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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SUPPLIER NEWS

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

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

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

ECONOMIC INDICATORS

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

NOTED

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

OVERHEARD…

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Lowe’s Canada and other retailers promote jobs this spring

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SUPPLIER NEWS

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

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

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

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

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

ECONOMIC INDICATORS

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

NOTED

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

OVERHEARD…

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SUPPLIER NEWS

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

ECONOMIC INDICATORS

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

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

OVERHEARD…

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

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

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

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

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

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

Canac expands its distribution facilities, continues to add new stores

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DID YOU KNOW…?

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

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

SUPPLIER NEWS

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

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

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

ECONOMIC INDICATORS

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

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

NOTED

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

OVERHEARD…

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

Last week, Sexton Group has announced that it had signed its first international member. While that member is on French soil, it’s located just 19 kilometres off the coast of Newfoundland and Labrador. Habitat Confort SPM has been serving the residents of Saint-Pierre and Miquelon, a self-governing French overseas “territorial collectivity”, since 2003.

Most buying groups that can claim an international presence are on the same cluster of islands. BMR Group is represented by Ets Max Girardin, while Home Hardware has one location, Centre de Rénovation Marcel Dagort S.A.R.L. RONA has also had a dealer there for many years, RONA Derrible. These stores are all located in the community of Saint-Pierre, which represents the bulk of the territory’s 6,000-strong population.

One outlier is an Ace store, Quincaillerie François Detcheverry & Fils (shown here). It’s located on the larger but more sparsely populated island of Grand Miquelon.

Despite its geographic proximity, Saint-Pierre and Miquelon poses real international challenges. It shares a culture—and infrastructure—with France. Even telephoning there requires an international call.

Electricity is all based on European standards, using 220 amp service, complete with different plugs, instead of the North American standard of 120 amps. That means Canadian suppliers can’t ship any electrical products, including everything from small appliances to power tools. For dealers in Saint-Pierre, those products still come from France. This restricts the sales potential to these stores for any group or distributor. Prices tend to be much higher, while staffing costs are higher as well. Dealers operate providing higher wages along with big markups on their products.

Other groups that cross borders include Windsor Plywood, which has had five locations in the U.S. for many years. And there are plans for more, but those plans have been stalled.

Under the pandemic, Windsor Plywood has fared well, along with the industry in general, says president Curt Crego, adding that “results have been well above expectations.” However, those same conditions have hampered U.S. growth.

“We currently have four locations in Washington and one in Montana, two of which are franchised,” Crego says. “Had the pandemic not intervened I expect we would have opened additional locations by now. Unfortunately COVID, and in particular the cross-border travel restrictions, have and continue to pose an obstacle to our growth in the U.S.”

Orgill reorganizes its buying departments, now with two divisions

Orgill has announced the restructuring of its purchasing department. It’s been divided into separate merchandising and replenishment divisions.

The merchandising division, with a mandate to drive revenue, will focus on vendor relationships, promotions, pricing, sales, and reviews. The replenishment division will be responsible for managing inventory, service levels, inventory turnover, and supply chain.

“This division of merchandising and replenishment within the purchasing department is a change that we have seen coming for some time now,” Jeff Curler, the department’s EVP, said in a release. “This change helps us better address the distinctly different, yet connected, functions our purchasing department deals with on a daily basis.”

At Orgill’s head office in Memphis, the purchasing leadership lines up as follows:

1. Jeff Curler was promoted to executive vice president of purchasing
2. Jim Wilson will continue as vice president of Exclusively Orgill (formerly known as Worldwide Sourcing).
3. Lisa Pirtle was promoted to vice president of replenishment and vendor support.
4. Alan Shore was promoted to director of merchandising, seasonal.
5. Heath Kennedy was promoted to director of merchandising, hardlines.
6. Karen Meredith will continue as director of LBM Sales.

The purchasing team has been responsible for purchasing products for Orgill’s Canadian customers for several years, so these changes will directly benefit Canadian customers as well, the company told Hardlines.

According to company president and CEO Boyden Moore, this realignment will position Orgill’s teams to better serve its customers while improving efficiency and vendor relations. “We know how critical it is that we evolve as a company and constantly look for ways to respond to market changes and create efficiencies within our own operation,” he said.

“These changes will position Orgill and its customers for even greater success in the coming years.”

Housing market heat continues into 2022, with scarcity expected until spring

Canada’s stock of available housing is getting squeezed going into 2022, slowing home building and driving up prices. The Canadian Real Estate Association (CREA) said last week that the House Price Index rose 26.6 percent in the twelve months leading into December 2021.

That month, the average price of a resale home hit $713,500. Sales edged down 0.2 percent from November but buyers’ enthusiasm remains undimmed.

“With the housing supply issues facing the country having only gotten worse to start 2022, take any decline in sales early in the year with a grain of salt because the demand hasn’t gone away,” CREA chair Cliff Stevenson said in a release. “There just won’t be much to buy until a little later this spring.”

At the same time, the number of listings hit their record low, so “the housing affordability problem facing the country is likely to get worse before it gets better,” said Shaun Cathcart, CREA’s senior economist.

Demand is expected to cool off later this year, as the Bank of Canada is poised to raise interest rates. “When the central bank turns its eye to inflation again, I do think that will trigger a flattening in the market,” Royal LePage CEO Phil Soper told Financial Post.

Last week, the Canada Mortgage and Housing Corp. reported that the annual pace of housing starts took a 22 percent plunge between November and December.

There’s good news looking further out, however. New StatCan data shows that $11.2 billion worth of building permits were issued in November, with a 12 percent increase in the residential sector—a good indicator of what lies ahead in the coming months. Permits for single-family houses rallied by 20.2 percent after an 8.5 percent decline in October.

Activity remains hot south of the border too. The U.S. Commerce Department noted last week that housing starts rose by 1.4 percent in December to an annual pace of 1.7 million units. Building permits for the month surged by 9.1 percent to a rate of 1.87 million units.

The pandemic has been kind to Ikea Canada, a fact that’s reflected in its sales, both in-store and online.  The latter increased by 161.5 percent to $969.5 million, while sales overall climbed to $2.6 billion for the company’s financial year ending August 31, 2021, an increase of 11.8 percent.

While store visits dropped by 7.4 percent, online traffic saw a 32 percent increase from last year. Those online sales translated into 1.8 million orders delivered, up 63 percent from the previous year. Online sales picked up in-store were up a whopping 550 percent over pre-COVID numbers.

The company made a number of advances during the year. One was the introduction of its Design Studio concept. New to Canadian stores, it allows customers to design and order a new kitchen, bath, or bedroom by scheduling one-on-one planning sessions with an Ikea design expert (shown here). It also introduced a small-format showroom outlet in the heart of downtown Toronto.

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

Of those products, the pandemic has affected what sells at Ikea. This past year saw a trend toward making things more comfortable and flexible, as people continued to spend more hours in their homes. A list of some of the most popular Ikea products in 2021 shows how its shoppers stressed creature comforts over the practical and utilitarian:

• Pillows – sales increased 16 percent
• Candles – Canadians bought more than four million candles last year, a 123 percent increase
• Runnen patio tiles – a 135 percent increase in sales
• Applaro outdoor tables – sales doubled from last year
• Plants – especially Ficus, were up more than 233 percent
• Artificial plants like hanging eucalyptus saw sales increase sixfold

Other in-store favourites continued to be popular. Ikea sold 20 million meatballs and 1.8 million hot dogs last year.

At Sexton Group, Frank Bayuk, the group’s business development manager for British Columbia, has retired after 15 years with the group. Succeeding him is Dean Toews, who joined Sexton’s business development team last August.

DID YOU KNOW…?

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

Home Hardware Stores Ltd. has joined Fortinet’s Secure Software-Defined Wide Area Network. The retailer’s dealer-owners have been using a variety of platforms across some 1,100 locations, making network and security management a challenge as their business grows. The Secure SD-WAN will simplify and secure Home’s networks by replacing those products with one centrally managed digital system.

Giant Tiger Stores Ltd. has forged a partnership with TV interior designer Debbie Travis to promote a new home décor collection. The Debbie Travis Collection will be available in stores and online beginning Wednesday. It will include decorative pillows and throws, quilts and bedding sets, bath linens, shower curtains, and window curtains.

