April 9, 2018 Volume xxiv, #14

“Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate; only love can do that.”
—Dr. Martin Luther King, Jr. (American Baptist minister and civil-rights activist, 1929-1968)

IN THIS ISSUE:

• Sexton Group expands in Ontario with two new dealer members, new rep

• With the heart of an entrepreneur, Richelieu CEO stakes growth on innovation

• Conference Board presents mixed forecast for construction in Canada

• NRHA plans extensive educational program for dealers at National Hardware Show

  PLUS: Reno-Depot’s new spokesperson, BMR’s new Eastern Canada rep, Hudson’s Bay’s Q4,  Tractor Supply’s 1,700th store, CHHMA’s Hall of Fame inductees, Garaga’s new contest, Norske’s Al Holton, NHS’s new logo, U.S. construction, and more!
  
  

Sexton Group expands in Ontario with two new dealer members, new rep

WINNIPEG — Sexton Group has announced the addition of two Ontario members, reports President Steve Buckle. Tarpin Lumber & Truss, one of Ontario’s largest family-owned building supply companies, is based in Innisfil and has been owned and operated by Dave Pratt and family since 1986. Tarpin’s production team develops custom prefabricated wood roof trusses for its customer base of architects, project engineers, and other professionals.

Tampa Hall Ltd., which manufactures structural wood framing systems, has supplied framing construction technology to home builders since its inception in 1960. The Ayr, Ont.-based company, headed by Jordan Rothwell, holds patents for wall assemblies and prides itself on its developments in wall framing and roof truss technology.

“I am thrilled with these recent developments,” says Buckle. “Dave Pratt and Jordan Rothwell are talented entrepreneurs and their organizations are influential in Ontario. I appreciate their confidence in Sexton Group.”

At the same time, the group has announced that Mike Fraser has taken on the newly created role of commodity wood products manager, Eastern Canada. Fraser has spent 30 years in the industry, most recently as senior panel and lumber buyer for Alpa Forest Products. “The ability to add someone of Mike Fraser’s calibre and acumen to our team is a real coup and will accelerate our progress in Eastern Canada,” Buckle adds.

With the heart of an entrepreneur, Richelieu CEO stakes growth on innovation

MONTREAL — Richelieu Hardware is celebrating a number of milestones this year. It’s been a quarter of a century since the hardware and fastener company went public. Its president and CEO, Richard Lord, has been with Richelieu for three decades. And the company itself is celebrating its 50th year.

Not bad for a fastener and cabinet hardware maker that was doing $30 million in sales when Lord took the helm in 1988. By the end of this year, Richelieu will be a $1 billion company with 110,000 SKUs, and 80,000 customers.

But more important than the growth, the market dominance, and the national presence of Richelieu is perhaps the fact that it remains a Canadian company. In an era that sees more and more Canadian companies being swallowed up by larger players, most of them from south of the border, Richelieu has set itself apart as the one doing the acquisitions, many of them in the U.S.

Lord talks of these accomplishments with the enthusiasm of an entrepreneur. And in many ways Lord is an entrepreneur at heart. A former EVP with RONA, with experience in manufacturing in Asia, he says, “My dream was to be an entrepreneur.”

When he joined Richelieu, he saw the potential and wanted the company to operate in a way that would maximize that potential and be a leader in hardware production in Canada. “Richelieu was very small and it fit my dream,” he adds.

“I took the responsibility to change the market in Canada.”

Today, Richelieu works hard to be a market leader, and its range of products reflects the company’s adherence to innovation. And much of that is aimed at the commercial market that comprises 85% of its business.

Walking through the company’s showroom at head office in Saint-Laurent, on the northwest side of Montreal, one can see first-hand the range of unique space-saving and convenience-driven products for cabinet manufacture, as well as for home owners looking to create a shelf, closet, or kitchen cupboard that works best for their home.

“Richelieu’s strength is that we have access to anything around the world,” says Lord. That has enabled the company to stay on top of, and lead, product trends. “For example, when we started, we sold plastic cabinet knobs for fifteen cents. Now the world has changed, with knobs that now sell for $10.”

(Part two of our interview with Richard Lord will appear in next week’s blazing edition of Hardlines!)

Conference Board presents mixed forecast for construction in Canada

OTTAWA — After posting its strongest growth since 2013 last year, Canada’s residential construction industry is forecast to see a small contraction in 2018. Meanwhile, non-residential construction is expecting a modest turnaround this year, according to The Conference Board of Canada’s latest outlooks for the two industries. 

