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SECOND SECOND QUARTER QUARTER / 2022 / 2022

Mike Perry HILLHURST HARDWARE Calgary

HOME IMPROVEMENT QUARTERLY

CITY LIMITS F E AT U R E S T O R Y

Mike Perry tells us how his family’s downtown hardware store has conquered Calgary

A L SO INSIDE

CONTRACTOR FEEDBACK

Why you need it and how to get it

RETAIL MARKETING

How the pandemic has changed the game

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SECOND QUARTER / 2022 • VOLUME 12, NO. 2 330 Bay Street, Suite 1400, Toronto, ON M5H 2S8 • 416-489-3396 @Hardlinesnews • www.hardlines.ca

PRESIDENT Michael McLarney mike@hardlines.ca

VICE PRESIDENT & PUBLISHER David Chestnut david@hardlines.ca

EDITOR Christina Manocchio

MARKETING & EVENTS MANAGER Michelle Porter michelle@hardlines.ca

ACTING EDITOR Steve Payne steve@hardlines.ca

ART DIRECTION Shawn Samson TwoCreative.ca

ASSISTANT EDITOR Geoffrey McLarney geoff@hardlines.ca

ACCOUNTING accounting@hardlines.ca

CONTRIBUTING WRITERS Heather Beaumont John Caulfield

COVER PHOTOGRAPHY Colin Way colinway.com

Hardlines Home Improvement Quarterly is published four times a year by Hardlines Inc., 330 Bay Street, Suite 1400, Toronto, ON M5H 2S8. $25 per issue or $90 per year for Canada.

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V O L UME 12, NO . 2

SECOND QUARTER / 2022

CONTENTS

DEPARTMENTS

COVER STORY

CITY LIMITS urban 18 Canada’s neighbourhoods

feature notoriously high rents for retailers. No problem, says Calgary’s legendary Hillhurst Hardware

NEWSROUNDUP

PAGE 10

Tony Cioffi is appointed president of Lowe’s Canada

Women leaders at Home Hardware honoured Canadian Tire celebrates 100th with marketing and messaging TORBSA focuses on growth with new members—and a key new hire

9

EDITOR’S MESSAGE

Parting words

30

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49

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Dealers supplement the daily feedback they receive with surveys, customer-specific purchasing, and head office help

32

PRO CORNER

Lowe’s, Home Depot post big jumps in earnings, comps

RETAILERS DOUBLE DOWN ON MARKETING

Canac grows with new stores and expanded DC

make consumers nervous. Retailers are responding in creative ways

Former Depot exec pens book, recalls Canadian entry

Covid-19 restrictions ease, 40 While inflation and oil price shocks

SECOND QUARTER / 2022

7

EDITOR’S ME S S AGE

CHRISTINA MANOCCHIO, EDITOR

PARTING WORDS It’s been a privilege to edit HHIQ

I

made the tough decision a few months ago to leave Hardlines and pursue other opportunities.

It’s been a privilege to edit HHIQ. It’s been a great ride and I want to thank everyone in the industry for their support of what we do here.

I hope my final issue of HHIQ is a great one and that I’ve left on a high note. This edition is packed with advice and information from industry experts.

Marketing can be a tricky area for a home improvement store at the best of times. Add in the pandemic and rampant inflation and the marketing puzzle becomes even more complex. Our marketing article (page 40) highlights some innovative new tactics from BMR, Home Hardware, and Lee Valley Tools, among others.

Our cover story this month (“City Limits,” page 18) focuses on urban retailing. Hardware stores in downtown areas have been disappearing due to high rent and demand for housing. But that hasn’t stopped some big city home improvement retailers from hitting it

www.hardlines.ca

out of the park. Our article starts with the success of Hillhurst Hardware, Calgary, and then we move on to look at Southridge Hardware in Delta, B.C. and Cook Street Castle in Victoria, B.C. Bill Morrison, retail consultant, adds his own perspective to our story.

On the building supply side, John Caulfield has penned an article (page 32) about how to get better feedback from your contractor customers. As we emerge from the pandemic, there’s no better time to ask your pro customers how they are doing and how they feel that you are doing. Read this article and get some tips to possibly upgrade your own customer feedback mechanisms.

It’s been a pleasure to write about this industry and, once again, thank you for reading.

“

I want to thank everyone in the industry for their support.

Hardlines Home Improvement Quarterly

”

SECOND QUARTER / 2022

9

NEWSROUNDUP OF THE HOME IMPROVEMENT INDUS TRY

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

TONY CIOFFI APPOINTED PRESIDENT OF LOWE’S CANADA

C

anada’s number-two home improvement retailer has a new boss. Tony Cioffi was appointed president of Lowe’s Canada at the beginning of the year, replacing Tony Hurst, an American who had been sent up at the beginning of 2020 to steer the Canadian division.

Hurst has returned to Lowe’s U.S. as senior vice president of pro services and international. Cioffi reports to Hurst in his new role.

Cioffi actually had the top job in Canada once before. He served as Lowe’s Canada president on an interim basis following the departure of former Lowe’s Canada president Sylvain Prud’homme in October 2019.

During that time, Cioffi kept the company on track while a new CEO of the parent company, Marvin Ellison, got a handle on the Canadian operations.

Cioffi was most recently Lowe’s Canada’s senior vice president, stores. He joined the company in 2016 as senior vice president,

Tony Cioffi was appointed president of Lowe’s Canada, replacing Tony Hurst, an American who had been sent up at the beginning of 2020 to steer the Canadian division.

finance, as well as group financial officer.

Before joining Lowe’s Canada, Cioffi held leadership roles at ADT Canada and Bell

Helicopter Textron Canada. He also served as president and CEO of the Reader’s Digest Association (Canada).

WOMEN LEADERS AT HOME HARDWARE HONOURED Two senior employees at Home Hardware Stores have been recognized as outstanding leaders in the 12th annual Top Women in Retail report published by the Women in Retail Leadership Circle.

Marianne Thompson, senior vice-president, merchandise, was named as a 2022 Top Women in Retail honouree. Jessica Kuepfer, director of communications, was recognized as one of this year’s Women on the Rise.

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SECOND QUARTER / 2022

Top Women in Retail honourees are selected based on criteria such as position within their retail organizations, scope of responsibility, career achievements, and involvement within the retail industry.

Women in Retail Leadership Circle is a community of women executives at leading retailers throughout North America. It has a mission to foster leadership development for members through events, content, and connections.

Hardlines Home Improvement Quarterly

Marianne Thompson

Jessica Kuepfer

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KNOWLEDGE IS POWER. Stay in the know every single week with HARDLINES. Subscribe online at Hardlines.ca

BRIEFLY

CANADIAN TIRE CELEBRATES 100TH WITH MARKETING AND MESSAGING

W

ith a 100-year history behind it, Canadian Tire has gone to market this year with messaging that draws from that history.

At the beginning of the year, the company rolled out a TV ad that featured segments from ads over the years. In addition, the company recruited a number of Canadian celebrities to share their memories of their experiences at Canadian Tire—including a funny bit by Ryan Reynolds on Instagram.

Canadian Tire has even added a scented candle to its line. Called Canada’s Scent, it smells just like a Canadian Tire store.

