RONA continues its Lowe’s banner conversions, this time in western Canada

The rebranding of Lowe’s stores in Canada continues as RONA inc. works to shed the brand after being sold by Lowe’s Cos. near the beginning of this year. Under the ownership of New York-based private equity firm Sycamore Partners, 62 Lowe’s stores in this country were targeted for rebranding, which involved renaming them with the RONA name—but with a twist.

RONA+ is the new banner. It has been applied to the Lowe’s stores in Ontario, and now the company has taken the changeover outside of that province, announcing the renaming and reopening of RONA+ stores in the following locations:

• Winnipeg East
• Winnipeg South
• Saskatoon
• Regina
• Nanaimo (shown here)
• Victoria – Tillicum
• Victoria – Langford

Members of RONA’s leadership team joined the store teams as well as elected officials.

The conversion of the former Lowe’s store to the RONA+ banner is part of a wider plan aimed at redefining how Canadians shop for home improvement and represents a significant local investment. Through this process, the company is looking to build on the strong legacy of the RONA brand and build momentum for the Canadian-operated household name.

The latest banner changes add to the list of some 25 stores, all in Ontario, that have already been converted. In addition, the brand consolidation has resulted in the closing of one Lowe’s store, in Vaughan Ont., as well as two RONA stores: a Home & Garden big box in London, Ont., and another store in Belleville, Ont.

According to Jean-Sébastien Lamoureux, SVP for RONA affiliates, wholesale, and public affairs, the company plans to have more than half of the Lowe’s stores converted to the RONA+ banner by the end of the year.

Canadian Tire Retail faces slightly lower traffic and negative comps in Q3

Canadian Tire Corp. reported a Q3 net loss of $66.4 million, compared with earnings of $184.9 million a year earlier. That loss includes $328 million in costs related to CTC’s buyback from Scotiabank of a minority stake in its Canadian Tire Financial Services business. Revenues for the period rose 0.5 percent to $4.25 billion, while consolidated comparable sales were down 1.6 percent as a result of softening customer demand, especially in Ontario and British Columbia.

Canadian Tire stores saw sales drop by nine percent, while comp sales fell by 0.6 percent. Store traffic was also down, though modestly, from last year’s third quarter. However, post-Covid, the company continues to identify its business according to essential and discretionary categories. Essential categories at CTR were up around 4 percent, led by strength in automotive, while discretionary categories were down by about the same amount.

Softness in home projects drove a decline in CTR’s Fixing category, while higher sales of pet and household cleaning were the drivers behind a modest increase in the Living category.

There were a couple of other bright spots as well. “Comp traffic at CTR was down by only half a percentage point, and basket size remained relatively steady,” said Greg Hicks, president and CEO of Canadian Tire Corp., on a call to analysts. And performance by CTC’s private labels continued to grow as they appeal to budget-conscious shoppers. “From a sales perspective, we had strong performance in two of our most profitable owned brands, Motomaster and Pro Series, with sales up 10 percent and 26 percent respectively in the quarter,” Hicks added.

In announcing the results, the company also said it is eliminating three percent of its work force before year’s end, with some cuts already in place. The redundancies affect the equivalent of 200 full-time corporate positions. It is also cancelling “the majority of current vacancies” in its ranks, which amounts to an additional three percent reduction in its human resources.

AQMAT Gala draws record crowd to honour Quebec industry

AQMAT, the Quebec hardware and building materials association, held its 11th Recognition Gala this month at the Fairmont Queen Elizabeth hotel in Montreal. Awards recognized 54 employees, products, and companies in front of a record audience of 530 guests. AQMAT president Richard Darveau was joined by actor Jeff Boudreault of TV’s District 31 as co-host.

The event is a must-attend for the entire Quebec industry, drawing independent dealers and their staff, plus wholesalers, buying groups, and executive head offices from both the retail and vendor sides.

The gala will take a break next year as AQMAT collaborates with the 28th annual Hardlines Conference to create a pan-Canadian event in La Malbaie, Que. Then, the Recognition Gala will move back to the Fairmont Château Frontenac in Quebec City, where it will be held March 27, 2025.

With seating capacity of only 400, the Quebec City venue will be smaller than this year’s Montreal event, which may compel the association to limit attendance from each company, said AQMAT CEO Crystelle Cormier. “To give more people a chance to participate, we are considering limiting the number of places per company.”

(Click here to see a list of all the winners at the Recognition Gala.)

BMR Group held its 2023 Buying Show this month at Quebec City’s Centre des congrès. A record-setting 1,500 dealers, vendors, and partners converged on the historic city to share hot products and services, as well as to showcase private-label brands. Vendors who spoke to Hardlines expressed positivity and enthusiasm about the pace of sales this year.

The event concluded with a gala evening held right in the Centre des congrès and hosted by strongman and brand ambassador Hugo Girard along with comedian Korine Côté. The duo’s seamlessly bilingual repartee accompanied a five-course gourmet dinner.

Addressing the 1,000-strong audience, CEO Alexandre Lefebvre boasted that “again this year we have not lost a single BMR dealer to our competitors.” He added, “BMR is growing at a faster pace than anyone else in our industry. We have an NHL-level team—and I’m not talking about the Ottawa Senators!”

Vendor awards were presented in the categories of LBM (Duchesne et fils), hardware (Ipex), forest products (Tolko), and agriculture/horticulture (Garant). Among BMR’s member retailers, Marianne and Mathieu Moisan of BMR Paulin Moisan, based in Saint-Raymond, Que., were honoured with the Ambassador Award. It was just the latest recognition for these two cousins, who were already named Young Retailers of the Year at Hardlines’ 2022 Outstanding Retailer Awards.

Finally, new dealers who joined BMR over the past year were inducted with a fun NHL-style “draft” announcement. They are H. Dagenais et fils inc. (Saint-Sauveur, Que.), Centre de rénovation Senneterre (Senneterre, Que.), Group Anctil (Magog and Saint-Denis-de-Brompton, Que.), and Leis Lumber Co. Ltd. (Goderich, Ont.). A professionally produced short film took the gathered company behind the scenes of the newly recruited stores, allowing the dealers to speak directly to the audience.

At Grainger, Cecelia Myers has been named VP, group product manager. Myers was most recently VP, digital, at CDW. Previously, she held a series of positions at Groupon and co-founded CakeStyle, an online women’s styling business.

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RETAILER NEWS

RONA inc. has laid off 25 workers at its Boucherville, Que., warehouse, Le Journal de Montréal reports. A spokesperson for the company cited “a surplus of personnel” in explaining the move. In total, some 1,550 employees work at the Boucherville operations, which include RONA’s head office and the distribution centre.

The Home Depot reported third-quarter sales of $37.7 billion, a decrease of three percent from the third quarter of fiscal 2022. Comparable sales for the third quarter of fiscal 2023 decreased 3.1 percent, and comparable sales in the U.S. decreased 3.5 percent. However, in local currency, Canada posted comps above the company average. Net earnings were $3.8 billion, compared with $4.3 billion in Q3 2022.

Canadian Tire Corp. has unveiled Canada’s Christmas Lists, a new gift registry platform that allows customers to build, share, and shop personalized Christmas lists. Shoppers can add their most-wanted items to their list and share with friends and family using a personalized URL. The digitally secure registry, powered by MyRegistry.com, will remain available beyond Christmas for birthdays, weddings, and other special occasions.

Amazon had remained union-free until 84 Amazon delivery drivers in Palmdale, Calif., formed a union in June. They were employees of a firm called Battle Tested Strategies (BTS), one of 3,000 “delivery service partners” (DSPs) that works with Amazon around the world. Amazon subsequently cancelled their agreement with BTS and the drivers went on strike. The drivers claim they are joint-employees of Amazon. Amazon claims they are not their employees.

Discount retailers TJ Maxx and Marshalls will close additional stores in Illinois, Minnesota, New York, and Pennsylvania by the end of next year. That’s after closures this year in Philadelphia and in Minnesota’s Twin Cities. Parent company TJX said it had been “assessing and reviewing our real estate strategies, and our decision to close this store reflects that thinking.”

Taiga Building Products reported Q3 sales of $456.6 million, down 14 percent or $76.5 million from $533.1 million a year earlier. The decline was attributed largely to lower selling prices for commodity products. Net earnings for the quarter rose to $21.4 million from $18.6 million in the previous Q3, thanks to income tax recoveries from the prior year.

Sales of existing homes declined by 5.6 percent month-over-month in October. The actual (not seasonally adjusted) number of transactions came in 0.9 percent above October 2022. The number of newly listed homes fell 2.3 percent, the first decline since March. (Canadian Real Estate Assoc.)

The latest issue of Hardlines HR Advisor hit inboxes last week. In this edition, we look at IKEA Canada’s affordability strategy, how to check references when hiring, and navigating inter-generational working relationships. If you’re not already receiving HR Advisor, click here to sign up for free!

IKEA Canada president talks affordability, sustainability, and accessibility

IKEA Canada organized an in-person event last week to present its annual IKEA Canada Summary Report 2023. The report highlights the company’s ongoing growth and its commitment to making affordable, quality home furnishings that are accessible to Canadians.

The presentation was led by Selwyn Crittendon, IKEA Canada’s CEO and chief sustainability officer, who offered some highlights from the report that reflect how the company has grown over the past year. Crittendon told the audience in a downtown Toronto event space that IKEA Canada’s sales increased by 10.9 percent to $2.9 billion in the fiscal year ending Aug. 31, while national store visits increased by 6.3 percent to 28.6 million. During the year, 1.6 million deliveries were made to Canadian households.

“We are a purpose-driven, value-driven brand but we always put our heart and soul into the products and services we deliver.”

He went on to note some other achievements, including plans to invest over $400 million to support the company’s fulfilment networks in the Greater Vancouver and Toronto areas. In addition, IKEA opened a new distribution centre last year in Beauharnois, Que. Crittendon said it’s the first such facility in this country in over three decades.

But the core of his message that morning was about affordability. He noted the rising cost of living for Canadians and emphasized IKEA’s commitment to producing affordable—and sustainable—products to counter those rising costs. “These are the foundations of our company: function, form, quality, sustainability, low price. We will never compromise.”

Accessibility is another important aspect of IKEA’s strategy, Crittendon said. That includes physically, as the retailer plans to add to its growing list of small-format showrooms, called “plan-and-order points,” with more locations nationally to come, in addition to the ones most recently announced, in London, Ont., and Lachenaie, Que., which will open next spring.

But there’s another aspect of accessibility that IKEA has addressed as well, and that has to do with affordability. The retailer has partnered with RBC to offer a financing plan that will let customers pay for their purchases over 12 months with no interest.

Recession? Maybe, but it won’t be deep, RBC economist tells CHPTA members

Hardlines reported last week on the latest StatCan numbers indicating they predict flat GDP growth for the third quarter ending on Sept. 30. The second quarter was a contraction. Are we headed into a recession (two quarters with negative growth)? While some economists are being pessimistic, a report by Rishi Sondhi to a group of members of the Canadian Home Products Trade Association offered a more upbeat forecast.

Sondhi is an economist at TD Bank. In offering an outline of economic conditions in Canada, he started with China, the world’s second-largest economy. That country has been experiencing five percent growth. “That’s slower than previous years, but still is better than the world in general. But that growth rate is expected to keep falling.”

Moving closer to home, Sondhi said the U.S. is going through some diversifying, what he called “reshoring,” as manufacturers bring some production back home from Asia. That, he said, could cause higher production costs and add to inflation. He expects the U.S. economy to slow following strong five percent growth there. A drop in consumer spending that will continue into 2024 will contribute to that deceleration, he pointed out.

Sondhi next addressed the big question of which way interest rates will move. He suggested they have peaked. “We think the Bank of Canada is done hiking interest rates.” He forecasts that they’ll begin falling gradually by the middle of 2024 and expects them to reach 4.5 percent by October of next year.

He observed that economic growth here has already flattened. It may technically be a recession, he said, admitting it’s certainly flat. Add to that the reality of high interest rates, which continue to suppress consumer spending.

“We forecast weak, subdued growth for the Canadian economy, but we’re not expecting a deep recession.”

AD reports solid performance for Canadian members year-to-date

AD (Affiliated Distributors) reported owner-member sales of $57.6 billion through nine months of 2023, an increase of three percent and a record for the Wayne, Penn.-based contractor and industrial products wholesale buying group. Its Canadian members fared well also, including those within AD’s Building Supplies – Canada division.

Eighty companies have joined the group so far this year, half of them through acquisitions by existing members. Another 35 of AD’s existing 866 members were sold to outside entities. Owner-member same-store sales grew six percent through the first nine months of 2023.

The home improvement division, AD Building Supplies – Canada, was formed when the TORBSA buying group merged with AD Canada in June 2022. That division consists mainly of about 45 former TORBSA member locations, plus new members that have joined since the division was established. Hardlines did not get updated Canadian numbers as of press time. However, the building supplies business accounted for an estimated $786 million in sales in 2022, an increase of almost 10 percent over the previous year (Source: 2023 Hardlines Retail Report).

By country, same-store sales in the U.S. were up seven percent, while comps for Canada were up six percent. The AD division with the highest growth was Safety at 13 percent. Electrical, Industrial, and Bearings/Power Transmission all enjoyed growth of nine percent.

A recent webinar hosted by the Retail Council of Canada offered some important insights into the profiles of various consumer groups in Canada and how they spend on home improvement products.

The presentation was given by two individuals from Environics Canada. David Spira is the director of account management and Michael Scida is director of business development at Environics—in addition to being an alumnus of this industry, having served for almost seven years at Lowe’s Canada.

Scida identified roughly 19,000 retailers that cover the space, not including Walmart or Canadian Tire. About 57 percent of those stores are in Quebec and Ontario. The total aggregate spend, says Scida, is $118 billion.

Environics’ data broke the sales down, with furniture accounting for $33 billion, large appliances for $8 billion, and small appliances and home décor equalling $19 billion in sales. Environics estimates the home improvement category, which includes tools, lawn and garden, building materials, and labour, at $69 billion.

