HARDLINES.CA CONNECTING THE HOME IMPROVEMENT INDUSTRY
FOURTH QUARTER / 2019
MERCH DIGITAL SCHOOLING MATTERS REVOLUTION LIFE The ROI of Our expert will Young retailer is set renovating help you get on soaking up as your store will your digital much knowledge shock you house in order as possible
FEATURE STORY
HOME IMPROVEMENT QUARTERLY 2020 RECESSION LEADERS’ SSION FORECAST ELECTIONSLECT Leaders, in their own words, weigh in on trends, transitions impacting the industry TARIFFS RIFFS
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COVER STORY 2020 LEADERS’ FORECAST Leaders, in their 22 own words, weigh in on the trends, transitions DEPARTMENTS impacting the industry. EDITOR’S MESSAGE 7 Best laid plans
8 SOCIAL MEDIA CORNER MADE IN CANADA One click away from THE WEIGHT OF A DOLLAR your community As Canadian consumers NEWS SPOTLIGHT 30 increasingly put more thought 10 BMR continues into where they spend, home improvement Ontario retail brands are capitalizing on the expansion practicality of “shop local”. PRODUCT SPOTLIGHT 18 Beach house FROM THE FRONT LINE shakes, steel NEWSROUNDUP 12 stud anchors BRAVING and more BMR’s stake in Lefebvre & THE ELEMENTS Benoit provides entry to high- Dealers in the North must 34 MERCHANDISING rise construction market cope with a host of challenges 40 What is the ROI of to serve customers, not just renovating my store? Home Hardware sees locally, but far and wide. “huge opportunity” in commercial sales NEWS FEATURE 42 Lee Valley Tools continues Transition complete as Lowe’s HARDWARE Canada relocates out of to find new ways to Mississauga location connect with customers
Taiga makes changes to its Quebec management team ENDCAP 50 Knowledge Home Depot Foundation ups STORE MANAGEMENT drives this investment in preventing GETTING YOUR DIGITAL young youth homelessness HOUSE IN ORDER retailer WRLA will move its Buying Where to start when Show to Winnipeg starting 44 it comes to digital, in in 2021 a world that changes faster than you can get started? Lee Valley Tools’ Quebec expansion remains focused FOURTH QUARTER / 2019 5 on customer experience YOUR CUSTOMERS WILL APPRECIATE THE SAVINGS ON THEIR HEATING AND COOLING COSTS*
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SIGRID FORBERG, EDITOR BEST LAID PLANS There’s a saying that if you want to make God laugh, tell him your plans.
hile forecasting the weather is a Dion to basketball and IMAX), still love Our Endcap highlights one retailer (somewhat) exact science, retail a “support local” initiative. So how has it putting in the work in other ways. Kevin W conditions can be a little trickier changed from those early emotional years Harris, from Harris Home Hardware in to predict. The metaphorical skies may look of the slogan? Our feature on page 30 London, Ont., has spent half his life working clear one moment, and the next you’re hit explores the eminently practical reasons in the family business. And he’s been with a downpour. Canadian retailers are stocking their shelves focused on absorbing as much knowledge In this issue, we strive to give you as with Canadian products. as he can the entire time. accurate a retail forecast for 2020 as we can. Our cover story features a number Being armed with the right knowledge of industry leaders outlining in their own words what they expect from the next year, ensures dealers will be able to react appropriately, based on environmental, political and “ regardless of what the future brings. historical context. While no one anticipates completely sunny skies, they each outline However, stocking their shelves in general “Learning is something I’m going to do how they plan to support dealers through can be a challenge for some Canadian until I retire,” says Harris.” “I’m going to the challenges ahead. dealers. For home improvement retailers soak up all the knowledge I can. I think the More than two decades ago, as American in the North, supply doesn’t always meet more knowledge you have in the hardware retail chains were establishing themselves the demand. From exorbitant shipping industry, the better you’re going to do.” in Canada and quickly overtaking home- fees to difficulties finding and retaining Looking ahead, there are many factors grown names, “Made in Canada” became workers, these dealers often need to find that can dictate a retailer’s success that a form of resistance against the monopoly. creative workarounds for what may seem they may not have control over. But being And years later, when e-commerce was first like everyday obstacles elsewhere. To hear armed with the right knowledge ensures gaining momentum, a product’s Canadian more about how they make it work, flip to dealers will be able to react appropriately, origins would help protect consumers from page 40. regardless of what the future brings. exorbitant customs fees and steep currency And on page 44, our marketing expert exchanges. But those hurdles now daunt Lyndon Madden has some advice on how Canadian shoppers far less—free shipping, to get your digital house in order, whether free returns and better pricing make it you’re still working on the basics of your worth the risk. website or just hoping to keep up with the rate But “Made in Canada” efforts haven’t of change. As Madden puts it, your website is disappeared. And Canadians, known a living, breathing, digital document—you worldwide for claiming their products have to put in the work to sustain it so that [email protected] (ranging from Justin Bieber and Céline it’s meeting your customers’ needs. www.hardlines.ca Hardlines Home Improvement Quarterly FOIURTH QUARTER / 2019 7 SocialMediaCORNER Want news updates on a daily basis, delivered right to your smartphone? Follow Hardlines on Twitter! @hardlinesnews
WHAT’S TRENDING IN HOME IMPROVEMENT ONE CLICK AWAY FROM YOUR COMMUNITY In this department, we’re highlighting a few fun and innovative ways dealers across the country are using social media to engage their communities. The best posts combine selling products with humourous and informative content.
babypoint_hardware Warmer weather can bring inwelcome guests. If pests are “bugging” you, Oh happy Monday! With sun, clear skies we’ve got you covered! #hardware #hardwarestore and perfect patio and poolside temps in #toronto #babypoint #smallbusiness #localbusiness the forecast, how will you be enjoying #neighbourhoodstore #shoplocal #supportlocal #product #babypointgates #shoplocaltoronto the gorgeous summer weather this week? #makeitbetter #MondayMotivation MondayMood #heatwave #summer #HotHotHot
Spring Valley Building Centre @springvalleybc Fans are literally flying off the shelves @springvalleybc this week! If you are looking McMunn and Yates makes it easy for even for a quick fix to cool down your home during the laziest customers. #homeshopper the heat wave – stop in to see Candi & our team of sales associates. They would be happy to assist you! #PEI #PEIheatwave 12” Desk Fans - $25.99
Flight of “fan-cy” in Spring Valley. #heatwave
A treat for everyone at Lee Valley! #goodboygetscool
8 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca SOCIAL MEDIA CORNER
Gentek Building Products experts are on your siding. #stepbystep
Oxbow TIMBER MART does its best to keep hazardous waste out of landfills. #greenandclean
Lowe’s Canada points out that with plants, there is such a thing as too much love. #drowningyourdarlings
www.hardlines.ca Hardlines Home Improvement Quarterly FOURTH QUARTER / 2019 9 NEWS SPOTLIGHT FLE BMR CONTINUES ONTARIO EXPANSION BMR Group has been actively targeting Ontario dealers to help it grow its network of members outside of Quebec.
MR Group recently held the official opening of its first store in Ontario B under the BMR Pro banner, Griffith Building Supply in Greater Madawaska township. Owners John Lacourse and Derek McGrimmon unveiled the new look of the store, which adds 2,000 square feet for an expanded line of materials. “We are very happy, and especially very proud, to open the first BMR Pro store in Ontario,” said Pierre Nolet, BMR’s VP of business develop- ment, calling the new dealer “an important ally in Ontario.” BMR Pro is one of a series of designations created to suit the various formats of its members. They include Pro for contractors and Express for convenience hardware stores. While the format can vary according to each dealer and their local market, the BMR Pro concept typically involves around 8,000 square feet of floor space with an industrial look and a space tailored to pros. The store offers bulk discounts, digital terminals with access to BMR’s catalogue, online order- ing with in-store pick-up and a lumber- Owners John Lacourse and Derek McGrimmon (centre) cut the board yard with outdoor tills. Other traditional at the opening of BMR’s first Pro store, Griffith Building Supply. services remain in place, including on-site delivery, project estimates, cutting, truck 23,000-square-foot store converts to the Building Supplies in Marmora in Central fleets, phone-in orders and charge accounts. BMR banner in the upcoming months. Ontario, joined BMR in 2006. While it’s significant that the banner Fourth-generation owner Lorne Feldman However, when BMR was acquired by added its first Pro store in Ontario, the was drawn by the range of programs offered La Coop fédérée in early 2015, it reined in company also has plans for the banner in by BMR, which include pricing, integrated its expansion efforts while reorganizing its its home province. The first Quebec store distribution, new products and a marketing head office. Now, under Nolet, the group for the BMR Pro banner is currently under program. “BMR provides us the tools to has renewed its efforts in a more targeted construction in Trois-Rivières, with an give our customers an exceptional shopping manner than ever before. existing BMR dealer, BMR Pierre Naud. experience, along with great value,” he said. Just a month after the Griffith signing, That store opened in mid-September. While the latest efforts to recruit deal- BMR hired someone to focus on growth The group also recently added Feldman ers outside its home province are relatively in Ontario. Jason Hamburger, a former Timber, a family-owned business in recent, BMR has in fact had a presence in product manager at Home Hardware, took Timmins. The company, which has been Ontario for many years. One such longstand- on the newly created position of business in business for more than 100 years, ing dealer is BMR Windsor Building Centre, development manager for the province. He will undertake major renovations as the in Windsor, Ont. Another, Drummond reports to Nolet.
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BMR’S STAKE IN LEFEBVRE & BENOIT PROVIDES ENTRY TO HIGH-RISE CONSTRUCTION MARKET
BMR Group and Lefebvre & Benoit aim to combine their expertise to improve their offerings and drive growth across Canada.
