Early last year Tony Hurst was put in place as president of Lowe’s Canada. Based in the company’s head office and distribution centre in Boucherville, Que., Hurst reports directly to Lowe’s president and CEO Marvin Ellison.

Hurst has spent the past year getting used to the business—and to Canada. Recently, he sat (virtually) with Hardlines to share his observations.

When asked what differences he identified between Canada and U.S. home improvement markets, Hurst noted that there are many similarities, especially in terms of the customer and how to go to market. But he did add that the Lowe’s model here, with its multiple banners and ownership models, is “drastically different than the U.S.”

That, he admitted, is the big distinction between Lowe’s Canada and the U.S. parent. “I get asked this question a lot about, ‘what is our long-term banner strategy?’ My answer would be that I’m not as concerned about the name on the front of the building as I am about the experience and the brand recognition for the customer.”

The focus now, he added, is on making life easier for that customer. “A lot of our work and our attention has been around making sure that we have a better experience in-store—a more frictionless experience, especially as we focus more on omnichannel amid these times of the pandemic.”

He identified the varied store formats as an advantage when selling to contractors. “We also have our building centres, which allows us to really expand our reach as far as our pro focus segment, with goods that you wouldn’t necessarily carry in a corporate store.”

That ability to tailor assortments beyond the corporate offering is something he hopes to flow back to the big stores. “I think that’s been a strength for us that we’re continuing to lean into—to figure out how we grow our reach to all of our corporate stores with an offering that’s differentiated to that pro segment, so that we can service them much better.”

Hurst believes that the many aspects of the Lowe’s Canada store formats offer a range of categories and ideas that can be shared with the other banners. For example, he notes that Réno-Dépôt stores, which are solidly focused on pro customers, do not have special-order kitchen centres. But products and services that appeal to DIYers and go beyond just what’s on the shelves are important.

“So we’re really focused on how we expand the best of each banner into our other stores, and really give a more consistent experience as well. At the end of the day, it’s about how we get a consistent experience, regardless of the name on the front of the building.”

(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 in the second week of April. 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!)

It’s showtime for the home improvement industry, as wholesalers roll out their buying events to drive sales and promote programs from their respective banners. As the pandemic drags on and variant viruses slow the world’s recovery, vendors and buyers alike are wondering what the fall will look like.

Home Hardware’s 2021 Virtual Spring Market kicked off all last week and ends today. The event boasted hundreds of suppliers, live video interaction capability, and key updates from Home Hardware’s hardlines and LBM merchandise teams. Home’s events have historically been preceded by a dealer conference and the virtual one had its own educational component consisting of 16 category review webinars.

Also last week, Ace Canada held a virtual show for the dealers it now services. The 2021 Spring Buying Show drew more than 100 dealers who carry the Ace banner in Canada. Due to a strategic alliance with LBM buying group Sexton Group, the show also featured a showcase for LBM dealers on the combined strengths of Sexton Group and the Ace Canada banner program. The next in-person show is scheduled for September 2021, but a decision about whether to pivot to a virtual show will be made soon.

Orgill held its February show virtually, with increased emphasis on learning and seminars. Taking advantage of a different mix of attendees than it might get with a live event, it offered seminars and service updates, along with an online buying show. For the educational component, the company reported more than 3,000 dealer registrations for some 30 sessions.

Come the fall, plans by the various groups and wholesalers become less clear. Orgill had committed to make its next market a live event, scheduled for Chicago from Aug. 26 to 28. But based on the success of its virtual shows, it’s evaluating how to proceed with a combination of virtual and live events, says Greg Stine, EVP marketing and communications at Orgill. “Within the next week, we will be rolling out a 12-month plan that outlines how these online and in-person buying events will work in tandem to provide our customers with options that are best suited to meet their needs.”

In Canada, where vaccine rollouts have been hindered and travel hesitancy is considered greater than in the U.S., wholesalers have been slow to commit. The Home Hardware Fall Market typically falls on the third week of September, but the company says it could not confirm any plans yet for the format of that event.

