HHIQ Q1 2020

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Canada

Canadian

SIGRID FORBERG, EDITOR

HINDSIGHT IN 2020

So much has changed in recent years, but bricks-and-mortar dealers needn’t worry about fussing with what ain’t broke about their business model.

It’s hard to believe that Y2K was 20 years ago now. Back then, we were scared that the computers of the day weren’t intelligent enough to manage the change to the new millennium and would cause an entire societal collapse.

When it comes to technology, a lot has changed in those two decades. I recently saw a Twitter thread about a teenager whose mother took away her smartphone and the teen then figured out how to Tweet from her parents’ smart fridge. It’s a brand-new world.

Technology has impacted every corner of retail—what and how dealers sell, how they find, train and manage employees and how they communicate with (or market) to customers. Of course, the core of the business—the retail fundamentals of customer service—remain the same.

Our cover feature shares the stories of the 2019 Outstanding Retailer Award winners. We outline what makes these eight stores stand out from the crowd. A common thread each of these very different retailers from across the country share is an ability to think outside of the box. Their companies or communities have suffered setbacks and difficulties, but these eight businesses are resilient and innovative—and honour their commitments. As one winner, John deRegt

from Wolf Creek Building Supplies, puts it: “Our word is good. What we promise, we deliver.”

Also in this issue on page 42, our writer John Caulfield explores the ways retailers across the country are working to reduce

their exceptional employees. Our first contribution comes from a Home Hardware dealer in southern Ontario. Don’t miss this great story on page 20. (And if you’d like to share the details of your own amazing staff members, please contact me!)

This issue also launches a new section I’m personally excited about. For the last few months, we’ve been soliciting submissions from retail owners and managers about their exceptional employees.

their shrinkage. There are countless new gadgets or programs to help retailers stay on top of their loss prevention, but at the end of the day, alert and well-engaged staff members play an important role.

When it comes to staying on the leading edge, there’s no more comprehensive show than the massive spoga+gafa lawn and garden show in Cologne, Germany. Page 40 has our photo spread of the most interesting and innovative trends featured at the show late last year.

This issue also launches a new section I’m personally excited about. For the last few months, we’ve been soliciting submissions from retail owners and managers about

After everything that’s happened since those clocks hit midnight on December 31, 1999, not much has actually changed for front-line retailers. And it’s comforting to think that in another 20 years, all the crises of today that seem apocalyptic may just have been blips along the way, as well.

“ ”

ONE CLICK AWAY FROM

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.

Good eye, Chemong HHBC. This explains so much. #lookofawinner

Da dun, da dun, da dun dun dun dun... Hickey’s spooktrunkular giveaway wasn’t evading capture this time. #thinkpink

It’s

Fruit flies bugging you? These @terroinsect fruit fly traps are amazing. They have a fast-acting formula to lure fruit flies, and best of all, they look like apples! #hardware #hardwarestore #toronto

#babypoint #smallbusiness #localbusiness #neighbourhoodstore #shoplocal #supportlocal #product #babypointgates #shoplocaltoronto

#westtoronto #independenthardwarestore #diy #bloorwestvillage #junctionto #insecttrap

McMunn and Yates aren’t Kidde-ing around when it comes to safety. #timetocheck

Lowe’s Canada got a sassy social media manager and we’re living for it. #basicwitch

An apple trap a day keeps the fruit flies away? #doctorsorders

Home Hardware’s president and CEO, Kevin Macnab, has spent his first year in the role making massive changes at head office.

HOME HARDWARE CEO SEEKS STRONGER RELATIONS, BUT WITH FEWER VENDORS

Fully settled in his position as president and CEO at Home Hardware, Kevin Macnab has implemented a series of changes at the company, impacting all corners of its business.

Home Hardware’s president and CEO, Kevin Macnab, has been in place for just over a year, and his reorganization of the company has affected every corner of the business. Those changes have included a wholesale overhaul of the company’s buying teams, with new faces on board, and existing buyers taking on new portfolios. But behind the scenes, changes are unfolding that will impact Home Hardware’s vendor base.

For example, tougher guidelines are being put in place for vendors to bring the company more in line with standards imposed by other home improvement retailers and to make it more competitive.

Home is looking to rationalize overlapping or duplicate SKUs, especially among

suppliers who do less than $50,000 a year with the company or are listed in fewer than 50 stores. This, Macnab admits, may mean fewer vendors and fewer products for Home Hardware over time.

There’s been much talk around head office about changing Home Hardware’s focus from that of a wholesaler to one of a retailer. That refers to being more attentive to the perceptions of the end consumer, “whether it’s a pro, DIY or furniture shopper,” to see the company “from a consumer lens,” Macnab says. “It’s a different focus.”

It doesn’t mean ignoring the reality of Home Hardware’s role as a wholesaler, but with a look at the end user. So yes, meetings with suppliers have challenged them to

review assortments, marketing programs and data, using it in different ways.

“It’s about building a business with our supplier partners,” Macnab explains. “That means adding programs rather than just products, while relying on vendors in a way that goes beyond just dollars. Which vendors want to lean in with us?”

Macnab expects the process to result in a reduction of vendors, and more reliance on the ones who remain. “We’re about growth—and vendors will have more clearly defined expectations of their roles.” These will include those fines for incomplete orders. He says the goal is to strengthen relationships with vendors, but part of that is expecting vendors to live by their commitments.

NEWSROUNDUP

owe’s Canada has brought its store detailing services in-house with the development of a new team, called the Merchandising Service Team (MST). The program originated with Lowe’s Canada’s U.S. parent, which introduced MST there at the beginning of 2019.

MST teams are composed of between five and seven store associates whose role is exclusively focused on merchandising tasks. They’re responsible for executing resets, but they’re also expected to “snake through the store” to carry out bay servicing. That includes ensuring planograms are properly executed and that labels are all accurate. The MST team must maintain product displays, readjust elevations and reposition products, while providing feedback on merchandising strategies.

According to Anne-Sophie Konrad, senior director, field merchandising for Lowe’s Canada, the goal is “to ensure a steady pace in maintaining merchandising programs in our stores so that they are ‘grand opening ready’ at all times and that customer experience is always at its best.”

To ensure that outcome, the new service team has been put through the necessary paces. “We invested significantly in our new staff, who received a full week of detailed training on what is expected when we do a reset, planogram maintenance, etc.,” says Konrad. “Our goal is for our MST staff to bring standardized expertise to Lowe’s stores and their customers.”

So how is MST different from what was in place before? Konrad points out

two main distinctions. First, she says, the new system takes pressure off employees and allows them to focus on their regular tasks. “The new MST team reports to the merchandising business unit and are 100 percent dedicated to merchandising tasks.” This, she adds, will further allow the resets to be more consistent from store to store.

“The second difference relates to our vendors, who benefit from the fact that our MST staff cater to all our bays and products,” Konrad says. “As a matter of fact, the program results in improved merchandising quality throughout our stores,

so our stores are more attractive and the overall customer experience is enhanced.” How has the program measured up so far? Konrad is positive about the initial progress. “I must say that we are very pleased with the results to date. Our stores look better, but we are also increasing our speed to market, which is positive for us, for our vendors and for our customers.”

OF THE HOME IMPROVEMENT INDUSTRY Visit Hardlines.ca for breaking news in the Home Improvement Industry

Lowe’s Canada MST teams are composed of between five and seven store associates whose role is exclusively focused on merchandising tasks.

A YEAR OF CHANGES AT HOME HARDWARE REFLECTED AT ITS LATEST DEALER MARKET

There was something different about the latest Home Hardware Market, which concluded last fall at the company’s head office and warehouse in St. Jacobs, Ont. Under the theme “Share the Vision”, the event kicked off with a presentation by HGTV’s Scott McGillivray on renovations and return on investments. Beauti-Tone’s 2020 paint colour of the year was also unveiled during the market (it’s called “Honey I’m Home”).

The differences from previous markets were evident upon walking into the market itself. These included more emphasis on housewares, careful presentation of private labels according to programs rather than just products, more thoughtful grouping of Home’s various services to its dealers and a first-ever marketing strategy meeting for Home’s LBM dealers.

Additionally, there was a buzz that was generated around the show floor. That buzz was largely positive—and reflected the overall acceptance of the changes occurring.

The momentum of change is apparent everywhere. Home Hardware’s president and CEO, Kevin Macnab, had been in place for almost a year, and his reorganization of the company has affected every corner of the business.

Those changes have included a wholesale overhaul of the company’s buying teams, with new faces on board, and existing buyers taking on new portfolios. Reactions of vendors to new expectations from the company’s overhauled buying teams have been largely positive, if somewhat tentative. And dealers have been much more accepting of the transitions occurring under Macnab’s leadership.

This acceptance translated into an upbeat market that found dealers and vendors alike generally energized by the changes that have already taken place and the ones to come.

