The speaker lineup for the 26th annual Hardlines Conference has been finalized. It represents some of the brightest lights in retail—and starting next week, exclusive to Hardlines subscribers.

This year’s conference will be held at the Queen’s Landing Hotel, Niagara-on-the-Lake, Ont., Oct. 18 and 19. It will introduce the Hardlines audience to speakers and ideas that will help them improve their own businesses and provide insights into how to grow.

The new lead merchant for one of Quebec’s leading retail groups is the latest retail executive that we’ve confirmed to take to the podium this fall. Charles Grégoire-Béliveau was recently appointed vice president, merchandising, for BMR Group, where he oversees all activities related to the merchandising and commercialization of the group’s products.

What is driving the growth of Sexton Group? What is the continued appeal of buying groups in this industry that is helping them attract new members, often from outside the traditional building centre model? What does the world look like for dealers as we come out of COVID? Eric Palmer, vice president and general manager of the group, will share how Sexton Group has found a sweet spot with independents across the country that enabled it to grow by a whopping 36 percent in 2021.

What has retail learned through COVID and what learnings and best practices do we need to maintain or expand on? What can we learn from other retail sectors moving ahead? Considered one of the world’s leading retail and consumer futurists, Doug Stephens will challenge delegates to consider these questions carefully. In a high-touch retail environment like home improvement, the in-store experience will remain important alongside digital and both should be integral parts of how any dealer goes to market.

Other speakers include Lowe’s Canada president Tony Cioffi and Dan Tratensek, COO of the NHPA.

The 26th Hardlines Conference will be held Oct. 18 and 19 at the Queen’s Landing Hotel in Niagara-on-the-Lake, Ont. It will also be webcast virtually to delegates across the country. Hardlines subscribers who want to ensure their attendance can mark their calendars for next week to get front-of-the-line access, before tickets go on sale to the general industry. Dealers and their staff get a 30 percent discount off the in-person ticket price.

(To see the full list of speakers, please click here!)

Home Hardware’s new warehouse management system is up and running

Home Hardware Stores serves almost 1,100 dealers of all sizes, in every part of Canada. Their trucks are a familiar sight on Canadian highways. What is the engine that drives the product delivery system and keeps those trucks rolling and those store shelves filled?

Hardlines had the opportunity last week to get a first-hand look at Home Hardware’s distribution system. The company has three distribution centres, in Debert, N.S.; in Wetaskiwin, Alta.; and at its head office in St. Jacobs, Ont. That’s where we went behind the scenes to see the technologies that make up Home Hardware’s new warehouse management system.

Our guide was John Dyksterhuis, the company’s chief supply chain officer. Dyksterhuis was well known for many years as a buyer at Home Hardware, but he actually got his start with the company in distribution 36 years ago.

Inside the distribution centre, Dyksterhuis explained that Home Hardware has just finished installing and refining a warehouse management system that replaces its own Oracle system, a platform which dated back to 1990. The need for upgrades was identified in 2012, with implementation beginning two years later in the Debert DC. Home Hardware chose a system this time by Manhattan. Wetaskiwin followed, with St. Jacobs, Home’s largest DC, saved for last.

Dysksterhuis says some additional automation has been added to the St. Jacobs system, further enhancing the ability to manage supply chain and product flow. “With the automation comes the accuracy of the picking process,” he says.

The St. Jacobs DC processes orders for 130 stores on average per day, with three shifts operating daily, and two 12-hour shifts on weekends. Together, all three facilities fulfill 1,300 orders nationally per week.

Over the past two years, many Home Hardware dealers saw their delivery schedule curtailed. Deliveries that used to arrive twice a week were reduced to once a week. Dyksterhuis says this was not due to supply chain issues related to COVID. It was due to the limitations on the WMS as it was changed over to the Manhattan system.

“We’ve started to re-implement twice-a-week deliveries and we’re in phase one of that.” Stores that serve cottage markets have been among the first stores to return to full service, as they are heavily reliant on the summer business that is happening now.

Home Hardware says it’s operating at 95 percent capacity now and expects to be at full capacity by September.

BMR pulls the plug on La Shop, its urban store format in Montreal

BMR Group has closed its two La Shop locations on the island of Montreal. The smaller-format urban concept was designed to offer a more curated selection to condo dwellers in up-and-coming neighbourhoods. Hardlines was there in 2018 when BMR launched the banner’s inaugural store in Montreal’s Griffintown neighbourhood. A second location opened in the nearby town of Mount Royal, northwest of downtown Montreal, the following year.

In an email to Hardlines, Kaven Delarosbil, BMR’s director of communications and events, explained that circumstances have changed considerably since then. “The COVID-19 pandemic that has been raging since March 2020, the major repair work on Peel Street, and the construction of the Réseau express métropolitain [rapid transit system] near one of our stores have had a considerable financial impact on the operations of our two locations,” he wrote. “Conditions that were considered highly favourable in 2018 have unfortunately since dissipated.”

Delarosbil added that all affected staff members were given the opportunity to transfer their employment to other BMR locations. For their part, customers have the option of shopping at other local BMR stores or ordering online for home delivery or in-store pick-up.

The announcement comes at a time of significant challenges for urban retailers, who face mounting costs to maintain their square footage even as city centres densify with an influx of potential customers. Competition has also grown: the same year BMR opened the second La Shop location, IKEA and Walmart both announced concepts for urban proximity stores.

A new report indicates that the appetite for home improvements among Canadians remains strong. The 2022 Homestars Reno Report provides details of how Canadians have spent on renovations in their home.

HomeStars is an online marketplace connecting homeowners with home service providers. The survey was done with pollster Angus Reid.

Despite current economic conditions that include a hot national real estate market, inflation, and overall economic uncertainty, the survey revealed that, now more than ever, Canadian homeowners on average have been investing more of their cash on hand into home renovations. The report further indicates that this trend is expected to increase over the next 12 months.

Here are some highlights from the report:

• In the past 12 months consumers spent about $13,000 on average on renovations, up from up from $8,260. In the coming year, homeowners who plan to upgrade their spaces said they’ll spend nearly double that, or an average of $25,222.
• Forty-one percent of homeowners said they postponed planned renovations this past year due to high building materials costs, up from 35 per cent in 2021.
• Amongst those who have completed outdoor renovations or improvements in the last 12 months, the average spend was about $6,600, an increase of nearly $2,000 from last year.

Meanwhile, the trend to DIY remains strong. When it comes to completing renovations, just over half surveyed said they attempt to complete some renovations themselves to reduce costs. Homeowners in Atlantic Canada and Alberta are most likely to be willing to complete their own renovations.

Judy Palmer will retire from her position as director of sales and marketing for Cathelle,  effective June 30th. She spent 10 years with the Montreal-based electrical and plumbing supplier, but her career covers a range of specialties in the hardware and home improvement industry. She got her start as a buyer at Beaver Lumber, then moved to hardware wholesaler D.H. Howden as a marketing manager and buyer. Before joining Cathelle, Palmer worked for a number of retail POS providers, including Epicor and Dimensions. Alex Spillane, who has been part of the sales and marketing team for the past four years, has been promoted to take over Palmer’s role.

At Lixil Canada, Cosimo Coffa has been named general manager, trade sales and marketing, responsible for the American Standard, DXV, and GROHE brands. Marlon Thompson is now VP, marketing for Canada. He is responsible for the Canadian integrated marketing team of product, channel, digital, and pricing. He joined Lixil in 2019.

Goodfellow Inc. has appointed Robert Hall as its chair. He is a prominent Quebec lawyer and is also currently chair of the board of Bishop’s University. Hall replaces Douglas Goodfellow.

DID YOU KNOW…?

… that Hardlines Classified Ads are an effective—and targeted—way to connect with experts in the hardware and building materials sector for your next hire? Affordable rates and a broad reach through our huge database of industry executives, managers, store owners, and operators make Hardlines Classifieds a valuable tool for finding your next key hire! Contact Michelle Porter at the Hardlines World Headquarters to get hiring today!

The RONA Outaouais store in Buckingham, Que., held a grand opening ceremony following renovations to the 18,000-square-foot location. Owners Chantal Veilleux and Claude Bélec welcomed local dignitaries and managers from the RONA Dealer Support team to the board cutting. RONA Outaouais began in 2012 with the Val-des-Monts Building Centre. Veilleux and Bélec expanded to Buckingham and Papineauville earlier this year.

Schell Lumber Home Building Centre is marking 100 years of serving the Stouffville, Ont., community. The store was founded in 1922 by Wes Schell as Stouffville Planing Mill and is currently owned by fourth-generation dealer-owner Kyle Schell and his uncle, Steve Schell. Steve has been involved with the store for almost 50 years and previously co-owned the store with Ron Schell, who died this spring.

Ace Le Centre du Bricoleur in Saint-David-de-Falardeau, Que., has a new owner. Jessy Gauthier has more than 30 years of experience in the hardware industry. Through Ace’s partnership with Sexton Group for building materials supply, Gauthier will also be a member of that group.

Wiener’s Home Hardware, a downtown Toronto hardware store, is celebrating 100 years of serving the city’s Annex community. The Wiener family started the business in 1922 and joined Home Hardware when it was founded in 1964. Currently owned by Marty Wiener, the business will eventually move to the family’s third generation as Marty’s daughter Melanie prepares to move into the role of dealer-owner.

Wolseley Canada recently celebrated the grand opening of its newest branch in Vernon, B.C. The 12,000-square-foot facility offers the full assortment of Wolseley Canada’s plumbing and HVAC products.

SUPPLIER NEWS

The Recycling Council of British Columbia presented the 2022 RCBC Environmental Awards this month. The award for the private sector, which honours “businesses with outstanding initiatives to preserve and protect our environment,” went to EAB (Exchange-A-Blade). EAB has been recycling used power tool accessories such as blades for over 40 years. It also favours paper-based packaging and maintains a dedicated fleet of 29 hybrid and electric vehicles for its sales teams.

Liz Kovach, president of the Western Retail Lumber Association was in Ottawa recently for a series of meetings with the Canadian Chamber of Commerce. She also took part in direct meetings with the Canadian Real Estate Association and three MPs. The Transportation and Infrastructure Committee, where the WRLA participated, had several meetings with officials including infrastructure minister Dominic LeBlanc and Conservative transport critic Melissa Lantsman.

ECONOMIC INDICATORS

Retail sales increased 0.9 percent to $60.7-billion in April. Sales were up in six of 11 subsectors, led by higher sales at general merchandise stores. The largest decline to retail sales came from building material and garden equipment and supplies dealers. The 4.3 percent decrease was the first in four months. (StatCan)

U.S. housing starts and building permits both fell by more than expected in May. Residential starts declined by 14.4 percent to an annualized pace of 1.55 million, their lowest level in more than a year. Building permits for May were down by seven percent. (U.S. Commerce Dept.)

NOTED

The Building Supply Industry Association of B.C. is teaming up with HR and health and safety specialist Peninsula Canada. You can read some of Peninsula’s advice in our monthly Hardlines HR Advisor newsletter. (If you’re not already receiving this incredible HR newsletter, click here to sign up for free!)

OVERHEARD

"Sexton Group is very excited to embark on this new relationship with Mr. Gauthier. With his experience and entrepreneurial mindset, Le Centre du Bricoleur is sure to see a smooth transition into his ownership.”
—Eric Palmer, vice president and general manager of Sexton Group, welcoming Jessy Gauthier, the new owner of an Ace store which is also a member of Sexton.

Lowe’s Canada will roll out two dedicated brands in its stores over the next few months. The Flex and Kobalt tool brands are already in Lowe’s U.S. stores.

Flex is a power tool line for contractors and pros. The Flex line first arrived in Lowe’s stores in the U.S. just over a year ago as part of the retailer’s strategy to strengthen its connection with contractors. It’s produced by Chervon, a global tool manufacturer, which also manufactures Kobalt’s cordless power tool lines for Lowe’s.

The new lines are already available online, but they’ll be gradually introduced to stores beginning with Réno-Dépôt, which will get an expanded selection in time for Father’s Day. Lowe’s stores will get the lines in the fall.

“These two brands are real game changers for DIYers and contractors nationwide,” said Chris West, SVP merchandising at Lowe’s Canada, “thanks to products that set new standards in the market in their respective categories and offer more value to our customers.”

For the pro customer, Flex cordless tools boast fast charging times, long runtimes, and more power. Lowe’s, RONA, and Réno-Dépôt customers currently have access to some 30 Flex products, but this range is expected to grow later in the year with a second wave of products that feature lithium batteries.

“The addition of this brand is exciting news for our professional customers,” said Jeff Oben, senior director, pro sales – in store, at Lowe’s Canada. “Things move fast on a job site, so it’s essential for contractors to have reliable, high-performance tools that allow them to do more work, more efficiently. And that’s exactly what the Flex assortment offers.”

The Kobalt brand is a private label line of power tools designed for DIYers. It consists of a wide selection of cordless tools and outdoor power equipment for the retail market. The cordless tool assortment features more than 70 products in 24 and 40 volts. Kobalt also offers corded power tools, hand tools, and storage products.

Global DIY Summit: expect a new consumer mindset, more project sales

Expect the supply chain to remain in disarray for at least another eight months. Nor will inflation go away any time before that, though it will likely start to ease into 2023.