Canadian Tire got its start in 1922, when two brothers, John William Billes and

Alfred Jackson Billes, bought a tire reseller in Toronto called Hamilton Tire and Garage Ltd. The company’s first Canadian Tire store, still in operation, was on Yonge Street and Davenport Avenue in midtown Toronto.

With more than $18 billion in consolidated retail sales through more than 500 stores, Canadian Tire is one of Canada’s largest retailers. It is located in every province and territory except Nunavut. Stores are independently operated and co-owned

by Canadian Tire’s associate (franchise) dealers. The dealers own the fi xtures, equipment and inventory, while the head office owns the real estate.

PEAVEY TO ENTER MARITIMES WITH NOVA SCOTIA STORE Peavey Mart will enter the Atlantic Canada market in September when it opens its first store east of Ontario. The 39,000-square-foot Bedford, N.S., location will be the farm and ranch retailer’s 90th overall.

GIANT TIGER TEAMS UP WITH DEBBIE TRAVIS Giant Tiger Stores Ltd. has forged a partnership with TV interior designer Debbie Travis to promote a new home décor collection. The Debbie Travis Collection is now available in stores and includes decorative pillows and throws, quilts and bedding sets, bath linens, shower curtains, and window curtains.

BMR DRIVES PERFORMANCE AT SOLLIO GROUP Sollio Cooperative Group closed the fiscal year with sales of $8.3 billion—up 10 percent from the previous year, despite a downturn in profitability. However, Sollio’s retail division fared well, thanks to a banner year for its BMR Group division. Demand for construction and renovation materials remained high, offsetting the impact of challenges ranging from supply chain pressures to rising container prices.

FEDERATED CO-OP REPORTS STRONG YEAR Federated Co-operatives reported more than $9 billion in revenue and $495 million in earnings for fiscal 2021. That was up from $7.9 billion in revenue and $177 million in earnings in 2020. Its Home and Building Solution business, which serves Co-op home centres, generated $451 million in wholesale sales, representing a 24 percent increase over 2020 and a record year in topline sales for the division.

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Hardlines Home Improvement Quarterly

SECOND QUARTER / 2022

11

NEWSROUNDUP

TORBSA FOCUSES ON GROWTH WITH NEW MEMBERS—AND A KEY NEW HIRE

T

ORBSA, the Ontario-based buying group, has experienced a lot of growth over the past year. Once content to hold a role as a small, boutiquetype group with a couple of dozen members, mainly in Ontario, it has since set its sights higher.

“We’re trying to grow the business,” says TORBSA president Paul Williams. He refers to the trend of ongoing consolidation within this industry, where “there’s a real emphasis on growing at the buying groups—not just with us, but our competitors as well.”

Just before press time, TORBSA signed Pro-Depot, a contractor-specialist supplier in the Montreal borough of Lasalle. Before that, the group added PSC (Produits & Services de la Construction) and Apex Construction Specialties. With four locations in Quebec, PSC has distributed specialized construction materials since 1957. In 2017 it entered the Atlantic market with the acquisition of Newfoundland-based Apex.

Just two months earlier, ADSS Building Supplies, with locations in Edmonton and

Calgary, joined the group as well. It joined another new member from the west, JDS Building Supply in Saskatoon. Under company founder Justin Scheuer, JDS services the commercial and residential stucco and exteriors markets across Saskatoon and surrounding areas.

Earlier in 2021, TORBSA signed two more dealers in the Greater Toronto Area. In June, it added Peridot Supply in Brampton, Ont., which has a focus on the commercial and residential roofing markets across the GTA. And in April 2021, TORBSA announced the addition of RB Building Supply in Brampton, Ont.

Finding the right fit to help it grow in Quebec took some searching, but just before Christmas, TORBSA announced the appointment of John Longo as business development manager for eastern Canada.

Longo brings more than 20 years of experience to the role, having recruited for RONA, Lowe’s Canada, and BMR. “His phone is ringing off the hook thanks to his wealth of connections,” says Williams.

Growth is coming from existing members as well. Pro Con Building Supplies, based in Brampton, Ont., has opened a third location—with a fourth on its way. A brand new location is to open in May in Oshawa.

LOWE’S, HOME DEPOT POST BIG JUMPS IN EARNINGS, COMPS The industry’s two largest players reported strong fourth-quarter and year-end results, both offering an indication of the continued buoyancy of home improvement retailing in North America.

Home Depot reported Q4 sales of $35.72 billion, up 10.7 percent, while comp sales grew by 8.1 percent. Earnings for the quarter came to $3.21 per share. Home Depot’s divisions in the U.S. posted positive comps of 7.6 percent in the fourth quarter while the Canadian division actually achieved doubledigit comps.

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SECOND QUARTER / 2022

For the fiscal year 2021, Home Depot earned $16.4 billion on sales of $151.2 billion, which were up 14.4 percent. Comps for the year were up 11.4 percent.

A day later, Lowe’s released its numbers, announcing fourth-quarter earnings of $1.21 billion, or $1.78 per share, up from $978 million ($1.32 per share) a year earlier. Sales rose to $21.34 billion from $20.31 billion.

U.S. same-store sales grew by 5.1 percent.

For fiscal 2021, Lowe’s reported earnings of $8.4 billion on sales of $96.3 billion, up from $5.8 billion and $89.6 billion respectively. For

Hardlines Home Improvement Quarterly

the year, comp sales increased by 6.9 percent.

Looking ahead, both companies are displaying caution. Forecasting its performance for 2022, Lowe’s expects total sales of $97 billion to $99 billion, with the occurrence of a 53rd week expected to increase total sales by between $1 billion and $1.5 billion. Comparable sales are expected to range from a decline of one percent to an increase of one percent.

Similarly, Home Depot expects sales growth and comparable sales growth to be slightly positive in 2022, while its operating margin is forecast to be flat compared to 2021. www.hardlines.ca

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NEWSROUNDUP

CANAC GROWS WITH NEW STORES AND EXPANDED DC Canac’s latest expansion on the south shore of Quebec City ties in with the completion of a second building at Canac’s Drummondville, Que., distribution centre.

BRIEFLY

QUEBEC DEALER JOINS CASTLE Matériaux de Construction Létourneau has joined Castle Building Centres, building on the buying group’s growth in Quebec.

Based in Waterville, it also has a location in Bromptonville, a borough of Sherbrooke.

CANADIAN ACQUISITIONS HELP DRIVE SALES FOR GMS Gypsum Management & Supply Inc. saw Q3 sales rise by 53.6 percent to $1.15 billion. Earnings of $61.4 million were up from $16.1 million in the comparable period of the company’s fiscal 2021. Strong residential markets boosted sales, as did GMS’s acquisitions of D.L. Building Materials, Westside Building Material, and AMES.

PRINCESS AUTO MAKES FORBES LIST OF TOP COMPANIES

Q

uebec home improvement chain Canac is expanding at a rapid rate. That includes new stores and the construction of a store and fulfilment centre in Lévis, on the south shore of Quebec City.

The distribution centre is the priority for the privately-owned company, says Canac’s marketing director, Patrick Delisle. He expects that DC to be operational by the end of 2022 or early 2023.

