HHIQ Q3 2022

Langton

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PART 3 BRAVE NEW WORLD

Abit of industry history. It happens about every three decades—and it’s happening again.

By 1964, the arrival of the American retail chains in Canada was threatening to wipe out the Mom and Pop hardware store. So Walter Hachborn convened a meeting of 122 such dealers at the Flying Dutchman Hotel in Kitchener, Ont., and they voted to form Home Hardware.

Other leading groups formed around that time, too. Powerful, influential and capable of fighting back against chaos, the LBM groups rose up. In Quebec, the Ro-Na brand was even faster out of the gate (1960) than Walter.

Fast forward three decades. The year was 1994. Our Canadian industry got rocked again by the arrival of not one but two American behemoths—Home Depot and Walmart. Our industry went through convulsions again before rearranging itself. Now we had strong co-ops/buying groups and big box retailers.

Fast forward another three decades. The era of e-commerce is “suddenly” upon us. Last year, Amazon pulled in $US 469-billion ($CDN 574-billion). Now

we have strong co-ops and big box retail ing and e-commerce.

How is your store going to react to Brave New World Part 3? How are your vendors going to react?

Well, as the industry realized six decades ago and again three decades ago: It’s not going to be business as usual. Pay attention to what’s happening out there.

This special Top 20 issue of Hardlines Home Improvement Quarterly covers both the brick-and-mortar state of the nation and the e-commerce reality.

Hopefully, you will find some clues in these pages as to your own best path forward. And remember, the package of information you hold in your hand is just a fraction of the data potentially available to you in the Hardlines Retail Report and the Hardlines Market Share Report

To get hooked up with those valuable documents, just send me an email.

It’s been an utterly crazy two years and it looks like it’s about to get even crazier

Seismic changes in our industry occurred in 1964 and 1994. You’ve probably noticed they are happening again.

“ ”

NEWSROUNDUP

TORBSA MERGES WITH AD (AFFILIATED DISTRIBUTORS), A $58-BILLION MULTI-INDUSTRY BUYING GROUP

TORBSA Ltd., the Bolton, Ont.based buying group, announced on June 1 that it was merging with a giant U.S.-based buying group, Affiliated Distributors (AD), headquartered in Wayne, Penn.

Prior to the merger with TORBSA, AD Canada, which has recently-expanded its DC in Mississauga, Ont., was already oper ating in multiple construction and indus trial sectors in this country.

“The decision to align our business with AD was one that was scrutinized thor oughly,” said TORBSA president Paul Williams. “TORBSA and its shareholders are truly excited at the road ahead, as we lay the foundation for what will be many years of success as a business.”

Founded in 1966, TORBSA represents 30 members in 40 locations across Canada. But with the merger, a new division of AD has been created: AD Canada Building Supplies. Williams will head this new division, which effectively replaces TORBSA, and TORBSA members will become shareholders of AD Canada. Williams will now report to Rob Dewar, president of AD Canada, while three additional TORBSA employees will join the AD team.

AD is a wholesale buying group formed in 1981 that provides contractor-related and industrial products to some 845plus independent member owners in the U.S., Mexico, and Canada. AD publicizes annual sales of $US 58.5 billion. It operates

Canada, which is merging with TORBSA, has a Canadian head office and distribution centre at 3630 Odyssey Drive, Mississauga. The U.S. head office of AD is in Wayne, Penn.

13 divisions that cover industries includ ing electrical, industrial, safety, bearings and power transmission, plumbing, PVF (pipes, valves and fittings), HVAC, decora tive brands, and building supplies.

“AD brings decades of experience, strong leadership throughout the organization, and strong business ethics and core values that align with our own,” Williams said. “Their scale and expertise across North America give us the strength to compete and succeed

in an ever-changing marketplace.”

AD’s Rob Dewar added that TORBSA’s strong leadership and financial success made the buying group an ideal match for AD. “TORBSA has been a leader in this space for a long time, and our new rela tionship will help us provide more benefits for members, including an increased sup plier portfolio.” The deal also fits with a key priority of AD in recent years to grow its presence in Canada.

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

AD

BRIEFLY

QUEBEC RETAILER CANAC MAKES CHANGES AT THE TOP

The retirement of Pierre Laberge from the helm of Canac in May has resulted in management changes at the top of the giant home improvement chain. Still, the Laberge family remains firmly in control.

Based in L’Ancienne-Lorette, in the Quebec City region, Canac has 31 stores throughout the province—with number 32 scheduled to open early in 2023—with sales of some $1.3-billion (Hardlines estimate). Canac employs 4,200 people and is the largest family-owned home improvement retailer in Quebec.

Pierre Laberge retired early in May after 45 years in the business. He had been at the helm of both Canac and its parent com pany, Laberge Group, for two years, follow ing the retirement of company founder Jean Laberge, Pierre’s cousin.

Martin Gamache takes over the general manager’s role from Pierre Laberge. He was formerly Canac’s director of operations, a

Pierre Laberge, pictured at right, has retired from the helm of Canac, the 31-store retail chain in Quebec. He had worked in his family’s business for some 45 years.

title Gamache will keep. Gilles Laberge is Laberge Group’s new president, in charge of overseeing all the Laberge companies, including Canac.

All these changes will help support con tinued growth at Canac. It already has a dozen stores in the Quebec City region, but Canac only has four in the greater Montreal area, three of them on the South Shore. Its next store will be in Contrecœur, 57 km northeast of Montreal along the St. Lawrence River. That store is expected to be operational in the first quarter of 2023.

Canac also has an option on a new store near Hawkesbury, Ont., halfway between Montreal and Ottawa on the Ottawa River.

CERTAIN TEED PARENT SAINT-GOBAIN TO ACQUIRE CANADA’S KAYCAN

CertainTeed parent Saint-Gobain—a French conglomerate—has agreed to acquire Kaycan Ltd., the Montreal-based manufacturer and distributor of siding products. The $928-million transaction is slated to close by the end of 2022. The deal includes the planned divesti ture of Kaycan’s small U.S. distribution arm. Saint-Gobain says it intends to hold onto Kaycan’s “locally well-established Canadian distribution.”

HUDSON’S BAY CO. TRANSFERS DOWNTOWN WINNIPEG PROPERTY TO FIRST NATIONS

Hudson’s Bay Co. is transferring own ership of its downtown Winnipeg prop erty to an umbrella group of Manitoba First Nations. The Southern Chiefs’ Organization (SCO) is the recipient of the 600,000-square-foot Beaux Arts build ing. The site will serve as a multipurpose space including 300 housing units, two restaurants, a health clinic, daycare cen tre, and museums.

CASTLE BUILDING CENTRES GROUP’S BRUCE HOLMAN TO RETIRE

Castle Building Centres Group has announced that Bruce Holman will retire as director of business development this summer. Holman has spent nearly two decades building the dealer base for the Mississauga, Ont.-based buying group.

Doug Keeling, who has been business development manager for Ontario since he joined Castle in 2016, will replace Holman in the national role, effective Sept. 1.

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

Hardlines Home Improvement Quarterly

HOME HARDWARE’S CHIEF MERCHANT TALKS SHOP IN NEW HARDLINES PODCAST

Anew podcast from Hardlines fea tures an in-depth conversation with the senior merchant at Home Hardware Stores Ltd.

Marianne Thompson is the company’s chief merchandising officer. On the lat est episode of the Hardlines What’s In Store podcast, she shares details of Home Hardware’s investments in its supply chain—and how it’s using new technology to track selling cycles, manage product orders, and get closer to its customers.

Thompson also talks about the new buy ing team in St. Jacobs. Following her arrival in 2019, a number of company veterans retired and both the hardware and LBM buying teams underwent a reorganization. New buyers joined Home Hardware from industries such as grocery—and even from competitors.

For example, Carol Crystal joined Home Hardware from Lowe’s Canada in 2020 as director, merchandise hardlines. Recently Crystal, whose background also includes Walmart Canada and the Hudson’s Bay Co.,

was promoted to VP, merchandise LBM. “Our strength at Home Hardware lies in ensuring that our talent and our cul ture remain a competitive advantage,” Thompson says. “And it continues to propel our business forward as we really stay focused on our vision, which is to be

Canada’s most trusted and preferred home improvement retail brand.”

The full conversation with Marianne Thompson is available for free from Hardlines.ca. Just click on the Podcast tab at the top of the page to register.

GILLFOR DISTRIBUTION EXPANDS NATIONAL REACH WITH TAKEOVER OF AFA FOREST PRODUCTS

Gillfor Distribution Inc. announced in May its acquisition of AFA Forest Products Inc., the LBM distributor headquartered in Bolton, Ont. AFA owns and operates 13 distribution facilities, serving the entire Canadian retail home improvement market.

Gillfor says it will operate “in parallel” with AFA “until a full operational assessment is completed and a seamless integration can be executed.”

Headed by Grant Yegavian, CEO, and presi

dent Murray Finkbiner, AFA is the latest acqui sition by Gillfor in its ongoing effort to firmly establish its position as a key national player on the building materials distribution scene. Based in Woodstock, Ont., Gillfor is the brainchild of the Gill brothers. In 2012 they determined they wanted to establish a national distribution channel for the fam ily’s cedar production in British Columbia. “This acquisition will elevate Gillfor to be amongst the largest Canadian distributors

for building products, and allow us to truly provide local partnerships from coast to coast,” says Gary Gill, chairman of Gillfor Distribution.

Gillfor Distribution was established when OWL Distribution in Woodstock, Ont., and McIlveen Lumber, an LBM wholesaler based in Calgary, merged to form the new business in 2017. A year later, the company added Brown & Rutherford in Winnipeg and Brunswick Valley Distribution, based in Fredericton.

Marianne Thompson, chief merchandising officer at Home Hardware Stores, is interviewed in a new Hardlines podcast.

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CANADIAN TIRE ROLLS OUT INTEGRATED ONLINE PLATFORM

he future belongs to retailers who can provide the most seam less experience across digital and physical channels,” said Greg Hicks, president and CEO of Canadian Tire Corporation during a recent teleconfer ence with investment analysts and media.

“We are investing to provide a seamless end-to-end connection along the supply chain and to our customers across which ever channel they choose,” Hicks said, not ing that a new integrated platform is being rolled out to facilitate that connection.