These were just some of the insights shared at the eighth Global DIY Summit, held earlier this month in Copenhagen, Denmark. The event drew 900 people from 55 countries, including retail leaders from 250 hardware and home improvement companies worldwide. Hardlines was there, and we met retail executives from Denmark, Finland, France, Italy, Australia, Germany, Japan, Britain, and the U.S.

The first day kicked off with an emphasis on the importance of sustainability in this industry, the quickened rate of change due to staggering worldwide inflation, the war in Ukraine, and disruptions in the supply chain.

Against that backdrop of world events, Mark Herbek, executive director, home improvement at the Cleveland Research Co., noted that home improvement retail was up 35 percent in the U.S. over two years under COVID (comparable to growth in Canada, according to Hardlines).

Out-of-stocks continue to run as high as 25 percent and this will extend the home improvement cycle as people push out projects until product is available. “But more dollars will be chasing fewer products and this is resulting in staggering inflation.”

While online sales continue to stay healthy, in-store traffic has flattened compared with pre-COVID rates. “We are past the peak in the U.S. We are now seeing a declining environment.” Herbek said that it has taken from 10 to 17 months historically for this cycle to recover.

Herbek believes that pent-up demand will keep home improvement stronger than other retail for the near future. But he pointed out some things to watch for. Expect permanent lifestyle changes among consumers: 13 percent of people surveyed by Cleveland Research say they’re not going back to pre-COVID activity.

And expect continued pent demand to drive in-store traffic. Half of consumers said they want to get going on projects that they’ve intended to do even before the pandemic, not because of COVID. So dealers should expect to sell more big projects.

Why your brand has to stand for something that’s important to consumers

One thing a roomful of retail leaders was looking for from the recent Global DIY Summit, held recently in Copenhagen, Denmark, was some direction on the way back to a normal world following the devastation of COVID. But one presenter did not have encouraging news.

“If you’re looking to settle into the new normal, there’s no normal to return to,” said Ken Hughes, a consumer and shopper behaviour specialist and customer experience strategist.

Succeeding in retail will always require retailers to understand their customers. But Hughes went even further. “You have to get inside the head of today’s consumer.” And with all the talk these days of being agile in business, he said resilience represents true agility now.

But he added another factor to the mix of evolving one’s business: “innovation must find ways to have fun” while attempting to confront and manage the forces of change.

“The metaverse is coming, but we’re not too sure how it will work. It’s coming, and we’ll all be immersed in it, but don’t know how it will work.” And it will grow, he predicts, to be worth several billion dollars.

Hughes talked about the “blue-dot consumer,” someone who stands in the middle of a virtual map of services and products, which will all now come to that individual. “We even have restaurants coming to us,” he noted. “Everything has circled around the customer.”

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

This requires a company to “know what you stand for and why the customer should be involved with you at all,” he said.

“It takes vulnerability and courage.”

A new retail strategy called “Concept Connect” is in the works at Canadian Tire, with plans to roll it out by the end of 2025. The program involves getting more sales space out of its stores.

“We’re looking to expand our square footage by 10 percent in the network, and we’ll be able to enhance over 50 percent of the square footage in the network,” said TJ Flood, president of Canadian Tire Retail, during a call to analysts following the release of its first-quarter results.

The project involves over $1-billion of the $3.4-billion Canadian Tire announced in March it plans to invest over the next four years to expand its digital reach and drive long-term growth.

The rollout of the new Concept Connect store format involves about 225 Canadian Tire stores. “And we’re making great progress,” Flood continued. One group of stores has already been launched, while another group will be launched during September and October.

“We’ve already opened five of them in the spring, including markets like Hamilton and Montreal. And we’re excited that we’re on track to launch two of what we’re describing as remarkable, retail versions of Concept Connect, which offer a little bit larger and augmented brand experience to showcase the best of what we have to offer.”

The Concept Connect format is being rolled out at the same time that Canadian Tire is introducing a new, large-format store called “Remarkable Retail.” This footprint exceeds 100,000 square feet, with openings already in Ottawa and Welland, Ont., and a location in Calgary targeted for 2025.

M-D Canada has appointed Andrew Gladstone as VP of sales, retail channel, effective June 6. He will oversee the management of all sales functions for the retail and consumer segments of the Canadian business. Gladstone joins M-D Canada from Onward Manufacturing, where he most recently served as VP of sales for all customer channels. Prior to that, he worked with MTD Products.

John Herbert, general secretary of the European DIY Retail Association (EDRA) and the Global Home Improvement Network (GHIN), was honoured with the Global DIY-Lifetime Achievement Award at the international associations’ Global DIY Summit, held in Copenhagen, Denmark. Herbert built GHIN to be an umbrella association linking major home improvement retailers worldwide. He is also co-founder and chairman of the Global DIY Summit.

DID YOU KNOW…?

… that the Hardlines podcast series, “What’s in Store,” has become a runaway hit? The latest episode features a conversation with Marianne Thompson, chief merchandising officer at Home Hardware Stores Ltd. To make sure you get access to every podcast as soon as it’s released, sign up here. Hardlines Podcasts are free!

The Atikamekw Council of Wemotaci is the new majority owner of the BMR store in La Tuque, Que. The $1.8-million transaction leaves the prior owner, Pierre Naud Inc., with the remaining 49 percent interest. The band council is the smallest of three in the Atikamekw nation, who are indigenous to central Quebec and speak a variety of Cree. A future second phase of the partnership would see a point of service set up in Wemotaci itself.

Federated Co-operatives Ltd. has named the latest beneficiaries of its Community Spaces program. FCL is investing a combined total of $1 million in 13 community projects across western Canada. This year, these include swimming pool improvements in Bengough, Sask., and a park revitalization in Hornby, B.C.

Canadian Tire Corp. has launched “Forward With Design,” its first in-house activewear brand. The line consists of three collections: Push (described as “elevated activewear”), Free (loungewear), and Friday (“transitional work-leisure”). Forward With Design’s full assortment is available at more than 200 SportChek and Sports Experts locations across Canada.

Giant Tiger Stores will hold the grand opening of a new store in Madawaska Maliseet First Nation, near Edmundston, N.B., on June 25. It’s a 17,800 -square-foot outlet; the retailer’s store count now boasts more than 260 stores.

SUPPLIER NEWS

Kruger Specialty Papers has completed its acquisition of the Domtar pulp mill in Kamloops, B.C. Operations at the facility, which makes softwood kraft pulp, will continue unaffected. The deal will allow Kruger to source high-quality pulp to some of its paper mills.

Gypsum Management & Supply has acquired Construction Supply of Southwest Florida Inc. The company has also opened four new greenfield locations and five new AMES Taping Tools stores. Established in 2002, Construction Supply of Southwest Florida is a distributor of stucco, building, and waterproofing supplies.

ECONOMIC INDICATORS

Sales of homes recorded via Canadian MLS systems fell 8.6 percent in May. That followed a larger drop recorded in April. The actual (not seasonally adjusted) number of transactions in May 2022 came in 21.7 percent below the record for that month set last year. (Canadian Real Estate Association)

Investment in building construction increased by 2.7 percent to $20.9-billion in April. Spending on residential construction rose 3.2 percent, a seventh consecutive monthly increase, to $15.7-billion. British Columbia saw the largest gain, up 8.3 percent. Investment in single-family homes increased 4.5 percent to $8.8-billion. (StatCan)

NOTED

Hardlines is now receiving entries for the 2022 Outstanding Retailer Awards. All Canadian hardware and home improvement retailers and managers who have operated under their current ownership for at least two years are eligible. Dealers may submit their entries directly to Hardlines. ORA submissions are due Wednesday, June 22. (To fill out the ORA application, please visit www.oras.ca; or contact our Acting Editor, Steve Payne, for further information. Le formulaire est également disponible en français.)

OVERHEARD

“We don’t have a percentage goal but I can tell you that if we have an opportunity to buy locally instead of from another country of region, we will buy local.”
—Marc-André Bally, senior VP at Costco Canada. He told Le Journal de Montréal that his company is focusing more on sourcing locally.

The departure of Pierre Laberge from the helm of Canac last month may have come as a surprise to many, but the Laberge family remains firmly in control of the Quebec home improvement chain.

Based in L’Ancienne-Lorette, in the Quebec City region, Canac has 31 stores throughout the province—with number 32 scheduled to open early in 2023—plus sales well in excess of $1-billion (source: Hardlines 2022 Retail Report). Canac employs 4,200 people and may, in fact, be the largest independently owned home improvement retailer in Canada.

Pierre Laberge retired early in May after 45 years in the business. He had been at the helm of both Canac and its parent company, Laberge Group, for two years, following the retirement of company founder Jean Laberge, Pierre’s cousin.

However, according to the company itself, Canac had already structured its higher management to ensure a smooth and successful transition. Martin Gamache took over from Pierre Laberge at Canac. Already the group’s director of operations, he keeps those responsibilities in addition to being named Canac’s general manager. Laberge Group’s new president, in charge of overseeing all the Laberge companies, including Canac, is Gilles Laberge.

All these changes will help support continued growth at Canac. It already has a dozen stores in the Quebec City region, but only about four in the Montreal area. Its next store will be in Contrecœur, 57 km northeast of Montreal along the St. Lawrence River. That store was supposed to be open by the end of this year, but complications due to COVID have delayed that until next spring.

Canac is also thinking about a new store near Hawkesbury, Ont., halfway between Montreal and Ottawa on the Ottawa River. There have also been rumours of a store in the Ottawa area. But, for now, Canac remains focused on expansion in the province of Quebec, where it anticipates adding several more stores, at the rate of one a year, in the coming years.

Top merchant at Home Hardware talks shop in latest Hardlines Podcast

A brand-new podcast from Hardlines features an in-depth conversation with the senior merchant at Home Hardware Stores Ltd.

Marianne Thompson is the company’s chief merchandising officer. On the latest episode of the Hardlines podcast series “What’s In Store”, she shares details about how Home Hardware has invested directly in its supply chain. And how it’s using new technology to track selling cycles, manage product orders, and get closer to its customers.

Thompson talks about the importance of the new buying team that has been created in St. Jacobs over the past few years. Following her arrival in 2019, a number of company veterans retired and both the hardware and LBM buying teams underwent a reorganization.

Whereas Home Hardware Stores Ltd. had traditionally promoted from within, maintaining Home Hardware’s culture and values, Thompson has brought a new rigour. The company has now been looking outward, hiring new buyers from other industries such as grocery—and even from competitors.

For example, Carol Crystal joined Home Hardware from Lowe’s Canada in 2020 as director, merchandise hardlines. Last month, Crystal, whose background also includes Walmart Canada and the Hudson’s Bay Co., was promoted to VP, merchandise LBM.

“Our strength at Home here lies in ensuring that our talent and our culture remain a competitive advantage,” Thompson says. New team members “come in with this exceptional level of expertise. And it continues to propel our business forward as we really stay focused on our vision, which is to be Canada’s most trusted and preferred home improvement retail brand.”

The new team is well positioned with the skills and experience to manage change as Home Hardware has been transitioning from a wholesaler to being more of an integrated retailer. “This is supporting our growth of moving Home’s business forward. So, I’m very, very proud of the team here at Home.”

(The full conversation with Marianne Thompson covers many more topics. You can hear it in its entirety at the Hardlines Podcast Series, “What’s in Store”. To make sure you don’t miss a podcast, sign up here. Hardlines Podcasts are a free service to you, our Faithful Readers!)

Insights from the Retail Council of Canada convention

What do staffing challenges, mental health, and brand alignment all have in common? They were all themes being explored at the latest “Store” convention held recently in Toronto by the Retail Council of Canada.

The opening session was a panel that tackled no less significant a topic than the trends facing retail coming out of COVID. The big one, said Dr. Sylvain Charlebois, a professor of food distribution and policy at Dalhousie University, is the importance of aligning the in-store experience with expectations customers will form online.

Another is labour. Patricia Baker, director for retail at Scotia Capital, stressed the importance of hiring people who understand the digital world, who know tech and data and how to use it. “I think labour is going to drive change over the next several years,” she said.

Customer expectations will continue to rise in the face of new technology, as well. When retailers are figuring out how to deliver groceries within 15 minutes, “The bar is rising,” Charlebois added.

Other sessions covered the human side of the business in even more personal terms. Henry’s Cameras is a well-known photography store in Toronto, considered the go-to for any serious photographer. Gillian Henry is the CEO of this family-owned business. She shared the very personal story of her battle with mental illness, which started with a breakdown during her first year at university. It was eventually diagnosed as bipolar disorder.

She urged companies to be willing to talk about mental health. That’s the best way to create awareness and acceptance, she said. Too many people are concerned that talking about their own issues will stigmatize them and cause them to lose their job.

“You have to show that it’s okay not to be okay.”

A well-defined and focused brand can not only present value to consumers but also help guide staff. At the latest “Store” convention held by the Retail Council of Canada, Susan O’Brien, chief brand and customer officer for Canadian Tire Corp., talked about how far-reaching the effects of a good brand strategy can be.

“Even staff can take pride that’s fostered when they’re involved in your brand,” she told the audience of retail representatives from across the country.