“As for the store that is planned to go with it, it will probably take a few years. We already have Contrecœur near Montreal planned out for the end of 2022.”

The new facility will enable Canac to take the pressure off its already overburdened delivery centre on the north shore, where Canac’s head offices are located.

“For many years now the old delivery centre hasn’t been able to keep up with our growth,” Delisle said. The new location responds to a need to shorten delivery distances and overcome the increased

14

SECOND QUARTER / 2022

volume of traffic over the two bridges that span the river at Quebec City. “Now with DCs on both sides of the St. Lawrence River, we can serve more clients and go a little farther.”

The latest expansion efforts tied in with the completion of a second building at Canac’s Drummondville, Que., distribution centre. The 432,000-square-foot structure is geared toward seasonal products and building materials. It sits on a millionsquare-foot lot that Canac purchased in 2019, situated in an industrial park opposite a DC Canac already has there.

The planned opening of the Contrecœur store, which began construction last summer, follows the opening in the spring of 2021 of Canac’s 31st store, in La Prairie, Que. And despite delays, Canac remains on track to open a new store in Rivièredu-Loup, Que., sometime in 2023. The chain acquired the site in 2017, but environmental regulations, among other factors, held up construction.

Hardlines Home Improvement Quarterly

Princess Auto made Forbes’s 2022 list of Best Employers in Canada, coming in at number 43. Forbes partnered with market research firm Statista to compile the annual list by surveying more than 10,000 Canadians working for businesses with at least 500 employees.

LOWE’S CANADA TO ELIMINATE PLASTIC BAGS Lowe’s Canada is the latest retailer to ramp up efforts to eliminate plastic bags in its stores. It will gradually stop offering single-use plastic shopping bags in corporate stores and participating RONA affiliate stores by June. The company, which started charging for these bags in the summer of 2018, is continuing its efforts to minimize the environmental impact of its operations. So far, the initiative has resulted in 24 million bags being eliminated at the store level.

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NEWSROUNDUP

FORMER DEPOT EXEC PENS BOOK, RECALLS CANADIAN ENTRY

J

im Inglis can count himself as one of the pioneers in the retail success story that is The Home Depot.

After spending 13 years in a series of executive positions in the early days of Orange Crush, he went on to consult for some of the top home improvement retailers in the world. They include Sodimac in South America and Hornbach in Europe. Now, he’s the author of a new book, Breakthrough Retailing: How a Bleeding Orange Culture Can Change Everything.

Inglis fondly recalls his decision to join Home Depot. In the early 1980s, the big box was considered an outlier, and not a very viable one at that. “I asked around the industry about this new thing called Home Depot, and was told, ‘Boy, stay away from those guys. They’re crazy!’ It was a big leap of faith to finally join the Depot. But certainly it was a very good decision and was a great ride.”

Inglis speaks of one of the founding fathers of Home Depot, Pat Farrah, with fondness. “Every new concept in retail requires a merchant prince. For Home Depot, Pat was the merchant prince. He was that spark of creativity and ingenuity.”

If Farrah was “the creative genius,” the two other founders, who built the business over the longer term, likewise had their roles. Arthur Blank was “the financial genius,” while Bernie Marcus was “the ombudsman,” he says. “Bernie was the guy that would always be listening to the customers. He’d be listening to the vendors. He’d be listening to the financial community. He’d be listening to the employees. As a result, he created an environment where we were responsive to our customers, responsive to our stores. That was his contribution. Each of

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SECOND QUARTER / 2022

Jim Inglis, who became one of the key executives at Home Depot, writes that the retailer was disrespected in its infancy. “l was told, ‘Boy, stay away from those guys. They’re crazy.’ ” those gentlemen had a very specific role in creating that culture.”

Inglis recalls Home Depot’s entry into Canada. The Canadian industry had been closely watching the rise of Home Depot and several companies were developing big boxes of their own. One, in particular, was best poised for success. Aikenhead’s had been developed by a former Home Depot exec. “We determined that we could enter Canada faster and more profitably if we purchased Aikenhead’s,” Inglis said.

Hardlines Home Improvement Quarterly

www.hardlines.ca

‘’ADDING A RETAIL COMPONENT

to our store has created stability for our business.

THE BRAND helps create a balance between retail/hardware and LBM.’’

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COVER FEATURE

URBAN RETAIL

CITY LIMITS

BY CHRISTINA MANOCCHIO AND STEVE PAYNE

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SECOND QUARTER / 2022

Hardlines Home Improvement Quarterly

Hillhurst Hardware Photography: Colin Way

Urban retail environments are rapidly changing, driven by condo towers that are springing up in Canada’s major cities. What does this mean for the once-commonplace city hardware store? Unless they are specialty stores, dominant in a particular niche like HILLHURST HARDWARE, Calgary, the writing might be on the wall.

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Some of the team members from Hillhurst Hardware, Calgary. From left: Randy Laroche, Stacy Pawlowich, Phil Larkam, Jackie Larkam, Abdellatif Eldood, Mike Perry.

www.hardlines.ca

Hardlines Home Improvement Quarterly

SECOND QUARTER / 2022

19

COVER FEATURE

URBAN RETAIL

T

he downtown areas of many Canadian cities are undergoing rapid densification—driven mostly by condo towers. Urban Canada is undergoing its biggest transformation since the rise of the skyscraper in the 1930s. This article looks at how these changes are affecting urban hardware stores.

Running a successful hardware store in the city has always been a challenge because of higher real estate costs and limited space.

Home improvement stores which are still thriving in downtown environments have become rare. Hillhurst Hardware in downtown Calgary is one such business.

The 5,500-square-foot Hillhurst store was founded in 1945 by Abraham Singler, a Montreal native who moved to Calgary after serving in World War 2. He opened

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SECOND QUARTER / 2022

Husband and wife team Jackie and Phil Larkam are the third generation of the family to operate Hillhurst Hardware. his store on a loan and a handshake. Money was tight, so Singler slept in the basement of the store rather than buying a house.

Back then, Calgary had less than 100,000 residents. The working-class neighbourhood of Kensington, just north of the Bow

Hardlines Home Improvement Quarterly

River, where Hillhurst is located, looked far different from the hip “urban village” that it has become today.

Today, Hillhurst Hardware is being operated by the third generation of the family.

Husband and wife owners Phil and Jackie

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COVER FEATURE

URBAN RETAIL

Hillhurst Hardware manager Mike Perry is happy doing business the old-fashioned way, face to face.

Larkam (Jackie is Abe’s granddaughter) have teamed up with Jackie’s brother Mike Perry, who is the manager.

Hillhurst is an unusual store in many respects, starting with its proudly independent status: It is not a member of a co-op or banner group. Above all, Hillhurst is a contractor specialist store. Pros come to its downtown location from all over Calgary and beyond. “We carry almost anything a framer, cribber or finisher will need when

“

but most things are direct. We punch above our weight, that’s for sure.”

In an era, especially since the pandemic, when online shopping has gone supernova, Perry says that Hillhurst Hardware is happy doing business the old-fashioned way, face to face. “We barely sell anything online,” said Perry. “Contractors want to come in and hold the tool, feel the balance of it.

They want to put on a tool apron and feel the weight of it.”

