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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SUPPLIER NEWS

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

ECONOMIC INDICATORS

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

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

NOTED

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

OVERHEARD

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SUPPLIER NEWS

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

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

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

ECONOMIC INDICATORS

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

NOTED

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

OVERHEARD

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SUPPLIER NEWS

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

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

ECONOMIC INDICATORS

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

OVERHEARD

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

OUT & ABOUT

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

WORLD HQ, Toronto ― The Hardlines 24th Annual Conference is shaping up to be one of the best yet. The two-day event, which is this industry’s only national-level conference, will take place November 13 and 14 at the Kingbridge Conference Centre and Hotel in King City, Ont., just 30 minutes away from Toronto Pearson Airport.

Featuring the theme, “It’s All About the Experience”, this year’s location and agenda both reflect that theme with a powerful speaker lineup set in an extraordinary executive resort nestled alongside the scenic Humber River.

This year’s lineup of retail leaders and home improvement experts includes Tanbir Grover, vice president of e-commerce and omnichannel for Lowe’s Canada. Grover will provide an in-depth look at how Lowe’s Canada has integrated the online and bricks-and-mortar sides of its business and what’s next following a new corporate website launch.

From the front lines of home improvement retailing, some leading independent dealers will tell their stories. From Newfoundland, Christine Hand, a Home Hardware dealer-owner and chair of the company’s board, will share her story and insights. From Brooklyn, N.Y., Joe Franquinha of Crest Hardware will explain how he has made his store a memorable destination in his eclectic urban neighbourhood.

Economist Peter Norman of Altus Group will return to the Hardlines stage by popular demand. He will provide his own unique analysis of Canada’s housing and renovation markets. Dan Tratensek of the North American Retail Hardware Association (NRHA) will offer a topline look at some of the association’s most recent dealer research.

But the experience doesn’t end when the presentations are over. Be sure to book a room at the Kingbridge Centre and stay for the duration to make the most of this location’s beautiful grounds and facilities. The centre will also serve as the location for this year’s Outstanding Retailer Awards and our annual pub night kick-off on the evening of November 12.

For more information and to register, visit www.hardlinesconference.ca. And be sure to check back as we finalize this year’s lineup and start selling tickets for the Gala dinner. The Hardlines team is working to make this year’s conference one you cannot miss!

OTTAWA ― Despite one broken promise, to balance the federal budget by 2019, the Liberal government did offer some measures in last week’s budget that would positively affect home improvement dealers. The most important one is new guidelines concerning home ownership. First-time home buyers will be able to get a shared equity mortgage through CMHC to finance part of their purchase.

The government would pick up part of the cost of a mortgage for eligible Canadians―up to 5% of the cost of a mortgage on an existing home purchase and 10% on a new home build.

In addition, the limit that home buyers can draw from their RRSPs has been increased by $10,000 to $35,000. That program, according to the budget document, is targeted at Canadians who “face legitimate challenges entering housing markets.” While restricted to first-time home buyers, it would also be opened up to individuals coming out of a marriage breakup or common-law relationship. The program is expected to cost $1.25 billion over the next three years.

Minister of Finance Bill Morneau told reporters that he doesn’t expect the budget measures to cause a spike in housing prices. “We’re recognizing that it is challenging for people in the housing market. It’s a real issue, but what we’ve done is we’ve carefully looked at what’s the best way to deal with that issue.”

The government has plans for other ways to increase housing supply―and make housing more affordable. These include establishing a national expert panel on housing supply and affordability, and providing additional funds for an existing program that supports the construction of new rental units. The budget also provides $300 million for a contest for cities to develop innovative ways to expand their housing stock.

Other measures presented by Morneau included job- and career-related initiatives. A new Canada Training Credit will provide up to $250 per year for workers to apply to training. Dealers could also benefit from the injection of $2 billion of local infrastructure spending to local municipalities.

VANCOUVER ― CanWel Building Materials Group Ltd. is open to further acquisitions, says the company’s CEO, Amar Doman.

In a call to analysts following the recent release of CanWel’s annual results, Doman indicated that he would not slow down in his pursuit of companies to purchase. He would remain on the lookout for opportunities, “when they come up and they fit our model, strategically and value wise,” he said. He further noted that CanWel had successfully raised a war chest of $60 million last fall “to do strategic acquisitions at will.”

CanWel’s most recent acquisition was Honsadar Building Products Group, a U.S. building materials distributor that serves residential and light commercial builders with framing lumber and plywood, appliances, cabinetry, doors, drywall and accessories, exterior finish systems, fasteners, vinyl and composite fencing and windows. The business has seven locations in Hawaii. That deal, worth $100 million, was completed in the latter half of 2017 and the positive impact of that company’s sales boosted CanWel’s latest year-end results.

BRAMPTON, Ont. — Square Deal, a regional wholesaler based in Southern Ontario, has been steadily building its business over the past couple of years.

Todd Schoular, owner of the company, has just brought on a new team member, Matthew Strong-Clarke, as buyer and new product development manager. He will manage Square Deal’s expansion in Atlantic Canada, as well as covering Northern Ontario. Strong-Clarke has a solid background in retail, going back to Central Supply in Nova Scotia and including TSC Stores, Lowe’s Canada, Orgill and, most recently, Turkstra Lumber in Southwestern Ontario.

Both men were at the recent ABSDA Buying Expo in Halifax.

Square Deal, formed in 1994, is a family-owned business carrying a range of lines, including Garant, Olfa, Bosch, Pintar, Arrow and Cantech. Schoular notes that his company now has eight people on the road, and the growth in personnel reflects the addition of new lines and ambitions to expand the private wholesaler’s geographic reach.

While the focus at shows like the one in Halifax is connecting with independents, Schoular says he will start soliciting the buying groups in earnest in the near future. “Their members want options again,” he notes.

Square Deal also has a relationship with another regional wholesaler, Coast Distributors, based in Nanaimo, B.C. Schoular says the two companies share ideas and products, currently on an informal basis.

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

AIR RONGE, Sask. — Ace Canada has welcomed Kushal Parikh as the new owner of the Air Ronge, Sask., Ace store. Under its new management, the 14,000-square-foot store will broaden its product mix over the next few months. “Ace Air Ronge is a well-established business, focused on meeting the needs of local northern communities and offering quality products and excellent customer service,” said Parikh.

SEATTLE — Amazon will close its 87 physical pop-up stores in April. The pop-ups, located in Whole Foods and Kohl’s, as well as malls across the U.S., allow shoppers to try out Amazon products like Kindle e-readers and services such as Prime Video. At the same time, the online giant is planning to expand its Amazon 4 Star stores, which feature products from the site with a rating of four or more stars. The company is also adding more Amazon Books stores and dozens of new grocery stores.

SUPPLIER NEWS

WASHINGTON — The U.S. Environmental Protection Agency has issued a ban on retail sales of methylene chloride, a common paint stripping ingredient, for household use. Expected to go into effect in November, the ban does not affect industrial or commercial use of methylene chloride. Anticipating the move motivated the development of New Generation Stripper by Super Remover, a paint stripper free of the chemical. Granby, Quebec-based Distribution J. Des Serres teamed up with researchers at the University of Massachusetts Lowell to develop the formula.

SCARBOROUGH, Ont. ― The Canadian Hardware and Housewares Manufacturers Association (CHHMA) will hold its annual meeting and conference next week, April 2, at the Mississauga Convention Centre, 75 Derry Rd. W., Mississauga, Ont. Presenters include economist Brian DePratto, sportscaster Joe Bowen and Janice Gross Stein, a political expert who will talk about the driving forces behind the new technical revolution. The 2019 Industry Hall of Fame inductions will be held during lunch. This year’s inductees are: Terry Davis, Home Hardware Stores; Solly Feldman, Accent Fairchild; Dennis Nykoliation, Black & Decker Canada, CanWel and GSW. (For more information and to register, click here.)

MONTREAL — Sika will acquire King Packaged Materials Co., maker of shotcrete, grouts and mortars for the construction, mining and home improvement industries. King operates a facility in Sudbury that includes offices, a fabrication shop and an equipment shop. Other Ontario locations are in Brantford, Burlington and Oakville, while the company also has operations in Boisbriand, Que., and Allentown, Pa.

TORONTO ― Dx3, Canada’s biggest retail, innovation and technology event took place in Toronto earlier this month. Thousands of retailers and marketers flooded the Metro Toronto Convention Centre to learn from the top retail brands such as IKEA, Indigo, McDonalds, LCBO, Snapchat and Tim Hortons. With an emphasis on digital marketing and innovation, attendees learned what the future holds for retailers and their marketing teams. One message was that the old bricks-versus-clicks debate is over. Rather, it’s now about integrating both and assisting the consumer in making an informed decision―both online and off. That person wants a seamless interaction between all the steps of their purchase.

NEENAH, Wis. — Bemis Co. and Amcor Ltd. announced that progress toward their merger has been made with the filing of shareholder documentation and finalization of appointments to the board of directors and senior leadership. The all-stock transaction has the backing of both companies’ boards. Amcor’s acquisition of Bemis was first announced last August, but hit delays due to the U.S. federal government shutdown in January.