Throughout the pandemic, Canadian Tire faced challenges along with the rest of the retail community, but its high profile among Canadians made it more vulnerable to criticism. For example, when its website crashed in the early days of the lockdowns, the story made newspapers. But despite store closures and efforts to keep its people safe, Canadian Tire found money for COVID response and for investing in local communities.

On Nov. 22, 2021, O’Brien and Canadian Tire CEO Greg Hicks presented the new branding to the entire staff: “We are here to make life in Canada better.” The statement requires melding a company’s purpose with the need to make money and grow sales, but together these ideas make a company better, said O’Brien.

“Being there for Canadians isn’t just part of our brand. It is our brand,” she stressed.

Carol Crystal has been promoted to VP, merchandise LBM, at Home Hardware Stores Ltd. She joined the company as director, merchandise hardlines in August 2020 and moved to the comparable role in LBM in June 2021. Previously, she held executive positions at Lowe’s Canada, Walmart Canada, and Hudson’s Bay Co. In her new role, Crystal reports to chief merchandising officer Marianne Thompson.

DID YOU KNOW…?

… that Hardlines Classified Ads are an effective—and targeted—way to connect with experts in the hardware and building materials sector for your next hire? Affordable rates and a broad reach through our huge database of industry executives, managers, store owners, and operators make Hardlines Classifieds a valuable tool for finding your next key hire! Contact Michelle Porter at the Hardlines World Headquarters to get hiring today.

Lowe’s Canada has completed this year’s campaign to raise money and awareness for Opération Enfant Soleil and Children’s Miracle Network. Thanks to Lowe’s, RONA, Réno-Dépôt, participating dealer store teams, customers’ generosity, and donations from vendors, the network has raised $1,470,000 for these organizations this year.

Arthur Rivest Inc. in Sainte-Julienne, Que., is the newest member of TIMBER MART. Founded as a sawmill business in 1950, Rivest went on to branch out into hardware and building materials. Today, Arthur Rivest’s grandchildren, Michel Ricard and Nathalie Fortin, own the business, while his great-granddaughter Marie-Michèle Ricard, manages it. The retailer boasts a 2,000-square-foot store, a 4,800-square-foot warehouse, and a 2,400-square-foot garage.

The Home Depot has launched a line of children’s décor products exclusive to its U.S. e-retail site. The collection of almost 70 items includes everything from bedding to shower curtains.

Empire Co., parent of grocer Sobeys, will drop Air Miles and has instead acquired a stake in the Scene+ rewards program. Sobeys intends to exit the Air Miles program on a region-by-region basis, beginning with Atlantic Canada, between August and the first quarter of 2023. Founded in 2007 by Scotiabank and Cineplex, Scene+ has more recently expanded its range of rewards to include options for redeeming points at restaurants, Expedia travel bookings, and with gift cards for retailers such as Apple and Best Buy.

Dollarama’s Q1 profits rose by 28 percent to $145.5-million, compared to $113.6-million a year earlier. Sales for the quarter were up 12.4 percent to $1.1-billion. The removal of pandemic restrictions helped to drive store traffic, while inflation has made discount retailers an attractive destination. Dollarama opened 10 new stores during the quarter.

Home Depot Canada and Lowe’s Canada are among the recipients of this year’s Energy Star Canada awards. Overseen by Natural Resources Canada, the program recognizes organizations that offer energy-efficient products and technology to Canadians. Lowe’s Canada was named Retailer of the Year, National. It’s the company’s third win from Energy Star. Home Depot Canada was recognized for Sustained Excellence for the second time, its 14th Energy Star Canada award overall.

SUPPLIER NEWS

Jeld-Wen was a recipient of an award this year from Energy Star. It won in the windows and doors category. The company has now earned nine Energy Star awards, including six in that category.

ECONOMIC INDICATORS

The value of building permits fell 0.6 percent in April to $11.7-billion. Residential permits decreased 3.3 percent to $7.7-billion nationally, driven mostly by lower intentions in Ontario and British Columbia, while seven provinces posted increases. That decline was largely offset by a five-percent gain in the non-residential sector. (StatCan)

NOTED

Metro will no longer sell single-use plastic bags at its stores beginning this fall. The grocer says the move will mean that 330 million bags will be kept out of circulation annually. It follows other retailers who have phased out single-use plastics. Most recently, Walmart Canada pulled them from its stores in April.

OVERHEARD

“Each bedroom set leans into a central theme, including nautical décor, the great outdoors, modern princesses and more, to appeal to a broad range of children and parents.”
—Some of the verbiage that accompanied a release about Home Depot’s new line of products created to appeal to children. The products are available on the retailer’s U.S. e-commerce site.

The latest changes at the head office of BMR Group have resulted in a new head buyer, a new COO, and the departure of at least one senior executive.

Charles Grégoire-Béliveau (shown here) has been named vice president, merchandising. He joined BMR in 2016 as director, purchasing for corporate stores. In that role, he led the merger of the purchasing, distribution, and corporate stores teams. He also increased BMR’s imports from Asia. He was promoted in 2020 to senior director, merchandising before getting this latest title. Grégoire-Béliveau is chairman of Éco-Peinture, an organization that regulates paint recycling in Quebec.

Other changes at BMR include a new chief operations officer, Antonio Di Pasquale. He joined BMR Group in 2020 as vice president, supply chain and operational excellence. In this new role, he will oversee all of BMR’s operations.

In addition, Jonathan Gendreau, who had been VP business development, marketing, and customer experience at BMR, has left the organization. He had been with BMR since 2017.

BMR has seen a number of changes at head office over the past year. In March 2021, Alexandre Lefebvre was appointed CEO, replacing Pascal Houle as head of the group. Lefebvre came over from Lefebvre & Benoît, a large commercial dealer that is owned by BMR. In addition, changes to the group’s mid-level team to improve organizational structure, including the addition of Simon Gouin as senior director, business development for eastern Canada, occurred exactly one year ago.

The latest shuffle is aimed at helping BMR continue growing its dealer base in eastern Canada. Along with its strong presence in Quebec, where it has more than 230 stores, BMR has long been present in the Maritimes and particularly New Brunswick, where it has 11 stores. Its biggest growth target is Canada’s largest province, Ontario. There, it has 20 stores, including the recent additions of an important building supply dealer in Cornwall and the conversion of a contractor-oriented dealer in Elmvale.

TORBSA merges with U.S.-based buying group

TORBSA Ltd., the Bolton, Ont.-based buying group, announced last week that it had merged with another buying group, AD, a North American contractor and wholesale buying group. The merger is expected to close July 1.

“The decision to align our business with AD was one that was scrutinized thoroughly,” said TORBSA president Paul Williams. “TORBSA and its shareholders are truly excited at the road ahead, as we lay the foundation for what will be many years of success as a business.”

Founded in 1966, TORBSA represents 30 members in 40 locations across Canada. But with the merger, a new division of AD has been created: AD Canada Building Supplies. Williams will head this new division, which effectively replaces TORBSA, and TORBSA members will become shareholders of AD Canada. Williams will now report to Rob Dewar, president of AD Canada, while three additional TORBSA employees will join the AD team.

But what is AD?

AD is a wholesale buying group that provides contractor-related and industrial products to some 845-plus independent member owners in the U.S., Mexico, and Canada, and represents annual sales of some $58.5 billion. AD operates 13 divisions that cover industries including electrical, industrial, safety, bearings and power transmission, plumbing, PVF, HVAC, decorative brands, and building supplies.

TORBSA had previously been part of another hardlines buying group, OCTO, which specializes in plumbing and heating, electrical, and tools. Another member of OCTO that TORBSA had a relationship with is Indica. Indica represents some 440 industrial supply distributors in the U.S. and Canada that represent more than 1,600 locations. It has partnerships with 230-plus suppliers.

“AD brings decades of experience, strong leadership throughout the organization, with strong business ethics and core values that align with our own. Their scale and expertise across North America give us the strength to compete and succeed in an ever-changing marketplace,” Williams said.

AD’s Rob Dewar added that TORBSA’s strong leadership and financial success made the buying group an ideal match for AD. “TORBSA has been a leader in this space for a long time, and our new relationship will help us provide more benefits for members, including an increased supplier portfolio.” The deal also fits with a key priority of AD in recent years to grow its presence in Canada.

Canadian roofing giant IKO opens new Brampton facility

Canadian roofing products maker IKO held a grand opening recently to officially launch a new factory and warehouse in Brampton, Ont. The facility sits on the site of the original building that was constructed in 1959 and de-commissioned in 2017.

The new operation covers 150,000 square feet and is one of three finished product facilities on the west side of the Greater Toronto Area.

A tour of the plant by Hardlines revealed that it has capacity to store one million bundles of shingles and can produce 2,100 bundles in an hour. The brands made here are Dynasty, Cambridge, and Baltimore. Laminate shingles were on the production line during the grand opening, in response to the high level of demand for this type of product. IKO prides itself on its vertical integration: the wrapper and the granules used to produce the shingles had all come from sister facilities.

On hand for the ribbon cutting were brothers Saul and Henry Koschitzky, who built the original Brampton plant and remain active in the business. Their father, Israel Koschitzky, established the company’s first plant in Calgary in 1951. The fourth generation of the family is now involved in the business. (Pictured l-r: IKO’s Yekutiel Koschitzky and Jack Gottesman.)

CertainTeed parent Saint-Gobain has reached a deal to acquire Kaycan Ltd., the Montreal-based manufacturer and distributor of siding products. The $928-million transaction is slated to close—pending regulatory approvals—by the end of 2022.

The deal represents a net acquisition price of about US$820 million and includes the planned divestiture of Kaycan’s small U.S. distribution arm, which accounts for about US$70 million in sales. Saint-Gobain says it intends to hold onto Kaycan’s “locally well-established Canadian distribution.”

With the acquisition, Saint-Gobain says it is reinforcing its position in sustainable construction and its position as a siding player in Canada. The company also looks forward to enlarging its vinyl offering across the U.S. The company says this acquisition meets its strategic and financial aims to strengthen its leadership in North America, while enriching its offering in light and sustainable construction, particularly in aluminum and engineered wood siding.

Carol Crystal has been promoted to VP, merchandise LBM, at Home Hardware Stores Ltd. She joined the company as director, merchandise hardlines in August 2020 and moved to the comparable role in LBM in June 2021. Previously, she held executive positions at Lowe’s Canada, Walmart Canada, and Hudson’s Bay Co. In her new role, Crystal reports to chief merchandising officer Marianne Thompson.

DID YOU KNOW…?

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

Lowe’s Canada has reimagined its fall RONA market for 2022. This year’s Buying Show, which is held for its affiliated RONA dealers, is being re-launched under a new concept with a new name: RONA Connexia. The annual event will now be divided into three interconnected activities spread throughout the fall, kicking off in person Sept. 7-9 in Quebec City and from Sept. 14-16 in Vancouver. Conferences, training, and networking sessions with vendors and dealer support teams will be part of the shows.

Castle Building Centres Group held its Castle Expo at Deerhurst Inn in Huntsville, Ont., last week. The “speed-dating” format of the event gave all participating vendors face time with Castle dealers in attendance.

Lowe’s Canada received an award for the In-Store Experience & Design category (tied) at the Retail Council of Canada’s Excellence in Retailing Awards Gala last week. The award recognizes Lowe’s Canada’s implementation of myredvest, a self-serve and assisted checkout system implemented at 51 Lowe’s, RONA, and Réno-Dépôt stores in Canada in under two years. It’s Lowe’s Canada’s fourth RCC award in the last five years.

BuildDirect.com Technologies reported Q1 revenues of $24.4-million, up 16.8 percent from a year ago. Sales to pro customers came to $18.7-million, an increase of 14.7 percent from Q4 of 2021. Gross profits rose 18.1 percent year-over-year to $8.7-million.

SUPPLIER NEWS

Taiga Building Products has been honoured with a Telly Award for one of its promotions. The 40-second ad entitled “You don’t need luck” took Bronze in the category Non-Broadcast: General Sales. The Telly Awards began in 1979 to recognize the best TV commercials, and have since grown to cover non-broadcast and digital content.

A class action suit against Visa and MasterCard has been settled to the tune of $131-million, The Globe and Mail reports. Retailers who have accepted credit card payments can join the class until Sept. 30. Small businesses (with under $5-million per annum in sales) can receive $30 for every year they accepted card payments, up to a maximum of $600. They do not need to document their claim. The suit was launched in 2010 over the fees charged to merchants for processing credit card payments. As a result of the settlement, retailers will be allowed to charge customers extra to cover their card fees beginning in October.

IN MEMORIAM

Yvonne Patton (Castle Building Centres)

After a brief battle with cancer, Yvonne Patton died on March 18. Yvonne was well known throughout the industry as one of the faces of Castle Building Centres Group Ltd. She was the executive assistant to president and CEO Ken Jenkins, sharing the role with her colleague and close friend Peggy Cuff. Together, Yvonne and Peggy were the key contacts for the company and worked in unison to coordinate the group’s annual general meetings. Yvonne is survived by her husband, Gary, children Joshua (Sabrina) and Cameron (Diana) and Yvonne’s granddaughter Olivia. She was predeceased by her father, Samuel Joseph Freel.