(Note: these numbers differ from Hardlines’ own estimate of the size of the industry as defined in our annual Hardlines Retail Report, as we don’t include the specialty stores or labour, but only sales through traditional hardware and building materials channels, including Canadian Tire.)

“The average Canadian household spend is $7,827 per year on all household refresh categories,” said Scida. But that spend is not consistent across the board.

So, which groups are the biggest spenders? Scida explained that his company created a series of profiles for different demographics among Canadian consumers, based on store traffic. The group profiled various consumer groups and put them into four targeted consumer groups. Older families and empty nesters represent 1.1 million households and an average household spend of $13,188. Middle-aged families, representing 2.6 million households, spend $120,183. Large, diverse families represent $746,000 and spend an average of $12,000 per household. The younger mix is the fourth profile, which spends  an average of $9,247 per year on home improvement.

These target groups represent 29 percent of the population, said Scida, but account for fully 41 percent of the spend in the home improvement and home décor categories. For example, the older families and empty nesters, aged 65 and up, account for eight percent of the population but represent 13 percent of the spend.

But without a doubt, one group stood out. Environics has determined that the highest-spending group, and therefore the one making the biggest impact on spending in the home improvement and home décor categories, is the aging baby boomer demographic.
“The older families and empty nesters are really the key target group for household spending on home improvement.”

How do the different groups gather their information about which products to buy? Not surprisingly, the older demographic prefers to do it in person or on their computers. And they overwhelmingly prefer to complete the sale in person. The younger groups don’t see the need to conduct the transaction in person and are much more comfortable doing the deal completely online.

An executive at Home Hardware Stores Ltd. has been recognized as one of Canada’s Top 100 Most Powerful Women by the Women’s Executive Network (WNX). Vanda Boyd is senior director, in-store systems solutions for the St. Jacobs, Ont.-based retailer. Since 2003, the WNX has celebrated Canada’s Top 100 Most Powerful Women by recognizing community advocates, trailblazers, and thought leaders.

At Derby Building Products, Patrick McKernan has been named territory sales manager, home improvement retail, for the mid-Atlantic region. Based in Lafayette Hill, Penn., McKernan will work to expand Derby’s penetration into Home Depot’s U.S. stores with Novik Stone, Derby’s line of stone siding. His previous roles include working at East Coast Roofing Systems, an exterior residential remodeling company. Most recently, McKernan was at Colonial Electric Supply, a family-owned electrical distributor in the U.S.

DID YOU KNOW…?

… that the 2023 Hardlines Retail Report is your best tool for planning your marketing strategy for 2024? This incredible study examines the sales, market shares, and strategies of the country’s top retail banners. It also identifies the key trends these retailers are facing and looks at how all these trends have translated into sales numbers, with breakdowns by banner, province, and store type. As a Premium Member-Subscriber, you save more than 20 percent on your order, and more than 30 percent when you buy the Retail Report bundled with its companion research, our annual Hardlines Market Share Report. You can click here now to order!

RETAILER NEWS

Federated Co-operatives Ltd. has announced that Swan Valley Co-op will purchase two home and building retail sites, in the Manitoba communities of Swan River and The Pas, from the Minsh Group of Companies. Each property includes over 9,000 square feet of retail space, a lumber yard, and storage facilities. The acquisition is expected to close in late November, with Co-op operations beginning on Dec. 1.

RONA inc. is holding the third edition of its PROvember event in most of its Lowe’s, RONA+, RONA, and Réno-Dépôt stores from Nov. 2 to 29. The event, linked to the VIPpro program, will feature in-store “lunch and learns,” special offers, surprises with purchase, and contests for building and home improvement professionals. In addition, participants can choose at checkout to support the RONA Foundation’s Building from the Heart campaign, which aims to renew living environments and make housing accessible for those who need it.

Castle growth continues in Ontario with its newest member location, Windeco Building Supply in London, Ont. The full-service lumber, building materials, and hardware retailer is getting set to open its doors with a full-service retail storefront in addition to its lumberyard. Owners Peng Yi Chen,Ri Kai He, Tong He, and Xian Yi Jiang will target home renovation contractors and DIYers in London and the surrounding area with their new store.

Wolseley Canada has launched its newest store in the Yorkdale area of Toronto. The 16,000-square-foot facility held a grand opening on Nov. 9.

IKEA Canada is expanding its network of plan-and-order points with additions in Ontario and Quebec. They will be located in London, Ont., and Lachenaie, Que., and are slated to open next spring. The spaces allow customers to consult with specialists to plan purchases for complex projects. The retailer has also opened a pick-up location in Thunder Bay, Ont.

Franchise Times has released its annual Top 400 list, which measures the largest franchise systems in the U.S. by global sales. Ace Hardware placed at number five, the same ranking it held in 2022, behind Burger King, KFC, McDonald’s, and 7-Eleven. Ace posted $23.1 billion in annual retail sales last year, a 3.4 percent increase from the prior year. It opened 168 new locations in the U.S. and 232 total new locations worldwide in 2022.

Canfor Corp. reported a third-quarter operating loss of $65 million, including a $49 million loss from its pulp business. The results include a net $20.8 million reversal of a previously recognized inventory write-down. In western Canada, earnings were squeezed by higher spruce-pine-fir prices.

The value of building permits issued decreased 6.5 percent in September to $11.2 billion. Most of the drop was attributed to a monthly decline in the institutional sector. The value of residential permits increased 4.3 percent to $7.2 billion, led by a 37.2 percent increase in construction intentions in British Columbia. Gains in the value of residential permits in Quebec, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador offset declines in the remaining five provinces. (StatCan)

For its fiscal year ended Aug. 31, IKEA Canada enjoyed a healthy increase in sales of almost 11 percent. But food sales increased 27 percent as Canadian shoppers enjoying more than 15.6 million meatballs and three million hot dogs during the year.

RONA returns to the airwaves with new reality TV show in Quebec

RONA inc. has developed a new reality show for Quebec television called Le grand chantier RONA. The retailer’s first TV effort in 14 years, it will begin airing sometime in 2024, and line up with RONA’s 85th anniversary next year.

The show will be hosted by the popular actor and comedian Marie-Lyne Joncas, and RONA claims it will be Quebec’s biggest home improvement competition, with 12 couples competing over 10 weeks to win a brand-new, fully furnished home worth $700,000.

The new program marks a return to French-language television for the Quebec-based retailer. It was created in partnership with French-language TV network Noovo and the production house Zone3. A show called Ma maison RONA ran from 2003 to 2009 and was a hit across the province. The new program is part of a concerted strategy to focus on the RONA brand now that the company is free of its ownership under Lowe’s Cos. (The Lowe’s Canada business was sold off at the beginning of the year to Sycamore Partners, a New York-based private equity firm.) The Lowe’s-bannered stores in the retailer’s network are currently being converted to a new banner called RONA+.

“We’ve been dreaming of this show for three years,” says Catherine Laporte, VP of marketing for RONA inc. “We wanted to regain the brand leadership across Canada and the place to start was in Quebec, in our home province.”

The show will give an important lift to the RONA brand at home, says Laporte, as the company reinforces its brand post-Lowe’s—and prepares to promote its anniversary, which will land in September 2024. “There are some strong players in Quebec, but we have the leadership with 85 years in the province.”

While English-language TV must deal with spillover from U.S. content, which can dominate the airwaves, Quebec enjoys a strong home-grown entertainment industry. Laporte would love to see the show’s concept rolled out eventually to an English-speaking audience, as My RONA Home was in 2009.  “There’s no reason why RONA couldn’t come out with a home improvement reality show for all of Canada,” she says. “It just makes sense, but first we’ll see how it goes in Quebec.”

Veteran of Home Depot’s early days shares stories of the retailer’s growth and vision

The stories around the start of what is today’s the world’s largest home improvement retailer are filled with colourful characters, determination, and breaks—good and bad. Jim Inglis was there for much of it. He joined The Home Depot early in its growth, in 1983, at a time when the big box model was new, unproven, and widely ridiculed by competitors. He ended up becoming EVP of merchandising and EVP of strategic development before leaving the company 13 years later.

Inglis shared some memories of how Home Depot grew with delegates at the 27th Hardlines Conference, held last month in Whistler, B.C.

Home Depot got its start in 1980 and went public in 1983. Amidst the struggles and the victories that underscored the retailer’s growth, one factor was crucial to holding the company together, and that was its clearly defined culture—what he refers to as “bleeding orange.”

According to Inglis, co-founder Arthur Blank was the numbers guy. His partner Bernie Marcus was the culture and people person. And Pat Farrah, who had first initiated the concept in a store in California before Blank and Marcus joined, was the merchandising visionary. These three individuals formed the basis upon which that orange culture was established.

Inglis noted that by 1988 Home Depot had surpassed Lowe’s in sales. Another big competitor at the time was a chain called Scotty’s in Florida. Scotty’s issued its latest catalogue, proudly displaying its competitive pricing on a range of products. Home Depot staff rounded up the catalogues and put them on the end aisles of its stores, then wrote on them with magic markers that Home Depot would sell anything at 20 percent less than the Scotty’s prices. That take-no-prisoners approach was a cornerstone of the Home Depot philosophy. And that was the last time Scotty’s published a catalogue.

Inglis also talked about Home Depot’s entry into Canada. He admitted that the executives in the U.S. figured Canada to be something of a 51st state, similar to California in market size. But initial forays, with stores in British Columbia, did not go smoothly. That all changed when the company hired a Canadian, Annette Verschuren, to head the company. Within a few years, Canada was Home Depot’s fastest growing division. (PHOTO: Josef Povazan)

Is Canada on the brink of a recession? StatCan says ‘yes’

Amid high interest rates and higher costs, Canadians are wondering whether a recession is in fact in the making. Now some hard statistics give weight to a bad-news scenario.

Statistics Canada released its numbers last week for the country’s August gross domestic product levels, which showed a flat economy with no growth, missing analyst estimates for a tiny increase of 0.1 percent. The agency also released its preliminary forecast for September and the third quarter, which points to continued flat growth.

That, technically, would put Canada’s economy into a recession, defined as two quarters of economic contraction. The GDP in the second quarter contracted 0.2 percent. Some economists says that the latest GDP numbers should put an end to interest rate hikes from the Bank of Canada.

Meanwhile, a new study from TD Bank, “Canadian Housing: Navigating Challenges,” offers TD’s analysis of the Canadian housing market. Unsurprisingly, it says that multiple interest rate increases from the Bank of Canada have depressed housing prices and, consequently, listings. However, there was good news in terms of the degree of housing starts currently occurring.

“Even with multi-year highs in borrowing costs and persistent labour shortages, builders have been able to sustain a pace of housing starts that is roughly 20 percent above pre-pandemic levels and near multi-decade highs,” the report says. However, the report gives national numbers, while observing that Quebec housing starts, in particular, are “retrenching.”

Attacks on retailers are getting increasingly more aggressive, and in one case, more outrageous.

Grand Valley Home Hardware, in the township of East Garafaxa, 100 kilometres northwest of Toronto, was broken into twice in the early morning hours of Oct. 22. Security footage from the second break-and-enter incident shows the perpetrators stealing the store’s safe which was on the second floor (see photo, courtesy of Ontario Provincial Police).

The two suspects first arrived at 2:10 a.m. in a dark-coloured SUV and one of the suspects gained access to the building by removing a window in the side door. The suspect who removed the window was captured on a security camera wearing a dark-coloured pullover with hood, a facial covering, and gloves (see above photo at right). Both individuals spent 35 minutes at the store, but it is unknown whether they stole anything on that first visit.

At about 4:10 a.m., the suspects returned to the store in the same vehicle. This time, the second suspect was captured on video. He was wearing a dark jacket with a hood, a surgical mask, orange gloves, blue jeans, and blue running shoes. His partner in crime re-entered the building and dropped the safe from a second-storey window, where the second suspect placed it on a dolly.

Both suspects moved the safe to the vehicle, placed it inside, and then drove off. They had spent a total of just 20 minutes at the store stealing the safe, security videos indicate. Ontario Provincial Police are investigating but had made no arrests by the time of publication.

The Arthurs family has owned Grand Valley Home Hardware since 2016.

The Home Depot has named Ann-Marie Campbell as senior EVP. She will assume responsibility for outside pro sales efforts and installation services, while continuing to oversee U.S. stores and operations—and the Canadian and Mexican business units. A 38-year veteran of the company, Campbell has served as EVP of U.S. stores and international operations since 2020. Hector Padilla has been named EVP of U.S. stores and operations, where he will lead the company’s three U.S. operating divisions, reporting to Campbell. He has been with The Home Depot for some 30 years, most recently as EVP, outside sales and service.

DID YOU KNOW…?

… that the 2023 Hardlines Retail Report is your best tool for planning your marketing strategy for 2024? This incredible study examines the sales, market shares, and strategies of the country’s top retail banners. It also identifies key trends and forecasts sales for these retailers, with breakdowns by banner, province, and store type. As a Premium Member-Subscriber, you save more than 20 percent on your order, and more than 30 percent when you buy the Retail Report bundled with its companion research, our annual Hardlines Market Share Report. You can click here now to order!

RETAILER NEWS

Carleton Co-operative in Florenceville-Bristol, N.B, will convert its country store to the Ace Country & Garden banner. Founded in 1946, Carleton Co-op consists of some 3,000 square feet and is served by a staff of about 10. Jim Kennedy is general manager and John Nigro is retail manager. In addition to the country store, the site includes a Foodland grocery store, gas bar, NB Liquor agency, and propane fill station.

Canadian Tire Corp. has repurchased Scotiabank’s 20 percent stake in Canadian Tire Financial Services (CTFS). With the $895 million all-cash transaction, CTC is once again full owner of its financial services arm. CTFS is key to the company’s Triangle Rewards program, accounting for some 75 percent of all Canadian Tire money issued each year.

