GRIFFITH, Ont. — BMR announced last spring that it wants to start building its business in Ontario. So the signing last week of a new dealer in Griffith, in the northeast corner of the province, was an important step in the fulfillment of that plan.

BMR already has a handful of dealers in Ontario, including Windsor Building Centre in Windsor and Drummond Building Supplies in Marmora. But the group ceased expansion efforts in that province after it was acquired outright by La Coop fédérée at the beginning of 2015. The next three years found the company focused on reorganization closer to home.

The store converted to BMR when a local contractor, John Lacourse, became co-owner of the store with Derek McGrimmon. The store will carry the BMR Pro banner, which was developed to meet the needs of construction and renovation contractors as well as seasoned do-it-yourselfers.

The store is undergoing a complete redesign of the facade and interior layout, while another 2,000 square feet will be added, more than doubling the size of the existing building.

Pierre Nolet, vice president of business development at BMR, says his group can help the dealer expand its LBM side. “Building materials are one of our greatest strengths, and we look forward to serving our local contractors and renovators,” said Nolet.

BMR, which is owned by La Coop fédérée, has the products and services to support dealers in smaller rural centres, says Nolet. The company’s distribution centre in Boucherville, Que., carries 32,000 products and already serves more than 300 dealers in Quebec and the Maritimes. BMR’s members operate under the BMR, Unimat, Potvin & Bouchard and Agrizone banners, and represent annual retail sales of about $1.2 billion.

MOORESVILLE, N.C. ― Lowe’s Cos. has announced its intention to hire 65,000 people, but the breakdown of that number reveals about 50,000 of them will be seasonal workers as the retailer, like most dealers in this industry, ramps up for the busy spring season.

Another 1,000 have already been identified to add to Lowe’s tech side of the business. That effort may well have been accelerated by the company’s woes, when its U.S. website experienced problems handling the high traffic generated during Black Friday. (The Canadian site was unaffected.) Lowe’s CEO Marvin Ellison called it “an embarrassing moment for the company, but one that presented our current state to the world.”

More significantly, the company has stated it will hire nearly 10,000 people to form a “Merchandising Service Team” (MST). The new group will go into stores to manage inventory and re-stocking. To quote the company: MST will be “focused on best-in-class inventory management, which includes the execution of critical tasks such as general bay service and resets. The implementation of the MST will improve in-stock availability and allow Red Vest associates to spend more time serving customers by reducing time spent on tasks.”

The new group sounds very similar to the Merchandising Excellence Team that Home Depot Canada formed in 2012.

Many of the changes announced south of the border will impact Canada in some way, as per this comment by Ellison in a call to analysts following the release of the company’s Q3 results: “[S]imilar to the U.S., we are implementing plans in Canada to improve execution, expense discipline and operational profitability.”

However, Lowe’s Canada has confirmed to Hardlines that Mooresville is leaving the Canadian division to manage its own store detailing as it has in the past. According to a spokesperson for Lowe’s Canada, “Our store and merchandising dynamics are different in Canada. We use a mix of internal and external resources for the merchandising needs of our banners.” That includes the use of Match Marketing Group to continue servicing a number of RONA big box stores. Match, based in Toronto, took over the service early in 2016.

BOUCHERVILLE, Que. — RONA has added two new locations to its affiliated dealer network.

The first is the RONA Rockwood store in Teulon, Man. It was acquired last December by Marc and Lori Palsson, who also own the RONA store in Gimli. The new owners will remerchandise and reconfigure the 10,000-square-foot store with its 130,000-square-foot adjacent lumber yard, to provide local customers with expanded offerings, including seasonal and home décor.

The second store is the Demers Shopping Centre in Debden, Sask., owned by Dan and Leah Demers, a third-generation family in the business. Currently a combined hardware and grocery store, the grocery business will be split off to a new location and the existing 10,000-square-foot space will be converted entirely to hardware and building materials.

Both stores will add Craftsman tools to their power tool assortments, while the Debden store will add an appliance department, as well. The stores have their grand openings planned for the spring.

The announced recruitments come just as parent company Lowe’s Canada is implementing the previously announced closures of 27 stores across the country, including a Lowe’s and a RONA in Sault Ste. Marie, Ont., that both closed their doors this past weekend.

NIAGARA-ON-THE-LAKE, Ont. ― A tool is purchased every five seconds on eBay. And it’s not necessarily big online players driving this, says Robert Bigler, COO of eBay Canada. In fact, he wants to share how online marketplaces like eBay can play into the marketing strategies of traditional retailers. That includes dealers and vendors alike.

Bigler was a keynote at the latest Hardlines Conference, held last fall in Niagara-on-the-Lake, Ont. “All the growth in retail is pretty much coming from online, as bricks and mortar is flat,” he warns. He explains that his company long ago outgrew its auction-style roots as a reseller of used items. “eBay has 1.1 billion products online and 77 million customers globally.”

He points out that vendors can use eBay successfully, as well. However, he recognizes that they may worry about not upsetting their retail customers for the sake of the online business. “Channel conflict is tricky.” But new technologies within eBay are making it easier for both buyers and sellers to complete the transaction cost-effectively.

One of the biggest categories these days for eBay is home and garden. The company saw double-digit growth for those products in Canada in 2017.

The challenges and opportunities are similar to the bricks-and-mortar experience, he points out. The fundamentals of good retail stay the same. “How are you differentiating?” he asks. “You have to focus on quality, on customer service, while adapting―and adopting new leads and new platforms.”

Mike Hachey has joined Lowe’s Canada as merchandising manager. He oversees appliances, heating, ventilation and fashion plumbing for RONA and Ace dealers. His background includes 17 years at RONA as a buyer, followed by almost eight years at RCR International, rising through the ranks to vice president business development for Canada and the U.S. Most recently, Hachey served as VP sales for Lanart Carpets and then worked briefly at Multy Homes.

Home Hardware has announced the appointment of Scott Bryant as VP, human resources. He succeeds Stew Gingrich, who retired at the beginning of the month after 14 years in the post and more than four decades with the company. Bryant joined Home Hardware almost 20 years ago and most recently served as senior director, human resources.

Dan Calkins has been appointed chairman and CEO of Benjamin Moore & Co. He was formerly president and COO. Calkins now reports to Berkshire Hathaway Vice Chairman Greg Abel and succeeds Mike Searles, who retired after five years. Calkins is a 32-year veteran with Benjamin Moore.

…that there are all kinds of neat features on our newly 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.

RICHMOND, B.C. — The CEO of London Drugs says the company may have to relocate if the B.C. government doesn’t take action to replace the 59-year-old Massey Tunnel. The government has said it is going back to the drawing board with another study on the fate of the crossing, which links Richmond with Delta across the Fraser River. Congestion is so bad that Clint Mahlman says London Drugs’ head office and/or its distribution centre could have to move out of Richmond. 

HOFFMAN ESTATES, Ill. — Sears Holdings Corp. agreed last week to consider a modified bid from Chairman Eddie Lampert, halting at least temporarily a liquidation process. The troubled retailer rebuffed Lampert’s last offer of $4.4 billion, triggering a rush of what a Sears attorney described as round-the-clock negotiations. Sears will consider the revamped offer this week: if it declines again, Lampert will forfeit more than $17 million of his deposit.

BONN—The do-it-yourself market in the European Union grew by 2.0 % to a volume of €726.5 billion ($1,104 billion) in 2017. According to the German market research company IFH, DIY sales increased by 0.9% and building materials by 4.4%. However, lawn and garden sales dipped by 0.1%. More than half of sales are attributed to DIY (51%), with 37% for building materials and 12% for the garden segment. Germany is the single largest market for home improvement in Europe, with a market share of 21%, followed by France and Great Britain.

SUPPLIER NEWS

MIDDLETON, Wis. — Spectrum Brands has completed the sale of its battery business Rayovac to Energizer in a $2 billion cash transaction. Spectrum says it will apply proceeds from the sale toward its $4.8 billion debt. Neither company commented on the fate of the 700 jobs in Wisconsin affected by Energizer’s acquisition.

ECONOMIC INDICATORS

Housing starts in December were at a seasonally adjusted annual rate of 213,419 units, down from 224,349 in November. Mild temperatures worked in favour of construction but higher interest rates and stiffer mortgage restrictions are expected to keep squeezing home building this year. Urban starts seasonally adjusted decreased by 5.8% in December to 194,594 units. Multiple urban starts decreased by 6.8% to 144,728 units while single-detached urban starts decreased by 2.6% to 49,866 units. Rural starts were estimated at a seasonally adjusted annual rate of 18,825 units. (CMHC)

NOTED

Registration is now open for the 2019 National Hardware Show, May 7 to 9 at the Las Vegas Convention Centre. The show draws 20,000-plus industry professionals, including a huge number of Canadian retailers and suppliers. It’s the main event in North America for face-to-face sourcing, trading and learning. Registration is now open: click here to activate your VIP Registration today!

OVERHEARD

“We are sharpening our focus on retail fundamentals and simplifying our business. We are investing in key leadership positions across our stores to enhance customer service while also creating jobs that will improve the availability of our most popular products, transform our technology infrastructure and provide more access for customers to the home improvement expertise of our store associates.”
―Marvin R. Ellison, Lowe’s president and CEO of Lowe’s Cos. based in Mooresville, N.C., on the company’s announcement that it would create its own in-house merchandising and detailing team for the U.S.

OUT AND ABOUT

Our intrepid VP of Business Development, David Chestnut, is off to the WRLA Buying Show in Calgary this week. Got a hot tip or a new product you want to share with Hardlines? Contact him at david@hardlines.ca.

WORLD HQ, Toronto — Hardlines is heading into the New Year with a brand-new look. Our website has been updated with a fresh design that puts the latest news stories front and centre for you, our Faithful Subscribers. The easy-to-read format simplifies navigating the site and makes it easier than ever to access back issues of the Hardlines newsletter.

Visitors to www.hardlines.ca can now view the latest features from our weekly newsletter, while our Daily News Updates are easily accessible by headline. The addition of a new Archive page makes looking up past Dailies quick and simple.

If you are looking for more in-depth analysis of the retail home improvement industry, you can learn about our special reports, like the annual Retail Report on home improvement in Canada, and the incredible Market Share Report.

For anyone looking to hire, or seeking a position themselves, they can find our Hardlines Classified Ads or post their resumé themselves quickly and easily.

If you’re looking for information about our upcoming events, such as this year’s Hardlines Conference or our Canada Night Reception at the Orgill Spring Market next month in Orlando, you can find it all in our Events page. There’s even a link to an industry event calendar so you can keep track of all the shows and events in the industry across North America (You should definitely bookmark this one! —Editor).

The new look to the Hardlines website comes after we recently updated our weekly Hardlines newsletter and the launch of a new publication designed especially for retail owners and managers, Hardlines Dealer News. These improvements reflect a major investment by Hardlines Inc. to remain the leading source of news and insights for Canada’s retail home improvement industry.

(Please take a minute to look over our new site. We welcome your feedback. Feel free to send me an email! —Editor).

SPECIAL REPORT — In our first issue of 2019, we look back at the stories that defined the industry in 2018. People were on the move, companies expanded and consolidated, while stormy economic winds from south of the border captured our readers’ attention. Here are your favourite 12 stories of the past year, from buying show trends to the slow death of a venerable retail icon.

Among the personnel changes that caught your attention last year was the naming of Nick Malone as VP of merchandising for the Lowe’s banner at Lowe’s Canada. Malone, previously senior director of central merchandising for Lowe’s Canada, replaced Alan Blundell, who accepted the job of president of PetSmart Canada. Malone joined Lowe’s Canada at its inception as supply chain director.

The story of another career transition was viewed more than 1,000 times in a single day—despite hitting the news just before Christmas. That’s when Home Hardware announced the recruitment of Marianne Thompson as VP of merchandise LBM. (See full story elsewhere in this issue. —Editor). Similarly, the departure of another executive, Rick McNabb, from Home Hardware in August, right before the company’s dealer market, drove huge traffic to the Hardlines website.