“Home Hardware continues to build on the success of our previous virtual markets, leveraging technology in new and innovative ways to support our dealers’ growth and profitability,” said Kevin Macnab, president and CEO of Home Hardware Stores, in an email. “As we look to the future, decisions about returning to in-person events will be made following all health and safety regulations.”

BMR Group holds its show in Quebec City in the first or second week of November, drawing member-dealers from across the province, as well its dealers in the Maritimes and Ontario. That event took a pause last year when the buying event went virtual during COVID. A spokesperson for the company said they have not yet decided which formula to use and will decide in the coming weeks.

The virtual events unquestionably have their merits. They let many dealers who may have been prevented by time, money, or distance attend the buying markets from the safety and comfort of their home or workplace. The vendors who were contacted by Hardlines throughout COVID have expressed more mixed feelings. Many insist online platforms do not draw the kinds of attendance or generate the levels of business that a face-to-face event can deliver. The costs to participate in a virtual show can, they say, rival those of a live event.

As the industry—and the world—reckons with the return to some sort of normalcy, dealers and vendors alike have expressed their eagerness to get face to face again, despite the convenience of virtual events.

One thing bricks-and-mortar retailers have been realizing through the pandemic is the value of added services to make a customer’s experience easier and more complete. BMR Group is no exception and its latest initiative aims to simplify the often-painful process of securing a contractor once a project has been finalized.

BMR is partnering with RénoAssistance, a subsidiary of Desjardins Group, to offer customers in the Montreal region access, free of charge, to a pool of more than 1,200 contractors. Customers who consult with the BMR Reno Squad can look to the team of 35 professionals at RénoAssistance for help identifying their needs and completing their projects. All participating pros have been screened for quality and pricing.

RénoAssistance was founded in 2010 and Desjardins became a majority shareholder at the beginning of 2020. During the past year, the company says it has received more than 31,500 customer requests from the Montreal, Quebec City, and Toronto markets.

Requests for a price can be accessed through the BMR website and are processed directly by RénoAssistance, which will then present quotes from the three best contractors for the customer’s project. The bids are evaluated based on criteria such as previous customer references, legal structure, and results from worksite visits.

Referring to BMR’s positioning as a Quebec-based company that works to stay close to its customers, Martin Lecomte, vice-president, retail and network performance, said that “to partner with RénoAssistance, a Quebec flagship that has unrivalled expertise in this area, seemed natural to us. We are very pleased with this collaboration, which allows us to further our commitment to be the partner of choice in renovations, for both consumers and contractors, in Quebec.”

Joe Collerone, director of marketing at Sexton Group, has decided to retire at the end of this month. A 15-year veteran of the Winnipeg-based group, Collerone was considered instrumental in developing the programs for its members. In his early years with Sexton, Collerone was on the road working to grow membership across western Canada.

Robert Sawyer is joining Loblaw as COO. With 40 years experience as a Canadian retail executive, including as COO at Metro, he served as CEO and president of RONA from 2013 until 2016, when he joined Weston’s board.

Kaileen Millard-Ruff has joined Peavey Industries as senior vice president, operations. Her portfolio consists of the Peavey Mart, Mainstreet Hardware, and corporate Ace Hardware locations. In addition to Peavey’s in-field store retail operations team, Millard-Ruff also oversees operational services and the company’s facilities and maintenance team. Previously, she was VP of retail at Lee Valley Tools.

DID YOU KNOW…?

… that Hardlines is launching podcasts next month? Our brand new Hardlines Podcast Series, What’s in Store, will go live in the second week of April with news and insights from industry leaders and top dealers. The first episode features the president of Lowe’s Canada, Tony Hurst, in an exclusive interview. You won’t want to miss this, so click here to sign up for the podcasts now!

Exchange Solutions, a marketing technology company and loyalty services provider, has formed a partnership with Kent Building Supplies, which operates 48 home centres and big boxes in Atlantic Canada. Exchange Solutions, which has offices in Toronto and Boston, will work with Kent to develop an online loyalty program using its ES Loyalty SaaS Platform and ES Engage. This partnership will allow Kent to offer customers a personalized program that gives them access to exclusive, customized offers and rewards. Consumers will also have the opportunity to take advantage of real-time offers while browsing online.

eBay Canada has launched a new business offering “Certified Refurbished” products. Canadians can now shop for popular brands on eBay at up to 40 percent less than buying new, but with all the same assurances, including a “like-new” quality guarantee backed by the manufacturer and a free, two-year warranty. The program was launched in the U.S. last year.

