LAS VEGAS — During the National Hardware Show, held last month in Las Vegas, Hardlines ran into lots of buyers from retailers around the world. But one retailer was on the show floor in force, with buyers representing a range of hardware and building materials.

Hardlines spoke with one Amazon buyer, a senior vendor manager who asked to remain nameless as he wasn’t authorized to speak on behalf of the company. He and about 14 members of his buying team were walking the show to meet with existing suppliers and connect with some new prospects. At least two other divisions from Amazon’s buying teams were present, as well, he said, with a similar number of people in each contingent.

Many of them, the buyer said, have been coming to NHS for years. He admitted it’s an important show for him. Amazon’s presence at NHS is a clear indicator of the company’s commitment to the home improvement channel.

The online seller has been aggressively adding private labels of its own in a range of product categories. These brands include lines that are sold exclusively through Amazon and brands that are owned outright by the company. While the predominant areas for this private-label strategy are tech, clothing and accessories (according to one online source, 90% of the batteries sold on Amazon are the company’s own brand), it’s also dipping into home furnishings and décor.

If the dozens of buyers in Las Vegas last month offer any indication, hardware and building products is clearly in the retail juggernaut’s sights for further expansion.

TORONTO — In its ongoing effort to improve service to one of its key customer segments, Home Depot Canada is continuing to work with its pro customers to get the materials they need to their jobsites.

Pam O’Rourke, VP merchandising at Home Depot Canada, explains that the company is trying out more ways to provide the large job lots that contractors and builders require—and get those large lots to their jobsites. And she notes that this strategy is being expanded to new products.

As Home Depot Canada’s online side grows, the need to get bigger products shipped is also a challenge the company is tackling.

“We know that more than 77% of our in-store customers start their purchase journey at home. With 43% of online purchases bought online and picked up in stores in the first quarter of this year alone, we know that there cannot be a gap between the physical and digital experience.”

Home Depot Canada is not alone in its quest to get big products right to the customer’s door. Canadian Tire is banking on delivery from store to home as a way to get big items that last mile cost effectively, given the large number of stores it has. “We see deliver-to-home really setting us apart when it comes to large items and bulk,” said CEO Stephen Wetmore.

“Canadian Tire boasts 500-plus stores and 12 million square feet of warehouse space within a 15-minute drive of most Canadians and almost all of our dealers are acting as local carriers for ship to home―with a strong advantage here in owning the last mile.”

While Canadian Tire is focused mainly on consumers, Home Depot Canada is aggressively trying to grow its sales to contractors. Finding new and cost-effective ways to get large orders delivered is important. “We are looking at big and bulky,” O’Rourke noted.

That larger order should also be part of what O’Rourke views as a retail fundamental, finding those add-on sales. In today’s market, she notes, it’s not enough to sell just a product. Staff must think in terms of selling the entire project.

OTTAWA ― The Home Depot Canada Foundation is a key part of Home Depot Canada’s identity and how the giant retailer operates in this country. Through an initiative called the Orange Door Project, the charitable organization pours money and resources into alleviating and preventing youth homelessness and recently announced a major expansion of its contribution.

The foundation started in 2013 with a $10 million, three-year commitment to help homeless youth. In 2016, the company doubled that commitment to $20 million over two more years. Most recently, Home Depot Canada expanded its support with a further commitment of $30 million to carry the foundation through to 2022, representing a total of $50 million.

In addition, Home Depot Canada staff collectively donate about 60,000 volunteer hours to community projects across the country.

“As one of the fastest-growing segments of the homeless population in Canada, we know that many young people first experience homelessness in their early teens; we don’t think that’s right,” says Pam O’Rourke, who, in addition to being VP of merchandising at Home Depot Canada, is chair of the foundation’s board.

She notes that young people make up one of the fastest-growing segments of the homeless population in Canada, with many individuals ending up on the streets as young as their early teens.

The foundation cites research that indicates early intervention is critical to breaking the cycle of chronic homelessness later in life. Through its expanded commitment, the foundation will fund research to better understand the causes and conditions of homelessness. Direct involvement with homeless youth involves a range of services, including providing life-skills training and improved housing options for more than 450 community agencies across the country.

“By working with our sector partners and youth directly impacted, we can better understand the issues they face, make the right investments in the right places and truly make an impact,” O’Rourke adds.

(For more information, visit: www.orangedoorproject.ca.)

MOORESVILLE, N.C. — In an interview with North Carolina Biz News Wire, Lowe’s CEO Marvin Ellison looks back on his first year at the helm of the U.S. big-box home improvement chain.

“When I came to Lowe’s, I quickly saw that the existing strategy was too complicated,” Ellison says. “It was hard for our leaders to prioritize and align, and it was hard for our associates to understand the role they played in Lowe’s success.”

Shortly into his first year, Ellison began to eliminate non-essential business initiatives he said didn’t benefit Lowe’s. Among them were Resolve, a contracting recommendation network, and its Iris line of smart home products. At the time, Ellison said the decision would enable Lowe’s to “intensify [its] focus on the core retail business.”

This move enabled Ellison and his team to “allocate Lowe’s capital toward the company’s products, customer-service experience and technology that removes friction” for customers, according to the article.

The report notes that since Ellison became Lowe’s CEO, the company’s stock has risen nearly 17%.

Ellison also commented on the importance of striking a balance between pro and DIY customers. “I’m also committed to gaining back our valuable pro customers without losing the qualities that make us a great place to shop for DIY customers.”

Ellison became CEO of Lowe’s in July 2018, after previously serving as CEO of J.C. Penney Co and as an executive vice president of Lowe’s rival, The Home Depot.

Sean MacCormack has been named chief financial officer of Home Hardware Stores Ltd., effective June 12. A 25-year finance veteran of Canadian retail, MacCormack’s background includes experience in retail food, pharmacy and general merchandise. MacCormack replaces outgoing VP Finance Grant Knowlton, who is retiring after 30 years at Home Hardware.

At Rockwool, Mike Goyette has been appointed director of sales, commercial and residential, Canada starting June 10. He will report directly to Brian LeVoguer, vice-president building insulation. Goyette joined Rockwool (then ROXUL) in 2009 and replaces Tom Lee, a 28-year veteran of the industry, who joined Rockwool in 2007. He has retired effective June 1.

Henkel has appointed Mike Olosky as regional president for North America and regional head of adhesive technologies for the Americas. As North American president, Olosky succeeds Jerry Perkins, who retired from the role last year. Based out of the Henkel’s adhesives office in Irvine, Calif., Olosky will continue to play a global role in the direction of the company’s adhesives business.

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MARMORA, Ont. — Drummond Building Supplies celebrated 60 years of history this past weekend. The third-generation family business was founded in 1959 and is now run by sisters Peggy and Debbie Drummond. They joined BMR in 2006 and became Outstanding Retailer Award winners in 2010. They attribute their success to a recent expansion that brings the store to more than 10,000 square feet and to “our passion and hard work, but also to our faithful customers, with whom we have maintained a special relationship from the very beginning. They are the ultimate reason for our existence.”

MISSISSAUGA, Ont. ― Walmart Canada is extending its Walmart Rewards Mastercard to Quebec. The credit card allows customers to save by earning Rewards Dollars on their purchases. Unlike points, these dollar equivalents allow for simple tracking of how much the user can redeem.

TORONTO ― Canadian Tire Corp. and Myant Inc. are partnering to introduce wearable computing and smart textiles to Canadian Tire’s banners. Toronto-based Myant’s proprietary fibre-based innovations will be added to Helly Hansen, Woods and Dakota products. Myant’s SKIIN Textile Computing platform integrates biometric sensors, heat generation technology and electroluminescence into clothing. It allows apparel and footwear to light up at night for improved visibility and to connect with smart devices to record performance and health information from heart rate to blood oxygen levels.

ISSAQUAH, Wash. ― Costco Wholesale Corp. had net sales of $11.6 billion in April, an increase of 7.3% from $10.81 billion last year. For the 35-week year to date, net sales reached $99.89 billion, up 8.3% from $92.24 billion. Comp sales company-wide were up 5.4% for April, and up 6.6% year to date. Canada was slower, with a comp decrease of 1.9% in April and an increase of only 1.1% year to date. Not including gasoline sales, Canadian comps were up 2.3% and 5.4%, respectively.

SUPPLIER NEWS

SADDLE BROOK, N.J. — Arrow Fastener Company kicked off its 90th anniversary at the 2019 National Hardware Show with the introduction of several new tools. Arrow also previewed a limited edition of its T50 staple gun, stamped with a commemorative 90th anniversary seal, which will be available at retail this summer. Morris Abrams founded the company in 1929. At first he sold staples for staplers currently on the market, but by 1940, he had received his first stapler patent. The T50 was introduced in the early 1950s.

NEW BRITAIN, Conn. ― Stanley Black & Decker announced its plans to open a manufacturing plant for its Craftsman line in Fort Worth, Tex. Groundbreaking on the 425,000-square-foot facility is set to begin this summer, with a scheduled completion in 2020. The company said the new factory will create 500 new jobs. Stanley Black & Decker acquired the Craftsman line in 2017 from Sears, which retained the right to carry a selection of Craftsman products under the deal. Stanley filed suit against the department store chain in March, alleging Sears violated the agreement by launching a new Craftsman line and touting itself as “the real home of the broadest assortment of Craftsman” in its marketing.

NOTED

Each year, Arrow Fastener processes 600 million metres of wire into nearly 35 billion staples—enough to go around the world 15 times—with wire to spare.

MOORESVILLE, N.C. & ATLANTA ― The two largest home improvement retailers in the world reported their first-quarter financials last week, with positive results from both companies, despite a slow start to the year due to wet weather through much of the U.S.

Lowe’s Cos. reported net earnings of $1 billion for the quarter, up from earnings of $988 million for the same period last year. Sales for the quarter rose 2.2% to $17.7 billion, from $17.4 billion a year ago.

At Home Depot, first-quarter profit and revenue exceeded analyst expectations while same-store sales missed estimates, weighed down by damp weather and an additional week in the previous fiscal year. Earnings rose from $2.4 billion to $2.51 billion and net sales increased by 5.7% to $26.38 billion, compared to $24.95 billion a year ago.

Weaker prices for lumber products compared to a year ago had an impact on the results for both companies. Lowe’s President and CEO Marvin Ellison also laid some blame on inefficiencies within the company’s back end, as well as the need for its merchandising teams to adjust to their new roles following significant reshuffling over the past six months.

Lowe’s announced the acquisition of a retail analytics platform from Boomerang just two days before the release of its Q1 results, considered a step toward improving the back end.

Home Depot’s comparable store sales rose by 2.5%, while Lowe’s comps were up 3.5%―and up 4.2% for its U.S. home improvement business. Comp sales for Lowe’s Canada were negative and were blamed on the softening housing market in this country.

Lowe’s previously announced its intention to exit its Mexico retail operations and had planned to sell the operating business. Following a market evaluation, however, the decision was made in the first quarter to instead sell the assets of the business, resulting in an $82 million tax benefit.

For the year, Home Depot forecasts a sales increase of 3.3% and comp sales up about 5%. Lowe’s expects sales and comps to increase by about 2% and 3% respectively for fiscal 2019.

TORONTO ― Canadian Tire Corp. saw its Q1 profits decline to $69.7 million, or $1.12 per share, compared to $78 million ($1.18) a year ago. However, revenues ticked up to $2.89 billion, from $2.81 billion in Q1 of 2018. The sales increase at the Canadian Tire banner was healthier, rising by 7.4%. Comparable sales climbed by 7.1%.

The latest reporting period marks Canadian Tire Retail’s 20th straight quarter of topline sales growth, despite a mild December and a slow start to January that hampered sales for the beginning of the year.

However, much of that strong Q1 growth was driven by automotive service, up 9%, and especially the sale of snow tires.

Online sales growth contributed to the company’s first-quarter results, as well. Canadian Tire rolled out a deliver-to-home program six months ago. According to CEO Stephen Wetmore, the process has generated some interesting insights. “First, our best in-store customers are also our best e-commerce customers. It’s a great starting point for our strategy to build a true omnichannel experience focused on growing the customer, not the channel,” he said in a call to analysts.

He added that the sheer number of Canadian Tire stores across the country will serve as an effective distribution network for deliver-to-home, especially when it comes to large items and bulk purchases.

Canadian Tire has been investing heavily in its digital platforms, as well. The company now has close to 170 people working on its website and digital properties, up from 50 people previously.

BOUCHERVILLE, Que. ― BMR Group earlier this month held the official opening of its first store in Ontario under the BMR Pro banner, Griffith Building Supply in Greater Madawaska township.

Owners John Lacourse and Derek McGrimmon unveiled the new look of the store. A new 2,000-square-foot area has been built to store more products and offer an expanded line of materials. “We are very happy, and especially very proud, to open the first BMR Pro store in Ontario,” said Pierre Nolet, BMR’s VP of business development, calling the new dealer “an important ally in Ontario.”