MR Group has reached a deal “BMR’s dealers right now are in the strong financially. La Coop is a large to acquire a stake in Lefebvre & residential part of the business,” CEO business. We felt that by partnering with B Benoit, a Laval-based dealer selling Pascal Houle explains. “The big towers in them—for them, it’s a platform to grow in construction materials to contractors and Montreal and Toronto—we’re not there. the commercial segment,” he adds, refer- builders, and a fellow member of the buy- Lefebvre & Benoit has the equipment and ring to BMR’s parent company, La Coop ing group Independent Lumber Dealers the management to understand and serve fédérée, “and for us, it gives the credibility Co-operative (ILDC). this market.” to consolidate coast to coast.” The two Quebec companies aim to “They are real entrepreneurs and know In terms of the family business’s suc- combine their expertise to improve their how to build a business,” he adds. “I believe cession plan, Lefebvre explains that with offerings and drive growth across Canada. it’s a good move for both of us. The culture the growth of multinationals, “it would Where BMR’s stores provide retail hard- of the two businesses is similar.” have been difficult to continue on our ware and building materials to DIY cus- Co-owner Alexandre Lefebvre says the own.” The deal with BMR, however, is no tomers and contractors, Lefebvre & Benoit partnership will ensure the viability of the slippery slope toward losing more family furnishes large-scale industrial and multi- family business in the face of mounting control. “On the commercial side of the family residential projects. It also has three pressure from large U.S. chains. business, a lot of it is based on relationship. outlets in the Greater Toronto Area, spe- “We think there’s room for a large BMR wouldn’t invest in us if we weren’t cializing in residential roofing, industrial Canadian player that can act as a con- committed to running the business for the flooring and drywall, respectively. solidator for the market,” he says. “We’re long term. We are not going away.”
12 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca KNOWLEDGE IS POWER. Stay in the know every single week with HARDLINES. Subscribe online at Hardlines.ca
BRIEFLY
HOME HARDWARE SEES AMAZON’S PRIME DAY SETS RECORDS “HUGE OPPORTUNITY” Prime Day, the e-commerce giant’s annual shopping event, was on July 15 and 16 this IN COMMERCIAL SALES year. And it set new records for the company, leading to more sales than Amazon’s Black hile Home Hardware is known for With so many smaller wholesalers out Friday and Cyber Monday events combined. its DIY-friendly marketing and there, commercial customers must rely on Amazon says that worldwide, Prime members W advertising campaigns, behind the multiple suppliers to get a wide range of prod- purchased more than 175 million items over the scenes it is aggressively building its offerings ucts. Home Hardware’s broad assortments two-day sale and saved more than $1 billion. to the commercial customer. could counter that, says Bond. “We certainly The company also says Prime Day items were “It’s a huge opportunity and it’s growing could be a one-stop shop for them.” sent to customers faster than ever before for us,” says Dave Bond, sales and marketing But that fragmentation also makes for thanks to one- or same-day shipping. manager for Home Hardware’s commercial a highly competitive environment. Home maintenance business. Speaking at Home’s Hardware’s head office is working to edu- FCL NAMED LARGE CO-OPERATIVE dealer market in the spring, Bond noted cate the commercial customer that their OF THE YEAR that the wholesalers supplying this sector local Home Hardware store is an option for Federated Co-operatives Limited was are typically small and fragmented. them. In fact, at last year’s fall market, Home recognized as Large Co-operative of the Year While the channel is dominated by a hand- Hardware introduced a comprehensive mar- by Co-operatives and Mutuals Canada (CMC). ful of big international players—Acklands- keting program to encourage and support The award recognizes Canadian organizations Grainger, Wolseley and HD Supply—more dealers to grow in the commercial market. that have made a significant contribution to than 70% of the industry, he says, consists Dealers willing to develop their local co-operatives and mutuals in Canada and of commercial suppliers with less than $10 commercial customers can open up a whole around the world. FCL was recognized for its million in sales. Bond estimates that 15% of new revenue stream. “That business is there those suppliers are actually doing under $5 if you want to go after it,” Bond says. commitment to environmental sustainability, million. There’s definitely room to consoli- community investment, employee engagement, co-operative leadership and financial date that supplier base, he says. Behind the scenes at Home’s spring dealer market, the co-op was responsibility. aggressively building its offering to commercial customers. CANADIAN COMPANIES REDUCE BEE-THREATENING PLANTS A survey by Friends of the Earth Canada has found that retailers have made great strides in reducing or eliminating the use of plants containing neonicotinoid pesticides, a major threat to the bee population. Top place for neonic-free flowering plants goes to two national firms and one regional chain: Home Depot Canada, Lowe’s Canada and Sheridan Nurseries in Ontario. Canadian Tire responded that at least 87 percent of its plants have not been exposed to neonic pesticides, and the company believes that more than 95 percent are neonic-free.
www.hardlines.ca Hardlines Home Improvement Quarterly FOURTH QUARTER / 2019 13 NEWSROUNDUP TRANSITION COMPLETE AS LOWE’S CANADA RELOCATES OUT OF MISSISSAUGA LOCATION even months after it was first announced, Lowe’s Canada closed S its Ontario regional support centre. Friday, June 28, was the last day of opera- tions at the office. Mandatory attendance by all remaining staff gave individuals the chance not only to turn in laptops and secu- rity badges, but to make final farewells to fellow workers. Lowe’s Canada determined last year that it would consolidate all its head office teams at the Boucherville, Que., headquarters and main distribution centre. “Having our Lowe’s Canada determined last year that it would consolidate all its head office operations under one roof will allow us to teams at the Boucherville, Que., headquarters and main distribution centre. improve collaboration between our banners to better serve our customers,” said Sylvain to ensure a smooth transition until the stores “Impacted employees were supported Prud’homme, president and CEO of Lowe’s are closed, and Lowe’s Canada will support throughout the transition, and we Canada, at the time of the announcement impacted employees, including by transfer- wish to extend our sincerest thank in November 2018. ring eligible employees to other locations you for all they have done for our After initial shock among the approxi- within our network whenever possible.” customers and wish them all the mately 200 staff in Mississauga, the long time- Some parts of the Mississauga team will best,” said a spokesperson for Lowe’s line for exiting, plus generous packages and remain in the Toronto area. The bulk of the Canada. “Starting now, our team— offers of support finding new employment IT group that manages the Lowe’s.ca site, including merchandising—is working helped mitigate the impact of the closing. under Tanbir Grover, VP, e-commerce and from Boucherville, where they can “The decision to close stores is never one omnichannel, will relocate to a smaller store collaborate more closely to better serve that we make lightly,” Prud’homme said at support centre on Martin Grove Road, near our customers across Lowe’s Canada’s the time, adding, “Everything will be done Toronto’s Pearson International Airport. multiple banners.”
TAIGA MAKES CHANGES TO ITS QUEBEC MANAGEMENT TEAM Taiga Building Products has announced two company for 15 years. “This was a plan in Miron has 20 years of experience in the additions to its team in Quebec. Yanick Miron development. We do have succession plan- building materials industry, on both the manu- was promoted to Quebec general manager, ning in our organization.” facturing and the merchant sides of the busi- freeing up Bruno Jean to focus on his role He added that there was outside interest ness. He has been sales director for specialty as VP of operations for Eastern Canada after in the position, but he felt Miron was products at Taiga for the past five years. balancing both functions for the past two and deserving of the promotion given his hard At the same time, Miron announced the a half years. work for the company: “It comes with all appointment of Guillaume Renaud as director “I did combine the role of manager for the the coaching Yanick and I have done over of moulding products for Quebec. He brings Quebec region [with the VP job] and then the past two years. He really showed the six years of industry experience in various I nominated one of my young guys, Yanick passion and enthusiasm to be the leader of posts with Metrie, including as a sales direc- Miron,” explains Jean, who has been with the the Quebec market.” tor and territory manager.
14 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca HOME DEPOT FOUNDATION UPS BRIEFLY CANADIAN TIRE PARTNERS ON INVESTMENT IN PREVENTING WEARABLE TECHNOLOGY LINE Canadian Tire Corp. and Myant Inc. are YOUTH HOMELESSNESS partnering to introduce wearable computing and smart textiles to Canadian Tire’s banners. he Home Depot Canada Foundation don’t think that’s right,” says Pam O’Rourke, Toronto-based Myant’s proprietary fibre- is a key part of Home Depot Canada’s who, in addition to being VP of merchandis- based innovations will be added to Helly T identity and how the giant retailer ing at Home Depot Canada, is chair of the Hansen, Woods and Dakota products. Myant’s operates in this country. Through an ini- foundation’s board. tiative called the Orange Door Project, the She notes that young people make up SKIIN Textile Computing platform integrates charitable organization pours money and one of the fastest-growing segments of biometric sensors, heat generation technology resources into alleviating and preventing the homeless population in Canada, with and electroluminescence into clothing. It youth homelessness and recently announced many individuals ending up on the streets allows apparel and footwear to light up at a major expansion of its contribution. as young as their early teens. night for improved visibility and to connect The foundation started in 2013 with a The foundation cites research that indi- with smart devices to record performance $10 million, three-year commitment to cates early intervention is critical to break- and health information from heart rate to blood help homeless youth. In 2016, the company ing the cycle of chronic homelessness later oxygen levels. doubled that commitment to $20 million in life. Through its expanded commitment, over two more years. Most recently, Home the foundation will fund research to bet- ENVIRONMENTALISTS EXPRESS Depot Canada expanded its support with a ter understand the causes and conditions CONCERNS OVER CANWEL LOGGING further commitment of $30 million to carry of homelessness. Direct involvement with A B.C. conservation group has accused the foundation through to 2022, represent- homeless youth involves a range of services, CanWel Fibre of “liquidating” the endangered ing a total of $50 million. including providing life-skills training and whitebark pine tree. “Canwel [Fibre] is logging In addition, Home Depot Canada staff col- improved housing options for more than in sub-alpine areas where rare whitebark pine lectively donate about 60,000 volunteer hours 450 community agencies across the country. is found,” said Wildsight spokesperson Eddie to community projects across the country. “By working with our sector partners Petryshen. The group says CanWel has cut “As one of the fastest-growing segments and youth directly impacted, we can better more than 35 truckloads of the species over of the homeless population in Canada, we understand the issues they face, make the the past 18 months. The B.C government is know that many young people first experi- right investments in the right places and is now looking into preparing recommended ence homelessness in their early teens; we truly make an impact,” O’Rourke adds. standards for logging on private lands.
