TORONTO — Not since the worldwide recession more than a decade ago has Canada’s retail home improvement industry slowed down as much as it did in 2019. And as the industry tries to make sense of the impact of the COVID-19 pandemic, 2020 could turn out even worse. These are just some of the insights found in the 2020 Hardlines Retail Report.

According to the 2020 Hardlines Retail Report, sales by the industry overall experienced negative growth for the first time since 2009. However, impacts varied from region to region and by store format.

Big box retailers fared best during the uncertainty of 2019. In fact, these large-surface stores did well last year, growing in real terms and securing a larger portion of the entire market in Canada than ever before. At the other end of the retail spectrum, hardware stores showed great resilience, providing convenience offerings and maintaining their role as an important part of the local communities they serve.

This year’s Hardlines Retail Report analyzes how much the industry grew last year and identifies the best-performing provinces. The Report also ranks the industry’s top retail groups. And the big players get close scrutiny: Home Depot, Lowe’s Canada, Canadian Tire and Home Hardware are all analyzed in depth. It also evaluates the strength of independents, their affiliations with the buying groups, plus leading retail banners such as BMR Group, Canac, Peavey Industries and Windsor Plywood.

Designed to help retailers and suppliers alike develop their business plans for the year ahead, this year’s Report provides valuable forecasts for the industry for 2020 and through to 2021. Forecasts include estimated performance by the industry’s top home improvement retailers, plus growth forecasts for renovation and housing.

The 2020 Hardlines Retail Report fills more than 150 PowerPoint slides and is packed with dozens of charts, graphs and photographs. (For more information about the 2020 Hardlines Retail Report, please click here.)

INDIANAPOLIS — The North American Retail Hardware Association (NRHA) recently deployed a COVID-19 Business Impact Survey. In total, nearly 300 independent home improvement operators representing roughly 1,500 storefronts participated in the survey, shedding light on the obstacles and opportunities the pandemic has brought to the industry.

“Now that everyone has been living in this environment for a few months, we wanted to understand the impact COVID-19 has had on independent home improvement businesses from a performance perspective and an operational perspective,” says Dan Tratensek, executive vice president of NRHA.

Compared to the same period in 2019, nearly 72 percent of retailers say sales have risen at their businesses amid COVID-19. On average, retailers say sales have risen about 17 percent.

Additionally, more than 90 percent of surveyed retailers say COVID-19 has had some impact on their overall sales performance, cementing the pandemic as a major challenge.

Roughly 45 percent of survey respondents say they have employees who opted not to work at the store during the outbreak. More than one-third are running their businesses with fewer employees at their operation. Fewer than 15 percent of respondents have furloughed or laid off employees.

“The number of operators who have furloughed or laid off employees is still relatively small,” Tratensek says. “It looks like most of the reasons for laying off or furloughing employees centre around areas of the businesses that couldn’t function during COVID-19, like remodelling crews or delivery teams.”

The NRHA’s research also found the vast majority of respondents are instituting physical distancing at their stores. Nearly 70 percent of retailers are providing personal protective equipment (PPE) to their employees. Almost 36 percent of retailers are offering incentive pay to employees during the pandemic.

Retailers have adjusted their operations in myriad ways, but one of the clearest developments is the growth in curbside pickup services. More than 71 percent of retailers say they have instituted it in their stores. Supporting that business model is a simultaneous growth in online orders, which almost half of all respondents report.

BARRIE, Ont. — The role of bricks-and-mortar retail as part of the supply chain, rather than the ending point for it, has shifted rapidly under the current COVID-19 pandemic.

So any tools that that will help connect wholesalers with their retail customers more effectively are gaining attention. OrderEase is just such a platform. It connects suppliers with retailers through online product catalogues and a centralized order hub. The aim is to facilitate faster, more accurate ordering.

In a paperless environment, the need for full order data throughout the order process is essential, says Warren Patterson, president and CEO of the Barrie, Ont.-based company. “Our aim is to make the ordering process easier for retailers and buying groups,” he explains.

OrderEase currently processes some $200 million annually in transactions through its platform. While it has specialized mainly in grocery, lawn and garden, cannabis and some LBM sectors, the company has set its sights on the home improvement industry for further expansion. “It’s a natural for us because many of the suppliers to lawn and garden and grocery also supply into home improvement.”

Through its enterprise resource planning system (ERP), OrderEase connects to wholesalers and provides their sales teams with a mobile app. That app in turn can be plugged into each retailer’s own system, where it can align with the store’s inventory—right down to the SKU number—to simplify placing and managing orders. Product information is transmitted directly into the retailer’s system, tying together order management between retailers and wholesalers.

“The retailers and buying groups are really interested in having the wholesalers’ online catalogues connected right to their POS,” says Patterson. “As a retailer, I want a single piece of technology that allows me to connect to all my vendors.”

As retailers seek to beef up their own web presence to accommodate local online orders and curbside pickups, OrderEase can integrate with an individual retailer’s inventory, something many corporate sites can’t do. The platform provides images and inventory for dealers right on their own site.

“COVID has added urgency to dealers’ quest for effective online sales and wholesales, realizing taking orders by paper are not possible during COVID,” Patterson adds.

WORLD HEADQUARTERS, Toronto — Big boxes were the hot retail format 25 years ago. At that time, Home Depot was opening a new store every 36 hours. Yup, every day and a half, another store appeared somewhere in North America.

But other companies were following suit. In Canada, Kent Building Supplies was one home improvement retailer that figured the best defence against the arrival of Home Depot was a good offence. Kent already had two giant Kent Do It Yourself Warehouse stores in its system when it announced, 25 years ago this week, that a third was on its way—this time in Dartmouth, N.S.

Kent, a division of J.D. Irving Ltd., is one of the top retail chains in Canada, according to the 2020 Hardlines Retail Report. It is also a key member of the Independent Lumber Dealers Co-operative (ILDC), whose members consist of some of the largest independent dealers in the country.

Kent’s then-general manager Stew Valcour was famous for keeping a low profile. In the Hardlines fax newsletter of July 17, 1995, he gave what would remain his most extensive interview ever for this publication: when asked for details about the format of the new store, he said, simply, “Stay tuned.”

Also that week in history: we reported that Taiga turned out annual results in 1994 with sales of almost $427 million, up a healthy 15.1 percent. Taiga had been bought up the previous year by a Malaysian conglomerate. Doug Butterworth, who was Taiga’s VP at the time, shared with Hardlines the company’s plans to expand south of the border. He said negotiations were moving slowly, but “Taiga will definitely be down there.”

Butterworth’s predictions were accurate. Today, in addition to a total of 15 DCs across Canada, up from 12 in 1995, Taiga has three DCs in the U.S., along with additional reload centres there.

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SASKATOON — Members within Federated Co-operatives are funding 17 projects this year through the Co-op Community Spaces program. The program is providing $1 million for local projects including a greenhouse to increase access to fruits and vegetables for low-income families in Nanaimo, B.C.; an animal therapy program in Lacombe, Alta.; a pump track in Regina, Sask.; and an interactive heritage education centre in Richer, Man. FCL administers the program on behalf of the more than 160 retail co-ops across Western Canada that form the Co-operative Retailing System.

SUPPLIER NEWS

WOODSTOCK, Ont. — Gillfor Distribution Inc. announced that it has entered into a multi-year partnership with LP Building Solutions for the distribution of LP’s SmartSide products and its new ExpertFinish pre-finished siding and trim products for the Manitoba and Eastern Canada markets. The distribution agreement will take effect immediately, with Gillfor supplying the market it services in Q3 for SmartSide products and Q1 of 2021 for ExpertFinish as the product makes its inaugural launch in Canada. Gillfor will supply LP’s product offering for the retail and LBM channels, as well as commercial retailers in the markets it will service.

COLLIERVILLE, Tenn. — Orgill is partnering with Zoom to integrate the video conferencing firm’s meeting technology into the platform for the Orgill e-Volution online buying event. Retailers will be able to see calendar availability for vendors, schedule meetings and initiate Zoom video conferences all within the e-Volution framework. Because the Zoom software will be integrated into the e-Volution platform, participants will be able to use the video conferencing capabilities even if they do not have their own Zoom account.

MONTREAL — ABB Installation Products, formerly Thomas & Betts, announced that, effective this month, it has partnered with LM2 Marketing for sales representation and marketing support to selected retail accounts and distributors. LM2 will represent ABB’s brands, including Iberville, Nutek and Marr in Ontario, Quebec and the Maritimes. ABB designs and manufactures products used to manage the connection, distribution and transmission of electrical power in industrial, construction and utility applications.

MONTREAL — Intertape Polymer Group saw Q2 revenues exceed expectations as consumer activity picked up amidst easing public health measures. In a preliminary estimate, the company reported revenues of $267 million, 6.8 percent above the upper range of its May estimate. In anticipation of the impact of COVID-19 on the overall economy, IPG pulled its full-year guidance in May but estimated it would post Q2 revenues between $235 million and $250 million.

BATHURST, N.B. — ThermalWood Canada is looking to expand after reaching its first North American distribution deal earlier this month. The agreement gives ThermalWood access to the Weston Forest network in Ontario. “They have access to 300 hardware stores and 14 people on the road,” ThermalWood co-owner Bob Lennon told Halifax’s Chronicle Herald.

ECONOMIC INDICATORS

Sales of existing homes in Canada rose by a further 63 percent in June, returning them to normal levels for the month—some 150 percent above where they were in April. Transactions were once again up on a monthly basis across the country. Among Canada’s largest markets, sales rose 83.8 percent in the Greater Toronto Area, 75.1 percent in Montreal, 60.3 percent in Greater Vancouver and 54.9 percent in Calgary. (Canadian Real Estate Association)

NOTED

The electric performance of Shopify’s shares has solidified the e-commerce platform’s position as Canada’s most valuable company, the Globe & Mail reports. Since early May, RBC has gained just $11 billion in market capitalization for a total value of $131 billion. By comparison, Shopify picked up $45 billion for a total of almost $166 billion. Founder Tobias Lutke is inching closer to becoming the richest Canadian, currently coming in at number three.

OVERHEARD…

“The more often the whale comes up for air, the more likely it is to get harpooned.”
—Stew Valcour (attributed), who for years was the general manager of Kent Building Supplies. This proved to be the mantra of the members of Independent Lumber Dealers Co-operative (ILDC), reflecting the low-key profile which many of them prefer to maintain.

NORWALK, Conn. & SASKATOON — Two major shows, one in Canada and one in Las Vegas, have made the decision to cancel in favour of virtual events.

Federated Co-operatives Ltd. announced it is moving its Buymart buying show online for 2020 due to ongoing travel restrictions. The annual trade show, which connects vendors with local co-operatives across Western Canada, was slated for October 18 and 19.

Then, just days later, Reed Exhibitions announced a similar move for its event, the National Hardware Show. That show, typically held each year in Las Vegas in early May, had already been postponed to the beginning of September because of the COVID-19 pandemic. Then, last week, in a statement to attendees, Reed stated that they had been closely monitoring the impacts of the pandemic on the global hardware and home improvement community and decided to make the show a virtual one. Reed says its decision was made with the safety of all involved in mind.

The decision by FCL is in line with the direction the industry is going with shows—and travel in general. An informal survey of the industry by Hardlines reveals that companies have no appetite for travel. Vendors are staying put, especially in light of the fact that the border with the U.S. remains closed. For the safety of their staff, companies are not allowing any travel to the U.S., where the COVID-19 pandemic has affected that country at a rate that is 30 times more extensive than in Canada.

On the retail side, buying teams in Canada have restricted travel both at home and abroad. Buyers are getting used to virtual meetings and head offices are not willing to risk travel, possibly for several months to come. And many vendors were emphatic about refusing to travel in the U.S.

Like Federated Co-op, and other groups ahead of them, NHS is adopting a virtual trade show platform. “Our entire team is dedicated to supporting all of our customers and partners,” says Rich Russo, industry vice president, National Hardware Show. “We are reimagining the entire physical trade show, so look forward to new initiatives, new pavilions and neighbourhoods and a complete transformation of NHS for 2021.”

Likewise, Federated Co-op will use an online platform that will allow vendors to share information, provide buying opportunities and engage local co-ops in the Co-operative Retailing System. The Buymart show is expected to return to Saskatoon as an in-person event in October 2021.

Just last week, Lowe’s Canada announced that its fall show for its RONA affiliated dealers will be held online, starting October 19. BMR Group, Home Hardware and hardware wholesaler Orgill have all made similar moves. The rulings by these companies fall in line with the sentiments of the industry in general.

NEW YORK — Lowe’s president and CEO Marvin Ellison recently discussed how the big box home improvement chain is adapting to serve customers during COVID-19, prioritize shopper safety and respond to nationwide social movements.

