HHIQ Q1 2022

OF THE YEAR YOUNG RETAILER

Jillian Sexton shares her climb to success, experience as a new mother, and the challenges of inequality in the industry.

Jillian Sexton HECTOR BUILDING SUPPLIES AND SHERWOOD TIMBER MART

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MOVING FORWARD

Going into the new year bright-eyed and bushy-tailed

A

new year, a new issue of HHIQ! How is it already 2022? Wasn’t it 2019 a few months ago? I hope it’s filled with success and good fortune.

Last year wasn’t all doom and gloom. I attended my first-ever Hardlines Conference, and the industry attended the conference for the first time in two years. With COVID restrictions still in place, capacity for the event was limited. But this obstacle led to a solution. We added an online component so anyone anywhere could watch the conference. If you missed the event, the rundown is on page 18.

It seems like we are at the tail end of the pandemic (who knows anymore), but there are still challenges when it comes to business. Sourcing products and talent is still a challenge. In the article “In the driver’s seat” on page 50, the two challen ges are combined. The article points out a few tips and tricks that some dealers tried that worked out for their hiring challenges.

Another Hardlines highlight was the Outstanding Retail Awards. I talked to Jillian Sexton, the award winner for the Young Retailer Award. For me, this

winner was a highlight. On page 38, I talked with Sexton about running a busi ness, being a new mom, and being female in this industry.

Our discussion about gender in the industry hit home for me. As a leader for Girl Guides of Canada, I often get Brownies asking me why the organization is all-female. I often explain to them that it’s important for females and minorities to have a space where they feel supported, since the world is filled with male domin ance. Especially in business.

As I get older, the more I realize that this is an issue and these spaces are so import ant. Hopefully, this article inspires your team to have this discussion.

The pandemic has allowed us to sit down and reflect on a few things. This is the year to take those thoughts and act on them.

“ ”

NEWSROUNDUP

UFA’S LATEST STORE UPDATES TAKE AIM AT CONTRACTORS

UFA, the Calgary-based co-op, con tinues with ongoing upgrades to its chain of 34 UFA Farm & Ranch Supply stores. This spring, UFA tackled its location in Lethbridge, Alta.

“It was our biggest remodel yet. It’s our latest and greatest store,” says Glenn Bingley, vice president, agribusiness and supply chain at UFA.

The store refresh program began in 2016 and the latest reno represents a key step for the company. Sitting in the middle of Alberta’s “livestock alley,” the Lethbridge store has the highest concentration of inten sive livestock in Canada and represents a key location for UFA. “Lethbridge is a big part of our business and an important market.”

All improvements were generated inhouse and, Bingley says, they reflect a strat egy to appeal to more contractors and farm management pros. The enhancements at the Lethbridge Farm & Ranch Supply store reflected the work of the company’s field service team and UFA’s marketing team. They included more digital elements in the signage, wider shopping aisles, and a new building supplies area.

Merchandise at the Lethbridge store is displayed according to projects, so every thing needed to get a job done is in one spot. “The team really remerchandised the entire store,” says Bingley. “The layouts, the adja cencies, are completely changed.”

A service desk near the entrance lets

pros get in and out quicker. Assortments in the yard have been beefed up with live stock supplies and added LBM. An office has been added in the yard that provides checkout for a new drive-through, so cus tomers can remain in their vehicles. For buy-online, pick-up in-store customers, or those who need to get in and out quickly, the store also features an e-commerce pickup desk.

“Wider aisles, new adjacencies reflect a project focus for both contractors and our farm and ranch customer. We’ve polished up the concrete floors and added a lot more ‘bright and white’ to make the merchan dising more and more improved for our customers.”

OF THE HOME IMPROVEMENT INDUSTRY

Visit Hardlines.ca for breaking news in the Home Improvement Industry

The UFA store in Lethbridge, Alta., received a new look, which is a part of the refresh program that started in 2016.

BRIEFLY

HOME HARDWARE RELAUNCHES BENCHMARK BRAND

Home Hardware’s private brand, Benchmark, has been a staple offer ing of the company for decades. Now the brand is getting a boost, complete with redesigned packaging and a full-blown promotional effort.

The campaign, called “Built to Build,” is part of a relaunch for Benchmark, devel oped in collaboration with Toronto ad agency john st. It’s supported through social and digital channels as well as a TV spot and in-store signage. In French-language markets, the campaign is presented with the slogan “Conçus pour bâtir.”

“Home Hardware’s Built to Build cam paign is about connecting with DIYers across Canada and highlighting Benchmark as an innovative and affordable tool brand that can help them tackle the projects they’ve been dreaming of with ease,” said Laura Baker, Home Hardware’s vice presi dent, marketing.

A cornerstone of the Benchmark relaunch is its new Omega 20-volt battery system. Keeping pace with the thrust of power tool

technology, the system is interchangeable across all of Benchmark’s 20-volt cordless products, which includes power tools and lawn and garden equipment.

“We know that home renovation and repair projects continue to be a focus for our customers and innovative tools that help them get the job done within budget are important to them,” said Baker.

BMR STORE ADDS DRIVE-THROUGH SALES

A BMR store in northwestern Quebec is the group’s first location to offer drive-through service. Customers at BMR Bergeron & Filles in Amos can place orders at a window and receive them without exiting their vehicles. They can also place orders by phone or online. All in-store merchandise is available through the service.

TORBSA ADDS NEW MEMBER IN SASKATCHEWAN

JDS Building Supply in Saskatoon is the new est shareholder member of the TORBSA buy ing group. JDS was founded in 2018 by Justin Scheuer and serves the commercial and resi dential stucco and exteriors markets across Saskatoon and surrounding areas. This is TORBSA’s second member in the province, after CTI Building Supply, which specializes in modu lar homes and is also in Saskatoon.

PEAVEY OPENS NEW STORES IN WESTERN CANADA

Peavey Industries opened two new Peavey Mart stores last fall. One was in Brooks, Alta., and another location opened in Prince Albert, Sask. The openings continue Peavey’s momen tum in the Prairie provinces. Its Airdrie, Alta., store opened in June 2021.