Amazon, the world’s largest e-retailer, enjoyed profits that more than tripled in the third quarter ending Sept. 30. In spite of rising interest rates, and falling disposable income, consumers continued to spend heavily on online purchases. Revenue in the third quarter was $143.1 billion. Profit in the quarter was $9.9 billion compared to $2.9 billion in the same quarter of 2022. Amazon’s workforce, which reached a record 1.62 million workers worldwide at the beginning of 2022 during the Covid boom, has since been cut significantly and now stands at 1.5 million workers.

W.W. Grainger has reported Q3 earnings of $476 million, with profits reaching $9.43 on a per-share basis. Revenues for the quarter came to $4.21 billion.

U.S. farm and ranch retailer Tractor Supply Co. released its third-quarter results that included a 4.3 percent year-over-year increase in sales to $3.41 billion. It also experienced a 0.4 percent dip in comparable store sales. Core year-round merchandise, including consumable, usable, and edible products “significantly outpaced the chain average.” The company noted lesser demand for seasonal goods and big-ticket items.

Ace Hardware has relocated its corporate headquarters to the former McDonald’s corporate campus in Oak Brook, Ill. The new location houses over 1,100 staff and features open workstations, 150 conference rooms, 12 cafes and pantries, a fitness centre, conference centre, multipurpose room, large cafeteria, dining centre, and a variety of collaboration spaces.

PPG posted record third-quarter net sales of $4.6 billion, up four percent over the same period a year earlier. Net income in the quarter reached $426 million, up 29 percent from Q3 2022, when net income was $329 million.

Investment in U.S. construction was up 0.4 percent in December. Investment in residential construction rose by 0.6 percent, with spending on single-family projects up 1.3 percent. (U.S. Commerce Dept.)

The latest instalment of Hardlines’ podcast series, What’s In Store, is now live. In this episode, Richard Darveau, president of the Quebec industry association AQMAT, discusses the work of his organization, including the story of the Well Made Here program, which identifies and promotes Canadian-made products. (Sign up now to get updates about the latest podcasts in your inbox!)

RONA SVP talks about the power of the independent at Hardlines Conference

RONA inc. remains committed to its affiliate dealers under its new ownership, Jean-Sébastien Lamoureux told delegates at the 27th Hardlines Conference. The event was held earlier this month in Whistler, B.C.

The company’s senior vice-president for affiliate dealers, wholesale, and public affairs combined updates from RONA with advice for the industry at large in his address.

“Following the acquisition by Sycamore Partners, we brought the RONA brand back front and centre,” Lamoureux said of the ongoing conversions of Lowe’s-branded stores to the new RONA+ banner.

During his presentation, Lamoureux noted that only hours before, RONA had announced to its dealer network the locations of the next nine conversions. “By year’s end, more than half Lowe’s stores will have been converted,” he said. “Our new ownership understands the value and potential of our RONA affiliated dealer network.”

Regarding RONA’s commitment to independent dealers, Lamoureux admitted that the model has advantages of its own, which fit into RONA’s overall strategy. Independent dealers are “often in more remote areas where big corporate players don’t set up shop,” he said, adding they also have the personal knowledge of their local markets to customize their mix.

That can give independents an advantage in an environment where consumers are increasingly favouring proximity. “People don’t necessarily want to drive 20 or 30 minutes to get supplies for a project, especially when they realize they need more of a product or are missing something.

“The pandemic encouraged Canadians everywhere to prioritize buying local. I encourage you to capitalize on that.”

It’s not only in rural areas that small independents can thrive, either. “We see a clear need for more urban stores that carry the essentials that homeowners need,” Lamoureux observed. Moreover, e-commerce can enable even the smallest stores to offer a wider variety of products than they could accommodate on-site.

“No matter how you choose to do it, if you’re not online yet, you need to work on getting there as soon as possible,” he underscored. “Dealers who have a good online offering and offer buy-online, pick-up in-store can turn their customers from competitors who either don’t offer online shopping or don’t have a bricks-and-mortar store.”

Ultimately, the strength of the local independent lies in service. “I can’t emphasize enough the importance of training your staff to support the top-notch experience you need to deliver to your customers.” (PHOTO: Josef Povazan)

Kent gets uncharacteristically scary—and funny—for Hallowe’en

While it’s well known as a worthy competitor in Atlantic Canada and well regarded as a reliable retail customer, Kent Building Supplies is not known for its sense of humour. With the exception of some very funny ads that come out of Quebec (that’s another story for another day!—Editor), home improvement retailers in Canada have typically provided a very straightforward and upright promotional face to customers.

But a new ad for the Saint John-based retailer, a division of J.D. Irving Ltd., breaks the mould. The bit ties in with the Hallowe’en season with a fictional depiction of a pair of vampires that are regular customers at Kent.

According to online advertising trade publication The Message, the concept was originally pitched to Kent by Accomplice Content Supply Co., a production and animation agency in Halifax.

The video, which runs for almost three and a half minutes, also has a few 30-second variations. It focuses on various advantages to shopping at Kent, including the hospitality of its employees. Since vampires can’t enter a home without being invited, they wait until a Kent greeter cheerfully waves them inside. While the rest of the staff cautiously admit they welcome the business from these long-time customers, they are admittedly wary. “We just keep distance from them when, um … they haven’t eaten.”

The bit leads to the vampire customers buying some Minwax stain, which they take back to their home and use to coat a coffin.

The vampires, a 300-year-old couple named Zaros and Lenora, are played by Logan Robbins and Aryelle Morrison, two actors based in Atlantic Canada. They likewise share the joy they get in shopping at the store, which sells “high-quality products that will last as long as we do,” says the Zaros character. “Ever since Kent opened 40 years ago, it’s been an after-life changer.”

(Watch the ad in its entirety here. It’s great fun!—Editor)

BMR adds to its dealer development team in response to membership growth

BMR Group has been adding to its business development team over the recent months. The group has brought new staff on board to support the growth it says it has seen from stores joining BMR from competing banners.

Based in Boucherville, Que., on Montreal’s south shore, BMR has about 275 members (source: 2023 Hardlines Market Share Report). While the majority of these stores are in Quebec, the group is committed to growth across the country, focusing in the near term on the Ontario market and parts of the Maritimes.

However, efforts continue in the group’s home province as well. The most recent new member-dealer is Groupe Anctil, which has operated in Quebec’s Eastern Townships for five generations. Today, it operates two renovation centres, in St-Denis-de-Brompton and Magog, and has co-ownership of a prefabricated wood structures plant, also located in Magog. In addition, Groupe Anctil operates a Granby-based company specializing in wastewater, sewage, and water treatment.

A grand reopening, hosted by Quebec strongman and BMR ambassador Hugo Girard, was held earlier this month.

To support this ongoing growth both inside Quebec and beyond, BMR has added some new faces to its dealer development team. Fady Faddoul joined BMR in July as business development advisor. He was previously at Ford Motor Co. Cris Morton has been in a similar role since May. His experience includes 12 years with Unilever and seven years with Church and Dwight Co. Melanie Johnson recently joined BMR as business development advisor for Atlantic Canada.

These individuals join fellow business development advisors Gilles Parenteau, who has been with BMR since 2017, and Patrick Cadieux, who came on board in 2015 after 13 years as a hardware store owner himself. The team is overseen by Simon Gouin, BMR’s senior director of business development for eastern Canada since 2021.

More than any other speaker, Romain Mercier brought the e-commerce angle to the 27th annual Hardlines Conference held two weeks ago in Whistler, B.C.

But for all the digital technology referenced in his talk, Mercier, a founding partner of the PS&Co Data Lab in Vancouver, had a fundamentally human message: “Over the decades, nothing much has changed. Most purchases are emotionally driven. E-commerce is still commerce between people. And people do business with people they trust, with whom they share mutual values. This is not rocket science.”

Mercier led off his presentation with a carrot and a stick. The carrot was that there is going to be—if Ottawa has its way—a home-building boom between now and 2030 like Canada has not seen before. “The federal government has finally realized that to get affordable housing we need to double the amount of housing being constructed in the next seven years,” Mercier said. This obviously provides unparalleled opportunities for our industry.

The stick was that retailers are generally in the stone age when it comes to reaching out to customers, digitally, Mercier suggested. “Retailers don’t know very much about their customers,” he said. “Each customer is a persona, is part of a segment. There’s a tendency for retailers to do one-size-fits-all marketing. When, if you knew more about your customer, you could send something personalized.”

But the big question is, how do we do that?

Mercier is a big believer in collecting data, online, about customers. It’s what he does at PS&Co and what he has done over more than 15 years working for some of the biggest names in online tech. “Most businesses have five or fewer attributes [discrete pieces of information] for each customer. What can you say to your customer with that information? Nothing!”

Mercier closed his presentation with a summary of the funding available from the Canada Digital Adoption Program (CDAP). Ottawa has backed this program, first announced in April 2021, with $1.4 billion in grants to small and medium-sized enterprises, plus up to $2.6 billion in interest-free loans from the Business Development Bank of Canada. (PHOTO: Josef Povazan)

DID YOU KNOW…?

… that you can update your subscriptions, place orders, and book your Classified Ads by contacting the newest addition to our Hardlines Team, Jillian MacLeod. She is the person to get in touch with if you want to update your subscription to Hardlines Weekly Report, or to book a Classified Ad. So reach out to Jillian if you need help!

RETAILER NEWS

IKEA Canada CEO Selwyn Crittendon says the company will dramatically overhaul its omnichannel and fulfilment processes in the coming years. Speaking to Retail Insider about two months into his role, Crittendon said that as stores get turned into fulfilment units, some of them are doing their omnichannel processes entirely on their own, without being connected to a central hub or DC.

Giant Tiger Stores will open its second location in Saint John, N.B., on Nov. 4. The 16,675-square-foot store is located at 88 Consumers Dr. The grand opening will include the usual Giant Tiger private-label Marché giveaways, a gift card to the first 100 customers, and an appearance by the chain’s mascot, Friendly, the Giant Tiger. The company now has over 260 locations across Canada.

The RONA Foundation, which oversees the philanthropic activities of RONA inc., completed a new campaign, Home Sweet Home, which ran from September 1 to October 9. Thanks to the involvement of employees and the generosity of customers, more than $730,000 was raised for revitalizing living environments or easing access to housing for survivors of domestic violence and their children, low-income families, and people with special needs or mental health issues. The 175 organizations were selected separately by each local RONA team.

Discount department store banner Zellers has brought back its mascot, a stuffed teddy bear named Zeddy. The plush toy, which stands about 15 inches tall, is available for purchase in-store since Oct. 27 and online beginning today. The retailer has committed to donate $5 out of every $15 sale to support Campfire Circle, a charitable organization that supports children with cancer or serious illness and their families.

Kent Building Supplies in Antigonish, N.S., is taking an additional order on deck chairs that support adults with intellectual disabilities. Kent partners with CACL Antigonish to the sell the chairs, which are made by staff and clients of the non-profit. The Antigonish store had excess inventory this year. Jeff Teasdale, executive director of CACL, told local radio station CJFX-FM that Kent has been supportive in marketing the product and in employing its clients.

York Supplies, a 75-year-old hardware store in Birmingham, England, fell on hard times post-Brexit and post-Covid. Local residents were invited to invest in the business and form a single-store co-operative, in what the BBC called the “first time in England a hardware shop had been saved in this way.” The equivalent of $588,000 in funding was raised in just six weeks.

An employee at a San Rafael, Calif., Home Depot store was arrested last week after an internal investigation pointed to her as a suspect in the embezzlement of $1.2 million over the past year. The employee is accused of taking various amounts out of the store’s cash registers, ranging from $25,000 in a month up to almost $174,000 in August of this year. The woman worked in finance at the store. Police said that her house contained “an exorbitant amount of luxury clothing and handbags.”

Third-quarter sales for West Fraser Timber Co. reached $1.71 billion, up six percent from $1.61 billion in the second quarter of 2023. Earnings for the quarter were $159 million, compared with a loss of $131 million in the second quarter. The company expects total lumber shipments for the year to be similar to 2022, as it has not experienced the severe transportation challenges faced last year. For its North American engineered wood products segment, demand has remained relatively robust, leading West Fraser to forecast that its 2023 OSB shipments will reach levels as high as 6.4 billion square feet.

Toolquip’s Agency’s John Ross, age 67, died of cancer on Oct. 4. Ross was the owner of Toolquip Agency Ltd., a Toronto-based sales and marketing company. After retiring in 2016, he continued his activities as a volunteer with Canada Dog Guides, Canadian Adaptive Snow Sports, and Para Alpine Ski Racing. Ross is survived by his wife, Brenda Ross, his daughters Lindsay, Lauren, and Meg, sons-in-law Eli Winterfeld and Scott Grundy, and granddaughter Abigail.

Investment in building construction rose by 1.1 percent to $17.9 billion in August. The residential sector was up 1.6 percent to $11.9 billion, while the non-residential sector edged up 0.1 percent to $5.9 billion. Following five months of consecutive declines, investment in residential building construction rose 1.6 percent to $11.9 billion. Single-family home investment rose 2.4 percent to $5.9 billion, with six provinces posting gains. (StatCan)

Outstanding retailers from across Canada honoured at Hardlines Gala

Suppliers and retailers from across Canada gathered last week to honour the retail home improvement industry’s best hardware and building supply retailers. The occasion was the 31st Annual Outstanding Retailer Awards, presented during a Gala Dinner during the annual Hardlines Conference. The event was held at the Fairmont Chateau Whistler resort in Whistler, B.C.

Retailers were honoured in eight categories covering the range of retail hardware and home improvement formats.

“While much of the chaos that marked the worst years of the pandemic is behind us, retailers face new and bigger challenges than ever before,” said David Chestnut, vice-president and publisher of Hardlines Inc. “These winning dealers represent the innovation and passion for their businesses, and commitment to customers, that makes them truly outstanding.”

