June 5, 2017 Volume xxiii, #23

“There is no passion to be found playing small—in settling for a life that is less than the one you are capable of living.”
—Nelson Mandela (political activist and former president of South Africa, 1918-2013)


IN THIS ISSUE:

  • Home Depot launches Orange Door campaign to support homeless youth

  • Lee Valley Tools opens store in Niagara Falls, expands new concept prototype

  • Quebec association breaks from CRBSC, will field advocacy issues on its own

  • Feds pledge loan support for beleaguered softwood industry

  • PLUS: Target Building Materials marks 50th anniversary, Castle adds Newfoundland member, new TIMBER MART dealer in Quebec, B.C. Home Hardware stores combine, Brad Dixon joins Castle, RONA Roch Gauthier et fils reopens after fire, angry man sets fire to Home Depot store, Dollarama reports healthy Q1, CashierPRO moves into larger office, building permits dip, U.S. construction spending falls unexpectedly, and more!

Home Depot launches Orange Door campaign to support homeless youth

TORONTO — Home Depot stores across Canada kicked off the annual Orange Door Project fundraiser last week to help end youth homelessness. Until July 2, customers shopping at Home Depot Canada stores can support the campaign by donating $2 at the checkout in exchange for a paper orange door.

“In Canadian neighbourhoods, kids as young as 13 are experiencing homelessness,” said Home Depot Canada President Jeff Kinnaird. “Together, we can shine a light on this serious social issue and inspire our friends, family members, and neighbours to take action to help.”

Donations to the Orange Door Project campaign support organizations that provide safe, stable housing and life skills programs for homeless and at-risk youth. Home Depot Canada covers all administrative costs of the campaign, ensuring that 100% of customer donations benefit local youth shelters, drop-in centres, or aid organizations.

The campaign has raised $6.6 million for more than 300 non-profit groups since 2007, and the Home Depot Foundation has pledged a total of $20 million by 2018 to improve housing options, support life skills programs, and invest in research to help youth build brighter futures.

 

Lee Valley Tools opens store in Niagara Falls, expands new concept prototype

OTTAWA — Lee Valley Tools’ next store will open in what may well be Canada’s most popular tourist spot, Niagara Falls, Ont. That outlet, which will open officially June 16, has been designed to appeal to a transient, impulse-driven consumer in a touristy environment.

The product mix of a traditional Lee Valley store caters to woodworkers, hobbyists, and people searching for unique cabinet hardware, toys, and puzzles. The prototype for the Niagara Falls store reflects a more diverse range of products, focusing on “fun” items, garden tools, retro gizmos, and home accessories.

The concept and merchandising mix were first developed at a boutique outlet Lee Valley owns in Almonte, Ont., about 45 minutes outside of Ottawa. The town draws a steady stream of tourists and day visitors, especially on weekends, to explore its shops and art galleries. The store was originally acquired by the Lee family and tailored to accommodate that clientele. It was also secured as a pastime for the company’s founder, Leonard Lee, in his retirement. He passed away on July 7, 2016, at the age of 77.

In a previous interview, Robin Lee, president of Lee Valley Tools and son of Leonard Lee, told HARDLINES that he believed this “discovery” type of store would be effective in other tourist destinations such Niagara Falls, Ont., or Stratford, Ont., home to the Stratford Shakespeare Festival.

 

Quebec association breaks from CRBSC, will field advocacy issues on its own

LONGUEUIL, Que. — AQMAT, the Quebec hardware industry association, is set to open its own Ottawa office, in order to pursue industry advocacy with the federal government directly. The announcement coincides with AQMAT’s withdrawal from the Canadian Retail Building Supply Council.

At its most recent meeting on June 1, the directors of the association unanimously accepted to strengthen the lobbying function of association President Richard Darveau to lead representation at the federal level, a role he already fills provincially. The association has secured a national office in Ottawa, near Parliament Hill.
 