BRIEFLY

TORBSA APPOINTS NEW BOARD, BOARD PRESIDENT

TORBSA Ltd., the Ontario-based buying group for building centres and commercial yards, has elected Greg Drouillard of Target Building Materials in Windsor, Ont., as its president of the board for the year ahead. The board of directors is now composed of Greg Drouillard; Dante DiGiovanni, VP operations, Blair Building Materials; Blaine Carter, VP, Woollatt Building Supply; Len Hewson, treasurer, Hewson Brothers Supply; and Steve Guglietti, secretary, Pro Con Building Supplies.

RONA STORES PULL TOGETHER FOR FOOD BANK

Four corporate RONA stores in the Outaouais region of Quebec handed over a $217,000 cheque to Moisson Outaouais as part of the 2019 Loto-Moisson campaign. The stores have supported the food bank since 2011, and in 2013, created the annual fundraising campaign, which raises thousands of dollars each year through the sale of tickets at the four stores and other points of sale. Since 2011, the Outaouais RONA corporate stores have presented a grand total of $1 million to the Moisson Outaouais.

TIMBER MART FUNDRAISES FOR CHILDREN’S WISH FOUNDATION

The Children’s Wish Foundation held its annual TIMBER MART Heroes Challenge last fall in 14 cities across Canada. Corporate teams competed in a variety of challenges, each pledging to raise $10,000. All told, this year’s challenge raised more than $1.2 million to put toward the cost of granting wishes for children with life-threatening illnesses.

BMR ADDS FIRST QUEBEC PRO STORE WITH NAUD CONVERSION

BMR Group, along with an existing BMR dealer, Pierre Naud, has opened the first BMR Pro store in Quebec. The concept, the result of a $2 million investment, is located at 2250 Boulevard des Récollets in Trois-Rivières and will serve as a flagship store for the Pro network.

BMR opened its very first BMR Pro in Ontario last year. Griffith Building Supply, in Greater Madawaska township, had a grand opening in the middle of May.

The Pro concept, part of a series of sub-banners for BMR to better define the offerings of its respective store formats, is aimed at handymen, contractors and heavy DIYers. It offers a range of building materials at very competitive prices, tailored to the quality needs of pros. The new store boasts a modern, industrial look that extends to the layout of the aisles, the design of the store and the entrance reserved for contractor customers.

“We are very excited to unveil the very first BMR Pro in the province. This is a new concept that reasserts BMR’s expertise

in the building materials industry. Simply put, our store is where contractors feel right at home,” says Pascal Houle, CEO of BMR Group.

The pro format marks a new beginning for the Trois-Rivières Pierre Naud store. In September 2017, it was destroyed by fire only weeks after the completion of a major renovation. The Lebel brothers continued their business activities from a construction trailer while their store was being refitted.

Owners, brothers Marc-André and Phillipe Lebel, pictured at the opening flanked by Hugo Girard, strongman and BMR ambassador, and Pascal Houle, CEO of BMR Group, along with Jonathan Gendreau, BMR’s marketing and commercial design VP, and Robert Auboin, Trois-Rivières’s former MP.

ONTARIO DEALERS CAN ACCESS REBATES FOR SELLING ENERGY-SAVING PRODUCTS

Anew program from the federal government will enable consumers to garner significant savings on energy-saving products, while giving retailers an edge to sell a range of related products.

Last fall, the then-Minister of Environment and Climate Change, Catherine McKenna, announced the launch of the Energy Savings Rebate program. Through the program, a total of $200 million over two years will be provided to Ontario retailers to offer up to 25 percent off the purchase price of specific energy-saving products. They include Energy Star-certified washers and dryers, smart thermostats, room air conditioners, dehumidifiers and refrigerators.

Ontario consumers who purchase new energy-efficient appliances—like washers, dryers, dishwashers and refrigerators—can save up to $500 per item and up to $1,000 on water heaters and heat pumps, through this initiative.

Participating retailers include Lowe’s Canada, Canadian Tire, Best Buy Canada,

Catherine McKenna (far right) made the announcement at a press conference at the RONA North York store in Toronto.

(Also on hand: Carol Crystal, merchandising VP at Lowe’s Canada; Ali Ehsassi, Member of Parliament for Willowdale; and Bill Goguen, Regional VP of operations at Lowe’s Canada.)

Tepperman’s, and scores of others, big and small, across the province.

About $200 million is available to retailers through the Energy Savings Rebate program. The maximum level of funding available per eligible applicant is $2.5 million for retailers with locations in one to four municipalities and $25 million for retailers with locations in more than five municipalities.

The application process for retailers with locations in five or more municipalities is already closed. But retailers with locations in one to four municipalities can apply until March 31, 2020, or until funding is exhausted. Results will be communicated as applications are assessed.

BRIEFLY

CANAC EXPANDS DISTRIBUTION NETWORK

Canac acquired a one-million-square-foot property adjacent to its Drummondville distribution centre, just days before it wrapped up work on an expansion that will double its previous size. The current second phase of the expansion takes the facility from 350,000 to 560,000 square feet. Representing a $15 million investment, it has allowed the creation of about 40 new jobs. Details of the coming phase three are still to be released, but President Jean Laberge says it will create even more jobs and involve advances in automation. The distribution centre was originally built in 2015 at a cost of $30 million.

ZELLERS OFFICIALLY EXITS CANADA

The last two Zellers stores, located in Toronto and Ottawa, are to close in January, Hudson’s Bay Co. says. Eligible workers will receive severance packages and where possible, HBC will explore opportunities for them within the company, according to a statement from a company spokesperson. Zellers got its start in 1928 with four Ontario stores and came under HBC’s sole ownership in 1978.

WALMART EXPANDS ONLINE DELIVERY TO QUEBEC

Walmart Canada has extended its online grocery delivery service to the Montreal area, meaning the service is now available in markets in every province. Customers place orders on Walmart’s website or the Walmart Grocery app and can receive their purchases at home for a fee of $9.97 on orders of $50 or more.

HOME DEPOT COMPLIES WITH CRA DEMAND FOR CONTRACTOR NAMES

A

fter a three-year battle, Home Depot Canada has complied with a court order issued on behalf of the Canada Revenue Agency to disclose the retailer’s list of customers using its commercial credit card program. In an effort to crack down on the underground economy, the CRA is targeting contractors to determine who is being paid under the table.

Home Depot Canada was the last holdout among home improvement retailers that were instructed to comply. The campaign started three years ago, and in August 2017, RONA was a holdout, as well, taking its fight to the Supreme Court to resist the CRA’s demand for a list of its commercial clients.

The Canada Revenue Agency wants to verify that purchases made by contractors from various home improvement dealers match their tax declarations. Other retailers, including BMR and Patrick Morin, agreed to provide similar lists early on.

According to a report by Statistics Canada, the underground economy in Canada was estimated at $51.6 billion in

2016, representing 2.5 percent of GDP. In 2016, three industries together accounted for more than half of underground economic activity: residential construction (26.6 percent), retail trade (13.5 percent) and undeclared tips among workers in accommodation and food services (12.1 percent).

In the past, federal tax credits played an important role in eliminating some of the underground economy. Following the worldwide recession a decade ago, the feds instituted a tax credit for home repairs and renovations. Homeowners could get back 15 percent of eligible expenditures on home renovations between $1,000 and $10,000 made during the 2009 tax year.

CANADIAN TIRE’S PARTY CITY BUYOUT PART OF A TREND TO CAPTURE “MICRO-SEASONAL” SALES

The sale of Party City’s Canadian retail business to Canadian Tire Corp. marks Canadian Tire’s serious entry into a new niche that targets birthdays, anniversaries and other life events at a personal level.

In addition to taking over its 65 retail stores, Canadian Tire will make a selection of Party City offerings available through its namesake banner both online and instore—either through dedicated aisles or a store-within-a-store format.

The deal was also a watershed for Canadian Tire’s Triangle Rewards program as the company seeks to make the most of its Triangle data while unifying its banners. “We’ve been looking at the party supply category for a while now and we’ve been putting our data to work,” MacDonald told analysts, adding, “Party City customers skew younger and spend 60 percent more at Canadian Tire than our average Triangle Rewards member each year.”

CANADA RANKS THIRD GLOBALLY FOR HOME IMPROVEMENT SPENDING

The market worldwide for retail home improvement sales reached € 594 billion ($861.7 billion) in 2018, and despite its relatively small population, Canada managed to rank number three overall. According to a report produced jointly by the European Federation of DIY Manufacturers and the Global Home Improvement Network, the market worldwide grew by 1.1 percent from the previous year, but it lags behind global GDP, which grew by 2.5 percent that year.

It also falls short of growth in the Canadian market. The retail home improvement industry here grew by 3.8 percent in 2018 (according to the latest annual Hardlines Retail Report). While not a banner year for Canada, its growth nevertheless managed to exceed the performance of many overseas markets.

That may also have something to do with why Canada, with the 10th-largest economy in the world (behind Italy and Brazil) ranks as the third-largest market in the world for home improvement sales—behind the U.S. and Germany.

