November 28, 2016 Volume

xxii, #45

“A champion is someone who gets up when he can’t.”
— Jack Dempsey, American heavyweight boxer and five-time world champion, 1895-1983)

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Anticipating 50-year anniversary, BMR show focuses on technology

QUEBEC CITY — Groupe BMR held its latest trade show in Quebec recently. The event used the official theme of technology to drive it, while anticipation around the organization’s 50th anniversary in 2017 was prevalent. According to a company spokesperson, Stéphanie Couturier, with those two notions in mind, “we wanted this show to be a window on the future of our industry.”

In keeping with the technology theme, the main hall of the show, held at the Centre des congrès, offered several new technologies on display, including 3D printers, drones, and a 2.0 store where dealers could experience virtual reality renovation planning and see how RFID chips can be used in stores.

Inside, some 300 exhibitors were waiting to introduce their new products for spring and summer 2017 to 325 dealers, under the BMR, Unimat, and Agrizone banners. This year, instead of a house, the star of the show was a large deck that hosted a wide collection of outdoor furniture and an extensive gardening area complete with living plants. Another big hit was the BBQ Québec booth. “Dealers were very excited to hear about our new exclusive association and everyone wanted to find out more about BBQ Québec’s product line,” Couturier said. (More on this partnership in last week’s edition. —Editor)

To provide dealers with even more information on new products and trends for 2017, this year’s buying show also featured a conference area where speakers from different sectors of the industry gave seminars over two days. The traditional gala evening marked the official kickoff for the festivities for the anniversary year to come. BMR CEO Pascal Houle invited everyone in attendance to raise their glass to celebrate 50 years of success.

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“Chaos” of gypsum pricing as tariff goes before Tribunal this week

NATIONAL REPORT — John Adrian is the lumber and agro manager for Rocky Mountain House Co-op Home Centre, located an hour west of Red Deer, Alta. He placed an order for two truckloads of drywall from CGC at Federated Co-operative’s Fall Buymart back in mid-October. The terms included immediate delivery.

But he just got the order last week. Prices are up and shortages abound, all due to a tariff on gypsum drywall that has affected Western Canada. It’s taking its toll on margins—and on the receptiveness of end-users, who must pay up to 60% more than they did three months ago.

The tariff is the result of a ruling on September 6 by the Canadian International Trade Tribunal on drywall from the U.S. being dumped into Western Canada. As the only drywall producer with manufacturing in Western Canada, CertainTeed Gypsum Canada filed the original complaint. The CITT ruled in favour of a tariff to level the playing field. CertainTeed’s own product, which is produced in a facility in Calgary, was not affected by the tariff, but the company did raise its prices by 30% to recapture some margin.

Delivery times now, says Adrian, are running up to seven weeks out. At the same time, demand is way off due to pricing. “The only ones buying drywall are the ones who have to,” he says, noting that his biggest customers now are on nearby reserves, where demand remains high. He’s seen his cost go from an average of $16 per sheet to $21.

Shoemaker Drywall Supplies is a commercial drywall dealer, and part of the WSB Titan group of companies. It has a dozen locations in Western Canada. Doug Skrepnek of Titan sums up the situation in one word: “Chaos.” The increased prices have affected Titan’s business, which he says is down 40% due to high prices and the lack of supply as U.S. product is staying south of the border. “Never in my 40 years in the industry have I seen this much turmoil in the marketplace,” he says.

However, the impact of the tariff can vary from dealer to dealer, depending on their supply relations. One dealer with locations in British Columbia and Alberta who asked not to be named says he buys already from Certainteed. Dealers tied more closely to that supplier are not feeling the impact as much, he says. As for his customers, he notes that the contractors “did a lot of squawking at first,” but the situation has settled down somewhat.

Skrepnek is now preparing for two weeks of hearings that begin today. A ruling will be made by the Tribunal on January 5 and any changes would go into effect January 20. Skrepnek believes the tariff will be lowered significantly as a result of the hearings. “But,” he adds, “if it’s not lowered, it will have a devastating impact.”

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Analysis: big boxes, mergers, the role of independents, and the rise of e-retail

TORONTO — With Lowe’s posting results earlier this month that lagged behind its competitor Home Depot, HARDLINES’ intrepid editor Michael McLarney spoke to Business News Network (BNN) about the state of the big boxes in Canada. Lowe’s has been taking the long view in diversifying its holdings, he said, even though that has meant that some swings and misses, such as an ill-fated joint venture with Woolworths in Australia called Masters Hardware.

Speaking to the takeover of RONA, McLarney said that the focus for now is on the back end as Lowe’s continues streamlining its operations in Boucherville, with incorporation of RONA big box stores into the Lowe’s banner to come later. The likely endgame will be the rebranding of all RONA big boxes under the Lowe’s banner, with smaller proximity stores and independent dealers retaining the RONA name.

In the meantime, properties acquired from Target after its Canadian adventure have been re-opened as Lowe’s stores.

However, the big box is only part of the story, says McLarney. Canadian big boxes have to contend with a strong independent presence even more than their American counterparts. Home Hardware, a co-op, remains in the number-three home improvement retail spot. Buying groups like Castle, TORBSA, and TIMBER MART can offer dealer-owners the best of both worlds, gathering independents into a critical mass able to hold their own against the large players, while respecting the autonomy of local ownership and management.

Despite not being a publicly traded company, Home Hardware is beginning to get the attention of Bay Street observers. Would it go public? Not likely, McLarney says, but its size and success position it for future takeovers, such as the acquisition of Beaver Lumber in 1999, which added 138 stores.

Finally, retailers across the industry are shifting to establish themselves as online sales gain increasing market share. Even sectors once thought to be immune to the trend are feeling the pressure to enter the online marketplace. McLarney recalls one retail executive telling him a few years back, people aren’t going to buy lumber and building materials off the internet. “Well, guess what,” he stresses, “they are. What’s going to happen is these stores will become the service centres as this industry becomes more and more of a service industry.”

(Click here now to watch the entire five-minute BNN interview.)

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Canadian Tire looks to strengthen its retail business with proprietary brands

TORONTO — With the release of Canadian Tire’s latest quarterly results, CEO Stephen Wetmore admitted that he was not entirely satisfied with results of the company’s Canadian Tire Retail (CTR) business. “Our CTR revenue is not quite in line with our point-of-sales growth, otherwise bottom-line would have been better,” he said in a call with analysts following the release of the company’s Q3 numbers.

