MONTAGUE, P.E.I. ― Hurricane Dorian, a Category 2 hurricane, hit Atlantic Canada on Saturday, September 7, taking down power lines and trees across the region—and leaving a trail of destruction in its wake.

In Montague, P.E.I., Jeff Beck was on the phone with an RCMP officer who was standing in front of his family’s business, Beck's Home Furniture and Appliances, when its roof was blown right off.

More than half of the century-old building’s metal roof was lifted up by heavy winds and dropped on the store’s storage facility. Fortunately, no one was hurt, but the damage to the building, as well as the product housed inside, has been significant. 

“The storm wasn’t quite over until the end of Sunday, so we didn’t get in there to check things out until Monday,” says Beck.

The first step was to empty the store’s fourth floor, which was mainly storage. Everything on that floor was ruined, and most of the product on the third floor, as well. The Becks and their staff rushed to lay down tarps on the exposed floor to protect the lower three floors of product as rain continued to come down.

A construction crew was also brought in immediately on the Monday to start work on a new roof, which Beck anticipates will take about two weeks. But by mid-week, a full day of hard rain threatened the rest of the exposed building.

“We had 20-plus staff trying to repel the rain with hundreds of buckets, tarps, sump pumps... we had all of our staff, there were friends, family, there was the construction guys, we were all working at it, but it got to a point that it was impossible to keep up with,” says Beck.

In the midst of the disaster, the community has come together to support the Becks. While staff were bailing water out of the building, friends stopped by with sandwiches and support. And offers for storage space have poured in, which has been huge for the Becks, who have to find a safe, dry place to store 20,000 feet worth of inventory until the water damage can be repaired.

“We have really great staff, they rolled up their sleeves. Our bookkeeper was bailing water—it’s just kind of how Islanders are. We kind of look after each other,” says Beck.

BUTLER, Ill. — Ace Hardware Corp. has completed the acquisition of Handyman Matters, a franchisor of home repair, maintenance and improvement services based in Denver, Colo. Handyman Matters will become Ace Handyman Services and operate as a new stand-alone subsidiary.

Handyman Matters is a franchise organization consisting of locally owned and operated and company-owned locations that offer professional craftspeople trained to handle a homeowner’s to-do list, in addition to larger projects. On-site services to consumers and small businesses include carpentry, plumbing, electrical, drywall, painting, flooring and much more. The franchisor currently has 57 franchisees, who collectively employ about 250 handymen and women in 121 territories across 23 states.

“The introduction of Ace Handyman Services provides a platform from which Ace can further deliver on our helpful promise to consumers while expanding our presence in the growing do-it-for-me segment,” said John Venhuizen, President and CEO of Ace Hardware Corporation. He calls it “part of a compelling evolution in our plan for strategic growth and our retailers’ continued success.”

Andy Bell, founder and CEO of Handyman Matters, will continue to lead the day-to-day business operations for Ace Handyman Services from Denver. Integration and re-branding initiatives are currently under way with a goal to be completed by the first quarter of 2020.

This is not the first time Ace has purchased an outside entity. In 2015, it acquired Jensen Distribution Services, a wholesaler based in Washington State. After that, it assumed a majority stake in e-commerce startup The Grommet in 2017. The website markets and sells new and innovative products created by independent entrepreneurs. Ace is now the majority controlling owner of The Grommet.

CHICAGO ― One of the offerings at the recent Orgill Dealer Market, held in Chicago last month, is a model store right on the show floor. These completely merchandised test stores, a feature of every market, are popular for retailers looking for inventory and merchandising ideas.

The model on display in Chicago was called “Four Seasons Hardware”. It covered just over 12,000 square feet and highlighted a number of categories, including paint. The display featured a Sherwin-Williams ad showcasing merchandising aids. Other core categories were hardware and fasteners, hand and power tools, with price points aimed at DIYers, and outdoor living.

Departments like housewares and household products were presented by a strategic convenience offering. The “store” featured space-saving techniques throughout the impulse-driven layout, including a single-queue checkout flanked by products to help drive impulse sales.

It also offered ideas for a number of space-saving techniques, suggestions for how to expand product offerings out to the retailer’s sidewalk space and how best to use that sidewalk space.

ATLANTA —Home Depot executives laid out the company’s efforts in recent years to boost efficiencies and streamline its logistics, at a recent presentation to investors in the U.S. Under Mark Holifield, EVP, supply chain and product development, the company has been focused on getting that right and being in-stock at the store and thus leveraging the Home Depot’s volume to improve its overall supply chain.

