HHIQ Q4 2022

H A RDL INE S.C A

C O N N E C T I N G

T H E

H O M E

I M P R O V E M E N T

I N D U S T R Y

FOURTH QUARTER / 2022

Geneviève Gagnon PRESIDENT, GROUPE GAGNON Québec

HOME IMPROVEMENT QUARTERLY

INTERVIE W

LA GRANDE

QUINCAILLERIE At ‘The Great Hardware Store,’ retailer Geneviève Gagnon chain lives up to its brand

AL SO INSIDE

ONBOARDING NEW EMPLOYEES

CONTRACTOR EVENTS

Five things you need to do to maximize retention of your most prized asset— your frontline staff

They’re back, they’re fun, A primer on pro events at your yard or store

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Why

• Are you a successful hardware retailer looking to retire?

Areyou youwant a successful hardware looking retire?

•• Do to avoid the hassleretailer of trying to sellto your

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

• Are independent and thinking you should introduce a

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

These questions are all answers to ‘Why ACE Canada?’ – and there are many unique situations, questions These questions aremore all answers to ‘Why ACE Canada?’and – answers.

Industries LP and ACE Canada invite you and therePeavey are many more unique situations, questions and answers. Peavey Industries LP and ACE Canada invite you your business and your team. Please reach out to us at your business and your team. Please reach out to us at unique situation. unique situation.

Not Available to Rona Dealers.

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INDUSTRIES LP INDUSTRIES LP

Are you you aAre dealer a dealer considering considering converting converting to the Ace to the Ace banner?

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We want to hear want hear fromtoyou from you too – and tooprovide – and can can with provide you the you with the information information you need you need while while highlighting highlighting the many the many joining the joining the ACE Canada ACE Canada family. family.

HOME IMPROVEMENT QUARTERLY

FOURTH QUARTER / 2022 • VOLUME 12, NO. 4 330 Bay Street, Suite 1400, Toronto, ON M5H 2S8 • 416-489-3396 @Hardlinesnews • www.hardlines.ca

PRESIDENT Michael McLarney mike@hardlines.ca

VICE PRESIDENT & PUBLISHER

EDITOR Steve Payne steve@hardlines.ca

MARKETING & EVENTS MANAGER Michelle Porter michelle@hardlines.ca

ASSOCIATE EDITOR Geoff McLarney geoff@hardlines.ca

ART DIRECTOR

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2022-09-08 3:47 PM

FOURTH QUARTER / 2022

CONTENTS

COVER STORY

LA GRANDE QUINCAILLERIE

DEPARTMENTS

9

An interview with Geneviève Gagnon, president of a Quebec building supply dynasty

50 66

PAGE 10

NEWSROUNDUP

EDITOR’S MESSAGE

What a difference a mentor makes PRODUCT SPOTLIGHT SPECIAL!

What’s new in ENDCAP

Lester Pearson’s summer hardware store

LEADERSHIP TRAINING

NEW KID ON THE BLOCK 18

MENTORS

A checklist of

RETAIL TECHNOLOGY

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FOURTH QUARTER / 2022

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EDITOR’S ME S S AGE

STEVE PAYNE, EDITOR

WHAT A DIFFERENCE A MENTOR MAKES Are you ready to teach what you know—by example, encouragement and instruction?

n recent years, two major home improvement retail leaders in this country have written books about their careers: Annette Verschuren, former president of Home Depot Canada, and Robert Dutton, former president of RONA. A decade ago, they both left their captainships of the two biggest home improvement chains in Canada. Now, having warts-and-all books from each of them is a real blessing.

Verschuren and Dutton added billions of dollars to their enterprises’ revenues and, between them, opened hundreds of new stores. They were charismatic and influential.

When I read their books, I was struck by how much help they both received in their early years. Both books (Dutton’s is currently available only in French) are chock full of mentors that crossed these leaders’ paths when they began their careers.

Mentors are indispensable. If you’re going to learn only by trial and error, you’re going to steer your car into a ditch

I

www.hardlines.ca

long before you obtain a fraction of the knowledge you need.

For this issue, we decided to ask a few more industry leaders about their mentors.

The testimonials—in their own words— start on page 24. We sincerely appreciate the recollections of Mitch Wile, president of The Cedar Shop, Calgary; Bernie Owens, president and CEO of TIMBER MART; and Matt Wachter, store manager of RONA Kelowna.

Our three industry veterans share stories about 12 individuals who provided vital mentorship when they were just starting out. And some of their mentors are still providing counsel to them today.

As the baby boom generation is retiring massively, is there any more important task for the old folks among us than trying to mentor young people?

Take a look around your workplace right now. Who needs your help? Who has great career potential that you could help them unlock? Do you really have anything more important to do?

“

As the baby boom generation is retiring massively, is there any more important task than mentoring?

”

steve@hardlines.ca

Hardlines Home Improvement Quarterly

FOURTH QUARTER / 2022

9

NEWSROUNDUP OF THE HOME IMPROVEMENT INDUS TRY

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

ORGILL PRESIDENT GIVES UPDATE ON FILL RATES, PROMOTIONS uring Orgill’s Fall Online Buying Event at the end of August, company president and CEO Boyden Moore presented a virtual address to delegates and staff. He provided a wide-ranging update on the company’s performance and achievements, while offering his outlook on the rest of the year.

Moore said the Memphis-based hardware distributor’s year-to-date sales are up 10 percent but added that supply chain recovery is the company’s number-one priority.

Orgill does not intend to ease up on fixing that until it can return to its traditional service levels, which he said typically exceed 96 percent.

Moore expects to see fulfilment numbers get above 85 percent by the end of 2022, while Orgill will continue to work with its vendors to close the gap during the first half of 2023. “We are beginning to see sustained

D

improvement in our supply chain recovery,” Moore said. “Demand has moderated from the incredibly high levels that we experienced last year, and many of our vendors have improved their performance to us and that has led to this sustained improvement.”

For dealers managing their retail space, Moore predicts that, as customer traffic slows, promotional planning will become more important. “The challenges of the past two years have made promotion planning seem like a waste of time and money for many,” he said. “We see promotions being more important going forward, and we’re working hard to provide you with strong traffic-driving promotions to support your business throughout the second half of the year.”

Moore outlined a plan for four quarterly Online Buying Events to maximize promotions and assortment opportunities

Boyden Moore, president and CEO of the Memphis-based distributor Orgill, told dealers that supply chain recovery is the company’s number one priority. for retailers. The company will host one in-person market, its 2023 Spring Dealer Market, Feb. 8 to 11 in New Orleans.

CANADIAN TIRE ENDED Q2 WITH A LOT MORE INVENTORY One of the big challenges for retailers through the spring and early summer has been managing inventory. After scrambling through the winter to maintain inventory levels, falling purmany retailers with more product than usual.

That was the case for Canadian Tire Corp., which ended its second quarter with an additional $465.6 million in inventory, about 18 percent more than a year ago. Still, CEO Greg Hicks isn’t concerned about seeing the

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kind of excess inventory problems that U.S. retailers are experiencing.

“We feel good about our inventory levels and don’t see any meaningful margin risk or incremental markdown requirements to clear inventory,” Hicks told analysts on an earnings call following the release of Canadian Tire’s Q2 results. He noted that the total value of that inventory includes more than $260 million in seasonal fall and winter goods, which were ordered early to avoid supply chain woes.

Hardlines Home Improvement Quarterly

“Higher merchandise inventories at the to spring this year, and left us with some opportunities around spring and summer categories. We saw good movement on these products in July, once the warmer weather “I’m very pleased with our team’s ability to manage our inventory, especially considering what we’re seeing with large retailers south of the border.” www.hardlines.ca

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

BRIEFLY

FEDERATED CO-OP BOOSTS PRAIRIE DEALERS WITH NEW DISTRIBUTION CENTRE ederated Co-operatives Ltd. serves more than 90 hardware and building supply stores under its Home and Building Solutions division (HABS).

And the Saskatoon-based co-op continues to beef up its support for this sector.

The division’s wholesale sales in 2021 reached $451 million, up a healthy 24 percent from 2020, owing partially to the increased appetite for home improvement and renovation-related expenditures during the pandemic. FCL’s total sales at retail reached an estimated $644 million in 2021.

FCL has been investing in infrastructure to support its home improvement dealers.

For example, the Home Centre stores have been undergoing a gradual and ongoing revamp which includes expanding the back

F

end with more drive-through options, a nod to their growing pro customer base.

To further support growth of the HABS business, FCL has built a new LBM distribution hub near Regina. It has been operational since the end of January.

The new facility lets FCL ship to more than 60 local Co-op Home Centres in Manitoba and most of Saskatchewan. The hub stocks and supplies dimensional and treated lumber, rough lumber, OSB and plywood, studs, rebar, drywall, rigid insulation, shingles, and hardscaping products.

Federated Co-operatives Ltd. has built a new LBM distribution facility near Regina.

It has been operational since January.

TIMBER MART ADDS NOVA SCOTIA DEALER Inventive Construction Supplies in Dartmouth, N.S., has joined TIMBER MART. The dealer has been serving DIYers, contractors, and builders in the region with a wide assortment of hardware and building materials since 2015.

