True Value Co. dropped a bomb on the industry last week when it issued a press release from its Chicago HQ saying it had “entered into an agreement to sell substantially all of the company’s business operations to home improvement industry peer Do it Best Corp.”

Do it Best, of Fort Wayne, Ind., will reportedly pay US$153 million in cash for substantially all of True Value’s assets and business operations and assume up to US$45 million in additional liabilities. “To complete the sale in the most efficient manner, True Value and certain of its affiliates initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware,” the release said. “True Value will continue its day-to-day operations serving 4,500 independently owned retailers that rely on True Value for the right products, trusted expertise, and its 75-year-old iconic brand.”

True Value tipped its hand a few days earlier in a letter to vendors from CEO Chris Kempa. In it, he said the company has “active, competitive offers for our business, and we are working tirelessly to finalize a purchase agreement.”

Do it Best is one of True Value’s chief competitors. If the deal goes through, it would create a store network of more than 8,000 locations in the U.S. and 50-plus countries around the world. There are no active True Value-member stores in Canada.

This is the second time in six years that True Value has been on the block. In 2018, Acon Investments, a private equity firm, purchased 70 percent of the company, moving it away from a co-op model that it had operated under since its inception in 1948. It has sales of just over US$6 billion, while Fort Wayne, Ind.-based Do it Best boasts sales of almost US$5 billion.

“A successful acquisition of True Value assets would represent a strategic milestone for Do it Best and home improvement retailers around the world,” said Dan Starr, Do it Best president and CEO (shown here).

The agreement with Do it Best provides significant cash consideration and meaningful assumption of liabilities related to the ongoing business. Do it Best is requesting to be designated as the “stalking horse,” or lead bidder, and to initiate a competitive bidding process under Section 363 of the U.S. Bankruptcy Code. That process is designed to achieve the highest value for the company.

To support the day-to-day business through the sale, True Value is seeking to use its cash collateral to fund operations. In case it needs additional financing during the process, it has received a commitment from Do it Best to provide incremental capital, in an effort to help ensure that independent True Value retailers can continue serving their customers throughout the process.

If Do it Best is the winning bidder, the transaction is expected to close by the end of the year, pending regulatory and court approval. True Value will continue to operate under Chapter 11 protection with Do it Best providing the stalking horse bid.

A statement from Do it Best stresses that the deal would not come at the expense of its existing member-owners. Instead, Do it Best intends to preserve and build on the True Value brand, allowing current stores to maintain their independence while gaining access to Do it Best’s programs, buying power, and support network.

Home Hardware Stores Ltd., the closely-held corporation owned by its dealers, is going through a plethora of changes as it evolves its business strategy. At the heart of these changes is the company’s president and CEO, Kevin Macnab. The process of evolution gains poignancy given that this is the 60th anniversary for Home Hardware. The collision of history, culture, and change has been Macnab’s to manage.

The company’s annual dealer market and information conference, called Homecoming, was the backdrop for Hardlines’ one-on-one conversation with Macnab. The event was held at the Enercare Centre at Exhibition Place in Toronto in September. There, he talked about what was news for dealers at the show, and how the company has ramped up promotions to celebrate its 60th birthday.

The market was Macnab’s sixth; he got his official introduction to the Home Hardware dealers at their fall market in 2018, before he’d even been officially hired. That came a few weeks later on Oct. 10, when he was named only the fourth CEO at the company—and the first to be hired from outside of the St. Jacobs, Ont., HQ. His background included Marks & Spencer in the UK, followed by senior roles with Toys “R” Us and the top job at Toys “R” Us Canada, before becoming that retail chain’s president of its international business.

In the six years since Macnab arrived, Home Hardware has made a lot of changes, including looking outside its own ranks to fill senior positions. Having more than one family member working at Home Hardware’s head office was once an integral part of its culture. More recently, however, the management roles have drawn individuals who have come from other major retailers such as Canadian Tire, RONA, and Loblaw.

In addition, the company has been shifting its focus to the Home Hardware customer and standardizing the experience within the stores. Home has also been updating its IT at its distribution centres and making new efforts to consolidate its dealers’ back-end operations.

Back in Toronto, the Homecoming market was being set up in anticipation of the arrival of hundreds of dealers, along with their families and managers, from all over Canada. Pricing remains a universal priority. “We’ve added promotions and discounts for our dealers,” said Macnab. The market was also the showcase for the introduction of two new electric trucks to the Home Hardware fleet.

But “new” also meant new ideas. “We’ve added a lot of dealer events—a lot more educational events.” These, he said, included a networking event that highlighted the role of women. “It’s fabulous to see us recognizing diversity in the workplace.”

As for changes in the management teams, Macnab says bringing in new thinking, combined with the experience and corporate know-how of the existing staff members, has been really important in moving the company forward. And he personally will represent yet another change when he retires in the indeterminate future. He says he would like to step down by his next birthday. While that timeline has reportedly been shared with the dealers, neither Macnab nor Home Hardware’s communications team would disclose the precise date of his leaving the organization with Hardlines (Grrrr!—your frustrated Editor).

“Even though I have announced my intention to retire, my role is to set the company and my successor up for success.”

In the meantime, Macnab points to the attitude on the Homecoming show floor. There, he said, the dealers and vendors had come together against a backdrop of economic transition that limns the changes at Home Hardware. In the end, he noted, “There’s a really good vibe out there. The dealers are in a good position.”

Independent retailers doing business with True Value have another option as they navigate the uncertainty of its retreat into Chapter 11 bankruptcy protection. Orgill, the independent hardware wholesaler based in Memphis, has sent a message to the industry saying it’s ready to step in.

“At Orgill, we have always championed the independent dealer,” says Boyden Moore, Orgill’s president and CEO (shown here). “One thing that Orgill can offer to the thousands of True Value customers during these uncertain times is a pathway to stability in their future business relationships that would enable them to continue serving their communities without fear of any interruption.”

The company says it’s confident it can support True Value dealers, helping them maintain uninterrupted access to products and services. True Value stores are independently owned and are not a part of the Chapter 11 proceedings, with the exception of one company-owned store in Palatine, Ill.

Moore says Orgill, which does not represent a banner and will sell to any dealer regardless of affiliation, already has experience working with True Value retailers. His company is equipped it to step in and assist retailers who are impacted by the recent developments.

“Because we have done more and more business with current and former True Value customers in the recent months, we aren’t starting at ground zero when it comes to conversions or switching systems. We have the ability and the insights to make this process as efficient as possible,” he says.

Randy Williams, Orgill’s EVP of distribution, points to the recent upgrades and investments that Orgill has made in its distribution network, which have put the company in a strong position to handle the additional capacity that may come from onboarding so many retail customers in a short period of time. That includes the addition of more than US$50 million in inventory to help improve existing service levels and better prepare the company for growth.

RONA has announced the conversion of 18 stores to the RONA+ banner. The stores include four in Montreal, three in Quebec City, and two in Laval. The conversions will see the country’s last 16 Réno-Dépôt stores switch to RONA+, along with a RONA L’entrepôt in Quebec City and a RONA Home & Garden in Winnipeg.

The move marks the end of the Réno-Dépôt banner.

“It’s an important milestone in our history that we’re celebrating as we make RONA our only coast-to-coast retail banner,” CEO and president J.P. Towner said in a release.

“I’m extremely proud of the work of our teams, who brilliantly carried out this major milestone for our company. It’s particularly exciting to be part of the expansion of this homegrown brand.”

The Réno-Dépôt stores, all in Quebec, that have been converted to RONA+ are located at the following locations:

•  Anjou – 10200, rue Renaude-Lapointe, Anjou
•  Beauport – 225, av. Joseph Casavant, Québec City
•  Boucherville – 1235, rue Nobel, Boucherville
•  Brossard – 7410, boul. Taschereau Ouest, Brossard
•  Candiac – 100, rue de Strasbourg, Candiac
•  Drummondville – 875, rue Hains, Drummondville
•  Sainte-Foy – 3131, av. Blaise-Pascal, Québec City
•  Saint-Hubert – 5035, boul. Cousineau, Saint-Hubert
•  LaSalle – 2199, rue Lapierre, LaSalle
•  Laval – 1505, boul. Le Corbusier, Laval
•  Marché Central – 1011, rue du Marché Central, Montréal
•  Notre-Dame-de-Grâce – 7277, rue Saint-Jacques, Montréal
•  Pointe-Claire – 400, boul. Brunswick, Pointe-Claire
•  Rosemère – 1, boul. Bouthillier, Rosemère
•  Sainte-Dorothée – 800, aut. Chomedey, rue Desserte Ouest, Laval
•  Vaudreuil – 3010, boul. de la Gare, Vaudreuil-Dorion

These conversions come just over one year after the introduction of the RONA+ banner. Eleven Ontario stores, in Windsor, Windsor East, Sarnia, Waterloo, Kitchener, Cambridge, Niagara Falls, Brantford, Hamilton, Ancaster, and Burlington, celebrated the banner’s first anniversary by welcoming new store-within-a-store concepts for the DeWalt power tool and Bouclair furniture and home décor brands.

DID YOU KNOW…?

… that the 2024 Hardlines Retail Report is now available? This massive research breaks out the size and growth annually of the industry, identifying which retail sectors and which banners are winning and losing from year to year. It features more than 150 slides in a handy PowerPoint format. Click here for more info and order details—and remember, as a Premium Member (if you are subscribing to this newsletter, you are one!) you will get a big discount on the price!

RETAILER NEWS

Canac has acquired a site in Laval, Que., Montreal’s immediate northern neighbour, La Presse reports. The 673,000-square-foot lot is zoned for light industrial and heavy commercial use, but Canac marketing director Patrick Delisle would not comment on the company’s plans for it. The privately owned banner maintains two stores on the south shore of Montreal but currently has no presence on the island of Montreal itself. According to public records, Canac paid $24.3 million to the previous owners.

Kent Building Supplies and Bragg Communications, which does business as Eastlink, are partnering to offer a store-within-a-store at Kent’s Dartmouth Crossing, N.S., store. The telecom provider will offer mobile phones and internet services through a point-of-sale within the store. The store-within-a-store concept is a first for Eastlink.

Castle Building Centres Group has announced the recipients of its 12th Annual Scholarship Program. The company will award $2,500 scholarships to each scholar, two for academic programs and two in trades. The winners are Maria Shea (Shea’s Building Supplies, Stephenville Crossing, N.L.), Olivia Sparkes (Notre Dame Castle, Springdale, N.L.), Maria Redmond (Mermaid, P.E.I.), and Anastasia Fendley (Mono, Ont.).

RONA held its annual Connexia event for affiliated dealers on Oct. 8 and 9 in Montreal. Some 300 of those dealers joined nearly 175 vendors and RONA leaders. During the closing awards gala, the company recognized five outstanding dealers. Andrew Doidge, president and CEO of Doidge Building Centres Ltd., received RONA’s Up and Comer award. Maurice Goupil inc., RONA Moffatt & Powell, and RONA Weyburn, took accolades for their community involvement. Quincaillerie C. Bélanger Ltée in Montreal was honoured for its 85 years of association with RONA.

Seven & i holdings, which operates the 7-Eleven banner, is spinning off 31 non-core business segments from its convenience store interests. The move, which follows an unsolicited takeover bid from Quebec’s Alimentation Couche-Tard, also includes the closure of 450 underperforming stores in North America. A new holding company, to be called York Holdings, will unite the brands, which include the Denny’s chain of diners, with a majority of shares to be sold to outside investors.

Richelieu Hardware has reported Q3 sales of $467.7 million, an increase of 1.9 percent, including $264.6 million in Canada and US$148.4 million in the United States. Net earnings fell by 21.8 percent to $24.0 million.

September’s inflation rate fell to 1.6 percent, year over year, led by lower gasoline prices, which fell 10.7 percent. But rental prices rose by 8.2 percent, while food prices continued to grow at a rate faster than inflation. Excluding the gasoline price drop, the Consumer Price Index came in at 2.2 percent, the same as August. (StatCan)

Sales of existing Canadian homes rose by 1.9 percent in September from the previous month. On an annual basis, they were up by 6.9 percent. The increase was led by the Greater Toronto Area, Hamilton-Burlington, Montreal, Quebec City, Greater Vancouver, and Victoria. (Canadian Real Estate Association)

The annualized pace of housing starts in Canada rose by 5.0 percent in September to 223,808 units, up from 213,012 units in August. Urban starts number 168,897 year-to-date, up 2.0 percent from 165,559 for the same period in 2023. The rate of rural starts was estimated at 13,806 units. (CMHC)

The 2024 Hardlines Conference takes place next week, Oct. 22 and 23, at Fairmont Le Manoir Richelieu in the Charlevoix region of Quebec. This is the only national event bringing together industry players across all banners, and the speaker lineup is second to none.

It’s also a valuable—and important—opportunity to network with industry leaders from both the retail and supply sides of the industry. The room will be filled with some of the brightest hardware and home improvement dealers from across Canada. Here are some of the companies that are sending senior executives and managers to this year’s conference:

• BMR Group
• Castle Building Centres
• Cloverdale Paints
• Home Depot Canada
• Home Hardware Stores Ltd.
• IKEA Canada
• Lee Valley Tools
• Orgill
• RONA inc.
• Sexton Group
• TIMBER MART

At the end of day one, Oct. 22, we’ll host the Outstanding Retailer Awards Gala Dinner, where dealers and managers from across Canada will be honoured for their extraordinary efforts as retailers, merchants, community leaders, and personal leaders.

The Hardlines Conference is the key annual gathering point for top retail executives, leading dealers, and major vendors, and it will provide tremendous networking and career opportunities. (Online registration is officially closed, but you can still get in! Please contact Michelle Porter, our senior marketing and events manager, directly to sign up.)

