WORLD HEADQUARTERS, Toronto — Canada’s fastest growing province for home improvement sales last year was also its smallest. Prince Edward Island led all provinces in growth, however its small size—representing less than 1% of the overall market in Canada—was not enough to lift sales overall for the country past 4%.

And 2019 is expected to have even more moderate growth, with only slight gains in 2020 and 2021.

According to the 2019-2020 Hardlines Retail Report, building centres proved to be the best format for weathering 2018’s variable business conditions, with growth of almost 6%, driven by a solid renovation market and by healthy increases in key commodities such as lumber, plywood and insulation.

These are just some of the findings in this year’s Hardlines Retail Report, which has just been released. The report analyzes how much the industry grew last year and identifies the provinces performing best. The report also tracks the growth of the big box format in Canada, and how it compares to other key formats, namely hardware stores, building centres and Canadian Tire stores.

Designed to help retailers and suppliers alike to develop their business plans for the year ahead, this year’s report provides valuable forecasts for the industry for 2019 and 2020, including analysis of the strategies and performance of home improvement retailing’s top players—Home Depot Canada, Lowe’s Canada, Home Hardware Stores Limited and Canadian Tire Retail.

The 2019-2020 Hardlines Retail Report fills 171 PowerPoint slides and is packed with dozens of charts, graphs and photographs. It’s available now at a special rate for Hardlines Subscribers (yes, that’s you!—Editor).

(For more information about the 2019-2020 Hardlines Retail Report, please click here.)

CHICAGO — Thousands of hardware and home improvement dealers from around the world descended upon the show floor at Chicago’s McCormick Place recently for Orgill’s 2019 Fall Dealer Market. The Memphis-based wholesaler’s event offered new products, special pricing and networking opportunities across 800,000 square feet of show floor.

As Orgill continues to expand its footprint in the Canadian market, dealers from north of the border continue to show up in large numbers, as well.

The debut of new program, Hot Buys, allowed customers on the show floor to receive notifications on their mobile devices about limited-quantity deals on products across all categories throughout the day during the show.

New merchandising and inventory ideas were featured in Four Seasons Hardware, a 12,000-square-foot model store that demonstrated space-saving techniques for dealers, including a single-queue checkout that drives impulse sales.

“Our Dealer Markets offer customers buying opportunities that they won’t find anywhere else,” says Phillip Walker, Orgill’s senior vice president of merchandising services. “We want to give them the chance to find products at phenomenal prices, access to special areas that will show them what items they could add to their offerings, and ideas for how these items could be displayed.”

The next Orgill Dealer Market will be held at the Orange County Convention Center in Orlando from February 27 to 29, 2020.

MOORESVILLE, N.C. — Lowe’s Cos. posted net earnings of $1.7 billion for Q2 2019, up from $1.5 billion in the second quarter of 2018. Sales for the second quarter increased 0.5% to $21.0 billion from $20.9 billion, while comparable sales increased 2.3%. Comparable sales for the U.S. home improvement business increased 3.2%.

“We capitalized on spring demand, strong holiday event execution and growth in paint and our pro business to deliver strong second quarter results,” said Lowe’s President and CEO Marvin Ellison.

In a call with analysts, CEO Marvin Ellison reported Canada saw negative same-store sales for the quarter, due in large part to the integration of the RONA banner. That resulted in the closing of 27 retail locations across the country, as well as two regional distribution centres. Ellison explained that the company had reviewed and adjusted its RONA integration strategy, temporarily slowing growth.

“But once again, we are sacrificing short-term growth to position ourselves for long-term success,” he added, promising “additional updates on future calls.”

TORONTO — A new program from the federal government will enable consumers to garner significant savings on energy-saving products, while giving retailers an edge to sell a range of related products.

Last week, the Minister of Environment and Climate Change, Catherine McKenna, announced the launch of the Energy Savings Rebate program. Through the program, a total of $200 million over two years will be provided to Ontario retailers to offer up to 25% off the purchase price of specific energy-saving products. They include Energy Star-certified washers and dryers, smart thermostats, room air conditioners, dehumidifiers and refrigerators.

The program offers up to 25% off the purchase price of eligible products. Through this initiative, Ontario consumers who purchase new energy-efficient appliances—like washers, dryers, dishwashers and refrigerators—can save up to $500 per item and up to $1,000 on water heaters and heat pumps.

Retailers include Lowe’s Canada, Canadian Tire, Best Buy Canada, Tepperman’s and scores of others, big and small, across the province.

Lowe’s Canada, especially, has gotten behind the program. In fact, McKenna (shown above, far right) made the announcement at a press conference at the RONA North York store in Toronto. (Also on hand: Carol Crystal, merchandising VP at Lowe’s Canada; Ali Ehsassi, Member of Parliament for Willowdale; and Bill Goguen, Regional VP of operations at Lowe’s Canada.)

About $200 million is available to retailers through the Energy Savings Rebate program. The maximum level of funding available per eligible applicant is $2.5 million for retailers with locations in one to four municipalities and $25 million for retailers with locations in more than five municipalities.

The application process for retailers with locations in five or more municipalities is already closed. But retailers with locations in one to four municipalities can apply until March 31, 2020, or until funding is exhausted. Results will be communicated as applications are assessed.

Home Hardware Stores Limited has named Greg McKenna as the new merchandise manager, general merchandise. McKenna has nearly 10 years of experience in category management and strategic sourcing. Previously, Greg held positions, including category manager and national merchandising specialist in wholesale, at Sobeys Inc.

Horacio (Haio) Barbeito has been appointed president and CEO Walmart Canada, effective in October, pending work authorization. Barbeito joined Walmart nearly 25 years ago and developed his career through leadership roles in Argentina, the U.S., Puerto Rico and Chile. He replaces current CEO Lee Tappenden, who will leave the company at the end of the year.

Michelle Gillingham has joined Rheem in the role of retail sales manager, effective immediately. She joins following almost two decades working with Positec and Bosch.

…that you can read our sister publication, Hardlines Home Improvement Quarterly, online? This magazine gets mailed to 11,000 dealers and managers across the country four times a year. But you can access back issues of HHIQ anytime on our website—and they go all the way back to 2013. Check them out here!

BOUCHERVILLE, Que. — Dealer-owners Al Tsuchiya and Michael Trentalance recently celebrated the grand opening of their new Ace Hardware store in Walnut Grove, B.C. With 5,000 square feet of retail sales area and approximately 12,000 products in store and thousands more online, it’s the very first hardware store to open in the town.

MOORESVILLE, N.C. — Lowe’s Cos., which signed on in January as the National Football League’s home improvement retail sponsor, is launching more than 10,000 NFL-branded products.

FERNIE, B.C. — The third biennial Bill Adamack Memorial Golf Tournament raised $8,000 for local scholarships and youth sports last month. The event is sponsored by Fernie Home Hardware Building Centre and named for long-time employee Will Adamack, who died unexpectedly in 2012 at the age of 61.

MAGNETAWAN, Ont. — The Home Hardware Building Centre in this Parry Sound District community marked its 50th anniversary last month. A celebratory barbecue was held with cake, balloons and giveaways. The founder of the store, Jack Mowbray, had already owned a Home Hardware store in Stoney Creek, Ont., for several years when he decided to branch out into Magnetawan in 1969. Current owners Brenda Fraser and her husband Alan bought the store in 2002.

KINGSTON, Ont. — A Giant Tiger store held its grand opening in Kingston, Ont., on August 24. The brand new 18,130-square-foot Giant Tiger location is at 656 Gardiners Road. The Ottawa-based discount department store chain is known for stocking affordable home and family fashions—including a growing assortment of hardlines—plus groceries and everyday necessities at low prices.

BENTONVILLE, Ark. — Walmart reported Q2 revenues of $130.4 billion, coming out on top of an estimated $130.08 billion in a Bloomberg survey. Adjusted earnings per share of $1.27 similarly bested the forecast of $1.22 per share. Same-store sales increased by 2.8%, compared to an expected 2.5% increase. Online sales for the quarter soared by 37%, with the strength of the grocery category a strong contributor. Sam’s Club online sales rose by 35%.

SUPPLIER NEWS

CHATEAUGUAY, Que. — Richard Davidson has acquired Technoform Industries Ltd. from Pierre Guilbault. The founder of the manufacturing company will remain on board as a consultant before retiring from his four-decade career in the renovation industry. Technoform makes acrylic baths, showers, shower and tub-surrounds and laundry tubs.

VANCOUVER — Great Pacific Capital Corp., which is controlled by shareholder Jim Pattison, has offered $981.7 million in cash to take Canfor Corp. private. The bid works out to $16 for each share Great Pacific does not already own, about 49% of Canfor.

AUSTIN, Texas. — Wilsonart Engineered Surfaces has signed an agreement to acquire Technistone, a Czech manufacturer of quartz stone. Based just outside of Prague in Hradec Králové, Czech Republic, the company exports quartz slabs to more than 75 countries on five continents.

MONTREAL — Intertape Polymer said its Q2 revenues increased by 18.7% to $295.6 million, largely due to its Polyair, Maiweave and Airtrax acquisitions. Net earnings decreased by $8.5 million to $6.6 million. The decline was attributed to higher expenses, factory closures, restructuring and other related charges, driven mainly by interest and income tax expenses.

ECONOMIC CONDITIONS

Sales of existing Canadian homes rose 3.5% in July, making for the fifth monthly increase in a row. The increase puts home sales about 15% above the six-year low reached in February 2019 but still more than 10% below the highs reached in 2016 and 2017. Activity advanced in about 60% of all local markets. Actual (not seasonally adjusted) sales activity stood 12.6% above July 2018, with sales up in most of Canada’s largest markets. (Canadian Real Estate Association)

Housing starts in the U.S. fell by 4% in July to a seasonally adjusted annual rate of 1.191 million units. This third consecutive monthly decline was largely due to slower activity in multi-family dwelling construction. At the same time, building permits soared by 8.4% to a seven-month high of 1.336 million units, while housing completions rose 7.2% to 1.25 million units. (U.S. Commerce Department)

The monthly rate (seasonally adjusted) of housing starts in Canada was 222,013 units in July, down 9.6% from 245,455 units in June. The seasonally adjusted annual rate of urban starts decreased by 10.4% in July to 209,122 units. Multiple urban starts decreased by 12% to 162,722 units in July while single-detached urban starts decreased by 4.6% to 46,400 units. (Canada Mortgage and Housing Corp.)

NOTED

A cool rock n’ roll bar near Chicago’s McCormick Place convention centre was the scene for a night of music, camaraderie and a spirited rendition of “O Canada” last month. Hardlines once again hosted a Canada Night reception for dealers attending the Orgill Market. The event drew more than 200 people, filling two floors of Reggies, a truly funky Chicago music landmark. Attendees included independent dealers from every part of the country, as well as members of Orgill’s management and dealer rep teams, and, of course, our loyal sponsors!

OVERHEARD

“The eCommerce Symposium is a unique gathering of some of the top independent retailers in our industry working together to share insights, solutions, and tackle common challenges as they work to build or improve their e-commerce solutions.”
—Boyden Moore, president of Orgill, on the eCommerce Symposium, held each year prior to the wholesaler’s dealer markets to provide customers with the latest developments in e-commerce.

SPECIAL REPORT — Ken Sexton died last month, just a few days shy of his 91st birthday. A prolific founder of businesses, he started Kenroc Building Materials, a buying group and tool distributor Builders Choice Products. He also owned the patents to Pan-Brick, a panelized brick product.

Kenneth Graham Sexton grew up in a boarding house in Toronto’s Little Portugal neighbourhood but headed west as a young man on a junior chamber of commerce trip. Seeing opportunity in the region, he stayed, getting his start at an Edmonton car wash.

Sexton sensed a change coming in the 1960s as wall plastering by hand was giving way to gypsum-based prefab drywall. He quit his job as a manager at Bird Building Supplies in Calgary, sold the family cottage and took out a $3,000 bank loan to start Kenroc. Its original Calgary location fit only three people, according to Brian Kusisto, Sexton’s son-in-law and president of parent company Sexton Building Materials since 1996. When a customer came, someone had to step outside to make room.

From those humble origins, Kenroc expanded to 16 locations across Western Canada, celebrating its 50th anniversary in 2017. By then, Sexton had stepped back from the day-to-day operations of the business.

Sexton Group was founded in 1985, with the original three members joining forces to negotiate gypsum and lumber prices. By the end of its first year, the buying group had grown to 34 members. In 1990, having doubled in size, it launched its own product line, Builders Choice.

In 2003, Ken Sexton was honoured with two industry achievement awards from the Western Retail Lumber Association. Three years ago, the Sexton family finalized its succession plan and Ken’s voting shares were transferred to the next generation.

A multi-talented individual who was largely self-taught, Sexton never finished high school, but his curiosity extended to diverse subjects. His record collection counted more than 300 albums by jazz great Oscar Peterson and he learned to play the piano in his 60s. He enjoyed debating with top legal minds and travelling to destinations as far-flung as Egypt and Japan.

Concerned by bare walls in Regina hospitals, he simply began hanging paintings on his own initiative. That guerilla action spurred the Hospital Art Foundation, which has placed more than 3,000 donated paintings in the area’s health care facilities. When his daughter Joan died from cancer in 2003, he began donating to liver research.

Ken Sexton leaves his wife of more than 60 years, Bette, son Jim and his wife Carole, son-in-law Brian Kusisto and three granddaughters.

TORONTO — There’s a new look in the aisles of the Home Depot store in the Leaside area of Toronto’s east end. That look is the result of a new signage package, one that relies on pictographs to describe the areas of the store.

