NATIONAL REPORT — Hardware and home improvement retailers across Canada are working hard to provide needed products during the COVID-19 crisis. They are trying hard to fill a role as essential retail services, to ensure that provincial governments allow them to keep their doors open.

As people tackle projects while confined to their homes, dealers across Canada have seen increases in sales across a range of categories for seemingly less pressing projects, with many reporting spikes in areas like paint sales. The term “Isolate and Renovate” and is starting to catch on.

Quebec’s hardware dealers are seeing an uptick in demand for certain items during the ongoing pandemic, but overall sales for the important spring season may still fall short of past years, La Presse reports. “We’ve never sold so much paint,” said Sylvie Robert, who manages a RONA store in Montreal’s Villeray district. Patrick Dussault, assistant manager of a Patrick Morin store in the city’s east end, has observed the same trend, along with a push for garden supplies. “People want to something to do, so they come into the store,” he told La Presse.

Castle dealer Ivan Cottreau, of E&J Millworks in Yarmouth, N.S., says customers are “anticipating being stuck at home during the summer” and turning to DIY projects.

In Princeton, B.C., Susan Robinson, owner of Fletcher Home Building Centre, says she sees “a lot of repair stuff. People are just fixing things.” She notes that lumber remains her top seller, with paint, hot water heaters and plumbing all strong. “We’ve never sold so many toilets,” she laughs.

Darrin Noble, vice-president, store operations and Burford Paint and Home Products at Home Hardware Stores Ltd., confirms the company’s Beauti-Tone Paint division “is booming more than ever.” As people find themselves with free time, painting has become one of their top home improvement projects. “Paint sales have seen double-digit growth in the past period,” Noble says, adding that “as a manufacturer, Beauti-Tone has implemented physical distancing precautions and is producing at full capacity to keep up with demand.”

Robinson notes that another category that has gone through the roof has been seeds. “We’ve moved more seeds in the last month than we would over a whole season.” Flowers remain popular, but vegetable seeds are especially in demand now, she notes.

Amanda Fancy, co-owner of Gow’s Home Hardware and Furniture in Bridgewater, N.S., has also seen a rise in categories related to gardening, including soil. And she too cites paint as a big seller. But she questions how the definition of “essential” should be qualified.

At her store, people will even come in to buy a candle. And though it may not be considered “essential,” she says those things are becoming, in their own way, essential to helping people get through the anxiety and isolation of the current pandemic.

“We just need to be kind to people,” she says.

Online sales are booming. Isn’t it time for dealers to get serious about digital?

TORONTO — Indigo Books and Music is rehiring 545 of its workers as the retailer’s online sales have tripled since the advent of the COVID-19 pandemic. Walmart Canada has just added PayPal as a payment option for its online sales.

As people stay home and shop online more than ever, big retailers that already have a strong digital presence are finding ways to improve their offerings and ease access for customers. So, isn’t it time for independents who are not yet doing business online to seriously consider it?

The move to take calls or emails directly to the store for curbside pickup has been a difficult, but necessary, transition for many dealers. The plethora of micro-sites operated by some of the banners in this country do not do justice to the ability of local retailers to serve their markets.

There are options for small businesses looking to get going. eBay Canada has launched “Up & Running,” an accelerator program specifically designed to support retailers without an e-commerce presence to transition to selling online. The initiative will also help existing online businesses create a channel to reach customers worldwide.

Another service, “Virtual Downtown,” is engaging local chambers of commerce to aggregate their retail and service offerings behind one website that will drive engagement based on location. And as more and more customers buy online then head to their local stores for curbside pickup, the notion of shopping locally is gaining ground.

According to Jim Davidson, the mastermind behind Virtual Downtown, the platform is like visiting a shopping mall or downtown, only online. The service accommodates the shopping behaviour of many Canadian consumers, who often prefer to buy online and pick up their purchase at their local store. It can, he notes, create a synergy for retailers that are grouped together within Virtual Downtown.

Davidson says that grouping stores in one online “shopping mall” encourages impulse purchases as consumers can browse through the product offerings of other stores within a community that share the same digital platform. And, he adds, “each retailer retains and showcases its brand,” unlike a platform such as Amazon, which focuses on the Amazon brand.

At eBay Canada, the company will now waive selling fees and offer a free basic store for a three-month period to assist businesses with cash flow as they navigate the current crisis. And the national online platform has its own local angle.

“The majority of eBay Canada sellers are small businesses from across the country. They embody what it means to stay local and sell global,” says Rob Bigler, general manager of eBay Canada. “Up & Running reflects our sense of responsibility and a commitment to retailers whose physical stores are temporarily closed and who lack an international e-commerce channel.”

(Retailers who wish to check out eBay Canada’s new program can click here. For more info about Virtual Downtown, click here.)

SPECIAL REPORT — Boyden Moore, president and CEO of Orgill, Inc., along with Greg Stine, EVP, marketing and communications, took time to speak with Hardlines last week. (Shown here l-r: Greg Stine along with Brett Hammers, EVP, sales and purchasing; Boyden Moore and Randy Williams, EVP, distribution)

Stine, who took on his role at the beginning of the year, notes that the changes the company went through as it reorganized its executive ranks back in January helped position Orgill to face the ongoing COVID-19 pandemic. Finance, operations and communications have all become more streamlined within the company, which has further helped Orgill stay close to its customers. “We’ve been battle-tested a little quicker than we thought,” Stine says.

Despite that, Moore notes that year-to-date sales growth in Canada has been positive. Even with restrictions in various parts of North America, the Canadian market continues to be serviced out of the Orgill Canada distribution centre in London, Ont., and a DC in Post Falls, Idaho.

Moore stresses that both facilities are fully operational and continue to supply Canadian dealers. He says there have been no cases of COVID-19 at either distribution centre or within the sales team in Canada. “There have only been six cases across the board with our staff of 5,000—with no hospitalizations.” Strict procedures have been put in place, both at Orgill’s head office and at the DCs.

He notes that challenges do exist within the supply chain. Last week, 45 vendors from various countries were shut down, while about 200 customers have closed their doors due to the pandemic, especially among international customers (Orgill ships to dealers in more than 60 countries).

The company has been working to maintain relations with dealers that reflect the conditions of each region they serve. “We’ve seen the same kinds of patterns in Canada and in the U.S., but we’ve seen that some restrictions are greater in Canada, especially in Quebec.” That province has experienced the highest reported rate of infection in the country.

Stine adds that communications are being delivered in a timelier manner than ever, as conditions related to the crisis change so quickly. That includes getting information to Canadian customers in both languages, “so we’ve worked out how to shorten the cycles to get news to Quebec.” Dealers can find regular updates on the supply chain and the status of their suppliers on Orgill’s website.

Moore sees some positive signs. “Our China factories are back on at 99 percent production capacity.” Crossing the border to Canada has not proved a big challenge, either. However, store conversions are “on pause right now.” Orgill has 150 projects ready to go, including many in Canada, that are now on hold. Nevertheless, any dealer keen to get going on a project can get all the plans and direction from Orgill, and even receive virtual support via video conferencing.

Moore says he’s excited about the opportunities he sees emerging from this crisis, along with many of the changes taking place currently in the Canadian marketplace.

BOUCHERVILLE, Que. — Lowe’s Canada will invest $1 million to support its associates and communities during the ongoing pandemic. Within that amount, a contribution of $241,000 will allow Lowe’s, RONA, Reno-Depot and Dick’s Lumber corporate stores across the country to support, either in cash or in kind, initiatives to meet specific needs in their regions.

A further $228,000 will go to RONA’s affiliated dealers to support store associates and local community needs.

In addition, $1,000 will be earmarked for each Lowe’s Canada corporate store to create a food pantry for employees, for an aggregate amount of $241,000. To compensate for the cancellation of the annual in-store fundraising campaign for Children’s Miracle Network and Opération Enfant Soleil, a donation of $290,000 is being offered.

These measures are in addition to Lowe’s Canada’s existing charitable commitments and the steps already being taken for the protection of employees, including enhanced sanitation practices, marketing materials encouraging online shopping and the installation of protective shields at checkout stations.

DID YOU KNOW…

… that back issues of our sister publication, Hardlines Dealer News, are now available at no charge? Yup, now in its third year of publication, this monthly newsletter has become a valuable tool for dealers and managers across the country. Click here to start browsing now!

RETAILER NEWS

BRENTWOOD, Tenn. — Tractor Supply Co. announced it has expanded its partnership with the delivery service Roadie to offer same-day delivery from all of Tractor Supply’s 1,863 U.S. locations. The initial partnership with Roadie was launched three years ago. With the outbreak of COVID-19 and the ensuing surge in demand for home delivery, the two firms worked to accelerate the partnership.

NATIONAL REPORT — As the number of retail staff opting to stay home increases, retailers are looking for ways to keep people on the store floor. Loblaw has asked head office people, including executives, to help out in stores as staffing becomes more difficult. According to the National Post, about 400 corporate staff are now contributing by doing shifts at the stores. And at Walmart Canada, dozens of head-office staff have stepped up to devote time to serving customers in its stores.

SUPPLIER NEWS

MONTREAL — Richelieu Hardware reported Q1 sales of $249.4 million, up 10.2 percent from $226.4 million in Q1 of 2019. In the Canadian market, sales of $156.7 million represented a nine percent increase from a year prior. Net earnings rose to $0.21 per share, an increase of 23.5 percent from $0.17 per share for the comparable quarter in fiscal 2019. During the quarter, Richelieu completed three acquisitions. Decotec and Mibro, acquired in December, will bolster the company’s presence in the Greater Toronto Area, while the acquisition of O’Harco, finalized in early February, will bring Richelieu into new markets in Nebraska, Iowa and South Dakota. Together, these three businesses represent about $60 million in annual sales.

GUANGZHOU, China — The China Import and Export Fair (Canton Fair) will launch its 127th edition online in mid-June in response to the COVID-19 pandemic. The virtual event will create an international platform for products in 16 export categories, including home appliances, consumer goods, textiles, medical and health care.

ECONOMIC INDICATORS

Sales of existing homes in Canada fell by 14.3 percent in March compared to February. The economic turmoil surrounding the COVID-19 pandemic caused both buyers and sellers to increasingly retreat to the sidelines over the second half of the month. Actual (not seasonally adjusted) sales activity was still running 7.8 percent above a quiet March in 2019, although that was a considerable slowdown compared to the year-over-year gain of almost 30 percent recorded in February. (Canadian Real Estate Association)

More than one million people stopped working in March, a drop of 5.3 percent. The employment rate fell 3.3 percentage points to 58.5 percent, the lowest rate since 1997. The unemployment rate increased by 2.2 percentage points to 7.8 percent, the largest one-month increase since comparable data became available in 1976. (StatCan)

U.S. retail and food services sales for March were $483.1 billion, a decrease of 8.7 percent from the previous month. (U.S. Commerce Dept.)

NOTED

The mayor of Orange County, Fla., has declared that World Wrestling Entertainment (WWE) is an “essential business.” The ruling will allow the company to resume live tapings of its show in Florida, without audiences, during the COVID-19 outbreak.

OVERHEARD…

“Now, more than ever before, our customers are depending on us to get them their essential goods in a timely manner so they can continue to take care of their families, homes, land, pets and animals.”
—John Ordus, EVP and chief stores officer at Tractor Supply, a chain of farm and hardware stores in the U.S. The company has expanded same-day delivery to all 1,863 locations.

BOUCHERVILLE, Que. — In the midst of crisis, our ability to look out for each other is what helps us get through. And at this point in the rise of the COVID-19 pandemic, the focus of dealers and store managers on the well-being of their workers has become a priority.

That is something Pascal Houle, CEO of BMR Group, hears repeatedly as he talks with his group’s member-dealers.

“Naturally, BMR dealers are concerned about the performance of their business, which will inevitably be affected by this crisis,” he admits. “But what I am hearing from them the most is that their main concern is the health of their employees and their customers. They are committed to continuing to serve customers, who need them, but in a way that is safe for everyone. And I must say that I am very impressed with their dedication and creativity in achieving that.”

In a world where conditions change daily, getting a read on how the COVID-19 crisis is currently impacting the industry means chasing a moving target. With an eye to a time when some sense of normalcy returns, Houle is certain the impact will be lasting.

“The strength of the Canadian economy and the construction industry throughout the country are two key elements that will define the extent of the impacts on the industry, both short and long term,” he says.

He also expects some outcomes that could have a direct benefit for bricks-and-mortar retailers who find themselves filling orders online and by phone. “The current surge in e-commerce is unlikely to decline once this crisis is over and will certainly create ample opportunities for us.”

Another positive spinoff could be a boost for local dealers. “Buying local will also take on a whole new meaning for consumers, who will doubtless want to encourage local businesses, benefitting the Canadian economy as a whole.”

TORBSA general manager: Some opportunities for commercial dealers

BOLTON, Ont. — The impact of the COVID-19 crisis is being felt by dealers of all stripes, including outlets that supply large contractors and big commercial contracts. Those kinds of dealers make up the bulk of the membership of the TORBSA buying group. General Manager Bob Holmes observes that most of his dealers are faring pretty well.

