Each year the Hardlines Conference is marked by a wide array of talented speakers from both within and beyond the retail home improvement industry. The 2023 roster will be no different, including retail executives from two of the country’s top banners.

Cody Smith (pictured left) is director of Home & Building Solutions, the hardware and LBM division of Federated Co-operatives Ltd. Since joining FCL in 2000, Smith has held various positions in Home & Building Solutions and was promoted to director in 2018. Under his leadership, the department provides strategic partnership and services to over 90 Co-op Home Centres across western Canada. These stores collectively represent more than half a billion dollars in retail sales, making FCL one of the retail giants of western Canada.

Another important retail network will be represented on the Hardlines stage during this year’s conference, as well. Jean-Sébastien Lamoureux is senior vice-president, RONA affiliates, wholesale, and public affairs. He joined Lowe’s Canada, now RONA inc., in 2017 as VP communications and public affairs. He was promoted to SVP, public affairs, asset protection, and sustainable development in 2018, and then to his current role in 2022. Prior to joining RONA, he was a VP at National Public Relations, one of Canada’s leading public relations agencies.

RONA inc. consists of more than 440 stores nationwide, including 211 independently owned, or affiliate, dealer stores. Lamoureux oversees those affiliate stores. Together, they represent more than $2 billion in retail sales.

Under new ownership, the RONA business in Canada is refocusing on winding down the Lowe’s banner in this country and getting behind the RONA affiliate dealer network. Lamoureux will share the latest on where this retail giant is headed.

These are just two of the retail leaders who will be featured at the 27th annual Hardlines Conference. For our complete lineup of presenters, click here.

(The 27th Annual Hardlines Conference will be held at the Fairmont Chateau Whistler resort Oct. 17 and 18, 2023. As a Faithful Hardlines Member-Subscriber, you can use the code HARDLINES23 to get 20 percent off registration! Register here!)

Has the flow of building materials finally resumed its pre-Covid status? Is the broken supply chain fixed at last?

“Yes, I would say that most of the supply chain issues are behind us now,” said Russ Permann, president and CEO of Taiga Building Products, Burnaby, B.C. “We’re not having trouble accessing materials and getting things where they need to be.”

“Sure, fill rates are back up to normal,” agreed Mary Lohmus, executive vice president, Ontario and western Canada, for Goodfellow Inc., the national distributor in Delson, Que. “There are no real supply shortages anymore on our products.”

“The new normal? Yes, I would say,” concurs Mike Schneider, vice-president of business development for Woodstock, Ont.-based Gillfor Distribution.

But those optimistic forecasts are based on the question of whether the shortages of building materials—putting dealers “on allocation”—are behind us. When it comes to pricing—and the economy—the crystal ball gets a lot murkier, these executives warn.

“I think that some of the inflationary pressures we felt through the pandemic are easing on a number of products,” Taiga’s Permann says. “But I think we’d be naïve to believe that they will move back to their pre-pandemic costs in many cases. I’m not convinced that all of the increases that we experienced over the pandemic will necessarily be erased. Some of them will be, no doubt. But I don’t think in their entirety they will.”

But Canada’s building materials industry does not exist in a vacuum.

“It’s also about the world context,” points out Marc Séguin, president of CanWel Building Materials Group in Vancouver. “It’s not strictly North America. There could be something catastrophic happening overseas.”

Séguin believes that the economy of this industry is still motoring on, based on projects that were started during the pandemic. But he warns that the latest data indicate housing starts are coming down and the resale market has slowed, which affects reno spending.

During the height of the pandemic, all of the LBM distributors overcame tremendous obstacles—as did their retail customers. As they were forced to figure out new ways of doing things, they were able to ride out the product shortages while the supply chain regained stability.

RenoRun, the Montreal-based contractor delivery service that applied for and was granted creditor protection in Quebec on March 28, has been given an extension by the province’s Superior Court as it seeks a buyer or investor. The company says there are a number of potential buyers that have shown interest.

RenoRun became a thriving online business after breaking out of its Montreal base in 2018 to become a significant option for contractors in Toronto and Austin, Tex., its test market in the U.S. The firm, which provides Instacart-style delivery for construction materials, received a US$142 million investment last year led by Tiger Global Management. Since then, ballooning interest rates and disagreements with potential investors have landed it in financial difficulty.

Court documents indicate RenoRun owes about $55 million. However, it also has a number of companies that are interested in it, including several that have signed non-disclosure agreements to have access to its financials. Its last-mile delivery service would make it a good fit for a major home improvement retailer like Home Hardware or RONA inc.

Meanwhile, RenoRun is going through some internal changes, as evinced by the departure of its top merchant, Igor Halencak. He spent the past year at RenoRun, starting out in a consulting role and then moving up VP merchandising. But he has now joined Princess Auto as vice-president of merchandising (see People on the Move in this issue—Editor).

A new survey of retail dealers by the Quebec industry association AQMAT has revealed that attitudes about customers may differ—including from the customers themselves. The survey was shared at the association’s Congrès des décideurs, a conference held last week in St-Hyacinthe, Que.

For example, while 67 percent of customers surveyed said they can find their way around a hardware store without help, dealers believe that 63 percent of their customers are typically looking for assistance. However, 42 percent of dealers and 46 percent of customers agreed that customers expect a high level of customer service in these types of stores. And the dealers themselves felt those customers want more engagement from staff than those staff can reasonably provide. Nor is this kind of service expected or given in other retail settings such as grocery or convenience.

AQMAT is using these findings to push for a change in the number of hours hardware and home improvement stores should be expected to stay open. Given the pressure on staff to provide the kind of detailed advice and product knowledge that typifies their role, these workers deserve and need more time off, says AQMAT president and CEO Richard Darveau.

And even though more and more hardware and building products are being purchased online, customers still seek out the advice of workers in home improvement stores. The survey bore this out: only seven percent of customers surveyed buy hardware or building materials online, and even then, only occasionally. This approach to purchasing only puts more pressure on store staff, a situation further exacerbated by the difficulty nowadays of finding suitable retail help, resulting in poor service, long lines, and disgruntled customers.

To reinforce the effort to lessen the stress on dealers, the survey asked homeowners whether they would prefer a hardware store with reduced hours or limited access to qualified staff. Homeowners voted 61 percent in favour of the former option.

Almost two-thirds of dealers believed that closing on Sundays would not negatively impact their customers, with 68 percent of homeowners agreeing. However, the idea of closing on a weekday was more concerning to dealers, 87 percent of whom disagreed with this option, versus only one-third of homeowners who opposed the idea of a weekday closing.

Acutely aware of the labour shortages facing its members, AQMAT is currently in discussions with its members make its intentions known after further discussion. One thing is sure, says Darveau: the scarcity of labour affects the customer experience and some kind of action will have to be taken.