This year’s winners were:

• Best Hardware Store – Hydway Hardware, Fort Vermilion, Alta. Ray Toews and Robyn Currie, Owners. Award sponsored by the National Hardware Show.
• Best Building Supply or Home Centre under 15,000 square feet – Nova Scotia Building Supplies (Castle), Blockhouse, N.S. Andrew Mills, Owner; Curtis Saulnier, General Manager. Award sponsored by Jeld-Wen.
• Best Building Supply or Home Centre over 15,000 square feet – Centre de rénovation Marieville (Home Hardware), Marieville, Que. Louis Turcotte, Eric Berthiaume, Simon Louvet, and Daniel Gervais, Owners. Eric Berthiaume, Store Manager. Award sponsored by BP.
• Best Contractor Specialist – The Cedar Shop (Sexton Group), Calgary, Alta. Tyler Palko and Brad Palko, Owners; Mitch Wile, President. Award sponsored by Trex.
• Best Large Surface Retailer – RONA+ Whitby, Whitby, Ont. Paul Santos, Store Manager. Award sponsored by JRTech Solutions.
• Retail Spirit Award – Hodgins Building Centre (Castle), Wingham, Ont. Brock Hodgins and Jordan Hodgins, Owners; Nik Glazounov, Manager. Award sponsored by Johns Manville.
• Young Retailer of the Year – Barry Eidt, Co-owner of Arthur Ace Hardware, Arthur, Ont. Award sponsored by Acceo Solutions.
• Marc Robichaud Community Leader – Nowco Home Hardware, Lacombe, Alta. Tyler and Deanna Nowochin, Owners; Tami Schneider, Manager. Award sponsored by BMF.

The winners were carefully chosen from a field of high-quality nominees submitted from every part of Canada. They stood out within this elite group thanks to their success in the areas of good business practices, customer relations, innovation, and niche marketing.

Launched in 1992, the Hardlines Outstanding Retailer Awards are the retail home improvement industry’s only national awards program dedicated to celebrating the achievements of hardware and building supply dealers across all banners in Canada. In its 31-year history, the program has honoured more than 170 retailers.

Hardlines Conference brings hot ideas, insights to industry’s decision makers

The 27th Hardlines Conference was held last week, with record attendance, at the Fairmont Chateau Whistler in Whistler, B.C. It was the first Hardlines Conference to be held in Western Canada.

And before delegates sat down to two days of top-flight retail speakers from across North America, they got the opportunity to network and relax at the RONA Pub Night. Retailers, retail group executives, and vendors gathered at Merlin’s Bar and Grill in Whistler for the traditional kick-off opening event at the conference.

The next morning, the event began in earnest as Jim Inglis, consultant and former Home Depot executive, got the ball rolling with his insights and experience, including wisdom drawn from the banner’s Canadian launch. He was followed by Geneviève Gagnon, who runs three companies and five building centres in Quebec. She spoke of her experience growing up in her family store and how she brings an unabashedly feminine touch to the customer experience.

In the afternoon, Hardlines president Michael McLarney gave a state-of-the-industry update that included a discussion of how climate change is impacting home improvement and the challenges of making bricks and mortar a compelling experience to compete against online sales.

Dan Tratensek provided a perspective from the North American Hardware and Paint Association. Cody Smith capped off the afternoon with an update on exciting new developments at Federated Co-op, including the expansion of the co-op’s LBM distribution network in Alberta.

The afternoon closed with a reception hosted by Home Hardware Stores Ltd., leading into the 31st Outstanding Retailer Awards gala dinner (see previous story).

Day two of the conference got started with a heartfelt story from the front lines of hardware retailing. Sylvain and Marilyne Laferriere shared their experience as owners of the Victory Ace store in Mackenzie, B.C. Their challenges running a business in a small community that sees its population dwindle and customers head to the big city to shop, while the town itself fails to provide adequate support for local businesses like theirs.

Zaida Fazlic is the VP of people and culture at Taiga Building Products. Back by popular demand after a heartfelt and informative presentation at last year’s conference, Fazlic again shared her insights into the HR world, outlining the differences and commonalities among the different generations of workers, and how best to manage and integrate those workers.

The day, and the conference, was capped by a presentation from Jean-Sébastien Lamoureux, SVP for RONA affiliates, wholesale, and public affairs at RONA inc. He talked about RONA’s ongoing commitment to its independent, or affiliate, dealers. He also took the time to share some best practices that any independent should follow to ensure success in a changing post-Covid marketplace.

The information shared by the speakers, along with the ability of delegates to network and meet dealers from every part of Canada, made the Hardlines Conference once again a great platform for industry individuals to share and learn from senior thought leaders—and from each other. The Hardlines Conference moves to the province of Quebec in 2024, from Oct. 21 to 23.

TIMBER MART adds Winnipeg distribution centre to serve Prairie members

TIMBER MART has launched a new LBM distribution facility on a three-acre property in Winnipeg. Located within a six-hour radius of buying group members in Manitoba, Saskatchewan, and northwestern Ontario, it will offer weekly deliveries, cross-docking and furtherance service, and easy access for dealers looking to pick up their orders.

With an estimated 600 dealers nationwide, TIMBER MART has almost 120 in the Prairies, including about 35 dealers in Manitoba (source: 2023 Hardlines Market Share Report).

“Our new distribution centre in Winnipeg will offer many of our members in the Prairies all of the conveniences that our existing facilities provide for our members in B.C., Ontario, Quebec, and New Brunswick,” says Bernie Owens, president and CEO of TIMBER MART. “We look forward to providing our dealers with a great source of LBM products and competitive advantage in their local markets.”

TIMBER MART’s new distribution centre is located at 95 Paquin Rd. in Winnipeg. It will be the fourth facility the buying group operates and will represent a significant expansion of their current distribution network. It joins existing facilities in Langley, B.C.; Mount Forest, Ont.; and St-Nicolas, Que.

Geneviève Gagnon isn’t exaggerating when she says was born into the industry. “The home I was born in was literally in the lumber yard” of her family’s store, she recalled in an address to this year’s Hardlines Conference.

As a “pretty turbulent kid,” she was constantly trying to get into the yard, prompting her parents to erect a fence around the house. Even that wasn’t enough to keep her out, so the family moved to a farm they still own today.

Growing up “between the farm and the yard,” as she puts it, Gagnon’s childish persistence wore her parents down until they could no longer refuse to let her to work in the store. She was so young, she says, that isn’t even sure exactly how old she was at the time.

As an adult, she completed an education in finance and tax law. She also broadened her horizons in South Africa, and working on an international project in Tunisia—one that she found personally challenging.

Gagnon’s grandfather founded his general store in the 1940s in Chénéville, Que. In 1973, her father Yves converted it into a hardware store and lumberyard. That outfit was the kernel which grew into Gagnon, La Grande Quincaillerie. Today, with five locations, the banner is one of three businesses Gagnon helms.

The family business spent 35 years under the BMR banner, where Yves served as CEO and Geneviève was named financial director at 26, before going independent in 2020.
Shortly after, Geneviève took the reins from her father, giving Yves “a much-deserved retirement,” and presiding over a period of growth and innovation. “Our two most recent stores are eco-friendly,” she notes.

It also benefits from distinctive marketing. The company’s logo uses a font that was developed in Quebec, and the store’s signature colour is a shade of purple. But it’s not a random choice for the stores’ visual identity. Says Gagnon: “You may think it’s because purple was the only colour not used in the industry. Well, that helped but it wasn’t the decision-maker.”

Rather, she said, “purple represents peace—and it’s a feminine colour and we stand by that.” The banner even has a signature fragrance to welcome customers into the store. Gagnon handed out samples of the scent to each of the conference tables.

“Hardware is soothing. It’s the family feel that we want people to have.”

(PHOTO: Annemarie Grudën)

The BSIA of B.C. handed out its 2023 Industry Merit Awards last week to three individuals who have made significant contributions over decades to building up the province’s retail home improvement industry. The honourees were: Bruce Allen, a RONA dealer-owner who is president of three RONA-bannered stores in North Vancouver, Powell River, and Salmon Arm; Brad McCluskie, business development manager of Coast Distributors, a prominent west coast hardlines distributor; and Ray Cyr, president of Fraser Valley Building Supplies, with six RONA stores in the province.

DID YOU KNOW…?

… that we had record attendance at our Hardlines Conference last week? We had more than 200 people join us in Whistler, B.C., including 85 delegates from the West Coast who were there for the very first time! It was great to meet so many wonderful dealers and suppliers from the British Columbia marketplace! Our thanks again to the BSIA of B.C. for partnering with us to make such a successful event!

RETAILER NEWS

RONA inc. has announced the conversion of nine more Lowe’s stores to the RONA+banner in Ontario. They are: Brampton South, Brampton North, Mississauga Central, Scarborough North-Markham, Scarborough West, Toronto York, Etobicoke South, Milton, and Burlington North. Jean-Sébastien Lamoureux, SVP for RONA affiliates, wholesale, and public affairs, told the Hardlines Conference last week that by year’s end, more than half of Lowe’s Canada stores will have converted to the RONA+ banner.

The BSIA’s 85th anniversary gala took place at the Fairmont Chateau Whistler resort last week, in conjunction with the 27th Hardlines Conference. The association used the event to present its 2023 Orion Awards. This year’s winners are: Parkland Building Supplies 1998 Ltd., a Home Building Centre dealer in Sicamous, which won in the urban hardware and rural lumberyard category; Central Hardware 2018, a TIMBER MART dealer in Enderby, for the building centre contractor yard category; Nelson Home Building Centre in Nelson, winner in the building centre-mini-box category; Windsor Plywood, Courtenay, in the finishing and specialty products category; and Arbutus Home Building Centre, Galiano Island, winner in the mystery shopping category.

Castle Building Centres has added Toronto’s Mr. Bin Inc. as its newest member. Founded in 2019 and proudly rooted in Toronto’s Canadian Chinese community, Mr. Bin encompasses three different business categories: LBM, hardscapes, and construction disposal services. With the move to Castle, the owners will place a renewed focus on the LBM side of the business. A grand opening celebration is planned for late fall.

A new promotion from Home Hardware Stores is designed to encourage its customers to use Home’s newly adopted Scene+ loyalty card. Called the “Scan and Win” contest, the promotion automatically enters a customer into a draw to win a million points every time they scan their Scene+ card when making a purchase at Home Hardware. The contest continues until Dec. 31.

Hudson’s Bay, which is already busy with a relaunched banner (Zellers) and a repositioning at select Bay locations (the Outlet Store) has relaunched Hudson’s Bay Rewards, its loyalty program. The Hudson’s Bay Rewards app delivers exclusive offers personalized to members based on preferences and shopping habits, in-app “Quests” that give members bigger returns, access to special events, and other perks.

Ipex has held the grand opening of its new U.S. flagship manufacturing facility in Pineville, N.C. The 200,000-square-foot injection moulding plant features fully electric injection moulding machines, proprietary automation, and cloud connectivity.

The annualized rate of housing starts rose by eight percent in September to 270,466 units, from 250,383 units in August. The rate of urban starts increased by nine percent, with 250,766 units. Single-detached urban starts were up three percent to 43,077 units. (CMHC)

Sales of existing homes declined by 1.9 percent between August and September. It was the third consecutive monthly decrease, but only about half as large a drop as in August. Declines in Greater Vancouver and the Greater Toronto Area offset gains in Edmonton, Montreal, and Kitchener–Waterloo. The actual (not seasonally adjusted) number of transactions in September came in 1.9 percent above September 2022. (Canadian Real Estate Assoc.)

Bill Simon, CEO of Walmart U.S. from 2010 to 2014, gave an insightful interview with CNBC recently, in which he talked about the recent change in retailer pricing strategies. Inflation, among other factors, is hampering retailers’ ability to offer bargain prices, Simon said. This has resulted in some retailers changing their price promotions. You can see the signs when you enter mass merchants’ stores—if you pay attention. “They usually say, ‘50-inch TV, $199, or something like that. And now they say, ‘50-inch TV, 40 percent off.’ You use percentages when you’re not real proud of your price point,” Simon observed.

Slower growth is forecast for home improvement retail this year and in 2024

Hardware and home improvement retailers enjoyed unprecedented sales growth through the Covid years, with overall sales volumes increasing by more than 30 percent from 2019 to 2022.

But can it last?

These numbers, as reported in this year’s Hardlines Retail Report, showed a big turnaround for the industry from 2019 to 2020—a shift that was as challenging as it was beneficial. Retailers scrambled to get product and to get it into the hands of customers as lockdowns and fears of the spread of the Covid virus held the world in its grip.

The Hardlines Retail Report is an annual study by Hardlines that compiles sales growth year over year, identifying those sales according to store formats—hardware stores, home centres and building centres, big boxes, and Canadian Tire (yes, it gets its own category). Sales are also examined regionally, with performance by each province and territory examined.

Pre-Covid, this industry was watching sales slow to the point that, in 2019, Hardlines reported negative sales growth for only the second time since we began tracking the industry almost 30 years ago. A year later, sales increased by a whopping 15.5 percent, leaving retailers struggling to meet demand while suppliers scrambled to get product, raw materials, and access to shipping lanes. The following year, 2021, saw double-digit growth again, but by 2022 that growth had slowed—or normalized—to less than five percent year-over-year (and below the 6.8 percent rate of inflation).

But 2023 is shaping up for many retailers to be a different reality. According to the report, the industry is forecast to remain steady this year, with an anticipated slowdown in the second half of 2023 that is already, for many dealers, setting in. Regionally, Alberta is forecast to lead any growth this year, with Saskatchewan close behind. Modest growth is anticipated for New Brunswick and Nova Scotia.

The external factors affecting the industry are acute: as interest rates remain high, it puts pressure on housing affordability and on renovation investment, while higher prices for food and essentials are putting further limits on consumers’ discretionary spending abilities.

In addition, major retailers anticipate flat to negative growth for the year, and our surveys of the retailers in this sector, large and small, have forecasted largely flat sales growth this year. Based on all these factors, Hardlines forecasts that growth for the sector will be stable at best for 2023.