Home Depot Canada has SOBEYS TO DITCH PLASTIC BAGS committed $50 million to combat youth homelessness. Grocery giant Sobeys Inc. says it will remove plastic grocery bags from all its Sobeys grocery stores by the end of January 2020. The change, starting with its IGA stores on the island of Montreal, will take 225 million plastic grocery bags out of circulation at Sobeys’ 255 locations across Canada each year. The company will then phase out plastic grocery bags and introduce paper bags in all its other banners, including Safeway, FreshCo and Foodland.
www.hardlines.ca Hardlines Home Improvement Quarterly FOURTH QUARTER / 2019 15 NEWSROUNDUP WRLA WILL MOVE ITS BUYING SHOW TO WINNIPEG STARTING IN 2021
he Western Retail Lumber Association (WRLA) has announced T it will be moving its annual trade show to Winnipeg in 2021. The show will be hosted in Winnipeg in 2021, 2022 and 2023. Next year’s show will Next year’s show in Calgary will be the be held one more time in Calgary’s BMO WRLA’s last, as the show is moving to Centre, from January 22 to 24. The show had its start in Regina in 1994. Winnipeg for 2021. “We feel it is important for the WRLA After two years, it was moved to Saskatoon, to engage with all of its members from where it resided for the next 18 years. It was “So far the feedback is positive. People Western Canada, to provide venues relocated again in 2015 to its current home like the idea of moving every few years and, that present new business development in Calgary. from our perspective, we see the niche that opportunities and experiences that will Kovach stresses that the change was each location has to offer to help keep the also help to expand the industry commu- made with input from the industry. “We show fresh.” nity,” says WRLA President, Liz Kovach. are excited about the move as it will provide Proposals from Calgary, Edmonton, “Winnipeg offers a great combination of an opportunity to freshen up the show and Saskatoon and Regina were considered location and services that will bring enor- provide vendors the opportunity to expand before the WRLA settled on Winnipeg as the mous value to the membership attend- their customer base.” And given the huge show’s next host city. The association is cur- ing the annual show, while enhancing the geography her association represents, a rently working with Economic Development community feel of the event, as well.” fresh location makes sense, she adds. Winnipeg to help support the transition.
LEE VALLEY TOOLS’ QUEBEC EXPANSION REMAINS FOCUSED ON CUSTOMER EXPERIENCE With 21 stores across Canada, Lee Valley Shakespearean theatre festival), Lee settled Tools has always been, since its inception on Niagara Falls, Ont. as a catalogue retailer, committed to bricks And another store that focuses more on and mortar. And Lee Valley President Robin the educational toys, novelties and popular Lee is intent on making those spaces vibrant tools available from Lee Valley, called L.G. Lee destinations for customer interaction. & Sons, was opened in 2015 in the town of The next one will be in Brossard on The specialty tool and garden supply Almonte, Ont., just west of Ottawa. Montreal’s South Shore. Lee expects that one company started in Ottawa in 1978 and has Lee’s focus is currently on continued to open in the fall of 2020. spread across the country, mainly in major growth in Quebec. The first store there After Brossard, Lee expects the next store cities, but with some interesting exceptions. opened in Laval in September 2018. The suc- in Quebec to be on Montreal’s West Island, In recent years, it has identified smaller cen- cess of that location has encouraged him followed by Quebec City. He envisions a total tres that serve as destinations in their own to look for other sites. “Laval is our largest of four stores in the province. After that, he right. Two years ago, after debating whether store to date. It features lots of new innova- muses, Moncton may be next. to open in Stratford, Ont. (home to a renowned tions,” he notes. “And we’ll keep an eye on Newfoundland.”
16 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca Working for our members every day.
Competition is fierce in our market and margins are “always under pressure. That’s why we rely on the team of experts at Sexton to get us the best possible programs with access to top quality building supply brands at competitive prices. Managing inventory of our wide breadth of products is another critical element in being competitive. I know that I can depend on Sexton to help ensure I have the product I need to service my customers. Being a part of Sexton definitely gives us a competitive advantage.” —Gary Fletcher, General Manager, Trail Building Supplies
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Learn about our story at sextongroup.com Our Promise to You. Our strength as a buying group is built on four major advantages: We’re a dedicated team of industry professionals focused on your success. We negotiate competitive programs and leverage our strong relationships with vendors to resolve any issues quickly for you. We have a first-class accounting team that promptly delivers accurate rebate payments as promised. Well connected.
So you can focus on what matters most — your business. BY GEOFFREY McLARNEY ProductSPOTLIGHT Arrow Fastener’s Rivet Tool Arrow Fastener’s Rivet Tool - RT188M has a patented, one-handed design making it easy to squeeze. Suited for pro and DIY users, the compact, lightweight all-purpose rivet tool features an adjustable stroke distance for comfort and control, along with quick change colour-coded rivet heads. It works with both steel and aluminum rivets. The RT188M can be used for heavy duty projects including gutters and downspouts, automotive work, storm doors and windows, air vents and heating ducts. www.arrowfastener.com Derby Building Products’ Beach House Shakes Atlantica, a soft, silvered coastal grey tone reminiscent of a New England cottage, is the latest addition to Derby Building Products’ Beach House Shake line. Other colours include Sandcastle, the look of natural white cedar; Hatteras, a deep, rich weathered grey; and Pacifica, which looks like fresh western red cedar. Beach House Shake products feature subtle shading variations, grain textures and saw- cuts for the realistic look of natural cedar. Unlike natural cedar shingles, which begin to discolour after they’re installed, Beach House Shakes will not fade and require little to no upkeep. Unlike cedar shingles, Beach House Shake products will not rot, decay, crack or split and are impervious to moisture and insects. www.beachhouseshake.com
SONOpan soundproofing panels From MSL, SONOpan soundproofing panels with NoiseStop Technology are designed to prevent unwanted noise from travelling through walls and ceilings. Install the lightweight, eco-friendly panels to filter out noise from the street or the kids’ playroom. SONOpan absorbs a wide range of frequencies and significantly reduces the transmission of sound and vibrations. Each lightweight panel is 4x8 feet and ¾-inch thick, with no formaldehydes or VOCs. www.sonopan.com
T-Rex’s Brute Force duct tape ShurTech bills its T-Rex’s Brute Force duct tape as the strongest on the market. With patent-pending Forge-Link technology at its core, Brute Force features a high-bond, double-thick adhesive and an extreme tensile cloth that allows one loop of the tape to hold more than 700 pounds of weight. The strength and durability of Brute Force make it a quick, compact and portable tool for demanding jobs that would typically require rope or chain—tasks like towing heavy construction materials short distances, hoisting a large tool bucket up scaffolding or strapping and securing a bulky tool or appliance for transport. www.trextape.com
18 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca
ProductSPOTLIGHT Napoleon Prestige PRO series barbecues Napoleon’s upgraded Prestige PRO series combines traditional barbecue design with elements of coloured light. The exclusive LED Spectrum Night Light will allow users to set control knobs to a custom colour to match their outdoor décor or cycle through a full colour spectrum. Proximity lighting uses motion detection to project a Napoleon logo on the ground when the grill is heated and ready for use. The Prestige PRO series includes six- and eight-burner grills in stainless steel or black-lid design, or with 10 burners in stainless steel only. www.napoleon.com
GoBoard LT waterproof tile backer board GoBoard LT is a durable, ultra-lightweight, waterproof tile backer board from Johns Manville. With fast installation, users can complete tile projects in half the time, tiling the same day and grouting the next. Lighter and easier to handle than cement and other heavy boards, GoBoard can be quickly cut right where it’s installed with a basic utility knife without crumbling or disintegrating. Only board joints and fastener locations need to be sealed, making for a waterproof tile assembly in less time. www.jm.com ProductSPOTLIGHT
Saniflo Sanivite drain pump A compact but powerful drain pump, the Sanivite drain pump from Saniflo pumps waste water away from multiple fixtures including kitchen sinks, laundry sinks and dishwashers. It saves the expense and hassle of having to break through concrete floors to install traditional drain lines. Homeowners can create a new bathroom, bar, kitchen, laundry or other wet area almost anywhere in the home, including the attic, basement, garage, second floor and even outside. www.saniflo.ca
1SHOT Steel Stud Anchor The 1SHOT Steel Stud Anchor is touted as a quick and easy way to hang anything in a steel stud wall. It makes screwing into steel stud a three- step process: find the centre of the stud, drill a small pilot and install the 1SHOT. By delivering simple, ultra-reliable mounts in steel stud structures, the anchor eliminates the need for solid backing behind the drywall. A patented combination of a non-linear thread progression and an exclusive concave fastener profile controls and shapes the distorted pilot hole into a tiny grommet within the stud. Users can securely fasten directly to the steel studs using the 1SHOT by itself or as an anchor. www.1shot.ca LEADERS’ FORECAST FEATURE
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22 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca LEADERS WEIGH IN ON TRENDS, TRANSITIONS IMPACTING THE INDUSTRY FOR 2020
In this feature, we asked several industry leaders to share in their own words what they believe 2020 has in store for this industry. From challenges and opportunities to the outside factors that will influence the marketplace, these leaders are preparing their strategies for the year ahead.