In fact, 58 percent of worldwide home improvement sales are generated in North America, says the report, accounting for € 343 billion ($497.6 billion). By comparison, the second-largest market is Europe. With overall sales of €173 billion ($251 billion), it comprises 29 percent of the market worldwide.

North America and Europe together represent approximately 87 percent of this market, a combined € 516 billion ($757 billion).

Approximately 81 percent of the global DIY market, some € 482 billion ($707 billion), is concentrated in only eight countries: the U.S., Germany, Canada, Japan, U.K., France, Australia and Italy.

ORGILL SHOWCASE

Curious about some of the products you may see at the Orgill Spring Market in February? Here, we’ve curated a select few. And if you’re headed down the Orgill Dealer Market in Orlando, February 27 to 29, retailers should be sure to swing by our Canada Night event at B.B. Kings, on the evening of February 27 at 6:30 p.m. to meet some of the vendors below, who are sponsoring the event.

Weiser Halo WiFi touchscreen smartlock

Coming this spring from Weiser, the Halo smartlock easily connects to the home’s WiFi, allowing you to lock or unlock your door using the Weiser app from anywhere there’s an Internet connection. You can also use the app to:

• create up to 250 custom user codes to • set schedules for custom user codes share with friends, family and guests • receive notifications of the lock’s activity

• create, disable and delete codes • view the lock’s event history

Show contact: Brian Crouch www.weiserlock.com/halo

EAB New Exchangeable Drill Bit Program

EAB Exchange-A-Blade will be launching a new exchangeable drill bit program that will save you money and cover all your drilling needs. All products are exchangeable and have passed rigorous tests to ensure you get the best quality products. Some of the product lines included in the program are Multi-Material drill bits, Spade drill bits, Cobalt drill bits, Counter Sink drill bits, Ship Auger drill bits, Titanium drill bits and Black Oxide drill bits to name a few. Not only do you save on top quality drill bits, but you also get to help the environment. Find out more at EABTool.com. Show contact: Danny Wight www.eabtool.com

Freud 6‑1/2 in. x 24‑Tooth Tracking Point Framing Saw Blade

The Tracking Point tooth design acts as a “rudder” to provide straight cuts and control carbide wear on the tooth for up to five times longer cutting life versus other blades; doubles the carbide surface area for greater impact resistance and double the durability in nail-embedded wood; and delivers extreme cutting efficiency in corded and cordless saws by offering 65 percent more cuts per battery charge in cordless saws versus other blades.

Show contacts: David Sparks and Marco Di Ilio www.diablotools.com

Pfister Karci

The Karci family is ready for your family, with bold lines and just the right amount of curve to portray enduring elegance. This artistic blend of angularity balanced with a touch of softness makes Karci feel as good as it looks. For a beautiful refresh or as the basis to build a whole new vision, this is the beginning of a beautiful relationship. Show contact: Brian Crouch www.pfisterfaucets.ca

Imperial Manufacturing Group Imperial COLLECTION

Assortment

of Decorative Floor Registers

The Collection assortment of Imperial Decorative Floor Registers feature a durable electroplated faux metal finish to complement trending floor finishes and home décor.

• Superior electroplated faux finish

• 1.5 mm solid steel face place

• Adjustable multi-directional airflow

• High-impact polystyrene damper body, will not rust

• Crafted for beauty, durability and design

Show contacts: Steve Finlay and Anne Petry www.imperialgroup.ca

GSW Water Heaters

The GSW powered by Takagi condensing tankless water heaters are state-of-the-art and are Energy Star qualified with an Energy Factor of 0.95. Their primary heat exchanger is constructed of commercial-grade copper, which is more resilient against erosion.

Show contact: Kim Laurette www.gsw-wh.com

DuPont GREAT STUFF SMART DISPENSER Family

Meet the new, reusable SMART DISPENSER™ Family of Products. This next generation of foam sealant dispensing is a game-changer:

• Reusable for up to 30 days

• No drip dispensing, eliminates mess

• Fills gaps efficiently and quickly

• Available only from GREAT

• Easy to use, greater control STUFF Insulating Foams!

Show contact: Sue Swing www.greatstuff.dupont.com

“A GEM EVERY STORE SHOULD HAVE ”

In

Sarah Brun, our store manager, is a gem every store should have. She started with us in 1994 as a student and helped us build Westgate Village Home Hardware from the ground up. On opening day, she single-handedly rang through 80 customers an hour and balanced her till to the penny. I have told that story to hundreds of cashiers over my career. In 1998, the store was recognized as the best hardware store under 5,000 square feet in Canada by the Canadian Retail Hardware Association. Sarah eventually moved to Ottawa with her husband and ran a Home Hardware store for a few years. We lost touch with her when she began her family.

A couple of years ago, while we were renovating the store, Sarah showed up one day and volunteered to help. We hadn’t seen her for over a decade, but apparently, she had raised her family and was looking for something to do. At first, she just worked a few days a week,

moving fixtures and merchandising, but her drive to have the best store again took over and it wasn’t long before we pleaded with her to become the store manager.

Since then, our store has blossomed. Sales have increased more than 35 percent since the renovation, but more than that, our customers love coming in to see her and the rest of her team. On a weekly— and sometimes a daily—basis, a thankful customer sends her flowers, a note, cookies or brings her a Timmies. In my almost 30 years owning Home Hardware stores,

I have never experienced the response Sarah receives from her customers.

The crowning glory came, however, from one of our competitors. A Lowe’s store needed help for one of their customers and Sarah gave them the typical “Sarah service experience”. They were so impressed, they contacted Home Hardware head office and gave her a great commendation. When an employee gets that kind of praise from a competitor, you know you have something special.

— L en Greig, Westgate Village Home Hardware, Cambridge, Ont.

Does someone on your team deserve a special shout out?

We know your retail staff are hard-working, thoughtful and innovative—and we want to help you tell their stories. This column is your chance to recognize your store employees for all the things they do, big and small. Contact our Editor, Sigrid Forberg (sigrid@hardlines.ca), with the details of how your customer-service champions, product-knowledge prodigies or natural leaders go above and beyond every day to make your store successful and improve their colleagues’ and customers’ lives.

Sarah Brun STORE MANAGER Westgate Village Home Hardware Cambridge, Ont.

Working for our members every day.

Price competition is the name of the game in our business, so we need every advantage we can get when it comes to purchasing. Volume is the key to buying competitively, so the stronger we are as a group, the more we increase our competitive advantage, which allows us to win more jobs in our marketplace. Being a part of the Sexton Group is a game changer for us.

Dave Pratt

Tarpin Lumber & Truss

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.

Hear about our story at 1. 800.665.9209

Learn about our story at sextongroup.com

Well connected.

So you can focus on what matters most — your business.

Launched in 1992, the Outstanding Retailer Awards (ORAs) are the industry’s only national awards program dedicated to celebrating the achievements of hardware, home improvement and building supply dealers in Canada. In its 27-year history, the program has honoured nearly 170 retailers.

The winners for 2019 represent a variety of sizes, store formats and banners within the industry, and hail from across the country. These are some of the best retailers in the country and we’re proud to celebrate them.

For more information on the ORAs, or how you can apply for this year’s awards, visit www.hardlines.ca/events/oras/

PHOTOS: ASHLEY SAVAGE

This year’s Outstanding Retailer Award winners are not just successful retailers, they are the heart of the communities they serve.

(l-r standing) Alana O’Neill, John deRegt, Michelle deRegt, Darin Janzen, Justin Petelski, Doug Nelson, Jacynthe Matteau, Christian Leduc, Nelson Lemos, Marilyne Laferriere, Sylvain Laferriere. (l-r sitting) Brad O’Neill, Jeff Redden, Ahsan Rana, Rebecca Wichers-Schreur.

Marc Robichaud Community Leader

2019 Outstanding Retailer Awards

L’ENTREPÔT RONA GATINEAU (LE PLATEAU) WINNER

This RONA in the Plateau neighbourhood of Gatineau opened in 2005. Ten years later, it became a corporately owned store.

Just across the river from Ottawa, Gatineau’s local economy is primarily based on the federal public service. Competition is high, with at least five other stores within 15 kilometres. But the store has managed to see steady sales increases and turns over the last few years. And it’s been growing its online presence—since RONA launched its e-commerce site in 2016, the Le Plateau store saw web sales grow 30 percent in just one year.

They’ve also been pushing installed sales through the SmartLowe’s program, and appliance sales were projected to account for huge numbers in 2019.

Employees work hard and management makes sure to recognize them for it. Employees train continuously with a plan tailored to their position and professional growth. Full-time staff members are entitled to life, dental and drug insurance. And at the beginning of each school year, employees who are full-time students are offered scholarships ranging from $300 to $500.

Manager Christian Leduc says the store’s former owner, Martin Lacasse, felt strongly about being involved in the community, and his legacy of mutual support and generosity continues to guide the store to this day.