LOWE’S CANADA GIVES BACK TO LOCAL CAUSES

Lowe’s Canada Heroes campaign was held again last fall, and the company reports the greatest participation to date both at head office and among dealers. Eight distribution centres and 71 RONA affiliated dealer stores joined the Lowe’s, RONA, and Réno-Dépôt corporate stores for the fundraiser. More than $1.5 million was distributed to 235 charities and schools.

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Hardlines Home Improvement Quarterly

Laura Baker, Home Hardware

LOWE’S CANADA HOSTS VIRTUAL EVENT FOR ITS RONA DEALERS

More than 500 participants from nearly 200 RONA affiliated stores took part last fall in the second virtual RONA Buying Show organized by Lowe’s Canada.

Over seven weeks, dealers were able to discover new products and meet online experts. To give dealers more flexibility and a chance to make the most of the platform, and to allow them to focus on running their stores, the show was divided into three events, each of them lasting several days. They focused on specific product categories: home décor, lumber and building materials, and seasonal and horticulture.

The online event kicked off with video presentations from the Lowe’s Canada exec utive team, speaking directly with the deal ers. Participants also had access to thematic conferences, presentations, and workshops. Exhibitors could use the show’s platform to upload pre-recorded videos and promo tional material to explain product features. The virtual show included promotional

offers and the ability for dealers to plan vir tual meetings with members of their dealer support team.

PEAVEY TIES FLYER PROGRAM IN WITH DIGITAL CAMPAIGN

Coming through the worst of COVID, Peavey Industries has adjusted how it handles its flyer program.

In a podcast from the Retail Council of Canada, Jest Sidloski, vice president of mar keting, customer experience, and e-com merce, shared how the Red Deer-based retailer has re-evaluated paper flyers for its Peavey Mart stores. Customers expressed their preference for paper flyers, says Sidloski, so the company made changes to accommodate that mandate.

When Peavey relaunched its website last spring, customers could more easily select and purchase products. But the paper flyers have remained an important part of the mix. Sidloski says the printed promos were reduced from 52 times a year to 36, and the page count was reduced as well. They feature what Sidloski calls “bread-and-butter prod ucts,” augmented by links to a wider array of items. Digital flyers fill in for the other weeks. “We were able to take that paper flyer and add digital pages to it for online views.”

Jest Sidloski, Peavey Industries

RONA’s latest buying show allowed dealers to shop deals and plan virtual meetings with members of their RONA support team.

CANADIAN TIRE’S FOCUS ON PRIVATE LABELS HELPS IT MANAGE SUPPLY CHAIN

HOME DEPOT CANADA OFFERS SKILLS TRAINING TO HOMELESS YOUTH

The Home Depot Canada Foundation has launched a program to combat youth homelessness. Called TradeWorx, the initiative provides career education and skilled trades training, starting with a $1 million investment. “TradeWorx builds upon our work with community partners that provide emergency housing and social supports for youth, by connecting them with the training needed to establish last ing careers and acquire stable housing,” said Pamela O’Rourke, board chair, The Home Depot Canada Foundation, and VP merchandising, The Home Depot Canada.

PRINCESS AUTO ADDS STORE IN NORTHERN ONTARIO

Private brands are hot properties, and Canadian Tire has led the charge with a range of propri etary lines for everything from power tools to home décor.

Supported by a strong infrastructure here at home, the company has been able to manage its inventories effectively. That availability of product had a direct, posi tive impact on the retailer’s third-quarter results.

“The non-perishable nature of our products gives us flexibility around lead times and commercial terms,” said CEO Greg Hicks. “As the owner of significant distribution and storage capacity through our store network, corporate-owned real estate, and the REIT, we can easily hold excess inventory in Canada.”

He pointed out that more than onethird of Canadian Tire’s revenue comes

from its owned brands. As the supplier for its products in these areas, the com pany can keep control of when and where goods are produced. Hicks cited NOMA Christmas lights, Mastercraft tools, and Denver Hayes apparel as examples.

CTR’s performance was helped by growth in their own brands such as Canvas, Master Chef, Raleigh, and Sherwood. The company says that the control over these lines gives Canadian Tire a real advantage, despite ongoing sourcing challenges worldwide.

“Our seasonal, living, and automotive divisions had the strongest performance in the quarter,” said Gregory Craig, Canadian Tire’s EVP and CFO. “Garden, backyard living, cleaning, and car care were among CTR’s top-performing cat egories, and our access to inventory was a key contributor to their performance.”

Princess Auto is slated to take over the space vacated by a Lowe’s store in Sault Ste. Marie, Ont. The original building was to be torn down, according to Sootoday.com, to make way for the new store. This will be the retailer’s 51st location.

NEW DISTRIBUTOR OFFERS FULL RANGE OF HARDWARE AND TOOLS

OMC Tools & Hardware has set up shop as a new tool and hardware distributor in Canada. Based in Mississauga, Ont., OMC is the Canadian distributor for a giant Chinese manufacturer, Total Tools. Besides tools, Total offers a store concept of its own, backed by a full marketing and merchan dising program. Everything in the store falls under the Total brand, consisting of some 2,000 SKUs. Product lines include Total’s signature brand of 20-volt lithiumion power tools, plus hand tools, power tool accessories, safety tools, and hardware.

BRIEFLY

BMR SECURES SPOT ON THE ICE WITH OTTAWA SENATORS

BMR Group has forged a sponsor ship with the Ottawa Senators hockey team for the 2021-22 sea son. The green BMR logo is now a famil iar sight on the ice at the Canadian Tire Centre in Kanata, a suburb on the west side of Ottawa.

According to Julie Crevier, a spokes person for BMR, the partnership with the Ottawa Senators is for the entire 2021-22 regular season, which concludes at the end of April 2022. During that time, the BMR logo will remain on the ice at Canadian Tire Centre, close to the net.

“So when the Sens play locally, the logo will be seen on TV on all main sports channels broadcasting the matches. It is a great way for us to have our brand visible to Ontario communities,” Crevier said.

The promo is the latest move by BMR to build its presence outside its home province of Quebec, especially in Ontario, where it has a dozen stores.

SEXTON GROUP MAKES SIGNIFICANT INROADS IN ONTARIO

With the signing of Gibson Building Supplies late last fall, Sexton Group was able to add seven new locations to its dealer network— and significantly increase its footprint in Ontario.