The BMR Pro concept offers a range of services and products to cater to the specific needs of trades and contractors. While the format can vary according to each dealer and their local market, the concept typically involves:

Other traditional services remain in place, including on-site delivery, project estimates, cutting, truck fleets, phone-in orders and charge accounts.

The first Quebec store for BMR Pro banner is currently under construction in Trois-Rivières, with an existing BMR dealer, BMR Pierre Naud. That store is expected to open in the late summer.

LONDON ― British big box home improvement retailer B&Q has launched a new smaller store concept to offer its customers a more convenient way to shop for home and DIY products. It’s also being tested as a way to establish convenience hardware retail in a densely populated urban location.

Called GoodHome by B&Q, the store is in Southwest London, just outside Croydon, and marks a departure from the DIY chain’s larger footprint. The new concept is just 5,400 square feet in size, with 1,615 square feet devoted to retail selling space. It carries about 6,000 SKUs.

That’s significantly smaller than a big box B&Q, which typically weighs in at 100,000 square feet and 40,000 SKUs. However, the core range of products will also be available for same-day delivery, with an extended range of more than 20,000 additional products available for next-day in-store or home delivery.

Products are not stocked in the store in a traditional manner. Customers have the choice of buying items using in-store digital screens or through a dedicated B&Q app. They can then go to a checkout counter to collect their purchases. Click-and-collect orders can be ready in five minutes, the retailer claims.

Customer service plays an important part in the strategy of the Goodhome concept. A staff of trained associates is on hand to answer questions and help customers complete their project purchases.

At Shnier, the Brampton, Ontario-based flooring company, Tammi Tremble has added the role of director of marketing to her existing title as director of national accounts.

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HIGH LEVEL, Alta. ― The local Home Hardware Building Centre and Co-op Cardlock are among businesses remaining open to serve firefighters after about 5,000 residents evacuated this northern Alberta community last week. The mandatory evacuation order was issued as the wildfire reached within five kilometres of High Level. Firefighters from across the country were rallying this past weekend to help battle the blaze.

BOUCHERVILLE, Que. ― A new RONA Deslongchamps store has opened in the Algonquin community of Kitigan Zibi, near Maniwaki, Que. The store is dealer-owner Éric Deslongchamps’s first in the Gatineau Valley, joining his locations in Rivière-Rouge and Mont-Laurier in the Upper Laurentians.

SASKATOON ― Federated Co-operatives Limited has reached an agreement with Terra Grain Fuels to purchase TGF’s ethanol plant near Belle Plaine, Sask. The acquisition will position local co-ops to provide renewable fuels to their members and to prepare for the impending national Clean Fuel Standard.

MOORESVILLE, N.C. ― Lowe’s Cos. Has acquired the Retail Analytics platform from Boomerang Commerce, based in Mountain View, Calif. The platform processes product and pricing data sets to guide pricing and merchandise assortment decisions.

OAK BROOK, Ill. ― Ace Hardware Corp. reported record first-quarter revenues of $1.38 billion, an increase of 5.1% from the first quarter of 2018.  Net income almost doubled to $22.6 million, driven by revenue growth and the timing of vendor funds earned. Comp sales were up 3.9%. The company added 21 net new stores in Q1.

SUPPLIER NEWS

MISSISSAUGA, Ont. ― M-D Building Products has moved to a new retail distribution centre. Shipping from the facility began on May 10. Its capacity is more than five times that of the previous distribution centre. It will also house the company’s retail customer service team and sales and marketing department, along with its new, expanded Prova training centre. With the move, M-D consolidates its previous third-party logistic facilities into a single company-owned centre.

OTTAWA ― The Department of Natural Resources has announced the winners of the 2019 Energy Star Canada Participant Awards, “for helping Canada build a clean energy future and address global climate change.” Manufacturers of the Year include Samsung Electronics Canada (in the appliances category), Centennial (for windows and doors), Venmar Ventilation for HVAC and L’Image Home Products for lighting. Now in their 16th year, the awards recognize companies that have demonstrated excellence in promoting the most energy-efficient products and new homes in Canada. The Home Depot Canada was named National Retailer of the Year.

TOLEDO, Ohio ― Corporate Responsibility magazine has named Owens Corning number one on its 100 Best Corporate Citizens list for 2019. This is the fifth year in a row Owens Corning has been named to the list: last year, it ranked third. The 100 Best Corporate Citizens ranking is based on 134 corporate disclosure and performance factors in seven categories: climate change, employee relations, environment, finance, governance, human rights and stakeholders and society. Other firms making the list this year are 3M Co. (at number 22) and Weyerhaeuser (number 59).

VANCOUVER ― West Fraser Timber Co. has announced it will curb production for about two weeks at its Chasm and 100 Mile House, B.C., sawmills. The company made the call in the face of weak lumber pricing, high log costs and a squeeze on timber supplies. In addition to curtailments already announced, SPF lumber production is expected to fall by some 20 million board feet.

ECONOMIC INDICATORS

U.S. housing starts rose by 5.7% to a seasonally adjusted annual rate of 1.235 million units in April, with gains in both the single- and multi-family residential segments. Drier weather and falling mortgage rates reportedly contributed to the growth. (U.S. Commerce Dept.)

U.S. retail and food services sales dropped 0.2% to $513.4 billion seasonally adjusted in April from the previous month. However, sales were up 3.1% year over year. Total sales from February to April were up 3.0% from the same period a year ago. (U.S. Commerce Dept.)

NOTED

Canadian Tire Corp. has reached the first anniversary of the launch of its Triangle Rewards program. According to CEO Stephen Wetmore, more than 50% of customers at Mark’s Work Wearhouse, SportChek and Canadian Tire are using the loyalty program, representing 100 million transactions over the past year.

OVERHEARD…

“One of the key components of our transformation here at Lowe’s is to modernize our technology. Pricing and assortment planning have been identified as strategic areas in need of modernization. And when we find the right assets available to buy and advance our strategy, we’ll do that.”
―Seemantini Godbole, Lowe’s chief information officer, on the company’s acquisition of new technology to help it with, well, pricing and assortment planning.

LAS VEGAS — The National Hardware Show is the destination of the home improvement industry for all of North America, not to mention a range of other countries internationally. But for the Canadians who look forward each year to attending, the show is considered in many ways their Canadian hardware show.

From a purely practical standpoint, the lack of a single national trade show for the industry in this country certainly contributes to the National Hardware Show’s popularity north of the border. Certain aspects of the show—and the town—lend themselves to attracting Canucks, be it the popular Maple Leaf Night, held by the Canadian Hardware and Housewares Manufacturers Association, the gambling and shows, or even those two-dollar margaritas at happy hour (leave out the personal reminisces, please.—Editor).

So why did so many people, retail buyers and vendors alike, share with Hardlines their sense that Canadian attendance “was off,” as the head of one mid-sized chain of hardware stores suggested? Even this editor’s experience on the show floor reflected the sense that the Canuck contingent was not as strong as in the past.

Certainly, there were lots of Canadian buyers walking the show, including the return of Lowe’s Canada after a last-minute no-show at last year’s event. Besides contingents from Canadian Tire, Home Hardware, TIMBER MART and Home Depot, regional retailers and independents were well represented, including UFA, Peavey Industries, BMR Group, Lee Valley Tools, Federated Co-operatives, McMunn & Yates and Patrick Morin.

While the show could benefit from attendance by more Canadian independents, these dealers in turn would benefit from exposure to new products and new ideas, both of which were represented in abundance at this year’s show. While not a year necessarily of big innovations, many buyers agreed that there were lots of good ideas and unique niche items that made the trip worthwhile.

Here are some new products at the show that caught our eye:

• A broom from Garant, designed for commercial use, with a patented design that features four different layers of bristles. “It’s a one-pass broom,” says Garant’s Jean Goudreault.
• A couple of innovations from MD: a weather strip for doors embedded with diatomaceous earth to prevent insects from creeping into the home, and a line of levels that can be disassembled to fit into a toolbox.
• The rollout of a non-toxic paint stripper by Super Remover that claims to be as effective as traditional strippers.
• A flat-panel heater that affixes to the wall from Amare. This one has an additional panel covering the heater to prevent burns.
• Knitted cotton furniture leg sleeves to protect floors from scratches, courtesy of Nancy Protectz.
• Rip-resistant disposable gloves by Venom Steel that are latex-free and chemical-resistant.
• Shurtech Brands introduced Brute Force duct tape for contractors and serious DIYers. It features a patent-pending technology to give it enough strength to pull a 700-pound sport vehicle in the booth at the show.
• Caframo was showing its new 8200 series Ecofans, which the company says provides increased performance over traditional its Ecofans. The fans sit on the hot surface of a wood stove and blow the heat through the room, using only the heat of the stove itself to power the fan. Made of anodized aluminum and manufactured by Caframo in Canada.

In addition to the new products, heritage companies like Richelieu Hardware were present to support their Canadian customers with their core product lines, even as they seek to crack new markets in the U.S. Whether brand new or tried and true, there was lots to see on the floor of the latest National Hardware Show. Buyers―and a growing number of independents―would benefit from adding this show to their calendars in 2020.

(Click here to see a photo gallery of some of the products we saw at NHS.)

ST. JACOBS — Recent appointments within Home Hardware’s merchandise hardlines team are just the latest changes in an ongoing reorg at Home Hardware under the leadership of President and CEO Kevin Macnab. The first major addition to the executive team under his tenure was Marianne Thompson, who joined at the beginning of the year as vice president, merchandise LBM.

Further changes to the merchandising team on the hardlines side, under Merchandise VP Joel Marks (shown here), came with the appointment of Brian Straus and Dave Martin as directors, merchandise hardlines. Then, just days later, Home Hardware announced a complete shuffle of its hardlines buying team. With the realignment comes the creation of a third director role, who will be responsible for executing on the plan to buy and sell for the hardlines portfolios.

An important part of the reorg is the establishment of the director roles, which will free up those individuals to manage and coach the merchant teams, leaving the day-to-day buying decisions to the merchants themselves.

“The reallocation of categories furthers our goal of providing our dealers with the best program for independents in the industry,” Marks noted. “We believe that this realignment will serve to enhance our strong merchandise programs by optimizing our vendor partnerships and will play a critical role in our journey to be Canada’s most trusted and preferred home improvement retail brand.”

Several people have new or expanded roles. For example, Jason Boshart was in charge of automotive and now oversees HVAC, as well. Derril Linseman and Mike McClennan have exchanged portfolios, Sandy Jordan has taken over paint from Sharon Huver, and Mike Zuk has stepped into the seasonal portfolio that Jordan exited. Huver has moved over to appliances.

The updated category responsibilities will take effect on May 27, 2019. To see how the teams have changed, click here.

MISSISSAUGA, Ont. — It’s a pretty safe bet that just about every hardlines vendor would be happy to do business with The Home Depot Canada. In fact, happy would be a gross understatement. So it was not surprising to find the room filled almost to capacity one morning earlier this month when Pam O’Rourke, VP of merchandising for Home Depot Canada, talked about just that topic.

After giving some general background and updates on the company (see last week’s mind-boggling issue—Editor), O’Rourke got down to some basics of what the company is doing to buy smarter and how suppliers can fit into that scenario.

For example, Home Depot is using data to better understand how the customer shops in their stores, searches online for their products and decides what to buy. With enhanced tracking, she noted, “we can understand what’s trending in each of our stores”—information that is important when working with vendors to maintain that in-stock position, both from a store perspective and the perspective of how any category is working in each store. She told the vendors they could expect more personalization of the retailer’s connection with its customers, getting a better profile of each customer.

Next, O’Rourke zeroed in on a key tenet of retail: “New sells.” New products and new ideas are available to customers with the click of a keyboard, “so we have to be able to deliver,” she emphasized. She observed that in the past, developing a product idea, getting to the prototype stage, testing it and then fully getting it to market could take up to four years. “Now, it’s happening in half that time.”

She called on suppliers to take ownership of communicating new product ideas as quickly as possible.

Online also offers an entry point for new products and new vendors. Products can be tested online through Home Depot on a limited basis, giving vendors time to get used to the requirements of doing business with the giant retailer. If those new items gain traction with customers, they could become part of the in-store mix. Another way to ease into a relationship with Home Depot Canada is through a store test in a small group of stores to start. “It’s a great way to get to know each other.”

O’Rourke then addressed one of the key components of the vendor-retailer relationship: price. With the likes of Amazon readily available with the lowest price possible on millions of products, she exhorted vendors to come to the table with the right product, the right value and with innovation. Value and innovation are just as important as price.

“We are committed to providing that right price for our customers every day.”

SURREY, B.C. — A new training program from the Building Supply Industry Association of British Columbia has launched with its first class of 12 students. Designed for entry-level workers, the Building Supply Warehouse and Distribution Training Program started April 23 at the BSIA’s office in Surrey.