Working with its U.S. parent, the Canadian division has adopted a concept that was developed with two agencies, WD Partners and BGI. Called “Clean, Simple, Intuitive” (CSI), the new look aims to improve customer experience by making navigation of the store easier, while creating a consistent look and feel. With CSI signage, customers see an icon-based wayfinding system in Home Depot’s signature orange pantone.

The new signage has the added benefit of being suitable for customers who don’t speak English.

“It’s really important to us that we are always improving the shopping experience for our customers. This new signage is a part of that continuous improvement,” says Erika Botond, a spokesperson for Home Depot Canada.

The company has actually been testing this signage since 2016, when it was installed at two other Ontario stores, Ancaster in Hamilton and the Caledonia location in Toronto. Home Depot Canada plans to convert all 182 of its stores. According to Botond, the company expects to have about 35% of its stores converted to the new CSI signage by the end of 2019.

TORONTO — Canadian Tire Corp. said its second-quarter results reflect “continued momentum” with retail sales growing as the company pursues its acquisition strategy.

Consolidated retail sales for the quarter rose $53.6 million or 1.3%, a 2.3% increase when petroleum is excluded. Consolidated revenue grew by 5.9%, or 7.9% excepting petroleum. For the Retail segment, revenue increased 5.7% (7.8% without petroleum).

Retail sales by Canadian Tire stores increased by 2.1% and comparable sales were up 1.9% in the second quarter. SportChek’s retail sales were up by 3% and its comparable sales by 3.7%. The Mark’s banner saw a 2.7% increase in retail and 2.6% in comparable sales. Sportswear brand Helly Hansen, which Canadian Tire acquired last year, drew revenues of $98.6 million for the quarter.

At the same time, Canadian Tire Corp. announced that it has reached a deal to purchase Party City’s Canadian business in a $174.4 million cash transaction. The New York-based party supplies chain currently boasts 65 Canadian stores in seven provinces. CTC plans to add to that number as well as carrying Party City products in its 503 Canadian Tire stores nationwide. The company estimates it can become “Canada’s number-one party supply destination” and double Party City’s Canadian sales to $280 million by 2021. It hopes the acquisition will attract families and millennial shoppers and help strengthen Canadian Tire’s “micro-seasonal” offerings.

“CTR has an unbeatable store network, retailing capabilities and customer loyalty,” Jim Harrison, CEO of Party City Holdco Inc., said in a release. “These assets, combined with our wholesale supply agreement, positions them well to grow the Party City brand in Canada.”

TRUMBULL, Conn. — Sonya Ruff Jarvis is the founder of the Home Improvement eRetailer Summit, an important forum for home improvement retailers and suppliers who want to grow their online business. The fourth annual eRetailer Summit will be held November 6 to 8 at the Hotel Monaco Chicago in Downtown Chicago. Here, Ruff Jarvis answers some questions about the opportunities available online.

Internet marketing is widely used by retailers and suppliers across the country. Why, then, is an event like the Summit still relevant?

Currently, there is no face-to-face online retail event that’s focused on helping the home improvement category capitalize on the organic expansion of e-commerce in this sector.

Annual online sales of home improvement and garden products are growing at double-digit rates. But the home improvement market, in general, lags in optimizing the internet as a distribution channel. Currently, this is one market where the biggest e-commerce player, Amazon, is not winning, probably because that player has yet to focus on these products in a big enough way. Consequently, there are across-the-board opportunities for retailers and suppliers that compete proactively in this arena.

The Home Improvement eRetailer Summit is relevant because it’s designed exclusively for the home improvement online retail sector. It is a curated environment, managed through an invitation-only process, that creates an intimate and concentrated opportunity for attendees.

What are these opportunities for home improvement dealers and suppliers for online marketing and selling?

Incremental growth. Taking advantage of the internet as a distribution channel clearly offers revenue gains for the home improvement and lawn and garden categories, especially since online shoppers are looking for more of these types of purchases online.

Expansion. Retailers and suppliers have the chance to expand their brand and mind share with consumers. It’s worth noting that something like 60% of purchases start with online research.  

Diversification. Online retailing gives suppliers and retailers a straighter shot to hit a new shopper target: millennials. CouponFollow conducted a research survey in January 2019 that showed millennials make 50% of their purchases online. Retailers and manufacturers are missing out on this gigantic market segment when they don’t engage in online retail in some way, shape or form.

What new twists can attendees expect from the upcoming Summit in November?

We are making a strong effort to invite more bricks-and-mortar home improvement retailers that are interested in initiating e-commerce or expanding their online retail presence. We want to hear their unique perspectives.

(For more info and to request an invitation to the eRetailer Summit, contact Sonya directly.)

BOSTON ― The U.S. home remodeling market has grown by more than 50% since the end of the worldwide recession, and home improvement spending reached $425 billion in 2017.

According to the Joint Center for Housing Studies of Harvard University’s “Improving America’s Housing 2019” report, roughly 80% of the U.S.’s 137 million homes are now at least 20 years old. Another 40% are at least 50 years old. This amount of aging homes has helped boost home improvement sales.

“The aging of the housing stock has been a boon to the remodeling industry, with spending surpassing investment in homebuilding every year for over a decade, and contributing 2.2% to U.S. economic activity in 2017,” says Abbe Will, associate project director of the Remodeling Futures Program.

Key factors affecting home improvement spending include a “steady uptick” in home prices and the rising age of homeowners, according to the report. Rising home prices equate to greater equity, the report says, “which provides owners both the incentive and the means to undertake more and larger products.”

In addition, older homeowners are increasing spending on repairs intended to help them age in place and not leave their homes. The report indicates households 55 and over account for nearly half of all current home improvement spending.

Young homeowners are undertaking more home improvement projects, especially in markets where homeownership is more affordable, including in the Midwest and across the Southern U.S.

“Over the next decade, the strong preference of older homeowners to age in place and the increasing difficulty of building affordable housing in many markets will continue to hinder the construction of new homes,” says Kermit Baker, director of the Center’s Remodeling Futures Program. “The remodeling industry will therefore retain its critical role in helping the country meet its housing needs.”

LLOYDMINSTER, Alta. ― There’s no shortage of self-help books geared to entrepreneurs. But when Jeff Hilderman, VP of store operations at the Home Hardware Building Centre in Lloydminster, Alta., hit a wall, none offered a practical way out. Clone Yourself was born out of his struggle to overcome a dark chapter of his career.

“Like many entrepreneurs, I had bought into this notion where you have to work really hard, wear all these hats, do everything yourself,” says Hilderman. “But after a while burning the candle at both ends, I hit this point where I no longer felt successful.”

On paper, says Hilderman, “everything looked great.” By the mid-2000s, the business had racked up “numerous awards and a faithful following.” But all was not well: “I was barely holding it together—working 60, 70 hours a week, with most of that time spent putting out fires and micromanaging my team.”

Rock bottom came around 2008. “I experienced my best and worst days. In June, I became a father for the first time. Shortly thereafter I lost my sister to complications from Crohn’s disease. By 2009, I completely broke down. I developed an anxiety disorder, had panic attacks every day … I knew I had to make some changes.”

After struggling to find relief through books, workshops and professional groups, Hilderman had what he called an epiphany.

“I realized all these things from the business were funnelling back to me. I was the bottleneck of my business.” By training someone to handle the day-to-day operations that were sucking up his attention, he was free to focus on the big picture. One epiphany led to another as he realized others were in need of the advice he’d learned the hard way.

Hilderman’s plan encompasses three blocks of 30 days each, geared toward defining corporate culture, grooming a “clone” and handing off the reins to them. In short chapters, he takes the reader through the steps of identifying and training that person. The process begins with a review of current time usage and habits, including keeping daily logs, as well as checking negative internal attitudes.

Hilderman has since founded All-Star Academy to offer leadership coaching, and his sense of positivity has returned. “There are people out there who understand your vision, share your passion, can run your business for you. But it’s going to happen if you wait: you have to make the conscious decision to move from ‘me’ to ‘we’.”

NATIONAL REPORT — From the smallest independent to the biggest national chain, Canada’s top home improvement retailers have always put a huge emphasis on philanthropy. Last year, it continued to be an important business across the board.

Peavey Industries’ CEO Doug Anderson found a creative way to give back to the Western communities his chain serves—getting dropped into the Rocky Mountains with no way to get out until he raised enough funds for the air ambulance non-profit, STARS. Peavey also teamed up with STARS to develop and sell licensed merchandise to support the organization, which relies on donations and government contributions to provide rapid and specialized emergency care and transportation for critically ill and injured patients in rural areas.

Last spring, Federated Co-operatives Limited invested in giving back to its communities. The company allocated $2 million in grants to fund 24 community-improvement projects such as a learning garden at the public library in Victoria, B.C.; an inclusive playground in Airdrie, Alta.; the Children’s Discovery Museum in Saskatoon; and a multi-use trail network near Dauphin, Man.

After the tragic bus crash in Saskatchewan that killed 13 and injured 16 players and coaching team members of an adolescent hockey team, FCL created a fund to support survivors’ mental health. The initiative falls in line with the co-operative’s five-year commitment to donate up to $1.5 million for community-based emergency response efforts.

On the East Coast, Kent, the big-box chain with 49 locations across Atlantic Canada, teamed up with the Canadian Association for Community Living to sell wooden deck chairs in 20 of its locations to help support of intellectually disabled adults.

For the larger national chains and big boxes, a lot of their charitable work is channeled through their company foundations. Home Depot Canada continues to direct a good deal of its charitable resources to youth struggling with mental health or housing insecurity. This year, it’s expanding its commitment to prevent and end youth homelessness to $50 million over the next three years, after fulfilling its pledge of $20 million last year.

And Lowe’s Canada’s annual Heroes fundraising campaign donated $1.1 million to more than 260 organizations in 2018. The company says the Heroes campaign aligns with its mission statement of helping people love where they live, by donating to bringing inspiring projects to life and taking concrete steps to improve the lives of the communities it serves.

(This is an excerpt from a larger article that appears in the latest issue of our sister publication, Hardlines Home Improvement Quarterly. HHIQ is mailed to 11,000 dealers and managers across Canada four times a year. Free to retailers and managers, you can get your own subscription by clicking here!)

…that the latest edition of our newest publication, Hardlines Dealer News, is scheduled to go out this week? Featuring news and stories about retail best practices and outstanding dealers across the country, Hardlines Dealer News is a monthly e-newsletter designed to help dealers and managers run their businesses better. And it’s available at no charge. Click here now to get your free subscription today!

ATLANTA — Home Depot is focusing on home décor in its online channel to appeal to women, an executive explained to Business Insider. The strategy is aimed at reaching the homeowners behind the projects of Home Depot’s pro clientele. “From all of our history, when you look at the categories we play in—in décor, paints, rugs and all the other categories—the ‘she’ customer is making most of the decisions, even if they’re utilizing that pro to help them with the renovation,” said Jeanine Huebner, senior VP, hardlines.

MOORESVILLE, N.C. — Lowe’s Cos. is gearing up for major layoffs from its U.S. operations. The company did not specify how many workers would be affected, but they number in the thousands. Assembly, maintenance and facility service jobs are among those being contracted out to third parties. “We are moving to third-party assemblers and facility services to allow Lowe’s store associates to spend more time on the sales floor serving customers,” a spokesperson said. Lowe’s Canada told Hardlines that it is unaffected by the cuts.

ISSAQUAH, Wash. — Costco had net sales of $11.43 billion in July, an increase of 7.9% from $10.59 billion last year. For the 48-week year to date, the company reported net sales of $137.56 billion, up 8%. Comp sales were up 5.6% for the month and up 6.2% year to date.

TORONTO — Loblaw’s clothing line Joe Fresh has teamed up with grocery chain Hy-Vee to offer its products in stores in seven Midwestern U.S. markets. The store-in-store concept is being tested at locations in Iowa, Minnesota, Missouri and Nebraska. 

MOORESVILLE, N.C. — Lowe’s has opened a 1.4-million-square-foot distribution centre in Pennsylvania. The facility will ship large products such as appliances and lawn and garden items on a daily basis to Lowe’s cross-dock facilities. The retailer has more than 130 stores in Pennsylvania, Maryland, Delaware, Virginia, West Virginia, New Jersey and New York that will receive product from the new facility. It’s part of a $1.7 billion investment Lowe’s is making in its supply chain over the next five years.

STELLARTON, N.S. — Grocery giant Sobeys Inc. says it will remove plastic grocery bags from all its Sobeys grocery stores by the end of January 2020. The change, starting with its IGA stores on the island of Montreal, will take 225 million plastic grocery bags annually out of circulation at Sobeys’ 255 locations across Canada. The company will then phase out plastic grocery bags and introduce paper bags in all its other banners, including Safeway, FreshCo and Foodland.

MELBOURNE — Australian DIY retailer Bunnings is working to make most of its inventory available for online purchase by year’s end. The company is currently carrying out a trial of a transactional site in the states of Tasmania and Victoria, with about 60,000 products on offer. Customers have the choice of home delivery or click-and-collect in store. Previously, Bunnings offered only a selection of bulkier items through e-commerce.

BRENTWOOD, Tenn. — Tractor Supply Co. reported that its Q2 net income rose 5.8% to $219.2 million from $207.3 million a year ago, while diluted earnings per share increased 6.5% to $1.80 from $1.69. Net sales for the quarter increased 6.3% to $2.35 billion from $2.21 billion in 2018. Comparable store sales rose 3.2%, driven by general merchandise categories. During the quarter, the company opened 15 new Tractor Supply stores and one new Petsense store.

SUPPLIER NEWS

VANCOUVER — CanWel Building Materials had profits of $7.8 million in its second quarter, down from $14.7 million in the same quarter of 2018. Revenues increased by 0.9% to $385.7 million, compared to $382.1 million a year ago. These improvements in the quarter were partially offset by the impact of construction materials pricing, which continued a downward trend until late in the quarter. For the first half of 2019, net earnings were $7.5 million, down from $21.2 million in the comparable period of 2018.