Igor Halencak has joined Princess Auto as vice-president of merchandising. Halencak is well known for his time at Lowe’s Canada, which he joined in 2013 after exiting Sears Canada. He moved through a variety of roles there before being appointed EVP of merchandising and marketing during his last year and a half at Lowe’s Canada. Most recently, Halencak spent the past year at RenoRun, where he started out in a consulting role and then became VP merchandising. RenoRun has since fallen into bankruptcy protection. Halencak has confirmed that he will relocate to Princess Auto’s head office city of Winnipeg.

Tom Newton has founded Trillium Executive Coaching. He’s held executive positions in sales, marketing, and general management with companies such as Deft, M-D Building Products, and ODL Canada. But now, he’s using his experience to provide leadership coaching to emerging, mid-level, and senior leaders, as well as teams. Newton is accredited as a Professional Certified Coach and holds graduate certificates in Executive Coaching and Advanced Coaching Practices from Royal Roads University. (For more information, check out his website or email Newton directly.)

Greg Hicks, president and CEO of Canadian Tire Corp. is the winner of the Retail Council of Canada’s Distinguished Canadian Retailer of the Year. The RCC said the award goes annually to a retail leader who “has demonstrated outstanding business success, innovation, community commitment, and exceptional leadership within their corporation, the retail industry in Canada, and the community at large.”

MSL has appointed Kevin Good to a newly created territorial manager position, with responsibility for British Columbia and Manitoba. Good brings 20 years of experience in general renovations and soundproofing to the role. Garry Slezak will continue to cover Alberta and Saskatchewan. In addition, Alessia Floria has joined MSL’s marketing department as a digital marketing specialist.

DID YOU KNOW…?

… that The 2023 Hardlines Conference will take place Oct. 17 and 18 at the Fairmont Chateau Whistler Resort in Whistler, B.C.? The two-day program includes speakers from leading home improvement organizations such as RONA, Home Depot, Taiga Building Products, Federated Co-op, and Ace Canada. Hardlines subscribers can take advantage of a 20 percent discount on registration, while special pricing is available to dealers.

RETAILER NEWS

Paul Sharpe, owner of the RONA store in Guelph, Ont., has acquired another location. He’s taken over BFD RONA Building Centre in nearby Kitchener, Ont. Major renovations have already been completed, including a new pro desk and a lumber yard redesign.

Target stores in the U.S. have upped their garden centre game, with a new up-market line of plastic plants. The retailer has developed the line with “plant stylist” and author Hilton Carter, who has worked with Lowe’s before.

The Bay opened its 25th and final Zellers location last week. This one is in the Hudson’s Bay at Place Rosemère in Quebec. The retailer promises that customers can expect a “playful shopping experience packed full of low prices” with “a core focus on design and value—and a hint of the nostalgia” associated with the venerable Zellers brand.

A report from the Information and Privacy Commissioner for British Columbia says Canadian Tire broke privacy laws by deploying facial recognition technology (FRT) in the province’s stores. Canadian Tire has now removed the facial ID devices, which the company says were used for loss prevention to detect the presence of “persons of interest.” The commission investigated four Canadian Tire stores over three years.

SUPPLIER NEWS

3M Co. has announced it is slashing about 6,000 positions worldwide at a time when discretionary spending is down. The conglomerate, which manufactures power tools and personal protective equipment in addition to the Scotch Tape and Post-It Notes brands, employed around 92,000 people at the end of the last year.

Faced with “challenging demand,” West Fraser Timber Co. saw its first-quarter sales inch up to $1.627 billion from $1.615 billion in the fourth quarter of 2022. Earnings for the period dropped to $42 million from $94 million in Q4 2022. Seasonal effects, as well as higher mortgage rates that moderated U.S. new home construction, impacted West Fraser’s lumber and North America EWP [Engineered Wood Products] businesses.

ECONOMIC INDICATORS

Retail sales edged down by 0.2 percent to $66.3 billion in February. Sales decreased in six provinces, and in four of nine subsectors which represent 48 percent of retail trade. Leading the decline was a 5.0 percent drop in gasoline and fuel sales. Sales in LBM and garden categories posted a 0.2 percent uptick from January. (StatCan)

NOTED

According to a study by the Canadian Federation of Independent Business, labour shortages have pushed the average small business owner to a workweek equivalent of eight days, or up to 54 hours. “Owners have to work more hours, or they have to choose to have their employees work more hours,” said CFIB economist and co-author Laure-Anna Bomal.

Under new owners, RONA has begun actively communicating its intention to eventually eliminate the Lowe’s banner in Canada. Online ads have appeared nationally that are aimed at customers who shop Lowe’s. The ads tell those customers that Lowe’s Canada stores will convert to the RONA brand.

The headline to one of the online ads is, “Lowe’s knows warranties.” The text that follows reads: “And we know you care about those warranties. Heck, why wouldn’t you? They’re WARRANTIES after all. So, we want you to know that any and all warranties issued by Lowe’s will be honoured. Yes, even after we change our name to RONA.” Another web page assures customers that, “Lowe’s knows we owe everything to our customers. So we want you to know this: We got you.”

The ads link to a page on the Lowes.ca site outlining what customers can expect from the transition.

Lowe’s sold off its Canadian division earlier this year (the finalized deal was announced Feb. 3). The Lowe’s Canada business was acquired by a New York City-based private equity firm, Sycamore Partners. All of Lowe’s Canada’s retail brands, consisting of RONA, Lowe’s, Réno-Dépôt, and Dick’s Lumber, are now owned by Sycamore.

The banner conversion process involves keeping those Lowe’s customers loyal to RONA. As a result, the Lowe’s Canada site indicates that the RONA stores will continue to carry Lowe’s private-label brands, including Craftsman. In addition, the retailer intends to honour all Lowe’s Canada gift cards, service agreements, financing arrangements, and warranties.

The company also intends to continue to offer its VIPpro program, a loyalty platform for contractors and pros.

The messaging from RONA inc. about the conversion is meant to assure customers that they will continue to be well looked after. “The conversion of the Lowe’s stores will have no impact on you,” says the online messaging. “You can count on our 26,000 employees across Canada to be there for you as you have always been there for us. We thank you for your business, your trust, and your loyalty.”

The Hardlines Conference takes to the road starting in 2023 and our first destination will be Whistler, B.C. Our 27th annual conference will take place Oct. 17 and 18 at the Fairmont Chateau Whistler.

The Hardlines Conference is the only national event for the home improvement industry that is open to all banners and suppliers. We take great pride in being able to host top retailers and buying group executives from across the country, as well as leading wholesalers and manufacturers. And this year we are proud to work closely with the Building Supply Industry Association of British Columbia to provide a world-class event to match the world-class destination.

The association is celebrating its 85th anniversary this year, so involvement in the conference has even greater significance, says Thomas Foreman, president of the BSIA of B.C. The association’s birthday celebration will be an important part of the proceedings.