SUPPLIER NEWS

The Quebec Hardware and Building Supply Association (AQMAT) provided a telecast version of its Annual Industry Gala this year. The event, which attracted an estimated 600 viewers, honoured both retailers and suppliers in Quebec’s retail home improvement industry, with five retailers, five manufacturers, three employees, one sales team, and two innovative products earning top honours from among the 89 entries. A special ceremony also marked the years of service of 19 employees. (Click here to see the full list of winners.)

ECONOMIC INDICATORS

Retail sales fell for the second consecutive month, down 1.1 percent to $52.5 billion in January. Sales declined in six of 11 subsectors, representing 39.4 percent of retail sales. Core retail sales—which exclude gasoline stations and motor vehicle and parts dealers—also posted their second consecutive decline, falling 1.4 percent. However, the building material and garden equipment and supplies dealers subsector remained strong, up 2.9 percent from the previous month, and up a healthy 26 percent year over year. (StatCan)

Sales of new single-family homes in the U.S. tumbled 18.2 percent in February, hitting a seasonally adjusted annual rate of 775,000 units. That represented a nine-month low, pulled down by cold weather and high lumber and mortgage costs. On a year-over-year basis, new home sales were up 8.2 percent in February. (U.S. Commerce Dept.)

Sales of existing U.S. homes fell by 6.6 percent in February to a seasonally adjusted annual rate of 6.22 million units. (National Association of Realtors)

NOTED

According to a Leger survey commissioned by eBay Canada, 40 percent of Canadians have purchased a refurbished item in the past, but 70 percent would consider buying refurbished in the future if it came with the same assurances as buying brand new.

OVERHEARD…

"I have enjoyed working with Joe since I began with the company and have much respect for his work and contribution to our company over his 15-year career with Sexton.”
—Eric Palmer, vice president and general manager of Sexton Group, on the departure of Joe Collerone after 15 years of service developing the group’s dealer network.

Both Lowe’s Canada and Home Depot Canada have launched their spring hiring campaigns in preparation for the home improvement industry’s busiest season. For dealers of all sizes, hiring poses a big challenge and the struggle to find—and keep—staff is something that is shared by stores across the country.

Lowe’s says it aims to fill over 7,000 full- and part-time positions throughout its network of Lowe’s, RONA, and Réno-Dépôt corporate stores across Canada. At rival Home Depot Canada, the search is on for an additional 5,000-plus workers to fill full-time, part-time, and seasonal positions that include overnight associates, sales associates, cashiers, specialty staff, and department supervisors.

Lowe’s stores across the country have been holding national and regional hiring events, which will continue through next month. This year, for the first time, national events take place exclusively online, while regional events are offering candidates a hybrid formula that allows them to complete their first interview online or in person. Big box stores typically have about 150 people on staff. Some locations will look to add up to 30 percent more associates.

Lowe’s Canada continues to fill ranks corporately as well. It told La Presse recently that it’s seeking to fill 80 new jobs at its Boucherville, Que., head office. That’s in addition to some 2,000 new workers for its Quebec corporate stores. In Canada, Lowe’s has more than 26,000 associates, in addition to approximately 5,000 workers at independent affiliate dealer stores operating under the RONA banner.

Home Depot Canada, which has more than 30,000 workers in Canada, offers new hires plenty of training to get them up to speed quickly. The company says it provides more than one million hours of training programs each year.

The company prides itself on a culture whose values include respect for all people, excellent customer service, and giving back. In fact, associates contribute more than 60,000 hours each year in support of local community projects or through The Home Depot Canada Foundation, which is committed to preventing and ending youth homelessness in Canada.

Peavey Industries, through its Ace Canada licence, has taken over the Ace Hardware in Manning, Alta. Formerly an independent dealer-owned Ace outlet with a long history in Manning, Peavey decided to turn it into a corporate store.

