The 25th annual Hardlines Conference is ready to go live this year. The event, which was cancelled due to COVID in 2020, will return to a face-to-face setting this year, as restrictions are lifted and vaccine rollouts continue.

The conference—Canada’s only national event that welcomes all the banners and retail groups—will be held Oct. 19 and 20 at the Queen’s Landing hotel in Niagara-on-the-Lake, Ont., a very cool destination resort just 70 minutes from Toronto. At the end of day one of the conference, we will host the Outstanding Retailer Awards Gala, recognizing the finest retailers in the country.

While a lot can happen between now and mid-October, we are confident that enough normalcy will have been restored, with widespread vaccinations expected for all Canadians by September. However, for people who cannot join us live, the conference will feature, for the first time, a virtual component so dealers and suppliers can watch our speakers and view the Outstanding Retailer Awards Gala from the comfort of their own homes or offices.

The Hardlines Conference will play host to an incredible lineup of retail leaders:

• Kevin Macnab, president and CEO, Home Hardware Stores
• Doug Anderson, president and CEO, Peavey Industries
• Jamal Hamad, senior director, contractor services sales and operations, Pro-Rental-MRO-home services at Home Depot Canada
• Drew Green, CEO of clothing chain Indochino
• Peter Norman, economist and VP at Altus Group
• Plus two more speakers just added (see article below!)

With the inclusion of Home Hardware’s Macnab, Anderson from Peavey, and Hamad from Home Depot Canada, attendees are guaranteed to get insights first-hand from some of the industry’s leading home improvement retailers.

Home Depot Canada has been aggressively pursuing the contractor customer with new initiatives, programs, and financing initiatives. Jamal Hamad has headed up that growth, putting independents on alert as Home Depot continues to gain acceptance—and market share—among pros.

The addition of Drew Green to this year’s lineup ensures that the conference will once again look outward for guidance on best practices and trends in retail. Indochino is a burgeoning retailer of custom, made-to-measure suits. Green has been involved in multiple start-ups and in just the past seven years, he’s grown two businesses to over $200 million in market cap. Not to be missed!

Rounding out the Hardlines Conference, we’ll hear from our leading housing and economic advisor, Peter Norman of Altus Group.

The 25th annual Hardlines Conference will be held at the Queen’s Landing resort hotel in Niagara-on-the-Lake, Ont., Oct. 19 and 20. It guarantees a world-class destination to maximize networking among the retail home improvement industry’s leading dealers, retail chains, buying groups and suppliers. (Click here for more info on the conference and our amazing venue!)

This year’s Hardlines Conference has just confirmed two more speakers, a virtual alpha and omega of retail experience on one stage. We already have an amazing roster of speakers lined up for you, and with the addition of two more important industry figures, we have rounded out our program.

The conference will be held Oct. 19 and 20 at the Queen’s Landing hotel in Niagara-on-the-Lake, Ont., a destination location just 70 minutes outside of Toronto.

Doug Stephens, of retail consultancy Retail Prophet (shown here), will kick off the 25th edition of the conference. A high-level retail consultant, author, and dynamic presenter, Stephens will share his thoughts on where retail in general—and hardware and home improvement in particular—is headed post-COVID.

Each year, we showcase one dealer to share their story from the front lines of home improvement retail. For this special edition of the conference, we are pleased to host Rob Faries, general manager of GG’s Ace Hardware & Building Centre.

The business was started by Faries’ dad in 1976 as GG’s Corner and Gift, offering grocery, confectionery, and gifts. The younger Faries, A member of the Moose Cree First Nation, was born the year after the store opened and he spent his entire life surrounded by retail. As he grew up, so did the store, adding clothing, housewares, and sporting goods. Today, GG’s has three locations in Moosonee and Moose Factory, Ont., near James Bay. Faries will talk about the challenges of working in the tough conditions—both physical and business—of northern Canada.

Stephens and Faries join an already outstanding lineup of speakers at this year’s conference. (The 25th annual Hardlines Conference will be held at the Queen’s Landing hotel in Niagara-on-the-Lake, Ont., Oct. 19 and 20. Click here for more info!)

Lumber prices have plummeted by 70 percent in just eight weeks, as the price of two-by-fours made from western spruce, pine, and fir (SPF) reached US$485 for 1,000 board feet last week. That was down from US$1,630 in mid-May.

Since reaching record highs in May, prices have been slipping. But according to Madison’s Lumber Report, the prices are not likely to drop to pre-pandemic levels. And with the epidemic of forest fires across British Columbia, supply is getting constrained again—and prices have inched back up. As of July 21, the impact of the western forest fires caused lumber futures to jump 7.7 percent on the Chicago futures market, where they were priced at $584.50.

Canfor, the giant forest products company, will begin curtailing production today, as fires wreak havoc on both supply and the ability to transport product to market. However, observers suggest the move may be partly to counteract the fall in prices.

Canadian sawmills have done a brisk trade during the pandemic, but some private owners of woodlots in New Brunswick say they’re being frozen out of the boom. Unlike other provinces, which have raised royalties for harvesting on Crown land, New Brunswick has kept its rates frozen for about six years.

“I was getting more money for my wood in the 1990s,” lot owner John Sabine told The Globe and Mail. “A lot of people aren’t bothering to harvest at all because prices are so poor. It’s not worth it.” Sabine says that stance means millions of dollars in lost revenue for both the provincial government, which owns half the commercial forestry lands in the province, and private lot owners.

Technology helps Patrick Morin’s outside sales teams stay connected

To keep its outside salespeople connected in the field, Quebec-based retailer Patrick Morin is still sending its people out to job sites for major projects. But it also supplied new laptops to its district and regional managers, who double as outside salespeople for the company’s 20 locations. The laptops let the managers communicate with their contractor customers via Zoom, Microsoft Teams, and other platforms without having to go onto construction areas.

“We’re trying to use the latest communications and messaging software so our people can contact customers directly, and respect social distancing protocols,” says general manager Daniel Lampron. “It’s worked pretty well so far.”

Like many dealers, Patrick Morin experienced a “huge” increase in online sales last year that has carried into 2021. Lampron observes that customers these days expect quick delivery, regardless of what they’re ordering, “so products need to be well managed.” That’s been a challenge during the pandemic, which created shortages in many commodities, most notably lumber. Patrick Morin has used electronic communications to keep customers informed about product availability or shipment delays.

Moving dealers and their customers to greater reliance on virtual communication “is a really big deal because the construction industry has been late to using technology,” says Lampron.

(This story is excerpted from a more comprehensive article in the latest issue of our sister publication, Hardlines Home Improvement Quarterly. HHIQ is a print magazine that is mailed to more than 11,000 dealers and store managers across the country. Find out more by clicking here!)

Darrin Noble retired last week as Home Hardware’s VP, store operations and Burford Paint and Home Products. He joined as VP and GM of Home’s paint business in 2007 and took on his current role in 2019. A longtime friend of Hardlines, he spoke to the 2018 Hardlines Conference on the importance of private label brands.

DID YOU KNOW…?

… that July’s edition of Hardlines Dealer News is out now? In this issue, read about how one dealer adapted during the pandemic, which products dealers tell us are the hottest sellers, and Castle’s member growth in the Toronto area. Hardlines Dealer News is monthly—and it’s free. Sign up here to subscribe!

The Spyder brand of circular saw blades, jigsaw blades, hole saws, Stinger spade bits, and auger bits has been introduced in Canada. The company has partnered with Lowe’s Canada to expand its offering of tool accessories for pro customers. The Lowe’s, RONA, and Réno-Dépôt banners are the exclusive building centre and big box carriers of these products in Canada.

Giant Tiger Stores Ltd. has opened a new store near Hamilton, Ont. The 18,044 square-foot store is located in Ancaster at 120 Portia Drive.

Tractor Supply Co. reported Q2 net sales of $3.6 billion, an increase of more than 13 percent from $3.2 billion a year ago. Comp sales swelled by 10.5 percent as demand remained strong for seasonal and consumable products. Profits rose by 11.3 percent to $1.3 billion, from $1.2 billion a year prior.

SUPPLIER NEWS

Carlisle Cos. Inc. has struck a deal to acquire fellow building envelope systems (BES) provider Henry Co. from a private equity firm. Under the terms of the agreement, Carlisle will purchase Henry for $1.575 billion in cash. Henry’s BES offerings control the flow of water, vapour, air, and energy in buildings.

Canfor Corp. will curtail about 115 million board feet of production capacity at its Canadian sawmills during Q3. The decision comes as wildfires in western Canada are creating significant supply chain challenges and a transportation backlog.

The 130th China Import and Export Fair (Canton Fair) will be held both online and in-person from Oct. 15 to Nov. 3. This edition of the fair will feature displays in 51 exhibition sections based on 16 product categories. 

Manufacturers of wooden pallets are caught between lumber shortages and unpredictability in the supply chain, The Globe and Mail reported. Between wait times for machinery and pressures on the labour market, boosting production is not an option, according to Shawn Hicks, CEO of CPS Wood Products in Cobourg, Ont. “We’ve had to turn away new opportunities from big companies—we just can’t handle the extra demand.”

ECONOMIC INDICATORS

Sales of existing Canadian homes fell by 8.4 percent month-over-month in June. It was the third straight monthly slowdown since activity hit an all-time record back in March. While sales are now down a cumulative 25 percent from their peak, and below every other month in the last year, June transactions still managed to set a record for that month. Sales moderated in about 80 percent of all local markets, including almost all large markets across the country. (Canadian Real Estate Association)

U.S. retail sales for June were estimated at $621.3 billion. That was a 0.6 percent increase from May, and 18 percent higher than sales for June 2020. Building and garden materials sales amounted to $45.05 billion, down slightly from $46.98 billion in May. (U.S. Census Bureau)

U.S. housing starts in June were estimated at a seasonally adjusted annual rate of 1.643 million units. That was 6.3 percent above the previous month and 29.1 percent above the June 2020 rate. Single-family starts were up 6.3 percent from May to 1.16 million. (U.S. Census Bureau)

NOTED

The annual Hardlines Retail Report is now available. This powerful set of research is a marketer’s dream. If you want to know the sales growth and market shares of all the hardware and home improvement groups in Canada, and the strategic analysis of the top players, this is the report for you. It features 190 slides and dozens of photographs and tables. (For more info and to order yours, click here!)

OVERHEARD…

“We’re running flat out. We can’t cut any more lumber; we can’t produce any more product. Our costs are up on every front.”
—Shawn Hicks, CEO of CPS Wood Products in Cobourg, Ont. He was quoted in the Globe and Mail last week regarding the huge demand currently for wood pallets.

Matériaux Pont-Masson is moving its seven stores to BMR’s banner. Founded in 1979 by Monique and Richard Bailey, Matériaux Pont-Masson serves Quebec (Mirabel, Rigaud, Roxboro, Sainte-Clotilde-de-Châteauguay, and Valleyfield) and eastern Ontario (Alfred and Casselman).

Its stores have been under the RONA banner for nearly 35 years. With an estimated $100 million in annual sales, it’s considered one of the largest affiliate dealers in the RONA stable. The transition to BMR takes effect on Aug. 11.

In a release, Matériaux Pont-Masson president Éric Bailey said he was seeking to enhance the business’s offerings. “As a major player in the hardware industry in Quebec and Canada, BMR represents for Matériaux Pont-Masson an outstanding business partner to ensure the continuity of our success.”

“I am very pleased to see Éric Bailey and the entire Matériaux Pont-Masson team join the ranks of Groupe BMR, a decision that Éric has carefully considered over the past few years,” said Alexandre Lefebvre, CEO of BMR Group. He expects BMR to increase its sales among its nearly 300 dealer members by $200 million in 2021.

A Lowe’s Canada spokesperson said that the giant retailer “values collaborative business relationships with its dealers where the priority is the mutual success of the parties involved.” For its part, Lowe’s Canada reiterated its ongoing commitment to its independent affiliates, “who remain a priority within our business model.”

Given the dealer’s size and its number of locations, the recruitment of Pont-Masson represents a solid gain for BMR, which has been working to make meaningful moves outside its home province of Quebec, especially in Ontario, where two of the stores are located.

“This alliance will not only allow us to increase our presence in key markets, particularly in Ontario but also to enhance our product offering to our customers with the wide range of products that are exclusive to Matériaux Pont-Masson, all at competitive prices,” said Jonathan Gendreau, vice president, strategy and network development at BMR.

Home Hardware has announced the launch of the Home Hardware Return to Sport Matching Grant. A partnership with shopping rewards app FlipGive, the initiative will offer $25,000 in grants to help get kids back in the game after being sidelined by COVID-19.

The program invites youth sports teams across Canada to register on FlipGive, a shopping rewards app. The alliance with Home Hardware is designed to help parents lower the cost of their involvement in sports by offering rebates on products purchased through FlipGive. The first 250 teams to raise $100 in rebates through purchases will receive a $100 matching grant from Home Hardware.