Canac has completed construction on a second building at its Drummondville, Que., distribution centre. The 432,000 square-foot structure will be geared toward seasonal products and building materials. It sits on a million-square-foot lot Canac purchased in 2019, situated in an industrial park opposite Canac’s current DC.

Canadian Tire Corp. has been listed as one of Corporate Knights’ Global 100 Most Sustainable Corporations, for the third time. CTC ranked as the top general merchandiser in the country and placed first among its peers headquartered in Canada. The honour reflects the company’s activity in environmental, social, and governance practices.

Lee Valley Tools shuttered its last Toronto store, located in Scarborough, on Christmas Eve, due to increased lease costs that “made keeping the store open unsustainable,” according to an explanation on the retailer’s website. Lee Valley continues to offer same-day delivery in the Greater Toronto Area from its Vaughan and Burlington locations.

Sleep Country Canada has launched its Sleep Country store on Loblaw Marketplace, the grocery retailer’s digital offering, which sells products not available in its stores. Launched online in 2019, Loblaw Marketplace carries a wide variety of products including home, baby, pet, and toy. Sleep Country will be the exclusive provider of traditional mattresses on Loblaw Marketplace.

SUPPLIER NEWS

Hardware stores were considered essential businesses under Quebec’s first round of lockdowns. With the vaccine pass expanded to large-surface retailers last week, however, the industry hasn’t made the cut. Quebec trade group AQMAT says that needs to change, and that it has the support of all three opposition parties in Quebec’s National Assembly.

ECONOMIC INDICATORS

Sales of existing homes edged down 0.2 percent between November and December 2021. Small gains in November and again in December followed on the heels of a nine-percent jump in activity in October, placing sales in the final quarter of 2021 between the highs and lows seen earlier in the year. (Canadian Real Estate Association)

Housing starts in December were at an annualized rate of 236,106 units in December. That was a decrease of 22 percent from 303,813 units in November. The pace of urban starts decreased by 24 percent to 212,918 units, with single-detached urban starts down four percent to 55,231 units. (CMHC)

Retail sales in the U.S. declined by 1.9 percent in December, the biggest decrease in 10 months. That figure follows a revised 0.2 percent increase in November. (U.S. Commerce Dept.)

NOTED

Industry observers are warning supply chain woes may worsen with the extension of vaccine mandates to American truck drivers. Under the new rules, Canadian truckers who aren’t fully vaccinated must quarantine on entering the country, though they can complete their deliveries first. The U.S. was planning a similar mandate on its side for Jan. 22.

OVERHEARD…

“If you have a burst pipe, you need supplies.”
—Vincent Marissal, who represents a Montreal riding for the left-wing Quebec Solidaire, challenged the Quebec government’s ruling that excluded hardware stores from essential status.

Dealers across the country continue to review their options under COVID, making new alliances and switching buying groups. But movement within those groups reflects further the dynamic nature of the business currently.

That includes the realignment of the LBM buying function at TIMBER MART. In November 2021, the group was able to secure Bruno Baldessari, an industry veteran who had spent years at a rival group, BMR, as vice president of forest products trading. Baldessari is responsible for leading and managing TIMBER MART’s national lumber trading division. He had left BMR following changes to senior management at that group.

With responsibility exclusively for lumber trading, Baldessari now works to increase TIMBER MART’s focus on commodity trading. In taking over this role, he relieves John Morrissey, the TIMBER MART vice president based in Halifax, who is in charge of the group’s presence in Atlantic Canada. Morrissey continues to oversee distribution for TIMBER MART Down East.

One of Baldessari’s objectives is to grow his unit and its functions with new products and services to support the TIMBER MART members. As a result, he has been adding to his team.

At the beginning of the year, Nathaniel Boyd, a sales development agent at TIMBER MART, was promoted to the position of commodity trader. He is responsible for securing commodity products for members in Ontario. Based out of the group’s Mount Forest, Ont., distribution centre, he reports directly to Baldessari.

Most recently, Milynn Bruneau has also joined as a commodity trader for Ontario. Like Boyd, she undertakes purchasing on behalf of TIMBER MART’s Ontario members. She has retail experience and was a panel trader at AFA Forest Products. She also reports directly to Baldessari. Bruneau and Boyd are part of a team of six traders nationally for TIMBER MART.

Growth continues as well at the dealer level. Aluminium J. Clément Inc. in Mont-Tremblant, Que., is the newest member to join TIMBER MART. Manugypse, a TIMBER MART member with locations in Quebec City and Boucherville, is set to open a third this March, in Mirabel.

Home Depot’s new credit card program for pros has benefits for Canadians

The Home Depot in the U.S. is enhancing its commercial credit offerings for pro customers and their respective businesses. The retailer introduced the Pro Xtra Credit Card, a new iteration of its Commercial Revolving Charge, as well as updates to its Commercial Account Card. But most of the services already exist in Canada, as well. The credit options in both countries are powered by Citi Retail Services.

Pro Xtra is The Home Depot’s loyalty program that offers members-only benefits like volume pricing, exclusive product offers, and paint rewards. The new card can be linked with the Pro Xtra loyalty program to earn registered users Pro Xtra Perks four times faster on regular card purchases, says the company.

The benefits spill over to Canada, as well. A spokesperson for Home Depot Canada confirmed that its pro customers can link their Pro Xtra membership here to Home Depot Canada’s store commercial credit card and receive similar benefits. These include rewards on all purchases, 365-day in-store returns, and the ability to issue cards to trusted staff members.

Walmart Canada to eliminate plastic bags in its stores

Walmart Canada will eliminate single-use plastic shopping bags in a move it says will prevent almost 750 million plastic bags from entering circulation each year. The changes apply to in-store purchases along with online grocery pickup and delivery orders. The phased approach will see all of Walmart’s more than 400 Canadian locations make the change by Earth Day 2022 (April 22). The national roll-out follows a 10-store pilot that began in August 2021.

Walmart says the pilot received overwhelmingly positive feedback from customers and associates and diverted nearly six million plastic bags. The change will help to eliminate more than 10 million pounds of plastic from circulation each year, the company claims.

“Eliminating plastic shopping bags is a significant milestone on our journey to becoming a regenerative company—and it’s the right thing to do,” said Horacio Barbeito, president and CEO of Walmart Canada, in a release.

In advance of the change, Walmart will launch a comprehensive customer awareness and education campaign to assist in the transition to a plastic bag-free experience. Customers will be encouraged to bring reusable options from home to carry their purchases. Reusable bags will also be available for purchase in stores if needed.

Walmart has already adopted a series of changes to eliminate unnecessary single-use plastics, especially in its food packaging. That includes increasing the amount of post-consumer recycled content in packaging for baked goods, a move that is avoiding the use of 925,000 lbs of new plastics annually.

Houzz, an online platform for home renovation and design, has released its 2022 U.S. Houzz Kitchen Trends Study. It was based on a survey that gathered data from 2,400 U.S. homeowners who are planning, are in the midst of, or have just finished a kitchen renovation.

The study found that kitchen countertops are the top priority this year, with more than a third (35 percent) of respondents spending on this category. It also represents the most frequently upgraded part of the kitchen, with nine out of 10 homeowners changing out their countertops during a kitchen renovation.

The survey found that homeowners choose their countertops based mainly on look and feel. The most popular materials are engineered quartz and granite, with 42 percent and 24 percent of respondents, respectively, desiring those materials. White is the most popular colour, identified by 39 percent of respondents.

“Hiring rates for home professionals to complete these projects are the highest we’ve seen in four years,” said Marine Sargsyan, a senior economist for Houzz.

U.S. homeowners spent more on both major and minor kitchen remodels in 2021. The median cost for a major renovation was $40,000, up 14 percent from 2020, while the median cost for a minor renovation was $10,000, up 25 percent. More homeowners also hired professional help in 2021, with 89 percent of renovations done by a contractor, up from 85 percent in 2020.

Lowe’s Canada’s new president, Tony Cioffi, has promoted Jean-Sébastien Lamoureux to the position of senior vice president for RONA affiliates, wholesale, and public affairs at Lowe’s Canada. Previously, Lamoureux was senior VP for public affairs, asset protection, and sustainable development. He joined the company in 2017 as VP, communications and public affairs.

BuildDirect.com Technologies has appointed David Lazar as interim CEO, subject to regulatory approvals. Lazar was previously CEO of Bailey 44, a premium apparel company that was sold to Digital Brands Group last February.

