WORLD HEADQUARTERS, Toronto — Canada’s fastest growing province for home improvement sales last year was also its smallest. Prince Edward Island led all provinces in growth, however its small size—representing less than 1% of the overall market in Canada—was not enough to lift sales overall for the country past 4%.

And 2019 is expected to have even more moderate growth, with only slight gains in 2020 and 2021.

According to the 2019-2020 Hardlines Retail Report, building centres proved to be the best format for weathering 2018’s variable business conditions, with growth of almost 6%, driven by a solid renovation market and by healthy increases in key commodities such as lumber, plywood and insulation.

These are just some of the findings in this year’s Hardlines Retail Report, which has just been released. The report analyzes how much the industry grew last year and identifies the provinces performing best. The report also tracks the growth of the big box format in Canada, and how it compares to other key formats, namely hardware stores, building centres and Canadian Tire stores.

Designed to help retailers and suppliers alike to develop their business plans for the year ahead, this year’s report provides valuable forecasts for the industry for 2019 and 2020, including analysis of the strategies and performance of home improvement retailing’s top players—Home Depot Canada, Lowe’s Canada, Home Hardware Stores Limited and Canadian Tire Retail.

The 2019-2020 Hardlines Retail Report fills 171 PowerPoint slides and is packed with dozens of charts, graphs and photographs. It’s available now at a special rate for Hardlines Subscribers (yes, that’s you!—Editor).

(For more information about the 2019-2020 Hardlines Retail Report, please click here.)

CHICAGO — Thousands of hardware and home improvement dealers from around the world descended upon the show floor at Chicago’s McCormick Place recently for Orgill’s 2019 Fall Dealer Market. The Memphis-based wholesaler’s event offered new products, special pricing and networking opportunities across 800,000 square feet of show floor.

As Orgill continues to expand its footprint in the Canadian market, dealers from north of the border continue to show up in large numbers, as well.

The debut of new program, Hot Buys, allowed customers on the show floor to receive notifications on their mobile devices about limited-quantity deals on products across all categories throughout the day during the show.

New merchandising and inventory ideas were featured in Four Seasons Hardware, a 12,000-square-foot model store that demonstrated space-saving techniques for dealers, including a single-queue checkout that drives impulse sales.

“Our Dealer Markets offer customers buying opportunities that they won’t find anywhere else,” says Phillip Walker, Orgill’s senior vice president of merchandising services. “We want to give them the chance to find products at phenomenal prices, access to special areas that will show them what items they could add to their offerings, and ideas for how these items could be displayed.”

The next Orgill Dealer Market will be held at the Orange County Convention Center in Orlando from February 27 to 29, 2020.

MOORESVILLE, N.C. — Lowe’s Cos. posted net earnings of $1.7 billion for Q2 2019, up from $1.5 billion in the second quarter of 2018. Sales for the second quarter increased 0.5% to $21.0 billion from $20.9 billion, while comparable sales increased 2.3%. Comparable sales for the U.S. home improvement business increased 3.2%.

“We capitalized on spring demand, strong holiday event execution and growth in paint and our pro business to deliver strong second quarter results,” said Lowe’s President and CEO Marvin Ellison.

In a call with analysts, CEO Marvin Ellison reported Canada saw negative same-store sales for the quarter, due in large part to the integration of the RONA banner. That resulted in the closing of 27 retail locations across the country, as well as two regional distribution centres. Ellison explained that the company had reviewed and adjusted its RONA integration strategy, temporarily slowing growth.

“But once again, we are sacrificing short-term growth to position ourselves for long-term success,” he added, promising “additional updates on future calls.”

TORONTO — A new program from the federal government will enable consumers to garner significant savings on energy-saving products, while giving retailers an edge to sell a range of related products.

Last week, the Minister of Environment and Climate Change, Catherine McKenna, announced the launch of the Energy Savings Rebate program. Through the program, a total of $200 million over two years will be provided to Ontario retailers to offer up to 25% off the purchase price of specific energy-saving products. They include Energy Star-certified washers and dryers, smart thermostats, room air conditioners, dehumidifiers and refrigerators.

The program offers up to 25% off the purchase price of eligible products. Through this initiative, Ontario consumers who purchase new energy-efficient appliances—like washers, dryers, dishwashers and refrigerators—can save up to $500 per item and up to $1,000 on water heaters and heat pumps.

Retailers include Lowe’s Canada, Canadian Tire, Best Buy Canada, Tepperman’s and scores of others, big and small, across the province.

Lowe’s Canada, especially, has gotten behind the program. In fact, McKenna (shown above, far right) made the announcement at a press conference at the RONA North York store in Toronto. (Also on hand: Carol Crystal, merchandising VP at Lowe’s Canada; Ali Ehsassi, Member of Parliament for Willowdale; and Bill Goguen, Regional VP of operations at Lowe’s Canada.)

About $200 million is available to retailers through the Energy Savings Rebate program. The maximum level of funding available per eligible applicant is $2.5 million for retailers with locations in one to four municipalities and $25 million for retailers with locations in more than five municipalities.

The application process for retailers with locations in five or more municipalities is already closed. But retailers with locations in one to four municipalities can apply until March 31, 2020, or until funding is exhausted. Results will be communicated as applications are assessed.

Home Hardware Stores Limited has named Greg McKenna as the new merchandise manager, general merchandise. McKenna has nearly 10 years of experience in category management and strategic sourcing. Previously, Greg held positions, including category manager and national merchandising specialist in wholesale, at Sobeys Inc.

Horacio (Haio) Barbeito has been appointed president and CEO Walmart Canada, effective in October, pending work authorization. Barbeito joined Walmart nearly 25 years ago and developed his career through leadership roles in Argentina, the U.S., Puerto Rico and Chile. He replaces current CEO Lee Tappenden, who will leave the company at the end of the year.