The location has been in operation since the 1980s, always a part of the same family of companies. It began as Macleods, transitioned to True Value in the early 1990s, and was rebranded under the TruServ banner in 2011 before its final realignment under Ace in 2015.

Peavey Industries acquired the Ace Canada brand in 2020.

Damian Zapisocky, senior vice president, corporate and strategic development with Peavey, explains that Ace Canada will work with its dealers to develop a successful outcome to their succession plans.

“We are excited to bring this store into our corporate envelope; we also welcome the opportunity to find succession solutions for any of our existing Ace dealers in need and other aligned businesses that may be interested in consulting with us as to the benefits and rewards of becoming an Ace-branded dealer.”

However, in this case, Ace Canada won’t look for a new dealer-owner for the Manning location. It will continue as a corporate store, as both ownership models, the company says, have a place in Peavey’s family of companies. Besides its Ace business, Peavey Industries owns 90 corporate stores, which operate under the Peavey Mart and MainStreet Hardware banners.

Will Pasichnuk will stay on as manager of Manning Ace Hardware. “I have been here for 20 years and a part-owner in the business for 14 of those years. This transition will provide the solid footing we need to remain the strong and valuable local resource for our customers who have relied on us for nearly 40 years,” he said about the change from independent ownership to a corporate store.

Ace Canada is looking to add more dealers across Canada, whether start-ups or as a succession alternative for an existing retailer. The company adds that it can offer leverage from the standpoint of both a dealer-owned and a corporate model. Whether someone wants to join Ace or to roll up into a corporate model, the company will work with the individual and determine what’s best for them.

For the first time in its history, Federated Co-operatives Limited (FCL) hosted its annual meeting virtually. Nearly 300 delegates representing local co-operative associations from across Western Canada came together online to participate earlier this month.

Saskatoon-based FCL is rated by SaskBusiness Magazine as the second-largest business in Saskatchewan (and ranks in our Hardlines Top 20 list of home improvement retailers—Editor). Annual revenues reached $7.9 billion, down 13.5 percent from $9.2 billion in the previous year.

While most of its divisions saw growth, the overall drop was due to a $1.3 billion decline in energy sales. Earnings were $177 million, with $117.5 million from the profits being returned to local Co-ops and their communities in Western Canada.

FCL’s hardware and home centre business, through its Home and Building Solutions division (HABS), saw wholesale sales, or sales to its Co-op member stores, reach $363 million in fiscal 2020, up from $325 million in 2019. Profits remained steady at $12 million for 2020. The HABS team told Hardlines it remains focused on growing Co-op’s store brands.

In his address to delegates, CEO Scott Banda spoke of the resiliency of the Co-operative Retailing System (CRS) while facing the challenges posed by the COVID-19 pandemic. He recognized the strong results experienced in food, home and building, and agriculture, even as energy markets collapsed.

Harnessing technology to meet customer needs was  central to Orgill’s launch of its Distance Learning Series earlier this year. This three-week event led up to the hardware wholesaler’s Online Buying Event as a way to offer customers a range of learning-focused content in a virtual environment.

The Distance Learning Series offered retailers the opportunity to select from more than 30 live webinars from Orgill and industry experts during a two-week window. The online seminars are also available to customers on Orgill’s website.

“We know that our customers see a great deal of value in the seminars and learning sessions that normally take place during the live Dealer Markets,” said Jordan Hughes, Orgill’s marketing and advertising manager. “We didn’t want them to miss out on this kind of experience in between our live shows, so we launched our first Distance Learning Series.”

In total, Orgill had more than 3,000 registrations for the Distance Learning Series sessions. While the first round of Distance Learning Sessions took place in January, Orgill plans to offer these sessions each month, according to Hughes.

“We will be offering this Distance Learning Series during the last full week of each month moving forward and featuring a variety of valuable content for our customers,” he said.

While Hughes says that live seminars and learning sessions will continue to play a big part in future live Dealer Markets, the Distance Learning Series will offer access to enhanced content on an ongoing basis.