ECONOMIC INDICATORS

Total construction spending in the U.S. for April was estimated at a seasonally adjusted annual rate of $1.74-trillion. That’s up 0.2 percent over the previous month. Spending on private construction was up 0.5 percent, while public construction spending was down 0.7 percent from March. (U.S. Commerce Dept.)

NOTED

Government inaction on promises to reduce credit card fees is putting pressure on small businesses, The Globe and Mail reports. The increase in card payments during the pandemic has heightened the urgency of the situation. The Liberals campaigned on a pledge to reduce the cost for retailers in the 2019 and 2021 elections.

OVERHEARD

“We both share a passion for serving independents and helping them thrive in competitive markets, and we’re honoured to have them join the AD community.”
—Rob Dewar, president of AD Canada, on the wholesale buying group’s merger with TORBSA, a buying group representing 40 dealer locations in Canada.

If lockdowns, supply chain disruptions, and galloping inflation weren’t enough to deal with, Home Hardware’s 1,000-plus stores across Canada have also had their own local, individual challenges. These are just some of the topics we cover in our new Hardlines Podcast with Marianne Thompson, chief merchandising officer at Home Hardware Stores Ltd.

Thompson joined Home Hardware in January 2019 as VP, merchandise, after serving as VP at JELD-WEN and, before that, Alexandria Moulding. She has quickly risen to assume the role of the company’s top merchant, overseeing both the LBM and hardware buying teams. She spoke with Michael McLarney for the forthcoming episode of our podcast series, “What’s In Store.”

Thompson said that the challenges of getting a consistent and reliable supply of product has made it difficult for everyone in our industry. “It’s not immune to the global supply chain challenges, including labour and product shortages, the raw material price increases, and also port congestion.” She added that restrictions and lockdown in parts of China due to a resurgence of COVID “further compounded this situation.”

Dealers have faced—and continue to face—additional challenges, many of them regional in nature, Thompson said. “Here in Canada, we’ve had environmental and economic challenges that have played a role, including the floods in B.C. last summer, with additional floods a few months later… impacting Nova Scotia, Newfoundland, New Brunswick, and Cape Breton, along with eastern areas of Quebec.

“And then on top of that we also saw forest fires in B.C. Hundreds of rail cars were halted by these wildfires and damaged tracks, creating an additional backlog of exports from the western provinces.”

Managing supply meant moving seasonal ordering times up to accommodate the longer lead times from the Asia, Thompson said. Plus, Home Hardware decided to secure more product than in the past to keep its dealers’ shelves stocked. It also required spending a lot of time working behind the scenes to move product around from region to region and from one DC to another. “That was really so critical so that we didn’t get caught up in that bottleneck to ensure that we could fulfill our dealers’ orders when they came in.”

The full conversation with Marianne Thompson covers more details about how Home Hardware invested directly in its supply chain, how the company is using new technology to track selling cycles, manage product orders, and get closer to its customers. You can hear it in its entirely on the next episode in our Hardlines Podcast Series, “What’s in Store,” being released later this week. To make sure you get access to this podcast as soon as it’s released, sign up here. Hardlines Podcasts are free!

Canadian first-quarter performance of Home Depot and Lowe’s

Both Home Depot and Lowe’s Cos. released their first-quarter earnings results earlier this month. And both showed tremendous gains through the late winter and spring seasons. (They both have fiscal year-ends of Jan. 31, so Q1 results cover the February to April period.)

However, results were a little more complicated for the Canadian side of the business at both Home Depot and Lowe’s.

In an earnings call to analysts, Lowe’s CEO Marvin Ellison commented on his company’s performance north of the border during Q1. “Last year, Canada’s results benefited from record-high lumber prices due to the higher lumber mix in our Canadian business.” This year, the Lowe’s Canada business continues to operate in a different fashion than its U.S. parent, as a wholesale distributor to a network of 200-plus independents operating under the RONA banner.

That business got a boost at the beginning of 2022 with the naming of Jean-Sébastien Lamoureux to the position of senior VP for RONA affiliates for the company’s wholesale business, in addition to his role as senior lead for public affairs at Lowe’s Canada.

At Home Depot, executive vice president and CFO Richard McPhail gave analysts some insight about the Home Depot Canada business. Same-store sales for the entire company were up 2.2 percent over the first quarter of 2021, with the U.S. stores showing positive comps of 1.7 percent. McPhail said Canada “posted comps above the company average.”

McPhail also noted the massive size of the contractor market that Home Depot is reaching out to—noteworthy in light of rising interest rates. “I think it’s important to remember that our addressable market is the 130 million housing units occupied in the U.S., plus probably… 40 million to 50 million more in Canada and Mexico.”

Regardless of the housing market, the Canadian business remains strong. Ted Decker, Home Depot’s COO, noted that “our Canadian business is in terrific shape,” as year-over-year performance grew following the “significant lockdowns last year,” which restricted store openings, especially in early 2021. “[In] Ontario, in particular, our stores were closed in the first quarter, and we had curbside pickup only. So the business is very, very strong.”

Canadian Tire builds online loyalty with Triangle Rewards program

Canadian Tire Corp. is managing its range of banners and brands by encouraging customers to use its Triangle Rewards program as the focus for all its online shopping possibilities. And based on the company’s first-quarter results, the strategy is working.

“Triangle Rewards members drove our results in the quarter, with loyalty sales up 13 percent compared to last year,” said Canadian Tire president and CEO Greg Hicks in a recent call to analysts.

The company remains focused on both new Triangle Rewards member acquisitions and engaging existing members even more substantially. Canadian Tire added 400,000 new members in the first quarter. “More than 25 percent of these new members now have a credit card and over 40 percent of them have registered for our one-on-one personalization program,” Hicks said. Canadian Tire is seeing more and more Triangle members shopping at the company’s various banners, including Sport Chek, Mark’s, and Party City.

“We remain focused on driving member cross-shop across our ecosystem,” Hicks added. “And in Q1, over one-third of our members shopped at more than one banner, which is significantly higher than last year.”

An innovation for the online shopping experience is the “widget.” It’s a pop-up function that appears for online shoppers to guide them to related offers and encourage add-on sales. Hicks explained: “For example, imagine you’re viewing the product details of a trampoline on the CTR website. Just below the add-to-cart button is an ‘activate offer’ widget, showing that if you spend $100, you’ll earn 20 times the e-Canadian Tire money, which equates to saving an additional $30 on the trampoline.”

Testing of the offer widgets ended up driving up the average order by 17 percent compared to a control group of CTR shoppers, while a similar test on the Marks website drove a 34 percent increase in average spend per visitor.

“We’re very focused on integrating our existing banners into one enterprise-wide platform,” said Hicks.

When we talk about growth of the green sector we are not only talking about plants and outdoor living. So, what is the green sector in broader terms? According to a new report from the Global Home Improvement Network, the concept is far-reaching, with many arms reaching into the retail home improvement industry.

First, it’s important to take a broader view of what green means. The green sector also relates to products that are future-oriented and sustainable, as well as working in a manner that is committed to the future of the planet and the well-being of the public. Protecting biodiversity and promoting this, as well as improving air quality, are all themes that fall under the green sector.

The retail home improvement sector is in a unique position to be able to influence and promote sustainability in its own operations, in addition to in the lives of its customers. Through the sale of sustainable, energy-saving, and waste-reducing products, the home improvement industry can have a dramatic impact on green living.

One of the key factors to promoting the green sector is to make customers aware of the types of benefits they will personally see when living in a more sustainability-oriented way. Initiatives and changes such as insulation of homes and installing solar panels require an up-front investment, but the savings will be seen in the long term.

Overseas, a number of retailers are promoting the move to sustainable living through personalized and holistic offers. For example, the home improvement retailer Merkur in Slovenia has established the Merkur TEO programme, which offers “complete solutions for your entire home in one place.” These types of complete packages are likely to become more commonplace in the future and are one way of ensuring customers will be able to access green ways to live more sustainably.

The green sector is becoming an essential sector to consider, especially as we move toward a green economy. Governments and international bodies are building expectations in this area, through programs and frameworks that should make the transition more fluid.

In its unique position, the home improvement and garden sector is perfectly positioned to act as a global example for sustainable initiatives and practices. Promoting these both within one’s company and to the customer base will ensure the sector remains relevant.

Stephanie Chan is the new channel marketing manager at DAP Canada, reporting to DAP’s senior marketing manager Renato Oliveira. Chan was most recently with Northern Response.

DID YOU KNOW…?

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

First-quarter earnings for Lowe’s Cos. rose to $2.33-billion, or $3.51 per share. The increase came despite a decline in sales as homeowners returned to their offices. Net sales fell three percent to $23.66-billion, with overall comp sales down by four percent.

Groupe A-1 is the newest member of the Sexton Group. The company is a brand-new dealer in the Abitibi area of northern Quebec, a start-up by owner Hervé Leblanc, who has operated a construction company in the region for the past 19 years. The new store is focused on sales to contractors, specifically residential and commercial trades.

The Home Depot earned $4.23-billion in the first quarter. That was up from $4.1-billion a year ago. Total revenues rose by about four percent to $38.9-billion. Same-store sales were up 2.2 percent worldwide and 1.7 percent in the U.S.

IKEA Canada has opened its first location in a downtown core in this country. IKEA Toronto Downtown – Aura occupies the first two floors of the Aura Shopping Centre at the corner of Yonge and Gerrard. The 66,000-square-foot cashless store offers more than 2,000 products available for purchase. It also serves as a showroom for bulkier items like furniture that can be ordered for home delivery.

Dollarama has doubled CEO Neil Rossy’s compensation compared to prior to the pandemic, The Globe and Mail reports. In 2021, Rossy earned $7.83-million, an increase from $6.83-million in 2020 and $3.8-million in 2019. Larger bonuses were a significant contributor to the increase, as Dollarama benefited from a boost in sales during the pandemic.

SUPPLIER NEWS

Michigan-based Shepherd Hardware Products, a division of the Colson Group, has announced the completion of its acquisition of Waxman Consumer Products’ floor care line. With this transaction Waxman’s floor care brands, including SoftTouch, will join Shepherd’s existing lines, which include FeltGard and SlideGlide.

Iowa-based construction tech startup MSuite has been acquired by Stanley Black & Decker. Founded in 2015, MSuite offers a cloud-based suite of tools that connect building teams and allow them to share and manage data. In 2020, the company raised seed money from Stanley Black & Decker’s venture arm. MSuite founder Britton Langdon will continue to oversee the business as VP of construction technology for Stanley Black & Decker.

ECONOMIC INDICATORS

Retail sales were flat in March as lower automotive sales cancelled out gains in the other 10 subsectors. Core retail sales grew by 1.5 percent, led by a 3.7 percent gain in LBM and garden categories. (StatCan)

Sales of newly built homes in the U.S. sank in April to a COVID-era low. They were at a seasonally adjusted annual rate of 591,000 units, down 16.6 percent below the previous month’s estimate of 709,000. However, new housing activity remains 14.6 percent above April of 2021. (U.S. Commerce Dept.)

Sales of existing U.S. homes fell in April to their lowest rate since the pandemic outbreak. Sales fell by 2.4 percent from March to an annualized pace of 5.61 million units. Compared to last April, they were down 5.9 percent. (National Association of Realtors)

NOTED

The Retail Council of Canada will hold its Store 22 conference on May 31 and June 1 at the Toronto Congress Centre, North Building. Speakers will include Susan O’Brien, chief brand and customer officer at Canadian Tire Corp.; Rosie Ponzar, COO of Sephora Canada; and Eric Morris, managing director of retail, Google Canada. Click here for more information and for tickets.

OVERHEARD

“Looking back over that time, we’ve had the good fortune to work with successful retailers and their suppliers across Canada, the U.S., and the Caribbean. We’ve added many new retailer and vendor clients along the way and grown the business with the addition of our U.S. office in 2000, continuous investments in technology, web offerings, and mobile recruiting tools.”
—Wolf Gugler, president of Wolf Gugler Executive Search and well-known industry recruiter, celebrating a quarter-century recruiting talent for the retail home improvement industry in both Canada and the U.S.

“The future belongs to retailers who can provide the most seamless experience across digital and physical channels.” Greg Hicks, president and CEO of Canadian Tire Corp. shared this view on his latest call to analysts, following the release of the company’s first-quarter results.

“We are investing to provide a seamless end-to-end connection along the supply chain and to our customers across whichever channel they choose,” he added, noting that a new platform is being rolled out to facilitate that connection.

One way Canadian Tire has been working throughout the first quarter to enhance its omnichannel experience is through the deployment of in-store technology across the store network. These enhancements included the installation of electronic shelf labels, which, through a designated app, guide customers directly to products in the store.

Canadian Tire also added pickup lockers at 86 more CTR stores, while at its Sport Chek stores, DoorDash delivery is being used to get products to customers’ doors. The company expects 90 percent of Sport Chek’s e-commerce customers will be serviced by DoorDash by the end of Q2.