One way that Canadian Tire has been working this year to enhance its omnichannel experience is through the deployment of in-store technology. These enhancements include the installation of electronic shelf labels, which, through a designated app, guide customers directly to products in the store.

Canadian Tire has also added pickup lockers at 86 more CTR stores, while at its Sport Chek stores, DoorDash delivery

Canadian Tire is pledging to create a “seamless” e-commerce experience for its customers, across all its brands.

is being used to get products to customers’ doors. The company expected 90 percent of Sport Chek’s e-commerce customers to be serviced by DoorDash by the end of Q2.

The initiative to expand Canadian Tire’s omnichannel experience is called “One Digital.” This is “a future-safe digi tal ecosystem that will serve as the new, single digital platform used across all CTC banners,” Hicks said. The platform was tested in New Brunswick in Q1 and has now been introduced nationally at all CTC stores. The company also plans to bring its banners Mark’s, Sport Chek, Triangle, and Party City onto One Digital by the end of the year.

“It’s a critical part of our evolution from a company made up of disconnected banners, brands, and services to an enter prise-wide platform where all banners and channels collectively amplify and render each other more valuable, creating a truly differentiated customer experi ence,” Hicks said.

SLEGG BUILDING MATERIALS CELEBRATES 75TH ANNIVERSARY, HOLDS PRO SHOW

Slegg Building Materials, with 12 locations on Vancouver Island, is celebrating its 75th anniversary this year. The Slegg organization is in an upbeat mood for another reason, too. On May 6, Slegg held its 2022 Slegg Pro Show, the first such live event in two years owing to COVID-19 restrictions. The event took place in Victoria, B.C.

WALMART CANADA EQUIPS EMPLOYEES WITH WEARABLE RING SCANNERS

Walmart Canada is providing its retail staff with wearable ring scanners. The devices are designed to simplify and speed up workers’ abil ity to fulfill online grocery orders. The company ordered more than 1,500 of the wearables in May. Employees can use them to scan products by pushing a button with their thumbs.

KENT OPENS BIG BOX IN MONCTON

Kent Building Supplies has opened its latest big box store, this time in Moncton, N.B. The store features modernized displays and enhanced sig nage to aid customer flow, along with expanded product assortments, a drive-through lumber yard, year-round garden centre, cut shop, and a large pro service desk. There’s also a bigger online pickup area than in existing Kent stores.

GROCERY CHAIN METRO NIXES

SINGLE-USE PLASTIC BAGS

Metro will no longer sell single-use plastic bags at its stores beginning this fall. The grocer says the move will mean that 330 million bags will be kept out of circulation annually. The move away from plastic bags follows other retailers who have phased out single-use plastics. Most recently, Walmart Canada pulled them from their stores in April.

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BMR APPOINTS NEW HEAD BUYER, CHIEF OPERATING OFFICER

management shuffle at the head office of Boucherville, Que.-based BMR Group has resulted in a new head buyer, a new COO, and the departure of at least one senior executive.

A

Charles Grégoire-Béliveau is the new top merchant. He has been named vice president, merchandising. He joined BMR in 2016 as director, purchasing for corporate stores. In that role, he led the merger of the purchas ing, distribution, and corporate stores teams. He also increased BMR’s imports from Asia. He was promoted in 2020 to senior direc tor, merchandising before getting this latest title. Grégoire-Béliveau is also chairman of Éco-Peinture, an organization that regulates paint recycling in Quebec.

The other major change at BMR is a new chief operations officer. Antonio Di Pasquale joined the group in 2020 as vice president, supply chain and operational excellence. In his new role, Di Pasquale

will oversee all of BMR’s operations.

Meanwhile, Jonathan Gendreau, who had been BMR’s VP business development, mar keting, and customer experience, has left the organization. He had been with BMR since 2017.

BMR has seen a number of changes at head office over the past year and a half. In March 2021, Alexandre Lefebvre was appointed CEO, replacing Pascal Houle as head of the group. Lefebvre came over from Lefebvre & Benoît, a large commercial dealer that is owned by BMR.

BMR officials say the latest changes are aimed at continuing to grow the dealer in eastern Canada. Along with its strong pres ence in Quebec, where it has more than 230 stores, BMR has long been present in the Maritimes and particularly New Brunswick, where it has 11 stores. The group’s biggest expansion opportunity seems to be in Ontario, where it has some 20 locations.

LOWE’S CANADA INTRODUCES POWER TOOL LINES FOR CONTRACTORS AND DIYERS

Lowe’s Canada will roll out two dedicated power tool lines in its stores over the next few months. The Flex and Kobalt brands are already in Lowe’s U.S. stores.

Flex is a power tool line for contractors and pros. The Flex line first arrived in Lowe’s stores in the U.S. just over a year ago as part of the retailer’s strategy to strengthen its connection with contractors. It’s produced by Chervon, a global tool manufacturer, which also manufactures Kobalt’s cordless power tool lines for Lowe’s.

The new lines are already available online, but they’ll be gradually introduced to stores beginning with Réno-Dépôt. Lowe’s stores will get the lines in the fall.

“These two brands are real game chang ers for DIYers and contractors nationwide,” said Chris West, SVP merchandising at Lowe’s Canada. “(They) set new standards in the mar ket in their respective categories and offer more value to our customers.”

For the pro customer, Flex cordless tools boast fast charging times, long runtimes, and

more power. Lowe’s, RONA, and Réno-Dépôt customers currently have access to some 30 Flex products, but this range is expected to grow later in the year with a second wave of products that feature lithium batteries.

“The addition of this brand is exciting news for our professional customers,” said Jeff Oben, senior director, pro sales - in store, at Lowe’s Canada. “Things move fast on a job site, so it’s essential for contractors to have reli able, high-performance tools that allow them to do more work, more efficiently.”

Charles Grégoire-Béliveau

Antonio Di Pasquale

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B.C. BUILDING SUPPLY ASSOCIATION CONFRONTS CHALLENGES IN HIRING

Aresearch study to figure out how to make the home improvement industry more attractive to poten tial workers has been commissioned by the Building Supply Industry Association (BSIA) of British Columbia. Funding is being provided by the province’s Ministry of Advanced Education and Skills Training. The study is being conducted by R.A. Malatest and Associates.

“It’s an 18-month deep dive into our industry,” says Thomas Foreman, president of the BSIA. Frustrated by the shortcomings of the industry in terms of recruitment and succession planning, Foreman wanted to build a blueprint to help member compan ies, which include dealers and suppliers, to tap into the province’s workforce.

Like everywhere in North America, staffing in B.C. has become a huge issue. Yet, at the same time, the industry is busier than it has been in two decades, preventing many companies from having the luxury to look ahead and plan their talent acqui sition strategies. “All of us see what the challenges are,” Foreman says.

Take training, for example. Most of the focus in this area is on entry-level skills, important enough for any new employee. But, with some exceptions, there’s a lack of meaningful training for managers and other senior people, Foreman points out.

The answer, Foreman says, is to get more data on who the future workforce repre sents, and what their values are. Malatest and Associates has been constructing and

conducting surveys and focus groups to gather that data. The study is now in phase two, and Foreman expects the final report to be ready next spring.

COPENHAGEN DIY SUMMIT HEARS PREDICTIONS ON

DURATION

OF SUPPLY CHAIN WOES, INFLATION

Expect the supply chain to remain in disar ray in our industry for at least another eight months. Nor will inflation go away any time before that, though it will likely start to ease into 2023.

These were just some of the predictions shared in early June by Mark Herbek, execu tive director, home improvement, at the Cleveland Research Co.

Herbek was speaking to 900 home improvement executives from around the world—including Hardlines—at the eighth DIY Summit, in Copenhagen, Denmark.

Herbek noted that home improvement retail was up 35 percent in the U.S. over two years under COVID (comparable to growth in Canada, according to Hardlines). Out-ofstocks continue to run as high as 25 percent and this will extend the home improvement cycle as people push out projects until prod uct is available. “But more dollars will be chasing fewer products and this is resulting in staggering inflation,” Herbek said.

While online sales continue to stay rela tively healthy, in-store traffic has flattened, compared with pre-COVID rates. “We are past the peak in the U.S.,” Herbek notes. “We are now seeing a declining environment.” He said that it has taken “from 10 to 17 months” his torically for this cycle to recover.

Thomas Foreman, president of the BSIA of BC, says his organization is conducting a study to assist recruitment strategies.

Mark Herbek of the Cleveland Research Co. addresses delegates at the recent DIY Summit held in Copenhagen.

Kitchen&Bath SPOTLIGHT

Extended reach makes for a clean sink

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Minimize clutter with handy below-sink storage

Blanco’s new Botton II organizational system maximizes storage for recycling, cleaning supplies, and more. It fits seamlessly below the sink base cabinet and boasts easy to access under-the-sink organization, including two removable four-gallon bins with handles and a top shelf for additional storage. Install easily on the bottom of the cabinet with just four screws. www.blanco.com

Art Deco-style faucets in multiple styles and colours

The Rivana faucet collection from Blanco features a geometrical square base which transitions into a round spout with a streamlined pull-down spray head, blending organic shapes with ergonomic function. Inspired by Art Deco design, the full Rivana family includes three styles: Semi-Professional, High Arc, and Bar. The faucets are available in Chrome, PVD Steel, Satin Gold, and Matte Black, and are complemented by a soap dispenser. www.blanco.com

Easy-to-clean baths with no colour bleed

BainUltra’s Celestia baths are made with FineStone, composed of refined minerals and pure liquid acrylic inspiration from the sky. Equipped with thermal insulation, the baths resist hot temperatures and are strong and durable. Light and colour resistant, with no colour bleed or wear, they are non-porous, hygienic, and easy to clean and repair. www.bainultra.com

Sliding shower panels are easy to clean

At 8mm, Maax’s Inverto Sliding Shower Door Glass panels feature Lotus easy clean glass protection. It fits showers with 70-1⁄2-in. wall clearance, and the glass extends to 74-in. Two sliding glass panels make for flexible entryway or plumbing access on the left or on the right. Sleek and square elements for a modern look. Combine a shower door with a return panel for a corner shower. www.maax.ca

Cut chlorine levels and adjust spray setting

American Standard’s Spectra Filtered 4-Spray Hand Shower Rail System reduces chlorine levels in the shower by at least 50 percent. The filter is built into the rail system so it’s easy to change and eliminates the need for a bulky add-on filter. The hand shower features four spray functions, from a drenching rain to a pulsating massage, and is mounted on an adjustable, smooth-gliding holder. www.americanstandard.ca

