with a projected $1.27 billion. The company has been expanding its product offerings in its Canadian outlets, adding lines such as tools and fasteners, exterior envelope, and roofing.

SUPPLIER NEWS

Attendance returned to pre-pandemic levels at this year’s spoga+gafa event. The world’s largest garden trade show was held in Cologne, Germany, earlier this month, a shift from its usual fall date. Foreign participants made up 67 percent of those attending, up from 65 percent in 2019. Next year’s event will be held June 18 to 20 in Cologne, on the heels of the Global DIY Summit, which takes place in Berlin from June 14 to 16.

Intertape Polymer Group’s pending acquisition by Clearlake Capital Group has been approved under foreign investment regulations. As first announced in March, the California-based investment firm offered $40.50 per share to take IPG private.

ECONOMIC INDICATORS

The inflation rate between May 2021 and May 2022 grew at its fastest in 40 years. Higher gasoline costs helped drive the rate of inflation to 7.7 percent in May. Because of the steepness of the increase, it’s now expected that the Bank of Canada will raise the benchmark interest rate by a 0.75 ppt in July. (StatCan)

NOTED

Overall holiday spending is expected to rise 31 percent in 2021, and up eight percent since 2019, with Canadians looking to shop, celebrate, and spoil friends and family, (Deloitte Canada: 2021 Holiday Retail Outlook)

OVERHEARD

“Retail prices should drop. Absolutely. It does take about three to four months for wholesale prices to feed through to retail pricing. So, I would think sometime fairly soon over the next month or two, we should start to see lower prices at the hardware store as well. From a retail perspective, it could be August.”
—Paul Jannke of Forest Economic Advisors, quoted in DrydenNow. Lumber analysts are expecting the pricing bubble to burst this summer, possibly reducing costs by as much as 50 percent.