With continued growth, the store looked to partner with a group to provide it with greater buying power and brand recognition. Craig Humphreys is the store’s owner.

MAJOR DEALER IN LAURENTIANS TO JOIN BMR BMR Group has announced it will welcome a ning January 2023. Founded more than 90 years ago, Dagenais operates two locations in Quebec’s Laurentian mountains, in SaintSauveur and Sainte-Anne-des-Lacs. Owners Annie and Martin Dagenais oversee a team of 180 employees.

ACE SIGNS NORTHERN ONTARIO FARM SUPPLIES CO-OP Ace Canada has forged a deal with Thunder Bay Co-op in Thunder Bay, Ont., that will see the cooperative co-branded and presented as Thunder Bay Co-op Farm Supplies – Ace Country & Garden. Thunder Bay Co-op Farm Supplies opened in 1952.

RICHELIEU HARDWARE REPORTS STRONG RESULTS Richelieu Hardware reported Q2 revenues of $487.9 million, up 31.4 percent. Net earnings rose by 27.7 percent to $77.9-million, or $0.83 per diluted share. Canadian sales grew 17.3 percent to $292.3 million. And sales to Canadian retailers reached $55 million, up $9.3 million or 20.4 percent from the comparable period of 2021.

www.hardlines.ca

Hardlines Home Improvement Quarterly

FOURTH QUARTER / 2022

11

NEWSROUNDUP

TOP FOUR RETAILERS GREW 10.7 PERCENT LAST YEAR SAYS HARDLINES RETAIL REPORT hile the home improvement industry is characterized by a strong presence of a variety of banners, approximately two-thirds of the sales generated in the sector come from the top four retailers. And together, their sales grew last year by 10.7 percent, says the brand new 2022 Hardlines Retail Report.

The Home Depot Canada remains the largest home improvement player in Canada. It’s followed by Home Hardware Stores Ltd., which has now moved into the number two spot based on its growth in 2021. Next is Lowe’s Canada, whose business model, with its variety of banners including RONA, is different from that of its U.S. parent. Rounding out the top four is Canadian Tire.

While sales from all business units make Canadian Tire Corp. one of the largest retailers in Canada, its core hardware and home improvement sales, through its Canadian Tire Retail stores, are strong enough to keep this hardlines mass

W

merchant firmly in fourth position.

The 2022 Hardlines Retail Report analyzes the growth of the industry and establishes the size of the retail home improvement industry by sales, store numbers, and province. It also closely examines the industry’s top 20 banner groups, with a “banner map”

of the connections among the country’s buying alliances.

The exclusive 2022 Hardlines Retail Report is available to you today. To order your own copy of this essential PowerPoint-ready presentation, please email michelle@hardlines.ca.

CONTRACTOR SALES CONTINUE TO DRIVE RESULTS FOR BIG BOXES The aftermath of the pandemic continues to translate into steady sales for home strong Q2 earnings of the industry’s two largest players.

The second quarter results at The Home Depot showed the highest quarterly sales

customers during the quarter were up 13

quite as dramatic, the company came close

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FOURTH QUARTER / 2022

Hardlines Home Improvement Quarterly

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NEWSROUNDUP

QUEBEC DEALER’S APPLIANCES STORE IS A FIRST FOR RONA The new dedicated appliances outlet in Rivière-Rouge, Que., is the pride and joy of owner Eric Deslongchamps.

BRIEFLY

HUDSON’S BAY GIVES ZELLERS BRAND A REBOOT Hudson’s Bay Co. has plans to launch a Zellers e-commerce site early next year. At the same time, the company will expand the reach of Zellers spaces within its bricks-and-mortar stores. HBC opened a pop-up Zellers shop at its Burlington, Ont., Hudson’s Bay store in 2020, followed by one in Montreal the following year.

The retailer says it is looking to offer an experience that “taps into the nostalgia of the brand.”

HOME HARDWARE DEALER IN B.C. ADDS M&M FOOD MARKET

RONA dealer has opened a dedicated appliances store—the first of its kind in the RONA network.

Affiliate dealer Eric Deslongchamps already owns three RONA stores in western Quebec as RONA Deslongchamps. The new appliances outlet is in Rivière-Rouge, Que. The 5,000-square-foot building and 2,000-square-foot adjacent warehouse have been completely renovated, representing an investment of $500,000 which resulted in the creation of three full-time jobs. Customers now have access to an expanded offering of appliances with brands like Bosch, Frigidaire, Samsung, LG, and Whirlpool.

The goal of this new concept is to provide an improved shopping experience. The store is designed to showcase appliances and other products in fully-furnished indoor and outdoor living spaces. A wide range of products is on display, including high-end stoves and fireplaces, barbecues, kitchen cabinets, fashion plumbing items, as well as bricks and stones.

Customers can choose their products and leave with their purchases on the same day. Or they can take advantage of a

A

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high-end “White Glove Delivery Service,” which ensures that their purchases will be delivered within a few days. This applies to all products in stock, including hundreds of appliances models.

RONA Deslongchamps has been in business for over 80 years. Its stores are in MontLaurier, Rivière-Rouge, and Maniwaki.

“We listened to our customers and wanted to innovate to provide a shopping experience that meets their needs,” said Deslongchamps. “Through this new store concept, we want to show projects as a whole and inspire our customers.

But above all, we want to give them quick access to the products they need for their home or commercial projects, as well as a wide selection of appliances.”

“The retail market is constantly changing. Eric and his team have been able to adapt and stand out in a way that benefits their customers,” added Philippe Element, vice-president, RONA sales and dealer support at Lowe’s Canada. “We’ve been pleased to collaborate with their team and use our expertise to support their vision and growth plans since they joined our network of RONA affiliated dealers in 2006.”

Hardlines Home Improvement Quarterly

Century Home Hardware in 100 Mile House, B.C., held a grand opening in July, but with a twist.

Along with special pricing on a variety of products, the celebration featured some unconventional inventory. The store has also expanded its offering with an M&M Food Market Express section. The Express format allows retailers to carry a curated selection of frozen meals.

ONTARIO CASTLE DEALER CHANGES OWNERSHIP Goulais River Country Store, a Castle dealer in Goulais River, Ont., has changed owners. The location opened its doors over a decade ago owner Kenneth Peter Van Daele, who will operate it with his daughter Kendralyn.

CANAC HAS EYES ON MAGOG FOR A NEW STORE Canac is scouting for a location in Magog, in Quebec’s Eastern Townships. As far back as site in the city’s Omerville district. The project fell through when the transport minister failed to authorize the opening of a median on the nearby main street to assist vehicle access.

Nevertheless, the company remains in talks with the city of Magog to establish a store there.

www.hardlines.ca

“Ever since we expanded into hardware and retail, without limiting ourselves to contractor business, we have seen our sales and profitability grow.”

Patrick Willis Multi-store owner RONA Vermilion, Alberta RONA Goodsoil, Saskatchewan RONA dealer since 2018

DISCOVER THE ADVANTAGES OF RONA, VISIT

rona.ca/becomeRONA BE PART OF SOMETHING BIGGER

becomeRONA@rona.ca WESTERN CANADA

QUEBEC

Tony Perillo 204 218-5805

Pierre Nolet 514 213-9162

ONTARIO

NATIONAL Josée Desrosiers 418 391-7101

Glen Duczek 416 528-7131

ONTARIO & MARITIMES Scott Wilson 519 281-1824

NEWSROUNDUP

PROS TARGETED AS HOME HARDWARE’S PRIVATE BRANDS GET A REFRESH ajor retailers are redoubling their efforts to grow their proprietary brands and Home Hardware Stores Ltd. is no exception.

Home’s efforts have included a special focus on its contractor customer base.

Home Hardware Pro, which was rolled out in 2020, includes new products, features, and new website pages for pros. The retailer has been tying the brand in with its pro road shows that were rolled out to 10 individual stores in Ontario this year (see page 58).

Home Hardware intends to return to pre-pandemic levels of activity with its contractor base in future, with grouped trade shows that include three or four stores in an area. But expect these single-store focused events to continue as well.

These contractor-focused initiatives are also backed by a new brand called Cat. It leverages the Caterpillar heavy equipment brand name with a line of corded and cordless power tools and accessories. The products are made under licence by Chinese power tool maker Positec Tool Corp.

The introduction of the Cat brand for pros gives Home Hardware dealers a branding position against competitors with their own signature labels. It is analogous to the role that the Ridgid power tool brand plays at Home Depot, and the Flex line at Lowe’s Canada.

The Cat line joins Home Hardware’s venerable Benchmark brand, which was relaunched at the beginning of 2022.

That relaunch added more muscle to both the brand name and the power tools it represents.

Other brand updates have included Home Hardware’s private-label batteries.

That line’s Reactor brand has been replaced

by Omni. Even Home’s well-known paint

M

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Home Hardware is ramping up its proprietary brands. (Top) The new line of Cat power tools.