NOTED

We’re still getting a lot of mail sent to our old address. Please note the Hardlines World Headquarters has a (relatively) new address:

330 Bay St., Suite 1400
Toronto, ON, M5H 2S8.

OVERHEARD

“Be honest and do the right thing, no matter what the consequences. Work hard but work smart. Treat people the way you want to be treated yourself.”
—Duncan Wilson, director of business development for Home Hardware Stores Ltd. He spoke during the recent ABSDA industry gala dinner, where he was honoured with the association’s Lifetime Achievement Award.

HALIFAX ― Members of the retail home improvement industry from across Atlantic Canada headed to Halifax last week for the ABSDA Building Supply Expo, the annual buying show hosted by the Atlantic Building Supply Dealers Association. The event kicked off on March 12 with a meet-and-greet reception that hosted dealers and vendors alike.

The show was held in the Halifax Convention Centre, right downtown, with show hotels conveniently located just minutes away, reducing time and costs to get to and from the venue. It featured 76 exhibitors representing about 100 companies. From the retail side, it attracted dealers of all stripes, including a strong showing of Castle dealers and Home Hardware members, and, to a lesser degree, TIMBER MART dealers. Sexton Group, which is now growing its membership more aggressively in the Atlantic region, also reported a healthy turnout by its members there.

Exhibitors overall gave positive feedback on the show, saying they met with enough customers during the two days to make their involvement worthwhile. Individuals at the Sexton Group reported that they were experiencing “a good vibe” among the dealers, while TIMBER MART managed to develop some strong leads on the show floor.

KM Agencies was one of the companies that occupied a room of their own adjacent to the show floor. Representing six companies there, the Atlantic agency enjoyed good response from dealers, says KM President Peter Merrill. “Overall, we wrote a lot of business—and that’s the name of the game.”

SASKATOON ― For Federated Co-operatives Ltd., its latest fiscal year didn’t just turn out a healthy balance sheet. The company racked up a series of accomplishments in other areas, as well, not the least of which was the celebration of 90 years in existence.

The co-op, which reported $10.7 billion in overall sales and profits of $1.2 billion for the fiscal year ended October 31, 2018, undertook or completed a number of initiatives directed at improving its retail business and supporting local communities.

Cody Smith, director of home and building solutions at FCL, which oversees the company’s home centre business, is enthusiastic about the milestones. “We really connected last year with the farm and ag customer more than we had in the past,” he says.

In support of those affected by the Humboldt Broncos tragedy, the SJHL Assistance Program was established to raise funds for mental health assistance, counselling and grieving. Together with Co-op members and customers, FCL donated more than $768,000 to the program. And the Retail Council of Canada recognized those achievements with its Excellence in Retailing Award: Philanthropic Leadership (Co-op Community Spaces).

A new website, “Ask Co-op”, was launched with a library of videos featuring expert advice from the Co-op team.

In addition, Cody says, FCL continued to grow its range of house brands, which now number 380 products for the hardware and building materials side of the business. The “Made by Us” campaign, a program launched in 2017 to promote Canadian-made products, featured the company’s Imagine brand of paint and was expanded to showcase six more premium products last year. These included paint applicators under the Imagine brand and made by Bennett Tools, a family business in Concord, Ont. Other lines included long-handled tools, bird seed and some automotive products.

“It was a huge win for our house brands and a lot of big categories were launched,” says Cody.

MONTREAL ― The seventh annual AQMAT Recognition Gala gathered industry players at Montreal’s Fairmont Queen Elizabeth Hotel for an evening of hospitality recently. There, outstanding companies and individuals were recognized in categories ranging from loyalty to social involvement.

This was the first edition of the gala to take place in Montreal, after its numbers exceeded 500, outgrowing the Fairmont Chateau Frontenac in Quebec City.

After a cocktail reception, journalist and documentarian Karima Brikh took the stage as MC. Attendees enjoyed live music over a four-course dinner as their tweets of the event streamed on-screen, and the dance floor stayed open until 1 a.m.

Richard Darveau, the organization’s president, gave an impassioned address to the gathered crowd rallying support for Quebec manufacturers. In that vein, he presented a preview of the marketing campaign for AQMAT’s “Well Made Here” initiative. The short video clip will go live in mid-April, and the campaign will also be highlighted at Hardlines’ own Meet the Buyers Breakfast event in Boucherville, Que., on March 26.

Awards were presented for outstanding individuals and companies, with most categories sub-divided into merchant and supplier laureates. Lowe’s Canada’s banners and Home Hardware were both well represented, while BMR’s inaugural La Shop urban concept store took the Perspective prize in the merchant category. Genevieve Gagnon, of Groupe Yves Gagnon, took to the stage to accept the Community award, which recognizes business leadership in the social, ecological or humanitarian sectors.

The Innovation of the Year was the CoolDeck, a heat-deflecting technology optionally available in MoistureShield’s Vision composite decking, distributed by CanWel Building Materials.

The gala was the first of at least three that will be held at the Queen Elizabeth, with the current contract extending to 2021. (To see the full list of winners, click here.)

TORONTO ― A big part of Canadian Tire’s push in 2018 was the launch of the Triangle rewards program. The program aims to complement the famous Canadian Tire money that has been part of the retailer’s heritage since its early days.

The digital rewards, however, go well beyond the sense of customer loyalty the paper money has always engendered. The data being provided about customers is proving invaluable for tracking and predicting shopping behaviours.

Getting a handle on how to use that data has been Canadian Tire’s challenge. It has worked to combine the initiatives from head office with the needs of its associate dealers, who operate 501 Canadian Tire stores across Canada.

The company says it has made great progress on this front, managing data being created from the Triangle Rewards program to better understand its customers. One result has been the ability to tailor email offers weekly to the retailer’s most valuable customers.

In a call to analysts following the release of its 2018 year-end results, Canadian Tire executives offered some insights into the company’s digital progress.

Explaining how data generated by the Triangle Rewards initiative is used, Greg Hicks, president of Canadian Tire Retail, said, “we actually get it at the SKU level, so we know exactly what customers are purchasing. So that wealth of information allows us to be pretty responsive to any changes in behaviour we potentially are seeing for new accounts.”

“The classic example is a customer who had [purchased] winter tires. We now send a promo for a spring and summer tire changeover. Those types of things are pretty simple and that’s the starting point. It gets incredibly sophisticated from there.”

According to Allan MacDonald, Canadian Tire’s EVP – Retail, advances are being made across the company’s digital presence. “In 2018, we made major improvements to both canadiantire.ca and our fulfillment capabilities. We’ve dramatically improved our site speed, search and navigation.”

MacDonald said the improvements have been “incredibly important” in terms of the customer experience on the Canadian Tire site. “We’ve driven increased site visits, page views and conversion, critical performance metrics in an omnichannel retail world.”

The Atlantic Building Supply Dealers Association gave out industry awards during the gala dinner at its Buying Expo last week. The Lifetime Achievement Award was presented to Duncan Wilson. Currently director of business development for Home Hardware Stores Ltd., Wilson’s career spans 46 years and a range of retail companies in the industry. Lifetime Member Awards were given to Brian Warr, a former Castle dealer in Springdale, Nfld., and former chair of the ABSDA; and to Greg Sutherland, who worked at CanWel from 1975 until his retirement two years ago.

Moen has appointed Nina Kshetry as its first water director. A licensed professional engineer in Illinois and Florida, Kshetry will be a conduit in connecting Moen to her network of individuals and organizations that are focused on broader-scope water situations across the country.

…that Hardlines Classifieds provide a targeted, cost-effective way to find your next hire? Our Classifieds reach thousands of strong candidates across the retail, wholesaler and vendor communities. Contact Michelle Porter at the Hardlines World Headquarters for a free quote!

ST. JACOBS, Ont. ― Home Hardware was recognized with Platinum status for overall business performance and sustained growth in this year’s Canada’s Best Managed Companies program. The designation recognizes Canadian-owned and managed companies with revenues over $15 million that demonstrate strategy, capability and commitment to achieve sustainable growth. “We are honoured to be recognized with Platinum status as one of Canada’s Best Managed Companies,” Home Hardware CEO and President Kevin Macnab said.

BOUCHERVILLE, Que. — Reno-Depot, a banner of Lowe’s Canada, has launched the Air Miles reward program in all 21 of its stores. Customers who shop at Reno‑Depot will be able to earn Air Miles on eligible purchases made in-store and on renodepot.com. Lowe’s, Ace and RONA stores in Canada already carry the Air Miles program. “People who visit any of our stores—regardless of the banner—can now take advantage of the program,” says Charles Valois, divisional VP, marketing at Lowe’s Canada. In addition to earning rewards on eligible purchases, Air Miles members will benefit from special offers throughout the year and get discounts on purchases.

SURREY, B.C. — The board of directors of the Building Supply Industry Association of B.C. (BSIABC) unveiled a new logo at their latest annual general meeting. The logo portrays the fundamentals of the association while giving it a fresh new look. It features a tree over a house that pays tribute to the original logo in a simple and clean contemporary version with text in a softer font than previously. According to the BSIA, it’s meant to be seen as a symbol of change, and a call to action for both association members and the wider building supply community.