“Technology allows us to offer access to this kind of information and content on a more regular basis than just during our live Dealer Markets, so we see this as a great opportunity to share information with our customers,” he said.

Daniel Lampron has returned to Patrick Morin Renovation Centres, as VP and COO. Lampron previously served as the company’s managing director from 2011 to 2018. In the interval, he held leadership positions at Groupe Lou-Tec and Groupe Deschênes. Patrick Morin is now under new ownership (read that story in our Feb. 22 edition! —Editor), with a new president, Louis Turcotte. Turcotte heads up Groupe Turcotte, a network of seven Home Hardware stores that partnered with Home Hardware to acquire Patrick Morin earlier this year.

Jean Belhumeur has retired as president and COO of Leviton Canada. He started his career with Leviton in 1994 as a controller and he was promoted to his current role in 1998. Jason Prevost has succeeded Belhumeur as president and COO. He joined the company in April 2019 as vice president of distribution. After more than 31 years at Leviton, Bruce Brown, VP retail, has also retired. Julie Marineau has taken over that position. She previously held the role of sales director for Alberta and Prairies for Leviton’s distribution channel and has been part of the Leviton team for over 25 years.

DID YOU KNOW…?

… that you don’t have to wait another week to get industry news from Hardlines? Our free Daily News is an important way to keep up every single day. And it’s free. You get the deep dive on Mondays, but until then make sure you’re signed up for our free Daily News updates. (Did we mention that they’re free?)

TORBSA has overhauled its website to support its growth strategy. The site, featuring the buying group’s new visual identity, includes shareholder distribution pages, membership information and supplier information, and a profile of TORBSA’s head office team. Alongside the new features, the membership portal will continue to keep shareholders connected.

Castle Building Centres has another new member in Ontario. Peel Hardware & Supply in Caledon is a family-owned business offering building materials, hardware, and garden supplies, and provides feed to the local farming community. Owner Bill Hewson founded the store in nearby Brampton in 2013 and expanded to the 20,000-square-foot Caledon facility in 2016. His daughter, Jennifer Hewson, manages the business.

IN MEMORIAM

Keith Moffatt, who co-founded Moffatt & Powell in 1956 and Watford Roof Truss in 1972, died at his home on March 7 at the age of 87. In recognition of his career in the industry, Moffatt, along with partner David Powell, received a lifetime industry achievement award in 2008 from the Lumber and Building Materials Association of Ontario. He is survived by his wife, Marion (Beaumont), their two children and their spouses, Mary (David) and John (Jennifer), and two grandchildren, Andrew and Benjamin.

SUPPLIER NEWS

CanWel Building Materials Group reported that its Q4 revenues increased by 37 percent to $402 million, compared to $293.4 million in the same period in 2019. The gain was attributed to strong home improvement activity and strong housing starts. Net earnings for the quarter amounted to $15 million. Revenues for the fiscal year rose by 21 percent to $1.61 billion, from $1.33 billion in 2019, with earnings of $59.6 million.

Quebec industry association AQMAT held its annual Recognition Gala virtually this past weekend, honouring outstanding performers in the home improvement industry in Quebec. Retailers and suppliers were recognized in 16 categories.

SUPPLIER NEWS

German trade show organizer Koelnmesse has rescheduled this year’s spoga+gafa event for Aug. 8 to 10, as it works to develop digital platforms to support a hybrid format. The organizers of Europe’s garden and leisure trade show said that most exhibitors were willing to go ahead in the spring, but the public appetite for business travel remains low. August’s event will be the show’s first hybrid edition.

Intertape Polymer Group reported Q4 revenues of $344.1 million, up 18 percent thanks to higher demand for products like water-activated tape and protective packaging. Adjusted net earnings increased $18.8 million to $32.4 million primarily due to an increase in gross profit, partially offset by an increase in income tax expense. Revenues for fiscal 2020 rose by 4.7 percent to $1.2 billion, while earnings increased by $31.9 million to $89.7 million.