Companies as well as individuals saw major transitions in 2018. In April, we broke the news that WSB Titan, the giant gypsum supply dealer, had been sold to a U.S. company, GMS. Readers latched onto the November announcement that paint maker Sico’s operations would relocate to Ontario. That revelation created a political backlash in Quebec, where public pride has been shaken in recent years as control of homegrown brands including RONA and Saint-Hubert BBQ has passed out of province.

Meanwhile, other Quebec companies signalled their expansion beyond la belle province. In November, Canac made the news taking the first steps toward opening its first store outside of Quebec. Canac President Jean Laberge confirmed to Hardlines the purchase of a site in Hawkesbury, Ont., but added that groundbreaking would not begin until late 2019 at the earliest.

Similarly, one of our top October stories was the growth of Groupe BMR. It announced expansion into the Atlantic region, with the addition of 17 former Co-op Atlantic stores. In addition, the news in May that BMR is getting serious about Ontario expansion attracted a high volume of readers.

Expansion wasn’t the only side of the story, however. In November, we reported that Lowe’s Canada would close 22 “underperforming” stores, including all four RONA corporate stores in Newfoundland. However, Lowe’s support of the Ace banner in Canada had that banner announcing its 100th store here in April.

One story that stayed in the headlines through most of the year was the saga of Sears’ decline and fall. The January closure of the chain’s last Canadian stores was soon followed by the battle for its former workers’ pensions. Summer saw Sears Holdings in the U.S. slash more store locations.

Our coverage of the TIMBER MART show in Montreal was a favourite among readers in February. With the industry sustaining fewer annual buying shows, TIMBER MART brought the event back to basics as “a true buying show,” in the words of President Bernie Owens.

Other stories related to the broader political and economic currents of 2018. Against the backdrop of fevered negotiations over NAFTA, CertainTeed in the spring filed a complaint alleging that 54-inch drywall from the U.S. was flooding the Canadian market at unreasonably low prices. The Canadian International Trade Tribunal had upheld a similar grievance from CertainTeed over 48-inch drywall in 2017, but rejected the latest one.

The year ahead shows no signs of slowing down, so we’ll continue to work diligently to report the news and provide the insights to help you better understand and be profitable in Canada’s retail home improvement industry.

SAINT JACOBS, Ont. — Home Hardware Stores Ltd. continues to reorganize its ranks following the hire of a new president and CEO last fall. The latest addition to the company’s leadership team is Marianne Thompson in the role of vice president, merchandise LBM. The position takes effect today.

“Our number-one priority is providing our dealers with the best program for independents in the industry,” said Kevin Macnab, president and CEO of Home Hardware Stores. A relative newcomer himself, Macnab joined the dealer-owned co-op back in September 2018.

Home Hardware made a strategic reorganization of its merchandise department in 2015, which resulted in the creation of two new dedicated merchandise teams responsible for all product sourcing. However, Joel Marks had been filling both the hardlines and LBM roles since 2016. Now he will return to focusing on the hardware side as vice president, merchandise hardlines, with Thompson in the lead role on the LBM side.

Thompson began her career in retail at Lansing Buildall. She made her mark within the industry in senior executive roles with a number of vendors, most recently as senior vice president of North American sales at Jeld-Wen Windows and Doors. She has also held executive positions with Alexandria Moulding, Supplier Pipeline and Colonial Elegance.

SPECIAL REPORT — Traditional dealers in the U.S. still garner the majority of consumer spending on power tools, despite the growth of online retailing.

Recent TraQline survey data from research firm The Stevenson Co. shows that 81% of consumer power tool purchases happen in physical stores. The three U.S. retailers that draw the most consumer spending in the category are Home Depot, Lowe’s and Sears.

According to the study, nearly a quarter of the U.S. customers polled decide where to buy their circular saws, cordless drills and other similar products based on where they happen to be shopping for other items already.

The results revealed that two-thirds of power tool shoppers are men shopping by themselves. Almost two-thirds of consumers make their final power tool purchasing decision based on price.

Derby Building Products, manufacturer of the Novik and Tando brands of exterior cladding, has appointed Claude Dion as national account manager (retail), Canada. The new role includes developing and negotiating agreements with all key corporate and regional decision-makers to help support Novik’s brand growth. Dion will also be responsible for sales, training and merchandising activities within these accounts. He was most recently consultant and project manager for Meunier Industrial Tools.

Luc Rodier has been appointed president and CEO of Guillevin International. He joined the Montreal-based electrical and safety products wholesaler in March 2017 as COO. Prior to that, he served as executive vice president of retail at RONA. Rodier was there for 11 years and was one of the key senior executives on the turnaround team, under CEO Robert Sawyer, leading up to RONA’s takeover by Lowe’s.

…that we look forward to hosting a ton of cool events for you this year? We will start with the Canada Night Reception at the Orgill Market in Orlando, Fla., on February 21. It’s free to dealers and sponsoring vendors, so click here click here to reserve your spot today!

VAUGHAN, Ont. — Toronto LBM dealer CTS Building Supplies is TIMBER MART’s newest independent member dealer. “Not only will TIMBER MART provide us with the buying power and Spancan vendor-direct programs we need to compete, but also the group support we’ve been looking for,” said Owner Ranjith Kones. CTS opened its doors in 2013 and its offerings have grown to include tools, plumbing and electrical products, lumber, flooring and insulation.

HALIFAX — Kent Building Supplies continues to expand with a focus on greenfields developments. According to the Halifax Chronicle Herald, the home improvement retailer has started construction on a new store in Lower Sackville. It will replace an existing store on the same site, at the corner of Sackville Drive and Beaver Bank Road. The old store will be taken down once the new one is completed.

SASKATOON — Federated Co-operatives reported revenues of nearly $10.7 billion for the fiscal year, up 8% from $9.8 billion the previous year. From these revenues, FCL realized record earnings of almost $1.1 billion, up from $575 million in 2017. This surpasses the previous record of $879 million in 2013 and far outstrips the 10-year average of $689 million. This year, $789 million is being returned to the more than 170 independent retail co-operatives that are FCL’s members and owners.

MONTREAL — Dollarama’s first e-commerce site is now transactional in Quebec. Home delivery and pickup from UPS counters are available to Quebec residents making bulk purchases. A flat $18 shipping fee will apply to all orders. Spokesperson Lyla Radmanovich said that a “selection” of about 1,000 items will be offered in bulk quantities on the site.

MOORESVILLE, N.C. — Lowe’s Cos. will hire some 2,000 software engineers in the coming years as it seeks to ramp up its online presence and close the gap with rival Home Depot. CEO Marvin Ellison said the company hasn’t yet determined where the new positions will be based.

MILL VALLEY, Calif. — An online job board has selected 25 top national companies to work for, and Home Depot Canada makes the list this year. Glassdoor.com created the ranking for companies with more than 1,000 employees, evaluating factors like work environment and bosses. Home Depot Canada lands at number 25, its first time on the list. While online companies take many of the top rankings (Microsoft is in first place), other big retailers include IKEA (number 18) and Best Buy (number 19).

LEIDEN, Netherlands — IKEA will open several small showrooms in cities around the world, including one in New York’s Upper East Side. Due to open in the spring, the IKEA Planning Studio is geared to urban shoppers who don’t drive. At about a quarter of the size of a standard IKEA store, the studios will lack the familiar warehouse format.

SEATTLE — The Greater Edmonton Area will be home to Amazon’s second Alberta fulfilment centre, which will be developed on a 58-acre site at Leduc County’s Nisku Business Park. Slated for completion in 2020, the facility will join Amazon’s warehouse in the hamlet of Balzac, north of Calgary. Amazon has also announced plans to expand its 113,000-square-foot Toronto Tech Hub, adding another 600 jobs in fields such as software development, machine learning, cloud computing, digital advertising and artificial intelligence.

SUPPLIER NEWS

MEDINA, Ohio — RPM International, through its Rust-Oleum group, has acquired Siamons International, provider of the Concrobium brand of non-toxic specialty mould cleaners. Ontario-based Siamons has annual net sales of approximately $20 million. The Concrobium brand will join Rust-Oleum’s specialty cleaning product portfolio, which includes Krud Kutter, Mean Green, Roto-Rooter, Whink, Jomax and Moldex.

MONTREAL — Intertape Polymer Group announced the acquisition of “substantially all” of the operating assets of Maiweave for total cash consideration of approximately $21 million. A private company based in Springfield, Ohio, Maiweave manufactures engineered coated polyolefin fabrics used in applications such as grain and salt pile covers, pit and pond liners, shelter fabrics, outdoor media and lumber mill packaging.

ECONOMIC INDICATORS

Sales of existing Canadian homes fell by 2.3% in November, adding to the decline in October of 1.7%. Transactions declined in just over half of all local markets, with lower activity in the Greater Toronto Area, the Greater Vancouver Area and Hamilton-Burlington offsetting increased sales in Edmonton. Actual (not seasonally adjusted) activity was down 12.6% year-over-year. (Canadian Real Estate Association)

Retail sales increased 0.3% to $51 billion in October. Higher sales at motor vehicle and parts dealers and gasoline stations were the main contributors to the gain. Excluding these two sub-sectors, retail sales declined 0.4%. Sales of building materials and garden equipment edged down 0.9% from September and 3.1% from last October. (StatCan)

Housing starts rose 3.2% in November to a seasonally adjusted annual rate of 1.26 million, due to higher activity in apartment construction. The November rate marked a 3.6% decline from a year ago. Starts on single-family dwellings fell 4.6% from October and 13.1% from last November. (U.S. Commerce Department)

CHICAGO — Joining forces with other hardware stores in your community to share advertising efforts was just one of the tips shared at a conference for home improvement dealers, held in Chicago earlier this month. The State of Independents Conference was hosted by the North American Retail Hardware Association.

Christine Hand, owner of Handyman Home Hardware in St. John’s, and chair of the board for Home Hardware Stores Ltd. (shown here), was part of a panel of independent dealers talking about changes in the marketplace. She explained that her store pools resources with three other local dealers to develop a regular advertising section in the weekend newspaper and buy air time for joint ads on radio.

Joe Franquinha is the owner of Crest Hardware in Brooklyn, N.Y. With just 5,000 square feet to work with, he’s been able to develop a fast-growing lawn and garden business—year round. He’s had success thanks to a strategy that includes creating a fun shopping environment in-store. Franklin, a pot-bellied pig, and a grey parrot both live in the store and have huge appeal for kids who accompany their parents to the store. Franquinha also goes out of his way to create partnerships with local hotels and hospitals to create holiday landscapes on their properties.

Franquinha had other suggestions for building a year-round lawn and garden business, such as offering delivery to compete with online sales. He’s currently trying to develop landscaping services to provide additional value for his lawn and garden customers. He also found that, for his urban customers, a balance between trendy, more expensive items and low maintenance, high turnover assortments work best.

SPECIAL REPORT — The path to becoming an Outstanding Retailer Award winner can be a rocky one. But even a devastating fire three years ago could not stop Connie Gutoskie Lasalle and Jean-Guy Lasalle from earning this year’s Outstanding Retailer Award for best building supply or home centre over 15,000 square feet.

The pair started Matériaux JLS in 1993 in Bryson, in the Pontiac region of Quebec, northwest of Ottawa. Business was good, and five years later they purchased a second store in nearby Mansfield-en-Pontefract.

But after more than a decade of expansion there, the unthinkable happened: just a month before Christmas in 2015, the store burned to the ground—a blow to both the business and the economically disadvantaged town.

With support from their Bryson location, the Lasalles set up trailers and within 36 hours began serving Mansfield customers, a decision, they say, that “wasn’t easy, but it was necessary.” Without even being asked, the staff all came out to pitch in. “They wanted to help and support us because the store was their home and the community’s home as well,” says Gutoskie Lasalle.

After much discussion, they decided to rebuild the store in March 2016. By December, they had built two new buildings—a garden centre and a drive-through warehouse, that includes a heated area to house rental equipment and service trucks. They held a grand re-opening party in the spring of 2017. “We strove to create a store that would make everyone comfortable, excited and feel that we were their one-stop shop,” Gutoskie Lasalle notes.