“Sport runs deep for us,” says Jessica Kuepfer, director, communications, Home Hardware Stores Ltd. She mentions the company’s participation in the Special Olympics. “But it’s also a continuation of everything that our dealers are doing. When you look at how our dealers are supporting their local communities, they are doing it in so many different ways.

“We’re looking to our dealers and seeing where their hearts and charities lie and just trying to align that. It’s really something that’s deep in our DNA.”

In addition, FlipGive is a Canadian company, she says, further making it a good fit for Home Hardware.

Does the program indicate any greater involvement in sporting goods by Home Hardware than in the past? Kuepfer admits that sports and recreational products sold well during the pandemic. She points out though that “we sold a lot more of everything over the past year and a half. But people are definitely looking for ways to have fun at home.”

The Home Hardware Return to Sport initiative is open to youth sports teams across Canada and will run until Nov. 30.

Peavey Industries has entered into a five-year agreement with Westerner Park, central Alberta’s largest convention, agricultural, sports, and entertainment facility. Under the deal, Peavey secures the naming rights to Red Deer’s landmark Westerner Park Centrium as its official agricultural supply partner. The complex is now known as the Peavey Mart Centrium.

“Peavey Industries’ head office has been located here for decades, making Peavey Mart truly ‘Red Deer’ at its very core,” said CEO and president Doug Anderson. The company owns the Peavey Mart and MainStreet Hardware banners, as well as the licence for the Ace Hardware brand in Canada.

Peavey’s marketing efforts are part of a long tradition of big retailers buying up naming rights to sports complexes—though it’s more common in the U.S. There, Lowe’s was a loyal supporter of NASCAR racing dating back as far as 1960. In 1999, the retailer bought up naming rights to a popular racetrack in Charlotte, N.C., renaming it the Lowe’s Motor Speedway for the next 11 years. It also sponsored racing superstar Jimmie Johnson from 2001 until 2018. Home Depot also got involved in NASCAR in 1999, ending its sponsorships in 2014.

In Canada, Canadian Tire drew a lot of attention in 2013 when it secured naming rights for the Scotiabank Arena in Kanata, Ont., which is the home ice for the Ottawa Senators. To this day, it is known as the Canadian Tire Centre.

As Peavey establishes itself as a national retail presence, the renaming of the Westerner Park Centrium gives the company a valuable boost to its brand at home.

“We are thrilled to partner with Westerner Park and further our local connection while showcasing the overarching dedication we have for a city we are also very proud to call our hometown,” Anderson said.

Provinces loosen retail rules as vaccination rates continue to climb nationally

With vaccination rates continuing to rise across Canada, several provinces advanced in their reopening plans last week. That meant further relaxation of rules for retailers, particularly around the number of in-person shoppers.

Quebec dropped fixed capacity limits in stores last week. Instead, retailers must ensure that there is enough room for customers to maintain physical distance. That distance was also cut from two metres to one. Similar rules are in place in Newfoundland and Labrador.
 
Also last week, Ontario entered Step 3 of its reopening plan—five days ahead of schedule. It too has dropped percentage-based capacity limits in favour of a simple physical distancing requirement. Nova Scotia did the same, moving into the fourth of its five planned phases.  
 
Since July 1, British Columbia has been in Step 3. Masks are recommended but no longer required in indoor public spaces. Store occupancy is at the discretion of the retailer. Alberta entered its final stage on the same date; all retail restrictions are now lifted. Saskatchewan entered its Phase 3 on July 11, lifting all public health orders including the mask mandate.

Similarly, Prince Edward Island encourages but no longer requires masks in indoor public spaces. Those serving the public, like retail employees, should continue to wear them, however.
 
This week, Manitoba’s premier, Brian Pallister, and the province’s top physician are slated to hold a press conference outlining the province’s next steps. Manitoba reached Milestone 1 in late June. Retail stores can currently open at 25 percent capacity, to a maximum of 250 individuals. The province has now hit its vaccination target for the second of the three milestones. Pallister is expected to offer details of what the easing of restrictions will look like.

DID YOU KNOW…?

… that the annual Hardlines Retail Report is now available—and it’s selling like crazy? This powerful set of research is a marketer’s dream. If you want to know the sales growth and market shares of all the hardware and home improvement groups in Canada, and the strategic analysis of the top players, this is the report for you. It features 190 slides and dozens of photographs and tables. For more info and to order, click here!

Sexton Group has become a supporter of the buy-Canadian initiative Well Made Here (WMH). Eric Palmer, Sexton’s VP and GM, will hold a seat on WMH’s board of directors alongside the executives of the other participating banners.

“As a proud Canadian company, Sexton Group supports quality domestically made products,” he said in a release. “A partnership with Well Made Here is very much aligned with our values.” As a major partner of Well Made Here, Sexton gives its stores the opportunity to advertise themselves as destinations of choice for accredited Canadian-made products.

Lowe’s Canada has partnered with the Charles-Bruneau Foundation to support pediatric cancer research in Quebec. Through the participation of more than 15 of its suppliers and the fundraising campaign led by its cycling team, the organization presented a $400,000 cheque to the foundation as part of the 25th Tour CIBC Charles-Bruneau. The 57 cyclists of the Lowe’s Canada team took part in various treks of the tour earlier this month, including the 50 km, the 80 km, the 141 km, and the remote tour.

Castle Building Centres Group has announced the addition of Hometown Flooring as its newest member in Nova Scotia. Under Castle, the Truro specialty flooring retailer will be expanding its business into a full-service building materials retailer. Owners Paul and Janet Harris purchased the business in 2017. Paul has decades of experience in the retail building supplies industry working alongside his father Ron and brother Doug, who founded the business over 25 years ago. After a renovation to expand the store, it will have a grand reopening sometime in 2022.

Castle Building Centres also welcomes Quincaillerie Shipek in Longue-Pointe-de-Mingan, Que., as its newest Castle Centre du Rénovation. After Mingan’s original hardware store closed, locals found they had to travel over 40 km to get to the nearest store. After four years, the Pekuashipi and Ekuanitshit Innu Nations bought the hardware business. Quincaillerie Shipek will celebrate a grand opening in the late summer.

Lowe’s Cos. is teaming up again with Daymond John for the next round of Making It…With Lowe’s. The pitch program gives entrepreneurs who are members of minority groups across the U.S. a chance to sell their wares on Lowes.com and in Lowe’s stores nationwide. John is a star of ABC’s Shark Tank, the U.S. version of the international Dragon’s Den franchise. The program “shines a light on the remarkable stories of diverse small business owners who are often overlooked and underrepresented,” says John, who will return as host and advisor to the finalists.

SUPPLIER NEWS

Richelieu Hardware Ltd. more than doubled its Q2 profits, as net income amounted to $37.4 million, up from $17.8 million a year ago. Sales increased to $371.4 million from $248.3 million, due to same-store sales growth of 60 percent in Canada and 50 percent in the U.S.

Manufacturers of wooden pallets are caught between lumber shortages and unpredictability in the supply chain, The Globe and Mail reported. Between wait times for machinery and pressures on the labour market, boosting production is not an option, according to Shawn Hicks, CEO of CPS Wood Products in Cobourg, Ont. “We’ve had to turn away new opportunities from big companies—we just can’t handle the extra demand.” Experts say unless pricing cools down, consumers will see costs passed on to them.

ECONOMIC INDICATORS

Investment in building construction cooled slightly in May, decreasing 1.9 percent to $19.4 billion. This was the first drop in seven months. Residential construction investment declined for the first time since April 2020, while non-residential construction increased slightly. Residential construction was down 2.7 percent in May, bringing total investment to $14.8 billion, with declines in both single and multi-unit construction. Investment in single-family homes was also down 2.7 percent to $8.3 billion. Quebec and Ontario posted the largest declines. Still, single-unit investment remained approximately 60 percent above pre-COVID-19 levels. (StatCanada)

NOTED

The latest instalment of our Hardlines Podcast Series features Bernie Owens, president and CEO of TIMBER MART. Bernie talks about the value of independents reacting quickly to their local markets and the importance of buying groups. Click here to receive updates when new episodes are launched!

OVERHEARD…

“If the last 18 months have taught us anything, it’s how important it is to have access to high-quality healthcare. In this context, we are particularly pleased to once again be a Diamond Partner of the Tour CIBC Charles-Bruneau and to financially support cutting-edge pediatric hemato-oncology research.”
—Jean-Sébastien Lamoureux, senior VP, public affairs, asset protection, and sustainable development at Lowe’s Canada, on his company’s fundraising campaign that generated $400,000 for kids with cancer.

Bernie Owens is the president and CEO of TIMBER MART, one of the country’s largest LBM buying groups. He’s held the post for almost eight years and during this time he has gotten close to his dealers—and their concerns on the front lines.

Owens also has some observations about the larger issues facing the retail home improvement industry. We had the opportunity to speak with him recently on a range of topics. That conversation is featured in the latest episode of the Hardlines podcast series, What’s in Store.

The importance of a buying group, and the necessity for size, is greater than ever before, says Owens.

“If I look at the independent dealers today, and the challenges they are facing, an independent dealer should be looking at a buying group that offers critical mass to the vendor community, significant volumes, buying power, and LBM distribution to assist when they have stockouts.”

He says that independents can react to their local markets more quickly than a big chain can. But these same independents have other concerns, and a major one nowadays is the security of supply. Over the past 16 months, maintaining supply has been crucial for all dealers and Owens only expects this situation to worsen in the coming months. But the relationships TIMBER MART has with key vendors ensure that source of supply for its members.

“More than ever, independent dealers truly need to work together to make sure they are looked after and remain competitive against corporate entities.”

Dealers face new challenges as they attempt to manage their inventories in the face of rising prices. Costs have to be weighed against long lead times as supply is squeezed. Another concern for Owens’ dealers—and one that retail is facing more widely—is the importance of attracting people to work in their stores and to be part of this industry.

Another issue Owens has seen his dealers struggle with is cybersecurity. He believes all dealers must stay on the alert. “I encourage all businesses, regardless of who you are, whether you’re a small business or a large business, to keep cybersecurity training top of mind and give your employees the knowledge they need to help protect the business.”

(Our conversation with Bernie Owens is featured in the latest instalment of the Hardlines podcast series, What’s in Store. Click here to listen to the full interview and to sign up for all our podcasts!)

Canada is one of the most buoyant home improvement markets in the world and market conditions under COVID have driven the sector to unprecedented heights. According to the 2021 Hardlines Retail Report, growth in 2020 by hardware and home improvement dealers in Canada set a record.

The latest Hardlines Retail Report examines the industry, and the retail players that make it up, in detail using data and statistics that are not available anywhere else. The proprietary research and strategic insights in the report shed light on how much the industry is growing, where the growth vectors are coming from and which players are leading the way.

The sector faced a year of unprecedented sales activity in this sector under COVID in 2020. The year resulted in an average sales increase from all stores measured in this study of more than 15 percent, a rate of growth not seen since Hardlines began tracking the industry 25 years ago.

Unlike previous years, the increase was seen across the country, even in the Prairies, where a slowed energy sector had impacted those markets. The Maritimes also saw an increase, which in other years has seen only slow or flat growth.

Growth was not consistent across all store types. Hardware stores as a sector saw the slowest growth of all the store formats. However, this reflects the ongoing reduction in the number of these stores in favour of more full-line building centres. They now account for less than seven percent of sales in the industry. Despite this, hardware stores had some of the biggest same-store sales of any sector, many of them reporting sales increases in 2020 of 25 percent and up, and even 40 percent increases.

Building centres and big boxes both reported healthy double-digit increases, reflecting the surge in renovations and improvements that consumers undertook during COVID. Big boxes also made gains in their overall share of the market, bearing out their viability during the year of pandemic.

For vendors trying to understand their customers, or retail groups that want to keep abreast of their competitors, the report identifies and ranks the top 20 retail players in the sector. In addition, the four leading groups are analyzed in-depth to explain strategies, competitive advantages, and expansion plans.

Areas of study include:

• The size of the industry year-over-year
• In-depth analysis of the top players, Home Depot Canada, Lowe’s Canada, Home Hardware, and Canadian Tire Retail
• The winning formats—how the independents are faring against the big boxes
• The hot provinces and how market shares have changed by region year over year
• The newest trends and challenges facing the industry today
• Forecasts for the industry in 2021 and 2022

Designed to help retailers and suppliers alike develop their business plans for the year ahead, the 2021 Hardlines Retail Report provides valuable forecasts for the industry and its top players for 2021 and 2022. It features 190 PowerPoint slides and is packed with dozens of charts, graphs, and photographs.

(Click here for more information and to order your report now!)