Ellison spoke to a virtual audience hosted by the National Retail Federation in the U.S.

In addition to how Lowe’s is responding to new employee and shopper needs during the pandemic, Ellison discussed how social justice movements across the world are impacting the home improvement chain. He spoke about growing up in rural Tennessee and later advancing to become one of only five Black CEOs of a Fortune 500 company.

Ellison recounted a lesson his father had taught him: “Sometimes, you have to decide to talk less and do more,” he said. That tenet has guided his time at Lowe’s, where executive team diversity has grown in recent years. He added that it is “mentally exhausting that in 2020, we’re still discussing racial injustice.”

The company is also giving more than $25 million in grants to small businesses owned by members of minority groups. Ellison said Lowe’s received more than 110,000 applications since the program started. The swell of applications shows there’s a true need for support at the ground level for many businesses, he added.

“That’s my challenge. Let’s stop talking. Let’s start doing,” Ellison said.

HALIFAX — Construction firms in Nova Scotia are faced with a lumber shortage during what should be their peak season, as the pandemic has driven up demand while slowing production.

“Like everything else with COVID, the plants were brought down to about 50 percent efficiency and it takes a couple months for that to trickle on down,” Scott Smith, president of the Nova Scotia Home Builders’ Association, told CBC News.

Demand has risen sharply among DIYers. Stuck at home, they are looking to fix up their living spaces in lieu of expenditures on cottages and camps and in restaurants and bars. That’s put a pinch on supply for contractors, who are trying to get larger projects done.

Kent Building Supplies sent an email last week to its sales associates advising them of the situation. “The huge sales increase has completely stripped the supply chain,” it reads in part. “There is no supply left in Atlantic Canada. Replacement from Western Canada is five to six weeks away … Costs are through the roof.”

Mary Keith, spokesperson for Kent parent J.D. Irving Ltd., said the notice applies to most of Kent’s Atlantic region stores. “We are working to resolve the supply issue of plywood and pressure treated lumber as soon as possible and appreciate the patience of our local consumers and contractors.”

Other dealers in the region are seeing shortages in a range of products related to outdoor projects—especially decks. Quoting TIMBER MART dealer Jillian Sexton, who has stores in Nova Scotia and Prince Edward Island, CTV News reported shortages of pressure-treated wood, screws and joist hangers, “all things you would use to build a deck.”

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BOUCHERVILLE, Que. — Lowe’s Canada is donating 300 portable air conditioners to the City of Toronto, in support of the city’s efforts to encourage greater social distancing among homeless residents. In order to reduce crowding in high-demand shelters, the city is offering their clients vacant public housing units. With summer settling in, these air conditioners will help provide these residents with a more comfortable living environment as they go through self-isolation.

ATLANTA — Home Depot in the U.S. has temporarily removed spooled rope from the aisles of its stores, after a string of reports from customers who found rope fashioned into nooses. “Unfortunately, we’ve had some instances where spooled rope was used to create hate symbols and we’re not going to tolerate it,” spokesperson Margaret Watters Smith said. Instead, shorter measures of pre-cut rope will be offered in plastic packaging, with store associates on hand to assist with custom lengths. Nooses have been increasingly spotted in the U.S. in the midst of backlash against the wave of protests for racial justice this year.

SUPPLIER NEWS

MONTREAL — For the second quarter ended May 31, Richelieu Hardware had consolidated sales of $248.3 million, compared to $281.1 million for the corresponding quarter of 2019, an 11.7 percent decrease. Growth of 6.6 percent during the quarter was realized through acquisitions, partially offsetting an internal decrease of 18.3 percent. Sales to hardware and home improvement retailers were $41.3 million, down 3.5 percent due to the current pandemic. Since mid-March, many of Richelieu’s DCs have been impacted, particularly in Quebec and Ontario, as well as in the Northeast and Midwest U.S. markets. At the end of June, Richelieu completed the takeover of Central Wholesale Supply, a specialty hardware distributor in Richmond, Va.

COLOGNE — With a majority of exhibitors and visitors choosing to withdraw in recent weeks, this year’s edition of spoga+gafa, which was scheduled for September 6 to 8, has been cancelled. The world’s largest lawn, garden and outdoor living show is moving to next spring and will take place from May 30 to June 1, 2021. Koelnmesse, the company that owns the show, has announced this new timeframe will be permanent, to fit better with the buying cycles for garden and outdoor products.

TORONTO — Blanco Canada is marking its 30th anniversary alongside digital audiences nationwide throughout the entire month of July. The kitchen sink and faucet maker will kick off a digital campaign showcasing fun facts, company archives, employee stories and design throwbacks from the last three decades. The company has also partnered with House & Home magazine to launch a prize-pack giveaway through to October.

ECONOMIC INDICATORS

Canadian housing starts were at a seasonally adjusted annual rate of 211,681 units in June, an increase of 8.3 percent from 195,453 units in May. The SAAR of urban starts increased by 8.7 percent in June to 196,675 units. Multiple urban starts increased by 13 percent to 154,602 units while single-detached urban starts decreased by 4.5 percent to 42,073 units. Rural starts were estimated at a seasonally adjusted annual rate of 15,006 units. (CMHC)

NOTED

The Retail Council of Canada is holding a webinar this Wednesday, July 15, with Greg Hicks, who was appointed president and CEO of Canadian Tire Corp. earlier this year. He will be in conversation with Diane Brisebois, the council’s president and CEO. Hicks has more than 20 years of retail experience in senior leadership positions, including seven years at CTC, most recently as president of Canadian Tire Retail. Click here for more info and to register.

OVERHEARD…

“Local businesses are the foundation of our community. When we shop local, we are not just giving money to a giant corporation, but we are helping people in our community. And these local businesses in turn give back to their neighbourhoods through sponsorships, fundraisers and volunteering.”
—Liz Kovach, president of the Western Retail Lumber Association. The WRLA has launched a “shop local” campaign to encourage people to support their local community by shopping at their local building supply store.

BOUCHERVILLE, Que. — Lowe’s Canada holds a Buying Show each fall to allow its RONA affiliated dealers to see what’s new for the upcoming year and make purchases, while networking with colleagues and suppliers.

Under the current pandemic, however, the retailer has decided to adapt a new event format and will meet with its dealers exclusively online this fall. Starting October 19, RONA affiliated dealers will have access to a platform developed by Lowe’s Canada, which, the company promises, will give them a completely renewed shopping experience.

The dealers will have access to a platform showcasing flagship products and new items from a range of suppliers, all while enabling dealers to interact with their representatives. To help dealers make informed choices, the Lowe’s Canada team will accompany and guide them throughout the show. As always, dealers can count on discounts, workshops and expert advice this year.

The move to a virtual event follows a trend in this industry—and universally—under the COVID-19 lockdowns. BMR Group announced a similar move just two weeks ago for its fall dealer market, moving it from early November to begin on October 5, just two weeks ahead of the RONA show. Home Hardware will host its second virtual market September 13 to 20, while hardware wholesaler Orgill will host its own online buying event from August 24 to September 4.

MEMPHIS — Orgill Inc.’s president and CEO, Boyden Moore, recently spoke with our partners at the North American Retail Hardware Association (NRHA), through its publication, Hardware Retailing, about how his company is adjusting and responding to the current conditions under COVID-19.

Moore talked about Orgill’s plans to manage its supply chain and accommodate shortages or delays. His management team, he says, has been holding daily video conference “huddles” to give updates on the safety and health of employees and to review any changes to the supply chain. They also study feedback from conversations Orgill’s sales team and senior management have had with customers.

More than 85 percent of Orgill’s employees are working from home, while the company’s 400 field sales reps are coordinating with customers via phone, email and video conferencing. “We’re also communicating often—many times each week—with our customers via email and through a resource area we’ve created on our website,” Moore says.

Moore stresses that any dealers who have questions or concerns about products or deliveries should start with their own Orgill rep. “We are fortunate to have many points of contact with our retailers. Our sales team is the best starting point for most Orgill customers, as they are closest to them and they have the most current product information from the appropriate distribution centre.”

He adds that staying in touch with vendors remains critical. “On the buying side, our merchants have been effective working with our vendors remotely. We have also created and shared documentation that supports vendors who are a part of our supply chain of ‘essential services’ and were initially asked to close by local authorities.”

Moore offers some recommendations to help retailers continue the supply chain through to their customers while keeping health and safety top of mind. “The best-practice recommendations here involve constant communication with both customers and employees. Professional customers may have specific needs as they work to complete jobs in progress, and retailers should reach out to key customers and help them plan. Retail customers need information as conditions change.”

Moore urges dealers to use timely communication channels like email and social media to stay in touch with their customers. They will want to stay informed about changing store hours, product availability, new or expanded services and safety practices. “We have found that customers appreciate the opportunity to be able to hear about these things in real time, so they can efficiently plan their time away from their homes.”

WORLD HEADQUARTERS, Toronto — This week 25 years ago the headline in Hardlines was a “Home Depot Expansion Update: Need for ‘Breathing Room.’”  And that was also the topic of Hardlines’ first appearance on radio.

The publication’s founder, Michael McLarney, was invited on CBC morning radio in Edmonton to talk about the expansion plans of Canada’s newest player on the home improvement scene. The host asked about why Home Depot had slowed its expansion in Canada. McLarney said the company was busy focusing on the U.S. market, where it had tough competition. “But they’re by no means stalling. They’ll be full steam ahead up here,” he noted.

Home Depot did face other big box competition in Canada—and Edmonton was a virtual hotbed. Revy, which was later bought by RONA, was aggressively expanding with big boxes of its own, including four in Edmonton. An upstart chain from Oregon, Eagle Home and Garden, had also opened stores there. “It’s been a laboratory, a battle ground, for big box stores,” McLarney noted.

In that week’s edition of Hardlines, the corresponding article stated that Home Depot had expanded its business in Canada by more than 55 percent in the first year after arriving here through acquisition of five Aikenhead’s stores. According to Home Depot Canada’s then-president, Stephen Bachand, “We are definitely not scaling back on our original plans to build up to 50 stores in the Canadian marketplace.”

That prediction turned out to be something of an understatement. There are currently 182 Home Depot stores across Canada.

As for our trusty editor’s on-air career, the radio gig was actually his second time in front of a microphone. The first occurred some months earlier, when a television crew from CFMT Multilingual Television, or MTV (now OMNI), arrived at his modest basement home office. The topic was the future of MAAX Bath, at the time an up-and-coming shower and bath manufacturer based in Quebec.

Eager to see this first on-air appearance, his family got to watch him two days later when the show was aired, dubbed into Mandarin for the station’s multi-cultural audience.

At Orgill, Marc Hamer has been appointed to the newly created role of EVP, chief digital and information officer. In this position, Hamer will lead the digital and data strategy, information systems, information security and all technology teams across Orgill’s distribution business, Tyndale Advisors and Central Network Retail Group.

Lowe’s Cos. has appointed Janice Dupre Little as executive vice president, human resources. She joined Lowe’s in 2017 and most recently served as senior vice president, diversity and talent management. Prior to Lowe’s, Little held senior HR roles at McKesson Corp. and Dell. She replaces Jennifer Weber, who left the company in April.

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

QUEBEC CITY — Canac has suspended online orders as a surge in demand has left it scrambling to keep shelves filled in stores. Building materials grew in popularity at the outbreak of the pandemic, and with summer arriving, customers are flocking to buy seasonal items.

BOUCHERVILLE, Que. — Lowe’s Canada has announced that its workers will continue to receive their temporary $2 hourly wage premium through July. The premium applies to full- and part-time front-line workers at corporate stores under all Lowe’s Canada banners, as well as in contact centres and supply chain facilities. While many retailers rolled out wage bonuses upon the outbreak of COVID-19, several major companies including Loblaw and Walmart announced this month that they would discontinue these as life adapts to a “new normal,” garnering criticism from labour advocates.

SEATTLE — Amazon will open its second fulfillment centre in Ottawa, with an anticipated opening date some time in 2021. The warehouse will be Amazon’s eighth in Ontario and 14th overall in Canada.

BOUCHERVILLE, Que. — Lowe’s Canada’s new distribution centre planned for the Calgary area will be the largest DC in Western Canada. According to the company, the building will have a 36-foot clear height, and be served by 74 dock doors, 406 trailer parking stalls and a pickup area for customers. Other features will include a 325,000-square-foot racked area and a 625,000-square-foot bulk storage area. The facility will also house offices—an 11,000-square-foot main office and a 7,000-square-foot warehouse office.