The Le Plateau store takes community involvement to a new level. It all started in 2011 when the local food bank, Moisson Outaouais, was unable to keep up with demand—one out of 27 citizens and one in three children were going hungry—and they needed help.

The store started selling bricks for $5 to help Moisson Outaouais build a new warehouse. Together with another RONA store, it sold 20,000 bricks, raising $100,000. And in 2014, the store started a lottery and partnered with other retailers to raise more funds. In the lotto’s first year, they actually ran out of tickets.

The lotto has now become a major event in the area. It’s promoted widely in the news, and local sports teams have even been known to show up at the store to support the initiative.

Last year, the store raised a record-breaking $75,000. And since 2014, they’ve raised more than $300,000 for the food bank.

While the lotto is the store’s main charitable focus, staff still make time for other initiatives. In 2018, the store raised money to help renovate a local shelter for victims of domestic violence. And staff donated

more than 300 hours of work to revamp the house.

They also contribute annually to the Children’s Miracle Network and the Charles-Bruneau Foundation for pediatric cancer. Christian says it’s important to note that everyone on staff gets involved in community work in one way or another.

In 2019, their efforts were recognized by Lowe’s Canada with the Community Engagement Award. Staff were presented with a trophy, $1,000 to plan a celebration and $5,000 to spend on a community project.

Catharine Leko (left) of Techniseal, sponsor of the award, presents the award to store manager Christian Leduc and his wife, Jacynthe Matteau.

WINNER 2019 Outstanding Retailer Awards

LOWE’S CROWFOOT CALGARY

This store, which has served the Calgary community since 1995, went through a rough few years of negative sales. But all that changed in 2017 when Lowe’s brought on store manager Ahsan Rana. Ahsan hired two new assistant managers, and together, their team turned things around at this struggling store.

The change in management proved so positive that by 2018, Crowfoot’s sales increased by more than 20 percent and customer satisfaction was up by 18 points. The store has seen strong growth even as the local economy has been suffering and high unemployment has impacted the entire city.

While Calgary is the country’s fifthlargest metropolitan area, it is heavily dependent on the oil and gas industries. When the price of oil collapsed in 2015, the local economy underwent its hardest and longest downturn.

In the face of these challenges, hoping to turn things around at the store, Ahsan and his assistant managers reassigned department managers to areas where they felt most comfortable. With nearly 200 people on staff, they also aimed to get the team to pull together as a family, so they got a social committee up and running. The very active committee gets employees engaged through numerous get-togethers, potlucks and barbecues. These activities have helped foster close relationships between team members, who now thrive in the store environment.

Employee retention is crucial to keeping the store running smoothly. So not only are staff offered regular feedback, managers spend time working directly with their teams, offering in-the-moment coaching.

Both full-time and part-time employees receive guaranteed hours, medical and dental benefits, RRSP matching options and

sick pay. They also have access to bonus, vacation pay, tuition reimbursement and employee and family assistance programs.

The store also runs a “Star” recognition program to acknowledge and recognize employees, where the names of associates who get good customer feedback are written on a white board. From the names on the board, management does a weekly draw for a free lunch.

Because employees feel so appreciated, they pass that feeling along to customers. Ahsan describes Lowe’s Crowfoot as a neighbourhood big box store. Many employees and customers know each other by name. And word of mouth serves as their best

marketing tool. While there are a number of strong competitors nearby, they use that as motivation to push harder and aim higher to deliver a better experience for customers.

Giving back to the community they serve is a priority at Lowe’s Crowfoot. Staff volunteer and support a number of local fundraising initiatives. In 2018, the store raised more than $18,000 to help renovate a local school. And half-way through 2019, they had already raised $16,000 for the Children’s Miracle Network.

For their efforts, the team was recognized by Lowe’s Canada head office team for the Store of the Year Award in 2018 and Community Leader of the Year Award.

Sue Swing (right) of DuPont, sponsor of the award, presents store manager Ahsan Rana with his ORA.

WINNER 2019 Outstanding Retailer Awards

NORQUAY CO-OPERATIVE ASSOCIATION LTD.

orquay Co-op, a Federated Co-op member, was founded in 1948 by 10 local men to sell coal. Today, it’s still owned by its members, including some descendants of the original 10 and has expanded far beyond its initial aim. The store’s reputation for customer service is so strong that it has spread far beyond its own community of 500 residents, where agriculture is the main industry.

Manager Justin Petelski says, “We have customers coming in from communities all around us to check out the Co-op in Norquay, and then they come back and tell their friends about us.”

The company vision at Norquay Co-op is to be the best retailer in the region. Justin says everything they do is done with the best interests of the people and the communities they serve in mind.

One of the largest parts of the store’s success has been the growth of its farm shop business—the store builds and then sells pole shed cold storage and insulated storage buildings to farmers. Several years ago, they noticed there was a gap in the market— while they had been providing quotes for materials for these buildings, farmers often struggled to find contractors to construct them. So the store teamed up with a contractor who is an expert in farm building construction. By dealing with the contractor through the store, customers have one less thing to worry about.

Farmers will often refer other farmers because of how easy the process is for them—they’ve even sold these buildings two provinces away. Over the last seven years, the store has built more than 45 shops a year.

Until four years ago, Norquay Co-op’s retail business functioned as a single

department. Today, it has five retail departments—lumber, hardware, petroleum, agriculture and a convenience store—each with its own specialized team. That’s meant higher sales, which allowed the Co-op to add 3,500 feet of retail space and separate service counters for each of its departments.

The company’s biggest asset is its team— and Justin says they invest heavily in them. Norquay makes the most of FCL’s programs and services, as well as all other kinds of training available to them. Earlier this year, Justin completed a gruelling month-long manager training course in Saskatoon. And staff are encouraged to participate in

vendor, NRHA and FCL training as often as possible. In fact, last fall, the petroleum manager was recognized by FCL for her commitment to professional development.

Norquay Co-op’s focus on the local community goes beyond just providing quality products and great service. Since 2016, it has donated more than $3,000 worth of paint and stain to community groups through its Communities in Full Colour program. Whether it’s supplying food for school fundraising barbecues, mentoring students with special needs, or supporting a relay race for the local children’s hospital— the Co-op is at the heart of the community in Norquay.

Norquay Co-op’s Darin Janzen, Justin Petelski and Doug Nelson accept their ORA. The National Hardware Show sponsored this category.

Outstanding Retailer Awards

COBOURG

HARDWARE BUILDING

obourg’s store owner Brad O’Neill loves what he does—it’s in his blood.

Brad grew up in a family-owned retail business environment. It was always his dream to own a Home Hardware Building Centre with the most innovative and complete shopping experience imaginable.

In 2004, he took his first step towards making that dream come true. Along with his wife, Alana, and partner Joel Curtis, he purchased a Home Building Centre in town. And two years later, they opened Cobourg Home Hardware Building Centre.

The O’Neills are most proud of their large team, who are passionate, skilled and driven. Brad has created a motivating and stimulating atmosphere that encourages their success.

Training is a top priority at Cobourg HHBC—Brad describes himself as “thirsty for knowledge” and he shares that passion with his employees. The store even has a new, innovative boardroom—complete with an HD overhead projector to train multiple groups simultaneously—and a dedicated training area with computer terminals for online training or webinars.

Brad believes that to be an outstanding retailer, you have to have a genuine passion and drive to go above and beyond customers’ expectations. Customer service comes easily to his team because they always keep the store in tip-top shape. “We’re never chasing empty shelves or looking for products we may not have; we’re always focused on customers’ needs first,” says Brad.

Despite the presence of at least 12 competitors in a five-kilometre radius, Cobourg HHBC continues to be successful, seeing significant sales increases year after year. A lot of that is down to the work Brad invested

in the store’s design. When he was renovating the store, he travelled the country, visiting other Home Hardwares and HHBCs and picking up their best practices to create the most effective floor plan possible. And since the renovation, he’s opened his own doors to fellow Home dealers.

The look of the store has even attracted attention from Home Hardware head office. Brad proudly works with Home’s marketing team to film commercials and TV spots in the store.

Cobourg is known as Ontario’s “feelgood” town. Right on Lake Ontario, and just over an hour away from Toronto, it serves

a market of about 20,000, which Cobourg HHBC strives to engage as much as possible. When it comes to their community involvement, Brad says every charitable activity has to meet two purposes: to impact as many lives as possible and to focus on helping children and the less fortunate.

In 2015, he decided he wanted to make a real, significant impact on his community, so the store teamed up with the local hospital fundraising committee on an annual event. The event that then emerged, Bike Up Northumberland, has now raised more than $130,000 for essential equipment for Northumberland hospital patients.

WINNER

Danny Wight (left) of EAB, sponsor of the award, presents Brad and Alana O’Neill with their award.

WINDSOR HOME HARDWARE

With a population of 4,000, Windsor is located just 70 kilometres west of Halifax. An influx of commuters and retirees settling in the area has meant more customers for Windsor Home Hardware. Dealer-owner Jeff Redden’s mission is to exceed their expectations with friendly customer service and superior merchandise.