Gibson was established in 2001, special izing in roofing and related materials as well as some hardware and safety products. CEO Michelle Chouinard-Kenney explains that the company’s ongoing expansion means the customer base has grown beyond the core roofing installer. Some of the stores are serving more general contractors, she

says. As a result, “we were look ing to expand our product line and we were looking at who we could align with.” She found many par allels with Sexton Group, whose values and roots she respects. “It was a good fit.”

Chouinard-Kenney says Gibson Building Supplies will continue to add locations. Already, one—and maybe two—are slated to open this year. These will expand the current market area that the chain serves, which

stretches from Peterborough to Brantford in central and southern Ontario.

BMR’s logo will remain on Senators home ice until 2022.

HARDLINES CONFERENCE MARKS A DELAYED 25TH ANNIVERSARY

The Queen’s Landing hotel in Niagara-on-the-Lake, Ont., was the setting for the 25th Hardlines Conference on Oct. 19 and 20. Postponed in 2020 due to the pandemic, it was one of the first in-person events for the industry in Canada.

In-person attendance at the latest Hardlines Conference was limited by Ontario COVID regulations, but thanks to a new hybrid format there were as many people viewing the proceed ings online as there were in the room.

The event combined hospitality, informa tive sessions, and the celebration of 2021’s Outstanding Retailer Awards laureates.

On the eve of the conference, partici pants gathered in a picturesque barn in the gardens of the nearby Pillar and Post, a sister hotel of the Queen’s Landing. There they enjoyed catching up with familiar and new faces over pub fare, courtesy of Lowe’s Canada.

CONFERENCE SERIES 2021

At the end of day one, Home Hardware hosted a pre-gala reception celebrating the nominees and winners of the Outstanding Retailer Awards. That was followed by a dinner at which the year’s honorees were recognized.

A highlight was the acceptance speech by Jillian Sexton, who has two TIMBER MART member stores in Nova Scotia and Prince Edward Island. The Best Young Retailer shared a powerful account of how she led her team to turn around a struggling store, even as she was adapting to being a

OCTOBER 19 -20, 2021 HARDLINES CONFERENCE

new mother and unable to travel to P.E.I. due to public health measures.

As always, top-notch speakers were the backbone of the conference. The CEOs of Home Hardware and Peavey Industries provided an executive perspective. Peavey’s Doug Anderson offered a retrospective on the evolution of its banners, the integration of TSC stores, and how the company navi gated the acquisition of the Ace licence in Canada as the pandemic broke out.

Macnab talked about Home Hardware’s growth in Quebec, boosted by the acquisition

of Patrick Morin, and gave an update on the company’s transition “from a wholesale model to a dealer-owned integrated model.”

“We are taking a more strategic approach with our suppliers. We recognize that we are always stronger when working together and firmly believe that solid partnerships and collaboration is the key to success.”

Representing Home Depot Canada, Jamal Hamad outlined the newest develop ments in the company’s commitment to pro customers and rental services.

“Data has become king. We have always said the customer is king, and they certainly are, but what a difference it has made to really understand what data can do for you!”

Home Depot has leveraged technology to serve its contractor customers with the Local

Michael McLarney, president, Hardlines

Doug Stephens, founder, Retail Prophet

McLarney, retail consultant Bill Morrison, and David Chestnut, vice president and publisher of Hardlines.

Pros platform, which Hamad calls “a gamechanger.” It connects homeowners with participating Home Depot pro customers who can complete their desired projects. The business generated for the pro is an added value, “and we don’t charge a damn thing.”

Lowe’s Canada senior vice president of human resources, Marc Macdonald, talked about the lessons of the pandemic and the view for the future. At the outset, he admit ted, “I thought everyone was going home for three weeks.”

“At Lowe’s Canada, we had already launched a work-from-home and flexible work policy the year before. We’re always trying to be ahead of the game and become an employer of choice because we want to attract and retain the best talent within the industry.”

A new feature this year was the Hardlines Debate. Hardlines president Michael McLarney and veteran retail consultant Bill Morrison sat down to discuss the prospects for economic recovery in the industry, the role of green technology, and the likelihood of inflation in the near future.

The two found much common ground in their forecasts for the industry over the coming years, but Morrison expressed more pessimism about the trials to be endured in the medium term on the road to recovery.

“I am tremendously confident in this industry,” he said. “But there are bills coming due, and I think we can expect a very differ ent approach to how the economy will look.”

Other presenters included Doug Stephens, founder of Retail Prophet. Like Hamad, he addressed the ever-more critical role of data. A digital sea change, he said, is affecting everything from store format to logistics to staffing. “For e-retailers, this has been 19 months of steroid drip,” he remarked. At the same time, “we’re also seeing a delivery arms race.”

Stephens pointed to JD.com’s “anticipa tory shipping” as a trend to watch. When the Chinese online merchant sees a spike in clicks on a given item, it can calculate the approximate proportion of those views that will result in sales and start to move product accordingly.

“The endgame is that Amazon could even tually start shipping products to customers before they order them,” said Stephens.

A unique perspective came from Rob Faries, a Cree Ace dealer with stores in Moosonee and Moose Factory, Ont. He described the distinctive challenges involved in getting product to northern communities. He paid a moving tribute to his late father Donald, who died filled with pride in the knowledge his son would be addressing the conference.

The Faries family is descended from com pany servants of the Hudson’s Bay Co., the product of common-law marriages between colonial-era traders and Indigenous women. Donald, therefore, made waves, his son recalled, when he went into business for himself in the 1970s.

“It was a big deal. You don’t compete against the Hudson’s Bay Company. But he did, and it was noted.”

The Hardlines Conference returns to the Queen’s Landing for its 26th edition on Oct. 18 and 19, 2022.

From top to bottom, Peavey CEO Doug Anderson, Marc Macdonald of Lowe’s Canada, and Ace dealer Rob Faries.

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Gravenhurst, Ont.

Ten years ago, Ian and Tara McNaughton purchased a 12,000-square-foot hardware store in the south end of Gravenhurst, Ont. They wanted to transform it into an exciting place to shop and they also wanted to move the store downtown.

Since the store is located in cottage coun try, 70 percent of business is done between May and August. Many people among the 30,000 population in this town are in vacation mode, which can pose a bit of a challenge when convincing customers to spend money.