Kent Building Supplies is getting a new home in Summerside, P.E.I., next year. The business has been in operation for decades at the corner of Water and Eustane streets in the province’s second-largest city. It was originally under the Schurman’s Building Supplies banner, which was bought out by Kent in 2004.

Since the 2001 closure of the Summerside air force base, the city’s economy has been dominated by the Canada Revenue Agency office that processes HST for businesses outside Quebec. Cavendish Farms, the province’s largest private-sector employer, maintains two plants in the nearby village of New Annan. Kent represents an important retail presence for the community.

Next spring, the store will move to a new site farther uptown flanked by Granville and Central streets. At 50,000 square feet, the new location will be almost triple the footprint of the current property’s 17,000 square feet.

“We’ll be adding a drive-through lumber yard, appliances, and room for many more products,” Anne McInerney, VP of communications for Kent parent J.D. Irving, told Hardlines. She added that the new location will better serve both DIY and pro customers.

The privately-owned Kent banner, based in Saint John, operates in all four Atlantic provinces and accounts for the largest share of Prince Edward Island’s home improvement market. (Source: the 2024 Hardlines Market Share Report—your astute editor).

At the beginning of this year, Kent joined the A.R.E.N.A. Alliance, a consortium of DIY chains concentrated in Europe that also includes BMR Group in Canada. Like BMR and Federated Co-operatives Ltd., Kent is a member of the Independent Lumber Dealers Co-operative.

Kent first added appliances to its offerings in select stores late last year.

Home Depot has responded to not one, but two, severe weather incidents in Florida in recent days. First, Hurricane Helene made landfall in Florida before moving inland, where it swept through parts of Georgia, South Carolina, North Carolina, Virginia, and Tennessee. Only days later, Hurricane Milton headed through the Gulf of Mexico, threatening even more devastation as it tore through the middle of Florida. More than 60 Home Depot stores were closed at any given time in areas being hit by the storms.

Home Depot’s disaster response command centre, based at the company’s store support centre in Atlanta, manages logistics to ship product to stores and resupply them after the storms have passed. The disaster relief teams consist of more than 100 associates across different parts of the company, including merchandising, operations, supply chain, and technology. These teams work around the clock to ensure the delivery of essential supplies to various stores.

The command centre team monitors inventory in real time so communities have the supplies they need to prepare for a storm and rebuild afterward. That includes pre-filling DCs throughout the South that are not in the path of the hurricanes, so products can be shipped to stores to replenish them to serve customers. Generators, water, tarps, flashlights, plywood, and batteries are among the products in greatest demand.

In addition, store workers will move in from other regions to support and spell staff at stores in the afflicted regions. After a storm, pre-staged trucks are placed right outside of the storm strike zone to respond with recovery supplies such as gas cans, generators, trash bags, cleaning supplies, and chain saws.

Following each storm, Home Depot refines its data on how the storms move and change. That data helps the company make informed decisions to respond more appropriately to future events.

Chicago-based True Value Co. is looking for a buyer, according to a letter from CEO Chris Kempa sent to vendors on Oct. 1.

“We have active, competitive offers for our business, and we are working tirelessly to finalize a purchase agreement,” Kempa stated, adding that the company would provide further details in the coming days.

This is the second time in six years that True Value has pursued a sale. In 2018, Acon Investments, a private equity firm, purchased 70 percent of the company, moving it away from its dealer-owned co-op model.

According to Acon Investments, the purchase was a strategic partnership to accelerate True Value’s transformation and create the only branded national hardware wholesaler without a membership requirement.

In that move, retailers received 70 percent of their invested capital and 10 percent of their promissory notes on top of their 2017 patronage dividend. Additionally, retailers retained a 30 percent holding in the new True Value Company, led by the existing management team at the time.

PEOPLE ON THE MOVE

At RONA inc., Sylvain Girard has been named CFO, a post vacated when former CFO J.P. Towner was promoted to CEO and president of the company. Girard has spent more than three decades in corporate financial services management. He was most recently SVP and CFO of Resolute Forest Products.

DID YOU KNOW…?

… that the latest edition of Hardlines Dealer News has hit inboxes? In this issue, we explore our economic expert’s forecast for the coming year, RONA’s new signage for independents, and electric vehicle fulfilment at Home Hardware. Hardlines Dealer News is monthly and it’s free: click here to subscribe now!

RETAILER NEWS

RONA welcomed its independent affiliates to the Fairmont Queen Elizabeth Hotel in Montreal last week for its Connexia event. The dealer-only buying show format debuted in 2022. It includes a trade show kicked off by a networking day featuring meetings and workshops.

IKEA Canada has announced financial results for the fiscal year ending Aug. 31. Retail sales dipped 1.4 percent to $2.87 billion, compared with the previous fiscal year. The company says it remained focused on lowering prices as Canadians continue to navigate economic challenges. One of the programs during the year that impacted topline sales was the introduction of the SHT (Second-Hand Tax). Drawing attention to the taxation of second-hand goods, Ontario customers could, for a limited time, save the tax on purchases of used IKEA products.

The Home Depot says it will require each of its corporate staff to work an eight-hour retail shift each quarter. Employees, including senior management and remote workers, will have to clock in for the required time beginning in the company’s fourth quarter, which starts in November.

SUPPLIER NEWS

Doman Building Materials has acquired South Carolina-based CM Tucker Lumber Cos, a lumber treater. The cash transaction was valued at US$255 million. Founded in 1920, Tucker Lumber is headquartered in Pageland, S.C., and employs 425 workers across three locations.

An Oct. 1 fire consumed Valley Truss and Metal in Kensington, P.E.I. Mayor Rowan Caseley told CBC News that he believed the building to be a total loss after the blaze. “We’re certainly concerned about the loss of the business in town and we do hope they’ll continue to stay here and continue to rebuild,” he said.

Economically vulnerable households—those with lower incomes, those with less wealth, and those in younger age groups—continue to struggle to maintain their financial well-being relative to other households, amid persistently high interest rates and housing cost pressures. Income inequality increased in the second quarter of 2024 as the gap in the share of disposable income between households in the top 40 percent and the bottom 40 percent of the income distribution reached 47.0 percentage points, the largest gap ever recorded since this data began being collected in 1999. (StatCan)

Small business owners are finishing the calendar year off on an optimistic note, according to a survey by American Express Canada. More than 80 percent believe they’re in good shape to be where they want to be financially at year’s end; almost two-thirds expect the holiday season to be the busiest of the year.

It’s already October. Another year’s coming into the home stretch. Another year of challenges and frustrations, joys and triumphs.

Why not make this the year you come to the Hardlines Conference? It’s being held at one of Canada’s outstanding locations, Fairmont Le Manoir Richelieu, in the Charlevoix region of Quebec, on Oct. 22 and 23. This year we are collaborating with the incredible team at Quebec’s industry association, AQMAT, led by CEO Richard Darveau. The entire event will be presented with simultaneous translation.

Through the years, we’ve seen people who attend the conference find new jobs, start new careers, and make new alliances. It’s a place where people make new friendships, strike up new business connections, explore new opportunities, and line up new customers. And that’s in addition to the incredible lineup of speakers who will take to the Hardlines Conference podium.

Our speakers this year include:

• Jason Tasse, president and CEO of Lee Valley Tools, the innovative head of a very innovative niche hardware and tools company.
• Heléne Loberg, sustainability manager for IKEA Canada. We are thrilled to have IKEA join us this year: the company’s dedication to sustainability goes way beyond lip service.
• Alain Ménard, vice-president at RONA inc., who heads up the affiliate dealer division and will explain how RONA is investing in independents.
• Charles Grégoire-Béliveau, vice-president merchandising at BMR Group, will discuss how the Quebec-based wholesaler and buying group is rolling out services and support for dealers in new markets.
• Richard Darveau, president of AQMAT and head of “Well Made Here.” His message about the importance of buying Canadian will resonate with dealers and vendors alike.
• Michelle Chouinard-Kenney, CEO of Gibson Building Supplies, a chain of yards throughout southern and central Ontario that sells roofing and related materials.
• Pierre Battah, nationally recognized HR advisor and workplace expert. This guy rocks. Want to hear about how best to take care of your people? Pierre will keep you riveted.
• Sherri Amos, director of dealer support, Home Hardware Stores Ltd., will moderate a panel of retail merchants from RONA, TIMBER MART, Castle, Home Depot, and Orgill.
• Peter Norman, vice-president and chief economist at Altus Group, our favourite housing and numbers expert—and truly one of the country’s top housing economists.

Along with some special guests and the usual surprises, this year’s conference promises to provide another important element: just plain fun. (See? That makes 10.—your calculating Editor!)

Please join us on October 22 and 23 in Charlevoix!

(Registration for the 2024 Hardlines Conference is officially closed. If you haven’t secured your place, contact Michelle Porter or Jillian MacLeod directly right away!)

So how is the economy doing? We had the opportunity to pose that question to one of the country’s leading economists last week. Peter Norman is the vice-president and chief economist at Altus Group in Toronto. He’s also one of the keynote speakers at the 29th Hardlines Conference, being held Oct. 22 to 23 in Charlevoix, Que.

Norman recently spoke with Hardlines editor-in-chief Steve Payne and associate editor Geoff McLarney for an episode of Hardlines’ podcast What’s in Store. They talked about everything from housing starts and office vacancies to the pace of Canada’s recovery and how it compares with conditions in the U.S.

The economy, he says, is “a real mixed bag, with lots of opinions swirling around. When you’ve got a mixed bag like this, I think you tend to get more negative feelings from consumers.” But, he believes, the picture is more positive than many might think. “Our economy right now is in a kind of sweet spot, a kind of sweet soft landing.

“But we’re not in a recession, at least not technically.”

Norman assures us Canada is doing slightly better than our neighbour to the south, “especially going into 2025. Canada started cutting its rates earlier than what we saw the [U.S.] Fed doing. The Fed is in an interest-rate softening cycle now,” which should help the U.S. economy down the road.

Regionally, there are several strong areas showing growth, including markets such as Calgary and Edmonton and in Atlantic Canada—but there’s one major exception to that trend. “Ontario is in worse shape right now.” That province, which accounts for fully one-third of retail home improvement sales in Canada (source: the 2024 Hardlines Retail Report.—your statistically astute Editor), is slower, and it’s suppressing statistical growth for the entire country. Quebec, as well, remains soft, Norman says.

As a result, despite regional bright spots and falling interest rates, Canada’s overall housing numbers will remain flat in 2025 and 2026, he expects.

(Peter Norman is our guest on the latest instalment of the Hardlines Podcast Series, What’s in Store. Click here to enjoy the full interview and to sign up for our entire library of Hardlines podcasts!)

The second annual Products Issue of our magazine, Hardlines Home Improvement Quarterly, will mail in a few days. In this quarter, we introduce the industry to eight home improvement retail buyers and ask them an essential question: “What are you looking for from vendors?”
The answer to that question is similar to the maxim about real estate: What you care about is location, location, and location. Home improvement retail buyers are looking for innovation, innovation, and innovation.

One of the buyers we interviewed for HHIQ, Jack Cammarata, program manager at the Sexton Group in Winnipeg, put it this way: “Asking the right questions [of vendors] is essential. Such as: What makes you different from others in this category? Why should our members choose you? What are you offering that’s new and exciting that aligns with our members’ individual business goals?”

Ten years ago, Hardlines quoted Bill Wilson, former Sodisco-Howden and TSC Stores executive, about the importance of innovation in a dealer’s SKU offering. He told us that 20 percent of a good retailer’s stock should consist of new products—meaning SKUs introduced within the past 12 months.

That’s a high ratio. But if dealers aren’t offering anything that’s different—you’re boring. And boring retailers in an era of unlimited choice via e-commerce don’t excite customers. Think of it as another version of the 80-20 rule, where 80 percent of your successes come from 20 percent of your efforts.

Home Depot Canada gave a group of influencers and media a sneak preview of its Christmas products and trends—and Hardlines was there.

This year, the big box giant is showcasing three major lines or themes for the holiday season. The first is called “Gold Rush” and is characterized by a “very elegant and modern” look that uses black and gold as its feature colours. On one hand, it represents a modern sophisticated aesthetic while also offering vintage-style pieces that bring a nostalgic element to one’s decorating. And yes, that even includes an all-black Christmas tree!

“Quiet Beauty” is another theme, characterized by a more natural look with warm minimalism. Items in this line include metals featured in bows—both as tree toppers and as ornaments on their own—along with shatter-proof glass ornaments, and ornaments and accessories in a simple white.

Finally, the team at Home Depot Canada introduced “Crafted Cabin,” highlighted by a classic, nostalgic, red-and-green Christmas vibe. And picking up from the trend to big, bold decorations like the 12-foot skeletons it sells at Halloween, the retailer is featuring some oversized Christmas ornaments. These include an eight-foot nutcracker, a giant realistic Santa, and life-sized licensed characters including Minnie and Mickey Mouse and Minions—all in appropriate Christmas costumes.

PEOPLE ON THE MOVE

At Canfor Pulp Products, Kevin Edgson will be leaving the role of president and CEO on Oct. 31. The company says its board of directors is currently selecting Edgson’s successor.

DID YOU KNOW…?

… that the 2024 Hardlines Retail Report has now been released? This massive research breaks out the size and growth annually of the industry, identifying which retail sectors and which banners are winning and losing from year to year. It features more than 150 slides in a handy PowerPoint format. Click here for more info and order details—and remember, as a Premium Member (if you are subscribing to this newsletter, you are one!) you will get a big discount on the price!

RETAILER NEWS

Castle Building Centres Group has added Outillage Rioux GDB in Bedford, Que., to its ranks. Owner Eric Rioux operates the business, which is more than 50 years old, with his wife Lisa. Renovations to the location have begun, including a redesign of the store layout and an increase in square footage. The business is also eyeing the prospect of building a warehouse “in the near future” to support its LBM expansion.