Holmes (shown here, pre-pandemic, with board president Greg Drouillard of Target Building Materials) admits there’s “a lot of uncertainty out there” and more changes in coming days and weeks could have a negative impact. But for now, his members who are tied in with infrastructure projects, ongoing condo construction or even residential builds that have the foundations poured will continue to do business.

He anticipates some layoffs among his members, “but the guys are still busy serving customers,” he says. He worries as well about possible product shortages if infrastructure gets interrupted. “There could be some tightness of supply, but the market has also seen a slowdown, so there’s not been as big an impact. But it could happen down the road,” he warns.

Unless the housing and construction markets slow down quickly, Holmes believes there’s enough work out there to carry many of his dealers along for the near future. “I think most businesses are okay for the next couple of months.”

He adds that the role of buying groups is being put to the test under the current situation. The ability to get dealers together to share ideas and best practices in face-to-face situations has been severely undermined by the necessities of physical distancing. “As far as buying groups go, we’ve always prided ourselves on communication—and this has really hampered that,” he says.

TORBSA members have managed to overcome this to some extent. A recent directors’ meeting was conducted by telephone, while the group’s annual general meeting will be held online. “At least it allows people to hear what other people are thinking.”

That sharing of ideas is more important than ever, Holmes notes. “These days, you have to be open to share information.”

SPECIAL REPORT — With business activity restricted during the COVID-19 crisis, many provinces and U.S. states have made exceptions for at least some home improvement and building trades businesses. From plumbing to electrical, hardware and home improvement dealers offer a variety of supplies that homeowners may need urgently.

As Serge Blain, owner of Montreal’s RONA Beaubien Hardware put it, “if your fuse pops or toilet leaks, you have to fix them.”

In some cases, the increased traffic, at a time when we’re all trying to stay apart, has generated backlash. South of the border, Lowe’s Cos. took heat for going ahead with its Spring Black Friday sale, which attracted shoppers to stores with discounts on items from barbecues to mailboxes. Lowe’s promotions underscored that “affordability matters now more than ever,” but a store employee in Indiana who fell ill with COVID-19-like symptoms questioned the wisdom of drawing in crowds.

In Michigan, the state attorney general had to twice reprimand big box chain Menards for promotions deemed to undermine physical-distancing protocols.

The message is clear: even at an essential business, not all business activities are essential.

Retailers in Canada are taking action to prevent similar mishaps. Home Depot Canada made the decision in mid-March to cancel all its major spring promotions and put flyers on hold. Around the same time, Canac also pulled its popular promotional circulars. “Once we put something in the flyer, it’s hell!”, Canac President Jean Laberge explained to La Presse. “It creates monster traffic [in stores].” Lowe’s Canada has also eliminated all flyers until early May.

Meanwhile, one state and some local governments in the U.S. have gone a step further. Last week, Vermont barred big boxes from selling non-essential items in store altogether. Retailers like Walmart and Costco are required to pull those items from shelves or cordon off aisles to prevent customer access. Across the border in Quebec, the opposition Parti Québécois is calling on Premier François Legault to follow suit and order the closure of non-essential departments within big boxes.

Under the PQ’s proposal, only food, hardware and pharmacy departments would remain open, with other offerings available online. The party cited concerns about both store traffic in big boxes and their impact on smaller, locally owned businesses.

NATIONAL REPORT — The status of essential service has been a blessing for dealers nationwide. But the pressure that is putting on retail workers who must face the public has become something of a curse.

At Osoyoos Home Hardware in Osoyoos, B.C., co-owner Frances Sologuk notes that throughout the COVID-19 crisis, the store remains open given its status as an essential service, but the toughest thing for her has been providing support for her employees. “The stress on my staff is probably one of the hardest things to witness,” she notes.

Amanda Fancy, co-owner of a Home Hardware and Furniture in Bridgewater, N.S., is likewise wrestling with the impact the pandemic is having on her employees, many of whom have opted to stay home and collect Employment Insurance. “We’re struggling to find staff,” she says. “I’ve always had an appreciation for our staff, but that appreciation level has gone up 150 percent for those who have stayed on.”

Sologuk at Osoyoos Home Hardware says her employees are likewise working beyond the norm, servicing customers in new and innovative ways. “We have taken all precautions, like free delivery with no minimums—even if you need a Rogers Chocolates fix. We have the aisles cordoned off and we are doing the shopping for you,” to prevent customers wandering around the store. 

Most recently, the store has ordered wireless terminals from Moneris, “which we should have probably had a long time ago, especially for customers with disabilities,” says Sologuk. “This way we can hand customers the terminal or bring it to their car —kind of like in the restaurants.” She says the new system will make curbside pickups easier.

For Fancy at Gow’s, she has been personally working the checkout, even as she worries about the larger issues of financing the business through the downturn in sales, which have tumbled by 25 percent during the crisis. Exactly a year ago, she moved her business into a larger, 60,000-square-foot store with furniture and appliances. And large-ticket items like those aren’t on the top of most people’s lists right now.

“Certainly, this will change the way we do business. We’ll be leaner and meaner,” she says ruefully. “And we’ll pay it forward to the customers and staff who got us through this. But we’ll prepare a long-term plan as well.”

The Wooster Brush Company’s board of directors has elected Ben Maibach to succeed Bill Fagert as president, effective May 1. Since joining Wooster Brush in 2014, Maibech has served as vice president of national accounts, held a seat on the company’s board of directors and most recently led the team overseeing Wooster’s rebranding efforts. Fagert, who has been president since 2010, will become vice chairman of the board of directors.

DID YOU KNOW…

… that back issues of our sister publication, Hardlines Dealer News, are now available at no charge? Yup, now in its third year of publication, this monthly e-newsletter has become a valuable tool for dealers and managers across the country. Click here to start browsing now!

RETAILER NEWS

VAUGHAN, Ont. — TIMBER MART has announced the addition of Montreal-based RenoRun Inc. to the buying group. RenoRun is a building material delivery business that offers residential contractors and builders 20,000 building material products through its mobile app. It delivers to job sites on demand or in advance throughout the Montreal, Toronto and Austin, Texas areas. Launched in 2017, the company employs more than 100 staff members, including 60 at the Montreal headquarters.

BURLINGTON, Ont. — IKEA Canada will provide approximately $2.3 million in home furnishings to support vulnerable communities impacted by the COVID-19 pandemic. It will also support those leading COVID-19 relief efforts by making contributions to medical services and facilities, including donating 230,000 N95 masks to local hospitals and healthcare centres.

TORONTO — Canadian Tire Corp. has launched a $5 million Canadian Tire COVID-19 Response Fund to help Canadian communities. This fund consists of two donations of $1 million each to the Canadian Red Cross and United Way/Centraide Canada, as well as up to $3 million in personal protective equipment (PPE) and essential products from across Canadian Tire’s family of companies.  

SUPPLIER NEWS

TORONTO — Wolf Gugler Executive Search is offering one-on-one and group outplacement services to allow employers who have laid off personnel due to COVID-19 to assist in their new job searches. The firm will meet with professionals through virtual means such as videoconference and email. (You can reach Wolf directly by emailing him; or check out his website here.)

WASHINGTON — 3M Co. says it has reached an agreement with the U.S. federal government to continue supplying Canada and other countries with N95 masks. The Minnesota-based conglomerate reacted with dismay last week when U.S. President Donald Trump invoked an emergency statute to divert goods bound for export to the domestic market. Since then, however, 3M and the White House “worked together to ensure that this plan does not create further humanitarian implications for countries currently fighting the COVID-19 outbreak,” the company announced.

RICHMOND HILL, Ont. — Liteline Corp., a family-owned lighting manufacturer for architectural, commercial, industrial and residential spaces, has named Lande Associates Inc. to represent its lines across southwestern Ontario. 

QUEBEC CITY — The Quebec government has unveiled a new website, Le Panier bleu (Blue Basket) to facilitate online orders to Quebec businesses. Though not transactional, the site serves as a searchable clearinghouse directing shoppers to Quebec’s online merchants.

ECONOMIC INDICATORS

March’s housing starts declined by 7.3 percent to a seasonally adjusted annual rate of 195,174 units, from 210,574 units in February. The SAAR of urban starts decreased by the same percentage to 182,553 units. Multiple urban starts decreased by 13.4 percent to 124,073 units in March while single-detached urban starts increased by 8.8 percent to 58,480 units. Rural starts were estimated at a seasonally adjusted annual rate of 12,621 units. (CMHC)

NOTED

To help independent retailers who are dealing with uncertainty during the ongoing public health emergency, the North American Retail Hardware Association (NRHA) is waiving membership fees for the months of April and May. Retailers can now access the NRHA’s 10 online training courses at no cost. Click here for an overview of the courses and here to register for free.

OVERHEARD…

“The only problem is that people don’t understand just how hard this is on the retail workers who have been trained to give good customer service and are now working in this ‘twilight zone’ of unprecedented times.”
—Frances Sologuk, co-owner of Osoyoos Home Hardware in Osoyoos, B.C., reflecting on the impact of the current COVID-19 crisis on her staff.

SPECIAL REPORT — As dealers cope with how to manage their customers and staff in their local markets, retail leaders across the country are coping with the concerns of those dealers in a more generalized way.

From the outset, TIMBER MART President and CEO Bernie Owens has stressed the importance of maintaining the safety of staff. That includes considering how stores manage fewer hours or less traffic. But there’s more that must be taken into consideration. Decreasing hours for everyone, rather than laying off some workers so they can apply for employment insurance, could make more sense than decreasing the income of the entire team. Their overall well-being as they cope with isolation, reduced family income and kids stuck at home must be considered, Owens stresses.

Steve Buckle, CEO of the Sexton family of companies, which includes Winnipeg-based Sexton Group, notes that dealers are now facing issues that go beyond sanitation in their stores. The logistics of maintaining every aspect of a safe work environment are increasingly difficult. “The challenge becomes, how do you keep people safe,” Buckle notes. That process may not be overwhelming on its own, but it does require companies to implement a lot of smaller details “to live up to a commitment to safety.”

“A big challenge is that the dealers have to manage their trucks,” he says by way of example. “Managing the safety of staff in that kind of scenario is tough and raises all kinds of questions about best practices. How do you deliver to occupied homes?”

That concern, at least, is based on a renovation market that keeps going. But his commercial dealers, he notes, face the possibility that new construction will dry up as workers refuse to show up for work and governments shut down major projects. He says many of these dealers are still busy, as everyone works to get projects completed. “But the volume is bigger than the market would dictate.” He expects to see this drop off over the next several days.

Owens at TIMBER MART agrees. “Some job sites are starting to close down now,” he observes. “Workers are getting reluctant to show up on the site, and there are some supply issues.” He has also seen commercial dealers, especially in Ontario, face slowdowns, while the drop-off in Quebec has been even more dramatic after the provincial government there put a halt to some major construction projects.

Owens remains concerned about the financial health of independent dealers as the crisis drags on. “I’m really concerned about the industry over the long term.”

When it comes to the home reno market, Buckle remains hopeful, especially as people stuck at home begin to invest more in their living spaces. “I think there’s a renovation opportunity.”

But overall, he admits the country faces some tough economic challenges. “How deep and how long are we heading into a down cycle? And it’s pretty clear that this is happening. How do we ramp up to deal with that?”

Buckle is optimistic about the situation longer term, however. He anticipates that business will pick up again by as early as June, especially given the positive signs in the economy before the COVID-19 pandemic struck. “Aside from Alberta, things were looking pretty good ahead of this,” he says, noting that a pent-up demand will need to be met.

“I should say the second half of this year is going to be pretty good, because the first half will have been down so much.”

As some stores stay busy, big boxes ramp up COVID-19 safety measures

TORONTO — Canadians are staying home, except when they have to buy groceries or walk the dog. Now, add to that list the need to buy home improvement products.

Isolation and extra time have created the opportunity for many consumers to fix up their homes. And that has resulted in busy parking lots and steady store traffic at Canada’s large-format home improvement retailers.

But that traffic can put customers and staff at risk. Both Home Depot Canada and Lowe’s Canada have taken measures to increase sanitation with increased cleaning of surfaces and workspaces. They are also working to maintain physical distancing among customers.

Home Depot Canada is encouraging customers to limit store visits when possible. When they do show up at a store, customers find that a limit has been put on the number of people allowed inside at a time. Physical distancing signage with stripes marking the floor area are now in the stores to help everyone follow best practices.

As the situation continues to change from day to day, Home Depot Canada has been adjusting its policies accordingly. Most recently it has added these new measures:

• Curbside pick-up: Online orders made for in-store pick up will now be available for collection in designated parking spots.
• Van and large equipment rentals: Until further notice, Home Depot Canada is no longer renting vehicles or large equipment.
• Store checkout: Plexiglass screens are being installed in all stores to help with physical distancing.

In addition, associates who are 65 or older have been given more paid time off. Seniors employed on a full-time hourly basis received another 80 hours of paid time off in addition to the 80 already given to all full-time workers. Part-time hourly associates who are 65 or older received an additional 40 hours of paid time off, bringing up their total to 80 hours.

Like its competitor, Lowe’s Canada has made the health and safety of its employees—and customers—a priority. Its corporate stores, under the Lowe’s, RONA and Reno-Depot banners, have enhanced cleaning efforts and issued clear physical distancing guidelines. The stores have also implemented measures to ensure that cashiers and front-end teams are regularly cleaning their work areas and registers after each customer interaction.