It’s a workplace culture Jeff inherited from his late father, Clarence, whose memory looms large. “Clarence is on our minds every day, impacting how we operate as a business,” says Jeff. Clarence’s guiding principles remain at the core of the store’s operations: to be kind and caring, and to treat customers like friends and staff like family.

The company got its start all the way back in 1876 as Wilcox Bros. Ltd. It was deep in debt and had been closed for several months when its founder’s grandson, Jim Wilcox, sold a half-ownership to Clarence Redden for a dollar and a handshake in 1960. Wilcox retired in 1985, and the Redden family took over the rest of the business. Jeff then joined the firm in 1993 and bought his father out three years later.

The business saw strong growth over the following two decades, but between 2013 and 2016, the community struggled through challenging economic times. Twenty-five local businesses closed while only eight new ones opened, resulting in the loss of more than 800 jobs from the area. Windsor Home Hardware struggled for four years and racked up considerable debt. But with aggressive cost-cutting measures, the business was able to reduce its debt and remain in business.

In keeping with Clarence’s example, employees are well taken care of with full medical and dental coverage, group RRSP and an employer matching plan. Jeff even provides bursaries for his employees’ children upon graduation.

Customer service comes with a personal touch at Windsor Home Hardware. One time, a customer rushed into the store with a broken toy. It was her child’s prized possession, and she was desperate for a replacement. Staff searched high and low for a replacement and when they couldn’t find one, offered her a full refund. With a miserable child at home, that solution wasn’t going to cut it. Finally, a team member, Mike, came upon the scene and was able to perform “surgery” on the toy. Mike successfully reconnected a few wires and it worked as good as new.

2018 Outstanding Retailer Awards

WINNER

The customer took to social media to relay the amazing service she received, and it went viral.

Staff show that same level of commitment in all their community interactions, whether it’s fundraising for the local hospital or junior sports teams, participation in Communities in Bloom, or charitable activities at Christmastime. Clarence believed that when you put community first, the business will follow. And that has certainly proved a winning philosophy for Windsor Home Hardware.

Dan Tratensek (left), of the NRHA, which sponsors the award, presents Jeff Redden with his ORA.

2019 Outstanding Retailer Awards

WOLF CREEK BUILDING SUPPLIES

ver the last 20 years, John deRegt has worked to grow his business from a single outlet to a three-store chain in central Alberta. His first location, in Lacombe, was opened in 1999. In 2016, he opened a second store in nearby Sylvan Lake. And then a year later, he purchased another location in Morinville, outside of Edmonton.

Motivated by his strong faith, and supported by a close-knit family, John believes everyone his company works with should benefit financially—and he takes his role in making that happen seriously.

In a field that’s highly price sensitive, he also feels that overpromising and underdelivering is too commonplace. Philosophically, he needs to be able to stand behind every decision the store makes. “Our word is good. What we promise, we deliver,” says John.

That commitment to being upfront carries over into how he deals with his staff. All his employees are treated with respect, receive regular benefits and everyone’s opinions and contributions are viewed as equal— regardless of their position in the business.

Training is very important for Wolf Creek Building Supplies. The training process for new employees is supported by long-term employees who have exceptional knowledge and experience. One of the most important lessons impressed on staff is the value of customer service. With a goal to out-service the competition, that service begins the minute a customer walks in the door. Everyone is greeted with a smile, and staff are encouraged to form strong working relationships with clients.

That commitment to service has helped the deRegts grow their business beyond their retail locations. In the last few years,

they’ve also branched out into designing and manufacturing trusses and supplying and installing insulation, drywall and windows. “Our mission is to out-service our competition and supply our customers with quality materials and an experience that demonstrates our exceptional knowledge and expertise,” says John.

In each of the communities they serve, John says his family strives to be deeply involved. From sponsoring a variety of fundraisers, sports teams and charitable organizations, they take their role in the community seriously. And their annual

customer

for each of their stores feature a barbecue, bouncy castle, treats and face painting—they even get their vendors involved in the day.

With a strong sense of their values and a commitment to quality products and service, the deRegts have experienced steady sales growth over the last three years. But financials aside, John is extremely proud to have the support of his three sons and a son-in-law in running the business.

“To be blessed enough to have my sons working with me on growing the businesses has truly been the biggest reward,” he says.

appreciation events

Johns Manville representatives Tommy Knappich and Gino Allegro present Rob deRegt and his wife, Michelle, with the store’s award.

Young Retailer

REBECCA WICHERS-SCHREUR, WOOD WORKS OF RENFREW

When Bruce Gannon and Laurie Wichers-Schreur purchased a struggling lumberyard in the Ottawa Valley in 2016, they were new to the industry and they realized they were going to need help. Rebecca, Laurie’s daughter, happened to be finishing her master’s degree in industrial relations, and ended up being a perfect fit.

In just a few years, Rebecca has helped her mother and stepfather turn around Wood Works of Renfrew—nearly doubling its annual sales. And her leadership has helped the business become the “go-to” for precise estimating and the sourcing of unusual materials and skilled services.

Rebecca has also been instrumental in carrying out a complete reset of the store’s hardware section, developing a kitchen and bath showroom, changing their paint supplier, crafting the business’s online presence and hiring.

In 2017, Bruce and Laurie purchased a lumberyard in nearby Burnstown which had been closed for several years. Rebecca not only managed the entire renovation, she oversaw the relaunch in spring 2018.

Both stores have a mission to provide the best possible customer service. Recently, the store manager at Burnstown was cashing out a regular customer. When the manager asked the man what he was working on, the customer revealed that he was purchasing stain and brushes to finish a hand-made wedding ring for his wife, crafted from the wood of a special tree on his family farm. The manager was touched, and he refused to accept payment. Laurie says that’s exactly the type of experience their business strives to offer their communities—and that Rebecca is directly behind that philosophy.

In fact, Rebecca was asked to speak about that approach at Castle’s 2019 annual general meeting. Along with Laurie, she spoke of offering “micro-experiences” in their stores. It’s those experiences that help both locations successfully compete with big boxes, the draw of bigger city shopping and online retailers.

Their employees play a crucial part in the success of the business. Rebecca knows retention is key to keeping consistency for customers. And so she involves employees in the growth of the business. She encourages them to try new things, make suggestions and then watch their ideas come to fruition. Rebecca knows firsthand how rewarding that can be.

The owners also support staff through regular training, providing coaching with their direct supervisors to cross-train them as much as possible. And they’ve instituted a group RRSP program, which

2019 Outstanding Retailer Awards

WINNER

employees can buy into and receive employer-matched contributions.

Rebecca has used her education and experience to help transform these two small lumberyards into 21st century organizations, complete with an active social media presence and online shopping capabilities. While sales through the online store haven’t been huge, the business has noticed that increased online traffic has translated into increased in-store traffic and sales. At just 27 years old, Rebecca has proven instrumental in the success of this family business.

Bruno Jean (left) from Taiga, sponsor of the award, presents Rebecca Wichers-Schreur with her Best Young Retailer award.

ACE VICTORY BUILDING CENTRE

Mackenzie is a remote town of just 3,800 people in the foothills of the Rocky Mountains. The major industry in town is forestry. In 2005, motivated by a frustration with a lack of products and services in the area, long-time residents Sylvain and Marilyne Laferriere decided to set that right.

Marilyne, who’d served as a barber for 23 years, was suffering from tennis elbow and had to find a new venture, so the Laferrieres purchased an existing business in town. Mackenzie Interiors was originally focused on home décor. The couple gutted and renovated the store to fit their needs. And they gradually began to add products like plumbing, bath, sinks and fixtures, basic electrical and lighting and then lumber and building supplies. And in May 2006, Sylvain left his position at the local mill to work in the business full-time.

Just three years after the store opened, all the major pulp and paper mills in town shut down. The community was struggling, and many residents left to find work elsewhere.

The Laferrieres set out to help their community, donating to local projects supporting youth, the homeless, nature—and a local wrestler, who was headed to the Olympics. The store even started hosting weekly adult dance classes in the flooring department. People in town rallied to keep spirits up. The town did recover, and the Laferrieres take pride in the fact that, while they’ve supported the community, the community has also always supported their business.

Ace Victory prides itself on its ability to offer exceptional customer service. The store’s strength lies in its commitment to

building relationships. The Lafferrieres also do their best to stock items that wouldn’t otherwise be found in Mackenzie—like boat masts. And they’ve diversified their services to fulfill the populations’ needs.

The couple works hard to enable staff to play to their strengths and let their passions shine—and their enthusiastic staff return the favour by bringing them creative ideas that add value to the business.

Employees are also all on a first-name basis with customers. And when they don’t know a customer, they’re encouraged to get to know them. The store even works with realtors to get to know new residents, who are given a key chain and a free can of paint—a warm welcome indeed.