(Bottom left) Omni private-label batteries. (Bottom right) BeautiTone Barbie colours. line, which is owned and manufactured by Home Hardware, got tweaked over the past year. It dropped the hyphen in Beauti-Tone to a more simplified BeautiTone.

BeautiTone has been more aggressive in its partnerships and cross-promotions in

Hardlines Home Improvement Quarterly

recent years. Its latest alliance is with Mattel, the toymaker and owner of the Barbie doll brand. To celebrate the 60th anniversary of the Barbie Dreamhouse, BeautiTone has released a collection of Barbie-inspired paint colours. www.hardlines.ca

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TRAINING

F LE

NEW KID ON THE BLOCK 18

FOURTH QUARTER / 2022

Hardlines Home Improvement Quarterly

www.hardlines.ca

BY STEVE PAYNE

When you do find a talented new worker, you want to make sure they don’t quit in their second week. Or on their first day!

HHIQ asked Andrew Caldwell, HR advisory manager at Peninsula, an HR consultancy in Toronto, to tell us the five most important things you can do to onboard new staff and maximize their retention.

THE EMPLOYMENT CONTRACT “You should not have an employee set foot on the premises ready to work without a signed copy of an employment contract,” Caldwell said. “Because if the employee www.hardlines.ca

doesn’t work out and you have to part ways with them—or they leave on their own— you want to have the terms and conditions documented. For both the employer and the employee it needs to be transparent.”

With an employment contract, your new employee will know that they are working for a professional organization. A good contract specifies your formal job offer, pay rate, hours of work, job description, vacations, dress codes, termination or resignation procedures—and more. “It gets rid of that uncertainty,” Caldwell said, “which will help bring someone in.” Peninsula offers its clients legally binding employment contracts as drafts that are ready to fill in. They reflect employment standards law in each province.

“Employment contracts are so beneficial to a business,” Caldwell says. “They show the employee that these individuals that are hiring them are professionals.” That engenders a level of respect towards the employer which helps aid employee retention.

Hardlines Home Improvement Quarterly

FOURTH QUARTER / 2022

19

TRAINING

2.

SAFETY

F LE

“

Never have an employee set foot in your store ready to work without a signed employment contract.

TRAINING

“A home improvement store is a minefield of safety hazards for workers and customers. Safety training needs to be the first thing, after an employment contract, that you offer to your new employee,” Caldwell said. Statistics show that new employees are much more likely to be injured on the job than more experienced workers.

Safety training in the home improvement

store includes hazardous materials training, forklift training, working at heights protocols, and more.

Caldwell emphasizes that one of the most important aspects of safety training is to teach employees that they have the right to refuse unsafe work conditions. “In each province there are bodies of worker protection rights,” Caldwell said. “You

GETTING HR ADVICE “The HR Advice Line is a 24/7 service from Peninsula. There is no minimum or maximum number of calls that you can or must make. We are here to answer virtually any employment related question. If you have something like recruitment or selection, which is not part of our service, we can still have a conversation about it.”

Almost any type of HR question can be asked on the Advice Line.

Peninsula urges their clients to document all their discussions with employees about performance or procedures. A common question asked of that question emphasizes the importance of Step #1 in this article, getting a signed employment contract that spells out the employer’s responsibilities in case of termination.

Ministry of Labour inspectors across the country to spot check the tens of like the corporate giants, have legal counsel and procedures that ensure they follow the law on HR. But smaller businesses like hardware and building supply stores may not even know they are not in compliance on HR legalities.

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FOURTH QUARTER / 2022

Hardlines Home Improvement Quarterly

”

never want to fall on the bad side of those individuals. You want to make sure your workers know their rights around safety.

And that you have a safe environment.”

Some safety training comes with a cost to the employer. Caldwell says that “Peninsula will provide its clients with documentation to have new employees sign that, if they were to leave early having received, say, forklift training, employees understand that they could have those costs charged back to them.”

3.

GENERAL

OPERATING PROCEDURES

“There are two types of general operating procedures (GOP) that need to be taught to a new employee,” Caldwell says.

There are procedures for the company and procedures for each role. “And you can’t have expectations for somebody in a role if you have not explained to them what those expectations are. We all have family members or friends who, when we talk to them, we assume that they know what we are talking about. You can’t do that with employees! Especially with new hires.”

Peninsula provides its clients with a general handbook that provides such organizational GOPs as dress codes, how to book vacation days, how to call in sick, what the progressive disciplinary actions are, and more. These are general operating procedures that apply to all employees. www.hardlines.ca

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TRAINING

4.

THE

HOW MANY OF YOUR EMPLOYEES ARE ‘DISENGAGED’?

PROBATIONARY PERIOD

You’ve got three months in any province where you can assess a new employee’s behaviour without having an obligation to pay them severance upon termination.

“Maybe they are a superstar at their tasks— but they are a toxic individual. You have to decide if you want to keep them,” Caldwell says. This is difficult to do on the spot without periodic “check ins”—or frequent mini performance reviews—to let both sides know how things are coming along.

Peninsula often helps clients set up these performance reviews.

Caldwell says: “People want feedback. And they don’t just want feedback that’s negative all the time; they want some positive feedback. Sometimes we, as managers, fail to give that positive feedback and we focus on the negative. Or we don’t give feedback at all because we get busy with other things.”

5.

MAINTAINING

EMPLOYEE FILES

One of the common mistakes made by employers is not to keep up-to-date HR files on their employees. “It’s time-consuming and detailed work to keep all that information updated,” Caldwell said.

Peninsula’s proprietary Bright HR software can help. It can be accessed by both employer and employee on a smartphone.

Per each employee, the software tracks key information like contact names, hire dates, seniority, absences, sick days, hours worked, vacation earned, and more.

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FOURTH QUARTER / 2022

F LE

One of the important buzzwords of modern HR is “employee engagement.”

Engaged employees improve your business. Disengaged employees damage it. Actively disengaged employees can destroy it.

We reached out to Scott Wright, executive director of advanced training programs at the North American Hardware and Paint Association (YourNHPA. org) to talk about employee engagement.

Wright cited an “Employee Engagement Data Study” by Gallup in the U.S., taken shortly before the pandemic, which surveyed all industries, not just the home improvement industry. The survey showed that 33 percent of American employees were “engaged” with their jobs; 51 percent were “not engaged.”

But even worse than that, Wright said, the survey showed that 16 percent of employees were “actively disengaged.” According to a Gallup press release, “Actively disengaged employees report miserable work experiences and are generally poorly managed.”

Note here that the blame for their poor attitude lands on their managers.

The elements of improving employee engagement include clarity of expectations, opportunities for development, and opinions counting at work. The NHPA has executive training programs for home improvement store managers—including those from Canada—who wish to increase their skills in increasing employee engagement, among many other skills. For more information email Scott Wright at swright@YourNHPA.org.

“

You can’t have expectations for somebody in a role if you have not explained to them what those expectations are.

Andrew Caldwell HR advisory manager, Peninsula

Hardlines Home Improvement Quarterly

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www.hardlines.ca

Industry Partner in Store Renovation “When we renovated our store, we wanted a look that would be friendly and welcoming. And we needed something unique to us. Dealing with BMF was a great experience.

They related to us.

They were creative.”

ARMANDO GIANNETTI Manager Preston Hardware (1980) Ltd. Ottawa, ON

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LEADERSHIP

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BY STEVE PAYNE

MENTORS We asked three of our industry’s leaders about their mentors.

Who influenced them in and out of our industry?

S

teve Jobs once said, “My job is not to be easy on people. My job is to take these great people we have and to push them and make them even better.”

Too hardcore? Well, it’s true that Jobs was famous for his frequent boardroom tantrums. Still, the man built the most valuable company in the world. So, there’s that.

Jobs learned his leadership chops back in the 1970s from hanging around with Nolan Bushnell, the founder of videogame giant Atari.

“Nolan wouldn’t take no for an answer,” Bushnell’s chief engineer would write. “And this was Steve’s first impression of how things got done. Nolan was never abusive, like Steve sometimes is. But he had the same driven attitude.”

HHIQ recently asked some leaders in our industry about their own mentors. Here are their testimonials in their own words.

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Hardlines Home Improvement Quarterly

www.hardlines.ca

President, The Cedar Shop, Calgary Next year, Wile will celebrate 50 years in the home improvement retail industry. He has been president of The Cedar Shop, a Sexton-affiliated building supply in Calgary, since 2015. Wile was hired to get the business out of a serious jam at that time by Bev Palko, widow of her late husband Jerry Palko with whom she had founded the business in 1978. Bev passed away in 2019, but not before she had seen Wile turn the business around—and build a new store.

The guidance provided by a mentor, especially an experienced person in a company or educational institution.

It is my belief that mentorship comes to you after you have tried something your way and it didn’t work out. Only then do you realize you require sound advice. I have encountered many people in my life that have shown me various things about business and life, some of whom were excellent leaders and some not so. I have learned valuable lessons from both.

First and foremost, I would like to thank my wife, Ann Wile. Without her patience and support all that we have would not be possible. At one point we were apart for over 18 months while I was working to save a business. This wasn’t from choice; we could not sell the property where we lived and we needed to wait before buying a new property in the new location. I also had employment where I travelled 200 days per year and Ann was at home raising our son.