SUPPLIER NEWS

WINNIPEG — The Western Retail Lumber Association (WRLA) has launched a “shop local” campaign on social media and within its member stores. The public awareness campaign urges people to “build up” their local community by shopping at their local building supply store.

MONTREAL — Cobra Anchors has concluded another supply agreement with The Home Depot that will see the retail giant carry Cobra’s Parawedge line in all U.S. stores. The agreement adds to the other lines of Cobra’s hollow wall anchors already carried by Home Depot.

CORRECTION: In our story on electronic shelf labels last week, SoluM’s European head office in Germany was misidentified as its world HQ. In fact, SoluM global operations are based in Seoul, Korea. Hardlines regrets the error.

ECONOMIC INDICATORS

The total value of building permits in May bounced back 20.2 percent to $7.4 billion, following declines of 13.4 percent in March and 15.4 percent in April. This was the largest percentage increase since March 2009, and it coincided with the relaxing of COVID-19 construction restrictions in Ontario, Quebec and Prince Edward Island. The vast majority of residential gains were attributable to increases in the value of permits for single-family homes, which rose by a record 37.5 percent. (StatCan)

NOTED

Small family businesses, as well as those who employ contractors, can finally access the Canada Emergency Business Account program, thanks to new federal rules. Companies with payrolls amounting to less than $20,000 can now apply for loans of $40,000 provided that they have at least that much in eligible expenses.

OVERHEARD…

“I’m trying to find, for example, black earth. I have no more straw. There has been a tremendous appetite for gardening products and patio wood. I also have a few pieces of outdoor furniture and barbecue, but I never saw that train [of events] coming.”
—Canac President Jean Laberge, speaking to Le Journal de Montréal about the popularity of garden products at his stores, which has left shelves empty during the COVID-19 pandemic.

ST. JACOBS, Ont. — Home Hardware has named a replacement for the company’s senior hardlines VP, Joel Marks, who retired earlier this month. Rob Szekszer has been appointed vice-president, merchandise hardlines, effective today.

Szekszer joined Home Hardware as director, merchandise hardlines in September 2019. Prior to joining Home Hardware, he held VP and director roles at Canadian Tire Financial Services and Canadian Tire Retail. There, he worked in product and marketing, credit card marketing, customer acquisition and new business development.

Marks, who retired on June 12 after almost 21 years there, held the title of vice president of merchandise hardlines. While Marks held the hardlines portfolio, his counterpart on the LBM side was Marianne Thompson. As a result of Marks’s retirement, Thompson was named senior VP, merchandise for both hardlines and LBM. Although Szekszer is taking the lead role on Home’s hardlines buying team, he will report to Thompson.

“The appointment of Rob Szekszer demonstrates the expertise and deep bench of talent we continue to develop at Home Hardware, and I have complete confidence in his ability to deliver on our business and growth strategies,” says Thompson. “His passion for retail, coupled with his understanding of home improvement category management and our end-to-end business, make him well positioned to lead our hardlines teams to a strong future.”

INDIANAPOLIS — The North American Retail Hardware Association (NRHA) has announced several program introductions and enhancements designed to help encourage diversity, inclusion and sensitivity within the home improvement retailing industry.

“Whenever we see communities facing challenges, whether it is from natural disasters, pandemics or even civil unrest, it is always the independent home improvement retailers who are front and centre helping those communities rebuild,” says Bob Cutter, the NRHA’s president and CEO. “We thought that by making some simple program enhancements and changes we could help ensure that these business owners help rebuild their communities both literally and figuratively.”

To fulfil this mandate, the association will establish and maintain a scholarship for its Retail Management Certification Program designated to benefit a member of a minority group who demonstrates an interest in furthering their career in the home improvement industry. The NRHA Retail Management Certification Program is a college-level training program designed to prepare owners and high-potential employees with leadership, management and store operations training.

In addition to the scholarship, NRHA will add a culture and diversity awareness session to both the Retail Management Certification Program and the Foundations of Leadership training course.

“Since these programs are designed to help guide and educate future industry leaders, it is NRHA’s belief that this addition to the curricula will better equip future leaders to recognize issues of inequality or racism in the workplace and embrace the strengths that can come through building a diverse team,” Cutter says.

“I believe we need to hold up the values of compassion, empathy and equality for all as the foundation of how we conduct business and the principles of how we operate our association,” Cutter says. “We know that none of these actions will solve the systemic problems we are seeing in our country right now, but we want to play whatever small role we can to move our company, our members and the nation in a positive direction.”

(For more information on the NRHA or its training programs, visit nrha.org)

SPECIAL REPORT — There is perhaps no task in retail as finicky as maintaining price tags. Keeping these small pieces of paper up to date through changing seasons and promotions can be a major drain on store personnel and their time.

An alternative to analogue price tags, already well-established in Europe, has been gaining traction on this side of the Atlantic. Electronic shelf labelling (ESL) technology allows retailers to manage price tags digitally and remotely, automatically changing large numbers of smart tags with one touch.

Bruce Smith of Shelf Edge Solutions, which represents the German brand SoluM in North America, points to the high cost of labour involved in paper tagging. “The biggest reason [to adopt ESL] is labour savings—the amount of time it takes to change sign for sales,” he explains. “You have to go around to every single tag, take it off, put on a new one, and then check it. With labour costs what they are that … really has been the big driver” behind sales.

Lunedrée Benobon agrees. She oversees marketing for JRTech Solutions, which distributes the Swedish-made Pricer system in Canada. Retailers, she says, “have a waste of time with paper labels because they have to hire an employee to change the labels and to remove the labels every time they have a promotion.” With ESL, on the other hand, “you can change the prices easily and automatically.”

JRTech has an exclusive partnership with BMR Group to distribute Pricer’s infrared-based technology to all the group’s Quebec stores, and some of BMR’s Ontario network. SoluM’s clients include Loblaw Cos. in Canada and Metro AG in Germany.

In addition to cost and convenience, Smith says that clients appreciate the boost as well. “Lowe’s [in the U.S.] are buying our tags for their appliances now,” he notes. “They feel ESL helps their brand image by having a sophisticated display with not just a price tag, but all the information.”

Both Benobon and Smith stress the vitality of ESL technology to managing omnichannel integration, ever relevant as customers continue to take advantage of alternatives to in-store browsing.

With Pricer, Benobon explains, “You can manage your products in terms of click-and-collect and use an application to know the client’s online order.” Smith notes that SoluM’s near-field communication technology allows customers to scan shelf tags with their smartphones to access an online information portal including product reviews.

With many retailers still pressed to fill staff shortages, tools like electronic shelf labelling that free up valuable personnel-hours are sure to be a trend to watch.

OTTAWA — Through its ENERGY STAR program, the federal government has partnered with countless industries and companies through the years to raise awareness of energy-efficient products. Some of Canada’s top retailers, including Loblaw, Sobeys, Giant Tiger and Jean Coutu, are involved. And so are some key retailers in home improvement such as Home Hardware, Lowe’s Canada and Home Depot Canada.

The program is managed through Natural Resources Canada, which gives out its ENERGY STAR Participant awards each year. The awards recognize organizations that have demonstrated excellence in offering Canadian consumers the most energy-efficient products and technology available.

The Home Depot Canada has been a participant in the ENERGY STAR Canada program since 2001. With its own commitment to sustainability, Home Depot Canada uses the ENERGY STAR brand on its products to lend credibility to its energy-efficient products. It won the latest ENERGY STAR Canada award for Retailer of the Year. Home Depot Canada has been recognized 12 times by the program. And this year’s award marks the seventh successive Retailer of the Year win for the giant retailer.

Home Depot Canada was recognized for a range of accomplishments in 2019. These include:

• participation in the Ontario Energy Savings Rebate Program providing instant rebates on ENERGY STAR certified appliances, water heaters and smart thermostats;
• the Enbridge Smart Thermostat Program for Enbridge Gas customers that provided instant rebates on ENERGY STAR certified smart thermostats;
• Working with vendors and utility partners across Canada to increase uptake on ENERGY STAR certified products through rebate programs;
• And increasing the number of ENERGY STAR-certified products for sale in Canada by 20 percent over the previous year.

Likewise, Lowe’s Canada has deployed several programs that garnered it recognition within the program. The retailer received the 2020 ENERGY STAR Canada Special Recognition Award for its commitment to offering thousands of products with a smaller environmental footprint through its ECO program. In addition to participating in various energy savings rebate programs, Lowe’s Canada works with suppliers to increase its offering of ENERGY STAR certified products such as appliances, lighting and air conditioners.

“As part of our corporate responsibility approach, we are determined to offer even more ECO products and promote them further over the coming years,” said Jean-Sébastien Lamoureux, senior VP of public affairs, asset protection and sustainable development.

Chad Murray, president of Chad Murray Sales and Marketing, has retired after 50 years in the hardware industry. He got his start as the Ontario sales rep for Erie Industries in 1970, eventually moving up to become president of the company. In 1994, he established Chad Murray Sales and Marketing, until joining Quest Plastics (now Quest Brands). He resumed working at Chad Murray Sales until his retirement.

Morris Saffer, Chairman of Saffer Retail, is among this year’s inductees into Canada’s Marketing Hall of Legends (CMHOL). He and his fellow inductees were selected by a committee of their peers within the American Marketing Association’s Toronto chapter “as standout exemplars of the Canadian advertising and marketing industry.” Saffer founded the first advertising agency specializing in retail clients and he worked with Home Hardware Stores Ltd. for four decades. During that time, he played a key role in making Home Hardware one of the most recognizable brands in the country.

… that our annual report, the Hardlines Retail Report, includes everything you need to know about the retail home improvement industry? Newly expanded for 2020, it features the size and growth rates of the industry, by retailer, by province and by store format. Featuring industry sales data as of year-end 2019 and up-to-date analysis of marketplace trends, this incredible report is truly a marketer’s dream! Click here for more details and ordering information.

QUEBEC CITY — Canac this month kicked off construction of a new retail store in La Prairie, Que., on the south shore of Montreal. The location, which will be Canac’s 31st, will consist of a retail space of 40,079 square feet and a 23,792-square-foot warehouse. The result of a $10 million investment, it will create 125 new jobs. Construction will continue until December.

BOUCHERVILLE, Que. — BMR Group has announced that it will devote close to 95 percent of its media investments over the next 12 months to local media. The media plan for the next year will be based on BMR Group’s existing strategy for digital platforms and traditional media. It will be developed through partnerships with local media players such as Transcontinental and Cogeco, local radio stations and Quebecor.

BOUCHERVILLE, Que. — Almost two dozen Lowe’s and RONA corporate stores in Calgary and Edmonton came together to present the Alberta Children’s Hospital Foundation and Edmonton’s Food Bank with a combined donation of $23,000. In addition, the corporate stores on Montreal’s South Shore and West Island donated $15,000 to two local food banks, Moisson Rive-Sud and The Depot Community Food Centre.

SUPPLIER NEWS

COLOGNE, Germany — The organizers of the giant lawn and garden and outdoor show, spoga+gafa, have issued an update to confirm its next edition will take place in Cologne from September 6 to 8. Trade fairs and conventions are now permitted in the region but must employ sanitary practices. At the same time, European borders are scheduled to reopen this month. Last year’s show welcomed 40,000 visitors to Koelnmesse’s 2.5 million-square-foot exhibition. (For more information on the show, click here.)

OTTAWA — ENERGY STAR Canada Awards went this year to some vendors serving home improvement retailers. All Weather Windows won in the category of Manufacturer of the Year, Windows and Doors. The privately-owned window and door manufacturer has centres in seven cities, with almost 800 dealers across Western Canada and a manufacturing plant in Edmonton. This is All Weather Windows’ sixth ENERGY STAR Canada award. Montréal-based L’Image Home Products won in the category of Manufacturer of the Year, Lighting, for working to promote ENERGY STAR while raising the bar on product innovation and inventive promotion techniques. This is the company’s fourth award.

Retail sales fell 26.4 percent in April to $34.7 billion and have fallen by 33.6 percent since physical distancing measures were implemented in mid-March. For the first time since May 1993, sales were down in all 11 retail sub-sectors. LBM and garden suppliers saw a drop of 15.7 percent from March and 10.8 percent from last April, with total sales of $2.8 million. Sales were down in every province for the second consecutive month in April, with both monthly declines largely attributable to the motor vehicle and parts dealers and food and beverage stores. (StatCan)

Sales of existing U.S. homes plunged by 26.6 percent annually, the largest annual decline since 1982. The seasonally adjusted annual rate of 3.91 million units marked a 9.7 percent decline from April. The figures represent sales closed in March and April as lockdowns went into effect across the U.S. (National Association of Realtors)

NOTED

A survey by web hosting firm GoDaddy shows 73 percent of Canadian small business owners feel prepared to reopen to the public. Businesses with fewer than five employees are more likely to feel very prepared to reopen their business safely, as are those in Quebec, where 63 percent of respondents answered in the affirmative. Just nine percent say they are very unprepared to reopen their business safely.

