TORONTO — The Home Depot Foundation Canada has wrapped up this year’s Orange Door Project fundraiser. Home Depot customers who donated to the campaign will support housing and programs for at-risk and homeless youth across Canada.

Through the Orange Door Project, The Home Depot Canada Foundation supports 125 organizations fighting youth homelessness. The Home Depot Canada will also donate $364,000, or $2,000 on behalf of each of its 182 stores, to help charitable organizations address the impact of COVID-19.

“This pandemic has been devastating for our partners and the youth they support, and while we continue to support them during this time, youth are facing more barriers to access than ever before,” said Pamela O’Rourke, who is VP of merchandising at The Home Depot Canada and chair of The Home Depot Canada Foundation’s board.

All stores have been participating in the Orange Door Project since the beginning of December, with the funds raised by each location staying within their local communities. Since the program’s inception in 2009, Home Depot has raised $13 million.

The roots of the Foundation’s chosen cause go right back to the wishes of Home Depot workers themselves. When polled some years ago to determine which charities or causes to support, the associates felt strongly about the fact that upwards of 6,000 young people can be without a place to sleep every night. Investing in this younger generation emerged as the cause of choice for the Foundation.

Home Depot’s charity partners have seen an increase in demand for their services since COVID-19 hit. And with the added costs and stresses under the pandemic, many benefactors have pulled back their support.

“Home Depot was the first to step up and say, we’ll continue to provide for people in need,” says Michael Braithwaite, CEO of Blue Door, an organization that provides emergency housing for homeless youth in the York Region north of Toronto.

Braithwaite notes the local Home Depot store stays connected with his organization beyond the Christmas campaign. That includes materials and volunteer labour from store associates. “The relationship continues and the store helps year-round for our other efforts,” he adds. “There’s a pride of community for that store.”

MONTREAL — Lowe’s completed the rollout of Solum electronic shelf labels (ESL) in all U.S. stores and has begun installing them in select Canadian Lowe’s locations, beginning with the appliance department through last month.

Richard Emery, president of Self Edge Solutions, Solum’s premier distributor in Canada, did not share what categories are next, or when they would be implemented. Lowe’s Canada did confirm it is currently working with Solum for a nationwide rollout of ESL in its corporate stores. After the initial rollout in the appliance departments of its Lowe’s stores, the technology will be extended to other departments later in 2021. Deployment in select RONA corporate stores will take place in January 2021, and select Réno-Dépôt stores through March and April 2021.

However, Solum faces an incumbent in its expansion efforts. JRTech Solutions is a Montreal-based company that is the preferred partner in Canada for its Pricer digital price tags. It has been rolling out the electronic label technology to stores in Eastern Canada for years. Already, its ESL is in some 400 hardware and building supply locations in this country. About half of those stores are BMR dealers, firmly establishing JRTech’s presence in the province of Quebec. But the company also has dealers in Ontario and the Maritimes using its technology.

According to Diego Mazzone, president and CEO of JRTech Solutions, JRTech is also in Lowe’s Canada stores, having been there since 2014. These are former RONA affiliate stores, in Blainville and Ste-Thérèse, that were part of the later buyout by Lowe’s Canada. The JRTech system in those stores will not be changed out, Lowe’s confirms.

Mazzone says his company has begun installing its labels in Canadian Tire as well. Its Pricer labels are in 60 Canadian Tire stores already and another 100 to 200 are expected to be added through 2021.

Mazzone has seen acceptance among larger chains, such as Patrick Morin, which has two dozen stores in Quebec, as well as Home Hardware stores and other independents. Most recently, JRTech finished a rollout in the three stores in the Laferté chain just before Christmas. Laferté is a member of Independent Lumber Dealers Co-operative.

Smaller dealers are seeing the value of investing in ESL, he says, especially as interconnected selling through both online and bricks-and-mortar channels has accelerated during COVID. Dealers who wish to change their pricing in response to lower prices that appear online have the capability with ESL.

“ESL can digitize a dealer’s products in real-time to compete with the dynamic pricing online,” Mazzone says. “This is changing the paradigm of retail.”

RED DEER — Since taking over the licence for Ace Hardware in Canada last spring, Peavey Industries has been working to bring the full force of that brand to bear for its Ace-bannered dealers.

That includes providing Ace-branded products for the stores, to round out their assortments with pricing that can help them compete with larger chains. The Ace name is especially strong in tools, a category Peavey wants to exploit. The deal with Ace falls under the Ace International division, so Peavey has access to products coming directly out of Ace’s factories in Asia.

Another important brand for Ace is Craftsman. “We’re going to maintain that brand,” says Scott Bennett, senior vice president of merchandising for Ace Canada. “We wanted to make sure we protected the dealer with any of the big national brands already in place.” Craftsman will remain exclusive for the Ace dealers under Peavey.

But, Bennett adds, Peavey has some of its own private brands. The brands are licensed under Mid-States Distributing Company, a buying group representing 36 farm and ranch retailers, of which Peavey is the only Canadian member. Bennett says four brands in particular are popular at Peavey: Wildology, a premium pet food line; Harvest King, which includes motor oils and additives; heavy equipment under the Black Diamond name, which includes products like log splitters and 60-gallon compressors; and Noble Outfitters.

Peavey also has a range of brands of its own that includes consumables such as fertilizer and grass seed, as well as dog and cat food lines. Those products, already in Peavey Mart stores and MainStreet Hardware outlets, will be made available to Ace dealers as well. “We work hard on our private labels. We’re trying to bring good value to the Ace dealers,” Scott adds.

Peavey held its first-ever buying show for the Ace dealers at the end of September last year. The two-day virtual event brought more than 150 vendors together with almost 100 Ace dealers.

ST. JACOBS, Ont. — Consumer demand has changed a lot under COVID, and product assortments have changed to match those expectations. At Home Hardware Stores Ltd., the company worked hard over the past several months to keep pace with surges in demand, complicated by supply chain disruptions that caused ongoing product shortages.

According to Marianne Thompson, SVP merchandise at Home Hardware, demand was high across a range of categories, with a surge through the spring and summer in forest products, flooring, seasonal, yard maintenance, and canning. Products that lent themselves to easy fixups and cosmetic enhancements by DIYers, such as paint and stain, were especially strong categories, says Thompson.

Flooring also ended up taking off as well. “It’s a category that is both DIY and pro and we’ve definitely seen a real pickup in what we call DIY flooring.”

Looking long term, she says, products that reflect Home Hardware dealers’ growing sales with the contractor segment are gaining momentum.

“Lumber and building materials have, for us, continued to grow. Our dealer-owners have such strong relationships with the pros in each of their communities,” Thompson says. “We help build homes across the country and, regardless of the pandemic, that business has been growing.”

When asked what lessons she’s learned under COVID, Thompson noted the importance of getting people what they want amidst disruption. This has resulted in Home Hardware being able to “double-down on the e-commerce side of the business,” she says. “Through the pandemic, we’ve learned a lot about consumer behaviour and for us, it’s about providing the customers what they want, when they want it, and how they want it. So obviously we’re investing heavily in e-commerce.

“We’re investing in making sure that we have the best assortment online that reflects what our dealers have in their stores.”

Brian Straus has joined RTS Companies Inc. in St. Clements, Ont., as RTS corporate sales and marketing. Formerly director, merchandise hardlines at Home Hardware Stores Ltd., he spent a total of 26 years there, mainly in merchandise roles.

Willmar Windows founder Bill Fast is among the latest appointees to the Order of Canada, with the rank of Member. Fast got his start in the window business working for his father-in-law at Allmar Distributors. He and his wife Margaret bought Allmar’s window division in 1970, renaming it Willmar. Jeld-Wen bought the business in 1997 and continues to manufacture the Willmar Collection of windows.

BMR Group has named Stephany Robinson as advisor, strategy and dealer integration. She has been part of BMR’s business development team for the past four years.

… that the 25th annual Hardlines Conference is a go for 2021? That’s right, the conference will be held on October 19 and 20 at the Queen’s Landing in Niagara-on-the-Lake, Ont. It’s Canada’s only national event for all banners and vendors in the retail home improvement industry, so you won’t want to miss it!

BOUCHERVILLE, Que. — More than 400 associates of Lowe’s Canada took part this month in the 2020 Opération Père Noël campaign. Some 900 gifts will be distributed throughout Montreal’s South Shore and elsewhere in Quebec. This year both affiliate dealers and members of the corporate head office participated. A total of 17 corporate and affiliated stores served as drop-off points to collect gifts from the community.

ST. JACOBS, Ont. — Home Hardware Stores Ltd. has launched a corporate bulk e-gift card program. The program allows corporate clients to purchase digital gift cards in any denomination 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.

MISSISSAUGA, Ont. — Castle Building Centres has added Hayduk Lumber & Hardware Ltd. in Calmar, Alta., is its newest member-dealer. Brent Hayduk, whose father established the business nearly 90 years ago, took ownership 40 years ago.

BOLTON, Ont. — Alberta’s Monarch Centres is the newest shareholder member of TORBSA. With locations are Calgary, Edmonton, Lethbridge, Red Deer, and Acheson, Monarch has provided building materials to the Alberta marketplace for more than 20 years.

QUEBEC CITY — The Cité 3000 project in Contrecœur, Que., will break ground in 2021 with the construction of a Canac warehouse and store, the city and its partners have announced. The Cité 3000 commercial hub is part of Quebec’s maritime strategy, which calls for the development of the Contrecœur-Varennes industrial port zone. Construction of Canac’s 32nd branch is expected to start next summer.

SUPPLIER NEWS

COLOGNE, Germany — Trade show organizer Koelnmesse has cancelled the 2021 edition of Eisenwarenmesse, the International Hardware Show, which was planned for Feb. 21 to 24. The hybrid event was already postponed from 2020.

COPENHAGEN — Rockwool Group has unveiled its new carbon emissions reduction goals, which amount to a one-third decrease in its life cycle greenhouse gas emissions by 2034. The plan has been verified by the Science Based Targets Initiative, a joint project of organizations including the UN Global Compact and the World Wildlife Fund.

CANDIAC, Que. — Fenplast has acquired all shares of Fenêtres Drummond of Drummondville, Que., including its manufacturing business, Fenêtres Contemporaines. Fenplast was founded in 1989 and today unites more than 80 independent dealers of doors and windows. Fenêtres Drummond has been owned by Isabelle and Michael Bahl for the past 40 years.

NOTED

Retail sales rose 1.1 percent to $53.9 billion in September, the fifth consecutive monthly increase since the record decline in April. Sales of building materials and garden equipment and supplies came to $3.82 billion, an increase of 0.9 percent from August and up 19.5 percent from September 2019. (StatCan)

ECONOMIC INDICATORS

Sales of existing homes in Canada edged down by 1.6 percent monthly in November, yet continued to run well above historical levels. Activity was up 32.1 percent year-over-year, matching October’s gain. For the fifth straight month, year-over-year sales activity was up in almost all Canadian housing markets. (Canadian Real Estate Association)

The seasonally adjusted annual rate of housing starts in Canada was 246,033 units in November, up 14.4 percent from 215,134 units in October. The SAAR of urban starts for the month rose by 15 percent. Multiple urban starts increased by 22.5 percent, while single-detached urban starts decreased by 3.8 percent. (CMHC)

NOTED

The Canadian Federation of Independent Business has estimated that 225,000 Canadian businesses may permanently close due to COVID-19.

OVERHEARD…

“If you are in bricks-and-mortar, you have to look at all your outlets for selling. You have to be fluid.”
—Diego Mazzone, CEO of JRTech Solutions, on the value of dealers adopting electronic shelf tags to maintain dynamic pricing in their stores as a way to compete more effectively against online sales.

BURNABY, B.C. — Taiga Building Products has developed an online B2B ordering, catalogue and administrative platform. Branded as TaigaNow, it allows for placement of orders with internet access.

According to Russ Permann, Taiga’s COO and EVP operations, the program has been in the works for six years, as the wholesaler has committed to moving to online sales. He admits the company examined the move carefully, evaluating how important e-commerce would be in a B2B environment. But with a younger generation of dealers taking over the industry, the move proved both practical and inevitable. “This cohort is completely comfortable shopping online and wants to be there,” Permann says.

The company tested TaigaNow initially by making it available to customers served by the wholesaler’s Calgary and Saskatoon branches. Early in 2021, the initiative will be rolled out to Taiga’s 13 other distribution centres across Canada. Dealers will be able to access the inventory of any Taiga DC to find out exactly what’s available.

When the dealers place an order, the system even generates all necessary shipping documents, making TaigaNow accessible to anyone in the store. And like any type of online shopping, it’s available around the clock. “It’s a pretty straightforward process,” Permann says. The goal down the road, he notes, is to be able to integrate Taiga’s e-commerce functionality with the POS systems of the dealers themselves.

“The backbone of TaigaNow is this automation of the distribution process,” Permann adds.

The rollout comes amidst a planned restructuring within Taiga’s executive team. Effective January 1, Permann will assume the role of co-CEO, as Trent Balog, Taiga’s current CEO and president, plans to step back at the end of this year. He will serve as co-CEO alongside Permann through 2021. After that time, Permann will take over as Taiga’s sole CEO.

INTERNATIONAL REPORT — In 2019, the worldwide retail home improvement market reached $958 billion in sales, an increase of 4.2 percent compared to the previous year, says the latest edition of the Global Home Improvement Report 2020.