My first workplace mentors were Jim Wilcox and Clarence Redden who co-owned Wilcox Home Hardware (now Windsor Home Hardware) in Windsor, Nova Scotia, www.hardlines.ca

and I worked for them for more than four years while attending high school. Clarence taught me so much about merchandising a showroom and I have used his ideas ever since. He was always on top of seasonal opportunities—some proved successful and some not. I asked him one time about a sale we’d had that basically didn’t work; why he had chosen this one? His reply was, “If I hadn’t tried the sale at all the fail rate would have been 100 per cent!” Don’t be afraid to try new things!

Jim Wilcox was a true gentleman who left an indelible impression on all he met. When

I met Jim at his 80th birthday party in 2005 it had been many years since we had talked.

His first words to me were: “God, Mitchell we sure had a lot of fun!” as he gave me a big hug. That we did, Jim. One of the things that Jim taught me was: the job of being in business does not have a clock. You either enjoy what you are doing—and being disciplined and

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LEADERSHIP committed to your work (or education or sports)—or you shouldn’t do it. Jim taught me how to deal with customers and staff from an owner/manager perspective.

I once overheard Jim when he had to fire an employee. Jim told him: “Some people

“

F LE Kenroc Building Materials in Calgary and Winnipeg. Here, I had the pleasure to meet Ken, surely one of the toughest, most honest and innovative owners ever in our industry.

(Editor’s note: Ken Sexton founded Kenroc in 1967 and, later, the Sexton Group.)

Even your best employee will let you down sometime.

were made to be in the hardware business and some were not. Unfortunately, your calling is something else.” The employee was so relieved that Jim was not upset with him that he admitted he had only stayed around because he didn’t want to let Jim down.

Ken Sexton was another mentor. I was employed with the Kenroc group off and on three times. My first 12 years were with

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”

One memory I have from Ken was the time he mentioned, in passing, why he was successful. My wife, Ann, and I were having a conversation with Ken and his wife, Bette. Ken said, “No is not an option; just a delay.” It never left me. And I have to admit, I wish I had been around Ken more, as he was brilliant. When we held our general managers’ meetings, I always sat right next to Ken and watched how he listened

Hardlines Home Improvement Quarterly

and made notes. I take my analytical skills from him to this day.

Bruce Bryan was a long-time employee of Kenroc who rose to become regional manager. On Bruce’s second day of employment, we went for a drive to discuss my role with the company. I told Bruce that I would be tendering my resignation as I had another job. He asked if it was anything he had done.

I replied no—that I didn’t even know him.

This 20-minute drive turned into a sixhour discussion about the business and what he was walking into. Bruce asked me to stay for six months. At the end of that time, if either of us was unhappy, he would help me find a job in the industry. I agreed.

And the rest, as they say, is history.

Bruce was the single most important mentor in my business career. This man opened the books on how to actually run a business. Lessons I use today when it comes to financial analysis and the importance of cash flow all came from Bruce. The practice of rewarding performance over longevity and being open with the financials with all your employees came from him.

When it came to dishing out discipline and standing firm on your morals—along with the ability to have empathy in the toughest situations—Bruce led them all.

I had to deal with serious addiction problems with some of our employees and Bruce’s counsel always led me in the right direction.

He made a comment I have never forgotten to this day: “Even your best employee will let you down sometime.” He made sure we all understood that looking at an employee’s total body of work teaches you to be able to coach the weaknesses and exploit the positives.

www.hardlines.ca

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ABOUT THE CONSULTANT

Kim Peffley Director of Organizational Development & Consulting, NHPA

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As a certified Everything DiSC® Facilitator and Consultant, Peffley uses her industry-specific retail management and leadership experience to offer professional training and support to retailers.

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LEADERSHIP

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BY BERNIE OWENS President and CEO, TIMBER MART Bernie Owens has been president and CEO of TIMBER MART since 2013. Prior to that, he spent 21 years at CertainTeed where he rose to become VP of sales. TIMBER MART is one of Canada’s largest LBM buying groups with members in multiple channels including lumberyards, building supply dealers, hardware stores, roofing suppliers, GSDs, commercial dealers, and more.

They’ve influenced me both personally and professionally and are, in part, responsible for who I am today.

My father, Mike Owens was a wonderful man with a strong work ethic and great attention to detail. Not only do I believe that he’s passed on those qualities to me, but he also taught me to play bridge at a young age which helped me develop my strategic thinking and memory skills early on. He also taught me to be patient and measured in my approach to work so that I would always have a good work-life balance.

As I got older and went into the workforce, I met Claude Morin, who was a partner at Morin Brothers Building Supplies in Nepean, Ontario. The business was a start-up at the time, and I learned just how much grit and hard work it takes to start and run a business. I saw the business grow

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from a jobsite trailer where a few staff would refurbish trucks and create price lists for products, to a larger distribution location with indoor storage and a massive supply yard. I also learned from Claude the importance of balancing available working capital and accounts receivables. Claude was an extroverted individual and his demeanor inspired me to overcome my introverted nature and be more outgoing.

“

Bernie Owens Someone who has—and continues to have—influence on me today is Jim Basile.

He’s a coach, psychologist and president of Leadership Coaching Partners. Jim specializes in executive coaching, team development, executive assessment, customized management, and leadership training. Jim has worked with me and many of my peers over the past two decades to recognize natural strengths and opportunity areas

I value the high-calibre leadership team I work alongside. I learn from them every day as they are top tier in their areas of expertise.

Another influential person in my career was Guillaume Texier, who is now the CEO of Rexel. I worked with him during his tenure as general manager at CertainTeed Gypsum Canada before he held senior roles within (parent company) Saint-Gobain. Guillaume studied at one of France’s most prestigious schools, École Polytechnique, and brought a fresh European perspective to business. It made me recognize that Canada has more a European influence on business practices than an American one.

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for self-improvement. Jim provides great insights and challenges me continuously to better myself.

Lastly, and most importantly in my role as president and CEO of TIMBER MART, I value the high-calibre leadership team I work alongside. I learn from them every day as they are top tier in their areas of expertise. They likely don’t recognize the positive influence they have on me, but they inspire me daily to do better for our members and provide them with the programs, tools and support they need to be successful independent entrepreneurs. www.hardlines.ca

LEADERSHIP

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“Mel Andersen would show me our operating statements and teach me how to read them.”

BY MATT WACHTER Store manager, RONA Kelowna Matt Wachter grew up in Victoria, B.C. and moved to Calgary after studies at the University of Victoria. He entered home improvement retail at Beaver Lumber and then moved to Revy Home & Garden. He now manages some 250 employees at one of the largest grossing big boxes in our industry, RONA Kelowna, B.C. The store is a two-time winner of the Outstanding Retailer Award for Large Surface Retailer (2016 and 2021).

I’d be remiss if I didn’t start with my biggest coach: my mother, Irene. She just turned 85 this spring. Mom taught me

about respect for people before anybody else did.

Respect. That’s one of the big challenges that we are dealing with—not just in the industry but in the whole world right now.

And I get it. A lot of people were forced to be at home for months. It’s almost like some people have forgotten how to socially interact with people again! My mom was a big believer in “mind your P’s and Q’s.” And I hear that inside my head every day at work! She taught me that you treat people with respect, no matter where they came from in life.

Mom also taught me about hard work.

She worked her buns off—she was a single mother for a time there, when we were very young. She just did what it took to make sure there was food on the table and a roof over our heads. To keep me out of the trouble she had me in every darn sport there was—baseball, football, rugby, soccer, you name it.

In time, I became the captain of some of these teams. I think it had more to do with my leadership attributes than it did with my skill level, to be honest! Eventually, I settled on football as my sport. And we had a junior

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team called the Victoria Hornets—this was the early 80s—that was coached by a man called Frank Hindle. He must have been about 70 years old at the time and he faced quite a challenge. Because we were all cocky 18- to 22-year-olds!

But Frank had a way. And he became another big mentor to me because of how he

Matt Wachter handled us. As my mother had taught me, he listened to us. He respected each of our opinions but then you knew, when it came time for a decision—even if you didn’t agree with that decision—that it was Frank’s call to make. And he made it clear to you that you were still valued. And I thought that was kind of cool.

Matt Wachter with his mother, Irene, who he says “taught me about respect for people before anybody else did.”

Hardlines Home Improvement Quarterly

www.hardlines.ca

has been “Sexton great for us.”

Our Business Development Manager saw my vision for expanding the business from day one. With the group’s support and volume pricing, we had the opportunity to branch out and get into new product lines. That grew the retail side of our business to the point where it’s now bigger than the wholesale side.

Working for our members every day.

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LEADERSHIP Frank’s secret was that he took the time to get to know each and every one of us on the team, whether you were the starting quarterback or the third string offensive lineman. He would come over and stand next to you when you were sitting on the bench… and he’d just talk to you. Get to know you, learn about you. Get to know what motivated you. And in this way he could make the decision on what best fit the team. The right person for the right

F LE

One of Matt Wachter’s mentors was Frank Hindle, his junior football coach in Victoria, B.C. Wachter says Hindle taught him the importance of listening to people. sure what I was going to do with my life. I was working as a part-time associate in the garden centre for $6.20 an hour.