VANCOUVER — Canfor Corp. posted a Q2 operating loss of $49.7 million, an improvement of $20.2 million from the $69.9 million loss reported for Q1, but a sharp decline from profits of $169.8 million a year ago. The improvement reflected higher lumber segment earnings that included a full quarter of the Vida Group of Sweden’s results following completion of that acquisition in Q1.

ATLANTA — Oldcastle APG has announced its acquisition of Abbotsford Concrete Products. Founded in 1989 by Clifford Leach, Abbotsford Concrete has established itself in the hardscapes industry in Western Canada under the direction of sons Chris and Bob Leach. With the acquisition, Oldcastle adds two production facilities to its network.

ST. LOUIS — Energizer Holdings reported Q3 earnings of $0.37 per share. Sales of $647.2 million for the quarter represented a 64.8% surge from the same period last year, when sales came to $392.8 million. Organic net sales were up 3.6%, or $14.2 million, helped by a positive impact from acquisitions.

MIDDLETON, Wis. — Spectrum Brands reported that net sales fell 0.7% in Q3 to $1.02 billion, dragged by unfavourable currency exchange rates. Operating income was down 14% to $92.8 million as a result of higher distribution costs. The consumer goods conglomerate posted a net loss for the quarter of $24.7 million, compared to a $398.9 million profit in the same period last year. 

GLEN ALLEN, Va. — Hamilton Beach is bringing back Toronto nutritionist Miranda Malisani for a second season of the manufacturer’s online cooking series. The “Make It with Hamilton Beach” videos are designed to help amateur cooks prepare meals using Hamilton Beach products.

LANCASTER, Pa. — Armstrong World Industries reported Q2 earnings of $1.27 per share, adjusted for one-time items. Earnings were up from $1.01 per share in the second quarter of 2018. Revenues reached $272 million, up from $248.6 million a year ago.

SAINT PAUL, Minn. — 3M Co. and Saint-Gobain have arrived at a settlement in a long-brewing patent dispute. The conflict centred on Saint-Gobain’s Norton Paint Systems brand of paint-spraying technology. 3M initially filed a patent infringement suit in France and Germany against the chemicals giant, which then countersued. According to a statement from 3M, the settlement includes the “resolution of all disputes and a release of Saint-Gobain’s NPS products under 3M’s paint spray technology related patents.”

SEATTLE — Weyerhaeuser has reported Q2 net earnings of $128 million, or $0.17 per diluted share, on net sales of $1.7 billion. The results compare with net earnings of $317 million, or $0.42 per diluted share, on net sales of $2.1 billion for the same period last year. Excluding an after-tax adjustment of $5 million for special items, the company reported net earnings of $123 million, compared with $332 million for the same period last year and $80 million for the previous quarter.

NEW BRITAIN, Conn. — Stanley Black & Decker reported Q2 adjusted earnings of $2.66 per share. Earnings overall rose 3.5% from Q2 of last year. Revenues increased to $3.8 billion, compared to $3.6 billion a year ago. The gains were primarily driven by higher volume, price changes and acquired assets, partially offset by adverse effects of foreign currency movements.

ECONOMIC INDICATORS

Sales of existing U.S. homes declined by 1.7% in June to a seasonally adjusted annual rate of 5.27 million units. The median price rose 4.3% from a year ago to an all-time high of $285,700, pushed up by a shortage of properties. Compared to June 2018, sales were down 2.2%, the 16th consecutive year-on-year decline. (National Association of Realtors)

OVERHEARD…

“Retailers that want to sell home improvement and lawn and garden products online must help manufacturers understand their sales approaches so they can work together for the benefit of their customers.”
—Sonya Ruff Jarvis, founder of the Home Improvement eRetailer Summit. Now in its fourth year, it’s being held in Chicago November 6 to 8.

WORLD HEADQUARTERS, Toronto — In 2012, fashion buyer Vava Valentina and fashion designer Angela Phung met through a mutual friend. Over lunch, the two talked about how fun it would be to do something together. Driving down Toronto’s hip Queen Street, Vava saw a “For Rent” sign in a store window. Angela said, “Let’s do it!” Not even knowing each other’s last names, they signed their lives away together.

That sense of spontaneity and imaginativeness has made The Store on Queen, better known as TSOQ, one of Queen Street West’s coolest destinations. Those qualities are also why the store is being featured at the 24th annual Hardlines Conference, as Vava and Angela will kick off the two-day event on November 13.

With special sales events, customer-appreciation parties and women-only pajama nights, TSOQ is a clothing store that has built a culture of community and empowerment for the women who shop there. Count on Vava and Angela to challenge the audience with new ways to engage customers. (“You’re not on Instagram?” Angela asks. “Ninety percent of our sales come from Instagram!”)

But more traditional retailers will also be represented at this year’s conference. Canadian Tire will be featured in a “fireside chat” on the importance of loyalty and analytics programs for driving the customer experience online.

Two executives, Shawn Stewart, vice president, loyalty and customer insights at Canadian Tire Retail, and Erin McFeetors, VP sales support and operations for the Canadian Tire banner, will talk about the importance of loyalty and analytics programs. The question-and-answer session will be hosted by Paula Courtney, chief strategist at WisePlum, a company that provides research tools to measure specific customer insights.

The 24th annual Hardlines Conference will be held November 13 to 14, 2019, at the Kingbridge Centre in King City, Ont., just 30 minutes from Toronto’s Pearson International Airport. With the theme, “It’s All About The Experience”, this year’s event will feature some of North America’s top thought leaders in hardware and home improvement retail. (To register for this incredible event, please click here.)

SPECIAL REPORT — As home improvement retail banners refine their offerings, many are focusing more than ever on private label, or exclusive, products. Whether they’re appealing to a “made in Canada” demographic or the allure of well-known and respected brands, exclusivity has a certain cachet in the eyes of a consumer.  

Federated Co-operatives Limited has been focusing in recent years on its “Made By Us” initiative. The program has the co-operative working closely with domestic producers to spotlight its private-label lines made with small Canadian manufacturers.

Last year was the program’s second year and the first to promote hardlines products. Its TV and social media spots featured FCL’s own Imagine line of paint brushes and rollers and told the story of how Co-op makes these applicators together with Bennett Tools in Concord, Ont., which claims to be the only remaining Canadian manufacturer of paint tools.

For Canadian Tire, private label brands have historically been an important part of its business. The company continued to build its collection of brands as it finalized its acquisition of Norwegian outdoor apparel company Helly Hansen last summer. And in a call with analysts recapping Canadian Tire Retail’s financials for 2018, Allan MacDonald, executive vice president-retail, said the company plans to continue growing its house brands through 2019. “Owned brands are an important part of our strategy and we’ll be continuing our efforts to build world-class owned brands and assortments.”

Lowe’s Canada has also been building up its exclusive brands, confirming last spring that the company’s Lowe’s, RONA and Ace stores would exclusively carry the Craftsman tool brand in Canada. The addition of the line was formally launched at the RONA and Ace buying show last fall, and Annick Day, national director of RONA dealer support, anticipated it was going to be a major deal for retailers.

(This is an excerpt from a larger article that appears in the latest issue of our sister publication, Hardlines Home Improvement Quarterly. HHIQ is mailed to 11,000 dealers and managers across Canada four times a year. Free to retailers and managers, you can get your own subscription by clicking here!)

SPECIAL REPORT ― Amazon Prime Day, the e-commerce giant’s annual shopping event, was on July 15 and 16 this year. And it set new records for the company, leading to more sales than Amazon’s Black Friday and Cyber Monday events combined.

But companies like Ace Hardware and True Value found ways to make their own mark online.

Amazon says that worldwide, Prime members purchased more than 175 million items over the two-day sale and saved more than $1 billion. The company says Prime Day items were sent to customers faster than ever before thanks to one- or same-day shipping.

More people signed up for Amazon Prime on the first day of the sales event than in any other day in the company’s history. Top-selling items for this year’s Prime Day included robotic vacuums, smart garage door openers and the Amazon Smart Plug, a device that lets users control devices through Alexa, Amazon’s virtual assistant.

In the U.S., other major retailers staged sales that coincided with Amazon Prime Day. Ace Hardware began its first Ace Rewards Day event while Prime Day was in full swing. The co-op offered 15% off name-brand items across several categories, including power tools, outdoor power equipment, patio furniture, sheds, smokers and grilling accessories. It also offered free delivery for all purchases made during the promotion.

Similarly, True Value offered an online-only flash sale for its e-commerce customers.

Walmart launched a “summer sales event” that coincided with Prime Day. Best Buy, eBay, Target and other companies also publicized online sales during Amazon’s sales event.

COLOGNE, Germany — For retail buyers and suppliers who deal in the lawn and garden category, a trade show in Cologne, Germany, will be an important destination this fall.

Addressing everything from gardening and the latest live goods to outdoor power equipment and patio furniture, spoga+gafa opens its doors from September 1 to 3, 2019. Calling itself the world’s largest garden fair, it will feature 2,152 exhibitors from 61 countries showcasing their wares to 40,000 visitors from 114 countries.

Along with new products, the show will be a forum for the latest trends driving garden, outdoor living and leisure. These will include:

New looks and colours for outdoor furniture. Look for products suitable both for use in small areas as well as for luxurious seating ensembles. Look for vibrant colours on high-tech fabrics that are stain resistant and fast drying with soft contours and an increasingly more living room-like appearance.

Activity islands. Expansive areas for relaxing, with a sunroof that protects against the elements. Lighter and more mobile alternatives are available in the form of beanbags made of waterproof textiles as seating and lounging options.

Ergonomics and ease of use. For the ageing homeowner, devices like barbecues have to be easy to assemble and to operate. On the furniture side, low and comfortable models such as the classic wing chair, rocking chairs or daybeds are experiencing a renaissance for outdoor living. Footrests or storage space for books and drinks also increase comfort and practicality.

For dry summers, automated irrigation. Devices and automatic systems for irrigating the garden are becoming more popular. Smart devices are a trend in this segment. Equipped with sensors, they recognise when it’s necessary to irrigate to ensure efficient water use. And they can be operated with a smartphone.

More grilling diversity. Barbecuing remains a favourite open-air pastime. But as diet and tastes change, accessories on the latest high-tech grills provide options for smoking, curing or baking. High-temperature models lend meat a totally new flavour. Multi-functional is also the motto for accessories such as barbecue lights with LEDs and integrated Bluetooth loudspeakers.

Weatherproof cooking enjoyment. Modern kitchen units for outdoors can be individually combined with elements like sinks, fridges or worktops using modular construction and can also be safely installed on a balcony. Specially designed frame profiles or special supports are extremely weatherproof and can be coated with different colours. Foldable side panels offer protection against wind and rain.

(Hardlines will be at spoga+gafa in Cologne, Germany, September 1 to 3. To learn more, click here. And to secure your ticket now, click here.)

…that Hardlines Classifieds provide a targeted, cost-effective way to find your next hire? Our Classifieds reach thousands of strong candidates in sales and marketing management in the hardware and home improvement industry. Contact Michelle Porter at the Hardlines World Headquarters for a free quote!

MELBOURNE — Bunnings head Michael Schneider is setting off on a tour of Israel, The Australian reports, in order to bring his executives together with leading tech firms. The retailer is pursuing opportunities in cyber security, according to the report, and the tour will focus on security, robotics, fraud detection, data analytics and artificial intelligence. Parent company Wesfarmers previously took executives through Germany in order to gain DIY insights from firms such as Hornbach and Bauhaus.

SUPPLIER NEWS

CLEVELAND — Sherwin-Williams Co. says it earned profits of $471 million in Q2. The paint manufacturer reported net income of $5.03 per share and adjusted earnings of $6.57 per share. Total revenues of $4.88 billion, a 2.2% increase fell short of a projected $4.92 billion. Net sales at U.S. and Canadian stores open more than 12 calendar months increased 4.3% in the quarter.

VANCOUVER — A B.C. conservation group has accused CanWel Fibre of “liquidating” the endangered whitebark pine tree, CBC News reports. “Canwel [Fibre] is logging in sub-alpine areas where rare whitebark pine is found,” said Wildsight spokesperson Eddie Petryshen. The group says CanWel has cut more than 35 truckloads of the species over the past 18 months. The B.C. government is looking to prepare recommended standards for logging on private lands by the fall.

VANCOUVER — West Fraser Timber reported a Q2 loss of $58 million, or $0.85 per share, compared to a $5 million ($0.07) loss a year ago. Sales rose to $1.317 billion from $1.241 billion in Q2 of 2018. The company said that softer commodity pricing across segments dragged operating earnings. The quarter also saw the retirement of Ted Seraphim as CEO and his succession by Ray Ferris on July 1.

CHARLOTTE, N.C. — Honeywell International reported Q2 earnings of $2.10 per share, down 1% from a year ago. The conglomerate said sales declined 15% on a reported basis but were up 5% on an organic basis. The discrepancy was attributed to spinoffs from its aerospace and building technologies businesses. Honeywell Building Technologies sales for the quarter were up 5% on an organic basis, driven by strong performance in commercial fire products, building management software and global building solutions projects growth.