Another platform to expand Canadian Tire’s omnichannel experience is the development of “One Digital,” which is “a future-safe digital ecosystem that will serve as the new, single digital platform used across all CTC banners,” Hicks said. The platform was tested in New Brunswick in Q1 and has been introduced nationally at CTC stores. The company plans to bring its banners Mark’s, Sport Chek, Triangle, and Party City onto One Digital by the end of the year.

“It’s a critical part of our evolution from a company made up of disconnected banners, brands, and services to an enterprise-wide platform where all banners and channels collectively amplify and render each other more valuable, creating a truly differentiated customer experience,” Hicks said.

B.C. BSIA confronts challenges of hiring in home improvement

A project to figure out how to make the home improvement industry more attractive to potential workers has become the focus of the Building Supply Industry Association (BSIA) of British Columbia. To do it, the group has plugged into provincial government funds from the Ministry of Advanced Education and Skills Training, and has turned to R.A. Malatest and Associates to execute the study.

“It’s an 18-month deep dive into our industry,” says Thomas Foreman, president of the BSIA. Frustrated by the shortcomings of the industry in terms of recruitment and succession planning, Foreman wanted to build a blueprint for helping member companies, which include dealers and suppliers, to tap into the province’s workforce.

Like everywhere in North America, staffing in B.C. has become a huge issue. Yet, at the same time, the industry is busier than it has been in two decades, preventing many companies from having the luxury to look ahead and plan their new talent strategies. “All of us see what the challenges are,” Foreman adds. “We just don’t have the solutions.”

Take training, for example. Most of the focus in this area is on entry-level skills, important enough for any new employee. But, with some exceptions, there’s a lack of meaningful training for managers and other senior people that might be groomed for more long-term roles.

The answer, Foreman says, is to get more data on who the future workforce represents, and what their values are. Malatest has been constructing and conducting surveys and focus groups to gather that data. The study is now in phase two, and Foreman expects the final report to be ready next spring. “It’s exciting to find out where the gaps are and come up with the solutions.”

Foreman admits he finds some companies resistant to change, but it’s necessary to look at the market with fresh eyes post-COVID. “Eighteen dollars an hour doesn’t cut it anymore.”

BMR continues to solidify its presence in Central Canada

BMR held two grand openings this month, one for its new member retailer in Cornwall, Ont., and one for a Quebec store that joined its banner during the pandemic.

Earlier this month, Quincaillerie et Matériaux P.A. in Les Cèdres, Que., had an official grand opening after taking the BMR Express banner in June 2020. The store has a long history. It started out in the 1880s as a general store and funeral home.

The same week, Perkins Home Centre Ltd. (shown here) in Cornwall, Ont., had its own grand opening event. That store, under owners Roy and Muriel Perkins, is celebrating its 50th anniversary this year.

A month earlier, BMR realized further expansion in Ontario with the addition of a new store in Elmvale, Ont. Dealer George Begley operates a contractor-oriented store, so he adopted the BMR Pro banner, which has been designed for stores with a heavy pro customer base. The store boasts 8,000 square feet of floor space and an 11-acre lumber yard. Redevelopment is slated for completion by June, including an updated façade with BMR’s colours.

At the same time, BMR’s Winchester, Ont., store is under new ownership. Previous owner Ken Boje made the decision to sell after more than a decade with the banner. The Drevniok family, under president Darcy Drevniok, assumed ownership on April 1. The store is being renamed Winchester Building Supplies Inc.

Meanwhile, BMR continues to invest in its Potvin & Bouchard business in Quebec. The banner has four building centres there, in Jonquière, Chicoutimi, La Baie, and Alma, plus a distribution centre. Acquired by BMR in 2008, the business is now celebrating 90 years since its start as a carpenter’s workshop and lumberyard in 1932. BMR has made investments of over $5-million in the last few years to renovate and standardize the stores.

An estimated 50,000 Ontario construction workers are on strike, including carpenters, labourers, plumbers, and pipefitters. Although the strike affects mostly the ICI sector (institutional, commercial, industrial), the job action is growing quickly and threatens project delays in a construction market already backed up by the pandemic delays of the past two years.

The strike is about money, with the carpenters’ union saying that the current inflation rate of 7 per cent forces their hand. The Labourers’ International Union of North America (LiUNA), traditionally fierce rivals of the carpenters’ union, tells the same story.

This is the largest construction strike in Ontario in more than 20 years. Although many Ontario LBM dealers do comparatively little business on the ICI side, construction strikes have a cascading effect, with inspectors, suppliers, and trucking all impacted. “Even though it’s mostly on the ICI (institutional, commercial, industrial) side, it’s beginning to affect us,” said Dennis Fernandes, contractor and commercial sales for Downtown Lumber, a Home Hardware dealer in Toronto.

Martin Gamache was recently promoted to general manager of Canac, the giant family-owned home improvement chain based in Quebec City. Gamache will head the day-to-day operations of Canac, taking over from the former boss at head office, Pierre Laberge, who has retired from daily operations of the 31-store chain. Gamache was formerly operations director at Canac, a role he will keep. Pierre Laberge, Jean Laberge and other Laberge family members remain the shareholders and directors of Canac.

At Castle Building Centres Group, Bruce Holman will retire as director of business development this summer after nearly two decades building the dealer base for the Mississauga, Ont.-based buying group. Doug Keeling, who has been business development manager for Ontario since he joined Castle in 2016, will replace Holman in the national role, effective Sept. 1.

Pierre Nolet has been promoted at Lowe’s Canada to the role of regional director, operations, for dealer sales and service in Eastern Canada. He was most recently director of business development for the RONA business at Lowe’s Canada. Nolet was formerly at BMR Group and joined Lowe’s Canada exactly one year ago.

Marc Leblanc has been promoted at Acceo Solutions. Leblanc had been VP of hardware store and building supply industry solutions since the beginning of 2018. He is now senior VP and has gardening centres added to his portfolio. A veteran of the company, he’s been with Acceo for more than two decades.

DID YOU KNOW…?

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

Canadian Tire Corp. released its first quarter results for the period ended April 2. The company reported consolidated retail sales At Castle Building Centres, Distribution Rioux based in Saint-Louis-du-Ha! Ha!, Que., has joined the group as its newest member. Founded in 2015, Distribution Rioux also has a location in nearby Degelis. Founder Guy Rioux operates two other businesses including a sawmill in the area.

TORBSA has kicked off its second Annual Virtual Vendor Expo last week. The event continues until May 27. The platform allows dozens of TORBSA’s preferred suppliers to showcase their newest products while offering show specials to the group’s shareholder network. The online offering will complement in-person events planned for later this year.

eBay has partnered with FedEx to give Canadian sellers access to FedEx shipping services directly through eBay Labels, a proprietary label printing solution. The integration of FedEx technology gives eBay sellers a seamless, on-platform experience to access FedEx domestic and international shipping tools and services—all at preferential rates. This Canadian technology enhancement is designed to help eBay’s online sellers be more efficient with their e-commerce sales.

Facing continued supply chain challenges along with the rest of the industry, Canadian Tire Corp. is looking ahead to ensure that it can maintain inventory levels. The company continues to adjust its lead times and is already ordering for its fall and winter inventory to ensure delivery for those seasons.

SUPPLIER NEWS

Hardwoods Distribution Inc. saw its Q1 sales rose 121.5 percent to $644.9-million, a year-over-year increase of $353.7-million. Profits for the quarter grew 234.7 percent to $43.5-million, from $13-million a year earlier. In Canada, sales increased by $18.8-million, or 38 percent, compared to the comparable period of 2021. During the quarter, HDI closed its acquisition of Missouri-based Mid-Am Building Supply Inc.

ECONOMIC INDICATORS

Sales of existing Canadian homes fell by 12.6 percent in April compared to the previous month. The decline placed monthly activity at the lowest level since the summer of 2020. Sales were down in 80 percent of local markets, with exceptions in Victoria, Montreal, and Halifax-Dartmouth, where sales edged up slightly. The actual (not seasonally adjusted) number of transactions in April came in 25.7 percent below the record for that month set last year (Canadian Real Estate Association).

The annualized rate of housing starts in April was 267,330 units, an increase of eight percent from March. The rate of total urban starts increased by 10 percent to 245,324 units in April. Multi-unit urban starts increased by 14 percent to 178,092 units while single-detached urban starts increased by one percent to 67,232 units. (CMHC)

NOTED

During its first quarter, Canadian Tire Corp. processed 55 million transactions on its Triangle credit cards. These purchases spanned not only all the CTC banners, but thousands of hosted merchants across Canada.

The Retail Council of Canada (RCC) will hold “retail’s biggest event of the year” in just over a week’s time. The RCC Store 22 conference will take place May 31 and June 1 at the Toronto Congress Centre, North Building (Front Street). Speakers will include Susan O’Brien, chief brand and customer officer at Canadian Tire Corp., Rosie Ponzar, COO of Sephora Canada, and Eric Morris, managing director retail, Google Canada… and many more. For tickets, click here.

OVERHEARD

“Don’t provide product. Deliver experiences. The old model of retail, considered to be ‘warehousing,’ doesn’t work anymore because the same product can be provided for less through e-commerce.” — Patrick Ward, VP of the Los Angeles-based e-commerce consultancy Rootstrap, giving advice to retailers in a recent blog post

While COVID-19 has had a profound negative impact on many lives and businesses, the disruption caused by the pandemic ended up having a positive effect on retailers selling hardware, building products, and home improvement projects. That impact resulted in strong sales growth through 2020 and 2021.

But a new Hardlines survey of hardware and home improvement dealers across Canada earlier this spring reveals that most believe the period of strong growth is coming to an end. After two years of whopping double-digit sales increases, dealers are hedging their bets for 2022. According to the 2022 Hardlines Business Conditions Survey, dealers’ average forecast nationally for sales growth this year is only 2.6 percent.

Home centres and building supply dealers on average expect their sales to grow by just 1.5 percent. Hardware stores, which rely on the convenience factor and more DIY-related customers, are a bit more optimistic, with average sales expected to rise this year by 3.8 percent.

Regionally, the strongest forecasts come largely from Newfoundland and Labrador, as well as Western Canada, where Alberta and Manitoba dealers were expecting growth of 5.9 percent and 5.8 percent respectively. British Columbia dealers anticipate average sales growth of 5.4 percent.

The forecasts by dealers in Central Ontario were well below the national average. Ontario dealers anticipated growth of 0.8 percent while Quebec’s outlook was even more pessimistic, with only 0.3 percent growth expected.

Hardware and home improvement retailers in Atlantic Canada expressed overall expectations that were on par with the rest of the country and slightly above the national average, at 3.1 percent. Some Prince Edward Island dealers expressed more positive outlooks, which makes sense as P.E.I. was a strong performer in 2020 and 2021. Likewise, dealers in Newfoundland and Labrador expressed outlooks that exceeded the national average, at 6.1 percent.

While big box operators did not respond in adequate numbers to break out a separate big box forecast, Hardlines examined the fiscal outlooks of both Lowe’s Cos. and The Home Depot for 2022. Both anticipated relatively flat same-store sales growth for the year, with commentary indicating slightly more positive expectations for Canada. This puts both Lowe’s and Home Depot in Canada in line with the overall expectations of dealers in this country as well.

Pro and commercial business is still surging, making up for lost time under the pandemic, but consumer concerns about inflation, gas prices and the real estate and stock market downturn is expected to impact the sector’s retail sales. The rest of this year threatens to fall short of even the modest expectations of the retailers who were surveyed.

Lowe’s Canada begins search for workers at its Quebec stores and DC

A huge concern for retailers in every sector is the scarcity of workers. As the home improvement and construction industry enters its busiest season, Lowe’s Canada is promoting its latest hiring campaign by emphasizing not only jobs, but the possibility of a meaningful career in home improvement retailing. It’s even created a dedicated website to guide candidates and process applications.

The retailer wants to hire some 500 people to fill positions in its RONA and Réno-Dépôt stores and its distribution centre in Quebec.

“What’s great about working in our Quebec stores is that our head office is in Boucherville, on the South Shore of Montreal,” said Nadine Chiasson, Lowe’s Canada’s director of talent acquisition. “We offer much more than a summer job to Quebec students. We offer them a gateway to our vast network with many long-term career opportunities.”

The company is inviting candidates to come right to the RONA and Réno-Dépôt stores to speak to someone in person, including the possibility of getting an interview on the spot with a manager.

In addition to in-store positions, Lowe’s Canada is hiring for seasonal positions at its Boucherville distribution centre. Hoping to draw from the student population in the Greater Montreal area, the company is offering “a very competitive starting salary and a Monday to Friday work schedule.”

“We strongly value internal growth at Lowe’s Canada, and our store associates are an excellent talent pool for our head office positions. This is a great opportunity for students who would like to continue their career with us after graduation,” Chiasson added.

Changes at Walmart Canada underscore importance of omnichannel

Walmart Canada announced last week a series of executive leadership changes, including the naming of a new top merchant. The moves reflect in part the giant retailer’s focus on its growing online business, making sure it ties in with the stores’ bricks-and-mortar business.

Within Walmart Canada’s digital portfolio, Laurent Duray has been promoted from SVP of e-commerce to chief e-commerce officer. Duray has been with Walmart Canada since 2015. His previous roles included SVP of fresh, grocery, and consumables, the business segment that spearheaded Walmart Canada’s omnichannel strategy.