All the construction going on is, in some aspects, pretty good—because it’s right on our doorstep.

it comes to tools and fasteners,” says the store’s website.

Manager Mike Perry said that the store is such a big player in contractor tools that it can buy direct. “We buy direct from manufacturers,” said Perry. “We have arrangements with different guys [suppliers] locally

22

SECOND QUARTER / 2022

”

But things are rapidly changing with the increasing densification of downtown Calgary. The city is already one of the most condo-populated cities in Canada with 22 per cent of its citizens living in condos at the time of the 2015 census. Perry says that trend is just accelerating. “We’ve had

Hardlines Home Improvement Quarterly

a mayor who kept pushing higher density.

We’re seeing more townhouses and condo towers with main level retail stores. We are by far the oldest store on our block.”

Hillhurst has adapted well to the nearby developments because it is a store that caters to the pros. “All the construction going on is, in some aspects, pretty good—because it’s right on our doorstep,” Perry said. “With the congestion and everything, it’s getting busier down here. Sometimes it’s hard to get product in but we work around that.”

Perry feels that the family wouldn’t be able to open a hardware store in their current location today. “Realistically, if we were trying to open this store now, let’s say starting fresh and doing what we do, we wouldn’t be able to be in this area. We would be in a commercial area, convenient for the whole community,” said Perry. The rents downtown are ferocious. Fortunately, Hillhurst owns its own building. “If we didn’t, the lease would be astronomical,” Perry said.

Hillhurst operates in a prosperous local area nowadays. Average household income was reported as $92,236 in the 2015

www.hardlines.ca

COVER FEATURE

census. But, again, Hillhurst Hardware is more focused on contractors from all over Calgary than it is as a neighbourhood hardware store, as important as that role remains.

WRITING ON THE WALL?

While Hillhurst Hardware in Calgary has been able to thrive with the towers popping up around its store, urban densification is relentlessly taking over spaces that once hosted home improvement retailers.

Take Southridge Hardware in Delta, B.C., for example. The condo towers keep proliferating in the Greater Vancouver Area in which it operates. Today, more than 30 per cent of all households in the GVA are located in condo buildings.

Southridge Hardware is currently located in an older 42,294-square-feet shopping mall, Nordel Centre, which was bought by a developer for a reported $21.35 million in mid-2021. “The writing is on the wall,” said Tony Deane, operations manager at the store. “We think he’s going to tear it down. Council wants affordable housing.

We think they are going to go that route.”

The store’s lease is up in July 2022.

Finding a new space that could accommodate Southridge Hardware’s requirements will be nearly impossible, Deane explained. “It just wouldn’t make sense for

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URBAN RETAIL

us [to relocate] since there are certain things we would need,” Deane said. “It would just make it very, very difficult.”

Southridge Hardware was established some seven years ago by Tony Deane’s father, Terry Deane. “It was a pet project for my Dad,” Deane said. “He wanted to give it a go. It was next to a pub that my Mom and Dad would go to.”

The Deane family are veteran Vancouverarea building supply dealers (ex-Hollyburn Lumber) who also operate Southridge Building Supplies in Langley, B.C. “We always thought of the hardware store as a standalone operation,” not as just another way to promote the building supply

“

Southridge Hardware founder Terry Deane, now retired, with his son Tony Deane, who manages both of the family’s outlets: the hardware store in Delta and a building supply in Langley, B.C. “the boxes started to flourish—Canadian Tire, Home Depot, RONA. I think he saw the writing on the wall.”

URBAN HARDWARE AS A CONCEPT

So, as urban areas densify, hardware stores are being pushed out. “There’s no lack of opportunity (for hardware stores),” says Bill Morrison, retail consultant. “Downtown Toronto, Vancouver, Montreal, Calgary, and Ottawa are vital areas with a lot happening. Obviously, lots of people that pot-

It just wouldn’t make sense for us [to relocate] since there are certain things we would need. It would just make it very, very difficult. side of the business, Tony Deane said. “It did OK. We thought it would do better.”

The unit that now houses Southridge Hardware had once been a Home Hardware, Deane recalls. It was vacant for a few years before the Deane family opened their hardware store. The former hardware store was doing well but the owner wanted out when

Hardlines Home Improvement Quarterly

”

entially could shop a hardware store,” said Morrison.

But urban areas are problematic for hardware stores because a home improvement retail business require three things, Morrison explained.

“One, it requires a relatively large space because customers want a complete

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URBAN RETAIL Vicki Hagel, owner and operator of Cook Street Castle in Victoria, B.C. The store is located on the ground floor of an apartment building.

solution, lots of parts. A hardware store requires many items to get it right, many sizes of hooks, nails, screws, tools, and many other things that come with servicing a community’s needs,” Morrison said.

Another requirement is access to potential employees who can understand the complexities of hardware and home improvement. These types of employees are not always easy to acquire in downtown areas.

Bill Morrison, retail consultant, says the typical downtown dweller is very digitally literate, and they do a lot of their shopping for hardware online.

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And the third necessary component of a hardware business is reasonably-priced real estate, which is extinct in most downtowns.

“There are examples of Home Hardware stores that do very well in urban environments,” said Morrison. “They’re able to manage their real estate costs and that allows them to have relatively large spaces to present the products to customers the way they’d like to.” And Canadian Tire has, in particular, shaped the downtown hardware store in Canada, Morrison said.

“Hardware is a lean-margin business that is heavily comparable,” Morrison said. The type of “home improvement store” that does well in urban environments are the trendy, home decor and fashion businesses that cater to new condo dwellers.

“Condo dwellers don’t need hardware,” said Morrison. Most condos being built are new, so they don’t require building or hardware supplies. “In addition to the other big boxes, Home Depot has done an incredible job penetrating urban markets and has a great availability of stores.”

The typical downtown dweller is very digitally literate, and they do a lot of their

Hardlines Home Improvement Quarterly

shopping for hardware online through stores like Canadian Tire, Costco, Amazon, and IKEA. “It’s a very different experience.

So the convenience now is having it delivered to the concierge downstairs,” Morrison said.

Big box stores like Home Depot can contain up to 50,000 skus per location versus perhaps 5,000 skus in a mom and pop hardware store. Home Depot has up to 1,000,000 skus available online. The One Home Depot plan launched in 2018, in which Home Depot aims to become the leading “interconnected” (brick and mortar integrated with online) home improvement retailer has only been accelerated by the pandemic.

COOK STREET CASTLE

Then there are unique home improvement stores that defy all categorization. One such store in Victoria, B.C., Cook Street Castle, has a unique urban feature; it is located on the first floor of an apartment building.

It even has a drive-through lumberyard.

When it was built in the 1970s, the building was designed to have a window and sash store on the first floor. The current Castle

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COVER FEATURE

URBAN RETAIL

It has now been 18 years since Home Depot opened its very first Manhattan store on West 23rd Street. outlet moved into the location in 1985.

There are some challenges with being on the first floor of a residential building; one is limited space. The store needs to be selective on what products they carry, explained Vicki Hagel, owner and operator of Cook Street Castle.

Hagel also is the owner and operator of Bay Street Castle in Victoria. When they don’t have space to carry a product, they can stock it at the other larger location. “Having a second location does help a lot with that,” said Hagel. “Door to door, on a good day, the stores are only six minutes apart.”