But we had an assistant manager at the time—later a store manager—called Mel Andersen. Mel had an easy disposition, very

“

He would come over and stand next to you when you were sitting on the bench... and he’d just talk to you. Get to know you, learn about you. Get to know what motivated you.

position. That’s something I’ve taken with me from Frank for my professional career.

That’s what we say at the store: “right person, right job.”

When I graduated, I moved to Calgary to frame houses for a while. When I stopped doing that, I happened to see a position available at Beaver Lumber. It would put money in my pocket for a while. That was how I looked at it. And then the big box phenomenon hit Calgary. I went to work at the new Revy Home & Garden, still not

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”

approachable. Still, you knew he was the boss, he garnered that respect. For whatever reason Mel just took a shine to me. And he let me know that there was an opportunity for me at that Revy store. And more than just a job for beer money.

What Mel was doing, I realized later, was instilling in me—similarly to Coach Frank—that I had value. He kept telling me: “You can do this!” He promoted me into the management side of it. And he would share our operating statements—and this was back in the time when financial figures weren’t shared very much. He would

Hardlines Home Improvement Quarterly

show me how to read them. I would stay after my shift was over and he’d show me how to do a payroll report, how the P&L worked, where the expenses were, the gross margin, the bottom line, all the financial details.Mel instilled in me the belief that I could be a leader. I worked my way up to be his assistant manager and then, one day, I got promoted to be a manager of another store. It was a sad day when I left Mel’s store.

Now we are going through a transition here at RONA Kelowna. We’ve been so successful that some of our assistant managers have been promoted to manage their own stores. So we have to move more managers up.

And I try to instill confidence in them, because they are new and sometimes very raw.

I tell them: “Believe in yourself. I believe in you. But please, believe in yourself.” www.hardlines.ca

INTERVIEW

GENEVIÈVE GAGNON

INTERVIEW BY MICHAEL McLARNEY & GEOFF McLARNEY

LA GRANDE QUINCAILLERIE An interview with Geneviève Gagnon,

GENEVIÈVE GAGNON is the president of Groupe Gagnon, a

Photography: Annemarie Grudën

HHIQ

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Hardlines Home Improvement Quarterly

www.hardlines.ca

“

www.hardlines.ca

Environmentally, I do feel that we have to try to make a difference.

We have to do what we can as individuals and as companies to make sure the future is brighter.

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INTERVIEW

GENEVIÈVE GAGNON

“

Geneviève studied tax law at the University of Montreal in order to better grasp the complexities of some of the business deals she was involved with.

I could not be managing

”

Geneviève, thank you for joining us.

Groupe Gagnon is a great story—and also a family story. How long have you been involved in the family business?

As long as I can remember! I was born (in 1977) in our little house that was literally in the original lumberyard (in Chénéville, Quebec, 100 km northeast of Ottawa). There was no fence separating our house and the lumberyard. So, when I was about five or six years old—I was a challenging kid—I used to climb up the bundles of lumber on the trucks. They had to put up a fence! The house is still there—we rent it to employees who work at our Chénéville location. I can’t say exactly at what age I started working in the store because I was too young to legally work in the business!

You’re quite well travelled. Before you rejoined the family business, we understand you spent some time in Denmark and South Africa?

Well, actually, when I first started university (HEC Montreal, Quebec’s leading business school) I thought I wanted a career working abroad. So, I studied international finance; that’s what my bachelor’s degree is in. (Gagnon did a four-month internship in Copenhagen as part of her HEC studies.)

After I graduated, I went to work in South Africa and then Tunisia.

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You were seeing the world. But something drew you back home.

Was there a turning point or an “Aha” moment?

The turning point was working in Tunisia.

It was quite a challenging period. The

Hardlines Home Improvement Quarterly

context wasn’t easy. It took a few months to come back. My father (Yves Gagnon, who had started Groupe Gagnon from his father’s general store in Chénéville in 1973) asked me, “What do you want to do?” And I replied, “You know what? I want to work

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INTERVIEW

GENEVIÈVE GAGNON for you!” And that’s how it started. He gave me a mandate to evaluate one of his stores.

He gave me a week. He said, “We have to close that store.” It was a nightmare. We did close the store and relocated all the employees. Then I went to work at the head office of BMR. Geneviève returned to Groupe Gagnon in 2004 when Yves officially offered her the general manager position of the family business.

Groupe Gagnon will be celebrating its 50th anniversary next year. You’ve had an outstanding track record.

Tell us about the beginnings of the business itself.

Well, my Dad bought the family’s store in Chénéville in May 1973. (It had been founded by Geneviève’s grandfather William in 1942.) It was at that time managed by my grandmother because my grandfather had passed away. My Dad turned it into a hardware store with a lumberyard. The store had maybe 1,500 square feet.

As the business has grown, what do you think have been the strengths of Groupe Gagnon that have assured its success?

It’s hard to answer that question without being cliché but it’s our people. I could not be managing five stores—of a pretty decent size—without the great people we have that come in every morning like it was their store. And also, over the years, we have the legacy that my Dad has left in terms of the relationships we have with our vendors. We’ve been supported tremendously by them and especially through two-anda-half years of Covid.

way from the southwestern part of the province near Ottawa, to southeast of Montreal, north up to the Laurentians, and east almost as far as Gaspé.

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Hardlines Home Improvement Quarterly

Keeping those supply lines open has certainly been hard for everyone. And you don’t belong to a buying group, is that correct?

Yes, we have been independent since January 1, 2020 (when Groupe Gagnon left BMR).

www.hardlines.ca

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INTERVIEW Let’s talk about the stores themselves. Hardlines was at the opening

were ahead of your time, somewhat, in how you went to market.

That was in May 2012. And we opened another ecological store just a few months later in Saint-Jean-sur-Richelieu. It’s three times the size of Saint-André because of the market size there. We wanted to make a difference on several levels. We wanted to support our community. Environmentally, I do feel that we have to try to make a difference.

We have to do what we can as individuals and as companies to make sure the future is brighter. So far, people are worsening that future! As far as those stores, we didn’t want to have just a certification, a title in “green.” We wanted to actually be green.

And, for example, we rolled out electronic price tags to all of our stores. The first goal was to save trees, for the environmental side of it. It used so much paper every time we did price changes.

president of Groupe BMR from 1995 to 2015. why we are doing things this way and not that way.

built your family business and also was at the helm of Groupe BMR from 1995 to period before you rejoined the family business. In 2002 you enrolled at the University of Montreal for a master’s degree in tax law?

Yes (laughs). I don’t know what to say about this one (laughs). Actually, let’s get personal. If I weren’t doing what I’m doing right now, I would probably be a lawyer. I always wanted to study law! So why tax law? During my days before becoming GM of the family business, I was involved in many business purchases and buyouts. The one thing I don’t like is sitting down at that table and not being able to question and to really deeply understand what is going on!

So that’s why I decided to do tax law. To be more relevant and be able to challenge

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retailers in our industry there is not Yes, it’s a challenge for business owners in general. And the retail business is not that sexy. It’s a seven-day-a-week proposition— well, we are six days but that’s another subject—and it’s long hours, a lot of staff management. Our industry is not that technological. So to attract young people to work for us, that’s a challenge. On succession, for businesses (in our industry) there’s going to be a lot of questioning, for sure. For companies like ours there will be a lot of opportunities in the next few years. We will just see what (opportunities arise) and see if there’s a fit. If there is, we will try to make it happen.

Hardlines Home Improvement Quarterly

It’s good of you talk about my Dad because I wouldn’t be there if he wasn’t there before me. I mean, he’s just an encyclopedia—a great source of knowledge and experience that I still use every day (laughs). And I think both of us really enjoy our relationship and the way it has evolved during the years.

elsewhere, isn’t it?

Yes, it’s on the farm! His first love is farming, alongside my mom; they were 16 years old (when they met). They are celebrating their 50th wedding anniversary after tomorrow!

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2022-08-23 8:58 AM

INTERVIEW

Geneviève Gagnon gives full credit to her staff for their diligent emphasis

You’ve done a couple of interesting things

Evolution Structures started in 2010 (when the company acquired a roof truss factory in Saint-André-Avellin). Initially, it was only manufacturing roof trusses. Why we acquired the factory was to get into businesses that were fully integrated, in order to better serve our customers. Since then that company has exploded. Now we also manufacture floor trusses and wall panels.

We have three manufacturing sites, one in Outaouais (southwestern region of Quebec), one in the north shore Montreal area and one in the south shore Montreal area. We also wholesale and distribute lumber and building materials.

Yes, we do. Mainly for the manufacturing because, for the LBM distribution, I’ll talk now about Evolution Distribution, the other

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company we just started in 2020. All the members we have involved in Evolution Distribution have volumes large enough to buy direct so that’s what we do.