“However, as we move forward on our journey, we are spending a significant portion of our time looking well beyond the next quarter to build the types of capabilities and programs for the future,” he continued.

Perhaps offering some clues as to why former CTR President Michael Medline was let go in July, he noted: “CTC is at its strongest when we have a one-company approach.”

Reorganizing the management post-Medline was part of the strategy “to better align existing expertise within the organization” under Allan MacDonald’s leadership at CTR. That included significantly expanding the role of Greg Hicks, who oversees merchandising, automotive, and the retail experience. In addition, automotive was brought in closer to CTR’s other lines of business and is now led by Andrew Davies.

During the quarter, a Consumer Brands division was created, headed up by TJ Flood, who was previously senior vice president of marketing for CTR. In this role, Flood has been tasked with expanding Canadian Tire’s range of private brands, both through development in-house and through the acquisition of other product brands that could complement or extend the company’s existing portfolio. 

CTR’s exclusive brands include Noma lights, Woods camping equipment, Canvas, which focuses on home accessories and décor, the venerable Mastercraft tool brand, and Frank, which features snacks and consumable household products.

“These areas are critical to our strategy as we move forward,” Wetmore added. “We are a product-led company. If we don’t have great products and great people, then we won’t be able to execute our retail strategies.”

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Derek Jackson has been promoted to full-time sales representative−Northern Ontario for Taymor. After spending four years learning the lumber yard business at Lansing Build-All, Jackson joined Taymor as a merchandiser in 2000, then took a year off to complete his honours degree at the University of Toronto. He returned to his merchandising role in 2008 with the added responsibility of junior sales representative for Northwestern Ontario. He takes over from Don Rennie, who had covered Northern and Eastern Ontario in both retail and new construction channels, and will now focus on the Ottawa Valley and Eastern Ontario.

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November 21, 2016 Volume

xxii, #44

“Canada: the language of France with the culture of Minnesota.”
—Stephen Colbert (American humourist, actor, and television host, 1964- )

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Lowe’s, Home Depot turn in strong Q3 results on continued U.S. recovery

MOORESVILLE, N.C. & ATLANTA ― Third-quarter results for the industry’s two largest players showed strong gains as housing continues to recover and consumers keep spending in America. And though results for both companies may vary slightly for their Canadian operations, Home Depot and Lowe’s remain secure in their positions as the number-one and number-two retail players respectively in this country.

Home Depot was first to announce its results last week, turning in sales of $23.15 billion, up 6.1% over the previous-year quarter. Profits climbed 14.1% to $1.98 billion, while same-store sales were up 5.5%. Canada reported positive same-store sales in local currency marking 20 consecutive quarters of positive same-store sales growth. However, the company would not reveal any more details about its performance in Canada.

The company maintains its outlook that sales will rise 6.3% for the year.

Lowe’s sales in the same period increased 9.6% to $15.7 billion from $14.4 billion in the third quarter of 2015, with same-store sales up 2.7%. Profits of $379 million were negatively impacted by the costs related to the wind-down of its business interests in Australia (a failed joint-venture with Woolworths to build the Masters chain of big boxes), the acquisition of RONA in Canada, and costs related to its development of the Orchard Supply home centre business.

For the nine-month period, Lowe’s sales were $49.2 billion, a 7.4% increase over the same period a year ago, and comparable sales increased 3.9%. Same-store sales in the U.S. increased 2.6% for the third quarter and 3.9% for the nine-month period. Lowe’s outlook for the year maintains a 9 to 10% increase in sales, with same-store sales expected to rise 3 to 4%.

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BMR adds barbecue boutiques to some of its stores

BOUCHERVILLE, Que. — Groupe BMR and BBQ Québec are teaming up to bring BBQ Québec products across the province over the next few weeks. The popular Quebec barbecue lines will be featured in sections within BMR and Unimat stores, which will help the BBQ Québec brand expand beyond the handful of stores it currently possesses.
                  
About 20 stores will feature permanent BBQ Québec “Zones” where customers will find the entire BBQ Québec-branded range of grills, accessories, wood chips, sauces, and spices. At least 80 more stores are expected to take on some of the BBQ Québec lines. The brand has developed a following in the province, catering to barbecue lovers with unique products, services, clothing such as hats and shirts, and even cooking lessons.

“We are very happy to be partnering up with BBQ Québec to make our stores the number-one destination for barbecue lovers! With this decision, we are meeting an increasing demand from our customers who enjoy barbecuing all year round,” said Pascal Houle, CEO of Groupe BMR. “And we are proud to do so with a fellow Quebec-owned company known for its dynamic leadership.”

BBQ Québec was founded in 2014 by brothers Max and Jean-Philippe Lavoie, who got their start in the industry as youngsters working in their parents’ hardware store. They opened their first BBQ Québec store in Sainte-Foy in 2014. They went on to open a second one in Boucherville in 2015 and a third store in Laval in 2016.

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Doug Lemieux recognized by WRLA with Industry Achievement Award

VAUGHAN, Ont. — Doug Lemieux, president of L.B.H. Building Centre in St. Albert, Alta., has received the Western Retail Lumber Association’s highest honour, the 2016 WRLA Industry Achievement Award.

Nominated by TIMBER MART and chosen by the WRLA, Lemieux was recognized for his years of dedication to the LBM industry, the development of his local community, and the support of various not-for-profit organizations, including the WRLA.

Lemieux credited his company’s success to the decision to join the TIMBER MART group, which has “assisted us in creating relationships with our vendor partners, provided us with exceptional buying programs, and the tools we’ve needed to be successful long term,” he said. The WRLA has presented the award since 1970.

Lemieux made news last year when he won the Marc Robichaud Community Leader Award at Hardlines’ Outstanding Retailer Awards. And his uncle, Vic Lemieux, was awarded the WRLA Industry Achievement Award in 2015. Vic established Econo TIMBER MART in 1970 in Prince Albert, Sask.

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Introducing the newest member of the HARDLINES Team

WORLD HEADQUARTERS, TORONTO — David Chestnut has joined Hardlines Inc. as Vice President, Business Development.

David has been an advertising/media leader and an innovator for 20 years in the Canadian home improvement industry. A native of Sussex, N.B., he moved to Toronto in 1996 and joined the staff of the now-defunct Rogers trade publication Hardware Merchandising. He was promoted to associate publisher in 1999. A year later, he helped launch Canadian Contractor magazine. In 2007, he was promoted to publisher of Rogers’ home improvement trade publications division, directing the sales, editorial, production, and distribution of Professional Painter and Builders Choice magazines, in addition to his continuing work with Hardware Merchandising and Canadian Contractor.

