Sollio Cooperative Group held its annual general meeting at the end of February via videoconference. It changed its name from La Coop fédérée last year. The parent company of BMR reported that consolidated sales stood at $8.15 billion for 2020, up $870 million from the previous year, while earnings reached $201 million.

“The disruption of the pandemic has not prevented Sollio from pursuing its growth,” president Ghislain Gervais said to the virtual audience. As Sollio’s retail division, BMR Group “benefited greatly from the enthusiasm for home renovation.” He added that the “strain on supply chain has underscored the importance of buying local.”

Sollio CEO Gaétan Desroches, Sollio’s CEO, further noted that price increases through last year on lumber had a positive effect on margins.

The meeting also marked the last day before BMR head Pascal Houle (shown here) took on his new role as COO of Sollio. Alongside that role, however, he continues to discharge the responsibilities of BMR’s CEO until the announcement of his successor, expected in the coming weeks. Houle had combined the top job at BMR with an EVP position at the parent company since 2015.

In his new position, Houle, who joined La Coop fédérée in 1998 and served as a management consultant from 2000 to 2004, retains oversight of BMR while taking on additional responsibilities for Sollio.
His appointment demonstrates the amount of talent within the organization, Desroches said.

For his part, Houle is “very excited about the new role,” he told Hardlines. “I’ve worked in the co-op network for more than 20 years. I’m very proud to be working with Sollio.” He feels well-prepared for the promotion thanks to his tenure as BMR’s CEO. “I learned a lot with my BMR team and with the BMR dealers, to work with our suppliers, to understand how the market works.”

Since he remains involved with the BMR side of the business, Houle will continue to work for its growth—and that includes dealer development. “We want to improve our footprint in Canada, to increase our dealers and sales,” he says, noting that the company submitted a five-year strategic plan to the board of directors.

“We are always looking for new acquisitions and new dealers. It’s in our plan.”

A steady campaign of acquisitions reinforces the importance of the Canadian market for Gypsum Management & Supply, Inc. (GMS).

Based in Atlanta, the giant commercial dealer operates a network of more than 260 Gypsum supply outlets across the U.S. and Canada. GMS’s presence here was firmly established by its takeover, in 2018, WSB Titan. Headquartered in Vaughan, Ont., WSB Titan represents a network of about 30 locations stretching from Vancouver Island to Quebec. At the time, its sales were estimated at more than $700 million.

Since then, GMS, through Titan, picked up additional independent dealers. It acquired Rigney Building Supplies in Kingston, Ont., in 2019. Last month, it added D.L. Building Materials, which has locations in Gatineau, Que., across the river from Ottawa, and in Kingston.

The newest locations put GMS in the National Capital Region, a scenario that WSB Titan president Travis Hendren says works well for GMS. A lot of GMS’s outlets thrive in centres that are both government and university towns. While the proximity of the two Kingston locations is something of a coincidence, Hendren says it represents a geographic asset, as WSB Titan, through its Watson division, is centred in the Toronto area and did not have a presence in eastern Ontario. “We weren’t in this part of the country and we saw an opportunity for us there.”

Other regional gaps exist in parts of the West. There, GMS has just one store each in Manitoba and Saskatchewan, while there are only three locations in mainland British Columbia. “There’s opportunity for growth,” Hendren says.

Acquisitions tend to be managed with a “hands-off” approach. Both Rigney and D.L. continue under the original owners, with most of their respective teams in place.

Leslie Kratcoski is the vice president of investor relations at GMS, based in Atlanta. “We typically think about growth through two channels. First is by buying a business, which is a great way to open new markets. Second is greenfields expansion, which works well in a contiguous market.” She offers the example of a new location for Watson which went up in October 2019 in Cambridge, Ont. That’s close to markets in Burlington and Vaughan that were already being served by Watson.

In addition, new stores can be added in existing markets, “to add density if we need another location,” Kratcoski says.

While companies like Watson are heavily commercial, acquisitions like Rigney represent a more mixed retail operation.

“It really depends on the markets” Hendren says. Smaller markets, especially, he notes, are well served by a mixed commercial, contractor, and DIY-oriented building centre. Slegg Building Materials—with 10 locations on Vancouver Island—is a perfect example. “The customers there, they tend to be builders and contractors who do multiple things. That’s what drives us in those smaller markets.”

Hendren confirms that GMS will continue to look for growth in Canada. “We’re always looking and you’ll see more activity in Canada.”

The latest changes within the executive ranks at Lee Valley Tools reflect a succession strategy that sees the second generation of the Lee family take a step back.

At the end of January, the specialty tool and hardware retailer announced that COO Jason Tasse would also become president. Robin Lee (shown here) stepped away from that role while continuing as chairman of the Lee Valley Group of Companies and as CEO and president of its tool manufacturing business, Veritas Tools.

Lee, who is the son of company founder Leonard Lee, says the change is a positive one for the company—and for him. “I’ve been working for the business for 43 years,” he says. “I’ve been president for 18 years.” His role won’t change too drastically, he adds, but he admits he’ll step away from the day-to-day aspects of running the business.

His successor has been with Lee Valley for 25 years, during which time he has been involved at both an operational and strategic level. Tasse led key systems implementations, directed long-term strategic planning, and oversaw the site selection and design of the company’s 150,000-square-foot distribution centre. “He’s literally walked his way up from the shop floor,” says Lee.

Part of Tasse’s profile that makes him further suited for the president’s job is his understanding of the culture at Lee Valley Tools. Lee says he is “such a great fit” from an ethical standpoint and in terms of the passion that drives the company.

Lee says a clear succession plan becomes even more important under the current COVID-19 pandemic. And communicating that plan is equally important. That includes filling the ranks elsewhere in the management team. “Now we have to backfill the COO position, so this will create the same space behind another individual that will also have to be filled.”

The succession planning is all part of a larger vision to move the company forward. “With the new arrangement, expect a number of changes to the business, but they will be part of a larger strategic plan at Lee Valley.”

One feature that separates the Home Improvement eRetailer Summit from other e-commerce-related events is the strength of its strategic partnerships that span the industry.

“Our strategic partners perennially reinforce our event’s sustainability,” says Sonya Ruff Jarvis, founder of the eRetailer Summit, which takes place virtually March 16 and 17. “Their networks of dealers, suppliers, and solution providers also extend the summit’s brand.”

And as a forum for vendors to get in front of online sellers, it may well be one of the industry’s best-kept secrets.

The virtual summit will offer learning sessions as well as one-on-one meeting opportunities between vendors and retail buyers—who collectively represent billions of dollars in online sales annually.

The first day concludes with a panel featuring some of America’s leading online home improvement sellers. They are Elizabeth Ragone, VP of e-commerce for Boscov’s; Mike Hargrave, senior merchant at Goedeker’s; Asa Farquhar, VP of Spreetail; Brian Fricano, CEO of Sustainable Supply; Jay Patel, senior director of product management at Zoro.com; and Curt Vitale, account manager with Firefly Buys. They will share their experiences during the pandemic and what each has learned to improve their business. Hardlines’ own Michael McLarney will moderate this session.

The Summit’s second day, March 17, will feature the event’s networking opportunities. Manufacturers can schedule virtual one-on-one meetings with selected retailers and third-party fulfillment companies. Those who choose to participate both days receive a discounted rate that gives two company representatives access to up to six meetings with retailers and third-party fulfillment companies.

(For more information about the Home Improvement eRetailer Summit, contact Sonya Ruff Jarvis at 203-295-3385 or sruffjarvis@eretailersummit.com.)

After joining RenoRun last month as a retail consultant, Igor Halencak has been named vice president of merchandising. The former EVP merchandising and marketing for Lowe’s Canada will now head up buying for RenoRun’s app-based delivery service that delivers building products to job sites.

DID YOU KNOW…?

… that your new product line, your latest acquisition, or that new hire are the stories we are always looking to report on in Hardlines? Let us know what’s new with your company, so we can share it with the Hardlines Family! Send your news to our editor, Christina Manocchio.

Lowe’s Canada has eliminated 15 positions at its Boucherville, Que., head office but is seeking to fill 80 new ones, along with a push to hire some 2,000 new workers for its Quebec corporate stores. “We made organizational changes at the beginning of the year to better meet our business needs,” the company told La Presse by email. “In addition … we are currently actively recruiting, still at the head office, with 80 positions to be filled.”

Federated Co-operatives Ltd. held its 92nd annual meeting virtually, a first in the organization’s history. Nearly 300 delegates representing local co-operative associations from across Western Canada came together online for the event. FCL recorded revenues of $7.9 billion, down 13.5 percent from $9.2 billion the previous year. From those revenues, it saw earnings of $177 million, of which $117.5 million was reinvested in local Co-ops and their communities.

Canac opened its 31st outlet last week 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. Representing an investment of $10 million, the new location will create 125 jobs. Construction of the chain’s next store, in Contrecœur, is slated to begin in the summer. Canac’s expansion push also includes plans for its first Ontario store, in Hawkesbury, and a new LBM distribution facility in Drummondville, Que., to replace its two existing warehouses.

Giant Tiger officially opened a new and redesigned store in Ottawa this past weekend. The retailer says the latest concept speaks to the retailer’s commitment to invest in the customer experience. New features focus on the integration of online and in-store capabilities. “We are focused on ensuring Giant Tiger’s customers will be able to shop in the manner that best suits their busy lifestyle,” CEO and president Paul Wood said in a release.

Lowe’s Canada received its ninth Leadership in Sustainability award from Call2Recycle Canada Inc. Thanks to its product recovery program and its partnership with Call2Recycle, the Lowe’s Canada network diverted over 98,000 kg of household batteries away from landfills in 2020, making it one of the not-for-profit organization’s highest-performing partners.

ECONOMIC INDICATORS

January saw a record high total value of building permits issued, up 8.2 percent to $9.9 billion—surpassing the previous record of $9.6 billion set in April 2019. These gains were driven primarily by the residential sector, with those permits up 10.6 percent to $7.1 billion in January. Provincial highs were reported in Ontario, Quebec, New Brunswick, and Manitoba. The majority of the increase was attributable to single-family homes. (StatCan)

Investment in U.S. construction rose by 1.7 percent in January, marking the highest value for this indicator since it was first recorded in 2002. Investment in residential construction rose by 2.5 percent, following a 3.8 percent increase in December. (U.S. Commerce Dept.)

OVERHEARD

“The diversity of our business lines and our commitment to all work together have helped guide us through this crisis. We must continue to focus on the long-term opportunities and consider what the future looks like beyond this pandemic to serve our Western Canadian communities.”
—Scott Banda, CEO of Federated Co-operatives, speaking at FCL’s virtual AGM last week.

The world’s number one and number two home improvement retailers both turned in annual sales and profits that confirmed the extraordinary performance of the entire industry during the year of COVID.

The Home Depot saw sales for the fourth quarter climb a whopping 25.1 percent to $32.3 billion over the same quarter in fiscal 2019. Comparable sales for the period increased 24.5 percent, while comp sales in the U.S. increased 25 percent. In Canada, results were slightly better than that, with posted comps above the company average in local currency.

Profits were held as well. Net earnings for the quarter were $2.9 billion, up from $2.5 billion in the same period a year earlier. They would have been up even more if not for Home Depot’s acquisition of HD Supply on Dec. 24, 2020. That deal cost the retailer approximately $110 million.

At Lowe’s Cos., the results were equally dramatic. Fourth-quarter earnings reached $978 million, up about 92 percent, on revenues of $20.31 billion, which were up nearly 27 percent year over year. Comp sales in the U.S. rose by 28.1 percent. Restructuring, related to the closing of some Canadian stores in the fourth quarter of fiscal 2019, ended up costing the company $45 million, but only resulted in “a very modest impact” on the company’s Q4 results.

The business performed comparatively well in Canada, despite tighter restrictions overall in this country under COVID. “We delivered comp growth in the mid-teens despite several COVID-related operating restrictions that went into effect during the quarter,” said Lowe’s Cos. president and CEO, Marvin Ellison, in a call to analysts.

Overall, the Canadian business enjoyed the better-than-anticipated performance in the fourth quarter. “The new Canadian leadership team made tremendous progress in 2020 and remains focused on improving operational efficiency by executing our retail fundamentals playbook to drive greater labour productivity and improve gross margins,” Ellison added.

For the year, Home Depot had net earnings of $12.9 billion on sales of $132.1 billion, which were up 19.9 percent. The company reported comp sales for the year up 19.7 percent, with comparable sales in the U.S. increasing by 20.6 percent.

At Lowe’s, annual sales rose more than 24 percent reached $72 billion, while net earnings climbed 36 percent to $5.84 billion. Online sales were up 111 percent for the year.

It’s winter trade show time—but with a pandemic twist. As physical contact makes in-person events a non-starter, groups are relying on virtual platforms. Take TIMBER MART: the national buying group held its 2021 Virtual Buying Show last month, welcoming more than 1,600 dealer and vendor participants to an online trade show. It used a platform supported by IQ Business Events.

The show featured a virtual Store on the Floor where vendors presented products, planograms, and store-planning ideas for member-dealers to use in their stores. An area was dedicated to the range of offerings and services, from marketing supports like the TIMBER MART Essentials programs to lumber procurement and the group’s distribution network.

“Our virtual show was a great success in terms of attendance, sales, and the high level of engagement we saw from our members and vendor community who fully embraced the virtual environment,” said Bernie Owens, TIMBER MART president and CEO. “Based on the positive feedback we’ve received from our members and vendors, we achieved what we believe was the best virtual trade show our industry has ever seen.”

The dealers could conduct live chats, download brochures, watch promotional videos, and take advantage of vendors’ show specials. Participating suppliers exhibited in the categories of gypsum, insulation, roofing, concrete, doors, windows, plumbing, electrical, paint, hardware, business software, and seasonal and household products.

Over the four days, vendors saw more than 50,000 dealer booth visits.