Walmart Canada is investing an additional $92 million in pay increases for eligible supply chain hourly and frontline management and retail hourly associates. The compensation will include annual incentive bonuses and benefits coverage. Employees will receive free and confidential 24/7 virtual care, employee assistance programs, wellbeing programs through TELUS Health, and a 10 percent discount card for groceries and general merchandise.

BeautiTone has unveiled its 2025 Colour of the Year. The proprietary paint brand of Home Hardware Stores Ltd. has chosen “Midnight Flora,” a “vivid shade of red-purple” it describes as “moody and mysterious.”

Costco Wholesale Corp. reported Q4 sales of US$79.7 billion, edging up by 1.0 percent. Comp sales rose by 5.5 percent in Canada and 5.3 percent in the U.S.

W. W. Grainger broke ground last week on its 1.2 million-square-foot distribution centre in the Houston metropolitan area. The Hockley, Tex., facility is slated to open in 2026, employing a team of about 400 workers.

M-D Canada, a division of M-D Building Products, has announced a partnership with contractor and TV personality Bryan Baeumler. Together, Baeumler and the company will take to social media to educate industry professionals and installers on how to use Prova Tile Installation products. The campaign will focus on cost savings, increased efficiency, and building a reliable reputation.

Investment in U.S. construction edged down in August by 0.1 percent. On a year-over-year basis, construction spending for the month was down 0.2 percent. Investment in private construction projects fell by 0.2 percent, including a 1.5 percent drop in the single-family sector. (U.S. Commerce Department)

Understanding the market and balancing the books are important parts of running a business. But another part of a successful enterprise needs constant attention—and nourishing—namely, the people who work there.

That’s why this year’s Hardlines Conference (Oct. 22 and 23, Charlevoix, Quebec) will be a platform for learning about the issues and strategies for creating an effective workplace and getting the most out the people in that workplace. Pierre Battah is a workplace expert and award-winning author. He is a long-time workplace columnist for CBC/Radio-Canada, a TEDx presenter, and a former senior manager in HR. He holds an MBA and professional designations in HR, management consulting, and as a professional speaker. His book, Humanity at Work: Leading for Better Relationships and Results, is an international award winner.

In other words, he knows his stuff.

Battah will kick off the 28th annual Hardlines Conference on Oct. 22. But he will also do a full workshop for delegates on day two of the conference, exploring the challenges and hurdles that owners face as they work to keep up with the ever-changing nature of today’s workforce.

Another presenter at this year’s conference is inspiring for his exemplary achievements in the world of fitness and health. Hugo Girard (shown here, as though he needs any introduction!—your Editor and massive Hugo fan) is well known as a World Champion Strongman and wellness leader. As the founder of Hugo Strong and Hugo Nutrition, and spokesperson for several companies including BMR Group, Girard is a sought-after speaker who embodies a commitment to physical and mental health.

An important part of effective work is being recognized for one’s efforts. The importance of recognizing great retail is the reason we launched the Outstanding Retailer Awards more than three decades ago. The ORAs are Canada’s only national industry-wide awards program dedicated to celebrating the achievements of hardware, home improvement, and building supply dealers and their staff.

And they are an important part of the Hardlines Conference. At the end of day one, Oct. 22, we’ll host the ORA Gala Dinner, where dealers and managers from across Canada will be honoured for their extraordinary efforts as retailers, merchants, community leaders, and personal leaders.

The 28th annual Hardlines Conference will be a rich, information-loaded experience topped by networking with industry leaders from the retail, wholesale, buying group, and vendor segments of the industry.

This year’s Hardlines Conference takes place in Quebec’s scenic Charlevoix region on Oct. 22 and 23. As the key annual gathering point for top retail executives, leading dealers, and major vendors, it will provide tremendous networking and career opportunities. (Registration closes Oct. 4. Click here now to secure your seat at this important event!)

Home Hardware Stores Ltd. has introduced two Volvo VNR Electric trucks to its fleet. The trucks are the first zero-tailpipe emission vehicles to join the Home network. They will be used for last-mile deliveries from the company’s distribution centre in St. Jacobs, Ont., to stores within a radius of 100 to 150 kilometres.

The two Volvo VNR Electric 6×4 tractors deployed are equipped with a six-battery pack configuration, offering a range of up to 442 kilometres.

“This collaboration marks a significant step in reducing emissions and enhancing urban delivery efficiency,” said Matthew Blackman, managing director for Canada atVolvo Trucks North America. “By adopting these zero-tailpipe emission vehicles, Home Hardware Stores Ltd. is setting a new standard in the home improvement industry.”

According to a release from Volvo, the VNR Electric truck is well-suited for urban deliveries due to its lack of tailpipe emissions, in addition to significantly reducing heat, noise, and vibrations. The truck’s quiet operation minimizes noise pollution, which is particularly beneficial in urban communities served by Home Hardware’s stores.

Vision Truck Group, in Brampton, Ont., a certified electric vehicle dealer, supported Home Hardware in identifying the ideal configuration for the new trucks’ operations through the use of an Electric Performance Generator, a route-planning tool that enables fleet managers to maximize routing efficiency for electric trucks.

Home Hardware availed itself of funding through Natural Resources Canada and its Zero Emission Vehicle Infrastructure Program to help build the charging infrastructure.

The wholesale strategy of RONA inc. is getting a boost with continued investment in its affiliate dealer network. The affiliates have even got their own banner program. Introduced in November 2023, the new identity is designed to promote the dealers’ entrepreneurial side while capitalizing on RONA’s brand awareness. The new banner makes room to further identify the store’s own name and brand, using that store’s own colours and look. It was first rolled out at RONA Iberville, in Saint-Jean-sur-Richelieu, Que., the company has confirmed to Hardlines.

The company has assured its affiliates that the cost of the new signage will be covered by head office.

The first Ontario store to implement the new look is the RONA Manotick location in the southern suburbs of Ottawa. Dealer-owners Joe Reid, Ryan Austin, and Pat Butler held a grand opening earlier this month for the 14,000-square-foot store.

But expansion among affiliates is happening across the country. Only a few days before the Ottawa opening, the RONA store in Olds, Alta., had a grand opening of its own. Dealer-owners Garth and Charmaine Dagg and Sheldon Foss took over the store last January.

Another RONA affiliate dealer has purchased an existing store in Charlottetown, representing the introduction of the RONA brand to the province of Prince Edward Island. The business was acquired by an investment company, Terraine Capital, headed up by Adam Barrett, an Atlantic developer who already has three RONA stores in Nova Scotia.

The Charlottetown store is 33,000 square feet in size, with an indoor lumber and building materials section and a large outdoor lumberyard.

“With this new store, we are excited to meet the needs of both pro and DIY customers in Charlottetown, while expanding our footprint in Atlantic Canada,” said Barrett, adding that it’s important for the store to maintain strong community ties.

In Quebec, a RONA affiliate finished an expansion of their own. Last month, dealer-owners Richard Latreille and Nathalie Solomon celebrated the grand re-opening of their RONA Maloney store in Gatineau.

On the west coast, RONA has added a brand-new dealer. AMS Building Centre is in British Columbia’s Haida Gwaii (formerly known as the Queen Charlotte Islands). The business has served the islands for nearly 40 years. Mark Goetzinger had worked alongside his parents over the years before taking over earlier this year.

“Being part of the RONA network will allow our store to provide a consistent supply of excellent-quality products and to increase our overall offering so that we can better meet the needs of our customers,” said Goetzinger. “We are also confident that RONA’s outstanding distribution network and business development support will place us in a great position to grow our business in the future and gain market share.”

Sales at Quebec hardware stores remain modest but that’s not stopping retailers from gearing up to bounce back, La Presse reported this month. StatCan’s latest numbers indicate that July LBM and garden sales across Canada dropped by 1.4 percent, the largest decline among core retail categories.

Yet BMR Group is upgrading its DC in Boucherville, on Montreal’s South Shore. The co-op has signed new dealers in Quebec and Ontario this year, while an existing member in Quebec added a second location.

Meanwhile, Canac has begun work on a new DC in Drummondville. The privately owned retailer first acquired the site in 2019, opposite its existing warehouse in the Saint-Nicéphore district.

Construction of one building, weighing in at 432,000 square feet, was completed at the beginning of 2022. With the next phase of the project, Canac will continue to bolster support for its growth in the Quebec City region. In the summer of last year, managing director Martin Gamache confirmed in an interview with local paper L’Express that the automated warehouse would be complete within two years.

“We’re already feeling a slight boost from the recent interest rate cuts, which seem to have spurred an appetite for some residential projects to take off again,” Patrick Delisle, Canac’s marketing director, told the newspaper.

Both BMR and Canac are otherwise keeping mum about their plans for now. But Richard Darveau, president of the Quebec industry association AQMAT, said their instincts are sound against a background of rising needs for housing stock, an issue he predicts will loom large in the next federal election.

“Those people have every reason to believe that [sales levels] won’t remain so low,” he said. “Construction and renovations need to resume. I think they want to stay one step ahead of the competition.”

PEOPLE ON THE MOVE

ODL Inc. has named Daniel Custodio as VP of sales in Canada. Custodio will report to Scot Harder, the building products supplier’s VP of pro channel and custom sales. Prior to joining ODL, he held leadership positions at Cornerstone Building Brands. Custodio is a graduate of McMaster University’s DeGroote School of Business.

DID YOU KNOW…?

… that as a Premium Hardlines Member (thanks to your subscription to this newsletter), you have front-of-the-line access to this year’s conference coming up in only three weeks? That’s 20 percent off the regular price! For more information and to reserve your spot (registration closes this Friday, Oct. 4),
click here.

RETAILER NEWS

Home Hardware Stores Ltd. marked National Tree Day with the announcement of a new round of tree planting events in partnership with Tree Canada. During National Forestry Week and the month of September, 22 Home Hardware stores hosted events to enhance local green spaces. The stores include 13 in Ontario, three in Quebec, two in Manitoba, and one each in Nova Scotia, P.E.I., Saskatchewan, and Alberta.

Canadian Tire Corp. is opening four new Party City stores ahead of Halloween, the first expansion of the banner’s footprint since CTC took it over in 2019. The locations include two in Winnipeg, the chain’s first in Manitoba. In Ontario, new stores are coming to Ottawa (Kanata) and Kitchener. (See last week’s issue for more on the importance of Halloween season at Home Depot Canada!—your spooky Editor)

York Regional Police in the Greater Toronto Area have charged 16 people with thefts of more than $600,000 in retail merchandise. The arrests culminate the force’s Project Spartan, aimed against organized retail crime, and include the laying of a total of 1,538 charges. The Home Depot Canada and Ontario’s provincial liquor retailer were among the companies that cooperated in the investigation.

SUPPLIER NEWS

Ottawa-based Harris Computer has announced its acquisition of the company SE2 Inc., doing business as Alice POS. SE2, operating out of Sherbrooke, Que., launched its eponymous Alice POS software in 2016. Harris, a subsidiary of Constellation Software, is in turn the owner of Acceo Solutions. Alice POS, which offers cloud software designed for retail, will join the Acceo Home and Building Supply Industry Solutions business unit.

Sico and Dulux have released their respective Colours of the Year for 2025. Sico’s “Starry Night” and Dulux’s “Purple Basil” are both described as “rich, warm purple shades.” PPG Industries, the parent of the brands, expects purple shades like these to be a major trend in commercial and residential spaces next year.

West Fraser Timber has announced the indefinite curtailment of operations at its Lake Butler, Fla., sawmill by the end of this month. The company cited “high fibre costs and soft lumber markets” in making the decision. The move is expected to reduce West Fraser’s U.S. lumber capacity by approximately 110 million board feet.

Retail sales increased 0.9 percent to $66.4 billion in July. Sales were up in seven of nine subsectors, led by increases at motor vehicle and parts dealers. LBM and garden sales posted the largest decline in core retail sales, down 1.4 percent. Overall core retail sales, which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers, were up 0.6 percent for the month. (StatCan)

Half of Canadian small business owners have experienced fraud attempts, successful or otherwise, in the past year. That’s the finding of a report released by the Canadian Federation of Independent Business in partnership with Interac Corp. They say the small businesses affected have lost an average of $7,800. Email and phishing scams constituted the most common (85 percent) of the ploys.

Ahead of its 85th anniversary next month, RONA has announced that it will mark the occasion by consolidating its brand identity. It will phase out the Réno-Dépôt banner in Quebec, converting the 16 remaining stores under that banner to the RONA+ brand.

Two other stores, RONA L’entrepôt in Quebec City and RONA Home & Garden Winnipeg, will also move to RONA+.

Grand opening celebrations will be held in some of these stores on Oct. 10. That’s the day after RONA wraps its Connexia dealer gathering in Montreal. It’s also just four days after the date in 1939 when RONA’s precursor, Les Marchands en Quincaillerie, was established by a consortium of hardware stores in Quebec. Within a few years, it was under the direction of entrepreneurs Rolland Dansereau and Napoléon Piotte, from whose first names the business would later take the name Ro-Na.

The adoption of RONA and RONA+ banners as the retailer’s sole brand identity is just the latest paradigm shift for RONA, which has lived through a number of business models since 1939. In its early years, it was a loosely organized hardware buying group: until 1960, it wasn’t even incorporated.

In 1988, it merged with the building materials group Dismat, branching out into the LBM business. During the 1990s, as big boxes were on the rise, it opened its first RONA L’entrepôt location. Beginning in 2000, it started to expand beyond its home province. RONA made its first public offering in 2002, raising the funds for its acquisition of rival Réno-Dépôt the following year. Expansion through a series of acquisitions and dealer conversions continued as the company established itself as a national player.

U.S.-based Lowe’s Cos. took over RONA in 2016 but struggled to make sense of the Canadian business’s multi-banner strategy and dealer ownership models. Today, RONA is owned by Sycamore Partners, a New York private equity firm.