“With 85 years behind us, we are celebrating a very significant milestone,” says Foreman. “This is a once-in-a-lifetime opportunity to join the Hardlines Conference and a great lineup of inspiring, insightful speakers who will stretch your imagination. And it’s in our backyard—so take advantage of it!”

The BSIA’s birthday bash will be held during its annual social event and industry awards program, the Orion Awards. It will take place the day before the conference, Oct. 16, from 4 pm to 5 pm right at the event hotel, the Fairmont Chateau Whistler. All BSIA members have access to special pricing for the conference of almost one-third off regular registration. (Click here for more details or contact Michelle Porter at Hardlines.)

Foreman is working with his team to feature a trade show at the conference. The tabletop show will give supplier members of the BSIA the opportunity to present their products and services to industry leaders from across the country. So far, says Foreman, 12 exhibitors are confirmed, and he anticipates at least another 10 are already committed to participate.

Exhibiting companies must be registered delegates at the Hardlines Conference, but through their BSIA membership, they are eligible for the BSIA discount off the regular admission. (Click here to learn more about the BSIA and the tabletop show!)

The speaker line-up at the 27th Hardlines Conference includes executives from RONA, Federated Co-operatives Ltd., and Taiga Building Materials. In addition, our presenters include thought leaders and analysts from the North American Hardware & Paint Association and economics advisory firm Altus Group.

(The 27th Annual Hardlines Conference will be held at the Fairmont Chateau Whistler resort Oct. 17 and 18, 2023. As a Faithful Hardlines Member-Subscriber, you can use the code HARDLINES23 to get 20 percent off registration! Register here!)

Orgill’s family-owned status offers advantages to workers, says its senior HR exec

Laura Freeman is the executive vice-president of human resources and chief human resources officer at Orgill, Inc. She joined the company earlier this year and Hardlines had the chance to sit down and talk with her.

Before joining the giant Memphis-based hardware wholesaler, Freeman spent seven years heading up HR as chief people officer at Schnucks Markets, a family-run chain of supermarkets in the American Midwest.

Despite the differences in the two businesses, Freeman found some similarities that made the transition an easy one. One similarity between Orgill and her previous employer is the fact that Schnucks Markets is a privately held family-owned business, “and Orgill is the same. There’s some really great things about that—not being publicly traded—but more importantly, it’s the foundation that’s there.”

Her grocery gig was with a company that’s almost 90 years old, while Orgill is likewise venerable, having been founded more than 175 years ago, “and you don’t find companies like that very much, that are kept in the family.” Freeman says the values and culture of a family-based business is something “that really means a lot.”

She says the changes happening in the workforce during the pandemic had started well before the arrival of Covid. “Even pre-Covid we were seeing our workforce change. It did not all of a sudden started changing; it was just accelerated.”

With up to four generations working side by side, they all have different needs and goals. “From an HR perspective, you really have to think about that employee proposition across all different areas and then across all the different generations you have in your workforce today.”

(We have a more in-depth interview with Laura Freeman in the latest edition of our sister publication, Hardlines HR Advisor. This free monthly newsletter will help you manage the people side of your business more effectively. To subscribe at no charge, click here now!)

Loyalty means more than points, something smart retailers are figuring out

As retailers have become larger and more powerful, pursuing their own programs has also become an increasingly popular option. According to one loyalty program executive who asked not to be named, “They want to deal with their own databases, they want to be dealing with their own customers. They want to keep their information to themselves. I think it’s more sensitive now.”

The executive stresses that the heart of data collection is that it’s not personal. These platforms are not trying to get personal data on individuals so much as create a consumer profile they can cater to more effectively, she adds.

Ken Hughes sees elements like points programs as part of a larger vision of the future of retail that dealers would be wise not to overlook. Hughes is a consumer behaviouralist affiliated with University College Cork, Ireland. An internationally renowned speaker on retailing, Hughes believes that success in retail will always require retailers to understand their customers. But Hughes urges retailers to go beyond that thinking. “You have to get inside the head of today’s consumer.”

Through all that the digital, virtual world embodies, it will remain crucial to maintain the capacity for connecting with other people. For retailers, the idea of the “customer lifetime model” is still strictly transactional, which is no longer enough. The connection has to be deeper; it has to be real. “We need to get to that place with our customers. We need to give them some reason to connect with us as a brand,” says Hughes.

That’s where loyalty programs come in. Their real advantage lies in the data, something that smart retailers are identifying and counting on to drive awareness of who their customers are and what they want.

(This article is excerpted from a larger story that appears in the latest edition of our print publication, Hardlines Home Improvement Quarterly. HHIQ is mailed out to 11,000 dealers and store managers across the country. It’s a free publication for retailers. Click here for a free subscription or to update who should get it at your store!)

Martin Lecomte, BMR’s VP of corporate store operations and dealer service, has left the company. He had spent almost nine years there in various store operations roles at BMR, and served as far back as 2006 at BMR’s parent company, Sollio (then La Coop fédérée). According to a post on LinkedIn, Lecomte is “carrying out some personal projects in the coming months.” A BMR spokesperson says to watch for Lecomte to assume a new professional challenge within the BMR family.

BP Canada has promoted Yves St-Cyr to senior national director, national accounts. He remains primarily responsible for business development and maintenance of national accounts, as well as contributing to the development of sales for specialized distributors. St-Cyr joined BP in 2017 as national account manager after more than 10 years at Roxul.

George Weston Ltd. and Loblaw Cos. have announced the appointment of Per Bank as president and CEO of Loblaw. Bank will formally join the company by Q1 2024. He comes over from Salling Group A/S, a giant Danish grocery retailer with 1,700 supermarkets in three countries. The appointment anticipates the planned retirement of Robert Sawyer, Loblaw’s COO, at the end of this year. Sawyer is known in this industry for his stint as president and CEO of RONA inc. from 2013 to 2016. Before joining RONA, he had been COO at grocery retailer Metro inc. He replaced Robert Dutton, who had been at RONA for 35 years and built the company into a national player. Sawyer’s mandate was to slash costs, effectively readying the company for sale to Lowe’s Cos. That deal happened in May 2016.

DID YOU KNOW…?

… that the latest instalment of the Hardlines podcast series, What’s In Store, is now available? This episode features Joel Seibert, an owner and the business development manager at Calgary’s Mountain View Building Materials. Seibert talks to Hardlines about strategies for identifying different personalities on a sales team and rewarding them according to their distinctive needs (hint: communication and transparency are key). Sign up now for free and get updates about our latest podcasts right to your inbox!

RETAILER NEWS

Slack Lumber is the latest dealer to join the Sexton Group. The business is located in York, Ont., south of Hamilton. The owners are Mykel Spinks, Nicholas McCollum, and Jonathan Lowenberg.