SEATTLE ― Amazon.com Inc. generated $141.92 billion in product sales in 2018. That’s an increase of 19.7% from 2017. The Christmas holiday season in Q4 accounted for almost one-third (31.5%) of those sales. Sales from all its business units, which include services, were $232.89 billion in 2018, up a whopping 30.9% from the previous year. Amazon generated profits of $10.07 billion, up 232.3% from $3.03 billion in 2017.

SUPPLIER NEWS

NORWALK, Conn. ― The 2019 edition of the National Hardware Show will feature several new sections and categories. Among the new offerings awaiting participants in Las Vegas this May are the Impulse Aisle, featuring products designed to catch the customer’s eye on the way to the checkout. An Interactive Smart Home will showcase the hottest smart home products with dedicated visuals and demonstrations. The Backyard Marketplace celebrates favourite outdoor living brands in a relaxed setting with food and entertainment. This year, attendees will also be able to access exclusive deals and show specials through the NHS Mobile App, both pre-show and on site.

ECONOMIC INDICATORS

Housing starts fell 16.3% to a seasonally adjusted annual rate of 173,153 units in February, compared to 206,809 units in January. The SAAR of urban starts decreased by 18% to 155,663 units. Multiple urban starts decreased by 20.2% to 116,284 units, while single-detached urban starts decreased by 10.6% to 39,379 units. Rural starts were estimated at a seasonally adjusted annual rate of 17,490 units. (CMHC)

After a steep drop in December, U.S. retail sales began to rebound in January, increasing by 0.2% in a month marked by a government shutdown and a volatile stock market. The figure reported by the U.S. Commerce Department follows on a 1.6% decline in December, the largest in nine years. Eight out of 13 categories saw improvement in January, including the largest increase in spending on building materials since late 2017. (U.S. Commerce Dept.)

ORLANDO, Fla. — The new president of Orgill, Inc. takes the helm at a period of active growth for the Memphis-based hardware wholesaler. Boyden Moore was named to the role of president at the beginning of 2019. Ron Beal, Orgill’s long-time chairman, president and CEO, dropped the president title, but remains the company’s chairman and chief executive officer.

Moore, whose own background is in retail, was already president of Tyndale Advisors, a subsidiary of Orgill that provides consulting and management services for dealers that range from strategic planning, store operations and finance to merchandising, marketing and human resources. The president’s role at Orgill has been added to his existing duties.

He met with Hardlines during Orgill’s recent dealer market in Orlando, Fla.

Moore says he will spend the rest of this year getting more familiar with every part of the business, particularly the operations and sales divisions of the company.

Extensive changes in the U.S. home improvement market over the last couple of years have created numerous growth opportunities for Orgill. In addition, Orgill enjoys steady organic growth as it serves independent home centres and lumber yards looking to expand their hardware departments. But all this new business requires an expansion of the wholesaler’s existing distribution network.

“We continue to improve our services, grow our business and invest in that growth,” Moore explains. “We’re currently expanding our Kilgore, Tex., distribution centre by 500,000 square feet. We’re also in the early process of selecting a site for a new distribution centre somewhere in the Northeast U.S.”

Orgill continues to invest in all its DCs, says Moore. That includes investments in the London, Ont., distribution centre that services customers in Eastern and Central Canada, as well as the Post Falls, Idaho, facility, which delivers to Western Canada. “We’re excited about our Canadian business. We’ve made significant investments there and we’re off to a good start.”

He adds that he will be travelling to Canada later this month to visit the London, Ont., DC. “I’m diving into the whole Canadian business.  We’ve made some great progress in Canada over the past year and are very pleased with the growth and improvement. We look forward to continuing to grow that business along with our U.S. and international business.”

SASKATOON ― Federated Co-operatives Ltd. Enjoyed a strong fiscal year in 2018, which coincided with the celebration of the co-op’s 90th anniversary. And those results included healthy returns from its home centre business.

The company’s year end, which is October 31, generated sales of $10.7 billion, up from $9.8 billion in fiscal 2017, from its five strategic business units, which include crop supplies, feed and food, as well as energy, the unit which accounts for more than $7 billion of the total.

Annual profits climbed to $1.2 billion, up from $628 million.

The Home and Building Solutions business may be one of the smaller strategic business units within FCL, but it remains a major presence in Canada’s retail home improvement industry. Sales for the business inched up 1% to $359 million, from $355 million in 2017―a fact that makes Cody Smith, director, home and building solutions, very happy after recent years of flat or negative sales growth. He points to the tough year the dealers in the West faced in 2018. Net income for the business unit bumped up to $24 million, from $23 million a year earlier.

One of the marked changes within FCL’s retail stores is the consolidation taking place. In 2017, the co-op had 190 outlets. As of October 31, 2018, that number had shrunk to 180 member retail co-operatives, two affiliate members and seven associate members—spread across Western Canada. During the year, some locations closed, while others were amalgamated. For example, Spiritwood and District Co-op and Lake Country Co-op were combined as Lake Country Co-op, and Rimbey Co-op and Rocky Mountain House Co-op combined to form Evergreen Co-op.

“We’re combining locations to bring together our different customer bases in an effort to create efficiencies and serve the market better,” says Cody. At the same time, he adds, “We continue to invest in our stores. That included three renovations last year and one new location.”

Looking ahead at the remainder of the current year, Smith is less optimistic. “I believe it’s going to continue to be tough for the next little while.”

VANCOUVER — CanWel Building Materials Group Ltd. reported fourth-quarter and full-year 2018 financial results for the period ended December 31. Annual consolidated revenues increased by 13.7% to $1.3 billion, up from $1.1 billion in the same period in 2017.

Sales for the CanWel Building Materials Distribution business, which sells LBM and related products to dealers across the country, increased by $160.5 million or 14.9%, largely due to higher construction materials prices and internal improvements. These included continuing product mix strategies and an increased focus on its customer base. In 2017, CanWel acquired Honsadar Building Products Group, a U.S. building materials distributor, and the revenues from that business positively impacted the 2018 results as well.

However, CanWel saw its overall results affected in the second half of the year by a significant downturn in pricing on OSB, lumber and panels, which was also a factor in reduced demand across CanWel’s markets.

By product group, construction materials accounted for 58% of sales, compared to 61% in 2017, with 34% coming from specialty and allied products and forestry and other products accounting for 8% of sales.

For the fourth quarter, revenues decreased 4.4% to $264 million, from $276.2 million. Sales for the Distribution segment decreased by $9.8 million or 3.8%, largely due to the impact of falling materials prices during the quarter. That decrease was partially offset by the strength of CanWel’s U.S. operations, where market conditions were more favourable.

BOUCHERVILLE, Que. ― BMR Group is bringing its La Shop urban neighbourhood store concept to the Montreal-area town of Mount Royal this spring. La Shop made its debut last spring in Montreal’s trendy Griffintown neighbourhood (shown here).

Hardlines was at the soft launch for the first store, where BMR showcased the concept’s distinctive product mix aimed at meeting the needs of young urban families, especially those living in smaller spaces.

Both La Shop locations are corporate stores owned by BMR Group.

The Mount Royal store will feature a similar range of smart products, hardware and seasonal items as well as new categories promoting eco-friendly consumerism. Its setting is surrounded by a mix of condos and retail outlets not unlike that found in Griffintown. In other ways, however, the site is an innovative choice. Griffintown is an integral part of the city of Montreal, wedged between downtown’s Golden Square Mile and the Old Town.

“TMR”, as the town of Mount Royal is known, is a separate municipality north of the city and served by the Montreal Metro’s blue and orange subway lines. The town’s evolving retail footprint has been in the news lately as plans for a mega-mall and housing complex called Royalmount have sowed dissension between TMR and Montreal councillors who fear a negative impact on traffic, businesses and cultural sites in the city. La Shop’s footprint is modest in comparison. At 6,200 square feet, it’s even smaller than the Griffintown location. 

“Over the past decade, the retail sector has undergone significant changes that have had a major impact on how business is conducted,” CEO Pascal Houle said. “La Shop hardware stores, with their technology, local products, innovation and environmentally responsible alternatives, are adapted to this new market’s needs, allowing us to broaden the horizons of the traditional hardware store concept.”

“The Griffintown store has allowed us to test out a multitude of ideas with a new client base, which has proven very receptive,” added Martin Lecomte, BMR’s VP of retail. “With this second location, we’re maintaining La Shop’s modern and trendy look, but also building on our ideas so we can keep surprising our customers.”

Derby Building Products has named Rachelle Shendow as marketing manager. In that role, she will be responsible for all communications, public relations and advertising for the Tando and Novik brands of exterior cladding. Shendow’s 20-year career in building products includes involvement in the launch of the Azek trim and decking brands and in growing the Trex decking brand.

At Liteline Corp., Eric Teacher has been appointed regional sales manager – specifications. A graduate of the University of Haifa with a B.A. in marketing, economics and social sciences, Teacher began his sales career in the instrumentation industry and began his involvement with lighting applications in 1993. He is a graduate of Seneca College’s Ontario Management Development Program with a diploma in Leadership and business management and has been lighting certified through the national lighting council, NCQLP, since 2012.