In co-operation with the trade association’s own members, the B.C. government and the Northwest Skills Institute, the BSIA has developed the six-week industry specific certificate program. It’s available to people willing to commit to the training and to accept full-time employment within the home improvement industry, either on the supply side or in retail.

“What an incredible program,” says BSIA President Thomas Foreman. “It’s helping unemployed people to be trained and educated with the essential skills that our members have asked for. Once they have completed the course, we’re able to place them with our members into entry-level positions, trained, educated and ready to go.”

The six-week curriculum includes training in warehousing and distribution, workplace safety awareness, first aid certification, quality control and job entry skills. The program is open to any Canadian citizen or permanent resident and is designed to assist the unemployed and under-employed. It’s 100% subsidized for eligible, qualified participants, with almost $500,000 available in grant money to ensure the program’s success. Foreman calls it “a huge win for our industry,” which, like so many other sectors, faces a shortage of workers.

The course will be repeated two more times over the coming weeks. (For more information, contact bswd@manufacturingbc.org or call 604-900-1980, ext. 143.)

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BOUCHERVILLE, Que. ― Lowe’s Canada is celebrating the 100th anniversary of RONA’s Bradford, Ont., store. Founded by James Spence as Spence Lumber in 1919, the business operated as a lumber yard until the trend of home renovation and DIY repairs inspired a move and expansion several decades later. In 2008, Dennis Doidge and Ted Minty bought the business. They went on to create Doidge Building Centres in 2017 by bringing together other home improvement businesses they had acquired in Ontario over the previous two decades.

BOUCHERVILLE, Que. ― BMR Group recently celebrated the opening of the Quincaillerie Stéphane Baril store in Saint-Hubert, Que., under the BMR Express banner. Owners Stéphane Baril and Annie-Claude Hamelin decided in November to change their banner after 30 years in business.

BOUCHERVILLE, Que. ― Fraser Valley Building Supplies in Abbotsford, B.C., has joined the Ace Canada team. The store features a 10,000-square-foot retail sales area as well as a four-acre drive-through lumber yard. The banner conversion translated into a local investment of approximately $100,000 and created four new jobs, bringing the total number of store employees to 28.

OTTAWA ― Giant Tiger celebrated the grand opening this past weekend of a new 15,785-square-foot store in North Battleford, Sask. The event featured free activities for customers of all ages, including face-painting, promotional and gift card giveaways and a visit from Friendly, the Giant Tiger mascot.

BOUCHERVILLE, Que. ― Lowe’s Canada has welcomed Quincaillerie J.M. Rioux in Forestville, Que., to its RONA affiliated dealer network. Founded in 1986 by Jean-Marie and Denise Rioux, the family business is now operated by their daughter Marie-Claude and her spouse, David Martel.

BOUCHERVILLE, Que. ― Store Mag, a family-run business in New Richmond, Que., has joined RONA’s affiliated dealer network. Owner Benoit Durand previously specialized in window coverings, flooring and home décor. Now the business has been expanded to accommodate almost 3,000 feet of hardware products. Since its founding in 1988, Store Mag has also added paint, home décor and flooring departments.

SUPPLIER NEWS

VANCOUVER ― Canfor Corp. reported an $89.5 million loss in the first quarter as revenues fell compared with a year ago. The forestry company had posted profits of $112.2 million in Q1 of 2018. Sales of $1.15 billion were down from $1.23 billion a year ago. Earlier this month, the company reduced operations at its B.C. lumber mills on account of low prices and high fibre costs, a move expected to cut its output by some 100 million board feet.

MONTREAL ― Members of AQMAT, the Quebec association for the retail home improvement industry, and Canadian Club gathered at Montreal’s Fairmont Queen Elizabeth earlier this month to hear Richelieu Hardware President Richard Lord discuss the company’s success. The firm officially became a billion-dollar business in January, on the heels of its 50th anniversary. “We took the risk of innovation,” Lord told the gathering, “because waiting to be 100% sure of a product’s success before putting it on the market is to be 100% sure of being too late.” Lord himself is marking 30 years at the helm of Richelieu this year.

VANCOUVER ― Acadian Timber Corp. reported Q1 sales of $30.9 million, compared to $32.9 million in the same period the prior year. The company benefited from strong seasonal demand but felt the effect of adverse weather conditions during the quarter, resulting in a 7% decrease in log sales volumes and a 20% decrease in ancillary revenues, primarily related to timber services. Those impacts were partially offset by a 4% increase in the weighted average log selling price. Net income of $6.2 million was $4.2 million higher than the $2 million in Q1 2018.

ECONOMIC INDICATORS

Home sales recorded via Canadian MLS Systems rose by 3.6% in April from the previous month. Sales had dropped in February to their lowest level since 2012, but the rebound over the past two months still falls short of the levels reached during most of the second half of 2018. April sales were up in about 60% of all local markets, with the Greater Toronto Area accounting for more than half of the national gain. Actual (not seasonally adjusted) sales were up 4.2% from April 2018. (Canadian Real Estate Association)

Canadian municipalities issued $8.1 billion worth of building permits in March, up 2.1% from February. The increase was attributable to higher construction intentions in Western Canada. Four provinces reported increases in March, led by British Columbia with an increase of 12.8%, or $180 million. Meanwhile, all provinces east of Manitoba reported declines. The largest decrease was in Ontario, down 1.4% ($43 million) due to lower construction intentions in the residential sector. The value of residential permits dropped 1.5% from February, due largely to lower construction intentions in Ontario and Quebec. (StatCan)

OVERHEARD…

“We’re still in current dialogue with certain acquisition targets.”
—Amar Doman, chairman and CEO of CanWel Building Materials Group Ltd., on the possibility of future acquisitions. He was speaking to analysts on a recent earnings call following the release of CanWel’s first-quarter results.

LAS VEGAS, Nev. — Las Vegas played host to the hardware and home improvement industry last week, as retailers and buyers from across North America attended the National Hardware Show. The show was held in conjunction with the All-Industry Conference, held by the North American Hardware Association.

From the NRHA stage at the entrance to the show inside the Las Vegas Convention Center, the event got underway with a presentation by John Hartmann, CEO of The True Value Company. The successes in recent months and years by the Chicago-based retail company reflect the growth and strength of the industry—and independent dealers, in particular—overall, he said, “for the independent family business is the fabric of the American economy.”

True Value made a bold step last year by selling off 70% of the company to an outside investor, Acon Investments, effectively changing from a dealer-owned co-op model.

Hartmann said the move gave dealers the cash they needed to invest in their own businesses. He went on to stress that the entire industry must challenge how things have been done in the past and “think differently” to ensure continued growth.

On the show floor, the Canadian presence was not as evident as in years past. However, Canadian companies were exhibiting, and buyers were walking the show. These included about 10 people from Lowe’s Canada, representatives from Home Depot Canada and Canadian Tire, merchants from regional retailers like Princess Auto, McMunn & Yates and Federated Co-operatives, as well as Peavey Industries, Patrick Morin and BMR Group.

ST. JACOBS — Recent changes in key personnel in a range of senior roles at Home Hardware continue a trend of significant change under the helm of president and CEO Kevin Macnab.

On the merchandise side, Brian Straus and Dave Martin have been appointed as directors, merchandise hardlines. The appointments went into effect April 29. Prior to the appointments, both Straus and Martin held the positions of group merchandise managers.

Both Straus and Martin now report to Joel Marks, vice-president, merchandise hardlines.

“Our number-one priority is providing our dealers with the best program for independents in the industry,” said Marks. “Both Brian and Dave bring a significant amount of expertise to their new roles and are aligned in driving our growth strategy.”

Within the merch team, Richard Sweeney and Mike Morin have been named merchandise managers, reporting directly to Martin in his new role as director.

On Home Hardware’s IT side, another longtime executive is retiring to make way for a new face. John Rogez, VP of IT and a 36-year veteran with the company, is being replaced by Gino Gualtieri in the same role, effective May 27.

Gualtieri arrives at Home Hardware with 25 years of international experience in the information technology field, across a number of retail organizations including Reitmans, Sears Canada, The Brick Group and Staples. He is also a member of the Dean’s Advisory Council for the School of Applied Technology at Humber College in Toronto.

“We are thrilled to welcome Gino as our new vice-president, information technology,” said Macnab. “Bringing a deep background in business transformation and process improvement, Gino has helped organizations change and adapt in this rapidly evolving digital world.” Macnab further thanked Rogez for his contributions to Home Hardware over “a long and impressive career.”

Two more hires in the marketing department reflect Home Hardware’s increasing focus on developing its online and customer relations strategies. Chris Parsons was appointed on April 23 as director of e-commerce marketing, where he will be responsible for the strategic direction of Home Hardware’s online digital strategy. And as of May 6, Michael Gawtrey will serve as director for Loyalty & CRM – Pro & Consumer, with the task of driving the strategies for loyalty and engagement for both pro and DIY consumers.

News of these latest changes came just one week after the company announced Darrin Noble has been appointed vice-president, store operations, in addition to his role as VP of Home’s paint and chemicals division, Burford Paint & Home Products.

MISSISSAUGA, Ont. — “If you’re in home improvement, don’t tell me you’re not watching the weather.” Pam O’Rourke, vice president of merchandising for The Home Depot Canada, shared a common concern about the business with a room full of vendors earlier this month. She spoke at a breakfast meeting hosted by the Canadian Hardware and Housewares Manufacturers Association at the Corporate Event Centre in Mississauga, Ont.

“We have an unprecedented time of change in our industry,” she continued. Then she moved on to the specific concerns of her company, Canada’s largest home improvement retailer. “For Home Depot, it all starts with the customer.” And that customer is more educated and informed about the products and projects than ever before, thanks to the internet. “We need to deliver to these customers better. We need to deliver a complete experience.”

For any service provider, upsetting a customer or otherwise failing to meet their expectations has the possibility of going viral if they take their angst to social media. And ultimately, you could lose that customer. She calls today’s customer “fickle”.

“The door to our stores is no longer at the front of the building. It’s in the customer’s pocket, in their home, on the job site.” That requires having one face forward to the customer, “whether it’s online or in-store, with a consistent message.”

O’Rourke then moved to specifics of what vendors should expect when dealing with Home Depot. The ability to sell online offers huge opportunities in terms of product assortment but puts demands on the retailer and vendor alike to maintain supply. “But it’s really about being in stock, having product available.” She used shower doors as an example. “In your typical Home Depot store, we can show about 20 shower doors. But we have about 6,000 online. We can really extend the assortment online.”

Home Depot has been updating its supply chain over the past five years to help overcome out-of-stocks and to speed up online order deliveries both to home and to the job site.

BOUCHERVILLE, Que. ― Lowe’s Canada has seen expansion on several fronts in recent weeks. The growth includes replacement stores, added locations and one new dealer joining the RONA ranks.

The affiliated RONA dealer in Val-des-Monts, Que., moved into a new, larger facility earlier this month, the result of a $3.5 million investment. Owners Claude Bélec and Chantal Veilleux have added 15 new jobs to the 10 existing positions. The new 22,000-square-foot building is 19,000 square feet bigger than its predecessor.

Another store is celebrating the end of its renovation work. The RONA Deslongchamps in Rivière-Rouge, Que., is another affiliate dealer store, which recently underwent a major, $100,000 renovation. The two-storey building has been completely redesigned to make room for an appliance department, improving the shopping experience and enhancing the showroom.

A third existing RONA dealer enjoyed a grand opening late last month of its sixth location. RONA Matériaux Pont-Masson’s newest store is in the Pierrefonds-Roxboro borough on Montreal’s West Island. Founded by Richard Bailey, the company will be celebrating 40 years of business in August.

Now run by his sons Éric and Stéphane, it counts three other stores in Quebec and two in Ontario. Specializing in contractor and home builder services, the company also has three other divisions: Matériaux Design, an interior and exterior home finishing showroom; Arctic Supplies, an export division in the Far North; and Structure du Nord, a roof-truss manufacturing plant.

Rounding out the current wave of growth initiatives, a brand-new dealer has also been added to the RONA affiliate network. Quincaillerie J.M. Rioux in Forestville, Que., was founded in 1986 by Jean-Marie and Denise Rioux. The family business is now operated by the daughter of the founders and her spouse, Marie-Claude Rioux and David Martel.

The North American Retail Hardware Association held its annual Young Retailer Awards during the National Hardware Show last week and a Canadian was among the winners. Kevin Harris of Harris Home Hardware in London, Ont., was honoured in the category of Young Retailer of the Year in the over $2 million category. Harris was recognized for achievements that included bringing new ideas and energizing the business’s merchandising and expansion efforts.

At Dahl Valve Limited, Roy Spear has been promoted to sales director, Canada and will lead Dahl’s overall sales strategy to drive expansion. With 15 years of experience in business development, sales management and strategic planning, he was most recently Dahl’s director of wholesale, Canada. Mario Oliveri recently joined Dahl as retail sales manager. He was previously director of business development at Centah Inc. He will work closely with Spear to drive retail sales initiatives.