He launched Renovation Contractor magazine in 2010. Under his direction, the publication achieved numerous awards. Most recently, he worked on the digital properties of Student Life and Parent Life Networks, gaining invaluable experience in digital and video marketing.

A consistent winner of Rogers’ “Overachiever” sales awards for exceeding annual targets, David has also served on the advisory board for the Canadian Home Improvement Show and was a consultant on the successful launch of the industry’s number-one trade magazine for retailers, Hardlines Home Improvement Quarterly.

Over the course of his career, David has forged very close ties with the leading manufacturers, distributors, and agencies that make the marketing and sponsorship decisions in Canada’s $45 billion home improvement industry.

You can reach David at david@hardlines.ca or 416-725-7992.

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TIMBER MART has added to its lumber-trading team into Atlantic Canada with the appointment of John Fluke as commodity trader. In this role, Fluke will serve as a resource for TIMBER MART members in the Atlantic by sourcing commodity products, securing buying opportunities, and managing TIMBER MART’s pressure-treated lumber program in the region. Previously, he spent 18 years as commodities manager in the Atlantic for Lighthouse Lumber-AFA Forest Products. Fluke will report directly to TIMBER MART’s Vice-President of Distribution and Trading John Morrissey and be based out of the TIMBER MART office in Dartmouth, N.S. With this latest appointment, TIMBER MART’s lumber-trading team consists of four commodity traders in total: two in Ontario, one in Quebec, and one in the Atlantic.

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With more than 20 years as the publication of choice, thousands of people in the Home Improvement Industry receive HARDLINES every week. A classified ad is the ideal means to promote your job posting needs. Whether you’re filling an unexpected opening or looking for top talent to grow your business, HARDLINES is your go-to place to reach people who match the skills and experience you seek.

For more information and a free quote, email Maggie MacKinlay at maggie@hardlines.ca or call 416-489-3396, extension 6.

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November 14, 2016 Volume

xxii, #43

“Money won’t buy happiness, but it will pay the salaries of a large research staff to study the problem.”
—Bill Vaughan (American columnist and author, 1915-1977)

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Lowe’s expansion continues with first Victoria-area store

BOUCHERVILLE, Que. — Lowe’s celebrated the grand opening of its first store in the greater Victoria area last week at Tillicum Centre mall in Saanich. Saanich Mayor Richard Atwell and City Councillor Judy Brownoff joined Jim Caldwell, Lowe’s Canada’s executive VP for big box retail, and Lowe’s employees for an official board cutting and community grant donation presentation.

The Saanich Lowe’s marks the company’s 52nd store in Canada under the Lowe’s banner, and the 11th new store since the beginning of this year. Both Lowe’s and RONA have aggressive expansion plans: Lowe’s bought up a dozen former Target stores, plus its distribution centre in Milton, Ont., in May 2015 and has been converting those outlets to Lowe’s. In addition, it is continuing to develop greenfields sites of its own.
Lowe’s store openings for this year were:

• Ancaster, Ont., in January;
• Cornwall, Ont., in May;
• North Regina in June;
• Toronto (Danforth Ave.) in June;
• Calgary (Signal Hill) and Abbotsford, B.C., in July;
• Calgary (Shawnessy), Thunder Bay, Ont.; Prince George and Nanaimo, B.C., in August;
• and Victoria-Saanich in November.

The company’s 53rd store will open later this month at Centrepoint Mall in North York, in Toronto. In addition, the company opened two big boxes in Quebec under the Réno-Dépôt banner at the beginning of September.

To support the expansion, Lowe’s is working to backfill its infrastructure. That includes adding bodies at its regional distribution centre in Milton, Ont., to fill three shifts. The company is hosting job fairs throughout November, and the warehouse will hire general labour and forklift operator positions, with both full- and part-time positions.

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Business building and networking highlight Home Improvement eRetailer Summit

FORT LAUDERDALE, Fla. — Some of North America’s leading eRetailers gathered in one room recently for the first-ever Home Improvement eRetailer Summit.

Held October 26 to 28, 2016 in Fort Lauderdale, Fla., this invitation-only event was a ground-breaking forum for cutting-edge eRetailers to meet, share ideas, and connect with forward-thinking suppliers eager to increase their online business. The Home Improvement eRetailer Summit is the first of its kind to focus specifically on hardware, housewares, home storage and organization, furnishings, and building materials.

The eRetailer Summit also featured a powerful roster of retail experts, who provided valuable insights into the future of e-commerce, and how it will integrate with bricks and mortar. The program started with retail expert Robert Howard of Kurt Salmon, who outlined how the retail experience is being disrupted and described the digital experience gap. “And 20% off doesn’t do it anymore. Be an inspiration and influencer,” he added.

Deborah Shearer, founder and designer of TableandDine.com, found the entire event beneficial. “It was a great few days of meeting, networking, learning, and sharing ideas with some really fabulous industry colleagues,” she said. “The event was insightful, filled with interesting topics, relaxed, and intimate.”

But important insights came from fellow eRetailers, as well. Jeff Golden from TheShops.tv talked about the importance of “telling a story around the product,” while Mike Hargrave of Sears.com and Kmart.com shared that “personalized experiences is where everyone is going.” Jessica Jay of ATGStores.com told potential new vendors, “Our most successful partners are the ones who aren’t afraid to try new processes with us.”

Sonya Ruff Jarvis, managing member, Jarvis Consultants, is the event’s founder. “The eRetail leaders at this inaugural Summit reported conclusively that they enjoyed meeting vendors and very much enjoyed meeting fellow eRetailers,” she said. “A combination of great content and solid business-building interactions made this event a success.”

The date and location of next year’s Home Improvement eRetailer Summit will be announced soon. Home Improvement vendors interested in exploring or expanding their online presence and learning more about how to optimize the internet as a distribution channel can contact Beverly Allen: bev@hardlines.ca; or Sonya Ruff Jarvis: sonya@eretailersummit.com.

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TIMBER MART announces new location for B.C. distribution centre

VAUGHAN, Ont. — TIMBER MART plans to relocate its distribution centre in Surrey, B.C., which has been purchased outright, to a new facility at 5671 Production Way in Langley, B.C. The new DC encompasses an office space, 27,000 square feet of warehouse space, and a three-acre yard.

