“You have to evolve. If you don’t, Darwin’s theory kicks in and you’ll die out.” That’s the warning from Romain Mercier, a customer engagement and communication expert with 20 years of sales experience, including 10 years in advertisement and marketing technology sales. “What incremental progress do dealers have, to make growth out of online sales?”

A true digital guru, Mercier will share his insights at this year’s Hardlines Conference with a presentation titled, “The Evolution of Digital Commerce.” And he won’t be alone: the 27th annual conference will feature some of the brightest minds in retail today. They’ll share their stories and insights at the conference’s new location in Whistler, B.C., on Oct. 17 and 18.

We are also proud to present David Ian Gray, of DIG360 Consulting Ltd., a highly respected Canadian retail advisory company headquartered in Vancouver. He is also co-founder and co-host of @TheBusinessOfRetail podcast. Gray is a brilliant big-picture thinker and will talk about some of the top issues facing dealers today: retail staff retention and recruitment, the digital divide, and where Canada’s retail is headed.

Two senior retail home improvement executives will also take to the podium this year.

Cody Smith is director of Home and Building Solutions (HABS), the hardware and LBM division of Federated Co-operatives Ltd. As director of the HABS unit, Smith leads a team that provides strategic partnership and services to over 90 Co-op Home Centres across western Canada. These stores collectively represent more than half a billion dollars in retail sales, making FCL one of the retail giants of western Canada.

Jean-Sébastien Lamoureux is RONA inc.’s senior vice-president, RONA affiliates, wholesale, and public affairs. His presence will be very timely, given all the changes taking place at RONA. Lamoureux will provide valuable insights into the direction of the company, the relationship with its affiliate dealers, and the launch of the RONA+ banner, which is replacing the Lowe’s name in Canada.

The Hardlines Conference is being held in partnership with the Building Supply Industry Association of British Columbia, which is marking its 85th anniversary. The BSIA will host a table-top trade show concurrent with the conference to showcase its supplier members’ products and services. (For information on how to participate as an exhibitor, contact BSIA president Thomas Foreman.)

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

RONA closes two more stores as it winds down the Lowe’s banner

With Lowe’s departure from Canada and new ownership for RONA inc., that retailer is carefully evaluating its store inventory at its 61 Lowe’s-bannered locations (many of which have been already switched to a new banner: RONA+, see below).

The takeover of RONA/Lowe’s/Réno-Dépôt by new owners, Sycamore Partners, a New York-based private equity firm, has provided new leadership, and returned the company to privately-held status. But more changes were inevitable, including the likelihood that some Lowe’s and RONA stores would be re-evaluated in certain overlapping markets.

RONA has started that evaluation with Ontario. Some 25 Lowe’s locations in that province have been scheduled to switch. But the Lowe’s in Vaughan, Ont., just north of Toronto, is scheduled to close altogether some time over the next month or so.

Now, Hardlines has learned that two Ontario stores under the RONA banner are slated for the same fate. They are RONA Belleville, at 260 Bell Blvd., and the RONA Home & Garden in London, at 820 Blythwood Rd. Both markets have other RONA-owned stores. The Lowe’s in Belleville will be rebranded RONA+ in the coming weeks, while London has two Lowe’s stores that will likewise get renamed RONA+ in the near future. RONA plans to consolidate its retail and contractor business into those stores.

“To improve our impact on the market and be better aligned with customers’ needs, we conducted an in-depth analysis of our network in the Belleville and London areas, and decided to reduce our store footprint in areas where some locations were in close proximity to one another,” a spokesperson from RONA told Hardlines.

“We will be consolidating our retail and pro activities at selected stores in these areas, where the teams will keep serving local homeowners and professionals with renewed passion and dedication,” RONA told us. Liquidation sales began in Belleville on Aug. 24 and at the London stores Aug. 31.

The company added that it will make every effort to relocate employees at surrounding stores where possible, “and all impacted employees will be treated fairly and receive support from the management and HR teams.”

Celebrating 45 years, Lee Valley is still growing—and still having fun

Since its inception in 1978, Lee Valley Tools remains a family business. The company has 18 specialty hardware, tool, garden, and specialty products stores across Canada. And building on its pre-internet roots as a mail-order catalogue seller, it maintains a considerable online presence as well.

