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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DID YOU KNOW…?

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

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

IN MEMORIAM: Bob Vereen

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

SUPPLIER NEWS

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

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

ECONOMIC INDICATORS

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

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

NOTED

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

OVERHEARD…

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DID YOU KNOW…?

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

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

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

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

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

SUPPLIER NEWS

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

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

ECONOMIC INDICATORS

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

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

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

OVERHEARD…

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DID YOU KNOW…?

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

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

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

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

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

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

SUPPLIER NEWS

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

ECONOMIC INDICATORS

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

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

NOTED

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

OVERHEARD…

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

Home Hardware Stores confirmed last week that its 2021 Fall Market will be a virtual event. It will be held over eight days, from Sept. 27 to Oct. 4, in an effort to “provide the entire Home community with an opportunity to connect and for dealers and store staff to engage with suppliers over an interactive platform,” according to the company.

Under the theme, Unite, the show will be Home Hardware’s 117th market, and the fourth to be held virtually, a response to the limitations imposed by the worldwide pandemic. And it reflects the uncertainty that pervades the industry—and the world.

“Home Hardware continues to leverage technology in new and innovative ways to support our dealers’ growth and profitability,” said Kevin Macnab, Home Hardware’s president and CEO, in a release. “While we look forward to returning to a physical market when it is safe to do so, we continue to provide an engaging virtual experience that delivers value to both our dealers and suppliers.”

Other events have either taken the plunge to commit to a live event or are still on the fence. Orgill, the Memphis-based hardware wholesaler, holds its Fall Dealer Market each year in August. After that event was forced to go virtual last year, the company had hoped to return to a live event this summer in Chicago. Now, Orgill will host an online buying event that will run from Aug. 16 to 27.

Closer to home, our own Hardlines Conference is being planned as a live event from October 19 to 20, with a virtual component to provide wider access to our speakers. The Outstanding Retailer Awards, typically held at the end of day one of the conference, will also be broadcast virtually in tandem with the live gathering.

The day after the Hardlines Conference, the National Hardware Show starts in Las Vegas. The show, which has historically attracted upwards of 25,000 people from all over the world, will take place with updated health and safety guidelines. These will include obligatory face masks, temperature screenings for everyone entering the show, and plenty of sanitation stations available throughout the show floor.

But many Canadians have been reluctant to travel internationally. According to Sam Moncada, president of the Canadian Hardware & Housewares Manufacturers Association, a recent poll of his members determined that less than five percent were intending to attend the Vegas show. In fact, many of his members have company restrictions against any travel at all before the end of the year.

Uncertainty will remain at least until then. BMR Group typically holds its show in Quebec City in the early part of November, drawing member-dealers from across the province, plus the Maritimes and Ontario. After conducting a virtual show last year, BMR has yet to confirm which formula it will use for 2021.

Hardlines is pleased to announce the call for entries for the 2021 Outstanding Retailer Awards. The awards, which recognize the finest retailers in the hardware and home improvement industry, are national in scope. All Canadian hardware and home improvement retailers and managers who have operated under their current ownership for at least two years are eligible.

Anticipating the ability to host a live event, Hardlines will offer winners a trip for two, plus two nights’ accommodation in Niagara-on-the-Lake, to attend the Hardlines Conference on Oct. 19 and 20 and participate in the ORA Gala Dinner. In addition, winners will receive an inscribed plaque, a write‐up in Hardlines Home Improvement Quarterly magazine, and a customized video and photo ready to be sent to local media.

Categories to enter:

• Hospitality, an environment that fosters bringing people together and
• Best Hardware Store (any size);
• Best Building Supply/Home Centre (under 15,000 square feet)
• Best Building Supply/Home Centre (over 15,000 square feet)
• Young Retailer Award (a store manager, owner or employee 35 or under)
• Marc Robichaud Community Leader. This award is open to all stores. Its purpose is to celebrate the outstanding contributions, events, charitable donations, etc., made by a store’s staff/managers/owners to the community they serve
• Best Large Surface Retailer (over 65,000 square feet)
• Best Contractor Specialist Store

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

ORA submissions are due June 25.

Hardlines is planning to award the winning dealers in person during our Gala Dinner at this year’s Hardlines Conference, which will be held Oct. 19 and 20 at the Queen’s Landing Hotel, Niagara-on-the-Lake, Ont. While the state of the world remains uncertain, we are optimistic that the Hardlines Conference and Awards Gala can be staged live.

Hardlines is committed to providing a safe and comfortable environment in which to host the conference and the awards. We will provide updates as the event draws nearer.

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

Metro Inc. is developing a code of practice to govern its relations with suppliers, La Presse reports.

“We are working on a draft guide and we have called on other stakeholders in the chain,” Marie-Claude Bacon, VP of public affairs and communications, told analysts on a recent earnings call.

The move comes after Sobeys opted earlier this year to draft a code of conduct, including a dispute resolution mechanism, in conjunction with suppliers group Food, Health and Consumer Products of Canada. That announcement followed Walmart’s decision to impose “development fees” on suppliers, which prompted protests from FHCP.

The practice is drawing heat from both vendors and consumers. COVID has benefitted grocery retailers, and many feel those benefits have not trickled down to either workers or suppliers. For example, Loblaw Cos. saw its profits grow a healthy 30 percent in the first quarter.

Sam Moncada, president of the Canadian Hardware & Housewares Manufacturers Association, applauds Sobeys’ move to adopt a code of conduct. He says his vendors remain concerned by practices in other retail sectors like grocery, as hardware retailers may want to adopt them in turn. That possibility becomes even more likely given the number of senior executives and merchants who have come over from grocery to some of the larger retail groups in this industry.

Moncada says the trouble started when Walmart imposed fees last fall. Walmart began charging vendors an “infrastructure development fee” of 1.25 percent of the price of products, with an additional five percent for wares sold online. All of this was on top of existing fees already agreed to with each vendor.

“Our members banded together saying this is not fair,” says Moncada. “It’s not ethical.” Now, he adds, some provincial governments, including Quebec and Ontario, have been looking at this issue. But the pandemic has pushed it down on the list of priorities.

Moncada stresses that the issue is not confined to the grocery. “That’s something we’re definitely trying to do—to communicate to governments that this affects all big retailers—including the hardware side, absolutely.”

The retail home improvement industry is facing numerous challenges amid fundamental transformations. Moreover, says Belgian retail expert Thierry Coeman, the pandemic will continue to have a tremendous impact on the future of the home improvement store internationally.

Coeman, author of the report “Hammertime,” delivers a framework that retailers and suppliers should consider for reshaping the future home improvement store.

Coeman analyzes what is needed to create a renewed business model, entirely focused on service patterns. Tomorrow’s store “needs to be articulated around four principles, all driven by smart technology.

These are:

• Hospitality, an environment that fosters bringing people together and a sense of community
• Education, putting the onus on retailers and suppliers to provide shared experiences
• Ability to share experiences and cross-pollinate know-how beyond the expertise of store staff
• Gamification, “through product and service workshops or demonstrations which, all together, will genuinely enhance the ‘fun factor’”

The concept of the store itself must also change, says Coeman. The front end needs to offer a “community platform” for encounters between expert staff and end-users. The focus here will be on inspiration and advice for the DIYer. The successful back end will offer “a B2B service platform with a strong focus on tailor-made end solutions, inventory, and delivery.” It will be tailored to the pro customer.

“The intelligent interaction between the front end and back end needs to be perceived as a natural conversion from imagination—ideas and dreams, to reality—implementation of expectations,” Coeman notes.

(This is a fascinating white paper, written by a long-time friend of Hardlines. To order the complete document at a cost of just €25, email Thierry Coeman directly.)

DID YOU KNOW…?

… that the next instalment of our podcast series, “What’s in Store,” is coming out this week? This time we speak with Doug Anderson, president and CEO of Peavey Industries, a company that has undergone terrific growth in recent years. He talks about amalgamating TSC Stores into Peavey Mart, and the decision to take over the Ace Hardware banner in Canada. Hear about Anderson’s vision for a truly national hardware company. Click here then scroll down to sign up for our incredible podcast series!

Home Hardware Stores Ltd. has been named one of Canada’s Best Managed Companies for 2021. Established in 1993, the designation is sponsored by Deloitte Private, CIBC, Canadian Business, Smith School of Business, and TMX Group.

Canadian Tire Corp. Ltd. turned a Q1 profit of $151.8 million after posting a $13.3 million loss a year ago. Revenues rose nearly 10 percent to $3.32 billion, up from $2.85 billion in Q1 2020. Sales at the Canadian Tire banner grew by 20.1 percent. Comp sales across the Canadian Tire Retail business rose by 19.2 percent, while online sales ballooned by 257 percent to almost $450 million.