According to Hagel, at Cook Street they don’t have any big box stores in the area to compete with. They also have a unique feature that not many stores have.

“The location of the Cook Street store is so convenient that it services four major municipalities. It’s a quick stop for a lot of people and it’s also covered, which is important,” Hagel said. “People can just drive in and always load. It doesn’t matter what the weather is.”

THE FUTURE

The jury is still out on what retail home improvement will morph into when some Canadian cities become majority-owned by condo residents in high rises.

That future may be arriving faster than previously believed. In a 2020 national housing report entitled Units Under Construction, StatCan reported that there were 280,437 housing units under construction across Canada. A staggering 77 percent of them (215,679) were apartments/condos, the vast majority of them high rises. Only 12.5 percent of the units being constructed were single family homes.

It has now been 18 years since Home Depot opened its very first Manhattan

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store on West 23rd Street. The two-storey, decor-oriented Home Depot got a great deal of attention at that time from home improvement analysts. That new Home Depot in the Flatiron District was supposed to usher in a new age of urban home improvement retailing but it is also noteworthy that online shopping was almost non-existent back then. The 1.6 million residents of Manhattan are now served by only two Home Depot locations, presumably because that’s all that the brick and mortar home improvement marketplace in Manhattan will support.

It’s possible that the legacy of the pandemic will change the housing industry radically. Will we see office towers struggling to renew leases of companies who have learned that they can operate quite

Hardlines Home Improvement Quarterly

effectively with some (or the majority) of their workers based remotely? In which case, will those empty office towers be converted to residential spaces? What will that potentially huge new influx of residential customers downtown mean for the home improvement industry?

One thing’s for sure. The retail landscape in downtown areas is going to look quite different than it does today. An old-fashioned, conventional hardware store in the city might become as rare as a barbershop offering daily shaves.

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For this Independent, It’s all About Trust.

Hewson Brothers Building Supply has been a proud member of TORBSA for over 15 years. TORBSA provides us dedicated leadership, competitive marketing programs, and strong communication—with full transparency. Having previously belonged to another buying group, we understand the importance of keeping our independent business identity and the value of having full disclosure. On top of that, TORBSA is a group that’s truly member owned.

“

”

With TORBSA, we are confident that we’ve aligned ourselves with a trusted partner.

As we navigate the ever-changing market and rely on real time information to make decisions, TORBSA facilitates invaluable relationships with both the vendor and independent member community. When asked to summarize the partnership with TORBSA in one word, it would be “Trust”. Aligning our organization with a trusted partner ensures we have been given all the necessary tools to be successful.

Len Hewson O W NE R H E W S O N B R O T H E R S B U I L D I N G S U P P LY

For more information about TORBSA, call Paul Williams at 1-866-865-1689

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Lumber & Building Materials

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S P O T L I G H T

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The panels can be installed in any climate using traditional tools, even in contact with the ground, without any mortar or adhesives. www.novik.com

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Natural Elements Project Panels Natural Elements Project Panels are perfect for shelving, furniture projects, crafts and woodworking. These solid spruce panels are kiln-dried and factory-sanded to 120-grit making them easy to work with and suitable for all projects. At 3/4" thick they come in widths of 8", 10", 12", 16", 20", 24" and lengths of 36", 48", 60", 72", 96". www.canwel.com

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Hardlines Home Improvement Quarterly

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LUMBER & BUILDING MATERIALS SPOTLIGHT

FastPlank withstands tough conditions FastPlank Systems give the warmth of wood without the maintenance. Used as siding or on the soffit, the 4" or 6" V-Notch extruded aluminum planks look flawless when complete. The innovative rainscreen attachment has been tested against wind and fire to work on the most complex projects or any home. Available in several standard woodgrains and custom solid finishes, FastPlank boasts the ability to resist UV exposure, smoke, rot, and a variety of weather conditions. www.fastplank.com

Laminate flooring is easy to clean Egger Aqua+ water-resistant laminate flooring is suitable for kitchens, bathrooms, hallways, and commercial areas. It’s sustainably produced, quick to install, and easy to clean, especially with a steam cleaner. Aqua+ offers up to 72 hour water resistance. The high-density fibreboard core features a specially selected wood mix, increased glue emulsion recipe, and increased raw density. www.egger.com

Aluminum trim doesn’t fade EasyTrim Reveals is a complete aluminum trim system for fibre cement, engineered wood, and vinyl siding. EasyTrim is compatible with almost every panel or lap product of all sizes and thicknesses. It’s a full trim system with aesthetic appeal that won’t fade or deteriorate and is easily suited for all styles from traditional to contemporary. With UV protection and no sharp edges, it is available in standard and custom colors with a 15-year warranty and patented water management features. www.easytrimreveals.com

Sophisticated and Modern Siding Sophisticated and Modern, Cape Cod Siding’s Bespoke Series offers almost an unlimited set of options to suit any contemporary design. Never before have so many choices been available to homeowners, designers/architects and builders. Our Brushed Face and Hidden Fasteners help to define our Bespoke collection. Our new interior cladding offers a distinctive look that can only be achieved using real wood and our new colour system. www.capecodsiding.com www.hardlines.ca

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BY JOHN CAULFIELD

HOW TO GET FEEDBACK FROM YOUR CONTRACTOR CUSTOMERS Dealers supplement the daily feedback they receive with surveys, customer-specific purchasing, and tools from buying groups and head offices

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Hardlines Home Improvement Quarterly

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E

very couple of years, Payzant Home Hardware Building Centres in Nova Scotia surveys its contractor customers to gauge their satisfaction with the services and products available at this dealer’s eight locations, which generate about 60 percent of their annual revenue from pros.

“I probably should do this every year,” admits CEO Andrew Payzant. Still, his stores get immediate feedback from interactions between pros and Payzant’s sales team that, he says, is trained to ask questions like “How are we doing?”, “Do we have the products you need?” and “What are your pain points?”

“Nothing will ever replace face-to-face with customers,” says Payzant.

As home-improvement spending has soared during the last few years, dealers are hungry for information that will help them keep contractors loyal to their stores.

But some dealers are more aggressive about soliciting positive or negative comments

Andrew Doidge, vice president at Doidge Building Centres in Ontario.

www.hardlines.ca

from pro customers than others.

And while none of the dealers we interviewed are taking their customers for granted, some take comfort as long as they aren’t hearing complaints from pros about the status quo.

“Many of our customers are third and fourth generation with us, so we don’t do anything special to probe them,” says Tom Evans, co-owner of C.F. Evans Lumber in Picton, Ont. Evans’ store gets 40 percent of its sales from pro customers, 200 of whom have accounts with this dealer. “We talk with them, we take their Andrew Payzant, CEO of Payzant Home Hardware Building Centres advice.” in Nova Scotia.