A challenge of any virtual experience is addressing the importance of networking that is best provided by a face-to-face event. To that end, the TIMBER MART virtual show offered some innovative options. A photo gallery was available for attendees to watch photo slideshows of previous TIMBER MART events, including golf tournaments, conventions and buying shows. In the each evening during the event, a virtual networking lounge enabled attendees to engage in live chats and video conferencing.

(Click here to see the recipients of TIMBER MART’s 2021 Smart Marketing and Vendor Excellence Awards.)

Major retailers have been returning to the practice of penalizing suppliers for late or incomplete orders and vendors are crying foul. While vendors have always bristled at this practice, circumstances related to the worldwide pandemic have left them at a disadvantage, one they say that some national chains are taking advantage of.

Product and material shortages are commonplace around the world, while the means for shipping what products are available has been seriously undermined by the lack of container ships to bring them to market. On top of that, the incredible demand for home improvement products by North American consumers has thrown buyers’ forecasts out of whack.

And there appears to be no letup in sight, at least not for the next several months.

That’s why the Canadian Hardware & Housewares Manufacturers Association sent a letter out last week to senior retail leaders urging them to back off from such policies. The letter was signed by Sam Moncada, president of the CHHMA.

According to Moncada, the purpose of the letter was to point out the circumstances that are aggravating shipment times. “A lot of organizations are returning to fines and we’re trying to help our members by pushing back a little.”

The letter lays out his concerns clearly, saying in part: “It has been brought to our attention by members that some retailers continue to apply or will be re-introducing vendor compliance penalties despite the continuation of the COVID-19 pandemic and significant supply chain challenges that have arisen. Although we understand the requirement for all orders to be shipped on time and complete, it seems reasonable to assume that vendors who continue to experience labour shortages, factory and office shutdowns, raw material and component delays, and major supply chain interruptions due to the shortage of shipping containers and labour issues at shipping ports, combined with purchase orders that are often significantly higher than historical demand, should not be financially penalized due to factors arising from this global pandemic.”

The letter goes on to urge the retailers to “place a temporary hold on all performance-based fines until the COVID-19 pandemic eases and vendors can find a resolution to the above-mentioned factors.”

Moncada says expectations from the merchants have only exacerbated the situation. “Our members are finding it difficult to meet the demand because the forecasts are so high.”

The situation is also creating a challenge for some smaller retail groups, he says. Vendors could find themselves making every effort to divert supply to these large retailers to avoid the penalties, leaving many regional players at a disadvantage. “The smaller customers are important need to be taken care of too.”

Orgill Inc. successfully concluded its Spring Online Buying Event last month, even as it prepares to return to live events in the future.

At the two-week virtual event, the giant hardware wholesaler reports it enjoyed strong participation that set sales records. It also featured enhancements that made participation more intuitive and user-friendly for both exhibitors and retailers.

“We are pleased with customers’ response to our second online buying event, which was highly attended and drove record sales. We learned a lot from our first event last fall and our team and vendors incorporated some great improvements into this event, designed to make ‘working the show’ as easy and efficient as possible,” said Boyden Moore, Orgill president and CEO.

Preliminary results indicate more than 9,200 retailers attended the Spring Online Buying Event. Sales during the buying window topped those posted during the fall show and set another new record for Orgill Markets, the company reports. In all, nearly 1,000 vendors participated.

As with most buying events, attendees were not only looking for ease of use but were also in the market for promotional buys, new products, and special deals. “The vendors we work with know … that our customers expect to be able to take advantage of these events to stock up on products, discover new merchandise, and access industry-leading deals,” said Jeff Curler, Orgill’s senior vice president of purchasing.

Enhancements this time around included the ability for retailers with multiple stores to process orders more easily. Another was the ability to run a buying report that compared their purchase history alongside the show’s programs and specials.

“I think that the success of this event is a reflection of not only the strength of the industry right now but also that retailers are more and more comfortable doing business in this new online environment,” Moore said. Orgill’s next Dealer Market is scheduled to go live and take place in Chicago from Aug. 26 to 28.

(For more information, visit www.orgill.com.)

DID YOU KNOW…?

… that the 25th-anniversary Hardlines Conference will be held Oct. 19 and 20 at Queen’s Landing in Niagara-on-the-Lake, Ont.? Speakers already include Home Hardware president Kevin Macnab, Doug Anderson from Peavey, and Jamal Hamad from Home Depot Canada’s pro-business division. As Canada’s only national event for the entire retail home improvement industry, attendees are guaranteed great insights—and an amazing networking opportunity! Click here for more info.

Walmart says it will invest nearly $14 billion in capital improvements, including enhancements to its omnichannel. The retail giant posted online sales gains of almost 70 percent in Q4 and is trying to position itself as the go-to destination for online shopping in a marketplace where Amazon’s fulfillment capabilities have set the standard. The investment will target Walmart’s supply chains and increased automation.

Tractor Supply Co. will acquire Missouri-based Orscheln Farm & Home in a cash transaction valued at about $297 million. Orscheln’s 167 stores are scattered across 11 states in the Midwest and southern U.S. Its product mix is similar to Tractor Supply’s, with a focus on hardware, tools, lawn, and animal supplies. 

SUPPLIER NEWS

Eisenwarenmesse, the International Hardware Fair in Cologne, Germany, has opened registration for exhibitors. The event, originally scheduled for last March and later postponed to 2021, has been rebooked for March 2022. Its in-person format will be supplemented by digital tools to help exhibitors to reach additional online customers from around the world. (Check out the application here.)

Western Forest Products reported a Q4 net income of $34.4 million, turning around a net loss of $29.2 million from the year prior and up from $11.5 million in Q3. Total revenues soared to $318.9 million, compared to $80.1 million in the previous Q4 and $290.6 million in the previous quarter. Operating income before restructuring and other items was $56 million, following a loss of $29.6 million in the comparable period of 2019.

The Quebec hardware and building supplies association, AQMAT, has agreed on a new contract with its president, Richard Darveau, in tandem with the Bien Fait Ici (Well Made Here) campaign which he founded on a voluntary basis. Darveau will work part-time for each organization through January 2028. In order to respect the division of his roles, Darveau has resigned as AQMAT’s representative on the buy-Canadian campaign’s board. His successor is Jean-Maxim LeBrun, an AQMAT member and a lawyer specializing in franchise law.

ECONOMIC INDICATORS

Retail sales in December posted their largest decline since April’s low, falling by 3.4 percent to $53.4 billion, due to the effects of the pandemic. However, LBM and garden sales countered that trend. Totalling $3.95 billion, this sector was up nearly 20 percent from the previous December, even though it was down by 2.3 percent on a monthly basis. In volume terms, retail sales fell 3.6 percent in December. (StatCan)

NOTED

DX3 Canada, which bills itself as Canada’s largest retail, marketing, and technology event, will hold its 10th edition March 2 to 5, with Hardlines as a media partner. The all-virtual event encompasses a Retail Summit and a Marketing & Innovation Summit. Among the speakers is Cynthia Wong, associate VP, digital product management at Canadian Tire Corp. For more information, including the full lineup, visit the DX3 Canada site. (For a 25% discount, use coupon code HARDLINES25.)

The upcoming Home Improvement eRetailer Summit will be conducted as a virtual event on March 16 and 17, and for the first time will be open to all retailers. The brainchild of industry consultant Sonya Ruff Jarvis, the eRetailer Summit aims to help connect ecommerce sellers with vendors seeking to grow their online business. The summit’s second day will feature the event’s popular and integral networking opportunities. Manufacturers can schedule virtual one-on-one meetings with selected retailers and third-party fulfilment companies. Click here to request your invitation. Hardlines subscribers can take advantage of special rates.

OVERHEARD…

“Our ability to grow the business by over $21 billion in fiscal 2020 is a testament to both the investments we have made in the business as well as our associates’ unwavering commitment to our customers. We continue to lean into these investments because we believe they are critical in enabling market share growth in any economic environment.”
—Craig Menear, chairman and CEO of the Home Depot, on the company’s extraordinary fourth-quarter and year-end results.

Home Hardware has brought the independent chain Patrick Morinn into its fold, greatly increasing the Home banner’s presence in the Quebec market. The acquisition was made in partnership with Groupe Turcotte, a network of seven Home Hardware stores led by Louis Turcotte, with partners Daniel Gervais and Pierre Beauchamp.

Groupe Turcotte is the principal owner in the takeover, with Home Hardware Stores holding a minority share.

The deal involves all 21 Patrick Morin stores and a distribution centre. Established in 1960, the family-owned business employs more than 1,700 and operates throughout the province. Currently run by the third generation of the Morin family, the company will now be led by Louis Turcotte. The stores will continue to operate under the existing Patrick Morin banner and branding.

Groupe Turcotte has Home Hardware stores in Marieville, Blainville, Pointe-aux-Trembles, Montreal, Laval, Saint-Lin-Laurentides, Que.; and Stittsville, Ont. An experienced dealer, Louis Turcotte has been part of the Quebec home improvement industry for over 30 years.

The deal will add plenty of sales power in Quebec for Home Hardware. Patrick Morin’s estimated sales are over $350 million and it’s one of the largest independent chains left in the country.

The optics of the deal are also favourable. The primarily Quebec-based takeover should be considered acceptable for Quebecers, something Louis Turcotte expressed himself. “As we carry on the legacy of a truly Quebecois company, Patrick Morin will continue to operate with a head office in the province and in partnership with Home Hardware,” he said in a release.

“We recognize that Quebec is a unique market, and we believe that partnering with such a strong, made-in-Quebec brand will continue to give us a competitive edge as we work with Groupe Turcotte and the Patrick Morin team to strengthen our merchandise programs,” added Kevin Macnab, president and CEO of Home Hardware Stores.

In the same release, the management at Patrick Morin took the opportunity to thank its staff and vendors.

“For the members of the Morin family, it is an adventure that is coming to an end; an adventure written by three generations. The Morin family would like to thank each and every employee individually for their work, commitment and loyalty throughout the years. We would also like to thank all our suppliers and business partners with whom we have built solid relationships over the years.”

Orgill, the Memphis-based hardware wholesaler, is making inroads in Canada—and at a faster rate than anywhere else. But the growth here, and elsewhere throughout North America, has required increased investment in the company’s infrastructure. That investment is geared to drive record growth over the next five years.

According to Boyden Moore, president and CEO of Orgill, the company serves more than 1,100 stores in Canada and 50 other countries. Noting that Canada was one of the fastest-growing markets for Orgill last year, Moore explained that dealers everywhere found orders from their existing wholesalers, often tied to a banner, being delayed. As COVID-19 created supply chain challenges, many of those stores turned to Orgill. And those stores included Ace, Do it Best, and TruServ members in the U.S. In Canada, that list included Ace, RONA, BMR, and Home Hardware. “Part of the unique supply chain challenge for Orgill last year was the breadth of the customers that we served.”

However, at the height of the pandemic, even these customers found their orders from Orgill suspended in favour of the wholesaler’s existing primary accounts. The company added a second shift at its warehouses to meet the surging demand. And it’s currently implementing an inventory management system that’s expected to help Orgill’s buyers better anticipate product demand by customers.

Although started before the pandemic, a new DC in Rome, N.Y., had its construction schedule accelerated by almost a year. The site will add 800,000 square feet of distribution capacity with 200 new employees. Product is expected to arrive in the new DC in March, and shipments will begin by mid-year to serve customers in the northeastern United States. In a previous interview with Hardlines, Moore had pointed out that Canadian customers will continue to be serviced through existing facilities in London, Ont., for customers in eastern Canada; and Post Falls, Idaho, for the western market.

He mentioned that plans have begun to expand distribution in the West but did not give any more details.

Moore concluded by sharing some industry forecasts for sales growth in the U.S. in 2021. While these outlooks were negative or nearly flat compared with last year’s record increases, Orgill plans for seven percent growth this year, a goal that is predicated on the company returning to pre-pandemic levels of service. “We’re expecting another strong year of growth, and success, for our customers and the industry generally.”

Finally, he shared some aggressive longer-term growth plans. “We are working to ensure we have the capacity in place to support the potential of doubling our business over the next five years.”

Canadian Tire Corp.’s latest results revealed a strong fourth quarter and record sales increases for the year, especially within its Canadian Tire Retail division (CTR).

Reflecting performance across the company’s business units, which include Mark’s, SportChek, and Helly Hansen, consolidated retail sales increased $479 million in the fourth quarter, up 9.9 percent over the same period in 2019. Excluding Canadian Tire’s petroleum business, consolidated retail sales were up 13.6 percent. Consolidated revenue increased by 12.9 percent in the fourth quarter; excluding Petroleum, it was up 17.4 percent.

“We achieved outstanding operational and financial results in 2020, driven by sustained strong growth in e-commerce and owned brands, and the addition of 1.8 million new customers to the Triangle Rewards program,” said Greg Hicks, president and CEO of Canadian Tire Corp., in a release.

The company says its strong omnichannel performance in the quarter drove comparable sales growth of 9.5 percent. CTR had growth of 12.8 percent, driven by double-digit growth in almost 70 percent of product categories and 18 percent growth by its private-label, or owned brands. E-commerce sales surged across all retail banners, with CTR up 179 percent.

For the full year, Canadian Tire’s retail sales grew 11 percent, excluding Petroleum, primarily driven by 17.6 percent growth at CTR. The company’s e-commerce sales reached $1.6 billion, up $1 billion or 183 percent, with CTR delivering over 250 percent growth.

“Looking forward, the proven resilience of our business model, the strength of our Triangle Rewards program, and the relevance of our assortment position us well to continue engaging with our customers and supporting them in 2021 and beyond,” Hicks added.

How much of a pro’s materials spending goes to home improvement dealers? That depends on who you’re talking to, and where. But the “why” is clear: contractors and builders shop and buy where they feel wanted, and that’s not always the case, they say, when stores also cater to DIYers and consumers.

“We’ve tried them all,” said Rick St. Laurent, owner of Peak Improvements, a full-service design-build firm based in Edmonton.