Lowe’s Cos. has introduced the Lowe’s House of Curators, a series of design collections curated by tastemakers of note. For the first selections, the retailer partnered with interior designer Iris Apfel. Her picks include Palm Beach in Your Backyard, a line of 52 outdoor living products, and the 70 pieces in Modern Maximalism, which combine “small details with big personalities.”

Atlanta-based commercial dealer GMS has reached a $135 million cash deal to acquire Westside Building Material, an independent U.S. distributor of interior building products. GMS is growing in Canada through its ownership of companies such as WSB Titan, Slegg Building Materials, and Rigney Building Supplies.

SUPPLIER NEWS

CanWel Building Materials Group Ltd. reported Q1 revenues rose 59.1 percent to $519.9 million, up from $326.7 million in Q1 of 2020. Net earnings ballooned to $34.2 million, compared to $850,000 a year ago. The sales increase was attributed to both sales volumes and pricing, as the pandemic-inspired home improvement boom continued throughout the quarter.

Laferté Renovation Center, an ILDC member based in St-Hyacinthe, Que., has adopted JRTech Solutions’ PRICER labels, becoming the first North American hardware chain to make the move to fully graphic electronic shelf labels (ESL).

Intertape Polymer Group’s revenues rose 24.2 percent in Q1 to $345.6 million, as demand rose for products such as protective packaging and water-activated tape. Net earnings increased by $4.7 million to $19.1 million, with gross profits outstripping higher expenses.

Spectrum Brands Holdings Inc., which owns Kwikset and Weiser, said last week its Q2 sales grew 22.6 percent. Sales in hardware and home improvement rose by 18.4 percent, with growth across all categories. Profits of $36.8 million, compared with a loss of $59.2 million a year prior.

West Fraser Timber Co. Ltd. said this month its Q1 earnings rose to $665 million on sales of $2.3 billion, from earnings of $9 million on sales of $890 million a year prior. The results also represented gains from the previous quarter, when the company reported a $282 million profit and revenues of $1.29 billion. Q1 also saw the completion of West Fraser’s acquisition of Norbord Inc., for $4 billion in stock.

ECONOMIC INDICATORS

Residential construction investment increased for the eleventh consecutive month, up 7.6 percent to $14.0 billion in March. Investment in single units jumped 10.7 percent to $7.8 billion. Quebec led the way with an increase of 30.4 percent, followed by Ontario, which was up 9.8 percent. Growth in multi-unit construction continued, up 3.9 percent. Non-residential construction investment rose 1.1 percent in March. (StatCan)

NOTED

Our newest Hardlines Podcast Series, The History of Home Improvement, has gone live. Our inaugural episode takes a very personal look at the legacy of Home Hardware co-founder Walter Hachborn and the circumstances that led to his being named Retailer of the Century. Click here now to sign up for the Hardlines Podcast Series!

OVERHEARD…

“We are honoured to be recognized as one of Canada’s Best Managed Companies and named a Platinum Club member for the third consecutive year. At Home Hardware, we believe talent and culture is our competitive advantage and we are proud to celebrate this designation with the entire Home team.”
—Kevin Macnab, president and CEO of Home Hardware Stores Ltd., on the company being recognized as one of Canada’s best managed.

Walter Hachborn revolutionized hardware retail in Canada. As the co-founder of Home Hardware Stores, he established a business model for independent dealers that has endured for almost 60 years.

That makes him a fitting subject for the debut episode of our new Hardlines podcast series, The History of Home Improvement.

In this podcast, we speak with Steve Payne, former editor of Hardware Merchandising magazine, then the custodian of the industry’s retail awards program. As the 20th century was drawing to a close, Payne wanted to identify a single individual to name for a special award, Retailer of the Century.

He examined the contributions of several industry leaders through the years. But, as he says in the podcast, the choice landed firmly on Walter Hachborn.

Payne offers a very personal recollection of his first meeting with Hachborn, a meeting that was to have more impact on Payne than he could have imagined. Hachborn, he soon realized, embodied all the values personally that the Home Hardware brand stood for. Those values, and the legacy he had created, assured the selection of Hachborn as Retailer of the Century.

In this brand new podcast, Payne shares his story of meeting Walter Hachborn for the first time and provides his insights on how the co-founder of Home Hardware was recognized as the most significant retail figure of the previous 100 years.

(Have a listen here as we celebrate this industry’s historical achievements.)

Online and e-commerce sales are a big concern for dealers, according to a new survey by Hardlines.

In the 2021 Business Conditions Survey, we asked dealers what their biggest concerns are. The survey went out to dealers and store managers across Canada earlier this spring. During uncertain times, they are facing new challenges at a frightening rate, including rising prices and uncertain product availability.

The surge in online sales over the past year represented a huge shift in consumer habits. For dealers and managers responding to the survey, almost 20 percent cited this as one of their biggest concerns. Through the pandemic, the shift to online sales has grown exponentially. And independent dealers are struggling to keep up.

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

However, the uptick in e-commerce among hardware and home improvement retailers is growing, if gradually. In our spring 2020 survey, fully 60 percent of dealers indicated they were not selling online. Many respondents last year said they were just beginning to realize returns from online business. Others were only just getting started.

The overall number of holdouts has shrunk to just over half (54 percent) in 2021 as more and more dealers under COVID developed their online business, even if sales levels online remain a fraction of overall sales. About one-third of respondents this year reported that e-commerce sales generated five percent or less of their overall sales. Barely 10 percent indicated they were generating more than five percent of their sales through online channels.

The survey invited comments from respondents about what they think is important now. ”My largest concern is online shopping and being able to compete. I have bought and paid for a product that is on my shelf while online sellers don’t necessarily have that same issue. They can order or pull from another location on demand,” one dealer wrote.

(Full results from our annual survey will be used to update our Annual Hardlines Retail Report, which tracks the size and growth of the retail home improvement industry and identifies the market shares of the top retailers, and the trends driving this industry in the years ahead. Click here to learn more and to pre-order your report now!)

As it grows its presence and market share in Canada, GMS is not only adding stores, it’s adding new products as well. Based in Atlanta, the giant commercial dealer operates a network of more than 260 Gypsum supply outlets across the U.S. and Canada. Its presence here includes its biggest holding in Canada, WSB Titan., headquartered in Vaughan, Ont.. WSB Titan president Travis Hendren came up from the Atlanta office to manage the business.

GMS has a growing roster of independent dealers that it has acquired in recent years.

The company is also looking at ways to fine-tune the offerings in its existing outlets, as it identifies the latest trends driving the commercial market. According to Leslie Kratcoski, vice president of investor relations at GMS, there’s been more focus on categories like exterior envelope and waterproofing, depending on the region.

Most of its outlets are heavily commercial in focus, and most of the WSB Titan locations are a good example of this in Canada. But the company has managed to pick up some pointers from its more DIY-oriented stores. For example, Slegg Building Materials on Vancouver Island supplies a range of builders and commercial customers. But it also sells to smaller contractors and DIYers. Rigney Building Supplies in Kingston is similar.

These outlets can help the commercial yards develop growth opportunities beyond their current markets. “The goal is to grow outside of these other categories, outside of the core products,” says Kratcoski.

One of those product categories is power tools. “Tools is something that we’ve seen occurring in both Canada and the U.S.,” Kratcoski says, adding that the focus here is on specialty and heavy-duty industrial grade power tools “related to our trades.” Other tools can include those for handling and working with gypsum, “but it depends on the market.”

National Hardware Show gears up with digital component, safety measures

The National Hardware Show (NHS) will return to the Las Vegas Convention Center Oct. 21 to 23 for its 75th edition. The show will take place with updated health and safety guidelines. NHS is also evolving: the traditional annual trade show is now positioning itself as “a year-round industry guidepost,” providing thought leadership, global insights, and sourcing opportunities to the hardware and home improvement industry.

“As a mission-based show, we are here to help the industry navigate rapidly changing global tides and offer resilience strategies that ensure success tomorrow,” said Beth Casson, the show’s event leader, in a release. “The 75th edition of NHS and our new year-round platform aims to power businesses with critical global insights, upcoming trends, unrivalled sourcing, and unparalleled opportunities for connection and collaboration.”

The new NHS experience will consist of three platforms in 2021. NHS Connects is the digital home of NHS and a hub for insight, discovery, information, and connection in the hardware and home improvement industry. The year-round online platform allows members to source the newest products and vendors, connect with new and current customers, and stay up-to-date with the latest industry education and content. To check out NHS Connects, please click here.

HABITAT is a new platform that delivers future outlooks, global insights, and community-building opportunities. With the intersection of merchandise and mission, this platform will live both online and onsite at the Las Vegas event. HABITAT is a showcase for big ideas, ingenuity, and innovation, driven by global shifts in culture, technology, and the environment that are shaping how homes are built and lived in.

PUNCHlist is NHS’s new editorial newsletter. The bi-weekly industry roundup will highlight the cultural shifts shaping the future of the hardware and home improvement industry. In addition to showcasing global trends, PUNCHlist includes coverage of innovative companies, products, and ideas. The newsletter is being distributed to some 45,000 industry members. To be added to the PUNCHlist distribution list, please register here.