Although it was a tough ordeal to endure, the Lasalles viewed the fire as an opportunity for a fresh start—one that helped them become ORA winners in 2018.

MOORESVILLE, N.C. — As he approaches his first year end with the company, Marvin Ellison, president and CEO of Lowe’s Cos., is demonstrating just how hard he is working to increase shareholder value for the world’s number-two home improvement retailer.

Ellison and his executive team shared strategic priorities and long-term financial targets with analysts and investors last week at the company’s head office in Mooresville, N.C. The big news for Wall Street was the announcement that Lowe’s intends to buy back up to $10 billion in shares in a major stock repurchase program. Lowe’s shares bumped up 4% on the news.

Ellison joined Lowe’s in July 2018. He was formerly chairman and CEO of J. C. Penney Company, Inc.

In terms of performance, Lowe’s executives expect total sales to increase about 4% in 2018. Comparable sales are expected to increase approximately 2.5%. For 2019, Lowe’s is forecasting more modest growth of 2%, with comp sales up 3%.

“We have substantially completed a detailed reassessment of our business and are diligently implementing process and technology improvements that are rooted in the fundamentals of retail and designed to position Lowe’s to win in today’s complex retail environment,” said Ellison.

CFO David Denton added that the company is combining efforts to drive sales with “an expense reduction culture.”

Ellison admitted that the changes being implemented to both the processes at Lowe’s and its technologies will take time. But he expects that they “will enable Lowe’s associates to better focus on serving customers and capture significant market opportunities.”

TORONTO — Canadians are shopping for more than gifts this season, according to a poll by Ebates.ca. Other holiday purchases include holiday entertaining (92% of shoppers), holiday décor (71%), new clothes and accessories for holiday events (69%) and travel (58%).

These secondary holiday expenses can add an additional $528 on average to the $602 Canadians are already spending on holiday gifts this season, making for a total average of $1,130.

“Canadians may be spending more this year, but they are finding creative ways to stretch their holiday shopping budgets further,” said Belinda Baugniet, VP of marketing and resident shopping expert at Ebates.ca. “If there’s one pattern we’ve observed through our annual surveys, it’s that Canadians are smart shoppers who engage in loyalty programs that offer points and cash back, as well as social media and apps that lead them to the best deals.”

Canadians have also adopted Black Friday and Cyber Monday as the kickoff to their holiday shopping, taking advantage of late-November deals even in the absence of a long weekend.

At Home Hardware Stores Ltd., Tammy Wallace has been appointed merchandise manager of housewares and home décor. Effective this week, Wallace is taking the reins from Jane Wall, who is retiring after a distinguished 41-year career with the company. Wallace brings 17 years of merchandise experience to the role, most recently as inventory analyst for Home Hardware.

Paul Commisso has joined Jeld-Wen in Vaughan, Ont., as director of marketing and product management. Prior to that, he spent 11 years at Husky Injection Molding Systems. Also at Jeld-Wen: Cris Abbott has been named provincial sales manager for British Columbia and Alberta, reporting directly to Commisso. She’s been in the fenestration industry for more than 28 years and has held several positions within Jeld-Wen. She replaces Brett Sigursdon, who is leaving the organization to pursue other opportunities.

Coast Distributors Ltd. has promoted David Scheltgen to its outside sales team. Scheltgen has been working in shipping and receiving at the company’s Nanaimo distribution centre for the last two years. His new territory will be Northern Vancouver Island.

…that the latest issue of our new online publication, Hardlines Dealer News, was sent out last week? It’s filled with stories and tips for running your retail operation better. If you’re not getting your free copy, click here to subscribe!

MONTREAL — The seventh annual Leger Wow Index was published late last month, measuring customer experience with online and bricks-and-mortar retailers. Lee Valley Tools led the way in the new e-retail category with a 96.2% satisfaction rate. In bricks-and-mortar, Reno-Depot was among the most improved retailers, its rating surging by 11.3 percentage points since the arrival of retired hockey player Dave Morrissette as spokesperson. Among the top 100 list were Canac (in 29th place), Groupe Patrick Morin (at 53), Groupe BMR (94) and Home Depot Canada (97).

TORONTO — Sears Canada pensioners have agreed to an estimated $48 million from the insolvent retailer, dropping their bid for priority over other unsecured creditors. In a tentative settlement with the company’s court-appointed monitor, the pensioners agreed to a more limited, but more certain, sum in lieu of a risky litigation which, if successful, would leave other unsecured creditors with nothing. The pensioners may yet access a bigger piece of the pie, however, as the monitor is seeking to sue Sears Holdings CEO Eddie Lampert and his ESL Investments hedge fund over a $509 million dividend they and other shareholders received from Sears Canada in 2013.

MISSISSAUGA, Ont. — The buying group Castle Building Centres Ltd. has redesigned its website with a more intuitive, mobile-friendly version. The new castle.ca site also has an efficient store locator function that can map a user’s route right to the nearest store. The site offers a selection of some 30,000 products, including access to the catalogue of Castle’s primary hardware supplier, Orgill.

HOFFMAN ESTATES, Ill. — Sears Holdings Corp. Chairman Eddie Lampert’s hedge fund has made a $4.6 billion offer for the troubled retailer in a bid to keep its stores open. The plan would keep 500 stores and 50,000 jobs intact, according to a filing by ESL Investments. Key deadlines arise this month in the company’s bankruptcy process, and some of its creditors are calling for a speedy liquidation, in the belief that going-out-of-business sales would allow them to recoup more of their losses. ESL’s bid features a proposal to raise $1.7 billion through measures including a new loan. It would also see the hedge fund forgive $1.8 billion of Sears’ debt and assume $1.1 billion of its liabilities.

BRAMPTON, Ont. — Loblaw Companies Ltd. is rolling out a subscription service to its PC Optimum members, offering free shipping and online order pickup for $99 a year. The program is being made available to all 16 million cardholders after an earlier soft launch, and is Loblaw’s answer to Amazon Prime, part of the grocer’s efforts to ramp up its online channel. In addition to in-store grocery pickup and free delivery for Shoppers Drug Mart and Joe Fresh orders, members will have get 20% back in PC Points on select products. Loblaw’s digital push also includes expansion of its click-and-collect program: the company aims to have 700 in-store pickup locations by year’s end.

OAK BROOK, Ill. — Ace Hardware reported record Q3 revenues of $1.43 billion, an increase of $84.8 million or 6.3% from a year ago. Net income however declined $17.5 million to $36.3 million, dragged down by warehouse expansion costs, among others.

SUPPLIER NEWS

VANCOUVER — CanWel Building Materials Group Ltd., through its wholly owned subsidiary CanWel Building Materials, has completed the acquisition of the lumber pressure treating plant and related equipment and business of Western Wood Treating, Inc. Western Wood Treating is in Woodland, Calif., and specializes in producing pressure treated wood products. It has been in business for more than 30 years. The newly acquired facility can service a wide range of lumber types, including, dimensional, timbers, fencing and plywood.

RALEIGH, N.C. — Honeywell International will transfer its head office, along with its Safety and Productivity Solutions unit, from Morris Plains, N.J., to Charlotte, N.C. The move will take between 150 and 200 senior managers to Charlotte, with the addition of new positions bringing the total number of local jobs up to about 750 over the next six years. About 1,000 employees will remain, spread across six locations in New Jersey.

ECONOMIC INDICATORS

Housing starts came to a seasonally adjusted annual rate of 215,941 units in November, up from 206,753 units in October. The SAAR of urban starts increased by 2.2% in November to 202,054 units. Multiple urban starts increased by 3.9% to 151,596 units in November while single-detached urban starts decreased by 2.3% to 50,458 units. Rural starts were estimated at a seasonally adjusted annual rate of 13,887 units. (CMHC)

Canadian municipalities issued $8.1 billion worth of building permits in October, edging down 0.2% from September. The decrease was mainly attributable to lower construction intentions for industrial and institutional buildings. In the residential sector, the value of building permits increased 4.2% from September to $5.2 billion. (StatCan)

“Serial returners”, people who buy stuff then return it constantly, are costing retailers a lot of money, and opening them up to theft through fraudulent returns. The National Retail Federation has estimated that in the U.S. alone customers returned $351 billion worth of goods in 2017. That represents 10% of all sales. It’s further estimated that 6.5% of those returns, valued at $22.8 billion, were fraudulent. Companies like Amazon, Home Depot and even Costco are starting to knuckle down on repeat offenders.

BOUCHERVILLE, Que. — Nick Malone, formerly senior director of central merchandising for Lowe’s Canada, has been promoted to vice president merchandising for the Lowe’s banner at Lowe’s Canada.

He replaces Alan Blundell, former divisional vice president, merchandising for Lowe’s big box stores and Reno-Depot. Blundell has moved over to head up PetSmart Canada as president of the Burlington, Ont.-based pet food and products retailer.

Malone reports to Igor Halencak, EVP central merchandising and global sourcing for Lowe’s Canada.

Malone joined Lowe’s as the company’s supply chain director when it first set up shop in Canada, spending almost 11 years there. After a brief stint at Canadian Tire as assistant vice president for gardening and outdoor tools, he returned to Lowe’s Canada as senior director of central merchandising.

The news follows the announcement earlier this month by Lowe’s Canada that it would close its Mississauga, Ont., offices, affecting up to 200 people there. A spokesperson for Lowe’s Canada confirms that some jobs will be transferred to the Boucherville head office, as this will allow all teams to be regrouped at the same location.

NIAGARA-ON-THE-LAKE, Ont. — According Denis Melanson, chair of the Building Material Council of Canada (BMCC), 25% of the workforce in lumber and building materials is age 55 and over. And that, he says, should serve as a wakeup call for the entire industry.

Speaking at the 23rd annual Hardlines Conference, held last month, he explained to a group of 150 dealers and suppliers that BMCC has rallied sponsor support and invested in recruitment tools to woo a new generation of workers to enter the world of building materials. The mandate is to serve both the retail and the supplier sides of the industry with a job board online, at buildingsupplycareers.ca. Since its launch in June 2018, it has become the “go-to site” for the industry, says Melanson.

A video on the BMCC site aimed at the 18-44 demographic spotlights the dynamic, people-oriented aspects of working in the building materials industry. It is filled with clips and sound bites from retail employees and warehouse workers who’ve thrived in the industry. The video has been viewed 150,000 times (It’s actually a very cool video! —Editor) and Melanson notes that 27% of the site’s followers are women.

The BMCC brings together the Atlantic Building Supply Dealers Association (ABSDA), the Lumber and Building Materials Association of Ontario (LBMAO), the Western Retail Lumber Association (WRLA) and the Building Supply Industry Association of British Columbia (BSIA). It represents more than 2,400 members from the retail, wholesale and vendor sides of the business.

TORONTO — Canadian Tire Corp. may be getting ready for more acquisitions. It has just completed a public offering, through its CT Real Estate Investment Trust, of 21,115,000 units of CT REIT. The offering consisted of a secondary offering of 15,936,000 Units by Canadian Tire and a treasury offering of 5,179,000 Units by CT REIT, for gross proceeds of $200 million and $65 million, respectively.

The company says part of the proceeds from the offering will be used to support its continued investment in Canadian Tire’s brand initiative, which is an important part of the retailer’s online strategy. Canadian Tire has made clear its intentions to continue investing in its own brands, which could well include further acquisitions like the $985 million takeover of Helly Hansen it made in May of this year. Exactly a year earlier, it acquired the Canadian license to the Paderno brand of cookware.

The net proceeds of the treasury offering will be used by CT REIT to fund previously announced acquisitions and the ongoing development of existing properties, and to pay down its credit facility. Canadian Tire Corp. intends to remain the majority unit holder of CT REIT over the long term.

OTTAWA — After strengthened activity in 2016 and 2017, housing starts in this country have been slowing through 2018. And that trend is forecast to continue into 2020, says a new report. However, reno spending is expected to punch above its weight, says one forecaster.