…that retailers can now access the latest intel to help them run their businesses better with our sister publication, Hardlines Dealer News? This monthly electronic newsletter is sent to thousands of dealers and managers across Canada every month (as well as to smart suppliers who want to stay in the know). The next issue will be sent out March 13. Don’t miss it! To get your own free subscription, just click here!

BOUCHERVILLE, Que. — Lowe’s Canada has unveiled its new corporate website. The responsive platform was created to host all corporate information under one roof and facilitate easy access to company info. “Our new corporate website, which acts as a first point of contact for the public, features our people as well as our major projects,” says Jean-Sébastien Lamoureux, senior VP of communications, public affairs and compliance for Lowe’s Canada.

VAUGHAN, Ont. — TIMBER MART’s Ontario office has moved to a new location in Vaughan: 361 Connie Cres., Vaughan, Ont., L4K 5R2.

MONTREAL — BMR Group held its fourth Contractors’ Night recently. The event was organized jointly by four Montreal-area dealers: BMR Matco, Ostiguy & Frères, U. Cayouette and Potvin & Bouchard. A record turnout of nearly 500 contractors gathered at the Centre des congrès et banquets Renaissance in Anjou to meet with some 40 suppliers.

BENTONVILLE, Ark. — At its latest meeting with suppliers, Walmart announced the launch of an ambitious campaign to reduce plastic in the packaging of its private-label products. Laura Phillips, SVP for Global Sustainability at Walmart Inc., said the initiative, which would impact about 30,000 products in the U.S., ties in with the company’s overall vision of zero waste in its operations. Walmart is also urging its suppliers to make similar goals for their own packaging.

NEW YORK ― Hudson’s Bay Co. CEO Helena Foulkes has spent her first year on the job shedding under-performing assets and strengthening the company’s core business, according to an interview with Fortune. “I’ve been trying to get the organization to focus more,” she told the magazine. When Foulkes took the helm, HBC was bridled with debt and stretched over too many markets, while its Lord & Taylor and Saks Off Fifth banners were flagging.

TORONTO ― Gap Inc. is closing 230 stores over the next two years, representing almost half of its retail network. The company declined to tell the Canadian Press how many of those stores would be in Canada but says the North American market will account for the majority of the closures. At the same time, Gap Inc. announced it will spin off its Old Navy banner into a separate publicly traded company.

ECONOMIC INDICATORS

Sales in the U.S. of new single-family houses were at a seasonally adjusted annual rate of 621,000 in December.  This is 3.7% above the November rate of 599,000. (U.S. Commerce Dept.)

NOTED

A core tenet of working at Home Depot Canada is its Giving Back program. Collectively, Home Depot staff contribute more than 60,000 hours each year either in support of local community projects or on behalf of partners of The Home Depot Canada Foundation, which is committed to preventing and ending youth homelessness in Canada.

OVERHEARD

“The lesson for other brands is clarity. At Lord & Taylor, we as a company had taken our eye off the ball of who our customer is. We heard the world was going younger, so we tried to go younger… It’s basic: It’s knowing who you want to win with and being relevant and important to those customers.”
—Hudson’s Bay Co. CEO Helena Foulkes, in an interview with Fortune magazine about her efforts one year in to turn around HBC’s retail brands.

OUT & ABOUT

Michael McLarney and Staff Writer Geoffrey McLarney were just at AQMAT’s Gala Reconnaissance in Montreal this past weekend. Now Michael is heading to Halifax to join David Chestnut, Hardlines’ VP of Business Development, at the ABSDA Building Supply Expo. Got a new product or a hot scoop? Text Michael at the show at 647-209-5663.

ORLANDO, Fla. — Despite unsettled weather through much of the American Midwest that affected dealers travelling from as far as Atlantic Canada, a healthy contingent of Canadians arrived late last month in Orlando for Orgill’s Spring Dealer Market.

TIMBER MART had a strong turnout of more than 100 dealers, many coming from that buying group’s own show, which was held a week earlier in Toronto. Other groups, like ILDC and Castle—including several individuals from head office—were also there. The Canadian presence was rounded out by dealers from existing banners looking for expanded assortments or fill-in lines.

Product showcases included Impulse Buys, the Worldwide Sourcing Showcase, Canada Smart Start Showcase and the Spring Promotional Showcase, which featured Orgill’s “Spring is Here” lawn and garden program.

“We’re showcasing a number of displays and specialty areas to help our customers find ideas to grow their businesses,” said Phillip Walker, senior vice president of merchandising services. “We hope they discover creative ways to merchandise their inventory and discover innovative products to offer their customers.”

The response of the dealers to the offerings at the show was typified by the comments of Jeremy Paine, from Bulkley Valley Home Centre, a Castle dealer from Northern British Columbia who found the show specials and promotional products particularly valuable to his business. “I’ve been coming here for years,” he said. “We always find it worthwhile, especially considering how far we come.”

TORONTO — The president and CEO of one of the country’s largest buying groups thinks the internet is a great opportunity for many dealers willing to enter the game. But Bernie Owens also warns that it holds some dangers for small business owners who are susceptible to spam and hacking.

Owens spoke with Hardlines during the recent TIMBER MART show, held in Toronto February 15 and 16.

The show, which launched a number of new programs for its dealer members, included marketing to help those dealers sell more effectively on the internet. Owens said support for building social media, including templates for creating Twitter and other accounts, were among the services introduced at the show.

But that online presence opens dealers up to attack, as well. He warns that independents need to be cautious of credit card scams that will attack their server, leaving them vulnerable to security breaches and illegal credit card use. “We’re warning our dealers about phishing.”

He notes one example of some of his dealers recently receiving an official-looking letter by email that appeared to be from TIMBER MART head office, complete with proper letterhead and logo. But it was a scam to get dealers to turn over important banking and personal information.

Owens also cites another casualty of the internet—the traditional hardware store. “It’s the fastest shrinking business in Canada and the web is killing it." While home centres and lumber yards have the advantage of dealing in larger products, commodity purchases and project sales, many of the items available at hardware stores are easily price-shopped, sourced and shipped through online purchases.

Building supply dealers, on the other hand, have some protection from online competitors, by virtue of the size and complexity of many of the products they sell.

And dealers have other advantages over online and big box competitors. “The beauty of independent building supply dealers is that they can react quickly to local market conditions. They can react to the direct needs of their good customers and quote accordingly,” he says. They can offer services—he cites additions such as a boom truck—to continually fine-tune their operations. “The big boxes—they can never touch that.”

He adds that dealers will have to watch their businesses more closely than ever. “It’s going to be about terms and managing their inventory. He notes that TIMBER MART’s new distribution centre in Mount Forest, Ont., which opened last month, will be able to help dealers in that market get products quickly so they can keep their inventory down and turns up.

MOORESVILLE, N.C. — Lowe’s Cos.’ fourth-quarter earnings included a net loss of $824 million, a swing from net earnings of $554 million a year ago. The results were impacted by pre-tax charges of $1.6 billion, due mainly to the costs attached to reorganizing its operations toward the end of last year.

Those costs included $952 million non-cash goodwill impairment charge related to the Canadian business, an accounting decision made to reflect the anticipated continued weakness in the Canadian housing market, exerting pressure on the Canadian business outlook over the near term.

Growth forecasts for the Canadian operations aren’t as strong as projected at the time of the acquisition of RONA. This cautious outlook reflects overall economic conditions in Canada, but also the impact of new mortgage rules that went into effect on January 1, 2018, which are slowing housing sales across the country as well as housing starts, also expected to continue to decline in 2019.

Lowe’s President and CEO Marvin Ellison acknowledged the disparity in market conditions and admitted that business conditions in Canada would not likely support the kind of growth the company expects in the U.S. “We anticipate continued weakness in the Canadian housing market in the near term, but remain confident in our market position in Canada and the long-term potential of that business.”

Lowe’s also took a charge of $150 million associated with the closing of under-performing stores in Canada and the U.S. and $208 million related to the exit from Lowe’s Orchard Supply Hardware business in the U.S.

Comparable sales for the quarter were up 1.7%, with the U.S. home improvement business actually up 2.4%. The Lowe’s business in Canada had negative comps for the quarter. Sales for Lowe’s for the year were $71.3 billion, up 4% from $68.6 billion in fiscal 2017.

Lowe’s has set forecasts for fiscal 2019 of total sales to increase about 2%, while comparable sales are expected to increase approximately 3%.

ATLANTA — The Home Depot posted record results for its fourth quarter and year end, reflecting gains in a number of product categories and ongoing penetration of the contractor and homebuilder markets in the U.S.

With sales up almost 11% in Q4 and up 7.2% for its fiscal year, Craig Menear, chairman, CEO and president of Home Depot told analysts, “Fiscal 2018 was another record year for our business as we achieved the highest sales and net earnings in company history.”

Menear was quick to identify where the growth is coming from. “Pro business continues to grow faster than DIY, and Home Depot keeps working on services for its pro customers,” he noted.

In the fourth quarter, Home Depot announced a consolidated go-to-market approach for its pro customers under the banner Home Depot Pro. “And we continue to invest in a more personalized offering for our pro customers with a new B2B website experience.”

With 100,000 pro customers already using the portal, the company intends to add new features to enhance interactivity and roll it out to more than a million pro customers in 2019.