(The Hardlines Retail Report features 130 slides in handy PowerPoint format. As a Premium Member-Subscriber, you save more than 20 percent on your order. And save more than 30 percent when you buy the Hardlines Retail Report bundled with its companion research, the Hardlines Market Share Report. To order your Reports, click here now!)

RONA makes acquisition through its Dick’s Lumber division

Since the takeover of the Lowe’s and RONA business in Canada, the new owners have been colouring pretty much within the lines—until now. Under the ownership of Sycamore Partners, RONA inc. has made its first strategic acquisition, and it’s not a traditional dealer.

Through its Dick’s Lumber division, the company’s commercial and contractor business, RONA has completed the acquisition of ZyTech Building Systems, a manufacturer and distributor of building components and engineered wood products. The deal is intended to allow Dick’s Lumber to expand its design and manufacturing footprint to developers and builders in Western Canada.

Founded in 1997, ZyTech is headquartered in Balzac, Alta., and has locations elsewhere in the province in Airdrie, Red Deer, and Leduc, as well as one in Saskatoon and one in Dallas/Forth Worth, Texas. It also has sales offices in Calgary and Stony Plain, Alta. ZyTech had been owned, since 2014, by TriWest Capital Partners, a Calgary-based private equity firm.

ZyTech specializes in floor and roof systems, including I-joists, engineered steel columns and floor trusses, as well as prefab stairs and wall panels, to builders and contractors.

While RONA would not confirm further details of the acquisition, a quote in the original press release attributed to Mike Powell would indicate he will remain CEO at ZyTech. Powell’s background includes a role as VP and general manager at Star Building Materials in Calgary and, more recently, as VP finance for TIMBER MART’s head office. RONA would not confirm whether Powell will report directly to Dick’s Lumber’s president, Paul McKeown.

“We are thrilled to welcome the ZyTech team to the Dick’s Lumber and RONA families,” said Andrew Iacobucci, CEO of RONA inc. “ZyTech is a very strong player in its field. This acquisition will strengthen our position in the Alberta and Saskatchewan markets and improve how we serve our valued customers.”

Garant’s repositioning reflects the power of brand in an age of message clutter

How important is strong branding? Drive down the coast in Miami, Fla., and you’ll see lots of condo developments being built, but more and more these buildings are adopting valuable brand names. Brands like Porsche and Armani are gracing the sides of condo buildings—in an effort to heighten their appeal and sense of exclusivity.

Names such as the Aston Martin Vulcan, with a penthouse listed at $59 million, and the Porsche Design Tower, which has units that cost as much as $32 million, are becoming more common in Florida.

The importance of any company’s brand must be carefully nurtured, something Garant, the outdoor tool manufacturer based in Quebec, has focused on under its general manager since 2021, Pierre-Yves Martin. Drawing on a legacy that dates back more than 125 years, Garant has launched a plan to establish its products as “the Canadian brand of choice for all essential tools and accessories related to outdoor work and projects,” according to the company.

With headquarters in Saint-François-de-la-Rivière-du-Sud, Garant is known for its lines of gardening, snow removal, and striking tools, including rakes, hoes, shears, shovels, sledgehammers, and axes. The company plans to double brand recognition across Canada, with ambitions to increase sales by 50 percent and to boost project design innovation revenues by 20 percent within the next five years.

“We have decided to concentrate all our activities under the Garant brand by gradually eliminating several of our sub-brands,” says Martin.

Garant is working with LG2, a Montreal-based advertising and communications agency. The agency’s mission was to establish “a new brand platform that reflected the company’s evolution while respecting its legacy and heritage,” said Jacques de Varennes, a partner and VP at LG2.

The transition will take place gradually as the Botanica, Xtra, Econo, Cougar, Practica, Blizzard, Agro Series, Proflow, Yukon, Alpine, Nordic, and Lynx brands are gradually pulled from the shelves to make room for a broader Garant identity. Garant is unveiling a new logo, and the transition will be supported by an advertising campaign and a new website that will become transactional in 2024.

When the Hardlines Conference starts this week in Whistler, B.C., the increasing “digital divide” in our industry will be put under the microscope by at least three speakers.

While Home Depot doesn’t release its online sales figures, the company was thought by analysts to do about US$22 billion via e-commerce in its most recent (2022) fiscal year. That represents 14 percent of its online sales.

Walmart, which does break out its e-commerce sales, did a similar online percentage—13 percent of its total sales, or a whopping US$80 billion, in 2022.

In this country, Hardlines estimates that the leading corporately-owned retailers in our Top 20 Retailers—Home Depot, RONA, and Canadian Tire—do about 10, 10, and eight percent of their sales, respectively, via e-commerce. While lower than the U.S. numbers cited above, that is well above the retail industry average in this country. StatCan reports that Canadians spent 6.2 percent of their total retail expenditures through e-commerce last year.

But the dilemma that independent retailers face—compared to the well-heeled, high-tech box stores—is how to compete in a digital world. Indeed, the 2023 Hardlines Retail Report estimates that independent stores in our industry do barely 0.1 percent of their sales online. That means that the box stores are doing 100 times the percentage of online sales that their family-run competitors are doing.

This has been dubbed the “digital divide” by the podcast The Business of Retail. It features David Ian Gray, a retail consultant in Vancouver whose firm DIG360 has consulted for Lee Valley Tools, a hardlines retailer that has excelled at e-commerce in addition to its bricks-and-mortar presence. Gray will be speaking at the Hardlines Conference about—you guessed it—The Digital Divide, among other topics.

The topic will also be addressed by customer-engagement expert Romain Mercier, who specializes in using data to reach customers in the retail space at PS&Co Data Lab, Vancouver. Mercier will talk, in part, about funding that is available to help smaller retailers begin their digital transformation. And, finally, Dan Tratensek, CEO and publisher of the North American Hardware & Paint Association (NHPA) will address the digital divide from a both-sides-of-the-border perspective.

For anyone that doubts that the digital divide is a threat to traditional methods of retailing, consider this: the total sales of Amazon (the world’s largest digital retailer) last year were US$514 billion—which just happens to be approximately the size of the entire American retail home improvement industry. Or 10 times bigger than our own retail home improvement industry.

Joanne Moore has joined Derby Building Products as territory sales manager for the province of Quebec, representing Derby’s Tando Composites and Novik brands. In her new role, Moore will focus on strengthening relationships with distributors and dealers to drive business growth. She will also work with installers and specifiers, as well as siding and renovation contractors, builders, architects, and designers.

At Wolseley Canada, Mark Evans has been appointed director of sales, plumbing, and HVAC for western Canada. In this newly created role, he will work closely with the regional sales managers. Evans was most recently senior director of corporate development at Viega.

DID YOU KNOW…?

… that the entire Hardlines Team is in Whistler, B.C., this week? We are preparing to host the 27th annual Hardlines Conference, in partnership with the BSIA of B.C. It’s gonna be a blast!

RETAILER NEWS

Amazon now has a pickup depot in Iqaluit. The company says the new facility will reduce delivery times in the region to between just three and five days, compared with the previous window of two to three weeks. Amazon has partnered with the airline Canadian North. Flights from Ottawa to Iqaluit every Wednesday and Sunday will transport Amazon Prime orders to northern communities. Iqaluit Mayor Kenny Bell told CBC that he estimated Amazon delivered 200,000 parcels to Iqaluit in 2019.

Home Hardware Stores Ltd. has partnered with local artists across Canada to mark World Mental Health Day. Home Hardware stores have selected organizations in their communities and presented indoor murals featuring colours from BeautiTone’s 2024 Colour Trends Card.

Home Depot is among the major North American retailers facing larger and increasingly better organized theft rings. But where does all this stolen merch go? An investigation in Florida came to the conclusion that a pastor in Tampa was behind a years-long crime ring that was allegedly responsible for stealing $3 million worth of products since 2016. Robert Dell is a pastor who ran a drug recovery program. He is accused of recruiting vulnerable individuals in the program to shoplift the products, then in turn selling those wares online.

Canadian Tire’s JumpStart charity aims to foster equality in sport and recreation. It funds sports fees for the children of families in need—and it also builds sports and recreation infrastructures. The largest playground ever built by JumpStart was officially opened last month in Barrie, Ont. The city’s Painswick Park is the location of the Muriel and A.J. Billes Family Playground.

Wolseley Canada held a grand opening last week for its newest store, in Port Coquitlam, B.C. The 16,000-square-foot facility is one of two stores set to open in British Columbia over the next year, as part of Wolseley Canada’s planned expansion in the region.

Walmart has been testing AI to help its employees serve customers. Staff at a store in New Jersey, among others, use a special app to gauge what needs restocking, plotting the most efficient route they should take between the stockroom and the shelves. The app shaves 30 percent off employees’ time to complete restocking tasks, the company has said. Walmart has said that, within five years, 65 percent of its stores will have this technology.

Richelieu Hardware’s third-quarter profits fell by $30.7 million. Consolidated sales declined by 2.9 percent to $459 million. The company pointed to a weaker loonie and higher warehousing costs as contributing to its financial results. For the year to date, consolidated sales reached $1.3 billion, down 0.8 percent. Since the beginning of the year, Richelieu has made six acquisitions, four in Canada and two in the U.S.

The total monthly value of building permits increased 3.4 percent in August to $11.9 billion. However, residential permits declined 3.7 percent to $6.8 billion, largely due to weaker multi-unit construction intentions in Ontario, Quebec, Manitoba, and Nova Scotia. These declines were partly offset by monthly gains in the value of single-family home permits. (StatCan)

The first half of 2023 showed an uptick in new home construction for several major cities. The increase, however, was slight, and rested largely on the strength of the multi-family sector. Factors like higher building and borrowing costs are expected to put a damper on the pace of homebuilding. Housing starts were up in just two of the six cities reviewed (Toronto and Vancouver) over the comparable period of 2022. (CMHC)

The latest edition of Hardlines Dealer News came out last week. In this issue, we look at how the major banners are wooing pro customers, Home Hardware’s private-label push, and winning social media strategies. Hardlines Dealer News is monthly and it’s free: click here to subscribe now!

Homeowners keep spending less on renos: HomeStars survey

HomeStars, the online contractor referral service, published its fifth annual Reno Report last week. It revealed that Canadian homeowner respondents reported spending an average of $12,300 on renovations in the past 12 months. That was down from about $13,000—or 5.4 percent—in the 2022 Reno Report.

HomeStars also asked homeowners to predict their anticipated renovation spending over the next 12 months. That number, $10,264, is a significant 14.1 percent decline from the previous year’s average spend.

“Weather-related events” were a major driver of Canadian renovations, the survey said. One-third of responding homeowners had completed emergency repairs because of weather-related events, peaking in Atlantic Canada at 41 percent.

However, homeowners do anticipate some reno activity, according to the survey. One-third intend to postpone planned renovations due to rising interest rates. But nearly three-quarters of respondents planned to do at least one home renovation in the next 12 months.

Sustainability was a consideration for the majority of respondents, with almost 80 percent citing it as important when choosing building materials for renovations. However, only 59 percent who renovated in the past 12 months have used green products. Older homeowners were significantly more inclined to consider sustainability when choosing building materials for renovations, at 41 percent compared to the 23 to 39 age group at 26 percent.

On a regional basis, respondents in British Columbia were most likely to have additional real estate, with 21 percent owning an income property in that province, versus 16 percent nationally. While 79 percent of Canadian homeowners surveyed had the cash on hand to pay for renovations, Albertans took the top spot, with 85 percent reporting they have the cash on hand, outpacing the national average.

Retailers beef up their bricks-and-mortar value with showroom formats

The role of a hardware store or building centre as a source of advice and product knowledge helps dealers combat the prevalence of online shopping. But traditional stores face the likelihood of continued sales erosion by e-commerce. More and more retailers are adding specialty showrooms as a way to increase their “high-touch” presence while expanding their product lines.

Coast Builders, which includes three RONA stores on British Columbia’s Sunshine Coast, opened showrooms early this year to support customers with kitchen improvement projects. The “Appliance & Design Showroom” features kitchen products and appliances displayed in a boutique environment.

The concept aims to help customers, both DIY and pro, with their kitchen renovations, offering kitchens and appliances displayed in vignettes so customers can envision the complete project. The RONA showroom in Sechelt is 2,500 square feet in size, while the store in Madeira Park represents 1,800 square feet.

“We went from zero sales in kitchens and appliances to it now accounting for 7.5 percent of our overall sales,” says Russ Jones, president and owner of Coast Builders.

The offering also gave his stores a hedge against deflated lumber and commodity prices. “This was really good for us.”

RONA is not alone, as other retailers are seeing the value of a more refined showroom approach. Plumbing supply chain Wolseley has been rolling out “Studio,” a showroom in some of its stores that features higher-end fixtures and fittings, complete with an in-house designer to offer contractors suggestions for their end-user customers.

There are currently 200-plus Wolseley locations in Canada and about 26 of them have a Studio, with more planned. The target customer is the residential contractor, but staff at the Wolseley Studio can also work directly with the end user and pick the appropriate product for the contractor to then install, saving the contractor time and money.

“I would say that the Showroom concept offers the ‘consultative’ approach to renovating and creating a homeowner’s dream look for a bathroom or kitchen,” says Harry Kandilas, Wolseley Canada’s director of showrooms. “Utilizing one of the Wolseley Studios or Kitchen and Bath classics showrooms gives the end user the opportunity to touch and feel some of the higher-end brands that are not always available at the big box stores.”

Kandilas says the showrooms attract many designers, “but we also work closely with the contractors—be it renovator, plumber, etc.—who will usually send the client to our showrooms for that personal tour and review of their needs.”

Getting closer to customers with additional locations and expertise has been a strategy for IKEA Canada in recent years. With only 14 stores in this country, the retail giant is prioritizing making access to its product lines easier. Its “Plan and order point” outlets are small shops staffed by IKEA specialists who can consult with customers on product selection and installations.