Ian and Tara decided to craft a new model of hardware store that would enhance their customers’ shopping experience and offer additional stores within one location. After

acquiring adjoining buildings, in March 2020 they opened their new 28,000-squarefoot hardware store right in the centre of town. Ian and Tara said they “wanted to bring experiential retail back to the down town core… We have built distinct experi ences within our new location that set us apart from our competition.”

To that end, they lay claim to the largest

The new store includes a 3,500 square-foot home and cottage expressions area. It’s a one-ofa-kind retail space that is built around a large floor-to-ceiling stone fireplace from the 1920s, with a faux fire running daily. The old-fashioned tin ceiling was made in Ontario in the late 19th century.

barbecue and outdoor living showroom north of the Greater Toronto Area.

Ian and Tara McNaughton, store owners.

Experience the Great Indoors

Best Building Supply or Home Centre under 15,000 square feet

BULKLEY VALLEY HOME CENTRE

Telkwa, B.C.

Telkwa is in northwestern British Columbia. It has a population of just 1,500, serving an additional 6,000 residents in the nearby town of Smithers.

Bulkley Valley home Centre has taken advantage of the region’s unique features. The mines and mills are a major part of the economy in this region. So Bulkley assigns employees to make trips to any new mine sites to introduce themselves and explain the products they can provide.

In 2012, when a mine was building a camp during the winter months, proactive sales calls from store employees generated $1 million in new business from that one camp alone.

The store offers significant contributions of both funds and volunteer hours to the Kinsmen Club, the Rotary club, the fall fair, and the Grendel Group, which supports adults with special needs. The store even offers four athletic scholarships to support local youth.

Bulkley Valley Home Centre is right at the cutting edge of technology. Its entire hardware catalogue, provided by Orgill, is fully online for special orders. It has stopped printing its annual round of six sale flyers in favour of a digital marketing effort.

Travis and Elaine Nanninga of Bulkley Valley Home Centre.

GRANDERIE HOME HARDWARE BUILDING CENTRE

Dunnville, Ont.

In 1996, the three owners pur chased the GrandErie Home Hardware located in Dunnville, Ont. Since then, the store has grown into a key business for the community.

In 2008, it moved to a larger property to add a lumberyard to its mix. The store grew again in 2016, adding a full-scale garden centred.

Today, GrandErie Home Hardware Building Centre consists of a 30,000-squarefoot retail store with a six-acre lumberyard and 16,000 square feet of LBM warehouse. The garden centre is 10,000 square feet with two and a half acres attached.

The year-round marketplace surrounding

Dunnville contains just 5,700 thousand homes. GrandErie isn’t the only hardware store in the area either. A Canadian Tire is just 400 metres away and a major lumber yard is less than a mile away. And there are other big box stores within an hour’s drive. Although the pandemic was tough, the

“Twenty-twenty was outstanding in unknowns and adversity, but it was also outstanding in how our staff stepped up to the challenges, and how our community steadfastly supported our business,” said Don Kenney, store manager.

store thrived during the trying times.

Co-owners Ken and Nancy Zantingh, Willie and Henry DeKlerk.

RONA COWANSVILLE

Cowansville, Que.

Located in the Eastern Townships of Quebec, Cowansville has a population of some 15,000 people. Even though the population in the area is small, there are five major direct com petitors right in town. There is even more competition from retailers in the Montreal market, which is only an hour away.

This 36,000-square-foot, contractor-fo cused store reported the highest annual sales increase of any of this year’s winners. In 2020, during the COVID pandemic, Luc Lamarche took over as the store’s general manager. He had previously managed a RONA store in Granby, Que.

Lamarche went to work at age 14 in his father’s home centre, which was actually the forerunner of the RONA Cowansville store. After being hooked on blueprints, Lamarche chose to take technical building studies in post-secondary.

Lamarche said their success stems from the company culture and attitude. “Our staff is always in solution mode and will always do everything in their power to make sure that ‘no’ is never an option when serving our customers,” said Lamarche.

In 2020, Luc was named general manager of the year for the Lowe’s Canada network, both regionally and nationally. RONA Cowansville also received the title of Lowe’s Canada’s pro store of the year.

Lamarche says that every single one of the 66 full-time staff, 18 part-timers, and some 10 seasonal workers at RONA Cowansville share in this award.

Luc Lamarche (second right), RONA Cowansville store manager; with (left to right) François Fournier, district manager at Lowe’s Canada; and Gino Allegro and Michelle Wood of Johns Manville Canada, sponsors.

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RONA KELOWNA

Kelowna is the hub of the British Columbia interior—and the fast est-growing municipality in the province. Regionally, RONA Kelowna serves almost 250,000 British Columbians. In 1995, RONA Home and Garden, with 30,000 products, was the first big box to enter the region.

Just five years ago, the same store won the Outstanding Retailer Award for Best Large Surface Retailer. The store has achieved even more since then. RONA Home and Garden Kelowna posted double-digit sales increases every single year for the past nine years.

Within 10 km of the store, there are two Home Depot stores and two Canadian Tire stores. There is a very competitive and wellrun lumberyard right across the street, plus other independents.

Store manager Matt Wachter says said it’s his impressive team of 220 employees that pull RONA Home and Garden out in front of such tough competition. “We hire the best,

invest in their skills, and we want them to stay with us for many years,” Wachter said.

The staff at RONA Kelowna are dedi cated. The average employee has been here for more than 15 years. Training for each employee isn’t an annual, a quarterly, or even a monthly event. It occurs once a week, usually in the form of e-training for product knowledge. The staff get very clear instruc tions from management about what RONA Kelowna aspires to be.

Kelowna, B.C.

Matt Wachter, store manager.

Get a new perspective from industry leaders.

The new podcast series from Hardlines provides news, insights, and retail intelligence for success.

What’s in Store

Dedicated to interviews with industry leaders from the retail, wholesale, and vendor sides of home improvement selling. Get insights into the trends and challenges confronting home improvement retail today.

Eric Palmer, VP and General Manager of Sexton Group, shares his dealers’ outlook on how people are spending their money as the economy opens up. Will travel, destinations, and events cut into the discretionary dollars that people have been spending on their homes? Have a listen!

Bernie Owens is the president and CEO of TIMBER MART, one of the country’s largest LBM buying groups. Here, Bernie shares his thoughts on the issues facing the retail home improvement industry today, including the ability of independents to react quickly to their local markets and the importance of buying groups.