The report, produced by the combined European and global retail home improvement association EDRA/GHIN, reveals that Canada ranks as the number-three home improvement market by sales, after the U.S. and Germany.

North America and Europe combined represent 86 percent of this market—58 percent and 28 percent respectively—even though their collective populations account for only 16 percent of the world population. The retail home improvement markets of these two continents reached $829 billion, an increase of 3.7 over 2018.

The combined sales power of the North American market totalled almost $550 billion, says the report. Canada represented about $53 billion, making it number three on the world stage after the U.S. and Germany. The U.S. alone weighed in with $496 billion in sales. North America also had the highest average expenditure per capita in 2019, at $1,507 per person in the U.S. and $1,398 in Canada.

Approximately 81 percent of the Global DIY market is concentrated in only eight countries: the USA, Germany, Canada, Japan, United Kingdom, France, Australia and Italy. Moreover, the three major markets in Europe—Germany, France and the UK—represent 50 percent of the continent’s sales.

The top 10 major home improvement retailers worldwide are The Home Depot, Lowe’s Cos., Adeo in France, the UK’s Kingfisher, Menards in the U.S., Bunnings in Australia, OBI and Bauhaus—both in Germany—Ace Hardware and Chile’s Sodimac. Home Depot and Lowe’s together account for 26.3 percent of the global market share.

More detailed information, including a global analysis, detailed data on 50 of the largest retail home improvement markets and the top 10 home improvement groups worldwide, is contained in the latest edition of the Global Home Improvement Report 2020.

Want the full report? You can order it here.)

SPECIAL REPORT — Big box retailers are adapting to changes in the holiday shopping season by encouraging customers to look to them for housewares. And the likes of Home Depot Canada (whose website assortments are shown here) and Lowe’s Canada are offering fashion trend guidance to reinforce their positioning. 

Black Friday, long a mainstay of the annual U.S. retail business cycle, has been in flux in recent years. The boom in online sales growth has helped to morph the event from a single-day rush to bricks-and-mortar stores into an extended season of in-store and online deals.

In that sense, the outbreak of COVID-19 has only accelerated a trend already in motion. With big sales events that encourage surges in store traffic not feasible under widespread lockdowns, retailers are pursuing a longer season of promotions leading into the holidays.

As part of that shift, retailers including the big boxes are positioning themselves as destinations for a number of housewares and home décor categories outside the traditional hardlines ranges.

Home Depot’s Fall + Winter 2020 Look Book reflects this shift—and highlights it with a series of design themes. “Mid-Century Modern” features natural wood with subtle colour accents in shades of beige and matte blues and greens. Offerings include coloured Thomasville Cabinetry items, exclusive to the banner, for kitchens.

In plumbing, customers can choose between dark-toned faucets by Moen and Vigo and a variety of gold accessories from brands including Pfizer, Moen and Delta.

Another design theme, “Modern Farmhouse,” evokes the rustic charms of reclaimed wood furniture and sliding barn doors. Products include sinks from Kohler and Vigo and flooring by OptiWood. In the “Soft Industrial” style profile, concrete textured vanities meet contrasting countertops in blacks, whites and natural wood tones.

Meanwhile, Lowe’s unveiled a gallery of four seasonal design themes for the kitchen or bathroom. The “Collected” kitchen is all about maximalism. Surfaces like porcelain and granite are offset by intense accents of bronze and black. Wood and granite also feature in the “Refined” collection, which offers a clean, casual look, characterized by whites and greens.

The “Lavish” bathroom is described as “Global-inspired”, with elements of a “70s glam” look. Dramatic shades of blue, green and violet pair with white and gold plumbing fixtures. The “Raw” look combines mid-century modern with irregular textures. Once again, wood grain and marble-effect porcelain are seen alongside bold black faucets and lighting pieces.

With so many trends on offer, big boxes stand to compete with housewares retailers, department stores and local hardware stores as décor destinations.

CHICAGO — The spread of the coronavirus has had a debilitating effect on bricks-and-mortar retail sales in the U.S. that are expected to decline by 10.5 percent this year. The silver lining has been e-commerce, which is projected to rise by 18 percent in 2020 and account for 14.5 percent of total retail sales, according to emarketer.com.

The Home Improvement eRetailer Summit, scheduled for March 7 to 9, 2021 at the Aloft Chicago Downtown River North hotel, has designed its agenda with an eye toward providing insight into future market conditions and tools to help dealers plan for and respond to those conditions proactively.

“The summit has always strived to keep its attendees ahead of the curve, and we believe our upcoming agenda will again meet the high bar we’ve set,” says Sonya Ruff Jarvis, the summit’s founder.

In comparison to many other industry events, the Home Improvement eRetailer Summit prides itself on being less formal and more participatory. It limits attendees to 100 people, resulting in a program that is welcoming and interactive.

The summit has also earmarked a session that identifies the five top retail tech trends and predicts which are likely to be temporary and which will endure. Supply-chain management is a pillar in any successful e-commerce strategy. There will be two sessions on this topic.

Most important, there will be ample opportunities for attendees and sponsors to network. “We believe our agenda will stimulate a lot of discussion during the Q&As and networking periods,” says Ruff Jarvis.

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

Jean Piuze has been appointed president of SJM Group, whose holdings include store fixture and storage system maker Equipement Boni Inc. Puize’s mandate in the role will include refining the vision and focus of SJM Group and establishing its growth strategies. He joined in 2000.

… that just two provinces account for more than half of all retail home improvement sales in Canada? Or that one retailer has twice the share of the market in British Columbia than the nearest competitor? It’s all in the new Hardlines Market Share Report. Hardlines subscribers save more than 20 percent on pricing, so be sure and take advantage of this! Click here now to learn more and order yours!

BOUCHERVILLE, Que. — BMR Group is currently working on the rollout of a new business management system at its head office. The deployment of this enterprise resource planning (ERP) software by Solstice is getting ready to go live. ERP can connect the day-to-day business activities of everything from accounting and procurement to project planning and supply chain management.

VAUGHAN, Ont. — TIMBER MART’s newest member is Matériaux Audet, with locations in Quebec City and Saint-Marc-des-Carrières. “TIMBER MART will provide us with the buying power we need to be more competitive in our key categories and the freedom to grow our business the way we feel is best,” said Mario Audet, who is co-owner of the business along with Marie-Claire Audet. Matériaux Audet has operated for more than 70 years. Its two locations are supported by some 80 staff and a fleet of 15 trucks.

OAK BROOK, Ill. — Ace Hardware Corp. reported record Q3 sales and profits. Revenues of $2 billion represented an increase of $470.4 million, or 30.7 percent, from the comparable period in 2019. Net income for the quarter was $98.7 million, up $38.2 million from a year prior. U.S. same-store-sales increased by 28.9 percent, while sales via the online channel surged by 221 percent.

BRAMPTON, Ont. — Loblaw Cos. has teamed up with California-based startup Gatik AI to launch an autonomous delivery service beginning in January. Five Ford Transit 350 trucks, equipped with Gatik’s self-driving technology, will operate on fixed routes from Loblaw’s automated picking facility to Toronto-area stores.

SUPPLIER NEWS

SURREY, B.C. — The Building Supply Industry Association of B.C. is hosting its first product-centred online conference on January 19. With more than 30 sponsors, “BSIA 2021 Wave of the Future – Product Expo and PK Sessions” will feature presentations from companies including CanWel, EAB, TIMBER MART, King Marketing, Sexton Group and Hardlines. Several draws for prizes will be held each hour. (Click here for information and to register.)

VANCOUVER & TORONTO — West Fraser Timber Co. is acquiring all outstanding common shares of Norbord Inc., reportedly the world’s largest OSB producer. The all-stock transaction is valued at approximately $4 billion. Following closing, the combined company will operate as West Fraser. The company will continue to be led by West Fraser President and CEO Raymond Ferris, and CFO Chris Virostek.

NATIONAL REPORT — A growing number of platforms are offering e-retail customers the chance to pay for purchases in instalments, while assuming the risks on behalf of merchants. According to CBC News, services such as Afterpay, PayBright, Sezzle and Affirm charge lower fees—in some cases, none at all to the customer. Afterpay, for example, is free for consumers. Retailers pay a fee of four to six percent of the sale, and in return Afterpay pays them up front, assuming the risk of non-payment on the customer’s part.

VALLEYFIELD, Que. — Matériaux Pont-Masson, through its sister business, Structure du Nord, has acquired a site in Beauharnois for its roof truss manufacturing. The new plant will be used to manufacture roof trusses and distribute engineered wood products such as joists, LVL beams and columns.

STOCKHOLM — Husqvarna Group’s Construction Division has signed an agreement to acquire Blastrac, an international provider of surface preparation technologies for the global construction and remediation industry. The companies are aiming to close the deal, subject to approval by competition regulators, by the end of 2020.

NOTED

Retail sales rose 1.1 percent to $53.9 billion in September, the fifth consecutive monthly increase since the record decline in April. Sales of building materials and garden equipment and supplies came to $3.82 billion, an increase of 0.9 percent from August and up 19.5 percent from September 2019. (StatCan)

NOTED

The pandemic has shone a spotlight on the challenges facing small local merchants. According to Retail Council of Canada’s annual national Holiday Shopping Survey, 90 percent of survey respondents said it was important to buy from a retailer within Canada this holiday season. The average planned spend this Christmas is $693, down from $792 last year.

LONDON, Ont. — Peavey Industries has converted the first TSC stores in Ontario to the Peavey Mart banner.

Red Deer, Alta.-based Peavey completed its acquisition of the TSC chain at the end of 2017, adding 50-plus stores to its existing network of 36 Peavey Marts in Western Canada.

Three TSC sites got the new signs earlier this month, all of them in London. The stores are close to the original TSC headquarters, based in this city in Southwestern Ontario. That location now serves as another office and second distribution centre for the network of stores under the Peavey umbrella, which consists of Peavey Mart, MainStreet Hardware and Ace.

Today, the company starts conversions on the stores in Tillsonburg, Goderich and Brantford. These will be completed by week’s end.

The switch has met with some consumer resistance, however. Jest Sidloski, vice president of marketing, customer experience and e-commerce for Peavey Industries, says social media has lit up wondering just what Peavey Mart is all about. Some even think it’s a U.S. brand. But, Sidloski notes, the Peavey Mart name is very strong in Western Canada and he’s confident that it will catch on. “People in Ontario are not aware of us, but we are as Canadian as you can get.”

The company plans to have three-quarters of the TSC locations converted by the end of the year at a rate of about three stores a week. The remaining sites, mainly in areas of Northern Ontario, will be switched early in 2021.

ATLANTA — Months into the pandemic, consumer investment in home projects continues to boom, leading Home Depot’s third-quarter sales to surge by 24 percent.

Home Depot’s earnings of $3.18 per share were up from $2.53 a year earlier. And just days before the company reported its Q3 earnings, it announced the acquisition of commercial supplier HD Supply.

Sales for the third quarter grew $6.3 billion to $33.5 billion, up 23.2 percent from last year. Comp sales were up 24.1 percent, with U.S. comps positive 24.6 percent.  Canada posted double-digit positive comps that were above the company average. That growth included sales to both DIY and contractor customers.

Home Depot’s online sales remained strong through the quarter. Through its interconnected retail strategy, Home Depot saw an increasing number of those sales fulfilled through its stores. “Sales leveraging our digital platforms increased approximately 80 percent versus the third quarter last year and approximately 60 percent of online orders were fulfilled through a store,” said Craig Menear, chairman and CEO.

During the quarter, the company continued to support its workers with enhanced benefits in response to COVID-19. Those benefits amounted to about $355 million. The company’s ongoing wage top-ups are being turned into permanent compensation enhancements for front-line, hourly associates. This will result in approximately $1 billion of incremental compensation on an annualized basis.

Overall, the costs to the company from the pandemic in the quarter added up to about $60 million. That included personal protective equipment for staff and customers and enhanced cleaning measures for the stores.

MOORESVILLE, N.C. — One day after the release of its biggest competitor’s results, Lowe’s Cos. reported strong results of its own. Solid gains in its third quarter included 15 percent growth in all merchandising departments, 20-plus percent growth across all geographic regions and triple-digit online growth.

Sales rose to $22.31 billion from $17.39 billion in Q3 of 2019, up a healthy 28 percent. Same-store sales surged by 30.1 percent, while comps in the U.S. were up 30.4 percent. Online sales for the quarter were up a whopping 106 percent.

Q3 net income actually fell to $692 million ($0.91 per share), however, from $1.05 billion ($1.36 per share) a year prior. Accounting for a $1.1 billion pre-tax loss from debt payments, earnings were $1.98 per share.

Fifteen merchandising departments generated positive comps exceeding 15 percent, the company reported. Lumber led the way, again driven by strong demand across pro and DIY customers and supported by Lowe’s continued investments in job lot quantities.

In addition to lumber, the retailer saw above average comps in décor, lawn and garden—especially live goods and landscaping—and seasonal and outdoor living. Within décor, growth was driven largely by furniture and accessories, along with strong results in home organization, as customers continued to update and create new spaces for home offices and remote schooling.

Marvin Ellison, president and CEO of Lowe’s, told analysts that the Canadian business managed to post positive comps that exceeded 25 percent. Ellison attributed the gains to both customer engagement and internal refining of processes.

“That growth was supported by strong pro and DIY demand, as well as early success implementing our retail fundamentals playbook to improve operating efficiency—while driving sales.”