As it moves into celebration mode this fall, the company will be launching marketing campaign to familiarize consumers with the RONA+ brand. It will also offer activities as well as in-store and online promotions during the month of October.

With the breadth of outdoor living and seasonal products available at Home Hardware, this category aptly deserved the huge amount of floor space it took up at the retailer’s recent Homecoming market. Hardlines was on the scene at the event, which was held Sept. 12 to 14 at Toronto’s Enercare Centre and marked the company’s 60th anniversary.

Home Hardware continues to invest in and expand its range of products for the outdoor space, which also helps in providing new and innovative ways to support the dealers, who came from across the country to attend the market. Recognizing the importance homeowners place on outdoor living and enjoying their pools, patios and backyards, Home Hardware’s display at Homecoming showcased new trends and products in every related category, including outdoor cooking, furniture, décor, and accessories.

Reflecting the trends for this fall and 2025, neutral colours will attract customers’ eyes when they shop for seasonal furniture. Natural and neutral tones dominated the seasonal furniture landscape; earthy hues of sand, clay, and brown came through in furniture finishes, pillows, and cushions. Bright summery colours will still be present for those who prefer a bolder backyard look, and the Barbie trend—so prevalent at last year’s market—was still evident in pink Muskoka chairs.

Furniture designs ranged from modern to more relaxed. Modular pieces such as conversational sets will allow homeowners flexible and customizable setups. Bohemian hanging chairs continue to be popular. Bistro sets in neutral finishes will be ideal for quiet outdoor corners, porches, or patios.

Whimsical outdoor touches were also shown: “neon” flamingo lights, string lights, faux grass statues in the form of rabbits, and portable lanterns will offer inspiration to customers to decorate and get outdoors next season.

“The most exciting part about Homecoming this year is welcoming our dealers from across the country to celebrate our 60th anniversary,” said John Pierce, chief retail operations officer for Home Hardware Stores Ltd. “As we mark this milestone, the words of our founder Walter J. Hachborn come to mind: ‘We’re not in the hardware business. We are in the people business.’”

That attitude, Pierce said, pervaded the market. “Today, with everyone gathered together, you can really feel this sentiment come to life.”

What are the latest product trends? This is the question we get asked most when planning our annual Hardlines Conference. This year, we’ve gathered a panel of leading retail merchants on the Hardlines stage to confront this question directly—and we’re proud to announce the newest addition to the panel.

The 28th annual Hardlines Conference is being held at the spectacular Fairmont Le Manoir Richelieu, in the Charlevoix region of Quebec, from Oct. 22 to 23.

Our panel will feature some of this industry’s top merchants, with expertise in both LBM and fashion and décor products. Now, Rabia Dhanani, merchandise manager for millwork at Home Hardware Stores Ltd., has agreed to join us. An articulate negotiator with fresh ideas, she is helping guide assortments of LBM, millwork, and doors and windows for Home Hardware dealers nationally.

She will be in good company. The other panelists are:

• Kelvin Johnston, senior buyer for commodity lumber and panels at Castle Building Centres
• Shawn Ettinger, national hardware procurement manager for TIMBER MART
• Alex Burcham, senior category manager for plumbing, electrical, heating, and cooling at Orgill
• Natacha Laurin, category director, projects and appliances, for RONA inc.

Our moderator will be Sherri Amos, director of dealer support at Home Hardware Stores Ltd. A skilled presenter, Amos works with dealers across Canada and is familiar with their concerns and achievements on a daily basis.

The 28th annual Hardlines Conference takes place in Quebec’s scenic Charlevoix region from Oct. 22 to 23. As the key annual gathering point for top retail executives, leading dealers, and major vendors, it will provide tremendous networking and career opportunities. (Registration closes Oct. 4. Click here now to secure your seat at this important event!)

IMPORTANT NOTE: As a Premium Member (thanks to your subscription to this newsletter), you have front-of-the-line access to this year’s conference and registration that’s 20 percent off the regular price. For more information and to reserve your spot, click here.

While only a minor holiday on the retail calendar, Halloween continues to grow in importance each year as new products are added to store assortments. Take Target in the U.S.: it’s added 1,300 Halloween items to its shelves this season.

Here in Canada, The Home Depot has long recognized the potential of October’s spooky season. It recently held a promotional event in downtown Toronto to highlight some of the latest innovative—and downright frightening—products that consumers can purchase to dress up their Halloween experience.

Called “Nightmare on Queen Street,” the event featured a preview for media held on, wait for it, Friday the 13th. Konstance Sevastos, Home Depot Canada’s divisional product merchant, was on-site to give Hardlines a tour.

The big Halloween trends this year are, well, big, including Home Depot’s now infamous 12-foot skeleton, “Skelly,” which makes a big comeback this year with accessories to dress it up in a big way (enough with the oversized superlatives, already! —your more-or-less normal-sized Editor). This year, the towering pile of bones comes with its own dog, and different sets of scary eyes.

Through a partnership with Universal and Disney, the nightmarish display included characters from Star Wars such as Darth Vader and Storm Troopers, as well as Minions.

The general trend is to increase the fright factor, something that was enhanced thanks to technology. Animatronics helped make Home Depot’s witches and boogey men come to life—all exclusives to the retailer. Scary, kids!

(Click here and here to watch some scary animatronics in action.—Editor)

PEOPLE ON THE MOVE

ODL Inc. has named Daniel Custodio as VP of sales in Canada. Custodio will report to Scot Harder, the building products supplier’s VP of pro channel and custom sales. Prior to joining ODL, he held leadership positions at Cornerstone Building Brands. Custodio is a graduate of McMaster University’s DeGroote School of Business.

DID YOU KNOW…?

… that the Hardlines Retail Report is ready to make your marketing plans for 2025 way easier? Yep, this incredible piece of research quantifies the size of the industry and breaks out the sales and market shares of the country’s biggest players! Home Depot Canada, Home Hardware, RONA, and Canadian Tire are analyzed in depth, while all the key home improvement banners in Canada are assessed and measured. Plus: forecasts for the year ahead, all crammed into 140 PPT slides. Click here to order your copy today!

RETAILER NEWS

An accountant, mechanic, and lawyer have been running Thorndale Hardware, an Ace dealer in the southwestern Ontario community of the same name, for eight months. Its late owner, David Woods, bought the store in January to inspire entrepreneurship in his daughters. When he died suddenly in February, the four Woods sisters took over the shop.

BMR member Matériaux de construction Harry Rivest & Fils has acquired a new store in St-Calixte, Que. Olivier Moreau and Ross Rivest are adding the location to their existing store in Sainte-Julienne.

RONA has partnered with two Canadian NHL teams for the 2024-2025 season: the Montreal Canadiens and the Edmonton Oilers. The company, which has supported the Montreal Canadiens since 1993, is carrying on the tradition this year and will be its official game co-presenter on the Montreal-based RDS sports channel.

The Onion Lake Group of Companies, owner of the Castle location All Nations Building Supply in Onion Lake, Sask., has acquired T&L Custom Cabinets GP in Lloydminster, Alta. T&L has served the area since 1987. Among its specialties is the design of custom kitchens and cabinets.

TIMBER MART has announced Cathy Tétreault as its 2024 Local Leader of the Year. She will receive an $18,000 grant for her local community to help educate and advocate for youth. Tétreault was nominated by her local TIMBER MART store, Matériaux Audet in Quebec City, for her work as director of Maison des jeunes de Duberger.

Montreal’s RONA Quincaillerie Rachel is now RONA Séguin & Legault following its acquisition by new owner Jacques Ifrah. The store was founded in 1971 and the change came into effect in June of this year. In the coming months, Ifrah plans to undertake renovation and modernization projects to maximize the 2,000-square-foot sales area and add a small-truck delivery service.

Giant Tiger Stores Ltd. held the grand opening of a new location in Camrose, Alta. The 15,600-square-foot-store opened on Sept. 21.

Doman Building Materials has made a donation to the Red Cross Alberta Wildfire Appeal. The contribution supports relief efforts for communities impacted by the wildfires in Alberta. The program provides critical support, including emergency shelter, food, water, and medical assistance.

The annualized rate of housing starts fell by 22 percent in August to 217,405 units, down from 279,804 units in July. In urban centres, there have been 149,922 actual housing starts year-to-date between January and August. That compares to 143,229 for the same period in 2023, meaning actual housing starts are currently five percent higher this year. (StatCan)

The value of building permits surged 22.1 percent to $12.4 billion in July, rebounding from two consecutive monthly declines. Residential permits rose 16.7 percent to $7.6 billion thanks to a major increase in the multi-family sector. Single-family permits declined by 1.9 percent or $50.3 million. (StatCan)

Investment in building construction decreased 1.7 percent to $20.9 billion in July, following increases in May and June. Year over year, investment in building construction rose 7.0 percent. With declines posted in both the residential and non-residential sectors. Residential construction spending was down by 2.2 percent to $14.6 billion in July. Overall, single-family home investment decreased 2.2 percent million to $6.7 billion. (StatCan)

The Peak Group of Companies has named Jeff Kinnaird as CEO and president, effective Oct. 1. He succeeds Peak’s founder, John Gross (shown right), who is stepping away from day-to-day operations to take up the position of executive chair.

Kinnaird (shown left) was instrumental in Peak’s ascent. In 1998, Kinnaird was managing the Nanaimo, B.C., Home Depot, having started out as a lumber associate two years earlier. Peak was a Vancouver-based start-up selling holders for four-by-four posts, and Kinnaird was in search of a product that could withstand west coast weather. He took a chance and contacted Peak.

From that initial $50 order, Peak evolved into a major vendor-partner of Home Depot, which is the exclusive North American retailer of Peak’s home reno and outdoor living products. Peak’s products now number more than 1,000. “It’s a great brand, a great business, and a great connection,” Kinnaird told Hardlines.

Kinnaird’s own star also rose through the years. He went on to serve as president of Home Depot Canada from 2016 to 2020, then moved to Home Depot’s head office in Atlanta as executive vice-president of merchandising before leaving the company last year. His experience there makes him a known quantity to Home Depot’s partners at Peak as the two companies prepare to mark 25 years of their business relationship this December.

The incoming CEO points out that Peak is “well positioned” in the fast-growing private-label business. “Its strength is around innovation. Its strength is around creating value for the consumer and that helps establish the brand.” Peak’s emphasis on innovation, Kinnaird adds, “is what held my interest in Peak over all these years.”

Speaking to Hardlines, Gross was equally enthusiastic about the “great match.” Kinnaird’s “spirit for competition lines up well with Peak’s objective to win,” he said.

Home Hardware, Canada’s largest dealer-owned home improvement retailer, hosted its annual Homecoming event for dealers and vendors from Sept. 12 to 14 at the Enercare Centre in Toronto.

The ever-popular event, formerly called the Home Hardware Dealer Market, provided vendors and dealers with previews of the latest products and trends. It also served as an opportunity to highlight Home Hardware’s 60th anniversary.

This third Homecoming show in Toronto highlighted three particular categories: seasonal, small appliances/housewares, and the company’s own BeautiTone paint line. Home Hardware promised some exciting news on the latter soon.

Displays in the seasonal category showcased new colour trends for 2025. In everything from outdoor dining and bistro tables and chairs to conversational sets and hanging basket chairs, there is a definite trend towards browns and neutrals.

Small appliances and kitchen products were also featured. Home Hardware’s exclusive private label brand, Omni, displayed all things portable for heating, cooling, dehumidifiers, and electrical.

In the kitchen category, Mosaic brand cookware and bakeware were proudly showcased. What’s new for this brand is its move to a manufacturing location in Prince Edward Island.

“We’re really excited to bring dealers in and get those Canadian-made items in the stores,” said Home Hardware’s public relations assistant manager Clare Little. “That’s the Home Hardware charm. We’re a Canadian company, and we want to sell Canadian items.”

Kitchen designs and bathroom vanities exhibited high-end design looks—as well as wallpaper, which will also be trending next year. The displayed products featured a plethora of highly artistic patterns and finishes.

At its latest dealer convention in Chicago last month, at which the company celebrated its centenary, Ace Hardware in the U.S. unveiled a new store concept, ELEVATE³ Ace. A 13,000-square-foot model store for the Elevate³ concept was right in the midst of the show floor.

Calling it an “immersive store design,” Ace says it “marks a fundamental shift in the Ace store model” that “has proved to boost both the customer experience and drive store growth.” Ace says ELEVATE³ Ace represents a US$1 billion investment.

The new concept transforms a store, or the front of a store if it’s a building centre, with focused departments in four categories: paint, power, backyards and barbecue, and home preservation. It will be rolled out over the next five years.

“Elevate³ Ace is not just a new store format: it’s our vision to become famous for four things in the neighbourhoods we serve,” said John Venhuizen, Ace Hardware’s president and CEO, in a release. Focusing on its dealers’ strengths as local providers, the four home categories are considered destination categories that a local dealer can own, while differentiating them from their big box competitors. The new look puts those departments front and centre as customers walk in the store.

At the heart of the concept is the importance of making Ace stores not only places to get products and ideas, but destinations to connect for expert personal advice.

Here are the key features of the ELEVATE³ store model:
Premium brand showrooms. The new look puts a spotlight on strong national brands, especially ones that fall into the program’s central categories of paint, outdoor living, and power. These brands are showcased in their own departments, with aisles devoted to offerings that include Weber, Traeger, Big Green Egg, Craftsman, DeWalt, Milwaukee, EGO, and Stihl. The brand-name products are merchandised alongside adjacencies that offer a full assortment for each category.

Enhanced customer service. The new concept relies on the personal touch, focusing on delivering customer service, all the while staying on top of new and evolving trends in consumer shopping patterns.

Inspiring and stimulating store design. The flagship store model includes an outdoor space with a live goods display, as well as a grilling space for demos and events to create an aspirational backyard experience.