Walmart CFO Brett Biggs will leave the company in 2023. In his post since 2015, Biggs presided over a major expansion of the company’s online and international businesses. He was seen by some analysts as a contender to eventually succeed Doug McMillon as CEO.

DID YOU KNOW…?

…  that we never get tired of thanking you, our Faithful Readers, for your support through the past year? Now we want to make sure that you continue to receive communications from Hardlines that are relevant to you. We’ve added new products in 2021 and we don’t want you to miss out on any of them! Besides the Hardlines weekly, we now have three free newsletters—and a podcast! So please take a moment to update your profile by clicking here.

Matériaux Pont-Masson, which joined BMR last July, has acquired a neighbouring BMR location. The BMR F.V. Lalonde Renovation Centre in Les Coteaux, Que., will be the eighth store in Pont-Masson’s network, which straddles the Ontario-Quebec boundary. The store includes 17,000 square feet of sales floor, as well as a 70,000-square-foot lumber yard and 25,000 square feet of covered warehousing.

Matériaux de Construction Létourneau has joined Castle Building Centres, building on the buying group’s recent growth in Quebec. Based in Waterville, it also has a location in Bromptonville, a borough of Sherbrooke. After it departed from BMR at the end of 2019, Létourneau joined TORBSA the following year. It tendered its resignation from that group at the end of last month.

SUPPLIER NEWS

The Atlantic Building Supply Dealers Association has announced the cancellation of its 2022 Building Supply Expo. The event was set for March 9 and 10 at the Halifax Convention Centre. Organizers explained that they were not confident public health restrictions would be lifted in time to allow the expo to take place. Reimbursements for vendors who paid for their booths will be processed over the coming weeks.

A speaker series hosted by the Canadian Home Products and Trade Association and the Canadian Office Products Association is continuing in the new year. Making Waves is an online learning program presented in collaboration with the Schulich Executive Education Centre. (Click here to view the full schedule.)

Kohler kitchen and bath products will be rolled out at more than 200 Wolseley Canada outlets this month, the companies announced, expanding Kohler’s footprint across the country. Wolseley Canada will carry the products at its branches and showrooms nationwide and online through its online platform, Wolseley Express.

PPG has expanded its relationship with Home Depot in the U.S. to offer an extensive lineup of PPG paint products and services designed exclusively for the retailer’s pro customers. The new product lineup began rolling out on shelves in the fourth quarter of 2021 and will be available in all U.S. Home Depot stores.

ECONOMIC INDICATORS

Lumber production by sawmills in October increased 0.3 percent from September to 4.66 million cubic metres. Production was 8.4 percent lower than in October 2020. Sawmills shipped 4.48 million cubic metres of lumber, down 4.9 percent from September and 8.9 percent from October 2020. (StatCan)

NOTED

In the latest episode of our podcast series, What’s in Store, we talk to former Home Depot executive Jim Inglis, author of Breakthrough Retailing: How a Bleeding Orange Culture Can Change Everything. Inglis looks back on the early years of the company and the skepticism it was met with by the industry. He also delves into Home Depot’s entry into Canada through the acquisition of Aikenhead’s. You can now listen to the Hardlines Podcast on Spotify, Apple Podcasts and Google Podcasts. (Sign up now to get updates about the latest podcasts in your inbox!)

OVERHEARD…

“There’s a huge difference between knowing about the customer and knowing the customer.”
—Jim Inglis, retail consultant and a former executive vice president at The Home Depot during its early days of growth. He talks about his experiences working with the company’s founders in our latest Hardlines Podcast.

Canada’s number-two home improvement retailer has a new boss. Tony Cioffi has been appointed president of Lowe’s Canada. He replaces Tony Hurst, an American who had been sent up at the beginning of 2020 to steer the Canadian division.

Hurst returns to the U.S. as SVP of pro, services and international for Lowe’s Cos. Cioffi will report to Hurst in his new role.

Cioffi actually had the top job temporarily following the departure of former Lowe’s Canada president Sylvain Prud’homme, who left the company in October 2019. As interim president, Cioffi kept the company on track while a new CEO of the parent company, Marvin Ellison, got a handle on the Canadian operations. During that time, Cioffi reported directly to Ellison.

Cioffi joined Lowe’s Canada in 2016 as SVP, finance, as well as group financial officer. He then served as interim president before being named SVP, stores, a position before this latest promotion. Before joining Lowe’s Canada, Cioffi held leadership roles at ADT Canada and Bell Helicopter Textron Canada. In addition to that, he served as president and CEO of the Reader’s Digest Association (Canada).

TORBSA focuses on growth with new members—and a key new hire

TORBSA, the Ontario-based buying group, has experienced a lot of growth over the past 12 months. Once content to hold a role as a small, boutique-type group with a couple of dozen members, mainly in Ontario, it has since set its sights higher.

“We’re trying to grow the business,” says TORBSA president Paul Williams. He refers to the trend of ongoing consolidation within this industry, where “there’s a real emphasis on growing at the buying groups—not just with us, but our competitors as well.”

Most recently, the group has added ADSS Building Supplies as a new shareholder member. With locations in Edmonton and Calgary, ADSS distributes gypsum, steel framing, and insulation products for commercial and residential markets. The company began buying with TORBSA effective Jan. 1.

And the group expects to sign another dealer in that province before the end of this month. “We’re not done in Alberta,” says Williams.

Last fall, the group announced the signing of JDS Building Supply in Saskatoon. Under company founder Justin Scheuer, JDS services the commercial and residential stucco and exteriors markets across Saskatoon and surrounding areas.

Earlier in 2021, the group signed two more dealers in the Greater Toronto Area—still its area of greatest member concentration. In June, it added Peridot Supply in Brampton, Ont., which has a focus on the commercial and residential roofing markets across the GTA. And in April, TORBSA has announced the addition of RB Building Supply in Brampton, Ont.

But movement can go both ways. Another member dealer, Matériaux de Construction Létourneau, has tendered its resignation from the group. Létourneau, with locations in Sherbrooke and Waterville, Que., marked an important incursion into that province when it joined in 2020. However, its membership will end on Feb. 20. Williams says that dealer had a good experience with TORBSA, and relations between both sides remain amicable. “Quite simply, a new opportunity presented itself for Létourneau. Nevertheless, our relationship has stayed positive.”

Finding the right fit to help it grow in Quebec took some searching, but just before Christmas, TORBSA announced the appointment of John Longo as business development manager for eastern Canada. Longo brings more than 20 years of experience to the role, having worked at BMR, Lowe’s Canada, and RONA. “His phone is ringing off the hook thanks to his wealth of connections,” says Williams.

Growth is coming from existing members as well. Pro Con Building Supplies, based in Brampton, Ont., has opened a third location—with a fourth on its way. “We have expanded both the commercial door and hardware division and our commercial waterproofing and roofing division in Mississauga that will be fully functional by April 2022,” says Steve Guglietti, vice president of Pro Con.

A brand new location will open May 1 in Oshawa as well, Guglietti told Hardlines. “This new location is 38,000 square feet and we will have the same product offering that is available in Brampton and Mississauga, with an 8,000-square-foot showroom that showcases all of our product lines, including masonry, drywall, doors, roofing, specialty insulation, and many other products.”

Williams at TORBSA expects the year ahead to be an interesting one. He attributes that to the upheaval in the industry, with everything from hiring and succession to supply chain disruptions forcing dealers to examine their businesses more closely. When they do, they often have to confront what’s not working with their current business relationships. “I think people are looking for that opportunity to flip the switch and reset. They’re realizing that there are other opportunities out there.”

Former Home Depot exec shares stories, insights in new Hardlines podcast

Jim Inglis can count himself as one of the pioneers in the retail success story that is The Home Depot. As a former executive VP of merchandising for the company, Inglis worked closely with its founders. The combination of a bigger store and lower prices than the home improvement industry had ever before seen had Inglis hooked.

He shares his experiences as our latest guest on the Hardlines podcast, What’s in Store, which is out later this week.

After serving for 13 years in a series of executive positions with The Home Depot, Inglis went on to consult for some of the top home improvement retailers in the world. They include Sodimac in South America and Hornbach in Europe. Now, he’s the author of a new book, Breakthrough Retailing: How a Bleeding Orange Culture Can Change Everything.