Lowe’s in the U.S. has further committed $25 million to support the needs of its associates, customers and communities. This includes a $10 million donation in essential protective products to medical professionals on the frontlines of the health crisis. Nearly $4.5 million has been marked for Lowe’s stores in the U.S. and Canada to donate products in their communities.

QUEBEC CITY ― The independent retail chain Canac recently held the grand opening of its 30th store. It’s located in Prévost, Que.

According to Jean Laberge, president of Canac, this latest store is modelled after the chain’s Notre-Dame-des-Prairies store, which opened in May 2019. That location represented an investment of $8 million and employs 90 people. It was also Canac’s first store in the Lanaudière region of Quebec.

The main structure of the Notre-Dame-des-Prairies store is 42,000 square feet in size, with 28,000 square feet of selling space. Another building, which serves as the warehouse and is unheated, is 31,500 square feet in size. Laberge notes that the latest store, following the mould of its predecessors, represents no major changes in concept or merchandising.

However, that retail formula has been working well for Canac. The company has been expanding aggressively in recent years, adding about one store per year, and Laberge expects this kind of growth to continue. Construction is slated to begin on a new location on Montreal’s south shore in La Prairie, Que., he says. That store will be at the corner of Autoroute 30 and Route 104, between Candiac and Brossard.

Last fall, Canac acquired a one-million-square-foot property adjacent to its Drummondville distribution centre. According to Laberge, construction will begin there this fall on a large warehouse to handle distribution of the company’s building materials, including plywood, foam and all wood products.

The expansion of Canac’s back-end support keeps in step with the company’s expansion of its retail footprint. The chain has even made overtures to entering the Ontario market. In October 2018 Canac secured property in the eastern Ontario town of Hawkesbury. Laberge expects construction there to begin in 2021.

OTTAWA ― Figures from Statistics Canada indicate that total investment in building construction for the year increased by 3.4 percent to $181.8 billion. Investment increased in six provinces, with substantial gains in Quebec (+10.7 percent to $38.6 billion), British Columbia (+10.3 percent to $32.6 billion) and Ontario (+1.8 percent to $71.7 billion).

Prince Edward Island reported the highest percentage growth in 2019, increasing 50.9 percent to $851.7 million. The rising population contributed to a significant increase in the residential sector, in both multi-unit investment (+162.7 percent to $199.3 million) and single-unit investment (+34.8 percent to $475.0 million).

Construction spending in Alberta fell in 2019, dropping $2.5 billion from 2018. Declines in the residential sector constituted the majority of this, down $2.1 billion to $11.7 billion, while non-residential investment declined by $400.6 million to $8.9 billion.
Nationally, investment in residential construction increased 2.3 percent to $123.9 billion in 2019. Multi-unit investment continued to grow, up 11.8 percent to $62.6 billion, while single-unit investment declined, down 5.9 percent to $61.3 billion.

Increases in Ontario, British Columbia and Quebec led investment in multi-unit to surpass single-unit construction for the first time on an annual basis. Increased investment in apartments (+12.7 percent to $50.2 billion) and row homes (+9.8 percent to $8.2 billion), along with decreased investment in single homes (-6.5 percent to $57.5 billion), broadly reflected a national shift toward the intensification of urban areas.

Dan Giansante is the new director of marketing, R&D and regulatory for Rust-Oleum Canada. He was most recently director, marketing for ROCKWOOL North America.

James Feere has joined L.S. Starrett as the new Canadian sales manager. He comes over from Karcher North America, where he was director of sales, Canada.

DID YOU KNOW…

… that we’ve made the Hardlines newsletter free to everyone during this crisis? And any Faithful Subscriber who is coming up for renewal will have their subscription extended by one month. If you know anyone who would benefit from our info each week, please pass this link along to them. We have to take care of each other through these difficult times!

RETAILER NEWS

MISSISSAUGA, Ont. ― Calgary’s Remuda Building Ltd. is the newest independent retailer to join the Castle Building Centres group. Remuda was founded in 2006 by owner and CEO Steve Schouten, who had been looking to expand his product offerings. “Our goal has always been to create a sustainable business that will be around for years to come, and one that our local community can trust,” he said. “Castle was the buying group that best shared our vision of growth and longevity.”

QUEBEC CITY ― Most Quebec businesses, including hardware and grocery stores, will close on Sundays during the month of April so that strained workers can have a break, Premier François Legault has announced. Gas stations, pharmacies and convenience stores will remain open on Sundays, while restaurants will continue to offer take-out and delivery services.

CHICAGO — True Value Co. is converting parts of its Cary, Ill., paint manufacturing facility to handle production of hand sanitizer to help combat the COVID-19 pandemic. After registering with the U.S. Food and Drug Administration, the company will produce hand sanitizer alongside other essential products like hand soap, degreasing cleanser and all-purpose cleaners. The first several thousand gallons will be donated to True Value hardware stores across the U.S. for use by its employees while serving customers. The product is scheduled to be shipped to stores in early to mid-April.

MONTREAL ― Dollarama’s Q4 sales increased by 0.5 percent to $1.07 billion, while operating income grew 1.4 percent to $266.1 million. Net earnings increased by 7.5 percent to $0.57 from $0.53 a year ago. For the fiscal year, sales rose by 6.7 percent to $3.8 billion with operating income up 2.7 percent to $868.1 million. Comparable store sales rose two percent for the quarter and 4.3 percent for the year.

QUEBEC CITY ― Canac is responding to concerns about a shortage of medical supplies with a donation of $90,000 worth of equipment to health care institutions. A major benefactor of the gift is Centre hospitalier universitaire de Québec, a network of three teaching hospitals linked with Laval University in Quebec City.

SUPPLIER NEWS

MONTREAL — The management of Richelieu Hardware will hold its annual general meeting as scheduled on April 9 at 10:30 a.m. However, in accordance with government health guidelines and in light of the need for physical distancing in respect of the COVID-19 virus, the company has asked its shareholders not to attend in person, but to participate by voting by proxy in advance of the meeting.

ECONOMIC INDICATORS

Total construction spending in the U.S. for February reached $1,366.7 billion, 1.3 percent below January’s level of $1,384.5 billion. (U.S. Commercial Dept.)

NOTED

Businesses and non-profit groups whose revenues fall by 30 percent or more as a result of COVID-19 will qualify for a wage subsidy of 75 percent, Prime Minister Justin Trudeau has announced. Eligibility does not depend on an organization’s number of employees. The subsidy will cover up to 75 percent of salaries on the first $58,700, a weekly payment of up to $847.

OVERHEARD…

“We can only succeed working as a team.”
—Bernie Owens, president and CEO of TIMBER MART, who has been busy fielding a variety of concerns from his members in recent days.

“To really help is to recognize that we’re all in the same boat, that we all have a role to play. I hope this gesture will inspire others to put their shoulders to the wheel in these exceptional times.”
— Canac President Jean Laberge, on his company’s donation to support health care institutions working on the front lines of the battle to combat the COVID-19 pandemic.

NATIONAL REPORT — Across the country, dealers are responding to the COVID-19 pandemic by working smarter to preserve sales and ensure the health of both their staff and customers.

In Osoyoos, B.C., Carla Jorgens, manager of Osoyoos Home Hardware, explains how her store has adapted. Tape has been put on the floors to mark out six-foot distances and the aisles down the side of the store have been cordoned off. Customers can come in and stand in the main aisle, “then our staff members go and grab the products for them. It’s awful because we can’t deliver the kind of customer service we’d like.”

The store has also added a free delivery service during specific times of the day. “Lots of people are taking us up on this.”

The store usually benefits from increased business during spring break, but that didn’t materialize this year. “I’ve been looking at our sales and it’s not even worth it for us to stay open,” she admits. “But we’re remaining open as a service to the community.”

Severn TIMBER MART in Coldwater, Ont., has taken more extreme steps. Heather Mallard Houle, co-owner, has closed the retail area of her store to walk-in customers. An intercom has been set up in front of the store, along with a payment terminal. Customers are instructed give their orders by phone or text. They are then instructed to drive around to the back of the store, where they must wait at a stop sign while their order is loaded into their vehicle for them.

At Matériaux Lavoie in Gatineau, Que., General Manager Chantal St-Pierre has seen a hike of about 25 percent in paint sales during the COVID-19 crisis. Customers are steered around the store by staff at a safe distance, using gloves to handle merchandise and expedite their visit as much as possible.

At Dwight Lumber, a Sexton dealer in Dwight, Ont., co-owner Debbie Monson says the store is still letting people inside, “but we strongly suggest to anyone with compromised health that they stay outside and we’ll come out to the parking lot.” Like Jorgens in Osoyoos, she has put tape on the floors, while barriers have been set up between the cashiers and customers.

The store does most of its business with contractors. Monson says her pro customers continue to place orders, with sales of lumber staying strong. “And in the store, most of what we are selling now is cleaning products and disinfectants.”

At Star Building Supplies in Winnipeg, management has taken measures to protect staff and reassure customers. Now, deliveries to residential jobsites, which were formerly taken right into the house, are being left in the garage or at the curb.

Canac stores are operating at reduced hours but President Jean Laberge is seeking to avoid closures for the time being, Le Journal de Québec reports, to keep his staff off unemployment. Both the safety and the financial security of Canac’s employees remain his top concern, he said. In the meantime, Canac stores are limiting the number of customers admitted at a time and sticking to debit and credit payments.

Atlantic association recognizes industry achievement at gala

HALIFAX — The Atlantic Building Supply Dealers Association (ABSDA) capped off day one of its 2020 buying show with its annual gala dinner earlier this month. The sold-out event brought together nearly 650 show delegates (before the impact of the COVID-19 crisis had fully hit) to celebrate some of the association’s achievements of the past year.

It also included the presentation of awards recognizing individuals who’ve gone above and beyond supporting the association and the entire building supply industry.

Three new awards were introduced at this year’s event: Salesperson of the Year, presented to Kevin Arseneau of Building Products of Canada Corp; Young Leader of the Year, which was awarded to Duane MacDonald of Callbecks Home Hardware Building Centre; and Pleasant Building Supplies was recognized as Retailer of the Year.

Additionally, two Lifetime Membership Awards were presented along with the 2020 Industry Achievement Award. Lifetime Membership awards were given to Harold Mills from Nova Scotia Building Supplies and Gary Sullivan from PPG Architectural Coatings. And the 2020 Industry Achievement Award was presented to Vince Poirier of CertainTeed Canada.

After dinner, entertainment was provided by legendary Canadian rockers April Wine.

“We keep it light, try not to have too stuffy of a night,” says ABSDA President Denis Melanson. “People loved the entertainment. April Wine put on a good show and people had fun.”

RED DEER, Alta. — Peavey Industries is working to be able to service the national network of Ace dealers following the acquisition of the license for Ace Hardware in Canada from Lowe’s Canada.

The deal transfers to Peavey the agreements with 104 independent Ace Hardware stores in Canada, which have been supplied through the wholesale business of RONA. Peavey already owns 92 farm and hardware stores from Ontario to British Columbia.

While that transfer will take place over a six-month period, the buying function for Ace has already been moved to Peavey’s head offices in Red Deer, says Peavey CEO Doug Anderson. Peavey has put product specialists in place who are focused on the Ace lines, but general category management remains unchanged, he adds. Anderson expects to see some line changes as supply shifts from Lowe’s Canada’s DCs to Peavey’s and his team gets more commitments for orders from Ace dealers in coming months.

Product will be supplied to dealers through either the Red Deer distribution centre or the one in London, Ont. That location is the former head office of TSC Stores, which Peavey acquired outright at the end of 2017.

One thing many Ace dealers will need that Peavey doesn’t have yet is lumber and building materials. Anderson says Lowe’s Canada will continue to supply those lines over the next 24 to 36 months. “We need systems and agreements in place, so this gives us time to build out those systems and agreements to support the dealers. It gives us some breathing room.”

Peavey has also managed to secure Ace’s dealer support team. Guy Lichter, formerly director of dealer conversion for Ace at Lowe’s Canada, has moved over to Peavey as national sales director for Ace. He brings with him a team of eight territory support managers. However, says Anderson, “Our focus for the next six months to a year is the standardization of the existing Ace network.”

He adds that Peavey is now closely aligned with Ace International and will leverage Ace’s know-how and systems.

TORONTO ― Despite concerns in the early days of the coronavirus’s spread worldwide, hundreds of people, including marketers, online content developers and IT managers, gathered in Toronto on March 10 for Dx3 Canada.

The purpose of the event was to present expert insights from leaders who shape the retail industry. Attendees had the opportunity to hear from some of the most innovative retail professionals in North America, along with the tech experts who help retailers become more effective.

On day one, keynote speakers and panel discussions were held at two stages simultaneously throughout the day. The stages flanked a large trade show area for sponsors to share products and services.

One session even featured digital marketing managers from two of Canada’s biggest home improvement retailers on the stage together.

Robert Allan of Lowe’s Canada (centre, left) and Andrew Go of Home Depot Canada were joined by Erika DeHaas of Sobey’s (far left) and Tara Wickwire of National PR to talk about how a retailer can rebuild trust with customers by telling an effective, and authentic, brand story.