According to the latest housing report from Canada Mortgage and Housing Corp., housing starts will slow down gradually over 2018 to 2020, from the 10-year high recorded in 2017. The slowdown will be “more in line with a moderating economic outlook and demographic conditions,” particularly as income and job growth slow, the report says.

The latest numbers buck this trend, but they’re not expected to maintain. Housing starts were at a rate of 205,925 units seasonally adjusted in October, up from 189,730 units in September. “Over our forecast horizon, housing starts are projected to decline from elevated levels recorded recently,” says Bob Dugan, chief economist for CMHC.

A more important indicator for much of the retail home improvement industry is the renovation market. Home fixups, improvements and repairs represent a much larger market than new housing, says Peter Norman, vice president and chief economist at Altus Group, an economic and market consultancy that focuses on housing. Renos were strong, he says, running at about 8% growth nationally year to date. “Overall, we’ve seen reno spending growing above the rate of other growth.”

The reno market is worth $78 billion, while spending on new housing weighs in at $58 billion. He expects growth of at least 4% for reno spending over the next few years. “But we may be challenged,” he cautioned, citing a slower forecast for GDP growth this year, rising interest rates and a sluggish economy.

A big driver of renos and repairs can be measured in sales of existing homes, and these are slowing, as well. Sales of existing homes edged back by 1.6% in October, according to the Canadian Real Estate Association. While activity is still stronger compared to the first half of 2018, it remains below monthly levels recorded from early 2014 through 2017.

Steve Figueiredo is the new field operations manager for The Reset Team, based in Toronto. He reports to Bob Arora, president. Before joining The Reset Team, Figueiredo spent almost 13 years at ServRite Inc.

…that you can find out the market share, sales and forecasts for Home Depot, Canadian Tire, Lowe’s Canada? Yup, it’s all in the 2018 Hardlines Retail Report. You’ll find in-depth analysis of the country’s top hardware and home improvement players and breakdowns of the Top 20 retail groups. This year’s Retail Report features 200 PowerPoint slides, and it has more trends analysis and more forecasts than ever. Click here for details and to order your Hardlines Retail Report now!

MOORESVILLE, N.C. — Lowe’s Cos. is looking for a buyer for its Iris Smart Home platform as part of a “strategic reassessment”, which sees the company focusing on its core business. Along with its exit from the home automation business, Lowe’s has also closed its Orchard Supply banner and will do the same to all Lowe’s stores in Mexico. It’s also selling off its Alacrity Renovation Service. All told, the changes are expected to save the company $280 million in costs tied to leases, inventory and severance packages.

HOFFMAN ESTATES, Ill. — Sears plans to sell 505 stores early next year in a bid to preserve the brand, the Dallas Morning News reports. The company, under bankruptcy protection, has told the court it is cutting costs but needs help from mall landlords, from whom it hopes to secure rent cuts. The court documents were filed just after a Black Friday that saw fewer sales for Sears than last year.

SUPPLIER NEWS

DELSON, Que. — Goodfellow Inc. has expanded its assortments with the addition of Fortress Railing Products. The national wholesaler of specialty building products will distribute Fortress’s new Al13 Home Aluminum Railing series to Canadian building materials dealers. “Fortress Railing is excited about our new relationship with Goodfellow and the opportunity to work with them to reach new customers and expand our presence in the Canadian market,” said Chris Jones, general manager of Fortress Railing Products.

COURBEVOIE, France — Saint-Gobain says it will accelerate its ongoing asset sale and revamp its structure to grow its margins and trim costs. The company’s three divisions and 14 delegations will be consolidated into five reporting units, generating some €250 million ($378 million) in savings. At the same time, Saint-Gobain has announced the appointment of Benoit Bazin as COO and Sreedhar Natarajan as CFO.

ST. LOUIS — Energizer has completed its $1.25 billion acquisition of Spectrum Brands’ Global Auto Care group, the division that makes Armor All and STP brands. The news comes as Energizer’s purchase of Spectrum’s battery business nears completion, expected early in the new year. Energizer’s COO told investors this month it can boost the Global Auto Care group’s performance.

ECONOMIC INDICATORS

Retail sales edged up 0.2% to $50.9 billion in September following a relatively flat August. The gain was led by food and beverage stores and, to a lesser extent, general merchandise stores and motor vehicle and parts dealers. Sales were down at gasoline stations, and building material and garden equipment and supplies dealers saw a decline of 1.9%. Excluding gasoline stations, retail sales rose 0.4%. (StatCan)

U.S. sales of new single-family houses in October were at a seasonally adjusted annual rate of 544,000. This is 8.9% below September’s estimate of 597,000. (U.S. Commerce Dept.)

“We expect resales in 2019 and 2020 to remain below recent peaks, while prices should reach levels that are more in line with economic fundamentals, such as income, job and populations growth.
—Bob Dugan, chief economist for CMHC, on the agency’s latest housing market outlook.

Michael McLarney is heading down to Chicago this week for the North American Retail Hardware Association’s State of Independents Conference. This one-day, interactive event delivers proprietary research, live feedback, networking opportunities and advice from high-impact retailers on how to work more closely with the independent retail channel. Hardlines proudly represents the NRHA in Canada.

NIAGARA-ON-THE-LAKE, Ont. — Branding can work globally, nationally and locally. That was just one of the conclusions of the recent Hardlines Conference, at Queen’s Landing in Niagara-on-the-Lake, Ont.

The conference’s theme of branding carried through the presentations, starting with insights from one of the country’s leading brand experts, Ian Madell, managing partner and president of Level5 Strategy Group. He pointed out that a company’s brand is a key asset, and one that is too-often under-valued―or misused.

Over the two days of the conference, the conversation also turned to the importance of the local brand, as used by independent dealers in the retail home improvement industry. Steve Buckle, president of Winnipeg-based Sexton Group, said the most important brand for his group is “the sign above the door” of a local building centre. He explained how Sexton Group supports dealers who each have their own strong brands in their respective markets.

Catherine Vaugh has worked with some of the most famous global brands, including Reebok. Now she’s the brand building manager for Orgill, Inc., the hardware wholesaler. Her job is also to support independents who fly their own banners. She does it with a range of services provided by Orgill. “I see us as an independent retailer’s brand building marketing department.”

Vaugh advised delegates that even local dealers can learn from global brands. “Stay steadfast and true to your core values when managing your brand,” she said.

Buckle recapped the need for a strong national focus on local banners. “Across the country, Sexton members represent hundreds and hundreds of brands. It’s our job to support them.”

QUEBEC CITY — The news that Sico’s parent company will transfer the paint manufacturer’s operations to Ontario has caused politicians to mull taking their business elsewhere, prompting concern on the part of retailers who rely on Sico sales.

PPG Industries made its announcement on November 15, pulling the plug on 125 jobs at Sico’s Quebec City plant and its head office and distribution centre in Boucherville, which will both close their doors by September 2019. In a statement, PPG called the decision “difficult” but “necessary to remain competitive in the market,” and pledged to maintain “a strong presence in Quebec and in Canada.”

The company took a significant hit earlier this year when Lowe’s announced it would retire the PPG brands from U.S. stores, a move that has no impact on Sico sales to Lowe’s in Canada.

In Quebec, where the sales of RONA and two of Bombardier’s units have wounded popular pride, political reaction was swift. Sico was Quebec-owned from its start in 1937 until its acquisition in 2006 by Dutch multinational Akzo Nobel, which sold it to PPG in 2013.

PPG’s bombshell dropped as Quebec Premier François Legault, a former Sico director, was capping his first month in office with a trade mission in Boston. The Air Transat co-founder, who ran on an economic nationalist platform, questioned “whether Quebecers should continue to buy from Sico” after the move to Ontario. When pressed about whether that meant a boycott, Legault reiterated that “Quebecers must be sensitive to buying local” and said he would see what other paints are made in the province.

The next day, Régis Labeaume, Mayor of Sico’s hometown of Quebec City, took a stronger tone, while still stopping short of calling for a boycott. “I will buy paint that is made in Quebec,” he said, “it’s as simple as that.”

Quebec-based paint makers are seizing the opportunity. Montreal’s Denalt Paints is launching a marketing blitz, with billboards, radio spots and online ads, while Laval’s Micca Paint is making similar plans. MF Paints, which has scooped up a laid-off Sico chemist, is looking to grow to 20% market share, more than doubling its current position.

Not everyone welcomes the trend, however. Mathieu Normand-Bergeron is co-owner of Juneau et Frère in Quebec City, which exclusively sells Sico products. He’s concerned that nationalist rhetoric from political leaders will hurt Quebec businesses. “Such remarks directly attack merchants like us,” he told Le Journal de Québec.

AQMAT president Richard Darveau also distanced his organization from calls for a boycott. “AQMAT is a strong defender of this traditional brand,” he says. Though “the loss of industrial jobs is always sad news,” Darveau says it’s part and parcel of a global free market.

MOORESVILLE, N.C. — While sales were up, Lowe’s Cos. saw profits slip in its third quarter. Under CEO Marvin Ellison, the company wasted no time making cuts to streamline the business, which include pulling out of Mexico and dropping certain non-core activities in the U.S., such as its Iris Smart Home initiative.

Profits were impacted by a number of one-time charges. The strategic reassessment revealed by Lowe’s Cos. in its latest quarterly results report resulted in $280 million of pre-tax charges. The charges included $121 million related to the closing of 20 under-performing stores in the U.S. and 31 locations in Canada, including 27 retail outlets.

Another $123 million was associated with the company’s decision to close all its Orchard Supply Hardware locations in the U.S. Lowe’s is also exiting the Mexico market, where it has 13 stores, at a cost of $22 million.

These charges were incurred to improve Lowe’s financial returns and to “allow the organization to focus on the key drivers of long-term value creation,” said David Denton, executive vice president and CFO of Lowe’s, during a call to analysts following the release of the company’s third-quarter results.

TORONTO — Home Depot Canada has been working with suppliers to create a system for delivering flowers and arrangements as part of its commitment to online sales. According to Mark Beaty, senior seasonal merchant for outdoor, the company offers a whole range of live goods available only online.

He says his team worked for two years with suppliers, packagers and UPS, the delivery service, to develop a system. One of the challenges was the packaging itself, he adds. UPS has a strict rule that anything it delivers must be clean. “They have a no-dirt rule.” That meant coming up with a way to get the products delivered intact—without a mess.

Home Depot Canada ships its live goods nationwide from a farm in King City, Ont., which assembles and packs all the orders. The farm grows some of the plants, and works with a network of local farms to round out assortments.

Beaty says larger arrangements with more fashion sense have been developed in recent years, opening up a market for bigger ticket items. While simple arrangements in years past would average around $20, the latest products are hitting price points near $100.

Sarah Wielens has joined EAB as marketing manager. She brings with her a wide range of experience in the marketing field, most recently as a freelance strategic and tactical marketer. She will lead EAB’s existing marketing group to continue to promote the EAB-Exchange a Blade brand of exchangeable power tool accessories, while focusing on environmental sustainability.

…that the latest issue of our brand new online publication, Hardlines Dealer News, was sent out earlier this month. It’s filled with stories and tips for running your retail operation better. If you’re not getting your free copy, just click here to subscribe!

MONTREAL — RONA Matériaux Pont-Masson, an affiliate dealer with five stores already, including one in Ontario, will open a sixth store next spring in the Pierrefonds-Roxboro borough. This will be co-owners Éric and Stéphane Bailey’s first store on the island of Montreal. The 9,000-square-foot store will have another 70,000 square feet of lumber yard, including a covered warehouse. The dealer’s other locations are in Valleyfield, Rigaud, Mirabel and in Alfred, Que.; and one in Casselman, Ont., which opened in June 2017.

MOORESVILLE, N.C. — Lowe’s Cos. reported Q3 profits of $629 million, down from $872 million last year. At the same time, the company announced its intention to exit its retail operations in Mexico, along with certain non-core activities in the U.S. Sales for the quarter increased 3.8% to $17.4 billion from a year ago and comparable sales by 1.5%. Expenses included $121 million of long-lived asset impairment and severance obligations related to the store closures in Canada and the U.S.