Inglis recalls fondly his decision to join Home Depot. In the early 1980s, the big box was considered an outlier, and not a very viable—or credible—one at that. “I asked around the industry about this new thing called Home Depot, and was told, ‘boy, stay away from those guys. They’re crazy,’” he says. “So it was a big leap of faith to finally join the Depot. But certainly it was a very good decision and was a great ride.”

He speaks of the founding father of Home Depot, Pat Farrah, with fondness. “Every new concept in retail requires a merchant prince. For Home Depot, Pat was the merchant prince. He was that spark of creativity and ingenuity.”

If Farrah was “the creative genius,” the two other founders, who built the business over the longer term, likewise had their roles. Arthur Blank was “the financial genius,” while Bernie Marcus was “the ombudsman,” he says. “Bernie was the guy that would always be listening to the customers. He’d be listening to the vendors. He’d be listening to the financial community. He’d be listening to the employees. As a result, he created an environment where we were responsive to our customers, responsive to our stores. That was his contribution. Each of those gentlemen had a very specific role in creating that culture.”

Later in the podcast, Inglis talks about Home Depot’s entry into Canada. The Canadian industry had been watching closely the rise of Home Depot and several companies were developing big boxes of their own. One, in particular, was best poised for success. Aikenhead’s had been developed by a former Home Depot exec. “we determined that we could enter Canada faster and more profitably if we purchased Aikenhead’s.”

(The next episode of our podcast series, What’s in Store, will go live on Wednesday. Don’t miss this fascinating discussion with Jim Inglis, as he talks about the importance of corporate culture, the vendor-merchant relationship—and much more. Click here to sign up for our podcasts.)

As dealers, and all industries for that matter, face the challenge of hiring and keeping staff, the Building Supply Industry Association of British Columbia is trying to dig deeper into the situation to get some clarity for its members.

According to BSIABC president Thomas Foreman, his association contracted a consulting firm, R.A. Malatest & Associates Ltd., to conduct data collection and analysis. The result was a new report, Sector Engagement and Labour Market Study for B.C.’s Building Supply Sector.

Foreman calls it “a comprehensive study intended to provide the sector with much-needed information with respect to job vacancies and hiring challenges, recruitment and retention issues, compensation practices, and education and training needs.”

The project is being conducted with financial support from the B.C. Ministry of Advanced Education and Skills Training.

During the spring of 2022, the project will move into phase two. This will involve collecting detailed workforce data from industry members throughout B.C. via a survey.

Foreman urges companies that may be contacted, either by email or phone, to share details about their workforce.

“We urge you to please complete this survey. We look forward to sharing the findings of this research with all BSIABC members, and our findings will only be as good as the data you share with us.”

Milynn Bruneau has joined the national lumber trading team at TIMBER MART as a commodity trader for Ontario. She will be responsible for securing commodity products for TIMBER MART members in that province. Bruneau’s experience within the industry includes management roles at the dealer level with M. Daoust Building Supplies and, most recently, panel trader at AFA Forest Products. Working remotely, she reports directly to TIMBER MART’s VP of forest products trading, Bruno Baldessari.

West Fraser Timber Co. has announced several changes to its management team. Sean McLaren, currently the company’s president for solid wood, will become COO. Kevin Burke, currently VP, North American engineered wood products and renewable energy, moves to the position of SVP, wood products. Keith Carter, VP, Western Canada operations, will become SVP, Western Canada.

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Peavey Industries will not hold its in-person trade show and Ace Canada buying that was slated for later this winter. A virtual show will instead take place from Feb. 28 to March 4, the same dates the company originally planned to welcome dealers and vendors to the Toronto Congress Centre. This will be the fourth virtual trade show for Peavey, which acquired the Ace licence in Canada just as the pandemic broke out in North America.

Lowe’s Canada raised $73,328 for the fund-raising initiative Movember, through its PROvember campaign. The initiative was aimed at Lowe’s pro customers.

A $70,000 contribution by the Home Hardware Return to Sport Matching Grant helped more than 500 youth sports teams get back into action this fall after being sidelined by COVID-19. The matching grant was developed in partnership with FlipGive, a shopping rewards app for teams. In addition, a dozen Home Hardware dealer-owners in northern Ontario banded together over the holidays to provide more than 2,700 shoeboxes of gifts for Operation Christmas Child.

TORBSA is launching a series of product knowledge sessions, sponsored and hosted by the buying group’s vendor partners. The sessions will run weekly beginning on Jan. 19. They will also be recorded and made available to members.

SUPPLIER NEWS

The Western Retail Lumber Association has postponed its 2022 Showcase. Due to the current health situation, the event will take place in early spring instead of in January. Exhibitors will begin to arrive on March 28, with the show taking place on March 31 and April 1. Hotel bookings will be rolled over automatically.

Under the BMR banner, Novago Cooperative is extending its agreement with JRTech Solutions, an electronic shelf labels distributor, to equip additional BMR hardware stores with the latest generation of Pricer Power+ electronic shelf labels in 2022. The first implementation process will begin with the deployment in four stores. Depending on the success, Novago will migrate the rest of its stores to Pricer’s technology.

ECONOMIC INDICATORS

The value of building permits increased 6.8 percent to $11.2 billion in November. Seven provinces reported increases, led by Alberta at 20.6 percent. Construction intentions in the residential sector rose 12 percent while the non-residential sector declined 3.4 percent. Permits for single-family homes rose 3.3 percent, reflecting strength in Ontario and Quebec. (StatCan)

U.S. investment in construction rose by 0.4 percent in November. Spending on single-family homebuilding, which was up 0.6 percent, drove the increase. Year-over-year, spending was up 9.3 percent. (U.S. Commerce Dept.)

NOTED

Fully one-third of Canadian Tire’s revenues now come from its private-label or owned brands.

OVERHEARD…

“I am extremely proud to have been part of the Canadian team for the past two years and to have the chance to continue working with a talented group of people in my new role I want to thank everyone for all the work they have done, especially in the context of the pandemic. I look forward to working with Tony Cioffi in his new role. He is a very capable leader who will no doubt keep driving excellence for Lowe’s Canada.”

—Tony Hurst, who leaving his post as president of Lowe’s Canada to move back to the U.S., now as EVP of pro, services, and international for Lowe’s Cos.

Looking back over the past year, many of the top stories, as in 2020, were consequences of the pandemic.

Industry events continued to be disrupted, culminating in the December announcement that the 2022 International Hardware Fair would be postponed. Slated for March, Eisenwarenmesse is now planned for the fall. The 2020 event had already been postponed first to 2021 and then cancelled altogether.

Buying groups turned to online events in 2021, many carrying the format over from 2020. TORBSA pivoted to hold its inaugural Virtual Vendor Expo in May. The group’s board of directors issued a statement expressing its disappointment in having to decide while pledging to offer a “viable alternative” to a live event.

Buoyed by the success of its first virtual AGM in January, Sexton Group announced a new series of online informational sessions. Orgill, which first took its semi-annual buying event online in the fall of 2020, reprised the format in February and August 2021.

Supply chain and shipping challenges, another pandemic by-product, also preoccupied dealers and suppliers throughout 2021. Some companies went to extreme lengths to contend with those challenges. In August, Canadian Tire Corp. announced it had purchased a 25 percent stake in Ashcroft Terminal, an inland port facility east of Vancouver. “Our retail supply chain is a monster machine that needs to do its job before the customer order gets fulfilled,” said CEO and president Greg Hicks.

In June, we reported that Home Depot had contracted a ship for its exclusive use, set to make its first run the following month. Other measures included occasionally flying “smaller, higher value items” like power tools by air freight and paying a premium for inventory on the spot market.

New acquisitions and affiliations are always popular stories with our readers. Home Hardware pursued an aggressive strategy of expansion in Quebec throughout the past year. In February, it teamed up with a dealer-owner to take over the Patrick Morin chain. Groupe Turcotte is a network of seven Home Hardware stores in the province led by Louis Turcotte, with partners Daniel Gervais and Pierre Beauchamp. Under Turcotte’s leadership, the Patrick Morin stores have preserved their brand.

In June, Home Hardware announced that it was converting three other Quebec stores to its banners. In December, it unveiled plans for a brand new store in Sherrington, which had been without a hardware dealer since the closure of the local Unimat in 2018. That store is slated to open in March.