Following TIMBER MART’s sale of its hardware distribution business to Memphis-based Orgill, Orgill continued to use TIMBER MART’s Western facility to warehouse its hardlines products for Western customers. At the new facility in Langley, Orgill will continue to manage hardlines products, but once the move is complete in January 2017, these will be cross-docked from Orgill’s new facility in Post Falls, Idaho. The shift of hardlines to Orgill will allow TIMBER MART to expand the range of building materials it can warehouse. 

“Our new TIMBER MART distribution centre will provide us with greater square footage to house LBM products, as well as a more suitable and cost-effective distribution solution for our members in B.C.,” says Bernie Owens, president of TIMBER MART. “The new facility will continue to provide great competitive advantage to our membership in the province and I thank them for their feedback and input in selecting the new location.”

TIMBER MART currently operates two distribution facilities. Besides the DC in Surrey, which houses both LBM and Orgill hardlines products, the buying group maintains a DC in St-Nicolas, Que., which handles LBM exclusively. By January 2017, TIMBER MART’s distribution network will consist of LBM distribution only—through both the new Langley facility and the existing DC in St-Nicolas.

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Home improvement industry growth varies by format, region

SPECIAL REPORT — The hardware and home improvement industry’s rate of growth in 2015 was in line with forecasts, with modest growth. Among the store formats that comprise this industry, the big box format was one of the fastest growing in the country last year, thanks largely to the expansion efforts of Lowe’s.

Regionally, growth was varied, as well. Many parts of the country enjoyed healthier sales despite the downturn in the energy sector, which affected the country in general and Alberta in particular and to a lesser extent Newfoundland and Labrador. But despite a slow start to 2015, the market maintained strength during the latter half of the year.

British Columbia began to enjoy an uptick in 2015, especially in the Lower Mainland, but that growth was late in coming and focused mostly on the Lower Mainland for much of the year. As a result, the province was down overall. B.C. has been showing greater growth in 2016 across the province and is expected to sustain that growth through next year, as dealers catch up to improving conditions there.

The Prairies continue to suffer a downturn, with Alberta showing the greater dip in dollar terms: it lost almost $1.5 billion in home improvement sales in 2015. Last year, total retail home improvement sales coming out of that province totalled just over $5 billion, down 1.1% from the previous year.

The Atlantic provinces showed healthy increases, albeit on smaller overall sales. New Brunswick showed the greatest growth, up 0.6%, while the other provinces were virtually flat in 2015. Newfoundland and Labrador managed to show a slight increase, up 0.1%, despite the downturn there. That region is forecast to show negative sales growth in 2016.

(Find out how the provinces have gained or lost market share, and learn which retail formats are winning and losing. It’s all in the incredible 2016-2017 Hardlines Market Share Report. Click here to buy it now!—Editor)

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At Building Products of Canada Corp., Jacques Bibeau has been named to the position of VP Sales and Marketing. Most recently Regional Director of Sales for Eastern Canada and the U.S. with Dow Chemical, Bibeau comes to BP with 35 years of sales experience. He replaces Robert Caron, who will retire effective March 31, 2017, after eight years at the helm of BP’s commercial team. BP has operations in Quebec and Alberta, manufacturing residential and commercial roofing and wood fibre products, and paper and chipboard.

At Reed Exhibitions, Kimberly Fox has joined the National Hardware Show team to lead buyer programs and extend relationships with hardware and home improvement professionals. Fox comes to the National Hardware Show with over 20 years’ experience in the tradeshow industry. She will kick off her role visiting key buyers and actively participating in industry events. (kfox@reedexpo.com)

Target has announced the appointment of former Wal-Mart stores executive Shekar Natarajan for the new position of senior VP, network planning and operational design. Natarajan will be responsible for overseeing the company’s direct-to-store and direct-to-customer supply, reporting to Executive VP and Chief Supply Chain and Logistics Officer Arthur Valdez.

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CLASSIFIED ADS

Make Hiring Easy with HARDLINES Classifieds

With more than 20 years as the publication of choice, thousands of people in the Home Improvement Industry receive HARDLINES every week. A classified ad is the ideal means to promote your job posting needs. Whether you’re filling an unexpected opening or looking for top talent to grow your business, HARDLINES is your go-to place to reach people who match the skills and experience you seek.

For more information and a free quote, email Maggie MacKinlay at maggie@hardlines.ca or call 416-489-3396, extension 6.

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November 7, 2016 Volume

xxii, #42

“All wish to possess knowledge, but few, comparatively speaking, are willing to pay the price.”
—Juvenal (Roman poet, 1st & 2nd century AD)

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What’s hot for the holidays? Ask Home Depot Canada

TORONTO ― LED lighting, co-ordinated Christmas wrap and ribbons, and decorations inspired by the Canadian north were trending at a shindig last week to showcase the Home Depot Canada’s holiday product lines.

According to Dara Greenberg, seasonal and holiday décor buyer for Home Depot Canada, she and her team scour the globe for trends in Christmas, including attending the Christmas show in Cologne, Germany. And while Home Depot Canada works with its U.S. parent to some degree, she underscored that this year’s holiday lineup has been developed with Canadians in mind.

Greenberg talked enthusiastically about the potential of LED lighting, saying the company has “made a big investment to develop items that really work well.” She noted that “LEDs have evolved to the next level to have functionality.” That, she went on to explain, includes lights that can be programmed to light from the bottom up or top down, flash at different rates, and even change colours altogether.

Mixing old and new, strings of retro Edison lights featured flashing LED functionality, changing colours and flashing on and off in waves that can be controlled remotely.

When it comes to Christmas trees, Sylvain Larouche, the buyer for live goods―who is now moving over to outdoor power, by the way―said that with trees available in a range of sizes, from a couple of feet up to eight feet, customers can buy more than one, and even put some trees outside their homes for added decoration.

An interesting twist on an artificial tree aimed at condo dwellers and other tight spaces is one cut lengthwise down the middle so it can be pushed flat against a wall.

The innovations on display were rounded out by contemporary takes on classic themes, including nutcrackers, vintage car models, and big tree ornaments. The products are appearing in stores in time for the holidays and are already available online.

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TIMBER MART looks for ways to improve shipments and buys for dealers

LONGUEUIL, Que. — TIMBER MART is continually searching for ways to better serve its members, who consist of hardware and building supply dealers across the country. Bernie Owens, president of TIMBER MART, outlined some of these strategies recently at a breakfast meeting of the Canadian Hardware & Housewares Manufacturers Association.