The company’s founders, Leonard Lee and his wife Lorraine, launched Lee Valley out of Leonard’s love of hand tools and woodworking. A civil servant before he launched the company, Lee was a brilliant promoter. He told the audience at a Hardlines Conference many years ago that the famous, and somewhat romantic, company name was something he made up because, well, it sounded cool.

Today, the company is led by the Lees’ son, Robin (pictured), as CEO, and president Jason Tasse, who’s been with Lee Valley for 25 years. (Robin took over as CEO in 2002; Leonard passed away in 2016). Coming through the pandemic, a lot has changed, says Robin. “We’ve all faced challenges coming through Covid and had to make a lot of changes to adapt. But we’ve also had a lot of time to consider what’s changed and how to grow.”

Lee Valley does a lot of its own product development and has its own manufacturing, under the Veritas name, right in Ottawa, where its head offices are located. In fact, the company makes 30 percent of the products it sells.

Robin has seen a lot of smaller hardware and tool manufacturers examine their businesses during the pandemic and decided they didn’t want to invest in the massive changes that technology and post-Covid shopping behaviours have demanded of businesses. “A lot of specialty operations are selling out to larger aggregators or just closing their doors,” Robin says. “So we’ve been busy acquiring some of these companies.”

The two latest acquisitions are Hock Tools and The Beall Tool Co., both family-owned and both long-time suppliers of their product lines to Lee Valley. The production of both these suppliers has been absorbed into the Lee Valley operations, “while protecting and preserving the proprietary products that these company had.”

Robin says two more deals are currently in the works, and adds, “We get offers every day.”

The 45th anniversary has provided a chance to have some fun, such as a line of clothing—fleece sweatshirts that are made in Canada and baseball caps assembled domestically. The company is also marking the anniversary by offering in-store workshops for $45 on subjects such as leatherworking and wood carving.

“The 45th is us practicing for our 50th,” Robin quips.

The Home Depot has launched an online portal to target millennials—generally defined as people born between 1981 and 1996 (currently 27 to 42 years old).

The company, referring to this age group as “the next generation of current and future first-time homeowners,” says its hub will provide “valuable resources including DIY guides, product recommendations, design inspiration, and more.”

However, the retailer is pinpointing one of the realities of the millennial generation, namely that they are not as confident doing repairs and renovations as older customers. A survey conducted by Home Depot revealed that more than eight out of 10 millennials and GenZers are interested in doing renovation, repair, design, and décor projects. However, only about 25 percent of them would feel “very confident” about taking on a home improvement project.

The survey further revealed that home ownership “is one of the most stressful milestones young people face today. Around half of millennials (53 percent) report worries about purchasing their first home, along with starting a family (57 percent) and career advancement (52 percent).”

Recognizing that this generation turns to YouTube for how-to advice, the retailer is offering its own alternative with the new hub. From moving checklists to project guides, and from virtual workshops to design inspiration, the online hub brings aims to deliver needed expertise directly to its customers.

Virtual workshops provide step-by-step guidance on projects like how to paint a room, replace light fixtures, and install a faucet. A catalogue of workshops teaches the fundamentals of caring for different areas of the home with both livestream and on-demand options.

Ray Ferris, CEO and president of West Fraser Timber, will retire on Dec. 31. Current COO Sean McLaren, a 35-year veteran of the company, will take the helm on Jan. 1, 2024. Ferris joined the company more than 25 years ago and was named president and COO in 2018, becoming CEO the following year.

Gabriel Farias has been named VP of OSB manufacturing at LP Building Solutions. He brings 25 years of experience in the manufacturing industry to the role, including time at Armstrong Flooring and Armstrong World Industries. Landon Stephens, LP’s new director of OSB sales and marketing, joined the business in 2015 as an OSB account manager. He was promoted to the role of regional sales manager before serving as senior national OSB sales manager.

DID YOU KNOW...?

