HHIQ Q3 2025

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LEADING WITH PURPOSE

Home Hardware Stores Ltd.

CEO Ian White is laying the groundwork for growth

Our annual look at estimated retail sales, store counts, market shares and strategies

PRO CORNER

Truss manufacturers are encountering a changing of the guard, as a generation retires

BUT FORWAR W

UT FORWARD E’RE NOT OING ANYWHERE...

ndust

Find out why thousands of retailers trust Orgill as their partner of c c isiting Orgill. a/opportunity.

r l h er ing the industr for more han 7 s but what’s more important han o long the compan been around s e i is going. For the past three e s, O ill has been the fastest-gro ing distributor in the industry and today, the p continues to invest enhancing its r , p grams and services to continue his l a o growth.

ore im has u ast th e faste i d tod st in e g vices n etaile ice b

CarbonLow™

Easi-Lite® | Type X | M2Tech® | GlasRoc®

Coming in 2025 from North America’s First Zero Carbon** Drywall Production Facility in Montreal

*Up to 60% less embodied carbon as per LCA action plan.

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HOME IMPROVEMENT QUARTERLY

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have a couple of sales reps when you can have a sales army!

NEWSROUNDUP

Affiliate dealers are buying up RONA corporate stores

BMR targets pros with spring marketing campaign

RONA establishes store manager leadership training

UFA’s new CEO shares his take on tariffs and the demise of Peavey Mart Home Hardware

CANADA’S TOP 20 HOME IMPROVEMENT RETAILERS

LEADING WITH PURPOSE

EDITOR’S

” I knew that this was a place where I could grow.

100% Canadian.

100% Dealer-owned and operated.

When you join the Home Hardware family, you become part of a tight-knit community that’s free from the pressures of external shareholders. Gain access to a trusted brand with personalized resources dedicated to helping your unique business thrive, plus a coastto-coast Dealer network ready to back you every step of the way.

WELCOME TO OUR ANNUAL INDUSTRY TOP 20 ISSUE!

Canada’s home improvement industry continued its post-pandemic slowdown in 2024, shrinking by 2.3 percent. When adjusted for inflation (CPI at 2.4 percent), the real decline was 4.7 percent. This cooling was expected after a pandemic-driven surge that saw the sector grow a staggering 34.4 percent from 2020 to 2022.

The downturn began in 2023, fueled by high inflation (3.9 percent) and sharp interest rate hikes from the Bank of Canada.

Homeowners faced rising mortgage costs, leaving little room for renovation spending. Although inflation eased in 2024 and rates were lowered, recovery remained sluggish.

Ontario was particularly affected, with fewer homes being built and lower demand at lumberyards. Then came the latest blow: in April 2025, the U.S. imposed tariffs on Canadian exports, prompting retaliatory tariffs from Canada on American building products.

The full impact of this trade dispute on the already struggling sector will be revealed in the Top 20 report when we analyze the 2025 numbers a year from now. Our Top 20 feature is on page 42. Our feature story is Ian White, the new

CEO of Home Hardware Stores Ltd. He took on the role in late 2024, bringing decades of experience and a commitment to strengthening the dealer-driven model.

The U.S.-Canada trade war has severely impacted Canadian paint manufacturers like Cloverdale Paint. On page 70, president and COO Darrin Noble highlights that tariffs on raw materials—especially steel packaging—place Canadian firms at a competitive disadvantage, while U.S. producers remain largely unaffected.

Noble criticizes both countries’ use of tariffs as political tools, not practical solutions, and calls for a more nuanced, collaborative approach.

He also warns that added regulations, such as Canada’s anti-forced-labour law, burden industries with little relevance to the issue. Though “Buy Canadian” sentiment is growing, Noble stresses that integrated supply chains and realistic policymaking are essential for sustainable industry growth.

The Big Kahuna (as the team affectionately calls the Hardlines Retail Report) is where all of the Top 20 and its data is housed—and available for purchase by visiting hardlines.ca. rebecca@hardlines.ca

The Big Kahuna (as the team affectionately calls the Hardlines Retail Report) is where all of the Top 20 and its data in this issue is housed. “ ”

NEWSROUNDUP

OF THE HOME IMPROVEMENT INDUSTRY

AFFILIATE DEALERS ARE BUYING UP RONA CORPORATE STORES

aul Sharpe worked on RONA’s corporate side for many years before making the leap to the dealer side. In 2018 he acquired the RONA Dawson Building Centres store in Guelph, Ont. Now he has acquired the previously corporate-owned RONA Oakville Speers Road store in nearby Oakville.

He rst made the transition from working in RONA’s corporate o ce to acquiring the Guelph location a er previous owner Wayne Filsinger reached out upon deciding to retire. “He described what being a dealer was like, and I’ve always had an entrepreneurial spirit,” Sharpe says.

RONA’s network operates some 425 corporate and a liated dealer stores under the RONA+ and RONA banners. Approximately half of the store network is dealer-owned, and corporate-owned locations will continue to be made available to dealers on a “case-bycase basis… If there’s a t and it’s a win-win for all stakeholders, then we may consider it,” said the RONA communications department in an email statement.

Dealer-owned stores are mainly proximity stores—with or without a lumberyard. In the past two years, six corporate stores in the network have been handed over to dealers. During the same time, more than two dozen new a liated stores have joined the network.

“Every situation is unique, and we always evaluate our options to come to the best decision for all stakeholders in these kinds of situations. When we agree to partner with a dealer to operate a store, it is because we strongly believe it will bene t

from the regional expertise of the dealer. We also want to support our dealers in growing their network, to the extent possible,” the statement added.

Andrew Doidge, president of Doidge Building Centres Ltd., acquired two corporate-owned stores a few years ago: RONA Southampton in 2021, and RONA Port Perry in 2022, both in Ontario.

“From my experience, RONA has strategically chosen to o er certain locations for dealer acquisition when those stores no longer align with their broader corporate goals—typically in markets that are better served by local ownership,” he says.

“RONA’s corporate model tends to focus on larger urban areas, while independent dealers are o en better equipped to serve smaller or more specialized markets. In our case, we acquired corporate stores that were near our existing locations and situated in smaller markets. ese acquisitions made sense for both parties: RONA could maintain brand presence without direct operational responsibility, and we could expand into areas where we already had infrastructure and market knowledge. It was a mutually bene cial opportunity.”

Ray Cyr, president and CEO of RONA Fraser Valley Building Supplies Inc., a six-outlet operation in B.C., is also familiar with tak-

ing over ownership of corporate stores. He says o en the reason for a corporate store to transition into the hands of a dealer is to expand an existing dealer’s network because they’ll operate better under the dealer platform. “We’re open to and very receptive to di erent opportunities as they arise as the corporate side decides which stores they’d like to divest. So, we’re always in the market from an acquisition standpoint,” he says.

Being able to acquire a corporate-owned store, says Sharpe in Guelph, was something of a fresh opportunity for both sides. “I would like to prove that owner-operators have a certain commitment to their business and their community. I don’t think you can achieve that on the corporate side, like you can on this side.”

Paul Sharpe has acquired the previously corporateowned RONA Oakville Speers Road store in Oakville, Ont.

BMR TARGETS PROS WITH SPRING MARKETING CAMPAIGN

BMR Group has adopted new marketing, touting its stores as the destination for pros. Working with creative agency lg2, the wholesaler and buying group took its messaging to various media in Quebec, Ontario, and the Maritimes, including TV, radio, billboards, and digital media.

The campaign includes a 15-second multi-platform marketing spot, plus billboards and social media posts, all featuring taglines that target the contractor customer: “Pour les vrais” (“For the real ones”), “Built for pros,” “The experts’ centre,” and “Less dryers, more drywall.”

“At its core, BMR is defined by exceptional customer service, a team of dedicated experts, a high-quality inventory, and a well-established network,” CEO Alexandre Lefebvre said in a release. “This new image reinforces our industry-recognized commitment to quality, while staying true to the core values that have made us successful.”

Sollio Cooperative Group, the parent of BMR Group, experienced a sales drop in its latest fiscal year, but falling grain prices contributed to the decline. BMR,

however, showed “a cautious recovery,” with overall sales by its dealers remaining stable year over year, despite all-time low housing starts in Quebec early in the year.

“We wanted to realign our focus on experts to evolve BMR’s brand positioning and image, to become the expert’s centre for professionals,” Marlène Hins, BMR’s VP of marketing and communications, told Hardlines. The marketing campaign, she explained, is “based on three key pillars: local, expertise, and products— the right product and quality.”

BMR, she adds, is “already a destination for the contractor clientele but we wanted to put the focus of our campaign on this very business segment, which is one of the pillars of our growth strategy.” And, the company is also keeping a focus on a more skilled retail customer, “DIYers who aspire to be considered pro,” says Hins.

The new campaign encompasses all BMR brands. “Our brand positioning and marketing campaign include all our banners—BMR, BMR Express, BMR Pro, and Potvin & Bouchard—from smaller stores to larger locations, because they all serve, to a certain extent, the pro clientele.”

BRIEFLY

CANAC UNVEILS COMMEMORATIVE POTATO CHIPS

Quebec home improvement retailer Canac partnered with discount grocer Maxi and Yum Yum Chips to create a commemorative line of potato chips in honour of the retailer’s 150th anniversary. The snack’s flavour is humorously named “Plain Gypsum with Pool Salt.”

CASTLE EXPANDS COMMERCIAL SIDE WITH LATEST MEMBER

The Beauchesne group of companies, a major commercial dealer presence in Quebec, has joined Castle Building Centres Group, as part of the group’s commercial division. Founded in 1964, Beauchesne now has three locations in the Montreal area, as well as two outlets in Quebec City under its sister company, Distribution Ste-Foy.

RONA ADDS PRIVATE LABELS

RONA inc. launched a new private label, Laflamme & Co, featuring a wide selection of outdoor cooking products. The private label will be sold exclusively at RONA+ and RONA stores as well as online. It joins another proprietary brand, VALU+, which includes offers paint, décor products, tools, and consumables.

NEW MEMBER FOR AD CANADA

AD Canada – Building Supplies has a new member, Clarington Building Supplies in Ontario’s Durham region. The business is a specialty gypsum dealer serving the eastern region of the Greater Toronto Area. Its offerings include drywall, plaster, joint compounds, and ceiling materials.

I RONA ESTABLISHES STORE MANAGER LEADERSHIP TRAINING

n an effort to foster the development of employees and provide them with the tools they need to grow, RONA has launched a Leadership Experience program for store managers, created by the company’s Training Team.

Over two and a half days, RONA’s Leadership Experience program offers a learning journey for managers to develop management skills, explore different aspects of leadership, share their experiences, and gain access to practical tools they can use every day.

The program addresses key personal, team, and corporate skills that every manager should develop to ensure their successful development as well as that of their team. “We have decided to offer this program to our store managers in priority, as they are the ones with the highest and most direct impact on our store associates

and customers. The aim is then for all managers within the organization to benefit from this program to establish a common leadership culture,” said Kim Forgues, chief human resources officer at RONA inc.

The first manager cohorts to participate were from Ontario, Quebec, and Western Canada. Five groups—two pilots and three cohorts—have already benefited from this training adapted to their reality, and other cohorts will soon have the chance to take this course.

RONA has launched a Leadership Experience program for store managers to develop management skills, explore different aspects of leadership, share their experiences, and gain access to practical tools they can use every day.

BRIEFLY

BMR ADDS NEW IT EXEC

At BMR Group, Martin-Charles Pilon has been appointed vice-president of information technology. He was most recently VP of IT at The Master Group, an HVAC distributor in the Montreal area. Pilon reports to Antonio Di Pasquale, BMR’s chief executive of operations.

PRINCESS AUTO ONTARIO EXPANSION

A new Princess Auto store opened in the Southern Ontario city of Burlington on June 3. This will be the retail chain’s 21st location in Ontario.

HOME HARDWARE STRENGTHENS BLUE JAYS SPONSORSHIP

Home Hardware Stores Ltd. has strengthened its long-standing partnership with the Toronto Blue Jays baseball team by signing on as title sponsor of the 2025 Blue Jays Central Studio. Now branded as Home Hardware Studio, it will serve as the hub for Blue Jays coverage.