Owens gave an overview of the evolution of the group since he took the helm and outlined what he regarded as some of the challenges facing independents. To help those independents compete more effectively, TIMBER MART has sought to improve the buying show experience. The group’s own show, he said, offers a better advantage through confidential show specials available only to dealers in attendance at the show. The group also provides an alternative in the form of a virtual buying show online platform, an industry first, he said, for North America.

Shipping costs will be further lowered, Owens said, as its key hardlines supplier, Orgill, will benefit from the addition of a distribution centre in Post Falls, Idaho, which will open next spring. This facility, he said, will be positioned to fulfill orders to members on the Prairies much more rapidly than Orgill’s existing London, Ont., and Surrey, B.C., facilities. The new centre will duplicate the inventory of the London DC. “Typically, the U.S. locations are very efficient,” he said, “and I expect it will be to the advantage of the dealers.”

Looking forward, Owens said his goal was to have LBM distribution in all regions, but added that caution and time were needed. “After I’m very comfortable that B.C. is growing, I truly think we need LBM distribution in every region,” he explained, “but it’s up to me to prove this is the way we’ve got to go,” noting that the board was still “a little gun-shy” following the sale of Chalifour.

He also urged vendors to maintain personal contact with stores, telling the audience to ensure they have “feet on the ground to support your sales.” Vendors, he said, have tended to focus on “distribution and large surface,” and they sometimes “have left the independents to the side.”

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eBay Canada: online is an opportunity for retailers both big and small

NIAGARA FALLS, Ont. ― How many Canadian retailers actually sell online? Only 13%. And Canadian retailers are behind the U.S. when it comes to e-commerce. Here, only 6% of retail sales come from online sales, while south of the border that number is 9%.

But Sumit Srivastava, who heads business development and merchandising at eBay Canada, believes Canadian retailers can do more. At the 21st annual Hardlines Conference, held in Niagara Falls, Ont., last month, he explained how his company can assist retailers to get set up and sell online. That includes making it easy for shoppers to access the online marketplace any way they wish.

“Omnichannel consumers today― their experience needs to be seamless across all channels.” With eight million customers per month, his company has a powerful presence online, which can provide a meaningful―and accessible―platform for retailers of all sizes. “eBay has one billion listings at any one time,” he noted. “And 57% of our sales are touched by mobile.”

But is the online space getting too crowded? He gave another sobering statistic to put this in perspective: “Only 8% of retailers consider e-commerce a priority,” which opens it up to the other 92% who are willing to make the plunge into the omnichannel world.

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Home Depot confronts Amazon with online strategies

NATIONAL REPORT — Home Depot’s technology and online business strategies are helping the company grow and compete in e-commerce, despite Amazon’s online retail dominance.

According to Forbes, Home Depot’s “largest and arguably most important investment has been the roughly $4 billion it will spend from 2016 to 2018 in improving the company’s e-commerce platform and physical stores, while bolstering the link between the two.”

The following techniques are being used by the big-box retailer:

• Giving customers the option to buy online but pick up products in store.
• Providing “customers delivery data and estimates based on their locations.”
• Managing orders through a system that “will help balance store and web inventories, as well as enabling buy-online, pick up in-store customers to choose the store with the shortest delivery time.”
• Offering an “easy-to-use website and mobile shopping platform that will make the customer experience more seamless and allow Home Depot to better collect customer data.”

An improving U.S. housing market is contributing to Home Depot’s successes there. And e-commerce remains a priority for Home Depot Canada, as well. Technology, ordering, and delivery strategies are among the reasons for Home Depot’s current growth trajectory, says the report in Forbes.

“Home Depot is using its wealth of data and tech-enhanced supply chain to get customers the products they want, at a price they’re willing to pay, all while ensuring that its inventory and shipping costs are as low as possible—a sure way to boost margins,” the article says.

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David Sparks, formerly national sales manager-Retail, Power Tools division at Robert Bosch, has moved to Freud Canada Inc., another Bosch company, as general manager. (david.sparks@ca.bosch.com; 1-905-364-5210)

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Make Hiring Easy with HARDLINES Classifieds

With more than 20 years as the publication of choice, thousands of people in the Home Improvement Industry receive HARDLINES every week. A classified ad is the ideal means to promote your job posting needs. Whether you’re filling an unexpected opening or looking for top talent to grow your business, HARDLINES is your go-to place to reach people who match the skills and experience you seek.

For more information and a free quote, email Maggie MacKinlay at maggie@hardlines.ca or call 416-489-3396, extension 6.

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October 31, 2016 Volume

xxii, #41

“They that are born on Halloween shall see more than other folk.”

—Anonymous

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Industry leaders anticipate growth, with challenges, ahead

SPECIAL REPORT — A survey of attitudes of home improvement executives indicates that growth continues in the industry, despite macro challenges to the economy. One thing they all agreed on was that low energy prices have been the industry’s biggest challenge this year so far.

The largest concern retailers collectively listed was the economic conditions in Alberta and Saskatchewan. Steve Buckle, president of Sexton Group Ltd., says those two provinces represent more than 40% of his buying group’s purchasing volume in any given year. “That’s a big part of our picture, and it’s struggling greatly,” says Buckle.
Buckle says one of the toughest things for his members in Ontario and British Columbia, where they are actually experiencing a good amount of growth, is diminishing margins.

“The margin that our members are seeing continues to be challenged even in very good, strong marketplaces,” he says. “There’s just more competition out there and often the contracting firms and the home building firms are getting bigger and stronger and more demanding.”

Over at Home Hardware, Terry Davis, CEO of Home Hardware, echoes Buckle’s comments on the market in the Prairies. And he adds that other provinces, such as Newfoundland and Labrador, have also being impacted by the downturn—and it’s not necessarily just in energy-reliant businesses.

Tony Steier is the director of home and building supplies for Federated Co-operatives Ltd. (FCL). He notes that warm temperatures and lots of rain have only added to those economic concerns in the West. “The weather has been so unusual, it has affected business differently than in the past,” says Steier. In the face of these difficulties, shoppers are much more reticent to spend on items they don’t consider to be necessities.

Pascal Houle, CEO of Quebec-based BMR, echoes that sentiment. He adds that 2016 has been a year of consolidation, with the big news being the takeover of RONA by Lowe’s. The increasingly smaller selection of retailers has created “its own challenges in order to remain competitive.”

(This is an excerpt of the cover story in the latest issue of our sister publication, Hardlines Home Improvement Quarterly magazine. It’s in the mail now to 11,000-plus dealers and store managers across Canada. Click here to learn more about HHIQ!)