Lowe’s Canada picked up several new affiliated stores, particularly in Ontario and Quebec. A new dealer was announced for Beauharnois, Que., in May. Other affiliates expanded: a northern Ontario RONA merchant added its third store in Dryden, as reported in late March.

In Quebec, RONA affiliates in Rivière-du-Loup and the Eastern Townships added second locations in January. A Montreal-based affiliate added a fourth location in Marieville in July. In B.C., Fraser Valley Building Supplies expanded to its sixth location in March.

TIMBER MART welcomed new Quebec members in February, April, June, and November. It also picked up dealers in the Toronto and Ottawa areas, as well as one in B.C.

BMR Group continued its growth outside of Quebec. It welcomed a dealer in Shippagan, N.B., in January and one in Kemptville, Ont., in April. It also got a new CEO in 2021. Alexandre Lefebvre took over in March from Pascal Houle, who in April was named the next CEO of parent company Sollio. Houle assumed that role in September.

The rash of changes in dealer alliances is reflective of the turmoil the entire industry has withstood after two years of dealing with COVID. The upside has been strong sales at retail over the past two years, a trend which is expected to moderate only slightly in 2022.

Orgill makes executive changes as Brett Hammers heads to retirement

Orgill has announced a series of leadership changes as Brett Hammers stepped back from his role as EVP of sales and purchasing at year’s end. The sales and purchasing portfolios will be split into two roles, with the current senior VPs for those departments being promoted. Jeff Curler will take over as EVP, purchasing, and David Mobley will assume the sales role. In their new roles, both Curler and Mobley will now report directly to Orgill CEO Boyden Moore.

Hammers has served in a variety of positions during his 20-year career with the company. He will continue working with the executive team throughout 2022 to ensure a smooth transition in leadership leading to his retirement.

“Brett has done an outstanding job preparing Jeff and David for these roles,” Moore said in a release. “Restructuring this executive role into two positions will help us better manage our growth in these departments now and in the future.”

As far as Orgill’s oversight of Canada goes, its current team remains unchanged. Erik Schlaud continues as VP of sales for Canada and the Canadian purchasing team remains the same.

However, changes have been made in other Orgill divisions. Its eastern sales territory will be divided into two regions. This change also results in a shift in responsibility and the creation of a new role that puts Todd Nowels in the role of VP, dealer sales Southeast. Myron Boswell will continue to serve as VP, dealer sales Northeast. Frank West will lead Orgill’s corporate sales team as VP, corporate accounts.

In the purchasing department, three leaders have been promoted to newly created positions. Lisa Pirtle has been named VP, replenishment and vendor support; Alan Shore is now director, seasonal merchandise; and Heath Kennedy is director, hardlines merchandise.

UFA expands product lines and puts the push on e-commerce

A new look for UFA’s Farm & Ranch Supply stores also means more space. The 34 stores, which are located throughout Alberta, have been getting a refresh, store by store, that began in 2016.

The latest outlet to get a makeover is in Lethbridge, a key market for UFA (see our Nov. 29, 2021 edition). Despite increasing SKUs and widening aisles, the new look includes repatriating some storage and warehouse space and turning it into retail selling space. “We’ve actually increased our retail selling space, says Glenn Bingley, vice president, agribusiness and supply chain at UFA.

Some of the products the retailer has been moving into include household maintenance, such as cleaning and kitchen products. Workwear, an important line for farm and ranch retailers, has also been given a boost. The line is expanding beyond the utilitarian to a broader lifestyle approach.

Outdoor living, already a fast-growing hardlines category, took off over the past two years, and UFA’s newest reset capitalizes on that. “We saw a real surge in lawn and garden under COVID,” says Bingley.

The product refresh is reflected in the overall look of the store. “We’ve added a lot of new branding and design elements, something we will be bringing to more of our store locations.” Another strategy is an investment in more house brands. “We’re looking at adding more private-label products and see this as an opportunity for growth—but we’re in the early stages.”

Bingley, a former VP of merchandising at Home Depot Canada, is taking a page from that retailer’s playbook when it comes to expansion. When asked if any new stores are planned, he says the company will continue to focus on growing same-store sales, rather than adding new locations. The other part of that growth, as at Home Depot, is online sales. UFA is working to expand its product lines available online, creating what Bingley calls “an endless aisle.”

Those expansion efforts are being supported by internal improvements. “We’re making significant investments in our supply chain, which will support our online business—and our overall business.” Some improvements include digitizing supply and introducing new technologies to drive overall supply chain efficiencies. The decision to expand its digital business happened before COVID struck, so Bingley says UFA is effectively moving ahead on the strategy. “We’re really well-positioned.”

Peavey adds Guelph Tool Library as a Community Grant recipient

The Guelph Tool Library in Guelph, Ont., has received a Peavey Industries Community Agriculture Grant valued at $20,000. The funding will support the Guelph Urban Food Initiative, which includes a seed library and community garden.

The award was the result of a national contest in support of community agriculture projects across Canada. Peavey distributes a total of $100,000 each year to grants in support of projects in that field.

The Guelph Tool Library wants to promote and encourage people to grow and produce their own food. It is doing this by offering tools, as well as a seed library that lets people “borrow” a pack of seeds, then bring back more seeds from their garden the following year. The tool library is even providing training sessions and places to grow food. Over the coming year, the organization will host a series of events in response to the issues that make getting food harder, including growing income disparity, supply chain issues, and COVID-19.

The tool library is seen as a benefit to the community, providing users with the means to improve their homes. John Dennis, its co-ordinator, says the service “is essential, not only to supporting social outcomes, but for empowering communities to build their resilience—to confront change with confidence and not just survive, but thrive.”

“Peavey Mart is proud to support the Guelph Tool Library in their Urban Food Initiative,” said Doug Anderson, president and CEO of Peavey Industries. “It allows us to connect with our customers in a way that we haven’t before and addresses topics like food insecurity, supply chain issues, and intergenerational learning opportunities.”

Mark Mossman has joined the Ace Canada division of Peavey Industries as national recruiting manager. He is responsible for the full execution of Ace dealer conversions. His background includes stints at Royal Building Products, Freud Power Tool, and paint accessories distributor Lancaster. Most recently, he served as residential sales manager for Great Northern Insulation in Woodstock, Ont.

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Federated Co-operatives Ltd. says it recorded nearly $9.1 billion in revenue and $495 million in earnings for the fiscal year 2021. Those results were up from $7.9 billion and $177 million, respectively. From those earnings, FCL will return $353.5 million to local Co-ops across Western Canada. In a release, CEO Scott Banda said it was “remarkable how the Co-operative Retailing System continues adapting to ever-evolving circumstances.”

Lowe’s Canada has collected and donated 5,300 toys to children across Canada. In partnership with Opération Père Noël in Quebec, and the Salvation Army in the rest of Canada, participating corporate and affiliated stores temporarily transformed into the North Pole to receive and store gifts from donors. In Quebec, some 360 associates received children’s wish lists, purchased and wrapped the requested gifts, and signed their packages with Santa’s name.

Home Hardware Stores’ new Beaver Homes and Cottages’ Virtual Design Centre has been recognized with two international awards. The platform, developed in partnership with Aareas Interactive Inc., has garnered a Platinum 2021 MarCom Award and a 2021 Vega Digital Award. The Beaver Homes site allows users to personalize and visualize the features of their future home or cottage before they start building.

Ikea Canada has released its 2021 Summary Report, which details the retailer’s progress during another year marked by pandemic challenges. Total sales increased 11.8 percent to $2.59 billion for the fiscal year ending Aug. 31. Online sales soared by 161.5 percent to $969.48 million.

Sears’ parent company, Transformco, says it will put the troubled retailer’s head office on the market. It will also consider other redevelopment plans for the 273-acre site in the Chicago suburbs. Spokesperson Larry Costello said a number of employees have shifted, in whole or in part, to remote work.

Amazon has launched a network of staffed pickup points in Canada. Amazon Counter gives customers the option to pick up their Amazon packages at a network of locations. Delivery to a Counter location is available for millions of items sold on Amazon Canada and works with two-day and one-day shipping at no additional cost.