QUEBEC INDUSTRY GALA DRAWS RECORD CROWD

A cross-section of Quebec’s retail home improvement industry gathered in April for an awards gala that honoured retailers, suppliers, and individuals alike. The 12th annual Gala Reconnaissance drew some 440 people to a black-tie event at the Fairmont Château Frontenac in Quebec City. The gala was mounted by the Quebec industry association AQMAT, and included the presentation of awards to everyone from owners and managers of top-performing stores and select suppliers to sales reps and industry veterans.

UFA’S NEW CEO SHARES HIS TAKE ON TARIFFS AND THE DEMISE OF PEAVEY MART

Fred un, the new president and CEO of United Farmers of Alberta Co-operative Ltd. (UFA), has a lot to say about tari s—and about Canada’s current retail landscape.

un replaces Scott Bolton, who retired in December 2024. UFA is one of Canada’s largest co-operatives and is a memberowned organization approximately 120,000 strong. It has over 100 petroleum outlets in B.C., Alberta, and Saskatchewan and 36 retail Farm & Ranch Supply stores in Alberta. He’s been with UFA since 2020 but took on the role of CEO on Jan. 1 of this year. At the time, UFA combined its Petroleum, Agribusiness, and Supply Chain business units. It also named Don Smith as the new COO, with all those business units now under Smith’s purview. at includes the retail stores under the Farm & Ranch Supply banner. is division was previously headed by Glenn Bingley, who has retired.

UFA recently opened a petroleum cardlock site in Regina’s Global Transportation Hub. “ at’s an exciting part of our expansion into Saskatchewan,” he says. e bigger picture, however, remains worrisome.

“When you look at the retail landscape in Canada, I don’t think anyone would say that it’s experiencing profound growth. In fact, if you look at some of the major names in Canadian retail, you can see that there were a couple of challenging years. I don’t expect 2025 to be di erent.”

un o ers Peavey Mart’s demise as an example. “Peavey was a competitor of ours. And the closure of Peavey stores, it does a couple of things. One is that someone has to step in and ll the void, and hopefully UFA can be part of lling that void. Every time a business closes in a rural community, it’s a loss of jobs; it’s a loss of spirit. So, when I look at UFA, it means that we need to have a disciplined, relevant o er.”

HOME HARDWARE PARTNERSHIP WILL STRENGTHEN COMMERCIAL SIDE

Home Hardware has partnered with Canoe Procurement Group of Canada, a non-profit public sector buying group. Participating Home dealers now have access to Canoe’s 6,000 public service partners across Canada, thanks to a new building supplies program introduced this spring by the group. The partnership will create new opportunities to work with public sector entities in their own communities.

Home Hardware has been targeting commercial customers recently. It launched a commercial program at its fall market a

decade ago that provides services and products to help dealers to develop business with local institutions and government agencies.

Allison Kilby, dealer-owner of Pioneer Home Hardware Building Centre in Campbell River, B.C., was part of Canoe’s pilot program. “We can satisfy RFPs out for jobs and specific lot purchases or contracts,” she says. “Then we can satisfy the everyday maintenance needs of the Canoe client by making it quick and easy to drop by and pick up what they need on the daily.”

BRIEFLY

HOME HARDWARE DEALER IN NEWFOUNDLAND ADDS STORE

A store in the Kelligrews neighbourhood of Conception Bay South, N.L., has switched to the Home Hardware banner. Christine Hand (former chair of the board of Home Hardware Stores Ltd.) and Thomas Hand, owners of Handyman Home Hardware in Conception Bay South, have acquired the nearby building materials location. It will now operate as Kelligrews Home Hardware Building Centre.

RONA NAMED ONE OF CANADA’S GREENEST

RONA inc. has been named one of Canada’s Greenest Employers—for the fi fth year in a row. The national competition evaluates companies that distinguish themselves through their outstanding sustainable development initiatives and environmental awareness efforts. RONA stood out for optimizing its delivery operations to make better use of truck space and reduce fuel consumption, which has improved delivery effi ciency and cut greenhouse gas emissions.

WATSON GROWS NETWORK IN ONTARIO

Watson Building Supplies, a distributor of construction materials, and Blair Building Materials, a diversified material supplier, have announced the opening of a location in Owen Sound, Ont. The new outlet will feature a wide assortment of products including drywall, insulation, roofing, ceiling systems, and related accessories.

Fred Thun

BIG BOXES KEEP ON TARGETING CONTRACTORS

ince the invention of the home improvement big box in 1979 in Atlanta, we have had almost 50 years of the format. The first home improvement big box arrived in Canada in 1992.

But for decades, real professional contractors were widely reputed to find the format a waste of time.

But as Mark Twain wrote: “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”

Yes, big boxes are looking at pros as their next big thing. And attitudes have changed among many contractors. They are starting to like the larger formats.

Home Depot, the world’s largest home improvement retailer, does approximately half of its US$160 billion revenue with professional tradesmen. Last year, Home Depot bought SRS Distribution, a distributor to pros, for a staggering $18.25 billion. Now they are reportedly vying to purchase GMS Inc., one of the largest GSDs in the world.

Last summer, Home Depot opened its first Flatbed Distribution Centre (FDC) in Toronto. It serves contractor jobsites direct.

Home Depot Canada’s first Flatbed Distribution Centre to ship contractors direct opened last year near Toronto Pearson Airport.

Contractors who shop at 54 Home Depot stores in the Greater Toronto Area.

Now RONA, the second-largest big box operator in Canada, has hired Jamal Hamad, the former head of contractor business at Home Depot. Hamad has spearheaded the opening of RONA’s own version of the FDC, called the Direct Delivery Centre, in Hamilton, Ont.

We reached out to a well-known plumber, Danielle Browne, who plies her

trade in St. John’s, Newfoundland. We asked Danielle whether attitudes have changed among contractors about big boxes. Yes, she said.

“I think I saw it coming about five years ago. I think they’re going to be successful, too. A lot of my friends are shifting over in the States. And they’re also shifting over to straight online. It’s about the bottom dollar. I think in the larger areas of North America, you’re going to see that take over.”

WHY LOWE’S AND HOME DEPOT KEEP BUYING COMPANIES

The world’s two largest home improvement retailers are both adding stores in 2025, but another significant part of their expansion plans include acquisitions.

Lowe’s Cos. has entered into a definitive agreement to acquire Coppell, Tex.-based Artisan Design Group for US$1.3 billion. ADG provides design, distribution, and installation services for interior surface finishes, including flooring, cabinets, and countertops, to national, regional, and local homebuilders and property managers. In 2024, ADG saw revenues of $1.80 billion.

“The acquisition of ADG allows us to build on our momentum with pro planned spend and is expected to expand our total addressable market by approximately $50 billion,” said Marvin Ellison, Lowe’s chairman, president, and CEO. “With its strong, customer-centric operating model, ADG has become an industry leader with best-in-class customer satisfaction scores from the top builders in the U.S.”

The deal will “expand Lowe’s pro offering into a new distribution channel within a highly fragmented, approximately $50 billion market,” the company said in a release.

The Lowe’s purchase comes just under a year after Home Depot made a similar expansion move. It purchased SRS Distribution in June 2024, in a bid to enhance “the pro capabilities Home Depot is already building” and “help better serve complex project purchases.”

Both companies have been intent on growing their contractor and builder business, especially coming out of Covid. Their efforts to buy up more companies that can help serve the pro customer has been driving this move to increased vertical integration.

IS CANADA WELCOMING THE RIGHT TYPES OF WORKERS?

This country is known for being a beacon for immigrant talent. According to the Government of Canada, the country planned to admit more than 110,000 skilled immigrants under the Federal High Skilled category in 2024. Though Canada continues to welcome skilled workers in record numbers, many in the building industry are concerned that the country is not letting in workers to help fill their employment needs.

For example, immigrants made up more than half of the core-age workforce in the Toronto region with a bachelor’s degree or above in 2021. Nearly a quarter of these highly skilled immigrants were newcomers, according to a report entitled Embracing

Immigrant Talent: Perspectives and Practices of Toronto Region Employers, conducted by the Toronto Region Immigrant Employment Council.

The report noted that in Ontario newcomers with a bachelor’s degree or above from outside of Canada are especially at risk of overqualification. In 2021, the report stated, 17.8 percent of newcomer men and 20.3 percent of newcomer women with degrees from abroad worked in jobs requiring a high school education or less. Meanwhile, the comparative figures for all Canadian-born workers were 9.7 percent for men and 8.6 percent for women.

Bill Ferreira, executive director of Build Force Canada, told Hardlines that over

the next decade, the industry will need to recruit approximately 380,500 workers to keep pace with demand and replace retiring workers. He said occupations such as trade helpers and general labourers are experiencing especially acute shortages.

CLEANING PRODUCTS MEAN BIG BUSINESS FOR HOME DEPOT CANADA

Small transactions add up to big sales for Home Depot Canada. The value of selling “consumables,” stuff that gets used— and reused—on a regular basis by both homeowners and contractors alike, helps drive add-on sales and increase turns.

And spring-cleaning season is a great time to put the focus these types of products, says Megan Schroeder, divisional product merchant at Home Depot Canada, overseeing cleaning products.

While it may be considered a staid category, Schroeder points out that innovation drives the category as it does with other products.

“It’s the right thing for our consumers,” she says. “They want to clean up their homes at this time of year.” Schroeder calls the category “highly transactional—it brings customers into the store.”

A new study conducted on behalf of Home Depot in the U.S. bears out her observations. The survey revealed that spring is a popular time for starting cleaning projects. Among

those surveyed, the most common tasks are window cleaning, barbecue cleaning, and weeding and clearing out the garden.

This season, Schroeder is most excited about products that are environmentally friendly, such as compostable towels that are reusable and washable, even in the dishwasher. “One roll equals 17 rolls of paper towels,” she says.

Other products, such as microfibre cloths, are also standard in the home cleaning category. These new lines at Home Depot emphasize better quality—resulting in less waste.

But she’s not just targeting DIYers with these products. A comprehensive cleaning and maintenance line is attracting more contractors as well. “We’ve really put a lot of energy into it in the last five years and we’re really looking for more opportunities with pros.”

Megan Schroeder is the divisional product merchant at Home Depot Canada.

Low VOC formulation, high-performance

Adhesion, flexibility and weathering

Guardian is an ultra-premium, 100 percent acrylic exterior finish designed to deliver the highest level of protection. With superior adhesion, flexibility, weathering and self-priming capability, this coating delivers a barrier that will repel dirt and debris, reduce mildew growth, extending the life of the coating. Fortified with X-Link Technology, it has exceptional early water resistance and low temperature capability which will allow you to extend your painting season knowing this coating will withstand the negative impacts of early moisture exposure and cool overnight curing conditions. This product has excellent hide, fl ow and leveling properties making it an ideal choice for both DIY and professional applicators. cloverdale.com

Guardian Plus Anti-Scuff revolutionizes paint performance. A 100% Acrylic Interior Latex that offers best in class performance with exceptional stain resistance, scrub, marr, burnish and scuff resistance for a long-lasting robust finish. Formulated with Low VOC content, it’s ideal for schools, hospitals, institutions, hospitality, commercial, and residential projects where a lowodor, extremely durable finish is required. This product line exceeds MPI High Performance categories and is compliant with Canadian ECCC regulations. cloverdale.com

Quick-dry, waterproof seal

Dap’s new AMP Series (Advanced Modified Polymer) offers hybrid sealants formulated to outperform silicone and provide maximum performance for every project. Offering a waterproof seal on various surfaces, with 30 minutes of drying time, Dap’s AMP Series is mold and mildew resistant and available in a variety of interior and exterior uses. dap.ca

UV blocking, temperature reduction

Cabot premium exterior wood care brand has introduced Cabot Heat-Reducing Solid Stain + Sealer with Cool Feel Technology.

New Cabot Heat-Reducing Solid Stain + Sealer blocks UV rays and reflects the sun’s rays and can reduce surface temperatures by 20 degrees Fahrenheit when compared to other solid color stains. The amount of temperature reduction may differ due to color choice, ambient temperature, time of day, and the amount of direct sunlight on the surface. The innovative formula covers old stains and mismatched boards with long-lasting waterproofing, exceptional washability with advanced UV protection from sun damage and fading.

sherwin.com

Interior paint and primers offering on-trend colours

Valspar Paint Series gives Canadian dealers the chance to offer a national brand without having to compete directly corporate stores or Big Box. With on-trend shades, classic colours or something in between, Valspar offers high-quality interior paints and primers to deliver beautiful results.