Overall, Home Depot is making ongoing investments into its digital business with an improved website and mobile applications. Online sales grew 22.7% in the fourth quarter and 24.1% in fiscal 2018, representing 7.9% of the company’s total sales.

At BMR Group, Jason Hamburger has been named to the newly created position of business development manager, Ontario. The Elmira, Ont., native has more than 20 years of experience in the retail industry, including almost a decade as product manager for Home Hardware. Under the direction of Pierre Nolet, BMR’s VP of business development, Hamburger’s main role will be the recruiting of new dealers in Ontario.

Saint-Gobain has announced the appointment of Mark Rayfield as CEO of Saint-Gobain North America. Along with his new role, he will continue to serve as CEO of CertainTeed, Saint-Gobain’s building materials division. Rayfield succeeds Tom Kinisky, who now takes on the role of chairman of the North American company and chief innovation officer for Saint-Gobain worldwide.

…that dealers can access the latest intel to help them run their businesses better with our sister publication, Hardlines Dealer News? This monthly electronic newsletter is sent to thousands of dealers and managers across Canada every month. The next one will be sent out March 13. Don’t miss it! To get your own free subscription, just click here!

ATLANTA — Home Depot reported Q4 sales of $26.5 billion, a 10.9% increase from a year ago, with comparable sales up 3.2%. Net earnings for the quarter were $2.3 billion, compared with $1.8 billion in Q4 2017. In addition to one-time tax charges, the company took a hit from a snowy winter, which dampened construction activity in the U.S. Sales for the fiscal year reached $108.2 billion, an increase of 7.2%. Comp sales for the year were up 3.2%, with U.S. comps positive 3.7%, while Canada was essentially flat.

BOUCHERVILLE, Que. — BMR Group has acquired a minority stake in maple-sugaring equipment manufacturer CDL. The Saint-Lazare-de-Bellechasse company is majority-owned by the Chabot family.

BOUCHERVILLE, Que. — Lowe’s Canada has launched a new corporate website. In addition to providing the latest news on the organization, this new responsive platform gives an overall view of the company operating the Lowe’s, RONA, Reno-Depot, Ace Canada and Dick’s Lumber banners. The website was created to host all corporate information under one roof.

SUPPLIER NEWS

DWAYNE, Pa. — Unilog and Orgill are teaming up on a new promotional e-commerce program, which enables Orgill dealers to establish an online retail presence for a small monthly cost. This new offering builds on a partnership the companies announced in August where Unilog was named the preferred e-commerce partner for Orgill. Each month, Orgill will feature items that its dealers can choose to promote on their e-commerce site. Retail customers can then place online orders for these items and pick them up at their local store.

BARRIE, Ont. — LinkGreen, a technology company that provides suppliers and distributors with online ordering for their retail customers, has launched a platform for Scotts Canada to manage that garden products company’s wholesale online ordering. All online orders received through LinkGreen’s system are automatically delivered into Scotts Canada’s system through EDI.

LANCASTER, Pa. — Armstrong World Industries reported that consolidated net sales in Q4 increased by 11.4% from the prior year to $238.9 million, driven largely by higher volumes in the architectural specialties segment. Operating income surged by 21% to $52.5 million.

ECONOMIC INDICATORS

Housing starts in the U.S. declined by 11.2% in December to a rate of 1.08 million, the lowest since September 2016. The drop affected both single-family dwellings and apartment buildings. In the past 12 months, housing starts have fallen by a total of 10.2%. Meanwhile, building permits edged up 0.3% in December, with single-family permits down 2.2% from November and down 5.5% from the previous year. (Commerce Department)

Sales of existing U.S. homes declined 1.2% in January to a seasonally adjusted annual rate of 4.94 million units. That figure was the lowest since November 2015 and fell considerably short of analyst estimates of 5 million units. Compared to a year ago, sales were down 8.5%. At the same time, December’s estimated rate was revised slightly upward. (National Association of Realtors)

NOTED…

Dealers who headed to Orlando, Fla., recently for the show specials and latest merchandising programs from Orgill also had a chance to meet their fellow retailers from across Canada. Hardlines once again hosted its Canada Night Reception, at the end of day one of the show. It drew about 160 dealers, family members and store staff, who enjoyed a drink courtesy of the sponsoring vendors who supported the event.

OUT & ABOUT

Michael McLarney and our Quebec Field Reporter Geoffrey McLarney will attend the AQMAT Gala Reconnaissance at the Queen Elizabeth Hotel in Montreal this coming weekend. It’s the premier event for the Quebec market. Look for them there!

BOUCHERVILLE, Que. — Our Meet the Buyers Breakfast next month will feature presentations from four of Lowe’s Canada’s top merchandisers. The event will be held March 26 at the Imperia hotel in Boucherville, Que., just minutes from the head office of Lowe’s Canada.

Igor Halencak, EVP, Merchandising and Marketing, will kick off with updates on changes at Lowe’s Canada and within his team. Carol Crystal, who heads up the Seasonal and Appliances team, has expertise in categories ranging from lawn and garden to heating and cooling. Josée Dumas will speak about paint, lighting and other home décor lines. Marc Gingras is responsible for Building and Maintenance, including LBM and plumbing tools. 

Igor Halencak joined Lowe’s Canada in October 2013 as Head of Merchandising and Marketing. Today, as Executive Vice President, Merchandising and Marketing, he is responsible for the organization’s entire merchandising and marketing structure, including field merchandising, merchandising operations, e-commerce operations and marketing for the Lowe’s, RONA, Reno-Depot, Dick’s Lumber and Ace Canada banners.

Carol Crystal joined the RONA merchandising team in April 2014. She held progressive roles in Fashion Lighting, Appliance and the Seasonal categories at Lowe’s Canada following the acquisition of RONA. In 2018, she worked with the Reno-Depot banner, leveraging assortments from both Lowe’s and Reno-Depot to bring great products to customers across Canada. She is now Vice President of Merchandising for Seasonal and Appliances for Lowe’s, RONA and Reno-Depot.

Josée Dumas has extensive leadership experience in the retail sector, having worked at RONA since the beginning of her career. She began in 1998 as a replenisher for Paint and developed a passion for merchandising. As the Vice President of Merchandising for Home Décor, she is now responsible for the home décor team for Lowe’s, RONA and Reno-Depot.

Marc Gingras has several years of leadership experience in merchandising, sales and marketing in both the retail and manufacturing sectors. He started working at RONA in 2013 as a procurement director responsible for Seasonal and Plumbing & Kitchens negotiations. Today, as Merchandising Vice President for Building and Maintenance, he is responsible for the Lowe’s, RONA and Reno-Depot banners.

(The 2019 Meet the Buyers event is being produced in collaboration with the Quebec industry association AQMAT and the Bureau de Quebec, with the sponsorship of RDTS. For more information and to register for this exclusive, vendor-only event, please click here.)

TORONTO — With more than 1,000 dealers and vendors in attendance, TIMBER MART hosted its ninth annual national buying show from February 15 to 16 at the Toronto Congress Centre.

Some 200 vendor booths filled the 80,000-square-foot show floor, attracting dealers from close to 280 TIMBER MART locations across the country.

The show’s appeal for members, says TIMBER MART President and CEO Bernie Owens, is the value of the specials being offered by the suppliers. “We’re driving it to be a true buying show,” he points out.

Attractions included Orgill’s new plumbing and electrical assortments. The hardware wholesaler had racks displaying full assortments of these core categories. TIMBER MART’s Store on the Floor featured merchandised displays of more than 2,000 SKUs of building materials and hardlines products. The show also served as a launching pad for member-exclusive pool buys.

At the centre of the floor, the TIMBER MART area encompassed hubs for all of TIMBER MART’s services and programs, including: TIMBER MART’s charitable foundation, Timberkids, LBM solutions, TIMBER MART Essentials, dealer marketing, merchandising and banner support.

The day before the show, TIMBER MART hosted a national dealer meeting, where members got the latest updates on the group’s activities. A new Timberkids Scholarship Fund program was unveiled, followed by a series of hosted educational sessions on TIMBER MART’s new marketing programs, including options for dealers to promote across digital and print media. A new payables package suitable for stores with 25 or more staff was also introduced, along with a benefits package that can be adapted for both staff and senior management.

TIMBER MART’s annual dinner and awards ceremony was held the following day, where multiple dealers and vendors were recognized by the buying group. The event also featured an appearance by Canadian Football League Commissioner Randy Ambrosie and the Grey Cup, which was displayed both on the show floor and at the dinner and awards ceremony.

TORONTO — As dealers across the country gear up for the busy spring selling season, Canada’s two largest home improvement retailers have announced their plans to increase their ranks, as well.

The Home Depot Canada is hiring more than 5,500 new associates across the country to support its busy spring season, while Lowe’s Canada says it will recruit an additional 6,350 people to staff its stores across all its banners. These positions are in addition to some 150 jobs currently being staffed as Lowe’s Canada completes the consolidation of operations at its head office in Boucherville, in the Greater Montreal Area.