…that we’ve just announced Early Bird Pricing for the 24th annual Hardlines Conference? It’s being held at the fabulous Kingbridge Meeting Centre, just 30 minutes from the Toronto International Airport. Presenters from Lowe’s Canada, BMR, Home Hardware, EQ3, Staples and niche fashion retailer TSOQ (The Store on Queen Street) will all be there. Click here now to learn more about our incredible lineup of speakers, the amazing venue and to save big!

OTTAWA ― The Home Depot Canada Foundation is expanding its efforts to end youth homelessness, pledging $50 million over the next three years, after fulfilling its commitment of $20 million last year. “As one of the fastest-growing segments of the homeless population in Canada, we know that many young people first experience homelessness in their early teens; we don’t think that’s right,” said Pam O’Rourke, chair of the Foundation’s board and VP of merchandising at Home Depot Canada.

LAS VEGAS — Lloydminster Home Hardware Building Centre did such an amazing job promoting itself on Facebook that the owners were invited to join a summit at Facebook’s own headquarters. Sisters Sarah Rurka and Tasha Hilderman shared the story of their incredible journey to meet with Facebook Chairman and CEO Mark Zuckerburg and share ideas with other top Facebook users on the stage of the NRHA’s All-Industry Conference. The conference is being held in conjunction with the National Hardware Show this week in Las Vegas. The sisters then shared some of their insights into what makes an online campaign effective. “Social media should inform, entertain and educate,” Hilderman told the audience.

BOUCHERVILLE, Que. ― Lowe’s Canada has been named a 2018 Leader in Sustainability by Call2Recycle Canada, Canada’s national consumer battery collection and recycling program. The annual awards recognize organizations for their environmental commitment and collection of used batteries through Call2Recycle. Lowe’s Canada’s corporate and affiliated dealer network collected more than 100,000 kilograms of batteries last year. “Lowe’s Canada’s family of banners has collected 755,000 kilograms of batteries since 2001,” said Jean-Sébastien Lamoureux, Lowe’s Canada’s senior VP of communications, public affairs and compliance.

ST. JACOBS, Ont. ― Home Hardware Stores Limited has been named one of the Top 10 Most Trusted Brands in Canada by the University of Victoria’s Peter B. Gustavson School of Business. Home Hardware jumped 18 spots from 2018, ranking fourth on this year’s list.

BURLINGTON, Ont. ― Ikea Canada has phased out all single-use plastic straws, well ahead of the retailer’s global commitment to eliminate single-use plastics from its product range and restaurants by January 1, 2020. “Plastic straws have become an important symbol in the global movement to drastically reduce plastic pollution in our oceans and waterways,” said Melissa Mirowski, Ikea Canada’s sustainability specialist.

MISSISSAUGA, Ont. ― Walmart Canada plans to invest more than $200 million in its store network, with a focus on refurbishing and refreshing 31 stores across the country over the next year. About 3,250 construction jobs will be created to support these upgrades. This latest investment builds on the retailer’s $175 million updates to its store network in its last fiscal year. Over the last five years, Walmart has invested more than $1 billion in its Canadian store network. 

SUPPLIER NEWS

VANCOUVER ― Canfor Corp. reported an $89.5 million loss in the first quarter as revenues fell compared with a year ago. The forestry company had posted profits of $112.2 million in Q1 of 2018. Sales of $1.15 billion were down from $1.23 billion a year ago. The company has already reduced operations at its B.C. lumber mills on account of low prices and high fibre costs, a move expected to cut its output by some 100 million board feet.

ECONOMIC INDICATORS

Housing starts were at a seasonally adjusted annual rate of 235,460 units in April, up 22.6% from 191,981 units in March. The SAAR of urban starts increased by 24% to 220,387 units. Multiple urban starts increased by 29.6% to 175,732 units while single-detached urban starts increased by 6% to 44,655 units. Rural starts were estimated at a seasonally adjusted annual rate of 15,073 units. (CMHC)

ST. JACOBS, Ont. — Home Hardware Stores Limited continues to reorganize its executive team. The latest move is the naming of Darrin Noble to the role of vice-president, store operations and Burford Paint & Home Products. The store ops duties are in addition to Noble’s current position as vice-president and general manager of Home Hardware’s paint and chemicals division, Burford Paint & Home Products.

Store operations was previously designated as sales; the new role reflects Home’s recent efforts to strategically reorganize its marketing and sales, both of which were formerly under Rick McNabb, who left the company last summer. On the marketing side, Rob Wallace will continue to lead the marketing division in his role as senior marketing director.

“Darrin has played a key role in driving our dealer success throughout his tenure with Home Hardware,” says Kevin Macnab, president and CEO of Home Hardware Stores. “He is a proven leader who will bring a strategic and results-oriented approach to this position and drive our growth strategy.”

Macnab himself joined as head of the company just over six months ago.

Noble has some 35 years of experience in the paint industry and was named VP and GM at the Burford paint factory in December 2011. In taking on store ops, he assumes some of the duties formerly overseen by Eric Konecsni, who served as Home’s VP of store operations until his retirement at the end of 2014.

TUSTIN, Calif. — Consolidation of the Canadian building materials industry is being hastened by a handful of major U.S. players.

One, GMS, acquired WSB Titan last spring for $800 million. That deal effectively saw the country’s largest gypsum supply dealer, which includes Slegg Lumber and BC Ceilings, fall under U.S. ownership.

Foundation Building Materials, Inc. (FBM) a giant California-based specialty drywall distributor, is another U.S. company actively looking for new acquisitions—on both sides of the border. Earlier this year, it made its latest acquisition in this country, and more are rumoured to be in the works.

The latest is Builders’ Supplies Limited, an independent GSD with three locations in the Greater Toronto Area. The deal is expected to add up to US$24 million to FBM’s top line for the remainder of 2019.

Builders Supplies has been supplying industrial and commercial building materials to the GTA for 85 years. “We’re excited Builders’ Supply will be joining the FBM network. This acquisition will expand our geographic reach into the non-residential downtown Toronto market and enhance our service capabilities to the greater Ontario province,” said Ruben Mendoza, FBM’s president and CEO.

Foundation had net sales of US$2 billion across North America in 2018. The company carries a range of wallboard, suspended ceilings systems and metal framing products and operates 170 branches across the U.S. and Canada. It has been even more aggressive in making acquisitions and opening new locations in the U.S. than it has in Canada. Six months ago, it bought Agan Drywall Supply, which has three locations in South Dakota. Last August, it purchased Commercial Interior and Exterior Supply Company (CIESCO), with seven locations in Pennsylvania, and at the end of 2018 it opened a new outlet in Charlotte, N.C.

In Canada, store locations are for the most part former Winroc locations that were bought from Superior Plus Corp. in 2016 and constituted FBM’s initial entry into Canada. Those outlets have all been renamed FBM and are spread mainly through the West, with eight in British Columbia, seven in Alberta, two in Saskatchewan, one in Manitoba and nine in Ontario.

Foundation has no stores east of the Greater Toronto Area. Del-Pro Building Supplies in Whitby, just east of Toronto, is the company’s eastern-most location. Foundation acquired the company on November 1, 2017 from Del-Pro’s founders, Mark Ralston and Dylan Riendeau.

COLOGNE, Germany — Alibaba, the giant online seller, will be front and centre at this year’s Global DIY Summit in Dublin, June 5 to 7. The face of Chinese competition has visibly changed in the past five years and Andreas Kerschner (shown left), category group leader for the Alibaba Group, will address this topic in the Summit’s keynote speech under the title of “Alibaba’s B2C Marketplace Tmall as Gateway to China for European Brands”.

Another highlight of the Global DIY Summit will be a keynote by John Venhuizen, CEO and president of Ace Hardware. The head of the world’s largest hardware retail co-op will speak about management and service for independent retailers.

The Global DIY Summit is the world’s key event for retailers and manufacturers alike from the home improvement and garden centre industry to exchange views of current and future developments within the global market.

This event is being jointly hosted by the two leading European DIY professional organizations, EDRA (European DIY-Retail Association) and fediyma (European Federation of DIY Manufacturers), which in combination form ghin, the Global Home Improvement Network. The Summit runs from June 5 to 7 at the Convention Centre Dublin. Click here for speaker information and to register.

TORONTO — Last month’s Canadian Tire Canvas Backyard Living event showcased more than just the company’s line of patio furniture. Having acquired Vermont Castings in 2017, the company took the opportunity to promote its newly launched line of barbecues.

James Elson, Canadian Tire’s AVP for product development, heads up the team that has taken the 40-year-old brand and made it new to Canadian Tire. He says his team saw an opportunity in the barbecue space with a company that already had excellent brand equity but could be made even more relevant and meaningful for Canadian consumers.

“We went to market and we asked what people are looking for in a barbecue,” says Elson. “And we took their feedback and built something from the ground up.”

As with Canadian Tire’s Canvas outdoor products, Elson says an important consideration for his design team was building a product that could withstand Canadian weather.

Vermont Casting’s legacy is cast iron, and that was an important factor in the design of these barbecues. Built with a cast-iron lid, the material is more durable than aluminum, and better for retaining heat for all-weather barbecue enthusiasts.

And while functionality is important, there was equal thought invested in the product’s visual appeal. The lid was designed with a Victoria arch, a different shape from the typical barbecue, and Elson predicts it will make a statement in people’s backyards.

Elson was brought on to the Canadian Tire team when the company acquired the Vermont Castings label two years ago. He says he’s excited about the investment the company has made in making the barbecue line its own.

“This is a different mandate. This is not private label like you see elsewhere, we’re looking for what matters to Canadians,” says Elson. “There’s a lot of work and thought that is going into it and it’s really exciting to see a retailer that’s willing to do that.”

Carol Tomé, CFO and executive vice president of corporate services at The Home Depot, has decided to retire on August 31, 2019, after 24 years with the company. She was named CFO in May 2001 and given the additional role of executive vice president of corporate services in January 2007. Richard McPhail, senior vice president of finance control and administration, will be promoted to executive vice president and CFO following Tomé’s retirement. He joined the company in 2005.

John Penner has joined GoFor Industries as partner success manager. GoFor is a web and mobile app for on-demand delivery of building materials and equipment for the home improvement and construction industries. The company provides its own fleet of trucks and drivers to get products to customers and job sites. Best remembered as RONA’s business development manager for Western Canada in the early part of the century, Penner was most recently GM at Blackjack Fabrication in Calgary.

Derek Matysik has been appointed vice president and general manager of Shop Vac Canada. A 25-year veteran of the home improvement industry, he was most recently director of sales and Canada business manager at Campbell Hausfeld.

…that there are all kinds of neat features on our amazing Hardlines website? For example, you can easily search through a comprehensive archive of the Hardlines newsletter dating back more than a decade! Just click here to find an easy-to-read list of past issues.

VICTORIA ― Slegg Building Materials on Vancouver Island recently held its annual pro show. Taking over a Junior A hockey arena in the Greater Victoria Area, the company bussed in contractors from all over the island, resulting in record attendance of 1,200 pros and builders. “It was our largest event yet, both on the contractor and the vendor side,” says Tim Urquhart, president of Slegg. He notes that this year’s event also attracted about 50 architects and designers.

BOUCHERVILLE, Que. ― RONA Matériaux Pont-Masson recently had a grand opening for its sixth store. Located in the borough of Pierrefonds-Roxboro in Montreal’s West Island, the 94,000-square-foot outlet is the affiliate’s first store on the island. It includes a 9,000-square-foot sales floor, a 15,000-square-foot indoor lumber yard and a 70,000-square-foot outdoor lumber yard. Founded by Richard Bailey and now run by his sons Éric and Stéphane, the business has three other stores in Quebec and two in Ontario. The company will celebrate its 40th anniversary in August.

TORONTO ― The Retail Council of Canada will award its 2019 Canadian Grocery Industry Grand Prix Lifetime Achievement Award to the Sobey family. Chair Emeritus David Sobey and his brother Donald, chair emeritus of Empire Co., will accept the award at a gala in late May.

MOORESVILLE, N.C. ― A new Lowe’s initiative is encouraging young people to consider careers in the skilled trades. Generation T, or Gen T for short, aims to fill three million jobs in the trades that could open up by 2028. Mike Mitchell, director of trade skills at Lowe’s Cos., has spoken to high school students about the high earning potential in the trades during “trade immersion” sessions.    

SUPPLIER NEWS

VANCOUVER ― West Fraser Timber’s Q1 earnings fell as production and demand slowed. The company posted a loss of $5 million, or $0.07 per share, compared to a $197 million profit (EPS of $2.53) a year ago. Sales of $1.24 billion were down from $1.27 billion the previous quarter and $1.36 billion in Q1 of 2018. Adjusted earnings came to $22 million, or $0.32 per share, compared to $229 million ($2.96) a year ago.