Valspar has an extensive array of interior paint and primer products to fi t your project needs. valspar.com

Turbo Spray System tackles large projects quickly

Rust-Oleum pairs the trusted performance of its paint and primers with the innovative Turbo Spray System to unleash 3 times more paint per second than traditional spray paint. Now you can tackle your largest projects faster and easier than ever. This spray paint offers superior rust inhibition and is specially formulated to penetrate rust and bind to metal. rustoleum.com

Same Partner, New Look.

120 years of innovation—and going strong!

BP Canada, a leading manufacturer of building materials, is celebrating its 120th anniversary. To mark this milestone, the Canadian company is inviting members of the community to revisit its rich history of innovation. Over the years, BP Canada has become a trusted name in the industry, known not only for its high-quality products but also for being a reliable partner to professionals across the construction sector.

1905

The BP Canada story began in Pont-Rouge, Quebec, where Bird and Son built what would later become a fibreboard plant. Rooted in Canadian expertise, BP Canada quickly established itself as an innovative company.

1951

Building Products of Canada brought its roofing and paper making capabilities to Western Canada with the construction of a mill in Edmonton.

1925

The company was officially incorporated as Building Products of Canada Limited with the merger of Bird and Son, founded in 1795, and Ruberoid Company, which had started up in Lasalle, Quebec, in 1906.

1964

A glimpse into the company’s Montreal head office. BP Canada headquarters and production activities have always been located right here, in Canada, making it a true “homegrown company.”

1990

Beginning in the 1990s, the pace of innovation at BP Canada accelerated. This decade and the next saw the introduction of several innovative wood fibre and insulation products.

2023

Since September 2023, BP Canada has been part of Saint-Gobain, alongside renowned brands like CertainTeed, Kaycan, and Bailey Metal Products. This partnership enables the company to benefit from the expertise of a global network comprising over 161,000 employees across 80 countries.

2011

BP set a new industry standard with the introduction of oversize 42" shingles.

2025

To mark its 120th anniversary, BP Canada has unveiled a refreshed brand image. Modern and bold, it pays homage to the company’s past while resolutely looking toward the future. This moment also marked the company’s official transition to the name BP Canada, a moniker it had already been using informally.

We have a brand Canadians trust and respect. Now we have to keep earning that trust—every day. “ ”

LEADING WITH PURPOSE

Home Hardware Stores Ltd. CEO Ian White is laying the groundwork for growth—balancing legacy with innovation in a rapidly evolving retail landscape.

“I

’ve got my own version of Monopoly,” says Ian White, the newly appointed president and CEO of Home Hardware Stores Ltd., a role he assumed in November 2024. He’s proving he knows how to play a strategic game.

Instead of collecting gameboard properties he’s been touring the national network of stores—building relationships, understanding operations, and investing in what makes the business thrive. “And, that’s actually touring outside of this office and spending time in our stores. I’ve been coast to coast.”

Home Hardware released its own version of Monopoly for its 60th anniversary.

The business isn’t done at head office. We support the business here—where it’s done is on the ground. “ ”

It’s those places where he’s landed along the way that fill in the gaps to structuring and understanding how things work—the stores, the warehouses, the trucks. “That’s where the business is done. It’s actually not done here. We support the business here,” he says of Home Hardware’s corporate office in St. Jacobs, Ont. “We help leverage our

scale. So my version of Monopoly is actually playing the board in real time, spending time inside of this office with our teams, making sure we’re here to support them.”

After seeing operations across the country, White says that what was very telling was how everyone’s working towards the same outcome. It’s “ultimately to serve a

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dealer who serves a customer and ensuring that from our teams in the office, the teams on the road, the connection they have to stores is like nothing I’ve seen before in retail. It’s a personal relationship, and it’s one where people have a great amount of pride, remarkable pride.”

White also acknowledges the 60 years of pride and success that he is now a part of, and the role of a leader to understand the how and why of Home Hardware’s success. “A big part of learning and coming up to speed on a business, on a culture, on a brand, is to look in the rear view mirror a little bit to understand what got you there.

I spent time with people who have 10 to 50 years of experience in this business to make sure I understand what got us to where we are. That’s helped me then look through the windshield now and start to think about what’s next.”

A ROLE FOR RETAIL

White brings previous highly relevant experience from his tenure at Canadian Tire, also a dealer-driven business. White

progressed through the ranks over 18 years, with his last role as vice president and general manager of PartSource Automotive.

His most recent role as president of Parkland Canada had a mixed operation comprised of both a dealer and corporate model, he says. What attracted him to Home Hardware was the dealer model itself. “I would say the single biggest thing I’ve learned through my almost 30 years in business, and particularly working in

White in the warehouse at St. Jacobs, Ont. The brand has deep roots in the small town west of Toronto, which has been headquarters of the company since 1964.

independent dealer models, is you have to be a good listener.”

Two-way dialogue is also important, as is mutual respect, and “if you do those things really well and you have the right level of dialogue then you’re providing the support that the dealers require. Dealers are giving you feedback in real time and helping you solve the big issues and vice versa. It tends to be a very good match.”

GROWTH & SUPPORT FOR BUSINESS SECTORS

Looking ahead, and irrespective of the economy, irrespective of the circumstances, White knows there’s a continued need to earn Canadians’ trust. “One of the big benefits we have is a brand that Canadians trust and respect. This going to continue to be a top priority for us,” he says.

White worked with both the dealer-owned model and the corporate model at his last two roles: at Canadian Tire Corp. and at Parkland Corporation, an operator of gas stations and convenience stores.

White acknowledges the distinction of Home Hardware’s two areas of business: DIY and the pro/commercial side. He says going forward Home Hardware is “certainly leaning into the strengths of our retail offer, but treating that customer differently. The way in which they shop our stores, interact with our teams, what they’re looking for is unique and different than that of a pro customer.”

The industry has made it “very clear,” according to White, that everyone agrees the pro business will experience continued growth. “It is one that we are uniquely positioned to serve and to serve well, and one

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that we will continue to spend time and effort on and believe we will be able to grow for the future.”

ACCOMMODATING GROWTH IN PRO BUSINESS

White says it’s up to him and his team to make sure dealers have the next level of tools in their toolbox to deliver the service and the experience that the pro business wants. More specifically, White mentions leveraging scale, and “we have to also recognize there’s a [product] assortment component but there’s also the service component. The way I like to describe a dealer business is, it’s our job here at the office in the support centres

to create a menu of items of which dealers can choose from.”

For the pro business in particular, White says a large component is “is making sure we’ve got digital tools and assortment and pricing and product availability and, sharing best practices across the country and making sure dealers are talking to one another.”

In any business, across any retailer, consistency is key: “one of the single biggest opportunities but also challenges,” says White.

He’s mindful that communities are different, and points of difference around assortment are required. “Everything we’re certainly going to do in my time

at Home Hardware will be customer-focused. When you put the customer first, particularly a DIY and a commercial customer, and you understand their needs evolve and vary, what you sell and then how you sell it to them and the level of service that’s required.”

LEVERAGING LOCATIONS WITH ONLINE PRESENCE

Home Hardware leverages both brick-andmortar shopping (nearly 1,100 stores), and online. “In my mind, scale matters in this business, so we’re fortunate to have great scale and coverage. My experience has been that if you have a brand, you have great coverage, that’s your best marketing

asset.” It’s not the number of yers or ad campaigns, he adds, it’s about a brand being seen in a “positive light, that’s your best marketing opportunity.”

“My belief is that we have an opportunity to evolve the customer experience so we do need to assess and understand the role of digital in our space. I think we’d be naive to contemplate a world that isn’t digitized to some extent in the home improvement business, the role of contractors wanting to be e cient and be able to use an app to either check orders or order, et cetera.”

On the DIY or consumer side, White views Home Hardware store locations “as a showroom for our communities” and a way for customers to do their own comparison

shopping. en, shop at Home Hardware to “close the deal,” especially on items that customers want to view in person rather than buy online.

to other home improvement retailers to department stores, if you look at the breadth and depth of our assortment, there’s a lot of crossover. Our job is to determine how and

“ ”
My belief is that we have an opportunity to evolve the customer experience so we do need to assess and understand the role of digital in our space.

White admits Home Hardware’s digital platform has room for improvement—an area of focus for White. “When it comes to competition, you name it, from Amazon

where we want to compete. We’re not at the state of maturity in our digital platform that I believe we need to be. And we’ll continue to assess and invest accordingly.”

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White says the first thing to do to support succession is to have a viable business and a business model and a return profile that generational families want to continue to invest

in. “We need to have a model and I believe we have it, where people can see a future,” he says. “A big part of my job and our team’s job is to make sure that people do see the

A big part of my job and our team’s job is to make sure that people do see the next 60 years here and see the opportunity to make both a financial investment and a time investment to run the business. “ ”

next 60 years here and see the opportunity to make both a financial investment and a time investment to run the business.”

White has proven he has a penchant for retail and feels extremely comfortable within it—just ask his family. “I spend a lot of time, much to my family’s chagrin, in retail stores and other [outlets], because, I love the business. I love serving customers. I love the dynamic nature of it. I love that it’s changing all the time. I think it behooves me and our leadership team to be out, not just in our stores, but in other stores to see what’s happening there.”

CANADA’S TOP 20

HOME IMPROVEMENT RETAILERS

The slowdown that Canada’s home improvement retailers have experienced since the heady days of the pandemic is not done yet. Hardlines calculates that our industry shrank by 2.3 percent in 2024. Combined with a Consumer Price Index last year of 2.4 percent, the industry was down about 4.7 percent in real terms.

But this plateau (with 2025’s trade war numbers still being recorded) was always going to happen. Just look at what a boom the industry had come through during Covid. The industry grew by 14.8 percent in 2020, 7.9 percent in 2021, and 4.6 percent in 2022—adding up to a whopping 34.4 percent during the pandemic.

The slower years were inevitable. In 2023, we started to face galloping inflation, with the Consumer Price Index (CPI) clocking in at 3.9 percent annually. The Bank of Canada raised interest rates severely that year, to combat inflation. Many mortgage holders, renewing at higher rates, slowed their expenditures.

Last year, inflation settled down, with a CPI of 2.4 percent annually. Bank rates were consequently lowered. But the home improvement industry settled into a funk. Rare were the retailers who posted large gains.

Hardlines calculates that the Canadian industry was down to $57.3 billion in 2024. How do we calculate that? With what we affectionately call “The Big Kahuna.” It’s a massive spreadsheet where we record each dealer’s response to our omnibus survey, plus the head office replies. We feed in StatCan and economic data and housing starts. We break the industry down into each province and territory, and by store format (hardware, building supply, big boxes, and that part of Canadian Tire pertinent to our industry). We estimate revenues for the banner groups that aren’t public companies with Canadian breakouts, based on our daily news reports and regional growth rates. All data is drawn from the 2025-2026 Hardlines Retail Report. Visit hardlines.ca to order your own copy.

1 HOME DEPOT

HQ: Toronto, Ont.

2024 RETAIL SALES: $11.178 billion STORES: 182

Home Depot has not opened a new store in Canada for a decade. However, it has broken ground on a site in Fort McMurray, Alta. at store will open in May of next year. Last year, it opened a combined Flatbed Distribution Centre (FDC) and store support warehouse that measures 600,000 square feet near Toronto’s Pearson Airport.

Home Depot had remained at 182 stores in Canada since the company opened its Vaughan, Ont., store northwest of Toronto on April 30, 2015. e Atlantaheadquartered company opened 12 new stores in the U.S. last year and is pledging to open 13 stores in 2025.

Dealer owner, RONA Edmundston Rénocentre Cormier, Edmundston NB, since 2025

RONA provides all the tools and support I need to help my hardware store stand out in the market. It’s clear today that affiliated dealers are a key driver of growth for the company, and our regional expertise is highly valued. With this new leadership, RONA is the preferred choice.

e Home Depot had a scal year in 2024 (ending on Feb. 2, 2025) that was buoyed by acquisitions—and a 53rd week in the year. It reported total sales of US$159.5 billion, up by $6.8 billion (or 4.5 percent) over 2023. However, comp sales for scal 2024 decreased 1.8 percent. Sales for the year enjoyed a li from the addition of the new U.S. stores, plus Home Depot’s acquisition last June of SRS Distribution. is company, based in McKinney, Texas, is a wholesale rm supplying roofers, landscapers, and pool contractors.

