November 21, 2016 Volume xxii, #44
“Canada: the language of France with the culture of Minnesota.”
—Stephen Colbert (American humourist, actor, and television host, 1964- )
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Lowe’s, Home Depot turn in strong Q3 results on continued U.S. recovery
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BMR adds barbecue boutiques to some of its stores
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Doug Lemieux recognized by WRLA with Industry Achievement Award
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Introducing the newest member of the HARDLINES Team
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PLUS: Lowe’s latest in Toronto, TIMBER MART trader in Atlantic, Kent in New Minas, Bunnings in Australia, Scotts in pot, and more!
Lowe’s, Home Depot turn in strong Q3 results on continued U.S. recovery
MOORESVILLE, N.C. & ATLANTA ― Third-quarter results for the industry’s two largest players showed strong gains as housing continues to recover and consumers keep spending in America. And though results for both companies may vary slightly for their Canadian operations, Home Depot and Lowe’s remain secure in their positions as the number-one and number-two retail players respectively in this country.
Home Depot was first to announce its results last week, turning in sales of $23.15 billion, up 6.1% over the previous-year quarter. Profits climbed 14.1% to $1.98 billion, while same-store sales were up 5.5%. Canada reported positive same-store sales in local currency marking 20 consecutive quarters of positive same-store sales growth. However, the company would not reveal any more details about its performance in Canada.
The company maintains its outlook that sales will rise 6.3% for the year.
Lowe’s sales in the same period increased 9.6% to $15.7 billion from $14.4 billion in the third quarter of 2015, with same-store sales up 2.7%. Profits of $379 million were negatively impacted by the costs related to the wind-down of its business interests in Australia (a failed joint-venture with Woolworths to build the Masters chain of big boxes), the acquisition of RONA in Canada, and costs related to its development of the Orchard Supply home centre business.
For the nine-month period, Lowe’s sales were $49.2 billion, a 7.4% increase over the same period a year ago, and comparable sales increased 3.9%. Same-store sales in the U.S. increased 2.6% for the third quarter and 3.9% for the nine-month period. Lowe’s outlook for the year maintains a 9 to 10% increase in sales, with same-store sales expected to rise 3 to 4%.
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BMR adds barbecue boutiques to some of its stores
BOUCHERVILLE, Que. — Groupe BMR and BBQ Québec are teaming up to bring BBQ Québec products across the province over the next few weeks. The popular Quebec barbecue lines will be featured in sections within BMR and Unimat stores, which will help the BBQ Québec brand expand beyond the handful of stores it currently possesses.
About 20 stores will feature permanent BBQ Québec “Zones” where customers will find the entire BBQ Québec-branded range of grills, accessories, wood chips, sauces, and spices. At least 80 more stores are expected to take on some of the BBQ Québec lines. The brand has developed a following in the province, catering to barbecue lovers with unique products, services, clothing such as hats and shirts, and even cooking lessons.
“We are very happy to be partnering up with BBQ Québec to make our stores the number-one destination for barbecue lovers! With this decision, we are meeting an increasing demand from our customers who enjoy barbecuing all year round,” said Pascal Houle, CEO of Groupe BMR. “And we are proud to do so with a fellow Quebec-owned company known for its dynamic leadership.”
BBQ Québec was founded in 2014 by brothers Max and Jean-Philippe Lavoie, who got their start in the industry as youngsters working in their parents’ hardware store. They opened their first BBQ Québec store in Sainte-Foy in 2014. They went on to open a second one in Boucherville in 2015 and a third store in Laval in 2016.
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Doug Lemieux recognized by WRLA with Industry Achievement Award
VAUGHAN, Ont. — Doug Lemieux, president of L.B.H. Building Centre in St. Albert, Alta., has received the Western Retail Lumber Association’s highest honour, the 2016 WRLA Industry Achievement Award.
Nominated by TIMBER MART and chosen by the WRLA, Lemieux was recognized for his years of dedication to the LBM industry, the development of his local community, and the support of various not-for-profit organizations, including the WRLA.
Lemieux credited his company’s success to the decision to join the TIMBER MART group, which has “assisted us in creating relationships with our vendor partners, provided us with exceptional buying programs, and the tools we’ve needed to be successful long term,” he said. The WRLA has presented the award since 1970.
Lemieux made news last year when he won the Marc Robichaud Community Leader Award at Hardlines’ Outstanding Retailer Awards. And his uncle, Vic Lemieux, was awarded the WRLA Industry Achievement Award in 2015. Vic established Econo TIMBER MART in 1970 in Prince Albert, Sask.
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Introducing the newest member of the HARDLINES Team
WORLD HEADQUARTERS, TORONTO — David Chestnut has joined Hardlines Inc. as Vice President, Business Development.
David has been an advertising/media leader and an innovator for 20 years in the Canadian home improvement industry. A native of Sussex, N.B., he moved to Toronto in 1996 and joined the staff of the now-defunct Rogers trade publication Hardware Merchandising. He was promoted to associate publisher in 1999. A year later, he helped launch Canadian Contractor magazine. In 2007, he was promoted to publisher of Rogers’ home improvement trade publications division, directing the sales, editorial, production, and distribution of Professional Painter and Builders Choice magazines, in addition to his continuing work with Hardware Merchandising and Canadian Contractor.