(Click here for more information on the 75th edition of the National Hardware Show.)

After 19 years with the business, Cheryl Hamilton has announced her retirement from TORBSA at the end of May 2021. As a result, the board of directors appointed Stacey Brown as TORBSA’s new group services manager, who will also be taking on a marketing lead role within the organization. Brown has a background working with small business, developing innovative marketing strategies.

DID YOU KNOW…?

… that a brand new Hardlines Podcast Series, The History of Home Improvement, has gone live? Our inaugural episode takes a very personalized look at the legacy of Home Hardware co-founder Walter Hachborn and the circumstances that led to his being named Retailer of the Century. Click here now to sign up for the  Hardlines Podcast Series!

Peavey Industries initiated construction last week of a new Peavey Mart store in the banner’s hometown of Red Deer, Alta. A ground-breaking ceremony was held for the store, which is slated to open in the spring of 2022. Peavey is also beginning renovations this month on a location in Brooks, Alta. That store will occupy the southern end of a 23,000-square-foot former food market.

TORBSA has joined the Well Made Here initiative as a major partner. The organization, which campaigns to encourage consumers to buy Canadian, was founded by AQMAT president Richard Darveau. Among other participating companies are Castle, Home Hardware (including Patrick Morin) and Lowe’s Canada. TORBSA president Paul Williams will hold a seat on Well Made Here’s board of directors.

Home Hardware Stores has been named one of the Top 10 Most Trusted Brands in Canada in the 2021 Gustavson Brand Trust Index (GBTI). The company placed first in the Home, Office, and Garden Retailers category and seventh in the National Top 10 Most Trusted Brands. The survey, released annually by the University of Victoria’s Peter B. Gustavson School of Business, surveyed almost 9,000 Canadians.

Walmart Canada is constructing a distribution centre in Moncton, N.B., to support its grocery business in the Atlantic provinces. The retailer says the 221,000-square-foot facility represents an investment of $56 million and will create more than 200 jobs when it opens in the fall of next year.

SUPPLIER NEWS

Weyerhaeuser Co. reported Q1 net earnings of $681 million on net sales of $2.5 billion, up from $150 million on net sales of $1.7 billion for the same period last year. Earnings more than doubled from $292 million in Q4. Benchmark prices for lumber and OSB reached new record levels in the quarter, boosting average sales in those categories, which were only partially offset by higher prices on Canadian logs.

M-D Building Products has acquired the assets of Cardinal Aluminum Co. and its subsidiaries, Cardinal Architectural and Designer Moulding. Founded in 1946, Cardinal Aluminum provides custom aluminum extrusion, fabrication, and finishing to customers North America-wide.

Lafarge Canada has added new members to its Ready-Mix division through the acquisition of Béton Mobile du Québec (BMQ), a maker of specialty concrete mixes. Stéphane Pelletier, BMQ’s former owner, will continue to oversee the business.

Stanley Black & Decker reported Q1 sales of $4.2 billion, up 34 percent from the prior year, led by the tools and storage segment. CEO Jim Loree said sales were “off the charts” with 41 percent growth in the North American market. Net income of $478 million was up from $133.2 million in the comparable period of 2020. Loree pointed to the ongoing pandemic-inspired reno boom and the “reconnection” customers are having to their homes, as well as heightened attention to health and safety.

Canfor Corp. posted Q1 profits of $427.8 million, up from a loss of $70 million reported a year ago. Sales rose to $1.94 billion from $1.17 billion. The company said increases in lumber prices significantly outstripped higher log costs.

ECONOMIC INDICATORS

The value of building permits in March rose 5.7 percent to $10.9 billion, reflecting a booming residential sector and marking a third record-setting month. The residential sector climbed 15.9 percent, clearing the $8 billion mark for the first time in March. Single-family homes also reached new heights, increasing 7.6 percent to $3.8 billion. (StatCan)

NOTED

The U.S. National Association of Home Builders is appealing to the Biden administration for an end to the tariffs that have been imposed on Canadian lumber in defiance of World Trade Organization rules. The most recent round of tariffs was introduced in 2017, but rates were cut by more than half late last year. They currently amount to about nine percent of the value of the majority of softwood lumber exported from Canada to the U.S.

Dealers are complaining about product shortages and it remains their biggest business challenge, according to a new survey by Hardlines.

In the 2021 Business Conditions Survey, we asked dealers what their biggest concerns are. The survey went out to dealers and store managers across Canada earlier this spring.

Availability of product was the No. 1 response, with almost 89 percent of respondents citing this challenge as their leading business concern. A related issue, sourcing and product shortages, was indicated by 71 percent of respondents.

The shortage of supply, especially of lumber and building materials, has driven up prices to new levels as both consumers and contractors scramble to get renovations done during the lockdowns. The price of lumber has almost tripled over the last year, with SPF (spruce-pine-fir) two-by-fours reaching $1,040 per thousand board feet—up from $445 a year ago.

Staffing was the second-most cited concern, chosen by 46.6 percent of respondents.

Comments by dealers, submitted anonymously to ensure confidentiality of the results, including concerns about product shortages and the need for young people to look to this industry for career opportunities. “Keeping product on our shelves is my biggest concern. Our sales would have been up far higher if we had stock,” said one respondent.

“Product availability is extremely concerning. It seems to be a problem with most suppliers,” noted one response. “We have lots of customers looking to quote future jobs and we can’t say with certainty that products will be available. Plywood has been especially hard to obtain and is a necessity in the building industry.”

On the issue of hiring, a store’s location can have as much impact as local conditions. One dealer indicated they are challenged by both, “We have very large staffing concerns as we are based in a town that has been extremely busy during the pandemic … so there are a lot of businesses right now hiring, and the market is tough to find anyone to work.”

Another dealer addressed both concerns. “Lack of motivated people who want to work is a huge issue for our location. As well, shortages of product have been an issue, making us source more product from outside suppliers, rather than our buying group.”

BMR Group has partnered with Société Laurentide to launch a house brand of paints under the Splendi and Splendi Supreme brand.

The new line of acrylic paints was designed at Laurentide’s labs and designed to offer affordable, quality paints suitable for both DIY and contractor customers. The new initiative has created about 30 jobs for the company and further investments to modernize its plant in Shawinigan, Que. Laurentide is a Quebec-based family business whose roots go back 70 years.

“The program has been in development for at least six months to a year,” said Jonathan Gendreau, VP of strategy and network development for BMR. “We were basically looking to change suppliers. As part of [parent company] Sollio, we always have to make sure we give an opportunity to a local supplier.” BMR’s former private-label paint was supplied by Sico, which pulled out of the province early in 2019.

Paint represents the group’s best-selling category after building materials. In addition, its paint sales are up more than 15 percent so far this year. Across Quebec, industry sales are close to 13 million gallons (or 52 million litres), following a growth of more than 10 percent in 2020.

The partnership fits BMR’s vision on a couple of fronts: Laurentide is a local manufacturer and it shares BMR’s commitment to promoting sustainable development. Laurentide was instrumental in setting up a recycling program that has diverted more than 100 million kilograms of post-consumer paint from Quebec landfills since 1994.

BMR stores provide collection points for the program and have recovered more than 200,000 kilograms of paint over the past 25 years by allowing consumers to bring back their empty or partially empty containers.

Quebec home improvement chain Canac experienced a malware attack earlier this month. However, the company has reported that its IT systems are now essentially up and running again.

“We don’t hide from it: we have been victims of malware,” marketing director Patrick Delisle told Le Journal de Montréal. “It’s no secret that we have suffered a computer attack.”

The trouble started on April 9, when software problems forced Canac to reboot its systems, leaving customers across its store network unable to pay by credit or debit card. Then, following the incident, the company was unable to access its customer service database. Confusion followed as some orders were left uncompleted while other clients were unable to obtain pick-up information.

The retail home improvement industry is a growing target. Barely a month ago, Home Hardware fell victim to a ransomware attack of its own. The criminal group responsible provided screenshots of confidential documents to Home Hardware, proving it had breached the retail company’s firewalls.

Home Hardware quickly hired a cybersecurity firm to counter the breach and isolate the attack. The company was later able to share that the attack did not impact individual dealers’ retail systems or any consumer transaction or payment data. Likewise, Delisle at Canac indicated that no sensitive data had been compromised.

The growing prevalence of such attacks bears out that no company is immune. In fact, retailers are especially targeted because of their large customer databases that include confidential billing information. Target, Macy’s, Home Depot, and Amazon are just some of the retail groups that have suffered data breaches in recent years, and the attacks are growing.

A survey by cybersecurity firm Check Point says most companies it talked with have experienced a rise in security threats and attacks. Phishing emails, compounded by lack of training among workers who regularly must contend with such emails, as well as weak passwords, are some of the top causes of ransomware attacks.