Home Depot paid a whopping $18.25 billion for SRS. For the partial scal year under Home Depot’s ownership, SRS contributed $6.4 billion in sales. Home Depot expects the acquisition to accelerate its growth in the residential contractor market with bulk orders.

Home Depot is reported to get nearly 50 percent of its business from pros, south of the border. e Canadian division is assumed to be less successful with pros than that, but in a Hardlines interview with Michael Rowe, then-president of the Canadian division last year, he said Canada was catching up fast.

Part of this growth in the pro business in Canada is attributable to the opening of the Flatbed Distribution Centre in northwest Toronto, which allows it to ship to contractor jobsites directly. e facility has a large eet of atbed trucks delivering by the next day. e DC has put Home Depot on the radar of Canadian contractors. Or, at least, those pros placing orders at some 50-plus stores in Southern Ontario that are within range of the FDC. e company has opened 17 FDCs across North America. More Canadian FDCs are likely to be built. is spring, Home Depot Canada got a new president, as Rowe moved to Atlanta to be executive vice-president for pro. Taking over for Rowe is Vinod Nalajala. In his 24-year career at Home Depot, he worked his way up through various roles, starting as a sales associate in a store in Vancouver.

When Home Depot opened its Regina location, Nalajala ran it as store manager before becoming regional sales manager, senior manager of sales execution, and district manager. More recently, Nalajala served as vice-president of human resources, central operations, contact centres, asset protection, and building services.

2 HOME HARDWARE STORES

HQ: St. Jacobs, Ont.

2024 RETAIL SALES: $8.643 billion STORES: 1,023

In 2024, Home Hardware saw signi cant changes and growth opportunities as the company entered its 60th year of operation. “ is milestone is a testament to over six decades of dedication and hard work by our dealers and team members across the country,” said then-president and CEO Kevin Macnab. “While celebrating 60 years of rich history, we’re also focused on continued growth to ensure we keep delivering the exceptional customer service we’re known

for in communities across Canada.”

Shortly a er the celebrations began, he announced his retirement, e ective at the end of 2024. Macnab took the helm at Home Hardware in October 2018, bringing the company through the perils of the pandemic and navigating changes in ful llment, sta ng, and organization.

e retirement of Macnab ushered in a new era with the arrival of Ian White, a veteran executive who joined the company from Parkland Canada, where he spent 10 years in a variety of senior executive roles for the global fuel, convenience, and food retailer.

In a tumultuous year for retail with the demise of some Canadian brands and the recent economic pressures of tari s, Home Hardware stepped up to the plate, o ering customers a new vision for doing Canadian business. e company went all-in adapting its store shelves to re ect more Canadian products as a new wave of buy-Canadian patriotism swept the company. Home Hardware is also rumoured to be further

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exploring how it can ll the gap le by farm supplier Peavey Mart following the closure of that company in early 2025.

In addition to reinforcing its role as a made-in-Canada destination for home building supplies and home products, the company partnered with Canoe Procurement Group of Canada, a nonpro t public sector buying group, to expand its public sector presence. Participating Home dealers were able to gain access to Canoe’s 6,000 public service partners across Canada, creating new opportunities to work with public sector entities in their own communities.

Building on its Scene+ loyalty program, Home Hardware launched a credit card for contractors developed in partnership with Scotiabank. e Scotia Home Hardware Pro Visa Business Card was designed to support entrepreneurs in the trades and construction industry to better manage and expand their businesses.

e company continued to expand in 2024, increasing the number of points of sale, particularly in the eastern Ontario region and East Coast region of Canada, with stores opening in Quebec, Nova Scotia, and Newfoundland.

3 RONA INC.

HQ: Boucherville, Que.

2024 RETAIL SALES: $8.166 billion

STORES: 425

RONA inc. made signi cant strides in 2024. It has not publicly released consolidated nancial results since the Lowe’s Canada divestiture, so revenue and pro t details are not disclosed. However, management has emphasized investments and pro tability. In February 2024 then-CEO Andrew Iacobucci spoke of “major investments” in the 85-year-old RONA brand as the Lowe’s banner was retired. e network remains about 425 stores strong with roughly 21,000 employees.

Leadership changes were a theme in 2024. In June RONA appointed J.P. Towner,

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formerly CFO, as president and CEO. Towner commented on building “the future of this iconic brand” as RONA’s leader. Earlier, in October 2024 Sylvain Girard joined as CFO. (Notably, RONA had named Iacobucci CEO in January 2024 during earlier restructuring.)

Store network changes were prominent. As part of a major rebranding, all former Lowe’s Canada stores were converted to the RONA+ banner by February 2024, and RONA+ became the company’s key corporate brand nationwide. In October 2024 the company nished converting the last 16 Réno-Dépôt outlets to RONA+.

RONA also expanded in key markets. An a liate opened a new 50,000 sq. . RONA store in Moncton, N.B. in December, its h Atlantic Canada location in 2024. In Quebec City, the Chartier family’s RONA Lachine store added a 6,500-square-foot warehouse and new racking in a $2 million expansion to better serve contractors. In British Columbia, Lumby Home Improvement joined RONA’s a liated dealer network, adding 3,000-square-feet

of retail space and new eco-friendly product lines. At the same time, RONA streamlined its operations, announcing in January 2024 that approximately 300 corporate jobs would be cut and two distribution centres (in Terrebonne, Que., and Calgary) closed as part of a consolidation e ort.

Strategically, RONA pursued acquisitions and partnerships. In July 2024, RONA partnered with ntech A rm to o er exible payment options to online customers. In December 2024 RONA announced the acquisition of All-Fab Group to bolster its building materials o erings. is deal required regulatory approval: as a condition of Competition Bureau clearance, RONA agreed to divest a truss plant in Martensville, Sask., to preserve competition in that market.

On the philanthropic side, the RONA Foundation presented over $515,000 to 150 organizations across Canada in October. e foundation emphasized its commitment to revitalizing living environments and improving access to housing for Canadians in need.

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4 CANADIAN TIRE RETAIL

HQ: Toronto, Ont.

2024 RETAIL SALES: $7.503 billion*

STORES: 502

*Hardlines focuses only on the Canadian Tire Retail business, and only the hardware, housewares, and building materials sales within that business.

Canadian Tire Retail is the agship of Canadian Tire Corp., a major Canadian company that includes nancial services and a real estate investment arm, Canadian Tire REIT. Under the Canadian Tire banner, as well as others including PartSource, Marks, and SportChek, the company has some 1,700 retail and gasoline outlets nationwide.

Following a sluggish year marred by negative comps and faltering consumer con dence, Canadian Tire Retail wrapped up 2024 on a slightly positive note, overall, but full-year sales were down 1.9 percent across all Canadian Tire stores, driven by declines in all four of its categories, Living, Seasonal & Gardening, Fixing, and Playing, o set somewhat by growth in its automotive

parts and repair business, which is excluded in our consideration of Canadian Tire’s place in the retail home improvement industry.

e 502 Canadian Tire stores showed slightly strong results part way into 2025. In its rst quarter, Canadian Tire Retail sales, excluding petroleum, were up 4.9 percent and comp store sales were up 4.7 percent. rough last year and to the present, the company has been investing heavily in its supply chain with modernization and upgrades to its Calgary and Montrealarea distribution centres, and the sale of its long-standing Brampton facility, which became redundant.

It’s also focused clearly on e-commerce and expanding its Triangle Rewards loyalty program. at focus coalesced under its latest strategy, called “True North.” e True North strategy is a $2 billion initiative over the next four years that embraces strategic initiatives to accelerate retail growth and improve CTC’s nancials.

One of the highlights of the strategy is the company’s shi to a single operating company from a holding company of individual

businesses. is new model aims to reduce redundancies and consolidate back-o ce systems, enable more uni ed implementation of tech and AI, analytics, and reduce sta across banners.

On the digital side, CTC has converted all its major banner websites onto a single online platform. Acceleration of the Triangle Rewards is a priority, and AI is a big part of that push. e aim is to provide a more personalized experience for Triangle members. at has also meant adding other brand loyalty partners outside of CTC’s own family of stores. So far, the company has made a deal with Royal Bank of Canada that links RBC’s Avion Rewards with Triangle Rewards. e other new partner is WestJet. at program, which includes “stacked rewards” and special o ers, will be launched in early 2026.

At the store level, CTC expects to invest up to $575 million this year on the continued modernization of the Canadian Tire stores.

5 INDEPENDENT LUMBER DEALERS CO-OPERATIVE

HQ: Ajax, Ont.

2024 RETAIL SALES: $4.444 billion

STORES: 511

With only 19 member companies in its ranks, ILDC is likely the country’s tightest-knit buying group. In fact, its charter limits membership to only 21. But in terms of sheer sales, it’s near the top.

It’s made up of some of Canada’s largest independent home improvement retailers, representing just over 500 locations coast to coast. eir stores range from traditional home improvement stores and big boxes

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to contractor yards and GSDs. Members operate under their own banners and o en dominate in their respective markets.

As a group, they pride themselves on keeping a low pro le. In fact, ILDC’s own website has a “News” link that is always empty and it rarely shares any details about the group or its members.

ose members include Winnipeg-based McMunn & Yates, which has 22 stores on the Prairies, while Kent Building Supplies is a well-known brand throughout Atlantic Canada with 48 stores.

Interestingly, two of its members are groups in their own right. BMR and Federated Co-operatives, both of which are counted in our Top 20, also hold membership in ILDC.

Membership also includes building centres with just a few, or even one, location. For example, L. Villeneuve & Cie, with a single outlet in the heart of Montreal, generates estimated sales in excess of $20 million annually. Fries Tallman has only two locations, in Regina and Fort Qu’Appelle, Sask., but is a powerhouse in those markets.

ILDC is a member of the hardlines buying group Spancan.

6 TIMBER MART

HQ: Calgary, Alta.

2024 RETAIL SALES: $4.021 billion STORES: 603

TIMBER MART, Canada’s largest independent building materials co-op, experienced steady growth and operational milestones in 2024. While the organization does not release nancials, it has continued expanding its national dealer base and strengthening internal leadership.

Several senior sta were promoted in 2024. In July, long time operations director Je Campbell was named VP of distribution (succeeding John Morrissey, who will depart mid 2025). Phil Temple—formerly Western Canada member services director—became national director of member services. In procurement, Shawn Ettinger was promoted to senior national procurement manager and Damien Sohm to national procurement manager.

In the Prairie region, Joel Kakoske joined senior management as regional member-services director. CEO Bernie Owens emphasized these moves as intentional succession: “At TIMBER MART, we believe in hiring from within…[to] nurture our positive company culture and values,” he wrote in an issued statement.

TIMBER MART added new members in 2024, including Seaboard Industrial Supply in Sydney, N.S. “TIMBER MART understands and respects independent dealers,” said Seaboard’s owner, Parker Rudderham. Strategically, the company emphasized marketing and member engagement. It held a hybrid national buying show in Toronto, which Owens called “a valuable and cost e ective option” that “is here to stay”. It also awarded $18,000 through its Local Leaders Grant Program to Cathy Tétreault for community service.

Both new alliances took e ect on Jan. 1, 2025. First, Sexton joined Octo Purchasing Group, the Montreal-based hardlines, electrical, and plumbing buying group. Octo connects its members with 448 suppliers and says it represents some $8 billion in retail front end sales. Eric Palmer, Sexton president, told Hardlines when the deal was announced that the front-end-oriented Octo t well with his group.

Palmer added that the Octo deal ts well with Sexton’s strategy to o er an opportunity for upgraded front end sales. “We have plans to add another 100-plus vendors in new categories over the next couple of years, and this will help us to fast-track the process. We would have a big challenge internally to accomplish this on our own.” e other important partnership forged by Sexton also involved a Quebec-based organization.

Sexton has allied with Évolution Distribution, a regional distributor and edgling buying group headed by none other than Geneviève Gagnon, president of Évolution Distribution—and the scion of a leading buying group family in Canada. e new entity is called EvoX, and it marries the strengths of both companies to provide a new option for Quebec dealers.