LONDON — Lowe’s isn’t the only giant home improvement retailer to announce it’s pulling out of foreign markets. British-based Kingfisher Plc, which owns B&Q, the largest home improvement chain in Europe, will withdraw from Portugal, Spain and Russia. The company announced the moves along with its third-quarter earnings. Kingfisher says it will focus on its key markets in Britain and France, where it operates the Castorama chain of home improvement big boxes. Sales for Kingfisher overall were up 0.2% amidst tough retail conditions, while same-store sales were down 1.3%. France was the slowest market, with same-store sales down 7.3%.

BURLINGTON, Ont. — IKEA says up to 150 jobs may be cut from its Canadian operations over two years as it responds to changing consumer behaviour and moves to solidify its e-retail focus. The cuts are part of a global streamlining that will see about 7,500 positions eliminated worldwide. They include some 50 redundancies at the Burlington, Ont., head office. In a release, the company said it would redouble attention to “its e-commerce platform, to better meet the needs of its customers” while also exploring new store formats and strengthening its distribution network.

BRAMPTON, Ont. — Loblaws will begin to test a “shop and scan” app at five Greater Toronto stores, allowing shoppers to save time at checkout. The PC Express app, which will be rolled out to a further three stores in the region over the coming weeks, uses the free in-store wifi network. Customers can scan items as they shop and then place them in their carts. Digital scales will be equipped to weigh produce, and a barcode for the purchase total can be quickly scanned at traditional or self-service checkout lanes as well as dedicated stations for app users.

SUPPLIER NEWS

MONTREAL — Intertape Polymer Group has exercised its option to acquire the outstanding interest in Powerband, of which it became majority owner last fall. The Desai family, which founded the Indian-based supplier of acrylic adhesive-based carton sealing tapes and stretch films in 1994, retained a 24% stake after the sale to IPG in September of 2017. Once the $9.9 million transaction satisfies Indian regulatory conditions, IPG will hold all issued and outstanding common shares of Powerband.

ECONOMIC INDICATORS

Wholesale sales declined for a second consecutive month, down 0.5% to $63.2 billion in September. Lower sales were recorded in five of seven sub-sectors, led by the machinery, equipment and supplies and the personal and household goods sub-sectors. However, sales in the building material and supplies sub-sector increased 1.5% to $9.5 billion, following a 3.9% decline in August. The lumber, millwork, hardware and other building supplies industry category saw the biggest gain, up 3.0%. In volume terms, wholesale sales declined 0.7%. (StatCan)

U.S. housing starts rose by 1.5% overall in October, despite a 1.8% downturn in construction of single-family homes. The seasonally adjusted annual rate of starts for the month was 1.23 million, up from 1.21 million in September. Building permits saw a slight decline, falling 0.6% to a rate of 1.26 million. (U.S. Commerce Department)

NIAGARA-ON-THE-LAKE, Ont. — Suppliers and retailers from across Canada gathered last week to honour the retail home improvement industry’s best hardware and home improvement retailers. The occasion was the 2018 Outstanding Retailer Awards Gala Dinner, which marked the end of day one of the 23rd Annual Hardlines Conference at the scenic Queen’s Landing hotel in Niagara-on-the-Lake, Ont.

Dealers from across the country were celebrated in seven categories covering the range of hardware and home improvement retailing formats. Delegates at the Hardlines Conference joined leaders from the retail chains, co-ops and buying groups who attended the Gala Dinner to honour their members and fellow retailers.

This year’s winners are:

• Best Hardware Store, any size − Quincaillerie Sainte-Julie in Sainte-Julie, Que., Michel Robidoux and Marie-Josée Hébert, Owners;
• Best Building Supply or Home Centre under 15,000 square feet − Ace Building Centre-Kaslo in Kaslo B.C., Monica and Jeff Davie, Owners;
• Best Building Supply or Home Centre over 15,000 square feet − Matériaux JLS-BMR in Mansfield-en-Pontefract, Que., Connie Gutoskie Lasalle and Jean-Guy Lasalle, Owners;

• Best Contractor Specialist − Form & Build Supply in London, Ont., Bill Ross, Owner;

• Best Large Surface Retailer − Lowe’s South Windsor in Windsor, Ont., Mark Birse, Manager;

• Best Young Retailer − Tyler Dueck, Co-owner of RONA Valley Enterprises in Rosenort, Man.;
• Marc Robichaud Community Leader − Fort St. John Home Hardware Building Centre in Fort St. John, B.C., Doug and Shelley Gallinger, and Darrell and Debbie Alexander, Owners.

Chosen from a competitive field of nominees, the winners each displayed an edge that put them ahead of their peers in the areas of good business practice, customer relations, innovation and niche marketing.

“These retailers reflect a diversity of backgrounds, marketplaces and personal challenges, yet they all share a passion for retail and incredible connections with their customers and communities,” said Michael McLarney, president of Hardlines Inc., which presents the awards. “These winners are truly outstanding and set new standards for excellence in retail.”

Launched in 1992, the Outstanding Retailer Awards are the industry’s only national awards program dedicated to celebrating the achievements of hardware and building supply dealers in Canada. In its 26-year history, the program has honoured more than 150 retailers.

NIAGARA-ON-THE-LAKE, Ont. ― Industry leaders from every sector of Canada’s retail home improvement industry, and from across the Canada, gathered for day one of the 23rd annual Hardlines Conference last week.

Under the theme, “The Power of Brand”, about 150 people gathered at Queen’s Landing hotel in Niagara-on-the-Lake, Ont. The event kicked off with insights from one of the country’s leading brand experts, Ian Madell, managing partner and president of Level5 Strategy Group. “Your brand is the value of a promise consistently kept,” he explained.

Speakers on day one included Darrin Noble, VP and general manager of Home Hardware’s Beauti-Tone paint division. Beauti-Tone is one of Home Hardware’s most important house brands. “Can a private label perform like a national brand in how it goes to market?” Noble asked rhetorically. “My answer is that it has to.”

Steve Buckle, president of the Sexton Group, explained how his buying group works with suppliers on behalf of his members. He noted that his group’s mandate is to support one brand―“the sign above the door” of the individual dealers that belong to Sexton Group.

Peter Norman, VP and chief economist for Altus Group, noted that renovation spending will continue to be relatively strong, even as new housing markets slow down.

Day two began with a presentation by Charles Valois, VP central marketing for Lowe’s Canada. Valois reaffirmed Lowe’s Canada’s commitment to the independent dealers who fly the RONA and Ace banners. “We’re very proud of these people,” he stated. “It’s incredible what they’re doing for our business.”

Two dealers took the Hardlines stage during the conference. Russ Jones, a RONA dealer with three stores on British Columbia’s Sunshine Coast, gave a deeply moving account of his personal involvement in the community and beyond. Jillian Sexton, a TIMBER MART dealer with three stores in the Maritimes, delivered a powerful message about the role, and challenges, of women in this industry.

Catherine Vaugh, brand building manager for Orgill Canada, talked about the range of services the wholesaler provides to dealers―in addition to the products in its warehouses. “I see us as an independent retailer’s brand building marketing department.”

The conference, now in its 23rd year, is the only national event for the retail home improvement industry in Canada. It gathers dealers, suppliers and retail head offices for two days of learning and networking. The next Hardlines Conference will be held November 12 to 13, 2019.

QUEBEC CITY — Groupe BMR held its 2018 Trade Show from November 7 to 9 at the Quebec City Convention Centre, gathering some 700 representatives from its dealer ranks, with approximately 330 exhibitors on a 75,000-square-foot show floor.

Guests at this year’s show included 27 “prospects”. These dealers, who are considering joining BMR’s ranks, had the opportunity to see the buying group and wholesaler’s latest offerings. Nine new product categories introduced this year point to a focus on the expansion of offerings outside the core hardware lines. Among them are bicycle parts and accessories, windshield wipers, kitchen accessories, vacuum cleaners and RV accessories.

The show’s floor featured a dedicated space for learning about turnkey merchandising solutions. A pavilion dedicated to horticulture and agricultural products was built to house several suppliers exclusive to BMR.

A particular focus this year was on the impact of the company’s “digital shift” in customer service, including the www.BMR.co site, which became transactional this year. The company’s efforts in that department were previously recognized in October with the Digital Shift prize from Quebec’s retail council.

Winding down the show was the BMR Gala on the evening of Friday, November 9. This closing event was an opportunity to recognize outstanding performance by dealers and suppliers over the past year.

SPECIAL REPORT — Bricks-and-mortar retailers in the U.S. still garner the majority of consumer spending on power tools, despite the ever-expanding online retail marketplace.

Recent TraQline survey data from research firm The Stevenson Co. show that 81% of consumer power tool purchases happen in physical stores. The three U.S. retailers that draw the most consumer spending in the category are Home Depot, Lowe’s and Sears, according to the research.

However, in Canada, an increasing number of independent dealers, like Brent Perry of Alf Curtis Castle in Peterborough, Ont. (shown here), have found growth in the power tool category.

According to the U.S. study, nearly a quarter of customers there decide where to buy their circular saws, cordless drills and other similar products based on where they happen to be shopping for other items already. The results revealed that two-thirds of power tool shoppers are men shopping by themselves. And 60% of consumers make their final power tool purchasing decision based on price.

The study was not in any way skewed in favour of consumers with traditional shopping habits. The TraQline survey drew from a base of heavy online shoppers. More than half of the respondents are members of Amazon Prime, an annual subscription service that provides free shipping options and other members-only benefits. However, the data show that only 7% of consumer power tool spending goes to Amazon.

At TIMBER MART, Kurtis Norlen has been promoted to the role of national procurement manager for the buying group. He was previously building material procurement manager for Western Canada. Norlen will assume responsibilities additional to his current ones during TIMBER MART’s program negotiations. A six-year veteran of the company, he will continue to work from TIMBER MART’s Calgary head office.

Sylvie Pinsonneault will retire as Eastern Canada regional manager for Rockwool at year’s end. Pinsonneault joined the company in 2007 as a retail sales rep and was promoted through successive positions. With her departure, Allan Selway will be promoted to Quebec-Atlantic regional manager, residential and commercial. He has been senior sales representative, residential and commercial, since last year. Sarah Southwick, currently key account manager, will take over the responsibilities of Ontario regional manager. Reporting to her will be Emma Smetaniuk, who has joined Rockwool as Ontario sales representative, residential and commercial.

And from our team, Katherine Yager has left Hardlines after nearly six years with the company. In her absence, for anything relating to Hardlines business overall, please contact Michael McLarney. David Chestnut will handle all advertising and Michelle Porter will be taking care of administration, orders and subscription-related queries. We wish Katherine well in her new ventures and thank her for her many years of service!

…that the 23rd annual Hardlines Conference was an amazing success? If you were in Niagara-on-the-Lake, Ont., this past week, then you certainly did know that! But for those of you who missed it, watch for our reports on the conference in the pages of Hardlines—and don’t miss out next year. Mark your calendars now for November 12 and 13, 2019!

BOUCHERVILLE, Que. — Quincaillerie Mario Gélineau in St-Hubert, Que., is the latest independent to join Groupe BMR’s dealer network. Stéphane Baril and his spouse, Annie-Claude Hamelin, have decided to change their banner after 30 years in business. Baril acquired his retired partner Mario Gélineau’s equity on the latter’s retirement, and so the store will be renamed Quincaillerie Stéphane Baril. It will display the BMR Express banner, a smaller-store format combining must-have inventory with customized services.

ST. JACOBS, Ont. — Home Hardware has opened a second location in the St. John’s market in Newfoundland. Craig Smith and Home Hardware Chairman Christine Hand, who also owns the banner’s store in nearby Conception Bay, are the co-owners of Home Hardware Torbay Road. “We are excited to open the new store in an area that has been lacking a neighbourhood hardware store for the last few years,” said Smith. The 19,000-square-foot store held its grand opening this past Friday.