Phishing, which takes the form of emails that pretend to provide important links or attachments, is a leading source of exposure and remote work has only exacerbated the problem. As people rely more than ever on virtual meetings, the rise of fake websites has also grown. According to Check Point, 1,700 new domains featuring the word “Zoom” have emerged since the onset of the pandemic, and 25 percent of them appeared this month alone.

How important is leadership? Hiring for spring? HR Advisor newsletter offers tips

Helping your team through the trying times of COVID requires a team approach, one that should involve giving your managers the tools to cope with their teams. This is just one of the people issues that are addressed in the latest edition of our sister publication, Hardlines HR Advisor.

During the pandemic, IKEA has focused on supporting both the physical and mental well-being of its employees. According to Tanja Fratangeli, head of people and culture, this included more leadership training for managers, such as mental health first aid training through a partnership with the Canadian Mental Health Association. The training was aimed at offering tools to help IKEA leaders know how to provide support and have meaningful conversations with workers who needed that.

While managing the well-being of a team is important, many businesses right now have more fundamental challenges, such as hiring more people to build those teams.

For Don Dyck, president of Kingdon Lumber, a TIMBER MART dealer in Peterborough, Ont., finding reliable seasonal staff has been challenging during COVID-19. “The struggle then is to find the right people. In the midst of all of this, how do you go about doing that?” Kingdon Lumber used to rely more on high school and university students, but Dyck’s strategy has shifted in recent years and he talks about that in the latest issue.

When asked what makes a good leader, Zaida Fazlic doesn’t hesitate to point out some clear fundamentals. “Who you are as a leader is who you are as a person. That’s one of the key things.”

Leadership, she says, is not simply about management. “Leadership is about having a vision of the future and articulating it in a certain way to get people to buy into it.” Fazlic’s insights on leadership are featured in this month’s edition of Hardlines HR Advisor.

HR Advisor is designed to keep you informed about human resources in the home improvement industry. Each issue features insightful case studies from within the retail home improvement industry. To ensure you get guidance to help manage and support your teams, every month we include advice from HR professionals who work in retail, wholesale, and manufacturing to share their expertise.

(Hardlines HR Advisor is free of charge to dealers, suppliers, and vendors in the retail home improvement industry. To sign up or share with your HR personnel, click here!)

DID YOU KNOW…?

… that a new Hardlines Podcast Series launches this Wednesday? Called The History of Home Improvement, our inaugural episode features a look at Home Hardware co-founder Walter Hachborn. In conversation with Steve Payne, the former editor of Hardware Merchandising magazine, we examine why Hachborn was named “Retailer of the Century” by Hardware Merchandising at the end of the last millennium. Don’t miss these insights into one of Canada’s formative home improvement figures. Click here now to sign up for the Hardlines Podcast Series!

Lowe’s Cos. has acquired Stainmaster, after a decade as the exclusive national home improvement carrier of the carpet brand. The purchase includes all brand-related intellectual property from its parent company, Invista, and all related trademarks and sub-brands.

Metro Inc. is developing a code of practice to govern its relations with suppliers, La Presse reports. The move comes after Sobeys opted earlier this year to draft a code of conduct, including a dispute resolution mechanism. That announcement followed Walmart’s decision to impose “development fees” on suppliers, prompting protests from suppliers.

Tractor Supply Co., the U.S. farm and ranch retailer, saw Q1 sales rise 42.5 percent to $2.79 billion, compared to $1.96 billion in the previous first quarter. Comparable store sales increased 38.6 percent, a gain that dwarfed the 4.3 percent reported a year ago. Net income soared by 116.5 percent to $181.4 million from $83.8 million in 2020.

Sherwin-Williams Co.’s Q1 sales rose 12.3 percent to $4.66 billion, with same-store sales up 8.2 percent. Sales volumes were up in all three of the company’s segments. Earnings increased by 51.5 percent to $2.06 per share. That included a loss of $0.34 per share from the sale of Wattyl, which manufactures and sells architectural and protective paint in Australia and New Zealand.

SUPPLIER NEWS

3M Co.’s first-quarter net sales increased by 9.6 percent to $8.85 billion. Earnings of $1.62 billion were up from $1.31 billion a year ago. 3M is a major manufacturer of N95 masks, which have seen strong demand throughout the pandemic.

Liteline is establishing a Western Canada regional office and distribution centre. Currently under construction in Langley, B.C., it will serve the area from British Columbia to Saskatchewan, as well as the U.S. Pacific Northwest and California markets. It’s expected to be up and running by September.

Masco’s Q1 sales increased by 25 percent to $1.97 billion; in local currency, sales rose 22 percent. In the plumbing division, sales rose by 31 percent, while sales of decorative architectural products were up by 15 percent. Operating profit rose 62 percent to $365 million.

Armstrong World Industries reported Q1 operating income of $54.1 million, down 28.8 percent from $76 million in Q1 of 2020. The decline was in line with the company’s expectations, largely due to lower sales volume in its mineral fibre business. Net sales increased 1.3 percent over the same period in 2020.

ECONOMIC INDICATORS

Retail sales in February rose 4.8 percent to $55.1 billion. Sales increased in nine of 11 subsectors, led by higher sales at motor-vehicle and parts dealers and gasoline stations. LBM dealers and garden centres saw sales of $3.3 billion, up 3.5 percent from January and 29 percent over last February. Sales were up in six provinces in February, with Quebec and Ontario leading the gain. (StatCan)

Sales of existing U.S. homes in March fell by 3.7 percent to a seasonally adjusted annual rate of 6.01 million units. That was the lowest level since August 2020. Year-over-year, sales rose by 12.3 percent and remained above their pre-COVID pace. (National Association of Realtors)

NOTED

According to a report by Ravelin, a fraud prevention firm, 72 percent of retail brands around the world expect to grow their fraud teams in the year ahead, while 76 percent predict their budget to tackle fraud will increase over the next 12 months.
     

The federal government’s budget, the first to be announced in two years, will continue existing pandemic supports and add new ones. Many of those will directly impact dealers, including a new initiative to assist with hiring.

The Canada Emergency Wage Subsidy (CEWS), currently due to expire in June, will be extended to phase out gradually by the end of September. Between July and September, the maximum weekly subsidy would fall from $847 per employee to $226.

A new Canada Recovery Hiring Program (CRHP), running from early June to late November, will subsidize employers’ costs through wages, additional hours, and new hires.

The CEWS and CRHP are designed to complement one another, with qualifying employers receiving whichever subsidy is higher. The CRHP’s rates would start at 50 percent for the first three periods of eligibility and begin to taper off after that. In the sixth and final period, the government would subsidize costs at a rate of 20 percent.

The feds are also offering relief to small and medium-sized businesses that have been facing higher credit card fees amid increased usage. In a statement, the Retail Council of Canada said it was “pleased” with the announcement.

“A reduction in credit card fees is especially important to retailers in consequence of the COVID pandemic, having faced a dramatic increase in costs given the rise in online shopping and the declining use of cash,” it added.

The federal budget includes environmental commitments that will impact home renovation. It earmarks $779 million to the Canada Mortgage and Housing Corp. for interest-free loans to homeowners of up to $40,000 for energy-friendly retrofitting. Eligible projects will include window replacement, solar panels, upgrading insulation, and replacing oil tanks.

The government is also undertaking to reform corporate tax rules to tighten up loopholes, but sweeping changes are notably absent from the budget.

“You don’t see any major tax cuts or any major tax increases there in terms of the broadened base for general corporate tax, or even for small business tax,” CIBC’s Jamie Golombek told the Globe & Mail. “I think there’s some hesitation on the part of governments to do anything major and dramatic … until we see how long it takes for the recovery to fully kick in.”

The minority Liberal government will have to pass its budget to maintain the House of Commons’ confidence and avert an election. Conservative leader and leader of the opposition Erin O’Toole and Bloc leader Yves-François Blanchet signalled their parties’ intentions to vote against it, while the NDP’s Jagmeet Singh said he wouldn’t trigger a pandemic election.

Pascal Houle has been tapped to assume the top job at BMR Group’s parent company, Sollio Cooperative Group. He takes the reins from Gaétan Desroches, who retires as CEO this fall. Desroches’ last day on the job will be Sept. 10, with Houle succeeding the next day.

The move comes barely two months after another big move by Houle. At Sollio’s AGM in March, he left behind the CEO role at Sollio’s retail division, BMR, to become COO at Sollio. Houle had combined the top job at BMR with an EVP position at the parent company since 2015.

Alexandre Lefebvre, president of Lefebvre & Benoît, was appointed to replace Houle as CEO of BMR. Along with the CEO role, he serves as EVP at Sollio. BMR reached a deal back in the summer of 2019 to acquire a major stake in Lefebvre & Benoit, a family-owned dealer and a fellow member of the Independent Lumber Dealers Co-operative buying group.