“And we go with those that offer the best pricing, delivery, and service.”
And with products in short supply during the coronavirus pandemic, contractors and remodelers have had to be flexible about who they buy from.

Many of the pros interviewed by Hardlines admitted they don’t buy much from big box dealers. Lisa Johnson, co-owner of Dependable Renovations, a high-end customer remodeler in Calgary, purchases tools from Home Depot. But, she said, she goes elsewhere for building materials and finishing products. “We have attempted to work through box stores, but there is little to no follow-up service, and without a specific sales-rep relationship, we just become another number,” said Johnson.

Indeed, the more consumer-oriented the store, the more alienated pros seem to feel, which relegates those stores to secondary or emergency sources of supply. There’s a psychological factor at play here, too. Michael Upshall, who owns Probuilt, a design-build firm based in Bolton, Ont., said his company’s product suppliers include Home Hardware, Home Depot, and RONA. But his “biggest gripe” about home improvement stores, in general, is that they don’t cater specifically to pros. “None of them has gotten it right or has someone in the store who speaks our language.”

All of Canada’s home improvement retail chains have pro programs to increase their business with these customers. Home Depot Canada recently updated the app for its ProXTRA members to simplify how these contractors can earn and redeem loyalty points. Last fall, Lowe’s Canada launched VIPpro, a program designed to offer its contractor customers an integrated purchasing experience across the retailer’s more than 235 corporate stores that operate under the Lowe’s, RONA, and Réno-Dépôt banners. That includes retraining its pro dedicated staff to be more expert and helpful to contractors.

“Pros need a return on their investment in time,” said Jeff Oben, Lowe’s Canada’s senior director of pro sales-in store. “I wake up every morning asking how we can make it more convenient for them to shop our stores.”

(This is excerpted from an article in the latest issue of our sister publication, Hardlines Home Improvement Quarterly magazine. HHIQ is mailed to more than 11,000 dealers across Canada.)

DID YOU KNOW…?

… that your new product line, or that new hire, is the news we want to share in Hardlines? Let us know what’s new with your company, so we can share it with the Hardlines Family! Send your news to our editor, Christina Manocchio: christina@hardlines.ca.

Ace Hardware saw record Q4 revenues of $2.1 billion, an increase of 39.2 percent from the fourth quarter of 2019. Net income for the quarter was $43.1 million, up $39.6 million from a year prior. Full-year revenues rose 27.9 percent to a record $7.8 billion. Net income for fiscal 2020 was $316.9 million, which was $176.5 million higher than in 2019.

Walmart has reported record fourth-quarter and full-year revenue. Total Q4 revenue reached $152.1 billion, an increase of 7.3 percent. Walmart U.S. comp sales increased 8.6 percent, with e-commerce sales up 69 percent. Walmart International net sales were up 5.5 percent. For the year, total revenue was up 6.7 percent and annual revenue of nearly $560 was up $35 billion. Comp sales for Walmart U.S. increased by 8.6 percent., while U.S. e-commerce sales grew 79 percent. Walmart International net sales increased 1.0 percent or 5.2 percent in constant currency.

SUPPLIER NEWS

West Fraser Timber reported Q4 earnings of $366 million, up from a $31 million loss a year ago, while sales for the quarter rose to almost $1.7 billion, compared to $1.13 billion. The lumber segment generated operating earnings of $503 million. For the full year, sales totalled $5.85 billion with earnings at $776 million, up from sales of $4.88 billion and a $150 million loss in fiscal 2019.

Schlage Locks has revamped its branding with a new tagline, “Trust Your Home to Schlage”, a revised visual identity, and a new marketing spot that emphasizes the customer’s trust and peace of mind.

BBX Capital, Inc., through its subsidiary Renin Holdings, has acquired Colonial Elegance for a deal worth about $39 million. Montreal-based Colonial Elegance is a supplier and distributor of building products, including barn doors, closet doors, and stair parts. Renin is a maker and distributor of sliding doors, door systems and hardware, and home decor products.

ECONOMIC INDICATORS

Sales of existing homes climbed by two percent in January, setting a record. The seasonally adjusted activity was running at an annualized pace of 736,452 units. Actual (not seasonally adjusted) sales activity posted a 35.2 percent gain, year over year, in January. (Canadian Real Estate Association)

The seasonally adjusted annual rate of housing starts rose by 23.1 percent in January to 282,428 units. January’s pace was 281,389 units, up 22.7 percent from December’s 229,350 units. The SAAR of urban starts increased by 27.2 percent, with the rate of single-detached starts up 36.8 percent. (StatCan)

Retail sales in the U.S. rose 5.3 percent in January. Excluding automobiles, sales were up 5.9 percent. Gains were logged across all major categories, with sales by LBM and garden supply dealers spiking by 13.7 percent. (U.S. Commerce Dept.)

NOTED

DX3 Canada, which bills itself as Canada’s largest retail, marketing, and technology event, will hold its 10th edition March 2 to 5, with Hardlines as a media partner. The all-virtual event encompasses a Retail Summit and a Marketing & Innovation Summit. For more information, visit the DX3 Canada site. (For a 25 percent discount, use coupon code HARDLINES25.)

From July to September of last year, consumers spent $199.44 billion online with U.S. retailers. That’s an increase of 37.1 percent from the same quarter the prior year, reports the U.S. Commerce Department. That meant nearly $1 in every $5 spent came from orders placed online during the third quarter of 2020.

OVERHEARD…

“This dealer-focused transaction strengthens the program for all Home dealers and Patrick Morin by leveraging Home’s national scale with Patrick Morin’s position and expertise in Quebec.”
— Kevin Macnab, president and CEO of Home Hardware Stores, on his company’s investment, with Groupe Turcotte, in the acquisition of home improvement retailer Patrick Morin.

During its virtual spring buying event last week, Orgill president and CEO Boyden Moore went online to share some of the successes and milestones of the company.

He pointed out that in 2020, amidst a challenging business climate, the Memphis-based hardware wholesaler grew by a healthy 21 percent, pushing sales over $3 billion. And that’s just four years after Orgill’s sales reached the $2 billion mark. Moore suggested that the company’s growth could have been even stronger if it had not been hampered by supply chain issues that resulted in so many out-of-stocks at the height of the pandemic.

“We’ve been working most of the year to respond to the supply chain challenges that we faced and improve our performance to you. It has been an incredible challenge,” he admitted.

On the vendor side, 30 of Orgill’s 1,700 vendors now account for more than half of the company’s line counts. Moore said his teams are working with those suppliers to get their production back to the pre-COVID levels. Meanwhile, more than 1,000 staff have been added to its DCs, with an extra shift added last year.

Moore also touched on Orgill’s market penetration in the U.S., where almost 34,000 independent dealers are estimated to operate. Of those, he said, Orgill shipped to 9,956 of them in 2020, including Ace, True Value, and Do it Best dealers. However, he noted that the company has another 1,100 dealers in Canada and its international markets. Canada, he added, was “Orgill’s fastest-growing market” in 2020. Here, as in the U.S., dealers facing supply problems with their affiliated suppliers turned to Orgill to fill in their lines.

The first virtual event, held last fall, had “record participation and drove record results.” Then, Orgill hosted 2,400 attendees to a round of virtual education seminars last month.

But through it all, the Orgill sales teams remained focused on staying connected with their retail customers. “The power of relationships was in full focus. We care about your success,” he stressed.

The Orgill virtual spring buying event continues until Feb. 19.

A major U.S. commercial dealer continues to grow its presence in this country with the acquisition of another independent dealer. GMS Inc., through its Canadian subsidiary, WSB Titan, has bought D.L. Building Materials.

Founded in 1988, D.L. supplies wallboard, acoustical ceilings, steel framing, insulation, and related building products to markets in Eastern Ontario and parts of Quebec through two locations: in Gatineau, Que., and Kingston, Ont. Together, those sites represent 80 employees and 30 trucks, supported by 64,000 square feet of warehouse and more than 196,000 square feet of yard space.

The company is an affiliate of Le Groupe Beauchesne, which in turn is part of the buying group within WSB Titan, acquired by GMS in 2018. Headquartered in Vaughan, Ont., WSB Titan represents a network of about 30 locations stretching from Vancouver Island to Quebec. Though Beauchesne was not part of the buyout, it remains tied to WSB Titan for purchasing.

GMS operates a network of more than 260 gypsum supply outlets across the U.S. and Canada. With the addition of D.L., GMS expands its Canadian presence and fills a geographic gap in Eastern Ontario, specifically the greater Ottawa-Gatineau market. The acquisition also marks GMS’s first location in the Quebec market as it continues to execute strategic expansion goals in Canada.

Travis Hendren, President of WSB Titan, says he’s pleased to bring D.L. directly into the GMS fold. He says Canada is a valuable market for GMS. “It’s going to continue to be an important part of our growth. We hold the view that Canada has a lot of opportunity,” he added.
D.L. Building Materials is just the latest in a series of acquisitions GMS has made in Canada following the WSB Titan deal. Most recently, it took over Rigney Building Materials, also in Kingston.

The D.L. locations will continue to operate under the D.L. Building Materials banner, in connection with Titan’s existing seven locations in Southern Ontario. D.L. founder Richard Davis, general manager Shana Davis, and their team will continue to lead the business.

After holding a virtual event in 2020, the National Hardware Show (NHS) will resume its live format this year, and it returns to Las Vegas to do it. The show, which is marking its 75th anniversary, will now take place from Oct. 21 to 23. It will remain in the Las Vegas Convention Center but it will move to the newly opened West Hall.

The new dates have the show starting on a Thursday, rather than on Tuesday as in years past. The focus will be on international sourcing, reconnecting attendees, exhibitors, global suppliers, and partners.

“After consulting key industry stakeholders and attendees, the decision to postpone to October was made to ensure maximum safety for all involved and to produce a successful event for all our participants,” said event leader Beth Casson in a release. “We know how eager everyone is to come together again, and are excited to unite in a brand new, state-of-the-art space in October."

This year’s NHS will showcase relevant, new, and international products and provide insight into industry trends and innovations. “We are committed to serving the industry by providing the education, resources, and networking needed for success in 2021 and beyond,” Casson added.

(For more information and to stay informed on the latest updates to this year’s National Hardware Show, click here.)

With the surge in home improvement spending online during COVID, the business case for the Home Improvement eRetailer Summit has never been stronger. The brainchild of industry consultant Sonya Ruff Jarvis, the goal of the eRetailer Summit is to help connect e-commerce sellers with vendors seeking to grow their online business.

Now the very circumstances that have driven the sector are affecting the conference itself. Ruff Jarvis has announced that this year’s Home Improvement eRetailer Summit will be conducted as a virtual event. It will take place on March 16 and 17.

Retailers and suppliers must stay on top of the latest e-commerce market trends, Ruff Jarvis adds, so the eRetailer Summit is shifting gears to meet the market’s needs. The digital retailers and sellers she has gathered for the summit represent millions of dollars in online sales.

“Over its five years, the summit has become an essential venue for information and sharing ideas,” she says. “We felt an obligation to sustain the event, and this year our delivery platform will be the Internet, which has been so many retailers’ and suppliers’ lifelines during the pandemic.” Moving online also opens the summit to independent hardware retailers and building materials dealers.

Curt Vitale, account manager with Firefly Buys, and one of the summit’s advisory board members sees value in keeping the event alive virtually this year. “The need to continue interacting, learning, and growing our businesses remains during this unusual period,” he says.

Scott Sinclair, senior director of e-commerce at OneStone, adds that “it is more important than ever for us to share ideas, strategies, and insights. The virtual Home Improvement eRetailer Summit is the perfect environment to do just that.”

Other retailers attending the summit include Elizabeth Ragone of Boscov’s, Mike Hargrave of Goedeker’s, Asa Farquhar of Spreetail, and Brian Fricano of Sustainable Supply.

The summit’s second day, March 17, will feature the event’s popular and integral networking opportunities. Manufacturers can schedule virtual one-on-one meetings with selected retailers and third-party fulfilment companies.

(Faithful Hardlines Readers can access the event at special rates. Vendors can take advantage of a special discounted rate of US$449. Retailers can attend for just US$99. For more information, contact Sonya Ruff Jarvis directly.)

Peter Korecki, vice president, pro builder and specialists, at Lowe’s Canada, is retiring. He has spent 32 years in this industry, beginning at Kent before moving to Pierceys. He stayed with the company when it was purchased by RONA, and likewise when RONA was taken over by Lowe’s. His retirement is effective March 26.

DID YOU KNOW…?

… that your new product line, or that new hire, is the news we want to share in Hardlines? Let us know what’s new with your company, so we can share it with the Hardlines Family! Send your news to our editor, Christina Manocchio: christina@hardlines.ca.

Sexton Group recently held its annual meeting for its members, garnering one of its highest attendances ever. By hosting the meeting and events online, the group made them available to members who can’t attend in-person meetings or shows. “We are already talking about what we can do with our vendor partners,” said Eric Palmer, VP and GM of the Sexton Group. Their post-event survey found that 97.6 percent of members were interested in having more virtual events.

Lowe’s Canada and Sollio Cooperative Group have been named two of Montreal’s Top Employers. The annual competition has been held by Mediacorp Canada since 2006. The two companies were recognized for their charitable involvement, along with their retirement savings plans and professional education opportunities for employees.

Hudson’s Bay Co. is partnering with Neo Financial to offer customers a new credit card. The venture brings together Canada’s oldest business and a new player in the financial technology sector. While HBC’s bricks-and-mortar operations have been increasingly troubled amid pandemic-related store closures, the company says its online channel is on the rise.

Commercial building products distributor Foundation Building Materials has been acquired by New York-based private equity firm American Securities LLC. FBM specializes in gypsum, ceilings, metal framing, and related products. It has more than 170 branches across the U.S. and Canada.