AQMAT will stop financing the Canadian Retail Building Council (CRBSC) and will officially withdraw from that national body. However, it intends to keep communications open with the four other regional associations (ABSDA, LBMAO, WRLA, and BSIA of B.C.), to continue exchanging best practices and information, and to defend the industry regarding common issues faced by businesses at the national level.
 
“We prefer to keep better control over the actions to be prioritized and the rhythm to be adopted to induce government action,” said AQMAT Chair Nicolas Couture. “As the CEO is duly registered as a lobbyist in Ottawa, I am confident that we will obtain results more quickly, and more in sync with what companies here expect from us.”

For now, the Quebec association has identified renovation tax credits as a priority, and will implement a study to evaluate the potential impact of such credits.

 

Feds pledge loan support for beleaguered softwood industry

OTTAWA — The Canadian government has pledged $867 million in loans and loan guarantees to the softwood lumber industry, following the imposition of countervailing tariffs on softwood exports to the U.S. The Feds will work in concert with the provinces to support the industry.

Not surprisingly, the U.S. lumber industry is railing against the move, claiming it’s yet another example of government subsidies that tip the balance of trade in favour of Canadian exports.

The loans are designed to help softwood producers offset the impact of the U.S. tariffs, which range from 3% to 23%, depending on the company and province they’re in. The loans should be used, say insiders, to help the Canadian industry become less reliant on the U.S. by developing offshore markets.

Federal support for the forestry industry includes:

  • federal loans and loan guarantees to complement provincial efforts;
  • efforts to expand overseas markets and promote the diversification of Canadian wood products;
  • helping Indigenous communities and organizations improve the performance of their forest sector initiatives;
  • providing a temporary extension of the maximum period for work-sharing agreements from 38 to 76 weeks in order to reduce layoffs;
  • and expanding support to help affected workers upgrade their skills and transition to new opportunities.

The Forest Products Association of Canada voiced its support for the government measures in a release. “We appreciate that the federal government is standing tall for Canadian forestry communities by launching a comprehensive package in the face of trade actions that we believe are without merit,” said Derek Nighbor, CEO of FBAC. “This support will assist our efforts in continuing to transform our sector, diversify our markets, and support our workers.”

 

DID YOU KNOW…?

...that the 2017 Who’s Who Directory is now available? And we’re shipping them as fast as we can! This incredible industry handbook should be in every salesperson’s briefcase and on every marketer’s desk. It features all the hardware and home improvement retail chains, co-ops, buying groups, key independents, mass merchants, and wholesalers, with full listings of corporate management, buyers (yup, buyers!), sales, and store counts. Just $229 for you, our Faithful Hardlines Subscribers! (Click here for more info and to order today!)

RETAILER NEWS

WINDSOR, Ont. — Target Building Materials is enjoying its 50th anniversary. To celebrate, the company is holding a series of customer and contractor thank-you events throughout the year in association with special promotions and product knowledge opportunities presented by vendors. In a release, President Greg Drouillard, son of founder Moe Drouillard, extended a personal thanks to all Target customers for 50 years of support. He also attributed much of the success Target has enjoyed to “positive staff behaviour, excellent morale, and a focus on product knowledge coupled with continuous training and the highest level of customer service possible.”

VAUGHAN, Ont. — Centre Jardin St-Césaire, a garden centre and building materials retailer in Saint-Césaire, Que., has joined TIMBER MART. “In order to meet our customers’ needs, we’ve been expanding our business continuously since we opened in 2008. We’ve added product lines, categories, services, and multiple greenhouses to our 246,000-square-foot property,” says Jean-François Ostiguy, the store’s owner. “To further grow our business, we joined a buying group that would offer us better buying power in our newly expanded categories and the independence we need to run our business our way.”

 

MISSISSAUGA, Ont. — Castle Building Centres announced the addition of its newest independent member, John-Rogers Hardware of Baie Verte, Nfld. The brand-new store is owned by Gail and Dwayne Rogers. “Castle was always our first choice,” the pair said in a release, “and the competitive programs Castle offers will enable us to complete our dream of starting our own building supply business.” The store currently offers an assortment of electrical, plumbing, hardware, and interior finishing products, with plans to grow the building supply side of the business.