Earlier this spring, the company announced plans to roll out new technology that will automate online grocery picking. The first automated market fulfilment centre is being installed at its Scarborough West Supercentre in Toronto. The new kiosks are part of the company’s $3.5 billion investment over the next five years in omnichannel integration.

This investment also includes a new grocery distribution centre in Surrey, B.C. This state-of-the-art facility is supported by leading-edge technology and is part of Walmart Canada’s effort to generate continued enhancement of product flow through its supply chain.

Other appointments at Walmart Canada include a new top merchant. Sam Wankowski has been named the retailer’s new chief merchandising officer. A five-year veteran of ASDA, Walmart’s former UK operation, he moved to Walmart Canada in 2008.

In addition, Nabeela Ixtabalan has been named COO. She joined the company in 2020 as EVP, people and corporate affairs. New EVP, transition officer John Bayliss was previously SVP for logistics and supply chain.

The unique retail position of Costco, with its limited SKUs, ever-changing product assortments—and specials—and its membership-based structure, keeps customers coming back. That phenomenon has persisted through the pandemic.

A recent article in Forbes examines the unflagging popularity of the warehouse retailer. The piece was penned by Sanford Stein, who has written extensively about Costco. He notes that a key revenue source for the company, its membership fees, will likely go up again soon, something that happens every five and a half years.

That would mean memberships would go from $60 to $65. Those memberships enjoy a 91.6 percent retention rate, regardless of cost increases.

The company, which releases financials on a monthly basis, enjoyed net sales increase of almost 14 percent in April, with topline of $17.3 billion for the month. Comparable sales were up a healthy 12.6 percent. Nor has the company’s online activity diminished as conditions open up and stores become more accessible. Online sales for the month were up a healthy 5.7 percent.

Stein cited a recent customer survey in the U.S. that gave Costco a customer score that was the highest among general merchandise retailers—even higher than Walmart’s.

Some of the ingredients to Costco’s success include its success at capturing the “heart and mind” of its customers, constantly featuring a revolving if limited lineup of products that represent “triggers and treasures” for Costco members. The result is good value for customers and high inventory turns for Costco.

Giant Tiger’s President and CEO Paul Wood has been named 2022 Distinguished Canadian Retailer of the Year by the Retail Council of Canada. The award recognizes a retail leader who has led their company to outstanding business success and innovation and who has consistently demonstrated community commitment and support.

DID YOU KNOW…?

… that Hardlines Classified Ads are an effective—and targeted—way to connect with experts in the hardware and building materials sector for your next hire? Affordable rates and a broad reach through our huge database of industry executives, managers, store owners and operators make Hardlines Classifieds an effective way to connect you with your next big hire! Contact Michelle Porter at the Hardlines World Headquarters to get hiring today.

Canadian Tire Corp. released its first quarter results for the period ended April 2. The company reported consolidated retail sales were up 9.7 percent and comp sales increased by 6.4 percent, excluding its Petroleum business. Its Canadian Tire retail stores had a sales increase of 4.5 percent in the first quarter, while comp sales were up 4.5 percent. Canadian Tire’s e-commerce penetration rate remained strong at 8.2 percent.

Home Hardware Stores Ltd. has been named one of Canada’s Best Managed Companies for the 10th year in a row. The award is sponsored by Deloitte Private and other companies including The Globe and Mail. Entries are evaluated on the basis of strategy, capabilities and innovation, culture and commitment, and financial results. Companies like Home Hardware that remain on the list for seven years or more receive its Platinum Club designation.

The Children’s Miracle Network has named Lowe’s Canada its Canadian Corporate Partner of the Year for 2021. The distinction recognizes the company’s perseverance in its fundraising for children’s hospitals in the face of pandemic challenges. In total, Lowe’s Canada’s store network has collected over $3.2 million for CMN since 2018.

SUPPLIER NEWS

Taiga Building Products reported Q1 sales of $612.7-million, up 14 percent from $535.9-million a year ago. The increase was attributed to higher selling prices for commodity products. Net earnings rose to $39.5-million from $29.2-million, primarily due to increased gross margin.

Spectrum Brands’ Q2 adjusted earnings fell almost 53 percent to $0.41 per share, compared to $0.87 a year ago. Supply chain challenges and inflation contributed to the decline. Net sales rose however by 6.2 percent year-over-year to $807.8-million.

Intertape Polymer Group has reported Q1 sales of $406.4-million, a 17.6 percent increase attributed to higher selling prices. Earnings fell by $75.7-million to a net loss of $56.7-million, primarily due to charges related to the company’s pending acquisition by Clearlake Capital Group, which proposes to take it private.

ECONOMIC INDICATORS

The value of residential building permits rose by 4.7 percent in March to $7.9-billion. Construction intentions for single-family homes were up 3.3 percent, reaching their highest value since March 2021. Ontario registered the largest gain at 12 percent, but those gains weren’t enough to counter a slide of nearly 30 percent in the non-residential sector. Overall, building permits in March declined 9.3 percent to $11.7-billion. (StatCan)

NOTED

The 8th Global DIY Summit takes place in Copenhagen from June 8 to 10, with top managers from more than 50 countries already signed up. Hardlines will be there and we encourage any forward-thinking company to come along. Click here for pricing info and to sign up today!

OVERHEARD

“As we execute on our ‘Better Connected’ strategy, we are bolstering our omnichannel capabilities and enhancing the integration of our banners, brands, and channels to create a better customer experience, an even stronger competitive position, and continued long-term growth.”
—Greg Hicks, president and CEO of Canadian Tire Corp., on the company’s positive first-quarter results.

Watch out for big ideas from some serious thought leaders at this year’s 26th annual Hardlines Conference.

This year’s event will be held at the Queen’s Landing Hotel, Niagara-on-the-Lake, Ont., Oct. 18 and 19. It will introduce the Hardlines audience to speakers and ideas that will help them improve their own businesses. This year, we are proud to present Zaida Fazlic, vice president, people and culture, for Taiga Building Products. She will talk about the importance of good leadership for companies of any size as we all struggle with the personnel issues involved in running a business.

Hardlines Conference participants will also hear from an important retail thinker outside of our industry. Alison Fletcher is the owner of Cookery, a chain of specialty kitchenware stores and cooking class studios in Toronto and Montreal. This spring, Cookery is opening its fifth location. Alison will tell us how she has grown her business by keeping it relevant to her customers despite lockdowns.

And finally, the conference will wind up with the Retail Prophet himself, Doug Stephens (shown here). Considered one of the world’s leading retail and consumer futurists, Stephens set imaginations on fire when he took to the podium at last year’s conference.

The Hardlines Conference is Canada’s only truly national event that brings the entire hardware and home improvement industry together. It offers cutting edge ideas for making the industry stronger and—equally important during this time—networking and camaraderie as the world emerges from pandemic restrictions. We look forward to a “business as usual” event this October.

To avoid disappointment, delegates are encouraged to book their rooms early to take full advantage of the networking opportunities offered by this year’s conference. It will kick off with the ever-popular RONA Pub Night on the evening of Oct. 17. The following evening, the Home Hardware Industry Reception and the 30th Annual Outstanding Retailer Awards Gala are must-attend events after the first day of the conference, Oct. 18.

The 26th Hardlines Conference will be held Oct. 18 and 19, 2022, at the Queen’s Landing Hotel, a scenic destination in Niagara-on-the-Lake, Ont., just 70 minutes from Toronto Pearson International Airport. It will also be webcast virtually to delegates across the country. (To see the full list of speakers, please click here!)

Home Hardware remains one of Canada’s most trusted brands

For the second year in a row, Home Hardware Stores Ltd. has been recognized as Canada’s Most Trusted Retailer in its category in the Gustavson Brand Trust Index (GBTI).

The company took first place in the Home, Office, and Garden Retailers category and was tied for third overall on the list of Canada’s 10 Most Trusted Brands. The index, released annually by the University of Victoria’s Peter B. Gustavson School of Business, surveyed more than 9,000 Canadians on more than 400 brands in 33 categories.

“Our research reinforces the notion that Canadians have an acute awareness of whether a brand is truly responsive to their needs,” said Saul Klein, dean of the Gustavson School of Business.

Home Hardware is also one national retail brand that remains distinctly Canadian in a sector where these are becoming scarcer.

The top brands identified in the index are the Canadian Automotive Association followed by Band-Aid. Costco, Home Hardware, and Lego were tied for third spot. Home Hardware moved up on the list this year, after landing at the number-seven spot in 2021. The other retailers in the top 10 were Shoppers Drug Mart and Mountain Equipment Company, which were both tied at number eight. Bose, President’s Choice, Dyson, and Interac rounded out the Top 10 list.

“To be named Canada’s Most Trusted Home Retailer for the second consecutive year and one of the Most Trusted Brands in Canada is a true honour for Home Hardware,” said Kevin Macnab, President and CEO, Home Hardware Stores.

Since the launch of the GBTI, there has been a pattern of consumers being more loyal to Canadian brands than to global brands (and a similar loyalty to Quebec brands within Quebec). And this year’s index identified that Canadians are very adept at detecting “greenwashing” — which consumers take very seriously.

As for categories that are best and least loved, grocery stores are the most trusted sector in the index. The media, at the other end of the scale, represent the least trusted sector. (But don’t take our word for it! — your ever-reliable Editor).

“Proudly frugal,” Giant Tiger at 61 remains committed to local communities

Giant Tiger Stores Ltd. marked its 61st anniversary last week, celebrating its commitment to local communities. The discount mass merchant has always been focused on providing a range of goods to Canadian families at reasonable prices. And that tradition continues as the retailer goes to market through both its 260-plus stores and online.

Giant Tiger has also been expanding its hardlines offerings, with growing convenience ranges of tools and power tools, and even a private-label line of paints.

Gordon Reid opened the first Giant Tiger store in Ottawa’s Byward Market in 1961. Since that time, the retailer has expanded across Canada and now employs some 10,000 people. According to a release, “Reid provided the foundation upon which Giant Tiger was proudly built and established its core values of doing what is right and being proudly frugal, while making shopping easy for customers.”

“Throughout the last 61 years, Giant Tiger stores have been fiercely committed to the communities we call home and making a positive impact on our neighbours, our friends, and our families,” said Paul Wood (shown here), president and CEO of Giant Tiger Stores.

Through the Giant Tiger Charitable Giving Fund, national sponsorships and campaigns, store-led initiatives, and donations, the retailer raised $649,201 in 2021 for Canadians in need. That included contributions of product worth almost $60,000 to national and local charities.

Partner organizations from 2021 included Food Banks Canada, Heart & Stroke, Opération Enfant Soleil, Operation Santa Claus in partnership with the Canadian Forces Morale and Welfare Services, and the Leukemia & Lymphoma Society of Canada. Giant Tiger also ensured that children across the country would receive gifts during the holiday season by raising funds in-store through its annual Angel Tree campaign.

Giant Tiger is committed to adding stores across the country. A new head office in Ottawa will support that continued expansion. It recently opened a store in Saint-Eustache, Que., while a fourth Giant Tiger store in Windsor, Ont., is slated to open soon. The company is also working on its first store in Madawaska Maliseet First Nation, near Edmundston, N.B.

“From our relationships with local charities to our corporate partnerships with national organizations, Giant Tiger has always championed doing good for the greatest number of people,” Wood said. “This, paired with our core purpose to making it easy and fun for all Canadians to shop smart and save smart every day, will continue to drive our business forward for many years to come.”

Dealers are continuing to enjoy strong sales as the industry heads into its busiest season. Details from the latest Hardlines Retail Report Survey indicate that increases are being seen across core LBM categories, with some regional differences.

The survey, sent out earlier this spring to dealers and managers at hardware stores, building centres, and big boxes across Canada, indicated that LBM products for big renovations and construction jobs (such as lumber, plywood, and siding) were big sellers for retailers through the first quarter of the year. Heading down east, dealers in the Maritimes were especially upbeat about construction-related categories, citing strong sales in steel roofing, trusses, siding, and windows, in addition to wood products in general.

Heading over to Newfoundland and Labrador, dealers and managers reported a healthy uptick in paint sales, followed by roofing and flooring.

Given that spring tends to arrive in British Columbia before reaching the rest of the country, it was no surprise that dealers there cited garden products and outdoor living in general as hot categories.

Many Alberta dealers reported that paint was their fastest-growing category so far this year, followed by treated lumber and composite decking. One dealer even named materials for saunas as one of their areas of big growth.

Manitoba and Saskatchewan retailers said they have been experiencing increases in general LBM products, including trusses and engineered floor systems, as well as general hardware. One Saskatchewan hardware dealer stressed the importance of sports and leisure categories, while another hardware store listed non-medical masks and grass seed as big sellers.

In Quebec, sales of everything from plumbing and electrical products to roof trusses and windows indicate that construction projects are helping fuel increases for dealers in that province.

Ontario dealers cited a range of products that have been growing fast so far this year. The dominant national trend of selling more LBM held true in Ontario, with dealers there reporting especially strong sales in areas for building products related to outdoor living, such as decking, railings, and treated lumber. Other dealers experienced a lift in categories like plumbing, major appliances, automotive supplies, housewares, and even, in the case of one hardware retailer, toys.