In another session, representatives from other retailers talked about the challenges of creating an effective environment for customers. Amina Mattern, head of strategy for Loblaw Media, talked about one effort that failed, even though the retailer had worked hard to listen to shoppers. “Customers didn’t like self-checkout. It turns out they liked the in-store experience.”

To be successful, a retailer has to stay in sync with the needs and expectations of customers, Mattern noted.

Unfortunately, the conference and trade show at the Metro Toronto Convention Centre was cut short the morning of day two. This followed a report in the Globe and Mail that a case of coronavirus had emerged from a large mining conference held at the same location a week earlier.

Cornerstone Building Brands has announced the appointment of Richard Hill as VP of marketing–Canada. Hill was most recently director of marketing at Ace Canada. Prior to that, he helped lead the marketing efforts for Home Hardware Stores Ltd. with partner Morris Saffer. Cornerstone manufactures windows, vinyl siding, insulated metal panels, metal roofing and wall systems under such brands as Ply Gem and North Star Windows.

DID YOU KNOW…

… that our mandate at Hardlines is to keep the home improvement industry connected? In light of the recent developments in relation to the spread of COVID-19, we’re committed to making the Hardlines newsletter free to everyone during this crisis. If you, as one of our Faithful Subscribers, know someone who would benefit from our info each week, please pass this link along to them. We have to take care of each other through these difficult times!

RETAILER NEWS

ST. JACOBS, Ont. ― Home Hardware Stores Ltd. says it’s taking special measures to ensure continued service during the COVID-19 crisis. Team members are working diligently to replenish inventory, putting top priority on delivering essential goods to customers. Many stores are offering specialized services, including customized in-store hours, online orders and deliveries for customers at home. All company events have been cancelled until further notice, including the company’s Spring Market, which is being retooled as a Virtual Online Market.

MISSISSAUGA, Ont. ― Niagara Building Centre is the newest independent LBM retailer to join the Castle Building Centres group. Located in Fonthill, Ont., the brand-new Castle location will be a full-service home improvement store with a lumberyard. Partners Chris Baxter, Kevin Bolibruck and Gary Bolibruck were looking for a well-supported, member-centered relationship. Construction is underway with the targeted grand opening set for early September.

BOUCHERVILLE, Que. — The owners of Vermilion RONA in Vermilion, Alta., are preparing to open a second store. James and Patrick Willis, the father-and-son team who own the business, will hold an opening in early April of their new 3,000-square-foot store in Goodsoil, Sask. The latest location will create eight new jobs.

MOORESVILLE, N.C. — Lowe’s Cos. is refinancing debt with the sale of a portfolio of notes worth about $3.95 billion. The notes were sold at rates ranging from four percent to 5.125 percent. The notes come due in 2050. Lowe’s plans to use the net proceeds from the sale to repay the principal. Any remaining proceeds will be used for general corporate purposes, which may include the repayment of other indebtedness.

SUPPLIER NEWS

MINNEAPOLIS ― 3M and Ford will partner to manufacture air-purifying respirators for health care facilities. As the Big Three auto makers seek to revive their businesses during the coronavirus outbreak, Ford is “going into our parts bin to see what can be done” to help 3M make its hooded respirators, Ford Executive Chairman Bill Ford told the Today show. 3M is facing high demand for its powered air-purifying respirators during the pandemic.

VANCOUVER — West Fraser Timber is taking steps in response to the continuing COVID-19 pandemic. Starting today, lumber production at all British Columbia sawmills is being curtailed for one week. This will result in the elimination of an additional 24 million board feet of production for the week in addition to previously announced curtailments. In addition, plywood production at West Fraser’s Alberta plywood and Slave Lake veneer facilities will be temporarily suspended until at least April 6.

ECONOMIC INDICATORS

Sales of existing homes in the U.S. rose by 6.5 percent in February. The seasonally adjusted annual rate of 5.77 million was the strongest increase since February 2007 and was 7.2 percent above last February’s rate. Single-family home sales rose from a SAAR of 4.82 million in January to 5.17 million in February, 7.3 percent above the rate a year prior. (National Association of Retailers)

OVERHEARD…

“We have a vacation home in Goodsoil and thoroughly enjoy spending time there. We had been looking to expand our business for some time, so when we heard that there was an opportunity in the area, the decision was easy to make.”
—Patrick Willis, who, with his father James Willis, is preparing for the grand opening next month of their second RONA store. 

NATIONAL REPORT — Both The Home Depot Canada and Canadian Tire shortened store hours this past weekend, while expanding their paid time-off policies to protect workers’ incomes.

These are excellent leadership moves by two of the country’s leading hardlines retailers. Unfortunately, these kinds of options are not typically available to most smaller dealers. Nevertheless, across the country, stores are coping with the pandemic in their own ways to accommodate the needs of both their customers and their employees.

Mark Westrum, a partner at Westrum Lumber, a TIMBER MART dealer in Roleau, Sask., posted on Facebook one morning last week the simple message, “The plain and simple of it is … We Are Open.” Westrum admits the store is somewhat less busy than usual, as many customers are practising social distancing. But a lot of his customers, who are mainly contractors, are sending in their orders by text, email and phone, and making payments over the phone.

At Star Building Supplies, an ILDC member in Winnipeg, Vice President Mark Kennedy also finds that online options for customers are helping. Traffic is down slightly for the contractor-oriented dealer, but business remains strong with pro customers. “You can still do a lot of business over the phone and via email,” he notes.

In fact, more and more dealers that specialize in the back end are reporting that they are closing their retail areas to walk-in customers, but taking orders by phone, fax and email.

Serving a very different customer base in a well-heeled neighbourhood in Toronto’s west end, Joe Valenza at Baby Point Hardware says the crisis has not hurt business. With many people working from home in Toronto, Valenza sees them coming in with projects to undertake. “They’re home and they get bored.” He is seeing a lot of sales of paint, furnace filters and toilet-repair products.

In northern British Columbia, Marilyne Laferriere and her husband Sylvain serve the town of Mackenzie with their store, Ace Victory Building Centre. She reports that business has slowed somewhat. “We’re pretty isolated in Mackenzie so people are divided as to whether or not to self-isolate and we are considered an essential service so we’re still open. We are offering delivery to people’s homes for those self-isolating.” She adds that she and Sylvain have considered cutting hours but haven’t done so yet.

A building centre in the Lower Mainland is finding business is actually up slightly. However, one store employee, who asked not to be identified, reports that her store has lost staff due to concerns over COVID-19. Two of them felt uncomfortable taking the bus to work, while another has a compromised immune system and would be at risk if exposed to the virus.

And despite—or perhaps because of—shortened hours, the Home Depot store in Toronto’s Stockyards retail power centre remains busy. A visit there last week found the store filled with both DIYers and contractors. According to one employee, people continue to come in for home needs, everything from cleaning products to furnace filters.

The paint department was especially busy. “I figured I’d break quarantine for this,” said one woman who headed to the checkout with five cans of paint and an armful of roller trays. “It’s got to get done anyway.”

ABSDA Building Supply Expo sees good turnout to Halifax

HALIFAX —The 2020 Atlantic Building Supply Dealers Association (ABSDA) Building Supply Expo drew hundreds of Canadian dealers and vendors to Halifax earlier this month.

The show kicked off the evening of March 10 with an ice-breaker event at the Halifax Convention Centre, complete with entertainment from a live-band karaoke set-up. Dealers and vendors had a chance to network and enjoy themselves before the show began in earnest the next morning.

Dealers arrived bright and early, ready to buy. Attendance was good despite concerns and increased vigilance surrounding the spread of COVID-19, which the World Health Organization has officially named a pandemic. Many dealers and vendors took precautions such as avoiding shaking hands and maintaining a safe distance.

Representatives from many of the major banners—Home Hardware, Lowe’s Canada and RONA, Castle, BMR, TIMBER MART, Sexton Group and TORBSA—were in attendance to support their members.

A number of the banners, including Sexton, held meetings and receptions for their dealers in advance of the show. Tom Bell, VP of business development for Sexton Group, said he was very pleased with the results of day one for his group.

Despite a slow-down on the second day, most vendors were happy with the traffic and business they generated on and off the show floor. In fact, a number of them mentioned that the opportunity to interact with customers in a more casual, informal setting was one of the best things about a show like this.

ABSDA President Denis Melanson was pleased with the show’s success. Having engaged some members as ambassadors this year, the association also created a leadership team to promote the show and encourage industry peers to attend.

“We’re very happy. Participation was good and strong, both on the vendor side and dealer side, so everybody seems to be happy,” says Melanson. “We’re grateful that we have a really strong vendor community and dealer support for our show.”

While concern around the COVID-19 pandemic didn’t seem to prevent anyone from attending, it was one of the most-discussed topics on the show floor. Many correctly anticipated it may be the last show they’d attend for the foreseeable future: Home Hardware announced the cancellation of its Spring Market the day after the show wrapped, with the National Hardware Show’s postponement notice coming through just hours later.

Melanson acknowledged the seriousness of the situation, but says timing and the fact that the virus had only begun to reach Atlantic Canada worked in the show’s favour.

“We really didn’t hear about anybody not coming because of it,” says Melanson. “I think people need to pay attention to it, especially if they have compromised immune systems.

“But put it this way: I’m happy our show wasn’t in another two to three weeks.”

SPECIAL REPORT — Head offices are taking steps to protect their staff and looking for ways to direct their dealers.

At the BSIA of British Columbia, association President Thomas Foreman is concerned about how his members are reacting to the COVID-19 pandemic.

He says everyone has to take this situation seriously and avoid what he calls a “seat-of-the-pants approach.” He recommends any company, whether a dealer or a supplier, consider their options for working at home and how teams can effectively stay connected if that happens. Even routine tasks like getting cheques into the bank can become problematic. “Can your operation be set up to operate remotely?” he asks.

Bolton, Ontario-based TORBSA announced last week that it would close its office to all visitors. However, day-to-day duties in the office are continuing, to maintain support for the buying group’s member-dealers and their suppliers.

Other head offices are watching out for their members as well. Bernie Owens, president and CEO of TIMBER MART, shares his members’ concerns over the challenges they’re facing as stores try to cope with the pandemic. “Now is the time to get behind your solid clientele and service them,” he says. “But don’t extend more credit to customers who are already slow. The credit side is an imperative right now. Now is the time to chase your receivables.”

He says dealers must also make decisions that are best for their staff, such as whether to reduce store hours or staff. However, he adds, such measures could affect the incomes of families already impacted by the crisis. “In these extraordinary times, the health and well-being of our employees is of paramount importance. With any changes to the business—whether it’s hours or staffing—we must make them keeping in mind not just their health, but their well-being,” he says. “We can only succeed by working as a team.”

Foreman at the BSIA agrees that communication and collaboration are key. “I think it’s really important that dealers talk to their staff—not to instill fear, but to lead and assure them.”

SASKATOON — Weathering the downturn that persisted throughout much of the Prairies last year, Federated Co-operatives Ltd. reported a drop in sales to $325 million in 2019 from $359 million the year before.

According to the company’s annual report, challenges facing the co-op included poor weather that impacted the ag side of the business, economic conditions that pressured the home and building sector and stiff competition within the food sector.

However, despite this adversity, the Ag and Consumer Business Unit, of which the Home and Building Solutions Department (HABS) is a part, made improvements internally to minimize the economic impacts. The increased use of technology was one of them.

“Overall, 2019 was a challenging year, with a soft economy and lumber depreciation having a significant impact in the Prairie provinces,” says Cody Smith, director of HABS. “Specific to the Home and Building Solutions business, FCL and the Co-operative Retailing System has not been immune to these headwinds and it had an impact on our sales, reducing them to $325 million from $359 million.

“We continue to remain excited about our Home and Building Solutions’ long-term vision, investing in several key areas that make our business viable well into the future,” Smith says. “The first area was a new POS platform, from Mi9, that is currently being rolled out to local Co-op stores and is expected to be completed in 2021.”

The initiative is expected to make procurement easier and more secure through handheld mobile devices. “This transition is vital to us gathering more information and better utilizing our data for business decisions.”

Over the past year, the Home and Building Solutions business was restructured to increase its focus on lumber, Smith notes. “We continue to build value for the Co-op retailing system by adding lumber personnel to centrally procure lumber on behalf of the stores.”

That focus on building materials is also being reflected in the stores with new merchandising. “Another area of investment in 2019 was new LBM selling centres that fit an eight-foot bay, showcasing core building material categories that are typically difficult to display,” Smith adds.

Local Co-ops continue to grow their businesses and become more sophisticated. That includes amalgamations and the acquisition of Hanna Building Supplies by Westview Co-op in Olds, Alta., in early 2019. There are now 111 Co-op home centre stores in the West. 

Dany L’Heureux has joined OCTO Purchasing Group as director-Industrial Safety Segment. Most recently, he was with Stelpro as director of sales. Before that, he was category manager for tools at Lowe’s Canada.

Martin & Associates/Dover Finishing Products has added Tamirah Fairbarn as the company’s new regional rep in Ontario. Fairbarn comes over from Sherwin-Williams, where she spent 21-plus years in a variety of roles. She will call on independent paint, hardware, industrial (OEM) and regional chains.