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Exclusive: TIMBER MART’s Bernie Owens talks to CHHMA members

LONGUEUIL, Que. — The Canadian Hardware & Housewares Manufacturers Association welcomed TIMBER MART President Bernie Owens as guest speaker at its fall breakfast seminar last week.

Addressing members at the Holiday Inn Montreal-Longueuil, Owens stressed the importance of independent dealers rallying under a flexible buying group to compete in a market that increasingly favours big boxes. He began by noting that he has experience from the vendor’s perspective. “As much as I’m on the buying group side of the fence,’ he told the gathering, “for 21 years I was on your side of the fence,” adding that he can relate to the challenges vendors face.

Owens gave an overview of the evolution of the group since he took the helm, recounting how a formerly loose cluster of regional banners learned to start “pulling in the same direction.” At the same time, he took pains to make it clear that in centralizing the direction of the company, its leadership has not sacrificed its flexibility in responding to diverse regional and local needs. Noting that member stores represent an array of formats and specialties—from gypsum dealers to lumber yards to garden centres—he acknowledged that there is no one-size-fits-all approach, and emphasized that TIMBER MART has “no cookie-cutter format to impose.”

Pointing to data from HARDLINES’ own Retail Report and a Washington Times report showing the decline in market share among independent hardware dealers in the U.S., Owens said he sees this trend extending to Canada. Membership in a buying group like TIMBER MART offers independent stores the kind of clout they need to compete with larger players, while respecting their independence and offering personalized support to stores.

He listed several ways the group keeps costs down for members—such as opting for a simple banner identity over a more expensive brand development, eliminating spot programs, and providing for pool buying and flexible shipping options. For example, he suggested, a local dealer may choose to serve as a pickup point for one or more neighbouring stores on a group order.

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Female panellists share insights at Hardlines Conference

NIAGARA FALLS, Ont. — The retail home improvement industry has long been a male-dominated industry. And while that is changing, is it changing fast enough? This question was examined by a panel of industry leaders—all women—at the 21st Annual Hardlines Conference.

The event, which gathered 165 people at the Sheraton on the Falls hotel in Niagara Falls earlier this month, was a forum for the latest ideas and intelligence on retail in general, and the direction of this sector in particular. The panel consisted of Sherri Amos, Director, Dealer Support, Home Hardware Stores Ltd.; Sara Clarkson, President, Storesupport Canada; Christine Joannou, Key Account Manger Retail Canada, MAAX Bath Inc.; and Jillian Sexton, COO of Hector Building Supplies, a TIMBER MART dealer in Pictou County, N.S. The panel was moderated by Beverly Allen, Publisher of Hardlines Inc.

Allen, who joined Hardlines almost 20 years ago, introdcued the panel by pointing out how much has changed in those two decades. Sexton from TIMBER MART reinforced that notion by saying that she prefers not to have to evaluate employees or customers on the basis of their gender. “I prefer to be gender blind now,” she emphasized.

Joannou of MAAX observed that home improvement has been rounded out over the years by the rise of housewares and décor, categories which traditionally cater to women. Allen reminded the audience of a survey conducted by ACNielsen for Hardlines in the early 1980s that determined that more than 80% of buying decisions about home improvements and renovations involve the woman in a household.

Retailers have to change how they cater to women, said Clarkson of Storesupport. Where she once loved to wander through a store, today her shopping tactics are much more targeted. “I am time-pressed, so I plan ahead before I step into a store,” she added. And she’s not the only one. Home Hardware’s Amos, a mother of four, said she always researches her purchases online so as not to waste any time in the store.

The service aspect of home improvement stores is a large part of helping customers successfully save time, Sexton added.

All the women on the panel made it clear that they don’t need to be treated differently from men. Yet opportunities abound for dealers who are imaginative, said Amos. Events in-store such as ladies’ nights can work well, if done appropriately.

For the future, all the panellists agreed that women need to be encouraged to build careers in this industry. Sexton summed it up when she said she looked forward to a future “where it’s an industry where everyone works in it and gender is not an issue.”

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LBM/L&G sector bucks retail trend with strong sales

TORONTO — Last week’s release of retail sales by Statistics Canada was full of mixed messages. For August, retail sales edged down 0.1% to $44.0 billion from the previous month, with lower sales at motor vehicle and parts dealers and general merchandise stores being the greatest contributors to the decline.

According to retail expert Ed Strapagiel, the bigger picture on retail in Canada is brighter. Total actual (not seasonally adjusted) retail sales were up 2.6% in August compared with a year ago. However, this rather modest gain was still an improvement compared to the prior month of July, he points out.

Retail overall is up 3.7% year to date. “That’s strong performance, especially considering that the gain for all of 2015 was just 1.7%,” Strapagiel says. “On the other hand, most of 2016’s gain so far happened in the first few months of the year.”

There is even more good news here for this industry: year-over-year sales by building material and garden equipment and supplies dealers were up 10.1%. In actual terms (not seasonally adjusted), sales were up 7.2% year over year, and up 7.3% year to date.

Strapagiel says this sector is not typical of retail in general, or where he sees retail going in the near term. “Home improvement and lawn and garden seems to be on a planet by itself,” he notes. “It’s bucking the trend.”

He notes that both housing and automotive are showing strength, “because those are not really bought. They’re financed. And with low interest rates, that’s pretty darned appealing.”

Strapagiel believes retail is at the top of a 12-month cycle and expects it to soften in coming months, citing factors such as lack of growth in the GDP, employment numbers, and even uncertainty around the upcoming election in the U.S. He anticipates that retail overall may grow by only 2.8% in 2016. “In short, Canadian retail is slowing down going into the final third of 2016 and the all-important holiday sales season.”

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Coast Distributors has announced the addition of Charles Cho to its outside sales force. Born and raised in British Columbia, Cho started his retail career in high school when his parents moved to Mission, B.C., where they owned a grocery store. From there, he worked at Safeway’s distribution centre for 15 years in Burnaby, B.C., then switching to the hardlines field, where he cut his teeth with King Marketing and RDTS.

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CLASSIFIED ADS

Make Hiring Easy with HARDLINES Classifieds

With more than 20 years as the publication of choice, thousands of people in the Home Improvement Industry receive HARDLINES every week. A classified ad is the ideal means to promote your job posting needs. Whether you’re filling an unexpected opening or looking for top talent to grow your business, HARDLINES is your go-to place to reach people who match the skills and experience you seek.

For more information and a free quote, email Maggie MacKinlay at maggie@hardlines.ca or call 416-489-3396, extension 6.