Get chilled sparkling water instantly

The GROHE Blue Chilled and Sparkling 2.0 Faucet gives homeowners instant access to filtered chilled water, medium carbonated, or full sparkling water, and unfiltered tap water in one technologically advanced design. Use the push button with LED ring to dispense the preferred water and its single lever handle to dispense tap water. The pull-down kitchen faucet is equipped with WiFi and Bluetooth to monitor faucet performance, track, and notify users of CO2 usage, filter status, and control water portioning via the app. www.grohe.ca

Bidet toilet is packed with features

The DXV AT200® LS SpaLet bidet toilet combines luxury design and performance paired with personalized hygiene, comfort, and cleansing features to pamper in comfort for a fresh, out-of-the-shower feeling. Advanced features harness the power of technology to keep your room smelling fresh, with air circulation, room refresh deodorizer, and an air shield deodorizer. A soft night light illuminates the seat and bowl. The seat includes an aerated feminine wash and aerated posterior wash with dual adjustable self-cleaning nozzles, plus a heated toilet seat with adjustable temperature settings. www.dxv.com

Hand shower is easy to install, easy to release

Inspired by natural elements and soft modern lines, Moen’s 6-Function Hand Shower in Chrome offers a streamlined look that fits into any décor. The Magnetix docking system allows for easy release and securely snaps the hand shower back into place. The included 84-inch kink-free metal hose extends your reach and flexibility. Installation is quick and easy, requiring only a wrench and three simple steps. www.moen.ca

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Moen’s Tension Curved Shower Rod has a bowed design that offers extra room to move in the shower. This tension curved shower rod is corrosion-resistant for reliable long-lasting use. Its adjustable design allows easy installation with no cutting necessary. The included decorative covers add a stylish element while helping to conceal the mounting hardware. Pivoting flanges allow you to securely install the rod on uneven walls in minutes, with no cutting required. www.moen.ca

For a safer bath with no wall damage

Taymor’s Suction Assist Bar offers additional balance and stability in the shower or anywhere else in the home. The suction cups secure instantly to smooth, non-porous surfaces such as glass, fibreglass, or tile. With flip-up locking tabs, the cups are easy to install with no tools required and no damage to walls. Available in white and grey or white and blue finish. www.taymor.ca

A faucet that is a functional work of art

Equipped with everything you need to prep, cook, and clean in the kitchen, this Bruton faucet is a functional work of art. The coil and the knurling details are both practical and decorative, adding to the performance and the timeless design. It’s beautifully symmetrical and offers maximum clearance and reach. Available in polished chrome, stainless steel, matte black and brushed gold. www.pfisterfaucets.com

INTERVIEW BY STEVE PAYNE

JOURNEY A MANAGER’S

LANGTON CHODOKUFA has come a long way since his decision, 21 years ago, to reluctantly leave his family and move from Mutare, Zimbabwe, to North America.

“It was supposed to be for a two-year stint,” he told HHIQ. “Getting experience in a developed economy would be advantageous for the career roles that I aspired to.” Langton’s first stop, Cleveland, was not an easy place to find a job. “I became frustrated with my job search,” he confesses. But one day he walked into a Home Depot which had set up a recruiting kiosk. Two decades later, and one more country on his odyssey later, Langton is the proud store manager of Home Depot’s store #7011, South Etobicoke (Toronto).

Photography: Larry Arnal

I am naturally attracted to the impossible task in the room.

“ ”

MANAGER’S

LET’S START WITH YOUR BASIC CAREER PATH AT HOME DEPOT.

I started at Home Depot in Cleveland as a cashier. I’ve now worked for three differ ent divisions—Northern Division, Expo Division and the Canadian Division. I relocated to Canada for family reasons and really loved how Home Depot supported me through that. I was in the U.S. from 2001 and then I moved in 2006 to Oakville, Ont. I was promoted to an assistant store manager role in the Brampton market in 2007, and then, ultimately, I became a store manager.

TELL US ABOUT YOUR DECISION TO COME TO NORTH AMERICA.

My previous work experience in Zimbabwe was in banking. When I immigrated to the United States, it was supposed to be for a two-year stint. Getting experience in a developed economy would be advantageous for the career roles that I aspired to. Not only that, the thrill of what I would learn and the person I would grow into! However, I became frustrated with my job search in Cleveland. Sometime down the road, I walked into a Home Depot, and there was a kiosk. I filled out the application right there. When I was hired, I worked as a cashier for

three days. But I was taking a computer sci ence and engineering degree at the time, so the store manager moved me to work with the computers in the store.

GROWING UP IN ZIMBABWE, WHAT DID YOU WANT TO DO FOR A LIVING?

In high school, I had the privilege of win ning some academic awards a couple of times, allowing me to access some events. There was an event with different speakers at my school. Two of the speakers sat on various boards of high-profile organiza tions at the time. I thought it was so cool that someone could be in a position to help create environments for others to prosper.

Since childhood, I have always been a sucker for hard work and I am naturally attracted to the impossible task in the room.

HOW DOES THAT PASSION TRANSLATE TO YOUR ROLE AS STORE MANAGER?

It definitely connects to my store manager role. There are a lot of different roles to play. As a store manager, you can pretty much make of it what you want to make it. There’s endless stuff to do. Every day is different, always trying to figure out the next big thing that pushes your team to be able to deliver on customers’ ever-shifting needs.

My passion is really about how do I leave the environment I’m in a little bit better

Langton Chodokufa confers with Sabrina Scrivo (left), human resources manager at Home Depot South Etobicoke and (centre) Trey Reynolds, operations assistant store manager.

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than how I found it? When you’re talking about extending that into our associates lives, I think about how I can make things different for my associates. Improve things for them and with them. Help support them in their goals.

I also really love product excitement and

bringing that to my associates and custom ers. I really love the idea of the challenge in that. How do we bring a product to life? How do we communicate that? It’s exciting in the sense that it’s always thrilling and it keeps you on your toes. And I love seeing how our associates take on that challenge every day.

WHO HAVE BEEN SOME OF YOUR MENTORS?

Eileen Hooker was one of my first men tors. She was a computer room supervisor at Home Depot. Everything she did, she really strived for excellence, and she was one of a kind. Eileen took me on from my early career days at Home Depot and she would just give me opportunities to experi ment. She was amazing, always there—no matter what—to support me. Eileen was really important to me. I stayed in contact with her until she passed a few years ago.

The work ethic I have now is from my Dad. He’s passed, but he used to work for the provincial government in Zimbabwe. He would take me to work sometimes and the reason I would go is because we got to have lunch together—and he had a com puter, which he let me play games on. Back then, computers were a big thing!

My Dad was tireless. His role was as an operational officer—it was his work to make sure communities were safe and provided for. It was amazing to me how he would do that selflessly. He’d give away personal stuff to ensure communities had what they required. He would organize food, or count less times he’d walk home after lending his car out to someone, to help a community member. My family and I have sponsored families all my life and we raised funds for an orphanage in Uganda during the pan demic. This past holiday, our store helped support 65 families with meals for the week. I love that Home Depot is an enabler for such activities to happen.

My passion is really about how do I leave the environment I’m in a little bit better than how I found it?

“ ”

WHAT WERE SOME OF THE BUSINESS CHALLENGES OF THE PANDEMIC?

I think the biggest challenge for the team was the conversion of our business model. Everything changed with those initial lock downs. But even though that was incred ibly difficult for us, our associates just kept showing up. They could have stopped com ing to work at least until such a time that they could assess the severity of what was going on, but they didn’t. That was really incredible. They really wanted to make it work, support the community and do what they could.

WHAT’S CHANGED ABOUT WORKING FOR HOME DEPOT SINCE YOU STARTED IN 2001?

The fantastic part of Home Depot is just how we’ve been evolving as a company. We’ve really improved operational aspects in different internal departments to work more cohesively—we truly are becoming One Home Depot. Concerning the industry itself, it’s around the evolution of our cus tomers. Seeing the evolution of each gener ation go through its life stages. Customers today have different shopping styles, they define value differently and what they define as “convenience” is totally different

compared to 20 years ago. I love that we find a way to position ourselves as a des tination for each of our diverse customers’ needs. We have the services that the ‘do it for me’ customers want; we have the threehour express shipping that the pros and the Generation Z customers want. I really love that we look at what each generation values. You see that in the growth of our services, and how our associates go about helping our customers in the aisles.

HOW HAS DIGITAL TECH CHANGED YOUR JOB?

In the beginning, it was a rough start, but let’s remember, I’ve been here for more than 20 years. It wasn’t necessarily just on the technology, but at that time, everyone was just trying to figure this all out. When you’re used to one way, this created a lot of challenges. But overall, it has been amazing, and it’s made my job a lot easier; it’s made my team’s job a lot easier. Now we can’t wait to hear the next thing that’s coming out.

AS A MANAGER, HOW DO YOU SEE YOUR ROLE IN DEVELOPING TALENT AT YOUR STORE?

Managers can truly set the foundation to help individuals become who they want to become. A store of individuals who maybe

don’t see that in themselves yet. That is at the very top of my list. If someone were to say to me, write a job description for your role, I would say I’m there to facilitate a place that people can grow in—in their careers and as people.

WHAT ARE YOUR SOME OF YOUR HOBBIES?

I love watching (children’s animated TV show) Peppa Pig with the kids, and there’s not an episode I don’t know. Beyond that, I love fishing. The quietness on the water, it brings me closer to nature. I used to do it by myself when I first started, but with six kids, it’s always a party. My boat is already packed with just my family! I also fish with friends—we get together a few times in the summer.

WHAT IS YOUR BIGGEST WEAKNESS?

I can’t stand still! I’m always on the move doing something or learning something new. I take classes often, and I’ve enrolled myself at York University, which lets me sign up for courses of interest. I took critical thinking, and it was interesting. I also may want to take a marketing course in addi tion to core business courses. Information is always changing.

Langton in the power tool corral with (from left) Antonio (Tony) Stampone, supervisor of the merchandising execution team (MET); Sabrina Scrivo, human resources manager; Hydie Vicente, MET associate; and Trey Reynolds, operations assistant store manager.