NEW BRITAIN, Conn. ― Stanley Black & Decker reports its net income for the first quarter came to $169.9 million, or $1.13 per share. Revenues for the quarter reached $3.33 billion.

LANCASTER, Pa. ― Armstrong World Industries reported Q1 diluted earnings of $0.73 per share, down slightly from $0.76 a year ago as poor weather took its toll in Canada and the U.S. Midwest. Legal fees related to the settlement of an anti-trust lawsuit earlier this month also contributed to the loss, as did higher tax and interest charges. Despite this, net sales rose to $242.1 million, from $227.3 million in Q1 of last year. Operating income jumped by about 10% to $54.7 million.

ECONOMIC INDICATORS

Total construction activity in the U.S. for March reached $1.28 trillion, down 0.9% from the previous month. (U.S. Commerce Dept.)

NOTED

The NRHA All-Industry Conference is running this week in conjunction with the National Hardware Show in Las Vegas. The conference will feature keynotes from True Value CEO and President John Hartmann (“Unlocking True Value”) and Phillip Helms, regional VP of Central Network Retail Group (“A Changing Approach to Retail”). The NRHA’s Top Guns Awards will honour top performers in the industry while the Retailers’ Choice Awards will highlight hot new products. Show delegates can attend the All-Industry Conference free of charge.

OVERHEARD

“We’re seeing the impact of government interference, including the provincial speculation tax and the national mortgage stress test rules playing a part, not in a good way, in slowing things down.”
―Tim Urquhart, president of Slegg Building Materials on Vancouver Island, commenting on the slowdown in the housing market in that market.

OUT & ABOUT

David Chestnut and Michael McLarney are in Las Vegas all this week at the National Hardware Show. We hope to see you as we walk the show and at the CHHMA’s illustrious Maple Leaf Night Reception on Tuesday evening. Got a hot tip or a new product? Email Michael anytime or text him on the show floor at 647-209-5663!

VAUGHAN, Ont. ― The opening of a new distribution centre in Central Ontario this spring completes a network of facilities for TIMBER MART to service its dealer-members across Canada.

The DCs are used to funnel and direct building materials to the members, helping them manage their inventories and keep their shelves filled. TIMBER MART’s VP of distribution and trading, John Morrissey, manages the LBM purchasing from Dartmouth, N.S. He oversees purchasing for all three of the group’s DCs in tandem with TIMBER MART’s procurement team.

The newest DC, which sits on five acres in Mount Forest, is currently getting up and running after opening earlier this year. Mark LaRonde was recently named distribution centre manager. In this role, LaRonde will lead the team at the DC and develop the business in all areas. He reports directly to Morrissey.

When fully inventoried, the location will have more than 10,000 lumber and building material SKUs. Once its systems are fully in place, TIMBER MART expects it to serve all TIMBER MART members and dealers in Ontario. It joins a 27,000-square-foot LBM distribution centre in Langley, B.C., that opened in the spring of 2017, and an existing 55,000-square-foot distribution centre in Saint-Nicolas, Que.

TIMBER MART has recently been adding to its dealer base in Ontario, including Zion Building Supplies in Scarborough, Ont., and WinCa Building Supplies, a 54,000-square-foot operation in Mississauga, Ont.

TORONTO — Canadian Tire offered media and influencers a preview of the company’s Canvas line of seasonal décor and outdoor living products for 2019 last week. The event took place at an upscale west-end hotel near Toronto’s waterfront.

Structured around the theme of a road trip across Canada, the Canadian Tire team set up vignettes for the East Coast, West Coast and Prairies. Tracy Platt, Canadian Tire’s design manager, was on hand to highlight the new products’ features and speak to the trends that influenced her team in developing the line.

Platt emphasized the Canadiana quality of the products. Canadian Tire’s design team is based in Toronto, develops everything in Canada and partners with Canadian creatives to create unique designs for pillows, textiles, glasses and dinnerware.

For the backyard living line, Platt says the most important thing her team takes into consideration is making products that are durable and can withstand being left outdoors in all kinds of weather. Cushions and textiles are made with Tripel, a water, stain and UV resistant fabric. And a new patio table this year features a matte black glass finish.

Trends-wise, Platt says this season has seen similar colours as previous years, such as blue and grey, but the shades have warmed up and patterns like herringbone have been added.

“It’s all about texture and colour for outdoors,” says Platt. One example is this year’s Davenport chair, which is a favourite for Platt. The chair’s arms are woven with grey rope that is marine-grade, meaning it can stand up to rain and snow.

She adds that outdoor living products continue to be influenced by the trends going on in interior home décor. Canadians want their patio furniture and accessories to be as creative and comfortable as their indoor furniture. And with the continued demand for fire pits, tables with adjustable heights and all kinds of lanterns and lights, Platt says it’s clear there’s a need for products that facilitate maximizing time outdoors in a space that suits their style.

“People are really interested in contemporary design,” says Platt. “Canadians, we’re very stylish people.”

CHICAGO ― Canadian suppliers looking to expand their online business now have one more reason to attend the fourth annual Home Improvement eRetailer Summit, November 6 to 8 in Chicago. Parvez Patel, general manager of eFaucets.com and hausera.com, has just been added to the list of keynote speakers.

The eRetailer Summit provides networking, education and one-to-one meetings for retailers, manufacturers, distributors and industry professionals who are interested in how to optimize the internet as a distribution channel.

eFaucets.com is an online kitchen and bath destination that offers top brand products, combined with expert advice, and peace of mind service. www.hausera.com (launching May 2019), is an inspirational e-commerce experience, focused on helping home owners and interior designers realize their dream kitchen and bath spaces.

The Summit will also feature a panel discussion on the e-commerce challenges for specialty dealers. The panel will include Matt Woods, MBA, CEO for Woods Hardware, a Cincinnati-area True Value-affiliated dealer with six locations. Woods Hardware’s new e-commerce website includes a virtual tour of each of its locations.

The Summit is adding breakout sessions on the topic of “Best Practices for Collaboration and Finding Solution Partners”. Among the participants: Lawrence Mansour, CEO and co-founder of EZ-AD, a digital advertising platform that allows retailers to display product ads and video content. EZ-AD recently sold its mobile app to True Value.

Over the following weeks, the Summit will be announcing the rest of its speaker roster. “Our advisory board is in the trenches every day and understands e-commerce’s current challenges and optimizable trends,” says Sonya Ruff Jarvis, Founder of the Home Improvement eRetailer Summit. “We will continue to focus on content that is practical, and that responds to unanswered questions for our industry.”

For more information, please contact Sonya Ruff Jarvis at 203-295-3385. And check out the Summit’s website.

SPECIAL REPORT — Once you have your brand clearly outlined and you’ve shared your message, you’ll know how successfully it resonates with your customers based on the level of loyalty they feel to your company. You can encourage their allegiance by making the shopping experience as easy as possible for them. Install proper and clear signage, make sure your entire site is accessible and keep things simple.

“It’s not enough to have a solid brand, it’s not enough to make it conveniently accessible. You really want to make sure that if you want to maintain that loyalty, you’re really going to make sure that you’ve touched on every aspect of that full experience right down to the last mile,” says Anthony Stokan, a retail expert and co-founder of Anthony Russell and Associates.

For Darrin Noble at Beauti-Tone (shown here), Home Hardware’s paint division, the goal has been to tell a story. Whether that’s through injecting humour in their marketing, playing up their Canadian roots or through partnering with Parks Canada or the Toronto Blue Jays, the company strives to make customers comfortable and to share or facilitate an experience.

“We think you really need to engage directly with your customers. You need to teach them, entertain them, listen to them and learn from them,” says Noble.

It sounds like a lot of work, especially for independent retailers who are working the till, making schedules, doing payroll and supervising the store. It may seem there’s no time left at the end of the day to develop a clear brand image and marketing strategy.

Catherine Vaugh, from Orgill, Inc., says it’s true that it’s a lot of work. Regardless of the brand, marketing experts agree that messages need to be communicated at least 19 times to be effective. And while local brands do have to work harder to cultivate their relationships and assert their roles in the community, they do have the advantage that they often already have well-established relationships in their communities.

Resonance often comes down to emotions. While that connection may not be immediately clear when you’re talking about home improvement, research shows that 50% of all the decisions humans make are done at an emotional level. It’s simply the way the brain works, and so if retailers only look at the functional side of their work, they are missing half the equation. And that means they are simply leaving money on the table.

(This is excerpted from a story in our sister publication, Hardlines Home Improvement Quarterly. The latest issue of HHIQ is in the mail right now to 11,000 retail dealers and managers across Canada. Click here for more info! —Editor)

… that we have another publication just for dealers? Hardlines Dealers News is filled with sales and merchandising tips, best practices and cool new product info, this is one publication every dealer and manager will want to receive. And it’s free! (Suppliers who want to stay in the know can get it, too!) Click here to subscribe now.

OAK BROOK, Ill. ― Ace Hardware is introducing a new “buy online, deliver from store” program for its Ace dealer locations across the country. The company says the new delivery option is an important component of the company’s enhanced e-commerce offering. “With 72% of U.S. households within 15 minutes of an Ace store, we are uniquely positioned to leverage that proximity to meet our customers’ home improvement needs,” says Bill Kiss, head of digital, retail strategy and innovation for Ace.

HOFFMAN ESTATES, Ill. ― Sears Holdings Corp. is suing its former CEO and the hedge fund he manages for allegedly funneling $2 billion in assets from the retailer, according to the Chicago Tribune. Sears claims that Edward Lampert, the company’s former CEO, “systemically picked off the retailing giant’s most valuable and enduring assets as the company’s losses deepened,” according to the article. The company claims Lampert and his hedge fund, ESL Investments, promise an unrealistic financial recovery for Sears.

SUPPLIER NEWS

MISSISSAUGA, Ont. ― Briggs & Stratton Canada has partnered with J.L. Gagliardi & Associates to represent Briggs & Stratton’s mass business in Quebec, with the exception of Lowe’s Canada. Gagliardi will be responsible for the RONA and Reno-Depot accounts and will include the RONA affiliate dealers and other Quebec-based regional players.

CLEVELAND ― Sherwin-Williams Co. reported Q1 net income of $245.2 million, or $2.62 per share, down from $250.1 million ($2.62 per share) a year ago. Net sales from stores in the U.S. and Canada open more than 12 calendar months increased 3.6% in the quarter. Diluted net income per share was flat at $2.62 per share in the first quarters of both 2019 and 2018. Excluding acquisition-related costs and pension settlement expenses, diluted net income per share increased to $3.60 per share from $3.57 per share in Q1 of 2018 on a comparable basis. Analysts had forecast diluted EPS of $3.66.

CORRECTION:

CanSave’s implementation of a streamlined system for dealing with customer orders and concerns was not built on the hiring of a customer service manager, as we reported last week. “What we did was create a new department separate from customer service called customer success and hired a customer success manager,” explains CanSave President Dan McArthur. “The new department interacts with all departments within CanSave to ensure we are contributing to our customers’ success.”

ECONOMIC INDICATORS

Retail sales edged up 0.8% in February to $50.6 billion, after three consecutive monthly declines. Sales were up in five of 11 sub-sectors, representing 73% of retail trade. Higher sales at general merchandise stores and motor vehicle and parts dealers were the main contributors to the increase. After posting gains in December and January, sales at building material and garden equipment and supplies dealers were down 1.6%. On an unadjusted basis, retail e-commerce sales were $1.4 billion in February, accounting for 3.3% of total retail trade. (StatCan)

Total investment in building construction increased in February, up 3.8% from January to $15.3 billion. This increase was primarily due to investment growth in the residential sector (+5.4% to $11.0 billion), while the non-residential sector remained unchanged at $4.4 billion. The gain in residential investment was primarily due to renovation work, up $1.1 billion from the previous year. Within the non-residential sector, investment in commercial building construction exceeded $2.5 billion, a record level. This gain reflected a 2.2% increase in Quebec, which was mainly driven by a multi-plex sports facility being built in the city of Gatineau. (StatCan)

OVERHEARD

“Had defendants not taken these illegal and improper actions, Sears would have had billions of dollars to pay its third-party creditors today and would not have endured the amount of disruption, expense and job losses resulting from its recent bankruptcy filings.”
―Excerpted from the lawsuit filed on behalf of Sears. The company is suing its largest shareholder, Eddie Lampert, for allegedly siphoning off valuable assets of the company even while it struggled to get back on its feet.

S T. JACOBS, Ont. ― Kevin Macnab, president and CEO of Home Hardware Stores Ltd., is just six months into the job, but he’s already created a clear strategic focus on building the fundamentals of the company.

It’s all part of an effort to support the dealer-owners who are both the customers and the shareholders of Home Hardware.

A big part of that focus is on e-commerce. Macnab is determined to push Home Hardware along to be more effective on this front. That will include making it easier for customers in the store to access digital tools to complete their purchases.