SUPPLIER NEWS

LP Building Solutions will build a SmartSide ExpertFinish pre-finishing facility on 75 acres in Bath, N.Y. Slated to open in Q3 of 2023, the new facility will join LP’s three siding pre-finishing facilities in St. Louis; Roaring River, N.C.; and Green Bay, Wis. The company also announced that LF Foundation and other corporate initiatives donated more than $550,000 in 2021. Organizations and schools were identified by employees at LP mills across the U.S. and Canada based on community needs.

Gypsum Management & Supply Inc. reported Q2 net sales of $1.15 billion, up 41.5 from a year ago. Net income increased 161.2 percent to $74.4 million, or $1.69 per diluted share, from $28.5 million ($0.66) in Q2 of 2021. At the same time, GMS announced the completion of its acquisition of Ames Taping Tools.

ECONOMIC INDICATORS

Retail sales were up 1.6 percent to $57.6 billion in October. The increase was led by higher sales at motor vehicle and parts dealers as new car dealer sales rebounded. Also contributing to the increase was a 3.2 percent rise with building material and garden equipment and supplies dealers. That increase was the third consecutive monthly gain, following four months of declines from April to July. (StatCan)

November housing starts in the U.S. were at a seasonally adjusted annual rate of 1.68 million units. That was up 11.8 percent from the previous month and 8.3 percent from November 2020. The pace of single-family starts rose 11.3 percent from October to 1.17 million units. The SAAR of building permits was 1.71 million units. (U.S. Commerce Dept.)

U.S. retail sales edged up 0.3 percent in November, or 0.2 percent excluding gas and motor vehicles. That followed an upwardly revised 1.8 percent gain in October. (U.S. Commerce Dept.)

NOTED

We start the new year with a nod to a storied Canadian company. Garant is a manufacturer of tools for gardening, snow removal, cleaning and construction. Located in Saint-François-de-la-Rivière-du-Sud, the Quebec-based company, now in its 127th year, sells 4,000 different products through retailers across Canada and the U.S. Sales exceed $125 million and more than 375 employees contribute to its success.

OVERHEARD…

“Great retailers die when the merchants are replaced by the financial guys (Sears, Sports Authority, Toys R Us, Circuit City). Separating the physical stores from the online stores is the classic example of the financial guys taking over for short term gains that fatally damage great brands.”
—Former Home Depot VP Jim Inglis, responding on Linkedin to a post questioning activist shareholders’ latest push, to have retailers separate their online and bricks-and-mortar business.

Federated Co-operatives Ltd. is purchasing 181 Husky retail fuel sites from Cenovus Energy Inc. The $264 million deal represents FCL’s largest-ever retail acquisition.

The sites include a mix of gas bars, on-site car washes, and convenience stores. Upon closure of the transaction, which is subject to regulatory conditions, FCL will transfer the sites to local Co-ops across Western Canada.

Both FCL and another co-op company, Parkland Corp., entered into separate deals to acquire a total of 337 Husky gas stations and convenience stores. The seller is Cenovus Energy Inc. and the total cost of the stores is close to $420 million. FCL will purchase 181 sites and Parkland has agreed to acquire another 156. The purchase consists of both corporate-owned and dealer-owned locations.

Cenovus is a Calgary-based energy company with oil and natural gas production in Canada and the Asia Pacific region, plus refining and marketing operations in Canada and the U.S.

Some of FCL’s sites will be operated by local Co-ops while others will be operated by dealers under its Tempo banner. The company will spend the coming year and a half converting the outlets from Husky to Co-op.

“This historic deal for our organization clearly aligns with our vision of building sustainable communities together and reaffirms our commitment to Western Canada, to our member-owned Co-ops, and to their local members and customers,” FCL CEO Scott Banda said in a release.

Orgill has been growing its range of products available to its dealer customers during the last quarter of 2021. It now boasts access to an online inventory that exceeds one million SKUs. Independent retailers can, in turn, enhance their e-commerce capabilities using the products from Orgill, supported by its shareable product information database.

To make this amount of data easily accessible to retailers who subscribe to the service, Orgill houses the information in a product information management (PIM) system called the Orgill Industry PIM.

“Nearly a decade ago, we realized that independent retailers would need access to all of the product data, images, and information for the products they carry in order to populate their e-commerce engines. And, if they were going to properly represent their store brands, this would also include products that Orgill may not supply,” says Boyden Moore, Orgill president and CEO.

The giant wholesaler has developed the platform with its industry partner, Unilog.

At its core, the Orgill Industry PIM is a database that its customers can use to populate their e-commerce websites or POS systems. That includes images, text, specifications, filterable attributes, and links to supporting documents. But the products it contains go far beyond what Orgill stocks in its warehouses, according to Marc Hamer, Orgill’s EVP and chief information and technology officer.

Not only does Orgill’s product database include enriched items outside of the distributor’s stocking inventory of national brands, but it also includes LBM such as commodity wood products and sheet goods.

Orgill’s Industry PIM has product data across four different types of items: Orgill warehouse products, Orgill dropship products, products not sold through Orgill, and commodity wood products. In fact, only about 12 percent of the items are stocked in Orgill’s warehouse.

Orgill also has supports for retailers who are looking to build a website or e-commerce engine from the ground up.

Access to Orgill’s Industry PIM, as well as its e-commerce and website design services, are open to all Orgill customers. (For more information on any of these services, please contact ecomservices@orgill.com.)

The retail home improvement industry is coming off the second year of incredible returns, one positive outcome of the otherwise devastating impact of the worldwide pandemic. That reality provided the backdrop for the fiscal outlook provided last week by executives at Lowe’s Cos.

In a call to investors, CEO Marvin Ellison commented early on that the results for his company have been strong—and that trend is expected to continue. “We are very fortunate to be operating in a robust sector of the retail industry, which we expect to benefit from secular tailwinds for years to come. The traditional drivers that support home improvement demand are all pointing in the right direction, beginning with home price appreciation.”

Housing supply in the U.S. will take several years to catch up to demand, he said, even as existing housing stock continues to age. Both factors, which have their parallels in Canada, bode well for retail home improvement. The numbers at Lowe’s bear this out.

Add to that the impacts of people working and schooling from home, which mean “a permanent step-up in repair and maintenance cycles,” Ellison said, adding that two-thirds of Lowe’s sales come from spending on repairs and maintenance.

The company expects growth to come from both the DIY and pro markets.

When it comes to actual fiscal performance in 2021 and beyond, Ellison turned the presentation over to David Denton, EVP and CFO at Lowe’s. “We are expecting total sales of approximately $95 billion in 2021 and comparable sales of approximately 33 percent on a two-year basis,” he noted. Comp sales in 2020 came in at 26.1 percent.

Denton expected things to slow in 2022, but not by much, even though this year will be a tough act to follow. Total sales for Lowe’s are forecast to range from $94 billion to $97 billion, compared with the $95 billion expected this year. Despite a 53rd week in the fiscal year 2022, which is expected to increase total sales by about $1 billion to $1.5 billion, comp sales next year are expected to range from a decline of three percent to flat.

“Looking ahead to 2022, the home improvement sector is likely to contract modestly, given that the industry benefited from both higher inflation and government stimulus this year. While it still remains difficult to predict the market performance precisely, we are expecting a demand decline of mid-single digits on a mix-adjusted basis.”

The organizers of Eisenwarenmesse, the International Hardware Fair in Cologne, Germany, have rescheduled the event for Sept. 25 to 28, 2022. It was previously slated for March 6 to 9.

The show is the largest of its kind in the world and typically hosts close to 3,000 exhibitors from 60 countries. The 2018 event drew 47,000 attendees from 143 countries. It is spread through a network of buildings that comprise the Koelnmesse fairgrounds along the Rhine River.

The event, which is usually held every two years, was last held in 2018. It was next scheduled for March 2020. But the pandemic’s outbreak necessitated a last-minute postponement. Travel restrictions in place in several Asian countries threatened the viability of the fair, which counted on exhibitors from the affected regions. An attempt to hold the show the following year was likewise cancelled.

Koelnmesse CEO Oliver Frese made the announcement, saying the potential for bringing together a global audience “will be significantly greater in September thanks to the participation of the Asian market.” The event has historically served as a major showcase for Asian suppliers, along with European and North American vendors.