W.W. Grainger reported Q4 sales of $2.9 billion, up 3.3 percent from the comparable period in 2019. Share gains in the U.S. segment and omnichannel growth more than offset declines in the Canadian business, Acklands Grainger. Net income for the quarter amounted to $168 million, while full-year sales rose by 2.7 percent. However, earnings of $1 billion were down from $1.3 billion in fiscal 2019.

SUPPLIER NEWS

Honeywell International reported Q4 earnings of $2.07 per share, compared to $2.06 a year ago, while year-over-year sales declined by six percent to $8.9 million. Honeywell Building Technologies’ sales for the quarter were down four percent, due in part to lower demand for security products and building management systems.

Energizer Holdings Inc. reported adjusted earnings of $1.17 per share in Q1, up 37.6 percent from a year prior. Net sales reached $848.6 million. Year-over-year sales rose 15.2 percent, while organic sales rose 12.7 percent to $93.3 million.

After being cancelled last year, the Pedlars & Grinders Golf Tournament is slated to take place on Sept. 9 at the Grey Silo Golf Club in Waterloo, Ont. The tournament has raised $286,000 to date for Sleeping Children Around the World. In the event of another cancellation, organizers will explore alternative fundraising options.

CORRECTION: In a news item last week about a distribution deal between Fraser Wood Siding and AFA Forest Products, we misspelled the last name of Fraser’s sales director, Grant Cowx.

NOTED

DX3 Canada, which bills itself as Canada’s largest retail, marketing, and technology event, will hold its 10th edition March 2 to 5, with Hardlines as a media partner. The all-virtual event encompasses a Retail Summit and a Marketing & Innovation Summit. Among the speakers is Cynthia Wong, associate VP, digital product management at Canadian Tire Corp. For more information, including the full lineup, visit the DX3 Canada site. (For a 25% discount, use coupon code HARDLINES25.)

OVERHEARD…

“Part of what makes us unique is how our associates support and encourage each other, bringing their unique set of skills to the table and embodying the culture of inclusion that makes our family so strong.”
—Marc Macdonald, Lowe’s Canada’s senior VP of human resources, on the company being recognized as one of the best employers in the Montreal area.

Hardlines is pleased to announce the call for entries for the 2021 Outstanding Retailer Awards.

The awards, which recognize the finest retailers in the hardware and home improvement industry, are national in scope. All Canadian hardware and home improvement retailers and managers who have operated under their current ownership for at least two years are eligible.

Dealers may submit their entries directly to Hardlines. Alternatively, their chain or buying group head offices may select their best dealer(s) and prepare their entries for them in collaboration with the dealer. Head offices may enter more than one store per category. In addition, vendors may identify specific outstanding retailers for entry. ORA submissions are due June 25.

The awards will be presented to the winning dealers during a gala dinner at this year’s Hardlines Conference, which will be held Oct. 19 and 20 at the Queen’s Landing Hotel, Niagara-on-the-Lake, Ont.

Categories to enter:
1. Best Hardware Store (any size);
2. Best Building Supply/Home Centre (under 15,000 square feet);
3. Best Building Supply/Home Centre (over 15,000 square feet);
4. Young Retailer Award (a store manager 35 or under; entrants may be owners or chain employees);
5. Marc Robichaud Community Leader. This award is open to all stores. Its purpose is to celebrate the outstanding contributions, events, charitable donations, etc., made by a store’s staff/managers/owners to the community they serve;
6. Best Large Surface Retailer (over 65,000 square feet);
7. Best Contractor Specialist Store.

Winners will receive a trip for two to Toronto, plus two nights’ accommodation at the Queen’s Landing Hotel in nearby Niagara-on-the-Lake, Ont. The winning dealers will attend the Hardlines Conference on Oct. 19 and 20 and participate in the ORA Gala Dinner on Oct. 19, at the end of day one of the conference.

In addition, winners will receive an inscribed plaque; a write‐up in Hardlines Home Improvement Quarterly magazine; and a customized video and photo ready to be sent to local media.

Launched in 1992, the Hardlines Outstanding Retailer Awards are the industry’s only national awards program dedicated to celebrating the achievements of hardware and building supply dealers in Canada. Over almost three decades, the program has honoured more than 160 retailers.

(To fill out the ORA application, please visit www.oras.ca; or contact our Editor, Christina Manocchio, for further information. Le formulaire est également disponible en français.)

Peavey Industries continues to expand its operations to serve its family of Ace dealers, adding new names to its development team. Peavey acquired the licence and distribution rights to the Ace stores in Canada from Lowe’s Canada in the spring of last year.

Most recently, Peavey has hired two Ace business development managers. Mark Mossman has been brought on as business development manager for Eastern Canada. Based in Ontario, he was formerly residential sales manager with Great Northern Insulation. Also new: Kevin Sagert has joined as Ace business development manager for Western Canada. He’s based in Alberta. In his previous position, he worked with independent retailers at Pharmacy Brands Canada.

Mossman and Sagert are responsible for engaging with independent dealers to guide them through the process of becoming an Ace-bannered store. That includes everything from assisting with store design and inventory coordination to finance and vendor relations. Both men report to Damian Zapisocky, SVP, corporate and strategic development.

The new hires reflect the company’s readiness to start recruiting new members for the Ace banner. The initial focus of the Ace team was to work with the existing dealers as they transitioned from Lowe’s Canada, based in Boucherville, Que., to Peavey’s distribution network. Peavey has a distribution centre in Red Deer, Alta. where its head office is located, as well as a DC in London, Ont., which was part of its acquisition of TSC Stores in early 2018. These DCs are stocked with hardware and farm products that fit with many of the Ace dealers’ hardlines needs.

For the stores that carry building materials, Lowe’s Canada continued providing LBM distribution out of its warehouses through the remainder of 2020. Then, before Christmas, Peavey announced a supply deal with Sexton Group, the LBM buying group based in Winnipeg. Ace dealers now have access to product through Sexton’s arrangements with its suppliers.

Forbes magazine has published its list of Canada’s best companies to work for. In collaboration with the market research company Statista, Forbes selected Canada’s Best Employers for 2021 based on a survey of more than 8,000 Canadian employees working for companies that employ at least 500 people in their Canadian operations.

Several retailers made the list, including ones that sell hardware and home improvement products.

The ranking is based on corporate culture and how a company treats its employees. The overall well-being of workers has become an even greater issue than in the past thanks to the impact of COVID-19. With people working remotely, confined to their homes, or going to offices and workplaces that require stringent protocols to ensure safety, the stresses of life and work pose challenges, not just for the individuals affected, but for the companies they work for.

Costco Canada landed right near the top, at number 13. IKEA was number 124. Princess Auto, the hardlines chain based in Winnipeg, came in at number 143, while Home Hardware was number 173. Home Depot was number 201 and Canadian Tire came in at number 268.

And the top company? It was the Canadian Mental Health Association. Through the pandemic, that organization found itself swamped with calls and requests for help, as people foundered under the stresses of ongoing lockdowns. CMHA worked to manage the stresses of its workers and provide everything from days off for R&R to team-building contests for employees working remotely.

The CEO of Lowe’s Cossays the needs of its stores’associates and of the communities, they serve remain fundamentals for the company. Marvin Ellison spoke last month at “Retail’s Big Show,” the virtual conference of the National Retail Federation in the U.S.

In conversation with NRF president and CEO Matthew Shay, Ellison said he was very proud of the $1.2 billion set aside for COVID-19 support, calling the situation “challenging both personally and professionally for all of us” over the past year. The added financial support to help get through tough times is something Ellison himself could appreciate personally. He referred to his middle-class upbringing as the middle child in a family of seven kids in a small West Tennessee town with working-class parents.

“Growing like that and working my way through school … it taught me a lot about what it feels like to be on the front lines,” Ellison said, adding that he understood the pressure of clocking in and out of work and making ends meet.

“It gives me and members of my team perspective on how our front-line associates are feeling when they are faced with these unprecedented challenges,” including health care or just stretching their budgets for their families. Ellison recognized that staff in the stores are among the most vulnerable members of the workforce.

Driven by that attitude, Lowe’s developed ways to support workers and take that support to the communities the stores serve—a mandate that is already strong within Lowe’s Canadian business. Along with bonuses and paid sick days, the company began extending small business grants and boosts to minority businesses. “We just believe it’s the right thing to do,” Ellison noted.

Just last week, Lowe’s paid out another $80 million to support its workers. A $300 special payment went to full-time employees, while part-time and seasonal staff were to receive $150 each.

“As we approach spring, I am enormously proud of the way our associates have served customers and supported each other this past year through an unprecedented health crisis,” Ellison said of the latest disbursement.

And in Canada, that support of local communities remains a significant part of the company’s DNA. Last month, Lowe’s Canada completed its “Heroes Campaign,” which raised more than $2.1 million for some 235 non-profit organizations and public schools across the country (shown here). In addition to providing matching funds for donations at each store, Lowe’s Canada provided an additional $800,000 to the cause, in recognition of the increased needs among the charitable organizations it supports.

At BMR Group, André Lavoie has been appointed VP, finance. A graduate of HEC Montreal, Lavoie spent 17 years at the Caisse de dépôt et placement du Québec, where he was named senior director, investments, private equity, in 2016.

Igor Halencak, the former EVP merchandising and marketing for Lowe’s Canada, has joined RenoRun as Retail Consultant. RenoRun is an app-based delivery service for contractors that gets building products from the home improvement supplier to the job site. Halencak spent just over six years at Lowe’s Canada, having joined from Sears Canada in 2013.

DID YOU KNOW…?

… that the latest issue of our sister publication, Hardlines Home Improvement Quarterly, is now available online? In the Q1, 2021 digital edition of HHIQ, learn what dealers are doing to confront COVID, find out how a younger generation is breathing new life into their stores, and read why Peavey’s Doug Anderson took over Ace Canada—and how he’ll make it work. Plus: our interview with Marianne Thompson, the top merchant at Home Hardware. Click here to read the full issue!

Lowe’s Canada has launched a spring hiring campaign in preparation for the home improvement industry’s busiest season. The company aims to fill over 7,000 full- and part-time positions throughout its network of Lowe’s, RONA, and Réno-Dépôt corporate stores across Canada. It will hold a series of national and regional hiring events over the next two months.

Castle Building Centres has added Distribution D’Astous in Quebec’s Bas-Saint-Laurent region as the group’s newest member. Distribution D’Astous was established almost 20 years ago and during that time has grown into a full-service home improvement centre.

The Home Depot has opened a distribution centre in Dallas to fulfill online orders and store orders. The 1.5-million-square-foot facility is designed for fulfillment through multiple channels, whether delivering items directly to customers’ homes or for pickup at local stores. It also manages the delivery and installation of large appliances ordered in stores or online, along with the removal of old appliances.

Tractor Supply Co.’s Q4 sales rose by 31.3 percent to $2.88 billion. Comp sales increased 27.3 percent, compared to a 0.1 percent increase in the prior year’s Q4. Gross profit increased 34.2 percent to $995.5 million, from $741.8 million in the fourth quarter of 2019. Net income was $135.9 million, compared to $144.2 million.

Honeywell Safety Products has partnered with King Marketing’s national team of sales reps. “King Marketing is proud to represent the Honeywell brand and is looking forward to helping grow their business across Canada,” said King Marketing president Paul Crawford in a release. Honeywell’s brands include Honeywell, Uvex, North, Howard Leight, Oliver, Servus, and Miller.

Fraser Wood Siding has announced the addition of AFA Forest Products Inc. to its distribution partner network. “Partnering with AFA Forest Products allows us the opportunity to continue our growth strategy in all of the Atlantic provinces, including Newfoundland,” Grant Cowx, Fraser’s sales director, said in a release. “Fraser Wood Siding adds a new and exciting element to our growth strategy for the exterior siding category, specifically for Atlantic Canada,” added AFA’s marketing director, George McCart.

Sherwin-Williams reported its Q4 profits rose to $407 million, from $248.6 million in Q4 of 2019. Sales rose to $4.49 billion, compared to $4.11 billion a year ago. In the Americas, sales rose by nine percent. The company attributed the gains to “higher residential repaint, DIY, and new residential paint sales in the U.S. and Canada,” partially offset by the impact of the pandemic.

ECONOMIC INDICATORS

Sales of new single-family homes in the U.S. rose by 1.6 percent to a seasonally adjusted annual rate of 842,000 units in December. November’s rate meanwhile was revised down to 829,000 units, from the preliminary figure of 841,000 units. (U.S. Commerce Dept.)

U.S. construction spending rose by one percent in December, as homebuilding activity offset a soft non-residential sector. Investment in residential construction for the month rose by 3.1 percent, with spending on the construction of single-family homes up by 5.8 percent. Construction spending seasonally adjusted in December was 5.7 percent higher than a year prior. (U.S. Commerce Dept.)

OVERHEARD…

“The pandemic continues to have a significant impact on non-essential retailers. Due to these circumstances beyond our control, the company has had to make adjustments which have resulted in a reduction in workforce.”
—Tiffany Bourré, a spokesperson For Hudson’s Bay Co., following the announcement that the retailer would permanently lay off more than 600 employees. A Toronto employment lawyer is representing workers who are contesting the terms of their termination.

BMR Group has confirmed that CEO Pascal Houle will leave his position later this month to become head of operations with parent company Sollio Groupe Coopératif (formerly La Coop fédérée). BMR has a job posting on LinkedIn to replace Houle in the CEO role.

Houle takes on his new role on Feb. 25, immediately following Sollio’s annual general meeting. He will report to Sollio CEO Gaétan Desroches.

Houle started his career in 1998 as manager of his local co-op in Laurierville, Que., and was named management advisor for La Coop fédérée in 2000. In 2013, La Coop began its takeover of BMR and at the time Houle was put in place as VP retail. He then became EVP for BMR.

Early in 2015 La Coop completed its acquisition of all assets of BMR, creating a combined entity that was second only to RONA in Quebec’s retail home improvement arena. At that time, Houle stepped into the CEO role at BMR. The merger gave La Coop a total of 350 building centres and hardware stores, operating under the Unimat and BMR banners.