In his new position, Houle, who joined La Coop fédérée in 1998 and served as a management consultant from 2000 to 2004, retains oversight of BMR while taking on additional responsibilities for Sollio Agriculture and the co-op’s food business, Olymel.

“His boldness, flexibility, and diligence have set him apart since he first joined our network and continued to do so as BMR Group CEO and currently as Sollio COO,” said Sollio president Ghislain Gervais in a release.

E-commerce is a given. Is your business doing enough to make it work?

With in-person interactions severely limited under the pandemic, the rise in online shopping has been unprecedented. Many businesses, including dealers and suppliers, have scrambled to figure out how best to support and connect with customers during the pandemic.

“With a pandemic, digital is often the only way to reach and connect with people right now,” explains Jenn Dunstan, director, digital marketing, at Central Station. Dunstan’s position involves developing digital strategies to increase lead generation, brand loyalty, and brand reputation for clients. Her Toronto-based marketing and communications agency stresses branding, innovation, and technology in telling its B2B and B2C clients’ stories.

She also stresses the importance of fundamentals. Every business needs to “invest the time to get a website with an e-commerce component.” Then that website needs to be leveraged. Business owners need to be aware of the different virtual platforms where their customers hang so they can communicate with those customers. Businesses should expect questions and comments to be addressed to active social media channels, including Facebook, Instagram, Messenger, and live chat.

Dunstan recommends that smaller businesses check out affordable chat options. “There are many cost-effective options available. Adding a live chat widget to your website allows you to support site visitors as they’re considering your inventory,” she says. “Diligently handling your community engagement in the form of comments, direct messages, and emails also ensures that you retain and capture all prospective business revenue.”

In addition, Google My Business and Facebook enable businesses to connect their product catalogue or manually upload products and services lists to a business page. “A verified Google My Business page is critical for attracting business,” says Dunstan.

(This story is part of a larger feature that appears in the latest edition of our sister publication, Hardlines Home Improvement Quarterly. HHIQ was recently mailed to over 11,000 dealers and managers across the country. Retailers can subscribe for free by clicking here. And anyone can view the digital edition of HHIQ here!)

John Magri has joined Sexton Group as director of programs. In his new position, he will manage sourcing, developing and implementing strategic purchasing plans. He will also negotiate product, vendor relationships, and direct relationships with Sexton Group members. Magri brings over 30 years of experience in purchasing and procurement, including 16 years as general manager of WM. Dyck & Sons, a dealer in Niverville, Man.

DID YOU KNOW…?

… that Hardlines HR Advisor, the newest monthly publication from Hardlines, is all about helping you manage the people side of your business? The next issue comes out on Wednesday. Don’t miss it! Click here to sign up now!

Tyler Nowochin, dealer-owner of Nowco Home Hardware in Lacombe, Alta., has been named a 2021 Young Retailer of the Year by the North American Hardware and Paint Association (NHPA). Now in its 25th year, the program recognizes individual achievement by retailers aged 35 and younger throughout Canada and the United States. The NHPA will hold a one-hour virtual event for the honourees on May 5 at 2 p.m.

Castle Building Centres has added new members. Deschenes & Cie. Inc. is in Price, Que., a gateway community to the Gaspésie. Founded some 75 years ago, the business was recently acquired by Victor and Gabriel Boucher, along with their father Bruno. RGS Rascom Greenbuild Services in Concord, Ont., is now part of the group’s commercial division. Owner and managing director Rick Stacey founded the company 12 years ago to provide contractors with building envelope products.

RONA is renewing its partnership with Groupe CH, the Quebec sports and entertainment organization. Under the three-year partnership, parent company Lowe’s Canada will leverage the arrangement with sponsorships of the Montreal Canadiens and the Laval Rocket, using cross-promotion in its stores and online.

IKEA Canada will add 15 Lion6 heavy-duty zero-emission trucks from Quebec-based Lion Electric to its fleet. IKEA and its partner, last-mile delivery provider Second Closet, will co-brand the five-tonne electric trucks. They are expected to be on the road this coming fall, fulfilling orders for IKEA locations in the Toronto, Montreal, and Vancouver markets.

Amazon will pilot a premium service that offers furniture and appliance assembly on delivery, reported Bloomberg News. The service will reportedly be rolled out in three U.S. markets. If it expands from there, the new offering would help make Amazon more competitive with retailers offering similar services, such as Wayfair and Best Buy.

SUPPLIER NEWS

Lowe’s Canada is expanding its outdoor power equipment portfolio through a partnership with EGO. EGO’s line of battery-powered OPE is almost exclusively offered nationwide through Lowe’s Canada’s banners. It includes pro lawn mowers, string trimmers, leaf blowers, and hedge trimmers, now available in-store and online.

ECONOMIC INDICATORS

The seasonally adjusted annual rate of housing starts was 335,200 units in March and up 21.6 percent from 275,567 units in February. The SAAR of urban starts increased by 24.4 percent to 300,973 units. Multiple urban starts increased by 33.8 percent to 222,358 units while single-detached urban starts increased by 3.6 percent to 78,615 units. Rural starts were estimated at a rate of 34,227 units. (CMHC)

U.S. housing starts in March came in at a seasonally adjusted annual rate of 1,739,000. That was 19.4 percent above February and 37 percent above March 2020. The SAAR of building permits for the month was 1,766,000, up 2.7 percent from February’s revised rate of 1,720,000 and 30.2 percent from last March’s 1,356,000. (U.S. Census Bureau)

NOTED

Under a new program aimed at its pro customers, Lowe’s stores in the U.S. will now stock more offerings at its pro counters to help these customers get through their day. Amenities include windshield cleaning stations and free air stations for filling up tires, while portable air tanks will be available for pneumatic tools.

OVERHEARD…

"The combination of higher commodity pricing, volumes, and overall business activity levels has provided record financial results for CanWel and we see that momentum continuing for the foreseeable future.”
—Amar Doman, chairman and CEO of CanWel Building Materials Group Ltd., in a release announcing the sale of shares worth $75 million, which is expected to finance future acquisitions.

Well known for its ranges of fasteners, decorative hardware, and cabinet hardware, Richelieu Hardware is positioning itself in new categories with its latest acquisition.

Richelieu purchased the shares of Task Tools in a deal announced last week at the same time as the release of its Q3 results. Task is a Delta, B.C.-based hand tool and power tool accessory company, which also has a facility in Brantford, Ont. It represents brands such as Task Signature and Tuf-E-Nuf.

The family-owned business has been in the hands of Craig Caplan, son of company founder Michael Caplan, who established Task Tools in 1968. Craig Caplan will stay on to continue managing operations under Richelieu, while the Caplan family will hold on to the properties in Delta and Brantford.

Richelieu has been on an acquisition trajectory for many years, buying up companies both here and in the U.S. Last year, the company bought The Mibro Group, another supplier of hand tools and power tool accessories. With these companies in its stable, Richelieu has firmly established its presence in those categories.

Further expansion efforts will be fueled by Richelieu’s financial performance. The company turned in strong first-quarter sales of $297.6 million, a 19.3 percent increase driven mainly by internal growth. Canadian sales were up 36.6 percent.

And the growth plan continues. Richelieu has also signed agreements in principle to acquire two Canadian distributors. These acquisitions combined would bring additional annual sales of approximately $36 million, the company says. 

At UFA, developing an integrated online strategy for its bricks-and-mortar stores has been an important part of the company’s agenda during the past year. Glenn Bingley, vice president, agribusiness and supply chain at UFA, says e-commerce has become a big driver for the company.

“We went live with buy-online,pick up in-store at all our stores last year. We are committed to giving customers personalized options for how they do business, whether it’s in-store or online, and we will continue to invest heavily in our e-comm platform and technology,” he says.

“In fact, since the very beginning, UFA has continuously adapted to changing times and technology by expanding our product and service offerings, so that we can provide our members and customers with what they need and where they need it.” 

The business has been focused on a whole range of areas, Bingley adds. “These include improving our supply chain and our logistics, as well as our distribution and procurement. We’ve actually streamlined our supply chain and we’re going to be making investments to strengthen our supply chain even further.”

On the procurement side, UFA is refining its assortments. “We’ve added more products related to livestock health and feed. For example, we’re proud to have introduced Prostock, UFA’s brand of minerals, forage seed, and milk replacers,” Bingley notes. “ProStock provides a range of products to ensure the health and well-being of animals. We are always looking at new offerings for our members and customers.”

He adds that the company has performed a series of category reviews over the last couple of years to improve assortments for core customers—the farmer, rancher, and the acreage owner.

“Another area that has grown rapidly for us has been lawn and garden and outdoor living to support the rural lifestyle,” he continues.

This past year has demonstrated the importance of UFA being open and ready to serve customers. “Agriculture is essential, and we needed to be there to help the business of agriculture move forward,” says Bingley. “We’ve been around for over a century, we were there this past year, and we will be there in the future.”