New assortments and features. Ace retailers will benefit from new product assortments and features designed to drive sales and enhance the overall consumer shopping experience.

“We believe in the power of local, and this initiative strengthens our community ties by creating experiential spaces that are not only places to shop but also places to connect,” Venhuizen added.

The Home Depot is tackling the growing problem of organized retail crime (ORC), calling it “a large-scale, multi-jurisdictional operation where criminals steal merchandise from a retailer with the goal of re-selling the stolen goods.” The Home Depot is tackling the growing problem of organized retail crime (ORC), calling it “a large-scale, multi-jurisdictional operation where criminals steal merchandise from a retailer with the goal of reselling the stolen goods.” The retailer has posted a video hosted by Scott Glenn, Home Depot’s vice-president of asset protection.

“It’s not the average person coming in and stealing one item and walking it out the door for personal consumption,” says Glenn. “It’s a well-organized orchestrated organization—not your typical opportunistic shoplifter.”

According to the U.S. Chamber of Commerce, ORC has caused more than US$125 billion in lost economic activity in that country. It has also triggered a loss of more than 650,000 jobs, affecting retailers of all sizes. Glenn says Home Depot is pushing for federal legislation to combat the problem.

In Canada, a similar trend has emerged. Retailers are taking increasingly creative steps to combat theft, but balancing security with customer service is a delicate act. Last fall, Toronto police launched an awareness campaign, saying that such crimes were becoming more frequent—and more violent. “These crimes are in fact costing all of us because they drive up the prices on products that we purchase on a regular basis,” Toronto Police chief Myron Demkiw said at the time. He claimed that an estimated two out of five retail crime incidents were violent in nature.

In Winnipeg, police increased their presence around storefronts last spring, in part out of concern for the danger that armed shoplifters can present to retail staff. That concern has some retailers turning to such measures as placing wheel locks on shopping carts, executing random receipt checks, and erecting metal or plexiglass barriers. And the move to self-checkouts has been walked back by many retailers, often due to the increase in thefts.

Theft from hardware stores has doubled in the past decade, according to data collected by AQMAT, the Quebec hardware and building materials association. AQMAT president Richard Darveau recently told Radio-Canada that tools, including power tools, are particularly appealing to shoplifters, along with anything containing copper.

Whereas someone who can’t afford groceries might once have stolen from a supermarket, “it’s even more profitable to steal something they don’t really need and resell it on platforms like Marketplace and Kijiji,” Darveau said.

In the U.S., some retailers have been forced to close certain locations as they were overwhelmed by theft. In May 2023, both Nordstrom and Whole Foods closed some of their stores in San Francisco, blaming crime and the city’s deteriorating downtown. One year ago, Target announced it would close nine stores, citing rising theft and violence against its workers in areas where those stores were located.

Glenn at Home Depot is pushing the U.S. government to get more involved. “What we’re advocating for now is the Combating Organized Retail Crime Act (CORCA), which is a federal bill to say, first and foremost, there is a crime when you cross state lines and sell stolen products. It would also help create more resources for investigation and prosecution.” The bill is currently before the U.S. Congress.

(The rise in retail theft, including ORC, is one of the key trends identified in the 2024 Hardlines Retail Report. It breaks out the sales, market shares, and sales forecasts of the key home improvement banners in Canada, conveniently packaged in 140 PowerPoint slides. Click here to order your copy today. And yes, as a Premium Member of the Hardlines Family you get a big discount on your order.—Editor)

PEOPLE ON THE MOVE

Leviton has announced the appointment of not one but two chief operating officers “to better align its resources with the company’s strategy and future growth,” the company said in a release. Effective mid-August, Bob Becker was promoted to COO of electrical and Ross Goldman was promoted to COO of network solutions. Becker was previous EVP and GM of the residential business unit. Goldman previously held the title of EVP and GM of the network solutions business unit.

DID YOU KNOW…?

… that the Hardlines Retail Report is ready to make your marketing plans for 2025 way easier? Yup, this incredible piece of research quantifies the size of the industry and breaks out the sales and market shares of your biggest customers—or competitors! Home Depot Canada, Home Hardware, RONA, and Canadian Tire are analyzed in depth, while all the key home improvement banners in Canada are assessed and measured. Plus: forecasts for the year ahead, ready-to-go in 140 PPT slides. Proprietary to Hardlines, this info is not available anywhere else. Click here to order your copy today!

RETAILER NEWS

Castle Building Centres Group has welcomed its newest member location in Quebec. Revêtements des Laurentides inc. serves the suburb of St-Eustache and surrounding area on Montreal’s north shore. Owner Jean-François Lapointe has operated the company since 2008 alongside his wife Catherine Cloutier, his brother Jean Philippe Lapointe, and his friend Olivier Girard. The business specializes in exterior siding, steel roofing, decking, and exterior railing. Under the Castle umbrella, it plans to add garage doors, exterior doors, and windows to its lines.

Canadian Tire Corp. has been recognized as one of the World’s Most Trustworthy Companies by Newsweek for the second year running. CTC was ranked as the most trustworthy Canadian retailer, one of just two Canadian companies (along with Pet Valu) to make the retail category. Newsweek, in collaboration with Statista, evaluated companies according to the criteria of investor, customer, and employee trust. Other retailers recognized include Tractor Supply Co. and Costco Wholesale Corp.

Dealer-owners Richard Latreille and Nathalie Solomon celebrated the grand re-opening of their RONA Maloney store in Gatineau, Que., on Aug. 22. Renovations over the past year have added about 4,500 square feet to the store, which now boasts a total sales area of some 12,000 square feet. It features an expanded bathroom and kitchen selection, including appliances, and more seasonal products and wood-burning stoves. A total of 1,000 new SKUs have been added.

Dollarama reported Q2 earnings of $285.9 million, up 18.6 percent from $245.8 million a year earlier. Revenues rose by 7.4 percent to $1.56 billion while comp sales increased by 4.7 percent. The Montreal-based discount retailer opened 14 new stores during the quarter.

Alimentations Couche-Tard is seeking talks with Seven & i Holdings after the Japanese convenience giant rejected Couche-Tard’s $38.5 billion acquisition bid. Seven & i, which operates the 7-Eleven banner, said Couche-Tard’s all-cash offer was not in shareholders’ interests and could create problems with competition regulations in the U.S.

Novik, Derby Building Products’ brand of stone siding and polymer shake siding, has partnered with building materials distributor Gentek. Through this collaboration, NovikShake and NovikStone will be available across all 22 Gentek locations. Based in Burlington, Ont., Gentek’s locations range from St. John’s, N.L., to Nanaimo, B.C.

Ledvance has renewed its licensing partnership with the Osram brand for lamps in general lighting. In addition, the licensing partnership will be expanded to include luminaires in general lighting outside of China. The new deal carries the trademark licensing partnership for general lighting lamps beyond 2026 and well into the next decade. Since 2016, Ledvance has been the exclusive licensing partner for the Osram and Sylvania brands in the field of general lighting.

The latest edition of Hardlines Dealer News hit inboxes last week. In this issue, we explore UFA’s new value-format store, Castle’s growing commercial business, and TIMBER MART’s own commercial channel. Hardlines Dealer News is monthly and it’s free: click here to subscribe now!

One of the main things delegates look for at the Hardlines Conference—aside from the great networking opportunities—is insights into the latest trends in products and customers behaviours. This year, we’ll deliver that in spades, by bringing the experts themselves.

The 29th annual Hardlines Conference is being held at one of Canada’s outstanding venues, Fairmont Le Manoir Richelieu, in the Charlevoix region of Quebec, on Oct. 22 and 23.

A panel of buyers from some of the country’s top retail home improvement groups is being assembled to share their tips and insights this year. Our panelists will include some of this industry’s top merchants, with expertise in both LBM and fashion and décor products. It’s their job to be on top of the latest product innovations and consumer tastes.

We’ve confirmed the following expert panelists so far:

• Kelvin Johnston is the senior buyer for commodity lumber and panels at Castle Building Centres Group. This buying group represents more than 300 dealer locations across the country. He keeps his finger on the pulse of changing LBM buying cycles and pricing to ensure best pricing for Castle’s dealers.
• Shawn Ettinger is national hardware procurement manager for TIMBER MART. As that group’s lead hardlines buyer, he uses his merchandising, sourcing, and product development skills to fulfil the hardlines needs for his group’s building supply and GSD dealers nationwide.
• Alex Burcham is the senior category manager at Orgill, Inc. He oversees plumbing, electrical, heating, and cooling for the giant North American hardware wholesaler. With a keen understanding of the styles and trends driving these categories, he brings valuable insights into the areas of product cost, freight cost, and payment terms.
• Natacha Laurin is category director, projects and appliances, at RONA inc. As part of RONA’s buying team that works on behalf of its affiliate dealers, Laurin is an expert in the categories of paint, flooring, kitchen and bath, décor, lighting, and appliances.

Each of these individuals is a top merchant for their respective retail organizations, which together represent some 2,500 hardware and home improvement dealers nationwide. The panel will be hosted by Sherri Amos, director of dealer support at Home Hardware Stores Ltd. A skilled presenter, Amos works with dealers across Canada and is familiar with their concerns and achievements on a daily basis.

If you’ve never been to the Hardlines Conference, make this the year you join us. As the key annual gathering point for top retail executives, leading dealers, major vendors, it will provide tremendous networking and career opportunities.

IMPORTANT NOTE: As a Premium Member (thanks to your subscription to this newsletter), you have front-of-the-line access to this year’s conference and registration that’s 20 percent off the regular price. For more information and to reserve your spot, click here.

TIMBER MART has announced some changes in its executive ranks. John Morrissey (shown left), long-time stalwart of the LBM scene in Atlantic Canada, will leave his post as vice-president of TIMBER MART by the middle of next year. He plans to engage in residential development opportunities with family members in the Halifax area. Long-time TIMBER MART distribution exec Jeff Campbell, formerly director of operations, was named vice-president of distribution at the group, in Morrissey’s stead, on July 15.

Morrissey has worked in the LBM industry for 42 years, commencing work at Dartmouth Building Supplies, in Nova Scotia, in 1982. In 2005, as president and COO of Award Group, he merged that (then) Atlantic buying group with TIMBER MART and Homecare Building Centres, an LBM buying group in Ontario, to form a national organization. Shortly thereafter, he spent three years as GM Atlantic Canada of AFA Forest Products before rejoining TIMBER MART in 2010.

“He’s been an absolutely excellent part of the team,” Bernie Owens (shown right), president and CEO of TIMBER MART, told Hardlines. “His decisions are based on what’s best for the dealer. He’s always thinking about the dealer, about what’s best for our member shareholders.”

Of Jeff Campbell, Morrissey’s replacement as vice-president of distribution, Owens said, “Jeff has really proved himself. I have full confidence in his abilities and his commitment to our company.”

Asked what has changed the most about the building supply industry in his more than four decades in it, Morrissey said technology. “And Bernie’s put us in a good position with it, in terms of cybersecurity. It wasn’t even a thing about 10 to 15 years ago—and now you’ve got to be watching every transaction you do.

“But I do think that, from a base perspective, it’s still a person-to-person business. Our industry is still based on personal relationships—more than other industries… That hasn’t changed. That’s still the most important part.”

“I am very grateful to the industry, and to the dealers and the suppliers—the partnerships we’ve gained. Quite honestly, most of my best friends in the world are dealers—and people that I’ve worked with and I feel grateful for their friendship.”

Federated Co-operatives Limited (FCL) has joined the ranks of retailers opening value-based storefronts across Canada. In partnership with Otter Co-op, FCL opened the inaugural Co-op Essentials store in Surrey, B.C., in June. The grocery outlet features Co-op branded products and everyday staples.

“FCL is proud to have partnered with local Co-ops to design this new concept,” said Rick Fernandes, FCL’s vice president of consumer products. “What makes Co-op a different kind of business is that each local Co-op and their community are distinct, and we want to celebrate that. This new format allows us to extend the Co-op food offering to new customers and communities and provide everyday savings to the consumer.”

Fernandez noted that, unlike conventional Co-op stores, Essentials will have a smaller footprint. He added that the new stores will deliver a unique shopping experience in an engaging store environment designed to facilitate customers’ access.

“Otter Co-op is excited to bring Co-op Essentials to the Cloverdale community,” said Jack Nicholson, CEO of Otter Co-op. “This new format is designed to understand and quickly adapt to customers changing lifestyles to meet their unique needs.”

Other retailers have taken similar steps to provide shoppers with smaller, more targeted shopping experiences. Beginning this month, Loblaw is piloting discount stores under the “no name” banner in three Ontario markets: Windsor, St. Catharines, and Brockville. The stores offer a targeted assortment of budget-friendly products.

A recent Deloitte report titled “The Retail Evolution’s Great Acceleration” found that the financial fallout of the pandemic has more consumers seeking convenient shopping alternatives. The report noted that before the pandemic many retailers faced challenges such as increasing debt burdens, moderating revenue growth, compressing margins, increasing SG&A, and slowing asset turnover.

In response, many retailers have pivoted to offer store-within-a-store shopping experiences. Last year Hudson Bay announced it would add Zellers pop-ups at all remaining store locations across Canada, offering a limited selection of discount merchandise under the nostalgic moniker.

It’s expected that more retailers will launch value-based stores across Canada as the retail industry moves towards intentional or ‘slow shopping’ with retail spaces that focus on cost and value and away from impulse buying.

Canadian Tire Corp. continues to push its private-label offerings as an integral part of its growth strategy. Owned brands currently account for 39 percent of product sales, closing in on the target of 43 percent, which the retailer aims to reach by year’s end.

“Our merchant teams continue to adapt to a cautious discretionary demand environment,” CEO and president Greg Hicks told analysts last month on an earnings call. “This is why we are leaning into essentials through our privileged owned-brand capabilities and key businesses like auto service.”