DID YOU KNOW…

… that in light of the recent developments in relation to the spread of COVID-19, we’ve decided to make the Hardlines newsletter free to everyone for the next month? If you, as one of our Faithful Subscribers, know someone who would benefit from our info each week, please pass this link along to them. We have to take care of each other through these difficult times!

RETAILER NEWS

SASKATOON ― Federated Co-operatives Ltd. kicked off its annual Fuel Up to Win contest earlier this month. Now in its eighth year, the event gives Co-op members and customers in Western Canada an opportunity to win more than $8.5 million in prizes and discounts. Customers will receive a game ticket for each purchase from participating Co-op stores until April 29.

TORONTO ― The Home Depot Canada is temporarily adjusting store hours in response to COVID-19. Stores will now close daily at 6 p.m.; they typically close between 8 and 10 p.m., depending on the day. All hourly full-time associates will receive an additional 80 hours of paid sick or personal time, and part-time workers will receive an additional 40 hours. And if any staff are diagnosed with COVID-19, Home Depot Canada will continue to pay them during that time.

LONGUEUIL, Que. ― BMR Group has announced the addition of Ferronnerie Meilleur in Ferme-Neuve to its Quebec network. Father-and-son team Normand and Jérémie Lachaîne have owned the store since 2001.

TORONTO — Canadian Tire Corp. has reduced store hours at its Canadian Tire Retail stores and temporarily closed its other stores, Mark’s/L’Équipeur, SportChek, Atmosphere, Party City, Pro Hockey Life, National Sports and PartSource, until April 2. Operations will be reassessed at that time. During the closure period, full- and part-time employees will continue to be paid.

QUEBEC CITY ― Canac is sponsoring Raphael Lessard and Kyle Busch Motorsports in the NASCAR Gander RV & Outdoors Truck Series. Lessard’s Toyota Tundra bore Canac’s colours last week at Homestead-Miami Speedway. “Raphael is a young man from our region, and it is important for Canac to encourage the next generation of major sports in Quebec,” said Canac President Jean Laberge.

ATLANTA — Home Depot says it’s in the process of resetting its outdoor power equipment segment to showcase products by brand. The company will be highlighting EGO, Toro, Milwaukee, Ryobi, Dewalt and Makita assortments for the spring.

BURLINGTON, Ont. ― IKEA Canada has temporarily closed all stores nationwide, effective immediately. The retailer had already closed its dining facilities and children’s play areas.

SUPPLIER NEWS

NORWALK, Conn. ― The National Hardware Show has new dates after postponing its May time slot due to the COVID-19 outbreak. The 75th anniversary of the show will now take place from September 1 to 3, 2020, at the Las Vegas Convention Center. The third day of the event will be shortened, ending at 1 p.m. All amounts paid to attend the show in May will roll over for participation in the rescheduled event.

MONTREAL ― Intertape Polymer Group reported net income of $11.68 million for Q4, up from $10.61 million a year earlier. Total revenues came to $291.48 million, up from $287.65 million, largely on the strength of an acquisition in 2018. For the full fiscal year, IPG posted profits of $41.22 million, a decline from $46.64 million, due to higher interest and tax expenses. Revenues for the year rose 9.5 percent to $1.15 billion.

ECONOMIC INDICATORS

Sales of existing Canadian homes rose by 5.9 percent in February 2020, marking one of the larger month-over-month gains of the past decade. The increase was largely the result of a 15 percent jump in activity in the Greater Toronto Area (GTA). Actual (not seasonally adjusted) sales activity stood 26.9 percent above February 2019. (Canadian Real Estate Association)

U.S. housing starts fell by 1.5 percent in February to 1.6 million units. Single-family starts dropped to 1.01 million. Building permits for February declined by 5.5 percent to 1.46 million. (U.S. Census Bureau)

U.S. retail sales fell by 0.5 percent on a monthly basis in February. On a yearly basis, sales rose by 4.9 percent. The monthly decline almost negated January’s upwardly revised 0.6 percent gain. (U.S. Census Bureau)

SPECIAL REPORT — The hardware and home improvement industry, like the world at large, is coping with concerns around the coronavirus pandemic worldwide. A slew of cancellations and postponements of conferences and trade shows has occurred everywhere, and now both the Home Hardware Spring Market and the National Hardware Show have been added to that list.

Home Hardware Stores Limited announced last Friday the cancellation of its show, set to be held in the Waterloo region from April 5 to 7. Reed Exhibitions, which owns the National Hardware Show, postponed its event just hours later. It was to be held in Las Vegas from May 5 to 7.

“The health and safety of the Home Hardware community, our dealer-owners, team members, suppliers, business partners and customers is, and will always be, our number-one priority,” said Kevin Macnab, Home Hardware’s president and CEO.

“We understand that this is the first time in Home’s 56-year history that a Market has been cancelled. This event hosts over 7,500 attendees from across the country and we believe this precaution is necessary.”

Meanwhile, south of the border, North America’s premier show for the industry, the National Hardware Show, has been postponed. That event, which is marking its 75th year, typically attracts delegates from all over the world to see upwards of 2,500 exhibitors across 15 product categories.

The decision was made after consulting customers, closely monitoring developments and reviewing guidance from public health officials, including the United States Centers for Disease Control (CDC) and the World Health Organization (WHO). Reed will establish new dates for the show later this year.

“As we face challenging times, we feel it even more important to band together as an industry to continue the long tradition of networking, sourcing new products, education and learning best practices at a common time and place,” said Rich Russo, industry vice president for the National Hardware Show.

Eisenwarenmesse, the International Hardware Fair, in Cologne, Germany, was cancelled just days before it was to begin on March 1. The Ace Hardware Spring Convention has been cancelled. It was scheduled to take place March 12 to 14 in Chicago. The National Housewares Show, which was also scheduled to take place this week in Chicago, has likewise been cancelled.

Dealers respond to double whammy of coronavirus, rail blockades

SPECIAL REPORT — A hardware store in Brooklyn charging $80 for hand sanitizer came to the attention of the city’s tabloid newspaper—and the city police. But the “variable pricing” related to the coronavirus, for everything from hand sanitizer and toilet paper to bottled water and dust masks, is becoming a reality for retailers in all channels.

Closer to home, Andrew Rothblott owns Rotblott’s Discount Warehouse, a hardware store in downtown Toronto. Two weeks ago, he was selling a package of 20 N95 dust masks for $60. They are usually priced around $25, he says, but reflected pricing among competitors around town. And now, if he can get his hands on any, his cost is $50 a box.

Here in Canada, the added challenge of sporadic rail blockades, which continue to appear across the country, is adding to the disruptions to business dealers are facing.

While some products are flying off the shelves, others aren’t even making it into the stores. Lee Harney, vice president of operations at Moffatt and Powell, a six-store chain of RONA stores in southwestern Ontario, has been watching the situation closely. “We’ve experienced delays in some lumber products—and everything shipped by rail from out West. That’s having an impact.” He cites products such as nails, some hardwoods and underlay.

Liz Kovach, president of the Western Retail Lumber Association, was interviewed late last month on Global News in Winnipeg concerning the blockades. “A big part of what is being impacted is the ability to transport goods, particularly to Eastern Canada, when you’re speaking about lumber.” Kovach says her comments found their way to the Office of the Premier in Alberta, “indicating the premier has been made aware of our comments,” she says.

And while most of the rail blockades have been removed, just a week ago, Thomas Foreman, president of the Building Supply Industry Association of British Columbia, could look out into Vancouver Harbour and see upwards of 60 ships that could neither load nor unload.

The industry shutdown in Asia has added an even bigger challenge as freight coming from China has nearly stopped completely. Talking to his dealers, Foreman reports that some of them are looking for alternative sources of supply. But, he notes, it’s difficult to replace products with the same, or similar specs. Even as the lines of supply open up, Foreman expects it will take another three to five weeks to re-establish a consistent flow of products and fulfill his dealers’ needs. 

Like Kovach, his colleague at the WRLA, Foreman has connected with various government agencies for input and direction, pushing them to understand the need for unobstructed transportation for building supply dealers.

“We have been assisting our members with crisis management plans in preparation for further threats that could potentially harm their businesses, now and into the future,” Foreman says. 

Rothblott at Rotblott’s Discount Warehouse calls the combination of events “a perfect storm.” Nor does he see an end in sight. “I predict that there will be shortages that continue for at least the next three months.”

RED DEER, Alta. — In one fell swoop, Peavey Industries has added 104 new stores to its network. It already has almost 100 of its own, but the difference is that those are all corporately owned, while the Ace stores represent independent dealers and every part of Canada.

Nevertheless, Peavey CEO Doug Anderson says he’s ready. Part of what he bought when he took over the license to Ace in Canada from Lowe’s Canada’s RONA division was a number of key people from the Ace team. They will join the Peavey team in Red Deer to ramp up services for the Ace dealers.

“We have a lot of skilled people with the right experience,” Anderson says.

The Peavey distribution centres in Red Deer and London, Ont., already supply stores under the Peavey Mart, TSC and MainStreet Hardware banners. In addition, TSC had experience as a distributor supplying builder and pro accounts. Derek Smith, who was overseeing the MainStreet Hardware banner, was previously both a RONA dealer and a buyer at head office. He will now serve as vice president of the Ace Canada division.

Guy Lichter, formerly director of dealer conversion for Ace at Lowe’s Canada, has been named national sales director for Ace at Peavey. He leads a team of eight territory support managers—all former regional managers at Lowe’s Canada. Bill Morrison, who ran Ace Hardware out of Winnipeg and then led the Ace licensing initiative when it became part of RONA and Lowe’s Canada, is Anderson’s lead consultant to oversee the transition.

“We’ve retained a lot of knowledge so there’s a lot of depth to what we’re doing,” Anderson adds.

ST. JACOBS, Ont. ― Home Hardware welcomed two new members in Quebec in February, while a third location is rejoining the banner in April after being sold to another group under a previous owner.

Quincaillerie Limoilou in Quebec City was founded in 1992 by current dealer-owner Dominic Poulin’s parents. Today, he operates it with his wife Audrey Gendron and their son Mathieu. In Baie-Comeau, Élise Caron and her husband Michel Charette have made the decision to transfer Matériaux Manic in Baie-Comeau, which they have owned since 2012, to the Home Hardware Building Centre banner.

In April, Réno Mat St-Etienne will reopen its doors in St-Etienne-de-Lauzon under the Home banner.

The wave of new dealer-owners is a significant gain for Home Hardware in Quebec, where Lowe’s Canada’s banners dominate the market, trailed by Canadian Tire and BMR. It also fits with the Canadian franchise’s efforts to respond to Quebec consumers’ support of domestic businesses.

Duncan Wilson, senior director of sales for Home Hardware Stores, says the business is ripe for expansion in Quebec. “We consider the province of Quebec a very, very strong growth potential for us,” he says. “We’ve grown substantially in the last five years.

“It’s underexposed as far as I’m concerned,” he adds, contrasting the situation with Home’s 400-plus stores in Ontario. “Quebec is 25 percent of the whole [Canadian] industry, so we’ve got room to grow. The Quebec market is important to us: we’re planning to grow and looking forward to introducing new dealers there.”

The banner reached its 100-store milestone in Quebec 10 years ago with the addition of a store in Ste-Brigitte-de-Laval outside Quebec City. Today, it has more than 130 stores across la belle province.

At Canadian Tire Corp., Greg Hicks has been named president, CEO and member of the board of directors, effective immediately. Hicks most recently served as president of the company’s largest division, Canadian Tire Retail (CTR). His predecessor, Stephen Wetmore, is stepping down from both the CEO position and the board of directors. He will remain on in an advisory capacity through the end of this year as honorary director to support Hicks during the transition.

DID YOU KNOW…

… that the Hardlines Retail Report is your single best marketing tool for understanding the size and growth of the retail home improvement industry in Canada? Who are the top players? What are their strategies? How much has the market grown year over year and which provinces are winning in market share? With 175 PowerPoint slides and dozens of charts and graphs, this report is a must-have for every marketer. Click here for more info and to order your copy!

RETAILER NEWS

TORONTO ― Canadian Tire Corp. and Home Hardware Stores Ltd. are among the companies named to the Platinum Club of Deloitte’s Canada’s Best Managed Companies awards. These firms have maintained their place on the Best Managed roster for seven years or more. Applicants are evaluated by an independent judging panel composed of representatives from program sponsors in addition to special guest judges.

BOUCHERVILLE, Que. ― A team of women volunteers from Lowe’s Canada kicked off the renovation of a five-plex located in Montreal’s Côte-Saint-Paul neighbourhood. The event was part of the International Women Build Week, an initiative carried out by Lowe’s Cos. and Habitat for Humanity. It brought together 6,000 women volunteers in more than 235 communities in Canada and the U.S.

LONDON, Ont. ― Moffatt & Powell has purchased the RONA store in Hanover, Ont. RONA Hanover, an independently owned dealer store within the RONA family, was owned by Jane and Brian Haack, who have retired. Their son Steve will continue to work in the business. Moffatt & Powell has been in business since 1956 and has carried the RONA banner since 2010. The company now owns and operates six stores in southwestern Ontario in Strathroy, London, Exeter, Tillsonburg, Mitchell and Hanover.