Lowe’s invested $245 million in COVID-related support for front-line hourly workers in the third quarter, bringing its total COVID-related staff financial support to more than $800 million so far this year.

CHICAGO — The North American office of the Cologne Trade Fairs organization wants to assure everyone that Eisenwarenmesse, the International Hardware Fair, is not being cancelled. And new policies have been put in place to make committing easy for exhibitors, including hassle-free cancellation.

“It’s scheduled with no indication at this time that management will change its mind,” says Darrin Stern, director of new business development in North America for Koelnmesse, the giant trade show organization that owns Eisenwarenmesse. The show is scheduled for February 21 to February 24, 2021.

Stern points out that Northern Germany, which plays host to numerous shows from facilities in Cologne, Dusseldorf and Frankfurt, has been open for business. “For example,” he notes “a camper and caravan show that was open to the public with 108,000 visitors recently, with no reported cases of COVID.”

The International Hardware Fair will follow a range of protocols to ensure the safety of its attendees, as well. In fact, the whole city is actively requiring face masks on public transit, in restaurants and even in open-air “crowded zones”. Onsite at the show, security measures will include spacing restrictions and ways to manage traffic flows should they get too heavy.

The show is expecting 2,250 exhibitors, down from 3,000 originally projected. Nevertheless, says Stern, visitors will have lots to see. Companies that wish to exhibit have the benefit of a cancellation policy that lets them pull out up to three months ahead of the event. And if travel or quarantine rules in the region change right before the show, exhibitors will still have the option to cancel without penalty.

(For more information about attending or exhibiting at the International Hardware Fair, contact Darrin Stern.)

At BMR Group, Antonio Di Pasquale has been appointed VP, supply chain and operational excellence. Di Pasquale brings more than 20 years of experience in the field. In his new role, he will lead the development and optimization of BMR Group’s processes and strategies relating to procurement and demand planning.

Jeld-Wen Windows & Doors has named Michael MacLeod as national account manager. He was previously an area sales manager for eight years at Owens Corning Canada, supporting the commercial and retail dealer channels across Ontario.

Shere Perkins is the new director of national accounts – USA craft and hobby for OLFA North America, reporting to VP Greg McNeilly. Perkins was most recently director of sales with Darice, a division of Michaels Stores.

… that subscriptions for the weekly Hardlines Newsletter are going up on December 1? Any subscriptions set for renewal after December 1 will be invoiced for the updated prices. If your subscription is set to auto-renew by credit card, you will automatically be billed the updated price. To check your renewal date, update your credit card information, or change your current sub-users, please follow the instructions here. If you have any questions, please don’t hesitate to email Michelle. And thank you for your ongoing support!

VAUGHAN, Ont. — TIMBER MART launched its regional dealer meetings and annual vendor negotiations earlier in the fall and is reporting that the shift to a virtual format has been a “resounding success.” TIMBER MART is set to take its annual buying show virtual next February and expects to welcome a larger number of participants than it has at in-person events.

ATLANTA — The Home Depot has reached a deal to acquire HD Supply Holdings, a distributor of maintenance, repair and operations (MRO) products in the multi-family and hospitality markets. Under the terms of the agreement, a subsidiary of The Home Depot will commence a cash tender offer to purchase all outstanding shares of HD Supply common stock for $56 per share, for a total value of about $8 billion. The deal is expected to close during the company’s fourth quarter.

ST. JACOBS, Ont. — Home Hardware Stores and Tree Canada have launched a partnership to restore trees in areas of Nova Scotia hit by Hurricane Dorian last fall. The initiative will see Home Hardware donate $65,000 to Tree Canada’s Operation ReLeaf, ear-marking the funds to help provincial municipalities restore trees lost in the storm.

BENTONVILLE, Ark. — Walmart’s Q3 revenues were up 5.2 percent to $134.71 billion. Operating income rose by 22.5 percent to $5.79 billion. Same-store sales in the U.S. increased by 6.4 percent, excluding fuel. In Canada, operating income declined but both sales and comp sales increased by 7.7 percent, while online sales soared by 177 percent.

Sales of existing homes in October slipped by just 0.7 percent after September’s all-time record gain. The small change reflected gains in about half of all local markets (including Montreal, Calgary and Edmonton) offset by declines in the other half (including Greater Toronto, Ottawa and Vancouver). Actual (not seasonally adjusted) sales activity posted a 32.1 percent year-over-year gain in October, a new record for that month. (Canadian Real Estate Association)

The seasonally adjusted annual rate of housing starts was 214,875 units in October, up three percent from September. The SAAR of urban starts increased by 3.5 percent in October to 202,584 units. Multiple urban starts decreased by 0.2 percent to 144,796 units, while single-detached urban starts increased by 14.3 percent to 57,788 units. (CMHC)

U.S. housing starts for October were at a seasonally adjusted annual rate of 1.53 million, up 4.9 percent from September. Single-family starts rose to 1.179 million. Building permits for the month were unchanged from September. (U.S. Census Bureau)

U.S. retail sales inched up by a less-than-expected 0.3 percent in October. At building material and garden retailers, however, sales were up by six percent. (U.S. Commerce Dept.)

NOTED

The pandemic has shone a spotlight on the challenges facing small local merchants. According to the Retail Council of Canada’s annual national Holiday Shopping Survey, 90 percent of survey respondents said it was important to buy from a retailer within Canada this holiday season. The average planned spend this Christmas is $693, down from $792 last year.

OVERHEARD…

“In an effort to keep not only our employees but also our dealers and vendors safe, we are hosting hundreds of meetings on virtual platforms like Microsoft Teams and Zoom, and are finding that with information sharing prior to the meetings, everyone is well prepared to engage with each other online and make the most of their time together.”
—Randy Martin, VP of procurement for TIMBER MART, on the buying group’s ongoing success with virtual events.

RED DEER, Alta. & WINNIPEG — Ace Canada, a division of Peavey Industries LP, has established a formal business arrangement with Winnipeg-based buying group Sexton Group Ltd. Under the joint supply agreement, Ace dealers, who now get their hardware supplied through Peavey, will have access to the LBM offerings of Sexton’s programs. Sexton members will likewise have access to the hardware products and programs of Ace Canada.

According to the release, “This agreement provides the opportunity for all Ace dealers and Sexton Group members to benefit from expanded and improved product selection, distribution and other services that only two innovative and exceptional leaders in their own areas of expertise could bring to the table.”

“When we purchased the Ace Canada licence from Ace International in March of this year, and at the same time acquired existing dealer agreements from RONA, we knew a long-term plan was needed for LBM support and supply to our dealers going forward,” said Doug Anderson, president and CEO of Peavey Industries.

Noting that the stores represented by both companies are strongly rooted in the communities they serve, Anderson said, the "new strategic alliance reinforces both of our companies’ growth objectives while providing us with the opportunity to bring our strengths together as parallel supports for our LBM dealers.”

And the deal is designed to help Sexton dealers with the front end of their businesses. “Current Sexton Group members will also have a guided opportunity to become Ace dealers if they wish, and we welcome that too!” Anderson added.

The joint supply agreement has been signed, with the collaborative terms taking effect January 1 for all Canadian regions, aside from Quebec, although stores in that province will be also be included. “We have allotted additional time to ensure our LBM program will effectively support our Quebec dealers,” says the release.

“This is not expected to be a lengthy process as our LBM portal, a major element already in place, has been bilingual since its inception. The target date for Quebec dealer activation within the agreement is between the second and third quarter of 2021.”

(Click here to read the full press release from Ace Canada and Sexton Group.)

TORONTO — Canadian Tire saw sales both in-store and online spike through the summer, driving strong results for the company during the COVID-19 pandemic. “Our e-commerce channel year-to-date has now surpassed $1 billion in sales, up 211 percent from 2019,” said President and CEO Greg Hicks in a call to analysts following the release of Canadian Tire’s third-quarter results.

“Both digitally and in-store, our existing Triangle [online loyalty] members were key contributors to increases in store transactions and basket size, and the Triangle program acquired approximately 400,000 new members in the quarter,” Hicks noted.

The Canadian Tire Retail stores saw a big jump in sales, likewise thanks in large part to online sales. “CTR experienced continued growth in our e-commerce channel, up 178 percent in the quarter. E-commerce penetration is now double where it was a year ago.”

Store traffic remained strong as well for Canadian Tire stores. Revenue for that business was up 28 percent, while comparable sales grew by 25.1 percent. Growth came from more than 90 percent of CTR’s 200 categories, with 80 percent of those categories achieving double-digit growth. The top-selling products in Q3 were in kitchenwares, as people stayed home and spent more time and money on food preparation.

CTR enjoyed big growth in home improvement categories that typified sales across the industry. These included lawn and garden, tools, paint and hardware. The stores also capitalized on the surge in popularity of backyard living, camping and road trips, which drove sales across all seasonal categories. Hicks admitted that those sales could have been even stronger, especially in outdoor living and barbecues, if not for scarcity of product. “We will certainly need to replenish store inventory and that’s the big question for the teams—how we forecast consumer demand heading into next year.”

Hicks said the trend has given the stores the opportunity to attract new customers. He noted that “the average paint customer is much more lucrative than the average CTR shopper. Not only do they spend three times more than non-paint customers, they visit the store more frequently.”

Although e-commerce sales, especially for bulky items, stabilized at the end of the third quarter, Hicks expects them to pick up again for the holidays, which he says represents Canadian Tire’s busiest season. And the arrival of snow in some Western markets has already helped ignite seasonal sales. But he also anticipates continued demand for amenities to brighten up the home, with big increases in customer searches for game rooms, ping pong tables, pool tables and winter cycling.

To meet the demand, the company will maintain services including home delivery, curbside pickup and click-and-collect processes that will see more automated pickup lockers across the CTR network.

ST. JACOBS, Ont. — Home Hardware Stores Ltd. is expanding its base in Quebec, and Home Hardware dealers themselves are driving some of the expansion.

In just one week, the company announced a couple of deals in that province that saw existing dealers in their respective regions buy out another dealer. First, three of its dealers partnered to purchase a Home Hardware Building Centre location in Saint-Lin-Laurentides. Louis Turcotte, Daniel Gervais and David Blair own and operate multiple Home Hardware and Home Hardware Building Centre stores across Quebec and Ontario. They have purchased the Saint-Lin-Laurentides from retiring dealers Yves and Gilles Morels.

The Saint-Lin-Laurentides store has been family-owned for its more than a century in existence, and under the Home Hardware banner for the past 20 years.

Just a few days after this deal made the news, Home Hardware announced that the dealer-owners of another group of Quebec stores had purchased Centre de Rénovation Pine Hill Inc. in Brownsburg-Chatham.

Hugues Nepveu and Isabelle Patry own and operate three Home Hardware Building Centre locations in Sainte-Marthe-sur-le-Lac, L’Épiphanie and Fabreville. They took over Pine Hill from former dealer-owners Serge and Ghislaine Séguin. Looking to retire after 30 years in operation, they wanted to see the business kept under the Home Hardware banner.

Home Hardware already picked up two new dealers through the summer. L’Acadien Bricoleur Gentilly, located in Becancour, opened August, was followed a month later by Materiaux Marquette in Baie-Comeau.

SPECIAL REPORT — While the industry eyes Amazon with trepidation today, 25 years ago the company that kept every retailer awake at night was Walmart. This week in 1995, Hardlines reported on expansion plans by Walmart Canada. Those plans involved five new stores in the year ahead, adding to the five that had already opened in 1995. In conjunction with that growth, the giant retailer began another wave of price reductions, putting further pressure on vendors.

This news came just a week after Hardlines broke some big news for the home improvement industry. The first-ever Hardlines “Fax Extra” (since replaced by our online Breaking News—your historically minded Editor) announced that Beaver Lumber had confirmed a supply deal for hardware from Ace Hardware. The deal provided Ace with a solid footing in Canada, but at the expense of Canadian suppliers. By choosing Ace, Beaver, under President and CEO Ralph Trott, effectively thumbed its nose at D.H. Howden & Co., at the time the major hardware wholesaler for independents nationally.

This deal marked Ace’s second attempt to get established in Canada. Previously, it had teamed up with LBM wholesaler CanWel, under Tom Longworth. He tried bringing Ace products up for cross-docking at one of CanWel’s warehouses in the Vancouver area. The arrangement became unworkable when the Canadian dollar took a big tumble.

Where are they now? Beaver got sold to Home Hardware five years later. Ace had to scramble, continuing to recruit dealers one at a time. The Ace business would eventually get taken over by Howden. That wholesaler, in turn, after many sales and mergers, got buried somewhere in Orgill’s acquisition of Chalifour Hardware 20 years later. Tom Longworth went on to join the board of the Port of Vancouver.

(Ralph Trott met up with me for a coffee at the National Hardware Show in Chicago a few months after the Beaver sell-off. He shared with me his idea of launching a big-box retailer that would focus on storage and storage products. Trott was already ahead of the curve. Sure enough, in just a few more years, that category would explode. —Your nostalgic Editor)

… that subscriptions for the weekly Hardlines Newsletter are going up on December 1? Any subscriptions set for renewal after December 1 will be invoiced for the updated prices. If your subscription is set to auto-renew by credit card, you will automatically be billed the updated price. To check your renewal date, update your credit card information, or change your current sub-users, please follow the instructions here. If you have any questions, please don’t hesitate to email Michelle. And thank you for your ongoing support!