Lowe’s Cos. has unveiled a new series of initiatives to attract more pro and contractor customers. At the heart of the new offerings in its U.S. stores is the Pro Zone, a dedicated area near the pro entrance with convenience personal care products at checkout. Pro customers will also get a dedicated checkout.

That market is an important one for the giant retailer—and one that is sees growing at a faster rate than its DIY business. Lowe’s estimates that its pro product market is worth more than $400 billion and is expected to grow faster than the overall U.S. home improvement market in the coming years.

But many of the initiatives rolling out reflect services and programs already in place in Canada, where the pro business is likewise considered a priority growth segment.

The new offerings at the U.S. stores include:

• The Pro Zone, a dedicated area near the pro entrance;
• larger parking spots for pickup trucks and their trailers;
• phone charging stations at the pro desk;
• a convenience rack with products not sold in-store before, such as pain relievers, sunscreen, and hand care;
• flexible credit options and extended terms for commercial account users.

In Canada, Lowe’s has been developing added features of its own to strengthen its relationship with its pro customers. In September 2020, it introduced VIPpro, an app-based program to give pro customers an improved and integrated purchasing experience.

The larger parking spaces and dedicated pro team to aid checkout for contractors also already exist in Canada. Lowe’s Canada says it aligns with the U.S. whenever possible, adapting strategies to accommodate the three Lowe’s Canada banners—Lowe’s, RONA, and Réno-Dépôt.

The VIPpro program likewise represented a Canadian solution for the Canadian business across the banners. As for flexible credit options rolling out in the U.S., once again, Lowe’s already has these in Canada, with account receivables management, a commercial credit card, and charge accounts available at RONA and Réno-Dépôt stores.

CHHMA rebrands as it seeks to expand mandate beyond vendors

Members of the Canadian Hardware & Housewares Manufacturers Association voted at their recent AGM to approve a new name and a new mandate for the organization.

Over the coming months, it will gradually rebrand itself as the Canadian Home Products Trade Association (CHPTA), or L’Association Canadienne du Commerce des Produits de Maison (ACCPM) in French.

The association, which represents manufacturers and agents in hardware and housewares, has been around for 52 years. Now, it’s looking to reach a wider audience. The move is intended to help the organization’s membership grow by appealing to a larger audience beyond the vendor community. That will include retailers, dealers, builders, tradespeople, suppliers, and end consumers, as well as other industries and product markets.

The association’s mission will be to provide value to members by increasing their growth and profitability, expanding their sales reach, accessing industry intelligence, and supporting professional development. 

Bryan Evans is the first Canadian sales representative hired by OMC Tools & Hardware. He was previously with Positec and prior to that, Greenworks Tools. He reports to Omar Chaaban, OMC’s co-owner, who, with his brother Matt, grew their business in Lebanon to be the dominant tool retailer and supplier there. Now they have exclusive rights to do the same in Canada, operating from a facility in Mississauga, Ont.

DID YOU KNOW…?

… that the Hardlines Podcast Series, What’s in Store, has gone live? Our inaugural episode features an exclusive interview with Tony Hurst, the president of Lowe’s Canada. Be sure not to miss this important update from one of the country’s leading home improvement retailers. Click here now to sign up for the Hardlines Podcast Series!

Kemptville Building Centre in Kemptville, Ont., has joined BMR Group. At 63,000 square feet, the second-generation family business is notable for its large size. It has several specialized departments, including kitchen, bathroom, and window and door renovations. Owned by Eric Norenberg, the store employs between 55 and 75 employees depending on the season.

Matériaux Appalaches in Lévis is the third Quebec dealer to join TIMBER MART this year. Owners Éric Mercier Lessard and Éric Fournier bought the business in December of last year. It includes a lumber yard and an 8,000-square-foot building and offers lumber, sheet metal, interior and exterior doors, Trusscore, siding, and insulation.

Lowe’s Canada presented $10,000 to Sleep in Heavenly Peace (SHP) in Windsor, Ont. The organization’s mandate is to ensure every child in the community has a suitable bed. Founded in September 2020 by Brian Cyncora and his wife Terry, the Windsor-Essex SHP chapter will use these funds to help buy the tools needed to start building beds and procure materials to build their first 100 beds for local kids.

Canac was forced to reset its computer systems in the face of software problems, Le Journal de Montréalreports. Customers were obliged to pay cash while the reboot was in progress since electronic card payments could not be accepted. Patrick Delisle, the chain’s marketing director, said there was no indication of a cyber-attack.

Castle has continued its expansion with the addition of BDC Lighting and All Trade Supply in Brampton, Ont. Owned by Victor Narula, the business plans to offer a wide range of building material products. Another member, in Quebec, has also joined. Deschenes & Cie. Inc. in Price, a gateway community to the Gaspésie, was recently acquired by Victor and Gabriel Boucher, along with their father Bruno.

SUPPLIER NEWS

Orgill continues to invest in its distribution and logistics network. Its new Rome, N.Y., distribution centre already is receiving product and just months away from being fully operational. Now, the wholesaler plans to nearly double the size of its Hurricane, Utah, facility. The decision to expand was driven by the growth of Orgill’s customer base in the western U.S.

GreenFirst Forest Products has reached an agreement with Rayonier Advanced Materials to acquire six lumber mills in northern Ontario and Quebec. The deal, valued at US$214 million in cash and shares, also includes a newsprint mill in Kapuskasing, Ont. Rayonier acquired the mill assets of Tembec in 2017. GreenFirst was known as Itasca Capital until the beginning of this year.

AGT Products Inc. USA, a distributor of prefinished subfloor products, has completed the full purchase of Rhino Carbon Fiber Products USA, an Ohio-based carbon fibre and concrete repair products supplier. According to AGT, the acquisition serves its growth strategy through geographic expansion in the United States and Canada. The U.S. supply office will be located in Zeeland, Mich., with the headquarters remaining at AGT’s Mississauga, Ont., location.

ECONOMIC INDICATORS

Sales of existing Canadian homes climbed 5.2 percent in March to set another record. Sales gains were largest in Greater Vancouver, Calgary, Edmonton, Hamilton-Burlington, and Ottawa. Actual (not seasonally adjusted) sales activity for the month was up 76.2 percent. (Canadian Real Estate Association)

U.S. retail and food services sales for March were $619.1 billion, an increase of 9.8 percent from the previous month. (U.S. Census Bureau)

NOTED

Hardlines HR Advisor, the newest monthly publication from Hardlines, is all about helping you manage the people side of your business. This new monthly newsletter features valuable industry knowledge and tips to help business owners and managers deal with the well-being of their people. Click here to sign up now.

OVERHEARD…

“At UFA, we look to our members and customers to guide our decision-making and it’s reflected in the products we carry and the services we offer. It’s one of the special things that make a co-operative different from any other business.”
—Glenn Bingley, vice president, agribusiness and supply chain at UFA, on that co-op’s relationship with is member-owners throughout Alberta.

UFA is a co-operative retailer meeting the needs of more than 120,000 member-owners, as well as non-members, and is one of the significant hardlines players in the West. With the surge in growth in the farm and ranch sector, the business has been solid. At its latest AGM, held last month, delegates approved a patronage dividend of $14.2 million.

Glenn Bingley is vice president, agribusiness and supply chain at UFA. The agribusiness division has 34 retail farm and ranch supply stores, which sell a large variety of agricultural-related products to agriculture—farms and ranches—and acreage customers. That includes everything from feed to fencing and livestock supplies.

The retail side also includes a commercial business. More than 50 customer account managers provide expertise on commercial crop and livestock production. Crop inputs (seed, chemicals, and fertilizer), grain storage and equipment, and farm structures are all sold through the retail stores.

That retail presence has been focused more in recent years on the rural customer. In 2017 it closed down its sporting goods business, Wholesale Sports Canada Ltd., which had 12 retail locations in Western Canada. More recently, UFA invested in a new enterprise resource planning (ERP) platform. The system was adopted to tie in all the company’s various systems―including purchasing, inventory, and order processing―replacing an existing POS system.

While the co-operative has not added to its retail footprint for a few years—in fact, two years ago it offloaded a separate building centre it had owned in Fort McMurray—it has been investing in refreshes of existing stores to keep up with the trends in customer preferences. As a result, organic growth continues to drive same-store sales and sales per square foot.

Bingley is excited about what the future holds. Trends by customers to shop local, combined with an exodus of people from the big cities, make for good business at UFA. 

“There’s been a whole revitalization of the rural markets. Whether that means people moving to a farm or people getting a second home in a rural location, we’ve seen real growth,” he says. 

Home Hardware acknowledged last week it was the victim of a ransomware attack by the website DarkSide. The group provided screenshots of confidential documents including a November letter about the acquisition of Patrick Morin, announced in February.