Michelle Gillingham has joined Rheem in the role of retail sales manager, effective immediately. She joins following almost two decades working with Positec and Bosch.

...that you can read our sister publication, Hardlines Home Improvement Quarterly, online? This magazine gets mailed to 11,000 dealers and managers across the country four times a year. But you can access back issues of HHIQ anytime on our website—and they go all the way back to 2013. Check them out here!

BOUCHERVILLE, Que. — Dealer-owners Al Tsuchiya and Michael Trentalance recently celebrated the grand opening of their new Ace Hardware store in Walnut Grove, B.C. With 5,000 square feet of retail sales area and approximately 12,000 products in store and thousands more online, it’s the very first hardware store to open in the town.

MOORESVILLE, N.C. — Lowe’s Cos., which signed on in January as the National Football League’s home improvement retail sponsor, is launching more than 10,000 NFL-branded products.

FERNIE, B.C. — The third biennial Bill Adamack Memorial Golf Tournament raised $8,000 for local scholarships and youth sports last month. The event is sponsored by Fernie Home Hardware Building Centre and named for long-time employee Will Adamack, who died unexpectedly in 2012 at the age of 61.

MAGNETAWAN, Ont. — The Home Hardware Building Centre in this Parry Sound District community marked its 50th anniversary last month. A celebratory barbecue was held with cake, balloons and giveaways. The founder of the store, Jack Mowbray, had already owned a Home Hardware store in Stoney Creek, Ont., for several years when he decided to branch out into Magnetawan in 1969. Current owners Brenda Fraser and her husband Alan bought the store in 2002.

KINGSTON, Ont. — A Giant Tiger store held its grand opening in Kingston, Ont., on August 24. The brand new 18,130-square-foot Giant Tiger location is at 656 Gardiners Road. The Ottawa-based discount department store chain is known for stocking affordable home and family fashions—including a growing assortment of hardlines—plus groceries and everyday necessities at low prices.

BENTONVILLE, Ark. — Walmart reported Q2 revenues of $130.4 billion, coming out on top of an estimated $130.08 billion in a Bloomberg survey. Adjusted earnings per share of $1.27 similarly bested the forecast of $1.22 per share. Same-store sales increased by 2.8%, compared to an expected 2.5% increase. Online sales for the quarter soared by 37%, with the strength of the grocery category a strong contributor. Sam’s Club online sales rose by 35%.

SUPPLIER NEWS

CHATEAUGUAY, Que. — Richard Davidson has acquired Technoform Industries Ltd. from Pierre Guilbault. The founder of the manufacturing company will remain on board as a consultant before retiring from his four-decade career in the renovation industry. Technoform makes acrylic baths, showers, shower and tub-surrounds and laundry tubs.

VANCOUVER — Great Pacific Capital Corp., which is controlled by shareholder Jim Pattison, has offered $981.7 million in cash to take Canfor Corp. private. The bid works out to $16 for each share Great Pacific does not already own, about 49% of Canfor.

AUSTIN, Texas. — Wilsonart Engineered Surfaces has signed an agreement to acquire Technistone, a Czech manufacturer of quartz stone. Based just outside of Prague in Hradec Králové, Czech Republic, the company exports quartz slabs to more than 75 countries on five continents.

MONTREAL — Intertape Polymer said its Q2 revenues increased by 18.7% to $295.6 million, largely due to its Polyair, Maiweave and Airtrax acquisitions. Net earnings decreased by $8.5 million to $6.6 million. The decline was attributed to higher expenses, factory closures, restructuring and other related charges, driven mainly by interest and income tax expenses.

ECONOMIC CONDITIONS

Sales of existing Canadian homes rose 3.5% in July, making for the fifth monthly increase in a row. The increase puts home sales about 15% above the six-year low reached in February 2019 but still more than 10% below the highs reached in 2016 and 2017. Activity advanced in about 60% of all local markets. Actual (not seasonally adjusted) sales activity stood 12.6% above July 2018, with sales up in most of Canada’s largest markets. (Canadian Real Estate Association)

Housing starts in the U.S. fell by 4% in July to a seasonally adjusted annual rate of 1.191 million units. This third consecutive monthly decline was largely due to slower activity in multi-family dwelling construction. At the same time, building permits soared by 8.4% to a seven-month high of 1.336 million units, while housing completions rose 7.2% to 1.25 million units. (U.S. Commerce Department)

The monthly rate (seasonally adjusted) of housing starts in Canada was 222,013 units in July, down 9.6% from 245,455 units in June. The seasonally adjusted annual rate of urban starts decreased by 10.4% in July to 209,122 units. Multiple urban starts decreased by 12% to 162,722 units in July while single-detached urban starts decreased by 4.6% to 46,400 units. (Canada Mortgage and Housing Corp.)

NOTED

A cool rock n’ roll bar near Chicago’s McCormick Place convention centre was the scene for a night of music, camaraderie and a spirited rendition of “O Canada” last month. Hardlines once again hosted a Canada Night reception for dealers attending the Orgill Market. The event drew more than 200 people, filling two floors of Reggies, a truly funky Chicago music landmark. Attendees included independent dealers from every part of the country, as well as members of Orgill’s management and dealer rep teams, and, of course, our loyal sponsors!

OVERHEARD

“The eCommerce Symposium is a unique gathering of some of the top independent retailers in our industry working together to share insights, solutions, and tackle common challenges as they work to build or improve their e-commerce solutions.”
—Boyden Moore, president of Orgill, on the eCommerce Symposium, held each year prior to the wholesaler’s dealer markets to provide customers with the latest developments in e-commerce.