The History of Home Improvement

Get ready for some history lessons in our ongoing history of home improvement retailing. These blasts from the past draw from the notable and pivotal moments in the growth of hardware stores, lumber yards, big boxes, and home centres in Canada over the past 50 years. Learn about the people and events that have shaped this dynamic retail sector.

Ace Hardware is one of the biggest and best-known hardware brands in the world. But its relationship with Canada has been a complicated one. In this podcast, you’ll learn how Ace made deals with different wholesalers and groups in Canada through the years before finding a new, viable home with Peavey Industries.

Have a listen as we celebrate this industry’s historical achievements. Sometimes fun, sometimes serious— but always thought provoking!

The Hardlines Podcast Series has been made possible through the support of:

Best Young Retailer WINNER

SHERWOOD TIMBER MART

Charlottetown, P.E.I.

Jillian Sexton impressed us with her hustle. Sexton manages two locations of Hector Building Supplies in Nova Scotia.

In early May 2017, before Jillian and her father, Don, acquired the business in Charlottetown, the store was in the pro cess of going bankrupt. The entire period from the day the Sextons learned about the bankruptcy to the store’s first day of operations under their ownership was less than two weeks.

Prince Edward Island is one of the fast est-growing home improvement markets in the country. Jillian Sexton has not missed

an opportunity to capture that market. The store, in a spectacular new location, serves almost the entire length of the booming

island with its deliveries.

Sexton has come a long way since she went to work in her father’s store at age 15. Now she manages 23 full-time employees in P.E.I. and 22 employees at the two stores in Nova Scotia. Her overriding business phil osophy is a simple one: treat others as you would like to be treated.

Sexton is also one of the most determined individuals we’ve met in this industry. Due to the P.E.I. border closing under COVID, Sexton—a Nova Scotia resident—was unable to get to the Charlottetown store for 10 months. Managing remotely was a challenge, but staff rose to that challenge.

On top of the pandemic and new store openings, Sexton was also pregnant for much of the year. Unable to spare the time to take maternity leave, she posted payroll for all three stores from her hospital bed.

“Bringing that store back to life has been such a labour of love. And it’s been a pleas ure to prove wrong all of the naysayers,” Sexton wrote in her entry.

Winner Jillian Sexton with Sarah Wilbrink of BMF, sponsor of the award.

Marc Robichaud Community Leader

GIBSONS BUILDING SUPPLIES

Gibsons, B.C.

According to Julie Reeves, the third-generation CEO and owner of this family-owned store, it was founded in 1947 in the spirit of “neigh bour helping neighbour.”

Neighbourly support has always been crucial to the residents of Gibsons, located on the Strait of Georgia in southwestern B.C. The community has no road access and can only be reached by barge, ferry, or by air.

“Gibsons Building Supplies has helped grow the whole coast,” Reeves said. “In one way or another, this business has touched almost every single building in our town. We do not turn away any event, organizer, charity, school, who comes looking for a donation.”

The store’s larger donations are focused on community organizations that sup port those in need. They include the Sunshine Coast Food Banks, Sunshine Coast Community Services, Habitat for Humanity, the Sechelt Hospital Foundation, and the Salvation Army.

The business also supports schools in the area. Smaller groups serving the arts com munity, youth and sports teams, animal shelters, seniors’ centres, and community events all benefit from Gibsons’ generosity.

During the personal protective equip ment shortage at the beginning of the pan demic, this business was quick to donate its stock of masks, face shields, and gloves

to doctors’ offices, ambulance services, and the local hospital.

“I respect the trust my customers and community put in us here at Gibsons Building Supplies,” said Reeves. “We serve at their pleasure and, in turn, they support us so that we can support our employees and community. It is a symbiotic relationship.”

Julie Reeves, owner and CEO of Gibsons, with her daughter, Mila Reeves Turenne.

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ANNAPOLIS HOME HARDWARE BUILDING CENTRE

Annapolis Royal, N.S.

This business was founded in 1973 by Rob’s parents, Robin and Beth Lawrie. Rob worked at the store from a young age and returned to the busi ness after university.

Joanne and Rob met at the store in 1996. In 1999 the couple purchased the hardware store from Rob’s parents. Then in 2008, they bought out a competitor down the street.

Annapolis Home Hardware then moved to a larger property, allowing Rob and Joanne to operate a Home Hardware Building Centre.

A new era of expansion had begun.

Today, thanks to the acquisitions of fellow Home Hardware stores in the region, Rob and Joanne have seven stores

under their umbrella. They consist of four Home Hardware Building Centres, two Home Hardware stores, and one Home Furniture store.

Joanne credits the attitude of their employees for their success.

“We are able to learn from each other, appreciate each other’s strengths, and sup port each other’s weaknesses,” she said.

What impressed the Outstanding Retailer Award judges was the volume and the passion of the testimonials from cus tomers. This store is not just patronized by this town; it is loved.

Rob and Joanne Lawrie, owners, with David Chestnut of Hardlines.

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Photo: Justine Apple Photography

BY CHRISTINA MANOCCHIO

HOW ONE YOUNG RETAILER IS EXPANDING INTO THE INDUSTRY

Before the age of 35, Jillian Sexton has started an empire of building supply and hardware stores on the east coast of Canada.

Sexton is the chief operating officer of two Hector Building Supplies in Pictou, N.S.; owner of Sherwood TIMBER MART in Charlottetown, P.E.I.; and a board member for Timber Kids Charitable Foundation. These are just some of the impressive attributes that led to Sexton winning Young Retailer of the Year at the Outstanding Retailer Awards this past fall. After the awards, Sexton gave us some insight into her business and the industry.

Photography: Heather Ogg

HOW DID YOU START IN THE HOME IMPROVEMENT INDUSTRY?

I started working in the Nova Scotia stores when I was 15, sweeping for my dad. That was my high school job. I did a little bit of everything through high school, and I was trying to decide what I was going to do for school. Sobeys is from Stellarton, [N.S.] and everybody goes to work there. My boyfriend at the time was going to go to school to work for Sobeys. I was trying to decide if that was the right fit for me.