The showroom concept is catching on internationally as well. Byggmax is a large home improvement retailer based in Sweden. It’s been trying out a new concept, called “Byggmax Studio.” The third such store will open in the spring of 2024 in in Umeå, Sweden. The concept, aimed at the do-it-for-me customer, offers options for affordable interior renovation and design, with a focus on tile, flooring, and paint.

The battle among retail loyalty program continues to heat up

Every Monday until Nov. 6, riders who tap onto Toronto’s public transit system with their Tims credit cards can save up to $10. Tim Hortons kicked off the campaign on Sept. 25, the latest example of the ways retailers are leveraging their rewards programs.

The Tims card is powered by Calgary-based Neo Financial, which as of last spring had more than 10,000 retail partners, including Hudson’s Bay Co. and Walmart, and continues to add more companies.

In our industry, Canadian Tire has been particularly aggressive in cultivating its Triangle Rewards program. Earlier this year, it rolled out a paid subscription tier, Triangle Select. But other retailers have recognized the value of these plans, which offer savings to shoppers and valuable customer data to businesses.

Scotiabank’s Scene+ program was originally simply Scene, a partnership with Cineplex that allowed customers to accumulate points they could redeem at box offices and concession stands. It’s been expanding dramatically to a wide network of retail partners, including Empire Co., parent of Sobeys, IGA, and Safeway grocery stores. Home Hardware Stores is its exclusive home improvement partner.

Lowe’s Canada, now RONA inc., signed on to Avion Rewards last fall, after dropping Air Miles. At the time, benefits were limited to holders of RBC credit or debit cards, but RBC announced it will offer travel benefits to clients of other financial institutions.

Air Miles, for its part, lost several key partners in the last few years—not only RONA, but also Staples, Empire Co., and Ontario’s liquor stores. The program’s owner, LoyaltyOne, filed for bankruptcy in both Canada and the U.S. earlier this year. In June, Bank of Montreal acquired the program, whose retail partners include TIMBER MART, Kent Building Supplies, Dollarama, and Shell.

Analyst Bruce Winder told Retail Insider that with the revival of multi-partner loyalty programs, retail is coming full circle. “If you go back to the loyalty space about 20 years ago, even 15 years ago, a lot of programs were sort of tied with a coalition, like a network,” he said.

That trend later gave way to a landscape with many retailers trying to go it alone, but now “maybe we’re starting to see a bit of a rebirth and a re-linkage of coalitions.”

DID YOU KNOW…?

… that, as a Hardlines Premium Member-Subscriber, you can take advantage of a Hardlines Classified Ad? You now get one 250-word classified ad, logo included, per year for FREE. (With additional classifieds, you’ll receive a 15 percent discount.) You’re getting more value than ever with your Premium Membership-Subscription to the Hardlines Weekly Report. This is our way of saying thanks! Want to place a Classified Ad in Hardlines? Click here or contact Jillian MacLeod here at the World HQ!

RETAILER NEWS

Giant Tiger Stores will hold a grand opening of its newest store in London, Ont., on Oct. 14. This will be the fourth location in that city for the Ottawa-based discount retailer. The 18,800-square-foot store is located at 50 North Centre Rd. The grand opening will include giveaways, a gift card to the first 100 customers, and, of course, a visit from Friendly, the Giant Tiger.

Home Hardware Stores has presented its Walter J. Hachborn Store of the Year Award to Wilson’s Home Hardware Building Centre in Barrington Passage, N.S. The store also received the nod for Best Home Hardware Building Centre in the Atlantic Region. Dealer-owner Mike Wilson accepted the honours at Home Hardware’s Homecoming event last month in Toronto. His grandfather, Buzz Wilson, first began talks with Home Hardware co-founder Walter Hachborn in 1965 about joining the nascent Home Hardware banner, which he did two years later.

Lowe’s has made a deal with Carhartt, the workwear clothing brand, to add an assortment of Carhartt products online and in select stores in the U.S. The collection features Carhartt’s signature duck jackets, and vests, as well as hoodies, T-shirts, workwear pants, and beanies. Currently, the collection is available at roughly 250 Lowe’s stores across the Northeast, Midwest, and Pacific Northwest – with about 250 more stores in Texas, the Southeast and California adding Carhartt products in early 2024.

Nathalie Bellerive, dealer-owner of Matériaux Lavergne Home Hardware Building Centres in Charette and Saint-Étienne-des-Grès, Que., has acquired her third store. Matériaux Lavergne Inc. Saint-Paulin, which recently celebrated its official opening, boasts 4,600 square feet of retail space and an additional 1,700 square feet of warehouse space.

The Atlantic Building Supply Dealers Association will hold another HR conference later this fall. The ABSDA Human Resources Conference will be held Nov. 16 at the Halifax Convention Centre, with a theme of “Navigating the labour shortage.”  Presenters will include Pierre Battah, an award-winning leadership and workplace specialist (This guy’s good!—your impartial Editor). Anyone who wants to attend should register by Oct. 16. (Click here for more information and to register.)

Leviton was at the top of the list of vendors recognized recently by Home Depot’s Atlanta head office as Innovation Award winners. The overall winner was a range of electrical switches and outlets called Decora Edge, manufactured by Leviton. They “make installing light switches and outlets faster, safer, and more efficient,” Home Depot said in a release.

Bill Lee, former president and CEO of the North American Hardware and Paint Association, died on Sept. 29. Lee was a passionate supporter of the independent home improvement retail industry, serving the NHPA for over 20 years before retiring in 2017. Lee started his work with the association, then known as the National Retail Hardware Association, as an outside marketing consultant for 12 years before starting as the association’s marketing director in 1996. In 2008, he took over as CEO. He also served as general chairman of the International Hardware Association.

The National Retail Federation’s annual Hallowe’en survey has found that a record 73 percent of U.S. consumers will celebrate the holiday this year, up from 69 percent last year. The average planned expenditure is $108.24 per person, breaking the previous record of $102.74, set in 2021. In total, Hallowe’en spending in the U.S. is expected to hit $12.2 billion this year, up from last year’s $10.6 billion.

Vendors want to know what buyers look for, so we asked them to tell us

The most important business relationship most vendors will ever have is with their key account buyers. And while those relationships build up over time and are based on trust and personal connection, buyers generally have a hard list of expectations of what vendors need to do to make that relationship successful.

In the next edition of our sister publication, Hardlines Home Improvement Quarterly, our editors spoke with 10 merchants from the top retailers, wholesalers, and buying groups to get some insights into the buyer role—from their perspective.

When it comes to new products, Marie-Yannick Carrière doesn’t miss a beat. The category director for paint at RONA inc. says she is always on the lookout for four things: innovation, a product that solves a problem, features clear packaging for the consumer, and is well priced. “To illustrate what I mean by problem solving, let’s take paint that dries quickly, is more washable, more durable, or different products for different applications, for example.”

Kristen Fromm, housewares merchandise manager for Home Hardware Stores (shown here at last year’s Home Hardware Homecoming Market), agrees that products like paint need to address specific consumer concerns. “They are looking for a specific paint for a specific need. This requires guidance and advice, as customers are increasingly involved in their renovation projects, and paint is often at the heart of these projects.”

From vendors, she expects innovation, exclusivity, and competitive pricing. “However, the partnership goes beyond the products and pricing—is the supplier going to provide cost concession when market shifts occur? Are they meeting shipping dates? And, just as important, are they communicating in a timely manner when shipping dates need to be adjusted?”

John Magri is the director of programs at the Sexton Group. He observes that a great vendor relationship is built on the vendor’s “desire to grow their business with us, to grow the relationship.” He stresses the importance of good communications and a willingness to work with his group through “the ups and downs for the long term.”

When asked what he looks for in new products, Randy Martin, vice-president of procurement for TIMBER MART, said, “Innovation, particularly as building codes and the needs of contractors evolve. Our vendor partners are key to keeping our program offerings to our members current and relevant.”

All the merchants we spoke with cited the importance of clear and ongoing communication from vendors, as well as a desire to take a long-term approach to success, rather than looking to make a quick deal. And, adds Mathieu Villemaire, the category director for hand tools at RONA, “a steady supply of quality products.”

(The full story on what buyers are looking for, and some of the new products they are dealing with, appears in the upcoming edition of Hardlines Home Improvement Quarterly, our print magazine for dealers and managers. HHIQ is free to retailers, and suppliers can subscribe for a fee. Click here to start or update your subscription to HHIQ!)

New RONA+ banner continues to appear on more former Lowe’s stores nationally

The company formerly known as Lowe’s Canada continues to reposition its stores to align with its updated identity. RONA inc. held simultaneous board cuttings on Sept. 21 to mark the conversion of another 15 Lowe’s stores to the new RONA+ banner.

The latest stores to adopt the yellow-bannered RONA+ brand, all in Ontario, are in Barrie, Belleville, East Gwillimbury (pictured here), Kanata, Kingston, London North West, London South West, Maple, Nepean, Orleans, Oshawa, Ottawa Gloucester, Pickering, Sudbury, and Whitby.

These fresh conversions follow closely on the heels of nine others that were made barely a week earlier—and the retailer’s first conversions outside Ontario. These stores are in British Columbia (Vancouver Grandview, Nanaimo, Victoria Langford, Victoria Tillicum, Abbotsford), Saskatchewan (Regina South, Saskatoon West), and Manitoba (Winnipeg East, Winnipeg South).

As part of the process, all the former Lowe’s stores have remained open during the facelifts.

“The conversion of the former Lowe’s stores to the brand-new RONA+ banner is part of a wider plan aimed at redefining how Canadians shop for home improvement and represents a significant local investment,” RONA said in a release. “Through this process, the company is looking to build on the strong legacy of the RONA brand and build momentum for this beloved Canadian-operated household name.”

(Jean-Sébastien Lamoureaux is the senior vice-president of RONA affiliates, wholesale, and public affairs. He will be our keynote speaker at the 27th annual Hardlines Conference, Oct. 17 and 18 in Whistler, B.C., in partnership with the BSIA of B.C. Delegates will get the lowdown on RONA’s plans for its new format stores, plus its relationship with its affiliate dealers. Not to be missed. Sign up now!)

IKEA is investing in bigger, more tech-friendly stores, better fulfilment

IKEA Canada intends to invest heavily in its fulfilment capabilities in the Greater Vancouver and Toronto Areas over the next couple of years. The multi-million-dollar investment will result in expanded fulfilment capabilities at IKEA’s store in Richmond, B.C.

When completed, the store will be about 50 percent larger, thanks to the addition of a two-storey wing with a floor area of 162,400 square feet. That will grow the total floor area of the store from 345,000 square feet to more than 507,000 square feet. It will provide enhanced click-and-collect and locker pickup services, while supporting truck, parcel, and collection-point delivery throughout the Lower Mainland.

IKEA also has a 330,000-square-foot distribution centre located in an industrial park in southeast Richmond.

In the Greater Toronto Area, the retailer is planning a number of expansion projects throughout southwestern Ontario, including a new customer distribution centre in Hamilton that is expected to be up and running in 2025. Its stores in Etobicoke and Vaughan will also undergo expansions by 2025 to strengthen their store fulfilment capabilities.

The expansions will also enable IKEA to better maintain inventory of high-demand products while keeping delivery times as short as possible. The company also has ambitions to build a new fulfilment facility in Hamilton, Ont.

The Hudson’s Bay department store chain has remade an existing store in the eastern suburbs of Toronto into a deep-discount location. The new Hudson’s Bay Outlet store, at Eglinton Square in Scarborough, is selling home goods, accessories, clothing, and footwear at up to 75 percent off.

The chain has tried the discount model before—years ago—but ultimately closed those outlets in Montreal and Toronto. Earlier this year, it capitalized on the consumer demand for its original discount retail concept when it began opening “pop-up” Zellers stores within its Hudson’s Bay stores across the country.

Like Zellers, the Outlet store is looking to be less fashion-forward and more family-oriented, offering “extreme savings” through a dedicated retail location. “Transforming our Eglinton Square location into an outlet store for customers creates a fun and unique shopping destination, distinct from the Hudson’s Bay full-line experience,” said Kosi Sivasankaran, Hudson’s Bay’s chief stores officer.

For Hudson’s Bay, adding an outlet store and reviving the Zellers brand gives the retailer a conduit for low-priced assortments that could help the company compete with discounters and dollar stores, which flourished early in the pandemic.

The rollout of the Zellers locations has spanned the last several months. The Zellers rebirth started as a series of pop-up boutiques within Hudson’s Bay stores. A similar pop-up Zellers section was launched earlier this summer at Hudson Bay’s flagship Queen Street store in Toronto (shown here). On Sept. 27, the latest store-within-a-store concept Zellers went up at the Hudson’s Bay store in Brampton at Bramalea Civic Centre, west of Toronto.

Zellers also appears in pop-up form at 23 other locations. The pop-ups range in size from 1,000 to 2,800 square feet and serve as strategic market tests to determine future Zellers store locations. In anticipation of the pending Christmas holiday season, Hudson’s Bay intends to add Zellers in all 78 stores across the country before the end of this month.

Gino DiGioacchino has been appointed president and CEO of Giant Tiger Stores Ltd. He formerly served on the Giant Tiger board and as interim president and CEO. DiGioacchino replaces Paul Wood, who held the CEO role for slightly more than two years before leaving the company in November 2022. DiGioacchino is best known to this industry for his time at The Home Depot Canada. As VP of merchandising, he was considered the number two in the company after then-president Annette Verschuren. He left Home Depot Canada in 2011 to become chief merchandising officer at Walmart Canada, a position he held until 2016. He joined the Giant Tiger board in 2017.

Stéphane Gaumond has joined AD as director, business development, for the Building Supplies – Canada division. Bringing with him over 25 years of industry experience, including stints at Metrie, Continental Building Products, and WSB Titan, he will now manage all aspects of business development for the division’s presence across Canada while maintaining a special emphasis on eastern Canada. He is based in Montreal.