ECONOMIC INDICATORS

Sales of existing homes climbed by 6.6 percent between January and February 2021 to set another new record. The seasonally adjusted activity was running at an annualized pace of 783,636 units in February. The month-over-month increase in national sales activity from January to February was led by the Greater Toronto Area and other Ontario markets, along with Calgary and a number of markets in British Columbia. These offset a considerable decline in sales in Montreal. (Canadian Real Estate Association)

February’s seasonally adjusted annual rate of housing starts fell by 13.5 percent to 245,922 units, compared to 284,372 units in January. The SAAR of urban starts decreased by 14 percent in February to 231,042 units. Multiple urban starts declined by 15.8 percent to 163,757 units while single-detached urban starts were down 9.3 percent to 67,285 units. (CMHC)

U.S. housing starts fell by 10.3 percent in February to a seasonally adjusted annual rate of 1.42 million units. Building permits dropped by 10.8 percent, offsetting January’s gains. (U.S. Commerce Dept.)

February’s U.S. retail sales were estimated at $561.7 billion, a decrease of three percent from January but 6.3 percent above February 2020. LBM and garden dealers racked up $30.3 billion in sales for the month, compared to $32.02 billion in January. (U.S. Commerce Dept.)

NOTED

More than 75 percent of Home Depot Canada store managers started as hourly associates.

OVERHEARD…

“The past year has inspired us to think differently and adapt quickly to ever-changing situations. The diversity of our business lines and our commitment to all work together have helped guide us through this crisis. We must continue to focus on the long-term opportunities and consider what the future looks like beyond this pandemic to serve our Western Canadian communities.”
—Scott Banda, CEO of Federated Co-op, during the company’s 92nd, and first virtual, AGM last month.

Starting today, Alexandre Lefebvre, president of Lefebvre & Benoît, steps into the CEO role at BMR Group. He replaces Pascal Houle, who has led BMR since 2015 and moved back to BMR’s parent company, Sollio Cooperative Group, as COO.

Along with the CEO role, Lefebvre will serve as EVP at Sollio.

BMR reached a deal back in the summer of 2019 to acquire a stake in Lefebvre & Benoit and has remained its main shareholder ever since. Established almost 60 years ago, Lefebvre & Benoît is a major supplier of building materials to builders and contractors in Quebec, with more than 600 employees. Both companies are members of the Independent Lumber Dealers Co-Operative buying group (ILDC).

Houle and Lefebvre have been working closely together since the buyout and Lefebvre will report directly to Houle in this new role. Lefebvre will also hold a seat on the Sollio board and retain his position as chair of the board of Lefebvre & Benoît.

“I am happy to welcome Alexandre Lefebvre to our team and have complete confidence in his ability to succeed me as CEO of BMR Group,” said Houle in a release. “Alexandre has extensive experience in management and has been head of the family business since 2012.”

Lefebvre’s CV includes an MBA from Queen’s University and a BA in Business Administration from the University of Ottawa. He sits on the board of ILDC and is a member of the board of governors of the Conseil du patronat du Québec (CPQ). In 2017, he was named one of Canada’s Top 40 under 40.

In his new role, Lefebvre will ensure BMR Group’s continued growth in alignment with the company’s strategic plan. His brother, Marc-André Lefebvre, will now serve as president of Lefebvre & Benoit.

“I am very proud to join BMR Group—a local company that values entrepreneurship and regional development. Having headed the Lefebvre & Benoit family business for close to 10 years, the time has come to take on a new challenge,” said Alexandre Lefebvre.

What’s the best part about being an Outstanding Retailer Award winner? Oh sure, there’s the engraved plaque, the promotion of the award within one’s community, and being celebrated in person at the Hardlines Gala Dinner.

But winning owners and managers tell us over and over that it’s the sense of pride they have for their staff that really highlights their experience. That sense of pride is shared by all winners and by the industry at large, as ORA winners represent the very best qualities of retailing, leadership, and humanity that make this industry so great.

That’s why Hardlines is pleased to announce the call for entries for the 2021 Outstanding Retailer Awards.

The awards, which are national in scope, are open to all Canadian hardware and home improvement retailers and managers who have operated under their current ownership for at least two years.

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.