ECONOMIC INDICATORS

Total investment in building construction increased 2.2% in May to $15.2 billion. A 2.8% gain in the residential sector (to $10.4 billion) led the increase, while the non-residential sector edged up 0.9% to $4.8 billion. Investment in multi-unit dwellings rose 7.6% in May to $5.5 billion, led by higher investment in B.C., which accounted for approximately three-quarters of the national increase. Investment in single-unit dwellings declined 2.2% to $4.9 billion. (StatCan)

Retail sales in May declined for the first time in four months, edging down 0.1% to $51.5 billion. Sales of building materials and garden equipment, however, rose by 0.2% to $3.25 billion. Excluding sales at motor vehicle and parts dealers and gasoline stations, retail sales decreased 1%. Sales were down in four of 11 sub-sectors, representing 39% of retail trade. (StatCan)

U.S. housing starts declined by 0.9% in June to a seasonally adjusted annual rate of 1.253 million units. Single-family homebuilding increased by 3.5% but was more than offset by a sharp downturn in multi-family dwelling construction. Building permits for the month plunged by 6.1% to a rate of 1.22 million units. (U.S. Commerce Department)

NOTED

In April 2018, Amazon announced its Prime membership program had surpassed 100 million customers worldwide.

BOUCHERVILLE, Que. — BMR Group has been actively targeting Ontario dealers to help it grow its network of members and the latest is Feldman Timber, a family-owned business in Timmins. The company, which has been in business for more than 100 years, will undertake major renovations as the 23,000-square-foot store converts to the BMR banner in the upcoming months.

Fourth-generation owner Lorne Feldman was drawn by the range of programs offered by BMR, which include pricing, integrated distribution, new products and a marketing program. “BMR provides us the tools to give our customers an exceptional shopping experience, along with great value,” he said.

While the latest efforts to recruit dealers outside its home province are relatively recent, BMR has in fact had a presence in Ontario for many years. One such longstanding dealer is BMR Windsor Building Centre, in Windsor, Ont. Another, Drummond Building Supplies in Marmora in Central Ontario, joined BMR in 2006.

However, when BMR was acquired by La Coop fédérée in early 2015, it reined in its expansion efforts while reorganizing its head office. Now, under Pierre Nolet, BMR’s VP of business development, the group has renewed its efforts in a more targeted manner than ever before.

At the beginning of the year, BMR added Griffith Building Supply in Greater Madawaska township. That signing was doubly noteworthy as being the company’s very first BMR store to carry the “Pro” banner. BMR Pro is one of a series of designations created to suit the various formats of its members. They include Pro for contractors and Express for convenience hardware stores.

Just a month after the Griffith signing, BMR hired someone to focus on growth in Ontario. Jason Hamburger, a former product manager at Home Hardware, took on the newly created position of business development manager for the province. He reports to Nolet.

BOUCHERVILLE, Que. — Taiga Building Products has announced two additions to its team in Quebec. Yanick Miron was promoted in January to Quebec general manager, freeing up Bruno Jean to focus on his role as VP of operations for Eastern Canada after balancing both functions for the past two and a half years.

“I did combine the role of manager for the Quebec region [with the VP job] and then I nominated one of my young guys, Yanick Miron,” explains Jean, who has been with the company for 15 years. “This was a plan in development. We do have succession planning in our organization.”

He added that there was outside interest in the position, but he felt Miron was deserving of the promotion given his hard work for the company: “It comes with all the coaching Yanick and I have done over the past two years. He really showed the passion and enthusiasm to be the leader of the Quebec market.”

Miron has 20 years of experience in the building materials industry, on both the manufacturing and the merchant sides of the business. He has been sales director for specialty products at Taiga for the past five years.

At the same time, Miron announced the appointment of Guillaume Renaud as director of moulding products for Quebec. He brings six years of industry experience in various posts with Metrie, including as a sales director and territory manager. He assumed this latest position on June 25.

COLOGNE, Germany — According to recent research by Hardlines, lawn and garden remains a fast-growing category for hardware and home improvement retailers in just about every part of the country. So it’s no wonder that one of the world’s leading trade shows for this sector is gaining more attention this year.

Addressing everything from gardening and the latest live goods to outdoor power equipment and patio furniture, spoga+gafa opens its doors from September 1 to 3, 2019. Calling itself the world’s largest garden fair, it will feature 2,152 exhibitors from 61 countries showcasing their wares to 40,000 visitors from 114 countries.

And once again, the show will present the current trends and themes within the green industry. The diversity of offers ranges from trendy outdoor furniture and design for garden equipment to smart garden appliances, high-tech grills and outdoor kitchens. The show will also feature ranges of decorative accessories for outdoor living.

An important worldwide trend, and one the show has picked up on for this year, is the theme of “City Gardening”, and visitors should expect to find new accents for designing and furnishing the green living room.

This year’s show will also address the global trend of increasing urbanization. More and more people are moving into the city but are unwilling to give up their own green spaces. For city dwellers, green areas are becoming increasingly important as a place of refuge from hectic, everyday life.

“Today, the garden takes on the task of being a place to wind down and relax more than ever,” explained Stefan Lohrberg, director of spoga+gafa. Numerous exhibitors are presenting new products for the usage of urban open spaces such as small gardens and on balconies and roof terraces.

Compact flower beds, vertical plant walls or mini greenhouses transform balconies into small gardens. Irrigation systems are aligned specially to meet the needs of urban gardeners. Today, there are even miniature versions of compost boxes.

The urban trend continues at the show to furniture and décor under the theme of “City Oasis”. Combinable, multi-functional furniture ensures the cosy furnishing of small outdoor areas, whilst decorative elements such as carpets, chimneys, vases and lanterns provide a homey atmosphere. There are also clever sunshade solutions for limited outdoor spaces such as balconies and roof terraces. Side tables or plant pots with integrated LED lights enable the outdoor space to be illuminated via smartphone.

Spoga+gafa will also play host to more traditional aspects of lawn and garden, most notably the huge market for barbecues and smokers. In addition, modular lounge furniture that can be put together to suit one’s individual requirements is still popular and will be featured strongly at the show.

For full details about spoga+gafa in Cologne, Germany, click here. And to secure your ticket now, click here.

ATLANTA ― Reports of the death of home ownership are exaggerated, Home Depot has concluded from its research and outreach with millennials.

At one time, Home Depot Merchandising EVP Ted Decker told Business Insider, the company was concerned the millennial generation might simply rent forever. Five summers ago, however, Home Depot assembled a group of young interns from backgrounds ranging from design to computer programming to the liberal arts.

“We brought them all together and we said, ‘All right, you’re a millennial. Your job this summer is to tell us what’s relevant to you and what’s not relevant to you in Home Depot, in-store and online’,” Decker said, adding the feedback was encouraging.

“The older millennials are now entering into home ownership in similar penetrations, as you know, maybe not as much as the baby boomers, but still much more on the norm than what we were seeing in 2010.”

… that Hardlines offers various ways for you to stay up-to-date on the industry? Make sure you are subscribed to: our Daily News (free); monthly Dealer News (free); and our print magazine, Hardlines Home Improvement Quarterly! (free to dealers and retail head offices!) For more information on all of our news, just click here!

BOUCHERVILLE, Que. — A new store in Exeter, Ont., has been added to the Ace Canada affiliated dealer store network. The store has been serving the Exeter community since 2010. Father and son Doug and Barry Eidt, who own another Ace store in Mitchell, Ont., acquired the business in May 2019 and are in the process of converting the 5,000-square-foot location, which they will rename Miller’s Ace Country & Garden. “With the acquisition of Miller’s Country Store in Exeter, we are excited to expand our customer base into Huron County,” said Barry Eidt.

ATLANTA — Home Depot co-founder Bernie Marcus’s statement that he will donate to U.S. President Donald Trump’s 2020 re-election bid has sparked calls for a boycott of the retailer. In an interview with the Atlanta Journal-Constitution, Marcus said that while he did not “agree with every move” Trump has made, the president has nevertheless “produced more than anybody else.” Despite having been uninvolved in the company since 2002, Marcus has found that his latest comments have consumers taking to social media to call for a boycott of Home Depot.

SEATTLE — Amazon’s fifth annual Prime Day last week met with opposition as employees pushed back against the pace of work demanded of them in order to meet the company’s one-day delivery commitment. Workers in Germany went on strike, while a week of rolling walkouts was planned in the U.K. Amazon has defended its compensation scale, which a spokesperson said includes “excellent pay—ranging from US$16.25-$20.80 an hour, and comprehensive benefits including health care, up to 20 weeks parental leave, paid education, promotional opportunities and more.”

SUPPLIER NEWS

GEORGETOWN, Ohio — Stanley Black and Decker plans to close its plant in Georgetown as of November 1. Employees were notified earlier this month. Georgetown Mayor Dale Cahall said he was disappointed to hear the news. “It’s devastating to a small community the size of Georgetown. When 100 jobs leave a community of about 4,400 people, that’s a lot of employment loss,” he told the Ripley Bee.

ECONOMIC INDICATORS

Home sales via Canadian MLS Systems rose by 1.9% in May. Together with monthly gains in March and April, activity in May reached the highest level since January 2018. Sales stood 8.9% above the six-year low reached in February 2019, but this latest increase has only just returned levels to their historical average. While May sales were only up in half of all local markets, that list included almost all large markets, led by gains in both the Greater Vancouver and Greater Toronto areas. Actual (not seasonally adjusted) sales activity was up 6.7% compared to May 2018, marking the largest year-over-year gain recorded since the summer of 2016. (Canadian Real Estate Association)

Retail sales rose by a higher-than-expected 0.4% in June, as consumer spending eased the effect of weak investment levels. Compared to a year ago, retail sales rose 3.4%. The 0.5% increase initially reported for May was revised down to a 0.4%. (U.S. Commerce Dep’t)

BOUCHERVILLE, Que. — BMR Group has reached a deal to acquire a stake in Lefebvre & Benoit, a Laval-based dealer selling construction materials to contractors and builders, and a fellow member of the buying group Independent Lumber Dealers Co-operative (ILDC).

The two Quebec companies aim to combine their expertise to improve their offerings and drive growth across Canada. Where BMR’s stores provide retail hardware and building materials to DIY customers and contractors, Lefebvre & Benoit furnishes large-scale industrial and multi-family residential projects. It also has three outlets in the Greater Toronto Area, specializing in residential roofing, industrial flooring and drywall respectively.

“BMR’s dealers right now are in the residential part of the business,” CEO Pascal Houle explains (shown here, far right, with Marc-André Lefebvre, Alexandre Lefebvre and Caroline Lefebvre, co-owners of Lefebvre & Benoit). “The big towers in Montreal and Toronto—we’re not there. Lefebvre & Benoit has the equipment and the management to understand and serve this market.”

“They are real entrepreneurs and know how to build a business,” he adds. “I believe it’s a good move for both of us. The culture of the two businesses is similar.”

Co-owner Alexandre Lefebvre says the partnership will ensure the viability of the family business in the face of mounting pressure from large U.S. chains.

“We think there’s room for a large Canadian player that can act as a consolidator for the market,” he says. “We’re strong financially. La Coop is a large business. We felt that by partnering with them—for them, it’s a platform to grow in the commercial segment,” he adds, referring to BMR’s parent company, La Coop fédérée, “and for us, it gives the credibility to consolidate coast to coast.”

In terms of the family business’s succession plan, Lefebvre explains that with the growth of multinationals, “it would have been difficult to continue on our own.” The deal with BMR, however, is no slippery slope toward losing more family control. “On the commercial side of the business, a lot of it is based on relationship. BMR wouldn’t invest in us if we weren’t committed to running the business for the long term. We are not going away.”

ST. JACOBS, Ont. ― Home Hardware Stores Limited has been actively reorganizing its merchandising teams at head office, having broken them clearly into a hardware team and a lumber and building materials team.

Most recently, on the Hardlines side, Renee Gratton Veaudry was named merchandise manager for plumbing and fashion. She reports to Dave Martin, director of merchandise hardlines. Gratton Veaudry has nearly 20 years of experience in category management, marketing and merchandising. Previously, she was VP of sales at Talon Systems Inc. and president and owner of Mercari Marketing.

The merchandise teams fall under two camps: hardware, headed by VP of merchandise, hardlines, Joel Marks, and on the LBM side, Marianne Thompson, VP of merchandise for LBM, who only joined in January. They both report to Kevin Macnab, Home’s president and CEO.

The new merchandise manager roles fall under another, fairly new, management level―merchandise directors. Brian Straus and Dave Martin were appointed as directors, merchandise hardlines back in May. Merchandise director for lumber and building materials is Doug Shantz.

Gratton Veaudry’s hire is one in a string of changes at Home Hardware. Just a few weeks earlier, the co-op announced the appointment of Susan Ryan to the newly created position of merchandise manager, millwork. Then Mark Pardue was promoted to merchandise manager, building materials. Both report to Shantz.

VANCOUVER — Blame it on falling prices, wildfires, low inventories and even beetles. Western Canada’s logging industry is facing some real challenges to get enough supply at a reasonable cost. The situation is affecting some of the country’s biggest producers.

Canfor’s announcement that it will cut production at two Prince George sawmills this summer is the latest of more than 20 such cutbacks, CBC News reports. Hundreds of employees are out of work thanks to challenges to the forestry sector, including 150 at Quesnel’s Tolko Industries mill, which will close in August, and 172 at the Canfor mill in Vavenby, which is due to close this month.

“It’s definitely going to be a struggle because there’s not a great deal of jobs that have around the same pay or benefits,” Tolko employee Jennifer Johnson told the CBC.

Quesnel Mayor Bob Simpson says the city saw the closure coming after the annual timber allotment was cut two years ago. “We’ve been here before and we have a transition team in place based on the lessons learned from that,” he said, adding that city council in its last term froze taxes on the industry in an effort to reduce the city’s dependence on it. Quesnel is promoting growth in its tourism and agriculture sectors in an effort to diversify the local economy.