In fact, Home Hardware has hired its first director of e-commerce. Chris Parsons starts in May, says Macnab. Formerly the e-commerce director for a chain of pet supply stores in Southern Ontario, Parsons has the kind of digital experience the company is looking for.

As the economy remains slow in many parts of the country, Macnab wants to make sure head office is doing everything it can to support its dealers and expects e-commerce to play a significant role. He promises that there’s “more to come” as Home Hardware increases its online presence. “We need to expand what we are doing and be at the leading edge.”

Macnab himself brings e-commerce experience from his time leading toys and children’s wear retailer Toys “R” Us, both overseas and in Canada.

Efforts like expanded online access for Home Hardware customers is just one of the ways Macnab believes the company is helping its dealers improve the customer experience and weather a soft economy. “We’re confident of the outlook for our business for the year ahead,” he adds.

LONGUEUIL, Que. ― A new program to educate do-it-yourselfers and contractors on Canadian-made hardware and building products was launched last week. Called Well Made Here-Bien fait ici, it kicked off with the distribution of five million leaflets at 2,404 affiliate and corporate stores belonging to 10 banners: ACE, BMR, Castle, Home Hardware, Lowe’s, Patrick Morin, Reno-Depot, RONA, TIMBER MART and Unimat.

The program is the brainchild of Richard Darveau. He is both chair of the new not-for-profit organization and president and CEO of the Quebec home improvement association, AQMAT. The campaign has steadily been gaining traction, with participating banners actively promoting it―as Home Hardware did at its recent dealer market in St. Jacobs, Ont. (Shown here: Audrey Dagenais, director of development and supplier services for Well Made Here; and Landon Hall, a merchandise associate with Home Hardware Stores.)

To be accredited under the Well Made Here program, manufacturers must be able to demonstrate that 51% or more of their manufacturing costs are incurred in Canada, excluding R&D, design and freight. They must also meet construction code rules and several other prevalent industry standards.

More than 70 manufacturers have signed up for the program so far and nearly 400 product lines representing 4,000 SKUs are now in the system.

BARRIE, Ont. ― CanSave has come a long way from its beginnings in 1982 as a specialty building materials wholesaler shipping out of Central Ontario. Back then, it didn’t have trucks to ship product, relying instead on couriers to deliver everything. There was a time that the company claimed it was the biggest Purolator customer in the province.

Over time, its reach has expanded, and so has its product offerings, with the addition of cabinet production and door manufacturing. Today, CanSave operates across three divisions: kitchen and bath, building materials and interior and exterior door systems.

But that growth brought complexity, which was having an impact on customer service. That’s why CanSave re-examined its business and made some big changes 15 months ago. At that time, says President Dan McArthur, the company was receiving 91,000 emails a month going into 66 email accounts. “The accountability was missing,” he says.

The goal, he says, was to figure out how to simplify interaction with the customer. “How can we be extremely easy to work with, how can we address the customer’s pain points and focus on their success?” he recalls.

That required new processes, including the hiring of a full-time customer service manager. “Every communication coming in from a customer is turned into a ‘ticket’ that someone owns and follows through to the customer’s satisfaction.” Now those emails have been reduced by almost two-thirds. “We’ve cut down all the ‘noise’ and we’ve cut down all the clutter.”

GENEVA ― A World Trade Organization ruling gave a partial victory to the U.S. in the ongoing softwood lumber dispute, allowing the use of “zeroing” in the calculation of tariffs on Canadian softwood lumber.

While the decision found that the U.S. broke trade laws in its calculation of tariffs, it departed from previous rulings, which had held that the controversial methodology was unlawful. Zeroing entails the exclusion of any negative difference between the foreign domestic price of a product and its U.S. import price, which critics say artificially inflates anti-dumping duties. The WTO has historically ruled against this practice, against the interests of the U.S. side.

Foreign Affairs Minister Chrystia Freeland expressed concern about this departure from precedent. “This is a practice which in past rulings has often been condemned, and we are now looking at next steps which Canada can take to challenge this, including possibly an appeal,” she said.

The U.S. Commerce Department has continually charged that the Canadian government, which owns most of the forests used for commercial production of softwood lumber, charges companies artificially low prices to harvest these forests. The U.S. claims this pricing amounts to unfair subsidization. In the United States, the majority of timber stands are in private hands.

TIMBER MART has appointed Mark LaRonde to the position of distribution centre manager for the buying group’s new facility in Mount Forest, Ont. In this role, LaRonde will lead the team at the DC and develop the business in all areas. His experience includes stints at Wellsco International and PrimeSource. He will report directly to TIMBER MART’s vice-president of distribution and trading, John Morrissey.

Andrea Heffernan has been promoted to national account manager of the Home Hardware business for Henkel. She joined Henkel in 2015 as the regional manager for Ontario and before that she spent 12 years at King Marketing. (Andrea.heffernan@henkel.com)

Chris Parsons has joined Home Hardware Stores Ltd. In the newly created role of director of e-commerce. He was formerly director of e-commerce of Ren’s Pets, a chain of pet supply stores in Southern Ontario.

Éric Bachand has replaced François Bédard as director of sales, retail sector for Quebec at PPG Architectural Coatings.
(eric.bachand@ppg.com)

Shelley Nehrt is the new director of product development at Quality Craft. She was previously the director of category development at Alpha Guardian. Nehrt replaces John Hoppes, who has left to pursue new opportunities.

Peter Rebello has retired from Louisiana Pacific Corp. He spent more than two decades there as national accounts manager for Canada.

After a 30-year career in the retail plumbing industry, John Pearce is retiring at the end of May. He spent the past five years as VP sales and marketing for Mirolin Industries. No replacement has been named yet.

At Isolofoam Group, Steve Muise has been appointed territory sales manager for Western Ontario, starting July 30. He was previously project co-ordinator and inside sales representative at VicWest for more than 12 years. Muise will be responsible for sales and business development of Isolofoam’s rigid insulation products for Western Ontario. He’s based in Kitchener. (smuise@isolofoam.com)

… that the latest edition of our sister publication, Hardlines Dealers News, was emailed out last week? Filled with sales and merchandising tips, best practices and cool new product info, this is one publication every dealer and manager will want to receive. And it’s free! (Suppliers who want to stay in the know can get it, too!) Click here to subscribe now.

TROIS-PISTOLES, Que. ― Coop Agriscar has welcomed Centre de rénovation Camille Dumais, in the Kamouraska town of Saint-Pascal, as its sixth location. Agriscar operates five other stores under the BMR and Unimat banners. The latest location, founded in 1953, will now operate under the simplified name of Camille Dumais. The store’s 40-strong team will retain their positions, while owners Raynald and Gaétan Dumais will continue on. The general manager is Marco Dumais.

MOORESVILLE, N.C. ― Lowe’s Cos. is set to cut more than 200 jobs in the Charlotte, N.C., area, while about 600 full-time workers will transfer from Wilkesboro to the company’s Mooresville head office. “This will bring teams that perform similar functions together, supporting greater collaboration and business performance,” a spokesperson told Business Insider. In January, some 80 employees were laid off in the Charleston area as the company leans increasingly on third-party vendors.

SUPPLIER NEWS

MONTREAL ― Richelieu Hardware began fiscal year 2019 with the acquisition of Lion Industries, Blackstone Building Products and Truform Building Products. All three are specialty hardware distributors serving window and door manufacturers in Western Canada and Ontario. The acquisitions are expected to reinforce Richelieu’s presence in these markets, increase business in the window and door manufacturers segment and add about $12 million in annual sales.

NEW BRITAIN, Conn. ― Stanley Black & Decker held a grand opening for its new manufacturing facility in downtown Hartford, Conn., last week. Mayor Luke Bronin and Governor Ned Lamont were among those in attendance for the launch of Manufactory 4.0, which is designed to help transition to digital factory operations. The facility employs 50 people in a 23,000-square-foot site at Hartford’s Constitution Plaza.

ECONOMIC INDICATORS

Canadian home resales rose by 0.9% in March after a sharp decline in February, leaving activity near some of the lowest levels recorded in the last six years. Actual (not seasonally adjusted) sales activity fell 4.6% year over year to the weakest level for the month since 2013. It was also almost 12% below the 10-year average for March. There was an even split between the number of markets where sales rose from the previous month and those where they dropped. Among Canada’s larger cities, activity improved in Victoria, the Greater Toronto Area, Oakville-Milton and Ottawa, while it declined in Greater Vancouver, Edmonton, Regina, Saskatoon, London and St. Thomas, Sudbury and Quebec City. (Canadian Real Estate Association)

Retail sales increased 0.7% year over year to $157.1 billion in the fourth quarter. Sales of cannabis products totalled $152.2 million. The largest year-over-year increase in dollar terms came from food (+2.7%). Hardware, tools and renovation products were essentially flat (-0.1%) in the first quarter compared with the same time a year earlier. Home furniture, furnishings, housewares, appliances and electronics were down 0.6%. (StatCan)

NOTED

We are always looking for new products from our vendors to feature in our publications. Both Hardlines Dealer News and HHIQ have featured product sections. Send us your latest new and innovative lines to include. It’s free of charge!

ST. JACOBS, Ont. ― Kevin Macnab is Home Hardware’s new president and CEO. He brings with him a strong background in retail that includes senior roles at the iconic British retailer Marks & Spencer in the U.K. and then Canada. After that, he moved to Toys “R” Us as head of that retailer’s international operations—including the title of president for Canada.

Now, in place at Home Hardware for exactly six months, he feels confident that he is getting a firm grip on the challenges and opportunities facing the company. Macnab sat down with Hardlines during the Home Hardware Spring Market last week to give his first media interview in his new role.

The backdrop for the meeting was a positive one, as dealers walking the show floor were generally upbeat about their businesses. And that attitude spread to the show floor, as well, with exhibitors in turn reporting good attendance and some healthy sales.

Sitting at the front of Graham Ferguson Hall in Home’s warehouse, Macnab talked about his new role, the strength he sees in the dealer-owned organization, the potential for growing areas such as online sales and his overall vision for the company.

Although he comes from a traditionally corporate environment, he feels confident that his experience handling a range of businesses for Toys “R” Us—he oversaw everything outside of the U.S.—has prepared him for his introduction to the co-op model and the range of products and services Home Hardware offers.

“I’m experienced at dealing with that sort of scale of difference. Working at Toys ‘R’ Us, I was involved in a whole range of categories,” he notes, referring to the many product lines that his former retailer also carried. “What I really enjoy about Home Hardware is the whole range of categories it encompasses.”

And how does the co-op model compare with the corporate environments of his previous career? Where previously he would have to answer to a board of directors, Home’s accountability extends to all 1,000-plus dealer-members. “At Home Hardware, that’s the real strength of the business,” he says, adding that he’s really been educated to the core strengths of dealers in their local markets. “It’s a positive difference.”

Macnab has been putting the company through an in-depth strategic planning process that finds him focusing on several areas. They include being in-stock on inventory and optimizing marketing and promotions. He also wants to invest more in Home’s e-commerce and “to really strengthen the fundamentals of our support for our dealer-owners.”

Finally, Macnab discounts any notion that the dealer-owned co-op may have run its course. “There are a number of opportunities to grow within our dealer-owner model,” he says emphatically, adding a personal note: “I’m proud to be part of this organization.”

ST. JACOBS, Ont. ― The placement of Kevin Macnab as the new CEO of Home Hardware Stores Ltd. is resulting in numerous changes at the venerable company.

A major area of change has been on the buying side. Macnab, the first person from outside Home Hardware to lead the company, wanted Home’s hardware buying and building materials purchases to be realigned separately. The high-profile hire of Marianne Thompson as vice president, merchandise LBM at the beginning of this year marked a major addition to the team that helped realize that vision.

Now Thompson and Joel Marks, vice president on the hardlines side, lead Home’s entire buying function and providing “dedicated leadership” for both areas, says Macnab.

One of the key changes being noted by vendors is in the plumbing category, which has been split into rough or “core” plumbing, and decorative or “fashion” plumbing. Mike Morin, who spent 19 years at Home Depot Canada, the last seven as plumbing merchant, was just hired to head up core plumbing, while Home Hardware continues to search for someone to head up the fashion side. Don Kenesky, formerly the merchant for plumbing, has retired.

Meanwhile, Home continues to hire to round out its buying team. It’s currently searching for a merchandise manager for forest products in the LBM division under Thompson. And a new position has been created for a millwork merchandise manager.

Macnab is excited by the changes. “We’re hiring,” he says. “We’re investing in this company and in the future to drive our business.”

SURREY, B.C. ― The Building Supply Industry Association of British Columbia has launched a new training program aimed at entry-level workers. Called the Building Supply Warehouse and Distribution Training Program, it will start April 23 at the BSIA’s office in Surrey.

