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NAVIGATING the CHANGING MARKET Leaders from Across the Country Weigh in on Where They Envision the Industry Headed for 2018 and Beyond

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NAVIGATING the CHANGING MARKET Leaders from Across the Country Weigh in on Where They Envision the Industry Headed for 2018 and Beyond HARDLINES.CA CONNECTING THE HOME IMPROVEMENT INDUSTRY FOURTH QUARTER / 2017 A CATEGORY SMALL, REBUILDING OF POSSIBILITY BUT MIGHTY FROM THE ASHES Are you serving all Colombia’s tiny Family store finds your community’s hardware stores support, comfort from business needs? don’t waste an inch community after loss HOME IMPROVEMENT QUARTERLY FEATURE STORY NAVIGATING THE CHANGING MARKET Leaders from across the country weigh in on where they envision the industry headed for 2018 and beyond Canadian Publications Mail Agreement # 42175020. POSTMASTER: Send address changes to Hardlines Home Improvement Quarterly, 528 Queen Street East, Toronto, ON M5A 1V2 OUR TEAM HAS BEEN A KEY ELEMENT IN CANADIAN DEALERS’ SUCCESS SINCE 1967 HOME IMPROVEMENT QUARTERLY FOURTH QUARTER / 2017 • VOLUME 7, NO. 4 528 Queen Street East, Toronto, ON M5A 1V2 • 416-489-3396 @Hardlinesnews • www.hardlines.ca EDITOR-IN-CHIEF PUBLISHER Michael McLarney Beverly Allen [email protected] [email protected] EDITOR VP BUSINESS DEVELOPMENT Sigrid Forberg David Chestnut [email protected] [email protected] STAFF WRITER MARKETING DIRECTOR Geoffrey McLarney Katherine Yager [email protected] CONTRIBUTING WRITERS John Caulfield ACCOUNTING Sara Clarkson Margaret Wulff Frank Condron [email protected] Bill Wilson ADMINISTRATION ART DIRECTION Maggie MacKinlay Shawn Samson [email protected] TwoCreative.ca Hardlines Home Improvement Quarterly is published four times a year by Hardlines Inc., 528 Queen Street East, Toronto, ON M5A 1V2. $25 per issue or $90 per year for Canada. “Trying to find a buying group for my Subscriptions to the Continental United States: $105 per year and $35 per issue. new business was a challenge. It was All other countries: $130 per year. (Air mail $60 per year additional) important to maintain my independence, Subscriber Services: To subscribe, renew your subscription, or change your address or contact information, please contact our Circulation Department at 289-997-5408; [email protected]. be able to work directly with the Canadian Publications Mail Agreement # 42175020 vendors; while at the same time have full POSTMASTER: Send address changes to Hardlines Home Improvement Quarterly, transparency of all the buying programs. 528 Queen Street East, Toronto, ON M5A 1V2. TORBSA was the answer! They helped All editorial contents copyrighted 2017 by Hardlines Inc. No content may be reproduced without prior permission of the publisher. to ensure competitiveness and allow us to position our business the way we wanted in the right direction. After three We acknowledge the [financial] support solid years of sales and profitability, our of the Government of Canada. business continues to grow. TORBSA knows how to support the independent dealer for all the right reasons.“ NUMBER ONE - Gary Sangha, General Manager IN THE HOME IMPROVEMENT Crown Building Supplies, Surrey, BC INDUSTRY. ONLINE AND PRINT. HHIQ isis jjustst oonene ffacetac of the Hardlines Information Network. Since 1995, we’ve been delivering the most up-to-date For More Information information directly to you online, in print, and in person. About TORBSA, Find out how you can get your message out with us. Contact: Call Bob Holmes Beverly Allen David Chestnut PUBLISHER VP BUSINESS DEVELOPMENT At 1-866-865-1689 Office: 416.489.3396 • Mobile: 647.880.4589 Mobile: 416.425.7992 Email: [email protected] Email: [email protected] www.torbsa.com HOME-OWNER.CA 100% CANADIAN OWNED YOU’RE HERE TO STAY. WE’RE HERE TO HELP. We know the competition, and we know the hard work that you put into your business. None of that is going anywhere, and neither are you. “When we joined Home Hardware in December 2008, we had struggled every year to grow our bottom line, despite a great customer base and steady sales increases. Since then, our sales have grown 16% while margin increased by more than 1.6%; this despite a recession and a brand new CTC store across the street. Home has provided us with a reliable distribution system and new skus added to available products weekly. National advertising keeps our name out there, and at a very reasonable cost. Home has all the back end support a small business could ever dream of. We have enlarged our store twice in these same few years, ZVTL[OPUN0UL]LY^V\SKOH]LKYLHTLKVM^OLU0ÄYZ[OLHYK [OH[V\YHYLH^HZ[VNL[HIPNIV_Z[VYL0JHUÄUHSS`ZLLH comfortable retirement in my future.” John Glover Upper Tantallon, NS Visit home-owner.ca to learn how you could benefit by joining Home. VOLUME 7, NO. 4 CONTENTS FOURTH QUARTER / 2017 COVER STORY NAVIGATING THE CHANGING MARKET Leaders from across 26 the country weigh in on where they envision the DEPARTMENTS industry headed for 2018 EDITOR’S MESSAGE and beyond. 