“On Feburary 18, Home Hardware became aware that our cybersecurity had been compromised. An unauthorized third party was able to access parts of our corporate data,” Jessica Kuepfer, Home Hardware’s communications director, explained by email.

“We immediately engaged our cybersecurity firm and quickly implemented countermeasures to isolate and contain the attack.”

The attack brings to light a problem that is occurring with businesses of all sizes. In 2014, Home Depot became a victim of online hackers. The security breach was discovered after an investigation of the retailer’s payment data systems. Target and other retailers suffered attacks of their own around that time.

Even Home Depot Canada has had its challenges. Toward the end of 2020, an internal human error resulted in a system error that ended up sending personal information, including some credit card details, out to customers via email. While not the work of online predators, the mistake bears out just how vulnerable any company can be to weaknesses in online security.

At Home Hardware, the company’s investigation indicated that the attack did not impact individual retail systems or any consumer transaction or payment data, due to the independent ownership of the stores. “We have maintained full business continuity,” said Kuepfer.

Lowe’s Canada launched contactless pick-up lockers last week at select Lowe’s stores. A total of 48 Lowe’s locations will offer the option by the end of April. Installed near the entrance of the stores, the lockers are equipped with Bluetooth technology and a touchscreen.

The technology brings the advantages of self-direction in a contactless environment while maintaining the security of the orders within each locker. Customers access instructions on how to retrieve their online orders by scanning a barcode within a confirmation email. Once the code has been successfully entered, the locker door pops open to provide access to the product.

As online orders and work-at-home conditions continue, the rate of packages being shipped to homes and offices has increased substantially under COVID. In this industry, Canadian Tire saw online sales climb by 250 percent last year, while Lowe’s itself had an increase of 111 percent.

“As customers everywhere turned massively to online shopping over the past year, it became increasingly important for us to provide them with a quick and easy way to pick up their orders at their local store, without having to wait in line at the customer service desk,” Tony Cioffi, Lowe’s Canada’s senior VP of stores, said in a statement.

According to Lowe’s Canada, following the initial rollout of the lockers in its Lowe’s stores, the company will introduce the system at select RONA and Réno-Dépôt corporate stores later this spring.

Majority of homeowners plan renovations this year, says survey

As the pandemic reached the one-year mark, a survey by online contractor connection service HomeStars found that 74 percent of homeowners are planning home improvement projects this year.

The national survey, conducted among HomeStars’ homeowner base, found that the most popular projects this year will be outdoor work including landscaping and decks, with 54 percent of homeowners planning to improve their outdoor space.

In second place came bathroom renovations at 32 percent, followed by kitchens at 23 percent. Another 17 percent indicated they will do basement renovations while repairing or replacing a major appliance was cited by 12 percent of respondents.

“Despite the pandemic, last year was incredibly busy for renovations as we’ve seen first-hand with our pros and homeowner service requests and there’s no sign of it slowing down anytime soon,” said Shir Magen, CEO of HomeStars. “With all this extra time at home, Canadians are investing in their spaces by making repairs, adding functionality, or simply to ‘spark joy’ in the new normal we’re living in.”

In regard to anticipated spending, small repairs (those under $1,000) and large jobs over $50,000 were the least popular. The top budget ranges were:

• $1,000 – $10,000 for 46 percent of respondents;
• $10,000 – $25,000 for 24 percent of respondents;
• $25,000 – $50,000 among 11 percent of respondents.

As for why they were undertaking the renovations, 29 percent indicated that they wanted to enjoy their outdoor space now that they are spending more time at home. Another 14 percent of homeowners said that, since they weren’t spending on vacations, they would invest in home renos and repairs. Half of the respondents said they were renovating their homes to ensure they could age more comfortably.

Amber McGuckin has joined the Western Retail Lumber Association as marketing and communications manager. A graduate in communications from the University of Winnipeg and creative communications from Red River College, McGuckin worked in Kenora, Ont., as a newspaper reporter before taking a job on the promotions team of CTV Winnipeg. In 2016 she was hired as a reporter and producer for Global News, working on content for television, radio, and web.

Randy Aikens has joined Mayfair Lumber Sales Inc. in Calgary as president. A veteran of the industry, whose background includes working at RONA and later at Metrie, Aikens was most recently president of Soo Mill Buildall in Sault Ste. Marie, Ont.

DID YOU KNOW…?

… that the very first episode of our brand new Hardlines Podcast Series, What’s in Store, went live last week? Our inaugural episode features an exclusive interview with Tony Hurst, the president of Lowe’s Canada. Be sure not to miss this important update from one of the country’s leading home improvement retailers. Click here now to sign up for the  Hardlines Podcast Series!

Distribution Méga Aluminium, a specialty building materials dealer in Gatineau, Que., is the newest member of TIMBER MART. Since 2014, it has offered a specialized assortment of exterior building-envelope materials, from siding and roofing to columns and louvres. The store’s property encompasses a showroom, a 22,000-square-foot warehouse, and a 32,000-square-foot yard.

TORBSA has announced the addition of RB Building Supply in Brampton, Ont., as a shareholder member of the buying group. Since opening in 2018, RB Building Supply has built a successful distribution business throughout the Brampton and Greater Toronto Area.

Home Hardware Stores held its 2021 Virtual Spring Market from March 22 to 29. The event brought together dealers from across Canada with hundreds of suppliers. Dealer-owners gained insight into strategic buying opportunities, including products and category trends through video presentations and updates from the company’s hardlines and LBM merchandise teams. This was Home Hardware’s third Virtual Market.

Lowe’s Canada will host a hiring event on April 17 to fill about 100 seasonal and permanent positions at its Boucherville, Que., distribution centre. Positions range from order pickers, shipping clerks, and maintenance workers to supply and management roles.

The Home Depot’s top five executives received a combined total of $35 million in compensation last year, up 43 percent from $24.5 million in 2019. The increase follows a surge of nearly 20 percent in revenues during 2020. None of the five individuals received bonuses last year; the company said the increases were largely in non-equity incentive plan compensation.

SUPPLIER NEWS

Richelieu Hardware has purchased Task Tools. The Delta, B.C.-based hand and power tool accessory company, which also has a facility in Brantford, Ont., represents brands such as Task Signature and Tuf-E-Nuf. The family-owned business has been in the hands of Craig Caplan, son of company founder Michael Caplan, who established the business in 1968. The Caplan family will hold onto the real estate in Delta and Brantford. Craig Caplan will stay on to continue managing the business under Richelieu.

Pandemic-related supply crunches are forcing contractors to pay premiums for lumber, driving up construction costs, CBC News reports. Prices for basic lumber products like two-by-fours have doubled since 2018, adding “tens of thousands of dollars depending on the size of your home,” according to Kevin Lee, CEO of the Canadian Home Builders Association.

The Canadian Hardware & Housewares Manufacturers Association is partnering with the Canadian Office Products Association to host a physically distanced Annual Golf Tournament on May 26. Tee-off at the Richmond Hill Golf & Country Club will start at 8 a.m. in 10-minute intervals on a first-come, first-served basis. Click here to register.

NOTED

Hardlines HR Advisor, the newest monthly publication from Hardlines, is all about helping you manage the well-being of your team. This monthly newsletter features industry knowledge and tips to help business owners and managers deal with hiring, training, succession, and other issues. Click here to sign up now.

OVERHEARD…

“Although we have grown and changed over the years, at our heart we remain committed to rural life. That commitment inspires everything we do.”
—Glenn Bingley, vice president, agribusiness and supply chain at UFA, on the co-op’s investment in the rural lifestyle and customer it serves.

For Christian Leduc, running a big box through the lockdowns of 2020 brought new challenges on a daily basis for him and his staff. As manager of the RONA Plateau store in Gatineau, Que., and then the nearby Réno-Dépôt, he saw the personal lives of his staff become more enmeshed than ever in the realities of the workplace.

“We always said, ‘take care of your employees,’ but under the pandemic last year, we had to be even more attentive about that. We had to be a big family and make sure everyone had good health,” says Leduc.

Leduc’s story is just one of the many that will be explored in the pages of Hardlines HR Advisor, the newest publication from Hardlines, Canada’s information network for the home improvement industry. This new monthly newsletter will feature industry knowledge, tips, and more to help business owners and managers deal with the well-being of their people.

HR Advisor is designed to keep you informed about human resources issues and concerns. In the latest edition, we got advice from one retail HR leader on how to make sure your team feels connected during these difficult times.

To ensure you get guidance to help manage and support your teams, every month we will include advice from HR professionals who work in retail, wholesale, and manufacturing to share their expertise. This month, Walter Pranke, vice president, human resources at Lee Valley Tools, shares how to ensure that you hire not just for work experience and job skills, but for the right values that align with your company’s.

A Question of the Month will shed light on issues that affect any business owner, including vaccine hesitancy among staff, sick days and COVID, leadership, and succession.

(Hardlines HR Advisor went live last week. And it’s free! Don’t miss a single issue of this new monthly publication to help you manage the wellbeing of your team. Click here to sign up now!)