ATLANTA — The Home Depot has reported Q3 sales of $26.3 billion, a 5.1% increase from the same period last year. Comparable sales for the quarter rose by 4.8%. Net earnings were $2.9 billion, or $2.51 per diluted share, compared with net earnings of $2.2 billion, or $1.84 per diluted share, in Q3 of 2017. Diluted EPS increased by 36.4% from a year ago.

BENTONVILLE, Ark. ― Walmart’s total revenue was up 1.4% in Q3 to $124.9 billion. Comparable sales in the U.S. rose 3.4%, with traffic up 1.2% and ticket 2.2% higher. Comparable sales were up 3.2% for the Sam’s Club business on a 6.2% jump in traffic.

BURLINGTON, Ont. — Ikea Canada’s sales reached $2.39 billion for fiscal 2018, an increase of 8% on the previous year. Traffic on Ikea.ca swelled to 104 million customers, contributing to $241.5 million in e-commerce sales, an increase of
18.8%. The retailer grew to 14 stores across Canada in the past year, with major openings in Quebec City and Halifax drawing crowds. In-store traffic rose by 6.9% to 30 million customers.

CORRECTION: In last week’s issue, we inadvertently identified Lowe’s head office as being in Atlanta, Ga. It’s in fact in Mooresville, N.C.

SUPPLIER NEWS

BURNABY, B.C. — At Taiga Building Products, Q3 profits declined to $5.6 million from $6 million a year ago, primarily due to decreased gross margin dollars, which in turn were attributed to falling commodity prices. On a per-share basis, net earnings came to $0.05. Sales for the quarter rose to $399.6 million from $396.6 million in Q3 of 2017.

VANCOUVER — Third-quarter sales for CanWel Building Materials rose 10.5% to $350.2 million, compared to $316.8 million a year ago. Sales increased in part due to the inclusion of the results from the Honsador Building Products Group acquisition. Net earnings declined to $8.5 million from the $11.6 million posted in Q3 of 2017. The quarter saw the opening of CanWel’s custom-built distribution centre on a 20-acre site in Acton, Ont.

TORONTO ―The Hillman Group, Inc. will relocate its Canadian national distribution centre and head office to a newly designed, 400,000 square foot facility in the Metro East Business Park, at 1395 Tapscott Road in Toronto. The move is part of a wider restructuring that also includes a move in Edmonton to a new and expanded Western regional hub to serve the Canadian fastener and hardware market, says Hillman Canada President Scott Ride. The new Toronto facility is near completion and will consolidate seven operations around the Greater Toronto Area. Starting in early 2019, a phased move of the company’s $200-plus million Canadian business will begin in the Tapscott Road location.

DRUMMONDVILLE, Que. — In a surprise move, toolbox manufacturer SPG International has closed its doors after being granted bankruptcy protection. The company’s Asian-based shareholders had tried without success to find a buyer. Court-appointed trustee Deloitte Restructuring said the closure will mean the loss of about 100 jobs. An asset sale is under way, and SPG still has the opportunity to strike a deal with creditors to avert bankruptcy.

ENGLEWOOD, Colo. — Bona U.S., the hardwood floor products company, has moved into a 74,209-square-foot building in Englewood, Colo., that will serve as its new North American headquarters.

ECONOMIC INDICATORS

Sales of existing Canadian homes edged back by 1.6% in October. While activity is still stronger compared to the first half of 2018, it remains below monthly levels recorded from early 2014 through 2017. Actual (not seasonally adjusted) activity was down 3.7% compared to October 2017 and in line with the 10-year average for the month. Lower sales in Greater Vancouver and the Fraser Valley more than offset the rise in sales in the Greater Toronto Area and Montreal by a wide margin. (Canadian Real Estate Association)

U.S. retail sales logged their biggest increase in five months, according to the latest U.S. Commerce Department data. Sales edged up by 0.8% after a 0.1% slip in September, as several areas in the South Atlantic region contended with Hurricane Florence. August and September had marked the first back-to-back declines in five years. Gasoline and automotive categories drove the growth in October. (U.S. Commerce Dept.)

NOTED

Even though Black Friday and Cyber Monday are still relatively new to Canadians, bargain hunters will be looking this weekend for deals in every kind of category. But electronics remain at the top of the list. According to a recent survey from savings destination RetailMeNot.ca, almost one-third of Canadians plan on buying large and small electronics this Black Friday and Cyber Monday, and will spend $3,300 on average.

“Groupe BMR has a business model based on independent dealers just like us, which can be adapted to match our reality as a neighborhood hardware store.”
―Stéphane Baril, who, with his wife Annie-Claude Hamelin, has joined Groupe BMR and taken on the BMR Express banner.

BOUCHERVILLE, Que. ― Lowe’s Canada intends to close a total of 27 “under-performing” stores across the country. It will also close its giant regional support centre in Mississauga, Ont., another RSC in St. John’s, its truss plant in the same market and a block plant in Kamloops, B.C.

The closing of the Mississauga regional office (shown here) will take place sometime in 2019. “Having our operations under one roof will allow us to improve collaboration between our banners to better serve our customers,” said Sylvain Prud’homme, president and CEO of Lowe’s Canada.

The Canadian consolidation is scheduled to occur by the end of January, which corresponds with Lowe’s year end. “The decision to close stores is never one that we make lightly,” Prud’homme said. “However, following a detailed business review, we believe that this is the right path for the organization’s future.” He added that the company will support employees impacted by the decision, “including by transferring eligible employees to other locations within our network whenever possible.”

RONA’s four corporate stores in Newfoundland and Labrador will be part of the closings. Along with the closing of the RSC and truss plant in St. John’s, for a total of six locations, this will mean the exit of RONA’s corporate presence from that province. These locations are all part of the former Chester Dawe chain, a major independent in on the Avalon Peninsula, which was purchased by RONA in 2006.

RONA still has an affiliate dealer in Fortune and another in Wabush, near Labrador City. Both remain open, unaffected by the corporate closures.

While most of the Canadian closings are of RONA stores, Lowe’s big boxes are also on the list: one in Centerpoint Mall in the north end of Toronto, and another in Sault Ste. Marie, Ont. Lowe’s Canada states that all the closings represent about 3% of its Canadian corporate store network.

The Canadian consolidation is part of a larger effort by Lowe’s in Mooresville, NC to trim operations. The company intends to close another 20 stores state-side, also by the end of January.

To facilitate an orderly wind-down, the company intends to conduct store closing sales for most of the impacted locations, including all the Canadian sites. In the U.S., some stores will be closed immediately. For these sites, Lowe’s has partnered with Hilco Merchant Services to help manage the process.

(Click here to see a complete list of Lowe’s Canada closings in Canada.)

HAWKESBURY, Ont. — The Eastern Ontario town of Hawkesbury will be the site of the first Ontario store for the independent retailer, Canac.

The store will be the home improvement banner’s first outside Quebec. It will be part of an overall plan by the town to convert a former Amoco oil plant. The $71 million development project includes an expansion of the existing shopping centre on the site. However, Canac has plans for further expansion in Quebec before that happens.

Jean Laberge, president of Canac, and its parent company Groupe Laberge, has confirmed with Hardlines that the land has been purchased, but adds that development of the site is not likely to begin until late in 2019, and may even be delayed until 2020.

Canac is the dominant player in the Quebec City market, with 12 stores there. Over the past decade, the retailer has been expanding steadily southward, in locations such as Victoriaville and Drummondville, and its 27th store, in Thetford Mines, which opened last May.

Most recently, it has been establishing itself in the Montreal market. It started on the South Shore, expanding east from St-Hubert as far as Sherbrooke. The next store (shown here)—its 29th—is scheduled to open in Notre-Dame-des-Prairies in the spring of 2019. It will be Canac’s first location in the province’s Lanaudière region. The 41,000-square-foot outlet includes 26,000 square feet of retail, including a designated service area for contractors, as well as a 31,500-square-foot covered drive-through lumber warehouse.

Canac has even translated its website and flyers into English in anticipation of opening in an Anglophone market. But for now, Laberge says, the company’s focus remains on Quebec, at a pace of about two stores a year. Each store costs up to $6 million and employs 90 staff.

NATIONAL REPORT — Canada’s geography has always presented a challenge when it comes to distribution. But there are several companies—both homegrown and international—that have found ways to make hardware distribution work for them here.

“Effective distribution and delivery is vital to our strategy,” says John Dyksterhuis, vice-president of distribution for Home Hardware Stores Ltd. “Supplying our stores the products they need in a timely manner is critical to both our dealers and their customers.”

Taiga Building Supplies, the wholesale LBM distributor based in Burnaby, B.C., has also upgraded several of its procedures to respond to changes in the marketplace. About six years ago, it updated its ERP (enterprise resource planning) system. Taiga is also working on its warehouse management system to create tighter control. Finally, a year ago, it implemented a new customer relationship management program.

“Our new customer relationship management tool tracks everything from birthdays to buying trends and it allows our sales people to compare trends,” says Graham Hoover. “And it gives us good insight into what we’re not doing with our customers.”

“Just having what a customer wants is not enough if you cannot get their orders processed and delivered on-time,” says Bret Walters, from Orgill’s operations team in London, Ont. The Memphis-based hardware wholesaler ships to Canadian independents from the London DC and from a facility in Post Falls, Idaho.

“We’re always looking for ways to do things better and more efficiently. Innovation has always characterized Orgill’s methods of stocking and shipping merchandise.”

Recently, Orgill made improvements to its website that make managing and placing orders more efficient for its customers. Walters says this greatly improves order accuracy and efficiency. “The goal is always on customer service and keeping orders accurate,” he adds.

(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)

TORONTO ― Home Depot Canada offered insiders a sneak preview of the products and trends it’s rolling out for the holiday season. At a recent open house in Toronto, merchants were on hand to explain the latest assortments that are appearing in Home Depot stores in time for Christmas.

Mark Beaty, who has recently been promoted to the senior merchant role for seasonal−live goods, talked about the development of Home Depot’s floral collections, which have evolved from simple $20 arrangements to sophisticated presentations that have designer influences in their colour choices and vases. This year, he pointed out, the fashion is trending to more natural looks that rely on less elaborate arrangements while providing rich combinations. The ones he showed have a comparably higher price point, at $99.

Dara Greenberg, senior merchant for seasonal−indoor, including decorative holiday, showed off the latest holiday decorations. For example, unicorns are now being sold alongside snowmen and reindeer as seasonal icons. “They’re really on trend now,” Greenberg said.

Other trends for the season are reflected in the designer colours. “Navy is this year’s colour,” she added, and it’s showing up on everything from tree trimmings to tabletop décor.

As in years past, technology plays an important role in driving sales. That includes an outdoor snowman who continuously tips his hat and a Christmas tree whose plush toy decorations begin dancing to recorded music at the click of a remote—and sells for $1,000.

Charles David Thomassin is leaving his post as manager of advertising and sponsorship sales for the Quebec home improvement association, AQMAT. He is taking on a new role with Manulift, a maker of telescopic boom cranes based in the Quebec City area.

…that dealers and suppliers from all over Canada are gathering in Niagara-on-the-Lake, Ont., over the next few days for 23rd annual Hardlines Conference? There’s still time for you to become part of the buzz! Click here for tickets!

TORONTO — Canadian Tire has turned in a strong third quarter, with the Canadian Tire Retail business enjoying a retail sales rise of 2.4%. Comp sales for CTR increased 2.2%. Consolidated retail sales across the entire company were up 4.4% in the third quarter. Excluding Petroleum, consolidated retail sales were up 2.6% over the same period last year. Consolidated comparable sales rose 2.5%.

SASKATOON — Federated Co-operatives Ltd. has launched a line of holiday-inspired gift cards to support local emergency relief efforts in communities across Western Canada. Through the Co-op Give Card Campaign, FCL’s Co-op stores will donate $1 from the sale of specially-marked gift cards to the Canadian Red Cross, up to a maximum of $250,000. The campaign is part of a new five-year commitment to donate up to $1.5 million for community-based emergency response efforts.