8 CASTLE

HQ: Mississauga, Ont.

2024 RETAIL SALES: $1.833 billion

7 SEXTON

HQ: Winnipeg, Man.

2024 RETAIL SALES: $3.603 billion

STORES: 394

is year is the 40th anniversary for this large LBM buying group based in Winnipeg. But the current Sexton mindset is all about looking to the future, with the organization forging two new alliances.

STORES: 341

Castle’s biggest news over the past year was the signing, at the end of 2024, of Groupe Beauchesne, a GSD with three locations around the Montreal area and two in Quebec City. Castle president and CEO Ken Jenkins called Beauchesne “a powerhouse” and said the signing marked “a pivotal moment for Castle in Quebec.”

“We have had seven major expansions since joining Sexton Group in 2010. We couldn’t have done that without the tight-knit team of professionals at Sexton Group pointing us in the right direction. I’m often asked at conferences and meetings if I feel the pricing is competitive. I say “YES.” You don’t expand seven times in 10 years without competitive pricing programs. That’s why I am a Sexton member.”

e new member joined Castle’s commercial division.

at division is a fast-growing part of the Castle organization. Also joining it over the past year was former WSB Titan president Doug Skrepnek, who launched two new GSDs in Vaughan and Trenton, Ont. Beauchesne was a member of WSB Titan under Skrepnek’s leadership—and he was in uential in their joining Castle.

Castle buttressed its traditional building supply membership throughout the past year with several signings, especially in Quebec. ey include Revêtements des Laurentides inc. on Montreal’s north shore, and Outillage Rioux GDB in Bedford, Que. e days when Castle had but a single member in Quebec, Hudson Hardware, just west of Montreal, are a distant memory.

Castle also signed, among other dealers, Competitive Building Supply Inc. of Brockville, Ont., and Siderman Inc. of Guelph, Ont. e head o ce also announced the launch of a new centralized Estimating & Design Services (EDS) program for its membership. e program is touted as a rst for a buying group in the industry.

9 CANAC

HQ: Quebec City, Que.

2024 RETAIL SALES: $1.520 billion

STORES: 34

is major player in the Quebec City region, formerly known as Canac-Marquis Grenier, is also the largest independent in the province. It follows a Walmart-style everyday low pricing model and has more than a dozen stores in the Quebec City region alone.

In 2025, Canac is celebrating its 150th anniversary, and it’s marked the occasion

with a private label potato chip o ering. e “gypses” (a play on the French word for drywall) were developed in partnership with Yum Yum Chips.

Canac’s o erings run the gamut of home products, with pricing especially aggressive in commodities. It has pursued a strategy of steady expansion, adding about two new stores per year.

A er launching its 33rd store last spring, in Sorel-Tracey, Canac broke ground in November on what it billed as its largest project to date, a 625,000-square-foot building at its Drummondville DC. e expansion was expected to bring the facility’s footprint to 1.2. million square feet.

In January, the chain kicked o the new year with the launch of its 34th store, in Rivière-du-Loup. e grand opening came just weeks a er the announcement of its rst store in Laval, which Canac says will be its largest ever. e opening, slated for the beginning of 2026, will bring Canac closer than ever to the island of Montreal.

10 BMR GROUP

HQ: Boucherville, Que.

2024 RETAIL SALES: $1.449 billion STORES: 291

BMR Group is a member of the Independent Lumber Dealers Co-operative (ILDC) and since 2015, the retail division of Sollio Groupe Coopératif (formerly La Coop fédérée). It describes itself as the largest wholly Quebec-owned home improvement retailer.

Building on its density in its home province, BMR has been active in recruiting dealers in Ontario and the Maritimes, particularly New Brunswick. As a wholesaler, it operates its own distribution facilities in Quebec.

Growth over the past year has come from acquisitions by existing BMR members in Quebec and the Maritimes, as well as the addition of a three-store network in Ontario formerly under the Ace banner.

BMR has remained committed to its multi-banner strategy: a standalone BMR brand for home centres, the BMR Express proximity banner, and the larger BMR Extra format. e farm-oriented Agrizone largely functions as a store-within-a-store. e past year has seen signi cant changes at the executive level at BMR. In March, Charles Grégoire-Béliveau was promoted to the role of senior vice-president, commercial strategy and partner relations. Antonio Di Pasquale took on the role of chief executive o cer, operations.

BMR’s e orts to strengthen its position both in the pro market and outside of Quebec seemed to pay o in May, when it welcomed two new members to the BMR Pro banner in Ontario.

11 KENT BUILDING SUPPLIES

HQ: Saint John, N.B.

2024 RETAIL SALES: $1.121 billion

STORES: 48

Kent’s reach is large enough that it’s the only ILDC member in all of Atlantic Canada. It has stores in two formats, traditional building centres while 10 of the locations are big boxes. Its customer base is both DIY and contractor customers, but its e orts in recent years, much like other retailers in this industry, has been to put more focus on its pro customers.

e retailer is part of the ILDC buying group. It is also one of two members of the European buying group, A.R.E.N.A. (the other member is BMR Group). Kent is part of JD Irving Ltd., which has businesses in

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everything from shipbuilding to forestry. Another division, Kent Trusses, gives the retailer a competitive edge in many markets with homebuilders. Industrial Commercial Supplies (ICS), yet another Irving business, is a commercial wholesaler a liated with Kent that gives it further reach with pros.

In 2023, Kent began introducing large appliances in some of its stores, and it continues to add this department in other existing stores. It now has fridges and stoves in almost half of its 48 locations. With Kent’s continued expansion of its services to contractors, the appliance showrooms represent an important added service when it comes to rounding out assortments for residential home improvements.

12 GMS CANADA INC.

HQ: Vaughan, Ont.

2024 RETAIL SALES: $948 million

STORES: 40

GMS Canada started out as WSB Titan, a buying group that was formed in 2009. It bought for three of Canada’s largest GSDs: Shoemaker Drywall Supplies on the Prairies, Watson Building Supplies in Ontario, and Beauchesne Group in Quebec.

e group was purchased by Gypsum Management and Supply Inc. of Tucker, Ga., in 2018 for US$627 million. GMS Inc. is a publicly-traded company.

e big news from the Vaughan, Ont.based GMS Canada in May 2024 was the acquisition of Burlington, Ont.-based Yvon Building Supply, including its various divisions, which include Yvon Insulation Corp., Yvon Insulation Windsor, Laminated Glass Technologies Inc., and Right Fit Foam Insulation Ltd.

e year prior to acquiring Yvon, GMS continued its consolidation of Canadian GSDs acquiring Blair Building Materials,

of Maple, Ont.; and Home Lumber and Building Supplies, of Victoria. B.C.

GMS Canada now has some 40 points of sale in Canada, from Vancouver Island (where Slegg Building Materials has some 10 outlets, and Jawl Lumber Corp., which serves the market under the Home Lumber and Building Supplies banner) to Quebec (D.L. Building Materials in Gatineau).

In the scal year which ended April 30, 2025, GMS Inc. saw annual sales grow by 0.2 percent to US$5.514 billion. GMS’s annual report for the previous year said that Canada contributed 12.2 percent of its revenue.

13 DELROC INDUSTRIES

HQ: Langley, B.C.

2024 RETAIL SALES: $938 million

STORES: 137

Delroc Industries is a full-scale LBM buying group whose roots go back to Dryco Building Supplies, a GSD, founded by Bruno Mauro in Vancouver in 1973. In the beginning, Mauro had his brother, Vince, as partner, as well as Gerry Malinka and Ken Kabush. Nowadays, Dryco is onto the second generation of Mauros, with Daniel Mauro as national operations manager of Delroc and Anthony Mauro as a director. Daniel and Anthony are sons of Bruno. Dryco has seven branch locations in B.C., Alberta, and Ontario.

Delroc grew out of Dryco’s need for buying power. It has 33 member companies in over 130 locations in Canada, all independently owned, representing almost $1 billion in annual sales. e largest member of Delroc is Windsor Plywood (see separate listing), which is as much about plywood as Canadian Tire is about tires—there’s so much more. Windsor has 62 points of sale, 57 in Canada and 5 in the Paci c Northwest of the United States.

Delroc includes such prominent building supply yards as Northern Building Supply in Vancouver, and Peace River Building Products in Fort Saint John, B.C. Delroc has recently expanded its range of products, bringing front-end merchandise into the market. To that end, it forged an agreement with hardlines buyer Octo Purchasing Group that took e ect on Jan. 1, 2025.

14 AD CANADA - BUILDING SUPPLIES

HQ: Mississauga, Ont.

2024 RETAIL SALES: $806 million STORES: 49

AD’s Canadian operations began more than 30 years ago, growing into a signicant portion of AD’s total business. e Canadian market represents the company’s focus on continued growth in current and new markets, which is a cornerstone of its strategic plan. Hardlines estimates the sales solely of AD Canada’s Building Supplies division.

In 2025, AD reported that member sales for the rst three months increased 23 percent to US$24 billion; same-store sales increased by 2 percent in the U.S., 2 percent in Canada, and 3 percent in Mexico, in their respective currencies.

“Our independent members and supplier partners continue to demonstrate the resilience and focus that set this group apart. e diversity of our industries and the strength of our partnerships have helped our community stay strong and perform well, even in complex and evolving environments. We’re proud of the results we’ve achieved together to start the year and look forward to building on this momentum in the quarters ahead,” said AD CEO Bill Weisberg. e company’s Canadian headquarters are located in Mississauga and are attached

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to a 50,000-square-foot distribution centre that services all divisions. e president of AD Canada is Rob Dewar, who assumed the role in 2021 when the former TORBSA buying group merged with AD.

15 FEDERATED CO-OPERATIVES LIMITED (FCL)

HQ: Saskatoon, Sask.

2024 RETAIL SALES: $557 million

STORES: 99

FCL is a wholesaling, manufacturing, marketing, and administrative cooperative owned by more than 160 independent retail cooperatives in Western Canada, which are in turn owned by more than 2 million individuals. ese local co-ops own and operate agrocentres, food stores, gas bars/convenience stores, and home centres.

According to the company’s latest nancials, FCL achieved total sales of $11.9 billion last year, resulting in net earnings of $297 million. Additionally, FCL provided $252 million back to local co-ops in 650 communities across Western Canada. e company noted that over the past ve years, FCL has returned nearly $1.5 billion in patronage to local co-ops.

Federated Co-operatives will likely remember this past year as one of challenges and growth. In June, it experienced a signi cant cyberattack that brought down the company’s grocery operations, inventory, and delivery systems, including much of its internal and customer-facing systems and cardlock fuel locations. In response, it shut down many of its systems as a precaution and was fully operational again by mid-July.

Also in June, the company opened Co-op Essentials, a rst-of-its-kind, newly designed food store in Surrey, B.C. e new store format piloted by Otter Co-op and

FCL is a one-stop shop with everyday savings on everyday essentials.

“FCL is proud to have partnered with local co-ops to design this new concept,” said Rick Fernandes, vice-president of consumer products, FCL. “What makes Co-op a di erent kind of business is that each local Co-op and their community are distinct, and we want to celebrate that. is new format allows us to extend the co-op food o ering to new customers and communities and provide everyday savings to the consumer.”

In March 2025, the company acquired ColdStar Solutions Inc., a transportation,

warehousing, and grocery wholesaler headquartered in Victoria.

“ColdStar has been an important supply chain partner for FCL since 2017. We are pleased that the partnership has ultimately led to the acquisition of this tremendous company,” said Heather Ryan, CEO, Federated Co-operatives. “ is acquisition demonstrates our ongoing commitment to supporting local co-ops and optimizing our supply chain network, contributing to our overall growth strategy as an organization.”

With warehouse locations in Richmond, Victoria, Ladysmith, and Comox, B.C., ColdStar provides FCL with strategic supply chain advantages on the West Coast.

16 PEAVEY INDUSTRIES

HQ: Red Deer, Alta.

2024 RETAIL SALES: $400 million STORES: 94

Unfortunately, everything about Peavey Industries is in the past tense, as the Red Deer-based retailer is now out of business. e specialty farm and ranch retailer once had 90-plus stores under the Peavey Mart and MainStreet Hardware banners. It made news in 2016 when it invested in London, Ont.-based TSC Stores the TSC chain in 2016 (it bought the farm and hardware chain outright a year later). It then assumed the licence for Ace Hardware in Canada in 2020.