Beauty and Performance from your Trusted Brand

HOW DO YOU FIND TIME FOR ALL THIS?

I don’t even know, I guess I find time within my down time. Most of this happens when the kids go to bed. I jump on online classes, I’ll read books, or sometimes I get audio books, so I can listen to my books while I’m driving to work. I look forward to my drive that way, as it’s a little longer than a normal commute.

WHO IS YOUR FAVOURITE AUTHOR?

It depends on what topic I’m reading. If it’s business or if it’s philosophical, it’s differ ent. But in general, one book I read over and over again is Over The Top by Zig Ziglar. If I don’t have something to read, I will pick

that book up, and I always get something new out of it.

DO YOU HAVE A FAVOURITE PRO SPORTS PLAYER?

This one’s a little biased because I came from the Cleveland area, so Lebron James.

WHAT WAS THE MOST EXCITING DAY OF YOUR LIFE?

For me, it’s when I got married. It was the top highlight of my life for me, and with each kid, their birth was just over the top—these were are all extraordinary, life-defining moments for me. When it comes to working, the best days are when you’re able to facili tate someone getting closer to the role they’re working towards—that’s the most gratifying.

When you see you’ve had an impact in an environment you helped to create or foster, a positive impact on people as they work towards a goal. Those are exciting moments.

WHAT WAS THE BIGGEST CHALLENGE YOU HAVE EVER OVERCOME?

My biggest challenge was leaving my family in Zimbabwe—new territory, restarting life again, and restarting my career. I was one of the youngest to hold the position I had at the bank I worked at—and it was a pretty big bank—and I left all that and my family.

I came to the U.S. to start in a place where I didn’t know what was around the corner. The only aspect I understood of the culture was what I had read. That was challenging.

WHAT WOULD YOU WANT YOUR COMMUNITY TO SAY ABOUT YOUR STORE?

What I would really want is that my store’s name comes up in important personal con versations. That would mean so much to me and our associates who work so hard to serve our community. To have touched an individual to the point where they… speak about something (at our store) that had a significant impact on them. That they can’t help in those private conversations but share a positive experience that we helped create. It would be most humbling to hear Home Depot played a small part in helping to meet that opportunity—touching and leaving the communities we serve a little bit better than when we first got there.

Fast,

BY THE EDITORS OF HARDLINES

country’s home improvement retailers enjoyed another banner year in 2021—the second year of COVID restrictions.

Canadians continued to plough money into their homes as other spending options were reduced. In spite of supply chain problems, HARDLINES estimates our industry grew by 11.3 per cent last year, bringing total retail* sales to over $58-billion. Here’s how that breaks out...

The

October 18 & 19, 2022

NIAGARA-ON-THE-LAKE, ONTARIO www.hardlinesconference.ca

It’s Time to Re-connect.

October 18 & 19, 2022 at the beautiful Queen’s Landing Hotel in the historic town of Niagara-on-the-Lake, Ontario, just 80 minutes from Toronto. Join other top retailers and managers from across the country, along with leaders from the key retail banners and buying groups, their wholesalers, and vendors. PLUS:

Canada’s only national awards program dedicated to celebrating the achievements of hardware, home improvement and building supply dealers and their staff.

Can’t make the trip in person?

This year, you can attend the Conference and Awards Gala virtually. We’ll make it easy to join your fellow retailers and celebrate award winners and top speakers!

A fantastic networking experience!

This year’s event will feature some of North America’s top thought leaders in hardware and home improvement retail, who will share their stories and their insights on the future of retail. MEET OUR SPEAKERS:

The 26th Annual Hardlines Conference

October 18 & 19, 2022

NIAGARA-ON-THE-LAKE, ON www.hardlinesconference.ca

AGENDA AT-A-GLANCE

OCTOBER 17 TH

OPENING NIGHT RONA Pub Night 7:00pm – 9:00pm

OCTOBER 18TH DAY 1

Breakfast, Lunch & Sessions 8:00am – 3:35pm

Home Hardware Industry Reception 4:30pm – 6:00pm

Outstanding Retailer Awards 6:00pm - 9:00pm

OCTOBER 19TH DAY 2 Breakfast & Sessions 8:00am – 11:50am TITLE SPONSOR

Tony Cioffi President

LOWE’S CANADA

Eric Palmer VP & General Manager SEXTON GROUP

Rob & Joanne Lawrie Owners THE LAWRIE GROUP OF HOME HARDWARE STORES

Alison Fletcher Owner THE COOKERY STORE

Dan Tratensek COO & Publisher NHPA

Peter Norman VP & Chief Economist

Charles Grégoire-Béliveau VP, Merchandising BMR GROUP

Zaida Fazlic VP, People & Culture TAIGA BUILDING PRODUCTS

Doug Stephens

1. THE HOME DEPOT CANADA

HQ: Toronto, Ont.

2021 SALES: $11.673-billion

STORES: 182

The world’s largest home improvement retailer is also the number one player by sales in Canada. The Home Depot Canada is a business division of The Home Depot in Atlanta. The parent company had US$151.2billion in 2021 sales—up a whopping 14.4

percent from 2020. Orange Crush had 2,137 stores last year in Canada, the U.S., and Mexico.

Here in Canada, the company has held steady with 182 stores for the past decade, concentrating on increasing sales from its existing stores rather than adding new loca tions. The growth effort is being directed at both in-store sales and e-commerce sales, that latter in what the company calls its “endless aisle” (which contains a reported one million SKUs).

One of Home Depot Canada’s key target markets for growth is the pro customer. In the U.S., contractors represent 12 percent of Home Depot’s customers. Services for pros include designated service counters in the stores and online connections such as Pro Xtra, which ties pro members to the Home Depot’s commercial credit card. Benefits of this program include rewards on all pur chases, 365-day in-store returns, and the ability to issue cards to trusted members of contractors’ staffs.

2. HOME HARDWARE STORES

HQ: St. Jacobs, Ont.

2021 SALES: $8.875-billion

STORES: 1,053

The largest Canadian-owned banner in the retail home improvement industry, Home Hardware Stores continued to develop its e-commerce technology in 2021. After many years offering BOPIS (buy online pick-up in store) through its thousand-plus

stores, Home Hardware is now offering BOSTH (buy online ship to home) from its Wetaskiwin, Alta., distribution centre. A BOSTH functionality will soon be oper ational from the Home Hardware central DC in St. Jacobs, Ont., too 2021 was a year of further expansion into Quebec for Home Hardware. Early last year it partnered with Groupe Turcotte (a Home Hardware dealer in Quebec with seven stores) to purchase home improve ment retail chain Patrick Morin (see sep arate listing). This added an impressive 21 stores and a distribution centre to Home Hardware’s roster in Quebec.

Like many retailers during the con tinuing supply chain disruptions of 2021, Home Hardware has moved up its seasonal ordering times to accommodate the longer lead times from Asia. It has also decided to secure more product that in the past and has worked hard to move product between its three main DCs to keep its dealers sup plied. Home Hardware Stores has also seen an influx of new buyers, some of them from big boxes and mass merchants with which Home Hardware competes.

Market share of big box stores ($millions)

Home Depot Canada $11,763 20.1%

Lowe’s Canada* $4,687 8.0%

Kent* $432 0.7%

Rest of the Industry $41,585 71.1%

* Sales from these retailers’ big box stores only.

investments in e-commerce. It did signifi cant business from internet tools like its online paint selector (a first in Canada). It installed significant numbers of blue tooth-powered lockers to permit “contact less” customer pick-up. And it continued to expand its controlled and house brands.

vice-president, finance, and he had served as interim president of the Canadian oper ations once before.

3. LOWE’S CANADA/RONA

HQ: Boucherville, Que.

2021 SALES: $8.53-billion STORES: 445

2021 was another pandemic year in which Lowe’s benefited from its ability to make

Lowe’s’ business model in Canada is radically different from its U.S. operations. Only its big box stores up here follow its American model. Lowe’s inherited from its 2016 takeover of RONA a 496 store net work in Canada, many of them owned and operated by independents. The corporate RONA stores include a mix of full-size big boxes, mini big-boxes (proximity stores), and building supply stores. Lowe’s Canada also operates 20 Réno-Dépôt stores in Quebec that are very strong with contract ors and five Dick’s Lumber yards in B.C. and Alberta.

On Jan. 6, 2022, Tony Cioffi was appointed president of Lowe’s Canada, reporting to Tony Hurst in the U.S., who had held the top role in Canada for two years. Cioffi had joined the company in 2016 as senior

4. CANADIAN TIRE RETAIL

HQ: Toronto, Ont.

2021 SALES: $7.87-billion*

* hardware/home improvement only

STORES: 504

Canadian Tire Corp. owns a range of retail brands, including Sport Chek, PartSource, Mark’s, Helly Hansen, and Party City. The

company’s flagship Canadian Tire Retail stores are focused on the hardware, house wares, and sporting goods sectors. Stores are located in every province and territory except Nunavut. They’re independently operated and co-owned by Canadian Tire’s franchise, or associate, dealers. The dealers own the fixtures, equipment, and inventory, while the head office owns the real estate. The company is celebrating its 100th anni versary this year.

Throughout COVID, Canadian Tire stores became go-to destinations for home repairs (the stores do not carry lumber, commodities, or other building materials). A surge in online sales early in the pan demic was accompanied by bad publicity about Canadian Tire’s online systems crashing under the strain. Heavily publi cized investments in the company’s omni channel presence have followed.

Canadian Tire managed to double its number of online customers from 2019 to 2021. The Triangle Rewards program is an important part of this effort. It ties all the Canadian Tire banners together under one online brand. It is also proving to be an effective way to connect with younger customers.

Buying group sales and market shares ($millions)

BMR Group*

5. INDEPENDENT LUMBER DEALERS

CO-OPERATIVE

HQ: Ajax, Ont.

2021 SALES: $4.561-billion

STORES: 120

Composed of mostly large regional LBM players, the ILDC has negotiated deals for its members since 1964. The scope of its

TOTAL Rest of the Industry $36,625 62.6%

* BMR’s sales have been backed out of ILDC’s total for this table, as BMR is also a member of ILDC. Therefore, the total of ILDC’s actual market share will be a combination of BMR and ILDC

Get More Support at the Negotiating Table

A Line Acoustic Supply has been serving the construction industry for more than 30 years. We specialize in acoustic ceilings and advanced metal ceiling systems, as well as drywall and other building materials. I am the third generation that has been handed the torch to move the company forward.