OVERHEARD…

“As delighted as we are that most of the comments we’ve been getting from exhibitors and visitors have been confirmatory, we take their concerns very seriously, especially the uncertainty felt by our partners from overseas.”
—Business Division Director Catja Caspary, with Stefan Lohrberg, director of spoga+gafa, the lawn and garden trade fair, in a statement to exhibitors and visitors confirming management’s decision to go ahead with the event scheduled for September 6 to 8, 2020 in Cologne.

BOUCHERVILLE, Que. — BMR Group is the latest company to fall in line with a virtual alternative to its buying show. The event, historically held in Quebec City over the first week of November, is adopting a new format and a new date to accommodate conditions of the current pandemic.

A virtual event will now take place the week of October 5.

“There is no way to know what public health recommendations will look like by November, but right now it seems unlikely that we will be allowed to hold an event of nearly 1,500 people in one location,” the company leaders wrote in a letter to dealers. “As these sorts of changes tend to have ripple effects, we have also decided to hold the event earlier in the year.”

Another reason for moving the date up is to make way for the roll-out of a new enterprise resource planning (ERP) system. That platform, which will help the company manage day-to-day business activities with its member-dealers, will be deployed throughout the month of November.

In acknowledging the virtual format for its show, BMR is also considering it an opportunity for innovation. “We may be going virtual, but BMR Group plans to make this trade show as unifying and exciting as ever,” the letter continues.

“It remains a chance for you to find a wealth of useful information to help you plan your purchases for the next year. We have surrounded ourselves with partners who have great expertise in holding virtual events, so we are confident that ours will go smoothly and be enjoyed by all.”

BMR is following a trend established by other retail groups and wholesalers. Home Hardware will host its second virtual market September 13 to 20, while Ace Hardware in the U.S. has announced the cancellation of its Fall Convention in Orlando, Fla., in favour of an online event from September 9 to 12.

COLOGNE — What is DIY? Is it about fixing your roof, painting your bedroom or mowing the lawn? On the surface, it helps you perform very concrete actions that are necessary for the upkeep and safety of your home. But it is not just about that. It cannot be. Our fast pace of life has arguably made us lose sight of the much greater purpose it serves—helping you improve, create and love your home.

These are some of the notions posited by the European DIY Retail Association/Global Home Improvement Network. The organization, which represents 214 retail home improvement companies around the world, has issued an extended statement. Entitled “Rediscovering Your Home in a Pandemic,” the tract stresses that DIY projects in the home fulfil a human need.

“Finding ourselves under lockdown has also brought something less expected with it by making us rediscover our home’s intrinsic value and the need to look after it,” the statement reads. “Helping you bring your DIY projects to life is the sole purpose of the home improvement industry.”

The organization argues that the COVID-19 outbreak, with social distancing measures and lockdowns, has forced people to rethink what home really means. By April, almost half of humanity was in lockdown. And, says the tract, “as people’s financial situation may deteriorate, carrying out DIY projects could be a more affordable option.” Becoming a DIYer will help people fulfil their needs.

Under the lockdown, people have been forced to cancel trips and curtail outdoor activities. The focus is now on the space we live in. “This rediscovery has triggered in us the desire to take greater care of our homes,” the manifesto continues. But satisfaction is not measured solely in the concrete results of completing projects around the home. The opportunity to acquire and solidify skills helps strengthen self-esteem. “How accomplished we feel when we make something with our own hands!”

Hardware and home improvement retailers play a key role in helping people improve and appreciate their homes. “Aware of our mission, we remain in constant evolution to meet consumers’ expectations and desires and will continue to do so.”

WINNIPEG — A recent economic impact report shows the lumber and building materials industry provides more value and has a broader economic footprint than most other retail sectors in the Canadian economy.

If every household in the Prairie provinces spent, on average, an additional $500 on repair construction activities, it would boost provincial gross domestic product (GDP) by $1.5 billion, generate $938 million in labour income and support 14,800 jobs.

“The lumber and building materials industry is uniquely positioned to help rebuild the Canadian economy after the COVID-19 crisis,” says Liz Kovach, president of the Western Retail Lumber Association (WRLA), which commissioned the report. “A boost in sales in the building supply sector generates far more economic value in Canada compared to a boost in sales in the automobile, appliances, communications equipment or clothing industries, among other retail sectors.”

The report illustrates the wide-ranging impact of the LBM industry on the Prairies, where more than 1,300 stores across 330 communities employ an estimated 36,000 staff—and generated $7.2 billion in sales in 2019.

According to the report, the sector boosted provincial GDP by $2.9 billion in 2001, labour income by more than $1.6 billion and tax revenue to governments of an estimated $559 million, just from operations. Further, the labour income generated by the building supplies dealers sector boosted household spending by an estimated $1.16 billion, supporting businesses large and small in a broad range of industry sectors.

To further stimulate the economy and the industry, WRLA will be launching a “support local” campaign on social media that asks the public to shop at their local building supply store. The organization is also urging the federal and provincial governments to enact home renovation and eco-renovation tax credits to encourage spending and retrofits of existing buildings to reduce their carbon footprints.

“As we emerge from the pandemic, the LBM industry will be a major player in recovery and we can contribute exponentially more if the governments introduce the renovation tax credits,” says Kovach.

“We want to see all Canadians, as much as they can, do their part to help our country bounce back, and these credits will encourage homeowners to spend money to upgrade their homes and spend money to support the LBM industry, and subsequently, the provincial and national economies.”

SPECIAL REPORT — A British Columbia-based specialty chain made the news in Hardlines 25 years ago this week.

Windsor Plywood, based in Surrey, B.C., was enjoying some solid growth in the spring of 1995. Hardlines reported the opening of a new store in Whistler, the resort community northwest of Vancouver. Windsor Plywood was overseen in those days by Operations Manager Al Wightman, who was a regular contact for the fledgling Hardlines newsletter during its initial years of operation. It was the chain’s 67th location.

But that expansion, on the site of a former independent dealer, Garibaldi Lumber, mirrored activity across the border as well. A few months earlier, Windsor Plywood had opened its fourth store in Washington state.

The stores are full-service home centres, but they are known for their wood products. Assortments range from mouldings and interior stair components to hardwood flooring and specialty live-edge hardwoods. The company, which started in the early 1950s, began franchising in 1969 and prides itself on having outlets that are locally owned and operated.

Wightman’s operations role is now held by Curt Crego, who is also the point man for franchising. Today, Windsor Plywood has 58 stores, according to its website. More than half of those are in its home province of B.C., but they are spread across the West all the way to the Lakehead.

And, yes, there are still four stores in Washington state.

Blanco North America has announced changes to its executive leadership following the promotion of Garth Wallin to the position of CEO and president. Wallin had previously spent six years as president of Blanco Canada. Wendy McPherson has been named VP, sales and marketing – Canada. Jeremy Cressman has been named VP sales and marketing – USA. Edyta Drutis, director, brand and communications for North America, was formerly Blanco’s director of marketing. Tim Maicher, a 12-year veteran of the company, is now director and head of product management – North America. Mike DiFranco, who joined Blanco 17 years ago, has been named SVP finance and administration – North America. Jake MacDonald, newly appointed director, quality – North America, began his career at BLANCO Canada in 2006 and was most recently senior quality and product manager.

… that every year, Hardlines puts together a 200-slide PowerPoint analysing the Canadian home improvement marketplace? We measure the size of the industry, examine the winning strategies of the country’s top retailers and break out market share by retailer and province. The Hardlines Retail Report will be available next month. You can preorder your copy here and get front-of-the-line access to this invaluable report!

BOUCHERVILLE, Que. — For the eighth time, Lowe’s Canada has received a Leader in Sustainability award from non-profit Call2Recycle in recognition of its commitment to battery recycling. In 2019, 116,000 kg of batteries were recovered thanks to the recovery units installed in Lowe’s, RONA and Reno-Depot corporate and affiliated stores across Canada.

OAK BROOK, Ill. — Ace Hardware in the U.S. has announced the cancellation of its 2020 Fall Convention in Orlando, Fla., planned for October 20 to 22. It is being replaced by an online event from September 9 to 12. Earlier this year, the co-op also cancelled its spring convention in favour of a virtual platform.

SUPPLIER NEWS

GUANGZHOU, China — The 127th China Import and Export Fair (Canton Fair) has kicked off with the first virtual installment of its event. Nearly 26,000 companies gathered with China’s Premier Li Keqiang attending the virtual opening ceremony and remotely touring the online exhibition halls. Exhibitors have arranged round-the-clock live streams for different time zones and have introduced products according to customer segments.

ECONOMIC INDICATORS

Sales of existing Canadian homes rebounded by a record 56.9 percent in May 2020. The May gain represented a return of only one-third of the activity lost between February and April, and the May 2020 sales figure was still the lowest level for that month since the mid-1990s. Actual (not seasonally adjusted) sales activity was still running 39.8 percent below last May. (Canadian Real Estate Association)

U.S. housing starts rose by 4.3 percent in May to an annualized pace of 974,000 units. Most of the gain came from multi-family dwellings, with single-family homes edging up just 0.1 percent. Building permits rose by 14.4 percent to 1.22 million. (U.S. Census Bureau)

U.S. retail sales in May rose by 17.7 percent from April, reversing April’s 14.7 percent decline. Gains were seen across categories. Nevertheless, sales remained 6.1 percent below their May 2019 level. (U.S. Commerce Dept.)

NOTED

“In Conversation with Retail Leaders in Canada” is a new online series by the Retail Council of Canada featuring in-depth conversations with Canada’s top retail leaders and industry insiders. It’s hosted by RCC President and CEO Diane J. Brisebois. The next one features Haio Barbeito, president and CEO of Walmart Canada, June 24 from 4 p.m. to 5 p.m. ET. Click here for more info and to register!

ST. JACOBS, Ont. — The announced retirement of merchandising executive Joel Marks continues a trend of change at Home Hardware Stores Ltd. Marks is retiring as vice president of merchandise hardlines after almost 21 years there. Senior LBM merchant Marianne Thompson will step in to handle his role.

“Joel has played a key role on our leadership team since his appointment to vice president in 2015, bringing almost 39 years of experience in home improvement retailing,” said Kevin Macnab, Home Hardware’s CEO and president.

Marks was merchandising director for hardlines at Beaver Lumber in 1999 when that company was acquired by Home Hardware. Home took over Beaver Lumber in the fall of that year and left it to run separately for several months. During that time, Marks was appointed Beaver’s director of merchandising, with all product managers reporting to him.

Over the next year, the Beaver business—and its head offices—were rolled into Home Hardware’s operations in St. Jacobs, Ont. There, Marks worked with Ray Gabel, Home’s legendary senior merchant, until 2015, when Marks took the lead merchandising role from Gabel. As VP merchandise, Marks led the entire buying team, while Gabel took on a new role as senior merchandise advisor, also reporting to Marks.

As a result of Marks’s retirement, Home has named Thompson as senior VP, merchandise, effective June 15. She was formerly VP merchandise for LBM. In this expanded role, she will oversee Home’s hardware merchandise team, in addition to her current LBM portfolio.

The move recalls the doubling up of roles that Marks himself undertook in 2015. He looked after both the LBM and hardware sides of the business until Thompson joined Home Hardware in 2019. She came over from the vendor side, having worked previously as senior vice president of North America sales for JELD-WEN.

The process to identify a successor for Marks is currently underway. Marks continues to work with Thompson on the transition following his retirement on June 12.

MEMPHIS — Following the announcement that Orgill, Inc. would move its fall dealer buying market online, the hardware wholesaler has released new details on how the virtual event will be conducted. It’s got a new name, for starters, and a new timeline.

The e-Volution Fall Online Buying Event will be more extended than its live counterpart. It will take place over two weeks, from August 24 to September 4. During that time, retailers will be able to access the event through Orgill.ca (or Orgill.com in the U.S.) to browse buying opportunities like they would at a live event. These include warehouse items and pallet specials, Door Buster Booking, drop-ship event specials from Orgill vendors and a Fall Spotlight area.

“We know there is no way for us to replicate the entire experience of attending our Dealer Market in person in any kind of virtual way,” says Boyden Moore, Orgill’s president and CEO. “In talking with many of our customers about this, we challenged our team to develop an online buying event that could efficiently deliver the buying opportunities for which our dealer markets are so well known.”

Recognizing the importance of networking at a trade show, Orgill is working with its vendors to set up “online booths” whereby they can arrange appointments with specific retailers.