The problem is affecting towns throughout the West. West Fraser Timber suspended production for two weeks this month at two facilities. Its Alberta plywood operations and High Prairie sawmill had to address low log inventories, which have been adversely impacted by wildfire-related logging curtailments compounded by recent wet weather. Plywood production is anticipated to be reduced by approximately 13 million square feet, while the impact on Alberta lumber production is anticipated to be minor.

A month earlier, West Fraser announced it would close its Chasm lumber mill permanently and eliminate the third shift from its 100 Mile House lumber mill by the fall of this year. The closings were attributed to timber supply constraints owing to B.C.’s growing Mountain Pine Beetle infestation, recent record wildfires, price declines and high saw log costs.

Shortages have led to continued consolidation, as well. Vancouver-based Conifex Timber announced last month the sales of its Fort St. James sawmill and associated forest license to Hampton Lumber. That company operates nine sawmills in Oregon, Washington and B.C.

OTTAWA ― Lee Valley Tools is renowned for its unique tools valued by woodworkers and specialty DIY users. But less known is the fact that it has a collection of antique and vintage tools at its manufacturing facility in Ottawa. These relics not only reflect the legacy of the company, they provide a treasure trove for research and development, as well.

“We have a very extensive collection of hand tools. There are more than 100,000 pieces right now,” says Robin Lee, president of the retailer. He calls them “a physical library” and designers at Lee Valley’s sister company, Veritas Tools, can refer to old styles of products for hands-on testing.

At Veritas, 140 people work in the manufacturing operation, which has a full machine shop, a woodworking shop and two assembly operations that make parts, do finishing and assembly. The facility manufactures 1,200 different products―“all highly complex, small runs. For example, we have a run of 50 to 100 for a rabbit plane,” says Lee.

Any effort to remake or update such a product benefits from access to older models. “You can put it in your hand to feel, to use it,” he says. “It becomes a tremendous way to learn from those who have gone before.” Building on that history, the team at Veritas can add innovation and modern manufacturing methods.

The result is a line of products distinct to Lee Valley Tools―and one that is difficult to find at generalist sites like Amazon. Through its stores and its popular catalogues, both in print and online, the company can share the stories of those tools with its customers―and create stronger relationships with those customers.

The commitment to product innovation is ongoing. The R&D team is designing and planning two to three years ahead of production. Lee says three new machines, worth millions of dollars, are being added over the next three years.

 “History is a very important part of our business. We believe tradition and technique are embodied in our tools.”

… that the latest edition of our newest publication, Hardlines Dealer News, has stories about how a Quebec Home Hardware dealer used eBay to save his business, a B.C. RONA dealer who carried the Olympic torch brought it back to a RONA store and where Lee Valley Tools will open its next store (hint: it’s in Quebec). Hardlines Dealer News is a monthly e-newsletter available at no charge. Click here now to get your free subscription today!

VERONA, Ont. — RONA VeRONA Hardware celebrates its 90th anniversary this year, making it the oldest business in Verona, Ont. To mark the occasion, owners Nicole and Chad Van Camp invited customers and local dignitaries for a celebratory day earlier this month. The hardware store was founded in 1929 by Steven and Victor Merrill in what is now Nicole’s Gifts, also owned by the Van Camps.

OAK BROOK, Ill. — Ace Hardware has changed its paint supplier from Sherwin-Williams to Benjamin Moore. Sherwin-Williams made a deal last year with Lowe’s Cos. to supply that retailer’s paint. Ace sold its own paint manufacturing operation to Valspar in 2012 and currently carries Valspar along with its own house brands. Valspar in turn was bought by Sherwin-Williams in 2017. Benjamin Moore, a Berkshire Hathaway company, will start by making the dealer-owned co-op’s high-end private-label line, Clark + Kensington, and expand to handle all of Ace’s paint supply later this year.

ISSAQUAH, Wash. ― Costco had June net sales of $14.57 billion, up 7.5% from $13.55 billion last year. For the 44-week year to date, the company reported net sales of $126.13 billion, an increase of 8% over the same period last year. Company-wide comp sales were up 5.4% for the month and up 6.2% for the year to date.

BOUCHERVILLE, Que. — Lowe’s Canada presented $1.3 million last week to the Charles-Bruneau Foundation in support of pediatric cancer research. The donation was part of the company’s second fundraising campaign as a Diamond Partner. A team of some 120 employees, affiliate dealers and vendor partners cycled more than 13,000 kilometres as part of the Tour CIBC Charles-Bruneau. “The cause championed by the Charles-Bruneau Foundation is one that is very dear to us at Lowe’s Canada,” said President Sylvain Prud’homme. “I am moved to see our people come together to help offer children the hope of a cancer-free childhood.”

SUPPLIER NEWS

MONTREAL — Richelieu Hardware’s sales increased 6.8% to $281.2 million in the second quarter. For the first six months of the year, sales were up 4.6% to $507.4 million. Diluted earnings per share rose by 9.7% to $0.34 in the quarter, which saw the company’s fourth acquisition of the fiscal year: Euro Architectural Components, a distributor operating two warehouses in Toronto and Montreal. In Canada, Richelieu recorded sales of $183 million, an increase of $2.3 million, or 1.3%, over the second quarter of 2018, entirely from acquisition growth. Q2 net earnings grew 6.3%.

ECONOMIC INDICATORS

Housing starts soared by 26% in June, reaching a seasonally adjusted annual rate of 245,657 units compared to 196,809 in May. The SAAR of urban starts also increased by 26% in June, to 234,238 units, primarily due to higher trending row and apartment starts. Multiple urban starts rose by 31% to 185,804 units while single-detached urban starts increased by 8% to 48,434 units. Rural starts were estimated at a SAAR of 11,419 units. (CMHC)

Housing intentions dropped in May, with $8.2 billion worth of building permits issued. That represents a 13% decline after a record $9.5 billion in April. Increases in six provinces and all three territories were not enough to offset the decrease in British Columbia, where the value of permits for multi-family dwellings stabilized after a spike in April. Higher development costs taking effect in Metro Vancouver in May drove the April rush. (StatCan)

OVERHEARD

“We have known for some time that lumber industry rationalization is inevitable because too little sawlog supply is available to maintain the existing manufacturing base in the interior region of B.C.”
― Ken Shields, chairman and CEO of Conifex Timber, on the sale of some of Conifex’s assets to Hampton Lumber in Oregon

WORLD HEADQUARTERS, Toronto — We are proud to announce the addition of one of Canada’s fastest-growing hardlines retailers to the next Hardlines Conference. Hardware, automotive and home retailer Princess Auto will join the conference for the first time.

Presenting on behalf of Princess Auto, Fred Pennell, Vice President Merchandising Operations, will share the success story of this hardware and automotive retailer that started in Winnipeg 77 years ago and now has 46 stores across the country.

A significant player in the retail hardware industry, Princess Auto has been on our radar for many years. So we were delighted when Pennell and his company agreed to join us. (In fact, we’re sure this video with a blues ode, written exclusively for Princess Auto some years ago, helped tip them in our favour!—Editor).

Another important addition to this year’s conference is the first appearance of True Value Company to the Hardlines stage. And we’ve secured no less than President, CEO and Executive Director John Hartmann. Since joining True Value in 2013, Hartmann has led the company through an incredible transformation. Last year, True Value underwent a change in ownership: the selloff of 70% of the company put more than $230 million back in the hands of the dealer-shareholders. Hartmann will share the details of this transition on the Hardlines podium.

The 24th annual Hardlines Conference will be held November 13 to 14, 2019, at the Kingbridge Centre in King City, Ont., just 30 minutes from Toronto’s Pearson International Airport. With the theme, “It’s All About the Experience”, this year’s event will feature some of North America’s top thought leaders in hardware and home improvement retail. (To register for this incredible event, please click here.)

SPECIAL REPORT — Despite variable business conditions across the country last year, dealers did see growth in a range of product categories. A survey of business conditions conducted in the spring by Hardlines revealed some common areas of growth for dealers.

Among hardware stores, paint stood out as a growth category, being cited by dealers in Prince Edward Island, Quebec, Ontario, Manitoba and Saskatchewan. Plumbing was cited as another core category enjoying growth by hardware stores nation-wide, along with fasteners, electrical and HVAC.

Building supply dealers reported growth in categories that reflect an emphasis on homeowners looking to enhance their outdoor spaces. Decking, including composites, as well as lumber, were among the strong sellers. Dealers in Nova Scotia, Quebec, Ontario, Manitoba, Saskatchewan, Alberta and British Columbia in particular reported enjoying increases in treated wood and decking products last year.

Other strong growth categories for building supply dealers included seasonal and garden products. Siding was also cited by dealers in British Columbia, Alberta, Manitoba and Ontario.

(We’ll have the full report on how much the industry has grown, including forecasts for 2019 and beyond, analysis of the top retail players and market shares by province and store format, in the 2019 Retail Report. Coming soon. Click here to pre-order yours now!) 

NATIONAL REPORT — A common concern of any retailer is having to cope with unhappy customers. While those interactions can be unpleasant enough in the store, disagreements can too easily move to the more public forum of online comments.

The goal of complaint management is to keep disputes from escalating. That can mean something as simple as just refunding the customer’s money, rather than have them bad-mouth your store to other customers—or online.

Retailers tend to prefer to deal with customer complaints on their own turf: their stores or yard. But when those efforts don’t mollify customers, the internet often becomes the shopper’s megaphone. And the last thing dealers want is to get into a virtual shouting match with customers online.

Windsor Home Hardware in Windsor, N.S., knows this all too well. A customer once complained that the coating he bought to paint his $200,000 transport truck had failed. Owner Jeff Redden contends that the customer had applied the second and third coats prematurely. The store offered to replace the paint and applicators, but the customer wanted Windsor to pay for his labour as well. When Redden refused, the angry customer stormed out of the store and posted negative comments on the city’s website. After the city removed that comment, the customer reposted the same message—seven times.

Obsessive public harangues are uncommon, which may explain why some dealers choose radio silence when negative comments surface. Mike Doyle, president of The Home Improvement Warehouse in Calgary, whose store is on Facebook and Instagram, is even more emphatic: “Our policy is ‘Do Not Engage’, on either good or bad comments. It’s like Donald Trump on Twitter; it’s become entertainment. And you keep poking that bear, it will keep coming back at you.”

A number of dealers point out that managing complaints should start with avoiding them. “We’ve worked hard to create a service model upfront to prevent complaints in the first place,” says Doyle. He will even reward his salespeople when they get patrons to post positive comments about the store.

(This is an excerpt from a feature article that appears in the latest edition of our sister publication, Hardlines Home Improvement Quarterly. HHIQ is mailed to 11,000 dealers and managers across Canada four times a year. Free to retailers and managers, you can get your own subscription by clicking here!)

OTTAWA ― The Canadian Real Estate Association (CREA) has updated its home sales activity forecast for this year and next. The association tracks house sales through the Multiple Listing Service systems of real estate boards and associations across the country.

According to the report, many of the economic fundamentals that support housing activity remain strong, as population and employment growth has remained strong and the unemployment rate continues to fall. However, the Prairies, as well as Newfoundland and Labrador, remain slow.

Additionally, the Bank of Canada is widely expected to keep interest rates down over the rest of the year.

The federal government has raised the maximum individual withdrawal limit under the Home Buyers’ Plan from $25,000 to $35,000 and introduced the First Time Homebuyer Incentive, a shared equity program whereby the federal government finances a portion of a home purchase in exchange for an equity share in the home’s value.

The increased HBP withdrawal limit took effect in late March, while the First Time Homebuyer Incentive is slated to launch in September. These factors are expected to support the beginnings of a recovery in home sales over the second half of 2019 after a weak start to the year.

Nonetheless, the overall level of sales is expected to remain well below where it was in recent years. National home sales are now projected to edge up 1.2% to 463,000 units in 2019. This would still leave annual sales below the 10-year average and a big change from the annual record set in 2016, when almost 540,000 homes traded hands.

The federal government has named former Home Depot Canada President Annette Verschuren as chair of the board of directors for Sustainable Development Technology Canada. The federal agency manages funding for clean technologies and falls under the oversight of the minister of innovation, science and economic development, Navdeep Bains. Verschuren, who is currently chair and CEO of energy storage development firm NRStor, was named an officer of the Order of Canada in 2011.

…that Hardlines offers various ways for you to stay up to date on the industry? Make sure you are subscribed to: our Daily News (free); monthly Dealer News (free); and our print magazine, Hardlines Home Improvement Quarterly! (free to dealers and retail head offices!) For more information on all of our news, just click here!

IN MEMORIAM

Ken Roney passed away on June 4, 2019, in Moose Jaw, Sask., after a short battle with cancer. Born in Imperial, Sask., on April 28, 1942, he was well known in this industry as co-owner, with Michael Westrum, of Westrum Lumber and managed the store in Moose Jaw. Ken started at the company with Westrum’s father, Leonard Westrum, in 1964. He leaves his wife of 52 years, Loraine; sons, Aron Roney (Marlene) and Jason (Tracy) Roney; daughter, Stacey (Brad) Moser and nine grandchildren.

VAUGHAN, Ont. — Adam Lumber Ltd. in Waterloo, Que., has joined TIMBER MART. Since 1923, this original equipment (OEM) manufacturer produces roof and floor trusses, wall panels and i-joists, as well as a wide selection of building materials such as gypsum, insulation and engineered wood products. It sits on a 30-acre property that encompasses 11 buildings and employs 55 staff. Today, Adam Lumber serves communities in Southeastern Quebec and the Northeastern U.S.

MOORESVILLE, N.C. — Lowe’s Cos. has designated Charlotte, N.C., as the site of its planned 357,000-square-foot tech hub. The largest city in the company’s home state beat out Dallas for the distinction. The facility will generate up to 2,000 local jobs, according to Lowe’s. The company expects to be ready to open the location by late 2021.