Sylvain Prud’homme Specifically, this means that we will are choosing our products knowing that the PRESIDENT, LOWE’S CANADA be taking a closer look at everything we people who shop at our stores have a wide In 2020, our mission—to are doing with the goal to simplify and variety of other options and are more and deliver products with the optimize our processes across our entire more educated about what they need and best service and value, organization. We want to deliver the how to bring their projects to life. We are across every channel and fast, fluid and seamless experience that managing our operations while keeping in community we serve— customers now expect of every retailer, no mind the specific needs of our customers will be central to everything we do. Indeed, matter the channel they choose to interact who are looking for a simple and efficient as the retail industry becomes increasingly with our banners. shopping experience. And we are aligning complex and fast-paced, in addition to We will continue to apply a “back to our supply chain with the reality of the facing challenging market conditions, we basics” approach in our core areas by wide-range footprint of our store models are betting on retail fundamentals to gain enhancing our attention on our stores and and online offering. We will make better strength and momentum. what they need to serve our customers. We use of our resources while improving the
www.hardlines.ca Hardlines Home Improvement Quarterly FOURTH QUARTER / 2019 23 LEADERS’ FORECAST FEATURE omnichannel experience of our custom- are going to start to slow down a bit—they dealer side as well as the manufacturing ers and of those of our RONA- and Ace- already have. Business across the country in side, a lot of those changes that will come affiliated dealers. some commodity products is off anywhere into play usually don’t happen in the initial We are confident that focusing on the from 20 to 25 percent. And we don’t see year of the acquisition. So 2020 will show basics will allow us to evolve our model that making up any sort of ground over the some changes that will happen at those and offer an unmatched customer service balance of the year. We may get some sort organizations that will have an impact on experience. Thanks to this approach and of pick-up but not to the extent that we’re the marketplace. I think people are look- the excellent work of our team, 2020 will going to make up any of the difference that ing at inventories, making sure that they’re be all about harnessing the full potential we’ve lost already this year. getting their turns and if there’s any way of our entire organization, to the benefit One of the things that’s always in play is they can just-in-time inventory or stor- of our customers, our stores and our affili- that manufacturers put programs in place age inventory, making sure that they’ve ated dealers. for your dealers and you’ve got to make sure got best practices in place. And the other that we’re all on the same page. We’re con- thing is workers. Everybody is struggling Bob Holmes stantly having discussions with manufac- to find employees. GENERAL MANAGER, TORBSA turers to make sure that they see the value of And as we move forward, we have to give I think that we really the group and we’re partnering with them some credit to the regional associations in need to wait for the next to make sure that the opportunity stays at the industry, they’re all trying to push to elections both in Canada the level it has to. I think we’re working with bring younger people into the industry and the U.S. to happen. I our manufacturers more closely today than and to provide training and to give them don’t think you’re going to we ever have before. There’s lots of com- the opportunity to be successful and we see anything change until we have those. I petition and you have to make sure you’re have to hope that push actually proves to think with Donald Trump with his tariffs, keeping your people whole and strong in become action and we actually start to see with the Canadian government, whether the marketplace. those people entering the marketplace so we’re going to have a minority or a major- I think that the commercial side of the we can grow because acquiring people is ity government, I think all of those factors business will still be there; I don’t see drop- very difficult. will come into play as to what we see down ping off. I think certainly that will carry And the last thing is probably succession the road and it’s already affecting our busi- us through. The decisions the government planning: just making sure that as we’re see- ness day-to-day. I think the tariffs certainly makes as far as mortgages and first-time buy- ing the average age of the business owner, haven’t helped. We were talking to one ers’ rates and new home construction, these they’re getting older, but they’re certainly manufacturer yesterday who told me that his business was off 20 percent all because of tariffs. So it does create an issue and it I think currently we’ve been in one of the does slow things down. I think we’re going to continue to see that until we understand longest positive business cycles on record who the next President of the United States and there’s got to be, at some point in time, is going to be. And then there will be what “ something of a recession. the Canadian government decides to do as far as the party in power and what infra- — Bob Holmes, General Manager, TORBSA structure they’re going to support, moving forward. are all things that will play into peoples’ not finding people that are interested in Currently, we’ve been in one of the lon- abilities to go out and buy homes or acquire acquiring those businesses.” Hopefully, there gest positive business cycles on record and homes. It’s not in our hands, basically we’re are some people out there who are informed there’s got to be, at some point in time, in a wait and see as to what the government and knowledgeable about it and looking at something of a recession. We’ll see that will do to allow those people to re-enter the what their succession plans should be and happen—hopefully it’s short term—but I marketplace. And if they in fact do, it will then carrying forward with that because would think that we’re going to see some- certainly mean that picks up again. that’s the future of the industry. We’ve thing closer now than we’ve been waiting What’s happened in the markets in the actually on a couple of occasions brought for in the last couple of years. I think things last 12 months, the mergers on both the guest speakers and people who provide that
24 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca IT TAKES A COMPLIMENT AS WELL AS IT TAKES FOOTSTEPS AND SPILLS.
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taigabuilding.com LEADERS’ FORECAST FEATURE
service into our monthly meetings so that reducing the amount of building materi- Bernie Owens our members can be apprised of what’s hap- als required. Most Canadian construction PRESIDENT & CEO, TIMBER MART pening out there and give them a link to markets will perform satisfactorily, but we In 2020, our economy somebody who might be able to help them don’t expect a banner year. and our industry will down the road in their own businesses. As So what should Sexton Group and its continue to be impacted a buying group, you’re trying to support members do in a slower year? For starters, by the Bank of Canada’s that vehicle beyond the buying and selling there is a great opportunity to capitalize interest rate policies, the of product. There’s all these other factors, on the booming renovation market. For housing market and the outcome of the whether they be human resources or man- members, this may include offering new NAFTA/USMCA discussions. The Bank of aging your business, banking institutions, product lines that fit the current trends in Canada’s recent softening of the mortgage people from the Canadian federation of the market. Building supply dealers can stress test will help housing starts in 2020, independent businesses who have made look to their buying group for insights on however, experts predict that 2020 will see presentations, just trying to keep them product pricing trends when quoting proj- further-declining housing starts. The resale knowledgeable and give them the best back- ects for a competitive edge. and renovation markets should benefit, and ground information you can. Communication with vendor partners we believe this will continue to be a viable is even more critical in slower markets. business opportunity for the independent. Steve Buckle To help stay competitive, members should Media outlets like HGTV will help market PRESIDENT, SEXTON GROUP increase the frequency of communication repair and renovation opportunities, as Sexton Group is expect- with vendor partners and alert them to well, which increases average ticket sales at ing 2020 to be a year of market conditions that require their atten- the retail level as consumers look for more uncertainty. The overall tion. It’s also important to network and upscale décor products. economy globally, and communicate with building supply dealers In the meantime, e-commerce will con- particularly the unpre- in other markets to share new ideas and tinue to grow, and independent retailers dictable application of trade tariffs, are to understand what is working for them. will need to leverage their regional strength, dampening Canadian economic prospects. Sexton Group members, and indeed, customer service and expertise to draw cus- This uncertainty carries forward into key most building supply dealers under- tomers into their stores. Although it is dif- product lines such as wood and steel- stand their local markets intimately and ficult to compete on price with the likes of based products, where prices are proving are great at adapting their businesses to Amazon, new B2B and B2C applications challenging to forecast. The new home meet the market conditions. We will meet will evolve to assist independents in gaining construction market continues to shift the demands of the market and succeed access to goods and staying connected with to smaller units such as condominiums, as usual. their customers.
The new home construction market continues to shift to smaller units VENDORS such as condominiums, reducing BANNERS “ RELATIONSHIPS the amount of building materials required. Most Canadian construction markets will perform satisfactorily, but we don’t expect a banner year. — Steve Buckle, President, Sexton Group ” 26 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca A potential downside for our industry There is an evolving behavioural shift of the first year where the millennial cohort in 2020 will be the continued ageing of our consumers and our ageing demographic. out-numbered baby boomers. Customer overall population and their shifting pri- While baby boomers made up the largest service is what has made Home Hardware orities away from building and renovating customer base for many years, 2019 was successful in retail for over 55 years and their homes to spending their money on travel, recreation and fulfillment of their “bucket lists”. Consolidation is another dominant trend in our industry, which has led to the issue of security of supply. As more volume is controlled by fewer companies, the need for independent dealers to direct their purchasing power through their buy- ing group has become increasingly impor- tant to ensure their competitiveness and security of supply. IT’S NOT TILE. In order to face the challenges and seize IT’S U tile. the opportunities present in our industry throughout 2020, we will continue to remain focused on growing our group with new members, offering greater services and sup- port to our dealers that provide them with a competitive advantage, and fortifying our relationships with vendors to secure supply. Kevin Macnab PRESIDENT & CEO, HOME HARDWARE STORES LTD. As we have watched major Canadian retailers shut- ter their locations in the past number of years, it has become apparent that retail continues to face significant changes as customers become increasingly focused No grout. No mess. No hassle. on an omnichannel experience. Innovative shower wall panels that easily install in just 1 day As we look to 2020, I believe that there is significant opportunity for Home Hardware as one of Canada’s leading home improve- ment retailers. With the rise of online shopping, which will continue to grow in 2020, a critical maax.com/utile differentiator for Home Hardware is our flexibility to allow customers to choose from an extensive product assortment and MAAX is proud to be celebrating 50 years of innovation our ability to deliver special order prod- this year! Innovation is in MAAX’s DNA, and that is why ucts to nearly 1,100 locations across the we are proud to be paving the way for future generations country with our award-winning distribu- and setting the stage for the next 50 years! tion system. www.hardlines.ca Hardlines Home Improvement Quarterly FOURTH QUARTER / 2019 27 LEADERS’ FORECAST FEATURE
we are adapting to our new customer by Pascal Houle dividend program. This program will be providing service, products and experience CEO, BMR GROUP officially launched next year. Since BMR that are focused on our customers. BMR foresees the year was purchased by La coop fedérée in 2015, There are trends of slowing retail sales 2020 very positively con- dealers who choose to join La Coop fédérée growth and the number of Canadians con- sidering Canada’s finan- are now granted an additional dividend of sidering purchasing a home is down. Home cial strength and the up to several thousand dollars. Hardware has adapted to these changes by large number of promis- The country’s financial situation is offering innovative programs, products and ing projects. More precisely, we expect to healthy, and with all these upcoming new services that fit the needs of our custom- enhance our online offer next year and things, we can’t wait for 2020 to start! ers, whether they are purchasing, renting further promote the BMR brand in order or building their home. to continue to maintain our well-paced Bruno Jean In LBM, numerous mill curtailments and Canada-wide expansion. VP, EASTERN CANADA, reduced supply are also strenuous, which Not surprisingly, e-commerce remains TAIGA BUILDING SUPPLIES has been caused by bad weather, the high a “must” within the retail industry. BMR At Taiga, what we see com- cost of fibre, poor lumber markets and chal- will continue to evolve, improving sub- ing in 2020 and beyond is lenging operating conditions. All of these stantially our online selection for hardware that there will continue factors have led to a reduced demand of and building materials. We will also move to be lots of consolida- mill and have caused inventory to increase. towards our digital shift, which will help us tions between dealers and Despite these factors, Home Hardware is acquire new technologies to enhance our through independent dealers being bought proud to continue to provide the quality daily operation management. by corporate offices. building supplies and programs for our We expect an increase in customized With all the available digital offerings, LBM customers across the country. offers for our dealers in 2020. Each dealer online shopping is becoming even more A key to our strength, both today and has their own reality and specific needs, and important to the home improvement retail in the future, lies with our close to 1,100 they may find it difficult to support a wide market. Customers are more educated than dealer-owned stores who deliver excep- selection of items that are featured in the ever before, and they want an easy shopping tional customer service and great products flyers. For this reason, BMR will continue experience with professional staff in a store to their local Canadian communities. to roll out its new store concepts, including that can answer their needs. BMR Pro—specifically designed for deal- Logistics and deliveries also present a big ers whose customers are mostly contrac- opportunity. The leaders of the industry are MORTGAGES tors and handymen—and BMR Express, the ones able to adapt to the rate of delivery for smaller local stores. This segmentation customers want—just in time, with order offers many benefits to dealers, who will accuracy from time of order. Our custom- TAX CREDITS now enjoy an offer that will be customized ers’ expectations are getting higher as there to their needs. Moreover, we will continue are lots of options in the marketplace. We CYCLES developing our La Shop BMR banner—our have to be ready to respond. omnichannel urban hardware concept, I believe the biggest threat the industry HOUSING STARTS which now counts two stores will face in the near future is not being in Montreal. able to adapt quickly enough to the new Lastly, since the retail market reality. We are living in a fast lane industry has some chal- so efficiency is a must; the norm is not lenges for owners, BMR enough to get in front of the race. But, all has changed its business things considered, at the end of the day, it model and now uses a new just makes our life exciting.