Eisenwarenmesse, the International Hardware Fair, is preparing to return to a live event next year. Pre-bookings by vendors for the giant hardware fair in Cologne, Germany, indicate strong support for a return to face-to-face business. Show organizers report that the event already has almost 2,500 registrations through its early-bird booking. These bookings were also a success internationally, as exhibitors from over 40 countries have registered so far.

The show has evolved over the years to become not just a showcase for new products, but a springboard for new ideas and trends. Exhibitors from all over the globe will be presenting their innovations, ranging from tools and fixing and fastening technology to construction and home improvement supplies.

After the time-out in 2020 and 2021 due to the pandemic, the current number of applications received underlines the significance of the leading global trade fair and the need of the market participants for personal contact and the desire to return to an environment that addresses all senses. With this knowledge, the show in 2022 will be a hybrid physical and online event.

Some key trends to watch for in Cologne:

• Healthy products that are becoming more ergonomic. A new, ergonomically shaped generation of tools facilitates handling and operation.
• Safety at work and on the job is another top theme to come out of the pandemic. That includes the show itself. The International Hardware Fair promises the highest level of safety for attendees next year.
• Faster and more efficient tools continue to represent an important trend. The new products of many manufacturers aim to accelerate the work process.
• Focus on design combines function with form as everything from screwdrivers to workshop trolleys strive to be more attractive, some even being issued in limited design editions.

Eisenwarenmesse takes place March 6 to 9, 2022, in Cologne, Germany.

Retailers race to update their IT teams to capture e-commerce sales

The surge in online sales over the past year represented a huge shift in consumer habits—and a huge concern for dealers and managers. Through the pandemic, the shift to online sales has grown exponentially.

Retailers with established platforms, such as Canadian Tire, Lowe’s Canada, and Home Depot Canada, fared well over the past year as their online sales soared. But the move was often a difficult one for independents, especially as this trend continues even after the worst of the pandemic is behind us.

However, the big groups are well-positioned to ramp up their online sales game and an article in ITBusiness.ca provides some details of what two of those groups are doing. According to the article, Rajat Khanna, vice-president of information technology at Lowe’s Canada, saw the retailer’s website traffic increase by 200 percent and digital volume was up 400 percent. Initially, one of the big sellers was paint. In response, Lowe’s Canada introduced an online paint selector, which lets customers transform the room they want to paint virtually.

At Home Hardware Stores Ltd., Chris Parsons, director of e-commerce, was quoted as saying the banner’s website traffic more than doubled during the past year under COVID. Parsons noted that his company rolled out a platform to help its dealers track and process online orders.

Even as more customers moved online, the company’s call centre experienced a huge surge in use as well, rising by 350 percent. At Lowe’s Canada, that number went up by 800 percent, said Khanna.

For both companies, as well as companies like Canadian Tire, the focus has been on hiring more IT staff and beefing up the tech sides of their businesses.

BMR Group has appointed Simon Gouin as senior director, business development, eastern Canada. In his new role, Gouin will oversee the development of the dealer network in Quebec, Ontario, and the Maritimes, as well as BMR’s business relationship with current dealers. A graduate of HEC Montreal in business administration, Gouin has more than 15 years of experience in business development in the construction and renovation industry. He managed hardware stores for almost a decade before holding various management positions in sales and business development, including management roles at Patrick Morin and TORBSA.

DID YOU KNOW…?

… that the annual Hardlines Retail Report is now available? This powerful set of research is a marketer’s dream. If you want to know the sales growth and market shares of all the hardware and home improvement groups in Canada, and the strategic analysis of the top players, this is the report for you. It features more than 185 slides and dozens of photographs and tables. For more info and to pre-order, click here!

The Home Depot Canada Foundation is renewing its major funding of $300,000 over two years to support education and job readiness programs at Dans la rue. Founded by Father Emmett “Pops” Johns, the organization has supported homeless youth in Montreal since 1988. Since 2015, it has received more than $1 million through the foundation’s Orange Door Project. Until Aug. 1, customers at Home Depot’s Boisbriand store will have the option of making a $2 donation to Dans la rue.

The Retail Council of Canada has recognized Lowe’s Canada as a finalist in this year’s Excellence in Retail Awards. The retailer was included in the Environmental Leadership and Omni-Channel categories for its sustainability initiatives. Also among the Environmental Leadership finalists are Federated Co-operatives Ltd. and Walmart Canada. In the Omni-Channel category, Lowe’s Canada was joined by Lee Valley Tools. Canadian Tire Corp. placed in the In-Store Experience and Design, Philanthropic Leadership, and Pop-Up Experience and Design categories. Federated Co-operatives, Lee Valley Tools, and Peavey Industries were recognized for Retail Marketing. Canadian Tire and The Home Depot Canada received the nod for Talent Development.

Groupe LTM has acquired the RONA store in Marieville, Que., now named RONA Matériaux Marieville. The group owns three other Montreal-area RONA hardware stores, under general manager Bruno Paradis. The latest addition is a 5,000-square-foot store offering a range of hardware, paint, tools, and seasonal products. It also sells school and office supplies through its Papetrie ABCD stationery shop.

GMS Inc. has announced the completion of its acquisition of Westside Building Material. The parent of WSB Titan originally announced the $135 million deal in May. The acquisition increases GMS’s reach in several major California markets and marks the commercial dealer’s first foray into the Las Vegas market.

Rockwool North America has begun commercial production of stone wool insulation products at its newest U.S. manufacturing facility, located in Jefferson County, W.Va. The 460,000-square-foot factory produces Rockwool’s residential, commercial, and industrial stone wool insulation.

Trusscore has announced the acquisition of Calgary-based Westech Building Products, a developer of vinyl building materials. Westech was acquired from its parent company, Westlake Chemical Corporation. Westech is a Houston-based manufacturer and supplier of petrochemicals, polymers, and building products.

Intertape Polymer Group has reached an agreement to acquire Nuevopak Global Ltd. for approximately $43.8 million. Nuevopak is a privately held company based in Hong Kong and develops machines to make protective packaging. That segment “continues to be a strategic portion of our product bundle,” said Greg Yull, president and CEO of IPG, in a release. “Nuevopak has been a valued partner of ours for several years and this acquisition was a natural evolution of that relationship.”

ECONOMIC INDICATORS

The value of building permits fell in May by a record $1.6 billion, or 14.8 percent, to $9.5 billion. The decline affected all sectors, with almost three-fifths of it due to multi-family dwellings in Ontario. All provinces except for Newfoundland and Labrador posted a decrease in the value of permits issued for single-family dwellings, which fell 10.6 percent nationally to $3.2 billion. Quebec accounted for almost half of that decline. (StatCanada)

Total U.S. retail sales excluding non-store retailers (not seasonally adjusted) in March were up 31.9 percent from March 2020. All 50 states and the District of Columbia had positive and significant year-over-year percentage changes from March 2020 to March 2021. (U.S. Census Bureau)

NOTED

The latest episode, “The Legacy of J.Pascal Hardware,” of the Hardlines podcast series, The History of Home Improvement, is now available. It looks at the story of J. Pascal Hardware, a family-owned enterprise for almost 90 years. Founded by Jacob Pascal, a Romanian Jewish immigrant to Montreal, it spread to 21 locations throughout Quebec and Ontario. The company pioneered the use of discount and remainder bins to appeal to customers on a tight budget. Click here to subscribe to the Hardlines podcast series for free and to listen to past episodes!

OVERHEARD…

“It’s a challenge. It’s definitely a challenge for the dealers to get people out to work… However, I’m hopeful that as more of the population gets vaccinated, and the COVID cases eventually begin to decline, that we’ll see more people entering the workforce.”
—Bernie Owens, president and CEO of TIMBER MART, on the need to attract young, talented people to the retail home improvement industry. He is featured on the next  episode of the Hardlines podcast series, What’s in Store.

Home Depot is rolling out an online rental service at its 1,300 rental locations across North America. But the Canadian division has been up and running with it since earlier this year.

Aimed at both contractors and heavy DIYers, the service uses Home Depot’s new ‘Rent Online, Pick-up in Store’ technology. The retailer’s rental services offer a range of products aimed at pros and heavy DIYers, including demolition tools like breakers and concrete saws, landscaping tools like tillers, sod cutters, trailers, and moving vehicles. Customers can reserve and rent equipment online up to 30 days in advance.

“This new online technology saves pro and DIY customers time and trips to the store because they can conveniently check equipment availability and reserve what they need in advance to get in and out of our rental centres more quickly than ever,” said Richard Porter, vice president of The Home Depot Rental in the U.S. “For urgent needs at the job site or in the midst of that weekend project, customers can also check availability at multiple locations and make reservations on their phone or other mobile device.”

The company touted the piloting of online reservations in various U.S. cities, namely in the Atlanta, Charlotte, Houston markets. But the program has been up and running in its own fashion here in Canada for several months already.

According to a spokesperson at Home Depot Canada, the program here “is in fact something that our teams started rolling out earlier in the year. It’s available nationally across Canada.” Home Depot has 178 rental locations in Canada, out of a total of 182 stores in this country.

In the U.S., Home Depot is catching up in terms of locations. It has opened eight new rental centres since January.

Ace Hardware is seeing tremendous growth in the U.S., where it has some 5,000 stores. But it is keenly interested in the activities of its Ace dealers in Canada as well. Here, the Ace brand is licensed to, and managed by, Red Deer, Alta.-based Peavey Industries.

Mike Berschauer is VP of sales, customer service, and operations for Ace International Holdings, the division that works with the Ace licence in Canada. Berschauer believes the union with Peavey makes for a strong fit. “[Peavey CEO] Doug Anderson and Peavey Mart already represent a strong retail operator functioning in a profitable manner in the rural farm and ranch market. They already have an understanding of that segment.”

That fits well with the growth Ace has seen in Canada, where stores are typically smaller operations that thrive in smaller locales. However, says Berschauer, Ace can provide much more. “Ace has an urban store program. We’ve got models and methodologies that will help us support Peavey in any market.”

He sees lots of opportunities for the partnership to keep growing, thanks to a relative lack of consolidation. “From a per capita standpoint, there are so many medium to small players in Canada compared to the U.S.”

The Canadian team at Peavey, Berschauer adds, “have strong logistics and a national mindset to tackle proper expansion and determine what differentiates Ace in the marketplace.”

Ace was formerly in the hands of Lowe’s Canada and for many Ace dealers making the switch, it was important to find alignment with Ace’s values. That happened with Peavey, he believes, as that company has made a strong commitment as a primary hardlines supplier that fits with the Ace dealers.

Ace International’s approach has evolved, and it fits with the new partnership at Peavey. “We’ve moved away from being just a source of supply to our international customers to more of a franchise model,” says Berschauer. That means a big push on making the Ace culture of training and customer service skills a key part of what it means to take on the Ace banner.

“Peavey’s field teams are now mirroring the best practices and training, the category sets and store optimization—they’re learning and understanding and then applying those concepts in the Canadian market.”

Swedish discount DIY retailer Byggmax sees e-commerce exploding

The impact of COVID worldwide has had positive effects on home improvement retailers. But the challenges are also similar.

In a recent talk with the Global Home Improvement Network (GHIN), Mattias Ankarberg, CWEO of Byggmax Group, shared some of the challenges and strategies his company has experienced over the past 16 months. Byggmax is a chain of discount home improvement stores based in Sweden. Ankarberg spoke with John Herbert, general secretary of the European DIY Retail Association (EDRA) and GHIN.

Ankarberg noted that the essential status helped his stores in many countries, including Finland and Sweden, while locations in Denmark and Finland did not enjoy such status and were forced to close for months at a time. In addition, the company has faced the familiar issues of supply chain restrictions, the explosion of e-commerce, and the impacts of the pandemic on the retailer’s workers that have plagued retail worldwide.

Byggmax Group oversees 169 Byggmax discount home improvement stores, 116 in Sweden, 43 in Norway, and ten in Finland. Sales by the group grew almost 30 percent in 2020, while e-commerce sales grew by 50 percent. “E-commerce has exploded for us. Click-and-collect has really taken off,” Ankarberg said.

When GHIN’s Herbert asked him what he had learned from the pandemic, Ankarberg referred to a range of factors. But the overriding one was getting accustomed to “just how much money people were willing to spend on home improvements and DIY.” His company is already up 29 percent so far this year. And he expects the trend to continue. “Our view is that the home is more important after the pandemic than it was even during the pandemic.”

He expects people to stay emotionally tied to their homes, while concepts like staycations will continue to be popular as people keep buying things to enjoy in their homes. This year won’t be as good as 2020, he says, but he does expect home spending to continue into 2022 and beyond.

Ankarberg also foresees that the online side of the business will keep growing and expects it will account for one-third of Byggmax’s sales by 2025.

Tristant L. Langelier has joined the Sexton Group as business development manager for Quebec. In his new position, Langelier will be instrumental in building relationships and growing the membership in Quebec. His background includes an account manager role at McCordick Glove and most recently a position as regional sales manager for KP Building Products, the aluminum and vinyl siding company. Sexton Group considers the hire an important step in helping the group make inroads in Quebec.