Well, Evolution Distribution is a member of Octo for hardware (buying). The customers we have at Evolution Distribution have 17 locations.

our knowledge. And sharing. It’s a very simple way of doing things. We do all of our importation, for all of us, through our distribution centre in Saint-Jérôme (north of Montreal). We have a couple of services that our members can use—or not use if they don’t want to. We have people there that answer the phones to help people whenever they need help. And negotiate for all of us.

No, they don’t belong to other groups. They are all independents. All in Quebec.

You are quite involved on a personal level—and as a company—with

But now we are seeing some regional Well, it’s a very simple business model. For these 17 locations, there’s no obligation to buy through Evolution Distribution. It’s just to put our volumes in common—and

Hardlines Home Improvement Quarterly

La Maison La Traversée is a palliative care home which we’ve built in Mont-Tremblant.

Palliative care is a very sensitive subject.

My sister is a doctor. Her husband is also a doctor in palliative care. So we are taught by the stories that we hear. Unfortunately, www.hardlines.ca

we know how it works in the hospitals, in the system… So we really felt that, when the need (for palliative care) in the upper part of the Laurentian region was explained to my Dad and I, we said, “Hey, we have to do something to help these people and help our community.” So that’s how it started.

What do you foresee are the changes in retailing on the front lines of your store over the next few years?

What I hope is that there is going to be a lot of improvements and changes to the tools that we can offer to our employees. But without losing our human touch. And I’ve been repeating this to our management team over the last five to ten years. We have to get more technological, more modern. But I don’t want us to lose our human touch! The challenge will be for our company to keep that balance between fast customer service and these tools that we will have to implement into our

Palliative care is obviously a growing need in our society—and it’s a cause that seems overwhelming when you look at the demographics of our ageing population.

Well, exactly. And as far as La Traversée, in English it means “To Cross Over” surrounded by loved ones. Before, people in Mont-Tremblant (seeking a palliative home) had to go to Saint-Jérôme or Laval or even to Montreal, which is quite far for families to visit every day. So we really felt we needed— and wanted—to make a difference.

New sides to the business? Probably, but not in a major way. There are some services that we’re definitely going to add into our stores, and to be more eco-friendly. As far as acquisitions, there are so many opportunities for sure. But we won’t neglect anyone or any store we have right now just to expand. So we will see what comes to us.

Want to listen to the whole interview?

Our entire conversation with Geneviève contains much more than this!

Hear the whole thing at www.hardlines.ca and click on PODCASTS. See page 64 for more information on the Hardlines Podcast Series.

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ES

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As far as store growth or acquisitions, do see any new sides to your business?

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IMPACT

stores—like self-checkouts… We have a few ideas and options that we will probably see on the table in the next few months.

CHAR

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THE ULTIMATE ROOM VISUALIZER? Roomvo’s ‘augmented reality’ platform is already helping Home Depot he Roomvo folks call it “the Imagination Gap.” Dealers see it all the time—and it costs them sales.

When it comes to choosing that flooring from a small sample, customers have a tough time imagining how it will look in their own home once it’s installed.

Paint manufacturers have dealt with this problem since… forever. The first

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computerized paint colour visualizers appeared in our industry some 25 years ago.

But back then, they were slow to draw and not very colour correct.

Augmented reality as a technology has actually existed since 1968 when a scientist at Harvard came up with it.

Now, the many visualization apps in the industry are fast, colour accuracy is

Hardlines Home Improvement Quarterly

uncanny, and the whole experience can be connected to e-commerce to capture that sale right now.

Take Roomvo, for example, a registered trademark of Leap Tools Inc., a Torontobased firm. The company calls Roomvo “the ultimate room visualizer.” Right now, it’s probably made its most significant progress in the flooring category. But it will also

www.hardlines.ca

work well on countertops, wallpaper, art and, yes, paint.

HHIQ spoke to Alexander Jones, senior partnering manager for the firm, about his company’s cool technology.

“With this visualization platform, customers can take an image of a kitchen or bathroom to see what different surfaces look like,” Jones said. “And with the call to action (over on the right-hand side of the screen) we can drive traffic to the retailer.”

Roomvo is in place in Home Depot stores, among others, and a significant number of major flooring brands are hooked up with it.

When a manufacturer signs up with Roomvo they get access to widgets for dealers, so that their dealer-customers can get with the program. There are currently more than 100 manufacturers participating in the program.

Ultimately, Roomvo isn’t so much a piece of augmented reality technology. It’s a “sales enabling tool,” Jones says.

As opposed to the first paint visualizer tools 25 years ago, when online sales barely existed, technologies like Roomvo incorporate the visualizer into the sales cycle.

Roomvo says in its marketing that “this shifts the conversation away from price and towards the value that a retailer brings to the table.”

The next question that obviously arises is: Where should the retailer have a visualizer—in store or on their website?

Roomvo’s marketing says: “It’s important that the retailer stops thinking about their “in-store” and “online” experiences as two separate things. The modern consumer expects a single, cohesive experience across all touchpoints. Part of that omnichannel experience must be a visualizer.”

Roomvo also markets its seamless approach to the sales cycle when a customer engages with the app. The customer never leaves the retailer’s website when using the platform.

www.hardlines.ca

These are all versions of the Roomvo ‘augmented reality’ platform in action.

The existing room (page opposite) can be

Visualization

Visualization

Visualization

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NEW STORES FROM LEE VALLEY TOOLS WILL TIE IN CLOSELY WITH DIGITAL SALES The speciality tool retailer is moving to a shipping network model ne retail company that’s had a strong online presence well before Covid hit is Ottawa-based Lee Valley Tools. The national specialty tool, gift, and seasonal products retailer has just 18 stores, but its reach online in both Canada and the U.S. is significant.

CEO Robin Lee says rising rents forced the company to shutter its only two stores in Toronto during the pandemic. Its store in Toronto’s pricey King Street West area was shuttered in 2020. Then, the Morningside Avenue store in Scarborough was closed in December of last year.

The closest Lee Valley stores to Toronto are now Vaughan, Ont., 45 minutes northwest of the city; and Burlington, Ont., 45 minutes to the west.

Still, as the world comes out of the pandemic, Lee Valley Tools is gearing up to open yet more stores. “We’re excited to get back on track with new stores,” Lee said.

These new, smaller-format Lee Valley stores will be built with a difference, Lee says. They will accommodate the important digital side of the business. “Every one has to be a shipping centre as well.”

Lee uses terms like “zone skipping” and “flex labour” as he explains what the new stores will look like. But the stakes are high: as service levels keep rising (for example, Walmart Canada is launching a pilot program to deliver groceries and home goods to customers in 30 minutes) along with shipping costs, the challenge is always to figure out how to compete against the likes of Amazon.

Lee Valley will use a shipping network model, which means a single product can be taken off a store shelf and shipped

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Lee Valley Tools shuttered two of its stores during the pandemic . But now, the retailer is coming out swinging with plans for new stores. Below right: CEO Robin Lee. cost-effectively. Lee explains: “It offers an improved service level for customers while at the same time it can balance the workload in-store when traffic is slow. It’s allowed us to really leverage our labour efficiency inside the stores.”

Another important advantage of the new system, says Lee, is that it will allow Lee Valley to find store locations that aren’t just based on street traffic.

The retailer is still in the development phase of its new format stores. Lee Valley will not follow a cookie-cutter approach in its new outlets. “We’re looking at the ability to tailor each store,” Lee says. “We’re working with Ernst & Young to imagine a greenfield retail model.” Lee expects the new look to be finalized within a year to 16 months.

Still, some details are starting to emerge.

The new stores will have a footprint of between 5,000 to 12,000 square feet, much less than the 20,000-square-foot size

Hardlines Home Improvement Quarterly

of a Lee Valley store today. “Size will be informed by the design project, and may vary somewhat from community to community,” says Lee. More importantly, he adds, these locations will provide an interface for customers to order online with the support of store staff, or serve as pickup points for orders made from home. “It’s not necessary to represent the entire product line,” Lee says. www.hardlines.ca

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HOME HARDWARE’S WAREHOUSES NOW FULLY ON-STREAM WITH E-COMMERCE ome Hardware has spent the past decade upgrading its distribution centres to better handle the huge flow of product that has to get out on a weekly basis to its 1,100-plus dealers nationally.

Now, its new warehouse management systems, up and running at all three distribution centres—in Debert, N.S., Wetaskiwin, Alta., and St. Jacobs, Ont.—can also handle the growing demand for online orders.

It’s the latest update of a continuous systems improvement that began a decade ago.

In 2012, the company began the process of migrating off its Oracle-based warehouse management system, which had been in place since 1990. Home Hardware is now using the Manhattan WMS, along with Dematic material handling equipment.

Together, these systems run the distribution centre operations.

This new warehouse management system increases the level of automation to optimize inbound orders and outbound deliveries while providing efficiencies in overall inventory management. It allows the warehouse team to increase product velocity, enhance order accuracy, and implement efficiencies within the supply chain.