He launched Renovation Contractor magazine in 2010. Under his direction, the publication achieved numerous awards. Most recently, he worked on the digital properties of Student Life and Parent Life Networks, gaining invaluable experience in digital and video marketing.
A consistent winner of Rogers’ “Overachiever” sales awards for exceeding annual targets, David has also served on the advisory board for the Canadian Home Improvement Show and was a consultant on the successful launch of the industry’s number-one trade magazine for retailers, Hardlines Home Improvement Quarterly.
Over the course of his career, David has forged very close ties with the leading manufacturers, distributors, and agencies that make the marketing and sponsorship decisions in Canada’s $45 billion home improvement industry.
You can reach David at david@hardlines.ca or 416-725-7992.
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RETAILER NEWS
TORONTO — Lowe’s will celebrate the grand opening of its new North York store next week in Centerpoint Mall. Jim Caldwell, EVP for Big Box Retail, will join employees for an official board cutting and community grant donation presentation to North York Women’s Shelter. The new store represents an approximate local investment of more than $23 million and will create 120 jobs, with an additional 30 to 40 seasonal positions. It will open in time for the winter season with some 40,000 products in its inventory. This opening follows on the heels of the opening on November 10 of a store in the Victoria area—and Lowe’s first store in Canada to be built on two floors.
NEW MINAS, N.S. — A new interchange being built to circumvent New Minas will ease traffic going through the centre of town via Commercial Street. With the new construction, a Kent Building Supplies store on Commercial Street will move out by the highway to a new location off Exit 12 in the spring.
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MELBOURNE —Wesfarmers is investing more than $1 billion to establish the Bunnings banner in the U.K. and Ireland on the bones of recently acquired Homebase, the Australian Business Review notes. Yet Bunnings managing director Peter Davis has promised industry professionals that the mistakes of Woolworths in launching the doomed Masters chain won’t be repeated. While Homebase’s retail footprint makes for an ideal platform to convert to the Bunnings brand, he added, “in five years, Homebase will disappear off the face of the world.”
SUPPLIER NEWS
MARYSVILLE, Ohio — Scotts Miracle Grow is paying a lot of attention to the cannabis market. For example, it has a marijuana-focused soils brand, Black Magic, which is sold through SMG’s wholly-owned subsidiary, Hawthorne Gardening, along with other products and supplies for growing marijuana. This is one of SMG’s fastest growing businesses. It also has a hydroponics division, General Hydroponics, which sells hydroponic cultivation systems and supplies.
CHICAGO — Grainger sales in October were flat versus October 2015. Sales in the U.S. were down 1%, while Canadian sales tumbled by 15%.
PEOPLE ON THE MOVE
TIMBER MART has added to its lumber-trading team into Atlantic Canada with the appointment of John Fluke as commodity trader. In this role, Fluke will serve as a resource for TIMBER MART members in the Atlantic by sourcing commodity products, securing buying opportunities, and managing TIMBER MART’s pressure-treated lumber program in the region. Previously, he spent 18 years as commodities manager in the Atlantic for Lighthouse Lumber-AFA Forest Products. Fluke will report directly to TIMBER MART’s Vice-President of Distribution and Trading John Morrissey and be based out of the TIMBER MART office in Dartmouth, N.S. With this latest appointment, TIMBER MART’s lumber-trading team consists of four commodity traders in total: two in Ontario, one in Quebec, and one in the Atlantic.
ECONOMIC INDICATORS
Housing sales nationally rose 2.4% from September to October. Actual (not seasonally adjusted) activity was up 2.0% from October 2016. The greatest activity was in British Columbia’s Fraser Valley, as well as in Calgary, Edmonton, Hamilton-Burlington, and Montreal. Month to month, the number of homes coming on the market was up 1.7%, while the MLS Home Price Index was up 14.6% year over year. The national average sale price for a home in Canada climbed 5.9% from October 2016. (Canadian Real Estate Association)
Retail sales in the U.S. rose 0.8% in October compared to the previous month, boding well for strong holiday seasonal sales. Increased wages and stable hiring helped to drive the increase up beyond the expected 0.6%. Car sales and higher gas prices also contributed to the growth, but gains crossed several sectors including construction supplies and groceries. Meanwhile, spending declined at furniture and department stores. (U.S. Commerce Dept.)
NOTED
America’s big shopping day, Black Friday, which is the day after American Thanksgiving, is expected to attract a record number of Canadian shoppers online. According to a survey commissioned by online translation company One Hour Translation, 31.5% of Canadians ages 18 to 34 intend to buy online on Black Friday, compared with 44% of Americans in the same age group.
OVERHEARD…
“Our third-quarter operating results were below our expectations due to slower sales in the first two months of the quarter.”
—Robert A. Niblock, Lowe’s chairman, president, and CEO, on numbers that fell below analysts’ forecasts, which were blamed on slower-than-expected sales in August and September.