“This new technology is going to make it easy for our customers to tap into all the buying opportunities they have come to expect from our Dealer Markets, but in a more deliberative fashion—and while not having to travel or leave their businesses,” says Jeff Curler, Orgill’s senior vice president of purchasing.

Orgill will use its field sales team of more than 400 sales representatives to help ensure that retailers are prepared to get the most out of the event. “During the two weeks prior to the actual Online Buying Event, we have another two-week window where our sales team will be helping retailers prepare for the e-Volution buying window,” Moore says.

During this preparation period, Orgill’s sales representatives will be able to help customers identify buying specials, set appointments with vendors and prepare their plans for when the buying window opens.

BOUCHERVILLE, Que. — Lowe’s Canada has unveiled plans to open a giant distribution centre in the greater Calgary area. The facility, which will be 1.23 million square feet in size, is expected to open in the fall of 2021.

According to Lowe’s Canada, the project is part of its plans to optimize its distribution network to manage growth from both in-store and online business. That includes the buyback of its head office in Boucherville, Que.

The DC will become part of a network supplying more than 470 corporate and affiliated stores under Lowe’s Canada’s different banners. Calgary-based Highfield Investment Group, which manages residential and commercial real estate, has entered into a definitive agreement for the construction of the new DC in the High Plains Industrial Park, in Rocky View County northeast of Calgary. The area is considered a hub in the West for distribution centres and e-commerce fulfillment facilities. The Lowe’s facility will reportedly be the largest leased DC in Western Canada, representing a total joint investment of more than $120 million. Construction is slated to begin this month.

The facility will consolidate the capacity of several existing Lowe’s Canada satellite warehouses and regional distribution centres located in the Calgary market. The retailer currently operates four DCs in the Calgary area: one main DC located at 2015, 60 Street SE in Calgary, and three satellite centres that are used for handling big and bulky items.

The existing Calgary DCs serve both Lowe’s and RONA stores, including RONA affiliated dealer stores. However, the Lowe’s selection moving through these sites is limited. The new, built-to-suit facility will consolidate the three satellite DCs, while providing additional capacity for future growth.

The 60 Street SE distribution centre will not be impacted by this project and will remain in operation. It will be used to manage smaller units and case pick assortments. “Overall, our distribution network capacity will be significantly enhanced, which will allow us to serve more efficiently our corporate and affiliated stores, as well as our customers in the Western Canada region,” says Valérie Gonzalo, a spokesperson for Lowe’s Canada.

The new facility is expected to significantly increase the product selection available for rapid deployment to both RONA and Lowe’s stores in Western Canada.

“This new distribution centre will allow us to substantially enhance our distribution network capacity and serve our Lowe’s and RONA corporate stores and customers, as well as our RONA affiliated dealers, more efficiently throughout Western Canada,” said Gregor Stuart, senior vice-president, supply chain at Lowe’s Canada.

Even Alberta Premier Jason Kenney weighed in. “This is great news for Alberta. The construction of the new Lowe’s Canada distribution centre will create jobs for Albertans when they are needed most,” he said, adding that the project “demonstrates a vote of confidence in our province’s future.”

The consolidation of the Western DCs is another move toward Lowe’s Canada taking greater control of its supply chain. At the end of April, the company acquired its Boucherville head office and distribution centre.

“It is yet further evidence of Lowe’s Canada’s commitment to always better serving our Canadian customers,” Stuart added.

MOORESVILLE, N.C. — Industry leaders were among those responding to the outcry against incidents of police brutality in the U.S. as well as the outbreak of violence during protests in recent days.

“As the father of a young black male, I can only imagine their pain [and] emptiness,” Lowe’s CEO Marvin Ellison tweeted in reference to the families of victims of police violence.

Arthur Blank, co-founder of Home Depot and owner of the Atlanta Falcons, issued a lengthy statement expressing his disagreement with damage to business properties while affirming that “more must be done to address systemic racism.” Blank has drawn unfavourable attention to his former company for his support of U.S. President Trump. Home Depot, Lowe’s and Walmart stores in various U.S. cities were among those targeted in the riots.

Current Home Depot CEO Craig Menear has weighed in as well, though without the qualifications of the company’s founder. Announcing that Home Depot is contributing $1 million to the Lawyers Committee for Civil Rights Under Law, Menear cited “the senseless killing of George Floyd, Ahmaud Arbery and other unarmed black men and women in our country.”

Going a step further, Lowe’s Cos. announced late last month that it is distributing $25 million in grants to small- and medium-sized businesses owned by members of visible minorities as they navigate reopening.

Ellison, who is the first African American executive to head up two Fortune 500 companies successively (he was previously chairman and CEO at JCPenney), told CNBC that “we just want to continue to not only run a good business but also be a great corporate citizen in all of the communities that we operate in.” The grants are in addition to another $25 million already earmarked for pandemic aid, including $10 million for the purchase of personal protective equipment.

A leadership transition has been put in place at Taiga Building Products. Russell Permann will be appointed co-CEO, effective January 1, 2021. He is currently Taiga’s COO and EVP Operations. Trent Balog, Taiga’s current CEO and president, will step down on December 31 and serve as co-CEO alongside Permann for another year. Effective January 1, 2022, Permann will take over as Taiga’s sole CEO. After that time, Balog, who has been with the company for 26 years, will remain involved in a consulting role for a two-year period.

At Marwood Ltd., Peter Rempel is retiring from his position in technical sales at its Cape Cod Siding division after 20 years with the company. Rempel got his start in the building industry at the age of 13 when he started working for his father’s construction company. His background includes working for MacMillan Bloedel, Goodfellow and Weyerhaueser.

… that we’ve been working hard to ensure that everyone stays connected during the worst of the COVID-19 crisis? Now we ask for your support in return. If you’ve been receiving Hardlines at no charge during this time, this is your last free issue. But we want you to stay informed. Please contact Michelle Porter to subscribe by this coming Wednesday to continue receiving Hardlines without interruption! Thank you!

MISSISSAUGA, Ont. — Castle Building Centres’ newest member dealer is HBM Metal Roofing and Trim in Havelock, Ont., some 40 kilometres outside Peterborough. Founders Tom Main and Frank Nunes have been in the building industry for more than 40 years. Main’s dealings with home improvement dealers have brought him into contact with several Castle members, so he looked to that group when striking out with his own venture. “What I learned over the years from the many Castle dealers I connected with was that store owners were the decision makers at Castle,” he said. “Their fellowship was genuine, and Castle’s family-based values really stood out to me.”

BOUCHERVILLE, Que. — The 14 Lowe’s and RONA corporate stores in the Greater Toronto Area have joined together to make a $14,000 contribution to William Osler Health System Foundation. The bequest will help the foundation purchase medical equipment, including ventilators and vital signs monitors, needed at its three hospitals as they respond to the ongoing public health crisis.

MONTREAL — Dollarama reported a two percent rise in first-quarter sales to $844.8 million, from $828 million. The increase was attributed to the growth in the total number of stores over the past 12 months and to modest comparable-store sales growth, partially offset by a drop in store traffic and demand for some products. Comp sales, excluding temporarily closed stores, rose 0.7 percent in the quarter. Net earnings fell to $86.1 million from $103.5 million.

SUPPLIER NEWS

VANCOUVER — CanWel Building Materials has entered into a multi-year partnership to distribute CertainTeed Insulation’s glass mineral wool products to the LBM and OEM channels across Canada. CanWel’s national stocking and LTL infrastructure, supported by its logistics and sales services, will supply CertainTeed products to Canadian dealers.

FORT WORTH, Tex. — As part of the settlement of its intellectual property suit against Prosperity Computer Solutions, ECI Software will acquire Prosperity’s assets. ECI offers industry-specific software including POS and enterprise resource planning systems. It owns a number of brands across a variety of categories, including Spruce and RockSolid MAX in the home and building supply category. Prosperity will become part of ECI’s LBM and hardlines (LBMH) Group.

WINNIPEG — The Western Retail Lumber Association has announced the name change of its Buying Show to the WRLA Building & Hardware Showcase. The new name reflects the evolution of the show and of the WRLA’s member businesses, and the goals of attendees. The event will be held January 21 and 22, 2021 in Winnipeg.

ST. THOMAS, Ont. — North Star Windows & Doors has shifted production processes to include the manufacture of personal protection equipment. The company, itself designated an essential business, is partnering with vendors to design and source the materials required to produce protective face shields for front-line workers.

ECONOMIC INDICATORS

The seasonally adjusted annual rate of housing starts for all areas in Canada, excluding Quebec, fell by 20.4 percent in May from April. The SAAR of urban starts decreased by 21.6 percent in May. Multiple urban starts decreased by 27.2 percent while single-detached urban starts decreased by 3.9 percent. Rural starts were estimated at a SAAR of 7,772. Data from Quebec were excluded for the sake of an accurate comparison with the data for April, when construction was suspended in the province for most of the month. (CMHC)

NOTED

TORONTO — The Canadian Hardware & Housewares Manufacturers Association offers a scholarship program to help offset the cost of post-secondary education for children of its members. The student’s parent or guardian must be an active full-time employee with at least one year’s seniority with the CHHMA or a CHHMA member company. For info on past recipients or to apply, click here.

OVERHEARD…

“The company had the opportunity to either renew the lease or exercise its option to purchase pursuant to terms and conditions set at the time of the signing of the lease. It decided to exercise its option to purchase, since it is in Boucherville to stay.”
—Valérie Gonzalo, spokesperson for Lowe’s Canada, on the company’s purchase of its head office and distribution centre after the site’s 20-year lease ran out last year.

BRAMPTON, Ont. — How do you keep track of inventory when it’s all donated, and much of it is one-off or one of a kind? That’s the challenge that confronted Rob Lee as he tried to move his stores’ sales online.

Lee is the vice president of retail operations for Habitat for Humanity’s ReStores in the Greater Toronto Area. It’s Habitat’s largest ReStore network, with 13 locations stretching from the inner city to its surrounding communities such as Markham and Vaughan.

Lee says the move to an online purchasing function had been in the works for a couple of years, but the advent of the COVID-19 crisis and the need for non-contact retail accelerated the process.

Products for the ReStores range from full kitchen cabinet sets supplied by contractors doing tear-outs for new renovations to myriad items from suppliers and retailers happy to get rid of overstock or slow-moving merchandise. The money raised through the ReStores goes toward Habitat’s core mandate: to build and arrange financing of homes for those who otherwise couldn’t afford them.

That means inventory is different in every store—and changes constantly. Keeping track of what goes into inventory, and what needs to come off once it’s purchased, posed a huge challenge for Lee and his team.

But that system is now live. Staff and volunteers take photographs of the products and post them as they come into the store. The online purchasing system allows shoppers to view products remotely or right in the store, then choose and pay for them over the phone or through contactless checkout with a staff member in person.

“And once it’s paid for, you get an email saying the product has been shipped. So, as soon as you purchase something, it comes offline,” Lee says. “It’s all part of the system.”

The stores now have 1,700-plus products online and Lee expects that number to exceed 5,000 by year’s end.

Everyone is now being trained in e-commerce, he adds. “It’s actually part of the sales process.” The unique needs of the ReStores were met using a POS system by Lightspeed. “It’s an out-of-the-box system. We didn’t customize anything.”

As the stores have gradually been reopening, six of the 13 outlets have had the system installed. On May 26, four of the remaining stores reopened with the system as well. Lee says the company’s efforts will continue to be of use even after the pandemic ends. “I think it’s going to add to our business in the long term. But even if there’s something like a second wave, we’ll still be able to deal with it in the future.”

SAULT STE. MARIE, Ont. — While big players like Home Hardware and Orgill have made news by moving their shows to virtual platforms, even independents are trying them out in their local markets.

When the chamber of commerce in Sault Ste. Marie, in northern Ontario, moved its spring home show online, Lyons TIMBER MART jumped aboard. The “We Are The Soo Home Show,” which ran from May 22 to June 5, was held through a partnership with a local news site, SooToday.com. The show hosted local vendors representing electrical and plumbing services, home furnishings, window and door installation, photography, farming, HVAC and general building products and services. 

The virtual show let consumers “walk” the show and visit different websites linked to the virtual show platform and leave comments. Lyons TIMBER MART offered the chance to win a $200 gift card. Scott Beaumont, president and general manager of Lyons TIMBER MART, which has three locations, saw the virtual show as a way to connect with potential customers who may be doing more work.

With a participation fee of $1,000, Beaumont was sceptical of just how effective the promotion would be, particularly because his company does so much on its own through social media to build contacts. Nevertheless, he felt it was a good way to support local business.