SEATTLE — Amazon Canada has rolled out its annual Countdown to Black Friday Deals Store, officially marking the start of its holiday shopping season. Savings on select Black & Decker corded outdoor power tools feature among the deals offered during the Countdown. In Toronto and Vancouver, Amazon is offering Amazon Lockers to customers who want to pick up purchases at their leisure. These pick-up points are located near select Whole Foods Market stores, offices, major convenience stores, grocery stores, apartment buildings and malls.

SUPPLIER NEWS

DUBLIN — Allegion, through its Schlage brand, has teamed up with Amazon to offer a range of smart home products. As part of that partnership Schlage has introduced the Schlage Connect Smart Deadbolt, Zigbee-certified with Amazon Key compatibility. The new lock is now available as part of the Amazon Key Smart Lock Kit. The deadbolt’s integration of Zigbee protocol allows customers to lock their doors while away from home via the Amazon Key app when paired to the Amazon Cloud Cam. Customers will be able to receive real-time notifications, live streams and recorded clips to control and monitor guest access and optional in-home delivery remotely.

TORONTO — IKO Industries Ltd. has concluded a deal to acquire the operations of Roof Tile Group from New Zealand-based manufacturer and builder Fletcher Building Ltd. Roof Tile Group manufactures metal roofing tiles for global sales and distribution under a number of brand names, including Decra and Gerard. The purchase will expand IKO’s global reach to production sites in New Zealand, Hungary, Malaysia and the U.S. Terms of the deal were not disclosed.

VANCOUVER — Acadian Timber reported net sales of $26.6 million in Q3, down from $27.2 million last year. Net income totalled $5.9 million, or $0.36 per share, compared to $9.7 million ($0.58 per share) in Q3 of 2017. The company said it benefited from favourable operating conditions and strong seasonal demand, but harvesting schedules drove down log sales volumes by 11%.

ECONOMIC INDICATORS

Canadian municipalities issued $8.1 billion worth of building permits in September, up 0.4% from August. The national increase was driven by higher construction intentions in Quebec. In the residential sector, the value of building permits edged up 0.3% to $4.9 billion, posting the first increase in four months. Higher construction intentions for multi-family dwellings contributed to the rise. The value of building permits for single-family dwellings was down 1.2% to $2.2 billion in September, the fourth consecutive monthly decrease. (StatCan)

After strengthened activity in 2016 and 2017, housing starts in this country have been slowing through 2018. And that trend is forecast to continue into 2020, according to the latest housing report from CMHC. The report indicates that housing starts will slow down gradually over 2018 to 2020, moderating from the 10-year high recorded in 2017. However, for October, housing starts reached 205,925 units seasonally adjusted, up from 189,730 units in September. Urban starts increased by 8.6% and multiple urban starts increased by 16.8%. (CMHC)

The home remodelling boom in the U.S. may be set to come to an end. Expenditures on remodelling have benefitted from a funk in the housing market, which encouraged owners to renovate instead of selling. Now, inertia in the housing market means fewer prospective buyers, usually a significant source of home improvement spending, are out house hunting. Expenditures will continue to rise in 2019, but the pace of growth will slow from quarter to quarter. (MarketWatch)

NOTED

Management training for home improvement dealers: The North American Retail Hardware Association’s amazing Retail Management Certification program is being used by more and more Canadian dealer-owners to develop key managers on their teams. This is an in-depth six-month course that includes in-class study and case studies with peers. It’s like a mini-MBA for retail home improvement. Cost for the session, beginning January 2018, has been discounted to US$9,950 (regularly US$12,500). For more information, please contact me directly.

—Michael McLarney, Managing Director, NRHA Canada

MEMPHIS — Orgill has announced new responsibilities for members of its executive team beginning in the new year.

Ron Beal, Orgill’s long-time chairman, president and CEO, will drop the president title but continue in his other roles. Beal, who has been with the company for three decades, was first introduced to Canadian audiences when he spoke at the Hardlines Conference in 2008. At the time, he was vice president of merchandising for the hardware distributor. Back then, Orgill was focused on expanding across the U.S. and had yet to set its sights on the Canadian market. (Also presenting at the Hardlines Conference that year was Greg Wessling, senior vice president of another little-known U.S. company at the time, Lowe’s.―Editor)

Replacing Beal in the role of president is Boyden Moore, who currently serves as Orgill’s general manager of retail. He is also president of the company’s subsidiary, Tyndale Advisors, a management, consulting and marketing firm that provides a range of services to dealers including strategic management, store operations, finance, merchandising, marketing and human resources.

Brett Hammers will become Orgill’s EVP of worldwide sales and supply chain. Hammers will be responsible for all sales and product sourcing in support of Orgill’s U.S., Canadian and international customer base. He currently holds the COO title. CFO Eric Divelbiss will take on the additional role of EVP of finance and administration.

Under Beal’s leadership, the company began selling to Castle dealers in Canada at the end of 2010. That grew into a full-blown North American strategy for selling hardlines to independent dealers, which included the acquisition of Chalifour Canada in 2015. Canadian dealers are now serviced out of Chalifour’s former DC in London, Ont., and a facility in Post Falls, Idaho, which serves Western Canada.

TORONTO — Canadian Tire has expanded its e-commerce offerings with self-serve options in-store, as it battles to refine its presence as a mobile shopping destination.

The retailer has installed automated, 16-foot self-serve pick-up towers at four of its busiest stores across the country: in Vancouver, Calgary, Saskatoon and Toronto. It claims to be the first-ever Canadian retailer to use the concept. Customers at these locations can pick up their online purchases by scanning a QR code from their phones at the towers. The product is searched and delivered to the tower, all within a minute, the company claims.

The concept is being further rolled out at one of its Ottawa stores. There, self-serve lockers and automated check-in terminals are being tested. To use the check-in terminals, customers enter a unique PIN code on the in-store tablet, prompting store staff to bring their order directly to them. The aim of these new options is to reduce in-store pickup times.

Canadian Tire has been searching for ways to connect online effectively with its customers. With a network of 501 stores, and a boast that 90% of Canadians live within a 15-minute drive of one of its stores, Canadian Tire has a substantial bricks-and-mortar presence. But the road to becoming an effective online seller has had its share of obstacles, including delayed test programs and inadequate in-store fulfillment.

“We’re a test-and-learn culture and a big part of that is finding new ways to help our customers shop when they want and how they want,” says Greg Hicks, president of Canadian Tire Retail.

These new additions to Canadian Tire’s e-commerce offerings follow a recent rollout of nationwide ship-to-home, following a test in the Ottawa market, and the launch of Triangle Rewards, the company’s updated loyalty and credit card program.

MONTREAL — AQMAT, the Quebec association for the home improvement industry, has finalized the creation of a not-for-profit organization aimed at encouraging consumers to buy Canadian when shopping for hardware and building supplies.

Called Bien fait ici-Well Made Here, the federally chartered organization will promote awareness of products made in Canada. It will provide comprehensive information to consumers on local, quality products, where to buy them and where to get good trades to perform renovation work.

The qualified products will stand out from imported and low added-value products by providing technical information and promotional offers directed at both DIYers and contractors.

The group’s initial efforts over the first year will be focused in Quebec. By spring 2019, thousands of hardware products and building materials bearing the Bien fait ici-Well Made Here label will be listed at 2,500 hardware stores and home improvement centres in that province at Ace, BMR, Castle, Home Hardware, Lowe’s Canada, Patrick Morin, Reno-Depot, RONA, TIMBER MART and Unimat stores.

“When it comes to building materials and hardware products, homeowners want to use the best products on the market, provided that the price is justified,” says Richard Darveau, president and CEO of AQMAT, and founder of the project.

To give customers more understanding of the advantages of homegrown products, the program requires manufacturers to provide accurate information about their products’ Canadian characteristics, which must account for at least 51% of direct manufacturing costs. Authorization includes place of manufacture, origin of components, warranty and compliance to codes.

Darveau says that retailers can have their brand associated with the growing movement to buy local, offer sustainable products and support domestic employment.

BOUCHERVILLE, Que. — Lowe’s Canada has expanded the range of products sold under the Craftsman brand.

The selection of Craftsman products has been enhanced to include power tools, hand tools and a select assortment of outdoor power equipment such as snow throwers and leaf blowers. The strategy is to round out the lines in time for the holiday selling season.

“We have seen a lot of enthusiasm from our customers since we added the brand to our offering last June,” says Igor Halencak, EVP, central customer services at Lowe’s Canada. More products will be added over the coming months, he notes.

Lowe’s has been selling Craftsman in both Canada and the U.S. since it made a proprietary deal with Craftsman licensee Stanley Black & Decker. The giant hand and power tool maker made a deal with Sears, which owns the venerable Craftsman brand, to license it and pay royalties to Sears over the next 15 years.

The company expects the full range of Craftsman products to be available both in stores and online by the spring of 2019 at Lowe’s, RONA, Reno-Depot and Ace Canada. Once the roll-out is complete, Canadian DIYers and home improvement professionals will have access to hundreds of Craftsman items, including power and hand tools, storage products and outdoor power equipment.

Coast Distributors has added Will Dugger to its outside sales team. He will cover the Central British Columbia territory. Dugger spent 20 years with Sherwin-Williams in various management and sales positions, most notably as a sales representative working directly with some of the largest developers in the lower mainland. Most recently, he was with another distributor.

…that Hardlines will honour some of Canada’s top retailers and managers in home improvement at the upcoming Outstanding Retailer Awards Gala? Vendors and retailers alike will join us during our 23rd annual Hardlines Conference on November 13 in Niagara-on-the-Lake, Ont. Click here for tickets!

HAWKESBURY, Ont. — The Eastern Ontario town of Hawkesbury will be the site of the first Ontario store for the independent retailer, Canac, and the home improvement banner’s first location outside Quebec. It’s part of an overall plan by the town to re-purpose a former Amoco oil plant. The $71 million development project includes an expansion of the existing shopping centre on the site.

MISSISSAUGA, Ont. — Castle Building Centres’ newest member is Falls Hardware in Nestor Falls, Ont., located some 300 kilometres from Winnipeg in the Lake of the Woods region. The business was founded in 1955 by Alex Pope. His son Bill took over the store with his wife Nancy in 1978 and the pair have operated it ever since.

TORONTO — Global reputation research firm Reputation Institute has ranked Mountain Equipment Co-op and Canadian Tire as the nation’s corporate responsibility leaders. The 2018 CR RepTrak reflects public perceptions of corporate performance across three key dimensions of corporate reputation: citizenship, workplace and governance.

BOUCHERVILLE, Que. — Lowe’s Canada has managed to raise $1.1 million for local non-profit organizations and public schools nationally. Throughout September, every Lowe’s, RONA and Reno-Depot corporate store in the country collected donations to help the cause of their choice. The retailer matched 50% of all funds raised through the in-store campaign, up to a maximum of $2,000 per store. The funds are being donated to more than 260 community organizations.

BRENTWOOD, Tenn. — Tractor Supply Co. reported that net sales for the third quarter increased 9.3% to $1.88 billion from $1.72 billion a year ago. Comparable store sales increased 5.1%, as compared to an increase of 6.6% in the prior year’s third quarter. Net income rose by 27.1% to $116.8 million from $91.9 million.

SUPPLIER NEWS

LEVIS, Que. — Maibec Inc. has announced a new partnership agreement with Brunswick Valley Distribution, a division of Gillfor Distribution, for the distribution of its exterior
siding products in the Maritimes. Maibec has had a presence in the Maritimes for several years, including its Eastern White Cedar shingle plant in Balmoral, N.B. It will now count on the Brunswick Valley team to distribute its entire range of genuine and engineered wood siding products. The new partnership takes effect January 1.

DELSON, Que. — Goodfellow Inc. has announced a new alliance with Sherwin-Williams. Starting this fall, Goodfellow will use Sherwin-Williams finishes on its outdoor wood siding products across Canada. Goodfellow says the partnership will strengthen its position in high-end exterior siding products with an increased production capacity, a wide range of products and a large variety of specialized finishes.