Heather Ryan has been appointed CEO of Federated Co-operatives Ltd., effective today. She replaces Scott Banda, who is retiring after holding the CEO position for the past 12 years. Ryan joined FCL in 2013 and became a member of the FCL Senior Leadership Team in November of 2015 when she was appointed vice-president, human resources. In 2021, she became VP, supply chain. She holds a Bachelor of Commerce from the University of Saskatchewan and is a Chartered Professional in Human Resources.

DID YOU KNOW…?

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

Lowe’s Canada has received the Desjardins Mercure award for sustainable development strategy. Mélanie Lussier, director, external communications and sustainable development, accepted the honour during the 2022 Mercuriades Gala held last week at Montreal’s Palais des congrès. “At Lowe’s Canada, we make sustainability everyone’s business,” she said in a release. “Our associates carry out our many projects with conviction, making great efforts to help us achieve our ambitious environmental goals.”

Home Depot has introduced a program called Home Depot Ventures. It’s a venture capital fund that’s been created “to identify, fund, and partner with early-stage companies to accelerate emerging technologies that aim to improve the customer experience and shape the future of home improvement.” The $150-million fund will invest in companies that help Home Depot go to market both in-store and online. Home Depot has told Hardlines it will explore opportunities with startups across North America. Contact Jennifer Marcus at Home Depot’s Strategic Business Development and Corporate Venture Capital in Atlanta for more information.

A Quebec government initiative to promote buying local will have a transactional website this summer. Panier bleu (“blue basket”), launched in April 2020, showcases Quebec-made products as an alternative to e-retailers like Amazon. At present, the site functions as a directory, without its own shopping functionality. According to a Laval University study of online trends, only 14 percent of Quebecers have visited the Panier bleu site to date, but more than 45 percent said they would do so if they could make purchases through it.

SUPPLIER NEWS

Canfor posted Q1 profits of $534-million, or $4.29 per share, up from $427.8-million a year earlier. High lumber prices more than compensated for supply chain difficulties in the pulp segment. Revenues for the period rose by 14 percent to $2.2-billion, compared to $1.9-billion a year ago.

The first LP SmartSide products have rolled off the line at LP Building Solutions’ Houlton, Maine, facility. Early last year, the company announced a phased plan to expand its siding production, including the conversion of the Houlton plant from manufacturing OSB and laminated strand lumber. Following an initial “ramp-up” period, LP says the facility will add some 220 million square feet of SmartSide operating capacity.

Fortune Brands Home & Security intends to separate into two businesses. The company’s board has authorized a tax-free spin-off of its Cabinets business into a standalone publicly traded company. Upon closing of the proposed separation, shareholders would hold interests in both companies. New Fortune Brands will focus on water management, outdoor living, material conversion and science, and related products with brands such as Moen and the House of Rohl, Therma-Tru, and Master Lock. MasterBrand Cabinets’ will feature the likes of Mantra, Diamond, and Omega.

Quebec-based kitchen cabinet manufacturer EBSU has gained a major customer in Lowe’s, expanding its reach south of the border. Exclusively available online, EBSU products can be shipped directly to the homes of U.S. customers. The U.S. e-retail offerings complement EBSU’s cabinet collection launched at Lowe’s Canada brick-and-mortar stores in Quebec and Ontario last fall.

ECONOMIC INDICATORS

U.S. investment in construction edged up by 0.1 percent, with residential construction spending up by one percent. In a Reuters poll, economists forecast an increase of 0.7 percent. On a year-over-year basis, spending rose by 11.7 percent. (U.S. Commerce Dept.)

NOTED

Costco’s sales continue to climb under COVID. For the thirty-five weeks of its fiscal year, to May 1, the company reported net sales of $147.3-billion, an increase of 16.4 percent from the similar period last year.

OVERHEARD

“Home Hardware is an iconic Canadian brand that continues to earn the trust of consumers, making it a retailer of choice when it comes to the home improvement needs of Canadians.”
—Saul Klein, dean of the Gustavson School of Business at the University of Victoria, on his institution’s identification of Home Hardware as one of the country’s most trusted brands.

Canada’s retail home improvement leaders will be able to gather face-to-face once again this year at the 26th Hardlines Conference. This year’s event will provide a valuable and welcome forum to share ideas, knowledge, and networking. The conference is being held Oct. 18 and 19 at the Queen’s Landing Hotel in Niagara-on-the-Lake, Ont.

Our keynote presenters will include Tony Cioffi, president of Lowe’s Canada; Jonathan Gendreau, vice president for business development, marketing, and customer experience at BMR Group; and Eric Palmer, vice president and general manager of Sexton Group. They will share their insights with an audience of top retailers and buying group executives, as well as leading wholesalers and manufacturers from across the country.

The Hardlines Conference will be presented both live and virtually again this year. The event will continue the dual formats established last year, giving anyone in the industry the opportunity to participate—regardless of their location.

Also on the speakers’ roster this year: Dan Tratensek, COO and publisher at the North American Paint and Hardware Association. He will share the latest data on trends among hardware retailers in North America as they cope with the vagaries of an unpredictable marketplace—and an ever-more demanding customer.

Peter Norman, chief economist and vice president of Altus Group, will provide the latest updates on the direction of the economy, along with trends in the housing and renovation markets in Canada. There will also be a fascinating retail case study presented by Joanne and Rob Lawrie, owners of eight Home Hardware stores in Nova Scotia.

The event is returning to the Queen’s Landing Hotel in Niagara-on-the-Lake, a scenic destination just 70 minutes from Toronto Pearson International Airport. This year’s conference will kick off with the ever-popular networking 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.

The 26th Hardlines Conference will be held Oct. 18 and 19, 2022, at the Queen’s Landing Hotel in Niagara-on-the-Lake, Ont., and will be webcast virtually to delegates across the country. (To see the full list of speakers and to register, please click here!)

Gillfor reinforces national reach with takeover of AFA Forest Products

Gillfor Distribution Inc. announced last week its acquisition of AFA Forest Products Inc. AFA is an LBM distributor headquartered in Bolton, Ont., which owns and operates 13 distribution facilities, serving the entire Canadian retail home improvement market.

Gillfor says it will operate “in parallel” with AFA “until a full operational assessment is completed and a seamless integration can be executed.”

Headed by Grant Yegavian, CEO, and president Murray Finkbiner, AFA is the latest acquisition by Gillfor in its ongoing effort to firmly establish its position as a key national player on the building materials distribution scene.

The company believes the product lines of both companies will represent a strategic fit. AFA brings some specialty product lines that complement Gillfor’s current assortments. At the same time, the parent company is expected capitalized on the expanded reach into the market afforded by AFA’s own distribution.

“This acquisition makes perfect sense on many levels,” Dave Varallo, president of Gillfor Distribution, told Hardlines. “It provides countless synergies in the areas of reach, logistics, product representation, people, and more. We could not be more excited to make this organization the largest and best distribution company for building materials in Canada.”

Based in Woodstock, Ont., Gillfor is the brainchild of the Gill brothers, Gary, Bal, and Amritpal. In 2012 they determined they wanted to establish a national distribution channel for the family’s cedar production in British Columbia.

Gillfor Distribution was established when OWL Distribution in Woodstock, Ont., and McIlveen Lumber, an LBM wholesaler based in Calgary merged to form the new business in 2017. A year later, the company added Brown & Rutherford in Winnipeg and Brunswick Valley Distribution, based in Fredericton.

The combined operations of all the Gillfor businesses now represent 19 facilities across Canada.  

“This acquisition will elevate Gillfor to be amongst the largest Canadian distributors for building products, and allow us to truly provide local partnerships from coast to coast,” said Gary Gill, chairman of Gillfor Distribution.

Home Depot’s latest appointments reinforce its online commitment

As retailers figure out their online sales game, The Home Depot has repeatedly shown its leadership in this area. Well before COVID put greater demands on all retailers to provide a shoppable online presence, Home Depot had been committed to its omnichannel shopping experience—what it now calls the “extended aisle.”

Now Big Orange is doubling down to provide a seamless shopping experience for its customers, whether they access the retailer online or in person. That includes repositioning its COO, Matt Carey (shown here), to the new role of executive vice president of customer experience, overseeing customer tech (see last week’s searing edition of Hardlines! —your helpful Editor).

Carey’s background includes serving as senior vice president and chief technology officer at eBay. He is joined by Fahim Siddiqui, who has been named Home Depot’s EVP and chief information officer. Siddiqui was formerly SVP of information technology.

“Now more than ever, our customers expect to shop with us how, when, and where they want—and there’s little tolerance for friction in the shopping experience,” said Ted Decker, president and CEO of Home Depot. He added that Carey’s extensive tech background in retail makes him well-suited to “continue to make shopping at Home Depot a truly interconnected, easy experience for our customers.” 

Home Depot (along with its rival, Lowe’s Cos.) is forecasting flatter growth for 2022 as the world hopefully continues to emerge from the pandemic. But its online sales, which reportedly grew 86 percent in 2020 alone, continue to climb.

The downtown areas of many Canadian cities are undergoing rapid densification—driven mostly by condo towers. Urban Canada is undergoing its biggest transformation since the rise of the skyscraper in the 1930s.

Running a successful hardware store in the city has always been a challenge because of higher real estate costs and limited space. Home improvement stores which are still thriving in downtown environments have become rare.

One such store in Victoria, B.C., Cook Street Castle, has a unique urban feature: it is located on the first floor of an apartment building. It even has a drive-through lumberyard. When it was built in the 1970s, the building was designed to have a window and sash store on the first floor. The current Castle outlet moved into the location in 1985.

There are some challenges with being on the first floor of a residential building. One is limited space: the store needs to be selective about what products they carry, explains owner Vicki Hagel (shown here).

“There’s no lack of opportunity [for hardware stores],” says Bill Morrison, retail consultant. “Downtown Toronto, Vancouver, Montreal, Calgary, and Ottawa are vital areas with a lot happening—obviously lots of people that potentially could shop a hardware store.”

But urban areas are problematic for hardware stores because a home improvement retail business require three things, Morrison explains. “One, it requires a relatively large space because customers want a complete solution, lots of parts. A hardware store requires many items to get it right, many sizes of hooks, nails, screws, tools, and many other things that come with servicing a community’s needs.”

Another requirement is access to potential employees who can understand the complexities of hardware and home improvement. These types of employees are not always easy to acquire in downtown areas.

And the third necessary component of a hardware business is reasonably-priced real estate, which is extinct in most downtowns.

(This is an excerpt from a larger article in the latest edition of our sister publication, Hardlines Home Improvement Quarterly. The second quarter edition of HHIQ has been mailed to 11,000 dealers and store managers across Canada. If you’re not getting your own copy—it’s free to retailers and retail head offices—click here!)

DID YOU KNOW…?

… that Hardlines Classified Ads are an effective—and targeted—way to connect with experts in the hardware and building materials sector for your next hire? Affordable rates and a broad reach through our huge database of industry executives, managers, store owners and operators make Hardlines Classifieds an effective way to connect you with your next big hire! Contact Michelle Porter at the Hardlines World Headquarters to get hiring today.

The Home Depot Canada Foundation announced it is increasing its investment to prevent and end youth homelessness to $125 million by 2030. The foundation recently surpassed its initial $50 million pledge with more than $5 million disbursed across Canadian communities. Over the past several months it has worked through the Orange Door Project Campaign, TradeWorx, and innovation grants to its 15 regional partners organization over the last several months.

Home Hardware has partnered with shopping rewards app FlipGive to launch the Play More Matching Grant. It will offer $75,000 in matching grants to sports teams to help kids and their families with participation costs. The program allows teams to register on FlipGive so that parents can lower the cost to play by shopping for products from over 700 brands. The first 250 teams to raise $100 will receive a $100 matching grant.

Slegg Building Materials, with 10 locations on Vancouver Island, is celebrating its 75th anniversary this year. The Slegg organization is in an upbeat mood for another reason, too. On May 6, Slegg will present its 2022 Slegg Pro Show, the first such live event in two years owing to COVID-19 restrictions. The event will take place at The Q Centre, Victoria, B.C.

W. W. Grainger’s Q1 sales came to $3.6-billion, up 18.2 percent from the comparable period of 2021. Operating earnings of $534-million were up 49 percent from a year ago. Earnings amounted to $7.07 on a per-share basis, a 57.8 percent surge from 2021.

Walmart Canada is providing its retail staff with wearable ring scanners. The tech is designed to simplify and speed up workers’ ability to fulfill online grocery orders. The company ordered more than 1,500 of the wearables. Employees can use them to scan products by pushing a button with their thumbs.

Hudson’s Bay Co. is transferring ownership of its downtown Winnipeg property to an umbrella group of Manitoba First Nations. The Southern Chiefs’ Organization (SCO) is the recipient of the 600,000-square-foot Beaux Arts building. The site will serve as a multipurpose space including 300 housing units, two restaurants, a health clinic, daycare centre, and museums. “This is a shift in our history,” said SCO grand chief Jerry Daniels. “We’re seeing a very significant and visible transition that really puts into action what has been referred to as economic reconciliation.”