Lowe’s Canada held a national hiring day on February 23 in its 67 Lowe’s stores, close to 200 RONA corporate stores and 22 Reno-Depot stores across the country. In addition, a number of independents affiliated with the RONA and Ace banners will host career days of their own.

Home Depot Canada is also hosting job fairs at its 182 stores nationwide. But it’s also using mobile technology to attract candidates. Called “Text-To-Apply”, the feature allows job seekers to apply, self-schedule phone screens, receive job fair invitations and get interview reminders. Interested candidates can simply text “Home Depot Jobs” (“HD Emplois” in Quebec) to 97211 to get started.

“We know convenience is key when applying for a job,” said President Jeff Kinnaird. “This spring, our new Text-To-Apply will make it easier than ever for people with a passion for delivering an excellent customer experience to join our values-driven team.”

Available roles include: sales, checkout, overnight freight, lot and garden centre associates. Eligible full- and part-time employees have access to competitive benefits, including company-paid health and dental benefits, profit-sharing programs, tuition reimbursement and employee assistance programs.

TORONTO — Canadian Tire posted its annual results earlier this month that included a healthy uptick in annual revenue. Overall sales from the company’s various divisions reached $14.1 billion, up 5.9% from 2017. Gas sales helped push that number up, but even excluding petroleum, revenues climbed 5.1%.

The Canadian Tire Retail division saw retail sales increase 2.4% for the year, while comparable sales were up 2.1%. The increases came despite a slow end to the year: Canadian Tire Retail’s fourth-quarter sales nudged up only 0.6% and comp sales were up just 0.2%.

In a call to analysts following the release of the company’s results, CEO Stephen Wetmore noted some of the accomplishments of the previous year. These included the launch of Canadian Tire’s Triangle rewards program and growth in areas like toys and games.

According to Allan MacDonald, executive vice president-retail, those categories enjoyed a bump during the fourth quarter, tying in with the Christmas selling season. Other areas that benefited included pet care and cleaning products.

“Canadian Tire also took top spot as the most searched retail brand in Canada leading into Black Friday,” MacDonald said, reflecting the company’s efforts to secure a strong online presence.

The company continues to grow its house brands in the fourth quarter, which included the launch of “type A”, Canadian Tire’s own line of home storage products. “In Q1, we’ll be proudly launching our new line of Paderno countertop appliances; Vermont Castings will be launching a premium line of barbecues; and Golfgreen will launch a new line of innovative gardening products,” MacDonald added.

“Owned brands are an important part of our strategy and we’ll be continuing our efforts to build world-class owned brands and assortments.”

Lee Harney, formerly with Lowe’s Canada working for the RONA banner, has joined Moffatt & Powell, a large RONA affiliated dealer based in London, Ont., as vice president of operations. Through his career with RONA, Harney had worked his way up from a warehouse manager and store manager to working with both corporate and affiliate RONA stores as a director of market development. Most recently, he served as market director for RONA’s proximity stores in Ontario and Atlantic Canada.

…that dealers can access the latest intel to help them run their businesses better with our sister publication, Hardlines Dealer News? This monthly electronic newsletter is sent to thousands of dealers and managers across Canada every month. To get your own free subscription, just click here!

MISSISSAUGA, Ont. — Castle Building Centres Group has announced its first new member location of 2019. Maple Country Home & Farm, in Inverary, Ont., has been serving Frontenac County since 2016. Owners Kevin and Suzanne Bovey sought a buying group that would give them access to a larger pool of suppliers while maintaining their independence and brand identity. “Having access to almost anything that the consumer is looking for will help us to provide better service to our customers,” said Kevin Bovey.

BENTONVILLE, Ark. — Walmart reported that sales at stores open more than a year rose by 4.2% (excluding fuel) in the holiday quarter. Adjusted earnings per share came to $1.41, compared with analyst estimates of $1.33 per share. Online sales surged by 43% as the retail giant held its own against competition from Amazon. In Canada, net sales edged up by 1.5% and comparable sales by 1.1%, but overall earnings fell due to higher expenses. The results make for Walmart’s 18th consecutive quarter of growth in the U.S., a streak unmatched by any other retailer.

TORONTO — Hudson’s Bay Co. has announced it will close all 37 of its Home Outfitters stores in Canada by the end of this year. A company spokesperson told the CBC that almost all areas served by the housewares banner also have a nearby Bay store.

SUPPLIER NEWS

DELSON, Que. — Goodfellow has announced an exclusive distribution agreement with OX Engineered Products to distribute OX products nationally. OX specializes in the manufacturing of thin wall sheathing marketed under Thermo-Ply and structural polyiso insulation panels marketed under the brand OX-IS (formerly SI-Strong).

NORWALK, Conn. — True Value Company CEO and President John Hartmann will be a keynote speaker at the upcoming National Hardware Show in May. Hartmann’s presentation will take place on the morning of May 7 on the stage in the NRHA Village at the Las Vegas Convention Center. Entitled “Unlocking True Value,” it will highlight how returning the majority of its members’ equity and devising a new company structure has enabled True Value to optimize its investment.

LAVAL, Que. — LM2 Marketing has signed to rep Holland Imports in Ontario, Quebec and Atlantic Canada. The move bolsters the national presence for Holland Imports, which is based in Burnaby, B.C., and its commitment to the entire dealer channel. LM2 will promote a range of lines, including Holland Imports’ own Rok brand of power tool accessories.

FERNIE, B.C. — CanWel Fibre VP Jake Blackmore was among those addressing a community meeting about the company’s logging activities on a slope north of this Kootenay city. He sought to assuage concerns raised by conservation group Wildsight about the lack of provincial regulation over private logging activity compared to the public lands that make up most of B.C.’s forestry sites. Blackmore countered Wildsight’s charge that CanWel was doing the “bare minimum”, saying that the company’s voluntary standards already outstrip provincial rules.

ECONOMIC INDICATORS

Retail sales for December in the U.S. showed a surprise 1.2% drop in activity from November. That figure marks the sharpest decline since September 2009, in the aftermath of the Great Recession. Compared with December 2017, retail sales were up 2.3%. (U.S. Commerce Department)

OVERHEARD…

“Lumber markets have begun to recover in the first quarter of 2019 and we remain encouraged by the long-term outlook for lumber as we focus on the activities that generate the best outcomes for all our stakeholders.”
―Ted Seraphim, CEO of West Fraser Timber, on the prospects for the company after reporting a 2018 year-end that included a 19% increase in sales, despite declines in softwood lumber prices during the year.

NOTED

Home Depot Canada has stated that more than 75% of its store managers started as hourly associates. The company is gearing up to hire some 5,500 people for the coming spring selling season.

TORONTO ― The Home Depot Canada has refined a process for attracting new vendors and new products, and the company is doing it all online.

Through the “Prospective Supplier New Product Submission,” vendors can provide details about their products, with instructions to supply only non-confidential public information.

The submission process puts the vendor in direct contact with the retailer’s buying teams, who can, in turn, evaluate the submissions, qualify them and respond quickly if they find the submission of interest. Replies can take up to six weeks.

“Without even announcing it, the process has attracted hundreds and hundreds of inquiries since it was begun in October 2018,” says Paul Berto, director of corporate communications, external affairs and sustainability at The Home Depot Canada. “It’s another way to interact with vendors―it’s a 365-days-a-year touchpoint.”

And the site is attracting more than just product offerings, he adds. “The interesting thing is that besides hardlines and softlines sales, a lot of services suppliers and operations providers are making inquiries through this platform.”

OAKVILLE, Ont. ― Changes within plumbing products manufacturer Moen have resulted in a North American reorganization, including some promotions.

Mike Dennis will retire from Moen and the Fortune Brands Global Plumbing Group on March 19. He is currently president of Moen’s GPG Group for Canada and Latin America. Dennis joined Moen 28 years ago and has been actively involved in the plumbing industry, including roles as past chairman of the Plumbing Industry Advisory Council and chairman of the Canadian Institute of Plumbing and Heating.

Now, Moen is restructuring parts of its business, including the creation of an Americas Region, effective March 1, to align the company’s Canada, United States and Latin America businesses under one management team. This has resulted in some new appointments.

Peter Fealy, current VP and GM, Moen Canada, is being promoted to the role of vice president, general manager–GPG Canada, overseeing the Moen and House of Rohl businesses in this country. Fealy joined Moen 19 years ago. Luc Lefebvre, currently VP and GM of House of Rohl Canada, will join the Americas team, reporting to Fealy.

Cheri Phyfer, current president of Moen U.S., will take on an expanded role as president, GPG Americas reporting to Nicholas Fink, president of the Global Plumbing Group. Phyfer will have responsibility for Moen U.S. and both the Moen and The House of Rohl businesses in Canada and Latin America.

TRUMBULL, Conn. ― This year’s Home Improvement eRetailer Summit is again being held at the Kimpton Hotel Monaco Chicago in downtown Chicago. The event will be held November 6 to 8. The Summit brings vendors and retail buyers together who are interested in growing their online business.

Organizers have added a member to its Advisory Council, Keesha Craig-Mourillon, senior buyer of e-commerce with the True Value Company. Craig-Mourillon has five-plus years of retail and e-commerce buying experience in a variety of product categories, including tools, major appliances, home décor, small kitchen appliances, floorcare and kitchenwares.