SAINT-GEORGES, Que. ― A youth employment organization has honoured a local Canac store for its commitment to hiring young students. Carrefour jeunesse-emploi de Beauce-Sud awarded the store a prize for its commitment to educational success as part of the organization’s School Retention Days, held last month. It cited the store’s proactive involvement with youth and respect for their limits in granting the award.

SASKATOON ― Over the past year, Federated Co-operatives has developed a program to nurture strong, forward-thinking leadership within the organization. “Inspire: The Co-op Leadership Experience,” is a self-directed opportunity for team members to develop and refine their leadership abilities. The Personal Leadership Stream offers development opportunities for all team members, while three other streams offer development opportunities for those already in leadership roles.

SUPPLIER NEWS

HALIFAX ― The Atlantic Building Supply Dealers Association (ABSDA) celebrated the past year at its annual dinner last week during the Atlantic Buying Supply Expo. More than 640 delegates attended the sold-out event, which highlighted some of the association’s achievements over the last year.

MONTREAL ― More than 450 industry members gathered at Montreal’s Fairmont Le Reine Elizabeth earlier this month for AQMAT’s eighth Gala Reconnaissance. A five-member independent jury panel selected the winners from 55 nominations voted by the association’s membership. A total of 12 companies and 15 employees or groups of employees were honoured. (Full list of winners here!)

VANCOUVER ― Fourth-quarter revenues at CanWel Building Materials increased 11.1 percent to $293.4 million, compared to $264 million in the same period in 2018. Net earnings rose to $3.4 million in 2019, from $370,000 in 2018. For the full year, revenues increased by 3.3 percent to a record $1.33 billion, compared to $1.29 billion the previous year. Net income fell to $17.2 million from $30 million in fiscal 2018.

CAMBRIDGE, Ont. ― Bunzl announced it has completed the process of bringing all its safety companies together under the Bunzl Safety banner. The national brand transition began last year. Previously, the business consisted of three separate companies for workwear, safety equipment and lifting and rigging products. Bunzl’s WorkHorse brand is unaffected by this integration.

ECONOMIC INDICATORS

The seasonally adjusted annual rate of housing starts in Canada was 210,069 units in February, a decrease of 1.9 percent from 214,031 units in January. The SAAR of urban starts for the month also declined by 1.9 percent to 199,304 units. Multiple urban starts fell by 6.1 percent to 146,072 units while single-detached urban starts increased by 11.9 percent to 53,232 units. Rural starts were estimated at a seasonally adjusted annual rate of 10,765 units. (StatCan)

NOTED

Consumers spent $601.75 billion online with U.S. merchants in 2019, up 14.9 percent from $523.64 billion the prior year, according to the latest figures from the U.S. Department of Commerce.

OVERHEARD…

“We share our profits with local co-ops and they have a direct, positive impact on the millions of members and hundreds of communities that support their local co-ops—it’s a virtuous circle.”
―Scott Banda, CEO of Federated Co-operatives, on the co-op’s 2019 year-end results.

BOUCHERVILLE, Que. ― Lowe’s Canada continues to streamline its business with the announced sale, through RONA Inc., of the assets of the Ace Canada business to Peavey Industries. As part of the transaction, RONA, which is part of the Lowe’s Canada group, will assign to Peavey the licence and distribution agreements between RONA and Ace Hardware International Holdings, Ltd., which is in turn a subsidiary of Ace Hardware Corp.

Peavey, which is headquartered in Red Deer, Alta., with 92 farm and hardware stores from Ontario to British Columbia, will take over the Ace Hardware brand in Canada, plus a corporate Ace Hardware store in The Pas, Man. The agreement also transfers to Peavey the agreements with 104 independent Ace Hardware stores in Canada, which have been supplied through the wholesale business of RONA. Peavey will gradually assume responsibility for those stores over a six-month transition period to ensure no interruption of service. In addition, Peavey will take over the Ace Canada retail operating systems and the Ace Canada website.

Lowe’s Canada, which inherited the Ace licence when it acquired RONA in 2016, will continue to act as a wholesaler of lumber and building materials for the Ace dealers that carry those products.

The financial terms of the transaction are not being disclosed.

Despite the number of stores involved in the deal, the Ace business represents less than 10 percent of the total sales volume of Lowe’s Canada’s affiliated dealer division, says Tony Cioffi, executive vice-president, finance, affiliate dealers, Dick’s and real estate for Lowe’s Canada. Those stores tend to be smaller, with a different product mix than RONA stores. He admits that the Ace stores will make a better fit with Peavey.

“The sale will also help the company focus more directly on the RONA-affiliated dealer base,” Cioffi added. “This transaction is in line with our plan that was announced last November to simplify our multiple store banners in order to drive efficiency and reduce operational complexity.”

Jean-Sébastien Lamoureux, senior vice-president of communications, public affairs and compliance at Lowe’s Canada, reinforced that message. “We believe in the RONA dealer network and will continue supporting it.”

He adds that the six-month transition will give Peavey time to take over the new business effectively, “to allow for a smooth transition so dealers will see no difference in the service they’re getting, whether from RONA or Peavey.”

Why the Ace brand will make a good fit for Peavey’s small-town roots

RED DEER, Alta. ― The acquisition of the license and distribution business for Ace Hardware in Canada by Peavey Industries will provide a good fit, and a powerful growth generator, for the Red Deer-based farm and hardware chain.

“I believe it’s the right fit and makes a lot of sense for Peavey and for Ace Hardware, quite frankly,” says Doug Anderson, president and CEO of Peavey Industries. Peavey owns three banners totalling 92 retail stores across five provinces: 49 TSC Stores in Ontario, 40 Peavey Mart stores across Manitoba, Saskatchewan, Alberta and British Columbia and three MainStreet Hardware stores in Alberta.

Peavey’s head office and distribution centre is in Red Deer, Alta., with a second distribution centre and regional office in London, Ont., that had been the head office for the TSC business.

Anderson had already proven himself a canny acquisitor. His company began the takeover of TSC Stores back in July 2016, gradually increasing its stake in the business before taking over completely within two years. By the end of 2019, Peavey had completed integrating systems between the two businesses, rolling buying functions and systems into the Red Deer office.

Taking over the Ace business in Canada turned out to be the next step—and yet another good fit. And it was something Anderson began working on about nine months ago. He also wants to stress that Peavey approached Lowe’s Canada about this deal. “Lowe’s wasn’t out shopping this around to dump it,” he says emphatically. “This is something we see real value in.”

The Ace stores tend to be smaller than RONA stores, with more emphasis on categories such as farming and convenience hardware—something that Peavey already specializes in. He says both sides spent about six months making sure the fit was a good one. “RONA and Peavey spent a lot of time making sure this transaction would have the best interests of the Ace dealers in mind.”

Anderson notes that the Ace stores share a dedication to their local markets, backed by strong customer service. “Also, it is a great opportunity for us to serve new markets with the addition of this great brand.”

Ace in Canada is managed, as it is in other markets outside the U.S., through Ace Hardware’s Ace International division. “This is an exciting new chapter for Ace Hardware International and the Canadian Ace Hardware retailers,” said Jay Heubner, president and general manager of Ace Hardware International. “We are thrilled to team up with Peavey Industries, an organization that shares our values and has a strong commitment to service and community.”

ORLANDO — In the midst of a snowstorm north of the border in Central Canada, Canadians found warm weather and hot deals in Orlando at this year’s Orgill Spring Dealer Market. The market took up nearly one million square feet at the Orange County Convention Center and ran from February 27 to 29.

The show got off to a busy start the first morning, as the dealer registration line stretched across the convention centre’s main entrance. Canadians, in colour-coded badges, could be found in groups in the Door Busters, Canada Coupons and Canada Market Busters areas browsing the many show deals on offer.

New this year was the Impulse Showcase, an area on the perimeter of the show floor that displayed the latest best practices and products for dealers to try in their check-out lines.

Canadian vendors were generally pleased with show turnout. Dave Pestill of CashierPro was happy with business on the first morning. He doesn’t typically see his customers until the second day of the show, once they’ve already investigated the show deals, but noted that a number of dealers had stopped by early in the day.

Pestill says his company started attending the show to reach Canadian independents but has found in recent years that he’s been able to pick up some U.S. dealers as well.

Richard Defee, who was representing Oatey at the show, echoed Pestill’s positivity about the first morning. He said he had nearly surpassed the number of customers he typically sees at the show overall by mid-morning the first day.

In Orgill’s continued efforts to appeal to Canadians, a number of booths indicated where customers could be served in both official languages and the Memphis-based company even had a French customer service desk.

Capping off the first day, Hardlines hosted its popular Canada Night event at B.B. King’s, a nearby nightclub. About 150 Canadian retailers and vendors turned up for drinks, snacks and a live band.

The next Orgill Dealer Market will take place in at the Las Vegas Sands Expo and Convention Center from August 27 to 29, 2020.

BOUCHERVILLE, Que. ― Against a backdrop of positive annual sales from its parent, BMR Group has tied its dealer-members even tighter into the co-op structure.

Sollio Cooperative Group (formerly La Coop fédérée) reported a record $7.282 billion in consolidated sales in 2019, up $766 million from the previous year. Earnings before refunds and taxes were $79.4 million, a decline from previous years as global geopolitical and trade tensions marked 2019.

BMR Group, which comprises Sollio’s retail division, posted annual earnings of $16.7 million, down slightly from $16.9 million last year. Tighter controls and more advantageous trade agreements were tempered by an increase in some operating expenses. These included transportation costs (the result of a labour shortage) as well as storage costs due to a need for additional space.

However, 2019 marked the first year the BMR dealer-members received a dividend from Sollio. The co-op returned a patronage refund of $3.5 million to the dealers that will be shared based on their purchase volumes. The patronage refund was made possible by a change in the co-operative’s by-laws.

DID YOU KNOW…

… that dealers can now enter this year’s Outstanding Retailer Awards? The nomination forms are available online. We look forward to celebrating the country’s top hardware and home improvement dealers at the 25th annual Hardlines Conference on October 27. Meanwhile, check out the party we had last year with this brief video featuring last year’s amazing winners, on Hardlines TV!

RETAILER NEWS

JONQUIÈRE, Que. ― BMR Group and appliance retailer Corbeil are launching a pilot project to integrate their product offerings under one roof. The store-within-a-store will consist of a Corbeil space within BMR’s Potvin & Bouchard store in Jonquière. The store is being remodeled to accommodate the Corbeil section, with a new storefront and redesigned aisles. Corbeil has 30 stores in Quebec and Ontario.

SASKATOON ― At its recent AGM, Federated Co-operatives Ltd. announced revenues of $9.2 billion, down four percent from $9.6 billion the previous year. From those revenues, it realized earnings of $959 million, with $649 million returned to local co-ops and their communities in Western Canada. “Last year was one of our best financial years ever,” said CEO Scott Banda.

QUEBEC CITY ― On February 28, the independent retail chain Canac held the grand opening of its 30th store. The company has been expanding aggressively in recent years, adding about one store per year. The new store is in in Prévost, Que. According to Jean Laberge, president of Canac, this latest store is modelled after the previous store, which opened in May 2019 in Notre-Dame-des-Prairies. 

BOUCHERVILLE, Que. ― Lambton BMR Pro of Petrolia, Ont., is its newest store to come under the BMR Pro banner. Dave and Kristen Van Stempvoort have owned the store for the past five years, and it had been with its previous banner for almost a decade.

SUPPLIER NEWS

LÉVIS, Que. ― Maibec has reached an agreement to purchase LP Building Solutions’ East River, N.S., factory along with assets and brand rights for CanExel, the fibre-based siding product manufactured there. The transaction is expected to close in the second quarter.

MONTREAL ― Intertape Polymer Group has announced a series of measures designed to enhance the sustainability of its product offering, operations and supply-chain management. In addition, IPG is launching the Curby line of recyclable shipping materials.

COLOGNE, Germany ― The European Federation of DIY Manufacturers is renaming itself the Home Improvement Manufacturers Association (HIMA). Its new mission statement is to “enable our members to face the future,” on the three pillars of networking, knowledge and lobbying.

LANCASTER, Pa. — Armstrong World Industries reported Q4 profits of $51.5 million, a 40.7 percent hike from $36.6 million a year prior. Sales of $246.9 million represented a 3.3 percent gain from Q4 2018. For the fiscal year, profits of $242.3 million were up 27.8 percent. Sales for the year totalled $1.04 billion, a 6.4 percent increase.

ECONOMIC INDICATORS

Construction spending in the U.S. in January reached $1,369.2 billion seasonally adjusted, up 1.8 percent from the previous month. The January figure is 6.8 percent above the January 2019 rate of $1,282.5 billion. (U.S. Commerce Dept.)

NOTED

Eisenwarenmesse, the International Hardware Fair,  in Cologne, Germany, has been rescheduled for February 21 to 24, 2021. The postponement of this year’s event was announced at the end of February, a week before the show, after major buyers from North America, along with several European exhibitors, pulled out due to concerns about the spread of the SARS-CoV-2 virus in Europe. The show, which usually runs in alternate years, will take place in both 2021 and 2022.