Even as inflation obliged CTC to slow down the pace of product launches last year, its goal hasn’t changed: to increase the share of private-label products in its customers baskets.

“A bit of that you can do through driving more sales of what you have,” Bobby Singh-Randhawa, senior vice-president of consumer brands, told The Globe & Mail early this year. “And some of it is going to be, we’re going to continually add product where it makes sense.”

In addition to its house brands, CTC is leaning on sales to its loyalty customers.

“Starting with Triangle Rewards, our Q2 loyalty sales were more resilient than non-loyalty sales, and [electronic Canadian Tire Money] redemption was up more than eight percent over last year, continued proof of the appeal of Triangle Rewards,” Hicks said last month.

In May, CTC’s Max Stack Event promotion allowed consumers to combine offers across the Canadian Tire, Mark’s, and Sport Chek banners and multiply their savings. Hicks said, “it was the first time we’ve coordinated a loyalty campaign of this magnitude across our multi-category banners, further establishing Triangle as the strategic system that binds our retail businesses together.”

Nearly 75,000 new users signed on to Triangle Rewards ahead of the event, he added, of whom 40 percent “remained active purchasers” after its conclusion. Growth in Triangle Rewards was one of three “points of leverage” for the fiscal year, along with “maximizing value from our existing assets, and driving operating leverage.”

PEOPLE ON THE MOVE

LP Building Solutions’ new VP of oriented strand board (OSB) sales and marketing is Jeremy Sellers, a 15-year veteran of the building products industry. Sellers started his career as product specialist at Wolf Home Products, where he was SVP of sales since 2022. His new role will include oversight of the company’s LP Structural Solutions portfolio.

DID YOU KNOW…?

… that the Hardlines Retail Report is ready to make your marketing plans for 2025 way easier? Yup, this incredible piece of research quantifies the size of the industry and breaks out the sales and market shares of your biggest customers—or competitors! Home Depot Canada, Home Hardware, RONA inc., and Canadian Tire are analyzed in depth, while all the key home improvement banners in Canada are assessed and measured. Plus: sales forecasts and retail trends for the year ahead, all crammed into 140 PPT slides. Proprietary to Hardlines, this info is simply not available anywhere else. Click here to order your copy today. (And yes, as a Premium Member of the Hardlines Family you get a big discount on your order!)

RETAILER NEWS

The RONA Foundation has launched its second “Home Sweet Home” fundraising campaign. Its goal, says the company, is to “to revitalize living environments or facilitate access to housing for Canadians in need.” The campaign will run until Sept. 30 in all RONA inc. corporate stores, as well as in participating distribution centres and affiliated stores.

Lowe’s has announced the renewal of its contract with the National Football League in the U.S. for the 2024-25 season and the continuation of its longstanding partnership with the Carolina Panthers and Dallas Cowboys. This is the retailer’s sixth consecutive renewal of the partnership.

Gypsum Management & Supply, based in Tucker, Ga., has acquired R.S. Elliott Specialty Supply. The Florida-based stucco and exterior insulation and finishing systems supplier is a regional distributor servicing markets across the state. GMS also posted its first-quarter results recently, with adjusted earnings of US$77.6 million, down from $103.2 million. Sales of $1.4 billion represented a 2.8 percent increase from the comparable period of last year.

Costco Wholesale Corp. has received approval for the construction of a 160,000-square-foot store in the west end of Regina, its second in Saskatchewan’s capital. Costco’s other Regina location, near the Sakimay First Nation reserve, opened its doors in 2018, replacing a smaller store.

Loblaw has concluded a test project allowing cashiers to work while seated, according to Retail Insider. The parent of the Loblaw, Provigo, and Real Canadian Superstore banners confirmed in a statement to the magazine that it had “piloted a four-month program in 10 of our stores across the country that provided cashiers with the option to sit.” Loblaw wound down the experiment in early August and is now gathering feedback.

L.L. Flooring, formerly known as Lumber Liquidators, the U.S. flooring retailer, has filed for Chapter 11 bankruptcy, at the same time announcing it will close about 25 percent of its 400 stores nationwide.

Unifor has applied to the Ontario Labour Relations Board to represent workers at Walmart in Mississauga to form a union in their workplace. Unifor is Canada’s largest union in the private sector, representing 315,000 workers. If the cards submitted by Unifor represent at least 40 percent of the eligible workforce at a facility, a vote will be called within five business days.

All Weather Windows is rebranding after nearly 50 years to become All Weather At Home. The company describes the move as “part of a broader effort to modernize its look and position the company for future growth, supported by the brand architecture of the recently formed All Weather Group.”

Theft from hardware stores has doubled in the past decade, according to data collected by AQMAT, the Quebec hardware and building materials association. AQMAT president Richard Darveau told Radio-Canada that tools, including power tools, are particularly appealing to shoplifters, as is anything containing copper.

The latest instalment of our podcast series What’s In Store is live! In this episode, Hardlines president Michael McLarney takes us behind the scenes of the creation of the 2024 Hardlines Retail Report. Find out how we gather our data, why it matters, and what we forecast for the coming year in the industry. Sign up now to get updates about the latest free podcasts in your inbox!

It’s a great way to learn what the best retailers in this industry are doing to win. It’s an important platform for finding out what’s new in hardware and home improvement retail. It’s a valuable opportunity to meet and network face to face with key dealers and retail executives who make up this industry.

Oh, yeah, and it’s a heck of a lot of fun.

These are just some of the reasons why people attend the Hardlines Conference every year. They help explain why so many familiar faces return year after year. We invite you to become part of this group of forward-thinking individuals who want to make their companies—and themselves—better through learning and knowledge.

The 29th annual Hardlines Conference is being held at one of Canada’s outstanding locations, Fairmont Le Manoir Richelieu, in the Charlevoix region of Quebec, from Oct. 22 to 23.

Just look at the lineup of speakers we have for you this year:

• Michelle Chouinard-Kenney, CEO of Gibson Building Supplies, a chain of yards throughout southern and central Ontario that sells roofing and related materials.
• Alain Ménard, vice-president at RONA inc., who heads up the affiliate dealer division and will explain how RONA is investing in independents.
• Charles Grégoire-Béliveau, vice-president merchandising at BMR Group, will discuss how the Quebec-based wholesaler and buying group is rolling out services and support for dealers in new markets.
• Jason Tasse, president and CEO of Lee Valley Tools, the innovative head of a very innovative niche hardware and tools company.
• Heléne Loberg, sustainability manager for IKEA Canada. We are thrilled to have IKEA join us this year: the company’s dedication to sustainability goes way beyond lip service.
• Richard Darveau, president of AQMAT and head of “Well Made Here.” His message about the importance of buying Canadian will resonate with dealers and vendors alike.
• Pierre Battah, nationally recognized HR advisor and workplace expert. This guy rocks. Want to hear about how best to take care of your people? Pierre will keep you riveted.
• Sherri Amos, director of dealer support, Home Hardware Stores Ltd., will moderate a panel of retail merchants from some of this industry’s top retail groups. Not to be missed.
• Peter Norman, vice-president and chief economist at Altus Group, our favourite housing and numbers expert—and truly one of the country’s top housing economists.

If you’ve never been to the Hardlines Conference, make this the year you join us. As the key annual gathering point for top retail executives, leading dealers, major vendors, it will provide tremendous networking and career opportunities. For the first time, we’re offering simultaneous translation in English and French.

You will save money as a Premium Member. Thanks to your subscription to this newsletter, you have front-of-the-line access to this year’s conference and registration that’s 20 percent off the regular price. For more information and to reserve your spot, click here.

United Farmers of Alberta opened a new UFA Farm & Ranch Supply store and Cardlock on Aug. 23. It’s located in Gasoline Alley West just outside the city of Red Deer, making it accessible for highway traffic in the area.

This outlet replaced an existing store nearby. That store remained open during the construction of the new location, closing its doors when the grand opening took place at the new store. UFA has been operating in Red Deer since 1961.

The new location features a 16,000-square-foot store with an expansive yard, a chem shed on site, and a three-bay drive-through warehouse. The cardlock features state-of-the-art high-speed pumps offering both clear and dyed fuel, including UFA’s own premium diesel fuel, Dieselex. This brings the number of Red Deer UFA cardlock locations to four.

UFA considers this newest project a powerful example of how the
co-op reinvests in the communities where members live and work. UFA is also giving back to the areas where it does business through a community investment program. In Red Deer, UFA supports Ronald McDonald House Charities and UFA said it would match all cash donations made on site at the UFA grand opening event, up to a maximum of $5,000.

“We look forward to opening the doors to our newest UFA location in the heart of the Red Deer community and continuing to deliver exceptional customer service that goes above and beyond,” said UFA president and CEO Scott Bolton. “It’s what sets our co-operative apart from our competitors.”

As the industry continues to wade through a sluggish time, Lowe’s Cos. reported in August that its second-quarter sales were down 5.6 percent. Like its rival Home Depot, which reported a week earlier, it was impacted by interest rates and consumer hesitancy around discretionary spending. Revenues took a hit from high borrowing costs, falling to US$23.59 billion.

Same-store sales for the quarter declined by 5.1 percent, a larger drop than the 4.43 percent expected by Wall Street. The retailer however reported positive comps in pro sales and e-commerce. Earnings fell by 10.1 percent to $4.10 per share, topping estimates of $3.97 per share.

Contractor and loyalty customers were critical to Lowe’s performance in the quarter. “We’re very pleased with our MyLowe’s Rewards loyalty program which just launched nationwide in March,” CEO Marvin Ellison said on an analyst call.

“Through this program, we’ve learned more about our customers’ lifestyle and purchasing trends, which will allow us to curate meaningful offers for them now and in the future.”

Joseph McFarland, executive vice-president of stores, said, “We continue to gain momentum with our core small-to-midsize pro customer as we delivered mid-single digit positive pro comps this quarter,” stressing the importance of the smaller contractor to the company. “The recent investments we’ve made in jobsite delivery and high-velocity pro SKUs are paying dividends, making easier for us to fulfill larger orders and quickly replenish inventory within our store.”

For William Boltz, EVP of merchandising, Lowe’s strong pro sales are evidence that “our efforts to transform the pro customer experience are working.” According to him, growth in comp sales of building materials was “driven by continued growth in pro across all building materials subdivisions.”

Lowe’s private labels also played a key role, said Boltz. “In tools, we’re expanding our collection of private-branded Kobalt tools with a 24-volt paint sprayer, multi-material cutter, and finish nailer.”

In summing up, Ellison was cautious but upbeat, saying the “core drivers of our business remain strong,” adding that “we remain optimistic about the medium- to long-term outlook of the home improvement industry.”

Last week, Hardlines went south to attend the Independent Home Improvement Conference in Marco Island, Fla. The event was presented by the North American Hardware and Paint Association (NHPA), in partnership with The Hardware Conference.

About 800 dealers from across the U.S. were in attendance. In addition, some Canadian dealers were there, including a contingent of Home Hardware dealers from Canada. They joined the conference, along with dozens of suppliers, many of whom had exhibition space on the conference floor.

The biggest news from the conference was that Joel Pletch of Walkerton Home Hardware in southwestern Ontario was the Canadian recipient of the NHPA’s Young Retailer of the Year award. Under his guidance, the store saw big increases. These included 426 percent growth in the store’s tool category and a 300 percent increase in overall store transactions—all from a store that’s only 3,300 square feet in size. Pletch was store manager when he got the news of the award in the spring. Since then, he has also become owner of the store.

The first day, Aug. 27, featured a series of information seminars from sponsors, including hardware distributor Orgill. Day two featured a series of breakout sessions and keynotes. Themes included effective marketing on a shoestring budget and how to keep good staff and cultivate top talent.

A keynote by business expert Al Comeaux (shown here) focused on how to master and implement change. Comeaux said business history is strewn with the long line of failed companies. They may have had an effective strategy and execution, but the winning companies back that strategy and execution with a mindset. “The attitudes of the company’s leaders are what set the winners apart.”

The mood at the conference and the prospects for dealers looking forward were summed up by Orgill CEO Boyden Moore. In conversation with Hardlines, he said that indicators such as falling interest rates are good signs for the industry.

“We think that’s good news. The challenge now is to make sure your business is ready for the good times. This is important,” Moore said. “We see good things ahead. Things are going to get better.”

PEOPLE ON THE MOVE

Simpson Strong-Tie has promoted Scott Lang to the newly-created role of VP of market development for residential digital solutions. Lang has been with Simpson Strong-Tie for seven years, most recently as technology sales manager for national builder/pro supply.

Stanley Black & Decker has appointed Deborah Wintner as SVP and chief human resources officer (CHRO). Wintner, previously SVP of HR operations and CHRO for tools and outdoor, is now part of the executive team. In her new role, she reports to CEO and president Donald Allan, Jr., and succeeds John Lucas.

DID YOU KNOW…?

… that you can register now for this year’s Hardlines Conference? The 29th annual Hardlines Conference is being held at the Fairmont Le Manoir Richelieu, in the Charlevoix region of Quebec, from Oct. 22 to 23. For more information and to reserve your spot,
click here!

RETAILER NEWS

A RONA Inc. affiliate dealer has purchased an existing store in Charlottetown, representing the introduction of the RONA brand to the province of Prince Edward Island. The business was acquired by Adam Barrett of Terraine Capital, a property development and investment company that already has three RONA stores in Nova Scotia. The latest store is 33,000 square feet in size, with an indoor LBM section and a large outdoor lumberyard.

Matériaux Pont-Masson celebrated its 45th anniversary with a private event on Aug. 15. More than 500 guests joined the BMR member’s founding family, Monique, Richard, Éric, and Stéphane Bailey. The event featured a sale for contractor clients and anniversary festivities.