Peavey Mart has renewed its partnership with prominent Canadian athlete Brooklyn McDougall. A decorated long-track speed skater, McDougall has represented Canada at numerous international competitions, setting new records. As part of the renewed partnership, McDougall will appear at various Peavey events, including store openings and community initiatives. She will also be featured in Peavey Mart marketing campaigns.

RONA has been named one of Canada’s Greenest Employers for a third consecutive year as part of Mediacorp’s Canada’s Top 100 Employers contest. “Creating a culture of sustainability that reaches all areas of the company is very important to us at RONA,” said Mélanie Lussier, director of external communications and sustainable development, in a release.

Walmart Canada Store 1033 in Edmundston, N.B., was recently named the retailer’s 2022 Store of the Year, beating out more than 400 stores across the country, the mass market retailer announced.

SUPPLIER NEWS

PPG’s Glidden paint will become Walmart’s primary paint brand in the U.S., in a multi-year agreement that expands the existing relationship between manufacturer and retailer. Starting this month, U.S. customers at more than 3,800 Walmart stores can choose from 25 premixed colours. At the same time, PPG is not neglecting its independent dealers in the U.S. From May 1, it is expanding its offering to independents. That includes the addition of Glidden Fundamentals exterior paint and a wider selection of ready-mixed paints for DIYers.

Last month, Loyalty Ventures Inc., the U.S. parent of Air Miles, filed for bankruptcy protection south of the border, while the same day its Canadian subsidiary sought bankruptcy protection under the Canadian Creditors Arrangement Act. Now, shares of Loyalty Ventures Inc. have reached penny stock status. They closed at $0.013 on the NASDAQ last week. A year ago, the shares traded at $16. Five years ago, their price was $28. BMO is trying to rescue the Air Miles program by buying it.

ECONOMIC INDICATORS

The annualized rate of housing starts fell by 11 percent in March to 213,865 units, compared to February’s 240,927 units. The rate of urban starts fell by 12 percent to 192,545 units, with single-detached urban starts down 16 percent. (CMHC)

Sales of existing Canadian homes rose by 1.4 percent in March compared to the previous month. That followed an identical increase in February, the first back-to-back monthly gains in more than a year. However, the actual number of transactions in March, not seasonally adjusted, came in 34.4 percent below a historically strong March 2022. (Canadian Real Estate Assoc.)

NOTED

The shuttering of the Sears chain is still reverberating on the landscape of Canada’s malls more than five years later, The Globe and Mail reports. At some locations, like Toronto’s Fairview Mall and McAllister Place in Saint John, major overhauls followed the banner’s exit. Kate Camenzuli, VP of retail at realty services firm CBRE, told the Globe that most of the former Sears properties remain dedicated to retail, but have been subdivided into smaller units, “allowing new product to come into the market.”

OVERHEARD…

“From an HR perspective, you really have to think about that employee proposition across all different areas and then across all the different generations you have in your workforce today.”
—Laura Freeman, executive vice-president of human resources and chief human resources officer at Orgill, Inc., in an exclusive interview that appears in full in the latest issue of our sister publication, Hardlines HR Advisor.

Cindy Jardim is The Home Depot Canada’s senior manager of trend and design. At a recent open house hosted by Home Depot Canada, she gave an overview of some of the trends in style, colours, and finishes that are driving the retailer’s assortments for this spring and summer.

A big part of the season’s offerings is lines of patio furniture and outdoor living products. The showcase presented a varied sampling of Home Depot Canada’s newest styles for outdoors. “At Home Depot, we are really stretching our look and feel of patio,” Jardim said.

Where the retailer used to focus on a more traditional look, it’s now getting more style minded. Products like pillows and cushions present “clean lines and colours that will stand the test of time.” And those prints and patterns are now being developed in-house, Jardim added. “It’s very on-trend—and affordable.”

By keeping styles more up to date, Home Depot’s merchants want to stay more “trend-right” while being compatible with the traditional looks that have been indicative of Home Depot in the past. The retailer can maintain a broad assortment that is appealing to a wide range of customers, “but curated and co-ordinated to work together so you will find something to suit your style.”

Another trend Jardim identified was for products that address smaller spaces. Recognizing the homes many Canadians find themselves in, whether co-owning or sharing, or living in condos, Home Depot is working to provide products to meet that demand. “Small spaces are really big for us,” Jardim said.

A recent open house hosted by The Home Depot Canada provided a showcase for product trends to watch for this spring and summer. The event was held in Toronto and attended by a group of merchants from Home Depot’s head office. Hardlines had the opportunity to be there.

Smart Home. Craig Bowler is the divisional product merchant for lighting, including Hubspace, Home Depot’s own lighting and smart home brand. Bowler says the Home Depot stores now carry 50 smart home products and another 50 will be added by year’s end. Those lines include everything from smart alarms, door locks and chimes, and security devices to lighting and light bulbs, and even ceiling fans.

Smart Home is finding its place outdoors more than ever this year, Bowler says. Products here include path lights, spotlights, and string lights. “It allows the customer to really personalize the space.”

The technology behind these products is advancing, making these smart devices easier than ever to install and use. “All our Hubspace products can be set up in 60 seconds or less.” The smart home technology also connects with other Home Depot private brands, including Hampton Bay, EcoSmart, and Defiance.

“Don’t be afraid of technology and smart home,” Bowler urges.

Outdoor living. Meredith Clayton (shown here) is the Home Depot merchant for patio as well as interconnected merchandise for online. This season, natural finishes are being mimicked with faux stone and wood lookalikes. Different furniture styles can be used in the same space, creating different “zones” in the yard. Clayton points out that Home Depot Canada has a new partnership with designer Brian Gluckstein.

Clayton expects that people will be watching their wallets this spring. The range of products in her category have been selected to satisfy that expected trend. Rather than investing in completely new patio sets, customers will mix and match new items with existing furniture and accessories.

“So add one piece—a chair or a pillow—with coordinating patterns. It’s for the customer who doesn’t want to go big and instead wants to mix it up.”

Not surprisingly, any products that can make Canadian climates more comfortable are gaining in popularity. Giant space heaters, like the gas-powered ones used in restaurant patios, have been downsized and made suitable for home use. “It’s on trend in outdoor heating, trying to extend the season a little more,” Clayton says.

Tools. Westley Cannata is Home Depot Canada’s senior merchant, tools. He said that the retailer has added a whopping 280 new power tools. Home Depot’s proprietary Ryobi brand, he says, represents a big, cohesive assortment using the same portable power system. “That’s the biggest power tool platform in Canada,” he says.

The new lines include a lithium battery charging system that uses USB ports. Cannata says the line landed at the end of 2022, with eight tools that use the USB cell battery. Products include a rotary tool, compact flashlight, and an LED flip light. The program will have 31 tools by the end of the year. The battery can even be used to charge a phone, says Cannata.

B&Q, the UK big box home improvement retailer, has published its second annual “Slice of Home Life” report, exploring the mindset of UK households. The report examines how people are living in and adapting their homes to cost-of-living increases and other challenges.