OVERHEARD…

“While it will allow Lowe’s Canada to focus its energy exclusively on the RONA banner for its affiliated dealer network, Ace affiliated dealers across the country will find in Peavey Industries a partner whose value proposition is better adapted to their operating reality and customers’ needs.”
―Tony Cioffi, executive vice-president, finance, affiliate dealers, Dick’s and real estate for Lowe’s Canada, on the sale of the Ace Hardware license in Canada to Red Deer-based Peavey Industries.

OUT AND ABOUT

Our Editor Sigrid Forberg and VP and Publisher David Chestnut are off to Halifax this week for the ABSDA Building Supply Expo. Got a new product or a story scoop? Be sure and stop by Booth 117 and fill Sigrid in! And if you need help promoting your company and products, David is the person to connect with!

COLOGNE, Germany ― The International Hardware Fair planned in Cologne from March 1 to 4, 2020 has been postponed. Koelnmesse, the show’s organizer, is responding to the increasingly acute global situation around the recent occurrence of the coronavirus.

The show, ordinarily held every two years, drew 47,000 visitors in 2018 from 143 countries to visit 2,770 vendors. Show organizers are planning to remount the event from February 21 to 24, 2021 in addition to holding the show already scheduled for 2022.

As the virus spreads across Europe, travel there is becoming increasingly problematic. The concern began impacting specific companies, which started to withdraw from the show over the previous week. These include some German firms such as power tool maker Metabo, fastener company Fischer and packaging company Rose Plastic, which all cited concerns for their staff due to higher exposure risks.

German abrasives manufacturer Klingspor pulled out, saying, in a press release, “The reason for this decision is the potentially considerable health risks for employees and business partners in connection with the coronavirus SARS-CoV-2, which has been appearing worldwide since the beginning of the year, especially in view of the fact that the fair is expected to attract numerous exhibitors and visitors from regions affected by the virus.”

Considering these current developments and the high share of Asian exhibitors at the show itself, the management team at Koelnmesse were forced to reassess the situation.

Home Depot turns in solid year end, forecasts stronger growth in 2020

ATLANTA ― The world’s largest home improvement retailer saw sales dip slightly in the fourth quarter, but net sales for the year showed improvement over 2018.

Sales for the fourth quarter of fiscal 2019 were $25.8 billion, down 2.7 percent, due in part to an extra week of operations in the previous year compared to fiscal 2019. The extra week added about $1.7 billion of sales to the fourth quarter of fiscal 2018. Net earnings showed a healthy gain, however, reaching $2.5 billion, up 5.8 percent over Q4 2018.

Comparable sales for the fourth quarter increased 5.2 percent, with U.S. comps up 5.3 percent. The Canadian business reported positive comps in the quarter as well. Sales of “big-ticket items,” defined as products and services over $1,000, represent about 20 percent of Home Depot’s U.S. volume and those sales were up by double digits in the quarter. Big-ticket categories include appliances, vinyl plank flooring and Home Depot’s installation services business.

Online sales continued to be strong for the retailer. Excluding the extra week last year, online sales grew 20.8 percent in the quarter, and 21.4 percent for the year, all part of Home Depot’s interconnected retail strategy.

Sales for fiscal 2019 were $110.2 billion, up 1.9 percent over fiscal 2018. Net earnings reached $11.2 billion, up 1.1 percent. Comparable sales for fiscal 2019 increased 3.5 percent, and comps in the U.S. increased 3.8 percent.

Home Depot is now two years into a multi-year investment program, One Home Depot, during which time the retailer says it has grown sales by more $9 billion.

For 2020, the company anticipates total sales growth of 3.5 to four percent, with comp sales growth of between 3.5 and four percent. Home Depot also expects to open six new stores in fiscal 2020.

Lowe’s reports higher year-end profits despite U.S. online sales challenges

MOORESVILLE, N.C. — Lowe’s Cos. has reported net earnings of $509 million for the fourth quarter ended January 31. The results included pre-tax operating costs and charges of $185 million and represent a swing from the net loss of $824 million in the fourth quarter of 2018.

Those charges were from the company’s previously disclosed strategic review of its Canadian operations and closure of its Mexico business. The result of some closures in Canada and the complete exit from Mexico, where Lowe’s had 13 stores, resulted in charges related to inventory liquidation, accelerated depreciation and amortization, severance and other costs.

Sales for the fourth quarter reached $16 billion, up 2.4 percent from $15.6 billion in Q4 2018, and comparable sales increased 2.5 percent. Comp sales for the U.S. business increased 2.6 percent in the quarter. The business in Canada posted comp sales that were “slightly negative in local currency,” said Marvin Ellison, Lowe’s president and CEO, a call to analysts.

During the quarter, Lowe’s closed 28 stores in Canada, with another six due for closure by the end of February.

In fact, growth in the quarter came directly from the company’s domestic stores. “Our sales growth was driven almost entirely by our U.S. bricks-and-mortar stores, supported by our investments in technology, store environment and the pro business,” said Ellison.

For the year, Lowe’s saw net sales increase to $72.15 billion, up 1.2 percent from $71.31 billion in the prior year, and net income of $4.28 billion, up 85 percent from $2.31 billion.

Lowe’s guidance for 2020 includes total sales growth of 2.5 to three percent and comp sales growth of three to 3.5 percent.

Retail market share by province: who are the top players regionally?

SPECIAL REPORT ― Home improvement banners can vary in their market dominance according to the provinces they are in. And even the national brands can face different levels of market penetration and acceptance, based on their region.

In British Columbia, which itself makes up almost 12 percent of retail sales in this industry, Home Depot Canada is the market leader. It represents 22.4 percent of the B.C. market, followed by Lowe’s Canada through its various banners at 13.3 percent. Home Hardware and Canadian Tire are close behind with 12 percent each.

Alberta follows close behind British Columbia in terms of market share, also just shy of 12 percent. In this province, the leader is again Home Depot, with 22.4 percent of retail sales, followed by Lowe’s Canada with 16 percent. In Saskatchewan, the independents hold sway. The Sexton Group has 15.1 percent of the market, while Federated Co-operatives, based in Saskatoon, represents 14.8 percent. Home Hardware comes in third with 13.3 percent.

Manitoba sees a mix of corporate and independent stores battling for supremacy. Home Depot has 14.5 percent of the market, with Home Hardware at 13.8 percent. These are followed by Lowe’s Canada, which represents 11.1 percent of the market, while TIMBER MART is close behind with almost 10 percent.

Ontario is Canada’s largest market, representing more than one-third of all hardware and home improvement sales in the country. Home Depot has dominance there, as this province is its home base in Canada and the scene of the greatest expansion in its early years in this country. Canadian Tire and Home Hardware trail behind, both with slightly more than 16 percent of the market.

Quebec is an important market that accounts for more than one-fifth of home improvement sales in Canada. Lowe’s, through its acquisition of RONA, is the clear leader there. With 26 percent of the market, that’s well ahead of the volume of the next dealers, Canadian Tire and BMR Group, with 16 and 12 percent, respectively.

Things shift as we move east. Home Hardware holds dominance in New Brunswick with more than a quarter of the market, followed closely by Kent Building Supplies with almost 23 percent. Canadian Tire has 15 percent of the market and Castle is next with 10 percent. Home Hardware is well ahead in Nova Scotia, accounting for almost 30 percent of the market there. They’re followed by Canadian Tire with 16.3 percent and Kent with a little more than 13 percent. In Prince Edward Island, Kent has the lead with 31 percent, followed by Home Hardware with 24.2 percent, Home Depot with almost 14 percent and Castle with 11 percent.

Newfoundland and Labrador is another region dominated by independents: Home Hardware has 28.3 percent of the market there, followed by Castle with more than 22 percent.

(Source: the 2019 Hardlines Market Share Report, which breaks out the market shares for all retail banners in the industry by province. The full report is available here!)

MONTREAL ― With more than 1,000 dealers and vendors in attendance, TIMBER MART hosted its 10th annual national buying show earlier this month at the Palais des congrès in Montreal.

The show served as the backdrop for a number of new offerings from the buying group, including specials and displays on a wide range of plumbing, electrical, paint, tools, hardware, seasonal and household products.

CEO and President Bernie Owens was upbeat about the buying group’s fortunes this year. “It’s early in the year, but the year has started out strong for us,” he said. “We have new members we’ve welcomed who are at the show. There’s a lot of change and consolidation and it’s helping us.”

The new showroom, slightly more compact than in previous years, hosted more than 200 vendor booths in 60,000 square feet, including TIMBER MART’s “Store on the Floor,” which held merchandised displays of more than 2,000 SKUs of building materials and hardlines products.

The centre of the floor featured a number of services and programs from TIMBER MART, ranging from LBM distribution to marketing and banner support. The buying group also introduced a new proprietary cabinetry and vanity line and a growing assortment of building materials offered by its LBM distribution centres.

The show’s first evening kicked off with a national dealer meeting, which Owens calls “an opportunity to immerse our dealers and update them on how the group is doing,” followed by educational workshops. The evening concluded with a welcome reception. Owens notes that the latter was scheduled to last two hours, but it was so popular that “we had to shut it down after three.” On the second evening, members and vendors were honoured with a networking and recognition reception.

Owens observed that the industry has been strong during the past year across the country, with the exception of Alberta, where the economy continues to face pressure from factors like wildfire recovery and pipeline delays. “The pie has gotten smaller in Alberta, but there’s still the same number of players fighting for the pie.”

TIMBER MART’s buying show, Owens adds, is held in Central Canada partly because of the presence of established regional shows in the West and the Atlantic.

“Our membership is coast to coast. Without our show, many here wouldn’t have a show to go to,” says Owens. “It’s a show to add value for all members regardless of the region they’re in—to share best practices and new products.”

Home Depot Canada prepares for spring with hiring blitz

TORONTO — The Home Depot Canada is planning to hire more than 5,500 new associates across the country to support its busy spring season. All 182 stores are hiring for full- and part-time as well as seasonal positions such as staff for its garden centres, along with department supervisors, daytime and overnight workers, sales associates and cashiers.

“Our team is built on a set of core values shared by four generations of associates working in our stores,” Home Depot President Jeff Kinnaird said in a release. “We’re proud of our diversity and the individual talent, skills and experience which strengthens our customer service and reflects the 182 communities we live and work in.”

The home improvement industry faces a persistent challenge of attracting good candidates, especially among young job seekers. Kinnaird himself is considered an example of the kind of career trajectory Home Depot can offer. He started out as a sales associate at a Home Depot in Richmond, B.C., in 1996. He moved up through the ranks, eventually becoming vice president of merchandising. He has held the top job at Home Depot Canada since the beginning of 2016.

The company is letting individuals sign up by text (texting “Home Depot Jobs”, or in Quebec “HD Emplois,” to 97211), and they can apply online. In addition, the stores are hosting local job fairs, with more than 150 scheduled over the next couple of weeks. Overall, Home Depot intends to hire up to 80,000 people in the U.S. and Canada for the coming season.

CALGARY ― Another building materials distributor is expanding its presence on the Canadian scene. Dealers Choice was exhibiting at the recent WRLA Buying Show in Calgary. It’s a division of Beacon Building Products, a specialty wholesaler to roofing contractors. Based in Herndon, Va., Beacon has branches throughout Canada, as well. Beacon Building Products – Canada has its headquarters in Montreal.

A relative newcomer to Canada, Dealers Choice was exhibiting for only the second time at the show in Calgary. In the booth, its team was providing dealers with information on its products, which include residential and commercial roofing, vinyl and wood siding, insulation and accessories. It also provides logistical support, including a fleet of delivery trucks of various sizes and a dedicated credit card for its dealer customers. The company says it’s already working with RONA and Home Hardware dealers.

With nine DCs in British Columbia, Alberta, Saskatchewan and Quebec, Dealers Choice has plans to enter the Manitoba market next, and is focused on getting product to dealers, no matter how remote their location.

“We just came into this market to bring our strengths that we have in the U.S., to be able to assist these distant locations,” says Daved Benefield (shown above), the sales rep for Dealers Choice’s facility in Surrey, B.C.

TORONTO — Canadian Tire Corp. turned in strong results for 2019, with the Canadian Tire Retail business showing strong comps and year-over-year sales growth.

That uptick came despite a slow start to the year, which, according to Greg Hicks, president of Canadian Tire Retail, caused “quite a challenge as we looked ahead to our final two quarters.” He and other Canadian Tire executives spoke recently to analysts following the release of the company’s fourth-quarter and year-end results.

Annual revenue for the entire company was up 3.4 percent to $14.5 billion, while sales by Canadian Tire stores increased 4.5 percent, with comparable sales up 3.8 percent.

Sales continue to be pushed through both online and bricks-and-mortar channels. According to Canadian Tire’s EVP Retail, Allan MacDonald, e-commerce sales exceeded $500 million in 2019—up more than 20 percent in the fourth quarter alone.

And a lot of that had to do with the buy-in of the Canadian Tire associate dealers.

Hicks notes that the dealers are “very, very supportive” of the cross-channel initiatives, which have put a lot of emphasis on buy online, pick-up in-store strategies—whatever works best, he says, for the customer. “The dealer sees the benefit of providing the customer choice.” That BOPIS option is, he adds, “always the fastest and the cheapest option.”