MONTREAL — Dollarama Inc. is acquiring a 50.1% interest in Latin American discount retailer Dollarcity. The purchase price is based on a five-times multiple of Dollarcity’s EBITDA, minus net debt and subject to customary adjustments, and will be paid in cash.

SUPPLIER NEWS

VANCOUVER — The Futura Corp. and Arbutus Distributors have made a proposal to take Tree Island Steel private, with a cash offer of $2.25 per share. The two companies together currently own about 14.7 million shares in Tree Island, a majority of its issued and outstanding shares. Futura and Arbutus have proposed that the potential transaction be structured by way of a court-supervised statutory plan of arrangement, which would require shareholder approval.

NEW BRITAIN, Conn. — Stanley Black & Decker has won four Comparably Awards for Best CEO as rated by female employees, Best CEO as rated by racially diverse employees, Best Leadership Team and Best Company for Professional Development. Comparably Award winners are determined based on a series of structured and comprehensive workplace questions in some 20 core culture categories.

VANCOUVER — West Fraser Timber has announced a two-week suspension of production at its Alberta plywood operations and High Prairie sawmill to address low log inventories for the facilities, which have been adversely impacted by wildfire-related logging curtailments compounded by recent wet weather. Plywood production is anticipated to be reduced by 13 million square feet, while the impact on Alberta lumber production is anticipated to be minor.

VANCOUVER — Conifex Timber is selling its Fort St. James sawmill and associated forest license to Hampton Lumber. The purchase price is about $39 million plus the market value of finished lumber and log inventory at closing. Hampton Lumber operates nine sawmills in Oregon, Washington and British Columbia.

ECONOMIC INDICATORS

Construction jobs drove the bulk of May’s decrease in non-farm payrolls, the first decline for that month in seven years. Seasonally adjusted payrolls were down 0.1% in May for a total of 16,519,461. That’s 16,020 fewer jobs than in April, with construction jobs alone falling 1.1% to 1,013,127 compared to May 2018. (ADP Canada National Employment Report)

Construction spending in the U.S. in May was estimated at a seasonally adjusted annual rate of $1,293.9 billion, 0.8% below April’s estimate of $1,304 billion. The May figure is 2.3% below the same period a year ago. During the first five months of this year, construction spending amounted to $498.8 billion, 0.3% below the same period in 2018. (U.S. Commerce Dept.)

OVERHEARD

“Our programs in gypsum, insulation, roofing and siding will give Adam Lumber the competitive advantages and growth opportunities they need to be successful.”
—Alain Charbonneau, TIMBER MART’s national membership development manager for Quebec, on the signing of Adam Lumber in Waterloo, Que., as the buying group’s latest member.

OUT & ABOUT

Our VP and Publisher David Chestnut will be in Ottawa this week to attend the TORBSA annual meeting and golf tournament.

WORLD HQ, Toronto — The 24th annual Hardlines Conference has been organized around the theme, “It’s All About the Experience” to guide the presentations—and the destination of the conference itself, a world-class meeting facility just a short drive from Toronto.

The conference will be held November 13 to 14 at the Kingbridge Centre near Toronto.

As Canada’s only truly national event bringing the entire hardware and home improvement industry together, the Hardlines Conference offers an incredible opportunity for delegates to meet industry colleagues and customers in a professional yet casual setting. This year’s lineup of presenters includes senior executives from Lowe’s Canada, BMR Group, Home Hardware, Canadian Tire, Princess Auto and Staples Canada.

The venue for the conference will offer a memorable experience, as well. The Kingbridge Centre, in King City, Ont., is just a 30-minute drive from Toronto’s Pearson International Airport. Along with a four-star dining room and a spacious bar and lounge, the Kingbridge Centre offers a 24-hour fitness room, 200-metre indoor track, indoor sports court, whirlpools and saunas, games room, on-site business services and even a library.

Delegates are being encouraged to book rooms onsite at the Kingbridge Centre during their time at the conference. This way, they won’t miss out on important networking events, including the RONA Pub Night that kicks off the conference on the evening of November 12 and the Outstanding Retailer Awards Gala on November 13. Both evenings’ activities are sure to keep delegates on site, ensuring that everyone gets maximum impact from the event.

The 24th annual Hardlines Conference will be held November 13 to 14, 2019, at the Kingbridge Centre in King City, Ont., just 30 minutes from Toronto’s Pearson International Airport. (To see the full list of speakers and to register, please click here!)

MEMPHIS, Tenn. — Orgill Inc. has identified the location of its next distribution centre. A 780,000-square-foot facility in Rome, N.Y., will join a network of seven other Orgill DCs. The hardware wholesaler plans to have the new facility up and running by 2022.

“We are excited to announce this expansion to our distribution network and look forward to the enhanced efficiencies this will create for our customers as we move forward,” said CEO and Chairman Ron Beal.

Changes in the U.S. home improvement market, as hardware wholesaling continues to consolidate there, plus healthy organic growth by Orgill, drove the 170-year-old wholesaler to look for ways to beef up its existing distribution network. That infrastructure includes DCs in Inwood, West Virginia; Post Falls; Idaho, and Orgill’s London, Ont., facility, which all support Orgill’s Canadian retail customers.

In an interview with Hardlines last spring, Orgill President Boyden Moore indicated that the new DC, which was still in the planning stages at that time, would take pressure off these existing sites so they can continue to service the Canadian market effectively.

“As we continue to see our customer base expand, we are committed to making the investments that will deliver better, more efficient service to them both now and well into the future,” said Moore. “This announced distribution expansion is a perfect example of that commitment in action.”

MISSISSAUGA, Ont. — Seven months since it was first announced, Lowe’s Canada has now closed its Ontario regional support centre. Last Friday, June 28, was the last day of operations at the office. Mandatory attendance by all remaining staff gave individuals the chance not only to turn in laptops and security badges, but to make final farewells to fellow workers.

Lowe’s Canada determined last year that it would consolidate all its head office teams at the Boucherville, Que., headquarters and main distribution centre. “Having our operations under one roof will allow us to improve collaboration between our banners to better serve our customers,” said Sylvain Prud’homme, president and CEO of Lowe’s Canada, at the time of the announcement in November 2018.

After initial shock among the approximately 200 staff in Mississauga, the long timeline for exiting, plus generous packages and offers of support finding new employment helped mitigate the impact of the closing.

“The decision to close stores is never one that we make lightly,” Prud’homme said at the time, adding that, “Everything will be done to ensure a smooth transition until the stores are closed, and Lowe’s Canada will support impacted employees, including by transferring eligible employees to other locations within our network whenever possible.”

True to their word, Lowe’s Canada corporate did indeed offer staff at the Mississauga facility a job in Boucherville. Within the merchandising team, four people did move: Carol Crystal, VP of merchandising, seasonal and appliances; Mathieu Villeneuve, merchandise manager for hardware, going back to Boucherville as director for outdoor power equipment; Brook Powell, merchant for patio; and David Gaudet, merchandising category director in building and maintenance.

Some parts of the Mississauga team will remain in the Toronto area. The bulk of the IT group that manages the Lowe’s.ca site, under Tanbir Grover, VP, e-commerce and omnichannel, will relocate to a smaller store support centre on Martin Grove Road, near Toronto’s Pearson International Airport.

“Following our announcement of last November regarding the completion of the consolidation of our operations at our Boucherville head office, our Mississauga regional centre was officially closed last Friday, June 28,” Andrea Danielle Wong, spokesperson for Lowe’s Canada, told Hardlines.

“Impacted employees were supported throughout the transition, and we wish to extend our sincerest thank you for all they have done for our customers and wish them all the best. Starting today, our team—including merchandising―is working from Boucherville, where they can collaborate more closely to better serve our customers across Lowe’s Canada’s multiple banners.”

SPECIAL REPORT — In response to growing consumer expectations, several retailers last year invested in boosting their technological capabilities. Home Depot announced it was looking to support its intensive growth into high tech retailing by hiring 1,000 IT professionals across North America. In Canada, that meant 100-plus new technology professionals at its headquarters in Toronto’s east end, called its Store Support Centre.

“With the changing Canadian retail environment, we know technology is playing an increasingly important role,” Paul Berto, director, corporate communications, external affairs and sustainability for Home Depot Canada, said at the time. “Customers want to shop whenever, wherever and however they want.”

Canadian Tire, for its part, announced that it was going digital with its rewards program, Triangle, at its AGM last spring. The company also launched a pilot for home delivery and integrated its online ordering with in-store pickup in four major cities across the country. While the Triangle program provides Canadian Tire with a wealth of data—the company can see from the SKU level exactly what customers are purchasing—it’s still figuring out how best to make use of that information.

Other retailers beefed up their online presence through 2018. Castle unveiled its revamped website late last year. The new, more intuitive, mobile-friendly site has an efficient store-locator function that can map a user’s route right to the nearest store. It also offers a selection of some 30,000 products, including access to the catalogue of Castle’s primary hardware supplier, Orgill.

At its annual buying show this spring, TIMBER MART announced it was launching a new marketing program to help its dealers sell more effectively on the internet. Bernie Owens, TIMBER MART’s president, said support for building social media, including templates for creating Twitter and other accounts, were among the services introduced at the show.

And in the West, United Farmers of Alberta Co-operative (UFA) upgraded its back-end systems with a new ERP (enterprise resource planning) system. Replacing an existing POS system, it will effectively tie together purchasing, inventory and order processing.

These efforts come right in time. Online retail sales in Canada are projected to surpass $55 billion by 2023. And according to Forrester Research Inc., 10% of Canadian retail spending will take place online, up from 6% only four years ago.

(This is an excerpt from a larger article that appears in the next issue of our sister publication, Hardlines Home Improvement Quarterly. HHIQ is mailed to 11,000 dealers and managers across Canada four times a year. Free to retailers and managers, you can get your own subscription by clicking here!)

At Home Hardware Stores Ltd., Leeanne Wilson has been appointed merchandise manager of hand tools and sporting goods. She reports to Dave Martin, director of merchandise hardlines. Wilson brings nearly 20 years of experience working at Home Hardware’s head office. Her previous roles include merchandise associate, power tools and outdoor power equipment and merchandise associate, hand and power tools.

…that Hardlines Classifieds provide a targeted, cost-effective way to make your next hire or find that new rep agency? Our Classifieds reach thousands of strong candidates in sales and marketing management in the hardware and home improvement industry. Contact Michelle Porter at the Hardlines World Headquarters for a free quote!

SASKATOON — Federated Co-operatives Limited was recognized as Large Co-operative of the Year by Co-operatives and Mutuals Canada (CMC) at its annual awards ceremony in Quebec City on June 19. The award recognizes Canadian organizations that have made a significant contribution to co-operatives and mutuals in Canada and around the world. FCL was recognized for its commitment to environmental sustainability, community investment, employee engagement, co-operative leadership and financial responsibility.

OTTAWA — Discount retailer Giant Tiger Stores Limited has broken ground on a new head office in Ottawa that will also be the site of a new flagship store. Located on Walkley Road, the new facilities will support Giant Tiger’s growth strategy, which includes opening 10 to 15 stores per year across Canada. Construction is expected to be in full swing by this fall. The new store will open in fall 2020 and the offices by mid-winter of 2021.

BRAMPTON, Ont. — Executive Chairman Richard Baker’s bid to take Hudson’s Bay Co. private will turn on whether an independent assessment finds the company more valuable as a retailer or a property owner, governance experts have told Reuters. Much of the company’s value is tied up in its real estate holdings: selling some of those assets could raise more cash than Baker’s offer but would relegate stores to being tenants.

CORTE MADERA, Calif. — RH, formerly Restoration Hardware, is one of several brands crossing over into the hospitality industry to showcase its wares, the Washington Post reports. It will join other décor companies like Ikea, West Elm, Muji and Versace in this trend when it opens RH Guesthouse in New York in the fall.

NOTED

During Co-ops and Mutuals Canada’s annual congress last month, Scott Banda, CEO of Federated Co-operatives Ltd., and a representative of Desjardins Group shared the results of a study on the economic impact of the co-operative sector in Canada. The study found the co-operative sector contributes $61.2 billion, or 3.4%, to Canada’s gross domestic product every year. Sales, memberships and employment at co-operatives continue to increase, with more than 182,000 people employed at co-operatives across the country.

OVERHEARD

“As an organization, if we can make a difference in members’ lives, we can build sustainable communities together.”
―Scott Banda, CEO of Federated Co-operatives Ltd., on his company being honoured as Large Co-operative of the Year by Co-operatives and Mutuals Canada. FCL is the 58th largest company in Canada.

WORLD HEADQUARTERS, Toronto — Some of Canada’s most progressive hardware and home improvement retailers will take the stage this fall at the 24th annual Hardlines Conference. With the theme, “It’s All About The Experience”, this year’s event will feature some of North America’s top thought leaders in hardware and home improvement retail, who will share their stories and their insights.

The conference will be held November 13 to 14 at the Kingbridge Centre near Toronto. Top retailers and buying group executives from across the country, as well as leading wholesalers and manufacturers, are again expected to gather for an immersive educational and networking experience.

To understand the role of one of Canada’s largest home improvement retailers in the online channel, Tanbir Grover, Vice-President, eCommerce & Omnichannel, will relay how his team has worked to make the Lowe’s, RONA and Reno-Depot banners fully transactional while expanding the customer experience on all these websites. 

The growth of BMR Group outside Quebec is causing ripples throughout the industry. Claudie Gervais, Marketing Director, Promotional Strategy and Business Intelligence at BMR Group, will share some of the innovations in store strategy and design that are aimed at providing a meaningful experience for today’s young, urban consumer.