SUPPLIER NEWS

Stanley Black & Decker has signed an agreement to sell its automatic doors business, Access Technologies. Irish security products firm Allegion is purchasing the business for $900-million in cash. James Loree, Stanley Black & Decker’s CEO, said proceeds from the sale will go toward reducing debt and buying back shares.

Canfor will invest $130-million to modernize and expand its Urbana, Ark., sawmill and planer facility. The mill will continue to operate through the 18-month project, which is expected to increase its production by 115 million board feet per year. Ground breaking is slated to take place during the third quarter of this year.

ECONOMIC INDICATORS

Sales of new U.S. homes fell by 8.6 percent in March to an annualized rate of 763,000 units. February’s pace was revised upward to 835,000 units from the preliminary estimate of 772,000 units. All four regions of the country saw declines in March. (U.S. Commerce Dept.)

NOTED

The latest edition of Hardlines HR Advisor was delivered last week to subscribers’ inboxes! In this issue, we look at the importance of your company’s own brand for attracting good hires. PLUS: supporting worker morale and managing COVID sick days. If you’re not already receiving HR Advisor, click here to sign up for free!

OVERHEARD

“We will have well over a thousand trade professionals attending to gather information and ideas from over 70 of our top vendors. This event is a huge hit on the island and customers, staff, and vendors look forward to it every year. It’s great to be back—pre-registration is well ahead of past years already!”
—Tim Urquhart, president of Slegg Building Materials on Vancouver Island, on the return of the 10-store chain’s trade show for pro customers following a two-year hiatus under COVID.

It’s time to start sending in your nomination forms for Hardlines’ Outstanding Retailer Awards!

The ORAs are the only national awards program in our industry that crosses all banners. Awards are presented in at least seven categories, including Best Young Retailer and Marc Robichaud Community Leader.

“It’s so rewarding to be recognized for doing a job that you love,” says Jillian Sexton, 2021 Young Retailer of the Year. “Winning an ORA gives you a unique platform to share your story with the entire industry. It’s been such a welcome surprise to be congratulated by people from every corner of the hardware world.”

“Please, please recognize that this is a big deal,” urges Alex Yakovyshenko, who won the same award in 2017. “This is a big deal for your brand; this is a big recognition industry-wide.” He underscores the pride he took in “hearing our community talk about how proud they were to have a local business recognized Canada-wide.”

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

Yakovyshenko recalls fondly “how welcoming the experience was.” The people, he says, “were just fantastic. Everything was planned: they flew me here, arranged the hotel. I couldn’t have asked for more.”

Visit the ORA website for more information and to download the nomination form. (Oui, le formulaire est également disponible en français! – votre rédacteur fidèle). Head office staff may complete the nomination form on behalf of dealers. Entries are due by June 22, 2022. Winners will be notified by mid-July. The awards will be presented during the Hardlines Conference in Niagara-on-the-Lake, Ont., Oct. 18 to 19, 2022.

Calgary’s Hillhurst Hardware sells to pros the old-fashioned way

Hillhurst Hardware, a hardware store in Calgary, is owned and operated by the husband-and-wife team of Phil and Jackie Larkam. Jackie is the granddaughter of the store’s founder, Abe Perry, and the current generation includes Jackie’s brother Mike Perry, who is the manager.

Hillhurst is an unusual store in many respects, starting with its proudly independent status: it is not a member of a co-op or banner group. Above all, Hillhurst is a contractor specialist store. Pros come to its downtown location from all over Calgary and beyond.

Perry said that the store is such a big player in contractor tools that it can make its own deals with suppliers. “We buy direct from manufacturers,” he said. “We have arrangements with different guys locally but most things are direct. We punch above our weight, that’s for sure.”

Hillhurst operates in a prosperous urban area with a lot of construction and growth going on all around it. All that development has been good for the store because of its pro focus. “All the construction going on is, in some aspects, pretty good—because it’s right on our doorstep,” Perry said. “With the congestion and everything, it’s getting busier down here. Sometimes it’s hard to get product in but we work around that.”

In an era when online shopping has exploded, Perry says that Hillhurst Hardware is happy doing business the old-fashioned way, face to face. “We barely sell anything online,” he said. “Contractors want to come in and hold the tool, feel the balance of it. They want to put on a tool apron and feel the weight of it.”

(This is an excerpt from a larger article in the latest edition of our sister publication, Hardlines Home Improvement Quarterly. HHIQ is being mailed out right now to 11,000 dealers and store managers across Canada. If you’re not getting your own copy—it’s free to retailers and retail head offices—click here!)

Both new and existing housing markets show signs of cooling off in March

Sales of existing Canadian homes fell 5.4 percent in March, the Canadian Real Estate Association (CREA) reports. That puts activity back in line with where it had been since last fall. Sales were down in about half of local markets compared with the previous month, led by declines in the Greater Toronto Area and Calgary.

The actual (not seasonally adjusted) number of transactions in March 2022 came in 16.3 percent below the record set in March 2021. Still, the latest numbers reflect the second-highest level on record for that month.

The number of newly-listed homes fell by 5.5 percent on a month-over-month basis in March. The monthly decline was led by Greater Vancouver, the Fraser Valley, Calgary and the GTA.

“While the market remains historically very active, March definitely saw a slowdown compared to February in terms of both activity and price growth,” said Jill Oudil, chair of CREA. “One month does not make a trend, so we’ll have to wait and see if this is the beginning of the long-awaited cooling off of this market.”

The latest housing start numbers for March paint a similar picture. The annualized rate of housing starts was down by two percent from February to 246,243 units, according to the latest data from Canada Mortgage and Housing Corp.

Urban starts declined by two percent, reaching 220,708 units. The biggest drop was in multi-unit urban starts—mainly condo construction—which decreased by five percent to 154,876 units. Single-detached urban starts rose by eight percent to 65,832 units.

A similar trend is emerging in the U.S. There, sales of existing homes fell in March by 2.7 percent. That was the lowest level of sales since June 2020.

The 2022 NHPA All-Industry Conference, co-located at the National Hardware Show in Las Vegas, wrapped up earlier this month, offering three days of speakers and panels from industry experts and top-performing retailers. Attendees came away with numerous insights and best practices they can implement in their own businesses, and here, we share our top takeaways from the conference in case you missed it. 

Uncertainty still dominates our economy. According to Connor Lokar, senior forecaster for ITR Economics, the American economy is as uncertain as it’s ever been. He cited global events such as the crisis in Ukraine, but he also said supply chain problems and inflation will get better later in 2022.

“We’re playing catch-up. It’s the year of normalization,” he says. “This is when the channels clear—where what we thought about pre-COVID normal creeps into the conversation as this year goes on. This is a global deceleration.”

As a leader, tell your story. NHPA’s director of organizational development and consulting Kim Peffley shared how to create innovative problem-solvers in your company by leading by example and being transparent as a leader. 

“Admit when you make mistakes and encourage others to be open to making mistakes too, because mistakes are opportunities to learn,” she says. “And always be learning yourself.” 

Invest in your people. Elliot Greenberg, president and CEO of JC Licht, a paint and wallpaper chain which has 50 stores in the American Midwest, shared his strategy for growth.

“We have a big growth strategy, and people ask why we want to grow so quickly and so big,” Greenberg says. “The only way we can get outstanding people is to promise them advancement and growth and a better life.” 

Make your employees’ experience a priority. Keynote speaker Kevin Hancock, chairman and CEO of Hancock Lumber Company, shared how to put employees first for more loyal customers and stronger sales. He talked about the social and economic benefits of creating an employee-centric company.

“Across time, ‘leaders’ have done more to restrict, direct, and control the voices of others than to liberate them,” Hancock says. “The partial loss of my own voice was an invitation to lead differently in a manner that strengthened the voices of others and create an employee-centric company where our employees’ experience at work is our top priority.” 

Tailor hiring to your company’s core values. NHPA managing editor Melanie Moul discussed hiring strategies that retailers are using to find success.

“The top-performing retailers in the industry run their businesses by specific core values that are part of every decision in the organization. From how to solve a customer’s plumbing problem to who to hire, core values offer critical guidance,” Moul said. “You need to ask yourself, ‘Who do we want working in our business?’ People who understand the mission of the business and can show the core values in everything they do.”

Check out the latest issue of our sister publication, Hardlines HR Advisor, for more details on how to “brand” your company to appeal to new hires. —Editor

Digital commerce and bricks and mortar should work together. The Farnsworth Group president Grant Farnsworth noted that the separation between e-commerce and commerce no longer exists—nearly every customer, whether they’re a pro or a DIYer, is using online platforms for research prior to buying. 

“It’s more critical than ever that there is a consistency between digital and in-person worlds,” he says. “Contractors are using more than three (online) sources on average, going between manufacturing and supplier sites before buying.” 

Good customer service starts with good employee training. Rodney Bullion, director of learning and development at TAL Holdings, says customer service starts with thorough employee training.

“The more we grew, the more we knew that we had to engage our people and grow our people quickly to be as effective as possible, because our employees are our key asset to offering a great customer experience,” says Bullion. 

The Home Depot has announced the appointment of Matt Carey to the newly created role of EVP, customer experience. He was previously SVP and chief technology officer at eBay, which he joined in 2006 after serving in the same roles at Walmart. Also at Home Depot, Fahim Siddiqui has been named EVP and chief information officer. Siddiqui has been with Home Depot since 2018 as SVP of information technology.

DID YOU KNOW…?

… that Hardlines Classified Ads are an effective—and targeted—way to connect with experts in the hardware and building materials sector for your next hire? Affordable rates and a broad reach through our huge database of industry executives, managers, store owners and operators make Hardlines Classifieds an effective way to connect you with your next big hire! Contact Michelle Porter at the Hardlines World Headquarters to get hiring today.

Wolseley Canada last week celebrated the grand opening of its newest branch in Richmond, B.C. The 12,000-square-foot facility includes a Wolseley Studio showroom, Wolseley store, and a 7,000-square-foot warehouse. The location is run by branch manager Jacqueline Parrent.

Lowe’s Canada has been named one of Canada’s Greenest Employers for a second consecutive year. The distinction is part of Mediacorp’s annual “Canada’s Top 100 Employers” competition. Among the accomplishments cited were Lowe’s Canada’s reduction of energy usage, its phasing out of single-use plastics, and its use of waste management monitoring tools.

Tractor Supply Co.’s Q1 sales rose by 8.3 percent to $3.02-billion, compared with $2.79-billion a year earlier. Comp sales grew by 5.2 percent. Net income for the U.S. farm-and-ranch retailer increased 3.2 percent to $187.2-million from $181.4-million, while diluted earnings per share were up 6.5 percent to $1.65 from $1.55 in the comparable period of 2021.

W.W. Grainger has been named one of Fortune‘s 100 Best Companies to Work For in 2022. Great Place to Work, a workplace culture specialist firm, makes the selections based on a confidential survey of more than 4.5-million employees.

SUPPLIER NEWS

The White House last week issued new procurement rules that limit federally funded projects to the use of U.S.-made construction materials. According to Dennis Darby, head of Canadian Manufacturers and Exporters, Canada will have to rise to the challenge of fighting for exemptions as it has in the face of previous protectionist policies. “Canada and the U.S. don’t compete with each other in the manufacturing sector; we actually make things together,” Darby told the Toronto Star. “We’d love to say, ‘Buy North American.’ ”

Husqvarna Group’s Construction Division will acquire Heger, a privately owned business specializing in professional diamond tools for European sawing and drilling contractors. It will become part of Husqvarna Group’s Concrete Sawing & Drilling business in Central Europe. Heger was founded in 1908 and is based in Heitersheim, Germany.

ECONOMIC INDICATORS

Investment in building construction increased four percent in February, reaching $20-billion for the first time. Residential construction spending continued to increase, with investment in single family homes up 4.9 percent in February. Multi-unit construction increased 5.1 percent. Overall, residential construction investment rose five percent to $14.9 billion in February. (StatCan)

U.S. housing starts rose by 0.3 percent in March to 1.793-million units. Building permits increased by 0.4 percent to 1.873-million units. (U.S. Census Bureau)

U.S. retail sales increased by 0.5 percent in March, largely on the strength of gasoline purchases. Excluding gasoline, sales edged down by 0.3 percent. (U.S. Commerce Dept.)

NOTED

Canadian Tire Corp. and Loblaw Cos. have paid out major bonuses to executives for weathering another pandemic year, The Globe and Mail reports. Senior executives at CTC took home bonuses in 2021 that were up by 80 percent from the previous year. CEO Greg Hicks received $2.64-million, almost triple his bonus pay for 2020. Loblaw paid its five highest-earning executives more than $1-million each in bonuses.

OVERHEARD

“We’re right beside Amazon. And that’s just fun any day of the week. Oh my God, they’re trying everything. They’re saying, ‘If your vaccinated, here’s a hundred dollars.’ ‘If you’re signing, here’s $3,000.’ We’re a mid-level company. We’re not an Amazon. So all these things are challenging.”
—Martina Pileggi, senior director of human resources for the Hillman Group Canada. A larger interview with her appears in the latest issue of Hardlines HR Advisor, which will be out on Wednesday. Click here to subscribe to this free monthly publication.)