She joins Scott Benedict, Groupon Goods’ divisional merchandising manager; Ryan DeChance, director of discovery at The Grommet; Elizabeth Ragone, senior vice president, Direct to Consumer for Lenox; and Curt Vitale, account manager for Firefly Buys.

True Value has added a third e-commerce buyer, Joanne Brennen, who will be attending the Summit. She joins all the retailers who have committed to return this year. “That kind of support is evidence of the Summit’s increasing importance to the industry,” says Sonya Ruff Jarvis, the Summit’s founder.

One of the Summit’s highlights for retailer attendees is the one-on-one meetings with suppliers. And a goal of this year’s Summit is a two-fold increase in supplier participation. The event is particularly focused on beefing up its vendor roster in such categories as lawn and garden, outdoor living and decorative lighting.

Ruff Jarvis notes that the Summit is limiting the number of companies it registers to 100 so that it can sustain the event’s collaborative setting and foster effective retailer-supplier interactions.

(For an invitation to participate or more information, please contact Sonya Ruff Jarvis; 203-295-3385.)

BOUCHERVILLE, Que. ― Appliances have been a mainstay of Lowe’s long before it even ventured to Canada, but the Canadian division has been actively promoting the category here in recent years. Nor is it restricting itself to its 67 Lowe’s big boxes stores.

In an effort to capture market share in a growing Canadian retail segment that has become even more fertile since the demise of Sears Canada, Lowe’s Canada launched a major campaign in 2016 to enhance its RONA and Reno-Depot stores with major appliances.

“The deployment of appliances has become one of Lowe’s Canada’s major achievements in the last couple years,” says Andrea Danielle Wong, a spokesperson for Lowe’s Canada.

Currently, 19 Reno-Depot stores, 122 RONA corporate stores and 108 RONA dealers are leveraging the appliance offering. And the program is gaining traction beyond its retail customers. The company reports that builders and contractors are relying on the access to fridges and stoves at RONA and Reno-Depot to complete their projects, as well. Lowe’s Canada is growing the appliance department to position the RONA and Reno-Depot banners as project destinations for completing kitchen, bathroom or laundry room projects.

As part of Lowe’s Canada’s omnichannel strategy, Lowe’s, Reno-Depot and RONA all offer major appliances online with offerings that round out the assortments available in stores. That includes the RONA corporate store in Chilliwack, B.C., which has been busy selling appliances since April 2018. Shayna McMillan (shown here) is the salesperson who handles project sales there.

For smaller-format corporate and dealer stores with less floor and storage space, Lowe’s Canada has introduced an “Appliance Extended Aisle Kiosk”, says Wong. This user-friendly, in-store space is equipped with a connected screen and a mobile application that provides customers an online gateway to RONA’s full range of online appliances. Those customers can also access online features such as 3D rendering and virtual design options.

Dealers are turning back ideas of their own, as well. Russ Jones, who owns three Coast Builders RONAs in British Columbia’s Sunshine Coast, turned a former Sears store into a RONA appliance outlet in Gibsons, B.C., last year.

Wong from Lowe’s Canada tells Hardlines that appliances will remain an important growth driver throughout 2019, especially for affiliate dealers. “We’ll expand this category by continuing our rollout in corporate and dealer stores, along with increasing store capacity to support appliances on a case-by-case basis.”

At Coast Distributors, Kevin Staller has been promoted to junior district sales manager of British Columbia’s Lower Mainland territory. He will work with and supervise the outside sales team to better serve the needs of Coast’s Lower Mainland customers and be involved in that region’s warehouse operations. Chris McCluskie has moved to part-time outside sales, while remaining involved in warehouse operations in the Lower Mainland.

Canadian Tire Corp. has announced that CFO Dean McCann will retire, a move that takes effect at the end of this year.

…that the 2019 Hardlines Meet the Buyers Breakfast is more than 75 percent sold out? Come hear from Igor Halencak, EVP of Central Customer Services for Lowe’s Canada; along with Carol Crystal, Merchandising VP Seasonal & Appliances; Marc Gingras, Merchandising VP Building Materials; and Josée Dumas, Merchandising VP Home Décor. This vendor-only event will be held March 26 at the Imperia Hotel in Boucherville, near Lowe’s Canada’s head office and distribution centre. Get your ticket now before it sells out!

TORONTO — Canadian Tire reported profits of $254.3 million or $3.99 per diluted share for the fourth quarter, compared to a profit of $275.7 million or $4.10 per diluted share a year earlier. The decrease was attributed to a one-time $50 million charge related to its financial services agreement with Scotiabank: excluding that, the company said earnings totalled $4.78 per diluted share. Total revenues for the quarter rose to $4.13 billion from $3.92 billion in 2017.

TORONTO — CBC News reports that three Toronto Canadian Tire stores have withdrawn their self-checkout machines, breaking with the trend toward automation in retail. One of the dealers, Tim Tallon, told CBC that his four self-checkout stations were aging and inefficient, leading to frequent breakdowns. Instead, he’s moved to a single lineup, with customers waiting for the next available cashier. “I just think it’s more efficient and we’re quite happy with it,” Tallon said. “I can’t see us going back.”

HOFFMAN ESTATES, Ill. — Sears Holdings Chairman Eddie Lampert’s $5.2 billion bid for the company has received the backing of a New York bankruptcy judge. In approving the offer, made through an affiliate of Lampert’s ESL Investments hedge fund, Judge Robert Drain rejected arguments by unsecured creditors that the sale was flawed and the company would be more valuable liquidated. The decision clears the way for Lampert to keep about 425 stores and 45,000 jobs afloat.

BURLINGTON, Ont. — IKEA Canada has announced the launch of a national program aimed at employing 250 refugees over the next three years. Building on a pilot program begun last June, the national program will operate through partnerships with 18 local agencies that will help the company reach and recruit refugees seeking employment, as well as providing support and advice to help them succeed as IKEA workers.

ISSAQUAH, Wash. — Costco Wholesale Corp. reported net sales of $10.71 billion for January, an increase of 8% from $9.92 billion last year. For the 22 weeks ended February 3, 2019, the company reported net sales of $63.7 billion, an increase of 9.3% from $58.30 billion during the similar period last year. The earlier occurrence of the Lunar New Year this year boosted sales outside the U.S. and Canada by about 4.5% and total sales by about 0.5%.

SUPPLIER NEWS

VANCOUVER ― Forestry giant West Fraser Timber Co. reported results for the fourth quarter that saw sales drop and profits get squeezed. However, the company managed to end the full year with sales of $6.11 billion, 19% higher than 2017. Earnings climbed to $810 million from $596 million, a 36% increase. Faced with output challenges from its existing mills, the company’s year-over-year lumber production increases came largely from the 2017 acquisition of Gilman Building Products, which included six mills in the U.S.

NEW BRITAIN, Conn. — Stanley Black and Decker will open a 1.2 million-square-foot distribution facility this month in Northlake, Tex.

ST. LOUIS — Energizer Holdings reported net earnings were $70.8 million, or $1.16 per diluted share in Q1, compared to $60.4 million, or $0.98 per diluted share. Net sales were $571.9 million, a decrease of 0.2%. However, organic net sales rose by $9.9 million, or 1.7%.

CAMBRIDGE, Ont. — Saniflo Canada’s parent company, SFA Group, a manufacturer of macerating and grinding toilets for international markets, has purchased Zehnder Pumpen GmbH, a German manufacturer of pump technology for industry, home and garden. The acquisition provides several opportunities for synergies between the two organizations, including complementary product lines and opportunities to enhance Saniflo’s geographical footprint and grow sales, especially in the European market.

OVERHEARD…

“Lumber markets have begun to recover in the first quarter of 2019 and we remain encouraged by the long-term outlook for lumber as we focus on the activities that generate the best outcomes for all our stakeholders.”
―Ted Seraphim, CEO of West Fraser Timber, on the prospects for the company after reporting a 2018 year-end that included a 19% increase in sales, despite declines in softwood lumber prices during the year.

OUT & ABOUT

Our intrepid VP of Business Development, David Chestnut, is currently at the International Builders Show. He’ll join up with Michael McLarney in Orlando for the Spring Orgill Dealer Market and our Canada Night Reception for dealers on February 21. Got a hot tip or a new product? Text Michael at 647-209-5663!

BOLTON, Ont. — Last year may have been a strong one for many dealers, but the year ahead is likely to have its challenges.

That’s the outlook from one industry leader, Bob Holmes, general manager of the Ontario-based buying group, TORBSA. “Yes, 2018 was very good for TORBSA,” he affirms. “We had significant growth across all our members.” The group has 25 dealer members representing 49 locations, most of them in Ontario, with one in Richmond, B.C. They are mainly contractor-oriented yards, and many are heavy commercial yards specializing in drywall, steel studs and ceilings, or cement and block.

“I think we outperformed the market,” he says, of the group’s sales growth in 2018.

But looking ahead to the remainder of 2019, Holmes takes a more cautious approach. And the root causes run deeper than just key indicators such as the decline in housing starts. He anticipates even more profound changes. “I think it’s a totally different business.”