I believe the biggest threat the industry will face in the near future is not being able to adapt quickly enough to the new market reality. “— Bruno Jean, VP, Eastern Canada, Taiga Building Supplies 28 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca ” Island Tub Drain™
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BY SIGRID FORBERG THE WEIGHT OF A DOLLAR Money spent locally is an investment in that community. As Canadian consumers increasingly put more thought into where they spend, home improvement retail brands are capitalizing on the practicality of “shop local”.
here are few things more Canadian timelines, home-grown products are more One major benefit Marks identifies is that than laying claim to famous accessible and attractive than ever before. in working with Canadian companies to T Canadian exports. From actors supply Canadian-made products, Home and musicians to culinary creations and HOMEGROWN AND PROUD Hardware is better able to monitor quality technological innovations, any traceable For buyers at some of Canada’s top and can cut costs on freight not shipped Canadian origins are worth bragging about. retailers, a product’s origin is an important from overseas—resulting in better value However, for many years, Canadian consideration. In fact, for Home Hardware and offerings for its customers. retailers’ roots were often not enough Stores Ltd., it’s been a part of the company’s At BMR Group, Charles Grégoire- to compete with the (often perceived) overall strategy since it was founded. With Béliveau, director of purchasing (hardware discounted prices and better variety of a number of private-label and proprietary and retail), says about 75 percent of the options available through internationally brands that are Canadian-owned and company’s vendors employ Canadians, based companies. But more recently, -made, including its Beauti-Tone paint line meaning their products are either “Made in Canada” products have had a and CIL fertilizer, the company proudly manufactured in Canada or they have head much more practical appeal for consumers promotes its homegrown products. offices or service centres here. and retailers alike. “For Home Hardware, our Canadian He adds that part of encouraging local A study by the North American Retail identity is imprinted into virtually every domestic suppliers translates into giving Hardware Association (NHRA) found practice,” says Joel Marks, vice-president, work to its own customers. “The vendors that for every dollar spent at a local home merchandise hardlines for Home Hardware. we work with, at the end of the day, many improvement store, seven times that amount “When customers have access to high of their employees are our customers,” says stays in the community. And beyond that, quality, competitively priced, Canadian- Grégoire-Béliveau. “Our stores are deeply with the costs of import fees and shipping made products, it is a win-win situation.” rooted in their regions, so it makes sense for us to support local vendors, when we can.” An added benefit of working with local suppliers, Grégoire-Béliveau notes, is that BMR employees are able to meet with and tour their vendors’ facilities, where they’re able to confirm factory standards and how employees are treated—something that is of increasing importance to consumers. QUALITY, ABOVE ALL ELSE At Lowe’s Canada’s headquarters, its buyers Home Hardware’s Beauti-Tone make buying decisions for its multiple paint line proudly promotes banners, including the Lowe’s big boxes its Canadian origins. and its local RONA, Reno-Depot and Ace
30 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca CUSTOMER stores. And they have a straightforward and manuals that helped reduce waste— EXPERIENCE goal in mind. something that would have been more “Our product selection process starts difficult to accomplish were their vendors is What Matters Most with what Canadians want and need, less accessible. and we adapt our merchandising strategy “From a dealer’s point of view, they get Dunn Lumber, Seattle, WA accordingly,” says Igor Halencak, executive good service, they get access to Canadian vice-president, merchandising and people, they get access to people that know marketing for Lowe’s Canada. “Our goal is their market,” says Grégoire-Béliveau. “If simple: to get the products Canadians want we want to have the best products for the at the right time and price.” Canadian customer, we need to have those Halencak adds that when those criteria Canadian vendors who know the markets are met, Lowe’s Canada will always and know the customers.” encourage domestic suppliers. A major point of emphasis for all these “In addition to supporting the local buyers is ensuring the quality of the economy, there are multiple benefits to products their companies bring to market. sourcing products domestically: reducing Marks says Home Hardware has noticed our business’s carbon footprint, flexible that social and environmental concerns delivery times and the fact that ‘Made in have become increasingly important Canada’ products are more likely to be for its customers. He’s found that many tailored to meet local needs,” says Halencak. Canadians will pay a premium for local or When it comes to what products these Canadian-made products. And so his team heads offices select, what the customer maintains high standards across the board. wants is an important factor. But the “We believe that every product sold at dealer’s needs are also weighed. Home Hardware should be of the highest As Halencak points out, sourcing locally quality and value for the customer,” says means that retailers are able to stay in closer Marks. “There is not one product that is contact with their suppliers and work on more important than any other when you tailoring their offerings and services to are committed to providing excellence in specific local needs. Grégoire-Béliveau your store merchandise—it all matters.” adds that developing those close working Locally sourced products have the added relationships with vendors has even led to benefit of being much easier to customize the development of improved packaging based on specific needs—and Home has noticed a growing desire for custom- Federated Co-op’s marketing program, Made developed solutions and product lines that By Us, spotlights its private-label product lines created with small Canadian manufacturers.
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Burlington Merchandising and Fixtures Inc. www.hardlines.ca Hardlines Home Improvement Quarterly FOURTH QUARTER / 2019 31 Greg Thomas | 905-332-6652 MADE IN CANADA FLE better address consumer preferences. That’s of how Co-op makes applicators together something Grégoire-Béliveau says his team with Bennett Tools in Concord, Ont., which has also picked up on. claims to be the only remaining Canadian “We feel that having a good experience, manufacturer of paint tools. even if we’re not selling more to a customer, Another industry initiative to promote at the end of the day, is going to have them Canadian products has been the Well coming back,” he says. “If we’re giving the Made Here program, launched in October customer what is exactly right for them, 2018. A non-profit organization, it’s owned we’re creating loyalty.” collectively by a number of retail banners and industry associations, including Lowe’s WORKING WITH MANUFACTURERS Canada, Home Hardware and BMR Group. With these priorities in place, the next To qualify for the program, products important step is for these retailers to get must have incurred at least 51 percent of the products in front of customers. In 2017, the direct manufacturing costs in Canada. The Well Made Here program, a non-profit organization, is owned collectively by a Federated Co-operatives Limited (FCL) Over the last year, representatives from number of retail banners and industry launched a marketing program, Made By Us, the program have attended a number of associations, including Lowe’s Canada, which is a campaign designed to spotlight buying group and association trade shows Home Hardware and BMR Group. its private-label product lines created with to promote the Well Made Here products. small Canadian manufacturers. After seeing “When our customers come to our stores services that align with their personal a major sales lift for the products featured and see the Made in Canada logo or the new values—and that’s only continuing to grow. in the campaign, FCL decided to repeat the Well Made Here logo, they can see that they “In a general way, customers have become program for 2018. are purchasing high-quality items and are far more curious about their choices as Last year, it released six videos highlighting supporting Canadian entrepreneurs and consumers, as well as the implications of the people and places that produce the manufacturers,” says Marks. their choices on themselves and the world products available through their retail around them,” says Halencak. “Seeing that locations. A television and social media PART OF THE EXPERIENCE in-depth product research can be done campaign featured FCL’s own Imagine line The demand is certainly there from at the tips of their fingers, we ensure that of paint brushes and rollers. It tells the story consumers to have access to products and we’re listening closely to our customers both online and in stores.” Considering the environmental and social factors that have made international What is Well Made Here/bien fait ici? products more expensive and difficult to Bien fait ici / Well Made Here is a federally chartered non-profit organization collectively procure, and the quality and value Canadian owned by its founding banners and professional associations. Its raison d’être is to vendors can offer, Canadian-made products encourage the purchase of quality building materials and other items manufactured in are a natural choice for retailers seeking to Canada and intended for the residential market. For its first years, its vision is to strength- make their customers feel as though their en the value chain between manufacturers, banners and their network of hardware stores purchases have a larger return for the and home improvement centres to better serve consumers and contractors. communities they live in. Catering to the The organization seeks to address five main issues: shop local movement is a best practice for • To help consumers find information on quality products made locally; Canadian retailers looking to respond to • To enhance offerings for certified contractors, in conjunction with retailers, through the a changing market, and no longer just a purchase of local, quality products; movement about asserting national pride. • To position retailers as choice destinations for customers keen to buy qualified products; “From a dealer’s point of view, I think it’s • To have retail banners associate with the growing movement in favour of buying local, a good advantage,” says Grégoire-Béliveau. quality products; “And from a customer’s point of view, I • To help manufacturers stand out from imported or low added-value products through think it really shows our engagement in the provision of technical information for DIYers and contractors. giving jobs and buying products from Source: www.ici-here.ca/about people that give jobs to Canadian people. Everyone wins.”
32 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca YOUR PLACE FOR RETAIL SUCCESS
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BY JOHN CAULFIELD BRAVING THE ELEMENTS Dealers in the North must cope with a host of challenges to serve customers, not just locally, but far and wide.