DID YOU KNOW…?

… that the Hardlines Conference is just two weeks away in Whistler, B.C., Oct. 17 and 18? Our keynote speakers include executives from RONA, Home Depot, Federated Co-operatives’ leading dealers on the west coast, representatives from Taiga, Johns Manville, RONA, Home Hardware, Home Depot, Castle, Sexton Group, Federated Co-op, and Taiga. As a Hardlines Premium Member-Subscriber, you get a 20 percent discount on your conference registration (which closes Oct. 4). Got a question? Contact our amazing Marketing and Events Manager, Michelle Porter!

RETAILER NEWS

The Home Depot is hosting an online promotion leading up to the holiday season that targets the retailer’s home décor and accessories products. “Décor Days” is an online-only sales event which offers its “biggest style savings of the year.” It runs from Oct. 5 to Oct. 9 and will feature deals on some 10,000 décor products, including national brands as well as its private brands like Home Decorators Collection, StyleWell, and The Company Store.

RONA inc. has received a Special Recognition Energy Star Canada Award, the fourth Energy Star distinction conferred on the organization. The award recognizes RONA’s participation in the Canadian Greener Homes Grant, staff training on eco-friendly product knowledge, and increased visibility and promotion of Energy Star-certified offerings, among other initiatives.

Home Hardware Stores Ltd. and its dealer-owners once again joined Tree Canada this year to mark National Tree Day and engage in nationwide community tree-planting events. Twenty-four Home stores across nine provinces planted trees to mark National Forest Week.

Amazon says it’s expanding its logistics network to allow selling partners to ship products from its storage service to outside warehouses and bricks-and-mortar stores. The new service, dubbed Multi-Channel Distribution, leverages the e-retail giant’s existing Amazon Warehousing Distribution, which previously allowed only for shipping directly to the consumer. It’s part of a strategy by Amazon to tackle end-to-end fulfilment, including customs clearance and ground transportation.

At Costco Wholesale Corp., net sales for the fourth quarter were $77.43 billion, an increase of 9.4 percent from $70.76 billion. Net sales for the fiscal year, which includes a 53rd week, reached $237.71 billion, up 6.7 percent from $222.73 billion. In Canada, where Costco has 107 stores, comp sales were up 8.1 percent. But not including the increase in gas prices and the impact of foreign currency exchange, the comp increase was a more modest 1.7 percent.

Registration is open for the Western Retail Lumber Association’s 30th Anniversary Building and Hardware Showcase. The show returns in January to Winnipeg’s RBC Convention Centre for an event that includes learning, networking, and presentations by top manufacturers, distributors, and service providers. The show will kick off with a new feature: a day-long series of business workshops. (Click here to register.)

Quebec will not follow the federal government in waiving taxes on building materials for rental housing, Premier François Legault said last week. “We are looking at several [other] scenarios to help tenants,” said the premier. “We don’t think it would be the most effective measure in the short term.” Prime Minister Justin Trudeau announced earlier this month that GST on materials for the construction of new rental buildings would be eliminated, reviving a shelved 2015 campaign promise.

West Fraser Timber has reached an agreement to sell its Quesnel, B.C., and Slave Lake, Alta., pulp mills to Atlas Holdings. The deal, valued at $120 million, includes related woodlands operations and timber holdings in Alberta and a long-term fibre supply agreement for the Quesnel facility.

Retail sales increased by 0.3 percent to $66.1 billion in July. Sales increased in seven of the nine subsectors and were led by a 1.3 percent hike at food and beverage retailers. LBM and garden sales rose by 0.9 percent for the month. (StatCan) 

The Hardlines Market Share Report is now available for purchase. This important proprietary research is not available anywhere else. It features 80 slides in handy PowerPoint format. As a Premium Member-Subscriber, you save more than 20 percent on your order. And save more than 30 percent when you buy the Market Share Report bundled with its companion research, the Hardlines Retail Report. (Click here to order your Reports today!)

Private brands are key at latest Home Hardware dealer market

A walk through the latest in-person dealer market held by Home Hardware Stores Ltd. revealed lots of new products, along with a plethora of services for the dealers. Called “Homecoming,” the market was held for the second consecutive year at the Enercare Centre at Exhibition Place in Toronto.

On the product front, categories that are seeing continued strength included outdoor living. The company’s range of patio furniture and décor was front and centre at the market. Home offers a “Basics” program, which provides entry price points for its products, and in the case of outdoor furniture that meant patio chairs starting at $29. At the high end of the category, natural colours and muted tones dominated. Wooden outdoor tables with the natural look of “living edge” finishes were complemented by other finishes in red, blue, beige, and grey.

Moving into the paint department, Home was showcasing an extended line of spray paints under its BeautiTone brand. The number of available colours has doubled from 12 to 24—including some nods to the latest pop culture trends like Barbie pink.

That pink was also found in the bath category, with—wait for it—pink tubs. Other colours featured in fashion plumbing included gold, which remains a popular choice, along with black, which a Home Hardware spokesperson said is now the number-one colour for faucets. In fact, one bath vanity set mixed black and gold together.

An overriding trend throughout the products was the focus on private labels. In addition to legacy brands such as Benchmark (including a battery-powered riding lawnmower featured at the market), Home Hardware has been investing in other labels, which reflect, along with the pro focus, a parallel push on home products. InStyle comprises everything from wine glasses and mirrors to towels, shower curtains, vases, and even flooring.

“Home has focused on our private-label brands to deliver trusted products to Canadian consumers in various categories like paint, tools, home décor, and more,” said Marianne Thompson, Home Hardware’s chief commercial officer. She added that the private brands are an important way for Home Hardware dealers to bring innovation and value to their customers.

Another important Home Hardware brand is Mosaic, a mid-range line that replaces Kuradori and is expanding this year into small appliances such as microwaves and toasters. The KitchenAid brand remains the retailer’s high-end brand.

The beefed-up housewares and kitchenwares offerings are designed to make Home Hardware stores a destination for these categories.

“We are thrilled to expand the Mosaic brand into the small appliances category, as it completes our kitchen story to the customer,” said Kristen Fromm, Home’s merchandise manager for housewares and small appliances. “From cookware and bakeware to gadgets and small appliances, the Mosaic brand encourages customers to define their kitchen space with a range of products they can trust to prepare meals of any size for any occasion.”

Castle keeps growing with the addition of new members Canada-wide

Dealers continue to move between banners, and one group that’s managed to pick up new members from right across the country in recent months is Castle Building Centres Group.

Castle, which currently boasts more than 325 members nationwide, has been adding stores that are both traditional building centres and more specialized dealers that can fit the diverse profile that Castle represents.

“Changes in ownership and corporate direction are being questioned by more and more independents. We are experiencing this every day,” says Ken Jenkins, the group’s president and CEO. He points out Castle’s focus on each dealer’s own brand as taking precedence for the group.

“We have a compelling story that focuses entirely on the success of the entrepreneur. At the same time, making the right choice of buying groups is also essential. Our ability to exhibit that an independent’s cost of affiliation to a buying group is as important as their cost of goods is opening their eyes to an increasing number of opportunities at Castle.”

Those opportunities include Commercial Building Supplies (CBS), the group’s division that caters specifically to commercial members. The latest dealer to fit that category is located in Alberta’s capital city. Edmonton Roof Truss includes a truss manufacturing facility and a wide range of engineered wood products. Owners Don Clement and Nicole Caney-Clement bought an existing truss facility that had been established over 40 years ago.

Moving farther west, Island Home & Garden in Gabriola, B.C., is returning to the group after stints with other banners. The business was founded just under a decade ago by Nick and Robin Hock. The Hocks have a second location in the pipeline in Cumberland, B.C., which they expect to open in the fall.

Most recently, Castle signed Maada’oozhgamig Castle Building Centre in Nipigon, Ont., a First Nation-owned home improvement dealer. Owners Shawn Sobush and The Grossi Group purchased an existing retail store and switched it to Castle.

There’s also a brand-new store in Woodstock, Ont.—although the business joined Castle (then known as BOLD) in 1964. Husband-and-wife owners Jamie Adams and Tasha Birtch (shown here) held a grand opening for Adams Building Supply earlier this month. The 10,000-square-foot store represents a renaming and a new location for Adams’ and Birtch’s Allen Building Centre, which has been operating for 60 years. The new location features a four-acre lumberyard and a double-drive-through covered pickup area for contractors. The owners have a sister store in nearby Shakespeare, Ont.

“We are well positioned for both the growth of new members to Castle and the incredible organic growth of our current base,” Jenkins says. “Business is good at Castle!”

What are the top banners in Canada? Find out in new Market Share Report

Did you know that three retail groups, Home Hardware, RONA, and Canadian Tire, all share about the same volume of sales in British Columbia? But another retailer has almost twice as much of the market in that province than each of these three.

Across the country in Nova Scotia, Home Hardware is the market leader, owning almost one-third of the market for retail home improvement sales in that province. Kent is firmly in second place.

These are just some of the valuable facts you’ll find in the latest edition of the Hardlines 2023 Market Share Report, which is available now—and exclusive to Hardlines. This report details total sales by store format and individual banner in every province and territory. The store counts, sales volumes, and market shares of every key banner are listed by province and territory.

The Hardlines 2023 Market Share Report identifies each national retail banner, including Home Hardware, RONA, Home Depot, and Ace Hardware, plus the buying groups like AD Canada, Castle, TIMBER MART, and Sexton Group.

But this important research also measures the sales and market shares of the regional players, such as Canac in Quebec, Windsor Plywood in British Columbia, McMunn & Yates in Manitoba, and Fries Tallman Lumber in Saskatchewan.

The Hardlines 2023 Market Share Report features 80 slides in handy PowerPoint format. As a Premium Member-Subscriber, you save more than 20 percent on your order. And save more than 30 percent when you buy the Market Share Report bundled with its companion research, the Hardlines Retail Report. (Click here to order your Reports today!)

RONA inc. is continuing with its plan to convert its Lowe’s stores to the RONA+ banner. Another nine locations were announced most recently, marking the first conversions outside of Ontario.

The stores are in British Columbia (Vancouver Grandview, Nanaimo, Victoria Langford, Victoria Tillicum, Abbotsford), Saskatchewan (Regina South, Saskatoon West), and Manitoba (Winnipeg East, Winnipeg South). The stores will remain open during the conversions.

The first 25 conversions of Lowe’s stores to the new banner took place starting in late July in Ontario, where new RONA+ banners went up at Lowe’s stores in southern and southwestern Ontario. The first 10 Lowe’s stores to be converted are located in Ancaster, Brantford, Cambridge, Hamilton, Kitchener, Niagara Falls (shown here), Sarnia, Waterloo, and the two stores in Windsor. They were soon followed by another round of switches, in Barrie, Belleville, East Gwillimbury, Kanata, Kingston, London North West, London South West, Maple, Nepean, Orleans, Oshawa, Ottawa Gloucester, Pickering, Sudbury, and Whitby.

RONA inc. developed its RONA+ banner after Lowe’s Cos. sold its Canadian banners to Sycamore Partners, a New York City-based private equity firm, earlier this year. Among the stores acquired were 61 Lowe’s stores in this country. Those will eventually be converted to RONA+, except for at least one that has been closed instead, in Vaughan, Ont. RONA has now identified the conversions of just over half its Lowe’s outlets.

As the Lowe’s stores are converted, Lowe’s products will continue to be available—and gift cards and warranties will continue to be honoured—in the new-look RONA+ stores.

In addition to the Vaughan location, two RONA big box stores in Ontario were slated for closure. One is located in Belleville and the other in London. The retail and pro activities at those stores will be consolidated into other nearby RONA stores in each of those markets.

(Get the latest on RONA’s plans for its new format stores, plus its relationship with its affiliate dealers, at the 27th annual Hardlines Conference, Oct. 17 and 18 in Whistler, B.C., in partnership with the BSIA of B.C. None other than Jean-Sébastien Lamoureaux, SVP, RONA affiliates, wholesale, and public affairs, will be our keynote speaker at this event!)

At W.W. Grainger, Matt Fortin has been promoted to SVP and chief human resources officer. Fortin joined Grainger in 2006 and most recently served as the group VP for merchandising and supplier management. His tenure with the firm also includes time leading its sourcing and commercial operations in China. Prior to joining Grainger, he spent 16 years at General Motors.

DID YOU KNOW…?

… that the Hardlines Conference is just three weeks away? It takes place in Whistler, B.C., on Oct. 17 and 18. Delegates include the leading dealers on the west coast, representatives from Taiga, Johns Manville, RONA, Home Hardware, Home Depot, Castle, Sexton Group, Federated Co-op, and more. As a Hardlines Premium Member-Subscriber, you get a 20 percent discount on your conference registration. Got a question? Contact our amazing Marketing & Events Manager, Michelle Porter!

RETAILER NEWS

TIMBER MART’s charitable foundation, Timberkids, raised a record-breaking $38,000 during its annual Quebec golf tournament and silent auction on Aug. 29 at the Thetford Golf Club in Thetford Mines, Que. Over 110 guests attended the 12th annual edition of the event from across the province, including nearly 40 TIMBER MART dealers and some 25 vendors. The event is one of three held each summer, in addition to golf tournaments in Ontario and Atlantic Canada.

IKEA Canada has opened a distribution centre in Beauharnois, Que., weighing in at just over one million square feet. It replaces a 925,696-square-foot facility in Brossard, on the south shore of Montreal. The dual-purpose warehouse both ships to stores and fulfils e-commerce orders directly to customers. Automation features include a storage and retrieval system and an interface that detects the right size of box for an order.

Home Hardware last week named its Walter J. Hachborn Store of the Year. The award went to Wilson’s Home Hardware Building Centre in Barrington Passage, N.S., and was presented during Home Hardware’s Homecoming buying show in Toronto. The store’s dealer-owner, Mike Wilson, represents the fourth generation of his family to run the business.