In the conference’s Profiles in Leadership series, we are proud to host Christine Hand, an independent dealer from Conception Bay, Nfld., and Chair of the Board of Directors of Home Hardware Stores Limited. Hand’s store has been honoured twice with the Walter J. Hachborn Store of the Year Award as the top Home Hardware store in Canada.

This year, the Hardlines Conference will welcome True Value Company to the podium—a first in Canada. True Value President and CEO John Hartmann will relate the story of his company’s incredible transformation from a dealer-owned co-op to a major retailer with majority ownership held by a private-equity firm.

Joe Franquinha, owner of Crest Hardware in Brooklyn, N.Y., operates a successful local hardware store in a competitive urban environment. Shopping at Crest Hardware & Urban Garden Center is a true New York experience where customers can find everything from tools and garden equipment to art supplies and housewares.

The 24th annual Hardlines Conference will be held November 13 to 14, 2019, at the Kingbridge Centre in King City, Ont., just 30 minutes from Toronto’s Pearson International Airport. Register before June 30 and get a whopping 20% off! (To ensure you get early bird pricing for this incredible event, click here now and use the code “EarlyBirdGetsTheWorm”.)

WORLD HEADQUARTERS, Toronto — One mandate of the Hardlines Conference has always been to bring new ideas from outside this sector and the contributions this year will be both powerful and timely.

David Boone, CEO of Staples Canada, will tell the incredible story of how Staples has been transformed from a traditional big box retailer to a destination location that engages its customers with open workspaces, coffee shops, speakers’ platforms and a range of business services.

Conference delegates will also learn from some familiar faces who have taken the Hardlines podium in past years. Peter Norman, Vice-President and Chief Economist at the Altus Group, will discuss the housing and renovation markets and their impact on this industry.

Dan Tratensek, Executive Vice-President and Publisher at the North American Retail Hardware Association is also returning. As in years past, Tratensek will share the latest research from the NRHA on issues and trends affecting independent dealers.

(Register before June 30 and get a whopping 20% off! Click here now and use the code “EarlyBirdGetsTheWorm”.)

ST. JACOBS, Ont. — While Home Hardware is known for its DIY-friendly marketing and advertising campaigns, behind the scenes it is aggressively building its offerings to the commercial customer.

“It’s a huge opportunity and it’s growing for us,” says Dave Bond, sales and marketing manager for Home Hardware’s commercial maintenance business. Speaking to Hardlines at Home’s dealer market in the spring, Bond notes that the wholesalers supplying this sector are typically small and fragmented.

While the channel is dominated by a handful of big international players—Acklands-Grainger, Wolseley and HD Supply—more than 70% of the industry, he says, consists of suppliers with less than $10 million in sales. Bond estimates that 15% of those suppliers are actually doing under $5 million. There’s definitely room to consolidate that supplier base, he says.

With so many smaller wholesalers out there, commercial customers must rely on multiple suppliers to get a wide range of products. Home Hardware’s broad assortments could counter that, says Bond. “We certainly could be a one-stop shop for them.”

But that fragmentation also makes for a highly competitive environment. Home Hardware’s head office is working to educate the commercial customer that their local Home Hardware store is an option for them. In fact, at last year’s fall market, Home Hardware introduced a comprehensive marketing program to encourage and support dealers to grow in the commercial market.  

Dealers willing to develop their local commercial customers can open up a whole new revenue stream. “That business is there if you want to go after it,” Bond says.

TRUMBULL, Conn. ― How and when to sell online are questions many Canadian vendors and retailers are wrestling with. To help the retail home improvement sector up its game in e-commerce, this year’s Home Improvement eRetailer Summit will provide a forum designed to facilitate networking within a curated environment where attendees are shoulder-to-shoulder with industry movers and shakers.

The summit will be held November 6 to 8 at the Kimpton Hotel Monaco in downtown Chicago.

“Every year, we strive to provide our attendees with the opportunity to learn from their peers and to bring back cutting-edge ideas to their companies,” says Sonya Ruff Jarvis, the Summit’s founder.

This year’s event opens with a conversation with Laura Heller, director of external affairs for Performics, and David Weiss, a partner with McMillan Doolittle. They will discuss what has changed over the past year in global retail and e-commerce.

The NPD Group will share its findings on emerging trends in e-commerce, based on its latest data and analysis. Leen Nsouli, an industry analyst with The NPD Group, will present the findings.

Charlene Casey, e-commerce fulfillment specialist with Rakuten Super Logistics, will highlight how a direct-to-consumer approach can meet customers’ expectations for fast and flawless fulfillment and delivery, the two pillars of online retailing success.

Elizabeth Ragone, Lenox’s senior VP-direct to consumer, will moderate a specialty eRetailer panel discussion that features Matt Woods of Cincinnati-based Woods Hardware Stores; Joe Caldwell, director of e-commerce for Sims Supply; and Asa Farquhar, category manager of home improvement for Spreetail.com and VM Express, whose categories of responsibility include tools, hardware, plumbing and electrical.

Spreetail.com, which launched in 2006, develops its own technology, markets the products, manages warehouses and creates original community-focused programs that make a real-world impact. It sells thousands of products through numerous online channels, including two of its own, and ships them to customers in one or two days, free of charge.

The Summit wraps up with a keynote address by Parvez Patel, general manager of eFaucets.com and Hausera.com, which has built a large distribution network in the home and kitchen fixtures space.

(The Home Improvement eRetailer Summit will be held November 6 to 8 at the Kimpton Hotel Monaco in downtown Chicago. For more information, and to request your invitation to participate, please contact Sonya Ruff Jarvis at 203-295-3385. And check out the website here.)

David Chestnut has been promoted at Hardlines Inc. He adds the title of Publisher to his current position and is now Vice-President and Publisher. In this expanded role, David has oversight of our print publication, Hardlines Home Improvement Quarterly (HHIQ), and is in charge of driving revenue for the entire Hardlines Information Network. A senior publishing executive with 25 years of experience who joined Hardlines in 2016, he will continue to work with our advertisers and sponsors to help them build their brands within the $50 billion retail home improvement industry. (David@hardlines.ca)

…that dealers and store managers who wish to attend the Hardlines Conference will get special pricing? That’s right, every year, more and more independent dealers are coming out to Canada’s only national conference for the industry. To be part of this incredible event, contact Savannah Crawford here at the World Headquarters to get the discount code. (For more info, please click here.)

SAINT-DANIEL, Que. ― The Placide Martineau family business is the latest to join RONA as an affiliated dealer. Founded in 1959 by Placide Martineau, in the Centre-du-Quebec region, the business is now owned by the founder’s six children: Christian, François, Irené, Jean-Marc, Mario and Michel. In addition, the family announced earlier this month the acquisition of a store in Saint-Apollinaire, which is already affiliated with RONA, bringing the company’s store count to four. In total, the four stores offer close to 28,000 square feet of retail space and some 275,000 square feet of lumberyard.

MONTREAL — Dollarama reported sales of $828 million in the first quarter, a 9.5% increase from $756.1 million a year ago. Comparable store sales grew 5.8%, over and above growth of 2.6% in the corresponding period last year. Net earnings increased to $103.5 million, or $0.33 per diluted common share, compared to $101.5 million ($0.31 per diluted common share) in the previous first quarter.

OTTAWA — A survey by Friends of the Earth Canada has found that retailers have made great strides in reducing or eliminating the use of plants containing neonicotinoid pesticides, a major threat to the bee population. Top place for neonic-free flowering plants goes to two national firms and one regional chain: Home Depot Canada, Lowe’s Canada and Sheridan Nurseries in Ontario. Canadian Tire responded that at least 87% of its plants have not been exposed to neonic pesticides, and the company believes that over 95% are neonic-free.

TORONTO — A plan by management to take Hudson’s Bay Co. private is being met with resistance by one activist investor. A New York hedge fund operated by Jonathan Litt opposes the proposed share offer of $9.45, calling it too low for the value the company represents. HBC Chairman Richard Baker is leading the effort to buy back shares and privatize the venerable retail company.

SUPPLIER NEWS

VANCOUVER — West Fraser Co. has announced its intention to permanently close its Chasm lumber mill and eliminate the third shift from its 100 Mile House lumber mill, both to occur during the third quarter of 2019. The closings were attributed to timber supply constraints owing to B.C.’s growing Mountain Pine Beetle infestation, recent record wildfires, price declines in lumber markets and high saw log costs.

ECONOMIC INDICATORS

National home sales in May climbed 1.9% from the previous month. Together with monthly gains in March and April, activity in May reached the highest level since January 2018. Actual (not seasonally adjusted) activity was up 6.7% year over year. (Canadian Real Estate Association)

U.S. retail sales grew by 0.5% in May following a 0.3% increase in April. Overall, 11 of 13 retail categories saw growth, with a 1.4% increase among non-store retailers. (U.S. Commerce Dept.)

U.S. housing starts in May were at a seasonally adjusted annual rate of 1,269,000, 0.9% below the revised April estimate of 1,281,000. Sales year-over-year were down 4.7%. (U.S. Commerce Dept.)

NOTED

In the United States, spending on veterinary services has grown at an annual average rate of 10.3% from 1959 to 2017, well ahead of total personal spending on consumption, says a new report from Baron Capital. Walmart is one retailer that is embracing this trend. It announced in May that it’s launching an online pet pharmacy and expanding vet clinics in its stores.

OVERHEARD

“It isn’t a matter of if you are going to sell online, but when. Trends tell us that consumers want what they order now. We want to share knowledge about the process, the warehouses, the team and the benefit to e-retailers.”
—Charlene Casey, e-commerce fulfillment specialist with Rakuten Super Logistics, who will be part of the Home Improvement eRetailer Summit, November 6 to 8 in Chicago.

OTTAWA — With 21 stores across Canada, Lee Valley Tools has always been, since its inception as a catalogue retailer, committed to bricks and mortar. And Lee Valley President Robin Lee is intent on making those spaces vibrant destinations for customer interaction.

The specialty tool and garden supply company started in Ottawa in 1978 and has spread across the country, mainly in major cities, but with some interesting exceptions. In recent years, it has identified smaller centres that serve as destinations in their own right. Two years ago, after debating whether to open in Stratford, Ont. (home to a renowned Shakespearean theatre festival), Lee settled on Niagara Falls, Ont. (shown here and home to, well, Niagara Falls).

(Another store that focuses more on the educational toys, novelties and popular tools available from Lee Valley, called L.G. Lee & Sons, was opened in 2015 in the town of Almonte, Ont., just west of Ottawa.)

Lee is currently focused on continued growth in Quebec. The first store there opened in Laval in September 2018. The success of that location has encouraged him to look for other sites. “Laval is our largest store to date. It features lots of new innovations,” Lee notes.

The next one will be in Brossard on Montreal’s South Shore. Lee expects that one to open in the fall of 2020.

All Lee Valley stores regularly host activities—everything from knife sharpening classes for adults to wood-burning workshops for children. “It’s not about trying to sell tools. It’s trying to promote handcraft and the acquisition of skills,” he says.

Reflecting on the importance of activities for kids, he adds, “It’s a small thing, but it’s an example of how to interact with customers. There has to be a takeaway—and that takeaway doesn’t have to be a product. It can be an experience.”

After Brossard, Lee expects the next store in Quebec to be on Montreal’s West Island, followed by Quebec City. He envisions a total of four stores in the province. After that, he muses, Moncton may be next.

“And we’ll keep an eye on Newfoundland.”

SURREY, B.C. — The Building Supply Association of British Columbia (BSIA) has completed its first Building Supply Warehouse and Distribution class.

The six-week, full-time training program was developed in co-operation with the trade association’s own members, along with the B.C. government and the Northwest Skills Institute. The certificate program covers the essential skills for new staff.

The 15 students who completed the first round of training are now being placed with BSIA members, both retail and supplier, in full-time entry level positions. According to Thomas Foreman, president of BSIA, the program is focused on the essential skills that the members wanted taught so that the graduating students will be ready to work once they have completed the fundamentals.

The schooling is a fully funded program offering unemployed, qualified people a certificate to enter the home improvement industry, on either the retail or supplier sides of the business. It includes placement and coaching for the students for one year.

As of last week, 10 of the students had already been placed and the BSIA is proceeding with the next class beginning June 24. Foreman says a similar program will be launched in Victoria starting in September.

DUBLIN — The seventh Global DIY Summit, held last week in Dublin, drew about 1,000 delegates from 55 countries, including 300 of the top home improvement retailers from around the world.

This year’s motto was “DIY Evolution–Designing the Future Together”. A range of speakers addressed the topics of innovation, digital platforms as new business models worldwide, how to prepare your team to embrace digital transformation, Asia as a new innovation leader worldwide and political and economic forecasts. The challenges of DIY logistics and a global overview of home improvement retailing around the world were also explored.

On the first day, Alexander Börsch of Deloitte presented a global economic and political overview and highlighted the risks and advantages within the era of the Trump presidency, Brexit and other challenges worldwide. The president and CEO of Ace Hardware, John Venhuizen, offered an impressive keynote entitled “The Heart of a Leader”.

A panel discussion, moderated by Steve Collinge of Insight Retail Group, featured DIY industry leaders: Sergio Giroldi of the German wholesaler and retailer OBI, Hartmut Jenner of Alfred Kärcher, Erwin van Osta from Hubo and Vincent Legros of Bostik exchanged views on why innovation really matters to survive and prosper in this era of disruption.

The second day saw presentations focusing on the growth of Asia as the centre of many technological innovations. The highlight of the morning was a keynote from Alibaba’s category group leader, Andreas Kerschner. Another highlight of the Summit was by author and China expert Pascal Coppens, who engaged delegates with his presentation, “China’s New Normal”.

The general perception of the global economy was positive, and most of the speakers forecast more innovation and growth within the next few years.