His hunch paid off. Nearing the end of the two-week show, he received a message from the organizers informing him that he’d received 2,150 entries to the draw, representing solid leads. And 797 people opted in to receive future email promotions.

“The goal is to try and generate leads for the stores from customers who are interested in a home project this season,” he says. He adds that he’s encouraged by how many people appear to be eager to undertake home projects.

CHICAGO — The Home Improvement eRetailer Summit has been rescheduled to March 7 to 9, 2021. It will remain at the Aloft Chicago Downtown River North Hotel in Chicago. The Summit was originally scheduled for October, but it was moved due to the travel and public health uncertainties created by the spread of COVID-19.

The Home Improvement eRetailer Summit is a face-to-face North American event that focuses on home improvement e-commerce through networking, education and one-on-one meetings. It’s designed for all types of retailers, manufacturers, distributors and industry professionals who are interested in gaining intelligence and insights on how to optimize the internet as a distribution channel to sell more home improvement products.

“With the acceptance and expansion of e-commerce, the Summit is more relevant than ever,” says Sonya Ruff Jarvis, the event’s founder. “Nowhere else will online retailers with a focus on hardware and home improvement products have access to knowledgeable peers that the Summit affords.”

The COVID-19 crisis has served to accelerate online sales, which pre-pandemic had already been steadily climbing as a percentage of total retail volume. In fact, digital commerce has grown by 20 percent in the first quarter of this year, according to the Salesforce Shopping Index, which analyzes the activity of one billion consumers worldwide.

Ruff Jarvis works closely with an advisory council of major online retailers to shape the event, which is now in its fifth year. What advisory council member Asa Farquhar, VP for the online retailer Spreetail, especially likes about the Summit—and what separates it from other industry events—is “the intimate environment and its specialized nature.”

The shift in dates allows the Summit to honour its mission to invite leading online retailers, suppliers and technology solution providers to gather face-to-face for meaningful conversations, educational sessions and reciprocal pre-scheduled meetings, all focused on the hardware and home improvement industry.

(To request your invitation to attend the Summit, or for more information about the event, please contact Sonya Ruff Jarvis, founder at sruffjarvis@eretailersummit.com,
or at 203-295-3385.)

SPECIAL REPORT — Before Ace Canada, True Value was the banner of choice for small independents across Canada, especially in the West. And before it was called True Value, the company was known by the name of the hardware wholesaler that had established the banner in the U.S.: Cotter & Co.

Twenty-five years ago here in Canada, Cotter Canada Hardware and Variety Co., based in Winnipeg, managed the True Value hardware banner. It also had something called V&S Variety, a junior department store concept that would, within a few short years, become a victim of Walmart’s expansion into small-town North America.

Cotter itself would end up exiting Canada in 2001. But the brand would continue under a license agreement, through TruServ Canada, to serve as many as 600 dealers at one time during the early part of the century.

The June 5, 1995 edition of Hardlines reported that Cotter Canada had adopted the parent company’s “Just Ask Rentals” program. The banner had already signed two dealers to the program, with another dozen or so expressing interest. “It includes everything from picnic tables and tents to jack hammers and disco balls,” said Wilf Gerhardt, then-projects manager Cotter Canada. Gerhardt would remain with True Value, through its various incarnations, for 43 years. He retired in 2013.

The article went on to explain that Cotter had already signed 52 new stores as members, including 10 Castle dealers who used the program to beef up their hardware assortments.

Also in that week’s edition: Sexton Group marked its 10th year, with strong growth prospects ahead. “New dealer growth is up, and as of today, we’re now at 223 members,” reported Bob Mondy, Sexton’s general manager at the time. Steve Buckle took over at Sexton in 2008, with Mondy staying on for two more years to work on special projects. Mondy passed away just five months before TruServ’s Gerhardt retired. 

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MINNEAPOLIS — Industry leaders were among those responding to recent incidents of police brutality in the U.S. as well as the outbreak of violence during ongoing protests. “As the father of a young black male, I can only imagine their pain [and] emptiness,” Lowe’s CEO Marvin Ellison tweeted in reference to the families of victims of police violence. Home Depot CEO Craig Menear announced the company would contribute $1 million to the Lawyers Committee for Civil Rights Under Law, declaiming “the senseless killing of George Floyd, Ahmaud Arbery and other unarmed black men and women in our country.”

VAUGHAN, Ont. — Kingdon TIMBER MART, which has served Lakefield, Ont., since 1927, has moved to a new location just west of the town. Owners Don and Kevin Dyck and Dave Breukelaar have opened the new store with appropriate hygiene protocols in place. The 50,000-square-foot building sits on a 23-acre lot. Kingdon’s other location in Peterborough continues operations.

BOUCHERVILLE, Que. — Since it began charging customers for plastic bags at its corporate stores in 2018, Lowe’s Canada has managed to reduce the use of plastic bags by 58 percent, or about 10 million bags. All profits from plastic-bag charges are donated to the Nature Conservancy of Canada. Between June 2018 and December 2019, these profits amounted to more than $125,000.

INDIANAPOLIS — The North American Retail Hardware Association has unveiled its 2020 Young Retailer of the Year honourees. The seven accolades are distributed in three categories: Under $2 Million in Annual Sales, Over $2 Million and Multiple Stores. The last category includes one Canadian laureate. Ryan Buck is the owner of two Nova Scotia Home Hardware dealerships: Buck’s Home Building Centre in Bridgewater and New Germany Home Hardware Building Centre.

MARKHAM, Ont. — Habitat for Humanity’s ReStores has built its largest store yet in the Greater Toronto Area. The 16,000-square-foot outlet will open on June 12 in Etobicoke, in Toronto’s west end. It replaces a 6,500-square-foot store that has been in the area since 2012. Habitat has 13 locations in the GTA.

ISSAQUAH, Wash. — Costco’s Q3 net sales increased 7.3 percent to $36.45 billion, compared to $33.96 billion last year. Comp sales in Canada declined by 2.5 percent but rose three percent on an adjusted basis. In a bid to entice customers, the company also announced it will reopen most of its remaining food courts by mid-June as well as starting a “slow roll-out” of in-store food samples.

SUPPLIER NEWS

SURREY, B.C. — The Building Supply Industry Association of B.C. has a cohort set to graduate in a training program aimed at helping people overcome barriers to entering the industry. The building supply warehouse and distribution certificate program is six weeks in duration. The first 10 students are set to graduate this week. Three more classes are slated for summer and fall both at the Surrey office and in Victoria.

ECONOMIC INDICATORS

Total investment in building construction decreased 3.6 percent to $15.4 billion in March, with declines in both residential and non-residential investment, down 3.3 percent and 4.3 percent respectively. Construction in March was negatively affected by COVID-19 restrictions, especially in Quebec which shut down all non-essential building construction on March 25. However, residential investment in the first quarter over Q4 2019 increased by 0.8 percent. Non-residential investment decreased in March by 4.3 percent, but was up quarter over quarter, by 1.2 percent. (StatCan)

OVERHEARD…

“Surviving retailers will need to be more nimble. We’re not looking to go back to where we were. We’re not looking to go back to ‘normal.’ I’m excited to see what will happen at retail.”
—Rob Lee, VP of retail operations for Habitat for Humanity’s GTA ReStores.

ST. JACOBS, Ont. — It’s considered the largest hardware show in Canada and it’s now online. Home Hardware’s Spring Market, typically held in St. Jacobs, Ont., in April, ended up going virtual. Now, the company has confirmed its Fall Market will follow suit.

President and CEO Kevin Macnab said he was “pleased with the success” of the first event, which the company says attracted some 3,500 participants electronically. “From delivering presentations in a virtual auditorium to engaging with our supplier-partners in a virtual trade show,” Macnab said, “we are able to offer our dealers a quality market experience, even in these unprecedented times.”

The Fall Dealer Market will run September 13 to 20.

Home Hardware is not alone in reconsidering the logistics of bringing large numbers of people together amidst the COVID-19 crisis. Another major wholesaler that has shifted to a virtual buying show is Orgill, as the safety of delegates and exhibitors alike remains a priority for the show organizers. “There were a number of factors that led to this decision,” said Boyden Moore, Orgill’s president and CEO, “including an abundance of caution as it relates to the safety of our employees, customers and vendors, as well as consideration for how a market would function in an atmosphere where strict social distancing would likely still be required.”

The industry in its various aspects is turning to online alternatives. Early last month, The Building Supply Industry Association of British Columbia (BSIABC) presented its annual Orion Awards to dealers and suppliers in its first-ever virtual awards ceremony.

But the online platform has its precedents. The first virtual show in this industry was held by Chalifour Canada in 2014. At the time, the hardware and LBM distribution company was part of TIMBER MART. The virtual event was produced to replace Chalifour’s annual buying show for its dealer customers. The web-based platform allowed “attendees” 24-hour online access to virtual buying and networking opportunities over several days.

Even as the ability to gather in groups is being restored in various parts of the country, the ability—or just the inclination—to travel, especially by air, may be slow to recover. In addition, dealers are finding themselves so busy in their stores, as they manage their way through the changing realities of the recovery process, that many are expected to be reluctant to take time away from their businesses for many months. All these factors will likely fuel the continued reliance on virtual platforms for the near future.

OTTAWA — The latest forecast from Canada Mortgage and Housing Corp. about the growth of the housing market over the coming months offers some sobering data.

CMHC’s latest Housing Market Outlook takes into consideration the impact of the COVID-19 pandemic on the economic outlook both provincially and nationally. It says housing is subject to “considerable risk” given the rapid growth and duration of the pandemic, the speed at which the global economy and financial markets are reacting and what it calls “significant regional disparities in economic impact on housing markets.”

The result? “Canada will experience a historic recession in 2020 with significant declines in all housing indicators,” says the report. “Severe loss in household income and employment, and migration at a standstill, contribute to unprecedented falls in construction activity and sales. The decline in housing activity is compounded in oil-producing provinces as the energy sector is also experiencing historic lows.”

There is some good news in the forecast, but not until well into next year. Declines will continue this year, but housing starts, sales and prices are expected to start recovering by mid-2021 as the pandemic recedes. However, the recovery will be slow, the report warns. Sales and prices are still likely to remain below their pre-COVID-19 levels right through to the end of 2022.

The slowdown in residential construction, particularly in Quebec and Ontario, will result in a decline of 51 to 75 percent in national housing starts in the second half of 2020 before recovery is expected to begin in the first half of 2021 as economic conditions improve.

CMHC does not expect existing home sales to fare much better. “Large declines in employment and household disposable income will cause large reductions in demand for existing homes in 2020. Listings will fall in response to weaker demand, placing significant downward pressure on existing home sales,” says the report. Sales are expected to decline by anywhere from 19 to 29 percent from their pre-COVID levels. The average price for existing homes will decline by between nine and 18 percent.

A gradual recovery in resale activity, coupled with a rise in prices, is anticipated to begin in 2021.

TORONTO — Canadian Tire’s Retail division recorded comp sales growth of 0.7 percent in its first quarter. Before March 11, it was tracking even stronger, with comps of 0.9 percent thanks to strong demand from stores in shipments of automotive, fixing and living categories, especially in kitchen, cleaning and pet. Then lockdowns began across the country, forcing stores to restrict access to customers.

“We saw increased demand for what we now call ‘boredom busters,’ products such as kids’ toys and games, exercise equipment, sports and outdoor recreation, as Canadians prepared to spend more time at home,” said Greg Hicks, president and CEO of CTC, on a call to analysts following the release of the company’s first-quarter results.

“The increased demand for these categories drove significant traffic to our stores and website.” Other strong sellers included trampolines, basketball nets, backyard play structures and treadmills. “With physical distancing and government restrictions in place, we were concerned that fewer trips to the store would translate into lower overall demand for our products,” Hicks said. “That has not been the case.”

Another significant priority during the current crisis has been Canadian Tire’s e-commerce platform. In fact, the added traffic on the CTR website grew so rapidly that the site crashed.

Before March 11, Canadian Tire Retail was drawing an average of 5,000 online orders per day. After ramping up quickly, which included moving to the cloud, the site has been made more stable and lets users better personalize their shopping experience.

“Our CTR website is now processing more than 80,000 orders daily,” said Hicks.

BOUCHERVILLE, Que. — Lowe’s Canada is promoting the at-home lifestyle with its collection of tools and décor products this summer. With a focus on staying at home, the retailer is highlighting cooking and planting and some casual décor and enhancements for one’s outdoor living space.

As people find themselves stuck at home, they are looking for products to help them enjoy a patio or garden, including small spaces such as balconies. For maintaining the yard and deck, Lowe’s Canada is highlighting lines of outdoor power tools by Greenworks, Husqvarna, Karcher and Craftsman.