BOUCHERVILLE, Que. — BMR Group has launched a pilot program for a click-and-collect system in its corporate stores. The platform, from Tecsys, provides omnichannel retail order management software (OMS) to help retailers fulfil orders across channels. It’s been identified as a way to support some of the BMR stores during the pandemic by offering in-store pickup.

TORONTO — Canadian Tire saw strong growth in its private-label products in its third quarter. Its so-called “owned brands” accounted for an incredible 36 percent of its retail sales in the quarter, delivering impressive 23 percent growth over last year. At CTR, owned brands grew 28 percent, thanks to big names, such as Mastercraft, MotoMaster, NOMA, Woods and Canvas, as well as the more recent addition of Vermont Castings. 

QUEBEC CITY — For the eighth year in a row, Canac has partnered with Leucan to raise funds for the agency, which helps children with cancer. Over the Thanksgiving weekend, a record $36,500 was raised. A. Since 2013, Canac has generated a total of $161,668 for Leucan.

SUPPLIER NEWS

CHICAGO — The fifth Home Improvement eRetailer Summit is scheduled to take place March 7 to 9 at the Aloft Chicago Downtown River North hotel. It aims to provide insight into future market conditions and tools to help dealers plan for and respond to those conditions proactively. This unique forum provides insights and access to growing online sales for vendors and buyers alike. Attendance is capped at 100 participants. For more information and to request an invitation, visit the Summit website.

DELTA, B.C. — Regal ideas Inc. has been recognized with a Davey Award for its DeckStars integrated marketing campaign. The Davey Awards honour the best in web, design, marketing and social media worldwide. Regal ideas tapped industry veteran Joe Jacklin to lead the program in 2019.

VANCOUVER — Western Forest Products reported solid third-quarter results, with net income of $11.5 million, reversing a net loss of $18.7 million for the third quarter of 2019 and net income of $8.5 million from the second quarter of 2020. The company says strong demand from the repair and renovation and new home building sectors, combined with constrained supply, managed to drive record pricing for logs and lumber in the quarter.

MONTREAL — Intertape Polymer Group said its Q3 revenues increased by 10 percent to $323 million, primarily due to increased demand in products with significant e-commerce end market exposure. That included water-activated tape and protective packaging. Net earnings increased $14.2 million to $26.7 million.

ECONOMIC INDICATORS

Total investment in building construction decreased 1.7 percent to $15.2 billion in September, after reaching a record high in August. This can be attributed to decreases in the non-residential sector, which was down 8.5 percent. The drop was partially offset by increases in residential sector investment, which was up 1.6 percent. (StatCanada)

NOTED

Retail Council of Canada’s annual national Holiday Shopping Survey shows that Canadians will be spending less in some categories, but they are eager to support local retailers. Product categories that help make people’s experience at home better, improve their wellness and promote getting outdoors are seeing increases this year. The dramatic shift toward online shopping will continue over the holidays as fewer Canadians plan to shop in stores this season. Only 58 percent of respondents said they would shop in stores this Christmas, compared to 72 percent in 2019.

MEMPHIS — Orgill Inc. plans to replace its in-person 2021 Spring Dealer Market in favour of what it calls a more dynamic and flexible approach to how it connects with its dealer customers and vendor partners. The show usually takes place in the third week of February.

Orgill will offer a combination of events, including physical shows like its traditional Dealer Markets, plus online-only buying events like its recent Orgill e-Volution event that was held August 24 to September 4. In future, the giant hardware wholesaler plans to round these out with virtual educational events and blended shows that merge online technology with a physical event.

“Just like the retailers we serve, this year taught us a lot about how to be agile and how to push outside our comfort zones to meet the needs of our customers,” says Boyden Moore, Orgill president and CEO. “We believe that live shows, online buying events and educational conferences should not exist in a vacuum—they should all work together in how we do business in the future.”

“The days of a stand-alone physical event are a thing of the past,” says Greg Stine, Orgill’s executive vice president of marketing and communications. “We believe that this expanded strategy will provide a platform of support for our dealers, allowing them to efficiently buy products and gain knowledge that will help them grow and strengthen their businesses.”

He adds that the company’s virtual event last summer helped his team realize that, with technology, Orgill could reach more customers than even a live event, “and offer unique and richer experiences to everyone who participates in them.”

The online event attracted nearly 10,000 retailers who interacted with the thousands of vendors and service providers participating in the show. Orgill says the event set records for retailer participation and set sales records for the company.

In addition to harnessing the best elements online and live shows offer, Orgill also looks to create a consistent cadence for these events throughout the year that allows more retailers to participate and is also more conducive to buying cycles.

Orgill plans to hold its first Online Buying Event of 2021 from February 8 to 19, with a pre-event planning period from February 1 to 7. Orgill will unveil a full schedule of online, in-person and hybrid events for the year in early 2021. The company still has its sights set on hosting a live Fall Dealer Market in Chicago in August 2021.

SCARBOROUGH, Ont. — A recent meeting by Lowe’s Canada executives before a virtual group of vendors was hosted recently by the Canadian Hardware and Housewares Manufacturers Association (CHHMA).

The meeting was welcomed by the suppliers, especially given the number of new faces at the retailer’s head office. Most notably, Lowe’s Canada President Tony Hurst (shown here), in place since the beginning of the year, made his first general appearance before the Canadian supplier base. Joining Hurst were Senior Vice President of Merchandising Chris West, along with Merchandising Vice Presidents Marc Gingras (building products), Oliver Horton (hardlines and seasonal) and Charles Valois (home décor).

The meeting was welcomed by Lowe’s Canada as a way to introduce the new Lowe’s Canada merchandising team’s leadership. It was restricted to vendors and manufacturers and closed to the media—including Hardlines. (We share here some top-line details, courtesy of our industry moles and some friendly fact-checking with Lowe’s Canada. —Your Diligent Editor)

Hurst and his team shared Lowe’s Canada’s vision of its interaction with the vendor community, aimed at developing relationships that are meaningful and ambitious.

The execs talked about a “reset” of vendor partnerships that would create genuine collaboration. This will require exploring new ways to connect, with more transparency and accessibility, while staying open to feedback from the vendors themselves.

The senior merchants said they had listened to the feedback from the CHHMA and its member suppliers. Acknowledging that there were areas in which they could make improvements, the team committed to simplifying their business processes to ease vendor interaction. That will reportedly include the formation of a vendor advisory board.

Vendors can also count on more harmonization of back-end programs. While the Lowe’s Canada team would not put a firm date on this process, they offered assurances that they are committed to this goal long-term.

The group also reaffirmed their stance regarding Canadian vendors, that is, when selection criteria are met, “We will always favour domestic vendors,” they were quoted as saying—a policy that they recognize has positive advantages for customers and the business overall. That support extends to the “Well made here” program, an initiative to identify and promote products made domestically.

MONCTON — Plans to hold the 2021 ABSDA Building Supply Expo as an in-person event have been cancelled, according to the show’s organizer, the Atlantic Building Supply Dealers Association.

The ABSDA board made the decision and sent out a release to the industry, signed by the association’s president, Denis Melanson, at the end of October. The show, which has been running since 1955, moved to Halifax from Moncton in 2018. It was cancelled due to the persistence of the COVID-19 pandemic.
 
The 2020 edition of the show was held March 11 to 12 at the Halifax Convention Centre. Already, people were expressing concerns about the rise of the pandemic and the show ended just one day before Canada began locking down in earnest. Nevertheless, the event managed to draw dealers from some 250 locations throughout Atlantic Canada.

According to Melanson, “Our 2020 Expo was a tremendous success, laying the groundwork for the future. The decision to pull back on the 2021 in-person event was arrived after many discussions with members, board deliberations and consulting with officials at the Halifax Convention Centre.”
 
As Melanson and his team tried to envision what the effects of the pandemic might look like five months out, safety of attendees had to be taken into consideration. The association is exploring options for connecting suppliers and dealers in 2021 and says it will announce further plans in the near future. 

PICKERING, Ont. — A new platform that tracks customers and visitors to enable contact tracing is being made available at no charge.

CANATRACE offers a secure, bilingual method for businesses to collect patron information per city guidelines across Canada. It’s the brainchild of Groundlevel Insights, a company that specializes in consumer location intelligence.

Hardlines has partnered with CANATRACE to make this available to dealers and businesses in the hardware and home improvement industry. The platform helps businesses support healthy environments, whether it’s a store, distribution centre, gym, school, museum or restaurant.

Patrons only have to scan a QR code posted at the front of the establishment. It takes them to a custom-designed landing page of for that business. They enter their contact info and mandatory contract tracing and screening information. A screen pops up on the patron’s phone showing a green check mark, which signals to the proprietor or host that the individual is ready to enter the premises.

If a store owner gets notified that someone in their establishment has been infected, they simply contact CANATRACE, which in turn will provide the local health authorities with a list of all customers that may have been exposed.

(Any company wishing to try this out can click here to register.)

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TORONTO — Canadian Tire Corp. had a strong third quarter, with consolidated retail sales up by 13.1 percent. Excluding the petroleum business, consolidated retail sales were up 19.1 percent over the same period last year. As in the second quarter, Canadian Tire delivered strong same-store sales growth, up almost 19 percent, thanks in large part to its online business. The company’s Canadian Tire Retail division led the surge, with 25.1 percent comp sales growth. Sales of private-label products were up 28 percent. Online sales have reached $1 billion year to date, a 211 percent increase. Once again, CTR led the way, with 178 percent growth.

MISSISSAUGA, Ont. — Castle Building Centres has added two new members in Quebec. Matériaux M.B. Inc. is in Preissac, in the province’s Abitibi region. Under owners Bertrand Bolduc and his daughter Manon, the store provides lumber, building materials and hardware to local contractors and consumers. D.F. Rouleau, in the village of Les Hauteurs in the province’s Bas-Saint-Laurent region, has also signed. Owner Valérie Potvin took over the store, which turns 100 this year, in 2014. Today, with her partner, Samuel Labonté, Potvin has built a business that provides not just hardware and building materials, but also groceries, under the Omni banner through Sobeys.

TORONTO — The Home Depot Canada suffered a data breach last week, as personal information, including some credit card details, were inadvertently emailed out to customers. The information sent out was in the form of confirmation emails for customers awaiting online orders. The emails got sent instead to hundreds of other Home Depot Canada customers by mistake. While such breaches are often the work of hackers or online predators, this appears to have been the result of human or system error, says the company.

MOORESVILLE, N.C. — As the holiday season approaches, Lowe’s in the U.S. is positioning itself as the source for a broad range of home products that will fill the bill as gifts. To support the promotion, Lowe’s has expanded its assortments to feature playing and recreation products such as exercise bikes, electric scooters and trampolines, as well as putting a big focus on kitchenwares, home styling and décor.

SUPPLIER NEWS

BURNABY, B.C. — Pledging to support customers and organizations in need through difficult times, Taiga Building Products has created the Taiga Community Fund. The charity, says the building products distributor, has “the express purpose of giving back to the communities where we live and work. We recognize the tremendous effect that COVID-19 has had on our neighbours and families, so we created a fund worth $110,000 and asked our people to build a plan to support organizations in their backyard that could use some help.”

QUEBEC CITY — Tando, a brand of Derby Building Products, has rolled out a new technology within its free online tool, My Tando Home Creator. The tool lets homeowners and contractors design projects using Tando products, including its TandoStone composite stone and its cedar shingle replacement, Beach House Shake.

ECONOMIC INDICATORS

Home sales in the Greater Toronto Area (GTA) were up year over year for the fourth month in a row. Sales through the Toronto area were up 25.1 percent compared to October 2019. Condo listings more than doubled, but sales were only up by 2.2 percent. The average selling price for all home types combined was $968,318, up 13.7 percent from a year earlier. (Toronto Regional Real Estate Board)

Total construction spending in the U.S. for September was estimated at a seasonally adjusted annual rate of $1,414 billion, up 0.3 percent from August. Year-to-date spending for the first nine months is up 4.1 percent. (U.S. Census Bureau)

OVERHEARD…

“These events certainly don’t take the place of face-to-face shows, but they do offer some things a live show can’t, like the ability to get a lot done in a short window of time and eliminating the need to leave your store to travel.”
—Jeff Curler, Orgill’s senior vice president of purchasing, on the hardware wholesaler’s plans to offer a series of virtual events tied in with live experiences in 2021.

MISSISSAUGA, Ont. — Castle Building Centres Group Ltd. has forged an exclusive partnership with an online platform for homeowners to source renovations and repairs. Rendoodle is a virtual marketplace that connects retailers and industry experts with consumers to help them plan and execute their home improvement projects.

Under President Ken Jenkins, Castle represents independent lumber, building materials and hardware dealers in more than 300 locations across Canada, so this partnership will give Rendoodle access to a national network of local businesses. The platform provides consumers with tools to turn their home renovation concepts, or “doodles,” into reality by connecting them to contractors and to products through a local Castle location.

Rendoodle, based in Vaughan, Ont., was co-founded by Jenkins’s son, Lucas Jenkins, who is also president of the online company. He believes a tool like the one his company offers can give independents more ways to compete effectively. “We see Rendoodle as a way to really level the playing field with the big box retailers and create a stronger competitive advantage,” says the younger Jenkins.

Castle’s partnership with Rendoodle gives Castle members the opportunity to be home improvement retailers of choice for the platform. Together with Rendoodle, Castle intends to build a sustainable online community of Castle retailers, leading manufacturers and reputable certified contractors. The marketplace offers member benefits such as access to project leads, increased sales potential and access to a certified installer listing.