Last year, the big concern among his members was securing adequate supply as shortages and tariffs put a pinch on commodities. At the same time, prices rose, helping correct a market that had seen prices remain static in recent years—despite increased demand and rising costs. One challenge he anticipates is simply holding onto those increases, “making sure those prices don’t erode.”

Holmes also expresses concern about ongoing consolidation in the industry, especially as U.S. interests continue to invest north of the border. He cites the takeover of USG by German-based distributor Knauf, and the effect that could have on the Canadian business. But he sees more takeovers at the dealer level, as well, like last year’s acquisition of WSB Titan by Georgia-based GMS.

“Companies like FBM [Foundation Building Materials] and GMS are knocking on the doors of independents that don’t have a succession plan,” he says. “That’s going to be a marker in 2019.”

In fact, FBM has just signed a dealer with three locations in the Greater Toronto area, Builders’ Supply (see “Retailer News” in this issue. —Editor).

Holmes expects this trend to continue to shape the retail landscape in Canada. Most independent dealers belong to buying groups, which are distinctly Canadian and work to negotiate deals with Canadian, or Canadian-based, suppliers. However, large U.S. chains are growing their presence across North America. He wonders what impact this will have on negotiations for the buying groups. “It’ll change the way we do business,” he says.

HALIFAX — The Building Supply Expo of the Atlantic Building Supply Dealers Association (ABSDA) is getting its third run in Halifax this year. The show, one of the last two major regional buying shows in the country (the other is the WRLA’s Buying Show in Calgary in January), was relocated by its organizers in 2017 after 35 years in Moncton.

This year’s event will be held at the Halifax Convention Centre. The show kicks off March 12 with the “ABSDA Meet and Greet”, beginning at 6:30 p.m., followed by two days on the show floor. The end of day one will feature the association’s annual gala dinner, with entertainment by Alan Doyle, lead singer and guitarist with the popular Atlantic folk-rock band Great Big Sea.

Through print ads and online promotion, the show organizers have used some clever math to help suppliers justify their “ROI” on participating in the show. Based on attendance by more than 200 dealer locations expected at this year’s show, the ABSDA costed out estimated travel time (150 hours) and distances that would have to be covered (12,000 kilometres), plus meals (147) and hotel nights (38). The logical conclusion, suggest the organizers, is to just come to the show and see all these dealers in one place at one time.

Thanks to the central downtown location of the Convention Centre, the show was able to secure special pricing at three hotels: the Prince George and the Marriott Residence Inn, both of which are already sold out, and the Cambridge Suites Hotel.

(For more information about the 2019 ABSDA Building Supply Expo, click here.)

WORLD HEADQUARTERS, Toronto ― At Hardlines Inc., we are proud to announce the appointment of a new Marketing and Events Manager. Savannah Jessie Crawford joins our team to oversee our promotional and marketing efforts. She will also manage our growing range of events, including the upcoming Orgill Canada Night, this year’s Lowe’s Meet the Buyers Breakfast and our annual Hardlines Conference.

Savannah joins us from Addictive Mobility, a mobile advertising company, where she co-ordinated and marketed the company’s annual thought leadership conference and supervised a range of employee events. She also has experience on the buying side, in a previous role as Materials Coordinator for office furniture company Keilhauer.

Savannah has been involved with the Ride for the Heart and the Ride to Conquer Cancer. Born and raised in Saskatchewan, she has a BA in Communication Studies from the University of Calgary.

SCARBOROUGH, Ont. ― The Canadian Hardware & Housewares Manufacturers Association has revealed its inductees to the 35th Hardware and Housewares Industry Hall of Fame.

Honoured this year are Terry Davis, past president and CEO of Home Hardware Stores Ltd.; Dennis Nykoliation, retired president of Black & Decker Canada, CanWel Building Products and GSW Building Products; and Accent Fairchild Group founder Solly Feldman.

The awards were announced by CHHMA President Sam Moncada. The Hall of Fame was established in 1984 to recognize the achievements of leaders and pioneers in Canada’s hardware and housewares industries. Over the years, 68 industry leaders, inventors, business founders and builders from the retail and manufacturing sectors have received the honour.

This year’s inductees will be honoured on April 2 at a luncheon held in conjunction with the annual CHHMA Spring Conference at the Mississauga Convention Centre. (To view the entire list of past inductees, click here.)

Sarah Tammi has joined Rust-Oleum Canada as account manager. Prior to this, she spent almost 12 years serving key accounts at Shnier. She reports to Chris Hatfield, Rust-Oleum’s national sales manager.

Peter Korecki has been named divisional vice-president, Pro Builder for Lowe’s Canada. He is responsible for pro pricing, external sales processes and estimating operations for all banners, and leads a team of Regional Managers across Canada. With an extensive background that goes back to the president’s role at Pierceys Building Supplies in Halifax, he spent the past decade working in RONA’s pro business division.

…that vendors are signing up fast and furious for our 2019 Hardlines Meet the Buyers Breakfast? Come hear from Igor Halencak, EVP of Central Customer Services for Lowe’s Canada; along with Carol Crystal, Merchandising VP Seasonal & Appliances; Marc Gingras, Merchandising VP Building Materials; and Josée Dumas, Merchandising VP Home Décor. This vendor-only event will be held March 26 at the Imperia Hotel in Boucherville, near Lowe’s Canada’s head office and distribution centre. Click here to sign up today!

CORRECTION:
We reported last week in an article about Lowe’s Canada (“Lowe’s CEO remains bullish on Canada”, Feb. 4, 2019) that Lowe’s President and CEO Marvin Ellison visited the Canadian division in November, immediately preceding the decision by Lowe’s Canada to close certain locations in this country. Lowe’s Canada confirms that Ellison’s visit came earlier in the year, and the decision about the Canadian business was made by management at Lowe’s Canada—as previously reported in Hardlines (“With latest announcements, RONA will trim store count, consolidate operations”, Nov. 12, 2018).

TUSTIN, Calif. — Foundation Building Materials, Inc., the giant California-based specialty drywall distributor, has acquired Builders’ Supplies Limited, an independent gypsum supply dealer (GSD) with three locations in the Greater Toronto Area. The deal is expected to add an estimated US$20 million to US$24 million in net sales for the remainder of 2019. Foundation, which carries a range of wallboard, suspended ceilings systems and metal framing products, operates 170 branches across the U.S. and Canada.

ATLANTA — Home Depot is scaling back from its HDE installation business, prompting a round of layoffs. For its part, Home Depot says it’s shifting focus onto its core retail business, but that fewer than 1,000 jobs are affected. “After reviewing the installation business, we’ve decided it’s right to wind down our roofing, siding, insulation and gutters,” said spokesman Stephen Holmes in an interview with financial news service TheStreet. “[They are] just not going to be part of our focus moving forward.” The HDE division isn’t disappearing altogether, he added, as other products including windows and doors remain available for installation.

DUBLIN — John Venhuizen, CEO and president of Ace Hardware, has been announced as keynote speaker for the Global DIY Summit in June. The head of the world’s largest hardware retail co-op will speak about management and service for independent retailers. The Global DIY Summit runs from June 5 to 7 at the Convention Centre Dublin. Click here to learn more about the event and to register.

NEW YORK — As big box competition drives many retailers from city centres, IKEA is making ambitious incursions into them, The Economist reports. London, Paris and New York are among the 30 urban core areas that will see new stores as part of IKEA’s current wave of expansion.

MOORESVILLE, N.C. — Lowe’s Iris Home Automation platform will shut down on March 31, the company informed subscribers last week. CEO Marvin Ellison tried unsuccessfully to sell the business last year. Subscribers will be charged for the service only through the end of January, and will be compensated for purchases of devices that are compatible exclusively with the platform.

SUPPLIER NEWS

FERNIE, B.C. ― A large clear-cut north of Fernie, B.C., has community members concerned about logging on private land around the city, following the clear cutting of a swath of land in the Elk Valley. CanWel owns an eighth of the total land in the Elk Valley and has logged a large area on a steep slope north of Fernie. This has increased locals’ concerns about rules surrounding the management of privately owned logging lands. Local activist groups have brought their concerns before the Fernie city council.

MORRIS PLAINS, N.J. — Honeywell reported earnings of $1.72 billion in the final quarter of 2018, including a $435 million favourable adjustment in tax charges. The results followed a $2.52 billion loss for the same period in 2017. Sales were down 10% on a reported basis and up 6% on an organic basis, the disparity owing primarily to the spin-off of businesses from the company’s aerospace and building technology segments.

ECONOMIC INDICATORS

The value of building permits issued in December rose for the fourth month in a row, reaching $8.8 billion. That’s up 6.0% from November. The gain was largely due to higher construction intentions for multi-family dwellings and commercial buildings. Residential permits were up 4.2% to $5.3 billion. In the multi-family dwelling component, the value of permits rose 11.1% to a record high of $3.3 billion, while single-family permits were down 5.4% to $2.0 billion. Non-residential building permits rose 8.9% in December to $3.5 billion.

OUT AND ABOUT

Watch for Team Hardlines at the upcoming TIMBER MART National Buying Show. David Chestnut, Savannah Crawford and Michael McLarney will be walking the show this Friday. It runs February 15 to 16 at the Toronto Congress Centre.