The retailer is responding to DIY trends during the pandemic that include paint, with a push on Purdy paint brushes, and fanciful décor that includes a hanging planter by Allen + Roth. Starter kits for seeds, especially for vegetables and herbs, tap into wider trends internationally to position one’s garden and outdoor space as a sustainable retreat.

Home Hardware has added to its merchandising teams. Michael Robert and Lee Hooper have been appointed merchandise LBM directors, reporting directly to Marianne Thompson, VP of merchandise LBM. Robert has held executive positions at Canadian Tire and Lowe’s Canada, as well as Summit Tools and Spectrum Brands. Hooper’s background includes time at Southwire Canada and Nestle Waters. They will be responsible for the development and deployment of Home’s LBM program for all building centre locations.

Tom Bell has left Sexton Group. For the last two years he had served as business development manager for Sexton in Western Canada. Bell had a similar role in the early days of the buying group before becoming a dealer himself as owner of Jeni’s, a hardware store in LaSalle, Man. His industry involvement also includes serving as chairman of the WRLA from 2018 to 2019.

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REGINA — The winner of the $100,000 grand prize in Federated Co-operatives’ “Fuel Up to Win” promotion can thank her husband’s oversight. When David Woitas forgot to buy a jar of sauerkraut on a grocery expedition at Sherwood Co-op, his wife Carol went to the store to get it and ended up receiving the seventh game piece needed to win the big prize. More than $8.5 million in prizes and discounts were available to Co-op customers in this year’s Fuel Up to Win contest, which was held March 5 to April 29.

QUEBEC CITY — Driver Raphaël Lessard returns to the NASCAR Gander RV & Outdoors series sporting the colours of new main sponsor Canac. The 18-year-old from Beauce, Que., had competed in just two events of the season when it was suspended due to COVID-19. Lessard acknowledged that racing without spectators will be an unusual experience, but welcomes Canac as a main partner.

OAK BROOK, Ill. — Ace Hardware Corp. reported first-quarter growth in sales and profit. The co-op’s revenue was $1.4 billion during the first quarter, an increase of 3.8 percent above the first quarter of 2019. Net income was $36.2 million, a year-over-year increase of about 60 percent. Same-store sales increased by 4.2 percent during the quarter due to a 5.1 percent increase in average ticket.

ECONOMIC INDICATORS

Retail sales in March fell for the first time in five months, plunging 10 percent to $47.1 billion. Retail e-commerce sales were $2.2 billion (not seasonally adjusted) in March, an atypical uptick for the month and more similar to the pattern normally observed at the start of the annual holiday shopping period. Unadjusted sales for the building material and garden supply sub-sector were up 2.4 percent in March and up a healthy 4.6 percent year to date. (StatCan)

Sales of existing U.S. homes took their biggest hit in nearly a decade in April. The seasonally adjusted annual rate of sales fell by 17.8 percent to 4.33 million units. Year-over-year, home resales in April fell by 17.2 percent. (National Association of Realtors)

NOTED

Canadian Tire’s website ranks number 32 in visits in Canada, according to SimilarWeb.com, which analyzes websites and apps. Google and Youtube are number one and two, respectively.

OVERHEARD…

“Following large declines in 2020, housing starts, sales and prices are expected to start to recover by mid-2021 as pandemic containment measures are lifted and economic conditions gradually improve. Sales and prices are likely to remain below their pre-COVID-19 levels by the end of our forecast horizon in 2022. The precise timing and speed of the recovery is highly uncertain because the virus’s future path is not yet known.”
—Bob Dugan, chief economist at CMHC, quoted in the latest housing forecasts for the country.

MOORESVILLE, N.C. & ATLANTA — Both Lowe’s and Home Depot saw sales rise in the first quarter, even as the COVID-19 pandemic disrupted their businesses in the last few weeks of that period.

Home Depot’s sales climbed 7.1 percent to $28.26 billion, with comparable sales up 6.4 percent from last year and U.S. comps positive 7.5 percent. Net earnings dropped by 10.7 percent to $2.25 billion.

Rival retailer Lowe’s reported that its Q1 net earnings rose 27.8 percent to $1.34 billion on net sales that were up nearly 11 percent to $19.68 billion. Comparable sales soared by a whopping 11.2 percent, while comp sales for the U.S. business increased 12.3 percent. The company’s results were boosted by investments in its U.S. business and digital technology.

Lowe’s online sales jumped by 80 percent as customers flocked to e-retail with restrictions on in-person shopping in effect. Operating income was “modestly affected” by store closures in Canada.

Marvin Ellison, Lowe’s Cos. president and CEO, noted that both those closures and the impact of the pandemic held back performance in this country. “In Canada, we posted negative comp sales as performance was adversely impacted by store closures and other regulatory-related operating restrictions,” Ellison said in a call to analysts.

However, he expressed optimism about the Canadian business. “We have initiatives in place to improve performance and remain confident in the long-term potential of our Canadian business.”

Craig Menear, president, CEO and chairman of Home Depot, noted that the onset of lockdowns resulted in a similar online gain for his company, with an increase in sales of about 80 percent using Home Depot’s online platforms. “And more than 60 percent of the time our customers opted to pick up their orders at a store.”

He added that the switch to curbside pickup happened in the U.S. over a matter of days, but, “in the case of our Ontario stores in Canada, this curbside capability was turned on essentially overnight when it became the only option to remain open and operational, with those stores operating under these circumstances for more than a month.”

Likewise, Lowe’s saw online sales skyrocket through March. By mid-April, comp online sales were up 150 percent.

TORONTO — Trying to figure out how key metrics like housing starts and existing home sales will look on the other side of the pandemic would require nothing less than a crystal ball. Short of that, Hardlines asked one of the country’s leading economists to outline his concerns and expectations for the months ahead.

Peter Norman is vice president and chief economist at Altus Group, which supplies data and advisory services to the commercial real estate industry, including builders, developers and manufacturers. He admits that the upheaval created by the pandemic will be major. “I think it’s going to be a weak year because so much has been interrupted.”

That disruption comes, unfortunately, on the heels of an otherwise strong start to 2020, he says. A lot of construction projects were initiated, only to be shut down, especially in Ontario. He expects the pace of new housing to reach between 150,000 and 160,000 starts this year.

And even existing projects will be slowed down by the current situation. He points to three key factors affecting that slowdown. First, supply chains have been interrupted, especially for products coming from Asia. At the same time, job sites are being disrupted as worker safety requires fewer people on the job at one time.

Second, the demand side of the equation has been affected, with fewer people expected to be in the market for a new home. “We’re in a recession now,” he says. That trend will affect buyer habits through the rest of this year, and even into 2021, he adds.

Despite this weakness, he does expect housing to recover, getting back up to around 200,000-plus starts in 2021.

Finally, he says, the resale market, which drives the repair and renovation market for most dealers, is suffering now from lack of supply, while prices stay relatively stable. That supply should return in coming months, helping meet a pent-up demand later this year.

However, he warns, the reno market may not follow in step with these sales. Small projects, especially by DIYers, will continue to be popular. But with many people recovering from the fallout of the COVID-19 lockdowns, investing in major fix-ups of their homes may not be a priority. “On the renovation side, I think we’ll have a couple of soft years,” Norman says.

(Peter Norman, VP and chief economist at Altus Group, is a professional land economist and forecaster. He leads a national team of economic consultants advising private and public sector organizations across Canada.)

QUEBEC CITY — Home improvement retailer Canac is considering whether or not to bring back its paper flyers, which are currently suspended to discourage non-essential in-store traffic. “We were already noticing for quite a while that the trend of checking out deals was moving to digital applications like Reebee,” said Jean Laberge, president of the family-owned chain of 29 stores. Reebee is an app that connects consumers with a wide range of online flyers from Canadian retailers.

Laberge is not alone. Paper flyers have declined in popularity with the advent of digital alternatives, a move that’s been greatly accelerated by the isolation caused by COVID-19. While concerns about the transmission of infection may be hastening the switchover, many retailers are not planning to turn back when things get better.

Loblaw Cos., for example has announced it is permanently transitioning to digital promotions online and through its PC Optimum app. Canadian Tire has begun testing the waters, announcing last month it has “temporarily paused” production of flyers in Ontario. Meanwhile, Home Depot Canada, which quickly replaced its paper flyers with notices online, used the platform to reinforce the importance of shopping online when possible and shopping for only essential products in stores during the current crisis.

Laberge at Canac sees growing evidence that paper flyers may be obsolescent. “For months, we’ve observed almost the same sales results as with our traditional paper versions,” he says. “Add to that the environmental considerations of a paper circular and recent events tied to the pandemic … and the decision makes itself. We hope that other retailers will go in the same direction and follow suit.”

SPECIAL REPORT — Home Depot had been in Canada barely a year when it announced plans for its biggest store yet. Under the headline “Home Depot opens largest store, four new cities get sites,” Hardlines, at the time barely four months old, reported on May 22, 1995: “In a unique leasing arrangement with the Ontario Stockyards association, Home Depot Canada has occupied 11 of the 36 acres that once served as the focal point for eastern Canada’s beef industry.”

Home Depot arrived in Canada 26 years ago through the acquisition of five Aikenhead’s stores, which were owned by Molson Cos. In those days, the beer maker had a retail division that included Beaver Lumber, once one of the most well-known brands in home improvement in Canada. Molson set about restructuring the division in anticipation of the arrival of U.S.-style big box retailing. That included the hiring of Stephen Bebis, a wunderkind merchandising VP from Home Depot’s head office in Atlanta, to start a chain of big box stores in Canada.

Under Bebis, the new division was christened Aikenhead’s, lifted from a handful of traditional hardware stores under that name still owned by Molson. The flagship Aikenhead’s hardware store, which covered six storeys, had been a fixture at the corner of Yonge and Temperance Streets in downtown Toronto for 85 years.

Bebis had grown the business to five stores when Molson turned around and sold off 75 percent of Aikenhead’s to Home Depot. Already familiar with the corporate culture of Big Orange, he was kept on to lead further expansion.

Home Depot quickly added more stores. The Stockyards location, which opened on May 18, 1995, was number 15 in Canada. Some state-of-the-art innovations there included bulk paint dispensers, a phone sales centre that put callers through to a salesperson with a cellphone in each department and “Depot Diner,” serving hot dogs, sandwiches and coffee.

At the time of the opening, Bebis announced planned stores in Saskatoon, Regina, Winnipeg and Ottawa. “We’ll be the market leaders in these areas,” Bebis was quoted as saying in Hardlines. Before the end of the year, he had announced his resignation from Home Depot Canada. He went on to start Golf Town, a big box retailer.

(Hardlines started up 25 years ago as a fax newsletter to provide news and intelligence to the retail home improvement industry. To celebrate this milestone, we’ll feature stories here from time to time that reach into the archives of our early years.) 

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VAUGHAN, Ont. — TIMBER MART has added O. Coderre et Fils as its newest member in Quebec. The family business has two retail locations in the Lanaudière region. “We look forward to working with a group that is truly centered around the independent dealer and their unique business needs in Quebec,” co-owner Benoit Coderre said. Founded in 1950 as a single store in Saint-Jacques, it now has a second location in nearby Crabtree. Together, the two stores have a total of 70,000 square feet and adjoining lumberyards that total 170,000 square feet.

DUNCAN, B.C. — As large construction projects have ground to a halt in many markets during the COVID-19 crisis, some dealers have managed to keep busy. Tim Urquhart, president of Slegg Building Materials, with 10 outlets on Vancouver Island, is one. Business there and on the Lower Mainland has stayed relatively healthy. Eighty percent of Slegg’s business is with contractors and builders, “so our business has been okay,” Urquhart says.

BENTONVILLE, Ark. — Walmart’s Q1 results beat expectations as customers flooded its online channel to make purchases while sheltering in place. Revenues of $134.6 billion were up three percent. Online sales soared by 74 percent as customers stocked up on supplies such as canned food and paper towels. The online channel’s performance is so solid that Walmart announced it has shut down Jet.com, an e-commerce business it acquired in 2016. In Canada, Walmart’s net sales rose 7.6 percent while comp sales were up 8.5 percent.

SUPPLIER NEWS

MARKHAM, Ont. — The 51st Annual General Meeting of the Canadian Hardware & Housewares Manufacturers Association will be held on Tuesday, June 2, at 9 a.m. via virtual meeting. The association will provide login details closer to the meeting date.

VANCOUVER — CanWel Building Materials turned a profit of $850,000 in the first quarter, after posting a $356,000 loss in Q1 of 2019. Revenues increased 15.9 percent to $326.7 million, compared to $281.9 million a year ago. Despite a slowdown in operations at the end of March due to the pandemic, sales rose by $44.8 million or 15.9 percent, largely due to the April 2019 acquisition of Lignum Forest Products.