DID YOU KNOW…?

… that the annual Hardlines Retail Report is available next week? This powerful set of research is a marketer’s dream. If you want to know the sales growth and market shares of all the hardware and home improvement groups in Canada, and the strategic analysis of the top players, this is the report for you. It features more than 185 slides and dozens of photographs and tables. For more info and to pre-order, click here!

A new RONA affiliate store has opened in Dryden, Ont. Owners Lori and Marc Palsson acquired the store, which has been serving the Dryden area for over 40 years, in March and set about renovating it as a one-stop home improvement shop. It now features a new seasonal sales area as well as a kitchen, bath, and appliance centre.

Peavey Industries has been adding members to its Ace Hardware banner. Maple Avenu Ace Hardware is the new hardware and lumber outlet in Medicine Hat, Alta. It’s relying on Ace Canada’s alliance with Sexton Group to get access to both hardware and LBM assortments. Lealta Building Supplies in Lethbridge, Alta., a 28-year member of Sexton, is adding the Ace banner for its hardware needs. The business is owned by Dave and Tammy Jackson.

Ace Hardware in Port Hardy, B.C., is the newest addition to Ace’s corporate holdings. Always a part of the same family of companies, the store began as Macleods and transitioned to True Value in the early 1990s; it was rebranded to TRU Hardware before final realignment to Ace Hardware in 2015. Dealer-owners Vera and Terry Smyth are retiring after 35 years serving the community.

ECONOMIC INDICATORS

Retail sales were down 5.7 percent to $54.8 billion in April. The decline coincided with the third wave of the COVID-19 pandemic and was the largest decline in retail sales since April 2020, during the first wave of the pandemic. Sales at building material and garden equipment and supplies dealers were down 10.4 percent, the first decline in nine months. Despite the drop, sales remained above levels reached in February 2021. (StatCan)

U.S. home prices in April rose at their fastest pace since 2005, as bidders scrambled to compete for a tight supply of properties. Housing prices in 20 U.S. cities logged a 15 percent rise in April compared to a year prior. The pandemic has seen many families move away from city centres in search of more space. Low mortgage rates have also helped to fuel demand. Yet even with sales slowing, as more and more buyers are priced out, analysts see no sign of prices moderating any time soon. (S&P CoreLogic Case-Shiller Index)

OVERHEARD…

“We have worked hard to strengthen our national footprint, we are committed to bringing the full value of the Sexton Group to Quebec, and we are excited to enter this untapped market.” —Eric Palmer, vice president and general manager of the Sexton Group, on the recent hiring of a business development manager who will be focused on the province of Quebec.

Peavey Industries has struck a deal with Surrey, B.C.-based Cloverdale Paint to provide a private-label coatings line for Peavey’s Ace Canada dealers.

Cloverdale is making the paint for both of Ace’s paint lines, Royal and the premium Clark + Kensington brand. The paint fills an important gap in the Ace assortment in this country, as Ace’s paint provider in the U.S. would not ship to Canada. Finding a homegrown source was a natural solution, says Derek Smith, vice president of the Ace Canada division at Peavey. “It just makes sense to be buying in Canadian dollars and supporting a good Canadian company.”

Smith points out another benefit of the new partnership. “Cloverdale is also taking care of the training for the Ace staff and dealers. It’s not something Ace Canada had to worry about and provides good support for the Ace dealers.”

The background to the shuffle started almost a decade ago when Ace sold its paint manufacturing operation to Valspar in 2012. At that time it started carrying Valspar along with its house brands. But five years later, Valspar was bought by Sherwin-Williams. But Sherwin-Williams had made a deal a year earlier with Lowe’s Cos. to supply that retailer’s paint.

Ace then turned to Benjamin Moore, a Berkshire Hathaway company, to make the dealer-owned co-op’s high-end line, Clark + Kensington, and eventually expanded production to handle all of Ace’s paint supply later in 2019.

Smith summed up what the latest development of the Ace paint line represents. “We are focused on building Ace brand products for Canadian dealers.”

The Lumber and Building Materials Association of Ontario (LBMAO) has hit back at comments about the industry by Premier Doug Ford. During a press conference last week, the premier mused that “those lumber companies who are jacking up prices need to be held accountable.”

In an open letter, LBMAO president Dave Campbell rejected any suggestion that “our sector is ‘ripping the public off.’” Campbell sent the letter to the premier’s office. Lumber pricing, he explained in the letter, has been impacted from multiple directions.

Supply chain pressures and heightened demand followed both the pandemic and extreme weather in the U.S. At the same time, he said some of the increase in pricing had been “artificially orchestrated by provincial government policies to mitigate the impact of the COVID-19 pandemic,” adding that the LBMAO had “fully endorsed” those measures.

In an interview with Hardlines, Campbell expressed his outrage. “I thought it was just a stupid comment that did not address what the market represents.”

Commenting further on the letter, Campbell pointed out that these market pressures are out of the hands of dealers. “We have no control over prices. It’s dictated by the mills. Add to that product shortages, which are widespread and not just limited to lumber. And I didn’t even mention the devastation that’s been caused by the mountain pine beetles in B.C. forests.”

Campbell says the response from the industry has been very supportive. Dealers and suppliers alike let him know they agreed that Ford’s comments needed to be addressed. “The products we sell are commodities and pricing is dictated by the free market. The prices are already starting to go down. Whether they will go down to where they were two years ago, you never know. But they will level off.”

As of press time, Campbell had yet to receive a response from Premier Ford or his office and lumber prices have already begun to tumble.

A building centre in Scarborough, Ont., is the latest dealer to join Castle Building Centres. But it’s not the first dealer in the Greater Toronto Area to sign with the buying group so far this year. And it’s part of a significant expansion of Castle’s presence in a major urban market.

Global Building Supplies is a full-service lumber, building materials, and hardware retailer in a suburb on the east side of Toronto. The business was founded in 2020 by Min Lin, who has worked in the industry for close to a decade.

Castle has made a series of wins within the GTA since the beginning of 2021. In March, it signed Peel Hardware & Supply, a family-owned business in Caledon, a community on the west side of Toronto. Owner Bill Hewson founded the business in 2013; his daughter Jennifer Hewson manages it now.

Less than a month later, the buying group announced another Toronto member, ML Lumber & Building Supplies. Owners Connie Vieira and her son Rene Silva Jr. have operated in Toronto since 1974. Soon after that, Castle continued its expansion in the region with the addition of BDC Lighting and All Trade Supply in Brampton.

The next business to join Castle added to the ranks of the group’s commercial division, CBS. RGS Rascom Greenbuild Services in Concord, Ont., under the owner and managing director Rick Stacey, has been there for a dozen years, providing contractors with building envelope products.

The latest recruits bring Castle’s representation in the GTA to a dozen stores. The group has almost 300 member stores in total, with sales from all stores totalling an estimated $2.3 billion in 2020 (source: Hardlines Retail Report). However, the majority of its stores are in smaller centres across Canada. While it has three stores each in Calgary and Edmonton, for example, there are none in the Montreal area or the Lower Mainland of British Columbia, according to the Castle website. The increase in numbers in the GTA marks a notable expansion into an urban market.

Castle would not comment on whether the recent wins were part of a larger plan or merely a coincidence, as the geographically related dealers came on board around the same time.

The global home improvement retail market shrank in 2020. Worldwide, sales fell by 2.2 percent to a value of $279.28 billion (all sales in USD). This figure was given by Miles Agbanrin, a consultant at Euromonitor International, in a recent presentation to the Global DIY Network.

Although the growth rate of e-commerce in the global home improvement trade doubled from 23 percent in 2019 to 47 percent in 2020, the overall decline in market volume could not be averted. Sales in home improvement and garden stores, whose market share is put at 70 percent by Euromonitor International, were down by one percent, while sales in other distribution channels fell by nine percent to 22 percent. The market share of e-commerce increased from three to eight percent between 2015 and 2020.

However, the overall decline was not realized in the Western industrialized nations, many of which saw record increases. The slowdowns occurred in the so-called developing markets, Agbanrin explained. He cited India, Taiwan, and China as examples.

Sales of wooden flooring in the Asia-Pacific Region, for example, fell by $1.89 billion, decorative paint sales declined by $2.13 billion, and sales of floor tiles were down by $3.16 billion.

On the other hand, “light DIY” was in demand in America and Europe. In North America, retail sales in the decorative paint category rose by $1.05 billion and in the hardware category by $950 million. In Western Europe, decorative paint added $647 million in sales.

Euromonitor International expects the global market volume to increase again in 2021 to $291.25 billion. By 2025 it should rise to $315.08 billion.

DID YOU KNOW…?

… that the annual Hardlines Retail Report is available soon? This powerful set of research is a marketer’s dream. If you want to know the sales growth and market shares of all the hardware and home improvement groups in Canada, and the strategic analysis of the top players, this is the report for you. It features more than 185 slides and dozens of photographs and tables. For more info and to pre-order, click here!

TIMBER MART has signed Centre de peinture Picasso as its fourth new member in Quebec to join this year. Located in Val-d’Or, the store has served as a destination for paint, plaster, tile, and siding in the Abitibi region for more than 35 years. The retailer wants to build out the business beyond paint and accessories, says co-owner Julie Bergeron.

IKEA Canada has partnered with ACCES Employment to launch a national Refugee Skills for Employment program. Supports include virtual customer service training, paid work placements, one-on-one culture and language coaching, job search strategies, and mentorship from IKEA Canada leaders. The program aims to hire 150 refugees within three years and is part of a broader commitment from IKEA globally to reach 2,500 refugees with meaningful employment by 2022.

To help speed up the length of in-store visits, Australian big box home improvement retailer Bunnings has introduced interactive maps. It’s a new feature on the retailer’s product finder app, available across most of its stores. The new feature allows customers to view the location of a product and access the fastest route to get to it. Customers can also locate different services within the stores.

SUPPLIER NEWS

JRTech Solutions, the Montreal-based supplier of electronic shelf labels (ESL), has signed an agreement with Metro, one of Canada’s largest food retailers, for its Pricer ESL system. The deal builds on an initial agreement between JRTech Solutions and Metro that was signed in 2018. This latest update includes the deployment of Pricer Plaza’s cloud platform, which leverages electronic shelf labels to automatically locate a product in a store.

Pre-bookings by vendors for next year’s giant hardware fair in Cologne, Germany, indicates strong support for a return to face-to-face business. Eisenwarenmesse, the International Hardware Fair already has almost 2,500 registrations through its early-bird booking. The booking was also a success internationally, say the organizers, as exhibitors from over 40 countries have registered so far. The show will be held from Feb. 21 to 24, 2022.

ECONOMIC INDICATORS

Current housing trends and the outlook for housing market fundamentals suggest activity will remain strong through 2021. This is expected to result in a record number of sales this year, despite a slowdown that began in April. However, over time activity is forecast to continue returning toward more typical levels. As a result, 2022 is expected to see significantly fewer home sales than in 2021. (Canadian Real Estate Association)

Retail sales were down 5.7 percent to $54.8 billion in April. The decline coincided with the third wave of the COVID-19 pandemic and was the largest decline in retail sales since April 2020, during the first wave of the pandemic. Sales at building material and garden equipment and supplies dealers were down 10.4 percent, the first decline in nine months. Despite the decline, sales remained above levels reached in February 2021. (StatCanada)

Sales in the U.S. of new single‐family houses in May were at a seasonally adjusted annual rate of 769,000. This is 5.9 percent below the April rate but is 9.2 percent above the same month a year ago. (U.S. Census Bureau)

NOTED

Ace Hardware Corporation says it’s hiring 30,000 employees this summer through the U.S., adding to the ranks of its retail stores and distribution centres. This comes amidst a record first-quarter earnings report and Ace Hardware earning J.D. Power’s highest ranking for customer service among home improvement stores.

The retail hardware and home improvement industry performed strongly during COVID, up by more than 15 percent in 2020 over 2019. Many dealers reported being up by 20 to 30 percent, thanks to huge demand by consumers and contractors alike. This represents a huge turnaround from 2019 when overall home improvement retail sales dipped slightly—for the first time in more than a decade.

These are just some of the statistics and findings in the 2021 Hardlines Retail Report. The report is our annual in-depth look at the size of the retail market for hardware and home improvement sales in Canada.

The report looks at growth within the industry from several angles: based on store type (hardware, building centre, big box) and regionally. Breakdowns of the number of stores by type, according to province, are also found in the 2021 Retail Report. It’s filled with proprietary research on the industry’s biggest retail groups that is not available anywhere else.

The report identifies and ranks the top 20 retail players in the sector. The four leading groups each are analyzed in-depth to explain strategies, competitive advantages, and expansion plans.