However, the impact of Covid, combined with the ongoing economic sluggishness post-Covid, drove the company to shed the Ace alliance at the end of 2024. e beginning of the end came at the in January, when Peavey announced it was working with closeout experts Gordon Brothers, and began closing stores. e last stores were shuttered this past spring.

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Add to that Peavey’s uneasy alliance with Ace Hardware, whereby Peavey took over the Ace licence in Canada in early 2020 and began servicing some 90 Ace dealers across the country. e arrival of the Covid pandemic and the logistics of hardware distribution in Canada worked against Peavey, and the deal was terminated e ective Dec. 31, 2024. e demise of Peavey has le a big hole in the farm and hardware market, a hole that competitors such as Home Hardware and Federated Co-operatives Ltd. have been working to ll.

17 UFA FARM & RANCH SUPPLY

HQ: Calgary, Alta.

2023 RETAIL SALES: $412 million

STORES: 34

UFA marked the beginning of 2024 with the addition of new president and CEO Fred un, who told Hardlines shortly a er his arrival that his sole purpose is to perpetuate and to support rural communities and the rural lifestyles. un replaced Scott Bolton, who retired in December 2024. e company, which was founded in 1909, provides products to more than 127,000 members that are serviced through 117 cardlock and bulk fuel locations through its Western Canada network in B.C., Alberta, and Saskatchewan and 34 Farm & Ranch Supply stores in Alberta. Notably, the company opened a new 12,000-square-foot farm store in Red Deer, Alta., and completed upgrades to several other facilities across its network of stores.

UFA achieved $412 million in sales in 2024 through its farm stores, with a strong focus on growth and product expansion. In late 2024, the company launched its rst mobile app, allowing users to view the

complete network of petroleum agencies and cardlocks for personalized prices.

A strong e ort was also made in the areas of rural community capital projects.

18 PATRICK MORIN

HQ: Saint-Paul, Que.

2024 RETAIL SALES: $408 million STORES: 25

Groupe Turcotte, a network of seven Home Hardware stores in Quebec, partnered with Home Hardware Stores

Ltd. corporate to buy Patrick Morin in February 2021. Patrick Morin, which had previously been a member of ILDC, has continued to maintain its own banner and branding.

Its 25 stores are all corporately owned and the company is looking to nearly double that footprint over a decade-long $25 million project.

At the end of 2024, Patrick Morin made its rst excursion outside Quebec with the acquisition of four renovation centres from P. Bonhomme Enterprises. ese locations straddle the Ottawa River. One store serves the Hull district of Gatineau, Que., while the others are in the Eastern Ontario communities of Rockland, Carleton Place, and Limoges.

NOW ON THEIR OWN, SOME DEALERS REMAIN WITH ACE

Six months before the beginning of its own end, Peavey Industries announced in June 2024 that it would end its relationship with Ace Hardware International by the end of the calendar year. It had acquired the licence for the banner in Canada in March 2020. It was previously held by Lowe’s Canada.

Peavey CEO Doug Anderson told Hardlines at the time that the move would allow the company to focus on its core business, namely its own network of corporate stores, which operated under the Peavey Mart and MainStore Hardware banners.

The announcement left dealers anticipating that they would be serviced by Ace International, but the latter was slow to comment on the development. Only in late October 2024 did it break its silence, and the news was not good: Ace would not be picking up the Canadian dealers when their relationship with

“Despite significant efforts, we have not been able to find a suitable replacement for Peavey to provide support and products to your stores,” Ace wrote to

To make matters worse, it offered Ace Canada dealers a choice: pay a licensing fee to retain the name, rebrand, and convert all store signage by the new year, or face serious daily fines for using the Ace name. Since then, a handful

Peavey ended on Dec. 31. of dealers have kept or signed on with Ace in Canada.

Market share of Top 20 Retail Groups

19 FOUNDATION BUILDING MATERIALS CANADA

HQ: Calgary, Alta.

2024 RETAIL SALES: $401 million

STORES: 27

e Canadian division of FBM used to be known as Winroc/SPI, until it was in purchased for US$325 million in 2016 by Foundation Building Materials of Santa Ana, Calif., from the construction products division of Superior Plus. Superior, a Toronto-based gas distributor, had owned Winroc since 2004. FBM Canada has some 27 points of sale in Canada. Its U.S. owner has more than 300 stores in North America.

Winroc was founded with a single location by Wayne Jack in Winnipeg (hence the name). It soon expanded into the U.S., too (Arizona, Minnesota, Nevada, and Utah).

FBM is a typical GSD operator, supplying steel framing, acoustic ceilings, and construction supplies. What has made FBM

Rest of the Industry

Top 20 Retail Groups

Total Industry

2024: $57.317 billion

2023: $58.637 billion

Change: -2.3%

grow so fast has been the ability to buy out smaller operators as a consolidator. ese yards (Winroc is branded FBM almost everywhere) have morphed from being pure GSDs into selling a wider range of products. FBM launched a new so ware system in January 2025 on both sides of the border. e technology promises real-time inventory, instant ordering, and seamless project management.

20 WINDSOR PLYWOOD

HQ: Langley, B.C.

2024 RETAIL SALES: $334 million STORES: 62

Windsor Plywood is unusual among our industry’s Canadian-owned retailers in having successfully opened stores south of the border. In addition to its 57 points of sale in Canada—mostly franchises—Windsor Plywood has four stores in Washington state and one in Montana.

e chain has 29 stores in B.C., 19 in Alberta, four in Saskatchewan, four in Manitoba, and a sole Ontario store in under Bay.

Windsor Plywood marches to the beat of its own drummer in its product mix, which varies according to franchisees. It generally specializes in hard-to-source wood products, going to market as: “Here to help since 1969.” at year, Randle (Randy) Jones purchased his rst Windsor Plywood store in Surrey, B.C. He was a business student at the University of British Columbia when he got a job at Steward & Hudson Lumber in his hometown of Victoria in 1952. He also worked for a couple of other lumberyards before buying the business, then a one-store operation.

Jones died just before Christmas 2023 at the age of 89. Since then, there has been a changing of the guard at the head o ce. Coming in as CEO since December 2024 is Archie Campbell. He was the former president and CEO of Coast Appliances, Vancouver.

Windsor is the largest member of the Delroc buying group, which has its own listing.

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2025 MAP

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NOTE:Theplacementofthegroups inthischartdoesnotintendtorank theminanyway,butmerelytoshow howtheyarerelated.

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Total home improvement stores by province/territory

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Top 20 banner groups by retail sales ($millions)

Canadian Tire’s sales reflect our estimated total of related hardware, décor and home improvement sales only.

BMR, Kent, and Federated Co-op are members of ILDC, so their sales have been backed out of the umbrella group’s total to avoid double-counting.

Peavey’s sales included Peavey Mart and MainStreet Hardware. They did not include wholesale sales to Ace Canada dealers, or the estimated retail sales of the Ace Canada dealers.

UFA is a member of the Sexton Group, so its sales have been backed out of the latter’s total to avoid double-counting.

Windsor Plywood’s sales have similarly been backed out of the total for Delroc, of which it is a member.

Sales of banners inside other Top 20 buying groups have been backed out of these totals to avoid double-counting.

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CLOVERDALE PRESIDENT WARNS CANADA COULD PAINT ITSELF INTO A CORNER WITH TARIFFS

Trade relations between Canada and the U.S. are fraught. Darrin Noble, president and COO of Cloverdale Paint Inc., talks impact on paint manufacturing in Canada.

The ongoing trade war between the United States and Canada has had repercussions throughout the industry. The array of tariffs levied by the U.S., and counter-tariffs imposed by the Canadian federal government, has seesawed so dramatically that it has occasionally been difficult to keep up with exactly what measures are in effect at a given time.

One sector that’s particularly integrated across the border, and therefore especially vulnerable to getting caught in the crossfire,

is paint and coatings. At the time of reporting, many Canadians are sprucing up their homes and cottages for the summer, and seasonal products like paint and brushes are not among those goods covered by exemptions from Canadian counter-tariffs.

Even on top of the practical applications of paint, there are recreational ones to consider: paintball enthusiasts are worried about the affordability of their equipment, as a major manufacturer of North American paintballs is located in Quebec.

All told, Paint & Coatings Industry magazine puts the value of Canadian exports in the category to the U.S. at US$1.26 billion, with another $815 million worth entering from Mexico. It warns that key raw materials like titanium dioxide are jeopardized by the trade war, with knock-on ramifications for the construction sector, which could see slowdowns in building new infrastructure.

The American Coatings Association cited those numbers in the open letter it released in March, condemning the White House’s

TARIFFS

Darrin Noble, president and COO of Surrey, B.C.-based Cloverdale Paint, says the government needs to move carefully in responding to U.S. President Donald Trump’s protectionist provocations, taking into account the realities of the industry.

imposition of tariffs on its CUSMA partners and the People’s Republic of China. The letter stated that China dominates manufacturing of “many raw materials” used by the association’s members, leaving “limited options to procure these raw material inputs elsewhere.”

At the end of April, a Democratic city councillor in Georgia got over 60,000 views on TikTok when he posted a video of himself with three gallons of premium paint in tow, which he had purchased for a DIY project. The price of the product, he claimed, was a third higher than when he had previously bought the same paint three months prior.

Darrin Noble is president and COO of Surrey, B.C.-based Cloverdale Paint. He says the government needs to move carefully in responding to U.S. President Donald Trump’s protectionist provocations, taking into account the realities of the industry.

Noble acknowledges that the “trade war is a top issue for Canadian coatings manufacturers, as well as an issue for U.S. manufacturers.”

If some sectors of the industry are going through the current situation relatively

producers, it is clearly not the case for Canadian paint manufacturers.”

Nor does he think the blame can be laid all at one doorstep. “It’s not the U.S.-levied tariffs that are to blame. To be honest, it baffles me that the Canadian federal government has implemented tariffs on U.S. imports which include the segment of steel

While we often see media [claiming] that tariffs are not a big impact on renovation suppliers and producers, it is clearly not the case for Canadian paint manufacturers. “ ”

unscathed, he says, the paint business faces unique challenges. “While we often see media [claiming] that tariffs are not a big impact on renovation suppliers and

packaging, an industry that has few if any Canadian offsets.”

Adding insult to injury, Noble says, the impact of the tariffs isn’t felt by American

manufacturers. “It’s not costing U.S. producers of the packaging or U.S. paint producers. It’s levied by the Canadian government and paid for by Canadian manufacturers to the Canadian government. What’s going on?”

Noble’s point seemed to be borne out when Sherwin-Williams, based in Cleveland, reported its Q1 results on April 29. The manufacturer said it anticipated a limited impact from tariffs, as some 80 percent of its sales are to domestic markets. It too, however, has seen reverberations from tariffs on materials like pigments, applicators, and packaging.

Similarly, rival PPG Industries said in announcing its Q1 earnings the same day that it too expected to weather the storm, as it is not over-reliant on any one market. None of the Pittsburgh-based firm’s top 30 suppliers, CEO Tim Knavish told analysts, is based in China.

Photo: Erin Cousins

For his part, Noble doesn’t object to moving more manufacturing to within Canada but reckons that governments need to be realistic about the pivot. “If you put paint into cans and pails, you pretty much have to use a U.S. manufacturer. There is not a made-in-Canada solution in the correct capacity and specification.

“As a country, we need to work on that, but for the foreseeable future, Canadian paint manufacturers are paying thousands of dollars weekly in 25 percent tariff remittances to the Canadian government.

“From the perspective of a Canadian paint manufacturer, Canada’s tariffs on incoming raw materials from the U.S. place Canadian paint manufacturers at a competitive disadvantage to U.S. paint manufacturers who do not face reciprocal tariffs, because they are largely excluded from countermeasure tariffs on the paint they make in the U.S.”

Noble does give the government credit for reneging on a separate round of tariffs that were meant to go in effect in the spring in retaliation against U.S duties on so-called “line 2” goods. But he cautions that measure too could still be revived and laments that the process for obtaining exemptions from existing tariffs is too Byzantine.