HARDWARE
his year marks the 20th anniversary acres that first opened in 1980. Its current Another expanding retailer is Eskimo of the opening of Stagg & Templeton owner, Susan Drury, bought the store from Point Lumber Supply, based in Nunavut. T Construction’s building supply Jarand Building Products four years ago. It operates a 9,000-square-foot store in retail store in Wabash, in Labrador. That She and husband Barry—who once man- Arviat with a 10,000-square-foot lumber 5,500-square-foot outlet, which sits on 3.5 aged an IRLY Bird store in Whitehorse and shed. And last year, Eskimo Point, through acres and includes an 11,000-square-foot now works as the Watson Lake store’s sales acquisition, added a second, 15,000-square- warehouse, serves a Labrador West com- manager and estimator—are planning foot store in Rankin Inlet. munity of about 14,000 people, but has also to start construction next summer on an Eskimo Point was recently cited as one of delivered to customers in Churchill Falls, 8,000-square-foot store surrounded by 15 Canada’s fastest-growing companies, says its Nfld., 250 kilometres away. acres. That bigger outlet, says Drury, will COO Derrick Webster. The retail division The store operates within a mining econ- provide more space for the display of fur- is one of six operations under one corpo- omy that owner Mike Stagg says is a “mixed niture and wood-burning stoves, as well as rate umbrella that also owns a hotel, heavy- bag,” as his annual sales swing with the econ- a rental department. equipment cargo and rental businesses, a omy’s ebb and flow, from $4 million to $9 Watson Lake HBC, situated in a town of cash management business, a jet-fuel sup- million. (Sales this year are tracking at about 2,000 people, does about $3 million in sales plier and a specialty contracting company. 75 percent peak). And Stagg says it’s tough to annually, 70 percent with local contractors. Eskimo Point operates the only two hard- compete for employees who can find work in It’s been getting more business lately from ware stores in a seven-town region known as the mines for $35 an hour or more. Telegraph Creek, a six-hour drive away, Kivalliq, which has a population of 10,500. Dealers operating stores in Canada’s where homes that were destroyed by fire Its stores generate between $10 million and remote northern markets face similar chal- last year are being rebuilt. The store even $20 million in annual sales, and benefited lenges every day. The weather, of course, is gets occasional business from Whitehorse, from a mining boom that propelled 10 per- always a factor, especially when selling to 438 kilometres northwest. cent growth in the local economy last year. construction projects. Just getting products The store, with between nine and 12 “We saw that the money would be coming to their stores and then to their customers employees, receives most of what it sells in, and got ahead of the curve,” says Webster. usually requires some expensive combina- from Home Hardware’s support centre in tion of truck, rail, barge and/or plane. And Wetaskiwin, Alta., which ships orders once COMPLICATED PRODUCT given the small size of these markets, there a week. Drury says her store does a brisk SHIPMENTS are limited opportunities for expansion. special-order business, too, and can prom- Access to transportation is a must for There are exceptions. Watson Lake ise a five-day turnaround. Its product mix these northern stores. For example, Igloo Home Building Centre in the Yukon oper- includes appliances, and a few years ago the Building Supplies, a 4,000-square-foot ates a 4,700-square-foot store on three store started milling rough lumber. building centre on two acres in Yellowknife,
34 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca IS TURNING 1945 75 2020
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as -60 C. The dealer has 3,500 square feet of heated retail space and 6,000 square feet of unheated area. Those conditions are a far cry from southern Ontario, where Killin once worked for Home Hardware and Home Depot. When Killin orders products FOB (freight on board) to Yellowknife (which is 851 kilometres away), freight costs to fly those orders to Cambridge Bay aver- age $3 per pound. (The store is about two kilometres from the local airport.) Killin Cambridge Bay in Nunavut is home to the says that freight costs are based on weight northernmost hardware store in Canada. and volume, so he needs to be smart about having the right combination of light and N.W.T., receives all of its inventory by truck, and his 12,800-square-foot store receives heavy products in a given order to lower once or twice a week. Lumber and related weekly shipments, it’s been a struggle to the freight costs and get maximum value building materials come from Igloo’s dis- recover lost business. “We used to average at retail, where freight costs are dispersed tribution centre in Edmonton, says Chad $2 million to $2.4 million in sales; in these across the items shipped. LeFrancois, the store’s manager. last two years, we didn’t even hit $500,000.” Killin says he can fill just about any order Stagg says his store must rely on three His only salvation was that local contractors customers are willing to pay for. He recalls common carriers to receive products. remained loyal customers. one customer who needed a Solatube sky- Trucking companies aren’t always reliable The good news is that De Muelles’ light immediately. The product itself only due to driver shortages, and their dispatch- store—which includes a 16,000-square-foot costs about $20, but the freight for quick ing puts the mines and food delivery first. drive-through yard and another shed with a turnaround tacked on another $250. Killin Eskimo Point Lumber Supply operates rail siding—can ship to Nunavut by water. added a markup of $20. “I think we sold in the tundra: no trees, bitter cold and no Previously, barges from Montreal went the most expensive Solatube in history,” roads in or out. Building material orders to Nunavut, then Churchill, and back to he quips. assembled at the Port of Montreal are Montreal. Now, says De Muelles, “Churchill Kitikmeot Supplies—which gets 40 per- barged in during the second week of July is the first stop” for a new boat in the water. cent of its annual sales from government and in late October. Its stores also draw and institutional accounts, half of which products from Home Hardware’s DC in TENDING FREIGHT COSTS are contractors—orders directly from Alberta, and air freight alone runs $1.50 A TOP PRIORITY manufacturers, as well as from a specialty per pound, on average. Webster notes that Depending on the mode of transport, distributor in Edmonton, and through a 32-bottle package of water can cost $55 freight costs can add significantly to the Igloo Building Supplies Group and Sexton to fly in. final price tag on products, especially spe- Group. There aren’t any roads, either, in cial orders that demand quick turnaround. Northern dealers would have a difficult Churchill, Man., population 900, where Air freight is the most expensive form of time surviving without their buying groups Home Building Centre found itself stranded distribution in the North. Drury of Watson to lean on as reliable product sources. in 2017 when a flood washed out part of the Lake Home says that her store pays $11 per “Many of our northern dealers are look- rail line connecting the store to Winnipeg. bag in freight alone for garden soil flown in. ing to grow their existing business,” says Customers in Nunavut, one of the store’s Kitikmeot Supplies, a retailer that’s oper- Dale MacPherson, Home Hardware Stores’ primary markets, assumed that Home ated for 24 years in Cambridge Bay, a hamlet senior director-national retail operations. Building Supply wasn’t getting products, on Victoria Island in the Kitikmeot Region When Kitikmeot Supplies became an and stopped shopping there. of Nunavut, is the northernmost hardware authorized Igloo distributor in February “In 2003, we shipped 359 crates of product store in Canada, according to the store’s 2018, Igloo stated that serving Canada’s to Nunavut by rail; in 2017-18, one crate,” GM, Bill Killin, who has worked there 11 Arctic “has been a core element of [its] busi- laments Dale De Muelles, the store’s owner. years. Its winter months are marked by ness strategy.” Igloo’s 53,000-square-foot Even though the rail line is running again, 24-hour darkness and temperatures as low warehouse in Cornwall, Ont., with 100,000
36 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca You need to be there.
“We’re always on the lookout for the next hot product or trend in our industry, and the National Hardware Show always delivers. There are so many opportunities to gain knowledge at NHS, whether it’s through networking with retailers and vendors from across North America or participating in educational seminars. We always leave energized and full of new ideas.”
Joel Marks Vice President – Merchandise HOME HARDWARE STORES LTD.
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it’s paying $20 per hour “just to hold onto people,” says Webster. The remoteness of northern stores also limits how often manufacturer or buying- group reps come to provide employees with product demos and knowledge. Stagg says he’s had to fly his workers to Ontario and Quebec just to get them properly trained. ANCHORED TO THEIR ECONOMIES Most of these dealers have no plans to expand their existing stores or to open Kitikmeot Supplies in Cambridge Bay, Nunavut, new ones. Growth opportunities, they say, gets 40 percent of its annual sales from are confined by how well their local econo- government and institutional contracts. mies fare. “Our fate is tied to Yellowknife,” says Igloo’s LeFrancois. And while Home square feet of yard space, supplies northern Eskimo Point runs a small grocery within Building Supply expects to return to profit- dealers in Nunavut, and has access to air- its two stores, as well as what Webster calls ability this year, “I have to be careful with ports and water ports. a “mini Cabela’s” for fishing and hunting my hiring because I can’t make any prom- Stagg in Labrador views his affiliation gear. It also stocks furniture and appliances. ises about full-time work,” says De Muelles. with TIMBER MART as a “huge advantage” “We’re more like a department store,” That being said, some dealers are look- in terms of working with trucking compa- says Kelly Green, the 48-year-old GM of ing to establish niches. Green of Northern nies for deliveries and backhauls. (His store Northern Hardware & Furniture, a three- Hardware & Furniture sees growth coming receives between one and four trailers per storey retail store in downtown Prince from housewares, lawn and garden supplies week, depending on the time of the year.) George, B.C., 781 kilometres north of and outdoor sports like fishing and hunt- “Mike Stagg is successful is because Vancouver. The store was started a century ing. Northern Hardware also operates a he’s figured out the logistics game,” says ago by Green’s great-grandfather. wholesale division for transactions with John Morrissey, vice president of distribu- Along with home improvement fare, schools, offices and other commercial/ tion and trading for TIMBER MART in Northern Hardware carries furniture institutional purchasers. Dartmouth, N.S. TIMBER MART’s services (much of it purchased from U.S.-based sup- Eskimo Point Lumber Supply’s Webster include assembling orders for transport pliers, says Green), housewares and gift- sees e-commerce as a better way of expand- from Vancouver by train weekly to areas ware. It also carried appliances until last ing its customer base than building a new where northern dealers can pick up mer- May, when it dropped that category because store, which he estimates would cost $400 chandise by truck and haul it to their stores. it couldn’t compete with a Lowe’s that’s a per square foot. 15-minute drive away. Stagg, who is 54 years old, says he’s RETAINING WORKERS IS ABOUT Over the years, Northern Hardware has getting ready for semi-retirement. He and DOLLARS AND CENTS sold luggage, curtains and horse-related his wife recently purchased a house in It’s common for northern dealers to expand products like saddles, all of which were the Maritimes, and he will eventually be their product assortments beyond hardware eventually discontinued. placing the future of his hardware store and building materials, even as the size of In a typical year, Northern Hardware & in the hands of its next crop of managers their stores and yards limits what they can Furniture generates about $2 million in and workers. “We were fortunate enough, display. sales. It employs 40 people, and like every 18 months ago, to hire a new manager who Kitikmeot Supplies stocks Canada Goose- other dealer contacted for this article, is working out,” says Stagg. brand clothing and boots and office supplies. struggles to hire and retain workers. “Staff Despite the challenges, there’s a clear Home Building Supply in Churchill sells will leave you for 25 cents more an hour,” need in these northern communities for auto supplies, jewelry, and recently started says Green. the products and services these stores carrying frozen foods—including salmon Three years ago, Eskimo Point was pay- provide. With all the obstacles they face, packs, steaks, pork chops, chicken, even des- ing its employees an average of $15 per even modest growth and a succession plan serts—supplied by M&M Food Market. hour; now, in a booming mining economy, are big wins.