As the president of Lowe’s Canada, Tony Hurst heads up one of this country’s largest home improvement retailers. He shared some of his thoughts and insights in a recent interview with Hardlines on topics ranging from product assortments to aligning with vendors.

That interview will be featured in the very first episode of our new Hardlines podcast series, What’s in Store.

When asked about the company’s plans for growth, Hurst says he envisions lots of room to grow the business. That growth can occur in a couple of ways, including both increased market penetration and greater incremental growth. “There’s obviously growing your square footage, and I don’t think we’re there yet. But I think my focus is really on organic growth. How do we grow within our current footprint within Canada?”

Those efforts won’t be at the expense of physical growth, but he sees an immediate opportunity addressing what he calls “retail fundamentals” within the existing stores, regardless of the banner.

“We’ve got a lot of work to do there to make sure that the way our stores are operating, the operational and merchandising processes and systems, are all harmonized,” says Hurst. Those processes will help standardize expectations for customers to help drive footsteps into the stores.

That includes working with merchants and field teams to “make sure we’ve got the right products in the stores,” as well as looking at pricing strategies. “We’re getting more focused on everyday low prices so that our customers know what to expect when they come into our doors, from a pricing standpoint.”

(The full interview with Tony Hurst will appear on the very first episode of our brand new Hardlines Podcast Series, What’s in Store, which goes live this week. Hurst will share the company’s plans for growth in Canada, his insights into the importance of the pro customer, the value of the multi-banner model, how relations with vendors have been enhanced, and much more!)

In response to the challenges presented by the COVID-19 pandemic, Orgill debuted its first-ever Online Buying Event last year. It also represented an evolution in the way the company would host buying shows in future.

“While the restrictions placed on us as a result of the pandemic forced the innovation of our Online Buying Event, the concept has proven to be relevant whether there is a pandemic or not,” says Boyden Moore, Orgill president and CEO. “Integrating additional Online Buying Events that work together with live events is definitely our path forward.”

The first change related to this new strategy is with its Fall Dealer Market, which had originally been planned for Aug. 26 to 28 in Chicago. Now, Orgill will host an online buying event that will run from Aug. 16 to 27.

In addition to that switch, Orgill will add the following events:

• A winter 2021 Online Buying Event in late October.
• A spring 2022 Online Buying Event that will coincide with the in-person Spring Dealer Market in Orlando in February 2022.
• A summer 2022 Online Buying Event in late April of that year.

The next in-person event will be the Spring Dealer Market in Orlando, Fla., from Feb. 24 to 26, 2022. Besides marking the company’s return to in-person buying markets, it will also be Orgill’s 175th anniversary.

“Believe me, we are planning for the Spring Dealer Market to be a celebration in a lot of ways,” Moore says. “Most importantly, we want it to be a big thank you to our customers and our vendors for getting through the past year, but also for supporting Orgill and helping us achieve such a significant milestone in our corporate history.”

Vendors meet online sellers at Home Improvement eRetailer Summit

The fifth edition of the Home Improvement eRetailer Summit, and the first one to go virtual, was held last month. As a forum for vendors to get in front of online sellers, it proved a success.

The one-on-one meetings, which took place on day two, allowed vendors to connect with retail buyers and executives from the likes of Goedeker’s, Spreetail, Boscov’s, Sustainable Supply, Zoro.com, and Firefly Buys. Collectively, these online home improvement sellers represent billions of dollars in sales annually.

The first day concluded with a panel featuring some of America’s leading online home improvement sellers and moderated by Michael McLarney of Hardlines. The panelists shared key learnings they had experienced coming through the COVID pandemic.

Brian Fricano, CEO of Sustainable Supply, noted that for companies and individuals alike, the trials of last year required the ability to adapt or pivot very quickly. He called it “an essential 21st-century skill” that found his company shifting assortments to remain relevant to customers.

Asa Farquhar, VP of Spreetail, stressed the importance of human relationships. As an organization, it’s important to consider the priorities between work and home so individuals can balance them both through the pandemic. “We did that by focusing on honest, open communications with employees and with our partners about what could happen to their lives.”

For Elizabeth Ragone of Boscov’s, a chain of 50 department stores in the U.S., the challenge was about timing. Her company had historically catered to a loyal and ageing customer, but the advent of COVID forced the retailer to reconsider—and quickly. Moving more online and educating that venerable customer to come with them was a part of the transformation Boscov’s went through in 2020.

Each of these major retailers was among the individuals who met virtually with vendors to discuss online sales opportunities.

“The summit offered a great opportunity to meet with some of the best online retailers in North America,” McLarney said. “Each of them offered valuable insights about their experience overseeing their business during the pandemic. They talked about the importance of shifting their product lines to meet changing demand, the importance of maintaining strong relationships with their teams while working remotely, and they need to think differently through this whole experience.”

Darryl Pollock has been named channel partner manager at Trusscore. He joined the Kitchener, Ont.-based company last summer as a product manager. Before joining Trusscore, he was a roofing product manager at Bailey Metal Products, and his background also includes stints at Ply Gem Canada and CanWel Building Materials.

DMC Recruitment Group has welcomed two new members to its building materials recruitment team. Mike Houston has 13 years of experience recruiting for mid-level to executive positions in the LBM and construction industry. Shannon Cupskey has worked for more than 20 years in the home improvement industry, including retail, sales agencies, manufacturing, distribution, and buying groups.

DID YOU KNOW…?

… that the very first episode of our brand new Hardlines Podcast Series, What’s in Store, goes live this week? Our inaugural episode features an exclusive interview with Tony Hurst, the president of Lowe’s Canada. Be sure not to miss this important update from one of the country’s leading home improvement retailers. Click here now to sign up for the Hardlines Podcast Series!

RONA affiliate dealers Lori and Marc Palsson have acquired a third store in Dryden, Ont. After 40 years in business, the store will be converted to the RONA banner and undergo renovations to increase its sales area by over 5,000 square feet. The overhaul will allow it to house a new 3,300-square-foot seasonal area and a 2,500-square-foot kitchen, bath, and appliance centre. The process, which should take five to six weeks, will represent a local investment of approximately $1 million and is expected to create 15 jobs in the community.

Home Hardware Stores has been named a Top Fleet Employer of Distinction by Trucking HR Canada. The program, now in its eighth year, honours the best trucking and logistics industry workplaces in Canada. Award applicants are evaluated on recruitment and retention practices, workplace culture, compensation, training and skills development, and innovative HR practices. Home Hardware has 140 tractors and over 500 trailers on the road, travelling 20 million kilometres per year, says the company.

The newest member of Castle Building Centres is Toronto’s ML Lumber & Building Supplies. Owners Connie Vieira and her son Rene Silva Jr. have operated independently in Toronto since 1974. The business was founded as Maple Leaf Lumber in 1932.

Dollarama reported Q4 profits of $173.9 million, compared to $178.7 million a year earlier. Sales for the quarter rose to $1.1 billion from about $1.07 billion. Comparable store sales edged down by 0.2 percent. Despite a spike in-store traffic during the holiday season, sales suffered after the introduction of retail restrictions in Alberta, Ontario, and the chain’s home province of Quebec.

SUPPLIER NEWS

West Fraser Timber Co. has issued an update on its Dudley, Ga., lumber mill and Chambord, Que., OSB mill. Substantial portions of a new Dudley mill are being commissioned and are ramping up, with the site expected to be fully operational by the end of the second quarter of 2021. Operations at the original site will be wound down by that time. The Chambord mill has completed commissioning and panels are now being produced and shipped. It has started the ramp-up toward full production capacity.

ECONOMIC INDICATORS

Total U.S. retail sales excluding non-store retailers (not seasonally adjusted) in December 2020 were up 4.8 percent. Sales by the building supplies, garden equipment, and supplies dealers subsector were up 20.5 percent in December compared with the same period a year earlier. (U.S. Commerce Dept.)

NOTED

Léger Marketing’s annual reputation ranking shows that Quebec consumers are responding positively to familiar brands. Léger VP Christian Bourque suggests the uncertainty of the pandemic makes stability and familiarity attractive so people are rewarding these types of businesses. Canadian Tire took the top spot both nationally and in Quebec, while IGA, Metro, and pharmacy chain Groupe Jean Coutu also featured in the top 10. RONA, which moved down in the rankings after its 2016 acquisition by Lowe’s, logged the second-biggest jump this year, rising by 20 points to number 15.

OVERHEARD…

“We believe that by adding additional Online Buying Events to our schedule, we can help our customers take better advantage of the seasonal buying opportunities available to them. By adding events, we won’t be asking them to condense their purchases into two narrow windows in the fall and spring.”
—Greg Stine, EVP of marketing and communications at Orgill, on that company’s commitment to continue to provide purchasing access for customers through virtual events, in association with live shows as conditions improve.