Areas of study include:

• The size of the industry year-over-year
• In-depth analysis of the top players, Home Depot Canada, Lowe’s Canada, Home Hardware, and Canadian Tire Retail
• The winning formats—how the independents are faring against the big boxes
• The hot provinces and how market shares have changed by region year over year
• The newest trends and challenges facing the industry today
• Forecasts for the industry in 2021 and 2022

Designed to help retailers and suppliers alike develop their business plans for the year ahead, this year’s report provides valuable forecasts for the industry for 2021 and through to 2022. Forecasts include the estimated performance of the industry’s top four home improvement retailers.

The 2020 Hardlines Retail Report fills more than 185 PowerPoint slides and is packed with dozens of charts, graphs, and photographs. (For more information and to pre-order the 2021 Hardlines Retail Report, click here.)

Home Depot has done an end-run around the global supply chain headaches that continue to plague retail supply. The giant retailer has secured its own ship.

“We have a ship that’s solely going to be ours and it’s just going to go back and forth 100 percent dedicated to Home Depot,” COO Ted Decker told NBC News.

The contracted ship will make its first runs next month. It’s just one of the extraordinary steps the company has taken to mitigate disruptions to supply caused by the pandemic. And it should have no trouble filling the ship. According to the Journal of Commerce, Home Depot is the third-largest U.S. importer by volume of ocean containers. (Lowe’s is number four.)

The move was made as the flow of raw materials—and the goods they are made into—remains sporadic and backlogs are daily occurrences. Nor is the problem exclusive to home improvement: furniture, consumer goods, electronics, and shoes are just some of the other areas affected.

Now, a new outbreak of COVID-19 is spreading through Southern China, creating concerns that factory production in that country will get disrupted even further. Meanwhile, shipping rates are climbing, with the cost of a 40-foot container up more than 150 percent in North American ports.

Orgill continues to beef up its distribution network and the latest addition to its network is a new distribution centre in Rome, N.Y. That facility is now fully operational and will begin servicing customers in an eight-state region as it ramps up operations over the next 10 weeks. Orgill is touting it as the fastest start-to-finish completion of a ground-up DC in the hardware wholesaler’s modern history.

The Rome site is Orgill’s eighth DC, joining existing facilities throughout the U.S. and Canada, including two, in Post Falls, Idaho, and London, Ont., that serve Orgill customers in this country.

“We are extremely pleased that our Rome distribution centre is now online to provide even better service, speed, and responsiveness to our customers,” said Boyden Moore, Orgill’s president and CEO, in a release.

The newest facility will serve Orgill customers throughout New York, Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, and northeastern Pennsylvania. It effectively doubles Orgill’s distribution capacity in the region.

Plans for the 780,000-square-foot facility were first announced in the spring of 2019 as a way to better accommodate Orgill’s growth throughout the Northeast and Mid-Atlantic regions. However, according to Randy Williams, Orgill’s executive vice president of distribution, the impact of the new DC will be felt beyond its immediate service area, creating a “ripple effect” on its other distribution centres. “In reality, Rome will create greater capacity at almost all of our DCs and allow us to better service our growing customer base across much of our service areas.”

But the new DC will not impact distribution to Orgill’s Canadian customers, who will continue to be served out of Post Falls and London.

Williams also says the state-of-the-art Rome facility will serve as a proving ground for new distribution and logistics best practices that Orgill can learn from and roll out to other DCs in the future.

For example, the Rome distribution centre was designed using what’s known as a very narrow-aisle (VNA) layout. True to its name, this format uses aisles that are more narrowly spaced and special equipment to navigate those aisles. The narrower aisle spacing allows for more merchandise to be stocked in less space.

“In addition to the VNA layout, the Rome facility also takes advantage of features such as utilizing a multi-tiered conveyor system instead of the traditional spiral conveyor. The multi-tiered system is more efficient and helps reduce any unwanted slowdowns if there are any issues with the conveyor,” says Mark Scanlon, Orgill’s vice president of northeast distribution.

Sexton Group is going ahead with a series of virtual events, dubbed the Spark Series, to stay in touch with its member dealers and to keep them informed of current issues and trends. The virtual aspect got support based on feedback from Sexton’s first virtual AGM, held in January. It’s further supported by the advances in digital communications that Sexton has made under COVID to keep members informed.

Under the series, three virtual learning events have been held so far. The kick-off was a day-long event with key vendor partners sharing new products and market information. “This is another way we offer exceptional value to our members by presenting timely topics that affect their business,” Eric Palmer, VP and general manager, said in a release. “It’s a great channel to reach members across Canada and provide updates on the market, product information, and much more.”

The second event featured critical information on cybersecurity awareness, a growing concern for businesses of all sizes. The most recent Spark event, held last week, was on wood commodity, hosted by Don Humphrey, Sexton’s national commodity wood manager.

The move by Sexton reflects the hesitancy of Canadian companies to go live prematurely, even as shows in the U.S. are opening up. For example, the National Hardware Show will be held in Las Vegas in October. But back home, BMR confirmed that its dealer show in November will be virtual again this year. Lowe’s Canada has just announced that it, too, will hold its RONA Buying Show virtually in September.

The Spark Series will pause during the summer months, but it will return in the fall with a new series of topics to help members’ businesses.

DID YOU KNOW…?

… that the newest episode in the Hardlines Podcast Series features part two of our interview with Lowe’s Canada president and CEO Tony Hurst? In this latest instalment, you’ll hear about the strategies for leveraging Lowes Canada‘s unique multi-banner approach and the advantages of the affiliated dealer program under the RONA banner. Hurst also shares his thoughts on leading the company during his first year and a half during the pandemic. Listen here—and join our mailing list so you don’t miss out on future podcasts!

RETAILER NEWS

Federated Co-operatives Ltd. is funding 15 local projects in Western Canada through its Co-op Community Spaces initiative. This year, the organization is providing $1 million in funding for local projects like restoring a natural green roof on an interpretive centre in Stonewall, Man.; building a multi-use trail network along the North Saskatchewan River near Langham, Sask.; a covered outdoor pavilion in Camrose, Alta.; and a community garden and learning space to provide food education in Langley, B.C.

TIMBER MART’s newest member is K.G. TIMBER MART Ltd. in Prince George, B.C. Owner Bruce Kidd has been in the construction business for over 30 years. The new retail business will fall under the Kidd Group of companies, which owns other businesses in Prince George related to construction, real estate, fuel, convenience stores, and car washes. K.G. TIMBER MART will serve contractors and residential builders out of its 3,000-square-foot retail space and storage buildings.

Lowe’s Canada says its RONA Buying Show will return this year as an online event only. It will run from October 18 to December 3. The event is an opportunity for RONA dealers to meet with various suppliers, benefit from expert advice, and get a sneak preview of the spring and summer 2022 product lineup.

TORBSA has announced that Peridot Supply in Brampton, Ont., is its newest shareholder member. Peridot was founded in 2020 by Douglas Brown Jr., after more than a decade of working within the building materials distribution business. The business will focus on servicing the commercial and residential roofing markets across the Greater Toronto Area.

SUPPLIER NEWS

Reed Exhibitions, organizer of the National Hardware Show, has been renamed RX and taken on a new visual identity. “The opportunities to combine both digital and face-to-face interactions have a significant part to play in the global economy,” CEO Hugh Jones said in a release.

Jeld-Wen of Canada is making a multi-million-dollar investment in its Quebec manufacturing facilities. Jeld-Wen’s 150,000-square-foot door factory in Saint-Henri sits on 12 acres of land. The expansion project will add 50,000 square feet to the facility and will be completed toward the end of 2021. In addition, its Saint-Apollinaire, Que., window plant will receive a new automated manufacturing and packaging line, which will help the company meet growing demand.

Vinyl Window Designs (VWD), a Toronto-based manufacturer of vinyl windows, entry doors, and patio doors, has acquired Vinylbilt Windows & Doors. The terms of the deal were not disclosed. Incoming Vinylbilt president Anthony Spatafora will oversee the transition and all employees and management will be retained.

ECONOMIC INDICATORS

Sales of existing Canadian homes fell by 7.4 percent month-over-month in May. That decline follows April’s 11 percent drop. Month-over-month declines in sales activity were observed in close to 80 percent of all local markets. However, on a year-over-year basis, the number of transactions this year represented a 103.6 percent increase. (Canadian Real Estate Association)

U.S. housing starts in May were at a seasonally adjusted annual rate of 1,572,000, 3.6 percent above the previous month and 50.3 percent above May 2020. Building permits were at a SAAR of 1,681,000, down three percent from April but 34.9 percent above a year ago. (U.S. Census Bureau)

U.S. retail sales fell by 1.3 percent in May as Americans began to travel again and to shift spending from goods to services. LBM and garden sales activity were up 21.1 percent from a year ago but down 5.9 percent from April. (U.S. Census Bureau)

OVERHEARD…

“Effective and efficient distribution of products is at the heart of what we do and it is core to how we ensure that our customers can manage and run their businesses profitably. Just because we have one of the most modern distribution networks in the industry doesn’t mean we are going to shy away from making investments and incremental improvements wherever possible.”
—Boyden Moore, president and CEO of hardware distributor Orgill, on the completion of a new DC in the U.S. Northeast.

“The last 15 months have been a challenging time for people across Western Canada. As communities begin to safely re-open, Co-op is providing spaces for residents to rebuild their community connections.”
—Pam Skotnitsky, VP of strategy at Federated Co-operatives Ltd., on the company’s Community Spaces initiative, which provides funding for local projects.

The cost of building materials has risen by between 20 and 30 percent in the past twelve months in the U.S., the National Association of Home Builders and Wells Fargo found in a survey of the association’s stakeholders.

The average response indicated costs had risen by about 26.1 percent. More than one in five respondents said they have seen costs go up by at least 40 percent.

The market south of the border remains heated, putting further pressure on supply and prices. April’s construction spending in the U.S. edged up by 0.2 percent, the U.S. Commerce Department reported, and year over year it was up almost 10 percent.

Likewise, here in Canada, the 2021 Business Conditions Survey by Hardlines found that product availability and high prices are among the top concerns of hardware dealers.

These findings are borne out by industry observers. Oregon-based Random Lengths, which monitors wood markets, said in its recent newsletter that the price of Western SPF two-by-fours dropped for a second consecutive week. Yet cash prices for lumber remain high—nearly four times higher than the June 2020 benchmark.

“My sense is that prices have peaked,” consultant Russ Taylor told The Globe & Mail. “But very few producers are building new mills. They’re buying existing mills and modernizing.”

After 52 years, it was time for a change. That’s how Sam Moncada explains the rebranding of the association that represents Canada’s hardware and housewares vendors and agencies. Last month, the Canadian Hardware & Housewares Manufacturers Association (CHHMA) unveiled a new name, the Canadian Home Products Trade Association (CHPTA), or L’Association Canadienne du Commerce des Produits de Maison (ACCPM) in French.

The change wasn’t considered lightly. Moncada, the president of the association, says it did its homework and that focus groups revealed the distinction between housewares and hardware could be reflected in a more unified way, with the word “home.”

The group also wants to be more encompassing. “That’s why we eliminated the word ’manufacturers’ from the name,” Moncada says.

As the industry has evolved, so has the association. It no longer represents vendors solely. Membership includes manufacturers’ reps and service companies. “We wanted to make everyone feel included so we used ‘trade’ instead. Now we can be more inclusive of the entire sector.”

At the heart of the change is the goal of helping the organization’s membership grow by appealing to a larger audience beyond the vendor community. That will include retailers, dealers, builders, tradespeople, suppliers, and end consumers. Over time, says Moncada, the association could eventually embrace other industries and product markets.

Like just about everything else that’s been happening during COVID, anticipating what the job market would be like now has been a mystery. But as the industry nears the halfway point of the year, companies are finding the need to hire has stayed strong—to say the least.

In fact, given changes in how people work, companies are having difficulty finding staff.

“As an organization, we were expecting things to be a little quiet during the first half of the year, but that’s not really what’s happening,” says Matt Frost, senior recruitment consultant at Lock Search Group, a recruitment firm based in Toronto. Frost’s specialty is in the home improvement and building supplies space.

“There’s been lots of activity within the industry, whether that be companies amping up their online presence or tapping into heightened sales activity thanks to the rise in home renos.”

Wolf Gugler, president of Wolf Gugler Executive Search, is based in Oklahoma. Although the company is based in the U.S., Gugler built his career recruiting in Canada for hardware vendors and retailers alike. “Yeah, I’m busy. On both sides of the border,” he says. “I’m just closing a search for a lumber trader at a Canadian group, and a director of national accounts role for a vendor in the U.S.”
 
As business in the hardware and home improvement sector has remained buoyant, lockdowns are lifting and the sector is expected to stay active. But that’s leaving some companies playing catch-up. Frost says a lot of organizations identified previous blind spots within their companies during the pandemic, especially in areas like their omnichannel environment.