Community engagement is essential for the Laferrieres, who love their town. It’s also an important aspect of their business

model. Social media has been especially successful for the store. They make funny and educational videos for Facebook that have been shared as far afield as Mexico and the U.K. Customers often ask when their next video is coming out.

Mackenzie’s tight-knit ecosystem has enabled the Laferrieres to build a thriving business that has helped their community remain successful, despite economic hardships. Their love for their town—and their unique and very personal way of doing business—shines through in everything they do.

Michael McLarney (right) of Hardlines, sponsor of the award, presents Marilyne and Sylvain Laferriere with their award. They are accompanied by Nelson Lemos of Ace Canada (left).

• 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 more effectively;

• Concrete ideas for managing budgets, merchandising products and identifying best practices. ...and much more!

BY SIGRID FORBERG

PLANNING FOR SUCCESSION PLANNING

The best time to start your succession planning is immediately,” says Dave Ryan, vice president/financial planner with PIB Financial. PIB, which is owned by Home Hardware, advises Home dealers across the country in all aspects of investment, wealth management and insurance.

The first step, Ryan says, before even thinking about succession is to make sure the structure of the business is sound, and that all its aspects are set up correctly and run smoothly.

“We often get a call where someone says, ‘We’ve got a deal on the table, can someone have a look at our business structure?’ Well, in many respects, that’s too late,” says Ryan. “Because then you can’t take advantage of some of the things that would otherwise be available to you.”

The best plan, Ryan says, is to have a very profitable and attractive business. For PIB’s part, that means asking Home Hardware dealers if they’re taking advantage of all the programs the banner offers, if their store is merchandised properly, if they’re up to date on signage and if an outsider would say the business is being run “well”, regardless of their projected timeline for retirement.

“I always say that you need to have the end in mind, even if you’re near the beginning,” says Ryan.

At Lowe’s Canada, Josée Desrosiers, the national director business development, dealers – RONA and Ace, says succession planning is something her team discusses in the early stages of a store joining the RONA or Ace networks.

Desrosiers has a detailed list of questions dealers are encouraged to ask themselves.

She suggests they start by assessing the current value of their business, then determining what strategies they can implement to increase that value over the next few years. And then, crucially, who may ultimately be interested in buying their business, whether that be a family member, employee or a fellow dealer in the Lowe’s Canada network.

Sadly, Desrosiers says, there’s no foolproof solution to that last question. But like Ryan, she agrees that if you’re asking yourself when the right time is to start planning—the answer is right away.

“There is no miracle solution for identifying a successor,” says Desrosiers. “Each situation is unique, and various succession scenarios may arise. To avoid being caught short, you need to think far in advance.”

“

There’s no such thing as too soon when it comes to succession planning. The earlier you start preparing for the inevitability of a transition of power, the smoother and easier that transition will go.

You need to be there.

“As an independent, the ability to be unique—whether it’s through product or service—in your market, that’s your strength. Going back to these Shows gets you out of your little trading area and gives you a look at what else is out there. I like to go there to re-energize, find new products and find potential new suppliers to complement our existing line.”

Randy Aikens President SOO MILL BUILDALL Sault Ste Marie, ON

WHERE TO START

Jon Irwin is TIMBER MART’s vice president of member services. Irwin says there are some specific steps for preparing a business for a hand-over, including setting up a team to help carry out the plan and developing a learning plan for your identified successor.

This usually means that the business owner ultimately has to stay financially involved in the running of the business and that the transfer of ownership will occur over a longer period of time than if it were a straightforward sale to a third party. Further complicating the situation may be the fact

In the 15 years he has been helping dealers navigate the process, Ryan says there’s one thing above all else he advises business owners—to seek out whatever help is available to you.

“Trying to navigate this on your own, I’m not saying it’s impossible, but there are a lot of pitfalls,” says Ryan. “Dealing with people like PIB and our business partners—people who have experience—you can perhaps navigate round some of those potholes.”

“The learning plan for a successor should have measurable goals, clear objectives, reasonable timelines, as well as specific people identified and held accountable for taking actions towards it,” says Irwin.

He adds it’s important to revisit the plan at least once a year. “The plan should be monitored by the business’s successionplanning team and evaluated on an ongoing basis to ensure it’s on track for when it’s time to pass the torch.”

Ryan’s team refers to the plan as a living document. Dealers should view it as a framework for moving forward, but it’s not written in stone. Should anything come up, you should be prepared to pivot or even completely restructure the plan.

DOLLARS AND SENSE

Ryan emphasizes that the best way to ensure a smooth succession is to have a profitable business, whether you’re looking to pass it along to a family member, employee or a third party. But there are some specific issues that need to be addressed when looking at selling to a younger relative.

“The reality is that with most family successions, the family member has long desired to run the business,” says Ryan. “But they’re often short on one important component: money.”

that often the business is passed down to one child, but in many cases, there are multiple children in the family. Ryan says these situations call for very honest conversations.

“All the children in the family need to feel they are being treated fairly—and that doesn’t always mean equally. But mom and dad have to sit down with all the members of the family to articulate their plans openly,” says Ryan. “In our experience, when that is done, questions are asked, issues are dealt with and it allows for family harmony.”

“I always say you need to be able to sit down at Thanksgiving dinner together afterwards.”

LETTING GO OF CONTROL

In an industry of entrepreneurs and independent business owners, it’s natural that retailers find themselves tying up a lot of their identity and sense of self in their business. Thinking of retirement and their own mortality can trigger a flood of emotions for many people.

“It’s all very well to have planned everything regarding logical, analytical and financial aspects, but there always comes a time when emotion enters the picture and upsets our ideas, convictions and sometimes even the succession plan as a whole,” says Desrosiers. “This is understandable.”

The best way to make this transition as easy as possible on all parties, Irwin says, is to gradually cede control over a predetermined period. If you begin to pass along increasingly important responsibilities to your successor, when the time comes to step back completely, you’ll be confident in their knowledge and experience.

“This comfort of knowing that their business can and will function without them allows them to visualize the transition and ease into it so that when the day comes, it’s not a stressful experience, but a comfortable one,” says Irwin.

The reality is that with most family successions, the family member has long desired to run the business. But they’re often short on one important component: money.

“ ”

You need to be there.

“The landscape in Canada is changing: You need to know your market, you need to know what people want, you need new and fresh ideas—and this is the place to get them.”

Mark

HARDLINES CONFERENCE PUTS FOCUS ON THE EXPERIENCE

Dealers and vendors from across Canada converged on the Kingbridge Conference Centre & Hotel in King City, Ont., recently for the 24th Annual Hardlines Conference. Under the theme, “It’s all about the experience”, the conference drew an outstanding lineup of speakers from both within and outside the industry.

On the dealer side, Home Hardware Chair Christine Hand spoke to her own experience using her family’s cross-generational expertise to gain a digital edge. And Joe Franquinha, from Crest Hardware in Brooklyn, NY, spoke about how his business re-evaluated its practices to contend with online giants.

Looking at the big picture, Peter Norman of Altus Group spoke candidly and accessibly about the broad trends of the economy, while Hardlines’ Michael McLarney addressed the state of the industry, with a focus on customer experience and specialization.

Capping off the event were Fred Pennell of Princess Auto, who shared some of the secrets of his company’s success in expanding and updating, and True Value CEO John Hartmann on the banner’s new equity structure and how it allows retailers to invest in their businesses.

Outside of the conference room, Pub Night sponsored by RONA and an Industry Cocktail Reception put on by Home Hardware kept the fun and networking opportunities going.

Hardlines Home Improvement Quarterly

PHOTOS: ASHLEY SAVAGE

Tanbir Grover, formerly of Lowe’s Canada, talked about making bricks-and-mortar retail spaces and online sales work in tandem.

Shawn Stewart , Canadian Tire, and Paula Courtney , Wiseplum discussed the findings of a recent survey of home improvement shoppers.

Home Hardware Chair Christine Hand spoke to her own experience using her family’s cross-generational expertise to gain a digital edge.

Claudie Gervais of BMR Group addressed the company’s move to a multi-banner strategy.

John Hartmann, president and CEO of True Value Company, outlined the new ownership model and its impact on member-dealers.

IDEAS AND INNOVATIONS ABOUND AT INTERNATIONAL LAWN AND GARDEN SHOW

spoga+gafa, the world’s largest trade show for gardening, outdoor furniture, equestrian and barbecues, drew 40,000 people domestically and from abroad to Cologne, Germany, last fall. It featured the latest trends in outdoor living, furniture and tools, urban gardening and grilling, spread over an incredible 2.5 million square feet of exhibition space.

he show, which included a smaller segment for equestrian products and accessories, spanned almost a dozen buildings, plus outdoor spaces that take into consideration barbecue manufacturers busily grilling everything from Bratwurst and beef tenderloin to pizza.

There was no shortage of new products from vendors in every category ranging from

patio furniture, gardening supplies, seeds and live goods to outdoor power equipment, pet products and landscape materials—many seeking distribution in North America.