“ ”

Joining TORBSA was like adding an extra hammer in our toolbelt.

Joining TORBSA has been one of the best moves our company has made. Not only have we expanded our product offering, but we’ve been able to make better deals with our existing vendors, improving our bottom line. Having TORBSA at the negotiation table is like having an extra hammer in your toolbelt. And each member is also a shareholder, so TORBSA’s transparency is second to none. The staff at TORBSA are some of the hardest working people out there, constantly challenging the status quo and finding new opportunities. We look forward to working with them for years to come.

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

Ryan Hillier-Spurr GENERAL MANAGER A LINE ACOUSTIC SUPPLY INC.

Photo: Justine Apple Photography

Building Centres 3,108 stores $29.647 billion 50.7%

Canadian Tire* 504 stores $7.870 billion 13.5%

Hardware Stores 1,007 stores $4.158 billion 7.1%

Big Boxes 302 stores $16.792 billion 28.7%

membership ranges from other buying groups (Federated Co-operatives, BMR), to powerhouse regional operators (such as Kent, with 48 locations, some of them big boxes, in Atlantic Canada), to family businesses clustered around a central medium-sized city (like Copp’s Buildall, London, Ont.), to single location outlets (for example, J&H Builders Warehouse, Saskatoon). Together, ILDC members control some 120 stores (not inluding Federated Co-operatives and BMR). In early 2021, ILDC lost an important mem ber in Quebec when Patrick Morin was purchased by Groupe Turcotte (Home Hardware).

FEATURE

6. TIMBER MART

HQ: Calgary, Alta.

2021 SALES: $4.08-billion STORES: 603

Claiming to have the highest volume drywall purchases of any buying group, TIMBER MART experienced another year in 2021 in which LBM prices stayed ele vated because of the pandemic. TIMBER MART welcomed important new Quebec members last year and it also picked up dealers in the Toronto and Ottawa areas, as well as one in B.C. The group realigned its LBM buying function last year. Last fall, Bruno Baldessari, an industry veteran formerly at competitor BMR, was hired as vice president of forest products trad ing. Several new traders were recruited to join his team, with a goal to expand the product offerings available to the group’s approximately 600 member stores.

7. SEXTON GROUP

HQ: Winnipeg, Man.

2021 SALES: $3.3-billion STORES: 465

Sexton, once a regional buying group that operated mostly in Western Canada, has long since transformed itself into a national player. But there is still one province where it hopes to grow. Eric Palmer, vice presi dent and general manager of the group, told Hardlines in a 2021 podcast that expansion in La Belle Province was very much on the agenda. “We are committed to bringing the full value of the Sexton Group to Quebec,” Palmer said. Sexton has an LBM supply agreement with Ace dealers and their licence holder in Canada, Peavey Industries.

9. BMR GROUP

HQ: Boucherville, Que.

2021 SALES: $1.534-billion STORES: 266

The largest Quebec-owned home improvement retailer, BMR got a new CEO last year. Alexandre Lefebvre took over in March from Pascal Houle, who was then named CEO of BMR’s parent company Sollio Cooperative Group (Formerly La Coop fédérée) later in the year. In 2021, BMR Group continued its growth outside of Quebec. It welcomed a dealer in Shippagan, N.B., last year and it also signed stores in Kemptville, Hawkesbury, and Winchester, Ont. The Boucherville, Que.-based group has identified Ontario as a key target for expansion beyond its existing 19 stores there. In June 2022, BMR appointed a new head buyer, Charles Grégoire-Béliveau, and a new COO, Antonio Di Pasquale.

8. CASTLE BUILDING CENTRES

HQ: Mississauga, Ont.

2021 SALES: $1.887-billion STORES: 293

Ken Jenkins, who has been leading Castle Building Centres Group since 2007, recently added the CEO role to his existing title of president. During Jenkins’ 15 years at the helm, Castle has grown from just over 200 dealer locations to almost 300 outlets today. They consist of building supply dealers, hardware stores, and specialty and com mercial dealers. Castle has locations in every region of the country except Yukon and the Northwest Territories. The group has been actively adding new members across the country in recent years. Castle’s commercial division is called Commercial Builders Supply.

10. CANAC

HQ: Quebec City, Que.

2021 SALES: $1.3-billion

STORES: 31

Canac is a powerful home improvement retail chain owned by the Laberge family. It has 31 stores in Quebec with only a handful in the Greater Montreal Area, so Canac still has room to grow substantially in the prov ince before the company enters (as company officials promise) the Ontario market. To fuel its ongoing expansion, Canac has been expanding its DCs substantially, completing

a second building in Drummondville, Que. in January of this year. It is now building a DC (and a store) in Lévis, Que. on the south shore of the St. Lawrence River near Quebec City. Canac’s next store opening looks like it will be in Contrecoeur (east of Montreal) in spring 2023.

FEATURE

“largest independently-owned drywall supplier in the country with 23 locations.” After further growth, WSB Titan was pur chased in 2018 by GMS Inc., a large wall board distributor based in Atlanta. The seven Canadian dealers currently in the group have grown considerably—and some of them, like multi-outlet Slegg Building Materials on Vancouver Island, are fullscale building supply operations.

thoroughly,” said TORBSA president Paul Williams. “TORBSA and its shareholders are truly excited at the road ahead, as we lay the foundation for what will be many years of success as a business.” Founded in 1966, TORBSA represents 30 members in 40 loca tions across Canada. AD is based in Wayne, Penn., and buys contractor-related and indus trial products for some 845-plus member owners in the U.S., Mexico, and Canada.

11. KENT BUILDING MATERIALS

HQ: Saint John, N.B.

2021 SALES: $1.151-billion

STORES: 48

A subsidiary of the J.D. Irving company, Kent is the only retailer other than Lowe’s Canada to go to market with a multi-format big box and building supply store blend. Kent opened its latest big box store in March 2022 in Moncton, N.B. The store features mod ernized displays and enhanced signage to aid customer flow, along with expanded product assortments, a drive-through lumberyard, and more. In March 2021, Kent launched a new customer loyalty program with Exchange Solutions, a Boston-based firm. Kent’s new program gives its customers access to exclu sive offers and rewards—and increases Kent’s e-commerce presence. Exchange Solutions also counts Lowe’s Canada among its clients.

13. DELROC

HQ: Langley, B.C.

2021 SALES: $908-million

STORES: 136

Approaching its 50th anniversary in 2024, Delroc is a privately-owned buying group founded by entrepreneur Bruno Mauro of Dryco Building Supplies in Langley, B.C.

Today, Delroc buys for 33 members repre senting 136 stores. It negotiates in a wide range of building material categories. It is strongest in B.C., where it has 69 dealer locations, followed by Alberta with 27. It has 19 dealer locations in Ontario and four in Atlantic Canada. Its largest member is B.C.based Windsor Building Supplies—which has its own listing at position 20.

15. FEDERATED CO-OPERATIVES

HQ: Saskatoon, Sask.

2021 SALES: $644-million STORES: 92

Federated Co-ops is one of the coun try’s largest farm co-ops. On the retail side, it supplies member co-ops through out Western Canada that have ag centres, supermarkets, convenience stores, depart ment stores, and home centres.

This last category is serviced by FCL’s Home and Building Solutions business. To support its stores, FCL is building a new LBM distribution hub on a 6.7-acre site out side of Regina. The $7.5-million investment will allow FCL to procure and distribute materials such as lumber, drywall, and deck ing materials from a centralized facility to Co-op Home Centres in Manitoba and most of Saskatchewan. A second facility in Alberta is planned to be operational in 2023.

12. GMS/WSB TITAN

HQ: Surrey, B.C.

2021 SALES: $975-million

STORES: 32

WSB Titan was formed as a commercial building supplies buying group in 2009 by three regional building supply dealers representing the Prairies, Ontario and Quebec. The new firm billed itself as the

14. TORBSA

HQ: Bolton, Ont.

2021 SALES: $715-million

STORES: 40

A buying group whose members specialize in pro builders, TORBSA announced in June that it had merged with a U.S.-based buying group, AD. “The decision to align our busi ness with AD was one that was scrutinized

16. PEAVEY INDUSTRIES

HQ: Red Deer, Alta.

2021 SALES: $509-million STORES: 92

Peavey Industries operates farm and ranch stores across Canada under the

Why ?

Why ?

• Are you a successful hardware retailer looking to retire?

• Are you a successful hardware retailer looking to retire?

• Do you want to avoid the hassle of trying to sell your business to an unqualified buyer and instead work with a company that has a proven track record with acquisitions and due-diligence processes in place to execute a deal quickly?

• Do you want to avoid the hassle of trying to sell your business to an unqualified buyer and instead work with a company that has a proven track record with acquisitions and due-diligence processes in place to execute a deal quickly?

• Are you independent and thinking you should introduce a brand to your business that will provide the kind of great business, product, marketing and distribution support ACE Canada dealers enjoy?

• Are you independent and thinking you should introduce a brand to your business that will provide the kind of great business, product, marketing and distribution support ACE Canada dealers enjoy?

These questions are all answers to ‘Why ACE Canada?’ –and there are many more unique situations, questions and answers. Peavey Industries LP and ACE Canada invite you to further explore ‘why ACE’ may be the perfect fit for you, your business and your team. Please reach out to us at joinACE@peaveyindustries.com to find out more about the benefits and solutions ACE Canada can offer for your unique situation.

These questions are all answers to ‘Why ACE Canada?’ –and there are many more unique situations, questions and answers. Peavey Industries LP and ACE Canada invite you to further explore ‘why ACE’ may be the perfect fit for you, your business and your team. Please reach out to us at joinACE@peaveyindustries.com to find out more about the benefits and solutions ACE Canada can offer for your unique situation.

Not Available to Rona Dealers.

Not Available to Rona Dealers.

Are you a dealer considering converting to the Ace banner? We want to hear from you too – and can provide you with the information you need while highlighting the many benefits of joining the ACE Canada family.

Are you a dealer considering converting to the Ace banner? We want to hear from you too – and can provide you with the information you need while highlighting the many benefits of joining the ACE Canada family.