“Our deal with Castle as a whole will allow for all of their retail locations across Canada to be a part of the program,” Lucas Jenkins continues. “The onboarding process is one that is simple and efficient.”

The partnership with Rendoodle will connect those dealers to the consumers. Customers using the platform can get their projects completed with products from a reliable retail source by pros who are monitored to ensure they meet stringent certifying criteria.

Some of the benefits being touted for vendors include assurance that their products are being installed by trained contractors, while enjoying opportunities to showcase products to consumers and drive retailers to stock their products.

ST. JACOBS, Ont. — The changing lineup of buyers at Home Hardware Stores Limited includes a brand-new role, one that has been filled by a veteran of retail with grocery experience domestically as well at superstores in Europe.

According to Marianne Thompson, SVP merchandise for Home Hardware, the addition of Meriyem Kaf (shown here) to her merchandise team reflects the added complexity of the new processes being created for the category review process. Those processes are driven, in turn, by Home Hardware’s efforts to re-imagine itself, not as simply a hardware distributor, but more sharply focused on the retail customer—“to support our strategic transformation from a wholesaler to becoming that dealer-owned retailer,” says Thompson.

Kaf has been appointed to fill the newly created role of director, merchandise strategy and execution. Her background includes Carrefour in France and Sobeys in Canada. At Home Hardware, one of her key responsibilities is the design of Home Hardware’s category management capability. “She will develop, build and deploy a capability roadmap to support the overall category growth strategy. This includes defining the people, process and technology requirements,” Thompson says. “She brings a category management process.”

Kaf will also lead the development of a private-brand strategy. Thompson says this will drive “above-average growth and profitability within private brands” and include responsibility for building and implementing a global import sourcing strategy. Kaf will determine assortments and supplier matrix, which countries to tap for production and financial targets.

With more emphasis on private label, what will this mean for Home’s traditional vendors?

“Home Hardware is on a journey of growth and we’re building all the growth strategies to support that,” Thompson says. Her teams are now holding supplier partnership meetings with vendors—something new for the company. “This is really to ensure that our suppliers are aware of our journey, ensuring that we have alignment with our suppliers. Our success is dependent on our supplier partners and their support.”

She adds that, as Home Hardware grows, those suppliers are growing with them. However, as category reviews are held, some SKU counts are changing. “We are moving away from one-off product additions and building powerful strategic assortments, guided by a longer-term category plan,” she says.

Thompson stresses however that “it’s not a strategy to reduce SKUs and it’s not a strategy to reduce suppliers." But, she adds, “there will be a dramatic reduction in individual item additions to the assortment outside of the line review cycle, in favour of building powerful merchandise programs. Our new assortments will leverage Home Hardware’s strengths and will enhance competitive long-term positioning.”

QUEBEC CITY — One of Quebec’s fastest growing retail chains has more expansion planned. Canac has 30 stores, of which 13 are in the Quebec City area. The company has been adding stores over the past decade at a rate of about one per year on average, moving farther east and south with each new site.

Canac’s latest focus of growth has been the Montreal area, where the company set up stores in May 2019 in Notre-Dame-des-Prairies and in Prévost, in the Laurentides region, in February of this year. Now, says President and General Manager Pierre Laberge, more are in the works.

The next store will open in La Prairie, on the south shore of Montreal in February 2021. That location will consist of just over 40,000 square feet of retail space, with a 23,792-square-foot warehouse. It will also be Canac’s 31st location, making the firm one of the largest privately-owned home improvement chains, not just in Quebec, but in the country.

That opening will be followed by another store before the end of 2021. Laberge says there are other sites in the works, but the exact location will be determined by the how quickly permits can be secured for each site.

Canac still has its sights set on expansion into neighbouring Ontario. Land has been purchased in the Eastern Ontario town of Hawkesbury and is awaiting development. The planned store is part of a major redevelopment of a former Amoco oil plant. Laberge expects it to be up and running there within two years—if not sooner.

To support this growth, another expansion is planned for the company’s distribution centre in Drummondville, Que. This latest construction represents phase three for the site, which was acquired in 2015 and now holds a 500,000-square-foot hardware DC.

Laberge says the new LBM facility will replace two existing warehouses that can no longer handle the volume. One is in Beauport, serving Canac stores in the Quebec City market, while the other is part of a store in Rock Forest (a former Gaston Coté location).

Laberge says his team is awaiting further permits and approvals, but he expects the new addition be completed by the beginning of 2022.

WINNIPEG — Liz Kovach is hailing it as a victory, not just for the province, but for the retail home improvement industry.

With the return of Premier Scott Moe’s Saskatchewan Party to government in that province’s election last week, the Home Renovation Tax Credit (HRTC) is now in effect. The centre-right party, formed in 1997 by majorities from the provincial Liberal and PC parties as a united front against the NDP, has governed Saskatchewan since 2007.

The Western Retail Lumber Association, headed by Kovach (shown here, with Premier Scott Moe), welcomed the fulfillment of Moe’s re-election pledge, which is backdated to October 1 and runs through to December 31, 2022.

The tax credit has been a major lobbying initiative for Kovach and the WRLA, which sent letters to political leaders in Alberta, Saskatchewan and Manitoba. Dealers in many of these markets were already struggling before the pandemic hit. Her office has been pushing for the tax credit for months.

With Saskatchewan’s HRTC, homeowners will be able to claim a 10.5% credit on up to $20,000 in eligible home renovation expenses incurred during the period, for savings of up to $2,100. Eligible expenses will include permanent additions to the home but not include items such as furniture, appliances, hot tubs, tools or maintenance.

Elkay Manufacturing has announced new roles in its Elkay International Systems (EIS) division. Tony Lutz has been named SVP for EIS. Lutz has led Interior Systems since 1987. Mia Nicolaisen has been promoted to VP, EIS North America. In this expanded role, she will be responsible for the entire EIS North America business. Most recently, she headed up EIS’s North American Operations. Rod Krings has been promoted to general manager, EIS North America.

… that we don’t always know? We rely on you, our Faithful Readers, for input and feedback—especially during these tough times. Can you help us improve what we do? Please take two minutes (really, it’s quick!) to fill out this survey and let us know what you think about the Hardlines weekly newsletter.

ST. JACOBS, Ont. — Home Hardware and Beauti-Tone were sponsors of the LivABLE Environment Conference, billed as “a three-day virtual event on residential design and how accessibility, living in place and wellness in the home can be enhanced.” The conference was held last week. Home Hardware and Beauti-Tone were among 30 companies participating in the event.

SURREY, B.C. — Thomas Foreman, president of the Building Supply Industry Association of B.C., visited TIMBER MART’s Langley, B.C., LBM distribution centre recently to present the business with the 2020 Orion Supplier of Year Award. Warehouse supervisor Alex Stanculescu received the award on TIMBER MART’s behalf and was also personally presented with the Customer Service award. TIMBER MART members also took three out of four prizes in the retail category, while the award for Building Supply Centre (Mini-Box) went to Ladysmith Home Hardware in Ladysmith, B.C.

BENTONVILLE, Ark. — In anticipation of an opioid-related civil lawsuit from the federal government, Walmart has filed a suit of its own against the feds. According to the Wall Street Journal, Walmart is claiming that the Justice Department and Drug Enforcement Administration are trying to make the retailer, particular its 5,000-plus pharmacies, a "scapegoat" for the opioid crisis in that country. Walmart says it is being blamed for filling problematic prescriptions, even though the doctors who wrote them were practicing legally.

STELLARTON, N.S. — Analysts are noting that Sobeys will likely follow Loblaw and Metro in demanding higher fees from suppliers, raising concerns the move would drive competition down and prices up. Loblaw wrote to suppliers last week saying that its business has become “more challenging and costly to operate” and that it will charge more to carry products beginning in January.

SUPPLIER NEWS

TORONTO — The Canadian Hardware & Housewares Manufacturers Association is hosting a series of online educational events every Tuesday and Thursday in November. Topics range from cybersecurity to the post-pandemic economy and artificial intelligence. Click here for more info.

TUPELO, Miss. — BBC Capital, through its wholly-owned subsidiary Renin Holdings, has acquired Montreal-based Colonial Elegance. The company supplies and distributes building products, including barn doors, closet doors and stair parts, to big boxes in the U.S. and Canada.

MINNEAPOLIS — 3M Co. posted Q3 earnings of $1.4 billion, down from $1.6 billion last year. Strong sales in the health care segment, which grew by 25 percent, partially offset the decline. Revenues increased to $8.35 billion, compared to $8 billion a year ago.

LIVONIA, Mich. — Masco Corp. reported that Q3 sales rose 16 percent to $2 billion. Operating profit for the quarter increased 47 percent to $424 million; adjusted operating profit increased 43 percent to $425 million.

CLEVELAND — Sherwin-Williams reported Q3 earnings of $705.8 billion or $7.66 per share, $0.39 higher than estimates. Comparable sales in Canada and the U.S. rose by 3.1 percent for the quarter.

ECONOMIC INDICATORS

Sales of existing U.S. homes rose by 9.4 percent in September to a seasonally adjusted annual rate of 6.54 million units. On an annual basis, sales were up by 20.9 percent. September’s pace is the strongest since 2006. (National Association of Realtors)

U.S. housing starts rose to a seasonally adjusted annual rate of 1.42 million in September, up 1.9 percent from August’s activity. The growth was driven by an 8.5 percent rise in single-family starts, particularly in the Northeast, as multi-family starts declined. (U.S. Census Bureau)

NOTED

Canadians are planning to spend about 18 percent less than usual during this holiday season, according to the 2020 Holiday Retail Outlook report from Deloitte. Online shopping, however, is “gaining traction at an exponential speed,” with Amazon standing to gain the lion’s share. About one in three consumers (35 percent) plan to reduce overall expenditures for the season while increasing spending at restaurants and cannabis stores.

OVERHEARD…

“We are proud to collaborate with the LivABLE Conference Environment on the creation of barrier-free living and accessibility in residential homes. It’s important that, as Canadians, we are part of the global conversation around ways we can improve residential design and make a lasting impact within our industry.”
—Home Hardware President and CEO Kevin Macnab on his company’s sponsorship of a forum dealing with better accessibility, living in place and wellness in residential design.

RED DEER, Alta.— It’s been almost eight months since Peavey Industries announced its takeover of the license and distribution rights to Ace Hardware stores in Canada. And certainly a lot has happened since then. Through it all, Peavey President and CEO Doug Anderson remains confident in the viability of the move, one that he believes will bring stability supported by a truly Canadian supply chain.

“At Peavey, we understand small towns,” Anderson says, making reference to fact many Ace dealers flourish in smaller communities. He notes that Peavey is an employee-owned company with the flexibility that kind of structure can bring. “We’re very focused on Ace long-term as a company.”

The Ace banner in Canada has had a varied history, one that dates back to the early 1990s. At that time, LBM wholesaler CanWel attempted a cross-docking arrangement for Ace products through one of its distribution centres in the Vancouver area. To this day, a handful of dealers, mainly in British Columbia, maintain an Ace affiliation from that period. Ace then came to Canada through a deal with Beaver Lumber back in the mid-1990s. That ended with Beaver’s demise barely five years later. Since then, ownership passed to now-defunct hardware wholesaler Sodisco-Howden Group, back to CanWel, then TIMBER MART, RONA and finally Lowe’s Canada (whew!—Editor).

Peavey acquired the Ace business from Lowe’s Canada.

“As a counter to the past, we believe we can provide the stability that the brand needs,” Anderson says. Ace’s legacy of change has also had an impact on the dealers themselves. Some chose to switch banners during the disruptions. However, the brand continued to add new dealers under Lowe’s Canada, offering an option that can support smaller stores.

“Our goal is to stop the churn. There’s no reason why the Ace brand can’t flourish in Canada. It’s an amazing brand—an international brand.”

Anderson points out that Peavey is big enough to provide the nearly 100 Ace dealers—plus a handful of un-bannered stores—with the purchasing power to stay competitive and the distribution system to support them. But, he adds, Peavey is not so large as to alienate or lose sight of its newly acquired retail customers. “Those values will definitely add value to the Ace banner and Ace network.”

The company has distribution centres in Red Deer and in London, Ont., home of TSC Stores, which Peavey acquired three years ago. Hardware distribution from Lowe’s Canada to Peavey was completed by the end of August, amidst the hindrances caused by the COVID pandemic.

For the next few months, LBM distribution for the dealers will continue to come from Lowe’s Canada.

Anderson expects to begin promoting the Ace banner to potential new dealers in the future. But for now he and his team will focus on the existing dealers “and prove ourselves to them and make them feel confident and comfortable.”

QUEBEC CITY — A privately held chain of building centres is on a path of tremendous growth, bearing witness to the appeal of aggressive marketing backed by low prices.

Canac is part of Laberge Group, which is run by the Laberge family and whose holdings include apartments and commercial real estate, as well as a custom window company and a commercial dealer division, Manugypse. That business, with two locations, in Quebec City and Boucherville, is part of the TIMBER MART buying group.

Back in the summer, CEO Jean Laberge, long the voice and face of the company, retired, while maintaining the chairman role at Laberge Group. Guy Bedard had previously retired as general manager at Canac five years ago. Jean’s cousin Pierre Laberge moved from the VP role to take over Canac fill the roles. “I have replaced Guy Bedard and Jean Laberge as president and general manager of the company,” says Pierre. “All of us have participated in the growth of Canac—including Guy, who has been a fantastic general manager.”