While the state of the world remains uncertain, right now we are 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. We are committed to providing a safe and comfortable environment in which to host the conference and the awards and will keep you updated as we draw nearer to the date. (Click here to see a full list of categories and entry details, et en français ici.)

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

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

(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.)

A recent online conference focusing on retail and marketing in the digital world provided some valuable insights into the direction of one of Canada’s leading hardware retailers.

Cynthia Wong is the associate vice president of digital product management at Canadian Tire Corp. She sat on a panel at the Dx3 conference to share her company’s online challenges as it adapted to the demands created by the pandemic. She noted that the company, across all its retail banners, saw online sales rise by 183 percent in 2020. The Canadian Tire Retail business was up an astonishing 250 percent.

It happened fast last April. Literally overnight, sales on the Canadian Tire website increased by almost 25 percent. “All of a sudden, we had so much [online] volume that we had a huge and extended blackout on the site, which will live forever on BlogTO,” she said, referring to the notice that one popular Toronto site took of the technical difficulties.

Behind the scenes, changes had to be made to various functional areas, including digital, supply chain, and merchandising. Budgets had to be reallocated to meet the demand for fixes in different parts of the company.

Through it all, she added, her team worked to track the pulse of the customer, something that was done daily. Going forward, “the focus will be on stability, performance, and keeping an eye on the retail experience.”

Hardlines is pleased to announce the appointment of Christina Manocchio as editor. In this role, she is responsible for the full range of Hardlines products, including the weekly Hardlines newsletter, Hardlines Dealer News and our various reports. She is also the main lead on editorial production of our print magazine for dealers and managers, Hardlines Home Improvement Quarterly. Her byline will appear on the Editor’s Message page of the next issue HHIQ.

Christina has already proved herself a creative and integral part of the Hardlines team. She has also been deeply involved in the development of new editorial products at Hardlines as the company evolves new ways to serve the retail home improvement industry coming through the pandemic.

She brings solid editorial background to her new role. She worked as a copy editor at The Hamilton Spectator and the Toronto Star, on its daily news beat. Her experience in the B2B world includes a stint as associate editor at Food in Canada magazine. Her wide-ranging experience includes co-ordinating communications for community and not-for-profit organizations. She is also a Brownie leader with Girl Guides of Canada since 2019.

Christina graduated with a BA in journalism from Wilfrid Laurier University and is currently working toward a marketing diploma at McMaster University.

We look forward to working with Christina as she connects with dealers and executives across the country in her ongoing coverage of the retail home improvement industry in Canada.

DID YOU KNOW…?

… that you don’t have to wait another week to get industry news from Hardlines? Our free Daily News is an important way to keep up every single day. And it’s free. You get the deep dive on Mondays, but until then make sure you’re signed up for our free Daily News updates. (Did we mention that they’re free?)

RONA affiliate dealer Fraser Valley Building Supplies (FVBS) has acquired a new store in Terrace, B.C. Terrace Builders Centre will be FVBS’s sixth location.

Castle Building Centres has added two new members in Ontario. Daro Vinyl Products, in Val-Caron, is owned by Roy Gareau and his son Joel. The store has served residential and commercial customers in Sudbury’s north end for almost 25 years. Tri-County Building Supplies is in Coboconk, in Ontario’s Kawartha Lakes district. Owned by Larry Cobbledick and managed by Renee Lee, the building centre has served the local area for almost 40 years.

Home Hardware is participating in Tim Hortons’ 2021 Roll Up To Win contest. Tim Hortons customers will have the chance to win one of 1,000 Home Hardware eGift Cards valued at $100 each. Roll Up To Win runs from March 8 to April 4 via the Tim Hortons mobile app and online at www.rolluptowin.ca. Tim Hortons’ iconic beverage cups will also feature the Home Hardware logo.

TORBSA will host its inaugural Virtual Vendor Expo May 18 to 21, replacing its Annual Vendor Appreciation Event. The expo will showcase the buying group’s preferred suppliers, with the final evening dedicated to an invitation-only virtual Vendor Appreciation Event.