Giant Tiger Stores held the grand opening of a new store last week in Sault Ste. Marie, Ont. The 20,000-square-foot location, on the west side of the city, is the discount mass merchant retailer’s second location in the Soo.

Wolseley Canada will hold the grand opening of its newest location in Toronto on Sept. 26. The store, located on Bermondsey Rd. in East York, is a 29,000-square-foot facility offering a full range of Wolseley Canada’s plumbing and HVAC products. Wolseley Canada now has more than 220 locations across the country.

Sales of existing Canadian homes were down 4.1 percent in August compared to the previous month. National sales were dragged down by declines in markets including Greater Vancouver, Montreal, and Hamilton-Burlington. The actual (not seasonally adjusted) number of transactions came in 5.3 percent above August 2022. (Canadian Real Estate Assoc.)

The annualized pace of housing starts in Canada fell by 1.0 percent in August to 252,787 units, from 255,232 units in July. The rate of urban starts declined by the same percentage, with 233,075 units recorded in August. (CMHC)

Investment in building construction declined 2.6 percent to $17.5 billion in July. Residential construction spending was down 4.1 percent to $11.5 billion. Single-family home construction investment declined 5.5 percent to $5.8 billion, the lowest level since August 2020, with Ontario accounting for most of the fall. (StatCan)

Canada’s Big Six banks have indicated their openness to the possibility of refinancing loans made to small businesses under the Canada Emergency Business Account. Under a revised timeline issued by the federal government, loans repaid by Jan. 18 of next year will be partially forgiven in the amount of either $10,000 or $20,000. Ottawa announced last week that beyond that, businesses can still qualify for partial forgiveness if they reach a refinancing deal with their banks by March 28, 2024.

“We’re very pleased with the turnout at this year’s tournament and humbled by the generosity of our dealer and vendor communities. Timberkids exists to support the health and wellbeing of Canadian children and the funds that were raised at this year’s tournament will go towards improving many children’s lives in the communities where our dealers do business.”
—Jon Irwin, TIMBER MART’s vice-president of member services, on the success of the buying group’s recent charity golf tournaments on behalf of children’s initiatives.

2023 Hardlines Conference: work and fun combined, but we’re filling up fast

Join us for two days of information, trends, and networking at the 2023 Hardlines Conference on Oct. 17 and 18. This year, we take the show on the road to the Fairmont Chateau Whistler, located at the base of Blackcomb Mountain in Whistler, B.C.

But: we are already signing up a great group of delegates, which means that hotel rooms for the Hardlines Conference are 80 percent booked up. The cut-off date for our special room rates starting at $309 is Sept. 21. (Please book your room directly by phone at 1-800-441-1414 or online here. Cite the Hardlines Conference or use group code 1023HARD_001 for the special rate.)

In Whistler, you’ll have access to some great networking events. On Oct. 16, the evening before the conference starts officially, delegates can gather for the RONA Pub Night at Merlin’s Bar and Grill. It’s guaranteed to be a great way to catch up with colleagues and customers in a relaxed setting. Then, on Oct. 17, at the end of day one of the conference, Home Hardware will host its annual cocktail reception, which precedes the gala dinner to honour the winners of this year’s Outstanding Retailer Awards. All the major banners are signed up for gala dinner, so don’t miss out!

Our host hotel, the Fairmont Chateau Whistler, is a world-class resort. It’s famous for its luxurious spa and health club, which offers full access to indoor and outdoor pools, hot tubs, eucalyptus steam rooms, and fitness facilities.

We want you to make the most out of your time at the conference, and there are endless autumn activities in Whistler. Cozy up by an evening bonfire, breathe in the crisp alpine air on a scenic hike, or indulge in locally inspired seasonal cuisine. There’s yoga, historic walks, wine tours, and tons of nature to enjoy. You can get a full list of the many activities available—besides the Hardlines Conference—by clicking here.

The 27th annual Hardlines Conference (oh yeah, we’ve been doing this for a long time!) takes place Oct. 17 and 18 in Whistler, B.C. Take advantage of a 20 percent discount on your conference registration!

New product trends at Home Hardware’s latest dealer show, again in Toronto

Home Hardware Stores Ltd. held its dealer market in Toronto last week, for the second year in a row. This year’s market, called Homecoming, again drew dealers from across the country to see new products, merchandising ideas, and services.

On an exclusive tour of the show floor before the market opened, led by Home Hardware’s assistant manager of public relations, Alysha Kearney (shown here, centre), Hardlines got a preview of the products and trends being presented.

For decades, the show was held right in Home Hardware’s distribution centre and was part of the fabric of the town of St. Jacobs, Ont., where Home Hardware has its head office facilities. The Kitchener-Waterloo region would fill up with thousands of people: dealers, their families and staff, as well as vendors, twice a year for decades.

During Covid, Home Hardware moved to a virtual show, a typical strategy for much of the world during that time. Then, last year, the retailer returned to an in-person event, relocated it to the Enercare Centre at Exhibition Place in Toronto, and reduced the frequency to once a year.

The move was due to a range of factors, including the need for more space and the heightened level of technological sophistication of the DC’s updated order-picking system, which would be disrupted by mounting the event on the warehouse floor.

As in the past, one of the first categories dealers face walking into the main hall of the Enercare Centre is the outdoor living products. Home Hardware is investing big in new models and styles of patio furniture and outdoor living amenities. That includes the company’s “Basics” program of affordable products, which includes patio chairs and tables. Outdoor power equipment is relying on more battery power—including a riding lawn mower this year—and quieter performance.

The market serves as a platform for Home’s launch of its paint brand’s colour of the year and this event was no exception. BeautiTone’s “Illumina” has been recognized this year. It’s “a soft yellow with notes of red, a nostalgic pop of cheerful colour,” according to a release. Even the name, which is derived from the Latin word for “illuminate,” aims to address the colour’s ability to lighten up a space.

(We’ll have more to report on the Home Hardware Homecoming market in next week’s eye-popping edition of Hardlines Weekly Report.—Editor)

Home Depot’s ESG report leads way as retailers double down on ethical concerns

For many businesses, maximizing returns for shareholders is no longer enough. Corporate social responsibility, or environmental, social, and governance (ESG), reports are increasingly claiming prominence alongside quarterly results. Younger consumers in particular are interested in investing in—and working for—brands that prioritize the ethical impact of their business.

A study by market research firm First Insight found that Gen Z consumers (those born since the mid-’90s) take ecological factors seriously into account, to the point that almost three-quarters will choose to pay more for a sustainably produced product. Meanwhile, Nielsen has found that three-quarters of millennials will adjust their buying habits in relation to ecological concerns.

It’s not surprising, then, that many companies are complementing their financial updates with ESG reports. Take Home Depot. This summer, the retailer published its annual ESG report outlining progress on various environmental and socially aware pillars, ranging from production and supply to packaging and sourcing. In 2022, the company says, it reduced its carbon emissions by some 92,000 metric tons—equivalent to taking more than 20,000 cars off the road for a year.

In the “goals in progress” section, the report stated that all private-brand fibre packaging for new products will be compostable, recyclable, or contain recycled content by 2027. By the end of fiscal 2028, more than 85 percent of U.S. and Canadian sales in outdoor power equipment will run on rechargeable battery technology instead of gas.

A spokesperson for Home Depot Canada told Hardlines that “sustainability is a driving force behind the success of our business.”

RONA inc. and predecessor Lowe’s Canada, for their part, have made battery recycling efforts an anchor of their commitment to greening the economy. Home Hardware introduced the first two electric vehicles to its truck fleet in the spring. Manufacturers like Stanley Black & Decker are providing updates on their corporate responsibility efforts too.

Another front where companies are seeking to act responsibly is Indigenous relations. IKEA Canada has been particularly active in this area. It launched its first Indigenous-designed showroom in Edmonton in 2020; another opened in Calgary early this year. Last year, all IKEA Canada stores hosted art installations created by The Canadian Library in honour of missing and murdered Indigenous women and children.

Hudson’s Bay Co. announced last fall that it would direct gross profits from its iconic wool point blankets to a new fund for Indigenous initiatives.

As new generations of consumers come of age, ethical, environmental, and diversity concerns will only grow in prominence. Savvy retailers will need to be prepared to market to a conscientious clientele.

RONA inc. is celebrating the third anniversary of its VIPpro program this month. As loyalty programs and rewards platforms become a hot strategic tool for retailers, RONA has held on to, and invested in, this program that is aimed at its contractor and builder customers.

Through Sept. 20, RONA is hosting a series of events at most of its stores, which include promotional events, contests, and workshops.

Launched on September 10, 2020, at the time by Lowe’s Canada, the program was unique to the Canadian operations and was implemented in all Lowe’s, RONA, and Réno-Dépôt corporate stores. The VIPpro app was developed by Toronto-based Kinetic Commerce. The program provides discounts and bulk buying for contractors, as well as business supports and digital interaction with RONA stores, all through a dedicated app. Users can view their purchasing data, special offers, and profile information on their mobile device, in addition to their complete purchasing history.

At the stores, contractors have dedicated entrances and parking, early opening hours, and priority curbside pickup available from 7 a.m. to 9 a.m.

Services to contractors through VIPpro are constantly being enhanced with new initiatives. For example, a VIPpro application and an in-store IT platform generating instant quotes for appliances have been developed.

The Canadian Home Products Trade Association has announced its 2023 Industry Hall of Fame inductees. They are Peter Stojanov, retired owner and president of Onward Sales & Marketing, Burlington, Ont.; Al Tulloch, retired owner and president of McDonald Sales, Milton, Ont.; Harry Jacobs, vice-president of sales and marketing, Ideal Security, LaSalle, Que; and Richard Lépine, retired partner and vice-president, LM2 Marketing, Laval, Que. Stojanov and Tulloch will be inducted at a CHPTA reception at Royal Woodbine Golf Club in Toronto on Nov. 2. Jacobs and Lépine will be inducted at an event at the DOCK619 event facility in Longueuil, Que., on Nov. 23.

DID YOU KNOW…?

… that the Hardlines Conference is just weeks away in Whistler, B.C.? Delegates already registered include some of the leading dealers on the west coast, plus representatives from major companies including Taiga, Peavey, Johns Manville, RONA, Home Hardware, Home Depot, BMR, GSW, Castle, Orgill, Sexton Group, Federated Co-op, and more. The conference takes place Oct. 17 and 18. Take advantage of a 20 percent discount on your conference registration!

RETAILER NEWS

Canadian Tire Corp. is introducing new retail destinations exclusively serving customers in the industrial sector. Called Mark’s WorkPro-L’Équipeur Pro, they will sell workwear for the pro market. Four stores are planned for this year: the first location opened last week in Edmonton, with further openings slated for Toronto, Montreal, and St. Catharines, Ont.

RONA inc. has announced it will convert nine more Lowe’s stores to the RONA+ banner. The stores are in British Columbia (Vancouver Grandview, Nanaimo, Victoria Langford, Victoria Tillicum, Abbotsford), Saskatchewan (Regina South, Saskatoon West), and Manitoba (Winnipeg East, Winnipeg South). The stores will remain open during the conversions.

Lee Valley Tools has completed another acquisition of one of its supplier manufacturers. This time, it has added Leigh Tools in Port Coquitlam, B.C., to its roster of specialty tool makers that have been brought in-house. This deal follows two other acquisitions we announced earlier this month: Hock Tools and The Beall Tool Co.

Clarington Home Hardware Building Centre recently celebrated its grand opening following a series of updates and renovations. The store, located in Bowmanville, Ont., east of Toronto, welcomed the local community with a ribbon cutting, special vendors, an ice cream truck, and giveaways.

Tractor Supply Co., the U.S., the farm and ranch hardware retailer (it calls itself a “rural lifestyle retailer”) held its annual week-long “Pet Appreciation Days” last week. It featured special deals on pet food, treats, toys and accessories, a nationwide adoption event, and a pet contest. On Saturday, the retailer hosted a central adoption event which welcomed local shelters and rescue groups. Customers who adopted a pet received a special gift bag including samples and coupons.

Montreal-based discount chain Dollarama reported second-quarter sales of $1.46 billion, up from $1.22 billion a year earlier. Same-store sales for the quarter surged by 15.5 percent. CEO Neil Rossy said the company expects the strong demand from inflation-weary shoppers “to persist through the second half of the year in the current macro-economic context.”

Jeld-Wen Holding has been named to Newsweek’s inaugural list of the World’s Most Trustworthy Companies 2023, making it the only window and door manufacturer on the list. The World’s Most Trustworthy Companies were identified through an independent survey based on a sample of more than 70,000 participants in 23 industries from 21 countries.

West Fraser Timber Co. has entered into an agreement to acquire Spray Lake Sawmills in Cochrane, Alta. The $140 million deal is expected to close later this year following completion of necessary regulatory reviews. Spray Lake Sawmills produces treated wood products, dimensional lumber, and a variety of wood residuals and bi-products. It has an annual lumber capacity of 155 million board feet.

Innovair Solutions has invested in Industrie Orkan inc., a manufacturer of air quality products based in Saint-Hubert, Que. The company manufactures Epurair brand products, which are sold in Canada and the U.S. Industrie Orkan will continue to operate under the leadership of brothers Daniel and Simon Labrecque. Headquartered in L’Islet, Que., Innovair Solutions is owned by the Beaulieu family.

The latest edition of Hardlines Dealer News is now available. In this issue, we look at what makes buyers tick, what the arrival of Scene+ at Home Hardware means to dealers, and the challenge of combatting theft. Hardlines Dealer News is monthly and it’s free: click here to subscribe now!

“Illumina is an inspiring choice for 2024 as Canadians embrace a sense of careful optimism for the future. With Illumina, Canadians can create a space that feels both engaging and relaxing, a combination created in part by introducing a hint of red into the yellow.”
—Kristen Gear, lead design and colour specialist for Home Hardware’s BeautiTone Paint and Home Products division, on the launch of the retailer’s colour of the year.