Other changes included Stéphanie, Jean daughter’s, replacing him for future site and store development. Charles, the son of Gilles Laberge, will replace Jean for construction and renovation on all stores and the distribution centres. Marc Laberge, who developed the contractor side of the business, has also retired. His son Jerome replaces Marc on contractor sales and operations related to contractors. Gilles Laberge, Pierre’s cousin and Marc’s brother, remains in charge of finance for Laberge Group.

And, Pierre adds, “Thomas Laberge in charge of IT and Simon Laberge is in charge of logistics and supply chain. They are both my sons.” Both my sons.

The family now oversees a chain of retail home improvement stores that is one of the largest independents chains in this sector in the country. With 30 stores—soon to be 31—and annual retail sales of $875 million, Pierre Laberge says the company has managed to double its sales over the past five years and is on track to exceed $1 billion in sales in 2020.

Laberge attributes much of the company’s success to its people. “We have great people in the stores. We have a great team and a fair price—and people like that,” he says. “It’s not that complicated.”

The company has gained notoriety for its adherence to low prices, making it a noteworthy competitor for other Quebec dealers. Laberge admires the model of Walmart found Sam Walton. “We buy cheap and we sell cheap and we try and make some money in between,” he says with a chuckle. “We try to buy the best quality at the best price.”

NORWALK, CT. — The 2020 National Hardware Virtual Show officially wrapped up last week. The four-day online event boasted a variety of educational sessions, webinars, networking opportunities and a platform for industry meetings.

According to show organizer Reed Exhibitions, the virtual show attracted more than 4,000 industry professionals, facilitated some 1,200 meetings, logged 111,387 profile and product views, and generated 12,726 educational content and session views.

(Due to ongoing demand for the sessions and networking, the National Hardware Virtual Show platform will remain open for continued access. Anyone who didn’t join initially can still access to the platform. Click here to register.)

“The 2020 Show was certainly different from years past, yet it provided the same great experience NHS patrons have come to know and love,” said Rich Russo, industry vice president of the National Hardware Show. “As always, the show provided attendees with premium educational content for the ever-expanding and ever-evolving industry, the opportunity to connect with key exhibitors, buyers and media, as well as unmatched sourcing opportunities of newly launched products that keep businesses growing and modern.”

The All-Industry Conference, hosted by the North American Hardware and Paint Association (NHPA, formerly the NRHA) featured 12 different sessions and kicked things off with a keynote from Dan Starr, president and CEO, Do it Best Corp. Entitled “How Independents Are Still Disrupting”, the keynote took place immediately following the NHS opening ceremony and addressed the future of the industry and the opportunities that are available for independents to innovate, compete and win in their markets.

NHPA executive vice president Dan Tratensek says this year’s event still empowered members of the industry to network and collaborate.

“While there is no doubt we all miss being able to interact with one another in person, I think we have all become accustomed to the virtual show experience. It’s exciting to be able to connect with retailers, offer seminars and feel engaged with the industry in a broader way,” said Tratensek. “Once again, the National Hardware Show has offered retailers of all banners a place where they can explore new products, learn from one another and pick up new ideas.”

The 2021 National Hardware Show is scheduled for May 11 to 13 in Las Vegas at the Las Vegas Convention Center.

ATLANTA — The Home Depot is relying on its vendors more than ever to deliver innovative new products. Speaking at Goldman Sachs’ Global Retailing Virtual Conference last month, Craig Menear, chairman and CEO of The Home Depot, with Ted Decker, Home Depot’s EVP merchandising, talked about how much of that innovation is directed at maintaining and strengthening the retailer’s relationship with both its pro and DIY customers. Decker called it “the hallmark” of good merchandising.

Menear laid out the importance of continual input from vendors. “So when you think about innovation, what the merchants are focused on at Home Depot is ‘how do you bring product to market that makes it easier for the consumer to be able to do a project? How do you bring product to market that allows the pro to be more efficient?’”

Decker went even deeper on the subject. He said Home Depot’s supplier partners must work on product development with the end user in mind, “and it really goes across the whole store.”

He cited some examples of new products that have been driven by new technology. “You’ve heard us talk a lot lately about cordless battery technology in power tools that is now exploding in outdoor power equipment. So categories that were exclusively gas for decades and decades are quickly shifting to cordless technology.” He said a lot of products in this category will be launched in the spring of 2021. “What you are going to be able to do in terms of size of job and run time and power with cordless technology and outdoor power equipment is incredible.”

Innovation is occurring in departments across the store, including building materials, appliances and even the grout bay, where one vendor introduced everything from floor levelers and large-format tile to quick-adhesion grouts and grouts that come pre-mixed for quick jobs. “It’s something you wouldn’t think a lot about—innovation in tile-set material—but it really is remarkable for all the new products that came in that reset,” Decker said.

Darryl Jenkins has been promoted at Canadian Tire to senior vice president,
corporate development and growth initiatives. He joined Canadian Tire in 2019 to head up the company’s newly acquired Party City business as managing director. Prior to that, he served as chief merchandising officer at TSC Stores.

David Stern has joined Wolseley Canada Inc. as vice president, Eastern Canada, based in Laval, Que. He was most recently with Lowe’s Canada, where he served as VP, pro, commercial and installed sales.

… that we are always looking for new products to feature for dealers? We have two publications that serve home improvement retailers. Our print magazine, Hardlines Home Improvement Quarterly, and our monthly e-newsletter, Hardlines Dealer News, both reach audiences of dealers and store managers across the country. And one of the things we know they are interested in is new products. If you’re a supplier with new products that are available to Canadian dealers, let us know! Send your product info to our New Product Editor, Geoffrey McLarney. (And yes, this is a free editorial service!)

VAUGHAN, Ont. — Quincaillerie J.P & F. Larochelle in Dunham, Que., is the newest member of TIMBER MART. Founded in 1975 as an army surplus store by Jean-Paul and Cécile Larochelle, it has branched out into hunting and fishing gear, hardware and garden supplies. The owners are Yvon and Sylvain Larochelle.

ST. JACOBS, Ont. — Fines Home Hardware in Cornwall, Ont., is moving to a larger space in the new year, a former Kmart store that has been vacant since 2013. The move is expected in March 2021. The Fines location in Ingleside, Ont., will continue its operations there.

ATLANTA — The Home Depot has reached an agreement with Enel Green Power to purchase renewable energy from a new plant Enel is slated to open in Texas next year. The hybrid Azure Sky Solar + Storage plant is expected to generate 586 gigawatt hours of energy each year. Home Depot has set a goal of making or purchasing 335 megawatts of alternate energy projects by 2025. It will receive 75 megawatts, enough to power 150 stores, annually from Enel’s new facility.

BRAMPTON, Ont. — Hudson’s Bay Co. is gearing up to modernize its stores by converting some properties into mixed-use developments. The reinvented spaces could host offices and residential units in addition to other retail stores. Executive Chairman and CEO Richard Baker has left the door open to selling off some real estate assets as well, noting plans to continue “generating value from these assets.”

SUPPLIER NEWS

SURREY, B.C. — The B.C. Building Supply Industry Association is following the success of its previous online conference with the BSIA 2021 Wave of the Future – Product Expo & PK Sessions. On January 19, presenters will be able to give 20 minute sessions and receive business card-sized ads in the BSIA News Magazine among other marketing and promotional benefits to connect with retailers. Networking opportunities will include interactive panels, discussion groups and product demos. For more information, visit the BSIA website.

DORVAL, Que. — Dural is reintroducing its Multibond brand with Advanced Hybrid Adhesive for flooring. The rollout was announced along with changes to the packaging of DuraPro adhesives.

ECONOMIC INDICATORS

Sales of existing Canadian homes edged up a further 0.9 percent between August and September, raising them to yet another all-time monthly record. About 60 percent of local markets saw gains, including Ottawa, Greater Vancouver, Vancouver Island and Calgary. These were mostly offset by declines in the Greater Toronto Area and Montreal. Actual (not seasonally adjusted) sales posted a 45.6 percent year-over-year gain in September, a new record for the month. (Canadian Real Estate Association)

Retail sales rose 0.4 percent to $53.2 billion in August, marking the fourth consecutive monthly increase since the record decline in April. Core retail sales—which exclude automotive and gasoline categories—also rose 0.4 percent on higher sales at building material and garden equipment and supplies dealers (up 4.5 percent) and food and beverage stores. (StatCan)

Sales of existing U.S. homes rose by 9.4 percent in September to a seasonally adjusted annual rate of 6.54 million units. On an annual basis, sales were up by 20.9 percent. September’s pace is the strongest since 2006. (National Association of Realtors)

NOTED

A new poll commissioned by La Presse found that 33 percent of Quebecers believe retailers make more from online than in-store sales, while just 13 percent believe the opposite. Patrick Delisle, director of marketing at Canac, remarks that “big myths” about e-retail persist among the public. Canac shuttered its transactional website in the spring because it wasn’t profitable enough, even without the option of home delivery.

ST. JACOBS, Ont. — Major changes have occurred at Home Hardware Stores Limited over the past couple of years. And most recently, the company’s merchandising department has seen a raft of new faces, beginning with the hiring of Marianne Thompson at the beginning of 2019.

Thompson came from the vendor side—she spent almost nine years at Alexandria Moulding before joining Jeld-Wen in 2017. At Home Hardware, as senior vice president, merchandising, her buying teams have undergone a major overhaul. She spoke recently with Hardlines.

One concern that dealers and vendors alike have expressed to Hardlines is the state of the culture of Home Hardware, as established by co-founder Walter Hachborn.

Thompson was happy to address that point. She notes that what underlies the changes taking place is the company’s shift from operating as a wholesaler, whose customers are primarily the dealers, to being “an integrated retailer.” That means the focus is on the end customer walking into those dealers’ stores.

“In a wholesale model, we had our dealers at the centre of the business model. And moving forward, it’s about having consumer-centric assortments.” That means putting the customer at the centre of that model. “It’s a significant, fundamental shift. It’s about understanding consumer insights, how consumers shop categories and making sure our dealers have the best-in-class assortments—and obviously having that selection in our distribution centre to support them.”

Thompson 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.”

Looking internally, a number of the new hires on her team have been drawn from other large retailers, including Canadian Tire, Lowe’s Canada and Sobeys. Here again, Home Hardware has broken from tradition, having traditionally encouraged hiring from within.

“It’s really invaluable, as we build out the customer-focused assortment, how to buy for category management assortment is different than the wholesaler model,” says Thompson, adding that the new faces from other retailers bring real expertise.

“Today, Home Hardware is a brand that Canadian’s know, love and trust. We are on a journey to strengthen this great organization which serves over 1,000 communities across Canada. We are locally owned, genuinely Canadian, and we are building on the best of the past to ensure an even brighter future,” she adds.

BOUCHERVILLE, Que. — BMR Group’s totally virtual trade show took place from October 5 to 8 under the theme “Strong. Here. Now”. The theme reflects network members’ engagement and positive attitude during an exceptional year. The online event featured new product information that also revealed some new lines and strategic growth categories for the group.

The format enabled the company to offer a series of webinars that featured new products and shared BMR Group’s vision with its member dealers.

A private, web-based platform was specially designed to give BMR dealers access to relevant information to support them during their annual bookings. According to BMR, the event was “a huge success,” as indicated by the levels of online participation it received. The webinars were viewed either live or in their recorded formats more than 2,800 times. Nearly 1,250 connections were recorded on the web-based platform dedicated to the event.

Among the many new products presented to dealers was a new urban flooring concept aimed at making BMR a leader in that field. The company also took the opportunity to roll out its new modern kitchen and plumbing assortment, as well as new lines in fast-growing categories such as horticulture.

As with the live show of the past, BMR wanted to celebrate the year’s achievements with its members. The show’s closing event took place virtually before a crowd of 500 dealers, employees and suppliers. The group presented 20 awards in the categories of growth in purchase volume, suppliers of the year and entrepreneurship, where dealers who made acquisitions or renovated their stores were recognized.

The Quebec-based group, which serves more than 300 building centres and hardware stores in Quebec, Ontario and the Maritimes, also took the opportunity to highlight the arrival of five new dealers—four in Quebec and one in Ontario.

During the closing event, CEO Pascal Houle presented an honorary award to all BMR dealers to express his appreciation for their exceptional work in recent months.

SPECIAL REPORT — A single retail chain accounts for almost one-quarter of retail home improvement sales in British Columbia. In Quebec, one independent chain, with fewer than 30 stores, has almost as much market share as all 130-plus Home Hardware dealers.

These are just some of the insights in the 2020 Hardlines Market Share Report.

The report compares the sales strength of the various banners and buying groups based on province and region. For example, Castle Building Centres is second only to Home Hardware for share of market in Newfoundland and Labrador. While Home Hardware has just over 50 dealers in the province, Castle’s 37 member dealers there provide solid competition in the number-two spot.

The latest Hardlines Market Share Report breaks out the sales by banner of every major retail banner and buying group in Canada by province. The data is accompanied by store counts and estimated sales per region.

This exclusive report, only available from HARDLINES, features:

• Sales by province and region of every key hardware and home improvement retailer in the country;
• Market share broken down by store format;
• Charts and graphs to visually represent all data;
• Market share by province of all the hardware and home improvement retailers in Canada, including year-over-year comparisons.