38 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca Introducing the New Great Stuff TM Smart DispenserTM
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greatstuff.com MERCHANDISING FLE
BY ROB WILBRINK WHAT IS THE ROI OF RENOVATING MY STORE? Most retail stores should refresh their formats at least every seven years, and while that might seem like a costly undertaking, our merchandising expert explains why it’s a critical investment.
Digital signage, especially fabric signage, In my experience, stores that renovate can help to upgrade the imagery of your store typically see sales increases of 15 to 40 per- and to build a local brand that can make you cent, with all other factors being equal. look as professional as the big chains. They also see an increase in gross margin percent as their product mix changes to n a 2017 study, retailers were asked cost per square foot of renovating these higher-end building materials and more which metrics were most important stores is considerably lower than the cost of high-margin hardware products. The result I in evaluating the potential and ulti- the elaborate fixtures and finishes needed is that, net of leasehold improvements or mate success of a store renovation. Return to sell many other categories. Building cen- building construction, the payback is often on investment (ROI) was the number-one tres are also able to leverage the impact of less than a year—even at the low end of the factor, followed by overall store sales, mar- their yards and warehouses, which benefit growth range. ket share and conversion rates. proportionately when sales in the front-end That’s an ROI of more than 100 percent. There was a recognition among respon- of their businesses increase. After three years of heightened sales and dents that the life cycle of a newly renovated As the next generation is taking the reins, EBIDTA based on normal multiples, the store was decreasing. Historically, common we are seeing a new energy to compete and value of your business should increase by wisdom had suggested seven years was opti- grow. Passionate young store owners and an incremental five to six times the cost of mal, but given the pace of change in the managers are taking advantage of tools not the investment. If the succession plan is to marketplace, this seemed to be trending available or accessible to the previous gen- sell the business, then renovating your store lower. This has also accelerated the need for eration. They’re using social media to pro- should be a key part of the planning pro- faster ROI on a store reno, with most retail- mote improvements and to build a following cess. It would be tough to identify a more ers looking to achieve full payback within in their communities, rather than waiting profitable investment. one to three years. for word of mouth to spread the good word. This study was not broken down by sector, Digital signage, especially fabric signage, Rob Wilbrink is the president and CEO but it’s safe to say that few independents in can help to upgrade the imagery of your of Burlington Merchandising and Fixtures home improvement have followed the seven- store and to build a local brand that can (BMF). BMF provides a full range of services year refresh concept. Many I’ve encountered make you look as professional as the big for independent dealers, including category have changed little in the last 20 years, chains. And new fixturing systems are strategy development, store layout and design, despite the ROI in home improvement store making it much easier to add product assortment planning, project management, renovations being arguably higher than capacity without necessarily expanding the design, supply and installation of store fixturing many other retail sectors. That’s because the footprint of a store. and signage, carpentry and merchandising.
40 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca BeOnStone quickly gained popularity in our area thanks to its price and ease of installation.
“At Lortie and Martin, our priority is the customer’s satisfaction. As soon as we started receiving requests about Permacon products, I began taking steps to become a distributor. BeOnStone quickly gained popularity in our area thanks to its price and ease of installation. In addition to the product’s refined look, customers can install it without the services of a masonry professional. We are very proud to offer a product that’s in such demand in the industry.” —Catherine Lortie, Lortie et Martin NEWS FEATURE FLE LEE VALLEY TOOLS CONTINUES TO FIND NEW WAYS TO CONNECT WITH CUSTOMERS The Ottawa-based specialty tool retailer is known for its quality.
ee Valley Tools is renowned for its unique tools valued by woodwork- L ers and specialty DIY users. The specialty tool and garden supply company started in Ottawa in 1978 and has spread across the country, mainly in major cities, growing its network to 21 stores. Those stores are vibrant destinations for customer interaction—something that is very impor- tant to Lee Valley President Robin Lee. All Lee Valley stores regularly host activities—everything from knife sharp- ening classes for adults to wood-burning workshops for children. “It’s not about try- ing to sell tools. It’s trying to promote hand- craft and the acquisition of skills,” Lee says. Lee Valley has a collection of Reflecting on the importance of activities antique and vintage tools at its for kids, he adds, “It’s a small thing, but it’s manufacturing facility in Ottawa. an example of how to interact with custom- ers. There has to be a takeaway—and that sister company, Veritas Tools, can refer to use it,” he says. “It becomes a tremendous takeaway doesn’t have to be a product. It old styles of products for hands-on testing. way to learn from those who have gone can be an experience.” At Veritas, 140 people work in the man- before.” Building on that history, the team But less known about the company is ufacturing operation, which has a full at Veritas can add innovation and modern the fact that Lee Valley has a collection of machine shop, a woodworking shop and manufacturing methods. antique and vintage tools at its manufac- two assembly operations that make parts The result is a line of products distinct to Lee Valley Tools—and one that is diffi- cult to find at generalist sites like Amazon. History is a very important part Through its stores and its popular cata- logues, both in print and online, the com- of our business. We believe tradition pany can share the stories of those tools and technique are embodied in our tools. with its customers—and create stronger “ relationships with those customers. The commitment to product innovation turing facility in Ottawa. These relics not and do finishing and assembly. The facility is ongoing. The R&D team is designing only reflect the legacy of the company, they manufactures 1,200 different ”products— and planning two to three years ahead of provide a treasure trove for research and “all highly complex, small runs. For exam- production. Lee says three new produc- development, as well. ple, we have a run of 50 to 100 for a rabbit tion machines, worth millions of dollars, “We have a very extensive collection of plane,” says Lee. are being added over the next three years. hand tools. There are more than 100,000 Any effort to remake or update such a “History is a very important part of our pieces right now,” says Lee. He calls them “a product benefits from access to older mod- business. We believe tradition and tech- physical library” and designers at Lee Valley’s els. “You can put it in your hand to feel, to nique are embodied in our tools.”
42 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca Educated employees sell more. Employee training helps grow your bottom line. It also leads to better customer service, lower staff turnover and more confi dent and productive employees. Invest in your staff to advance their careers and your business.
Train the team.
What resources are available to you? NRHA offers a variety of online training courses and tools to help you educate your staff on topics like product knowledge, selling skills, operations and merchandising. We have everything you need, from quick guides to in-depth training programs.
“We do a lot to educate our staff, and it’s so important for business. NRHA is an avenue for that and provides a variety of great resources.” David Dishke | Grand River Home Hardware
JOIN US TODAY AT NRHA.ORG/MEMBERSHIP STORE MANAGEMENT FLE
BY LYNDON MADDEN
Where to start when it comes to digital, in a world GETTING YOUR that changes faster than you can get started? With the significant onset of available options to get our brand out to the consumer, that’s the ultimate question. DIGITAL Let’s clear away some of the digital debris and start with HOUSE IN ORDER the fundamentals.