Whether online orders are to be sent to Home Hardware stores for pickup there, or sent directly to the customer’s home,

H

“

John Dyksterhuis, Home Hardware Stores’ company’s new technology at its DCs is a competitive advantage for its dealers.

years as a buyer at Home Hardware but he actually got his start with the company in distribution, 36 years ago.

Home Hardware’s ship-to-home capability is a relatively new initiative. It went live in July 2021, with a phased rollout to the other two DCs that was launched earlier this year.

Dyksterhuis says some additional automation has been added to the St. Jacobs system, further enhancing the ability to

With the automation comes the accuracy of the picking process.

the new WMS is equipped to fulfill those orders. John Dyksterhuis, the company’s chief supply chain officer, took Hardlines for a tour of the St. Jacobs DC in June, where he explained the new technologies.

Dyksterhuis was well known for many

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”

manage supply chain and product flow.

“With the automation comes the accuracy of the picking process,” he says.

Over the past two years, many Home Hardware dealers saw their delivery schedule reduced. Deliveries that used to

Hardlines Home Improvement Quarterly

arrive twice a week were reduced to once a week. Dyksterhuis says this was not due to supply chain issues related to Covid-19. It was due to the limitations of the WMS as it was changed over to the Manhattan system.

Home Hardware Stores Ltd. has now re-implemented twice-a-week deliveries to its dealers. www.hardlines.ca

SHOPIFY CEO ANNOUNCES 10 PER CENT STAFF CUT: ‘THE BET DIDN’T PAY OFF’ ttawa-based e-commerce giant Shopify cut about 1,000 jobs, representing 10 percent of its global workforce, on July 26. This came after a second quarter in which the company posted a loss of US$1.2 billion, compared to a profit of US$ 979 million in 2021.

Shopify co-founder and CEO Tobi Lutke announced the cuts with a heartfelt apology to employees. He said management had believed that the post-Covid economy would continue to show high rates of e-commerce growth and so Shopify staffed up accordingly. “What

O

we see now is the mix reverting to roughly where pre-Covid data would have suggested it should be at this point,” Lutke said.

Shopify is not a retailer itself, but rather an online platform used by other businesses who choose not to develop their own platforms to sell online. Shopify is used by an estimated 1.7 million businesses in some 175 countries.

The growth in the e-commerce channel among North America’s bricks-andmortar retailers during the pandemic was tremendous.

For example, in its first two fiscal years under Covid-19, Home Depot’s digital sales essentially doubled. However, the world’s largest home improvement retailer reported an e-commerce sales increase of just 9 per cent in 2021—paling in comparison to the 86 percent e-commerce growth that Orange Crush achieved in 2020.

Lacking a bricks-and-mortar presence, Shopify found itself vulnerable when consumers were able to return to in-person shopping. “Ultimately, placing this bet was my call to make and I got this wrong,” Lutke said in his message to employees. “Now, we have to adjust. As a consequence, we have to say goodbye to some of you today and I’m deeply sorry for that.”

Shopify’s stock price on the TSX plunged 14 per cent on the day of the 1,000 job cuts.

UP TO

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BY GEOFF McLARNEY

Flooring&Trim S P O T L I G H T

Make a splash with Egger Aqua+ With up to 72 hours of complete water resistance, Aqua+ Laminate Flooring is the perfect solution for kitchens, bathrooms, hallways, and commercial areas where water is present. It isn’t even afraid of a steam cleaner for messier moments. Featuring an improved HDF core board consisting of a specialty selected wood mix and an increased glue-emulsion, Aqua+ has an optimized swelling it’s backed by a 20-year residential warranty. www.egger.com

Durability with a look that makes a Difference Difference combines the durability of a Stone Polymer Composite Core with 100 percent waterproof attributes, so there’s no need to cry over spilled milk. An attached IXPE acoustic pad softens all footsteps. Get lost in an array of modern plank and tile décors that will suit any keen eye.

Difference is backed by a 25-year limited residential warranty and a 10-year limited light commercial warranty. www.taigabuilding.com

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Hardlines Home Improvement Quarterly

www.hardlines.ca

FLOORING & TRIM SPOTLIGHT

AGT Effect Premium offers the aesthetics of natural-looking hardwood product. It’s an innovative design that offers all the aesthetics of a natural-looking hardwood product. Features include an L2C locking

problem either as it has been developed to work in those situations as well. With a plethora of

for even the most discerning purchaser. www.taigabuilding.com; www.agt.com.tr

SPC plank takes Luxury Vinyl to the next level Take a seriously innovative feature like a Stone Polymer Core and surround it with the ultimate UV and wear layers and back that durability with an attached pad. Then bring it to life with gorgeous decors and a beveled edge for a subtle feel underfoot.

This adept plank comes with a 20-year limited lifetime residential warranty and a three-year light commercial warranty. www.taigabuilding.com

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New look for wall and ceiling coverings Alexandria Mouldings has added three new

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Each issue of Hardlines Dealer News features: News to help store owners and managers stay current on the latest trends in their market; Tips for smart retailers who want to identify ways to manage their operations more successfully; Insights to help dealers hire smarter, merchandise better and manage more effectively; Concrete ideas for managing budgets, merchandising products and identifying best practices.

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THE DECORA SMART MOTION SENSING DIMMER automatically turns connected lights on and off based on motion. At night, lights can be set to come on at a lower level, or you can use the built-in Guide Light feature to provide soft illumination in the dark, perfect for basements, vestibules, and garages. www.leviton.com

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BY JOHN CAULFIELD

PRO EVENTS ARE BACK! With COVID mostly behind them, dealers are reaching out to their contractor customers in multiple ways

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Hardlines Home Improvement Quarterly

www.hardlines.ca

“

Maybe they come in and see we’re good guys, but they commit to more business.

W

”

elcome Back!

That was the greeting on the invitation that Hotham Building Materials in Windsor, Ont., sent out to pro contractors for a “customer appreciation” barbecue last June that Hotham hosted in its lumberyard. The one-day event, which ran from 11 a.m. to 7 p.m., drew around 900 people, including manufacturers’ reps, although vendor booths were not allowed.

“I didn’t want that kind of atmosphere,” says owner Charlie Hotham.

Because fewer customers had been coming through his showroom of late, Hotham says his company had to work extra hard to make sure the invitations got to the right people, with follow-up emails and phone calls.

As COVID-related restrictions on large gatherings have subsided, dealers and distributors are restarting their pro-oriented events, albeit some more cautiously than others. Turkstra Lumber, for example, once again is hosting barbecues at several of its yards on alternating Fridays. The attending pros buy tickets for $5 and the proceeds are donated to local charities.

Turkstra, says Dave Ovcjak, its general manager and sales director, also reaches its pro customers through appointment-only visits to its design centre in Stoney Creek, Ont., to view new products.

The residual impact of the pandemic is evident in Turkstra’s decision to stop www.hardlines.ca

sending its people to large trade shows, and to limit the fishing trips it hosts to smaller groups of pros. In a nod to social distancing, only two foursomes at a time started at the first and ninth tees of Turkstra’s recent golf tournament, at which the dealer served the contestants boxed lunches but in the future will bring back dinners. At the tourney, vendors provide products for prizes that were raffled, with the dealer’s co-owner Peter Turkstra matching the amounts raised for distribution to local philanthropies, such as City Kidz in Hamilton, Ont. Ovcjak thinks that pros prefer the intimacy of smaller events, and are also more comfortable again attending workshops, just as his company prepares to open three more design centres this year.

In Nova Scotia, HubCraft Timber Mart probably won’t restart its events for pros until next spring or summer, says store manager Marissa Roode. Pre-COVID, these included PK sessions, an annual barbecue in the store’s parking lot, and taking a booth at the local Home Show. Roode adds that she’s taking her cues about the restarts from what competitors are doing, and she’s already seeing movement in that direction.

Wayne Copeland, director of business development for Double R Building Products, a Sexton-affiliated dealer in Calgary that specializes in lumber, decking, and wall panels, says that while his store isn’t doing much event marketing, in June

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Charlie Hotham, a Sexton dealer in Windsor, Ont., says his ‘Welcome Back’ pro event attracted 900 contractors. it sponsored the local homebuilder association’s golf tournament, which attracted 220 golfers, of whom about 40 percent were builders, he estimates.

On July 15, Double R hosted its “Stampede breakfast” for 400 direct customers and

staff” to spare to organize pro events, says Brent Perry, president of Alf Curtis Home Improvements, whose three locations are headquartered in Peterborough, Ont. Perry said in July that he was looking to hire five more people.

“

We’ve traced this over the years, and have seen immediate spikes in sales three or four weeks after a contractor event.

their families. This was held at Calgary Stampede, the annual 10-day extravaganza whose attendance this year, approximately 1.2 million, approached pre-pandemic levels. Copeland notes that several of Double R’s vendors exhibited at Calgary Stampede.

LABOUR SHORTAGES Dealers say that the main obstacle to restarting pro-oriented events isn’t any COVID-related trepidation, but time and people. Roode of HubCraft Timber Mart says that busy contractors often can’t spare the time for leisure activities. And the industry’s labour shortage isn’t helping matters, either. “We don’t have enough

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”

Hotham laments that organizing events is tougher when you’re shorthanded. “Right now, I’m looking for a counterperson.

