BOUCHERVILLE, Que. — Lowe’s Canada has introduced a program for professionals and contractors that is supported by a new app. The program, which is unique to Lowe’s Canada, will apply to all its Lowe’s, RONA and Reno-Depot corporate stores.

The new program is designed to offer Lowe’s Canada’s pro customers an improved and integrated purchasing experience. Contractors will have access to the same discounts and advantages throughout the Lowe’s Canada corporate store network, plus a range of features on a new VIPpro mobile application.

“One of the strengths of the Lowe’s Canada network is that we operate over 235 corporate stores of various formats under three distinct and complementary banners throughout the country,” said Tony Cioffi, senior vice-president, stores. “With the VIPpro program, our pro customers can now take advantage of our wide network seamlessly: depending on the nature of their projects, they can shop at the store that best suits their needs while having access to the same benefits, and using a single Lowe’s Canada VIPpro account.”

In addition to a five percent discount on all purchases—and 10 percent off paint—the VIPpro program provides pro customers with services including dedicated customer service, bulk discounts and price-match guarantees.

At the stores, contractors will find dedicated entrances and parking, early opening hours and priority curbside pickup available from 7 a.m. to 9 a.m.
 
The VIPpro app was developed by Toronto-based Kinetic Commerce. Users can view their purchasing data, special offers and profile information on their mobile device, in addition to their complete purchasing history from Lowe’s, RONA and Reno-Depot corporate stores.

This first version of the app will be updated over the coming months to provide added features to VIPpro members. Later this fall, the app will start presenting customized offers based on each customer’s preferences and purchasing history. The introduction of a VIPpro web portal is also in the works for 2020. This new feature will enable VIPpro members to access the Lowe’s, RONA and Reno-Depot websites.

MEMPHIS — Orgill CEO Boyden Moore spoke to dealers via Zoom last month to give an update on the hardware wholesaler’s business, while its e-Volution online buying event was in progress. The company’s first-ever such event, which brought together nearly 10,000 retailers in a completely virtual environment, ended on September 4.

“We specifically did not want to call this a virtual dealer market,” Moore said, explaining that it was “a stretch to think that we might somehow pull off what happens at a dealer market in any kind of virtual way.”

Moore outlined how operations are gradually returning to normal: sales continue to ride a pandemic high, and the company is readying itself for the economy’s recovery, which it anticipates some time after Q2 of next year. Hardware and farm stores were identified as the biggest segments for growth.

Despite 79 confirmed COVID-19 cases among Orgill employees, no closures of distribution centres had been necessary, though the company has suspended store conversions. Some 85 percent of the office staff in Memphis had transitioned to remote work, Moore added. “We appreciated our customers working with us when we moved our order cut-off back one day,” he noted.

With supply chains squeezed during the outbreak, Orgill had been forced to take measures, such as introducing maximum line counts. At its DCs in Inwood, Va., and Sikeston, Mo., Orgill temporarily suspended orders from customers it serves as a secondary wholesaler.

“While we value all our customers, we knew we had to prioritize customers with the strongest commitment to us,” he said. By late August, however, nearly all line-count restrictions had been lifted, while orders from secondary customers were being fulfilled at increasing capacity.

Moore also announced that the opening of Orgill’s new Rome, N.Y., distribution centre is now slated to take place by next summer, a year ahead of schedule. Meanwhile, the wholesaler is speeding up plans to expand its footprint in the western U.S. as well.

BOLTON, Ont. — Since taking the helm of TORBSA, Paul Williams has set his sights on some key initiatives to ensure the prosperity of the buying group. One is to build dealer ranks. Williams believes strongly that the group’s lean, no-frills operating model is ideally suited to commercial yards that wish to increase their purchasing power without added costs from marketing or other supports that bring value to dealers with a more DIY-based customer.

But he is also committed to building relations with the vendor community. He sees his role as focusing on managing relationships with vendors and ensuring purchasing plateaus are being met by dealers to satisfy the agreements of those relationships.

TORBSA is a relatively small group compared to bigger cousins like Sexton Group or ILDC, but Williams says it’s not just about sheer volume. It’s about having the right dealers in the group to support vendor programs.

He also believes the group offers value to vendors, despite its size. “The vendor community absolutely respects and values the business with TORBSA. We still represent a fairly substantial volume of business for them.”

Nor does he anticipate any kind of integration with one of those larger groups. “We’re an independent group and we plan to be an independent group moving forward.”

NATIONAL REPORT — The retail home improvement industry’s regional associations are supporting their dealers through an incredibly difficult time during the COVID-19 pandemic. Yet, for the most part, dealers are experiencing record sales, and so are the vendors supplying them.

Reports of product shortages have become common across the country, even finding their way into the news as home improvement retailers keep busy trying to supply a pandemic-induced frenzy for home improvements and renovations.

But dealers, vendors and associations alike are keeping a wary eye on the weeks and months ahead. They are wondering if, and more likely when, this boom will run its course. Looking long-term to a stable set of conditions that will support the industry is the common ground for all the associations, which consist of the ABSDA in Atlantic Canada, AQMAT in Quebec, LBMAO in Ontario, WRLA in the West and BSIABC in British Columbia.

The majority of the associations have come together under one umbrella, the Building Material Council of Canada. Initially, it included all five regional associations, but the Quebec arm dropped out after some internal disputes. Nevertheless, the national organization helps pool concerns that are shared among all the associations. These include hiring, training, shop local campaigns and government-related issues. Currently, the top of that list is the push for the revival of a renovation tax credit.