44 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca y now, most brands, whether communications. Knowing your core intent, they want to visit. If your consumer wants retail- or product-based, have at and holding it as your high-level direction, your website to be full of pretty pictures B least dabbled or plunged into the can help you have a solid plan and build and not much content, then that may just digital world. Sometimes we can get so something to stick to in your digital build. be the best course to increase your sales. wrapped up in the latest trend, thinking we A lot of digital elements come back This may be an extreme example, but the absolutely have to participate in something, to a website destination. As much as fundamentals of what consumers want that we forget the strategy of why we were we have more tools like social media from you is no joke. doing it in the first place. So let’s take a outlets, ad campaigns and so on, they all moment to get your digital house in order. generally intend to bring consumers to Now that you have identified what you Remember, digital is simply a newer way a web destination where they can learn need to have on your site, consider the of accomplishing the same goals we used and interact more with your brand. Your journey people want to take to get it. If to use other methods for. The digital age website is likely your most crucial starting you’re about selling products, consider offers us the ability to analyze results much point to build a digital strategy around. Ask that you need the most logical user deeper than before, measure ROI better and yourself a few key questions. experience to get there. No one wants to change to meet consumer needs faster than 1. Why are you having people visit your site? read confusing or superfluous content, but ever before. Is it to drive direct purchases, to educate ensure that you meet the basics of what or do you simply want people to know everyone expects to see: straightforward FIGURE OUT YOUR GOAL who you are and where you are? details like contact info and a bit about who A great guiding light to keep in mind as 2. Why do people want to visit your site? The you are. But unless that’s the only reason you align your digital strategy is what crucial difference here is between why you people come to your site, it shouldn’t be at you’re trying to do with all your digital want people visiting your site and why the forefront of the experience. STORE MANAGEMENT FLE
It’s nice that you’ve done a company team- about how your “XX” brand of paints is amount of readers who open the document building exercise, or installed a new sign, used to create a great ambience during the and what percentage of people also clicked but is that what people are really coming to light of the setting sun in August, or would on your promotion. I’ve personally used your site to learn? Make sure the less useful they rather you gave them the hard sell on this level of detail to then deliver improved info is either lower in the clickable priority the latest product you’re pedaling? experiences and deeper engagement in or omitted from the site altogether. Social media is for social engagement. I every subsequent communication. You can also analyze how people are wouldn’t recommend taking it so far as to using it to help you set up the site to be more talk about the company picnic, but do engage ASSESS AND CHOOSE effective. You can measure, using tools like in inspiring content that draws people in. YOUR NEXT STEPS Google Analytics, which pages get traffic, When a customer decides they want to learn SEO and SEM are two acronyms you will and then work to have those brought to the more about your inspiring content, they’ll hear tossed around at length. To make it forefront. This can also tell you what your go to your website. In the digital world, that simple, SEO (search engine optimization) is consumers are looking for. whole transaction transitioned from social the measurement of how high your website media to a website, to a possible purchase in comes up in search engines when someone INVEST IN YOUR PRESENCE less than 10 minutes. Success! types in keywords. Those keywords could be There are a lot of other tools that can help your company name, or it could be about the round out your web destination. If you buy (LEGALLY) PUSH YOUR MESSAGE product/service you offer. This has a lot to into a common platform, the opportunity Some elements of social media can also do with how your website is built, including to rate and review your business can be be used in a B2B method. If you’re in a content types and keyword listings. Don’t a tool that you can build customer trust technical, fast-changing product or service underestimate the power of this. with. You also have the option to syndicate environment, you can use a tool like Twitter SEM (search engine marketing) is your reviews out or build reviews into your to inform customers of delivery updates, the active side of creating digital ads for site. This content can increase your value process enhancements, etc. Just be sure you customers who have a specific profile you offering and also increase your search know what your audience wants to hear and are seeking to attract. You can drive both priority profile. use the right social tool to accomplish it. ad content, but also bid on search keywords My recommendation is to link up with a Another method at your disposal is to to bring up your overall score. This goes credible web development group that can push your message out using direct e-blasts. beyond basic knowledge, so unless you plan help you navigate some of your options and Consider this a fancy name for direct mail, on building a core competency in it, I suggest show you how to build your best website. in the digital forum. There are a few major using a service to help you along here. Avoid cutting corners. Websites are a living, advantages here: this is an active effort, This is simply a sampler of the key steps breathing, digital document collection, instead of posts or sites which can be deemed to get your digital house in order. A website, which will constantly require updates and passive. Scale doesn’t cost you nearly as much social media, e-blasts, SEO and SEM. changes. If you short-cut something, it as older methods and you can measure every There’s a lot more, but this certainly helps to will come back to bite you later. little bit of your readers’ response. get you started. Before you go further than Now that you’ve taken Building a digital customer mailing list that, be sure you think first about what your the time to think of what is a cautious exercise in Canada, though. objectives are and what your customers information you need to have CASL (Canada’s Anti-Spam Legislation) want from you in that arena. Keeping this on your website and you’ve is a concept you need to understand. as a guiding principle will help you to craft consulted with a great web This regulatory set of laws outlines rules a digital customer experience that meets developer, what’s next? You can add in Canada of how you gather consented their needs and maintains your focus. It will in the other facets of how you interact consumer digital contact info, how you also ensure you keep evolving towards your with your customer. store it and how you share it. There are ultimate strategic decision. Social media is a hot button issue that lots of regulations and restrictions. It’s best has everyone thinking they need to be to seek understanding and explanations Lyndon Madden is an 18-year con- part of the party. My advice would be directly from a legal source. sumer goods marketing executive to consider social media as just that—a Once you’ve taken the right steps and who has worked with many small party. At a party, what kind of things do legally built a list, you can start e-blasting and large brands. He is passionate about you think others would want to hear your news to your customers. If you use the bringing thoughtful business strategies to from you? Would they want to hear right tools and formats, you can measure the build long-term brand success.
46 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca OUR MISSION TORBSA Limited is a shareholder-owned buying group of independent building supply companies. TORBSA works to provide its shareholders with a competitive edge by way of purchasing power.
OUR SHAREHOLDERS TORBSA is a growing member-owned and directed buying group located across Canada. TORBSA members maintain their independent business identities, while also volunteering their time and expertise. We work together to ensure the success of the group.
OUR SUPPLIERS At TORBSA, our goal is to facilitate strong buyer/seller relations across a broad breadth of products. These mutually beneficial relationships focus on information, product knowledge, and market insights.
OUR ADVANTAGE Competitive marketing programs from major suppliers. Increased purchasing power for your buying dollar. Retain your business identity. Membership means being a shareholder, not a customer. Full disclosure of all negotiated marketing programs. Long-standing trade association representing shareholders since 1966. Shareholder’s information is kept confidential. Shareholders purchase directly from manufacturers. Timely payment of earned rebates. Shareholder approval of annual audited financial statements.
Looking to join or need more info? Check out our website www.torbsa.com Contact Bob Holmes 905-857-5811 | [email protected]
AD INDEX ADVERTISERS: FOURTH QUARTER / 2019
Ace Canada King Marketing Ltd. www.acecanada.ca 33 www.kingmkt.com 3 Auto-Stak National Hardware Show www.autostak.com Insert www.nationalhardwareshow.com 35, 37 BeOnStone NRHA Canada www.beonstone.com 41 www.nrha.org/membership 43 BMR Group Orgill Canada www.bmr.co/becomeadealer 45 www.orgill.ca/about-us 51 Burlington Merchandising & Fixtures (BMF) OS&B www.bmfonline.com 31 www.osb.ca 29 Diablo Owens Corning www.diablotools.com 20, 21 www.owenscorning.ca 6 Great Stuff Insulating Foam Sealant RONA www.greatstuff.com 39 www.rona.ca/becomeRONA 11 JELD-WEN Sexton Group www.jeld-wen.ca 2 www.sextongroup.com 17 Hardlines Dealer News Storesupport Canada www.hardlines.ca/dealernews 49 www.storesupport.ca 19 MAAX Taiga Building Products www.maax.com/utile 27 www.taigabuilding.com 25, 52 Home Hardware Stores Ltd. TORBSA www.home-owner.ca 4 www.torbsa.com 47
IN THE Spotlight on the 2019 ORA winners NEXT PLUS: Planning for succession planning; Highlights of the Hardlines ISSUE Conference; Lawn and garden trends OF HHIQ: from Germany’s spoga+gafa show. HOME IMPROVEMENT QUARTERLY
Publication Date: January 10, 2020 • Ad Reservations: November 27, 2019 (contact [email protected]) • Ad Material Due: December 11, 2019
48 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca Introducing Hardlines Dealer News This monthly newsletter will bring you news, tips and trends for running your store better.
Each issue features: • News to help store owners and managers stay current on the latest trends in their market;
• Tips for smart retailers who want to identify ways to manage their operations more successfully;
• Insights to help dealers hire smarter, merchandise better and manage ÃËÚąæ¬õ½üɐ
• Concrete ideas for managing budgets, merchandising products and identifying best practices.
...and much more!
Sign up today for free HARDLINES.CA/DEALERNEWS ENDCAP FLE KNOWLEDGE DRIVES THIS YOUNG RETAILER Kevin Harris has spent more than half his life learning the family business. Poised to take over from his father in the next year, he’s determined to keep learning the rest of his career. BY SIGRID FORBERG
Kevin Harris (centre), will be taking over the family business from his parents, Ron and Tracey, next year.
evin Harris started his career at the believe we’re already at the point where I’m plan to do that,” says Harris. “The store is age of 17, merchandising the family going to be taking over, but my dad just completely changed; it looks like it’s dou- K store, Harris Home Hardware, in had an amazing training plan set up and bled in size.” London, Ont. By 21, he was store manager. it works great.” Sales are already up 10 percent this “I was managing a big staff with many Harris also credits his foundational years, year—and that’s even with bad weather people twice my age,” Harris says. “My dad learning every department of the store at the beginning of the year factored in. has always had a way of putting me in situ- through merchandising them, as helping Harris was recognized for his efforts with ations that he knew I could handle, even if him learn the business inside and out. “The the Young Retailer of the Year award for I didn’t think I could.” best thing anyone can learn to do is how the category of over $2 million sales from His father, Ron, was confident Harris to merchandise,” says Harris. “You have the North American Retail Hardware could handle whatever was thrown at him to have great displays to have a great store. Association (NRHA) this past spring. because he sent him on every course, semi- Everything else flows out from there.” With the major remerchandising done, nar and knowledge session they could find. With that solid base, last year, Harris and the succession transition about to “Learning is something I’m going to do undertook his proudest accomplishment— start, Harris doesn’t intend to start any until I retire,” says Harris. “I’m going to a complete renovation of the store. He other big projects for the next little while. soak up all the knowledge I can. I think the spent a year planning, bringing his designs But that doesn’t mean he’s planning to more knowledge you have in the hardware home and perfecting them in his down stand still. industry, the better you’re going to do.” time. With his father’s approval, he and “I think for the next year I might take Harris is now poised to buy his father out his brother completed the project in just it easy,” he says. “But there’s always little and take over running the business next year. over two weeks. things to do. And of course, I’m looking “Each year, my dad kept giving me more “I wanted to get the best out of the store, five, 10 years down the road. There’s a lot and more and more,” says Harris. “I can’t and it was important to me to find the best to look forward to; I can’t wait.”
50 FOURTH QUARTER / 2019 Hardlines Home Improvement Quarterly www.hardlines.ca Proudly Independent With Orgill’s support, we can spend more time serving our customers.
“Orgill’s wide array of products, competitive pricing and world-class Dealer Markets help us move our business forward.” Gary Cartlidge l Minor Bros. Country Living, Ontario l An Orgill customer since 2017
A Fresh Start A Strong Partner “We had to quickly rebuild one location due to a catastrophic “The breadth of selection, speed of service and overall fire. Orgill helped put together a plan and created a new support we’ve received made Orgill a logical choice store layout, and they got our orders in immediately so we of partner for us.” could get right back to selling and serving our customers.” Going Above and Beyond Serving Our Customers “We are continually impressed by Orgill. Their fill rates, “Our goals are to spend less time buying and more time on-time delivery, ease of ordering and attentive service is serving our customers, and Orgill’s support allows us to truly unique and exceptional. Orgill is not only delivering do just that.” on these expectations, but is going above and beyond.”
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