Peavey Mart brand. In 2016, it purchased TSC stores in Canada. Peavey is also the licensee of the Ace Hardware brand in Canada, which it took over in March 2020 from Lowe’s Canada. There are some 100 Ace-branded stores in Canada but this is a small presence considering there are more than 5,000 Ace-bannered dealers in the U.S. Peavey has a relationship with Sexton to provide that LBM group with Ace hard ware, while Sexton reciprocates with LBM buys for Ace dealers in Canada.

FEATURE

trusted supplier partner of the construc tion trades in North America, delivering on safety, service, innovation and value for our customers.” FBM Inc. purchased its Canadian outlets, known as Winroc yards, from Superior Plus LLC., a Toronto-based chemical firm, in 2016. There are currently 27 FBM/Winroc locations in Canada.

six in Quebec and one in Stittsville, Ont. near Ottawa. Patrick Morin subsequently left the ILDC.

17. UNITED FARMERS OF ALBERTA CO-OPERATIVE

HQ: Calgary, Alta.

2021 SALES: $414-million

STORES: 34

UFA is a co-operative meeting the needs of more than 120,000 member-owners—as well as non-members—throughout Alberta (with a handful of locations in B.C. and Saskatchewan). There are currently 34 UFA Farm and Ranch Supply stores, often twinned with cardlock locations (fleet fuel depots). UFA is a significant player in the home improvement industry in its region, buying lumber and building supplies through Sexton Group.

19. PATRICK MORIN

HQ: Saint-Paul, Que.

2021 SALES: $38-million

STORES: 21

The Morin family founded this business in 1960 and grew it into one of Quebec’s most important home improvement retail chains. In February 2021, the family sold their Patrick Morin stores to Groupe Turcotte and Home Hardware Stores Ltd. Louis Turcotte has been in the Quebec home improvement industry for over 30 years and, at the time of the acquisition, had seven Home Hardware stores of his own,

20. WINDSOR PLYWOOD

HQ: Langley, B.C.

2021 SALES: $326-million

STORES: 53

Like many retailers in our industry, Windsor Plywood stores did well during the pandemic. “Results were well above expectations,” president Curt Crego told Hardlines. Windsor is a privately-held chain of mid-sized building centres based in B.C. with 53 stores in Canada and five in the Pacific Northwest of the U.S. The outlets are, with a handful of exceptions, owned and operated by franchisees. “Had the pandemic not intervened, I expect we would have opened additional locations by now,” Crego said. “Unfortunately COVID, and, in particular, the cross-border travel restrictions, have and continue to pose an obstacle to our growth in the U.S.”

18.

FOUNDATION BUILDING MATERIALS (WINROC)

HQ: Calgary, Alta.

2021 SALES: $389-million

STORES: 27

Foundation Building Materials (FBM) is a U.S.-based group of GSDs with over 250 locations across the U.S. and Canada. Its mission statement is “To be the most

Fire safety products to keep families safe today and tomorrow.

As the world’s largest manufacturer of fire safety products, Kidde’s mission is to provide solutions that help keep families safe from fire and its related hazards.

BY STEVE PAYNE

THE AMAZON

HARDWARE

AMAZON EFFECT

Home improvement retailers in Canada surged towards e-commerce during the pandemic—or at least some of them did. While Canadian Tire embarks on a multi-billion dollar investment in ‘Omnichannel,’ hundreds of independent dealers in Canada still do virtually no business online. HHIQ investigates.

Anyone in this industry who is still doubting that they should be doing e-commerce needs only to consider one dollar figure.

$US469-billion.

$574-billion in Canadian dollars.

That was the revenue of the world’s lar gest online retailer, Amazon, last year.

Amazon was certainly top of mind to a western Canadian hardware retailer recently, who responded to a Hardlines sur vey about online sales with two bleak sen tences: “Our sales are dropping! Everybody is shopping at Amazon!”

Well, not everybody

But consider this. If Amazon was a coun try, it would have the 25th largest economy in the world, just slightly behind Belgium. Amazonia’s GDP would be half again as big as that of Israel. Or South Africa. Or Saudi Arabia. 2017 was the first year that Amazon was responsible for at least 50 per cent of the growth in American retailing. Around that time, a now familiar term was coined: The Amazon Effect.

Why is Amazon so successful? You could write a PhD thesis on everything the e-re tailer has done to become the third largest company in the world (behind Walmart and China Petroleum Chemical Company). But one of the many things Amazon has done is to dominate internet search itself—at

least when it comes to shopping online. Interestingly, more than 50 per cent of retail searches begin with Amazon not Google.

WHO LEADS OUR INDUSTRY?

So, other than Amazon, who is the lead ing e-commerce power in our industry? It depends how you define “our industry.”

The home improvement industry is just one spoke in Canadian Tire’s wheel—but it’s certainly one of the online leaders in hard ware and home products. CTC approached $2-billion in online sales in 2021. That

means Canadian Tire has a healthy online penetration of 12.5 per cent of all rev enues—equating to at least 16 per cent of the company’s “retail only” sales.

Obviously, Canadian Tire is hungry for an even greater share of digital sales. It is spending a lot of money to achieve this. “Canadian Tire to invest $3.4-billion in its online business” was a headline that ran in the Financial Post on March 10, 2022.

Although neither of Canadian Tire’s largest publicly-traded competitors in our industry break out their Canadian online figures in their annual reports, Home Depot and Lowe’s Canada are currently thought to do online sales of between 10 and 12 per cent of their total sales, spurred on by a huge jump in e-commerce activity during COVID 19. In fact, Hardlines has seen fig ures that show some big box home improve ment retailers were doing 30 per cent of total sales online in 2020: “The curbside year.”

Even if COVID restrictions have now ended, the desire to be a part of the “Omnichannel” world has intensified because of the bump that the pandemic gave to online activity. For the past five years, the word Ominichannel has been a stan dard feature of almost every publicly-traded retailer’s press releases.

Amazon reported revenues of $US 469-billion in 2021. That figure is ten times the size of the entire Canadian retail home improvement industry.

There are cynics. “The term Omnichannel is BS, to a certain extent, because it just means different channels to market,” said an anonymous well-known digital execu tive from another retail industry. “There’s no ratio. Canadian Tire’s announcement was mostly about bricks-and-mortar spend ing anyway.”

When it comes to e-commerce, there are now three tiers of merchants in our indus try. Alone at the top level is Amazon, which is obviously taking an increasing percent age of home improvement sales. The second publicly-traded group is Canadian Tire, Home Depot, and Lowe’s Canada—giant brick-and-mortar retailers. And then there’s everyone else.

ONE DIGITAL AT CANADIAN TIRE

One of the long-standing problems with brick-and-mortar retailers moving into e-commerce is that the majority of retailers have been slow to integrate their websites/apps with their store POS systems. “Traditionally, an order comes in online and then someone has to enter it manually into the POS,” said the anonymous digital executive.

When Lowe’s launched BOPIS (Buy Online, Pickup In Store) at about 30 of its Canadian stores approximately ten years ago, there was effectively a single terminal at each store receiving those orders. An associate was charged with taking those orders one-by-one and treating them like any other order that was physically placed in the store. “For most retailers, it’s still like that today,” the digital executive said.

Which is where the word “seamless” comes from. Everyone wants to move beyond the clumsy human interface where an associate rekeys an order.

“The future belongs to retailers who can provide the most seamless experience across digital and physical channels.” Greg Hicks, president and CEO of Canadian Tire Corp., said in videoconference with ana lysts following the release of the company’s first-quarter results.

“We are investing to provide a seamless end-to-end connection along the supply chain and to our customers across whichever channel they choose,” Hicks added, noting that a new platform is being rolled out to facilitate that seamless connection. It will be called One Digital. The platform was tested in New Brunswick in Q1 and a national rollout is following. One Digital will ultimately encompass CTC’s other banners, such as Mark’s, Sport Chek, and Party City.

“It’s a critical part of our evolution from a company made up of disconnected banners, brands, and services to an enterprise-wide platform where all banners and channels collectively amplify and render each other more valuable, creating a truly differenti ated customer experience,” Hicks said.

E-COMMERCE AT HOME HARDWARE

As impressive as Canadian Tire’s announce ments have been, important e-commerce moves are being made by other retail groups in our industry. Chris Parsons, director of e-commerce at Home Hardware Stores Ltd. in St. Jacobs, Ont., says his firm has learned a lot since the group first introduced BOPIS to its dealer network in 2014.

The potential for online shopping in the retail home improvement industry is vast, Parsons says. “Most e-commerce websites

“seamless”

“conversion rate” (percentage of visitors to a website who make an online purchase) can be deceptively low. He says a lot of cus tomers will search up a Home Hardware product online but go to a physical store to buy it, because Home Hardware has over a thousand locations and there is usually one nearby. In addition to the products in Home Hardware’s three main DCs across Canada, customers can view inventory at more than 600 Home Hardware stores.

convert at a rate of around one per cent,” Parsons says. “But they might have a $60 product. It’s not unusual in our industry to have a $4,000 and up basket size” because of project-based buying. Parsons told HHIQ he believes the potential penetration for online sales in our industry is high, at least “in the high twenties” percent of total sales.

Parsons also points out that the most familiar metric of e-commerce, the

“As long as you’re there in the custom er’s thinking process, whether they con vert online or in-store isn’t that import ant,” Parsons said. What is important to independents is that the customer comes to the store. “BOPIS is an opportunity to build rapport,” Parsons says. “In home improve ment, customers love to have that expert advice, that process where they engage with the associates at the store level.” That

As long as you’re there in the customer’s thinking process, whether they convert online or in-store isn’t that important.

“ ”

Greg Hicks, president and CEO of Canadian Tire Corporation, says the future belongs to retailers who can provide the most

experience across digital and physical channels.

human experience is the one advantage that smaller stores have over the (mostly) storeless online giants.

Parsons says that Home Hardware is cur rently displaying 45,000 SKUs on its website, compared to 300,000 items online according to Lowe’s Canada and a much-publicized 1,000,000-plus online items at Home Depot Canada. Then again, Amazon has a reported 12,000,000 SKUs online worldwide. But Parsons says that looking at online trans actions and online SKUs is missing the point. “E-commerce is not just about a transaction. A true e-commerce strategy is a whole digital strategy,” he says, including marketing, the community that can build up between shoppers online, advice, instruc tions, reviews, and more.