ST. JACOBS — Hagen’s Home Hardware and Mackenzie Home Building Centre have joined into one location in Mackenzie, B.C. That site has expanded by 15,000 square feet and now offers nearly 3,000 square feet of retail space as well as a drive through lumber section. The combined Hagen’s Home Hardware Building Centre recently celebrated a grand re-opening and weekend sales event.

BOUCHERVILLE, Que. — Gutted by fire in January of 2016, RONA Roch Gauthier et fils in Les Cèdres, Que., has reopened following a $3.5 million renovation. Brothers and co-owners Bernard, Sylvain, and Richard Gauthier have rebuilt the 32,000-square-foot store and 90,000-square-foot lumber yard, retaining all 25 of their staff. Alain Brisebois, Lowe’s Canada’s executive VP of central services, saluted the store team for their “great resilience” in the face of adversity. The brothers began planning the future of the operation the very day of the fire, transferring their employees to their other store in Saint-Polycarpe and continuing to serve customers from there.

SAANICH, B.C. — A fire that caused damage to the interior of a Home Depot store in Saanich, B.C., was started by a man who was disgruntled with the company for not giving him a job. According to the Times Colonist, Steven Pickering told Saanich police that he “decided to cause mayhem” after being turned down for a position there. He also set fire to propane tanks at a nearby townhouse complex that was under construction. Pickering turned himself in and pleaded guilty to the crimes. He has been sentenced to five years in prison.

MONTREAL — Dollarama Inc. reported increases in sales, net earnings, and earnings per share for the first quarter ended April 30. Sales increased by 10% to $704.9 million. Same-store store sales grew 4.6%, compared with a 6.6% increase the previous-year quarter. Net earnings increased to $94.7 million from $83.2 million. Dollarama opened 13 net new stores during the first quarter.

 

SUPPLIER NEWS
STRATFORD, Ont. — Enjoying strong sales growth so far this year, CashierPRO has acquired and officially moved into a larger office space, which allows the POS and inventory management systems provider to continue adding staff to serve clients across Canada and the U.S. CashierPRO’s new address is 5 George Street West, Stratford, Ont., N5A 1A6. Phone number stays the same at 1-888-250-8135. 

 

ECONOMIC INDICATORS
The value of building permits issued in April fell 0.2% from March to $7.1 billion. Residential building permits fell 2.5% to $4.5 billion, the third consecutive monthly decrease. Lower construction intentions for single-family dwellings, which were down 8.1%, were responsible for the decrease, despite a moderate gain in multi-family units, which were up 5.6%. The value of non-residential permits reached $2.6 billion in April, up 4.1% from the previous month, thanks mainly to investment in institutional and industrial structures. (StatCan)

U.S. construction spending fell unexpectedly by 1.4% in April to $1.22 trillion, the largest decline in a year. The rate however reflects a 6.7% increase in spending from April of last year. The drop was driven largely by a 3.7% plunge in public construction spending, while private construction in May saw a 0.7% decrease, also the largest in a year, falling to $943.3 billion. (U.S. Commerce Dept.)

 

PEOPLE ON THE MOVE
Brad Dixon has joined Castle Building Centres Group Ltd., in the role of Business Development Manager for British Columbia and Alberta. He has a long history in the industry that includes stints at IRLY Distributors and TIMBER MART. He was most recently at Orgill Canada. In his new role, Dixon takes over from Les Gillespie, who recently left Castle after nine years with the company. (1-778-808-7995)

 

OVERHEARD…
“As with any successful business, communication and service are important in fostering a positive and mutually beneficial relationship.”
—Greg Drouillard, president of Target Building Materials in Windsor, Ont., on the longevity and deep community roots of the company as it celebrates its 50th anniversary this year.


CLASSIFIED ADS