And a lot of it reflects consumer trends here in Canada.

The report identified four emerging trends: pets taking priority, the rise of the utility room, the death of the open floor plan, and accidental sustainability.

Among UK consumers who own pets, one in three admitted that their furry friends dominate their home, with 38 percent saying they have reorganized or restyled their homes to make room for the products needed for their pets. Almost two out of five have considered moving to a larger home to make more space for their pets.

The open concept floor plan is giving way to more privacy. More than half of homeowners surveyed indicated that they find the idea of temporary partitions very appealing. That could include the addition of doors to divide up their open plan living area to create more private zones, creating a more intimate living room atmosphere. Larger rooms, says the report, can be more difficult or expensive to heat, lack privacy and leak too much noise, or allow cooking odours to spread from the kitchen.

One trend is distinctly English but reflects a move to a more North American-style home trend. The report uncovered that the utility room is the new middle-class “must-have.” A utility room is considered a practical space that takes the washing machine out of the kitchen. It frees the kitchen up, while providing a space for pets’ beds and bowls, as well as coats and shoes. The utility room makes room for both a washer and a dryer, enabling homeowners to dry their clothes without hanging them all over the house.

The B&Q report also reveals the unlikely way households are becoming “accidentally” more sustainable. With energy bills rising, 89 percent said keeping costs of energy bills down is important to them, which has resulted in households making decisions that have a positive impact on energy use, for reasons aside from directly protecting the environment. Plugging drafts, insulating lofts, and turning down the heat at night are all moves that help the environment. But these decisions were often made for their impact on reducing energy bills rather than for the benefit of the environment.

The desire for a second bathroom is another trend identified in the report. With more adults living under one roof, the pressure on bathrooms has mounted. It’s exacerbated by the fact that people spend more time there, with more toiletries than ever before. As a result, 54 percent of consumers surveyed indicated they would like another bathroom.

Liohn Sherer has been promoted to the role of president of Ideal Security. He takes the helm of the third generation of this family business. Sherer joined the company in 2016 and was previously executive vice-president. Based in Montreal, Ideal Security was founded in 1956 by Jack Jospe, who was eventually succeeded by his son, Joe, who expanded the company’s range beyond storm and screen door hardware to categories ranging from specialty window hardware to home security systems.

Steve Conroy has joined Central Builders Supply in Courtenay, B.C., on Vancouver Island, as director of operations and merchandise. He was most recently at Slegg Building Materials in the role of director of merchandising and supply chain.

At Lowe’s Cos., Juliette Pryor has been appointed vice-president, chief legal officer, and corporate secretary, effective May 3. Pryor joins the company from Albertsons, where she served as executive vice-president, general counsel, and corporate secretary. Pryor succeeds Bill McCanless, who has served as Lowe’s executive vice-president, general counsel, and corporate secretary since 2015, and advised the company last year of his intention to retire at the end of May.

DID YOU KNOW…?

… that the latest edition of Hardlines Dealer News is out now? In this issue, we look at the challenge of finding contractors for installed sales and how one RONA affiliate expanded its store network. Hardlines Dealer News is monthly and it’s free: click here to subscribe now!

RETAILER NEWS

RONA has welcomed Vantage Building Supplies in Vegreville, Alta., and its owners, to the network of RONA affiliated dealers. The owners are investing more than $1 million to expand the existing 4,500-square-foot retail space in two phases, adding a total of 5,500 square feet. Vantage Builders was founded in 1975 and the Vantage Building Supplies store was added in 2005.

Senso Group Building Supplies Inc. is the newest member to join AD, the North American hardware buying group. Senso has joined AD’s Building Supplies – Canada division (formerly TORBSA). Senso has three divisions of its own: building supplies, construction equipment and rentals, and waste management. The building supplies business was established in 2011.

BuildDirect, the omnichannel building materials retailer, reported total revenue of $92.2 million for 2022, an increase of 1.6 percent year over year, largely driven by the revenue contribution from BuildDirect’s acquisition of Michigan-based flooring retailer Superb Flooring & Design at the end of 2021. Full-year 2022 revenue from pro customers reached $77 million, up 35 percent from 2021, driven by the company’s overall shift in strategy to focus on pro customers, plus the acquisition of Superb. The company says it will continue to look for acquisitions of other pro-focused retailers.

SUPPLIER NEWS

Richelieu Hardware has reported Q1 sales of $403 million, up $18.5 million, or 4.8 percent, from $384.5 million in the comparable period of 2022. The past year’s acquisitions contributed 3.0 percent to the growth in sales. Sales in Canada came to $230.9 million, up 0.7 percent from $229.4 million a year earlier. Net earnings fell 25.4 percent to $22.6 million.

A Winnipeg-based group of door and window manufacturers is seeking bids for its assets under the court-appointed monitorship of Deloitte Restructuring. The firms include Polar Window of Canada and Accurate Dorwin. In February, the Winnipeg Free Press reported that the six companies combined had unsecured debts totalling $9.5 million in addition to $13.5 million in secured debt. One supplier told the paper the business was “under-capitalized.”

Regal ideas collaborations took first place in four categories at the North American Deck and Railing Association’s 13th annual National Deck Competition held in Clearwater Beach, Fla., at the end of March. Regal’s awards included the prize for best overall project: a collaboration between Regal ideas and Neighbourhood Fence and Deck.

ODL Inc., a maker of door glass and insulated blinds based in Zeeland, Mich., is expanding into exterior doors with its acquisition of Tru Tech Doors in Woodbridge, Ont. Tru Tech is a steel and fiberglass door manufacturer founded by John Careri in 1998. Careri will join the ODL team as EVP and president of the Door Division.

ECONOMIC INDICATORS

Investment in building construction rose slightly by 1.0 percent to $20.6 billion in February. Residential construction spending increased by 1.1 percent to $15 billion. Single-family home investment, up 1.3 percent, contributed the most to the growth. In the non-residential sector, spending rose by 0.8 percent to $5.6 billion. (StatCan)

NOTED

A report from Rider Levett Bucknall gives a snapshot of how many cranes are operating in each major city in North America. With data current to mid-Q1 2023, the latest RLB quarterly cost report shows that cities seeing an increase in cranes include Denver, Honolulu, Las Vegas, Los Angeles, and Seattle. But in terms of sheer numbers, Toronto tops the list. Canada’s largest city has a whopping 238 active cranes. By comparison, the U.S. city with the most cranes is Seattle with 51, followed by Los Angeles with 47, and Denver with 36.

The Hardlines Conference in 2023 will have a fresh look—and a new location. This year, the annual summit for industry retailers and executives is moving to Whistler, B.C., on Oct. 17 and 18.

Working closely with the Building Supply Industry Association of British Columbia, the Hardlines Conference will be held at one of the most stunning locations on the planet—the luxurious Fairmont Chateau Whistler resort, located at the base of Blackcomb Mountain. There we will welcome upwards of 200 dealers, retail executives, suppliers, and service providers to learn, get inspired, and network.