When it comes to BOSTH (Buy Online Ship To Home), every Home Hardware store except those in Ontario is currently capable of participating in BOSTH, Parsons says. The DC in Wetaskawin, Alta., is already up and running BOSTH with Ontario to fol low when changes are made to warehouse management technology in St. Jacobs. That should take place before the end of the year, Parsons said.

LOWE’S/RONA: THREE OPTIONS

Lowe’s Canada is in a unique position when it comes to e-commerce in Canada. Customers have at least three options for buying online from Lowe’s in this country: the Lowe’s site supporting some 70 Lowe’s big boxes in Canada; the RONA site, supporting more than 210 independent RONA dealers as well as close to 150 corporate-owned RONA stores; and the Reno-Depot site supporting 20 corporate stores.

“Customers are often building a project,” not just ordering individual SKUs, Bernier said. Lowe’s recognizes that customers needing expertise want to have a discus sion online, too.

Bill Morrison, retail consultant, says that an important part of smart retailers’ online strategies is to have exclusive or control brands that can protect them from direct price comparisons with the Amazons of the world. Bernier told HHIQ that Lowe’s Canada’s control brands such as Ego, Craftsman, Kobalt and Eklipse Cabinets, among others, have all been very important to growing his company’s online sales.

When the world began to lock down in March 2020, Lowe’s/RONA was already reasonably well prepared, Bernier said: “RONA was already in a favourable pos ition because we had made significant investments in online in the years beforthe pandemic.”

A RONA INDEPENDENT’S EXPERIENCE

Paul Sharpe, a RONA independent dealer in Guelph, Ont., says that there are advantages to being a member of a multi-brand banner like Lowe’s/RONA.

“There are great aspects of the RONA website and great aspects of the Lowe’s website. So we try to give them feedback

HHIQ asked Michel Bernier, Lowe’s Canada’s senior director, sales and dealer services, about how the company’s e-commerce strategies have changed since the pandemic began.

“True expertise is the product,” Bernier replied. “It’s about the service, not just the product and the price. During the pandemic, we introduced online tools like our colour selector, which is easy to use… and also our deck design tool.” Customers want expertise.

on what we’d like to see from each side... so that the RONA website can be even better.”

“If your store is on the web, your trading area is a lot larger,” Sharpe said. “People decide they want a RONA product and their local store might not have stock. Then they start to check on other RONA store websites. We get customers from east of Bowmanville (Ontario).”

Bernier at Lowe’s considers Sharpe to be one of the best independents in the organ ization as far as growing online sales. “In

Iggy Lorenzo (left), store manager at an independent RONA dealer in Guelph, Ont., with store owner Paul Sharpe. Sharpe estimates they hit 20 per cent of their frontline sales online by May 2021.

True expertise is the product. It’s about the service, not just the product and the price. “ ”

See what

as a contractor. They went above and beyond with the customer service and they have gotten themselves a customer for life

“Cannot get over how easy the railing was to install. Just installed my second Regal ideas railing system. First one went in more than 10 years go and still looks great.”

2019 we were at less than five per cent of our business (in online sales),” Sharpe said. “The potential was there but it wasn’t blow ing our socks off.” Then in 2020, when the lockdowns began, “online sales grew dras tically. By May 2021 we were at over 10 per cent of our total sales. Effectively this was about 20 per cent of retail because we are 50/50 retail and back end,” Sharpe said.

Sharpe says his manager, Iggy Lorenzo, did a research project on customers com ing into the store. “Iggy looked at the data and he found that 80 per cent of them have been pre-shopping.” Again, this echoes what Chris Parsons at Home Hardware said about “being there in the customers’ thought process” and that the power of digital marketing is not all about actual online sales.

“When we look back on the pandemic, what most retailers went through, compared

to what we were able to achieve… it was a point of leverage we had that RONA had already been making the investments,” Sharpe said.

TOOLBX

One of the relationships that Lowe’s Canada had already been leveraging before the pan demic—as have independents with other banners—is with TOOLBX, the North American platform that was founded by a trio of entrepreneurs in 2018.

TOOLBX started as an online construc tion materials delivery platform and pro curement tool focused on builders, trades, general contractors, and dealers. It offers very fast search and checkout. Products, sourced from home improvement store partners, are delivered in the company’s variety of vehicles which can handle up to 3,000 lbs of building materials.

The economics of such online delivery services are widely understood. It’s expen sive for trades to lay down their tools and go pick up more materials at the local building supply.

Since the pandemic, TOOLBX has launched a brand new platform to become a full-service digital enablement tech com pany. This new platform, says company co-founder and CEO Erik Bornstein, “can set up a building supply dealer on a single platform that empowers them to sell, deliver and process payments online through their own e-commerce store.”

Bornstein, a former home builder, says that independent dealers should not be intimi dated by recent headlines about Canadian Tire investing billions in e-commerce.

“A dealer moving to e-commerce is embarking on a journey,” he said to HHIQ Whereas the CEO of Canadian Tire talks about a “seamless end-to-end experience,” Bornstein says his firm could be the start ing point for thousands of building supply dealers in Canada who do minimal sales online.

“Phase one is to get the dealers online to process orders. We don’t believe the dealers need to spend billions of dollars to provide a seamless online customer experience. Getting online should not require a dealer to lose themselves in the minutaie of tech. We know that dealers have full-time jobs running their businesses.”

“We integrate our online ordering e-commerce platform into their customer experience experience,” Bornstein says of his firm’s typical “four- to six-week onboarding experience” for an independ ent building supply dealer. “They bring their top SKUs—one hundred to a thou sand is typical.”

“Some may say we are disrupting the building material ecosystem but we dislike the term ‘disrupter.’ We are building a busi ness to collaborate with our partner dealers. When the dealers win, we all win. We are excited to see this industry evolve and gain traction online.”

TOOLBX co-founders Erik Bornstein (CEO) and Chris Stringer (president and CFO). Their online platform is helping dealers in our industry to develop online sales without getting lost in the complexities of technology.

Our ongoing efforts to reimagine NHS are intended to deliver you more value. Whether you’re looking to reconnect with customers, peers and colleagues, discover the latest trends in the home improvement & DIY industry or explore new products and innovations – your experience at NHS will provide you the tools to grow your business NHS is focused on continuing to celebrate innovation, deepening industry connections and growing our global footprint. Pre-Register for NHS 2023 at nhs23.com/Hardlines

BY JOHN CAULFIELD

MAKING DO

How five dealers are meeting supply-chain and inflation challenges head-on

n late April, HHIQ asked Ron Sytsma, who manages procure ment and supplier relations for Convoy Supply, the Surrey, B.C.-based building products distributor, to look into the distance and predict when his custom ers would get relief from the current price inflation and supply-chain disruptions.

Not any time soon.

“The honest answer is [that] there is no immediate solution on supply, and price is

totally last in any product supply discus sion,” he replied by email. Sytsma doesn’t expect much improvement any time soon, either. “For the next 120-180 days, there is no change in my line of sight for the prod ucts we distribute in North America.”

Sytsma declined to comment further about his company’s purchasing strategy under circumstances where allocation and availability remain question marks for many product categories.

Other dealers and distributors willing to broach this subject weren’t exactly wav ing the white flag. But they acknowledged that their actions could only go so far to counteract broader causes of shortages and price hikes, such as production gaps and transportation shortcomings.

The following provides a snapshot of how several dealers have been wrestling with current market conditions to meet their pro customers’ needs.

LVL ALLOCATION OPENS DOORS FOR

ALTERNATIVES

George Begley owns and operates an 8,000-square-foot store on a six-acre lumberyard in Elmvale, Ont., north of Barrie. In a typical year that store supplies materials to contractors for the construc tion of 350 large, high-end houses. In 2021, Begley says his company increased its busi ness by 35 percent through better planning around permitting and project start dates.

This year, though, “is a very different animal,” he says, because of allocation of engineered wood products that, for example, is restricting LVL beam and truss shipments to his store to one truckload per month. This allocation is not likely to ease until the fourth quarter of this year—at the earliest. Consequently, Begley says his pro customers have been more willing to accept substitutes that include “open-web” floor and roof trusses with spans up to 14 feet.

Begley pins supply-chain problems in Canada partly on “the constant shortage in transportation” in terms of drivers, vehi cles, and containers. He doubts the private sector can resolve this dilemma because “it’s always racing to the bottom to do things as

orders, to 90 percent, from 50 percent last year. Despite supply-chain snags, Begley still thinks his store’s business will be up 7 to 10 percent this year. And he’s in the site-plan phase for opening a second store, 50 kilometers from Elmvale.

LOCAL PROS STILL FIRST IN LINE

Have you heard this one before? Last fall, a guy in a semi drove up to Econo Lumber in Prince Albert, Sask., and presented a certified check with which he offered to buy Econo’s entire inventory of engineered

although price inflation remains an issue. “When roofing, drywall, and insulation vendors raise prices, they usually stick,” observes Lemieux.

He’s exaggerating only slightly when he quips that “all I do all day is change prices.” He’s also being cautious about how much he buys after dealers got “stung” last year when lumber prices plummeted. Lemieux thinks some dealers have fallen too comfortably into the inflation cycle “and are standing in line to raise prices.” Econo isn’t opposed to passing vendors’ price hikes along to customers, but as a last resort when those increases go haywire as has been the case for OSB.

cheaply as possible.” What he’d like to see is the government stepping in on a national level and treating truck driving as a trade, with commitments to recruiting, training, and apprenticeship programs.

Meanwhile, Begley—whose store was in the process of switching to BMR’s Pro banner—says he’ll continue to emphasize building materials that are more readily available, like roofing, drywall, and insu lation. He’s also seen a dramatic improve ment in the fill rate for his store’s hardware

wood products (estimated value: $750,000, says owner and manager Curtis Lemieux).

The customer said he could send three additional semis to the yard the next day to transport the inventory to Quebec.

Lemieux turned down the offer. Econo’s LVL supplier, TJI, has its product on alloca tion, and Econo Lumber continues to priori tize its local contractors’ needs “because if you don’t have joists, you can’t start a house.”