Home Hardware dealer-owners Hugues Nepveu and Isabelle Patry have acquired Centre de Rénovation St-Augustin in Mirabel, Que. They joined the Home Hardware banner seven years ago. The Mirabel store is their fifth in the province. Their other Centres de Rénovation are in Pine-Hill (Brownsburg-Chatham), L’Epiphanie, Fabreville (Laval), and Sainte-Marthe-sur-le-Lac.

GMS Inc. reported Q3 sales of $751.2 million, a 1.3 percent decline from $761.4 million in last year’s comparable period, due to the continued impact of the pandemic on markets. Organic net sales declined 1.9 percent. Adjusted earnings rose to $25.9 million from $22.2 million.

Costco Wholesale Corp.’s Q2 net sales rose 14.7 percent to nearly $43.9 billion, from $38.36 in Q2 of 2020. Total revenues reached $44.77 billion, from $39.07 billion a year ago. Sales through the online channel soared by 75.8 percent, while comp sales in Canada grew by 13.4 percent.

David Dingwell died at the age of 77 in Souris, P.E.I. His career in home improvement retail dates back to the 1970s and included working for hardware wholesaler Cochrane Dunlop, and later Sodisco-Howden. More recently, David was named business development manager at TIMBER MART in 2007 and became TIMBER MART’s regional director of member services for Atlantic Canada in 2014. In 2017, the ABSDA conferred on him its first-ever Industry Lifetime Achievement Award. He is survived by his wife of 55 years, Dessie (Creamer), their three children, and six grandchildren, as well as his brother Roger and several nieces and nephews. A celebration of life will be held when circumstances permit.

SUPPLIER NEWS

Door and window maker ATIS has announced the closures of its Terrebonne, Que., plant and 19 outlets in the province as it seeks creditor protection. Its management says it has not thrown in the towel but is working to restructure to return to profitability.

OVERHEARD…

“Throughout his career, Dave formed many lasting relationships and was a personal friend to a number of TIMBER MART dealers, vendors, and staff. He had the rare ability to make everyone he met feel special and always had TIMBER MART members’ best interests at heart. He has touched so many people in a positive way and will truly be missed.”
—Bernie Owens, TIMBER MART president and CEO, on the passing of Dave Dingwell, who had represented the group in Atlantic Canada since 2007.

“We’re all now technology companies.”
—Cynthia Wong, associate vice president, Digital Product Management at Canadian Tire Corp. She was speaking at this year’s Dx3 conference about the digital shift that retailers are making to adapt during the pandemic.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DID YOU KNOW…?

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

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

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

Canac opened its 31st outlet last week in La Prairie, Que. The 40,000-square-foot store has a 10,000-square-foot outdoor garden centre and a 24,000 square-foot lumber yard. Representing an investment of $10 million, the new location will create 125 jobs. Construction of the chain’s next store, in Contrecœur, is slated to begin in the summer. Canac’s expansion push also includes plans for its first Ontario store, in Hawkesbury, and a new LBM distribution facility in Drummondville, Que., to replace its two existing warehouses.

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

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

ECONOMIC INDICATORS

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

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

OVERHEARD

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DID YOU KNOW…?

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

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

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

SUPPLIER NEWS

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

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

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

ECONOMIC INDICATORS

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

NOTED

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

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

OVERHEARD…

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DID YOU KNOW…?

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

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

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

SUPPLIER NEWS

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

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

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

ECONOMIC INDICATORS

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

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

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

NOTED

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

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

OVERHEARD…

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DID YOU KNOW…?

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

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

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

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

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

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

SUPPLIER NEWS

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

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

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

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

NOTED

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

OVERHEARD…

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DID YOU KNOW…?

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

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

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

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

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

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

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

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

ECONOMIC INDICATORS

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

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

OVERHEARD…

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DID YOU KNOW…?

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

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

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

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

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

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

SUPPLIER NEWS

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

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

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

IN MEMORIAM:

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

ECONOMIC INDICATORS

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

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

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

NOTED

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

OVERHEARD…

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Topics covered in this course include:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SUPPLIER NEWS

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

ECONOMIC INDICATORS

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

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

NOTED

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

OVERHEARD…

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