TimberTown Building Centre in Edmonton doesn’t “go fishing for information,” either, from the 15 to position of sales manager. Bartlett’s focus 30 pro customers who come to its location is to expand successful programs to all of each day, says manager Pat Doidge’s stores and to improve customer Gynane. “But we do try to act service. “We created this job to do better, on any feedback we get.” and to be proactive instead of reactive,” Without question, a store’s explains Doidge. sales staff continues to be its Lowe’s Canada gets its “best intel” on direct—and sometimes exclu- pros from its 85 outside salespeople who sive—communications portal are in the field every day. “We’re leveraging for its customers. “They are that personal relationship,” says Jeff Oben, our relationship managers,” senior director pro sales in-store. “And our says Andrew Doidge, vice customers aren’t shy about giving us real president at Doidge Building feedback.”

Centres, about the dozen contractor salespeople who work COVID-19 CHANGED THE at its 10 locations that serve CONVERSATION southwestern Ontario. Those While the coronavirus pandemic sparked stores have about 4,000 con- home improvement activity, it also contribtractor accounts and generate uted to supply-chain delays and building between 55 and 70 percent of material price hikes. Those impacts, say their sales from pros. dealers, have altered their communications Recently, Doidge Building with pro customers.

Centres promoted Brad Pro Con Building Supplies in Brampton, Bartlett to the newly created Ont., has more than 800 pro accounts. Pro

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Pro Con Building Supplies in Brampton, Ont., is having more frequent and candid discussions with customers about product shortages and price changes so they don’t get caught by surprise in the middle of a job.

Con is having more frequent and candid discussions with customers about product shortages and price changes, “so they don’t get caught by surprise in the middle of a job,” says Gus Guglietti, Pro Con’s president, whose company has seven inside salespeople and five in the field.

For Westrum Lumber’s four locations in Saskatchewan, which get 75 percent of their sales from pros, “now, it’s all about instant messaging and texting,” says Mark

“

Because of the supply chain mess, “the number of customers who are calling, texting, and emailing has gone up, so we need to pay more attention to what we’re hearing to make sure that the communication is

flowing smoothly both ways,” says Andrew Payzant in Nova Scotia. To give its pro customers more clarity about deliveries, his company has added a shipment status feature to its customer alert app.

Now, it’s all about instant messaging and texting. That’s good and bad, but it’s 24/7 nonetheless.

”

Westrum, a partner at Westrum. “That’s good and bad, but it’s 24/7 nonetheless.” To be on the safe side, Westrum says his sales team follows up digital communications with phone calls “so there’s no confusion with interpretation.”

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Mark Westrum, partner at Westrum Lumber’s four locations in Saskatchewan

Hardlines Home Improvement Quarterly

www.hardlines.ca

Working for our members every day.

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Sexton gives us access to a range of products, including the latest innovative solutions in the marketplace that help us meet the demand of our customers.

We stay competitive on price while providing that extra level of quality and service; Sexton helps us do that.

” — Kerry Connelly and Jamie Emin,

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Our Promise to You. Our strength as a buying group is built on four major advantages: We’re a dedicated team of industry professionals focused on your success.

We negotiate competitive programs and leverage our strong relationships with vendors to resolve any issues quickly for you. We have a first-class accounting team that promptly delivers accurate rebate payments as promised.

Well connected.

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PRO CORNER

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In response to feedback from pros, Home Hardware Stores is now allocating more space in its distribution centres to battery-powered tools. The buying group sends out monthly digital flyers featuring pro-grade products.

SATISFYING PRODUCT REQUESTS, WITH LIMITS

Pro customers, far more so than consumers, favour certain products and brands, often adamantly so. The last thing a dealer wants is for one of its valued customers to be shopping around because his brand preferences weren’t being met. So, in their outreach to pro customers, dealers must constantly be on top of shifts in brand loyalties.

Brand preferences are tricky for Doidge Building Centres because its stores concentrate on different customer segments—for example, one store caters primarily to custom home builders. But when a pro asks for a specific product or brand that isn’t being stocked “we usually oblige,” says Doidge.

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“The customer is the boss, and we do what we must to make them happy.”

However, dealers’ malleability has its limits. Pro Con Building Supplies’ website lists 271 brand names for 18 building product categories. And when the occasional request for something different comes through the transom “we look to see if it’s available,” says Guglietti. Depending on the customer, Pro Con might require a minimum order quantity, he adds.

Westrum and Evans also say their companies look at the bigger picture when considering one-off or permanent line or brand extensions. “We take into account the value of the customer, and how much they buy from us,” says Evans. When asked about

Hardlines Home Improvement Quarterly

pros’ loyalty to certain brands, Evans cites drywall, “not so much the gypsum board, but the mud, the tape, the screws. It gets pretty brand-specific.”

Based on its customers’ feedback, Payzant recently expanded its line of cordless power tools, particularly the Milwaukee Tool brand. About a year ago, it added a new roof shingle line. Payzant acknowledges that pro customers are unlikely to commit in writing to buying a specific amount of product over a year. “So you need to make a judgement call” about whether bringing on new lines will translate into more business.

In the case of the shingles, “it worked out well,” he recalls.

CASTING WITH A WIDER NET

Dealers have been beneficiaries of pro-oriented programs offered by their buying groups or corporate parents that help them stay connected with contractor customers. www.hardlines.ca

Experience the Great Indoors

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Since Lowe’s Canada launched its VIPpro program in September 2020, “hundreds of thousands” of Canadian contractors have become members, with several thousand new signups per week.

“TORBSA has been a big part of our success,” says Pro Con’s Guglietti about the store’s buying group. “They’re always searching for new products and programs to add.” As a Castle-affi liated dealer, C.F. Evans Lumber gets to provide a mailing list of their pro customers it the store wants them receive the buying group’s Contractor Advantage magazine.

“In a competitive market, pro customers do business with Home Hardware stores because of the level of service they provide,” stated Home Hardware Stores, which provides assistance to its dealer-members in a variety of ways. In response to feedback from pros, Home Hardware is now allocating more space in its distribution centers to battery-powered tools. The buying group sends out monthly digital flyers featuring pro-grade products. Weekly emails supplement those flyers. A quarterly Pro News brochure features timely articles and advertorials about products and trends.

And Home’s online Pro Hub curates content for contractors.

Home Hardware Stores’ in-store pro program recently underwent a rebranding to present its dealers as a single source for pro-oriented building supplies and services.

Payzant, a Home Hardware affi liate, says his buying group lends “a national perspective” on pro trends and product preferences.

Since Lowe’s Canada launched its VIPpro program in September 2020, and last year standardized the program across all its banners, “hundreds of thousands” of Canadian contractors have become members, with several thousand new signups per week, estimates Oben.

Lowe’s Canada generates between 35 and 40 percent of its annual revenue from pro customers, a number that rises to 90

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percent for some RONA-bannered outlets. Oben says that pros who are VIPpro members buy, on average, three times more with Lowe’s than nonmembers. “They are the biggest growth part of our business,” he adds.

When pros sign up for VIPpro, Lowe’s uses their email addresses for marketing communication purposes. The company also deploys an internal polling tool to gauge pros’ satisfaction with Lowe’s services.

During the pandemic, when provincial mandates shut stores down, pros still needed a way to get merchandise. Within three days of the pandemic starting, Lowe’s Canada set up a phone order system that could stage orders for curbside pickup in

Hardlines Home Improvement Quarterly

two hours. That system is still in place.