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October 24, 2016 Volume

xxii, #40

“A designer knows he has achieved perfection not when there is nothing left to add, but when there is nothing left to take away.”
—Antoine de Saint-Exupéry (French writer, poet, aristocrat, and aviator, 1900-1944)

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Outstanding retailers awarded during gala awards dinner at Hardlines Conference

NIAGARA FALLS, Ont. — The Canadian home improvement industry gathered last week to recognize its top retailers during Hardlines’ 2016 Outstanding Retailer Awards. The awards were part of a gala dinner that concluded day one of the 21st Annual Hardlines Conference, held in Niagara Falls, Ont.

Hardlines, the information service for the retail home improvement industry, again celebrated the industry’s finest from across the country, who were honoured in seven categories covering the range of hardware and home improvement retailing formats.

“There is something about each of this year’s winners that impressed the judges, not only for their business acumen and leadership skills, but for their ability to connect with their customers and their communities in a profound way,” said Michael McLarney, editor and president of Hardlines Inc.

The winners of the 2016 Outstanding Retailer Awards are:

• Best Hardware Store – Brantford Home Hardware, Brantford, Ont.;
• Best Building Supply/Home Centre under 15,000 square feet – Home Building Centre-Salmon Arm, Salmon Arm, B.C.;
• Best Building Supply/Home Centre over 15,000 square feet – Vanderhoof and Districts Co-op Home Centre, Vanderhoof, B.C.;
• Best Contractor Specialist Store – Sen Western Wholesale Lumber (TIMBER MART) in Vancouver, B.C.;
• Best Large Surface Retailer – RONA Home & Garden, Kelowna, B.C.;
• Young Retailer of the Year – Cindy Caron and Raphaël D’Amours, Quincaillerie Palmarolle (TIMBER MART), Palmarolle, Que.;
• Marc Robichaud Memorial Community Leader Award – Orillia Home Hardware Building Centre, Orillia, Ont.

The ORAs were founded more than two decades ago as a way to honour and recognize the finest retailers in the hardware/home improvement industry. This year’s winning entries operate their stores, motivate their employees, connect with their customers, and contribute to their local communities in ways that put them ahead of their peers and identified them as truly outstanding to the Hardlines panel of judges.

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Differentiate or die: lessons from the Hardlines Conference

NIAGARA FALLS, Ont. — Staying focused on the customer was a message that came through loud and clear at the 21st Annual Hardlines Conference.

The event, which gathered 165 people at the Sheraton on the Falls hotel in Niagara Falls, kicked off with Jay Heubner, president of Ace International, who warned the audience to “differentiate or die.” He stressed the importance of dealers staying focused on customer service, “because service is our only competitive differentiation.”

He also said the partnership in Canada with Lowe’s could be mutually beneficial, as the big box and traditional store both appeal to their own groups of customers.

Dan Tratensek, vice president of publishing at the North American Retail Hardware Association, provided the results of a recent poll of dealers in Canada and the U.S. The eye-opening findings identified how dealers are evolving their businesses and where they are looking to invest. Tratensek pointed out that the biggest growth categories by far for Canadian dealers are plumbing, paint and sundries, and lawn and garden-outdoor living.

Nicholas Couture is general manager of Gabriel Couture & Fils Ltée, a TIMBER MART dealer in Richmond, Que. He gave his grassroots story of growing up in the family business and being challenged now to grow it while maintaining the spirit and passion that typifies an independent operation.

While many of the presentations over the two days were devoted to the inexorable rise of online selling, one online leader gave some sobering statistics. Sumit Srivastava of eBay Canada told the delegates that only about 13% of Canadian retailers are selling online. However, online sales are expected to grow by 3% annually over the next three years, while bricks-and-mortar sales are forecast to grow by only 2.6%.

Along with top retail and economic speakers, the delegates at the Hardlines Conference benefitted from two days of networking, great food, and an incredible view of Niagara Falls. (We’ll announce the date and location for next year’s conference soon. Stay tuned! —Editor)

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Home Hardware real estate acquisition strategy aims to help dealers grow

ST. JACOBS, Ont. ― Part of Home Hardware’s growth strategy is to help and encourage its existing member dealers to expand their existing operations. That can be either by adding to an existing store, or moving to a new location and building a larger outlet, one that typically carries a full range of hardlines and LBM, often under the Home Hardware Building Centre banner.

To assist those dealers with that transition and to manage that kind of investment, Home is increasingly buying the land under those stores and leasing it back to the dealers.

The dealer-owned co-op has “a big annual capital fund to help dealers grow their business,” says Terry Davis, CEO of Home Hardware Stores. He adds that the fund can also help dealers buy real estate of their own. And Home will also be proactive, buying up real estate in various communities in a pre-emptive strike to keep competing banners from moving in.

While Home has always carried a small inventory of “corporate” stores, often to hold onto a site while searching for a new owner to take it over, it got into the real estate business more seriously first with the acquisition of Crown Stores, a Calgary-based chain of 55 home centres, in 1988. But with the takeover of Beaver Lumber in 2000, Home found itself with another 90-plus properties.

Davis says that by becoming the landlord for some of its dealers, it can remove some of the risks involved in managing the real estate and focus on running their retail businesses.

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Dealer associations announce formalized union under CRBSC umbrella

NIAGARA FALLS, Ont. — Leaders from each of Canada’s home improvement dealers’ associations met during the recent Hardlines Conference to formalize their union under an umbrella association, the Canadian Retail Building Supply Council (CRBSC).

Those associations: The Atlantic Building Supply Association (ABSDA), Quebec Hardware and Building Materials Association (AQMAT), Lumber and Building Materials Association of Ontario (LBMAO), Western Retail Lumber Association (WRLA), and the Building Supply Industry Association of British Columbia (BSIA), have been working behind the scenes to create a unified voice for the industry under the umbrella council. Each group will be an equal shareholder in CRBSC.

Richard Darveau, president and CEO of AQMAT, and current CRBSC chair, took the occasion of the conference, which had gathered 165 leaders from retail, wholesale, and vendor sides of the industry in one room, to announce the formalization of the CRBSC and its first board meeting, which took place following the conference itself.

“The potential force we will represent together is impressive,” Darveau told the group. “The total membership of our five associations is more than 3,000 retailers, more than 500 suppliers, and all the buying groups and distributors involved in the market.” He added that the drive to unify efforts is a direct response to the needs and desires of the retailers, buying groups, and suppliers in this industry.