A major theme of the show was urban gardening, the concept of providing products and garden strategies that fit in limited land and smaller homes. Innovations included a patio set in a box, outdoor

furniture sized for children and products for creating “living walls” of plants. Two entire halls were devoted to barbecues and grilling accessories.

Canadians turned out, but not in significant numbers. One exception, however, was the barbecue category. Three major Canadian-based suppliers all had large booths: Napoleon, Broil King and

Nathan Wheeler, director of European sales for Waterloo, Ontario-based Broil King, said spoga+gafa is “the most important show in Europe.” One building away, Chris Schroeter, co-CEO of Napoleon, in Barrie, Ont., had a large contingent of salespeople at his booth, many sporting

the Canadian flag on their shirts. He and his team were presenting the latest models, many already launched in Canada.

Once again, the show proved an important draw for dealers, buyers and suppliers from around the world. The mix of new products, networking and information sessions created a winning combination for attendees.

Hardlines Home Improvement Quarterly

Danson (with its Grill Boss and Louisiana Grill brands).

You think your company has problems with shrinkage?

Home Depot could be losing $750,000 per $1 billion in sales per year, according to a recent special report on loss prevention that the Atlanta Journal-Constitution published.

Shoplifting is a $50 billion “business” in the U.S., where one in 11 Americans has stolen something from retail outlets, with 46 percent of the thieves admitting to repeat offenses, according to a survey of 15,000 shoplifters by the National Association of Shoplifting Prevention.

Canadians might not be quite as lightfingered: one estimate finds one shoplifter for every 35 citizens. But that doesn’t mean Canadian home improvement and building supply retailers are less vigilant. Even if their loss prevention practices sometimes

BY JOHN CAULFIELD

fall short, shrinkage from theft and damage is never far from their minds.

“We don’t do enough loss prevention training,” admits Brad Swanson, who owns Swanson’s Home Hardware Building Centre in Kitchener, Ont., which operates a hardware store and lumberyard located in a tough part of town. Like many retailers, Swanson’s store relies on camera surveillance to discourage thieves. It also keeps power tools—a common target—behind locked glass cases.

Harris Home Hardware in London, Ont., has cameras watching every aisle and its exterior from all sides. Owner Ron Harris says he plans to try out spider wrap, a wired alarm that can be attached to high-theft items like tools and faucets.

Not every dealer is comfortable with these deterrents, however. “I don’t like to treat 99 percent of my customers like criminals just

because one percent is,” says Russ Jones, owner of Coast Builders RONA in Sechelt, B.C., which operates two building supply yards and a kitchen, bath and appliance store. Jones says he keeps “expensive stuff” that thieves covet, like Nest thermostats, behind or near the service counter.

Jones and other dealers concur that the best loss prevention tool is an observant employee. “Just good customer service, and keeping an eye on the customers,” is how Mandi Cox, floor manager of NorthStar Hardware and Building Supply in Invermere, B.C., describes how her store contains shrinkage.

GETTING EMPLOYEES ON BOARD

Harris Home Hardware’s 21 employees are required to watch loss prevention videos produced by Dunk & Associates and

Whether it’s employee training or investing in top-of-the-line technology, home improvement dealers are developing loss prevention strategies to meet their unique needs.

provided through Home Hardware Stores. The dealer counts its store’s inventory twice a year, and certain departments—tools, small appliances, housewares, seasonal— more often. Whatever it’s doing is working, because Harris Home Hardware keeps its annual shrinkage down to between $15,000 and $18,000 (it does $3.3 million in sales).

Swanson’s 92 employees are its “eyes and ears” when it comes to loss prevention, says Swanson, and are a big reason why the store’s annual shrinkage has dipped to 0.25 percent, from 1.5 percent a few years ago. Swanson attributes that improvement to several factors, including “hiring better people,” and “maintaining a clean, wellorganized environment.”

When it comes to minimizing shrinkage from product damage, Swanson’s yard workers regularly rotate lumber piles to limit warping and spiking. They also help customers load products into their vehicles. “It often comes down to customer service.”

Jones at Coast Builders recalls that when Marvin Ellison took over at RONA’s parent company, Lowe’s Cos., in May 2018, he singled out three goals for the stores: a strong in-stock position, clean and safe stores and great customer service. “All of these play into loss prevention,” says Jones.

He realized that his own stores were purchasing too much inventory, “which can lead to mistakes, damage, etc.,” he says. And the best thing a retailer can do to control shrinkage, says Jones, is “to keep your staff engaged, so that if something goes missing, it’s noticeable.”

Sometimes, though, it’s the employees who need watching. A few of the dealers interviewed for this article spoke of workers they caught “borrowing” money from their stores’ cash registers. “After we bought our hardware store last year, we had to clean that up,” says Swanson.

TECH SUPPLEMENTS SERVICE

Technology is playing a much bigger role in selling, so it’s not surprising when retailers turn to tech to control shrinkage.

Loss Prevention magazine recounted how Canadian Tire last year had added images of products scanned at point-of-sale so cashiers could visually identify that the UPC of the product scanned matches the image of the product that appears on the screen. In an email, Cathy Kurzbock, a Canadian Tire spokesperson, elaborated that staff workers monitoring the stores’ self-checkout kiosks have access to the screen showing the product being scanned. The machines are also programmed with corresponding product weights, so if what’s scanned doesn’t match, the attendant is alerted.

Racheal Awe, Canadian Tire’s associate vice president of in-store technology, told Loss Prevention that this system deters shoplifters from ticket-price switching, and has saved the company “millions of dollars.”

INDEPENDENTS FIND THEIR OWN SOLUTIONS

Most independent home improvement dealers’ strategies are nowhere near this sophisticated. For example, few are doing much about the threat of cybertheft other than depend on POS vendors to equip their machines with antitheft software and to back up transactions.

One exception is Econo Lumber, the largest lumberyard in north central Saskatchewan, with a 60,000-square-foot store, a 40,000-square-foot outdoor storage area, and a 26,400-square-foot drivethrough warehouse. The Prince Albertbased company has an on-site technology specialist whose job includes keeping Econo aware of email hacks, phishing and “ensuring we have excellent software on our systems so this doesn’t take place,” says Angelo Minier, Econo’s director of corporate finance.

Technology is seeping into other dealers’ operational streams, in small and big ways. Cox of NorthStar Hardware & Building Supplies says her company was planning to install a computer at its outdoor gatehouse for price checking and inventory control.

Coast Builders RONA is installing a drive-through checkout kiosk inside a converted shipping container, where products that are tagged can be scanned and customers can pay without leaving their vehicles, rather than having to go inside of the store. Jones says this kiosk should be active by February, and he expects it will help reduce product damage, too.

Econo Lumber’s network of 25 highresolution cameras provides video that, on a number of occasions, has resolved disputes with shoppers. Minier notes that a customer recently came into the store claiming that he hadn’t picked up the 2x4s he bought the previous day, even though the store’s paperwork showed otherwise. “We looked at the camera footage and saw that he did, in fact, take the items.” Upon reviewing that footage, the customer “realized that he had ‘forgotten’ that he picked up [the lumber],” says Minier, who notes that video surveillance is also useful when accidents in the yard occur.

Minier says Econo Lumber has found that “human error”—such as shipping or loading mistakes—is the primary cause of shrinkage. Consequently, no customer gets loaded without proper paperwork. If there’s a discrepancy in the order’s unit count or billing, the customer needs to go back into the store to resolve the problem.

Throughout the year, Econo conducts ongoing inventory counts, going as far in some departments as to count actual quantities on hand to see if they coincide with what the store’s sales system indicates. If something is amiss, Econo does a thorough investigation that includes speaking with the employees who sold and loaded the merchandise.

Whether they can afford sophisticated technology or training programs, home improvement dealers are waking up to the reality that lacking a loss prevention strategy costs them a great deal in the long run. That means finding solutions that meet both their needs and their budget. The efforts upfront are sure to save a number of headaches in the long-run.

BY LYNDON MADDEN

ne of the more contemporary methods marketers use to follow consumers and measure return on marketing investment is called the “funnel of conversion”. The basic premise is that consumers follow a sequence of exposures leading them to the decision to buy a certain brand, or from a certain place. The abbreviated version goes like this: awareness; interest; consideration; intent; purchase; loyalty; advocacy.

Awareness is the largest (widest) part of the funnel. It’s about getting people to be aware you exist. The bottom of the funnel, where fewer consumers are, but where you want them all to be, is purchase. Loyalty and advocacy are post-purchase benefits— provided you can build a relationship with the consumer.

Actions are taken in marketing at every step of this funnel to drive consumers towards the purchase end of the funnel. An action creating awareness might be sponsorship of an event, or perhaps something in public relations, letting people know your brand exists.

As you push consumers from awareness to purchase, the most important thing you can do is look at your purchase journey. Consider how a consumer starts to think about a purchase from you. As you take steps from first exposures to garnering consumer intent and purchase, you need to make that experience as linear as possible.