Oben also points to Lowe’s corporate-wide Pro Appreciation Month that includes breakfasts with contractors, and its Win Like a Pro sweepstakes whose recent giveaways included three $10,000 gift cards.

The main purpose of VIPpro, says Oben, is “to help pros build their businesses.”

Right now, that means trying to alleviate supply-chain hiccups. “Pros are busier than ever, but can’t get enough product,” says Oben. The retailer is focused on having in-stock job-lot quantities of what pros buy most. Lowe’s is also notifying pro customers about when hard-to-get building products are finally available for purchase and pickup. www.hardlines.ca

Take Your Next Step Are you expanding your operation or looking for an exit strategy?

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List your business for sale on the NHPA Retail Marketplace to reach interested and motivated home improvement retail buyers. Public and private listings are available.

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MARKETING

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Hardlines Home Improvement Quarterly

www.hardlines.ca

BY HEATHER BEAUMONT

DOUBLING

DOWN ON

MARKETING While Covid-19 restrictions are easing across the country, inflation and oil price shocks are continuing to make consumers nervous. Home improvement retailers are responding with ever more creative advertising and sponsorships.

W

ith pandemic restlessness still dominating consumers’ everyday lives, marketers and retailers are working hard to engage and inspire customers with multichannel strategies.

Last fall, Quebec-based home improvement retailer BMR entered a sponsorship agreement with the Ottawa Senators hockey team. BMR’s distinctive green logo now adorns the ice surface at the Senators’ home arena, the Canadian Tire Centre in Kanata on the west side of Ottawa. Said Jonathan Gendreau, BMR’s vice president, business development, marketing and customer experience, “It’s a good investment for the outreach that BMR gets.” Gendreau cited a good match-up with BMR’s target customers and the Senators’ large television audience.

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The BMR logo has prominently appeared on viewers’ screens for an average of 18 minutes so far during the 2021/2022 hockey season. BMR’s logo has been exposed to 250,000 viewers per game in a time period when television ratings have increased by 20 percent. Gendreau added, “Finally, we can show a sense of pride among our BMR dealers in Ontario. We are serious about our expansion into eastern Canada and we want our dealers to feel it.” BMR is now up to 285 stores, having recently completed 20 major store renovations and added 10 new stores, with five outside Quebec.

Sponsorships of major league teams are one way that a retail brand can gain traction. But the fundamental principles of retail merchandising, while seemingly less glamorous, are another. At Osoyoos Home Hardware in B.C., owner Frances Sologuk and her team are constantly remerchandising their 17,000-square-foot space to enhance their customers’ experience.

“We keep striving to make it better,” explained Sologuk. She promotes the family

“

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BMR’s distinctive green logo adorns the ice surface at the Senators’ home arena, the Canadian Tire Centre in Kanata on the west side of Ottawa. doing five different areas. That’s a good 4,000 square feet.”

Staff at Orillia Home Hardware Building Centre remerchandise their 26,000-squarefoot space each year, too. “We’ll move shelv-

Finally, we can show a sense of pride among our BMR dealers in Ontario. We are serious about our expansion into eastern Canada and we want our dealers to feel it.

business with its antique gas pump and tools as a unique, old-fashioned shopping experience. “We just repainted the cement floors in the outdoor living area. We’re

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”

ing. We’ll add, we’ll subtract,” explained store co-owner Chris Locke. “We’ve done a major upgrade of our housewares department, different flooring, different racking.

Hardlines Home Improvement Quarterly

We’ll pick one project a year.”

Over the years, the Orillia, Ontario store has organized different events to appeal to its customer base. A decade ago, their women’s-only event initially attracted 50 women. But the event now draws up to 800.

There are plans to bring the event back (due to the pandemic it’s been on pause) for fall and Christmas. “It makes sense. Women often make most of the buying decisions in most households,” explained Locke. “We have hardware and building supplies and clothing and gift ware. We built and laid the store out with women in mind.”

Although emphasis is placed on product-specific marketing at Orillia Home Hardware Building Centre, how-to events are also popular. The store has a very

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2022

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Visit www.oras.ca for more information.

DEADLINE FOR ENTRIES IS JUNE 24, 2022

MARKE TING

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Orillia Home Hardware Building Centre brings in a garden expert speaker to kick off the spring season. successful gardening event every spring.

“It’s about new products, new techniques.

We’ve always brought in a plant or garden or lawn expert,” Locke said. “We’ve focused on outdoor grilling, growing your own produce. There’s always a speaker or a learning element. It’s a nice way to kick off the spring season where people are coming out of hibernation and want to see what’s new and exciting.”

KEEP FRESH TO KEEP CUSTOMERS COMING BACK

Back in Osoyoos, Sologuk’s customers stop by often to see what’s new. They might discover a beach scene with palm trees or a Christmas movie theme with a fullsized, popcorn maker, movie posters and a Hollywood walk of fame with staff names.

“People drive two and a half hours to see the

seasonal displays,” explained Sologuk. “I want people to come because they’re afraid they’re going to miss something.”

The Osoyoos team has expanded its stock of learning and educational toys since so many children were at home because of

pandemic restrictions. When they noted that some customers were physically distancing by moving into recreational vehicles, the store stocked up on RV supplies like hoses, connections, and toilet paper. They also added more art supplies as people were “rediscovering their inner talents,” according to Sologuk.

Among other outreach initiatives, Sologuk’s store has donated paint for

Osoyoos Home Hardware owner Frances Sologuk (pictured at right with her grandson) says people drive two and a half hours to see the seasonal displays.

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Hardlines Home Improvement Quarterly

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exterior murals and greenery with the assistance of Tree Canada grants, sponsored a recent building renovation with a fundraiser, and donated drills for repairs after a break-in at the Osoyoos & District Museum and Archives. Sologuk was honoured with a lifetime museum membership for her ongoing support. She explained her commitment to the museum as “saving our downtown and honouring our forefathers.”

BUILDING AN IN-STORE EXPERIENCE

With 18 stores from Halifax to Victoria, Lee Valley Tools has a slogan, “Let’s Do Something,” which celebrates a commitment to learning new skills and taking pride in a finished masterpiece. “We want to improve on market relevance as the retail

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landscape changes,” said Jason Tasse, Lee Valley’s president and COO. “So we’re focusing on expanding how we service our customers.”

Lee Valley Tools offers workshops for beginners to experts. The 1,700 national, in-store workshops about tools, hardware, kitchen and home-related projects will return when it’s safe for staff and customers. Topics include an introduction to carving, knife-sharpening, selecting a pruner, understanding your power tools, and drip irrigation.

Five months before the pandemic lockdown, the retailer launched a new website to deliver more quality content to its customer base. At that time, 60 percent of the stores’ sales volume came through the stores. That has since balanced to 50-50.

Both global and local customers access live streaming workshops on the store’s website or Facebook page. “We’re using technology to make experts more accessible, whether in-store or online,” explained Tasse.

The retailer’s target audience includes customers over 50 years and retirees and a younger, digital generation of consumers, 35 years and up, who aspire to learn new skills.

Lee Valley Tools is marketing Make It Yourself (MIY) project kits to aspirational customers 35 years and older. Each month, a new project kit teaches a different gateway skill with video instruction included.