And if that isn’t reason enough to add this event to your calendar, the lineup of speakers who have already confirmed is guaranteed to make this a must-attend event.

Speakers confirmed so far:

• Jean-Sébastien Lamoureux, Senior Vice President, RONA Affiliates, Wholesale and Public Affairs
• Geneviève Gagnon, President, Gagnon La Grande Quincaillerie, Evolution Distribution and Evolution Structures
• Cody Smith, Director of Home and Building Solutions, Federated Co-operatives Ltd.
• Jim Inglis, Retail Consultant, former Home Depot executive
• Dr. Kyle Murray, Acting Dean of the University of Alberta School of Business
• Zaida Fazlic, Vice President, People and Culture, Taiga Building Products Ltd.
• Peter Norman, Vice President and Chief Economist, Altus Group
• Dan Tratensek, COO and Publisher, North American Hardware and Paint Association

The conference will also be the scene for the industry’s Outstanding Retailer Awards, which honour the best of Canada’s hardware and home improvement retailers from coast to coast.

With the involvement of the BSIA, the Hardlines Conference will co-locate with a mini-trade show, the BSIA New Product Showcase, offering a platform for suppliers and other vendors to present their newest innovations. The association will host its members in Whistler to honour the BSIA Orion Award winners as well.

“After attending many successful and enriching Hardlines Conferences in central Canada over the past years, we are excited to be working with the Hardlines Team in Whistler this year,” said Thomas Foreman, president of the BSIA of British Columbia. “We look forward to offering our west coast members an opportunity to join this informative and worthwhile national event.”

This year’s conference will feature some welcome traditions. The RONA Pub Night will take place Oct. 16, the night before the conference begins, to welcome delegates. The Home Hardware Cocktail Reception will precede the Outstanding Retail Awards Gala on Oct. 17.

(The 27th Annual Hardlines Conference will be held at the Fairmont Chateau Whistler resort Oct. 17 and 18, 2023. As a Faithful Hardlines Subscriber, you can use the code HARDLINES23 to get 20 percent off registration! Register here!)

BMR Group’s strength boosts 2022 sales at parent company Sollio

Sollio Cooperative Group held its 101st annual general meeting last month at Quebec City’s Centre des congrès. Hardlines was on the scene as Sollio’s top executives presented a summary of the co-op’s annual report. Sales of $8.9 billion in 2022 were up $1 billion from the previous year. A posted loss of $337.5 million loss was wider than the $21.5 million loss in 2021.

Olymel, Sollio’s food business, in particular faced challenges from a labour shortage and a backlog of hogs awaiting slaughter. The resulting outsourcing to external abattoirs added to the division’s costs. At the same time, the reopening of restaurants in many locales during the year mitigated against those impacts.

While Sollio’s Ag division swung from a loss to earnings of $19.6 million, the biggest strength of the co-op in 2023 was at BMR, which logged its best results in 55 years. Earnings soared to $53.8 million, a $25.6 million increase from $28.2 million in the previous fiscal year. Higher sales, resulting from increased commodity prices, contributed to what Sollio president Ghislain Gervais called “an excellent year for BMR.”

Sollio CEO Pascal Houle said BMR has fulfilled the aspirations that the company, then known as La Coop fédérée, had when it acquired the chain in 2013. Houle himself joined BMR that year as vice president, retail, rising through the ranks until he was named CEO in 2015. He has held that role with the parent company since 2021.

“When the co-op bought BMR in 2013, the main target was to diversify the co-op,” Houle told Hardlines. “It was really important in 2013 and it’s really important now.”

Alexandre Lefebvre, Houle’s successor as CEO of BMR, agreed that “the crisis we experienced over the last year with pork highlighted the need to diversify, and BMR brought that diversity.” He underscored that Houle “comes from the BMR family; it’s very close to his heart.”

Updated & Corrected: Remerchandising, refurbs at UFA Farm & Ranch stores

(We ran a story on UFA last week that contained factual errors. We have corrected and updated the story here. Hardlines apologizes for the errors and any confusion they have caused. —Editor)

With 34 stores in Alberta, UFA Farm & Ranch Supply has made keeping those stores up to date an ongoing mission. And this year, the co-operative is remodelling three of its outlets—in Stettler, Airdrie, and Fort Saskatchewan.

“Our customers can see we’re investing in the business and supporting the communities we serve,” said Glenn Bingley, the company’s vice president of agribusiness and supply chain.

Bingley stresses that the newest changes are more than tweaks, calling them “transformational.” The remodels include investments in new millwork, flooring, and lighting.

Another important part of the business for UFA’s operations is its cardlocks. Unlike the farm and hardware stores, which are in Alberta only, the co-operative has been expanding their presence in Saskatchewan with several additional petroleum locations as part of a multi-year strategy, Bingley says.

Meanwhile, the focus for the Farm & Ranch Supply stores is on remodeling and investing in their existing store network, and expanding assortments through product line reviews. In Red Deer, the retailer is locating the existing store and implementing a new build, a 16,000-square-foot outlet with 12,000 square feet of retail space on six acres. A chem shed will also be located on site, as well as a three-bay drive-through warehouse. “We are excited about the new location,” says Bingley.

The site will also include a cardlock that will feature state-of-the-art, high-speed pumps with clear and dyed fuel, wide lanes, DEF, and Dieselex Gold, UFA’s exclusive premium diesel offering.

Members and customers will be able to access the new Farm Store and Cardlock, conveniently located in Gasoline Alley in the southwest corner of the city, accessible for drivers travelling either way on the QE2 and those on the west side coming from Highway 2A.

Construction on the project will begin this year, with an anticipated opening in late 2024. During construction, the current Farm & Ranch Supply store will remain open. Once the new site opens, it will be closed, but the Bar W office and shop will continue to operate from the current location, as will UFA’s current Cardlock.

Will the Farm and Ranch stores follow the cardlocks into Saskatchewan? “Not at this time, but we definitely see expansion potential,” Bingley says.

Princess Auto is adding more stores this year to its network of hardware and automotive outlets across the country.

The privately-owned Winnipeg-based retailer has a store opening in Abbotsford, B.C., slated for the spring. It will be the seventh location in British Columbia. “It’s great to be able to serve our B.C. customers with another store,” said Marc-André Fournier, senior vice president, global sourcing, at Princess Auto (see People on the Move, below). “Abbotsford’s main industries are agriculture, transportation, and manufacturing. We’re happy to bring our unique assortment of products to serve those industries in Abbotsford and the surrounding communities.”

Catering to everyone from tradespeople to hobbyists, home mechanics and DIYers, the Abbotsford location will be 43,090 square feet in size.