Dad said to me in passing one day, ‘do you want to work for the next 20 years and make Sobeys successful? Or do you want to do it for yourself?’ I thought; that’s a good point, I’ll try it. Not everybody can walk into a successful store and have that oppor tunity. I thought I’ll try it, and I just fell in love with it.

Once I finished school, I did a little bit of every job. Everything from kitchen design to all the bookkeeping and accounting work. It wasn’t a real specific dad-stepping-down,

Sexton has come a long way from sweeping floors. Now she operates two businesses.

me-stepping-in—it happened very nat urally, just over time. As he got older, he wanted to do less and I wanted to do more. He really gave me the free rein to do that and to learn and grow and make mistakes. We were definitely in growth mode.

We got a call from somebody at Tamarack. The person who was going bankrupt with the P.E.I. store was trying to find someone to save it. I heard about it, and we went over and took a peek. I just had a good feeling about it. It was 11 days from the day that

COVER FEATURE JILLIAN SEXTON

It took Sexton just 11 days to turn around the store in Charlottetown.

we got that first call from TIMBER MART to our first day of operations because they didn’t want it to actually close for a period of time, That would be harder to bounce back from. We did it really quickly and the store opened back up very, very fast.

CAN YOU WALK US THROUGH THE SHORT TURNAROUND TIME FOR THE P.E.I. STORE?

We got a call one day saying, ‘do you want the store in P.E.I.?’ I was learning about the operation, looking at the terrible financials and if the store was going bankrupt. I talked

to accountants and lawyers about how we would make that work. Negotiating a deal with the receiver because of receivership. That was all basically the 11th day. We moved into the same building that they were in. We had to do inventory. We weren’t able to keep all the staff but we kept a good portion of the staff. We didn’t have to find a building and put up shelving but we had to order a ton of inventory, as there was nothing there.

Since they had been in such poor shape leading up to it, there was very little inven tory in the ground. I think we had half a

million dollars of LBM materials roll in over one or two days to try and have a healthy-looking yard when we started. That was what the 11 days consisted of. It wasn’t as much about finding a building and get ting shelving in there. It was more like dis covering whether or not we could bring the store back to life. The accounting, legal, HR aspects of training, trying to put something out there that would work, and then getting the doors back open immediately so that we didn’t lose all the customers.

Our sales this year will be higher than they’ve ever been with any of the owners.

COVER FEATURE JILLIAN SEXTON

There were two previous owners. This year will have the highest sales that store has ever had. It’s definitely a good Cinderella story.

WHAT WAS THE PANDEMIC LIKE FOR BUSINESS?

The whole industry has flourished. I don’t think it’s any big bragging point that we’ve had great sales, that’s sort of a given. If I didn’t have good sales last year, then, you know, something’s horribly wrong. But for us, especially in P.E.I., we were moving.

March 1 was supposed to be our first day in our new building. The construction [of the building] was delayed by a few days, so we were literally in the middle of moving when things started. I don’t remember the exact date, but it was around March 21 that P.E.I. shut down. I live in Nova Scotia and P.E.I. shut down all travel into the island. We were trying to get the store up and

running. I ended up being there remotely, starting only a couple of weeks after we were in the store. It was a whole added level. The pandemic was a lot for everybody, it was stressful. No one knew how things were going to go.

It was just another added level of stress that we didn’t need at the time.

WHAT’S IT LIKE BEING A BUSINESS OWNER AND A MOTHER?

It’s definitely easier to be the boss and be a mom, and involved with a business. I can make my own schedule and I have more power to be able to dictate what works for me. I realize how lucky I am that is where I am at. It’s equally hard for someone who’s in an entry-level position who loves their

job and wants to do it well, but is also a new mom. But they wouldn’t have the same amount of flexibility that I have, which is a lot of the reason why I brought it up. I wanted more people in the room that night [ORAs]. A lot of high-up people there are owners and decision-makers. I want it to be on people’s minds more, about those people who are in roles where they have less flexibility or less power to make their own decisions about what works for them and their families.

I spent so long wanting to be seen as the same as one of the boys. I was so scared that this was going to make me look weak or like, ‘oh, of course, she had a baby.’ There are so many stereotypes that surround that and I really struggled when I was pregnant. I didn’t want to be a part of that. After I had

the baby, I didn’t care about the stereotype. I’m going to do what works for me because I was surprised at how much I wanted to stay home with my baby. I wasn’t expecting that. I expected that since I love my job and I love working, I would want to jump right back to work. The fact that I didn’t was really surprising. I decided that I would have to make a plan that worked for me to be able to balance both.

There need to be more systems put in place, and more understanding so that more women can balance those two. I know I’m not alone in this. COVID actually made it a little easier to be completely honest because there was the switch to working from home. It did make it easier for me to not be on the road. For a good portion of the year, P.E.I. wouldn’t let me come to the island anyway.

COVER FEATURE JILLIAN SEXTON

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It did take some pressure off that I couldn’t travel as much as I would normally because of the pandemic. That was definitely a silver lining of the pandemic for me.

HOW DO YOU BALANCE BOTH?

I don’t know. That I haven’t figured out yet. I’m really lucky my husband is probably as much or more of a vocal feminist as I am. He is great at wanting to make sure things are fair and that we’re both taking on roles with Oliver. I recognize how lucky that is because that’s not always the case for women. If you found a working mother who told you that she has time to exercise and cook all of her meals and clean her house and join a book club all at the same time, I think she must be superwoman because it’s really hard.

Multitasking is key this is right now. As Oliver is sleeping, I’m talking to you and I’m getting my exercise all the same time.

My girlfriend and I both have kids and we talk about this all the time. The Instagram moms who seem to have it all together, they’re not helping women’s causes at all.

change the whole industry, but it should make you feel better. Any time that there’s awareness brought to it or it’s pointed out is helping. My advice would be, don’t be

They’re creating this image that I truly don’t believe exists, which is making other women feel inferior.

ANY ADVICE TO WOMEN IN THE INDUSTRY?

Speak up, 100 percent speak out. Nothing is going to change if you don’t say some thing. You might not have the power or you speaking out may not change the world or

afraid to say, ‘no, I don’t want to take notes. I don’t want to be the secretary, someone else can do it.’ It’s almost always assumed if I’m at a board meeting that I’m going to take notes.

I think it’s just really important to know that there’s a lot of people in our industry who find that I’m annoying talking about this all the time. But if I don’t say something, how’s it ever gonna get any better?