KEEP IT CONSISTENT

So how do you make it linear? For every step in your purchase journey, you need to have a consistent message, tone and visuals. Watch out for slight missteps that can be made in the process, such as a flyer not matching in-store materials. That could allow consumers to stray from the breadcrumb trail you’ve laid for them.

Let’s say you’re a company offering a great product, at a fair price, but your big focus is on quality and reliability. In order to keep your tone consistent through

the purchase journey, you need to know your message and continue to speak to it at each interaction you have with your target consumer. If, for example, you start with a message that your product is great quality and very reliable, your focus is not on price. When a consumer sees your product in-store, and they are met with flashing lights on “low-low prices”, then you have suddenly changed the message and detracted from all the efforts you made to build that message.

In more simple terms, your brand should have a consistent message, and it should be reflected in your advertising. And then your advertising should reflect your message in your digital exposure, your digital exposure should reflect it in your in-store experience and your in-store experience should reflect it right back to the start. This would be a great consistent message as consumers travel through that purchase funnel with you.

DELIVER ON YOUR CUSTOMER EXPECTATIONS

If you take some time to truly put yourself in your customers’ shoes and consider the touchpoints they will make on your brand from first exposure to purchase, you can seek to make that experience linear. Where is the consumer exposed to your brand? Do you have a website? Do you have a flyer? Do you have an e-blast list or mailing list? Do your in-store materials reflect all those external sources with the same message?

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I have seen newspaper ads with cheeky catchphrases to lure the consumer in, but that don’t line up with the brand’s in-store personality. This type of misstep subconsciously throws the consumer off. This is all about following through on the consumer expectations you are building throughout the funnel of conversion.

Another great example of this is Home Depot’s former slogan “You can do it. We can help”. This is the line that retailer used far and wide to create awareness about

STORE MANAGEMENT FLE

who they were and what they would do for consumers. This told me, “If I am a handy person, this retailer could offer me the service to help me through my fix-it project.” The message was encouraging of my ability, but also helpful in tone.

This sets the expectation that I would be able to get what I needed and there would be someone there to help me find, do and accomplish my project. I felt once I went through the door of that store, I would get help. If I can’t find help once I walk through that door, it would be a huge failure to deliver.

must be able to look at your own customer journey and see where the message, tone and visuals line up and where they don’t. Do your website, e-blasts, flyers and in-store signage all share a similar look?

It sounds like a lot, but this is exactly how it needs to be to ensure you have the most effective marketing strategy.

If you don’t feel you have the objectivity to see through the weeds, or if it all looks fine to you, consider consulting an outside source like a consultant or a creative agency. They can see what you may not be able to, while you live your own brand day-in and

tools are you using to do this? Are all those tools similar in message, tone and visuals? How are you fostering interest?

• Consideration: Now that you have made it clear who you are and lured the consumer to know more about you, they are getting closer to a purchase. Within purchase-driving activities like ads, are you delivering the same message you did in the beginning? This is when you are competing with a limited selection of competitors. Here, being true to your message is important. But it is also the point at which brands can make inconsistent manoeuvres to try to rush consumers to purchase.

Delivering on the statement for this brand would help me not only make a purchase, but if my experience was truly great, then it would build loyalty. If I become a repeat loyal consumer and get very excited about having a consistent experience that always hits the mark, then I move on to the ultimate delivery of advocacy, where that brand did such a good job from message to execution that I tell everyone I know how great my experience is. Developing brand advocates essentially helps you preach your brand message.

SEEK OUTSIDE INPUT

This whole process can be equally effective for a retail banner or a product brand. Take for example the linear message being executed by product brands like Apple. The brand personality, product, ads and in-store experience are all consistent and they drive an advocacy so intense that it verges on addiction.

Working your way through the funnel of conversion is not a short process. And following your consumer journey takes a lot of very grounded objectivity. You

day-out. You don’t have to get your outside source to design it for you, but a few dollars will at least send you in the right direction identifying where the gaps could be.

Consumers aren’t big on having to interpret what you say and then try to figure out what it means at each stage. Offering them a consistent message from your very first awareness-creating interaction to your moment of truth purchase is how you win with your brand.

LOOK AT YOUR STRATEGY CLOSELY

To start you on a customer journey analysis and how it functions alongside your funnel of conversion, try looking at it like this:

• Awareness: Is your target customer aware of who you are? If yes, how did they become so? If no, how will they become aware of you? They don’t have to know exactly who you are, just that you exist, at this point.

• Interest: If your consumer knows that you exist, how do you get their attention? How do you get them interested in wanting to know more about you? Which

• Intent: If you get a consumer to intent, it means they have narrowed you down to the nominated purchase. Within a defined period, they will make the purchase. If you are online or in-store, is the experience there consistent with what you have told your consumer already?

• Purchase: Is the purchase experience consistent with your brand message? Did the goods deliver what you said they would? To ensure this, try walking through the actual steps a consumer would take right before they add your product to their cart.

Taking the time to make the walk of your customer purchase journey, and doing so objectively, is your best way to make a linear brand experience that surrounds your customer with the expectations you want them to have. It’s how the good become great and how purchasing consumers will become loyal and possibly even advocates of your brand. Invest the time in this process. Invest time in your brand. It will yield great results! Good luck.

Lyndon Madden is an 18-year consumer goods marketing executive who has worked with many small and large brands. He is passionate about bringing thoughtful business strategies to build long-term brand success.

Offering them a consistent message from your very first awareness-creating interaction to your moment of truth purchase is how you win with your brand.

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ADVERTISERS: FIRST QUARTER / 2020

Ace Canada 31 www.acecanada.ca

Auto-Stak Insert www.autostak.com

BMR Group 2 www.bmr.co/becomeadealer

Burlington Merchandising & Fixtures (BMF) 45 www.bmfonline.com

Freud 11 www.freudtools.com

Hardlines Conference 49 www.hardlinesconference.ca

Hardlines Dealer News 33 www.hardlines.ca/dealernews

Home Hardware Stores Ltd. 4 www.home-owner.ca

King Marketing Ltd. 3 www.kingmkt.com

National Hardware Show 35, 37, 39 www.nationalhardwareshow.com

NRHA Canada 47 www.nrha.org/membership

Orgill Canada 51 www.orgill.ca/about-us

Regal ideas 6 www.regalideas.com RONA 17 www.rona.ca/becomeRONA

Sexton Group 21 www.sextongroup.com

Taiga Building Products 52 www.taigabuilding.com

Techniseal 25 www.techniseal.com

BY GEOFFREY Mc LARNEY

A LANDMARK FROM THE PAST CARVES ITS FUTURE WITH CUSTOMER RELATIONSHIPS

Dawson City is a northern town with the memories of a big city. When it needed to rebuild, Dawson City Hardware kept part of that legacy alive by blending historic features with new bones.

Dawson City is a community that’s used to seeing change. The Yukon’s first capital, its population swelled to 40,000 during the famous Klondike Gold Rush. By the 20th century, with the mines drying up, it was less than a quarter that size.

The familiar site of Dawson City Hardware had remained a constant since about 1903. Co-owner Tina Green’s uncle opened the current store in 1979. Later, her parents acquired it, bringing it under the Home Hardware banner in the late 1990s. As an independent store, she says, “it was a lot harder to get products, so my parents decided to become a Home Hardware. When you’re a franchise, you have the buying power.”

As in many Northern stores, those products represent a wider mix than the average hardware store. “We carry pretty much a little bit of everything,” says Green.

Though not an officially designated heritage building, its historical value was locally appreciated. By 2018, however, it was clear to the owners that the building as it stood was no longer viable. Contractors warned them it would sink into the ground if left unchecked.

As luck would have it, the historical value of the building was not all lost. The original façade was replaced on the finished exterior and, co-owner Tina Green explains, “the original flooring from the Gold Rush era is now up on our walls.”

The work on the revamped store was done by contractors known to the staff. “They were all local,” Green emphasizes. Dawson City Hardware has developed a symbiotic relationship with its pros, both employing them and selling them supplies for their own renovations.

The rebuilt store houses standard hardware offerings and an extension to the building carries an additional product selection, Green explains: “stationery, pet section, your heating supplies—and then we have housewares, with paint supplies and the like.”

That breadth allows the business to serve as a comprehensive destination for the community, but its relationship with Dawson City goes beyond customer service and extends to giving back. “We try to donate to everybody,” says Green of the store’s philanthropic efforts. “When my uncle died, he gave $10,000 to the volunteer fire department and again when my dad died, he did the same. They’re all volunteers so it allows them to buy equipment.”

In 2015, Green’s mother pitched in food for a fundraising dinner to help a local family whose young son was diagnosed with lymphoma. Green also recently contributed a lineup of prizes for auction in support of the Dawson City Museum.

For Green, it’s a simple question of gratitude. “We try and support our community because they support us.”

Dawson City Hardware has remained a constant in town since about 1903.

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