The western expansion efforts follow Princess Auto’s additions to the Quebec market with an opening in Sherbrooke in the fall of 2022. An upcoming opening in Chicoutimi is scheduled for March 14. Those will be Princess Auto’s fifth and sixth locations in that province. The other Quebec stores are in Saint-Jérôme, Laval, Saint-Hubert, and Lévis. In fact, the Saint- Jérôme store was the retailer’s first in the province. Built in 2019, it was recently expanded with the addition of another 5,000 square feet of space.

In northern Ontario, a 35,000-square foot store has been erected in Sault Ste. Marie (shown here). It is also going to open March 14. Princess Auto now has over 50 stores across the country.

Doug Anderson, CEO of Peavey Industries, has been recognized as a winner of the 2022 EY Entrepreneur of the Year awards in the Prairies region. This annual award aims to recognize businesses that are leading in the areas of economic vitality and confronting challenges to improve the world.

Diana Windsor has been appointed senior vice president, sales for Blanco North America. She will lead all strategic and operative market activities for the company in Canada and the U.S. Windsor has more than 13 years of sales and management experience in the plumbing industry. Prior to joining Blanco, she was at Waterworks and held multiple senior roles at Watts Water Technologies and at Kohler

Chris West has been named president and CEO of Mega Group, the co-op buying group based in Saskatoon. While he was most recently at Lowe’s Canada in the role of SVP merchandising, his background includes roles at a number of European retail chains, plus stints at Walmart Canada and Canadian Tire.

DID YOU KNOW…?

… that the latest episode of the Hardlines podcast series What’s In Store has gone live? This time, we talk to Eri Mathy, head of business development and transformation at IKEA Canada. She shares her thoughts on IKEA’s omnichannel strategy, the impact of the pandemic on the meaning of home, and the retailer’s new smaller store concept. Sign up now to listen to these great insights from one of the world’s most successful retailers—and get updates on each new podcast!

RETAILER NEWS

RONA has added to its affiliated dealer network with the acquisition by an existing affiliated dealer of a new location in Quebec. Ducharme et Frère inc., owned by Philippe Mayrand, has purchased RONA Farnham, a corporate store in Farnham. With this acquisition, Mayrand becomes the owner of three RONA affiliated stores in the Montérégie region. Ducharme et Frère inc. was established in 1905 with the opening of its first store in Saint-Césaire. The third location is in Saint-Pie.

Lowe’s Cos. reported Q4 net income of $957 million, compared to $1.21 billion in the comparable period of 2021. Revenues of $22.45 billion were up from $21.34 billion in the previous Q4. For the full year, the company reported operating income of $6.4 billion on sales of $97 billion.

Gypsum Management & Supply Inc. reported third-quarter net sales of $1.2 billion for fiscal 2023, an increase of seven percent from the comparable period of 2022. Favourable pricing for wallboard and ceiling tiles was partially offset by declining single-family construction demand. Adjusted net income was $78.3 million, compared with $76.5 million in the previous Q3.

Target reported Q4 sales of $31.4 billion, while same-store sales edged up by 0.7 percent. For the full fiscal year, revenues rose by $3 billion to $109 billion. Operating income for the year came to $3.8 billion, down 57 percent from $8.9 billion in 2021.

SUPPLIER NEWS

Taiga Building Products reported Q4 sales of $400.8 million, down slightly from $412.5 million a year earlier. The decline was largely attributed to lower selling prices on commodity products. Earnings for the quarter amounted to $9.7 million compared to $10.3 million in the previous Q4. For the full fiscal year, sales of $2.19 billion were down by one percent from $2.22 billion, while earnings fell to $88.6 million from $92.7 million.

Registration is now open for exhibitors at the International Hardware Fair in Cologne, Germany, in 2024. Vendors looking to expand their markets can take advantage of advance pricing to get a spot at one of the world’s largest hardware and tool shows. The show specializes in the following product segments: hand tools, power tools and accessories; workshop and factory equipment and industrial supply; protective equipment; fastening and fixing technology; building and furniture fittings; interiors and furnishing; sanitary ware and fittings; chemical products; building materials, elements, and accessories and outside structures; automotive supplies and accessories; smart home; and industry services. Click here to register, or contact North American rep Kym Selph, sales and project manager for the event, 312-546-3957. The International Hardware Fair runs from March 3 to 6, 2024, in Cologne, Germany.

Canfor Corp. reported a Q4 sales decline of 12.6 percent to $1.37 billion. Adjusted earnings for the full year were $880 million. In announcing its results, the company also stated it “does not see a path forward” to resuming operations at its Taylor, B.C. pulp mill and is exploring other potential uses for the site.

ECONOMIC INDICATORS

Sales of new U.S. homes rose by 7.2 percent to an annualized pace of 670,000 units in January. That was the highest level since March 2022. At the same time, December’s preliminary estimate of 616,000 units was revised upward to 625,000 units. On a year-over-year basis, sales were down 19.4 percent. (U.S. Commerce Dept.)

OVERHEARD…

“Offering a welcoming environment where everyone feels safe and included has always been a priority.”
—Marc Macdonald, SVP of human resources at RONA inc., after the company was named one of Montreal’s Top Employers for the third consecutive year. The ranking, created by Mediacorp Canada, has assessed firms since 2006 on a range of criteria from work atmosphere and benefits to community involvement.

TIMBER MART hosted its first-ever hybrid national buying show Feb. 15-17 via its virtual cloud-based tradeshow platform and in-person at the Toronto Congress Centre.

“It’s finally bringing people together,” said TIMBER MART president and CEO Bernie Owens of the face-to-face event. “Everyone is so tired of Covid. It’s long overdue.”
Owens said that response from dealers was strong for the show, with delegates coming in from every part of the country.

In addition to the hundreds of TIMBER MART dealers in attendance, 270 vendor booths filled the 70,000-square-foot show. The hybrid nature of the event meant that dealers at home could use an app to interact in real time with vendors on the show floor. They had the ability to set up online meetings and generate purchases, and to host chats between attendees.

The show floor featured some innovations of its own, including a new pallet-buy area that presented a wide range of products for sale in pallet quantities. And of course, special buys only available at the show were a highlight. “The vendors have really stepped up here,” Owens said.

The centre of the show floor was a hub for TIMBER MART’s own services and programs. These included: TIMBER MART LBM Distribution, dealer marketing, merchandising, and banner support.

To highlight TIMBER MART’s partnership with the Canadian Football League, the Grey Cup was prominently positioned on the show floor for photo opportunities.

Home Depot meets forecasts with 2022 results, invests in front-line workers

The world’s largest home improvement retailer reported sales for the fourth quarter of fiscal 2022 totalling $35.8 billion (all figures USD), up 0.3 percent from the comparable period of 2021. Comp sales for the quarter dipped 0.3 percent, both in the U.S. and enterprise-wide. Profits remained flat at $3.4 billion.