“We’re also seeing companies building growth plans to expand their field teams as our economy continues opening up a little more because they want to gain access to top talent on the market before their competitors do,” Frost notes.

Gugler says most of the positions he’s hiring for are new roles, after so many companies held back under COVID. “The demand in the market and the uptick in the business has increased the need,” he adds. “These companies may have the tactical strength already, but they needed support on the strategic side, areas like marketing and promotion.”
 
While this may sound dire for companies that want to hire, Frost points out that from a candidate perspective, there is plenty of good talent out there. Many were let go due to the pandemic and are now looking for their next opportunity.  “The second half of the year, which is really just around the corner, is going to be busy, so that’s a good thing.”
 
The last word can go to an HR director of a major hardware manufacturer, who spoke with us off the record. Companies will encounter a lot of people who couldn’t or wouldn’t work during the year of the pandemic, whether to look after kids or parents or to protect themselves because of age or pre-existing conditions. “Expect a lot of gaps on resumés,” they say.

The Home Depot Canada continues to ramp up its services for pros and contractors. The pilot of a same-day delivery service exclusive to pros is being tested in some Toronto-area stores is just the latest example.

The service can deliver orders of any size, including bulk items, within two hours. Delivery rates are based on the postal code. Four stores in the Greater Toronto Area currently offer the service, each with its own delivery team of two drivers. Each crew uses Sprinter vans, the same vans used in Home Depot’s rental service. Home Depot can also provide its flatbed service as required for larger orders.

The company has plans to expand the service to other Home Depot stores over time.

You won’t find the program online. Right now it’s an in-store service only, managed through each store’s pro desk staff. This allows Home Depot associates to enter pro customers’ orders on-site and then direct those orders to the delivery crews.
 
In the pilot phase, there is no minimum order. The store’s delivery team will pick, load, and deliver orders of any size. Orders deemed too small for the new service will be redirected to Home Depot’s existing express delivery channel.

The pilot program has been in place since February and the retailer is working to expand the volume within the four pilot stores. , Home Depot plans to tweak the service before expanding it, incorporating feedback from both the stores and the contractors themselves. The company says that it will then get the service online, which will enable the opportunity to leverage any store for product and delivery.

At TORBSA Ltd., Gary Sangha of Crown Building Supplies Ltd. in Surrey, B.C., has been elected as chairman of its board for the year 2021. In addition, the 2021 board of directors includes past chairman Steve Guglietti, Pro Con Building Supplies, Brampton, Ont.; vice-chairman Michael Burkart, Bernardi Building Supplies, Mississauga, Ont.; treasurer Len Hewson, Hewson Brothers Building Supply, Cambridge, Ont.; vice-chairman of operations Dante DiGiovanni, Blair Building Materials, Maple, Ont.; and secretary Greg Drouillard, Target Building Materials, Windsor, Ont.

DID YOU KNOW…?

… that nominations for the 2021 Outstanding Retailer Awards are due June 25? 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 or their chain or buying group head offices may select their best dealer(s) and prepare their entries in collaboration with the dealer. Click here for more information and application forms (en français aussi).

BMR Group will hold its buying show in a virtual format for a second consecutive year, the company has announced. The decision was based on the uncertainties surrounding the health measures that will be in effect in the fall and the limitations that still apply today in relation to business gatherings. The group says it has “decided to err on the side of caution.” In addition, BMR reports positive results from its fall 2020 virtual show, so it’s working to determine the format of this year’s event to optimize the experience for its member-dealers.

TIMBER MART has entered a partnership with Toronto-based international payments and foreign exchange firm Dunbridge Financial. Dunbridge will offer all TIMBER MART members access to foreign exchange, global payment and receipts, and currency risk management protection. The service is available to all TIMBER MART locations across Canada and includes secure money transfers for all foreign purchasing and revenue repatriation needs. The partnership is intended to enable foreign hardware and LBM suppliers to enter the Canadian market more easily.

Dollarama reported Q1 earnings of $113.6 million, compared with $86.1 million a year ago, while sales rose 13 percent. Earnings of $0.37 per diluted share were about in line with analyst expectations of $0.38 and above $0.28 in 2020. Comp sales, excluding temporarily closed stores, rose by 5.8 percent. The Montreal-based discount retailer’s sales momentum took a hit from retail restrictions put in place during the stay-at-home order in Ontario, which is home to 40 percent of its stores.

W.W. Grainger has announced the publication of its 2021 corporate social responsibility report, which is now online. It’s the 10th annual edition of the report, which outlines the company’s commitment to addressing key environmental, social, and governance (ESG) concerns.

Key to the report is the company’s materiality assessment, which was updated this year from the inaugural assessment in 2018. Customers, suppliers, investors, community partners, and team members contributed to this assessment, which highlights topics such as diversity, equity and inclusion; energy and emissions; and product quality.

CORRECTION: Our survey article on dealer recruitment efforts in Quebec in last week’s edition had some errors. One of the recent signings by Home Hardware was a hardware store in Laurier-Station. It is 7,000 square feet in size, not 1,000. Another, Quincaillerie Y. Gosselin et Fils Ltd. in Frelighsburg, is a former RONA dealer, not an independent. Finally, we reported that TORBSA does not have a member in Quebec. We had overlooked that buying group’s signing last summer of Matériaux de Construction Létourneau, based in Waterville, Que.

SUPPLIER NEWS

Canadian point-of-sale software provider Lightspeed POS announced the acquisition of two California-based businesses. The company is set to purchase e-commerce platform Ecwid Inc. for $500 million and NuORDER Inc., which automates wholesale orders, for $425 million. The acquisitions will expand Lightspeed’s reach in the retail sector and make it a potential rival to Canadian giant Shopify.

The announcement late last month of Natural Resources Canada’s Canada Greener Homes Grant generated enough buzz to crash its website, but concerns remain about the program’s parameters. Homeowners must make a considerable up-front investment before they see any reimbursements, including paying for two energy audits.

OVERHEARD…

“Since there’s a heightened amount of people looking for their next career opportunity, it’s becoming even more challenging for smaller HR teams to dedicate the required time to proactively chase down top talent.”
—Matt Frost, senior recruitment consultant at Lock Search Group, on the challenges of finding the right candidate without the help of an executive search firm.

The announcement last week of the addition by Home Hardware of three new Quebec stores is just one part of the ongoing changes in that province. Dealer development in Quebec is a strategic focus of many of the groups and banners. And no wonder: the province has remained a tough sell for many banners through the years, with barriers to entry that include language and culture.

La belle province was one of the fastest-growing markets under COVID. According to the 2021 Hardlines Retail Report, it has more than 1,100 hardware, building supply, and big box stores and represents more than one-fifth of overall retail home improvement sales in Canada. Those sales were up a healthy 17 percent in 2020, ahead of the overall growth of the country last year.

Home Hardware’s latest signup was with Bernard Hamel. Under his business, Roger Grenier Inc., he and his partners are bringing three RONA stores into the Home Hardware fold in Quebec. They consist of a 15,000-square-foot building centre in Victoriaville, a 5,000-square-foot building centre in Warwick, and a 1,000-square-foot hardware store in Laurier-Station.

Home Hardware has added seven stores in the province of Quebec this year and the company says it’s on track to have one of its most successful years for store conversions. Just days earlier, it announced the conversion of Quincaillerie Y. Gosselin et Fils Ltd., an independent in Frelighsburg, Que., to the Home Hardware banner. The combined grocery and hardware store includes 5,000 square feet of retail space. The owner is François Gosselin; his father Yvanhoe Gosselin founded the family business 75 years ago.

A week before that, Home Hardware announced L’Acadien Bricoleur Inc. had purchased Quincaillerie Maurice Hamel & Fils Inc., a BMR dealer in Sainte-Croix. The acquisition makes Jean-Claude Parr the dealer-owner of six Home Hardware stores in the province. Another deal, earlier this year, saw Home Hardware dealer-owners Hugues Nepveu and Isabelle Patry acquire Centre de Rénovation St-Augustin in Mirabel. It’s their fifth location.

Home Hardware’s biggest gain, and one that will drive up its market share significantly in the province, was the addition of Patrick Morin to its ranks. The deal was an indirect one, made in partnership with Groupe Turcotte, a network of seven Home Hardware stores in Quebec, and involves all 21 Patrick Morin stores and a distribution centre.  Formerly part of Independent Lumber Dealers Co-operative, the stores will continue to operate under the existing Patrick Morin banner and branding.

Home Hardware is hardly alone. Other groups continue to look for ways to grow their ranks—and their purchasing volumes—through new members in Quebec. While all of them have seen some wins and some losses as dealers move from banner to banner, Quebec appears to offer a net gain for the groups. Early in April, TIMBER MART signed Matériaux Appalaches in Lévis—making it the third Quebec dealer to join TIMBER MART this year. Earlier in the year, it added Méga Aluminium, a specialty building materials dealer in Gatineau, Que. These gains come after the group signed another five dealers in 2020.

Castle Building Centres is another group that has made some significant gains in Quebec. Earlier this month, Castle welcomed Grossiste MR Boucher of Saint-Antonin, a wholesale plumbing and HVAC supplier owned by brothers André and Marc Boucher. In April, Castle added Deschenes & Cie. in Price, a gateway community to the Gaspésie. In February, it signed Distribution D’Astous in Quebec’s Bas-Saint-Laurent region.

TORBSA has become more aggressive about dealer recruitment under its president, Paul Williams, who took over last year. One of his targets is Quebec, where the Ontario-based buying group currently has no members. At the beginning of 2021, TORBSA brought on Simon Gouin as VP, business development. The hire gives TORBSA an inroad to Quebec, as Gouin is himself a former dealer who had two stores in the province.

Fuelled by a strong home improvement market and the eagerness of the major banners to grow there, Quebec is likely to remain a hotbed of acquisitions and new alliances for the months and years to come.

As various groups vie for increased presence in Quebec (see story above), banners that are based in that province are working hard to keep their visibility strong.

BMR Group recently turned to the province’s favourite spokesperson, BMR brand ambassador Hugo Girard, to appear in a new web series, Built Like Hugo. The videos feature the retired strongman presenting outdoor project ideas that viewers can reproduce at home. Free plans and step-by-step instructions are designed to help viewers build anything from a ring toss game to an urban henhouse on a weekend.

RONA continues to make its biggest gains working with its existing dealers to grow their networks. And that formula is proving successful in Quebec as elsewhere. Karine Anctil, owner of the RONA store in Rivière-du-Loup, acquired a Home Hardware Building Centre in La Pocatière. Another success was with dealer-owner Carlos Munoz of RONA of Quincaillerie des Rivières in Waterville, who acquired a second independent affiliate location in the province’s Eastern Townships, Quincaillerie A. Pouliot, a former TIMBER MART member in Beauharnois.

One of the fastest-growing home improvement retailers in the country is a Quebec chain. Canac, a family-owned company with 31 stores, saw its sales climb by almost 30 percent last year. It opened its newest store at the beginning of March. The 40,000 square-foot store has a 10,000-square-foot outdoor garden centre and a 24,000 square-foot lumber yard. Canac has two more stores in the works, including one that will take it outside the Quebec market for the first time.

Changes continue at BMR Group as it settles in under its new CEO, Alexandre Lefebvre. He came over from Lefebvre & Benoît, of which BMR is a major shareholder, and replaced Pascal Houle in the top job. Houle, who had led BMR since 2015, moved back to the parent company, Sollio Cooperative Group, as COO.

Since then, a series of hires and shuffles have occurred at BMR. The latest round of appointments was to its merchandising and vendor relations department, reflecting BMR’s commitment to building out both these departments as it grows its overall business.

The company said in a release that the appointments “optimize our organizational structure in order to be more efficient in supporting our dealers and suppliers in their day-to-day operations and to provide them with more effective and customized support.”

These most recent promotions are Paul Philippe Boucher, director, forestry products; Nancy Metsos, co-ordinator, sales office; Isabelle Perron, manager, analysis and merchandising; Audrey Lemay-Poirier, director, Agrizone; and Jérémie Brunelle, director, innovation.

“These appointments were awarded to BMR Group employees who have distinguished themselves through their know-how and their extensive knowledge of the market,” department VP, Bruno Baldessari, said. “We are pleased to entrust these exceptional colleagues, who have clearly demonstrated their expertise and strategic insight, with greater responsibilities.”

Barely a week earlier, BMR announced the appointment of François Grenier as VP of human resources. He was previously BMR’s senior director of labour relations and occupational health and safety.

Besides these latest changes, BMR has undergone some other shifts in personnel through the winter and spring. Martin Menard, a 13-year veteran of the company on the buying side, left in March, only to join Lowe’s Canada a month later as director for floor covering.