In co-operation with the trade association’s own members, the B.C. government and the Northwest Skills Institute, the BSIA has developed a certificate program covering the essential skills for new staff. The six-week program is industry specific and available to people willing to commit to the training who will continue on to accept full-time employment within the home improvement industry, either on the supply side or in retail.

The program is open to any Canadian citizen or permanent resident and is designed to assist the unemployed and the under-employed. It’s 100% subsidized for eligible, qualified participants. Every participant who completes the program gets a job placement and up to one year of coaching and support.

“We have enough funding to run this incredible career-changing program for 45 eligible people between now and the end of August,” says Thomas Foreman, president of the BSIA. He adds that the kinds of skills this program will offer will be a “game changer”.

The six-week curriculum includes training in warehousing and distribution, workplace safety awareness, first aid certification, quality control and job entry skills. For more info, contact bswd@manufacturingbc.org or call 604-900-1980, ext. 143.

SPECIAL REPORT ― While retailers in the home improvement industry are working on their strategies to respond to the threat of e-commerce, online marketplaces have been evolving non-stop.

Robert Bigler, the COO of eBay Canada, says even the original disruptors like eBay are having to worry about change and how to adapt their business model in response. “The pace of change has never been this fast before and it will never be this slow again,” says Bigler. “Change is constantly happening.”

The biggest difference Bigler says retailers―both online and in-store―have noticed is that you can no longer compete on price. As he puts it, that’s simply a race to the bottom. He suggests that the fundamentals of putting the customer first and proving oneself as better than the competition remain the same—it’s just the approach that needs adjusting.

eBay views its role as connecting buyers and sellers to facilitate that growth. Many bricks-and-mortar dealers also use eBay as part of their omnichannel strategy. Michel Robidoux, owner of Quincaillerie Sainte-Julie in Sainte-Julie, Que., used the marketplace to move products when he was on the brink of bankruptcy. The strategy worked better than he could have imagined and Robidoux now has “Power Seller” status on eBay. (He was also the 2018 Outstanding Retailer Award winner for Best Hardware Store.)

Bigler says Quincaillerie Sainte-Julie is just one example of companies that incorporate online marketplaces like eBay into their omnichannel approaches. He adds that online shopping is the new normal. But that doesn’t necessarily mean shoppers are completing those transactions strictly online.

“People are doing research online and then purchasing in store,” says Bigler. “They just want to figure out what store to go to in the first place. They won’t go in if they don’t know the store will have the inventory they’re looking for.”

(This is excerpted from a story in our sister publication, Hardlines Home Improvement Quarterly. The latest issue of HHIQ is in the mail right now to 11,000 retail dealers and managers across Canada. Click here for more info! —Editor)

Barry McCartney has joined the lumber trading team at TIMBER MART as senior commodity trader in Ontario. McCartney will serve as a resource for members in the province by sourcing commodity products, securing buying opportunities and managing the group’s pressure-treated lumber program in the region. He has more than 25 years of experience in lumber, plywood and OSB trading with companies such as Taiga Building Products and Tembec.

Cory Clark has been promoted at Marwood Ltd. to the position of VP of sales and marketing–national. An 18-year veteran of the company, he was formerly director of sales and marketing–national for pressure-treated lumber and accessories at Marwood.

… that the next edition of our sister publication, Hardlines Dealers News, is coming out on Wednesday? Filled with sales and merchandising tips, best practices and cool new product info, every dealer and manager will want to receive this free publication. (Suppliers who want to stay in the know can get it, too!) Click here to subscribe now!

MISSISSAUGA, Ont. ― Castle Building Centres’ 56th annual general meeting drew more than 400 guests to the Westin Hilton Head Island Resort in South Carolina. Shareholders, vendor partners and their families participated in events on- and off-site, including presentations from James Jones, VP of national marketing, and President Ken Jenkins. Guests joined Castle on a journey to the historic city of Savannah, Ga., including a casino riverboat tour. The gathering concluded with a keynote address from TV’s Rick Mercer and an evening dance lesson with a live DJ.

BOUCHERVILLE, Que. ― RONA has taken the top place among most admired home improvement companies in Quebec, in this year’s Leger Reputation Study. It also placed in the 25 overall most admired companies across all industries. Leger surveyed 30,000 respondents in late December and January, assessing reputation based on six benchmarks that included financial strength, social responsibility and innovation.

ST. JACOBS, Ont.  ― Windsor Home Hardware is the recipient of the 2019 Walter J. Hachborn Store of the Year Award. The award was presented during last week’s Home Hardware Dealer Market to Jeff Redden, dealer-owner of Windsor Home Hardware in Windsor, N.S., for epitomizing the principles of value, service and dependability upon which Home Hardware was founded more than 50 years ago. Now in its 22nd year, the award, named for the company’s co-founder, recognizes a store for achieving the highest standards in retailing, merchandising, staff performance and overall quality and service.

ISSAQUAH, Wash. ― Costco Wholesale Corp. reported net sales of $13.87 billion for March, an increase of 7.4% from $12.92 billion last year. For the 31 weeks ended April 7, Costco reported net sales of $88.29 billion, up 8.4% from $81.43 billion. Comparable sales for the month were up 5.7%, and up 8.7% year to date.

SUPPLIER NEWS

MONTREAL ― Richelieu Hardware posted a 2% gain in consolidated sales in its first quarter ended February 28, reaching $226.2 million. Acquisitions boosted results by 2.8%, countering an internal decrease of 0.8%. At comparable exchange rates to the first quarter of 2018, consolidated sales would have been stable. Results were further affected by lower sales to the retail home improvement channel. The company also had an exceptionally strong Q1 in 2018 compared to the latest quarter, which was impacted by inventory realignment by retailer customers that did not show sales growth.

ECONOMIC INDICATORS

Housing starts seasonally adjusted in March were up 15.8% from 166,290 units in February. Urban starts increased by 17.0% to 178,033 units. The greatest growth was in multiple urban starts, up 18.6% to 135,894 units; single-detached urban starts increased by 12.1% to 42,139 units. Rural starts were estimated at a seasonally adjusted annual rate of 14,494 units. Actual (not seasonally adjusted) starts in March were down 10% from March 2018 and down 16% year to date compared with the first quarter of 2018. (CMHC)

Canadian municipalities issued $7.8 billion worth of building permits in February, down 5.7% from the previous month. The decline was largely due to lower construction intentions for multi-family dwellings. Residential permits declined 8.5% to $4.9 billion, the lowest level since April 2017. The decrease was largely the result of lower construction intentions for multi-family dwellings in Ontario and British Columbia. (StatCan)

NOTED

We are always looking for new products from our vendors to feature in our publications. Both Hardlines Dealer News and HHIQ have featured product sections. Send us your latest new and innovative lines to include. It’s free of charge!

OVERHEARD

“Because of our team’s diverse background, we have a better understanding of our customers’ different cultures and can more adequately meet their home improvement needs.”
―Cheryl Ginter, store manager of Lowe’s South Regina store. Ginter and her team won the Paragon Award for business excellence in the Diversity category, presented by the Regina & District Chamber of Commerce.

BARRIE, Ont. ― CanSave is hosting its annual buying expo on May 9, a change from previous editions’ June date designed to extend the buying season for the wholesaler’s customers. The focus of the event this year is “exceeding expectations”.

Founded in 1982 by brothers Larry and Cully Koza, CanSave began as a specialty building materials distributor serving dealers in Ontario. Over time, its reach has expanded, and so has its product offerings. Ten years ago, it started manufacturing cabinets to sell directly to dealers and commercial customers. Door manufacturing soon followed.

Today, CanSave operates across three divisions: kitchen and bath, building materials and interior and exterior door systems.

For many years, the expo was held at the Barrie Molson Centre, but in recent years the event has been brought in-house. CanSave’s suppliers exhibit on the warehouse floor, while permanent showrooms have been added on the second level that are also used during the expo.

Many of the staple attractions of the past will continue to be a part of the show, including hospitality and entertainment, prizes, games and seminars. Cabinetsmith will be unveiling its new colour style, Dove Grey, to the public at the expo. Another innovation comes from CanSave’s Doorsmith line: a black door that has been manufactured entirely from black extrusions and black steel, resulting in an exterior door that is free of paint.

MISSISSAUGA, Ont. ― The annual general meeting of the Canadian Hardware and Housewares Association was highlighted by the induction of three individuals to the CHHMA’s industry Hall of Fame.

Terry Davis, former president and CEO of Home Hardware Stores Ltd., recalled his early years and mentorship under company co-founder Walter Hachborn.

Solly Feldman, founder of Accent Fairchild Group, was introduced by his son and company president Evan Feldman. “My father has a never-ending passion for people and work,” Evan said proudly.

Dennis Nykoliation, whose career included leadership roles at Black & Decker Canada, Cambridge Towel, CanWel and GSW, was introduced by former CHHMA President Vaughn Crofford. Nykoliation thanked the industry, and his fellow colleagues in the room, for the experience and for the award.

Since 1984, the Canadian Hardware and Housewares Industry Hall of Fame has honoured individuals who have been builders of successful enterprises and have made lasting contributions to the industry through their leadership and innovation. The award is given in recognition of outstanding achievement, service and contribution to the Canadian hardware and housewares industry.

(Click here to see this year’s CHHMA Industry Hall of Fame inductees.) 

TORONTO — With spring around the corner, Lowe’s Canada has released details of its lawn and garden lines, and the trends behind them, for the coming outdoor season.

Under the RONA banner, the company has identified five outdoor trends for the year: “Urban Oasis” offers outdoor furniture and accessories such as candle lanterns and fake grass balls for more modern styles to shape the living space. “Urban Garden” extends that theme into the yard and garden with a hipper groove that features bolder colours and sharper edges. “Mirage” aims for exoticism and comfort with furniture in softer colours and more relaxed styles. “Eldorado” captures the festive spirit with products to enhance entertaining at home, relying on materials with a natural feel, like wood and concrete. “Ocean Breeze” presents a seaside theme.

For the Lowe’s banner, four parallel outdoor trends have been identified, under the labels “City Oasis”, “Palm Paradis”, “Garden Party” and “Seaside Haven”. The big differentiation from the RONA lines is in the use of bolder colours, especially in the mid-blues and bright reds.

In terms of outdoor power equipment and tools, RONA will feature lawnmowers and riding mowers under the Club Cadet brand, and introduce a wider range of outdoor power equipment under the storied Craftsman brand. At Lowe’s, Craftsman is being featured even more strongly, with a range of lawnmowers and riding mowers, in addition to power tools such as air compressors and cordless circular saws, plus storage equipment and tool boxes.

VANCOUVER — The latest acquisition by CanWel Building Materials Group continues the trend by the building materials wholesaler and manufacturer to buy companies that fit in with its efforts to grow and integrate vertically.

CanWel most recently completed the purchase of Lignum Forest Products, a lumber marketing and distribution business operating in Western Canada and the U.S., from Conifex Timber Inc. For CanWel chairman and CEO Amar Doman, the deal falls in line with his company’s larger strategy to be a consolidator. CanWel raised $60 million last fall “to do strategic acquisitions at will.”

The value of the transaction was approximately $11.5 million, including some $10.5 million for working capital.

At the end of 2018, CanWel completed the acquisition of Western Wood Treating in Woodland, Calif., which specializes in producing pressure treated wood products.

At Makita Canada, Richard Pigeault, regional manager sales and service for Quebec and Atlantic Canada, has retired after 35 years. Mike Chartrand, a 30-year industry veteran―17 of them with Makita―has been promoted to replace Pigeault as the regional manager of sales and service for Quebec and Atlantic for Makita Canada. (m.chartrand@makita.ca)

Darren Wright has joined Rockwool North America as key account manager. His previous experience in the industry includes almost eight years with The Hillman Group. (darren.wright@rockwool.com)

Benoit Alain has been named president and CEO of Atis Group. He was previously executive vice president of Cascades. Prior to that, he was the VP of finance and administration at Cascades Tissue Group. Alain will take over from Robert Doyon, who announced his retirement as an investor and president in June 2018, at the end of a 15-year mandate. Atis Group sells to both commercial and retail markets through a range of affiliates, including Allsco, Altek, Alweather, Atis Windows and Doors and Laflamme.

… that there are all kinds of neat features on our updated Hardlines website? One of our favourites is a cool new Dailies Archive! Just click here to find an easy-to-read listing of past Dailies.

WINNIPEG ― Castle Building Centres Group has a new member in Manitoba. The Lumber Hub in Winnipeg, complete with a new retail building and lumberyard, is owned by Ryan Van Damme. “After reviewing buying group options, we decided the Castle Group’s platform was a right fit for our business,” he said. Gerald David is the store manager.

ST. JACOBS, Ont. ― Zak’s Home Hardware Building Centre in Warman, Sask., celebrated a soft opening this week under dealer-owners Chad, Lance and Wyatt Zacharias. “It’s been a successful soft opening—we had a full parking lot and customers lined up at the door who were ready to start shopping,” said Wyatt. The building centre features a retail area of 21,500 square feet and a drive-through lumber yard for contractors and consumers.