“There is a mechanism to apply for exemption and reimbursement, but it’s difficult and would benefit from government taking

FLE

Still, he admits that there are no easy answers. “The solution might seem simple: remove the Canadian-imposed tariff or add a Canadian-imposed tariff on U.S.-made paint. But it’s not an easy issue.”

The CPCA, he notes, includes “members who are Canadian paint manufactures, members that only produce paint in the U.S., and members who make paint both in Canada and the U.S. Some are winning

Canada’s tariffs on incoming raw materials from the U.S. place Canadian paint manufacturers at a competitive disadvantage to U.S. paint manufacturers who do not face reciprocal tariffs.

a more streamlined approach,” he says. The Canadian Paint and Coatings Association (CPCA), he adds, has been supporting individual business leaders in their dialogue with government officials on the subject.

and some are losing, hence there is a split point of view.

“Vendor relationships are also a significant consideration. We have supply contracts in place that usually span two to

three years of commitment. We also have friendships and trust in capable suppliers who make our businesses stronger. It is hard to walk away from that mutual support, and we probably don’t want to.”

Noble describes the growth of Buy Canadian sentiment as “an emerging benefit … Typically, we Canadians are not as nationalistic as Americans and we’re not as easily moved by patriotism. However, there is definitely more consumer interest in Canadian products and some painters have awarded us new business.

“It’s not overwhelming, but it’s a positive development in an otherwise struggling renovation and building economy.”

Still, Noble points out that the government doesn’t always practice what it preaches. “A key opportunity for Canadian companies is to lobby for more government procurement preference but it has been a tough nut to crack. So far as they are very married to previously specified products that generally come from the U.S.”

Cloverdale Paint’s Surrey, B.C. head office is just 15 minutes away from the U.S. border.

Yet in another sense, that’s not surprising. “Canada, as a country, relies on goods produced in the U.S.” Noble says those goods include “primary input materials” and range from “steel and plastic packaging [to] acrylic polymers, alkyd resins, specialty

FLE

ultimately tied together for mutual benefit.” Tariffs, he points out, “are political tools and not commercial solutions. The sooner we get over that, the better for all Canadians.”

The present situation, however, may present an impasse: “I don’t see much appetite from

We’re stronger together and ultimately tied together for mutual benefit. “ ”

additives, solvents, [and] a variety of mined materials depending on the geographic location of Canadian manufacturers and U.S. suppliers.”

He points to the “integrated nature [of] the Canadian and U.S. trade economies” and opines that “we’re stronger together and

Canada to resolving the tariffs we have in place.” And as long as they remain, “the U.S. does not seem to have much appetite for resolving their tariffs against Canada.”

At the same time, tariffs are not the only regulatory measures that Noble sees as cause for concern. He points to the Fighting

Cloverdale relies on raw materials from the U.S., including steel packaging.

Against Forced Labour and Child Labour in Supply Chains Act of 2023, which came into force at the beginning of last year. There can be, he says, “no question” that the law’s objective merits support. But he would prefer to keep the heat on sectors like textiles where such abuses are a live issue.

“There is an immense amount of bureaucracy that has developed over the past eight or so years that is burdening business in areas of questionable relevance. Do Canadian paint manufacturers and retailers employ child or forced labour?”

As finally passed, he notes, the legislation requires companies across all industries with $40 million in revenue and at least 250 employees to demonstrate compliance.

The bottom line, according to Noble, is that whether it’s tariffs or labour laws, there is no quick fix when it comes to implementing government directives. “Regulations such as these take a lot of time!”

Get a new perspective from industry leaders

What’s in Store

A free podcast series from Hardlines that features interviews with industry leaders from all parts of the home improvement industry. Listen while you are in the car, or from the comfort of your office. You will be entertained, educated, and that much more connected to the industry!

RECENTLY ADDED PODCASTS

David Ian Gray

David Ian Gray of Vancouver-based DIG360 is a retail strategist and expert. In this podcast, Gray talks with Hardlines editor Rebecca Dumais about the changing retail landscape including the impact of tariffs on Canadian businesses, the fall of iconic brands Hudson’s Bay Company and Peavey Mart, and charting a path in uncertain economic times. David is highly sought after by business leaders and executives for his retail knowledge and strategic insights. His views on the hardware and building supply industry in Canada make this podcast a much watch.

Peter Turkstra

In this episode, Peter Turkstra, third-generation owner of 11-store Hamilton, Ont.-based Turkstra Lumber, is interviewed by Pro Dealer editor Steve Payne. Peter talks about the headwinds that all dealers face in 2025, starting with the tariffs issue, which he describes as a “gong show.” Peter also talks about how municipal development charges have climbed steeply.

Barry Eidt

In this interview with Barry Eidt, we talk to an entrepreneur who was our 2023 Young Retailer of the Year. Barry and his family run three stores in southwestern Ontario that recently joined BMR (January 2025). Barry talks about his happiness with his decision, and how BMR has spared no effort to welcome him into the fold.

Plus many more podcasts to choose from!

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

ON THE SHELF AND ON THE JOB SITE: AI IS TRANSFORMING THE WAY WE DO BUSINESS

Artificial intelligence (AI) is being integrated into all aspects of construction planning and logistics. From the lumber yard to the job site, customer interaction, inventory, and shipping are all being managed artificially in some capacity.

According to a survey by the Association for Project Management, 32 percent of project professionals working in construction report their organization is already using AI in projects, and 43 percent said their organization is planning to use it in the near future.

Just 24 percent of respondents said their organization is not using AI and does not intend to in the future.

For the majority of businesses in the hardware industry, AI is quickly becoming the direction of the future. Today, companies like IKEA have utilized the technology to improve the customer experience and ensure that the right product is being put in the hands of consumers.

The technology is also being perfected for businesses to track buying patterns and even movement around a store, so products can be more effectively placed on shelves in the right locations.

IKEA is one business that has always been ahead of the curve when it comes to innovation. The company has woven AI throughout the customer journey to provide enhanced personalized solutions.

“We use AI to provide personalized recommendations, smart home solutions, and augmented reality (AR) applications. We call it ‘democratizing interior design’ for the many—by combining decades of IKEA life at home knowledge with the latest developments in spatial computing and AI, we can make our customers their own interior designers,” said Alicia Carroll, public relations leader, IKEA Canada.

This has been achieved through the IKEA Kreativ platform, an easy-to-use experience that aims to inspire customers, unlock their creativity, and help them visualize how home furnishing solutions will look, fit, and function in their homes through lifelike interactive design, according to Carroll.

In a few simple clicks, customers are able to create a realistic view of their homes, allowing them to make an informed choice based on their product needs.

Carroll said the company also uses an advanced demand forecasting tool that, with the help of AI, turns vast data points from 80 years of retailing into signi cantly improved, accurate demand sensing and forecasting.

“Improved forecasting helps to ensure better availability, lower costs throughout the whole supply chain, steer better use of raw material and resources, and ultimately enable lower prices for our customers,” she said.

Carroll said IKEA recognizes the “incredible potential of AI and the technologies connected to it to unlock more value for customers and co-workers.

“We aim to use AI to empower our co-workers and augment their capabilities, creativity, and decision-making,” she said. “For example, AI powers the ‘Billie’ chatbot that is leveraged for IKEA remote selling, bringing increasing bene ts to customers and co-workers. As the AI-powered ‘Billie’ chatbot resolves simpler queries, upskilled and re-skilled co-workers are empowered to play a more value-added and inspiring role for more complex customer calls. Customers will also continue to experience more personalized recommendations as we integrate AI-empowered tools into our operations.”

Looking towards the future, Carroll said that IKEA continues to explore the possibilities AI has to o er beyond the customer experience, operations, and supply chain.

“We are constantly exploring new uses of AI and technology for sustainability, and we champion climate-positive AI practices,” she said.

With any technology, there are challenges. Carroll said the company takes a wise and vigilant approach to the development and implementation of AI.

“Our priority is to continuously build digital trust and safeguard our customers

implementation, she said that IKEA has a signi cant AI-literacy movement underway.

“Technological innovations are evolving fast, and while we are excited by the possibilities, we will build on the strengths of the IKEA values in our e orts to create a better everyday life for many people,” she said.

INTEGRATION AND IMPLEMENTATION

rough the integration of AI into the customer experience paired with leveraged augmented AI in combination with electronic shelf labels (ESLs), Diego Mazzone,

We aim to use AI to empower our co-workers and augment their capabilities, creativity, and decision-making.

and co-workers against any risks that articial intelligence may pose. Our dedicated, interdisciplinary, and constantly growing AI teams are embedding our trustworthy AI principles into everything that we design so that the development, deployment, and use of AI are robust, auditable, interpretable, fair, inclusive, and sustainable. We are embedding IKEA values into our use of technology, right from the start,” she said.

To further improve innovation and

”president and CEO of JRTech, believes this technology now creates an Endless Aisle concept for retailers, allowing customers to access out-of-stock items through online ordering without the store needing to maintain large inventories.

“JRTech integrates AI into business management systems primarily through its AI-driven inventory management tools. ese tools help detect shelf gaps and ensure that inventory is always optimized in

The AI-powered IKEA Kreativ platform aims to help customers visualize how home furnishing solutions will look, fi t, and function in their homes through lifelike interactive design.

real-time,” Mazzone said. Additionally, he said JRTech utilizes AI-powered solutions such as Brain Corp’s Autonomous Mobile Robots and Focal Systems’ shelf-mounted inventory scanning cameras.

“ ese technologies help detect stock gaps, track inventory levels in real-time, and assist with restocking based on customer demand and promotions. Cobots (collaborative robots) minimize physical movement and support employees in stock management, reducing labour fatigue,” he said.

FLE

can now implement dynamic pricing strategies, adjust prices based on supply chain costs, demand uctuations, and regional pricing trends.

“Dynamic pricing allows retailers to o er more competitive and real-time prices based on external factors like tari s or supply chain changes, with the integration of augmented reality (AR)-enabled ESLs.”

AR overlays digital information onto the real world, while “AI provides the ‘intelligence’ to understand and interact with

These technologies help detect stock gaps, track inventory levels in real-time, and assist with restocking based on customer demand and promotions. “ ”

Tari s and unpredictable supply chains have also forced retailers to nd more ecient ways to stay on top of sudden price changes and shi s in inventory. rough the use of AI, Mazzone said the technology

that digital overlay and the real world. Customers can tap on product labels to get more information, view complementary products, or access how-to content,” he said, adding that AI-powered inventory systems

JRTech utilizes AI-powered solutions such as Brain Corp’s Autonomous Mobile Robots to help retailers autonomously manage their in-store inventory.

ensure customers nd the products they need, reducing stockouts and wait times. By utilizing AI-powered analytics, Mazzone said that his company has been able to provide retailers with valuable data on customer behaviour, which can be used to optimize store layouts, pricing, and marketing e orts. He said the company plans to enhance AI-driven inventory management systems and warehouse robotics to improve store operations.

“JRTech is pushing the integration of AR with ESLs, allowing customers to interact with products digitally and purchase outof-stock items,” he said.

e rising costs associated with loss prevention are also heavy on the mind of Mazzone.

In our rst quarter of HHIQ, Hardlines explored the ongoing impact of loss prevention on businesses. In this issue we report that the now costs Canadian retailers more than $3 billion annually, according to the Retail Council of Canada. Additionally, Statistics Canada data showed that in 2023, shopli ing increased more than 18 percent.

Mazzone believes that AI technology used to monitor store security through cameras, identifying potential the or unusual activity in real-time, has the potential to signi cantly reduce these numbers in the future.

IMPLEMENTATION AND ADOPTION

Looking ahead, Mazzone predicts some moderate adoption resistance. He said that some retailers may be hesitant to adopt AI technologies due to costs or perceived complexity.

He said this can be addressed through o ering seamless integration and clear, measurable bene ts. He added that while automation might also raise concerns about job loss, JRTech emphasizes that AI and robotics assist employees by taking over repetitive tasks, freeing them up to focus on higher-value work.

Shi s in the economy and supply chains that would otherwise impact a retailer’s

bottom line can also be mitigated through the use of dynamic pricing and inventory management tools to ensure retailers can stay exible and responsive to changing conditions.

“By continuing to integrate AR with ESLs, JRTech is pushing to expand the phygital experience, merging physical and digital shopping to enhance customer engagement,” he said.