The Home Depot launched its 2024 Halloween lineup online last month. “This year we increased our realism, created some impressive, licensed [NBCUniversal] characters and even brought back some fan favorites,” Lance Allen, senior merchant of decorative holiday, said in a release. “Skelly,” the perennially-popular 12-foot skeleton, is also back, complete with a “haunted” accessory kit that includes a wig.

Costco Wholesale Corp. has received approval for the construction of a 160,000-square-foot store in the west end of Regina, its second in Saskatchewan’s capital. Costco’s other Regina location, near the Sakimay First Nation reserve, opened its doors in 2018, replacing a smaller store dating to 1993.

Loblaw Cos. Ltd. is rolling out a new concept of value-based “no name” stores this month in three Ontario markets: Windsor, St. Catharines, and Brockville. The no name store will have lower operating costs and carry only a targeted assortment of products. The company plans to keep costs down by shortening hours, offering limited selection, no refrigeration, and reduced logistical costs.

Luxury banner Perigold, which falls under Wayfair Inc.’s brand portfolio, announced that it has plans to open its first physical retail store. The first opening is slated for 2025 in West Palm Beach, Fla., within the CityPlace shopping centre. The store’s total square footage will be nearly 30,000 over two floors.

Severe storms across southern Ontario damaged a Home Hardware in Ayr, Ont., outside Cambridge, late last month. Environment Canada issued a region-wide tornado warning that morning and staff were quick to respond, moving customers to safety. According to a statement from Waterloo Regional Police, the roof of the store was partially torn off. The business was evacuated, and all employees and customers were able to exit safely. Earlier in August, the Home Hardware store in Jasper, Alta., was destroyed by the wildfires in that area.

PrimeSource Brands has acquired Cobra Anchors, the Montreal-based fastener maker. Cobra has over 1,000 SKUs of hollow-wall, universal, and masonry anchors. The transaction is PrimeSource’s fifth acquisition since partnering with investment firm Clearlake Capital Group in December 2020. Financial terms were not disclosed. PrimeSource Brands owns a portfolio of branded products including Grip-Rite, Pro-Twist, Top Knobs, Hardware Resources, Atlas Homewares, North Pointe Cabinets, and Wolf Home Products.

Retail sales declined by 0.3 percent in June from the previous month, dragged by lower automotive sales. LBM and garden sales however bucked the trend with a 0.6 percent increase. Seven provinces logged declines, with the steepest in Ontario. Core retail sales, which exclude fuel and automotive categories, rose by 0.4 percent. (StatCan)

The annual rate of inflation fell to 2.5 percent in July, signalling a possible interest rate cut in September. The Consumer Price Index (CPI) rose 2.5 percent on a year-over-year basis, the slowest rate of increase since March 2021, and down from a 2.7 percent gain in June 2024. On a monthly basis, the CPI rose 0.4 percent in July, after falling 0.1 percent in June. (StatCan)

NOTED

The latest instalment of our podcast series What’s In Store is live! In this episode, Hardlines president Michael McLarney takes us behind the scenes of the creation of the 2024 Hardlines Retail Report. Find out how we gather our data, why it matters, and what we forecast for the coming year in the industry. Sign up now to get updates about the latest free podcasts in your inbox!

The latest addition to Castle Building Centres Group is a brand-new company, but with a familiar face at the helm. Encore Drywall Material Supplies, which is weeks away from being operational from two locations, has joined Castle’s commercial division, Commercial Building Supply (CBS).

Doug Skrepnek is a partner at Encore Drywall, aptly named as he was formerly the head of Watson Building Supplies in Vaughan, Ont., and CEO of the buying group it belonged to, WSB Titan. WSB Titan was sold to Georgia-based Gypsum Management & Supply (GMS) in 2018.

From there, Skrepnek also got involved in other businesses, including Drain-Tite Industries, which provides waterproofing, insulation products, and installation services for residential and commercial construction.

But Drain-Tite has, Skrepnek notes, the same customers as the GSD world he comes from.

The Canadian landscape has seen the entry of major U.S. dealers over the past decade. GMS and the Titan acquisition was only the beginning of an ongoing growth strategy for GMS that has since included dealers like Rigney Building Supplies in Kingston, Ont., Jawl Lumber on Vancouver Island, and most recently, Yvon Building Supply Inc. That company, which sells drywall, insulation, steel, and ceilings from seven locations across Ontario is a major GSD in that province—with some $200 million in revenues.

Another major U.S. company is Foundation Building Materials, based in Santa Ana, Calif., with more than 300 locations, including almost 30 in Canada. FBM made its entry into Canada even earlier than GMS when it purchased Calgary-based Allroc from Superior Plus, a Toronto chemical firm, in 2016.

With this kind of GSD consolidation occurring, Skrepnek feels there is room for a GSD that can maintain a personal connection with its customers, something he feels can be lost in a bigger company. In a letter to vendors, he laid out his vision: “We believe that the importance of relationships both up and down the channel has been somewhat lost and diluted to a more transactional exchange and our mission is to go back to the days where loyalty was long-lasting, and a commitment meant everything.”

Speaking with Hardlines, Skrepnek added to that: “More dealers are no longer owner-operated businesses and, truth be told, I feel a lot of that personal contact has been lost.”

Skrepnek says the decision was made recently—and quickly—to re-enter the drywall business. With his business partners, he acquired one location from CSR Building Supplies, a dealer with two outlets. The outlet in Concord, Ont., immediately north of Toronto, was purchased while CSR’s other location, in Barrie, Ont., along with its tool business, were not part of the deal. In addition, Skrepnek is working on a greenfield location in Trenton that will be open next month.

CSR was already a Castle member, and Skrepnek saw the value of remaining with that group. In fact, Castle president and CEO Ken Jenkins worked with Skrepnek at CGC before Jenkins left to become president of Castle in 2007, so they have a connection that goes back decades.

Skrepnek has a strong sense that his roots in the industry will give him the credibility and connections to make a fresh start. Recently, he spent a week buying up nine new trucks to support the two stores. “I want to make sure we have a fleet that can handle our projected growth,” he says.

He expects the partnership with Castle to provide good growth for that group’s GSD business through CBS—and hints at further growth across the country over the next two years. “I’m excited about the future and we’ll be open in 30 days,” Skrepnek adds.

Ken Jenkins recognizes the growth opportunities for commercial dealers as Canada increases its commitment to more housing over the next five years. The president and CEO of Castle Building Centres Group recognizes that the strength of his organization still rests firmly with the group’s traditional building supply dealers. But the addition of a new member to Castle’s GSD side, Commercial Building Supply, represents a tremendous growth opportunity for that division.

That potential is underscored by the fact that the new addition, Encore Drywall Material Supplies, is owned by Doug Skrepnek (see this week’s top story.—your well-read Editor). Skrepnek looms large in the GSD world as the former owner of Watson Building Supplies and CEO of its then-parent group, WSB Titan.

Jenkins points out that the role of the traditional LBM dealer is changing in the big urban centres. In those major markets, commercial construction relies more and more on specialized suppliers, dealers that offer narrow assortments of products such as roofing, drywall, and foundation products. He says there is a growing distinction between traditional yards and GSDs. “They are two different businesses.”

However, he sees a future for both models in parallel. “Castle remains committed to bricks-and-mortar LBM generalists, but the commercial piece allows us penetration into the large urban markets,” he says. “There’s significant volume to be had in those larger urban markets.”

Jenkins expects the commercial industry to experience even more consolidation in the future, which means Castle is well-positioned for growth on the CBS side as Canada ramps up for increased housing in the coming years. And the deal with Encore Drywall Material Supplies fits right into that strategy.

“There’s a win-win opportunity for Castle and Encore down the road,” says Skrepnek.

Canadian Tire Corp. reported Q2 earnings of $198.8 million, or $3.56 per diluted share, up from $99.4 million or ($1.76) a year earlier. Revenues fell to $4.13 billion, from $4.26 billion in the previous Q2. Comp sales declined by 4.6 percent, down 5.6 percent at the Canadian Tire banner and 0.8 percent at SportChek.

Consolidated comparable sales were down 4.6 percent. The consumer demand environment remained challenging, compounded by cold and wet weather, contributing to sales declines in all regions outside Atlantic Canada. Canadian Tire Retail (CTR) sales were down 5.5 percent and comparable sales were down 5.6 percent, compared to growth of 0.1 percent in Q2 2023. The top performers for CTR were automotive maintenance, auto parts, and toys. The retailer continues to push its private labels, with owned brands now accounting for 39 percent of product sales.

Greg Hicks, president & CEO of Canadian Tire Corp., acknowledged the pressure on Canadian consumers in a call to analysts last week. However, that pressure differs by region and demographic. Customers in the country’s largest cities (Vancouver, Edmonton, Calgary, Toronto, Ottawa, and Montreal) “have tightened their belts considerably, more than most other Canadians.” Those cities, which represent about one-third of Canadian Tire’s total sales, have, said Hicks, “trailed the rest of the country by about four percent in the first half of the year.”

The company continues to make gains with its loyalty customers, those who shop online and in-store with Canadian Tire’s Triangle points card. Loyalty sales outperformed non-loyalty sales, with record penetration rates at each banner, the company reported. Incremental Triangle promotions across CTC banners and its partnership with Petro-Canada partnership were competitive differentiators.

“I’m also pleased to report that more than a quarter of a million Canadians have now linked their Petro-Points and Triangle Rewards accounts,” said Hicks. “More importantly, these linked members spent nine percent more across our retail businesses than in Q2 of last year, demonstrating the value for everyday needs that this partnership provides.”

During the quarter, Canadian Tire continued its efforts to integrate its customers’ shopping experience through its “Better Connected” strategy. Efficiencies included more in-store technology to improve access to assortments. That was done by upgrading or replacing another 18 Canadian Tire Retail stores.

The Home Depot’s latest sales figures were boosted by its acquisition this year of SRS Distribution. The contractor supplier garnered about $1.3 billion in revenues for North America’s largest home improvement retailer. Still, the company is taking a cautious tone at a time when discretionary spending is softening.

Home Depot’s sales for the second quarter came to $43.18 billion, up 0.6 percent from the comparable period of fiscal 2023 but below expectations of $43.79 billion. Adjusted earnings of $4.67 per share exceeded the estimated $4.52 per share but fell short of the previous Q2’s $4.65.

Same-store sales fell by a greater than expected 3.3 percent. In the U.S., they were down by 3.6 percent. Still, Home Depot performed better than it had in the previous quarter, when higher borrowing costs and a tardy spring contributed to a 2.3 percent downturn in sales.

“Pros outperformed the DIY customer, but both were negative for the quarter,” Billy Bastek, executive vice-president of merchandising, noted on an earnings call. “We saw positive growth with pros who engaged in our Pro Xtra program, deliveries to the jobsite, and our B2B website.”

“In paint, we continue to see the benefits of the investments we are making around our products and our fulfilment options, including our in-store service and jobsite delivery capabilities, with the pro who paints driving continued share gains in the quarter.”

The strength of HD Supply, another subsidiary, in maintenance, repair, and operations has complemented Home Depot’s appeal to the contractor customer, solidifying its position in that market. Richard McPhail, executive vice-president and CFO, told analysts that “HD Supply has had an exceptional track record as of late, even penetrating through to generate positive sales growth in the second quarter.”

PEOPLE ON THE MOVE

Hardware + Building Supply Dealer magazine has unveiled its list of the industry’s Top Women of 2024. Among them is Canada’s own Sarah Hounslow, president of Burlington Merchandising & Fixtures. Along with the other chosen professionals, she will be honoured at the fourth annual Top Women in Hardware & Building Supply event in Chicago on Nov. 20 and 21.

Western Forest Products has promoted Glen Nontell to the role of CFO, effective Aug. 1. He has been with the firm since 2018, most recently as VP of corporate development. Outgoing CFO Stephen Williams will stay on as EVP through the end of this calendar year and in an advisory capacity to the end of 2026.

DID YOU KNOW…?

… that the latest edition of Hardlines Dealer News has hit inboxes? In this issue, we explore how retailers responded to the wildfires near Jasper, Alta.; a B.C. store gaining attention as a “living museum;” and a Toronto big box’s furniture store-within-a-store. Hardlines Dealer News is monthly and it’s free: click here to subscribe now!

RETAILER NEWS

RONA inc. has added AMS Building Centre in British Columbia’s Haida Gwaii to its network of independent affiliates. The business has served the archipelago formerly known as the Queen Charlotte Islands for nearly 40 years and is currently owned by Mark Goetzinger. The store’s retail space totals 5,000 square feet and is complemented by a 2.5-acre lumber yard. As part of the banner conversion, it will be remerchandised to offer 350 new products.

RONA inc. celebrated the grand opening of the RONA+ Waterdown store in the Dundas district of Hamilton, Ont. The conversion of the former RONA Home & Garden store was originally announced in May. The new features include stores-within-the-store for the DeWalt and Bouclair brands. Eleven RONA+ stores in the province have adopted the store-within-a-store model in celebration of the banner’s one-year anniversary. The conversion of this store is another step towards RONA’s goal of standardizing its big box stores under one cohesive banner.

Flexiti Financial Inc., a provider of POS consumer financing for retailers, has partnered with RONA inc. to become its primary financing provider for in-store purchases. Customers can avail themselves of Flexiti financing at any corporate RONA or RONA+ location and at participating RONA affiliate dealers. They can use an existing FlexitiCard or apply for a new one on the spot.

AD reports that member sales in the first six months of 2024 increased by 7.0 percent to a record US$40.4 billion. Same-store sales increased by 4.0 percent in the U.S. and 1.0 percent in Canada. Member purchases from AD suppliers grew 4.0 percent to $10.1 billion.

W.W. Grainger reports its Q2 earnings were $649 million, down 1.8 percent from a year earlier. Adjusted for one-time restructuring costs, earnings edged up 0.6 percent to $665 million. The industrial supplies distributor’s sales for the quarter rose by 3.1 percent to $4.31 billion.