Although two Ontario locations recently closed, the retailer is searching for new space. “A physical store is very important

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Jason Tasse, president and COO of Lee Valley Tools, believes in the in-store experience because tools are “tactile.”

The customer has to feel them. to Lee Valley,” Tasse explained. “We believe in the in-store experience because we sell tools. It’s tactile. It can’t just be all online.”

EDUCATED CUSTOMERS EQUAL MOTIVATED DIYERS

Home Hardware’s marketing program has also pivoted to feature more inspirational content. Interested in building a home office, a backyard studio or a cottage? Home Hardware provides detailed plans and price lists in one package. “If you can dream it, we can help you accomplish it,” said Laura Baker, vice president of marketing.

There are over 1,100 dealer-owned and operated stores in the Home Hardware network and last year the retailer opened 15 new stores. “Lots of work on the e-commerce site has been done to bring customer needs to the forefront,” said Baker. “It’s a great way for customers to start exploring all the options.”

Home Hardware sends weather-triggered emails to different regions across the country. If a cold snap is expected in an area, a snow removal email is likely to be sent out.

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An online resource features inspirational videos, articles, influencer blogs, and buying and how-to guides. Featured product images align with current sale information that links to shopping carts.

Last fall, Home Hardware launched a Virtual Design Centre providing website visitors with a 360-degree view of popular designs from its Beaver Homes and Cottages collection. “Visitors can customize the interior and exterior, try out different flooring or kitchen cabinets, and really get a sense of what it will look like,” explained Baker.

Custom builds are available but project packages take the guesswork out of building. Home Hardware helps customers decide whether the project is something the customer wants to do on their own or call a pro to get it done.

“LITTLE THINGS THAT BUILD GOODWILL”

At Orillia Home Hardware Building Centre, Locke said these days the business

Hardlines Home Improvement Quarterly

relies more on social media and less on traditional print advertising to attract customers. “We’ve established a business that’s a known entity. We focus on getting people to come in to get to know who we are and on product-specific marketing.”

Both in-store signage and good foot traffic help to boost sales. “We take advantage of that traffic that’s coming through.

We’ll do what we call backdrops. We use handouts at the front saying, ‘Thank you for shopping with us. Next time you’re in, take this for 10 percent off on your next purchase,’” explained Locke. “We do little things like that to build goodwill.

He added, “We’ve done a lot to help out The Lighthouse, the local homeless shelter.” The store donated $50,000 and then helped with products the shelter couldn’t source. The store also has a long-term partnership with the food bank. “We focused on our philanthropy through COVID. That sets a good tone for the community and our position within it. It just made sense for us to help out.”

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Canada’s top 20 home improvement retailers PLUS: How to rise above the competition; Keeping up with logistics in a fast-paced society; Product feature: Kitchen and Bath

HOME IMPROVEMENT QUARTERLY

Publication Date: July 6, 2022 • Ad Reservations: May 26, 2022 (contact david@hardlines.ca) • Ad Material Due: June 2, 2022

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BY GEOFF McLARNEY

FROM ‘COMPANY SERVANT FAMILY’ TO THRIVING ENTREPRENEURS

The Faries family has overcome colonialism and the forces of geography to build their own three-store business. Last fall’s Hardlines Conference heard from the multitalented Rob Faries as a guest speaker.

R

ob Faries is the heir to a tradition of innovation. His late father, Donald, bucked convention just by going into business in the 1970s, opening what started out as a convenience store, GG’s Corner and Gift, in Moose Factory, Ontario.

“It was a big deal. You don’t compete against the Hudson’s Bay Company,” Rob Faries recalled in his address to the 2021 Hardlines Conference.

“

GG’s Ace Hardware and Building Centre in Moose Factory counts on a team of passionate and dedicated employees. did, and it was noted,” said Faries.

Donald oversaw his GG’s store through its earliest years of growth, joining TruServ

You don’t know when the river is going to freeze, so you have to really plan your logistics.

It really eats into your cash flow.

The Faries family is a “company servant family,” Cree descendants of the children of the Hudson’s Bay fur traders and local Mushkegowuk Cree in the James Bay area of northern Ontario Donald was expected to remain loyal to HBC, not to open his own business. “But he www.hardlines.ca

”

Canada in 1993. He added a second location in Moose Factory, GG’s Ace Hardware & Building Centre, in 2006.

Faries faces unique challenges in getting products to his shelves in Moose Factory, which is separated from year-round transportation routes by the Moose River.

In the summer, inventory can be brought in by canoe or barge; in the winter the frozen river can be crossed by sled. In the spring and fall, however, supplies can only reach the store by way of costly helicopter shipments. Trying to anticipate when the transitions must be made is a perennially unpredictable process.

“That’s an issue we have every year,” Faries said. “You don’t know when the river is going to freeze, so you have to really plan your logistics. It really eats into your cash flow.”

Financing is another challenge. Given the lack of freehold title on reserve, banks don’t accept real estate as collateral. An arrangement with the local band council

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Rob Faries, the owner of three stores in Moose Factory and Moosonee, Ont., is also a very talented lead singer with his band Relic Kings. Here they are performing at Toronto’s legendary Horseshoe Tavern, on Queen Street West. allows the business to borrow against its inventory instead.

Recently, Faries has expanded with a venture that both reflects his success and could ease some of his supply challenges.

“We’ve just purchased a large property in Moosonee [on the railway side of the river] and we’re getting ready to build a store,” he says. “We’re currently renting

“

That versatility gave Faries’ stores an advantage when the pandemic broke out— at first. As an essential business offering items like groceries, it was exempted from government-ordered retail closures. But Faries ended up voluntarily shuttering the Moosonee operation anyway for two weeks after two team members there tested positive for COVID-19.

We’re very excited to be in the town because it’s more a logistical hub.

a small space and operating there. We’ve been using that to test the market and see how Moosonee responds to us and they’ve responded very well.”

The first phase of the new location, offering hardware and building materials, will be built this year. Next year, Faries plans to add another department for housewares and groceries. “That’s our store: we sell every category.”

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”

Having a presence in Moosonee also eases some of the supply line difficulties. “We’re very excited to be in the town because it’s more a logistical hub. The train goes through, which makes things easier for us: we don’t have to get all our freight [across the river] to Moose Factory.” Faries adds that a new hospital under construction in Moosonee will provide “lots of opportunities for bidding material.”

Hardlines Home Improvement Quarterly

In addition to his business accomplishments, Faries has returned to his love of music. As a young man, he had toured Ontario in a band, but the lifestyle got to him and the partying that came with it became more prominent than the music.

During the 2010s he embraced sobriety and fatherhood and reignited his music career. His band Relic Kings took the Rock Album of the Year award at the 2018 Indigenous Music Awards. Today, his fiveyear-old daughter, Mya, helps him with orders. The whole family is involved in the business, continuing the tradition Donald started.

Donald Faries died of pancreatic cancer a few weeks before the 2021 Hardlines Conference, almost nine months after doctors told him he had two months to live.

Though he didn’t get to see Rob’s address, it was a source of tremendous pride for him and a comfort to Rob in his grief.

“I see my father in every one of you,” he told the emotional crowd. “And I really appreciate it.” www.hardlines.ca

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