BUILDING A FUTURE WITH AI

Like most industries, AI is now at the forefront of construction in Canada. Already utilized for the planning of electrical and plumbing in homes, AI is now a key tool in site planning.

Vancouver-based Unlockland is at the forefront of addressing Canada’s housing challenges, particularly in areas of urban intensi cation and in- lling. AI can also level the playing eld when it comes to home construction, allowing more people access to the opportunity to build their own home with technology that is accessible to the home builder and homeowner.

“Our platform automatically interprets complex zoning regulations and instantly identi es compliant development possibilities, eliminating tedious manual research that traditionally takes months. Just as the post-war government created innovative solutions for housing veterans, our AI agents generate value-maximizing development plans by automatically adjusting building layouts, unit mixes, and density while ensuring full compliance with local regulations,” said Lucas Xie, co-founder and chief product o cer at Unlockland/ Meton AI Inc.

He said this technology directly supports Canada’s goal of doubling housing production to 500,000 units annually by identifying underutilized properties that could support contextually appropriate density.

Xie noted that home builders and contractors, particularly smaller rms, are o en excluded from major development opportunities. is technology can identify

viable projects with our instant site analysis feature.

“ ey can compare multiple development options with adjustable parameters and leverage our one-click professional documents for stakeholders and authorities— capabilities previously only available to large, well-resourced developers,” he said.

In cities, meanwhile, AI can use predictive permit success rates and zoning compliance features to implement progressive housing policies, ensuring equitable distribution of new housing and accelerating approval processes for projects that meet community needs.

Individual homeowners can also explore development potential through our intuitive 3D visualization tools.

“Canada faces an unprecedented housing crisis disproportionately impacting younger Canadians, newcomers, and Indigenous communities. Our technology addresses these challenges by lowering barriers to development participation, particularly for those historically excluded from wealth-building through real estate. As government policies aim to correct long-standing market failures, UnlockLand provides implementation tools that ensure these reforms translate into actual housing units for all Canadians,” he said.

Xie believes that AI-driven intelligence helps transform months of complex analysis into minutes of actionable insights, perfectly aligned with the need to accelerate housing development under programs like Build Canada Homes (BCH).

Additionally, he said his technology can be incorporated into new federal incentives for construction that can reduce both costs and emissions, similar to how he said BCH will prioritize Canadian technologies and resources like mass timber and so wood lumber.

“ e housing crisis requires participation from all Canadians, not just established developers. e traditional housing development model has concentrated power in the hands of large rms with the

Vancouver-based Unlockland automatically interprets complex zoning regulations and instantly identifies compliant development possibilities, eliminating tedious manual research that traditionally takes months.

resources to navigate complex regulatory systems and nancing structures,” he said, adding that AI fundamentally transforms this dynamic by democratizing access to sophisticated planning and development tools. “By lowering technical barriers and providing instant zoning analysis and development potential assessments, we’re creating pathways for historically marginalized voices to participate meaningfully in housing creation, ensuring the future of Canadian housing represents our diverse needs and communities rather than perpetuating the systems that created our current challenges.”

He adds that AI can be the catalyst for community-led development that builds not just homes, but social cohesion and environmental resilience.

“By transforming property development decisions that traditionally took months into minutes of actionable insights, we’re helping implement the vision of housing as a right rather than merely a commodity,” he said.

W TRUSS PLANTS CONSOLIDATING

There’s a changing of the guard among the truss manufacturing industry, as a generation retires

arren Cinquina is VP of operations at London Truss, in London, Ont. It’s an independent truss plant with one unusual aspect—it’s the only one in Canada that makes its own truss connectors.

Hardlines Home Improvement Quarterly interviewed Cinquina in his capacity as president of the Canadian Wood Truss Association (CWTA). We wanted to learn how Canada’s $2 billion truss industry was changing.

e rst thing we asked Cinquina was about the investment required to keep a truss plant up to date on technology.

“ e CapEx required for a truss plant is fairly big because of the amount of steel required as far as the tables, the presses, and the equipment to move large trusses,” Cinquina said.

“If you take our truss presses, which have been in operation now—some of them— for over 20 years, just to retool them is a big expense. When we retooled one press out of eight, it was $80,000. And the saws are three-quarters of a million dollars now because of the technology.”

Cinquina notes that, historically, some lumberyards have opened truss plants without really knowing how to run them.

“Now they’re starting to get it because they’re leaving truss guys to run truss plants,” Cinquina said. “But I remember when Cashway bought their rst truss plant near Peterborough [Ont.] decades ago. ey found out that the production culture is completely di erent. I’m not going to say that it’s easier to run a lumberyard but the skill sets to be successful are di erent.”

Nevertheless, the same challenge faces truss plants and lumberyards—retirement of the original owner-operator.

“You have a lot of cottage plants, momand-pop shops, from the 70s or 80s. ey might even be second-generation and ready to retire. Some of these plants, they’re in good locations, they’re strong plants, they’ve got great people. And consolidation really helps a lot of these employees in the industry. It’s not a bad or a good thing. It’s just an opportunity that exists.”

AEP: THE CONSOLIDATOR

It was inevitable that Canadian truss plants would eventually nd a consolidator. His name is Hadi Abassi and he was born in Iran. Arriving in Canada in 1982, when he was 26, he went to work at McDonald’s for minimum wage.

But he had grander goals in mind. He saved his money and, armed with a degree in mechanical engineering from Swindon Technical College in the U.K., he eventually saved enough in 15 years to plunk down

is publicly-traded on the TSX Venture exchange. And it’s just getting started.

AEP and Abassi are not coy about outlining their game plan for Canada’s truss, wall panels, and engineered wood products

“ You have a lot of cottage plants, mom-and-pop shops, from the sixties or seventies. They might even be secondgeneration and ready to retire now.

$45,000 to purchase a tiny truss plant in Nanaimo, B.C. It had revenues of only $95,000 a year.

Fast forward to today. Abassi’s company, Atlas Engineering Products (AEP), owns eight truss plants in four provinces. AEP

”industry. It’s a “fragmented industry populated by independents unable to invest in transformation,” AEP says on its website. AEP will bring the capital to the mom and pops, technology will be brought in, and Canada will become a world leader in the

Warren Cinquina is VP operations at London Truss, in London, Ont. It’s an independent truss plant with one unusual aspect—it’s the only one in Canada that makes its own truss connectors.

factory assembly of housing components.

That’s Abassi’s vision.

When he took AEP public in 2017, Abassi says, revenues were $8 million. Revenues peaked at $61.9 million in 2022, before falling commodity prices post-Covid led to a 20 percent drop in sales in 2023.

AEP started acquiring truss plants in 2018, when it bought its second facility, Clinton Building Components, in Southern Ontario. Two other truss plants would follow that year: Satellite Building Components, in Eastern Ontario. And Pacer Building Components, in Southwestern Ontario.

In 2019, AEP bought South Central Building Systems in Carman, Man. In 2020, it purchased Novum Building Components, Abbotsford, B.C. In 2022, the company acquired Hi-Tec Industries, on Vancouver Island, just 17 km from AEP’s original plant in Nanaimo.

A big deal was next. AEP acquired New Brunswick’s Léon Chouinard et Fils (LCF) for $26 million in cash. LCF generated $25.7 million in revenues in 2022.

Hadi Abassi’s company, Atlas Engineering Products (AEP), owns eight truss plants in four provinces.

Finally, in December 2024, AEP acquired 42 acres of land in Colborne, Ont., 140 km east of Toronto. There, AEP plans to build a high-tech housing components factory.

UNACCEPTABLE WAIT TIMES

One of the truss industry concerns that arose during Covid was delays in producing trusses. It was a question of too much demand during a homebuilding boom.

In P.E.I. during Covid, the shortages in truss plants required builders to wait for up to six months for their trusses, said Matthew Bowness. That was fixed by the opening, last January 2024, of a new truss plant, Island Structural Systems Inc., in Kensington, P.E.I.

Bowness is the general manager of the plant. The investors were helped by the Atlantic Canada Opportunities Agency (ACOA), which put a $2 million “repayable contribution” into the mix.

This is ISSI’s second year in business.

And the roof and oor truss manufacturer is already adding a second production line. Something that the original business plan didn’t predict until year ve, Bowness said. e 25,000-square-foot facility is stateof-the-art, with high-tech Simpson StrongTie equipment that builds a lot of trusses at a high rate of speed. e plant also makes laminated veneer lumber (LVL). ISSI opened with 18 employees at rst and now, with the new production line coming on-stream, that is expected to increase to 32 employees.

TIME STUDIES BEFORE INVESTING

Because the custom home business requires a lot of one-time only truss designs, it requires a lot of one-time-only setups.

“Back in the day, when we had just regular pucks and the metal tables, we could be 30to 45-minutes for the setup of one truss,” said David Sandke, operations manager of United Truss in Innis l, Ont., an hour north of Toronto. at was obviously ine cient. When the management of United Lumber (the owner of the truss plant, with three locations in Southern Ontario) decided to relocate their truss plant to Innis l in 2004, they made the decision to be the most high-tech plant possible.

Sandke said that management did a lot of time studies—and invested millions of dollars in technology. “Because of that investment, we turned 30 minutes into 30 seconds,” Sandke said. Now United Truss had four truss presses, which are frequently toured by those Home Hardware dealerowners thinking of setting up their own truss plants.

Matthew Bowness is the general manager of the new truss plant, Island Structural Systems Inc., in Kensington, P.E.I.

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FOR ONE HOME HARDWARE CUSTOMER, HELP REALLY WAS CLOSE TO HOME

When a customer experienced a medical emergency at Chemong Home Hardware Building Centre, the preparedness and quick thinking of its staff saved his life.

buy lottery tickets, and I’ve never won the lottery, but I won the lottery that day.”

John McKiernan was recalling a trip to Chemong Home Hardware Building Centre in Selwyn, Ont., that began like so many other visits he’s paid business to over the years. In a Global News interview, he recounted the moment everything changed.

“Everything is a blank; I don’t remember falling. I woke about three days later in intensive care in Peterborough.”

Despite wearing a pacemaker for 30 years, he had suffered a cardiac arrest outside the store. He’s alive today in part because Chemong is fitted with an automated external defibrillator and has staff members who are trained to use it.

Angella Demmell and Sharon Coupples were on the floor when word of McKiernan’s condition arrived. Demmell recalled hearing someone shout “Ange, CPR!”

According to Coupples, “I turned around, went and grabbed the AED, ran through the

“I He’s got a pacemaker; it’s telling me to shock him. Can we shock him? ” “

store as fast as I possibly could, went outside, and saw John on the ground.”

Demmell described her thoughts in the moment. “He’s got a pacemaker; it’s telling me to shock him. Can we shock him?”

By using the AED, the pair were able to keep McKiernan alive until paramedics

arrived. He celebrated his 64th birthday while in recovery in nearby Peterborough.

A post to the store’s LinkedIn profile acknowledged “it was a hard day for many but having staff trained in First Aid and

From l-r: Laurie Butt (John’s daughter), co-owner/GM Fred Sweeting, Angella Demell, John McKiernan, Sharon Cupples, Jacquie Morgan-McKiernan (John’s wife), and his grandkids, Jacob and Katelyn Dillon.

which also creates a safer environment for both your customers and your coworkers.”

The machines, they added, are a lifeline in situations “when every second counts.”

CPR, along with having an accessible AED machine in-store, made a life-saving difference in this emergency situation.”

The store’s management stated they “highly recommend training your employees, so they can provide critical support while waiting for professional help to arrive,

Dealer-owner Terry Jenkins is proud of his team for rising to the occasion. “You never know how people might react in a difficult situation and I’m really grateful for how Angella and Sharon and responded because they were really professional and calm—and thank God for that, or else that man wouldn’t be with us today.”

BULKLEY VALLEY HOME CENTRE TELKWA, BC

WOLK CREEK BUILDING SUPPLIES, SYLVAN LAKE, AB

WOOD COUNTRY BUILDING SERVICES TISDALE, SK

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ALF CURTIS HOME IMPROVEMENTS PETERBOROUGH, LINDSAY, QUINTE, ON

NOVA SCOTIA BUILDING SUPPLIES BLOCKHOUSE., NS

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BUSINESS DEVELOPMENT MANAGER BRITISH COLUMBIA & ALBERTA 780-722-1870 | jreinikka@castle.ca Western Canada

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