In anticipation of next Houle’s move, some other changes have occurred at the management level at BMR in recent months. Before Christmas, Antonio Di Pasquale joined as VP, supply chain and operational excellence. He leads the development and optimization of BMR’s processes and strategies relating to procurement and demand planning.

Bruno Baldessari, was named vice president, merchandising and vendor relations last summer. At the same time, Jonathan Gendreau, formerly VP of marketing and strategy, was given the title of VP, strategy and network development; and VP of retail Martin Lecomte was named VP, retail and network performance.

At the dealer level, BMR continues its efforts to expand the BMR brand. Through the latter half of 2020, it successfully added new members, all in Quebec. Most recently, a wholesaler in Shippagan, N.B., signed on as an associate member under the BMR Express banner. The company has its eye on further expansion, especially into Ontario. In fact, BMR is currently searching for a senior operations advisor to serve dealers in the Outaouais region and Ontario.

As the pandemic has changed life as we know it, the regional trade shows that typically provide huge opportunities to bring people together have had to settle for online events. The Western Retail Lumber Association (WRLA) had to do just that with its show.

WRLA’s Building & Hardware Showcase was held Jan. 18 to 29, offering a mix of product specials and presentations, including sessions from Dupont, Taiga, and other suppliers. And rather than flying to Calgary or Winnipeg, attendees had only to download an app and refer to the latest copy of the WRLA’s magazine, Yardstick, which provided a directory of products and events.

The first educational session was “Political Power Hour,” which featured talks from provincial ministers. Discussions surrounded strategies to raise the economy post-COVID-19. 

Bronwyn Eyre, Minister of Energy and Resources in Saskatchewan, highlighted the new provincial home renovation tax credit. The provincial government has also introduced a PST rebate, which will cover up to 42 percent of PST on a new home with a maximum of $350,000. “We hope that these two new tools, for both contractors and homeowners, are something that will be effective as we move into a greater economic recovery,” said Eyre.

With the promotion of home improvement comes environmental concerns. During a session called “Building Materials for the New Carbon Economy,” environmentally friendly building expert Chris Magwood presented improvements the industry can make. Buildings contribute to almost half of global fossil fuel emissions, delegates learned, but this number can go down with the right materials. Magwood pointed out that using code-compliant materials results in lower emissions than high-intensity materials.

“The materials that we choose, and the carbon footprint of those materials, is every bit important as energy efficiency,” said Magwood. Other topics like health concerns and waste were also addressed during the session.

Despite the disruptions caused by a worldwide pandemic, more than two-thirds of companies in the hardware and home improvement industry reported growth that met or exceeded expectations in 2020.

This is just one of the findings from a new survey of business conditions by executive search guru Wolf Gugler, of Wolf Gugler Executive Search. The survey was done in the final months of 2020, with the majority of responses coming from Canadians.

Of the one-third who saw results fall short in 2020, reasons provided included lack of face time with customers, supply chain holdups, and staff absence due to personal illness or illness of a family member.

Looking at the hiring climate for 2021, the survey is fairly positive. When the pandemic struck in early 2020, it didn’t result in immediate staff cuts, but many cuts did result through attrition during the year. While downsizing may increase year over year, more companies are planning staff additions.

“Actually, we’ve experienced a reduction in new candidates coming to us because of downsizing,” says Gugler. “We have, though, seen the time to re-employment increase for those that were cut in early 2019.”

The survey also helped identify how companies will respond as lockdown measures are lifted. Fully 70 percent of respondents indicated they would continue to work from home, with just 30 percent saying they will be office based.

“This is no surprise, really, with the current pandemic situation,” says Gugler. “Many client companies of ours have accommodated employees to work remotely. They’ve included the provision of computer equipment and internet services, allowing flex hours to help employees manage childcare needs and staying connected via video meetings.”

Looking ahead, respondents were largely upbeat about their prospects for 2021, with 69 percent expecting results this year to exceed 2020. Twelve percent said results would be lower, while 19 percent expected performance to be the same as last year. “When sales were down, the primary reason given was inventory and logistics issues,” Gugler adds. “This dovetails with the increase in the need for competent inventory and business analysis staff, a role that we see a high demand for.”

Sadly, only 18 percent say that they love their current employer. (Disclaimer: nobody from Hardlines participated in this survey. At least I hope not!—Editor)

Costco posted record results in its financial report for fiscal 2020, issued last month. The warehouse club retailer is the world’s seventh-largest publicly trader retailer according to a 2020 Forbes list, but recently it has ranked as high as third place. With big boxes deemed essential in most regions, Costco has been able to remain open through the pandemic, although departmental restrictions have varied by jurisdiction.

Costco’s Canadian net and comp sales up five percent in 2020.

Like retailers from Amazon to IKEA, Costco has been investing in optimizing the “last mile” of each delivery order’s journey to a customer. That effort included the acquisition in 2020 of Innovel, now rechristened Costco Logistics. Under the terms of the $1 billion transaction, announced last March, Costco Logistics continues to deliver bulky and big-ticket items not only for Costco but also for Sears, Kmart, and other third-party customers.

The explosion of online grocery ordering could afford Costco an opportunity to consider its stance on expanding its omnichannel. Back in November, EVP and CFO Richard Galanti said, “We’re not everything to everybody, and we’re still reluctant to do the buy online and pick up in-store other than for a few bigger-ticket, small-sized items, like jewelry.”

During its recent shareholders’ meeting, by contrast, CEO Craig Jelinek confirmed Costco has partnered with Instacart to offer two-day grocery delivery as well as same-day delivery for fresh items. Costco offers the service to non-members but at a premium of at least 10 percent.

“It makes more sense for the person buying through Instacart to do it through Costco and have a Costco membership,” Jelinek told the meeting. He added that the wholesaler is “probably about a year out” from offering members the capability to check inventory levels at local warehouses.

Costco’s food courts did a brisk business during the year, even with seating areas closed. More than 150 million hot dog and soda combos were sold in 2020. In fresh groceries, produce sales were up 16 percent and meat sales up by 21 percent, with 101 million rotisserie chickens sold during the year.

Jay Heubner, president and GM of Ace International, will retire March 1 after 38 years at Ace Hardware Corp. Heubner joined Ace’s IT department in 1983 and was soon named a director. Heubner’s successor, David Goh, will take up the president and GM positions on April 5. A former CEO of 7-Eleven Singapore, he is currently managing director at Robinsons Retail Holdings, a Filipino retail conglomerate. While Heubner was based in Panama, Goh will be based in Singapore.

At Lee Valley Tools, Jason Tasse has been appointed president, in addition to his current role as COO. CEO Robin Lee will continue in his roles as chairman of the Lee Valley Group of Companies and as CEO and president of Veritas Tools. Tasse’s record during his 25-year tenure at Lee Valley has included leading key systems implementations, strategic planning, digital transformation, and the development of the company’s 150,000-square-foot distribution centre.

DID YOU KNOW…?

… that the latest issue of our sister publication, Hardlines Home Improvement Quarterly, is now available online? In the Q1, 2021 digital edition of HHIQ, learn what dealers are doing to confront COVID, find out how a younger generation is breathing new life into their stores, and read why Peavey’s Doug Anderson took over Ace Canada—and how he’ll make it work. Plus: our interview with Marianne Thompson, the top merchant at Home Hardware. Click here to read more!

Karine Anctil, owner of the RONA store in Rivière-du-Loup, Que., has acquired a building centre in La Pocatière. The site will reopen under the RONA banner in the spring.

BMR has welcomed the hardware division of Shippagan Enterprises Ltd as an associate member under the BMR Express banner. The fourth-generation family business is a wholesale distributor serving the commercial fishing and aquaculture industries in Shippagan, N.B. The hardware store has 15 employees and a total sales area of 7,000 square feet.

In Quebec City, a local notary, François Thifault, has acquired the RONA Quincaillerie Crémazie in his neighbourhood. The 1,500 square-foot store has served the community for over 75 years and has been an affiliate merchant under the RONA banner since 1997.

Canac’s latest new publicity campaign is aimed at helping Quebecers keep their New Year’s resolutions—by literally setting them in concrete. “At Canac, we wished to begin the year under the banner of solidarity,” explained marketing director Patrick Delisle. “Because everyone experiences moments outside the ordinary, we wanted to extrapolate our slogan, ‘Canac helps for real,’ to make a real difference in the lives of some Quebecers who are making resolutions.” (Click here to view one of the segments. In French only, but heartwarming in any language!)

Lowe’s Canada has launched its spring hiring campaign in preparation for the home improvement industry’s busiest season. The company aims to fill over 7,000 full- and part-time positions throughout its network of Lowe’s, RONA, and Réno-Dépôt corporate stores. It will hold a series of national and regional hiring events over the next two months. National events will take place exclusively online, while regional events will let candidates complete their first interview online or in person.

SUPPLIER NEWS

Richelieu Hardware Ltd. posted Q4 sales of $319 million, up 20.4 percent from the previous fourth quarter. Net earnings rose by 41.2 percent to $0.48 per share. In Canada, Richelieu recorded sales of $215 million, an increase of $35.9 million. For the fiscal year 2020, sales reached $1.13 billion, up 8.3 percent over 2019. Net earnings rose 28.2 percent to $85.2 million. In Canada, sales of $730 million were up 6.4 percent from $686 million in fiscal 2019.

3M Co. reported Q4 earnings of $1.4 billion, or $2.38 per share, up 43 percent from a year ago. Net sales increased by 5.8 percent to $8.6 billion. Lower costs and higher demand for protective equipment, including N95 masks, helped to boost results. In the consumer category, earnings rose by 10.7 percent to $335 million. In Canada, sales were up by two percent in local currency.

SONOpan has entered into a multi-year North American endorsement relationship with Bryan Baeumler. The HGTV host will be the exclusive ambassador of SONOpan with its Noise STOP Technology. He will be involved in SONOpan’s marketing initiatives including website, social media, instore signage, radio, and TV.

IN MEMORIAM:

Lindsay O’Handley passed away on Jan. 8, in his 75th year. A well-known member of the Canadian power tool and OPE industry, he was the national sales manager at Ryobi Canada from 1995 to 2002. Prior to that, he served as national accounts manager and district sales manager in Alberta and Southern Ontario for Delta/Porter Cable from 1977 to 1990. Lindsay also spent eight years in the U.S. as a product manager and regional sales manager for McGraw-Edison and Sabre Chain Co.

ECONOMIC INDICATORS

Retail sales in November rose at their fastest pace since September, up 1.3 percent to $55.2 billion. This was the seventh consecutive monthly gain. The increase was led by higher sales at food and beverage stores, along with an uptick in e-commerce sales. Sales of building and garden materials rose by 2.2 percent, the fourth straight monthly increase. Sales were up in seven of 11 subsectors, representing 53.4 percent of retail trade. In volume terms, retail sales rose 1.2 percent in November. (StatCan)

Sales of existing U.S. homes rose 0.7 percent in December to a seasonally adjusted annual rate of 6.76 million units. Increases in the Northeast and South were tempered by a decline in the West, while sales in the Midwest were flat. Year-over-year sales soared by 22.2 percent. (National Association of Realtors)

Housing starts in the U.S. rose 5.8 percent in December to an annualized rate of 1.669 million units. On a year-over-year basis, activity was up 5.2 percent. Single-family homebuilding saw a 12 percent spike, with an annualized rate of 1.338 million units. Building permits for the month were up 4.5 percent to a pace of 1.709 million units. (U.S. Commerce Dept.)

NOTED

A PwC survey indicates that about 27 percent of employees currently work onsite in Canada. Of those working at home, only one in five say they want to return to an office setting post-pandemic.

OVERHEARD…

“I live and work in the Montcalm district, and the RONA Quincaillerie Crémazie store is part of what makes this neighbourhood so vibrant and inviting. Thanks to the current staff’s expertise and RONA’s tailored support, my team and I will be able to continue providing excellent service to the community.”
—François Thifault, a notary who purchased the local hardware store in his community in Quebec City.

Lowe’s president and CEO Marvin Ellison spoke last week at “Retail’s Big Show,” the virtual conference of the National Retail Federation in the U.S. Speaking with NRF president and CEO Matthew Shay, the former CEO of JC Penney candidly recalled the challenges he faced coming over to Lowe’s in July of 2018.

“I was actually surprised when I joined Lowe’s just over two years ago. I was surprised that there were so many things that we didn’t have in place when it came to operational excellence and merchandising and supply chain—which really encompasses the whole e-commerce strategy that we’ve been focused on.”

By way of example, he noted that Lowe’s did not have the capability, just two years ago, to offer customers an e-receipt. And with staff scheduling driven entirely out of head office, store schedules couldn’t accommodate individual workers’ lives and lifestyles.

Ellison also disagreed with Lowe’s expansion efforts up to that time. That, most notably, involved the company’s expansion in Canada, with the takeover of RONA inc. Internal challenges such as merchandising systems and supply chain persisted, while, he said there was “too much attention had been put on acquisitions and adjacent businesses.”

After taking over at Lowe’s, Ellison did not delay in reviewing the international operations. Barely three months into his role, according to several industry insiders, he was up in Canada reviewing the business here. Just weeks later, Lowe’s Canada announced it would close more than two dozen stores by the end of that year. Another 34 stores were shuttered one year later.

“I thought it was just critically important that we come in and we focus on our core retail elements of the business and get those operational underpinnings in place.”

The Building Supply Industry Association of B.C. held its annual summit last week, marking the latest industry event to pivot to a virtual format. With more than 30 sponsors, BSIA’s “Wave of the Future” featured 20-minute presentations from companies including CanWel, EAB, TIMBER MART, King Marketing, and Sexton Group.

Adding to the networking aspect the event worked to replicate, several draws for prizes were held throughout the day and a virtual “happy hour” was held at the end of the sessions.