Econo generally isn’t having trouble meet ing demand for other building products,

Econo is a TIMBER MART dealer, and that relationship provides some cachet with longstanding vendors. But order fulfillment can be a hassle, especially for harder-to-get items like paint, caulking, spray foams, and hand tools. “I’m in vendors’ faces, because the squeaky wheel gets the order,” says Lemieux. Dealers need to make noise, he explains, because vendors are “over whelmed” with purchase orders they can’t fill, and often don’t have good methods for tracking back orders. If Lemieux hadn’t

Ontario LBM dealer George Begley pins supplychain problems in Canada partly on the constant shortage of drivers, vehicles, and containers

Many dealers in Canada are still on allocation for LBM products, especially engineered wood, owing to supply chain problems caused by the pandemic.

PRO

badgered some vendors, he never would have known they weren’t filling back orders unless dealers reordered.

Shortages have led Econo Lumber to offer alternate products and brands. Customers don’t like substitutes, Lemieux admits, “but are okay as long as it’s an equal product.”

For example, Econo carries two paint lines, and the one that’s been shipping more regu larly lately is promoted.

MORE WAREHOUSING IS BECOMING A NECESSITY

Mission, B.C.-based Fraser Valley Building Supplies, which operates two hardware stores and four pro-oriented yards, offers 50,000 SKUs. Prices have been rising faster and more constantly (monthly, for some hard lines) than this dealer can make changes. “On every P.O., our margins erode,” states Ray Cyr, Fraser Valley’s president and CEO, whom HHIQ interviewed with Peter Gilson, the company’s director of supply chain.

Fraser Valley is focused on maintaining what Cyr calls “delivered margins.” That means paying closer attention to controlling

supply-chain team around what parameters of vendor increases are acceptable before prices need to be raised at retail.

So far, Fraser Valley has been able to pass along price increases to customers, even as Gilson admits this requires “a delicate balance” that doesn’t cause customers to shop elsewhere.

This strategy is complicated by the fact that Fraser Valley, as a hedge against prod uct shortages and longer lead times, has been ordering more product more often.

With just-in-time delivery sputtering, Gilson advocates for a shift in how the sup ply chain functions, with a greater emphasis on warehousing and storage. That position isn’t surprising coming from a RONAaffiliated dealer with wide-ranging distri bution support. But Gilson contends that more industry-wide warehousing would eventually relieve the pressure on manu facturers to ramp up every time demand spurts.

CONVEYING INFO TO CUSTOMERS SOONER

In March, housing starts in Ontario, at 6,214 units, were off 28 percent from the same month in 2021, according to the Canadian Mortgage and Housing Corporation. The province’s seasonally adjusted annual rate that month was down 16 percent to 83,602 units.

“soft” expenses like rent (leases on three of the company’s properties are up for renewal next year, and Cyr estimates that Fraser Valley might need to increase its margins by three-quarters of a percentage point to cover the extra cost). The company has also created a set of rules for its 25-person

Gilson and Cyr say that, on a dollar basis, the company is carrying 15-20 percent more inventory than during “normal” times. While it’s purchasing lumber as needed for shorter time periods, mostly from local suppliers, its stores are carrying three times as much hardlines inventory.

These numbers didn’t surprise Jon Wagner, president of Turkstra Lumber, whose 11 locations in Ontario serve 4,300 active pro customers and get 75 percent of their sales from pros. Wagner posits that it was inevitable that supply-chain delays would temper what had been booming

The light at the end of this tunnel is a slowdown in the building market to more reasonable levels of demand.

“ ”

Turkstra Lumber’s president Jon Wagner told HHIQ that it’s inevitable that supplychain delays would temper what had been booming residential construction.

residential construction and remodeling. “The light at the end of this tunnel is a slowdown in the building market to more reasonable levels of demand.”

Current housing start levels, however, still exceed historical averages, which means Turkstra Lumber must deal with shortages in lumber, LVL, and certain other build ing products. That means doing a better job at forecasting, says Wagner, especially about products on allocation. “We are more focused on the details of our business then we ever have been.”

As an ILDC member, Turkstra “is in a little bit better shape on allocation” than some other dealers, says Wagner. But Turkstra has also changed its pricing model so it can communicate changes to customers on a biweekly basis, followed up by monthly phone calls to its biggest contractors to update them on prices and supply. Internally, Turkstra is churning out more key reports about demand, which it corroborates by having its sales team visit customers’ jobsites to confirm permitting and starts.

Three of Turkstra’s larger yards, includ ing its Stoney Creek, Ont., location that

has a rail spur, serve as central distribution points for wood commodities. One of its larger yards also doubles as a distribution nexus for hardlines, whose fill rates, says Wagner, continue to be “sporadic,” espe cially on “A” items whose lead times can run as long as 12 weeks.

DECODING MESSAGES FROM THE FIELD

On Vancouver Island, Slegg Building Materials is celebrating its 75th anniver sary this year. Its 12 locations serve between 7,000 and 8,000 active pro customers who

To ensure consistent distribution, Slegg— which receives all the products it sells by ferry or barge—operates, with Marpole Transport, a reload center for wood com modities that account for two-fifths of Slegg’s revenue. The retailer has increased its on-the-ground inventory to more than $51-million, from a pre-pandemic level of $35-million. (Urquhart says that Slegg’s yards are large enough to add to their cap acity.) Slegg has consolidated its vendor base, and has sought out new suppliers. And, in emergencies, the retailer’s 38 con tract salespeople have been known to fill orders by purchasing products from com petitors, including big boxes.

Slegg’s parent company is Gypsum Management & Supply (GMS), with 250 locations in North America. That affilia tion, says Urquhart, has made life some what easier for purchasing drywall, insu lation, steel, ceilings, and even hardlines through GMS’s Tool Source Warehouse. But the availability of other products— LVL, I-joists, PVC plumbing, paint and stain—is still “tight.” So Slegg’s purchasing decisions rely more than ever on recon naissance from its field staff.

account for 85 percent of its annual sales. So this retailer, says its president Tim Urquhart, feels an obligation to be in stock on building products those pros require to keep working. “Our contractors depend on us to be part of their solution,” he says.

Urquhart is confident that Slegg has “a pretty good handle” on inventory needs for the jobs on its books. But he’s also wary that pros reflexively tend to build a sense of urgency into their forecasting because “they don’t want to get caught shorthanded.”

Slegg Building Materials president Tim Urquhart says his company’s affiliation with Gypsum Management & Supply has partly eased his supply chain challenges.

Slegg Building Materials has increased its on-the-ground inventory substantially from its pre-pandemic levels.

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ADVERTISERS: THIRD QUARTER / 2022

ACE Canada 55 www.ace-canada.ca

Auto-Stak 69 www.autostak.com

BMF 53 www.bmfonline.com

BMR Group 75 www.bmr.ca/becomeadealer

Diablo Tools 8 www.diablotools.com

GSW 71 www.gsw-wh.com

Hardlines 25, 38, 39, 73 www.hardlines.ca

Home Hardware Stores 6 www.home-owner.ca

JELD-WEN 29 www.jeld-wen.ca

JR Tech Solutions 4 www.jrtechsolutions.com

Kerridge 34 www.kerridgecsna.com

Kidde Canada 57 www.kiddecanada.com

King Marketing 5 www.kingmkt.com

Kohltech 15 www.kohltech.com

Leviton 35 www.leviton.com

Lonza Wood Protection 33 www.arxadawoodprotection.com MIBRO 31 www.mibro.com

National Hardware Show 65 www.nationalhardwareshow.com

NHPA Canada 23 www.YourNHPA.org/marketplace

Orgill 2,3 www.orgill.com

Owens Corning 13 www.owenscorning.ca/PinkNextGen

Regal Ideas 63 www.regalideas.com RONA 41 www.rona.ca/becomeRONA

Sexton Group 17 www.sextongroup.com

Taiga Building Products 51, 76 www.taigabuilding.com

TOOLBX 19 www.toolbx.com TORBSA 45 www.torbsa.com Vicwest 43 www.vicwest.com/dealers

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.

Marianne Thompson

An in-depth discussion with Home Hardware’s Chief Merchandising Officer covering relevant topics such as supply chain roadblocks, inflation and the road ahead for Home Hardware post-pandemic.

Jim Inglis

We talk to the former pioneering Home Depot executive who looks back on the early years of the company and the skepticism it was met with in the industry. He also delves into Home Depot’s entry into Canada through the acquisition of Aikenhead’s.

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:

BY GEOFF M c LARNEY

ENTREPRENEURSHIP STARTS SMALL

When a local organization reached out to Grande Prairie Home Hardware Building Centre to pur chase supplies for a youth project, dealerowner Kevin Gillman did them one better.

“Community Futures of Grande Prairie approached us and said they were trying to get kids to be young entrepreneurs by learn ing to run their own business by operating a lemonade stand.”

The “Lemonade Day” event has taken place in Northern Alberta since 2018. Participating kids are given an entrepre neurial workbook and keep all the profits they earn from operating their stands.

The local organizers of the event pitched their budget to Gillman for the construction of the youngsters’ lemonade stands. “We just said, we’re going to donate,” Gillman said. “We don’t want any money from you guys; it’s a good project and we want to help.’”

While the store only had the opportunity to participate in the program once before the pandemic hit, Gillman says he’s willing to do it again if it’s offered in future years. It’s just one way the store has proven it’s there for the community it serves.

“We help all kinds of people that need help,” says Gillman. The store has supported the local minor soccer league since 2014, including holding an annual barbecue.

“We like to support the community because the community supports us.”

of the hotels. We usually have about 150 contractors show up.

“We serve a hot breakfast and everybody gets a ticket when they come in and every one gets a prize. They can win anything

October or November and ask when the event is.”

One of the highlights of the year at the building centre is an annual breakfast for its pro customers. “We do that every December. We rent a big room from one

from a $50 tape measure to a $500 pair of Oiler tickets.”

Gillman adds the breakfast is so popular that “often we’ll have contractors come in

The loyalty of that professional customer base, along with that of Grande Prairie’s staff, has helped the store weather the pan demic, even as projects dropped off in its early days when contractors were reluctant to enter homes. “We have a very solid base of core staff: one employee has been here for 50 years,” Gillman said. “In our con tractor base, we have builders who have been here 20 years or longer. We support all the builders and they support us. It’s a win-win.”

Grande Prairie Home Hardware Building Centre cares deeply about its community. Which is why the store jumped at the opportunity to help with “Lemonade Day”

“

” We don’t want any money from you guys. It’s a good project and we want to help.

Some of the lemonade stands constructed for Lemonade Day, which teaches youngsters about business.