… that the latest instalment of the Hardlines podcast series, What’s In Store, is now live? In this episode, we talk to Zaida Fazlic, VP of people, culture, and change management at Taiga Building Products. She shares her thoughts on the importance of delegating, the future of AI, and the value of recognizing employees’ differing skill sets. It’s the perfect chance to get to know Zaida before hearing her speak at this year’s Hardlines Conference in Whistler, B.C., this October! (You are registered, aren’t you?) And sign up now for free and get updates about our latest podcasts in your inbox!

RETAILER NEWS

Canac has begun work on its store in Sorel-Tracy, Que., some 75 kilometres from Montreal. Mayor Patrick Péloquin was in attendance as the symbolic first shovel dug into the ground. “The arrival of this major banner will allow us to enhance our offering in the renovation sector and offer competitive prices to our residents,” he said.

IKEA Canada held the grand opening of its new retail touch point in the Scarborough Town Centre in Scarborough, Ont. The 7,489-square-metre store carries 2,500 products in stock. The small-format store will have digital tools throughout, and a complete range of services including assembly, returns, home delivery, and a dedicated Planning Hub. Larger furniture items will be on display and can be ordered onsite for home delivery or pick up at various locations across the city.

Walmart has reported that its Q2 net income soared by about 33 percent to $7.89 billion, or $2.92 per share, from $5.15 billion ($1.88) a year ago. Total revenues of $161.63 billion beat analyst estimates of $160.27 billion. In Canada, net sales rose by 5.1 percent to $6.1 billion, with comp sales up 4.8 percent. Canadian e-commerce sales grew by four percent. The budget retailer has benefited from increased foot traffic as inflation-pinched shoppers look to stretch their dollars.

Lowe’s released its results for the second quarter that ended Aug. 4. Revenue for the quarter was $24.96 billion, down from $27.48 billion. Net income was $2.67 billion. Lowe’s had previously said it expects comparable store sales to drop by two to four percent this fiscal year, with the company's revenues forecast to be $87 billion, a drop from $89 billion last year. It stuck by that forecast in its Q2 statements.

Ace Hardware, of Oak Brook, Ill., has opened 100 new stores in 2023—and has planned a further 70 by the end of the year. Globally, Ace has opened more than 1,100 stores in the past five years, the company said. There are more than 5,800 locally owned Ace hardware stores around the world. Peavey Industries owns the licence for the Ace banner in Canada, where it supplies more than 100 Ace stores.

Cloverdale Paint has made upgrades to its Surrey, B.C., manufacturing plant and established a distribution facility and warehouse in North Surrey. It’s invested in automated, high-speed paint processing which, says the company, more than doubles its decorative paint production capability. Cloverdale has also moved its finished goods DC and warehouse from Surrey to a new 60,000-square-foot high bay facility with a special area for handling high-performance industrial coatings.

Millwork manufacturer Metrie is planning a new manufacturing facility in Woodbridge, Ont. The mill is set to be fully operational by year-end and houses state-of-the-art technology that will enable Vancouver-based Metrie to improve production of pre-finished moulding and trim, says the company.

Some 500 customers, suppliers, employees, and guests gathered earlier this month at Goodfellow’s Delson, Que., headquarters to celebrate its 125th anniversary.

Cornerstone Building Brands of Cary, N.C., has acquired siding and roofing producer MAC Metal Architectural, of Saint-Hubert, Que. MAC Metal has some 100 employees. “The acquisition of MAC Metal Architectural expands our leading exteriors portfolio with value-added, residential-focused metal siding and roofing products that offer premium aesthetic design and durability solutions for our customers,” said Cornerstone president Rose Lee.

The annualized rate of housing starts fell 10 percent in July to 254,966 units. Despite the monthly drop, the total rate remained 7.4 percent above the five-year average. The rate of urban starts decreased by 11 percent, with 234,857 units recorded in July. The rate of rural starts was estimated at 20,109 units. (CMHC)

Investment in residential construction declined for the fourth straight month, falling 4.5 percent to $12.1 billion in June. Ontario accounted for most of the drop, declining by 5.8 percent to $5.1 billion. Single-family home construction fell 5.7 percent to $6.2 billion, with declines seen in eight provinces. Overall, construction spending fell 3.1 percent to $18.0 billion in June. (StatCan)