The event featured a range of presentations, including trends and forecasts, as well as product knowledge sessions by suppliers on the latest product innovations and technologies. Introduced by the event’s host, and BSIA president, Thomas Foreman, the day kicked off with a keynote address by Hardlines’ own Michael McLarney.

The talk took a broad view of the state of the industry, the impact the pandemic has had on it, and where it’s likely to go from here. Starting with good news, McLarney noted that Canada represents the third-largest home improvement market in the world. The industry in Canada is holding its own compared to the experience in countries with bigger populations and economies, he told the virtual attendees. “You’re in the right country to be in this business.”

It should go without saying that the importance of omnichannel, already apparent going into the pandemic’s outbreak, has become non-negotiable.

“We have seen the online piece absolutely take off since last spring,” McLarney said, adding that it’s crucial for retailers to treat their brick-and-mortar and online strategies as “a partnership,” and not as complementary components of their approach. As 2020 saw paper flyers increasingly become a casualty of both public health and environmental concerns, a strong online presence became even more critical to keeping customers in the loop.

Beyond the rise of e-retail, consumer behaviour is evolving in numerous ways. McLarney pointed to a range of trends being underscored by the pandemic. He cited the increased focus on décor and lifestyle categories by big boxes, and a push toward increasingly more in-store services that complement the store’s product offering. He identified the growth of “niche” categories like pet and recreation products, as well as the potential to cash in on the popularity of homegrown cannabis.

Private-label brands have been key to the strategies of companies from Canadian Tire to Peavey Industries. Lockdown measures have raised awareness within communities of local shopkeepers, reflected in the growing interest in the “shop local” movement.

“That’s a tough one because people will always shop with their wallets,” McLarney said.

Looking ahead, McLarney observed that as the industry gets back to a “new normal” some trends are likely to stick around. While the DIY boom sparked by the COVID-19 crisis can’t last forever, it doesn’t appear ready to burst within the next two quarters. Maintaining inventory remains a challenge, with dealers reporting that when it comes to supply chain, the industry is “not coming back as quickly as we would like,” he added.

Referring to essentials such as good merchandising and investing in staff training, “Through all this, I don’t want you to forget the basics of retail. Those are the things that keep the lights on,” McLarney reminded the audience.

NHPA offers leadership training to help you tune your team through COVID

Managing your team—and your customers’ expectations—has become increasingly difficult as the effects of the pandemic continue. That’s why the North American Hardware and Paint Association (NHPA) has tweaked its courses and management training programs.

The online training courses are available to all NHPA members, while the management and leadership courses take career development to a new level.

“We’ve repackaged all the training content so it makes more sense to our members,” says Scott Wright, executive director of advanced training programs for the association.

The updates are well-timed, as the dead of winter is historically ideal for dealers and managers to think about training.

Wright acknowledges that people are getting tired of online learning, after being confined for so many months under COVID. “But training lets you invest in the people you have and puts importance on your people and your team.”

One addition to NHPA’s educational series is its Foundations of Leadership program. It offers three different nine-week course options: Intro to Leadership, Leading Your Team, and Financial Management. The next Intro to Leadership course will kick off in February; the deadline to enroll is Feb. 1.

The course is designed for staff who are on their way up, perhaps leading to an assistant manager or manager role within the business. Students can choose between a scheduled course plan or use self-paced options. Graduates of the Intro to Leadership course will walk away with insights into their personal leadership styles and strengths. They will be able to develop a framework for their ongoing leadership growth and career development.

Topics covered in this course include:

• Developing talents
• Creating a dynamic work culture
• Learning about emotional intelligence (EQ)
• Completing a StrengthsFinder assessment
• Completing a Myers-Briggs questionnaire
• Transitioning from staff member to manager

Students will also complete a real-world capstone assignment for their business. The project will focus on solving a problem or capitalizing on a missed opportunity in the business.

Click here to learn more about the Foundations of Leadership program and the upcoming Intro to Leadership course. You can also contact NHPA Canada for more info or reach out to Scott Wright directly.

Sales of existing homes in Canada rose by 7.2 percent between November and December to set another new record, according to the Canadian Real Estate Association (CREA).

The seasonally adjusted activity was running at an annualized pace of 714,516 units in December—the first time on record the monthly rate has ever topped the 700,000 mark. The month-over-month increase in national sales activity was driven by gains of more than 20 percent in the Greater Toronto Area and Greater Vancouver.

Actual (not seasonally adjusted) sales activity posted a 47.2 percent yearly gain in December—the largest year-over-year increase in monthly sales in 11 years.

For 2020 as a whole, some 551,392 homes traded hands, setting an annual record. This is an increase of 12.6 percent from 2019 and stood 2.3 percent above the previous record set back in 2016.

"It’s official, despite all the challenges: 2020 was a record year for Canadian resale housing activity,” said Costa Poulopoulos, chair of CREA. While he expected momentum to continue into 2021, a surge in COVID cases with more lockdowns in some provinces could hamper the market.

“Hopefully, we’ll have the current wave more under control by the time the spring market rolls around, which is shaping up to be a very active one,” he added.

The number of newly listed homes climbed by 3.4 percent in December, led by more new listings in the GTA and B.C. Lower Mainland, the same parts of Canada that saw the biggest sales gains during the period.

Ian Rudkin is the new retail territory sales manager, Western Region, for Derby Building Products. He was formerly the district general manager for Canteen Canada. He reports to Claude Dion, sales director.

After 31 years at Rust-Oleum Canada and Tremco, Chris Hatfield is retiring effective Jan. 29. Hatfield has held a range of sales positions within the organization, most recently as national sales manager.

… that the latest issue of our sister publication for dealers and store managers came out last week? That’s right, the January edition of Hardlines Dealer News was emailed to thousands of front-line retail operators. Click here to sign up for your own free subscription to Hardlines Dealer News!

The Home Depot Canada Foundation has publicly thanked its suppliers, customers, and associates for their support of its 2020 Holiday Orange Door Project Campaign. Through donations both in store and online, the campaign raised $798,195. The foundation committed an additional $364,000—or $2,000 per Home Depot Store—to support 125 different charities serving youth across Canada. In total, $1,161,195 was generated.

TIMBER MART has welcomed Silverstar Roofing Supplies in Toronto’s east end as its newest member. Since 2018, Silverstar has offered shingles and roofing accessories to contractors and builders in the Greater Toronto Area. The business is situated on 1.8 acres of land in Scarborough covering two warehouses, a large storage yard, and a shingle recycling depot.

The dealer-owners of RONA Quincaillerie des Rivières in Waterville, Que., have acquired a second independent affiliate location in the province’s Eastern Townships. Philip St-James and Stacy Boulet took the helm of RONA Centre de rénovation Stanstead on Jan. 4. The St-James family had previously acquired the Waterville store, founded in 1983, in 2003 and brought it under the RONA banner in 2005.

Castle Building Centres has announced that Mayer Hardware & Building Supplies in Sioux Narrows, Ont., is its newest member location. Owners Phil and Lauri Mayer looked to Castle to enhance the store’s product assortment and buying power.

The 2020 Leger WOW study has revealed Ontario customers’ favourite retailers for in-person and online experience. Lee Valley Tools ranks at number 12 for in-store shopping, while Reitmans stood at number one and MEC in sixth place. Leger, which has conducted the WOW study for the past ten years, evaluated a total of 145 retailers for this year’s edition.

Amazon is planning to invest in its Quebec fulfillment chain with the opening of two sorting centres along with the e-retailer’s first three delivery stations in the province. Most of these facilities will be in or around Greater Montreal. The expansion will create more than 1,000 new jobs and help “power the last mile,” Amazon said. Critics however charge that the company has overstated its commitment to employee health and safety.

Quebec-based convenience giant Couche-Tard has withdrawn its bid to acquire France’s Carrefour SA in the face of government opposition to a foreign takeover. Couche-Tard’s offer for Carrefour, which accounts for about one-fifth of France’s grocery sales and introduced the hypermarket format to Europe in the 1960s, included provisions aimed at pre-empting such concerns.

SUPPLIER NEWS

West Fraser Timber Co.’s bid to acquire Norbord Inc. has been approved by both companies’ shareholders, according to a joint announcement. The all-stock transaction was originally announced in November and valued at some $4 billion. Under its terms, West Fraser acquires the issued and outstanding shares of the world’s largest producer of oriented strand board. In addition to meeting shareholder approval, the deal has cleared the necessary regulatory hurdles in the U.S. and Germany to proceed. Subject to meeting the final closing conditions, the transaction will be completed on Feb. 1.

ECONOMIC INDICATORS

The seasonally adjusted annual rate of housing starts fell by 12.2 percent in December from November. The SAAR of urban starts for the month declined by 12.8 percent. Multiple urban starts decreased by 15.1 percent while single-detached urban starts were down 5.5 percent. (CMHC)

U.S. retail sales edged down by 0.7 percent in December. It was the third consecutive monthly decline. However, sales of building and garden materials rose by an estimated 0.9 percent from November. (U.S. Commerce Dept.)

NOTED

Amazon acknowledged in October that it had almost 20,000 employees who have tested positive for COVID-19.

OVERHEARD…

“Food security is strategic for our country so that’s why we don’t sell a big French retailer. My answer is extremely clear: we are not in favour of the deal. The no is polite, but it’s a clear and final no.”
—Bruno Le Maire, France’s finance minister, on his government’s rebuttal to the takeover attempt of one of that country’s leading retailers, Carrefour SA, by Canadian convenience chain Couche-Tard.

Hardware retailers are among the non-essential retailers prohibited from admitting customers to stores under Ontario’s new lockdown rules. Premier Doug Ford announced the measures last week.

Until at least Feb. 11, hardware dealers will be limited to offering curbside pickup and delivery, beginning no earlier than 7 a.m. with closing time by 8 p.m. at the latest. At the same time, there will no restrictions on what goods they can offer within those hours, provided that customers place pickup orders before arriving outside.

A week earlier, Quebec faced further restrictions of its own. The province’s manufacturing and construction sectors will avoid a total lockdown during the four-week “shock treatment” initiated by Premier François Legault. They are however being asked to focus on essential goods and projects.

Hardware stores remain on the list of essential businesses. However, they may not sell non-essential items, restricting sales to “essential hardware products required for outdoor maintenance, repair, or construction,” and will have to close at 7:30 p.m. to allow employees to respect the 8 p.m. curfew that has also gone into effect.

At the same time, Quebec is loosening restrictions on curbside pickup. Previously, only essential businesses permitted to remain open for in-person shopping were allowed to offer the service. Now, non-essential businesses are allowed to operate for curbside pickup. The curfew, which extends till 5 a.m. with limited exemptions, will continue until Feb. 8.

In Alberta, more than 800 people were in hospital last week, while the province has seen the death rate exceed 1,300. As numbers spiked following Christmas and New Year, Premier Jason Kenney reinstated lockdown measures that will remain in place until at least Jan. 21. Restrictions include bans on all indoor and outdoor gatherings, while stores can only allow 15 percent capacity.

Fot its part, the Government of Saskatchewan has extended its restrictions on businesses and personal gatherings until at least Jan. 29. Current retail restrictions limit store capacity to 50 percent for both smaller stores and those larger than 20,000 square feet.

Meanwhile, the country waits for vaccine supplies to be administered to Canadians. The federal government has locked in an order from Pfizer-BioNTech for another 20 million doses of its vaccine, doubling the available number of doses. They are expected to arrive in April or May.

Identifying digital gift-giving as a popular option during the pandemic, Home Hardware Stores Ltd. has launched a corporate bulk e-gift card program. Home Hardware’s new program provides clients with a way to recognize employees, support charitable organizations and enhance corporate-run promotions.

According to Home Hardware, the program is aimed at its customers, such as contractors, charities, or other organizations, as a way for those groups to incentivize or reward their employees and local communities.

The program allows corporate clients to purchase digital gift cards in denominations between $5 and $2,000 by filling out an online form at homehardware.ca. Bulk orders receive a discount, which is applied at the time of payment, and customers have the option to include a personalized message. Recipients can instantly use their eGift Card in store by printing it or displaying it on a mobile phone.

The eGift cards can be redeemed at any store under the Home Hardware, Home Building Centre, Home Hardware Building Centre, and Home Furniture banners.

“These gift cards can be used as part of loyalty and incentive programs, charity events, or promotional campaigns,” says Michael Gawtrey, director, loyalty and CRM at Home Hardware Stores. “They are also a simple way to say ‘thank you’ to those who have worked so hard throughout the pandemic.”

Organizations can offer Home Hardware gift cards as safety awards, service awards, consumer promotions, business gifts, sales incentives, or performance recognition.

“Sales for our B2B gift card program have been growing rapidly, and with so many people working from home, we know employers are looking for new ways to say thanks,” Gawtrey adds.

The Western Retail Lumber Association’s Building & Hardware Showcase starts today. And if you’re at your computer or phone and download the app, you can attend.

It also helps to have a copy of the WRLA’s magazine, Yardstick, which provides a directory of products and events. The January issue contains a special section on the show.

Details to download the WRLA app on smartphones or desktops were sent via email to WRLA retail members and exhibitors. The show runs until Jan. 29.

“We wanted to take a fresh approach to the typical virtual events that members have been seeing in 2020,” says Liz Kovach, WRLA president. “Using the tools already at our disposal we’ve adapted them to create an innovative event that allows us to recreate the benefits and show atmosphere of the in-person event.”

While attendees at trade shows always value the face-to-face connections made on the show floor, Kovach says the virtual scenario helps there too. “Vendors and dealers can still form connections, plus staff and companies who often cannot travel to the show can take part this year,” she notes. “We know we can’t replace the complete in-person experience but we’re looking to accomplish the next best thing!”

Through the publication and app, members can participate in any of the 80-plus member “booths,” with company profiles, product info, and staff intros created by the members; new products feature area; show specials; and warehouse sales. The show organizers will also run in-app contests.

Retail members can attend virtual product knowledge sessions hosted by the WRLA and exhibitors during the show. The association is also holding various education sessions on industry and business topics.