“We invested in logistics infrastructure, built the RDC [regional distribution centre] network, we took control of our inventory management and centralized that and drove good results across those four deliverables,” Holifield said.

He went on to explain that the company then started looking at the supply chain more from the perspective of the customer and where the customer is going. One indicator that came through loud and clear was the increasing demand for deliveries, sourced both online and in stores. “Interconnected retail [is] hugely important to us, both the online business driving customers to our store to close sales, but also the stores driving business online and just the interconnection of those.”

Home Depot built a fleet of direct fulfillment centres, the goal being to get products shipped to customers within two days for 90% of the U.S. population, using parcel freight. Holifield observed that the retailer had accomplished that goal, even as the demand for delivery continues to grow. “And as we got to this period, where we evaluated what to invest in going forward, we realized customers continually are wanting more delivery and wanting delivery faster.”

The ease and rapidity with which customers can order and receive products is having a positive impact on sales. “Every time we take lead time out of the order-to-delivery cycle, we find that increases our conversion rate, online customers buy more frequently.”

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MISSISSAUGA, Ont. — Castle has added another new member, this time in Newfoundland. NRO is located in Roddickton, a shopping hub on the northern peninsula that is also known for its fishing and logging. The owners are Randy and Phyllis Randell, local entrepreneurs who have already operated two businesses in the community for many years. Their newest venture will have a complete line of paint, hardware, plumbing, electrical, tools and seasonal products.

TORONTO — The last two Zellers stores, located in Toronto and Ottawa, will close in January, Hudson’s Bay Co. says. Eligible workers will receive severance packages and where possible, HBC will explore opportunities for them within the company, according to a statement from a company spokesperson. Zellers got its start in 1928 with four Ontario stores and came under HBC’s sole ownership in 1978.

SEATTLE — Amazon and Home Depot have inked leases for a three-storey warehouse right in Seattle. It’s the first of its kind in the U.S., according to the Wall Street Journal. The facility, a common setup in Europe and Asia but rare in North America due to land costs, would allow the companies to reduce delivery times by bringing distribution closer to customers. Currently, at least three multi-storey warehouses are in the works for New York City.

BRAMPTON, Ont. — Hudson’s Bay Co. has reported its Q2 loss came to $984 million, after a loss of $280 million in the same period last year. When one-time items are discounted, HBC said its normalized net loss totalled $171 million, compared to $85 million in Q2 of last year. Revenues were roughly flat at $1.9 billion. Comparable sales overall declined by 0.4%, with a 3.4% drop within the Hudson’s Bay banner, offsetting gains of 0.6% at Saks Fifth Avenue and 3.4% at Saks Off Fifth.

SUPPLIER NEWS

WASHINGTON — The U.S. International Trade Commission failed to justify its 2017 ruling that Canadian softwood lumber hurts U.S. producers, a NAFTA panel has found. At the same time, it found “that the commission’s determination of adverse impact is lawful and supported by substantial evidence” and refused Canadian pleas to exclude specialty and premium products like Western red cedar from U.S. duties.

MALMÖ, Sweden — Bona is celebrating a century in the hardwood floor care and maintenance business. The family-owned company now has a presence in more than 90 countries and a global team of nearly 600 employees. Bona’s founder, Wilhelm Edner, originally owned a small grocery shop in Malmö where among other products, he sold bonvax, an agent which created a polished and protective surface when applied on a wood floor. Sensing the product’s potential, he incorporated Bona AB in 1919.

ECONOMIC CONDITIONS

The seasonally adjusted annual rate of housing starts in Canada was 226,639 units in August, up 1.9% from 222,467 units in July. The SAAR of urban starts increased by 2% in August to 213,663 units. Multiple urban starts decreased by 1.4% to 160,388 units in August while single-detached urban starts increased by 13.6% to 53,275 units. Rural starts were estimated at a SAAR of 12,976 units. (CMHC)

The value of building permits rose 3% to $8.3 billion in July, largely due to increases in multi-family and commercial permits. Gains were reported in five provinces, with more than one-third of the national increase in British Columbia. Quebec reported the largest decrease, down 4% to $1.6 billion, due to lower construction intentions in all components of the non-residential sector. Ontario issued a record high $3.5 billion in permits in July. (StatCan)

NOTED

The Canadian Hardware and Housewares Manufacturers Association will host its 18th Annual Industry Memorial Golf Classic on October 2, beginning at 8 a.m. It will be held at the Blue Springs Golf Club in Acton, Ont. It’s open to the industry: CHHMA members and non-members are welcome. Proceeds from this tournament will help support the Canadian National Autism Foundation.