Speak up, 100 percent speak out. Nothing is going to change if you don’t say something.

“ ”

BY GEOFF M c LARNEY

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BYJOHNCAULFIELD

IN THE

DRIVER’S SEAT

Truck drivers are in short supply, but dealers are coping with hiring and training that consider a driver’s personal needs.

The Lawrie Group, which operates seven Home Hardware-affiliated stores in Nova Scotia, has 14 deliv ery trucks. Recently, this dealer “started to strategize our fleet,” says owner and presi dent Rob Lawrie, by limiting the number of delivery trucks with air brakes, which require a higher commercial driver’s license classification. For example, two of the company’s four knuckle boom trucks have hydraulic brakes.

At a time when “we typically don’t see people walking in off the street wanting to be drivers,” Lawrie says his company must maximize its driver corps, which consists of two to three full-time drivers, and several other employees with licenses to drive trucks. By doing so, it ensures that stores’ delivery service to customers isn’t disrupted.

For the most part, home improvement dealers and distributors have managed to minimize the impact of Canada’s peren nial shortage of truck drivers. Trucking HR Canada, a trade journal, estimates that the number of drivers nationwide will fall short by more than 17,000 in the coming years, even as the country’s current business activ ity exceeds pre-pandemic levels.

An ageing workforce that is not being transfused with younger blood, coupled with low pay, long hours, and vaccina tion and training mandates, has severely

These are certainly different times than when we grew up and the question was ‘what can we do for our employers?’”

“

PRO CORNER FLE

drained the driver pool, especially for longhaul transport. Trucking News reported in October that the labour force for younger drivers was down 38 percent from last January.

And while it may be a coincidence with this dire situation, Canadian Tire joined forces last spring with the Ontario govern ment and the startup NuPort Robotics on a two-year, $3 million pilot program to test the use of automated vehicles to transport products between the retail giant’s distribu tion centre in greater Toronto and nearby rail terminals. Canadian Tire did not respond to HHIQ’s request for comment.

“It’s definitely a competitive market” for drivers, says Steve Conroy, director of merchandising and supply chain for Slegg Building Materials, whose 10 locations on Vancouver Island. are supported by 200 trucks and about 70 drivers. Conroy adds that some of Slegg’s competitors that are “desperate” for drivers have been offering “crazy numbers” for compensation.

The truck driver shortage has elevated pay to a negotiating chip when it comes to recruiting, hiring, and keeping drivers. Conroy notes that the $15.20 per hour min imum wage “is meaningless” for drivers in B.C., where fast-food workers are earning $15.20 an hour. Still, dealers and distributors insist that pay isn’t necessarily a make-orbreak factor. Slegg’s strategy for attracting and retaining drivers is to always present

itself as “the employer of choice that looks after its drivers’ well-being,” says Conroy.

Treating their drivers humanely and with greater respect for their personal needs seems to be a winning formula for dealers and distributors across Canada, and one that has been made necessary by the coun try’s ongoing supply-chain problems.

“These are certainly different times than when we grew up and the question was ‘what can we do for our employers?’” says

Ivan Cottreau, production manager for E&J Millworks in Yarmouth, N.S., which oper ates with four trucks and three drivers.

CASTING A WIDER RECRUITMENT NET

With fewer workers willing to drive trucks for a living, dealers and distributors say they’ve had to refine their recruitment, hiring, and retention practices.

That includes companies that rely pri marily on contract carriers, like Weston Lumber, a Mississauga, Ont.-based dis tributor that contracts with Canadian Cartage Services (CCS) for a dedicated fleet of a dozen trucks and drivers. Weston also books 100 loads per week with third-party carriers.

Kyle Gibbons, general manager for Weston Lumber’s Commodity Lumber

and Retail Group, says his company tries to make CCS’s drivers feel at home with separate lounge and wash-up areas. While Weston Lumber hasn’t experienced prob lems with driver staffing yet, Gibbons con cedes that, if shortages got worse, increasing haul rates—which is how it pays drivers— might be the next step, as it has been for CCS’s business in the U.S. where haul rates have jumped by as much as 50 percent.

Chatham-Kent Home Hardware Building Centre has been turning to job-post ing websites like Indeed as well as reader boards in front of its two stores in Ontario to recruit. Under normal market condi tions, Chatham-Kent has five commercially

Rob Lawrie

Steve Conroy

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licensed drivers for its 15 trucks. But find ing drivers, especially those with AZ or DZ licenses for vehicles with air brakes trans porting heavier loads, “is still very hard,” says store manager Ryan Arens. Add to that the need to meet the expectations of drivers who are seeking more of a work-life balance.

ALLOWING DRIVERS TO BE PART OF THE SOLUTION

TimberTown Building Centre in southeast Calgary employs two truck drivers who have worked for the company for 18 and ten years, respectively. “Our drivers have been with us for so long that we haven’t given much thought” to recruiting in the event one of those drivers were to leave, says store manager Chris Dupont.

Engendering and sustaining such loyalty now requires greater flexibility about work hours and scheduling, as well as a willing ness to listen and respond to drivers’ con cerns about such matters as safety.

A regular work week for drivers at E&J Millworks is 42.5 hours. But if they come in early or work past 5 p.m., they have the option of taking time off or receiving overtime. Ivan Cottreau at E&J says that most choose the time off. The company also allows drivers some personal time “with no

questions asked,” says Cottreau, if they give the company advance notice.

“If one of our drivers needs a day off, he gets it,” says Dayton Point, general manager for Gibsons Building Supplies in Gibsons, B.C., with nine drivers and 12 trucks. Point credits this dealer’s third-generation man aging director and CEO, Julie Reeves, with Gibsons’ “open arms policy” that “treats people like human beings” by “expanding your personal being to all of the staff.”

As of late November, Turkstra Lumber’s 11 locations in Ontario had only one driver position vacant. It has 42 trucks and 32 drivers and monitors its markets’ driver shortage situation quarterly. That includes

“appreciate that they’re home each night for dinner and on Sundays.”

Its talks with drivers have improved Turkstra’s logistical efficiency, too. Pocaluyco says his company expects to deliver five loads for two-story house con struction but had one job where it made 72 loads because it kept having to take stuff back. Now, he says, Turkstra has reduced its double deliveries to two percent and rout ing improvements “make sure that the right truck is used for the right load.”