During the pandemic, I was behind the counter almost every day, and my son, who’s usually in the field, was making deliveries.

It took us months to find quality people who wanted to be drivers, warehousemen.”

Alf Curtis is reaching out to pro customers in new ways, namely through its e-commerce website, which went live in March, and an app that Perry hopes will be ready to roll out this fall. The website (which draws from Orgill’s’ distribution centre) allows pros to set up an account that links to their accounts receivable

Hardlines Home Improvement Quarterly

account. From the site, pros get customized pricing that’s assigned to their accounts, can see their orders and request deliveries. When it’s ready, the app will have the same functionality. Perry sees his company’s sales growth coming primarily from e-commerce.

There is little dispute that dealers, suppliers, and pro customers have been champing at the bit for face-to-face reconnections.

And while it’s hard to quantify precisely, dealers are convinced that pro events lead to more business. “We’ve traced this over the years, and have seen immediate spikes in sales three or four weeks” after events, says Hotham. “Maybe it’s because they come in and see we’re good guys, but they commit to more business.”

HOME HARDWARE PRO SHOWS Michael Gawtrey, director of customer relationship management and loyalty for the Home Hardware Stores Ltd., has been surprised at the interest among pro customers in making contact again with suppliers and seeing new products.

Pre-COVID, Home Hardware hosted big regional Pro Shows in arenas and convention centres, to which dealer-members would bring pro customers by the busloads. www.hardlines.ca

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Michael Gawtrey, director of customer relationship management and loyalty for Home Hardware Stores Ltd.

Each event drew at least 700 pro attendees, says Gawtrey. COVID prevented those types of gatherings, so last May and June, Home Hardware dealers in Ontario each hosted a Pro Road Show, with 15-19 vendor booths. Each show drew at least 200 attendees. One dealer had live music; the dealer in Orillia had a pig roast.

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The head office provided each participating dealer with marketing kits that included invitations, in-store handouts, flyers with roadshow specials, and the emails for each store’s contractor accounts.

Gawtrey notes that the health and safety of the dealers and their pros were paramount: all of the roadshows were held outside,

Hardlines Home Improvement Quarterly

and the booths were set up to encourage social distancing.

One of the participating dealers was Picton Home Hardware Building Centre, which carved out 25,000 square feet within its lumberyard for 19 vendors to set up their tents. Despite rainy conditions, this invitation-only event attracted more than 200 people, says Picton’s owner Adam Busscher.

Picton treated this event like it was a buying show. Milwaukee Tool supported the roadshow with a two-page flyer. And Busscher says there were “tons of giveaways” from participating vendors, including “swag bags,” chop saws, and other equipment.

The dealer registered each attendee so it could survey them later about what they liked about the event or would like to see changed. Busscher says that based on early feedback, he’d probably have fewer vendors at the next roadshow, and also have a prize draw, perhaps for a trip to Las Vegas that coincides with the National Hardware Show.

Gawtrey says that Home Hardware Stores will host roadshows next year, hopefully nationally. It’s already sharing ideas with interested dealers, like including food trucks and more giveaways. He adds that Home Hardware is thinking about a contest www.hardlines.ca

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PRO CORNER that pros attending any show across the country could enter. The buying group is developing kits so that dealers can host roadshows on their own.

VANCOUVER ISLAND EVENT For the first time in three years, Slegg Building Materials on May 6 relaunched its Contractor Pro Show at the Q Centre in Victoria, B.C. Slegg provided bus and ferry transportation to the event, which 90 suppliers supported, and which drew 1,400 contractors.

Steve Conroy, Slegg’s director of merchandising and supply chain, says that all the tool vendors offered show-only specials.

And the biggest prize was a $1,000 gift certificate for anywhere WestJet Airlines flies.

Conroy observes this year’s pro show wasn’t all that much different from past events, except for some precautions: mask wearing was encouraged (though not

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There’s nothing better for our staff than to be on jobsites and looking at blueprints.

mandatory), and there were hand sanitizers and safety signs “everywhere,” he says.

Slegg also offered pros a variety of training sessions that included architectural specification, flooring sound remediation, and trends in exterior cladding.

Outside of this event, Slegg Building Materials continues to reach out to pro accounts through ongoing vendor-supported training, “lunch and learn” PK sessions, “show and tell” new product demonstrations that are sometimes tied into parking-lot barbecues, fishing trips, and a popular annual golf tournament in Nanaimo, B.C. Combined, these efforts “are about familiarizing pros with our breadth of products, and exposing them to new things,” says Conroy.

And if dealers have learned anything from the past few years, it’s that staying in contact with pros doesn’t begin and end with splashy events; it’s the little, day-to-day

”

details that count just as much. For example, Alf Curtis’ delivery trucks arrive at jobsites with coolers of water and Gatorade to quench workers’ thirst. Perry notes, too, that his company has an eight-person team working out of a 2,500-square-foot office in Peterborough, that’s dedicated to his company’s 1,000-plus pro accounts. That team includes two estimators, two in-house designers, a truss builder, and two road salespeople.

Several dealers contacted for this article say that radio and social-media marketing kept their stores in front of pro customers during the pandemic. And now that travel and gathering restrictions have, for the most part, been lifted, Hotham says that his contractor sales staff is once again “very active” on jobsites, helping pro customers “put out fires” and attending to their needs. “There’s nothing better than being on jobsites and looking at blueprints,” he says.

Steve Conroy, director of merchandising and supply chain at Slegg Building Materials, says this year’s Pro Show drew 1,400 contractors.

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Hardlines Home Improvement Quarterly

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Get a new perspective from industry leaders.

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

What’s in Store 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

Geneviève Gagnon

An interview with the leader of a five-store chain of home centres throughout Quebec that goes to market under the brand, La Grande Quincaillerie (The Great Hardware Store).

Geneviève talks about her experiences growing up in the family business run by her famous father Yves Gagnon, president of Groupe BMR from 1995 to 2015. And how she is making her own distinctive mark on the business.

Marianne Thompson

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

Rebecca Gravelle

A chat with a woman who is on the front lines of retail at two Castle Building Centresaffiliated stores in Eastern Ontario—in Renfrew and Burnstown, Ont. Rebecca is both operations director and HR lead at these busy stores. She talks about the vital role of HR in home improvement stores today. Rebecca is a 2019 winner of Hardlines’ Outstanding Young Retailer of the Year Award.

Jim Inglis

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

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BY GEOFF McLARNEY

LESTER PEARSON’S SUMMER HARDWARE STORE D.A. Williamson and Sons is a blast from the past. It’s served the residents and outdoors enthusiasts on Manitoulin Island, Ontario, for 101 years—including one Nobel Prize-winning Prime Minister. here’s something old school about D.A. Williamson and Sons. Call it retro, call it traditional, even the music coming in over the sound system is wafting the classic strains of Steppenwolf, Janice Joplin, and Yes. It makes for refreshingly straightforward retail and fits in perfectly with the customer base. No wonder the store’s been around for 101 years.

The town of Mindemoya, Ontario, is roughly in the centre of Manitoulin Island, which separates Lake Huron from northern Georgian Bay. It’s the largest lake island in the world and is renowned for its hunting and and fishing.

The D.A. Williamson store started out in 1921 as an ironmonger, selling general hardware, wood stoves, and even lightning rods for barns. Today, the storefront bears yet another vintage touch, the PRO Hardware banner—which has not been active in Canada for a couple of decades.

Brothers Blaine and Barry Williamson are grandsons of the founder, David—or “Davy,” as he was called. Blaine looks after the sporting goods business while Barry manages the hardware. While the store has gone through various banners over the years, today it relies on wholesalers such as Orgill and Peavey, “and a few other sources here and there,” Blaine says.

He says the business has gone through many changes; he even recalls it selling gasoline, with pumps out front. But during World War II the logistics of complying with rationing measures became too onerous. “My grandfather said he got tired of working for the government,” Blaine

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D.A. Williamson & Sons still sports the PRO banner which has not been active in Canada for a couple of decades.

Blaine Williamson, grandson of the founder, is pictured at right. recalls, noting that the rationing programs at the time involved endless ledger entries.

“So, he got rid of the pumps. He had them torn out. After that, we even carried groceries for a while.”

Blaine recalls Prime Minister Lester Pearson coming up to Manitoulin Island regularly to fish. He would stay at Blaine’s uncle’s hotel, right beside the Williamson family home. “It’s funny. I thought it was natural for the Prime Minister of Canada to come stay all the time.”

Over time, the business tried other product lines, including for a time heavy appliances. In 1981, a second-floor addition was built, which became the home of the store’s sporting goods business. The Up Top Sports

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Shop features rods and reels, tackle, knives, and rifles.

When the store celebrated its 100th anniversary last year, Blaine’s daughter Jade, a graphic designer, created T-shirts for the store and his daughter Brittany sold them.

“She sold those shirts online all around the world. Over the years, we’ve had a lot of people come through this store.” www.hardlines.ca

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2022-08-23 9:18 AM