To encourage that delivery option further, Hicks says the company will roll out lockers for online orders to hundreds of stores this year, after testing them through 2019. While bringing customers into the store for order pickup saves the retailer money, it also increases “dwell time” for customers. Once in the store, they are more inclined to buy other products as well.

But ship to home remains an important option, and Hicks notes that “Our ship-to-home business was up almost double in the [fourth] quarter.”

Charlie Hart has joined Ledvance as president and CEO. He comes over from Uponor Ltd., where he spent eight years as general manager, Canada. His background prior to that includes TTI Canada, Irwin Industrial Tools and Ipex. Hart replaces John Preville.

Barry Hill has been named Canadian sales manager for bio-based Natures Broom and Biochar Abatement products at Nature’s Broom Absorbent. The lines will be represented through Barry Hill Sales Associates, based in Truro, N.S.

DID YOU KNOW…

… Eisenwarenmesse, the International Hardware Fair in Cologne, Germany, is on from March 1 to 4? It’s one of the world’s largest trade shows for the hardware and home improvement industry. Hardlines will once again host a Canada Night International Reception on site at the show. It’s a great way for Canucks to gather and meet colleagues from around the world. (Click here for more info and to RSVP!)

RETAILER NEWS

MONTREAL — La Coop fédérée, parent company of BMR Group, is set to rename itself Sollio Groupe Coopératif at its annual general meeting next week, La Presse reports. Quebec’s National Assembly late last year cleared the way for the move, which makes the co-op’s agribusiness segment, dubbed Sollio Agriculture since 2018, its namesake division. La Coop fédérée most recently changed its name in 2005: prior to that it was known as Cooperative fédérée de Québec. In addition to Sollio Agriculture and BMR, it includes the Olymel brand of meat products.

BENTONVILLE, Ark. — Walmart reported year-end results last week, with total revenue reaching $524 billion, an increase of $9.6 billion or 1.9 percent. In Canada, net sales declined 0.5 percent while comp sales increased 0.6 percent. In the U.S., comp sales were up 2.8 percent. The retailer’s U.S. e-commerce sales grew 37 percent. International net sales increased 2.8 percent in constant currency, with strength reported in Mexico, China and India’s markets.

SUPPLIER NEWS

VANCOUVER — Acadian Timber Corp. reported sales of $100 million in 2019, more or less flat compared to $99.8 million in 2018. Net income for 2019 was $17.3 million compared to $26.3 million in the prior year, largely due to one-time costs related to the termination of the company’s evergreen management contract with Brookfield LP. As a result, Acadian no longer pays Brookfield management or performance fees, which totalled $3 million in 2018.

MISSISSAUGA, Ont. — American Standard will be the official supplier of kitchen and bath plumbing fixtures for multiple television series on Corus Entertainment’s HGTV Canada. The partnership includes the popular series Save My Reno, which returned for a new season on February 18, and the brand-new Family Home Overhaul, which features 14 of the network’s top contractors and designers and premieres April 26.

ECONOMIC CONDITIONS

Sales of existing Canadian homes declined by 2.9 percent in January. Transactions were down in a little more than half of all local markets, with the national result most impacted by a slowdown of more than 18 percent in B.C.’s Lower Mainland. Actual (not seasonally adjusted) sales activity was still up 11.5 percent compared to January 2019, marking the best sales for that month in 12 years. (Canadian Real Estate Association)

U.S. housing starts fell 3.6 percent in January to a seasonally adjusted annual rate of 1.567 million units, following three monthly increases. On a year-to-year basis, starts were up 21.4 percent. Meanwhile, building permits jumped by 9.2 percent to a rate of 1.551 million units in January, their highest level since March 2007. Both single- and multi-family dwellings contributed to the surge. (U.S. Commerce Dept.)

NOTED

The 2020 edition of DX3, Canada’s largest retail, marketing and technology event, will take place on March 10 and 11 at the Metro Toronto Convention Centre. Consisting of a retail summit and a marketing and innovation summit, DX3 will draw speakers tackling topics from digital marketing and artificial intelligence to video content and copywriting. Visitors can use the coupon code dx3showfloor for free access to the show floor. For registration info, click here.

OUT & ABOUT

Wow, it’s show time! Sigrid, Michelle and David are down at the Orgill Dealer Market this week to host Canada Night (for more info on this dealer-only event and to RSVP, click here!), while Michael is in Cologne, Germany for the International Hardware Fair—and to host our Canada Night International Reception there! (Click here for more info and to RSVP!)

MONCTON — A new 100,000-square-foot Kent Building Supplies store is being planned on a property owned by parent company J.D. Irving Ltd. The property will replace a truck terminal that currently sits on the site, CBC News reports.

According to a report presented to Moncton city council, the company is aiming to open the store by 2022. A second phase of the plan provides for an additional 150,000 square feet of retail space and 10,000 square feet of restaurants to be developed by 2025. The property is northwest of what is known as the Vision Lands, a 1,400-acre wooded lot which the city is looking to develop into a mid-rise, mixed-use residential and retail community.

This will be the 10th big box for Kent, a dominant retail chain in Atlantic Canada. The company owns both large-format and traditional-sized stores. But the return to building big boxes is relatively recent. Kent originally opened seven big boxes in the mid-’90s to head off potential expansion by then-newcomer Home Depot, which was busy expanding in central Ontario. Kent then switched its focus for several years to smaller markets and more traditional-sized home centres.

Then, in July 2014, Kent opened a 100,000-square-foot big box in Charlottetown, its first large-format store in Prince Edward Island and its first big box in almost two decades. In the summer of 2018, the company opened a new big box in the Halifax market at Dartmouth Crossing (shown here).

At the beginning of 2017, Central Supplies, a fixture in Nova Scotia since 1976, became part of Kent. That group includes one large-format store as well.

Following reorg, Sexton Group stays focused on needs of independents

WINNIPEG — A recent shuffle at the Sexton Group has resulted in a change in management, but not in the buying group’s mandate to grow and support independent dealers across the country.

Former Sexton Group President Steve Buckle has been appointed CEO of the Sexton family of companies, while Eric Palmer, formerly senior manager, purchasing, has been put in charge of the group as vice president and general manager. (See our last blazing issue for the full story on the latest changes at Sexton.―Editor)

One area that remains important to the group is growing its ranks. To that end, Tom Bell is being promoted to vice president of business development. In this role, he will continue to focus on the needs of the members, as well as recruitment activities. He now reports to Palmer.

Buckle stresses that the biggest part of Bell’s job is staying close to the needs of existing members. “Yes, recruitment is important. But working with our existing members is the lion’s share of the role.”

While it started as a Western group, it gradually expanded its reach, “and that’s led us to Ontario, where we’ve made some important inroads in recent years,” Buckle says.

One area where Sexton Group has made gains has been with ready-to-assemble and prefab house builders, which now account for 27 members. “We’d be the biggest buying group by far for those types of companies,” says Buckle. Working with these businesses and meeting the demands of that type of business has its own set of challenges, he adds.

“Getting used to these businesses is not the same as working with a traditional dealer. It requires more supply chain management to accommodate their tight building schedules.”

TORONTO ― Canadian Tire turned out healthy year-end results, including strong performance by Canadian Tire-bannered stores.

“We had an exceptionally strong Q4 that capped off a solid last half of 2019,” said Stephen Wetmore, president and CEO of Canadian Tire Corp. He gave a lot of credit to the company’s Triangle Rewards program, a branding strategy to attract customers across all channels, including online and bricks and mortar. “Customers are engaging with us more frequently, both in our stores and digitally, driving our top-line growth, as well as making us one of Canada’s largest e-commerce players.”

Fourth-quarter consolidated revenue for the entire company reached $4.3 billion, up 4.5 percent, and annual revenue was up 3.4 percent to $14.5 billion. While holiday season sales rebounded after a weaker showing in 2018, results were dampened somewhat by the petroleum business. Not including petroleum, Q4 sales were up 5.1 percent and up five percent for the year.

Wetmore also gave a nod to the retail business for its strong results. For the fourth quarter, Canadian Tire Retail (CTR) saw sales increase 6.6 percent, while comparable sales were up 4.8 percent. For the year, retail segment revenue increased by 3.1 percent. Excluding petroleum, retail segment revenue was up 4.8 percent. Sales by Canadian Tire stores increased 4.5 percent, while comparable sales increased 3.8 percent.

“Our ability to deliver remarkably consistent growth at CTR is due to our strong partnership with our associate dealers and their knowledge of our customers’ expectations in virtually every community in Canada.”

SPECIAL REPORT — There’s no such thing as too soon when it comes to succession planning. The earlier you start preparing for the inevitability of a transition of power, the smoother and easier that transition will go.

“The best time to start your succession planning is immediately,” says Dave Ryan, vice president and financial planner with PIB Financial. PIB, which is owned by Home Hardware, advises Home dealers across the country in all aspects of investment, wealth management and insurance.

The best plan, Ryan says, is to have a very profitable and attractive business. For PIB’s part, that means asking Home Hardware dealers if they’re taking advantage of all the programs the banner offers. That includes ensuring the store is merchandised properly and signage is up to date, indicators to an outsider that the business is being run well, regardless of their projected timeline for retirement.

Jon Irwin is TIMBER MART’s vice president of member services. Irwin says there are some specific steps for preparing a business for a handover, including setting up a team to help carry out the plan and developing a learning plan for your identified successor.

“The learning plan for a successor should have measurable goals, clear objectives, reasonable timelines, as well as specific people identified and held accountable for taking actions towards it,” says Irwin.

At Lowe’s Canada, Josée Desrosiers, the national director of business development for RONA and Ace dealers, says succession planning is something her team discusses in the early stages of a store joining either banner. Sadly, Desrosiers says, there’s no foolproof solution to that final question. But like Ryan, she agrees that if you’re asking yourself when the right time is to start planning—the answer is right away.

“There is no miracle solution for identifying a successor,” says Desrosiers. “Each situation is unique, and various succession scenarios may arise. To avoid being caught short, you need to think far in advance.”

(This article is excerpted from a larger feature in the next issue of our sister publication, Hardlines Home Improvement Quarterly magazine. HHIQ is mailed out four times a year to 11,000 dealers and store managers across the country. Click here for more info!)

Charlie Hart has joined Ledvance as president and CEO. He comes over from Uponor Ltd., where he spent eight years as general manager, Canada. His background prior to that includes TTI Canada, Irwin Industrial Tools and Ipex. Hart replaces John Preville.

Barry Hill has been named Canadian sales manager for bio-based Natures Broom and Biochar Abatement products at Nature’s Broom Absorbent. The lines will be represented through Barry Hill Sales Associates, based in Truro, N.S.

DID YOU KNOW…

… Eisenwarenmesse, the International Hardware Fair in Cologne, Germany, is on this year from March 1 to 4? It’s one of the world’s largest trade shows for the hardware and home improvement industry. Hardlines will once again host a Canada Night International Reception on site at the show. It’s a great way for Canucks to gather and meet colleagues from around the world! (Email Michael for more info and to RSVP!)

SUPPLIER NEWS

VANCOUVER — West Fraser Timber reported its Q4 sales totalled $1.29 billion. Its operating loss was $31 million, compared with a $54 million loss the previous quarter and earnings of $15 million for the comparable quarter of 2018. In the lumber segment, the company narrowed its loss to $23 million from $53 million in Q3. West Fraser’s panels business generated earnings of $8 million, down from $9 million in the previous quarter. The pulp and paper division’s loss widened to $12 million from $8 million in Q3.

MONTREAL — Intertape Polymer Group has reached a deal to acquire Nortech Packaging for approximately $36.5 million. The privately held, Chicago-based Nortech manufactures, assembles and services automated packaging machines under the Nortech Packaging and Tishma Technologies brands. The acquisition is expected to close during the present fiscal quarter.

BRISTOL, England — Bemis Co. posted earnings of $186 million for the second quarter, or $0.12 per share. Revenues for the quarter totalled $3.04 billion. Australian-based Amcor, which purchased Bemis last year, pointed to the merger as key to its success as it posted above-forecast earnings of $699 million for the second half of 2019. 

IN MEMORIAM

Steve Duplantis, long-time partner at Canadian Pro Marketing, has died. He is survived by his granddaughter Sierra. Duplantis was tragically predeceased by his son, celebrated pro golf caddy Steve Duplantis, Jr., who died in 2008 at the age of 35.

ECONOMIC CONDITIONS

The seasonally adjusted annual rate of housing starts was 213,224 units in January, an increase of 8.8 percent from 195,892 units in December. Urban starts, seasonally adjusted, increased by 9.8 percent in January to 202,407 units. Multiple urban starts increased by 13.6 percent to 155,140 units while single-detached urban starts decreased by 0.9 percent to 47,267 units. (CMHC)

The total value of building permits issued by Canadian municipalities increased 7.4 percent to $8.7 billion in December. Increases were reported in five provinces, led by Ontario, where permits rose 10.5 percent, and Quebec, which saw a 15.8 percent increase. The value of permits for multi-family dwellings was up 15.9 percent, mostly due to large projects in the Montreal and Vancouver areas. Conversely, the value of permits for single-family dwellings decreased 3.2 percent, with the largest decline in Ontario. (StatCan)