MONTREAL ― Dollarama reported that Q4 sales rose 13% to $1.06 billion, compared to $938.1 million for the same period last year. Comparable store sales grew 2.6%, over and above growth of 5.5% in Q4 of 2017. Net earnings increased to $172 million in the quarter, compared to $162.8 million a year ago. Lower gross margin partially offset the gains from higher sales.

MELBOURNE, Australia — Bunnings plans to have a transactional website selling more than 60,000 products up and running within the next 18 months. The iconic Australian retailer launched its online channel last year with about 20,000 large-scale items like sheds and playgrounds. Earlier this year it refined its testing with a pop-up shop on eBay. The expanded offering is beginning with a pilot currently underway at one Melbourne location.

SUPPLIER NEWS

MELBOURNE, Australia ― Amcor Ltd. and Bemis Co. announced that progress has been made towards the completion of their all-stock merger transaction, with the filing of shareholder documentation and finalization of board of director appointments. Amcor’s acquisition of Bemis was first announced last August.

GRANBY, Que. ― Bloomberg reports that as the U.S. moves to implement a ban on consumer sales of paint strippers containing methylene chloride, many retailers are rolling out either ineffective or equally dangerous substitutes. By contrast, Super Remover New Generation, developed in collaboration with the Toxic Use Reduction Institute at the University of Massachusetts, Lowell, is comparable in strength to strippers with methylene chloride, yet genuinely safer.

TORONTO ― Canadian HGTV personality Bryan Baeumler has put his brand behind a new app. HeyBryan connects pre-qualified, insured home service providers to homeowners. The app helps users find vetted, qualified and insured home service providers in their area. HeyBryan features real customer ratings and reviews of trusted experts who offer everything from furniture assembly and cleaning to electrical, plumbing, painting, appliance repair and general handyman services. All pros listed have been subjected to background and identity checks. Consumers can look up the availability of the contractors and service providers, as well as rates. Payments are processed directly through the platform.

ECONOMIC INDICATORS

Retail sales in the U.S. edged down 0.2% in February, as consumers made fewer purchases in categories ranging from food to building materials and garden equipment. The latter saw its largest decline since April 2012, falling by 4.4%. (U.S. Commerce Dept.)

NOTED

Home Depot generates nearly 17% of its annual North American revenue from the sale of indoor and outdoor garden products.

OVERHEARD

“The industry is about building relationships with your customers, your staff and your community. Many of the things that make a successful retailer are common sense―have a clean, bright, organized store with friendly, knowledgeable staff. It’s simple, but it takes hard work and the right attitude.”
―Christine Hand, owner of Handyman Home Hardware in Conception Bay, Nfld., and chair of the board of Home Hardware Stores Ltd. She was recently named one of the industry’s “Top Guns” by the North American Retail Hardware Association.

BOUCHERVILLE, Que. ― Senior executives from Lowe’s Canada met with vendors at a special Meet the Buyers Breakfast last week. The event was organized and presented by Hardlines, with the support of the Quebec industry association, AQMAT, and Le Bureau du Québec in Toronto.

Held at the new Imperia Hotel in Boucherville, Que., the room was filled with almost 180 people, as vendors heard from the Lowe’s Canada team, headed by Igor Halencak, vice-president, merchandising and marketing, to get a better understanding of how these teams are currently working with suppliers. In addition, a number of merchandising directors joined the vendors in the audience for breakfast.

The morning kicked off with introductory remarks by Hardlines’ own Michael McLarney, who welcomed the vendors and thanked the team from Lowe’s Canada for agreeing to provide fresh insight into the merchandising team’s structure and focus this year. He was followed by Jean-Sébastien Lamoureux, vice president of communications and public affairs for Lowe’s Canada. He showed a new corporate video that outlines the banners and the reach of Lowe’s Canada.

Halencak took the stage after him, to explain in detail what he called “a new, unified structure” for the buying teams within the company.

While the buying function is important, the need for strong execution was underlined by the mandate of Anne-Sophie Konrad, senior director, field merchandising. She leads a merchandising execution team and area field merchandising across Canada. She explained that her team is the first point of contact between the stores and the buyers. It is consistently working toward bringing forward the unique strengths of each banner while delivering on the needs of Lowe’s Canada’s entire merchandising network.

Both Josée Dumas, VP of merchandising, home décor and Carol Crystal, VP of merchandising, seasonal and appliances, explained how their teams are organized, along with their priorities and what to watch for this coming summer.

To cap off the presentations, David Gaudet, merchandising category director in building and maintenance, explained the importance of tools, including the Craftsman brand. Finally, Charles Valois, VP of marketing, laid out some of Lowe’s Canada’s strategic initiatives through its various banners.

Following the formal presentations, Halencak returned to the stage to take questions. The team from Lowe’s Canada stayed on afterwards to network and speak with the vendors one-on-one.

HARDLINES WORLD HQ, Toronto ― In an ongoing effort to deliver a premium experience to the retail home improvement industry, Hardlines is pleased to announce the first-ever Hardlines Home Improvement Blues Cruise. The four-day cruise, scheduled for this coming September, will give retail leaders and vendors an opportunity to network while enjoying some of the finest blues players in this industry.

The cruise, being held in partnership with Halifax-based SeaFun Cruises, will be carefully curated with a robust itinerary of face-to-face group meetings, round tables and sharing of best practices, culminating each evening with rollicking blues jams and a featured performer.

Along with these business-building sessions, delegates will enjoy the musicianship of some of the industry’s top executives. While the schedule of musicians is yet to be finalized, the lineup so far will include the Texas-style blues guitar stylings of one of Home Hardware’s newest top executives, accompanied by the saxophone licks of a top buyer from Lowe’s Canada. Home Depot Canada’s marketing team has committed to provide their in-house rhythm section, “The Pumpkin Patch”, with a solid back beat with bass, tambourine and drums.

An executive from one of the country’s leading door and window suppliers is stepping up on singing duties, providing vocals that are rumoured to rival Billie Holiday’s.

The buying groups will face off on the last night of the cruise with a battle of the bands, featuring “The Rebate Brothers”, an organ trio from TIMBER MART; “Buckle Up”, a Motown-inspired band from Sexton Group and “Turret of Power”, a horns-driven sextet courtesy of Castle Building Centres.

Tickets for the first-ever Hardlines Home Improvement Blues Cruise will go on sale by the middle of the month. Space for this exclusive event will be limited, so don’t delay. (Click here for the full itinerary and to register!)

SPECIAL REPORT ― A common misconception about brand is that it’s just about the final packaging—the marketing and communications around selling a product or service. But Catherine Vaugh, Orgill’s brand building manager for Canada, says a company’s brand identity goes much deeper.

“Brand identity is something you build for yourself,” says Vaugh. “You need a mission statement, to understand where you want to go, what you want to be and how you want to convey it to your marketplace. It’s your mantra, your mission statement.”

Vaugh works for Orgill, the giant hardware wholesaler, to provide marketing tools for independent dealers. She adds there is also the concept of brand image, which covers how your consumer perceives your brand and what they hear and observe you doing. Both components are equally important, she says. “When we take brand identity and brand image together, that sweet spot where it overlaps in the middle is really what we’re trying to accomplish.”

The more those two concepts overlap, Vaugh says, the more successfully a company is communicating its message to its audience, and the healthier its brand recognition will be.

(This is excerpted from a story in our sister publication, Hardlines Home Improvement Quarterly. The latest issue of HHIQ is in the mail right now to 11,000 retail dealers and managers across Canada. Click here for more info! —Editor)

CHICAGO ― True Value’s historic decision to reduce its shareholders’ stake has enabled the banner to offer locally customized marketing, Forbes reports. Customers get geographically targeted promotions and the opportunity to receive relevant mobile messages, while hardware and home improvement retailers who operate under the True Value banner get access to a personalized digital marketing program.

“We stopped charging a national advertising fee so that our local store owners could optimize their approach to traditional and digital advertising,” says CEO and President John Hartmann. “It all boils down into one word: customizable.”

The move comes one year after True Value, then a dealer-owned co-op, sold off 70% of the company to private equity firm Acon Investments. True Value shareholders resoundingly approved the sale, with more than 80% voting to give it the green light.

With the deal, True Value departed from the co-op model it had been identified with for 70 years. At the time, Hartmann expressed his “great respect” for the model but said it is now dated and inflexible. The sale was designed to “unlock value” for the dealer members, who share in the value generated by the company through the new True Value Co., which was set up to hold the remaining 30% of True Value’s assets.

“In 2019, each store will have its own individual marketing program, and they will be able to adjust it as the dollars go up and down, right on the screen,” Dave Elliott, senior VP of Marketing, told Hardware Retailing. As part of that effort, the company is redefining location-based services by using metrics that track shoppers’ movements and habits more accurately than a simple radius.

Each year, the North American Retail Hardware Association (NRHA) names high-performing retailers in two programs. The first is its retail “Top Guns”. These retailers are individuals who are innovating in their communities and pushing other members of the channel to continue to differentiate and elevate the independent home improvement industry. From Canada, Christine Hand has been named one this year’s Top Guns. She is the owner of Handyman Home Hardware in Conception Bay, Nfld., and chairman of the board of Home Hardware Stores Ltd. Second, the NRHA identifies a group of young retailers under the age of 35 who have excelled in their careers. Again, a Home Hardware dealer has garnered a prize for this year’s awards. Kevin Harris, of Harris Home Hardware in London, Ont., has won in the category of store over $2 million in annual sales.

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ST. JACOBS, Ont. ― Cannington Home Hardware in Cannington, Ont., is coming back to life after a two-year closure, under the ownership of Nancy and Dave Jackett, who also own nearby Fenelon Falls Home Hardware. Store manager Paul Sadler said that once the shelves are stocked and point-of-sale systems are set up, the store was working to have a soft opening. “There’s merchandise moving onto the shelves as we speak,” he told the Brock Citizen, adding that inventory may be limited in the store’s first days. “We’re going guns blazing. We’re pushing hard to make this happen.”

DEUX PIEDS A GAUCHE, Man. — A leading Prairie retailer has unveiled its spring outdoor collection. BS Building Supplies in Deux Pieds à Gauche, Man., is going to market with a range of rakes, shovels, swivel chairs and metal coat racks. Jock Shitely, the owner of BS, explains the strategy behind the new assortments: “It’s pretty simple, actually. I finally managed to find the damn key for the drive shed, where all this junk had been piling up all winter.”

SUPPLIER NEWS

VANCOUVER ― CanWel Building Materials Group announced it has reached an agreement with Conifex Timber Inc. to acquire Lignum Forest Products, a private partnership which operates a lumber marketing and distribution business. “Lignum is a well-respected brand in many of our markets and we are extremely pleased to be able to further solidify our North American lumber marketing and distribution capabilities with this acquisition,” said Amar Doman, CanWel’s chairman and CEO. The purchase price will be satisfied from CanWel’s current balance sheet.

MADISON, Wis. ― Spectrum Brands Holdings dismissed as “meritless” a shareholder class action suit accusing the company of misleading the public to drive up its stock price. The filing claims former CEO Andreas Rouvé and CFO Douglas Martin concealed hiccups in the construction of two distribution centres, including one in Kansas for Spectrum’s hardware and home improvement segment. Executives, the plaintiffs say, insisted that the developments were “on track” as Spectrum’s profits suffered during the first half of 2017. In July of that year, the company owned up to “temporary, transitional challenges” but only in April 2018 did it acknowledge more serious challenges in getting the facilities underway, at which point the value of the shareholders’ investment declined even more sharply.

ECONOMIC INDICATORS

U.S. housing starts fell by a more-than-expected 8.7% in February, reaching a seasonally adjusted annual rate of 1.162 million units. The percentage decline was the largest in eight months, with inclement weather a possible factor. Construction of single-family dwellings plunged by 17% to its lowest rate in more than 18 months. Building permits dropped 1.6% to a rate of 1.296 million units. (U.S. Commerce Dept.)

OVERHEARD

“Every day, Lowe’s Canada’s merchandising team works to satisfy customers and offer them the best products at attractive prices. As we made clear during the Hardlines Meet the Buyers event, we’re always looking for new ways to strengthen our partnerships and create new ones. We consider that working closely with our suppliers is crucial to our delivery, especially in making a fresh and innovative product assortment available every season.”
―Igor Halencak, vice-president, merchandising and marketing at Lowe’s Canada, on his team’s presentation to vendors at last week’s Hardlines Meet the Buyers Breakfast.

OUT & ABOUT

Next week, Michael McLarney and David Chestnut will be at the CHHMA’s AGM and Hall of Fame luncheon. Then, on the weekend, Michael will head down to St. Jacobs, Ont., for the Home Hardware Spring Dealer Market.