Key initiatives of CRBSC will be to provide a forum that allows members to share ideas, information, and best practices for the betterment of the hardware and building materials industry in Canada. It intends to represent this sector before federal government authorities and to promote and defend the interests of its members by undertaking communication initiatives, taking policy positions, and offering educational activities.

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WANTED: VENDORS INTERESTED IN INCREASING THEIR E-COMMERCE SALES

We’re seeking vendors who want to meet top North American e-Retailers. HARDLINES is hosting meetings with senior buyers at the first-ever Home Improvement eRetailer Summit.

The eRetailer Summit, October 26-28, 2016 in Fort Lauderdale, Fla., has been developed to connect home improvement manufacturers and distributors with prominent online retailers who are interested in increasing online sales of home improvement products.

The Summit will provide a forum for eRetail leaders to share their vision and objectives with a select group of vendors, who will get face time and the chance to share strategies. The intimate environment of the eRetailer Summit will help all sides work better together to optimize the Internet as a distribution channel. Click here to see the full lineup of eRetailers confirmed so far: http://eretailersummit.com/.

This is an invitation-only event that will be held at the Hilton Fort Lauderdale Beach Resort, October 26 to 28, 2016 in Fort Lauderdale, Fla. Special Introductory rates for Hardlines Subscribers. Contact Beverly Allen: 1-647-880-4589 or bev@hardlines.ca.

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October 17, 2016 Volume

xxii, #39

“The important thing is not to stop questioning.”
—Albert Einstein (German theoretical physicist, 1879-1955)

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Lowe’s ups price for RONA with new offer to buy preferred shares

MOORESVILLE, N.C. & BOUCHERVILLE, Que. — Lowe’s Cos. says it has entered into a definitive agreement for the acquisition of RONA’s outstanding Class A preferred shares for $24 per share in cash. Lowe’s will make the purchase through its wholly owned Canadian subsidiary.

The latest offer is worth $165.5 million to the holders of the 6.9 million preferred shares. The initial offer from Lowe’s for RONA, which totalled $3.2 billion, included an offer of only $20 per share for the preferred shares. Those shares at the time were valued at $25, which left a lot of those shareholders opposing the deal outright. Lowe’s says the new offer reflects the company’s desire to simplify accounting around the RONA takeover—but it also means dividends would no longer have to be paid to the preferred shareholders.

RONA’s board of directors has unanimously approved the transaction and will hold a meeting for preferred shareholders to vote on the decision sometime in November. The deal needs approval by two-thirds of the shareholders to be accepted. However, Fidelity Investments Canada, a major holder of the preferred shares, has announced it will vote in favour of the sale.

If it goes through as planned, the deal is expected to be completed before the end of the year.

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Home Hardware ranked one of Canada’s top brands

ST. JACOBS, Ont. — Home Hardware Stores Limited has once again been recognized as one of the most influential brands in the country. According to this year’s ranking by Canadian Business magazine, Home Hardware came in at number two. Sports equipment and clothing company MEC (aka Mountain Equipment Co-op) held on to the top spot for the second year in a row.

The list of Canada’s Top 25 Brands is reserved for companies that connect most with their customers. An online survey asked approximately 1,500 Canadians to provide their opinions on key aspects of a company’s reputation, including the quality of its products and services, customer service, commitment to innovation, and community involvement. A score is then given to each brand based on the results. 

“We are extremely proud to be recognized as one of Canada’s top brands,” said Terry Davis, CEO, Home Hardware Stores. “Canadians know our brand stands for exceptional customer service, quality products, and expert advice.” The dealer-owned co-op climbed in the rankings from number 12 last year.

In the category of “Product and Service Quality,” Home Hardware took first place, with a 99.6% overall brand rating.

The list included companies from all sectors of business, including WestJet (number three) and Tim Hortons (number four). In the retail home improvement sector, RONA weighed in at 21st spot, down from 18 last year. Canadian Tire was number six, climbing seven spots from number 13 last year.

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Store management lessons: leading by example

SPECIAL REPORT — For Jillian Sexton, COO of Hector Building Supplies in Pictou County, N.S., leadership is about your actions. As a young girl, she worked her way up in the family business rather than walking into a management position. And she continually works to prove her commitment simply through her presence.

“I think showing up, being there, that’s really key,” says Sexton. “If we hold a big event on the weekend, I show up too. I’m not just asking them to go in and do things. I really think that’s the secret to both your customers and your employees feeling like you’re invested.”

Susan Robinson took over Fletcher Ace in Princeton, B.C., in 2012. She moved to the small community of 2,700 from the Lower Mainland, nearly three hours away. The resource-dependent town has changed a lot since a local mine reopened, but it still faces the challenge of isolation. Princeton is at least an hour and a half away from any major centres.

Robinson’s charitable efforts in town focus on addressing those needs. She says the store contributes to about 50 to 75 charities in a year, with a focus on medical-related support, since there are only a few doctors in town.

It’s easiest for staff to get on board when their boss is passionate about their work. That kind of enthusiasm is catching. As Kim Ytsma, from Alliston Home Hardware in Alliston, Ont., says, “When you lead by example, others will follow.”

(Our full article on leadership appears in the upcoming edition of our sister publication, Hardlines Home Improvement Quarterly magazine. Free to dealers across Canada! Click here to see a recent digital edition and subscribe yourself! —Editor)

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Canadian housing starts shoot up in September

OTTAWA — Housing starts climbed in September, rising 19.8% to 220,617 units, up from 184,201 units in August. Urban starts increased by 19.7% seasonally adjusted to 201,848 units, with the biggest gains in multiple urban starts, which were up 22.3%. However, single-detached urban starts showed healthy gains, as well, increasing by 14.5%.

“Housing starts were on an upward trend in September, as residential construction increased across the country, with the exception of Ontario, where the multiples segment softened to levels that are more consistent with household formation,” said CMHC Chief Economist Bob Dugan. “Quebec saw the largest gain in housing starts due to the development of new rental apartments intended for seniors.”

In September, the seasonally adjusted annual rate of urban starts increased in British Columbia, Quebec, the Prairies, and Atlantic Canada, but decreased in Ontario.

In the Greater Toronto Area, Canada’s single largest market, housing starts dipped to 30,232 units seasonally adjusted in September, down from 40,406 units in August. The decrease was mainly a result of fewer apartment starts. “September saw fewer apartment starts in Toronto than earlier in the year, slowing the overall housing starts trend in the GTA,” said Dana Senagama, CMHC principal market analyst for the GTA.

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