According to Denis Melanson, president of the ABSDA, a renovation tax credit is simply “a good idea.”

A reno tax credit was instituted in 2009, following the worldwide recession. The program lasted 13 months. The incentive gave hardware and home improvement dealers a significant shot in the arm. Hardlines estimates that overall sales generated by an otherwise sluggish industry in 2009 rose by an additional $500 million.

The BMCC commissioned a report that builds a case for the government to revive the tax credit program. According to a bulletin issued by WRLA President Liz Kovach, the report “highlights the success of the 2009 HRTC implemented by the Conservative government and [concludes] it would be beneficial to consider this once again as we look to the fall and beyond.”

The report was included with a letter sent to the Prime Minister and to the office of the Leader of the Opposition last month.

This initiative would give homeowners a tax credit on the cost of purchases they make on home repairs or renovations. It provides a genuine financial break for consumers, while helping lessen the grey market among contractors and trades who may work for cash to save claiming the income—and saving their customers the sales tax on the job. So a reno tax credit becomes a win all around. Consumers get a tax break, the feds get access to more taxable income from the contractors and dealers benefit from the increased sales this incentive could provide.

At Bona, Pontus Cornelius has been appointed president and CEO effective January 11, 2021. Kerstin Lindell, the flooring care firm’s current president and CEO, will then shift to the role of chairman of the board. Cornelius was most recently president and CEO of Ernströmgruppen AB, a privately owned industrial conglomerate based in Gothenburg, Sweden.

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BOUCHERVILLE, Que. — Lowe’s Canada has announced that major renovations are underway at the RONA store in Wickham, Que., operated by dealer-owner Rosaire Mathieu Inc. The Mathieu family is investing to add nearly 4,000 square feet to the store’s sales floor. The indoor and outdoor layout will also be transformed to provide an open-space shopping environment and maximize the product offering. The store will remain open during the renovations, slated for completion in December, when customers will see an expanded product offering including seasonal items.

MISSISSAUGA, Ont. — Walmart has launched a pilot program in Fayetteville, N.C., offering home delivery of select items in partnership with Flytrex, an end-to-end drone delivery firm. “The drones, which are controlled over the cloud using a smart and easy control dashboard, will help us gain valuable insight into the customer and associate experience—from picking and packing to takeoff and delivery,” Tom Ward, senior VP of customer products, explained in a blog post. Widespread implementation of drone delivery, he added, is still a long-term prospect.

MONTREAL — Dollarama reported that Q2 sales rose to $1.01 billion from $946 million for the comparable period last year, while profits were flat at $142.5 million. Strong seasonal demand for home and backyard items drove sales for the quarter.

SUPPLIER NEWS

MEMPHIS — Orgill’s first e-Volution Online Buying Event, which concluded earlier this month, brought nearly 10,000 retailers together with vendors and service providers in a virtual environment. The event allowed Orgill’s retail customer base to take advantage of promotional buying opportunities, shop for seasonal merchandise and browse through thousands of new products. The company reports that buying activity during the event was higher than at any dealer market in its history.

VICTORIAVILLE, Que. — LM2 Marketing has expanded its sales and marketing representation of SamaN to Quebec. LM2 will service hardware, paint and flooring retailers as well as distributors in the province. LM2 now represents SamaN from Ontario to the Maritimes.

WATERFORD, N.Y. — Momentive Performance Materials has announced the pending sale of its consumer sealants segment to Henkel. The terms of the sale, which includes GE-branded consumer sealants carried by hardware retailers, have not been disclosed.

NORWALK, Conn. — The National Hardware Show will take place virtually October 12 to 15. The roster of keynote speakers at the NRHA All-Industry Conference includes Do it Best president and CEO Dan Starr. During the Virtual Show, attendees will be able to sync up their calendars and allow NHS to help facilitate and direct virtual appointments among top industry buyers, retailers and NHS suppliers and manufacturers.

MONTREAL — Cobra Anchors Co. Ltd., a privately held maker of masonry and hollow wall anchors, announced it has logged a 20 percent sales hike since the beginning of the year. The company has invested $4.5 million over the last eight months toward injection molding machines, robotic assembly and packaging cells for its Canadian facility. Cobra is also working on a redesigned and streamlined website, slated to go live next month, and a new product launch for the winter, the WallDriller Plus anchor.

ECONOMIC INDICATORS

Housing starts in August were at a seasonally adjusted annual rate of 262,396 units, an increase of 6.9 percent from 245,425 units in July. The SAAR of urban starts increased by 7.1 percent in August to 248,154 units. Multiple urban starts increased by 9.1 percent, while single-detached urban starts decreased by one percent. (CMHC)

NOTED

On average, the U.S. sees 35,000 injuries a year from operating a lawn mower. And those accidents account for 90 deaths a year there. People are more likely to die from a lawn mower than they are from combined shark, bear and alligator attacks, which average at one fatality per year, or snake bites, which average at six deaths.

OVERHEARD...

“We are confident that this new program will help us provide our pro customers with a hassle-free purchasing experience and added value, bringing us one step closer to our goal of becoming the number-one destination for home improvement and construction professionals in Canada.”
—Tony Cioffi, senior vice-president, stores at Lowe’s Canada, on the launch of a new program, supported by an app, for Lowe’s contractor customers.