Red Apple Stores has taken over four The Bargain! Shop locations and converted them to the Red Apple banner. The new stores are in Wynyard and Rosetown, Sask.; Oliver, B.C.; and Timmins, Ont. They will have grand openings on Aug. 23. Red Apple is a Mississauga, Ont.-based retail chain with 143 general merchandise stores, all located in smaller markets across the country. Earlier this month, the retailer opened a store in Thunder Bay, Ont., in a former The Bargain! Shop location.

Menards is a top performer among U.S. home improvement retailers, according to a new report by Market Force Information. The banner excels in value for dollar, scoring 58.1 percent compared to the 39.8 percent average. Key decision drivers include convenience, value, and positive experiences. Menards leads in overall brand satisfaction, cleanliness, and merchandise variety, and captures 77 percent of customers’ next 10 purchases, outperforming Lowe’s and Home Depot.

Taiga Building Products reported second-quarter sales of $427.8 million, a decline of $19.1 million or 4.0 percent from $446.9 million a year earlier. Net earnings fell to $13.9 million, from $17.0 million in the previous Q2. Sales for the first half of the fiscal year amounted to $821.5 million, compared with $855.4 million in the comparable period last year, while profits slipped to $26.7 million from $30.5 million.

Weyerhaeuser Co.’s Q2 profits fell to US$173 million, down from $230 million a year earlier. Revenues of $1.94 billion were down by 3.0 percent. The Seattle-based lumber firm also announced that during the quarter it acquired 84,300 acres of timberland in Alabama for $244 million.

Western Forest Products Inc. reported a Q2 loss of $5.7 million, narrowing the $20.7 million loss it posted a year earlier. Revenues of $309.5 million were up from $276 million during the comparable period of last year.

WernerCo will now be called ProDriven Global Brands. The company manufactures and distributes construction equipment, fall protection equipment, and aluminum and fibreglass ladders.

Stanley Black & Decker reported a Q2 loss of $11.2 million, or $0.07 per share, compared to earnings of $177.5 million a year earlier. Adjusted for one-time costs, earnings amounted to $1.09 per share. Total revenues of $4.02 billion were up from $4.16 billion in the comparable period of 2023.

The total value of building permits in Canada fell 13.9 percent to $9.9 billion in June. Declines were reported in 11 provinces and territories, and in both residential and non-residential sectors. The total value of residential permits decreased 11.5 percent to $6.5 billion. Construction intentions in single-family homes, however, rose by 4.0 percent to $2.6 billion. (StatCan)

NOTED

The number of available workers in construction trades is at an all-time high, but there aren’t enough projects to keep them employed, the Financial Post reports. Canada Mortgage and Housing Corp. recently noted that even with “a record high 650,000 construction workers” last year, the country saw just 240,267 new homes built. That specific data turns on its head what until recently had been conventional wisdom: that a shortage of skilled workers was limiting the pace of construction. Observers contend, however, that there is indeed a shortage of skilled trades on residential construction sites and that the data is misleading.

This is a big year for our annual Hardlines Conference. This year’s event is being held at one of Canada’s outstanding locations, Fairmont Le Manoir Richelieu, in the Charlevoix region of Quebec, from Oct. 22 to 23.

This week, we shine the spotlight on two more retail leaders who will take to the Hardlines Conference stage this fall …

Alexandre Lefebvre is the CEO of the giant Quebec-based retail and wholesale organization BMR Group. Lefebvre has been involved in the construction and renovation industry for many years. Very early in his career, he joined the family business, Lefebvre & Benoit, which dates back nearly 60 years and is a true leader in the commercial building materials industry. In 2012, he became president and nine years later he was appointed CEO of BMR Group as well as executive vice-president of its parent company, Sollio Cooperative Group, previously La Coop fédérée.

A seasoned manager known for his passion, leadership, and commitment to the community, Lefebvre sits on the board of the Independent Lumber Dealers Co-operative, a buying group that represents sales of over $7 billion. He was also a member of the board of governors of the Conseil du patronat du Québec (CPQ) and was honoured as one of Canada’s Top 40 Under 40 in 2017.

Jason Tasse is the president and COO of Lee Valley Tools, a family-owned Canadian business that has been serving the needs of woodworkers and gardeners since 1978. It’s a niche retailer, but an important one that has led the way in retail and online innovation for many years.

Founded on the guiding principles of customer-centricity, integrity, and treating the customer as a friend, Lee Valley Tools has earned its reputation as retail’s ethical capitalist. Lee Valley Tools has been recognized as one of Canada’s best-managed firms, top-ranking for in-store experience, and a leader in job creation for both manufacturing and retail.

Tasse graduated from Queen’s University’s MBA program and the Stagen Leadership Academy. He has spent three decades as a key contributor in shaping both culture and strategy at Lee Valley Tools, including shaping the company’s successful digital and succession transformations. His company’s story is one you won’t want to miss!

If you’ve never been to the Hardlines Conference, make this the year you join us. As the key annual gathering point for top retail executives, leading dealers, major vendors, it will provide tremendous networking and career opportunities.

IMPORTANT NOTE: As a Premium Member (thanks to your subscription to this newsletter), you have front-of-the-line access to this year’s conference and registration that’s 20 percent off the regular price. For more information and to reserve your spot, click here.

RONA inc. continues its support of its affiliate dealers as they expand their own businesses through acquisition. Two major deals in recent days reflect that support.

RONA inc. has announced that its affiliate dealer, Doidge Building Centres Ltd., has acquired two stores in the Ottawa. region Located in Carp and Woodlawn, rural villages within the city’s limits, the stores, under the Deka name, will be converted to RONA’s colours.

It’s the first foray into the National Capital Region for Doidge’s network of RONA stores, which will now number 12. Former owner James Roy (pictured right) will stay on as a shareholder partner in the business. Andrew Doidge (left), CEO and president of Doidge Building Centres, said in a release, “James built such an incredible business and is well respected among his community. We are very lucky to continue to build this business together.”

This acquisition represents a major step for the group, historically centred in south-central and southwestern Ontario, toward its objective to grow its footprint across the province. With their hardware selection and lumberyards, the Carp and Woodlawn locations are equipped to deal with both DIY and pro customers. The new ownership also plans on undertaking renovations at the newly-acquired stores.

“As a family-owned business our goal is always to work closely with local communities and keep those ties with the local population to support them in every stage of their home improvement and renovation projects,” said Doidge.

The Doidge acquisition follows on the heels of a similar deal by two other RONA affiliates a week earlier. A partner deal between Coop Embrun and Groupe Matériaux Godin inc. has resulted in those dealers investing equally in the acquisition of the RONA store in Oka, Que. Both companies are joining forces with RONA to ensure the Oka location remains viable after serving the community for nearly 70 years.

With this acquisition, Groupe Matériaux Godin now owns five RONA affiliated stores, and Coop Embrun counts two RONA stores.

Cloverdale Paint Inc., headquartered in Surrey, B.C., has made two announcements with regard to its industrial coatings business, one that expands its specialty coatings offerings, the other a range of appointments to support the increased industrial focus.

Cloverdale has forged an exclusive distribution agreement with Tnemec Co., a manufacturer of heavy-duty industrial coatings based out of Kansas City, Mo. Founded in 1921, Tnemec offers a full range of protective coating products, with facilities in North Kansas City, Mo.; Baltimore, Md.; Garland, Texas; and in Panama City and Hollywood, Fla., plus operations in Shanghai.

Cloverdale will have exclusive distribution rights for the western provinces, Yukon, and the Northwest Territories.

Cloverdale Paint boasts that it’s the largest family-owned coatings company in North America. Both directly and through a Portland, Ore.-based subsidiary called Rodda Paint, Cloverdale has manufacturing plants in Surrey (pictured), Calgary, Montreal, and Winnipeg, as well as London, Oakville, and Mississauga, Ont. The company does a big business in architectural and industrial coatings and sells through 139 corporate outlets and over 250 independent dealers throughout Canada and the U.S. Pacific Northwest.

As Cloverdale expands its capability in heavy-duty industrial coatings for petrochemical, pipeline, water treatment, and water storage segments, it has added to its team to support that expansion. Norm Walline has been named industrial sales manager. Shawn Tripp and Mike Johnson will join the company’s existing industrial coatings national sales team as reps.

“We are investing in our core capabilities to serve these key industrial segments and we are pleased to bring broader solutions and expertise to our customers,” says Darrin Noble, president and COO of Cloverdale Paint. “We are excited to be working with Norm Walline and his talented team.”

Ace Hardware is celebrating 100 years in business in 2024, and in the first half of the year, has already opened over 100 new stores, including its 5,000th location in the U.S. But the giant retail group is not done yet. It plans to open more than 200 new stores by the end of the year.

In the first six months of the year, Ace Hardware activated 111 new stores. One of these new stores, Fixit Ace Hardware in Roswell, Georgia, is also recognized as Ace’s 5,000th domestic location. Globally, Ace has opened more than 900 new stores in the past five years, including 203 last year.

Like many retail groups in Canada, Ace’s new store growth has been fueled by existing retailers opening additional locations, competitor stores converting to Ace and new investors opening their first Ace Hardware store.

However, its presence in Canada, where it has about 72 stores carrying the Ace banner, has been disrupted by the news that the Ace licensee for Canada, Peavey Industries, is terminating its agreement effective Dec. 31. Peavey will continue to support the Ace dealers until then, when the management of Ace in Canada is reportedly being handed back to Ace Hardware and Ace International, which manages Ace’s international dealer services. However, Ace Hardware has not yet responded to requests for more information or to confirm this.

Ace plans to celebrate its centenary milestone during its Fall Convention, coming up Aug. 8 to 10 in Chicago.

PEOPLE ON THE MOVE

Doug Graham, vice-president of e-commerce and marketing at Home Depot Canada, has been named chair of The Home Depot Canada Foundation’s board of directors. He’s been with Home Depot Canada since 2010 and has been on the foundation’s board for six years. He replaces Pamela O’Rourke, Home Depot Canada’s former vice-president of merchandising, who left the company early in June.

At Canfor Corp., CEO and president Don Kayne will step down at year’s end. Susan Yurkovich, currently SVP of global business development, has been named as his successor, effective Jan. 1, 2025. Kayne will stay with the company through the end of next year in an advisory role. Yurkovich is a past president and CEO of the B.C. Council of Forest Industries.

DID YOU KNOW…?

… that the latest instalment of our podcast series What’s In Store is now live? In this episode, we meet Jim McConnery, a tax and estate practitioner at accounting firm Welch LLP. He talks about new rules around the Capital Gains Tax, its affect on independent business, and how to minimize your tax burden when it’s time to sell. Sign up now to get updates about the latest free podcasts in your inbox!

RETAILER NEWS

Walmart Canada has introduced hydrogen fuel cell electric semi-trucks to its fleet, becoming the first major retailer in Canada to do so. Operating with zero tailpipe emissions, the Nikola Hydrogen Fuel Cell EV Class 8 tractor has a range of about 800 km and on average can avoid 97 tonnes of carbon dioxide tailpipe emissions annually.
Quebec’s construction holiday continues through to Aug. 5. It will impact 28 percent of the province’s workforce, though exceptions are built in for work such as civil engineering and emergency projects. AQMAT president Richard Darveau told Montreal’s 98.5FM that hardware sales will nevertheless be “pretty good” during the period. Many homeowners, he explained, will use part of their vacation time to pursue renovations.

Loblaw Cos. Ltd. reported second-quarter results that included a 1.5 percent increase in revenue to $13.95 billion. Operating income fell by 6.4 percent to $868 million, as consumers continued to search for lower-priced products amidst persistent inflation and higher prices, which resulted in stronger sales through the company’s discount banners, Maxi and No Frills. Retail segment sales were $13.66 billion, an increase of 1.4 percent. The company said Q2 results “reflected strong operational performance and the impact of the settlement of the bread price-fixing class actions commenced in 2017, which negatively impacted net earnings by $121 million.” E-commerce sales increased by 14.2 percent.

Sleep Country Canada has reached a deal to be purchased by a subsidiary of Fairfax Financial Holdings for about $1.7 billion. The terms of the deal leave Sleep Country free to accept a better offer, but Fairfax has the opportunity to match it. It also receives a $36.5 million termination fee if Sleep Country goes with another buyer. Barring such a development, the mattress retailer expects the transaction to close during Q4 of 2024.

U.S. farm and hardware retailer Tractor Supply reported a 1.5 percent increase in net sales for the second quarter of 2024 to US$4.25 billion. The increase was driven by new store openings, and partially offset by a 1.5 percent decline in comparable store sales. Gross profit increased 2.7 percent to US$1.56 billion.

SUPPLIER NEWS

West Fraser Timber Co. Ltd. reported second-quarter sales of US$1.71 billion and earnings of $105 million. Second-quarter adjusted EBITDA was US$272 million, compared with US$200 million in the first quarter of 2024.

A recent KPMG survey reveals that most Canadian companies are feeling the financial impact of climate change, prompting them to climate-proof their operations. Over 90 percent of business leaders believe extreme weather is now the new normal. The survey of 350 leaders found that 56 percent experienced reduced profitability and 49 percent faced rising costs due to last year’s weather events.

“Once again, our North American OSB, plywood, and other engineered wood products demonstrated strong results and the value of our product diversification strategy. Q2 2024 benefited from relative strength in new home construction demand that carried over from the prior quarter. Conversely, we continued to experience demand softness in our North American lumber business, particularly for SYP [southern yellow pine] lumber with its greater relative exposure to repair and remodelling applications.”
—Sean McLaren, president and CEO of West Fraser Timber, on the company’s latest quarterly results, which reflected near-term demand uncertainty across some of the company’s end-markets.