NEW BRITAIN, Conn. — Stanley has announced that The Home Depot will now be the exclusive home improvement retailer for the Stanley hand tools and storage product portfolio, both in store and online, beginning in 2019. In addition, the retailer will gain exclusivity across the Stanley Fatmax product line.

CLEVELAND — The Sherwin-Williams Co. reported that net sales increased 5% in Q3 to $4.73 billion. Comparable sales at U.S. and Canadian stores increased 5.2%. The increase in the quarter was due primarily to higher paint sales volume in the Americas and Consumer Brands groups and selling price increases.

SAINT-JEAN-SUR-RICHELIEU, Que. — Soleno has begun construction of its new corporate headquarters. Soleno President Alain Poirier was accompanied at the first symbolic dig by Saint-Jean Mayor Alain Laplante; Judith-Ann Bélanger, VP of business development at Proservin; local councillors and members of the economic council. The two-storey facility covers 14,250 square feet and represents a $3 million investment, allowing the creation of eight new jobs.

SEATTLE — Weyerhaeuser Co. reported Q3 net earnings of $255 million, or $0.34 per diluted share, on net sales of $1.9 billion. The results compare with earnings of $130 million, or $0.17 per diluted share, on net sales of $1.9 billion for the same period last year. Excluding a special tax benefit of $41 million, the company reported net earnings of $214 million, or $0.28 per diluted share for the quarter.

ECONOMIC INDICATORS

Sales of new single‐family houses in the U.S. in September 2018 were at a rate of 553,000 seasonally adjusted. That rate is 5.5% below the revised August rate of 585,000 and 13.2% below last September’s estimate of 637,000. The median sales price of new houses sold in September 2018 was $320,000. The average sales price was $377,200. (U.S. Census Bureau)

WORLD HQ, Toronto — Top executives from BMR, Home Hardware, Lowe’s Canada, Spancan, Sexton Group and TIMBER MART have signed up for the upcoming Hardlines Conference. They’ll be joined by more independent retailers than ever this year, with key dealers from across Canada registered for the conference.

They’re all coming to learn and network with a world-class lineup of speakers sharing their insights and information, under the theme, “The Power of Brand”. The 23rd annual Hardlines Conference will be held November 13 and 14 at Queen’s Landing in Niagara-on-the-Lake, Ont.

To kick off the theme, one of Canada’s leading retail branding experts, Ian Madell, managing partner and president of LEVEL5 Strategy Group, will set the stage. For economic and housing insights, Peter Norman, vice president and chief economist of Altus Group, returns to the Hardlines podium to share his insights and forecasts.

Industry retail groups will be strongly represented, as well. They include:

• Darrin Noble, vice president and general manager of Home Hardware’s Beauti-Tone Paint and Home Products Division;
• Steve Buckle, president of Sexton Group, one of Canada’s largest buying groups for independent building materials dealers;

• Catherine Vaugh, brand building manager for Canada at Orgill, Inc.;

• Jillian Sexton of Hector Building Supplies in Nova Scotia and Sherwood TIMBER MART on Prince Edward Island;

• Russ Jones, owner of Coast Builders RONA on British Columbia’s Sunshine Coast.

For insights into the e-commerce side of the business, Robert Bigler, COO, eBay Canada, will explain the opportunities that vendors and retailers alike can exploit online.

Rounding out the conference will be presentations by two more individuals familiar to the Hardlines audience: Dan Tratensek, EVP and publisher, the North American Retail Hardware Association, and its publication, Hardware Retailing; and Anthony Stokan, partner with Anthony Russell and Associates, and a leading retail, shopping centre and consumer authority.

Some of Canada’s top retailers and managers in home improvement will be honoured during the Outstanding Retailer Awards Gala. This is a separately ticketed event that will close day one of conference.

The 23rd annual Hardlines Conference will be held at Queen’s Landing in historic Niagara-on-the-Lake, Ont., November 13 and 14. Click here to learn more and secure your seat and click here to buy your ticket for the ORA Gala Dinner!

SASKATOON — As Federated Co-operatives Ltd. enters its 10th decade, its CEO attributes the business’s longevity to the perennial appeal of its model. The co-op model “doesn’t appeal to everybody, but it appeals to some,” Scott Banda told the Saskatoon Star-Phoenix.

“And it appealed to enough people over our history that that local component of creating a virtuous circle—a business that’s local, generating profit and putting it back into local shareholders—I think has really been the difference.”

FCL traces its origins to the Saskatchewan Co-operative Wholesale Society, which started when co-ops in the province banded together in 1928. In 1944, it merged with the Consumers Co-operative Refinery in Regina and from there participated in further consolidation with networks in other provinces.

During its Fall Buymart last week, FCL hosted a conference for its senior managers. Calling it the Connected Conference, the co-op brought together some leading retail and trends speakers, including The Retail Prophet, Doug Stephens. The purpose was to expose the FCL team to next-level ideas and inspiration, says Cody Smith, home and building solutions director for FCL. A 15-year veteran of the company, Smith took over the director role back in May.

He adds that the company further celebrated its 90th a week earlier with a street fair right in front of its headquarters in downtown Saskatoon. There, Banda spoke to the gathered employees, who enjoyed a range of Co-op private-label products, one of the initiatives FCL is pushing this year, along with its “Made by Us” campaign to promote products made by small Canadian suppliers.

WOODSTOCK, Ont. — Gillfor Distribution is the newest wholesaler on the scene to expand to a national level. It’s doing that through acquisitions and shared best practices from across the four divisions that comprise this upstart distributor.

While the Gillfor name is relatively new, its component parts are not. Gillfor Distribution was created when OWL Distribution in Woodstock, Ont. (shown here), and McIlveen Lumber, an LBM wholesaler based in Calgary, merged just over a year ago. Since then, the company has added Brown & Rutherford in Winnipeg and Brunswick Valley Distribution, based in Fredericton.

Now, the organization of the sales and customer service teams is being drawn from OWL Distribution’s model.

According to Mike Schneider, VP business development for Gillfor, the OWL business model relies on a lower ratio of accounts to each account manager. Typically, he says, each account manager could have up to 100 accounts. Under the OWL model, that’s being reduced to 20 to 30. But it won’t be a quick transition. That process took about four years to take effect at OWL. He expects to roll it out company-wide over the next two to three years.

By refining Gillfor’s assortments to just nine core product lines, Schneider expects customer service levels to increase. And from the Woodstock national office, “We’ll be centrally supporting our account managers across the country with admin, design, tech and product management,” he points out.

SEATTLE — Amazon has invested in Plant Prefab, a California-based company that builds prefabricated houses using sustainable construction methods and materials.

The investment was made through Amazon’s Alexa Fund, its $100 million venture capital funding division that invests in voice technology innovation.

Plant Prefab aims to build homes quickly and lower the cost of home construction by using automated construction practices. The houses would be outfitted with smart home technology.

Amazon already sells pre-fab homes online made from shipping containers. The 320-square-foot houses cost $36,000 and come fully outfitted with plumbing, electrical and furnishings.

Amazon’s newest investment in prefabricated homes aligns with its continued efforts to become a leader in smart home technology. In September, the company released more than a dozen smart home devices powered by Alexa, Amazon’s voice assistant. Earlier this year, Amazon purchased video doorbell maker Ring for $1 billion.

The smart home market is reportedly poised for growth and research suggests the market could be valued at $53 billion by 2022.

Nite Ize Inc. has appointed Shelton Sylvestre as key accounts manager for Canada, reporting to Rick Smith, director of sales. Shelton has 20-plus years of sales experience in the Canadian and international markets, most recently as VP of sales at The Priority Group. (ssylvestre@niteize.com)

…that Hardlines will honour some of Canada’s top retailers and managers in home improvement at the upcoming Outstanding Retailer Awards Gala? The event will close day one of our 23rd annual Hardlines Conference on November 13 in Niagara-on-the-Lake, Ont. The ORA Gala is open to suppliers and retailers alike. We invite you to join your colleagues to celebrate the best of the best. Click here for tickets!

BOUCHERVILLE, Que. — Lowe’s Canada has opened its 68th store under the Lowe’s banner, and its second in Windsor, Ont. It represents an investment of more than $21.6 million and the creation of 75 new permanent jobs, as well as 80 seasonal roles. “The response to our Lowe’s offering in the greater Windsor area is excellent and we are thrilled to bring Lowe’s exciting shopping experience to even more customers in the region,” said Guy Beaumier, EVP of Lowe’s Big Box Retail. The store comprises 117,600 square feet, including 93,800 square feet of retail sales space and a 23,800-square-foot adjacent garden centre.

HOFFMAN ESTATES, Ill. — Sears Holdings chairman Eddie Lampert is in talks with investment firm Cyrus Capital Partners about financing part of a $300 million bankruptcy loan, sources have told Reuters. Cyrus currently holds a portion of Sears’ debt. The loan is separate from another $300 million loan the company’s banks have offered. According to the sources, Lampert is also being urged to replace the bank loan with his own funds, which would leave him potentially contributing to bankruptcy loans of $600 million in total.

SUPPLIER NEWS

BARRIE, Ont. ― Jacobs & Thompson, with its Polar Bear Products brand, has partnered with J.L. Gagliardi & Associates as its agency to rep the company’s lines of weather stripping products, floor protection felt, housewares, eavestrough foams and Wateraft products in Quebec, the Maritimes and Eastern Ontario. J.L. Gagliardi & Associates has been serving the hardware and housewares industry since 1978.

LONGUEUIL, Que. — AQMAT head Richard Darveau has written to incoming Quebec Economy Minister Pierre Fitzgibbon on behalf of the association’s members. Expressing his eagerness to work with the minister for the advancement of Quebec’s economy, Darveau cited concrete concerns of the industry. Among them are the projected end to financial aid for home renovation projects like the RénoVert tax credit, the circulation of counterfeit products and pay delays for construction workers.

VANCOUVER — West Fraser Timber Co. reported Q3 earnings of $238 million on sales of $1.65 million, compared with $1.25 million in sales and earnings of $120 million for the same period in 2017. The lumber segment generated operating earnings of $233 million, after posting $358 million in Q2. During the quarter, West Fraser bought back 3.5 million shares for $301 million and commenced operations at its new Opelika, Ala., sawmill.

MAPLEWOOD, Minn. — 3M Co. announced earnings of $2.58 per share on revenues of $8.15 billion in Q3. The results missed analysts’ expectations of $2.72 on $8.45 billion, and marked a 0.2% decline from those posted a year ago. In the previous quarter, the company had reported EPS of $2.59 on revenue of $8.39 billion. Total sales in Canada and Latin America rose 5.5% in Q3.

Investment in August in new housing construction decreased 2.2% from the same month last year, the first year-over-year decline since May 2014. The decrease in August was attributable to lower spending on single homes, semi-detached homes and row houses. Investment declined in five provinces, with Ontario, Alberta and Saskatchewan reporting the largest drops, due mainly to lower investment in single homes. British Columbia reported the strongest growth, thanks to increased spending on apartment building construction. In the East, Nova Scotia and Prince Edward Island were both up. —StatCan

Retail sales declined 0.1% to $50.8 billion in August, following a 0.2% increase in July. Sales were down in seven of 11 sub-sectors in August, representing 52% of retail trade. Sales at building material and garden equipment and supplies dealers edged down 1.1%, the second consecutive monthly decline. Excluding motor vehicle and parts dealers, retail sales declined 0.4%. —StatCan

You may have noticed a new look to the Hardlines newsletter, starting last week. We’ve made it more responsive and easier to read than ever before. It’s just one part of a bigger upgrade of our presence online, which will increase our accessibility for you, our Faithful Subscribers!

The Hardlines Team is not going anywhere for the next couple of weeks. Nowhere! We are hunkering down in preparation for the 23rd Annual Hardlines Conference, November 13 and 14 at the Queen’s Landing in Niagara-on-the-Lake, Ont. We hope to see you there!