The report, in handy PowerPoint format, provides never-before released information on the market share in every store format, region and province using sales data for year-end 2019.

(For more info or to order your own copy of the Hardlines Market Share Report, click here!)

CHHMA appeals to feds to create rules for vendor contracts with retailers

TORONTO — As retailers grab up any product they can to keep their own customers satisfied, vendors are having trouble keeping enough inventory of their own. But efforts to stockpile can be hampered by limits to staff and output that were in place months ago based on yearly forecasting.

Now, vendors are feeling further pressure from large retail customers even as infection rates are on the rise in many parts of the country. Loblaw Cos. revealed recently it would fully reinstate fines to suppliers for light shipments. That charge had been suspended in March as demand became unpredictable. The grocery giant had begun to phase fines in again in June while still allowing for light shipments when demand soared above forecasts.

According to Sam Moncada, president of the Canadian Hardware and Housewares Manufacturers Association, this is not a strategy that has emerged in the home improvement channel. But it’s the kind of thing that concerns his members. “The vendors are trying to be responsible and respectful, trying to meet the needs of all their customers,” he says. This kind of move would add pressure while the pandemic continues to rage and force them to play favourites with their retailer customers, he says.

A common practice, especially in grocery, is for retailers to begin deducting two or three percent off the amount owed on invoices for everything from stocking fees to development charges. Walmart Canada went even further back in July when it announced it would withhold payments to suppliers as a way to force them to fund the chain’s physical and e-commerce expansion efforts.

With the increase in executives and merchants getting hired from the large grocery chains by home improvement retailers, such practices are growing in this sector.

CHHMA has been lobbying the federal government to adopt a “code of conduct” for retailers that would set guidelines for their negotiations with suppliers. The concern among vendors is so great that CHHMA is now working with an economic advisor at Innovation, Science and Economic Development in Ottawa.

One result was the drafting of a letter that has been sent out to various ministers asking them to review retail practices and look for ways to support Canadian vendors and Canadian jobs. The letter states in part that “years of government-approved mergers have left just a few retailers in control of more than 80 percent of retail sales in Canada.  These giants have long implemented unfair practices that contribute to high costs … and make Canada increasingly uncompetitive and severely limit manufacturing investment and job creation.”

“We’re asking the federal government to put something in place that would include discussion with the vendors,” says Moncada. He’s pushing for rules or some kind of legislation that would limit the kinds of changes or revisions a retailer can add to contracts after they’ve been negotiated.

He’s heartened by the fact that the feds approached CHHMA looking to help. “Kudos to the federal government for reaching out to various industries and looking for ways to keep the economy on track.”

At OS&B, Alison Watson has joined the plumbing manufacturer as retail manager. Watson has an extensive background in the retail sector, from account management and support roles to selling to contractors and builders. Her background includes 11 years at CertainTeed and more than 12 years at Home Depot.

… that we are always looking for new products to feature for dealers? We have two publications that serve home improvement retailers. Our print magazine, Hardlines Home Improvement Quarterly, and our monthly e-newsletter, Hardlines Dealer News, both reach audiences of dealers and store managers across the country. And one of the things we know they are interested in is new products. If you’re a supplier with new products that are available to Canadian dealers, let us know! Send your product info to our New Product Editor, Geoffrey McLarney. (And yes, this is a free editorial service!)

VAUGHAN, Ont. — TIMBER MART’s buying show is the latest event to shift to remote participation. The show will take place February 8 to 11, 2021 via an online trade show platform. The buying group is expecting a healthier turnout at the TIMBER MART Virtual Buying Show than it has had at in-person events. “Without barriers to entry like cost of travel and time out of the store, we expect that more of our members will attend this show than ever before,” TIMBER MART CEO and President Bernie Owens said.

ST. JACOBS, Ont. — The Kawartha Home Hardware Group is slated to open its newest store by the end of November in Lakefield, Ont. The new Home Building Centre will occupy a site acquired from another banner, right behind the local Foodland store. General Manager Frank Geerlinks has plans to showcase the new store once the shelves and lumber yard are fully stocked and finishing touches on the retail space are complete.

BOUCHERVILLE, Que. — Lowe’s Canada has announced that its Heroes Campaign has raised more than $2.1 million for some 235 non-profit organizations and public schools across the country. This year, for the first time, 47 stores affiliated with the RONA banner and five distribution centres in the network joined Lowe’s, RONA and Reno-Depot corporate stores in the campaign. Throughout September, 289 Lowe’s Canada network sites joined forces to raise funds in support of their chosen partner organization’s mission or specific project.

MISSISSAUGA, Ont. — Walmart Canada is seeking to immediately hire 10,000 new workers. The hiring news follows a $3.5 billion investment in the business to generate growth and simplify the connection for customers between online and in-store shopping. The investment over the next five years will lead to the use of advanced technologies to move products as quickly as possible. The jobs include e-commerce store associates who prepare online orders, drivers to deliver those orders and grocery staff.

ATLANTA — The Home Depot has announced the winners of its 2020 Innovation Awards for state-of-the-art products. The Overall Winner is the Frigidaire Air Fry Range by Electrolux and the First Runner Up, also in the cooking category, is the Masterbuilt Gravity-Fed Grill/Smoker. Second Runner Up is the Lutron Sunnata Touch Dimmer with LED+ Technology. The Home Depot held its annual supplier meeting and 2020 Innovation Awards virtually for the first time, with suppliers and partners joining virtually for a live-streamed ceremony.

OAK BROOK, Ill. — Ace Hardware Corp. has placed fifth in the 2020 Franchise Times Top 200 List. The magazine’s annual list ranks the largest U.S. franchises by global sales. Ace Hardware first moved up to the number-five spot last year after four consecutive years in sixth position.

MONTREAL — Richelieu Hardware reported Q3 sales of $311.2 million, a 15.6 percent increase from the year prior. Sales to hardware retailers and big boxes stood at $64.7 million, up 82.8 percent over Q3 of 2019, amid the surge in demand in the wake of the COVID-19 outbreak. In Canada, Richelieu recorded sales of $203 million, up $23.1 million or 12.8 percent from a year ago, of which 8.2 percent was from internal growth and 4.6 percent from acquisitions.

NORWALK, Conn. — The National Hardware Show held its first-ever virtual event last week. It offered participants a platform for viewing new products and setting up virtual meetings with online exhibitors. They could also connect with NHS on Facebook and Instagram for real time updates. A big part of the show was the educational aspect, hosted mainly by the North American Hardware and Paint Association, through its All-Industry Conference.

NOTED

Retailers are struggling to keep bird feed stocked amid a spike in demand. Ontario-based Armstrong Bird Food supplies chains such as Canadian Tire, RONA and Canac. Ingrid Smith, who heads up customer service at Armstrong, confirmed the shortage in a note to Quebec City’s Le Soleil.

OVERHEARD…

“There are several studies that show that increased evening daylight actually gets people out shopping, so it helps our small businesses.”
—Jeremy Roberts, Ontario MPP for Nepean, whose private member’s bill to abolish the time change has passed second reading.

ATLANTA & TORONTO — Jeff Kinnaird has been promoted to executive vice president of merchandising at The Home Depot. Most recently, he was president of The Home Depot Canada.

Michael Rowe (shown here) has been promoted to replace Kinnaird as president of The Home Depot Canada.

Kinnaird joined The Home Depot in 1996, starting in the lumber yard at the Richmond, B.C., store. He worked his way through various roles, including store manager and district manager, to become Regional VP of operations in 2005. After that, he oversaw divisional product assortment and innovation as the VP of merchandising for five years until he was appointed president of the Canadian business in 2016.

As part of the restructure, Home Depot has confirmed that Kinnaird will move to Atlanta eventually to assume his EVP merchandising role.

Prior to getting the top job in Canada, Rowe was vice president of e-commerce, marketing and contractor services, where he led all marketing and advertising efforts across Canada, as well as e-commerce, installation services, contractor services and strategy. Prior to that, he served as CFO for The Home Depot Canada. Rowe joined the company in 2006.

The changes in Canada are part of a wider executive reorg within the company out of its head office in Atlanta. Company head Craig Menear has served as CEO and president of The Home Depot since November 2014 and added the chairman title early in 2015. He has handed the president’s role to Ted Decker. A 20-year veteran of the company, Decker served most recently as EVP merchandising, before that job was handed off to Kinnaird, and now holds the COO title in addition to being named president.

RED DEER, Alta. — The acquisition of TSC Stores by Peavey Industries has created a juggernaut in the farm and ranch sector, with stores that now reach from Ontario to British Columbia. With two exceptions, the TSC stores are all in Ontario and starting this week, their signage is being switched to the Peavey Mart banner.

Doug Anderson, president and CEO of parent company Peavey Industries, is excited about the latest step in consolidating the TSC business. He’s also positive about the farm and ranch sector in general. “It’s stable. It’s strong. It’s growing, especially in the U.S.,” where, he notes, there are still lots of regional players.

Anderson sees strong growth in Canada, as well, with several smaller retailers operating. “But Peavey has established itself as the country’s leading farm and ranch retailer,” he says. And the sector has seen strong sales over the past six months. “Both Peavey and TSC saw significant increases during COVID.”

Peavey began the takeover of TSC in 2016, buying up full ownership over the following year. The union was a natural fit between the two privately held retail chains that shared a similar retail model, while being distinct geographically. TSC Stores was based in London, Ont. and Peavey is based in Red Deer, Alta. At the time of the takeover, Peavey had 36 stores ranging in size from 10,000 to 35,000 square feet. The stores feature a wide assortment of hardware, farm and pet, automotive and home improvement products. Serving Western markets, most of Peavey’s stores are in Alberta and Saskatchewan.

The TSC acquisition added 51 stores that average 16,000 square feet in size. Except for two stores in Manitoba, all of its business is based in Ontario. Those two Manitoba stores turned out to be the testing ground for Peavey’s plan to switch out the TSC banner. The locations, in Winkler and Brandon, were converted to Peavey Mart soon after the initial takeover.

According to Jest Sidloski, vice president marketing, e-commerce and customer experience at Peavey, the success of the transition wasn’t a given, as the retailer did not have any of its own stores in that province. “It was not really Peavey country,” he says.

Nevertheless, the company did get feel for the viability of a wholesale switch of the TSC banner. “We got some learnings from that and saw some great success,” Sidloski continues.” It was really Peavey’s introduction to Manitoba and it was received very well.”

The conversion process is expected to be completed by early 2021.

Anderson adds that the entire process of the TSC takeover gave him and his team a chance to dig deeper into the Peavey business. “Both companies are similar on the surface. But there are differences in how they were built up. The structure of TSC was a huge opportunity for us to really grow as a combined entity.”

NORWALK, Conn. — The National Hardware Show is starting today, and you can still attend, as it’s a virtual event. It runs until October 15.

A virtual exhibitor directory of NHS suppliers and manufacturers will showcase products and brands across a range of categories. Other highlights of the event include a new product showcase, which will allow buyers to source and expand their current product offerings, and a “Pitch Panel” hosted by the United Inventors Association.

A big part of the show is the educational aspect, hosted mainly by the North American Hardware and Paint Association, through its All-Industry Conference.

“We are pleased to be able to host NHPA virtually, as the full program will offer a mix of keynotes and panel presentations from an all-star roster of industry professionals with different perspectives and valuable insight to help evolve and propel businesses forward,” says Rich Russo, the NHS’s industry VP.

As keynote presentations, NHPA executive VP Dan Tratensek will hold a conversation with Dan Starr, CEO and president of Do it Best Corp., on “How Independents Are Still Disrupting”. Kevin Hancock, chairman and CEO of Hancock Lumber, will deliver a talk entitled “Employees First: Disrupting Assumptions for More Loyal Customers and Stronger Sales.”

(Click here for full program details and dates.)

WINNIPEG — For the first time in its history, the Western Retail Lumber Association’s Building & Hardware Showcase in-person event has been cancelled, a result of the ongoing COVID-19 pandemic. The show was originally scheduled for January 21 to 22, 2021 in Winnipeg.

To ensure that the WRLA can safeguard the health and safety of members, the association has developed a platform that will include its publication, Yardstick, supported by an app. With these tools, the WRLA intends to provide a new platform to engage vendor and dealer connections, offer education opportunities and build industry awareness.

“The WRLA board and staff are disappointed that we had to cancel one of the industry’s largest shows,” says WRLA President Liz Kovach. “We recognize this event is important to members’ business development and these alternatives will allow everyone to still collaborate, network and showcase innovation to the industry.”

The January issue of the association’s bi-monthly Yardstick magazine will contain a special product showcase section. Through the publication and app, members can participate in:

• member “booths” with company profiles, product info and staff intros created by the members;
• a new products feature area;
• show specials;
• warehouse sales;
• opportunities to connect with other members;
• in-app contests.

Members can also have virtual product knowledge sessions hosted by the WRLA. The association will hold various education sessions on industry and business topics from January 18 to 29, 2021.

(For more information on the show publication and app, download the media kit here.)

Greg Muir has been named west region sales manager at Allegion, PLC. He is based in Okotoks, Alta.

Steve Guterres has been promoted to director of sales in Canada for BLANCO. He will report to Garth Wallin, president and CEO of BLANCO North America. Guterres joined the BLANCO Sales team in 2011 as a key account manager before being promoted to national sales manager. He was made senior national sales manager in 2017.