Soon after, Pierre Nolet, who had headed up BMR’s dealer development team, departed and likewise ended up at Lowe’s Canada, in a similar role as director of business development. Stephany Robinson, who had been part of Nolet’s team at BMR, also found her way to Lowe’s Canada, where she now serves as a national accounts manager.

Rob Wallace has been promoted to VP, store operations and eCommerce at Home Hardware Stores Ltd., effective June 28. Wallace brings 30 years of home improvement experience to the position, including roles in retail applications, merchandise services, public relations, and most recently as VP, marketing. This expanded new role follows the move by Darrin Noble to step back from the business. Home Hardware’s manufacturing operations at Beauti-Tone Paint and Home Products will transition to the company’s logistics team under an expanded role for VP John Dyksterhuis. Noble will assist in a support role through this transition as Home recruits a director, manufacturing to support these businesses. Wallace will continue to oversee marketing while the company recruits for the vacancy.

At Burlington Merchandising and Fixtures, Jason Disher has joined its team as national account manager. Disher started his career as a store manager at a Home Depot and has spent the last 18 years on the vendor side, mainly with Allegion. He will be responsible for managing BMF’s display and retail accounts, supporting vendors with merchandising programs, display needs, and big box resets.

The board of directors at Lowe’s Cos. has named Marvin Ellison chairman of the board, in addition to his current roles as president and CEO. Ellison takes over from Richard Dreiling, who has shifted from the chairman role to act as lead independent director.

DID YOU KNOW…?

… that Hardlines not only reports on the news of today but keeps its eye on what’s happening in the future? What lies ahead for the industry after COVID-19 is the topic of our latest podcast. Our editor, Christina Manocchio, in conversation with Hardlines’ Michael McLarney, discusses what to expect through the remainder of 2021 and beyond as supply chain disruptions continue and prices and demand remain high. Click here to listen now and join our mailing list so you don’t miss out on future podcasts!

Lowe’s Canada donated more than $1.2 million to Children’s Miracle Network and Opération Enfant Soleil to support the work of 14 children’s hospitals across the country. Teams from Lowe’s, RONA, and Réno-Dépôt corporate, as well as participating affiliated stores, collected donations and sold tickets. Lowe’s Canada added to the amount raised with a corporate donation. Since 2018, Lowe’s Canada has presented more than $3.3 million to the two organizations through its annual fundraising campaigns and corporate donations.

IN MEMORIAM: Bob Vereen

Former Hardware Retailing editor Bob Vereen has died at the age of 96. Born in Minnesota in 1924, he served as a sergeant in the U.S. Army Signal Corps during the Second World War. He joined the National Retail Hardware Association, now the NHPA, in 1963. After a period as an editor and publication manager, he was promoted to associate publisher in 1983. The following year, he was appointed senior VP and head of the Home Center Institute. After his retirement in 1987, Vereen helped to found the Worldwide DIY Council and the Bird-Dog Awards, which continue today as the Retailers’ Choice Awards.

SUPPLIER NEWS

Richelieu Hardware has announced the acquisition of Uscan Industrial Fasteners Ltd., effective June 1. Uscan is an importer and distributor of screws, bolts, and industrial fasteners. It was founded in 1970 in Montreal, where it operates a distribution centre serving the retail market, mainly in Eastern Canada. In a release, Richelieu said the acquisition will strengthen its presence in the retail home improvement market.

CanWel Building Materials Group Ltd. has changed its name to Doman Building Materials Group Ltd. CEO and chairman Amar Doman says the new name reflects the growth of the company, whose operations now extend beyond Canada into the U.S., including Hawaii. Its previous TSE ticker CWX will be replaced with the label DBM. The name of CanWel Building Materials Division, which wholesales LBM to Canadian dealers, remains unchanged, however.

ECONOMIC INDICATORS

The total value of building permits reached $11.1 billion in April, thanks to a surge in commercial permits. Even though April’s number is down 0.5 percent from March, it still represents a historically high level. In the residential sector, permits fell 6.7 percent to $7.7 billion. Single-family permits were down seven percent to $3.6 billion, mainly as a result of fewer new projects in Ontario and Quebec. Multi-family dwellings dropped 6.5 percent to $4.1 billion, with declines most notable in British Columbia and Quebec. Commercial permits were up 28.7 percent to $1.9 billion. (StatCan)

April’s construction spending in the U.S. edged up by 0.2 percent. The seasonally adjusted annual rate for the month was $1.52 trillion, up 9.8 percent from April 2020. Homebuilding rose by one percent and now stands 29.7 percent above last April. (U.S. Census Bureau)

NOTED

The federal government has unveiled a program that will offer homeowners grants of up $5,600 to make energy-saving adjustments to their properties. Eligible properties must be primary residences and must undergo evaluations before and after the retrofit by a Natural Resources Canada-certified energy advisor, who will determine which upgrades can be covered.

OVERHEARD…

“After a great deal of consideration, I have made the difficult decision to step away from Home Hardware. Home has been nothing short of wonderful in accommodating my decision and I can’t thank them enough for the many years of meaningful relationships, memorable experiences and commercial successes that we have enjoyed together. I am proud to have contributed to the growth of this great retailer and to have worked with teams that developed two of Home’s highest performing business segments….”
—Darrin Noble, vice president, store operations and Burford Paint and Home Products, on his departure from Home Hardware, in a note he posted on Linkedin. Noble thanked his team at Home Hardware and colleagues in the paint industry. His resignation is effective June 25.

Home Depot Canada is rolling out an enhanced pro express delivery service in some Toronto-area stores.

The service can deliver orders of any size, including bulk, within two hours. Contractors have access to all SKUs in the stores, with the convenience of on-site delivery, including to buildings under construction. Delivery rates are based on the delivery postal code. The company has plans to expand the service to other Home Depot stores.

Home Depot Canada has been adding to its lineup of services to streamline its interaction with contractors. That includes continued expansion and rollout of its tool rental departments. In recent years the company has added larger tools and equipment. Today, a customer can rent anything from a backhoe, mini-excavator, or trencher to a mini-van.

In the U.S., The Home Depot is going a step further, establishing large equipment rental hubs, called Rental Operations Facilities (ROFs), which will augment its existing network of 1,200 in-store rental locations. The company will open more rental centres across North America in the coming year. In addition to large equipment, these will also provide customers with general tools, trucks, and trailers.

Home Depot Canada is ramping up to take advantage of another service connection to the pro customer. The recent acquisition of HD Supply by parent Home Depot in Atlanta will add to the Canadian business’s offerings. Although no specific details have been confirmed for what that will look like in Canada, the company expects the acquisition to position Home Depot Canada as “a premier provider in the MRO marketplace,” according to the company.

What a year it’s been. And what a year the industry is experiencing right now. But how long will the spending continue, the prices keep rising, the projects keep coming?

What lies ahead is the topic of the latest podcast from Hardlines. Our editor, Christina Manocchio, in conversation with Hardlines’ own Michael McLarney, discusses what to expect through the remainder of 2021 and beyond.

The big shift for retail has been the surge in online sales through the year of COVID-19, with strong sales continuing into 2021. McLarney says dealers of all sizes will have to manage processes and assortments to keep up with customer expectations.

Supply chain disruptions will continue, as prices stay high for raw materials, demand continues to surge for products, and availability is compromised by international shipping challenges.

What can dealers do through the rest of the year to stay prosperous? The importance of marrying the traditional business with their online presence will have to be seamless. “They’re definitely going to see the tie-in of their stores, their brick-and-mortar locations with the online business. Those two have to work hand in hand. They have to be strong on both fronts.”

McLarney says there has to be “a partnership between the two sides” of the business.  What are you going to do to make your store a unique destination for those customers? They have to become “service centres” to provide a showroom with compelling product assortments, knowledge, and services.

The latest podcast from Hardlines is part of our ongoing series, What’s in Store, which interviews leaders in this industry to provide insights and analysis of the many aspects and topics that drive home improvement retailing today.

(Click here to listen to our podcasts and join our mailing list so you don’t miss out on future podcasts!)

The U.S. Commerce Department issued a decision recently raising countervailing and anti-dumping duties for most Canadian softwood lumber to 18.32 percent. The current rate is 8.99 percent.

However, the rate is not consistent across the industry. Canfor Corp. and Resolute Forest Products Ltd. will be charged even higher tariffs. The rates, which are subject to further review before going into effect six months from now, were set based on data from 2019. Lumber prices have risen steeply since then.

The nine percent tariff is a recent development. Tariffs had been almost 20 percent until they were lowered in December 2020. The only groups that appear to applaud the increase are the U.S. lumber producers—and their lobbyists in Washington. They hope to make domestic U.S. production more feasible and profitable without the steady influx of Canadian timber pouring across the border.

The move has been met by opposition on both sides of the border. The B.C. Lumber Trade Council deplored the ruling. Council president Susan Yurkovich said in a statement that it “will ultimately further hurt American consumers by adding to their costs.”

In the U.S., the perennial softwood issue divides homebuilders, who are pressing the Biden administration for a negotiated settlement, and lumber lobbyists who hope the tariffs will encourage domestic manufacturing.

The National Association of Home Builders found the hike yet another way to make houses more costly—and less affordable—for average Americans. In an announcement on its website, the NAHB’s chairman, Chuck Fowke, stated:  “At a time when soaring lumber prices have added nearly $36,000 to the price of a new home and priced millions of middle-class households out of the housing market, the Biden administration’s preliminary finding … to double the tariffs on Canadian lumber shipments into the U.S. shows the White House does not care about the plight of American home buyers and renters who have been forced to pay much higher costs for housing.”

TOOLBX, a building materials purchasing platform for contractors, has expanded into the Ottawa market. The company got its start serving the Greater Toronto Area. TOOLBX provides same-day delivery directly to the job site.

“TOOLBX is an essential tech platform purposely designed for builders. It streamlines project purchasing while also getting them materials fast so they can stop wasting time on supply runs and focus on building,” said TOOLBX Ottawa city manager Harrison da Costa.

TOOLBX is not alone, nor is it the first to offer product fulfilment and delivery to contractors. Other services have been emerging in recent years, including RenoRun, based in Toronto. Igor Halencak, formerly EVP of merchandising and marketing at Lowe’s Canada, joined RenoRun earlier this year as VP of merchandising.

Another is GoFor Industries. Identifying itself as a tech company that offers logistics services, GoFor has its roots in the construction vertical . Since this time last year, the company has expanded into every major market in Canada and many smaller markets. In addition, it has launched in a number of U.S. markets.

TOOLBX was founded in Toronto in 2018 by Erik Bornstein, who spent 15 years as a homebuilder. The platform lets contractors and builders connect, either by mobile or computer, to place orders remotely. It recently launched TOOLBX Pro, a subscription offering that gives users the benefit of bulk buying and unlimited same-day delivery.

The service also works with dealers to get their brick-and-mortar inventory online and offer same-day delivery. In the Toronto area, the company has been working with retailers such as RONA, Lowe’s, and New Canadians Lumber (a Home Hardware dealer). It also works with specialty dealers like Centura Tile and Brenlo, a supplier of wood mouldings and doors.

With the move to the Ottawa market, it has added dealers such as Stittsville Home Hardware, as well as the local big box retailers. (Dealers interested in becoming a supplier to TOOBX can click here for more details.)

DID YOU KNOW…?

… the latest podcast from the Hardlines series What’s in Store, features Doug Anderson, president and CEO of Peavey Industries? In this episode, Anderson shares the incredible story of how Peavey, a key regional player based in Red Deer, Alta., has managed in just a few years to grow into a national entity serving stores across the country. Click here now to listen!

Ace Canada and Sexton Group announced that Superior Home Renos of Foam Lake, Sask., is rebranding as Foam Lake Ace Building Centre and taking advantage of the alliance between Ace and Sexton. Owners Dwayne and Trudy Grona have been in business for 15 years, transforming the space from a dollar store with a connected LBM business to a full-service dealer.

L’Acadien Bricoleur Inc. has purchased Quincaillerie Maurice Hamel & Fils Inc. in Sainte-Croix, Que. The acquisition makes Jean-Claude Parr the dealer-owner of six Home Hardware stores in the province. The Sainte-Croix Home Hardware Building Centre offers 12,000 square feet of retail space, in addition to a warehouse and a lumberyard.

Castle Building Centres Group Ltd. has welcomed Grossiste MR Boucher of Saint-Antonin as its newest Quebec member. Brothers André and Marc Boucher started their business more than 30 years ago, supplying wholesale plumbing, heating, and air conditioning products to local contractors and consumers. Over the years, the business has expanded to include more home renovation products and a designer showroom.

Home Depot plans a wider rollout of its online tool rental pilot. The service will be offered chain-wide, wide enabling customers to rent online, pick up in store capabilities at all 1,300 plus tool rental locations in the U.S. and Canada. This service is expected to enhance the experience for Home Depot’s pro and DIY customers while complementing the additional investments the retailer is making to expand its rental footprint and increase assortment and delivery capabilities.