The severity of COVID cases in parts of the country has forced some provinces to grapple with a second wave. Through it all, the repair and reno markets surged ahead at break-neck speed, creating a new set of opportunities and challenges.

Eganville Country Depot, a Castle dealer in Eastern Ontario, had enough pressure-treated wood to meet demand through to the end of 2020, based on the bookings done in 2019. The store is affiliated with two other hardware stores, and the trifecta has been able to lean on each other to share inventory.

“We were lucky that last year [2019] when we did our booking for this year’s pressure-treated, that was done well enough that we had enough during the time of COVID because that was one of our big sellers,” says store manager Linda Armstrong. The three stores regularly confer to share product and discuss how bookings should look for the year ahead on everything from lumber to seasonal products.

“You try to keep your stock up in case you have the customers come in, but you don’t overbuy,” she says. “It’s a tough balance.”

Malcolm Firkser (shown above) owns three Home Hardware locations on Toronto’s east end. With 40 years’ experience, he has seen a lot in the business, but nothing compares to managing through a pandemic. Firkser spent last fall preparing for this spring and summer. He hopes the early bookings will pay off in multiple ways.

“We place orders now, which often means we’re getting additional discounts, which includes a profit margin,” he said last fall. “It comes in early, and then we’ve got time to merchandise it without the stress. That’s what helps the morale in the store … It helps getting through the January-February-March syndrome.”

Firkser says he is “conservatively optimistic” about 2021 and is ordering accordingly. He doesn’t expect the extraordinary bump in sales in 2020 to be duplicated this year and is referencing 2019 to gauge forecasting demands.

(This is excerpted from a larger article that appears in the latest issue of our print publication, Hardlines Home Improvement Quarterly magazine. HHIQ was mailed to more than 11,000 dealers across Canada last week.)

At Nicholson and Cates, Brian Roger has been appointed director of sales and marketing – Specialty Building Materials Division. He previously spent nine years as sales manager. In his new role, Roger will be responsible for developing and executing the division’s sales and marketing plans, as well as developing and maintaining relationships with channel partners.

At Regal ideas Inc., Ernie Couillard has been appointed president. Couillard has spent the last 17 years at Regal in sales, marketing, and distribution for the aluminum railing company. Also at Regal, Clifton Phelps was promoted to director of sales, Canada. He had previously spent the last ten years as Ontario sales manager. Quinton Weber has been promoted to director of sales, USA. He was the former regional manager for Regal in the Midwest. Jim Topliss has been named director of commercial development, USA. He has been at Regal for 20 years in a range of key field management positions.

KM Agency has announced the retirement of Jamie Waldren after 15 years of service, effective Dec. 31, 2020. Waldren started in the industry over 30 years ago with Sumner Sporting Goods. He worked for Thornes Hardware, CN Weber, D.H. Howden, and All Star Marketing before joining KM Agency.

… that if you are the designated Company User for your company’s Hardlines subscription, you can update your company subscriber list at any time? Make sure your sub-user list is up to date by following the instructions here. Need to upgrade your subscription to include more users? Email Michelle for assistance. Make sure everyone on your team is in the know!

For retailers benefiting from online, one of the big challenges has been returns. Amazon and Walmart are among e-retailers pioneering the use of artificial intelligence to calculate the costs of returns. The onset of the pandemic has seen that strategy rolled out more widely. In some cases, that means refunding the customer while letting them keep the items for free. Those orders tend toward one of two extremes: either very inexpensive items whose cost is not worth recouping, or bulky and big-ticket purchases with hefty shipping costs.

Home Hardware Stores Ltd. has launched its Inspired Home Collection, a look-book designed to help Canadians visualize kitchen and bathroom projects. The publication is available in print at Home locations across Canada, as well as in digital format on HomeHardware.ca, reebee, and Flipp.

SUPPLIER NEWS

The Building Supply Industry Association of B.C.’s Wave of the Future Product Expo & PK Sessions take place Jan.19 on Zoom. Talks include keynote addresses from Hardlines’ own Michael McLarney, as well as Marv Franz, author of The Inspired Workplace. Product knowledge sessions will cover categories from outdoor living and construction materials to power and hand tools. Click here for more information. 

DX3 Canada, which bills itself as Canada’s largest retail, marketing, and technology event, will hold its 10th edition March 2 to 5, with Hardlines as a media partner. The all-virtual event encompasses a Retail Summit and a Marketing & Innovation Summit. Among the speakers is Cynthia Wong, associate VP, digital product management at Canadian Tire Corp. For more information, including the full lineup, visit the DX3 Canada site. (For a 25% discount, use coupon code HARDLINES25.)

Armstrong World Industries has launched Kanopi, an e-retail site where customers including small businesses can buy Armstrong’s commercial ceiling tiles directly. The site has been online since September and now counts 11 employees. Armstrong spokesperson Jennifer Johnson told Lancaster, Pa.’s LNP newspaper that number is expected to exceed 100 within three years. Kanopi offers “end-to-end” service including delivery to business owners looking to replace tiles or ceilings quickly.

ECONOMIC INDICATORS

Total investment in building construction declined for a third consecutive month, edging down 0.1 percent to $15.3 billion in November. Slight decreases in both residential and non-residential construction led to minimal change overall. Non-residential investment was mostly unchanged in November, remaining at $4.4 billion. Investment in residential construction edged down 0.1 percent in November, declining for the first time in six months. Lower investment in multi-unit dwellings more than offset the growth reported for single-unit investment. (StatCanada)

NOTED

British Columbia led the way in residential building permits in November, based on data from StatCan. Michael Straw, an economist for the agency, told CBC News that a handful of major developments in Vancouver and on Vancouver Island helped to drive the province’s numbers. B.C.’s construction industry also avoided the temporary shutdowns that affected other provinces during the pandemic.

OVERHEARD…

“At Lowe’s, we will be committed to offering everything a homeowner needs to provide a ‘total home solution’ across every area in the home. This includes products and services for everything needed to repair and improve the home, for DIY and pro customers alike, across all décor categories including paint, as well as simple and complex installations.”
—Marvin Ellison, CEO and president of Lowe’s Cos., on his company’s “Total Home” strategy to expand categories and drive market share growth under the pandemic. 

After seeing its online sales increase by more than 200 percent in the third quarter of 2020, Canadian Tire has been paying a lot of attention to its digital assets and online branding. That has included increasing online assortments and improving its website to handle increased traffic.

In a call to analysts on the release of Canadian Tire’s Q3 results, CEO Greg Hicks said that part of the retailer’s strategy now includes online-only vendors. It’s part of an effort to expand Canadian Tire’s relevance in key categories. “Baby and furniture are now our top two categories in online-only sales and will serve as a template as we work to accelerate the growth of online-only sales in 2021,” Hicks explained.

By the end of the third quarter, Canadian Tire’s online sales had exceeded $1 billion and showed an increase of 211 percent over the previous year. Triangle, the company’s loyalty program for all its banners—including SportChek, PartSource and Mark’s—acquired approximately 400,000 new members in the quarter. For its Canadian Tire Retail stores, e-commerce was up 178 percent in the quarter.

In creating online-only assortments, the company is considering them as an extension to the categories in which the retailer already competes in-store, as opposed to entirely new categories, “but that certainly would be an option for us as well,” Hicks added.

Under the disruption to both supply and demand under COVID, Hicks and his merchandise teams have been focused on trying to forecast consumer demand for 2021. “That’s keeping them pretty busy, as opposed to thinking through net new assortments.”

TORBSA has appointed Simon Gouin as VP, business development, reporting to the buying group’s president and board.

“Eastern Canada is a major market within Canada and one that we haven’t put the necessary focus on, in the past,” said chairman Steve Guglietti, of Pro Con Building Supplies Ltd. in Brampton, Ont. “It deserves a dedicated staff member from our organization and we understand the need for a knowledgeable, experienced and truly bilingual individual.”

Gouin brings with him experience on both the retail and vendor sides of the business. He was most recently a senior sales manager at Swiss-based polymer manufacturer Rehau Group and was also a general manager at Scodesign Distribution. Before that, Gouin owned two Home Hardware locations in Quebec for nine years, before selling in 2016.

The new initiative comes amidst other changes that have been taking place at the Bolton, Ont.-based buying group. Last summer, general manager Bob Holmes stepped back as Paul Williams took the reins as president of the group this past summer. Williams worked alongside Holmes until Holmes retired officially at the end of 2020.

Williams has set his sights on some key initiatives to ensure the prosperity of the buying group. One is to build dealer ranks. Williams believes strongly that the group’s lean, no-frills operating model is ideally suited to commercial yards that wish to increase their purchasing power without added costs from marketing or other supports that may be better suited to dealers with a more DIY-based customer.

TORBSA is a relatively small group compared to the likes of TIMBER MART, Castle, Sexton Group or ILDC. It has 26 member locations that generated sales of $576 million in 2019 (source: the latest Hardlines Retail Report—Editor). Williams says, however, that the group’s appeal is not strictly about purchase volumes. It’s about having the right dealers in the group to support vendor programs. The majority of TORBSA members are contractor or commercial dealers, who find strength in the camaraderie shared by the membership, Williams said in an earlier interview with Hardlines.

Since Williams moved into his new position last summer, TORBSA has added a number of new members: Alberta’s Monarch Centres with locations in Calgary, Edmonton, Lethbridge, Red Deer, and Acheson; Rehill Building Supplies in Peterborough, Ont.; A Line Acoustic Supply in Concord, Ont.; and Matériaux de Construction Létourneau, based in Waterville, Que.

Lowe’s Cos. is introducing a “Total Home” strategy to drive growth in its share of the market. The move has no doubt been accelerated by the ability of big boxes to remain open in many North American markets while smaller independents selling narrow product ranges have been deemed “non-essential” and forced to close their doors.

The latest strategy was unveiled at an investor day event early in December. During the COVID crisis, home improvement retail, in general, has seen huge gains, but Lowe’s is playing catch-up in certain categories versus its biggest competitor, Home Depot. Two areas where investors are looking for growth include the contractor market and online sales.

“At Lowe’s, we will be committed to offering everything a homeowner needs to provide a ‘total home solution’ across every area in the home,” said Marvin Ellison, CEO and president of Lowe’s. “This includes products and services for everything needed to repair and improve the home, for DIY and pro customers alike, across all decor categories including paint, as well as simple and complex installations.”

Lowe’s sales to contractors are estimated to be below those at Home Depot, where total sales to pros account for 46 percent of overall revenues. But in their third quarter, Home Depot reported an 80 percent increase in online sales, while Lowe’s showed it was closing the gap by turning in a 106 percent increase.

“Our Total Home strategy will enhance customer engagement and grow market share by intensifying our focus on the pro customer, expanding our online business, modernizing installation services, improving localization efforts, and elevating our product assortment,” Ellison added.

Lowe’s expects total sales to increase by about 22 percent for fiscal 2020.

Dealers and vendors alike have been watching carefully all the changes within Home Hardware as Marianne Thompson has built up a new merchandising team. And Thompson, Home Hardware’s senior vice-president, merchandise, is well aware of that interest.

However, she stresses that the core values of the company remain intact. “The vision has not changed—that is to be Canada’s most trusted home improvement brand.”

She admits that, with more than 1,000 dealers to serve, each of them striving to provide a product mix that suits their respective community, managing that assortment “brings complexity” to her team. “We have to be flexible with that and carry more SKUs in our assortment because we believe in our dealers having that localization of their assortment. It’s what makes them win in their market and makes a customer go to their store in their community.”

And the rise of online selling under the COVID-19 pandemic has added yet another layer of complexity. But Thompson can count on the expertise within her team. Many of the new faces there have been drawn from other large retailers, including Canadian Tire, Lowe’s Canada, and Sobeys.

As a result, Thompson and her team have learned to “double-down” on the e-commerce side of the business. They look for ways to provide a range of products that reflects Home Hardware’s mandate to service all Canadians while staying alert to regional and local needs of the markets Home’s dealers serve.

(This is excerpted from a larger interview with Marianne Thompson that appears in the latest issue of our sister publication, Hardlines Home Improvement Quarterly magazine. HHIQ is being mailed to more than 11,000 dealers across Canada this week.)

The North American Hardware and Paint Association (NHPA) has named its board of directors for the year ahead. The board, which is made up of independent retailers, includes a Canadian: David Dishke, of Grand River Home Hardware in Caledonia, Ont., Dishke’s family started Grand River Home Hardware nearly 50 years ago, and Dishke began working in the store in 1986 at age 15. In 1996, he became manager and part-owner of the business. In 2004, NHPA honoured him as a Young Retailer of the Year. In 2018, he purchased a second store in Hagersville, Ont.

… that our sister publication, Hardlines Dealer News, is designed specifically for dealers and store managers? This monthly e-newsletter has become a valuable tool for stores across the country. You can subscribe at no charge by clicking here. And now you can check out all the back issues here. Happy reading!

Vacuum maker Shop-Vac, which abruptly announced in September it was going out of business, is instead to be acquired by the U.S. subsidiary of a Chinese conglomerate. GreatStar Tools USA, a division of Hangzhou GreatStar Industrial Co. Ltd., plans to retain Shop-Vac’s brand and hire most of the employees laid off from its plant in Williamsport, Penn., to restore production to previous levels. Those workers will however be considered new employees of a company GreatStar is creating to administer the Shop-Vac business.

The Building Supply Industry Association of B.C.’s Wave of the Future Product Expo & PK Sessions take place Jan.19 on Zoom. Talks include keynote addresses from Hardlines’ own Michael McLarney, as well as Marv Franz, author of The Inspired Workplace. Product knowledge sessions will cover categories from outdoor living and construction materials to power and hand tools. Click here for more information and to register.

SUPPLIER NEWS

An Ontario court has agreed with Hudson’s Bay Co. that the “wisdom and efficacy” of Ontario’s retail lockdown rules is “open to question,” but held the province was within its legal rights. Canada’s oldest corporation had complained that Ontario’s definition of essential businesses privileged big boxes like Walmart while encouraging epidemiologically risky behaviour. The pandemic has posed major challenges to HBC, which is currently locked in legal battles with commercial landlords and last month announced its downtown Winnipeg flagship will close in February.