Hardlines has a long history with Eisenwarenmesse. Our Canada Night receptions, hosted for Canadian and international visitors on the opening night of the show, bring together vendors and buyers. Past guests include buyers from Canadian Tire, Home Hardware, Orgill, Acklands-Grainger, Home Depot, True Value, Ace Hardware, OBI, and Princess Auto.

A Koelnmesse release noted that the “pandemic situation continues to develop dynamically worldwide and strict travel restrictions are expected in March,” affecting key markets. The organization presented the new date as “a win-win for everyone.”

Given the current rise of the Omicron variant, which has spread around the world in a matter of weeks, the organizers expect that the new timeline will enable exhibitors to have more lead time to plan while also giving them a wider international exposure.

TORBSA has appointed John Longo as business development manager, Eastern Canada. He will report to the buying group’s president and board of directors. With more than 20 years of experience, Longo has held business development roles at BMR, Lowe’s Canada, and RONA. He will be based in Montreal’s west end.

Weyerhaeuser Co. has named David Graham as president of its Canadian subsidiary, effective Jan. 1. Graham will report to Travis Keatley, senior VP of Timberlands. His appointment follows the planned retirement of Fred Dzida, who has served as president since 2014. Dzida will stay on through March 2022 to aid in the transition.

DID YOU KNOW…?

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The Home Depot Canada Foundation rolled out its Orange Door Project holiday fundraising campaign again this year to combat youth homelessness. The company’s 182 stores partnered with local youth-serving charities who will receive all donations made in-store and online. The foundation has also made a donation of $2,000 to the Red Cross on behalf of each store in British Columbia to support communities affected by the recent floods and mudslides.

Aluminium J. Clément Inc. in Mont-Tremblant, Que., is the newest member to join TIMBER MART. Alain Journet is co-owner with Patrick-Guy Meury. The business opened in 1974 and has been serving DIYers, architects, and contractors in the Laurentians since 1980. Today, it employs 65 staff and occupies multiple buildings that house showroom space, product storage, and a carpentry shop for custom-built projects.

Lowe’s Canada has welcomed Mikael Lanthier as the new owner of RONA Ferronnerie St-Janvier in Mirabel, Que. The store was acquired by the Charbonneau family in 1969 and joined the RONA banner in 1972. Over the next few months, customers will see it modernized to allow for stock renewal and online shopping.

Matériaux H. Bondu Inc. in Notre-Dame-de-Pontmain, Que., is Castle Building Centres’ newest member-dealer. Founded in the late 1930s, owner Louis Bondu took over the business in 2014, the third-generation owner in his family. The full-service LBM and general store, under general manager Julie Cloutier, serves the Laurentides region.

Costco Wholesale Corp. will expand its Costco Next program in a bid to hold its own against Amazon. The program allows Costco members to save 20 percent or more on online purchases from participating brands. It was initially launched in 2017 with just a handful of brands, but Costco has expanded their ranks and has plans to add more over the coming year.

Dollarama reported that sales rose by 5.5 percent in Q3 of fiscal 2022 to $1.12 billion, from $1.06 billion a year prior. Comp sales were up 0.8 percent, over and above 7.1 percent growth in the prior year. Net earnings were $183.4 million, or $0.61 per diluted common share, compared to $161.9 million ($0.52) in Q3 of 2021.

Home Hardware’s newest location is in Sherrington, Que. Quincaillerie Sherrington will operate under the Home Hardware banner when it opens in March 2022. “It has been our long-time dream to own a Home Hardware store in Québec,” said Jean Fredette, who is dealer-owner of the 9,000-square-foot store along with partners Martine Boyer, Pier Alexandre Boyer-Couture, and Ève Desbiens.

SUPPLIER NEWS

West Fraser Timber Co. says regulatory reviews and other closing conditions of its latest acquisition have been completed, allowing the company to close the purchase of the Angelina Forest Products lumber mill in Lufkin, Tex.

Henkel North America has announced an expansion of its scholarship and internship program for Black, Hispanic, and Indigenous students. An investment of more than $1 million will support dozens of students with financial aid and internship opportunities. The initiative is in partnership with UNCF (United Negro College Fund), the Hispanic Scholarship Fund, Pathways to Education Canada, and the American Indian Science and Engineering Society.

Équipement Boni, Forma Fil, and Etalex, the three companies operating under the umbrella of SJM Group, have rebranded under the Etalex name. Etalex was founded in 1966 as L. D’Amour Inc. In 1982, then-owner Jacques Majeau purchased competitor Boni, adding Forma Fil in 1989. SJM Group was established as the parent of the three firms in 1995. Groupe Desjardins became its majority shareholder in late 2019.

ECONOMIC INDICATORS

Sales of existing homes in Canada increased by 0.6 percent in November. This small increase followed on the heels of a nine percent jump in October. Across the country, sales gains in Calgary, Edmonton, the B.C. interior, Regina, and Saskatoon offset declines in activity in the Greater Toronto Area and Montreal. (Canadian Real Estate Association)

The seasonally adjusted annual rate of housing starts was 301,279 units in November, an increase of 26 percent from 238,366 units in October. The SAAR of urban starts increased by 29 percent to 279,396 units, with single-detached urban starts down one percent to 58,243 units. (CMHC)

NOTED

Canadians plan to shop overwhelmingly online this holiday season. Zip Co.; which specializes in digital buy now, pay later programs; has released Holidays Unzipped: Zip Canada’s 2021 Holiday Spending Report. The survey found that Canadians in general, and younger generations in particular, are likely to spend more this holiday season. Household items such as furniture and décor continue to figure prominently on Canadians’ wish lists, with 70 percent of respondents citing those categories. Almost three-quarters of those surveyed are doing their holiday shopping online this year.

The North American Hardware and Paint Association has opened registration for its latest class on financial management. The offering is part of the NHPA’s Foundations of Leadership series. Applicants can enroll until Jan. 6 or get started now with a self-paced option.

UFA, the Calgary-based co-op, continues the ongoing upgrades of its chain of 34 UFA Farm & Ranch Supply stores. This spring, UFA tackled its store in Lethbridge, Alta.

“It was our biggest remodel yet. It’s our latest and greatest store,” says Glenn Bingley, vice president, agribusiness and supply chain at UFA.

The store refresh program began in 2016 and the latest reno represents a key step for the company. Sitting in the middle of Alberta’s “livestock alley,” the Lethbridge store has the highest concentration of intensive livestock in Canada and represents a key location for UFA. “Lethbridge is a big part of our business and an important market.”

Bingley says all improvements were generated in-house and reflect a strategy to appeal to more contractors and farm management pros. The enhancements at the Lethbridge Farm & Ranch Supply store reflected the work of the company’s field service team and UFA’s marketing team. They included more digital elements in the signage, wider shopping aisles, and a new building supplies area that merchandises products like drywall, doors and windows, and moulding. The added emphasis on building materials has already been implemented in UFA’s Medicine Hat and Westlake stores.

A new service desk near the entrance encourages better engagement and conversation between customers and UFA team members while letting pros get in and out quicker. Assortments in the yard have been beefed up with livestock supplies and added LBM. A new office in the yard provides easy checkout for a new drive-through (shown here), so customers can remain in their vehicles. “We also did a fully expanded paint program with full-service tinting.”

Merchandise at the Lethbridge store is displayed according to projects, so everything needed to get a job done is in one spot. “The team really remerchandised the entire store,” says Bingley. “The layouts, the adjacencies, are completely changed.”

He says the company has learned a lot about online selling during COVID and those best practices have been applied to the Lethbridge site. For buy online, pick-up in store customers, or those who need to get in and out quickly, the store now features an e-commerce pick-up desk.

“Wider aisles, new adjacencies, reflect a project focus for both contractors and our farm and ranch customer. We’ve polished up the concrete floors and added a lot more ‘bright and white’ to make the merchandising more and more improved for our customers.”

The Canadian retail home improvement industry will get a chance to return to in-person trade shows starting early next year with the Western Retail Lumber Association’s Building & Hardware Showcase, from Jan. 19 to 21.

The show, which effectively brings most of the industry from west of the Lakehead together, will be in Winnipeg, for the first of three years the show is scheduled for that city.

The relocation is just the beginning of a new policy by the WRLA to move the show around on a more regular basis, after six years in Calgary and 16 years before that in Saskatoon.