SUPPLIER NEWS

The Western Retail Lumber Association is relocating its office. Its new address is 300-95 Cole Avenue, Winnipeg, Man., R2L 1J3.

Simcoe Decks, based in Barrie, Ont., and Michigan’s CAMO teamed up to create two winning decks in the North American Deck and Railing Association (NADRA) National Deck Competition. NADRA hosted its 11th Annual Awards Celebration last month in Clearwater, Fla.

ECONOMIC INDICATORS

Retail sales rose by 3.6 percent to $57.6 billion in March, led by higher sales at building material and garden equipment and supplies dealers (up 19.8 percent) and clothing and clothing accessories stores. Sales increased in 10 of 11 subsectors, representing 79.1 percent of retail trade. Only sales at food and beverage stores saw a decline for the month. (StatCan)

Sales in the U.S. of new single-family houses slipped in April to a seasonally adjusted annual rate of 863,000, down 5.9 percent from the previous month. However, the rate is up 48.3 percent from April 2020. (U.S. Census Bureau)

Sales of existing U.S. homes logged their third straight monthly decline in April. Sale closings fell by 2.7 percent to an annualized pace of 5.85 million, the slowest since last June. (National Association of Realtors)

OVERHEARD…

“Although we are a large plumbing wholesaler, we wanted the option to offer our existing customers and the consumer more products and a variety of brands. Castle’s vendor network and product assortment will ensure that we continue to grow in many new categories.”
—André Boucher, co-owner of Grossiste MR Boucher, a plumbing wholesaler in Quebec and the latest dealer to join Castle Building Centres.

In the latest podcast from the Hardlines series What’s in Store, Doug Anderson, president and CEO of Peavey Industries, shares the incredible story of how this key regional player based in Red Deer, Alta., managed in a matter of a few years to create a national entity serving stores across the country.

The first step, Anderson says, was the takeover of TSC Stores in 2016. A strong Ontario-based farm and ranch retailer that also had two stores in Manitoba, it represented a similar business to his, but in markets where the Peavey Mart banner did not exist. “It was such a natural fit for us that we felt like it was the right move to make,” Anderson says.

He talks about the bold move to rebrand all the TSC locations, which meant introducing the Peavey Mart banner to Ontario shoppers. That process was completed by the end of March.

But if that wasn’t enough to keep him and the Peavey team busy, he then set his sights on the Ace banner. “Long term, we felt Ace was not a good fit for Lowe’s so I approached them early in 2019 to look at how it could work.”

The deal closed one week before the pandemic shut everything down in March 2020.

Anderson saw it as a good fit for the communities that would not necessarily be best served by a Peavey Mart store. The company had already introduced a small-town hardware store concept called MainStreet Hardware. There are now three such stores, all in Alberta.

Ace, he says, fills a similar market need that the MainStreet stores aim at. “It was very complementary to our farm and ranch operations and really allowed us, not only to provide that density we were looking for with that MainStreet concept, but also allowed us access to new markets such as Quebec, and a lot more penetration into British Columbia, for example.”

The shift to dealer-owned stores from a network of corporately held outlets required a shift within Peavey. Anderson admits that “we really had to reinvent ourselves” concerning distribution and systems.

Anderson shares these details, and much more, including how Peavey turned to Sexton Group for its LBM needs, and succession opportunities with the Ace brand, in the newest podcast from Hardlines.

(Click here to sign up for the Hardlines podcast series!)

Home Depot and Lowe’s enjoy strong results in Q1, with Canada ahead

North American home improvement sales stayed strong through the first part of 2021, as shown by the latest results from the industry’s two top players.

Last week, The Home Depot reported first-quarter revenues of $37.5 billion, 32.7 percent higher than the same period of 2020. Just a day later, Home Depot’s biggest rival, Lowe’s, reported similar results.

Profits at Home Depot nearly doubled, amounting to $4.1 billion. A year ago the company posted earnings of $2.2 billion. Like other home improvement retailers, Home Depot has benefited from an ongoing boom in home projects as people continue to work and study from home.

Home Depot’s Q1 same-store sales rose by 31 percent. Those increased comps were realized in all of Home Depot’s top 40 markets, while Canada posted comps above the company average.

For Lowe’s, first-quarter net earnings reached $2.32 billion, up from $1.34 billion a year earlier. Sales rose 24.1 percent to $24.42 billion. All Lowe’s U.S. divisions saw comp sales go up by more than 18 percent. Like at Home Depot, comp growth in Canada outpaced the U.S.

“We are very pleased with our new leadership team’s progress driving improvement in Canada through a challenging operating environment, as [Lowe’s CEO] Marvin Ellison mentioned on our Q1 2021 call,” said Lowe’s in a statement. Ellison went on to acknowledge the frontline workers at Lowe’s Canada as well, “for their resilience and commitment to serve our customers in this challenging operating environment.”

During the quarter, Lowe’s also saw big gains company-wide in the much sought-after pro business. Comp sales to that segment were up 30 percent.

On the same analysts’ call, David Denton, executive vice president and CFO of Lowe’s, anticipated continued challenges in the Canadian market and a possible slowdown overall in sales.

“Looking forward, year-over-year comparisons remain difficult throughout the remainder of the year. Also, we continue to see COVID restrictions in some areas across Canada. As markets reopen, we are closely monitoring consumer behaviour, anticipating a potential modest shift in spending away from the home.”

The burgeoning cost of lumber has made it so coveted that homebuilders and dealers alike are having to take special measures to protect it.

Garth Babcock, a construction manager with Edmonton-based Akash Homes, told CBC News his firm has lost about $100,000 to theft. The perpetrators use the sites’ own equipment to load wood onto their trailers.

“They’re hot-wiring zoom booms on sites, taking product from maybe two or three builders in the same neighbourhood,” said Babcock. Akash Homes responded with tighter security precautions, installing security cameras, and spray painting materials with distinctive markings in case they turn up at other sites or for sale online.

Dealers across the country have faced surprise and outrage from customers when confronted with the rising prices. One result, in the case of JL’s Home Hardware Building Centre in Guelph, Ont., was the theft of $10,000 worth of lumber. Store owner Andre Belisle told GuelphToday that a man in a stolen flatbed truck broke through the gate of the store’s yard and helped himself to the lumber.

These kinds of hits to a small business are tough to take but reflect a sign of the times as home improvements and renovations remain the preferred way for people to spend their money during the pandemic.

The first quarter continued to turn strong results for Canadian Tire, despite the restrictions of continued lockdowns. Much of that growth came from online sales, making CTC look hard at how it can compete against the likes of online giants like Amazon.

In a call to analysts, Canadian Tire president and CEO Greg Hicks admitted the period “had its share of unique challenges, including significant restrictions across our store network.” He noted that only 40 percent of the Canadian Tire Retail stores were open at the start of the year. “Even though full operations were restored across the business in March, many strict restrictions continue.”

With the shift to online shopping, Canadian Tire saw strong increases in core hardlines and home products categories, including its Canvas brand of backyard living products, plus kitchen and tool categories. In fact, across its CTR stores, more than 70 percent of categories saw growth, with over 60 percent of those showing double-digit sales growth.

With an early start to spring in many parts of Canada, Canadian Tire saw its customers shift to purchases of outdoor sports equipment, outdoor living products, and bikes. That shift drove sales of items such as patio sets and products from Canadian Tire’s gardening categories, which drove an increase of more than $100 million across the retailer’s seasonal, living, and playing divisions.

E-commerce sales were up by almost 300 percent in the quarter. That kind of activity has the company looking at ways to take on the likes of Amazon Prime and Walmart, including a premium membership program. For a flat fee, subscribers will earn bonus loyalty rewards for purchases made in-store and get free delivery for online orders. They’ll also be able to stream TV series and movies through Bell Media’s Crave platform.

“I think there was some question about our ability to compete in a digital world pre-pandemic, and I don’t think anybody should doubt our ability now,” Hicks said.

At BMR Group, François Grenier has been promoted to vice president, human resources. He brings 22 years of experience in human resources management to the role, the last five of which were at BMR as senior director of labour relations and OHS. Grenier will be responsible for the overall management of human resources at BMR.

Pierre Nolet is now at Lowe’s Canada as director of business development for its RONA banner. He was formerly at BMR Group, where he spent the past five years, most recently as vice president of business development. Also, Stephany Robinson, who was on Nolet’s team at BMR in dealer business development, integration, and strategy, has joined Lowe’s as the national accounts manager for Canada.

Martin Menard has joined Lowe’s Canada as senior director for floor covering. He comes over from BMR Group, where he had spent more than 13 years, most recently as senior manager of imports and business optimization.

At Ledvance LLC, the maker of Sylvania lighting products, Charlie Harte has been appointed VP of marketing and customer experience. Harte will add the job to his existing position as Canada president and CEO for Ledvance, which he took over in February 2020.

DID YOU KNOW…?

… that the latest issue of our newest publication, Hardlines HR Advisor, goes out on Wednesday? It’s filled with tips and examples of how companies in home improvement are dealing with employee well-being during these challenging times. The latest issue features details of Lowe’s Canada’s ongoing support for frontline workers, and guidance from the director of HR at the Hillman Group Canada. Plus tips to make working at home more healthy and productive. Click here now for Hardlines HR Advisor!

BMR Group has partnered with brand ambassador Hugo Girard, media producer B-612, and marketing firm lg2 to create a new web series, Built Like Hugo. The videos feature the retired strongman presenting outdoor project ideas that viewers can reproduce at home. Free plans and step-by-step instructions will help viewers build anything from a ring toss game to an urban henhouse built in a weekend.

The Home Depot Canada has been named the Energy Star Canada National Retailer of the Year for the eighth consecutive year. The company works closely with vendors and partners to offer more than 9,000 products backed by the Energy Star certification, to make energy-efficient products more affordable and accessible to its customers. This is Home Depot Canada’s thirteenth Energy Star Canada award.

In Q1, Canadian Tire committed an additional $12 million to its Jumpstart Sport Relief Fund. The retailer has so far contributed $3.25 million to more than 300 community sport organizations.

Dealer-owner Carlos Munoz has acquired Quincaillerie A. Pouliot, a store in Beauharnois, Que., and is converting it to the RONA banner. With a total surface area of 20,000 square feet, the store includes an 11,500 square-foot sales area and a 6,000 square-foot indoor lumber yard. The business was founded in 1966 by the family of André Pouliot and bought in 1974 by Jean-Guy Brazeau. His son Daniel Brazeau took over in 1990 and he will stay on to ensure a smooth transition.

With the pandemic now in its second year, some consumers’ patience is wearing thin and front-line workers say many are taking it out on the employees, reported La Presse. Workers at two Lowe’s Canada corporate stores in Montreal voted recently for a five-day strike mandate, demanding measures such as signing to outline a zero-tolerance policy toward aggressive behaviour. Responding on behalf of Lowe’s Canada, a spokesperson said the company does not tolerate aggressive behaviour at any of its stores but added that “we continue to negotiate in good faith with the union.”

SUPPLIER NEWS

Jeld-Wen of Canada was named the Energy Star Manufacturer of the Year in the category of Windows and Doors for 2021. The Energy Star Canada Awards recognize organizations that have made outstanding contributions to protecting the environment through superior energy achievements. Jeld-Wen of Canada has won this award five times over the last seven years, bringing their total award count to eight. The company has been a participant in Energy Star Canada since 2003.

ECONOMIC INDICATORS

Sales of existing homes fell by 12.5 percent in April after reaching their highest level ever recorded in March. Month-over-month declines in sales activity were observed in close to 85 percent of all local markets, including virtually all of British Columbia and Ontario. In contrast, actual (not seasonally adjusted) sales activity posted a 256 percent year-over-year gain in April, reflecting the chasm between the best April ever in 2021 and the worst ever last year. (Canadian Real Estate Association)

The seasonally adjusted annual rate of housing starts was 268,631 units in April. That reflects a decrease of 19.8 percent from 334,759 units in March. The SAAR of urban starts decreased by 16.9 percent to 251,504 units. Multiple urban starts decreased by 22.8 percent to 251,504 units while single-detached urban starts decreased a slight 0.1 percent to 78,918 units. (CMHC)

NOTED

The latest issue of our sister publication, Hardlines Dealer News, went out last week. You’ll learn how dealers are coping with rising lumber costs and how to make outdoor living displays that really shine. Hardlines Dealer News is monthly—and it’s free. Sign up here to subscribe!

OVERHEARD…

“We’ve been proud to partner with ENERGY STAR for more than 20 years because part of our core values is a commitment to ‘Doing The Right Thing’ and being a responsible retailer.”
—Pamela O’Rourke, vice president, merchandising, The Home Depot Canada, on the company being named the Energy Star Canada National Retailer of the Year for the eighth consecutive year.