“Spending on new housing and renovations will likely slow this year as Canadians become more cautious under new mortgage rules and interest rate increases. This will put downward pressure on new residential construction,” says Michael Burt, director, industrial economic trends, at The Conference Board. He adds that non-residential construction is expected to bounce back this year, after slowing in 2017.

Here are some highlights of The Conference Board’s outlook:

• Housing starts are forecast to drop by 2.9% in 2018, led in large part by a 4.3% drop in Toronto and a 6.5% drop in Vancouver in 2018.
• Spending on new homes is expected to fall next year.
• Following two years of contractions, Canada’s non-residential construction industry will rebound in 2018. However, weak business investment intentions are limiting industry prospects.
• Pre-tax profits in Canada’s non-residential construction industry are expected to rise by 8.0% to reach $2.3 billion this year.

Following growth of 4.9% last year, GDP growth in Canada’s residential construction industry is forecast to fall by 0.3% in 2018. As homeowners become more cautious under new mortgage rules and rate hikes, real expenditures on new housing are expected to slow from 5.8% in 2017 to 3.4% in 2018 and then drop by 3.0% in 2019. On a national basis, housing starts are forecast to drop by 2.9% in 2018. The decline in starts will be led in large part by a 4.3% drop in Toronto and a 6.5% drop in Vancouver in 2018.

Renovation activity will perform better, but will also see a deceleration to 1.8% growth in 2018 from 4.5% last year.

On a brighter note, Canada’s backlog of unsold new homes is falling. The diminishing supply of new homes on the market will encourage building activity in the long run, propelled further by strong population growth in some regions and strengthening labour markets around the country.

Following two years of contractions, Canada’s non-residential construction industry is forecast to grow by 1.9% in 2018. The value of new non-residential building permits increased by an estimated 15% last year to reach $35 billion, indicating a healthy number of non-residential projects in the pipeline.

NRHA plans extensive educational program for dealers at National Hardware Show

NORWALK, Conn. — Expect more than products when you head to Las Vegas next month for the National Hardware Show. Information, education, and inspiration will also be available, thanks to the North American Retail Hardware Association (NRHA) All-Industry Conference. This feature of NHS takes place May 8 to 10 at the Las Vegas Convention Centre.

NRHA is a trade association whose guiding vision is to educate, advocate, and associate on behalf of independent hardware and home improvement business owners. (NRHA is represented in Canada by Hardlines.) Through the All-Industry Conference, visitors will benefit from a series of educational seminars and networking opportunities. Each year, these sessions attract manufacturers, wholesaler representatives, and industry professionals alike.

Attendees registered for the National Hardware Show can attend the Conference at no additional cost.

“Though breadth of product, exhibitors from all over the world, and inventors make the Show one of the most efficient trips for industry professionals to make, the added benefits of attending the complimentary NRHA All-Industry Conference really help attendees to maximize their time and move their businesses forward,” says Rich Russo, vice president of the National Hardware Show.
 
Three keynote sessions will help attendees stay informed and inspired:

• Meet the Stars of HGTV’s “Good Bones”. Mother-daughter duo Karen E. Laine and Mina Starsiak Hawk, the show’s stars, will share their story of how they began rehabbing homes in their own community and how their passion led to a successful construction company—and a hit television show.

• Hear From TreeHouse Co-Founder and President Jason Ballard. TreeHouse is the world’s first home upgrade company and Ballard knows what the home of the future looks like. He will share what retailers can do to best meet customers’ growing smart home product needs.

• Discover the Next Big Thing With The Grommet CEO Jules Pieri. Pieri will explain how her company chooses which products to champion and how Ace Hardware’s recent acquisition of a majority stake in The Grommet influences its path forward.

Join NRHA to discover what’s next for the independent home improvement and hardware channel! Retailers who register for the National Hardware Show also gain free entry to the NRHA All-Industry Conference. Register right here.

DID YOU KNOW…?

... that you can get updates through the week with our free Daily News? That’s right: this free service provides ongoing updates on home improvement and retailing news in general. Sign up now for this no-charge service from Hardlines! (Did we mention that it’s free?)

RETAILER NEWS

BOUCHERVILLE, Que. — Reno-Depot, the big box contractor banner of Lowe’s Canada, has a new spokesperson. Hockey star Dave Morissette is both a well-known sports figure and a home improvement enthusiast. He will star in various Reno-Depot advertising campaigns starting April 9. “Reno-Depot is celebrating its 25th anniversary this year and embarking on the next chapter of its history,” says Guy Beaumier, EVP Big Box at Lowe’s Canada. “During this growth phase, we wished to partner with a new spokesperson who is—just like the Reno-Depot brand—accessible, authentic, energetic, and professional. Dave is a down-to-earth, hands-on kind of guy who enjoys home improvement and knows how to overcome obstacles to complete his projects.”