The results met the company’s forecasts for “a challenging and dynamic environment,” said Home Depot chair and CEO Ted Decker, in a period that saw the company “navigating persistent inflation, ongoing global supply chain disruptions, and a tight labour market.”

And, of course, these latest results followed two of the best years of growth for the company—and the industry—in decades.

For the 2022 year, sales were up 4.1 percent to $157.4 billion. Comp sales increased 3.1 percent, with comps in the U.S. up 2.9 percent. Profits in 2022 reached $17.1 billion, up just over four percent over 2021’s $16.4 billion.

The company’s board of directors approved a 10 percent increase in its quarterly dividend to $2.09 per share, which equates to an annual dividend of $8.36 per share.

At the same time, Home Depot acknowledged its front-line workers by announcing it has committed to invest an additional $1 billion in annualized compensation for front-line, hourly associates. It will invest in wages, benefits, training, and career development for its associates. It. A spokesperson for The Home Depot Canada has confirmed this investment will apply to front-line Canadian workers as well.

“The most important investment we can make is in our people. We believe this investment will position us favourably in the market, enabling us to attract and retain the level of talent needed to sustain the customer experience we strive to deliver,” Decker said in a release.

Following a series of acquisitions in recent years, Gillfor Distribution made headlines last summer for its takeover of another large wholesaler, AFA Forest Products. According to Mike Schneider, vice president of business development for Gillfor, his company is well on the way to integrating AFA.

“We wanted the amalgamation of the two companies to be something that had as little impact internally as possible on customers, vendors, and our salespeople,” Schneider told Hardlines. “We wanted it to be as seamless as possible and, you know, as ‘boring’ as possible. And I think that’s kind of the phase that we’re in, that ‘soft landing’ or integration phase.”

“We are running the Gillfor system redundantly here in Woodstock [Ontario] to make sure that there is continuity of service. But we’ve migrated over to the legacy AFA system. What happens now is that we will take this year to make a lot of decisions on products—which products will be national, which products will be regional.”

Asked if there would be a rationalization of products—since Gillfor and AFA had a few competing products before the merger—Schneider said he preferred to use the word “evaluation.” AFA brings strength in commodity products, while Gillfor is strong in specialty products, so Schneider says there are good “synergies” between the former competitors.

“We’ve been approached by numerous vendors and numerous buying groups on opportunities. And it’s really a fantastic position where we’re having to evaluate these opportunities.”

Schneider said there are several important considerations in play for Gillfor’s management. “Every product line is going to have its pros and cons both financially in terms of margin and ‘yardability’—how well it is accepted in the yard—and transportation. So, there are lots of different ways to evaluate product lines.”

Peter Ferreira has been appointed to the newly-created position of vice president, distribution at Home Hardware Stores Ltd. Ferreira reports directly to John Dyksterhuis, Home Hardware’s chief supply chain officer. Ferreira will be responsible for all of the company’s distribution operations, facilities, and equipment. He has 22 years of supply chain industry experience at PepsiCo Canada, most recently as that company’s senior supply chain director, overseeing national distribution operations.

DID YOU KNOW…?

… that the latest episode of Hardlines’ podcast series What’s in Store is now online? In this episode, Home Hardware dealer Frances Sologuk shares the story of how her family’s hardware store in Osoyoos, B.C., was “un-renovated” to reveal its historic building materials, reclaimed from a nearby mining camp. It’s a master class in customer service and community relations—with a heritage twist. (Sign up now to get free updates about the latest podcasts in your inbox!)

RETAILER NEWS

RONA inc. has welcomed father and son Blake and Bret Drew, owners of two hardware stores in southwestern Ontario, to its network of affiliated dealers. The stores, in the neighbouring communities of Comber and Tilbury, will be renovated and will expand their offering to LBM products. The RONA Tilbury store will put together a new 45,000-square-foot outdoor lumber yard that will also serve the Comber store. Both businesses were established in 1988

Canadian Tire Corp. reports that Q4 sales at its Canadian Tire banner were flat (down 0.1 percent), while overall comp sales rose by 0.3 percent. For the entire company, quarterly net income of $562.6 million was up from $535.7 million a year earlier. Revenue for the period rose by 3.9 percent to $5.3 billion.

Le Magasin du Fermier, a hardware and ag supply retailer in Luskville, Que., has joined the Home Hardware banner. Dealer-owner Jonathan Crevier’s mother and grandfather founded the business in 2009.

At Ace Hardware Corp., full-year revenues for 2022 reached a record $9.2 billion, up 6.7 percent from 2021. Net income for fiscal 2022 was $340.6 million, an increase of $10.6 million from the year prior. More than 100 Ace-bannered stores in Canada are supplied by Peavey Industries, which holds the license to the brand in this country.

Affiliated Distributors (AD) has announced the launch of the Center for Independent Distributor Leadership (CIDL). The initiative is designed to prepare the current and future leaders of independent distribution with the competencies they need. The CIDL will offer three leadership certification pathways: a four-year leadership experience program, and courses for distributor sales and operations leaders. AD created each program’s curriculum in collaboration with instructors from universities like Texas A&M.

Walmart Inc. saw its Q4 net income rise to $6.28 billion from $3.56 billion a year earlier. Revenues were up 7.3 percent on a year-over-year basis to $164 billion. Same-store sales in the U.S. grew by 8.3 percent, excluding fuel. Canadian comp sales rose by 5.9 percent. For the full fiscal year, revenues rose 6.7 percent to $611.3 billion.

SUPPLIER NEWS

West Fraser Timber Co. posted Q4 earnings of $94 million on sales of $1.62 billion. Earnings for the fiscal year amounted to $1.98 billion, down from $2.95 billion.

ECONOMIC INDICATORS

Retail sales increased 0.5 percent to $62.1 billion in December. Sales increased in seven of 11 subsectors, representing 75.1 percent of retail trade. LBM and garden sales recorded a decline of 3.8 percent, the largest in the core retail categories. (StatCan)

Sales of existing U.S. homes in January hit a 12-year low, with a 12th consecutive monthly drop marking the longest streak of decline since the fall of 2010. The annualized rate of home resales slipped by 0.7 percent to four million units. (National Association of Realtors)

NOTED

DX3 2023, March 1 and 2, bills itself as Canada’s largest conference and trade show dedicated to retail, marketing, and technology. This year’s event at the Toronto Congress Centre will explore what the transformative retail and marketing sectors will look like in a more resilient, innovative, and technologically-driven world. How will retail keep up with changing consumer preferences and expectations? How can marketing professionals overcome industry challenges and changes? How will technology help improve connections while enhancing experiences? Find out the answers to all of these questions and more at DX3 Canada 2023! (Click here for more info!)

OVERHEARD…

“I think there’s a lot of work in the pipeline, but the second half of the year is questionable. I hope it’s a decline, not a cliff.”
—Bernie Owens, president and CEO of TIMBER MART. He spoke with Hardlines at the group’s recent hybrid buying show in Toronto.