7 Optimism, above all else BUSINESS CONDITIONS 8 Second quarter 2017 MAINTENANCE, REPAIRS, AND OPERATIONS MARKET REPORT 10 Industry’s top four keep COMMERCIAL SALES consolidating the market There’s a whole category of customers 22 out there waiting to be won over by the PRODUCT SPOTLIGHT dealers who are willing to put in the effort. 18 Duplex grinder, wireless recording, and more NEWS SPOTLIGHT 20 Kenroc at 50 FINDING YOUR NICHE SPEAKER SPOTLIGHT NEWSROUNDUP 12 DARE TO BE 32 Home Hardware’s’s DIFFERENT Rick McNabb TIMBER MART becomes home improvement partner of You have to SHOW REPORT Canadian Football League 34 think a few stepseps 36 Global DIY ahead of the market.market. Summit in Berlinn Home Hardware launches MERCHANDISING RETAIL TRENDS campaign targeting 38 Colombia’s tiny millennials GIVE ’EM SOMETHING TO TALK ABOUT hardware stores Fastway Group purchases Are you effectively managing SELLING TO PROS Winnipeg’s North American 44 Playing it too safe Lumber 40 your digital reputation in an era of e-commerce? STORE MANAGEMENT Canadian Tire expands 46 Measure your store customer product testing REGIONAL SPOTLIGHT against the opinions to enhance online reviews DON’T UNDERESTIMATE that matter BMR’s renovation of THE SMALL-TOWN DEALER ENDCAP Potvin & Bouchard store Atlantic retailers weighweigh 50 HowHo the Gauthier family part of a wider initiative 42 in on the challengesges sasaved their legacy and opportunitieses WD-40 assists grizzly of home bear research improvement FOURTH QUARTER / 2017 5 retailing. Recommended by Jim Caruk, Master Contractor, HGTV Host and Editor-in-Chief of Renovation Contractor Magazine DO-IT-YOURSELF AND SAVE UP TO 20% ON HEATING & COOLING COSTS* The Owens Corning™ AttiCat® Expanding Blown-In Insulation System is a quick, easy, safe and reliable system to help you take control of your home’s comfort and energy usage. † Quick & Easy: Complete in as little as 2 hours Virtually No Settling: Keeps its energy saving R-value over time Virtually No Mess: Releases and expands inside machine for low dust THE PINK PANTHER™ & © 1964-2017 Metro-Goldwyn-Mayer Studios Inc. All Rights Reserved. The colour PINK is a registered trademark of Owens Corning. © 2017 Owens Corning. All Rights Reserved. *Up to 20% heating and cooling savings based on Hot 2000, Version 8.7 run for a 2 storey 1972 type base house with 1149 sf per floor for an increase from R-8 to R-40 in the attic in Canadian climates. Savings vary depending on original amount of insulation in your home, ® climate, house size, air leaks, and personal energy use and living habits. †Blowing time, based on attic size 100m2/1000 ft2 at RSI 8.8/R-50. 1-800-GET-PINK or visit owenscorning.ca EDITOR’S MESSAGE SIGRID FORBERG, EDITOR OPTIMISM, ABOVE ALL ELSE Ours is an industry of ups and downs, but the successful retailers who’ve managed to weather the changes share one important quality: optimism. ith the end of the year on the positive about what the future holds in Retailers, such as those featured in our horizon, at HHIQ, we’ve been our spotlight on the Atlantic region on Atlantic spotlight, continue to grapple with W wondering what 2018 has in page 42. this issue as their staff members continue store for the industry. The last few years Beyond the store level, the head offices of to age and fewer young people are coming have brought a number of challenges for Canada’s largest retail companies are also up to replace them. The right time to start Canadian home improvement retailers— optimistic heading into 2018. We delve thinking about succession is now. between poor weather, increasing into the challenges, opportunities, and As the busy summer season wraps up, consolidation, and the looming threat of expectations they have for next year in our it’s a good time to reflect on other aspects e-commerce, it would be easy to understand leaders’ forecast on page 26. of your business, as well—what are your if dealers were feeling a little uncertain. For many retailers, however, one successes? And what can you improve on? But pessimism is a rare quality to find challenge that continues to puzzle them Our NRHA Retail Advisor Bill Wilson gives in this industry’s retailers. As Rob Lawrie, is figuring out the millennial generation. some expert tips on how you and your staff who owns two Home Hardware stores Home Hardware is working hard to can better serve your customers’ needs and in Nova Scotia says, “I think successful reach that crucial group of young people close the deal more often. retailers are always optimistic.” I guess just beginning to settle down and enter But when it comes down to it, you’re you have to be in this business—especially the housing market. Find out more about the expert of your own store. You know when there are so many factors out of your Home’s new marketing campaign on what your business and your customers control that can impact your company’s page 20.
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