VANCOUVER — Building materials e-retailer BuildDirect.com has announced that it has raised $39 million in funding, enabling it to refinance and exit the creditor protection it was granted five months ago. Creditors last month overwhelmingly approved the plan, which also includes the conversion of $19 million in interim financing for a total of $43 million. The firm, founded in 1999, is now left with just $4 million in debt.

BRAMPTON, Ont. — Hudson’s Bay Co. reported Q4 earnings of $84 million, compared to a $152 million net loss a year ago, but including $181 million gain from U.S. tax reforms. Disappointing sales at off-price banners Saks OFF 5TH and Gilt.com more than offset strong performance at The Bay and Saks Fifth Avenue, with comparable sales across all banners falling by 2.4%. The company made profits of $0.39 per share in the quarter, which included an extra week of sales compared to last year’s Q4. On a normalized basis, HBC said its profits came to $20 million, compared to $2 million last year.

BRENTWOOD, Tenn. — Tractor Supply Company opened its 1,700th store this past weekend. It’s located in Mocksville, N.C. “The opening of our 1,700th store is an important milestone that we are proud to reach during our 80th year of operations, as we continue to bring Tractor Supply closer to more customers who live the “Out Here” lifestyle,” said Greg Sandfort, Tractor Supply’s CEO, referring to the farm and hardware chain’s retail format.

SUPPLIER NEWS
NORWALK, Conn. — The National Hardware Show has introduced a new logo. It incorporates an abstract representation of a bolt, where everything around it is held together by this streamlined piece of hardware, meant to illustrate how NHS is “the tool that powers your business.” Click here for more information.

TORONTO — GE Appliances Canada has announced a new partnership with The Holmes Group, whose founder Mike Holmes will serve as a brand ambassador along with son Mike Jr. and daughter Sherry. Throughout 2018, in-store point-of-purchase displays, digital content, and social media and PR activities featuring the Holmeses will be used to boost sales of GE’s full range of kitchen and laundry products. GE Appliances will also be seen on the show Holmes and Holmes and will receive the "Holmes Approved" stamp of approval.

SAINT-GEORGES, Que. — Garage door maker Garaga has launched a contest aimed at homeowners who would like to have a smart garage door system. No purchase is necessary to enter. The contest runs from March 21 to June 28. The retail value of the entire garage door system is $2,500. In addition, if the winner purchases a Garaga garage door during the contest period, Garaga will double the amount of the prize.

PEOPLE ON THE MOVE
The Canadian Hardware and Housewares Manufacturers Association awarded its 2018 Hall of Fame recipients at the association’s AGM and annual convention last week. The vendor recipient was Gerry Byle, former general manager of Kaz Canada and the Canadian division of Honeywell Consumer Products. He is also the former president of Bionaire. Vaughn Crofford, retired president of the CHHMA, was also inducted into the Hall of Fame for his leadership of the association over almost a quarter of a century. This year’s retail inductee was Yves Gagnon, former president and CEO of Groupe BMR.

BMR has named James (Jim) Hall, formerly a sales manager at Goodfellow, as sales manager. In this role, he will be the buying group and wholesaler’s point person to liaise with the English-speaking market in Eastern Canada. The company is actively expanding its dealer recruitment and wholesale distribution of building materials, hardware products, and farming supplies, particularly in the Ontario market.

Al Holton has joined Norske Tools as account manager to help recruit new dealers in Ontario and to grow the Norske and Trade-A-Blade brands. An industry veteran, he brings a wealth of industry experience and knowledge with a career that includes working at Castle, BMR, RONA, and Beaver Lumber. (Al.Holton@norsketools.com)

ECONOMIC INDICATORS
U.S. construction activity for February reached $1,273.1 billion, up 0.1% above January. (U.S. Commerce Dept.)

NOTED
Presidents Council is hosting a series of buyer meetings with South American hardware big box retailer Sodimac on May 22. Participating vendors are guaranteed exclusive 30-minute face-to-face meetings with Sodimac product import decision makers. Interested in building your business in South America? Register here to secure your product pitch with Sodimac’s senior-level merchandise personnel.

OVERHEARD…
“Consumer-centric retailers need to constantly innovate and change. You need to constantly visit your stores, pay attention to e-commerce, and pay attention always to the needs of the consumer.”
—Albert “Aldo” Bensadoun, founder and executive chairman of Aldo Group. He received a lifetime achievement award, with a standing ovation, in Montreal last month at a gala dinner hosted by the Quebec retail association, CQCD.

OUT AND ABOUT

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