Home Hardware Stores Ltd. has sold off an eight-hectare property in the Waterloo region, near its St. Jacobs, Ont., headquarters, the company confirmed through a spokesperson. The site, which includes the Westhill Meadows Golf Course, was acquired by Home Hardware in 2009 for $3 million. Municipal permissions allow for the property to be used for a building centre.

The U.S. Justice Department and Environmental Protection Agency have reached an agreement with Home Depot that will see the Atlanta-based retail giant pay $20 million in fines. Home Depot is accused of sub-contracting to renovation firms that failed to adhere to required norms when removing lead paint, causing dust and paint chips to spread on work sites. The agreed amount is greater than any other fine paid to date under the U.S. Toxic Substances Control Act.

ECONOMIC INDICATORS

Investment in U.S. construction rose 0.9 percent in November. Spending on residential construction was up 2.7 percent, with the single-family segment logging a 5.1 percent gain. Investment in non-residential declined by 0.8 percent with spending on office building projects taking an 8.1 percent tumble as the work-from-home trend continues. (U.S. Commerce Dept.)

NOTED

Quebec’s manufacturing and construction sectors will avoid a total lockdown during the four-week “shock treatment” announced last week by Premier François Legault. They are however being asked to focus on essential goods and projects. Hardware stores remain on the list of essential businesses, though they may not sell non-essential items and will have to close at 7:30 p.m. to allow employees to respect the new 8 p.m. curfew.

At the same time, the province is loosening restrictions on curbside pickup. Now, even non-essential businesses will be allowed to operate for curbside pickup. The curfew, which extends till 5 a.m. with limited exemptions, will continue until Feb. 8.

OVERHEARD…

“We’re investing in making sure that we have the best assortment online that reflects what our dealers have in their stores.”
—Marianne Thompson, SVP, merchandise for Home Hardware Stores, on how her team is working to meet the challenge of increased online sales over the past several months under COVID.

SPECIAL REPORT — The effects of the COVID-19 pandemic dominated the news in 2020, as they did life in general. Within the industry, one of the most high-profile impacts was on trade shows.

The International Hardware Show in Cologne, Germany was scheduled to happen in March but ended up being postponed in February due to the pandemic. Then, in mid-March, Home Hardware announced the cancellation of its Spring Market. The following month it held a virtual event instead, and its Fall Market was virtual as well.

Also in May, Hardlines announced the 25th anniversary edition of its own Hardlines Conference would not take place as scheduled in the fall of 2020. (We are happy to announce the event is back on for 2021! —Editor)

After postponing its annual event from May to September, the National Hardware Show’s organizers announced in July that it would be replaced with an all-virtual event in 2020. Orgill likewise cancelled its Spring and Fall Dealer Markets, replacing them with two “e-Volution” online buying events. And by the end of the year, the Western Regional Lumber Association and the Atlantic Building Supply Dealers Association had both announced they would not hold in-person events in winter 2021.

Another major theme in the news during 2020 was the evolution of the Ace banner in Canada. The Canadian licence for the Ace brand was acquired by Peavey Industries in March from Lowe’s Canada.

The deal marked a step toward streamlining Lowe’s multi-banner strategy while cementing Alberta-based Peavey’s position as a national player. Peavey had begun 2020 by completing the amalgamation of its TSC stores in Ontario, which it acquired in 2016. The integration of those stores to the Peavey Mart brand began late in 2020 and continues this year.

Initially, Peavey took on hardware sourcing for Ace dealers, while previous licensee Lowe’s Canada continued to meet their lumber needs under a transitional agreement. In November, however, Peavey and Sexton Group announced a partnership that would see the buying group step in as Ace Canada’s LBM wholesaler.

Personnel changes are always hot stories for Hardlines readers, and the past year was no exception. Canadian Tire Corp. named Greg Hicks as CEO in mid-March, just in time to hit the ground running managing the company’s pandemic response. He was succeeded in the spring as president of Canadian Tire Retail by TJ Flood, previously president of the FGL Sports division.

At Lowe’s Canada, the highly anticipated appointment of former CEO and President Sylvain Prud’homme’s successor was announced in January. The company brought in Tony Hurst from U.S. parent Lowe’s Cos. Tony Cioffi had headed Lowe’s Canada on an interim basis following Prud’homme’s departure.

Home Hardware saw a major shakeup in its merchandising team, which was consolidated under Marianne Thompson as senior VP after the departure of merchandise hardlines VP Joel Marks in early summer. Thompson brought in a new team of directors, all of them recruited from outside the company, in a break with Home Hardware’s usual practice.

All these changes will position the major retail groups for further growth in 2021. Hardlines will be there to report on them as their stories unfold.

WORLD HEADQUARTERS, Toronto — The 25th anniversary Hardlines Conference is a go. After this landmark conference was delayed by COVID-19 in 2020, we are excited to announce confirmed dates for this year. The conference will be held on Oct. 19 and 20 at Queen’s Landing in Niagara-on-the-Lake, Ont.

With the date so far out, the organizers (wait, that’s us! —Editor) are confident that enough normalcy will have been restored, with widespread vaccinations expected for all Canadians by September. And some of the industry’s top leaders agree with us.

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

• Kevin Macnab, President and CEO, Home Hardware Stores
• Doug Anderson, President and CEO, Peavey Industries;
• Jamal Hamad, Sr. Director Contractor Services Sales and Operations Pro-Rental-MRO-Home Services at Home Depot Canada;
• Drew Green, CEO of clothing chain Indochino;
• Sascha Jamal, Director, SAJ Consulting; and
• Peter Norman, economist and VP at Altus Group.

With the inclusion of Home Hardware’s Macnab, Anderson from Peavey, and Hamad from Home Depot Canada, attendees are guaranteed to get insights first-hand from some of the industry’s leading home improvement retailers. Macnab has been leading a huge transition at Home Hardware that aims to position the company for growth well into the 21st century. Anderson has made Peavey a household name in this industry, first with the acquisition of TSC Stores and then with the takeover of Ace in Canada.

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

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

Rounding out the Hardlines Conference, we’ll hear from our leading housing and economic advisor, Peter Norman of Altus Group. And in this time of supply chain disruption, global supply chain expert Sascha Jamal will outline how overseas supply has been disrupted by rising prices, new markets, and, of course, the pandemic.

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

SPECIAL REPORT — Online shopping will continue to grow, without dampening customers’ eagerness to return to in-person shopping. That was the consensus of a virtual talk last month between the Retail Council of Canada’s Diane Brisebois and Michael Ward, CEO and chief sustainability officer of IKEA Canada.

“Click and collect is a winner,” said Ward. “People love it.”

At the same time, “consumers want to go back to stores,” said Brisebois. “How do you change your store environment and your merchandising so that customers want to go back in? What makes sense in a bricks-and-mortar environment? … As we look to the future, we’re quite hopeful for bricks and mortar. But there’s no question we’ll see a lot of new tech.” That pivot, she added, has already begun.

“I don’t think it’s one or the other,” Ward agreed. “We’ve always been clear this is an omnichannel strategy.” An on-the-spot poll of the Zoom audience echoed that view. Eighty-four percent of respondents indicated that they planned a mix of online and in-person shopping for the holidays. Ward noted that IKEA has “an advantage because our buildings are big” and can be used for fulfillment.

Large retailers, however, aren’t alone in benefiting from this new mixed-economy reality. Last spring, as governments ordered businesses in many areas to limit themselves to curbside pickup of remote orders, it was their small size that allowed many independents to adapt more nimbly to the change.

Also, at banners that have smaller formats, such as Ace and Home Hardware, online ordering allows stores with limited retail space to offer a wider selection of big-ticket items like appliances.

ATLANTA — As the impact of the COVID-19 crisis continued to grow across North America through the fall of 2020, The Home Depot faced “unprecedented demand,” according to Craig Menear, the company’s chairman and CEO. That demand was met by fine-tuning every aspect of the business.

“Actions we have taken across our supply chain, in our stores, and in partnership with our suppliers have helped us to improve in-stock levels, reduce lead times, better manage in-store replenishment, and improve fulfillment options and delivery times,” he said in a call to analysts.

President and COO Ted Decker expanded on Menear’s comments. He noted that the crisis required a close look at what products were being sold—and how. “The actions we took include adjusting our assortments and planograms, introducing alternative products and, in some cases, reducing the numbers of SKUs in certain categories to focus on the highest-demand products.”

Home Depot continues to strengthen its distribution network to get product into stores and to the growing ranks of pro dealers in its customer base. That has included the mechanization of its rapid deployment centre network. “We’ve now implemented mechanized floor loading in two-thirds of our facilities, meaningfully improving our productivity in those buildings.”

These improvements have resulted in reduced product lead times and continued improvement in Home Depot’s in-stock positions, Decker said.

During the call, the execs admitted the company may have lost sales due to stock outages during the period, though Decker said Home Depot faced that more in its second quarter. (Home Depot’s third quarter ended Oct. 31, unlike many other retailers that ended their quarter at the end of September.)

Though stock levels were not perfect by the third quarter, Decker said the period saw “incredible improvement” overall, with inventory up more than $400 million over the same time a year earlier.

The transition of the new leadership at TORBSA has been finalized. Former General Manager Bob Holmes retired officially at the end of 2020, making way for Paul Williams, previously Ontario regional manager for CGC Inc., who took the reins as president of the Bolton, Ont.-based buying group this past summer. Holmes sent a note to members and suppliers expressing “what a sincere pleasure it has been to have partnered with you over these many years and to thank you for helping me achieve many of my personal and corporate goals.” You can contact him at homer.eh@gmail.com. Williams can be reached at paul@torbsa.com.

… that the 25th anniversary Hardlines Conference will be held Oct. 19 and 20 at Queen’s Landing in Niagara-on-the-Lake, Ont.? Add this to your calendar now! Click here for more info.

VAUGHAN, Ont. — TIMBER MART has announced the addition of Quincaillerie J.D. Lafontaine as the fifth Quebec dealer to join the buying group in 2020. The business has served the Gaspésie community of Sainte-Anne-des-Monts for more than 40 years. It covers a 40,000-square-foot store and warehouse.

SASKATOON — Federated Co-operatives Ltd. reported revenues of $7.9 billion for the financial year ending October 31, 2020, with earnings of $177 million. From these earnings, FCL returned $117.5 million to local Co-ops across Western Canada. The company enjoyed strong results in the food, home, and building and agriculture business lines, but these were not enough to offset declines in the energy sector.

BOUCHERVILLE, Que. — The new RONA Des Ormeaux store in Montreal is now open. Contractors and dealer-owners Pascal Ferland, François Tremblay, and Simon St-Laurent are also co-owners of the RONA Oka and RONA Villeray stores. The new location is the result of an investment of more than $1 million and several months of work.

TORONTO — Canadian Tire CEO Greg Hicks took the reins of the iconic company just in time to contend with the outbreak of COVID-19, as he relates in a new interview with the Globe and Mail. Ontario Premier Doug Ford announced the closure of the province’s schools on Hicks’s first full day on the job. One of the priorities of his tenure has been to raise the profile of Canadian Tire’s owned brands, which make up more than $4 billion in sales and more than a quarter of the CTC’s revenues.

ATLANTA — With the DIY boom still going strong months into the pandemic, The Home Depot is making a major investment in home décor e-retail. The recently launched HD Home collection encompasses everything from furniture to wall treatments and cookware.

SEATTLE — Amazon has opened a pickup depot in the Nunavut capital of Iqaluit, which the e-retail giant says will allow it to cut delivery times in the region. Amazon Prime customers can now select the pickup location at checkout and expect their parcels in three to five days instead of two or three weeks. Amazon is teaming up with Inuit-owned airline Canadian North, which will fly Amazon Prime orders in dedicated cargo space on flights every Wednesday and Sunday.

DELFT, Netherlands — IKEA has ceased publication of its famous print catalogue after more than 70 years. “Times are changing,” the company said in a statement. “IKEA is transforming its business model to become more accessible and digital while embracing new ways to connect with more people.” By 2016, more than 200 million copies of the catalogue were being printed annually in 32 languages. But the trend toward online buying, hastened by COVID-19, has diminished the print catalogue’s utility.

SUPPLIER NEWS

SURREY, B.C. — The B.C. Building Supply Industry Association is offering a Christmas bonus for the industry with thousands of dollars in prizes donated by more than 35 sponsors and presenters. Participants in the BSIA 2021 Wave of the Future – Product Expo & PK Sessions on Jan. 19 will have several chances to win each hour. Discounted ticket registration will be available to all, with proceeds going to the BSIA Bursary Fund.

ECONOMIC INDICATORS

The total value of building permits rose 12.9 percent to $9.4 billion in November, the third-highest value on record. Much of this growth was led by large permits for multi-family dwellings in British Columbia and Ontario and an office building in the city of Toronto. The value of residential permits rose to new heights in November, increasing 10 percent. Every province posted gains in this sector except for Nova Scotia and Prince Edward Island, which reported slight declines. (StatCan)

Sales of existing U.S. homes in November declined for the first time in six months, falling 2.5 percent. However, compared to last November, sales were up 25.8 percent. High demand and increasingly tight supply have combined to drive the median house price up by more than 14 percent. (National Association of Realtors)

Housing starts in the U.S. rose by 1.2 percent in November to a seasonally adjusted annual rate of 1.55 million units. Meanwhile, October’s increase was revised up from 4.9 percent to 6.3 percent. (U.S. Census Bureau)

OVERHEARD…

“My philosophy is all about wanting to help people. Whether it’s a small project or a large project with a contractor or a homeowner, we’re interested in helping people. That’s what drives me.”
—Matthew Payzant, general manager, Payzant Home Hardware Building Centre, Lower Sackville, N.S.