DRAWING DRIVERS WITH HIGH STANDARDS

Home Hardware Stores, which supports distribution to its dealer network with 150 tractors, 600 trailers, and 170 driv ers, was fully staffed with drivers as of late November. Jason Libralesso, the com pany’s director of transportation, attributes Home’s success at recruiting and retention, in part, to its rigorous equipment and safety standards and strong hiring practices.

When recruiting, Libralesso says that it’s important for drivers to “know what they’re getting into.” For example, Home’s atten tion to equipment maintenance means less downtime for its drivers. Home also collab orates with its drivers on safety protocols, training, and schedule planning “so they know where they’re going at all times.”

The consistency of its driver workforce has allowed Home Hardware to act as the “transportation arm” for some of its suppli

having frequent conversations with drivers to gauge their job satisfaction. “Drivers like our safety-first attitude, and that we have their backs” in disputes with customers, says Trevor Pocaluyco, Turkstra’s director of operations. He adds that drivers with long-haul experience in their backgrounds

ers that also struggle to find drivers. It has connections with third-party carriers that it uses in some markets for efficiency and for inbound pickups. And at peak periods, the company has used retired drivers part-time.

Lawrie, the Home Hardware dealer in Nova Scotia, suggests that his buying

Drivers like our safety-first attitude, and that we have their backs. “ ”

group’s “excellent” driver retention record could be because its delivery people “have personal relationships with each store. It’s all about culture; that’s the distinguishing piece.” Lately, Lawrie has been looking to hire “versatile” drivers who, he explains, are able to work in different retail environ ments. Lawrie’s group includes hardware stores, lumberyards, and a furniture store. He notes, too, that his stores are closed on Sundays and don’t make deliveries on week ends except on special occasions, which means his drivers have more personal time.

DOES TRAINING ENCOURAGE LOYALTY?

Home Hardware Stores prefers to hire driv ers with five years’ experience and clean driving records. But given the difficulty of

getting younger drivers hired and insured, Home will take on less-experienced driv ers “who have the right attitude,” says Libralesso, and pair them with seasoned drivers during their training period.

Training is critical to retaining and insuring drivers, and dealers and distribu tors see it as the cost of doing business these days. If a yard worker at Turkstra Lumber wants to make more money as a driver, the dealer will pay for his training and licens ing, says Pocaluyco. Turkstra has also part nered with a third-party company, KRTS Transportation Specialists, to develop a driver’s education program to help get younger drivers insured.

However, some provinces are imposing stiffer training mandates. Anyone now applying for a Class 1 license in British

Columbia is required to complete manda tory entry-level training courses before a road test. This new program costs $15,400 per applicant.

Any investment dealers and distribu tors make in their drivers run the risk that once trained, the driver will bounce to another company that pays slightly bet ter. Point of Gibsons Building Supplies probably speaks for many dealers when he expresses the hope that loyalty is a twoway street.

“We had an employee recently who wanted to be a driver and said he needed to take courses. Our owner asked ‘who do I make the cheque out to?’ While we don’t ask them to sign contracts, we do expect some commitment. Our drivers seem to stay with us for years.”

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A BORDER TOWN BUILDING CENTRE WITH A FINGER ON THE PULSE

The area that Lavoie Home Hardware serves straddles the boundary between two provinces. When travel between them was restricted by lockdown, the business felt the impact. But it bounced back bigger and better with a new lumber yard and seen sales soar.

Marco Lavoie had been a Home Hardware dealer-owner for more than a decade when his store began a new chapter. The former Campbellton Home Hardware became Lavoie Home Building Centre, complete with a new lum ber yard.

“One of our competitors closed and the field was open,” says Lavoie. “People want their stuff delivered with service so we took the opportunity.

“Since then we’ve had a big increase in sales. The lumber side has grown a lot.” In fact, in its first three months under the new banner, sales shot up 34 percent from 2020.

“Lumber is a different world and with the price inflation we had this year because of COVID, it was a big challenge for a new dealer.” Hiring additional staff helped Lavoie turn that challenge into an oppor tunity for sales growth.

The business has achieved this growth against the backdrop of challenges brought on by the pandemic, all while maintaining the connections to the local community that have made the business stand out.

Campbellton is near the New BrunswickQuebec border. “We serve customers from each side of the Baie des Chaleurs,” Lavoie boasts. But the closure of the interprovin cial bridge during lockdown cut his Quebec customers off from the store. That included the Mi’gmaq people of the Lisuguj reserve immediately opposite Campbellton, who

Hardlines Home Improvement Quarterly

Marco Lavoie has been glad to welcome back customers from Quebec after a period of border closures.

The store goes all out to make Christmas special for the whole community.

form a major bloc of customers for the store.

While Lavoie continued to offer delivery on both sides of the border, the business still felt the impact of the bridge’s closure. “We’re glad it’s back to normal. It sure affected the traffic we had before.”

the store’s annual Christmas Magic event is held for their benefit. It brings together more than 200 women for lunch and an afternoon of shopping and socializing.

The store supports another refuge for women in Listuguj, Breakfast Clubs in local

Centre’s approach to customer service. The team regularly makes house calls, whether it’s to help out with a wood stove, fireplace, plumbing, or decorating.

Sometimes, outreach means simply lift ing spirits. “We do a big Christmas store event every year. It’s huge. We have lots of success because people are happy to have a place to change their state of mind and get into the spirit of Christmas.”

All these changes haven’t slowed down the store’s dedication to giving back to the community that patronizes it.

A local shelter, Maison Notre-Dame, helps women and children to get out of violent home situations. The store is one of the bigger sponsors, Lavoie notes, adding

schools, and a community soup kitchen, which gets its supplies from Lavoie at cost. Lavoie’s store has also lent support to chil dren and teens in the region suffering from cancer.

That sense of commitment to the com munity extends to Lavoie Home Building

The store’s active social media presence helps it to remain in touch with the com munity and its needs. “We are really active on Facebook,” says Lavoie. “We did lots of work on our page and we have someone who’s on that all the time.”

For Lavoie, it’s all part of keeping a finger on the pulse of the people he serves.

“We’re in a small community, but we take care of them.”

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We’re in a small community, but we take care of them. “

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