“When we were looking at it with the [WRLA] board, we said, you know, maybe it’s time for us to start moving things around,” says Liz Kovach, president of the WRLA. “We really wanted to make it accessible to all of our members. If you have it in one place for too long, you’ve got folks from various provinces that might only travel every two or three years. Yes, it’s convenient when it’s in your home province. But that means it’s inconvenient for everyone else, to some extent. So we wanted to keep it fresh, we wanted to keep moving things around because it helps us evolve the event and make it a different experience every year.”

This year’s show will put more emphasis than ever on providing content and learning, along with the deals in the exhibitor aisles. “We did a rebrand session in 2020, when we had our last in-person event, because we really want the show to evolve with the industry and with the needs of our members.”

One outcome was the decision to add more educational components. “This year, we’re going to have a day dedicated completely to building science and energy efficiency, with the movement towards net zero. With the grants that have been put in place in terms of retrofits, we want to make sure that people are equipped with the information they need to translate that into a business opportunity.”

Other sessions will include HR basics for supervisors and managers, plus lessons in pro-active selling for store staff. A panel has been formed to discuss the labour shortage situation.

The show will be held at the RBC Convention Centre in downtown Winnipeg. That venue has been renovated and the third floor expanded so the show will fit on one floor now, Kovach says.

The show already has more than 170 exhibitors registered, “but we still get requests daily and we have a few spots still available.” She says the dealer registration has also increased in recent weeks, as people wait out the impacts of COVID. “Honestly, the momentum is picking up. It’s great to see. We can’t wait to host everyone.”

Retail sales continue to be hot even as the housing market shows signs of stabilizing, economist Peter Norman told the audience at this year’s Hardlines Conference. The event, which gathered dealers and industry leaders from across the country, was held last month in Niagara-on-the-Lake, Ont.

“It’s hard to remember how much we lost because the recovery was so fast and enveloped us so fully,” said Norman. That said, he noted that economic recovery had not been as strong in Canada as in the U.S., where it was “deeper and steeper.”

“Recovery has been very strong but uneven. It’s the unevenness that brings risks but also opportunities. More of the recovery will be pushed into 2022 compared to the U.S., where things are already slowing now.”

With hardware dealers considered essential retailers through most provincial lockdowns, Norman said, “there was really no recession in hardlines sales,” with a “huge surge in sales” in May and June. Except for the second wave, the renovation boom had been a constant throughout the pandemic. He observed that at the time he was speaking “some cooling down” was only just beginning to be felt.

“Home sales are starting to normalize. You might call that going down, but it’s not. It’s returning to regular levels that we would expect around now, and that’s probably good news.”

Demand remained high for single-family homes, “of which we have a massive shortage in Canada. Single-family homes are king. The apartment and condo sector continues to do okay. But that’s not where all the froth was late last year and it’s not where all the froth is right now.”

By the end of its second quarter, Canadian Tire’s retail division had realized a 23 percent revenue increase on a year-to-date basis. But sales in the third quarter were up by only eight percent, setting a trend that continued with more shrinking sales for CTR in Q3. However, customers who belong to the company’s Triangle loyalty program are driving growth, which has resulted in the testing of a premium level of service for the program.

Greg Hicks, president and CEO of Canadian Tire Corp., commented on the trend in the company’s Q3 analyst call, noting that the two previous years were “exceptional” for all of CTC’s banners. “Revenue declined, as expected, led by lower shipments to dealers after significant revenue increases in both Q1 and Q2.”

An important aspect of CTC’s marketing efforts has been its Triangle rewards program. Hicks called it “a key driver of our top-line performance overall and in the quarter,” with 10.7 million active members. Participants in this loyalty program, which applies online across all of the company’s retail banners, spend more on average than other Canadian Tire customers.

“In Q3, our loyalty members spent 30 percent more per visit than non-loyalty members, accounting for 57 percent of our total retail sales in the quarter. Our member base continues to grow, with 680,000 joining in Q3 alone.” And the Triangle program is attracting younger, more digitally engaged customers, Hicks explained.

CTC has been working on Triangle Select, a subscription program that is currently in beta testing. Advantages of this program include free delivery for online purchases, the ability to earn 10 times more points on purchases, and incentives for buying Canadian Tire’s private-label products.

“We have just over 5,000 invite-only customers subscribed as part of the beta test. Over 50 percent of them are skewing younger than our average Triangle member, many have our credit card, and they’re spending more across our banners.”

Lisa Mason has joined store merchandising and detailing company RDTS as director of business development. She brings 20 years of experience as a accomplished manager. Previously, she was at MasterTag Manufacturing as the national account manager for Canada.

DID YOU KNOW…?

… The 2021 Hardlines Market Share Report is now available! It features exclusive information on the market share in every store format, region, and province using sales data for year-end 2020. Sales by province and region of every hardware and home improvement retailer in the country are detailed. Changes from the 2019 to 2020 data are presented in percentages and market shares are broken down by store format. Click here to order yours today!

A BMR store in northwestern Quebec is the group’s first location to offer drive-through service. Customers at BMR Bergeron & Filles in Amos can place orders at a window and receive them without exiting their vehicles. They can also place orders by phone or online. All in-store merchandise is available through the service.

Home Depot reported that its third-quarter comp sales were up 6.1 percent. In the U.S. they grew by 5.5 percent while Canadian stores also posted positive comps. That growth came despite supply chain challenges. “We improved our in-stock levels in the back half of last year, and we’ve been able to sustain, and in some cases improve, our levels even as home improvement demand remains elevated,” president and COO Ted Decker said on a call to analysts.

Lowe’s Cos. has launched Lowe’s Livable Home as part of the company’s “commitment to become the leading retail destination for ageing-in-place and life-change solutions.” In partnership with AARP (formerly the American Association of Retired Persons), the initiative, which is exclusive to Lowe’s in the U.S., will offer expertise, services, and affordable products in a range of styles and budgets aimed at making living at home easier and safer for an ageing population.

The e-commerce division of Leon’s Furniture, Furniture.ca, has a new virtual storefront on Walmart Canada’s online platform, Marketplace. Customers on Walmart.ca are now able to shop for a range of brands and categories from Furniture.ca suppliers. The storefront currently offers more than 2,000 furniture and home décor items, with plans in place to expand the selection in the coming months.

Target stores will no longer open on the U.S. Thanksgiving holiday. Last year, as a crowd-control measure during the pandemic, the retailer replaced its Black Friday event with an extended sales season starting in October, which proved to be enormously popular with shoppers. Target first began opening its stores on Thanksgiving a decade ago, as part of a trend of retailers moving to start the Black Friday rush a day early.

SUPPLIER NEWS

Taiga Building Products Ltd. is donating $100,000 to the Canadian Red Cross in support of the victims of flooding in British Columbia’s lower mainland. The national LBM supplier is headquartered in Burnaby, B.C., and many of the company’s staff, customers, and colleagues have been affected directly by the devastation. “The impacts of this event are being felt throughout our industry community, both in the immediate affected area and well beyond,” said co-CEO Russ Permann. “We hope that our support will help the region bounce back quickly and ease the suffering of those in the most immediate need.”

ECONOMIC INDICATORS

Retail sales were down 0.6 percent to $56.6 billion in September. The decline was led by lower sales in automotive categories. LBM and garden equipment sales edged down by 0.2 percent to $3.74 billion. (StatCan)

Sales of existing U.S. homes rose unexpectedly in October, the second consecutive monthly increase. Sales rose by 0.8 percent to a seasonally adjusted annual rate of 6.34 million units. That was their highest level since January. (U.S. Commerce Dept.)

NOTED

One of the outstanding speakers at our Hardlines Conference last month was Rob Faries, owner of GG’s Ace Hardware in Moose Factory, on the shores of James Bay in northern Ontario. One of the many things Faries revealed about his colourful background was his role as the singer in an indigenous rock band. The Relic Kings performed last week at the storied Horseshoe Tavern in Toronto and our intrepid reporter was there to catch the show. Faries is as assured and engaging in front of a roomful of club-goers as he was speaking to the professionals at the Hardlines Conference. Here’s a 30-second clip of the Relic Kings in action. Great rock ’n’ roll!

OVERHEARD…

“I’m convinced this project will have offspring. Other dealers have already approached us to try it.”
—Jonathan Gendreau, VP for strategy and network development at BMR Group, on the development of a drive-through window at one BMR store, as discussed in Le Journal de Montréal.