SURREY, B.C. — The Building Supply Association of British Columbia (BSIABC) has introduced a new warehouse training course. Called WSLID, “Warehousing, Stock Keeping, Logistics and Inventory Distribution,” the in-depth program has been launched by the association to give workers a background in everything from excel spreadsheets and forklift operation to drug awareness and safety training. (Click here for more info.)

MONTREAL — Intertape Polymer Group reported that Q1 net earnings increased by $3.7 million to $14.2 million. Revenues rose by 0.4 percent to $278.9 million thanks in part to the acquisition of Nortech Packaging, partially offset by lower selling prices.

VANCOUVER — Acadian Timber’s loss in Q1 narrowed to $3.7 million, compared to $6.2 million in 2019. The forestry firm reported sales of $31.4 million, up from $30.9 million a year ago. The change reflects a two percent decrease in the sales volume of logs, more than offset by a one percent increase in the weighted average selling price and increased timber services activity.

ECONOMIC INDICATORS

Home sales dropped by a record 56.8 percent in April, compared to an already weakened March. Sellers and buyers across the country have seemingly moved off to the sidelines during the COVID-19 lockdown. Sales fell by 66.2 percent in the Greater Toronto Area, 64.4 percent in Montreal, 57.9 percent in Greater Vancouver, 54.8 percent in the Fraser Valley, 53.1 percent in Calgary, 46.6 percent in Edmonton, 42 percent in Winnipeg, 59.8 percent in Hamilton-Burlington and 51.5 percent in Ottawa. (Canadian Real Estate Association)

April’s housing starts in the U.S. were at a seasonally adjusted annual rate of 891,000, 30.2 percent below March. Single-family housing starts were at a rate of 650,000, down 25.4 percent from the previous month. The SAAR of units authorized by building permits was 1,074,000, which was 20.8 percent below March and down 19.2 percent from a year ago. (U.S. Census Bureau)

OVERHEARD…

“Things could be much worse. We aren’t seeing growth, but the retraction we’re seeing is far less than I expected. I think we should all feel pretty fortunate we’re in this industry where, at least on the West Coast, we’ve been considered an ‘essential service.’ ”
—Ross Power, president of PowerHouse Building Solutions, a building materials distributor based in Surrey, B.C. He commented in an email on the continued building activity in British Columbia’s Lower Mainland. 

MEMPHIS — Orgill, Inc. has announced plans to cancel its Fall Dealer Market, which was scheduled for August 27 to 29 in Las Vegas.

“There were a number of factors that led to this decision, including an abundance of caution as it relates to the safety of our employees, customers and vendors, as well as consideration for how a market would function in an atmosphere where strict social distancing would likely still be required,” says Boyden Moore, Orgill’s president and CEO.

According to Moore, Orgill will hold a fall online buying event to ensure the distributor’s retail customers can still take advantage of the buying opportunities and special deals from the wholesaler and its vendors. Details about the online buying event will be released in the coming weeks.

“While we hope conditions improve between now and August, we believe that refocusing our efforts with our vendors now to an online buying event for all of our customers is a better way for us to deliver on our mission to help our customers be successful,” Moore said.

Moore adds that, while the company realizes there is no better way for customers to experience all Orgill has to offer than by attending in person, he’s confident his company can provide an effective buying experience through the online event.

One of the considerations for any organization that intends to hold a show in Las Vegas in coming months will be the actual availability of rooms. Hotels there are eager to reopen, with many, including the Venetian, saying they hope to restart sometime in June. However, even then, capacity will be restricted. For example, MGM Hotels, the Strip’s largest hotel chain, says it will only open two of its 13 hotels to start, and only at 25 percent capacity.

Another show scheduled in Las Vegas is the National Hardware Show. It was originally to take place in early May but has been rebooked for September 1 to 3. Room availability, and the easing of cross-border travel, will all be factors affecting attendance at the show, especially for Canadian delegates. And while governments are already being urged to reopen borders, the U.S. appears more anxious to make that happen than its Canadian neighbour.

SPECIAL REPORT — When asked to rate their biggest concerns for the year ahead, hardware and home improvement dealers put the long-lasting impacts of COVID-19, staffing and availability of products at the top of their lists.

These concerns were tracked by Hardlines in a national survey of dealers on the business conditions they’re facing. And while issues like maintaining staff are ongoing for most dealers these days, the current pandemic has clearly exacerbated these concerns.

At the time of the survey, conducted from mid-March to mid-April, most provinces still had restrictions on even essential businesses. Hardware stores and building centres found themselves forced to move their business to online and over-the-phone orders with curbside pickup and home deliveries. Many dealers reported learning the ropes of the new systems, and e-commerce in general, as their top concerns.

In what should have been a strong quarter for growth, dealers could suddenly only serve a few customers at a time, with staff running back and forth grabbing each of their items. On top of that, many high-risk employees have faced a tough choice between working and prioritizing their health. Dealers have had to balance supporting their employees and keeping the business running.

Naturally, finances rated high on the list of concerns as well. Flyer programs were also scaled back as home improvement retailers were discouraged from advertising non-essential items and consumers were encouraged to limit their shopping excursions—leading to significant missed revenue.

One dealer reported that in the midst of the pandemic, collecting on receivables has become even more difficult. Instead of being able to do what they do best—sell materials—they were forced to spend their valuable time chasing down funds owed to them.

However, despite the challenges they were facing, some dealers made a point to offer up that their top priority remained keeping their staff safe and their communities supported throughout the pandemic. And some are keeping their ears to the ground, intent on learning new best practices and taking away something positive from the crisis. 

SURREY, B.C. — The Building Supply Industry Association of British Columbia (BSIABC) presented its annual Orion Awards last week in its first-ever virtual awards ceremony. The online event was hosted by the BSIABC Chairman Ron Tu of Cedarline Industries.

“We wanted to create an online experience that was professional and allowed the winners to be recognized by their peers and customers, and also took into account the highest scores of our B.C. Mystery Shopper program,” explains Thomas Foreman, president of the BSIABC.

The 2020 Orion winners are:

• Southridge Hardware Ltd., Urban Hardware & Rural Lumber Yards;
• Griff Building Supplies Ltd., Building Centre (Contract Yard);
• Ladysmith Home Hardware, Building Supply Centre or Home & Garden (Mini-Box);
• North Shore Door, Finishing & Specialty Products;
• TIMBER MART LBM Distribution, Supplier Company of the Year;
• Ace Challes, Westform Metals, Most Outstanding Outside Salesperson of the Year;
• Alex Stanculescu, TIMBER MART LBM Distribution, Customer Service Representative of the Year.

The association also used the ceremony to dedicate a fund to the province’s health care workers. Called “Power to the People,” the program reflects the efforts of BSIA members to raise money and donate meals to the individuals on the front line of fighting the pandemic.

“When COVID-19 first began, Ross Power at PowerHouse Building Solutions donated $2,500 to the Building Supply Industry Association of B.C. and the fund affectionately became known as the ‘Power to the People’ program,” says Foreman. PowerHouse is a building materials distributor serving mainly commercial yards in the Lower Mainland.

Additional donations came in from Cedarline, Southridge Hardware, North Shore Door and the BSIABC, until the total exceeded $6,500.

Foreman says the association then approached the other Orion winners, along with award finalists Chase Home Hardware Building Centre, RONA Maglio Building Centre Trail and Terrace Home Hardware Building Centre. They all partnered with a restaurant in their region and a local hospital or eldercare facility.

“I’m touched to think of all the people that are impacted; this is truly a win/win/win for these uncertain times.”

MONTREAL — Stores are waiting for their chance to reopen fully in the coming days and weeks. But the process of letting customers back inside has challenged retailers to maintain a safe and healthy environment.

Robert Di Tomasso is in the business of keeping shelves stocked for retailers. His company, RDTS, has been doing merchandising for stores for 25 years. His customers include BMR Group, pharmacy chain Uniprix, Walmart Canada, pet-products retailer Mondou and French DIY group Bricomarché, as well as some of Canada’s leading hardware manufacturers. But the realities of today’s retail environment require new safety measures. So, Di Tomasso is about to add a new layer of in-store service: sanitary audits.

He says many stores, including corporate locations managed centrally, can vary widely in their respective compliance with safety and health standards set out by local governments and by head offices. The audit can include identifying the presence of signs that instruct customers on behaviours such as physical distancing, as well as the use of masks by staff or their requirement for customers.

“It’s important for the retailer to know their network. They have to make sure their standards are respected and apply to all stores in the same way,” Di Tomasso says. “And it has to be consistent. It has to be the same from month to month.”

Di Tomasso says the new service came out of a major examination of his own business to determine how RDTS could better serve its customers. “We’ve worked hard to change our service offer. We have geared up our own reporting system to be ready for it. We can generate reports with key performance indicators showing where problems lie.”

TJ Flood has been appointed president of Canadian Tire Retail. A 12-year veteran of Canadian Tire, he spent the last two years in the role of president of the company’s FGL Sports division. He succeeds Greg Hicks, who was named president and CEO of parent company Canadian Tire Corp. back in March.

Robert M. McCutcheon has been appointed president of North America for Husqvarna Division. Previously president and managing director of the Americas at Britax Child Safety, McCutcheon has also spent time at Walmart and Conagra Brands during his 23-year career in consumer products.

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

RED DEER, Alta. — According to a post from Peavey’s e-commerce and marketing department, the new website for Ace Canada is now underway. New creative, functionality, content and messaging are being developed to support independent Ace dealers, who are now being supplied through Peavey’s distribution system. Peavey took over the license for Ace in Canada after acquiring the rights from Lowe’s Canada earlier this year.

BRAMPTON, Ont. — Grocery chain Loblaw experienced an estimated increase in revenue from the impact of COVID-19 of approximately $751 million in its first-quarter results. The boost came from increased consumer demand from stockpiling during the onset of the COVID-19 pandemic, causing sales to surge in the final two weeks of March.

TORONTO — Canadian Tire Corp. has signed a five-year extension to its contract with the Canadian Tire dealers, which was originally set to expire in December 2024.

KAMLOOPS, B.C. — The Home Depot in Kamloops may be on unsteady ground. The city’s fire department has closed the store due to “slope instability near the property,” according to Canadian Press. Experts are reportedly at the scene to assess the situation.

LONDON — Kingfisher PLC, which owns the B&Q banner, reported an uptick in sales a month into its phased reopening. Revenues for Europe’s largest DIY retailer rose by 2.7 percent in the first week of May after a 74 percent dive at the beginning of April, as public health restrictions were put into place. All 288 B&Q stores have reopened, as have France’s Castorama and Brico Depot locations. Kingfisher’s 683 Screwfix outlets are offering click-and-collect services.

SUPPLIER NEWS

NORWALK, Conn. — The National Hardware Show has unveiled NHS Connects, a digital platform that enables networking and business to continue leading up to and beyond the show, slated for September 1 to 3 in Las Vegas. NHS Connects will provide year-round digital content for the hardware and home improvement industry. The site can also be used to set up direct appointments with manufacturers and to source new products.

COLOGNE — The German garden trade fair spoga+gafa is set for September 6 to 8 in Cologne, its organizers say. Director Stefan Lohrberg and Catja Caspary, VP of trade fair management, say they will revisit their plans if large numbers of exhibitors cannot attend. The show will provide refunds in the event of a cancellation.

ECONOMIC INDICATORS

The public health crisis has taken a toll on activity in the Greater Toronto housing market. Realtors reported 2,975 residential transactions through the board’s MLS System. This result was down by 67 percent compared to April 2019. New listings for the month totalled 6,174, down on a year-over-year basis by a similar rate compared to sales. (Toronto Regional Real Estate Board)

The seasonally adjusted annual rate of housing starts for all areas in Canada excluding Quebec rose 10.8 percent in April from March. The SAAR of urban starts increased by 12.4 percent. Multiple urban starts increased by 35.7 percent while single-detached urban starts decreased by 27.1 percent. (CMHC)

The value of building permits issued by Canadian municipalities fell by 13.1 percent to $7.4 billion in March, the biggest drop since August 2014. The value of residential permits decreased 13.1 percent to $4.6 billion in March, including a 15.3 percent decline in single-family dwellings to $2.2 billion. (StatCan)

OVERHEARD…

“The dealers will tell you they are run off their feet with every single product being concierged. I would suggest to you that they’re probably operating with about 150 percent of the labour cost for not as much sales. So, part of that is just the nature of the service and part of that is friction in the technology.”
—Greg Hicks, president and CEO of Canadian Tire Corp., on the challenge of staffing and operating Canadian Tire stores on a curbside pickup basis only in markets where those stores were forced to close.