… that just two provinces account for more than half of all retail home improvement sales in Canada? Or that one retailer has twice the share of the market in British Columbia than the nearest competitor? It’s all in the new Hardlines Market Share Report. Hardlines subscribers save more than 20 percent on pricing, so be sure and take advantage of this! Click here now to learn more and order yours!

BOUCHERVILLE, Que. — Lowe’s Canada will pay a discretionary bonus to all eligible full-time, part-time and seasonal associates working at Lowe’s, RONA, or Reno-Depot corporate stores, contact centres, and supply-chain facilities in Canada in the latter half of October. Full-time hourly workers will receive $300, and part-time and seasonal associates will receive $150. The October bonus is in addition to the discretionary bonuses paid in March and August, and to the special $2-per-hour wage premium paid from April through July.

WINNIPEG — Sexton Group has announced the addition of three new members. Urban Windows & Doors in Sudbury, Ont., was founded in 2006. Midwest Island Woodworking Inc. is located in Nanaimo, B.C., and offers environmentally friendly flooring. Rounding out the new recruits is 16 Lumber, located in Russell, Man., near the Saskatchewan border.

BOUCHERVILLE, Que. — BMR Group has added Centre de rénovation Port-Daniel in the Gaspé as a member in Quebec. Richard Briand is the store owner. With a sales area of 2,800 square feet and a 15,000-square-foot lumber yard, the overhauled store will offer nearly 6,000 products.

OTTAWA — Lee Valley Tools is taking its in-store COVID-19 precautions a step further with the launch of a new mobile shopping tool. Integrated with the LeeValley.com website, it allows for mobile contactless shopping in each of the company’s 20 locations. Customers do not need to download a separate app to use the mobile feature. They simply visit LeeValley.com when they enter the store and click a barcode icon, select their store location and start shopping.

SUPPLIER NEWS

OSAKA — OLFA Corp. has announced the establishment of two new companies in North America: OLFA North America Inc., based in Oakville, Ont., and OLFA U.S.A. Inc. in Terre Haute, Ind. The move aims to strengthen OLFA’s sales and marketing capabilities and product development. Both companies are wholly owned subsidiaries of OLFA and sales activities will commence December 7. OLFA has been selling products in North America through its distributor, Corelle Brands, but effective December 5, the distribution of OLFA products will transition from Corelle Brands to the two new companies. (For Canadian inquiries regarding OLFA products, contact: Sales Canada.)

ECONOMIC INDICATORS

Housing starts in September slid to a seasonally adjusted annual rate of 208,980 units, down 20.1 percent from 261,547 units in August. The SAAR of urban starts decreased by 21.1 percent to 195,909 units. Multiple urban starts decreased by 27 percent to 146,005 units while single-detached urban starts increased by 3.4 percent to 49,904 units. Rural starts were estimated at a SAAR of 13,071 units. (CMHC)

Total investment in building construction increased five percent to $16 billion in August. Residential-sector investment increased 8.2 percent to $10.8 billion, while non-residential investment decreased 1.2 percent to $5.2 billion. Investment in residential construction rose for the fourth month in a row in August, with a 5.4 percent increase in the single-family sector to a total of $5.4 billion. (StatCan)

OVERHEARD…

“This new format is actually a really exciting opportunity for members. This is a fresh way for vendors to reach people they would have seen at the show, plus they can also connect with others who may not normally travel to the show. … This is the next-best thing to an in-person event.”
—Joel Seibert, chair of the board of the Western Retail Lumber Association, on the WRLA’s move to a virtual buying show in January.

“We continue to grow our diverse member base across Canada, and our three new members from eastern and western provinces reflect that.”
—Eric Palmer, vice president and general manager of the Sexton Group, on the recruitment of three new member dealers.

ST. JACOBS, Ont. & RED DEER, Alta. — Home Hardware held its 2020 Virtual Fall Market from September 13 to 23. Dealers and store staff could view presentations, while suppliers showcased their products on a digital platform.

But they weren’t alone. Peavey Industries held its first online market for its Ace dealers last week. According to Scott Bennett, senior vice president of merchandising, the event was well received over the two days it was held, attracting Ace dealers from across the country to connect with more than 150 vendors. The platform will remain open until October 13 for dealers to finish placing orders.

Meanwhile, BMR Group is hosting its dealer market online beginning today and running until October 9. It replaces the traditional live show that is historically held the first week of November in Quebec City. The company has moved up the date as it intends to roll out its new Solstice ERP system next month.

Lowe’s Canada says this year’s RONA buying show will be held exclusively online. It’s open to all RONA affiliated dealers and is expected to showcase about 250 vendors. It starts October 19 and will last until November 27.

The model appears to be working. Both Home Hardware and Peavey expressed satisfaction with the virtual buying process. “We are thrilled with the success of our 2020 Virtual Fall Market, which built on the experience and capabilities of our inaugural virtual market held in the spring,” said Home Hardware President and CEO Kevin Macnab. “Our enhanced platform allowed us to deliver engaging presentations in our virtual auditorium and host an interactive tradeshow, providing dealers with an even better market experience.”

For Peavey, Bennett said his team learned a lot from the online Ace show. Dealers had access to the senior executives at Peavey, as well as the entire merchandising team over the two days. He expects the company will build on what they’ve learned to better connect dealers and vendors in the future.

BOLTON, Ont. — Less than two months into his tenure at the helm of TORBSA, Paul Williams is already busy making good on his pledge to focus on dealer recruitment and vendor relations. Those objectives feed into each other as Williams is able to draw on his Rolodex to build relationships on both sides of the business.

“Our plan short-term and long-term is to grow the membership. I come from the vendor community and I have a lot of contacts on that side,” he says. “Whether it’s from dealers who aren’t with a group currently or dealers who are with a competitor, growth is the goal.”

In September, the buying group announced it was welcoming A Line Acoustic Supply, a distributor of drywall, ceiling and insulation products from outside Toronto. Later in the month, Rehill Building Supplies (shown here), a Peterborough, Ont., masonry specialist dating back to the 1870s, followed suit.

Those expansions followed the July announcement that Matériaux de Construction Létourneau, with locations in Waterville and Sherbrooke, Que., was joining TORBSA, growing the buying group’s footprint outside its Ontario base.

Williams says that the group’s transparency and low overheard are key to its appeal to dealers. “We do full financial audits at the end of the year that we give back to our shareholder-dealers so nothing is a secret,” he explains. “All our programs with our vendors are negotiated with our shareholders so … in terms of rebates, we don’t hide anything.”

“We have a lean team in Bolton,” he adds. “We don’t hire anyone who would be unnecessary, for marketing reasons or to have bells and whistles. Costs are low in order to put dollars back in dealers’ pockets.”

That cautious and strategic approach extends to dealer recruitment. Williams says that building trust with prospective recruits takes time and constant communication.

“I’ve been on the job for eight weeks and had no less than 16 or 17 discussions with dealers across the country. It’s always ongoing.”

LAVAL, Que. — A national merchandising agency based in the Montreal area is adding services to help its vendor customers deal more effectively with the challenges of the current COVID-19 pandemic. RDTS has begun surveying those vendors to get an indication of how the pandemic is affecting business. In mid-August, the company asked how vendors have been impacted.

While retail has been strong across the country, the results from the supply side were surprisingly mixed. Almost one-third saw sales increase during the crisis, while 29 percent said it had “no impact.” Yet fully 40 percent reported a decrease in sales, reflecting just how deeply the effects of the pandemic are being felt.

RDTS President Robert Di Tomasso says sales have certainly increased for a range of vendors, but some did not benefit from the surge in lockdown-inspired DIY that has supported most home improvement retailers through the past six months.

The current DIY boom started with paint and decorating projects, with those vendors reporting record increases—and empty warehouses. When people moved outdoors to begin landscaping and patio projects, related suppliers of these products saw similar gains.

However, product demand has been shifting, says Di Tomasso. “Plumbing and electrical categories did not enjoy as much sales growth, as contractors who drive these categories could not work on residential jobs for three months.”

Looking ahead, the survey asked when vendors expect a return to normal conditions. Almost 10 percent saw it happening right now, with one-fifth (21 percent) anticipating a return by year’s end. However, two-thirds said a recovery will take until 2021 to occur. An even more sobering outlook was reported by eight percent of respondents, who said business will never be like before.

RDTS is planning a second survey in coming weeks, reflecting the effects of a second wave now being felt in some parts of the country. “We will continue to survey the industry on a regular basis and collect more intimate data,” he says. “It helps us better understand the consumers, but also the changes occurring quickly in consumer behaviour, as well as retail offerings and product categories,” says Di Tomasso.

“We want to keep close to our customers with retail insights and marketing intelligence.”

ATLANTA — Over the past decade, Home Depot has seen a steady rise in its contractor customer base. Coming out of the global recession of 2008 and 2009, those pro customers got back into Home Depot stores faster than DIYers.

The company has invested heavily in catering to pros in recent years. But coming through the current COVID-19 pandemic, Home Depot, like so many home improvement retailers, has seen a surge in retail traffic. Speaking recently at an investment conference in the U.S., Chairman, President and CEO Craig Menear said he estimates pro business for Home Depot at about $60 billion, or 54 percent of overall sales. But he notes that DIY has been leading the charge in recent months.

This remains good news, Menear says. Despite the rise of the pro in recent years, he says he doesn’t want the company to lose sight of the DIY customer base upon which Home Depot was built.

During COVID, he says, sales increased by double digits in 13 of the retailer’s 14 categories. Plumbing was the one category that fell short. Although sales here were in the high single digits, plumbing suffered overall as the installation business fell off and these types of contractor jobs were put on hold.

DIY projects that gained momentum in recent months included lawn and garden as well as paint and décor. And even though lockdowns have helped accelerate DIY sales, the company is also seeing the millennial generation begin to embrace a more do-it-yourself attitude.

The Home Depot Canada is experiencing a similar trend. “We recognize that through COVID-19, both our Canadian consumers and pros have faced unique challenges, but engagement remained high through both segments,” says a company spokesperson. “Many millennials are tackling DIY projects or renos for the first time, while we’re also seeing more mature shoppers purchasing online for the first time.”

Giant Tiger Stores has appointed 17-year company veteran Paul Wood to take over as CEO from founder Gordon Reid, as conditions for the discount goods market heat up during the pandemic. Wood says the company will continue to look for expansion opportunities in new markets.

… that more than half of all retail home improvement sales last year came from just four retailer groups? That is just one of the many statistics you’ll find in the 2020 Hardlines Retail Report. It’s your definitive guide to the state of the industry, with in-depth analysis of the industry’s key players, breakdowns by province and store format and forecasts for 2021. Hardlines subscribers save more than 20 percent on pricing, so be sure and take advantage of this! Click here now to learn more and order yours!

BOUCHERVILLE, Que. — Lowe’s Canada is recruiting to fill more than 625 full-time and part-time positions in its RONA and Reno-Depot corporate stores in Quebec. About 30 positions are also available at the Boucherville distribution centre. Available positions include sales specialists, lumberyard associates, department managers, cashiers, stockers and customer service assistants.

BOUCHERVILLE, Que. — RONA Weyburn is celebrating its grand opening under dealer-owner Jeff Chessall. The store, which is near the Saskatchewan-North Dakota border, now boasts a 10,000-square-foot sales area, a 25,000-square-foot outdoor lumberyard and a 3,000-square-foot garden centre.

ISSAQUAH, Wash. — Costco Wholesale Corp. reported Q4 earnings rose by 16.36 percent to $3.13 per share. Revenues of $53.38 billion were up 12.39 percent. For the fiscal year, net income came to $4 billion, compared to $3.66 billion. In Canada, comp sales rose by 9.1 percent for the quarter and five percent during fiscal 2020.

SUPPLIER NEWS

DELTA, B.C. — Regal ideas is partnering with Melville, N.Y.-based Sherwood Lumber for the distribution of Regal’s outdoor living products in the U.S. Northeast. Sherwood Lumber will stock Regal ideas products in its DCs and offer the manufacturer’s complete line of products.

QUEBEC CITY — Building trades have been spared as Montreal and Quebec City enter a “red zone.” These Quebec regions, as well as Chaudière-Appalaches, which have all entered the highest level of provincial public health measures, won’t see restrictions re-introduced on construction sites. The province’s initial lockdown measures saw jobsites left in limbo from March 25 to May 10. The regional “red alert” saw restaurants and bars close October 1, even though most other businesses remain open.

ECONOMIC INDICATORS

Sales of new U.S. homes rose by 4.8 percent in August to a seasonally adjusted annual rate of 1.011 million units. It’s the highest level those sales have reached since September 2006. (U.S. Commerce Dept.)

NOTED

The U.S. government is taking criticism for wanting to appeal the World Trade Organization’s latest ruling on the softwood lumber dispute, even as it has worked to delegitimize the agency’s appeals body. Currently, the WTO lacks a quorum of judges, as the U.S. has vetoed the appointment of replacements for retiring incumbents in protest at what it sees as the body’s overreach. The Canadian government has hit back at the apparent contradiction in the U.S. seeking recourse to a body it decries as unfair.

OVERHEARD…

“We’re really not set up for new construction. We have homebuilders that shop at the Home Depot. But that is not what we are really set up to do. We really don’t cater to new construction. We couldn’t put together a lumber package to save our life. That’s just not our forte. We don’t have the space in our stores to be able to do that. That’s just not who we are.”
—Craig Menear, chairman, president and CEO of the Home Depot. He spoke recently at an investment conference about the importance of the pro customer.