This year’s closing speech was given by Ibrahim Ibrahim, managing director at Portland Design (and a familiar face at past Hardlines Conferences!―Editor), who talked about the future of retail and the new metrics of winning.

The wrap-up was conducted by the chairmen of the Global DIY Summit, John Herbert, who heads up the retail organizations EDRA and GHIN; and Ralf Rahmede, who represents the federation of manufacturers’ associations in Europe, fediyma).

TORONTO — Hudson’s Bay Co. needs to be free of its shareholders to make long-term improvements, its executive chairman declared last week. Richard Baker is part of a majority group of shareholders looking to buy out the remaining 43% stake and take the historic company private.

With the support of co-working firm WeWork, which acquired key real estate from HBC in 2017, the group is making an all-cash offer of $9.45 per share, almost 50% more than the closing price at the end of the previous week.

“While we continue to believe in HBC’s long-term potential, it has become clear that the significant challenges, risks and uncertainties facing HBC in the rapidly evolving retail environment are best addressed in a private market setting,” Baker said.

“Our all-cash proposal would provide HBC’s public shareholders the ability to realize immediate and certain value for their shares at a substantial premium… We believe that improving HBC’s performance will require significant time and patient long-term capital that is better suited in a private company context, without the emphasis on short-term results and returns.”

HBC has been in the limelight most recently for another reason: Hudson’s Bay Co. CEO Helena Foulkes’s $29.4 million compensation package is facing scrutiny from governance specialists, the Canadian Press reports. The package was one of the highest among Canada’s publicly traded companies last year, yet the company is not among the country’s largest.

Shares of HBC have fallen by 35% since Foulkes took the helm in February of last year. The sum did, however, receive the green light from shareholders, who approved it in a say-on-pay vote.

Sneha Shah has been appointed the new regulatory and ecofees manager at Rust-Oleum Canada. Formerly a product sustainability associate at Colgate-Palmolive, she succeeds Steve Wolinsky, who retired at the end of May.

…that the latest edition of our newest publication, Hardlines Dealer News, has stories about one RONA dealer’s efforts to connect with their pro customers with in-house services, the latest expansion by BMR in Ontario and an innovative hardware store in Brooklyn, N.Y., that attracts customers and tourists alike! Hardlines Dealer News is a monthly e-newsletter available at no charge. Click here now to get your free subscription today!

BOUCHERVILLE, Que. — Lowe’s Canada has joined dealer-owner Bobby Tinkler to celebrate the grand opening of the new RONA Tinsco store in Rawdon, Que. Following a $4 million investment, the new store weighs in at 32,000 square feet, twice the size of its predecessor. It now offers an appliance assortment on site as well as a wider selection of seasonal products, building materials and interior finishing products. “We were starting to feel cramped in our little downtown hardware store,” said Tinkler.

SUPPLIER NEWS

TORONTO — RBC Ventures, a subsidiary of Royal Bank of Canada, has acquired home renovation platform Smart Reno. Currently available in Ontario, Quebec and Alberta, Smart Reno connects consumers to qualified renovation professionals while supporting contractors and trades to efficiently grow their businesses with high-quality leads. Consumers post their requirements and Smart Reno provides free referrals to contractors who are qualified, available and interested in the project.

MONTREAL — Dollarama Inc. reported a first-quarter increase of 9.5% in sales and 5.8% increase in comparable store sales. Diluted net earnings per common share rose 6.5% to $0.33. The discount retailer opened 11 net new stores during the quarter and says it’s on target to reach 60 to 70 net new stores by fiscal year end.

NOTED

The early bird special to register for the fourth annual Home Improvement eRetailer Summit ended last Friday—but guess what! We have negotiated an extension for Canadian suppliers who want to meet some of North America’s biggest online hardware and building materials sellers. You now have until midnight tomorrow (Tuesday). This full-day, invitation-only conference is the only face-to-face event connecting the entire online marketplace for the home improvement industry. To ensure maximum networking, this incredible event is limited to just 80 companies. Further details and registration information can be found at the Summit’s website. But call now!

OVERHEARD

“Business isn’t just about transaction. The transaction, it pays the rent. But it’s about the relationship, products and people. That makes all the difference in the world.”
—Robin Lee, president of Lee Valley Tools, on the specialty tools and garden products company’s dedication to providing distinctive products in an environment that customers trust and respect.

WINNIPEG — The Western Retail Lumber Association (WRLA) has announced it will be moving its annual trade show to Winnipeg in 2021.

The show will be hosted in Winnipeg in 2021, 2022 and 2023. Next year’s show will be held one more time in Calgary’s BMO Centre, from January 22 to 24.

“We feel it is important for the WRLA to engage with all of its members from Western Canada, to provide venues that present new business development opportunities and experiences that will also help to expand the industry community,” says WRLA President, Liz Kovach. “Winnipeg offers a great combination of location and services that will bring enormous value to the membership attending the annual show, while enhancing the community feel of the event, as well.”

The show had its start in Regina in 1994. After two years, it was moved to Saskatoon, where it resided for the next 18 years. It was relocated again in 2015 to its current home in Calgary.

Kovach stresses that the change was made with input from the industry. “We are excited about the move as it will provide an opportunity to freshen up the show and provide vendors the opportunity to expand their customer base.” And given the huge geography her association represents, a fresh location makes sense, she adds.

“So far the feedback is positive. People like the idea of moving every few years and, from our perspective, we see the niche that each location has to offer to help keep the show fresh.”

Proposals from Calgary, Edmonton, Saskatoon and Regina were considered before the WRLA settled on Winnipeg as the show’s next host city. The association is currently working with Economic Development Winnipeg to help support the transition.

ST. JACOBS, Ont. — Amidst ongoing change at the upper management levels and a recent shakeup of its hardlines buying team, Home Hardware Stores Ltd. has made a strategic realignment of its LBM merchandise manager roles. Susan Ryan has been appointed to the newly created position of merchandise manager, millwork, and Mark Pardue has been promoted to merchandise manager, building materials.

Ryan joins the company with more than 20 years of millwork experience at RONA and Lansing. Prior to his appointment, Pardue was Home’s merchandise manager for LBM, Ontario. Both individuals report to Merchandise LBM Director Doug Shantz.

“We believe that this realignment will serve to enhance our strong national and regional LBM merchandise programs, optimize our supplier partnerships and enable us to execute on our vision to be Canada’s most trusted and preferred home improvement retail brand,” said Marianne Thompson, VP of merchandise LBM.

This shuffle is just the latest in a series of changes transforming Home Hardware’s senior executive and buying teams. That includes the hiring of Thompson herself, who only joined the company in January. As both a company outsider and someone from the vendor side, her appointment was an indicator that Home Hardware was prepared to make significant changes under the direction of President and CEO Kevin Macnab, who took the helm last autumn.

Barely a month ago, Home Hardware reshuffled its hardlines buying team. Brian Straus and Dave Martin were appointed as directors, merchandise hardlines, with Richard Sweeney and Mike Morin named merchandise managers, both reporting directly to Martin.

MISSISSAUGA, Ont. — In a time when traditional retail is barely flat—volume growth in the retail home improvement industry in 2018 was just ahead of the rate of inflation—while online sales grew 22% last year, how can retailers truly measure the performance of their traditional retail footprints?

According to Doug Stephens, the “Retail Prophet”, stores can actually help retailers cut through the clutter of messages and products that exist online. As digital gets “crowded and noisy”, the challenge of breaking through that clutter increases. He spoke late last month at the Retail Council of Canada’s annual STORE conference.

“How do digital sellers insert their message in that crowded marketplace?” Stephens asked his audience during the opening keynote. The answer, he said, is in those stores. The metrics of how many impressions a store makes on people who come in can be multifarious, ranging from exposure to new products and project ideas to meaningful interaction with store associates.

Stephens went on to note that many of the functions performed by staff in a store can likely be replaced by artificial intelligence (AI), but these will be limited to tech duties and routine jobs. Staff must be enabled to be brand leaders and storytellers for one’s store. They are the ones who will create the customer engagement that will make coming into a store a worthwhile experience.

MISSISSAUGA, Ont. — The online experience should not be distinct from a retail store. It’s all part of a journey by the customer to find the right product for their needs.

That was just one of the observations that Shawn Stewart, VP, loyalty and customer insights at Canadian Tire, shared at the Retail Council of Canada’s annual convention, held late last month. He was part of a panel moderated by Paula Courtney, product founder at consumer insights company WisePlum.

Courtney asked Stewart what customer interaction with the Canadian Tire website looks like. He explained that it can range from web browsing by a consumer looking for information—for a purchase that may happen days or weeks out—to someone frantically trying to buy a shovel in the midst of a big snowstorm.

A big hurdle for Canadian Tire as it tested digital shopping was how to sell a product online while including the local associate dealer in the sale. The solution has been found in the increased visits and add-on sales that online sale can generate for the associate dealer. As buy online, ship to store has become a wider reality, dealers enjoy the added traffic from those online customers coming into their stores—where they typically buy more once they’re there.

Canadian Tire has been investing heavily in its e-commerce platform in recent years, rolling out a deliver-to-home program six months ago. Online sales had a hand in driving the company’s first-quarter results.

Stewart fully expects online to become an integral part of the customer experience, one that ties in with the offering and features of bricks and mortar. He says the online window can draw people to the store for a meaningful experience, where they can touch and feel products, benefit from the expertise of associates and get exposed to Canadian Tire’s wide range of home brands.

(We’re super excited to announce that both Paula Courtney of WisePlum and Shawn Stewart of Canadian Tire will join us at the Hardlines Conference, November 13 and 14 at Kingbridge Centre near Toronto. Courtney will conduct a “fireside chat” with Stewart to help us understand the challenges and benefits of good data collection through loyalty programs. Click here for more info about the conference!)

EAB Exchange-A-Blade has added two territory managers to its sales team in Canada. Heather Rodman joins the company as territory manager for Sudbury and Northern Ontario, bringing with her more than 20 years of experience in outside sales in the consumer goods retail industry. Gerry Deagnon is the new territory manager for Southern Alberta and the Kootenays. His experience includes 22 years in power tool and power tool accessories sales.

Derby Building Products has named Perry Smyth as retail territory sales manager, Ontario. In this role, Smyth will manage the growth of Derby’s Novik brand of exterior cladding to home improvement dealers in the province. Smyth brings more than 15 years of experience to the Novik sales team, including time as territory manager for Nestle and Coca-Cola.

…you can read our sister publication, Hardlines Home Improvement Quarterly, online? This magazine gets mailed to 11,000 dealers and managers across the country four times a year. But you can access back issues of HHIQ anytime on our website—and they go all the way back to 2013. Check them out here!

BOUCHERVILLE, Que. — La Coop Alliance officially opened its new BMR store in Saint-Georges, Que., last week, the result of a merger of two BMR stores in the town. The new location has a clean storefront design with a large window to give customers a sidewalk view of the interior. A designated space has been set up to make in-store pick-ups easier for online orders.

BOUCHERVILLE, Que. — In time for Father’s Day, Lowe’s Canada is adding 300 new products to its Craftsman tools and accessories. The new assortment includes a larger selection of key Craftsman lines such as mechanics’ tools, pliers and wrenches, levels and squares, hand saws, hammers, screwdrivers, electronic measuring tools, mitre saws and outdoor power equipment. It also includes new categories like garage organization, air compressors and cordless pneumatic nailers. The products are produced under license by Stanley Black + Decker and sold exclusively in Canada through Lowe’s Canada’s various banners.

HOFFMAN ESTATES, Ill. — Sears has cut the ribbon at the first three stores under its new Sears Home & Life banner. The smaller-format stores range in area from 10,000 to 15,000 square feet and omit apparel categories in favour of a focus on appliances, mattresses, tools and smart home products. The new stores are in Lafayette, La.; Overland Park, Kan.; and Anchorage, Alaska.

BOUCHERVILLE, Que. — Lowe’s Canada presented $1.13 million to Children’s Miracle Network and Opération Enfant Soleil following its second fundraising campaign. From March 24 to April 30, Lowe’s, RONA, Reno-Depot and Ace Canada corporate stores and participating affiliate dealer stores collected donations from customers to support 14 children’s hospitals across the country. The company also participated in the Opération Enfant Soleil telethon in Quebec and the B.C. Children’s Hospital Foundation Miracle Weekend telethon in British Columbia.

ISSAQUAH, Wash. — Costco had April net sales of $11.67 billion in May, an increase of 5.9% from $11.02 billion last year. For the 39-week year to date, net sales reached $111.56 billion, up 8.0% from $103.26 billion. Comparable sales for the month were up 4.2% and up 6.3% year to date.

SUPPLIER NEWS

VANCOUVER — West Fraser Timber has announced temporary production curtailments during which all mill activities will be curtailed for one week in June at five B.C. sawmills: Chetwynd, Quesnel, Williams Lake, Smithers and Fraser Lake. The company cited sustained weak pricing in global lumber markets and high log cost in making the decision. Lumber production is anticipated to be reduced by approximately 30 million board feet.

ECONOMIC INDICATORS

U.S. construction spending remained unchanged in April as homebuilding activity fell. Government spending on public infrastructure offset the decline in home construction. April’s lack of movement follows on a slight uptick of 0.1% in March. All told, spending in the private sector fell 1.7%, the largest decrease in six years. It was the fourth consecutive monthly decline for residential construction. (U.S. Commerce Dept.)

OVERHEAD

“The idea of lining up people at cash registers is an outdated one.”
—Doug Stephens, retail analyst with Retail Prophet, on the need to arm store employees with mobile checkouts increase the ability of staff to effectively represent a store’s brand. He spoke at the recent STORE convention in Toronto.