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FOURTH QUARTER / 2023

HOME IMPROVEMENT QUARTERLY

THE

ISSUE

PRODUCTS A L SO INSIDE

Buyers weigh in on the trends we can expect in 2024

SOCIAL STUDIES

BANDING TOGETHER

How independents are using social media to drive traffic

How an Alberta building supply built a superstar staff

The Orgill Advantage: Knowledgeable, Dedicated Reps

One of Many

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One of Many

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One of Many Clay Stenberg

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Jamie Adams, Tasha Birtch FAMILY BUSINESS FOUNDED

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—Ken Jenkins, President and CEO, Castle Building Centres Group

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FOURTH QUARTER / 2023 • VOLUME 13, NO. 4 330 Bay Street, Suite 1400, Toronto, ON M5H 2S8 • 416-489-3396 @Hardlinesnews • www.hardlines.ca

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V OL UME 13, NO. 4

FOURTH QUARTER / 2023

CONTENTS COVER STORY

MEET THE BUYERS...

AND LEARN WHAT’S TRENDING

DEPARTMENTS EDITOR’S MESSAGE

11 The digital divide: Three

26

tiers of e-commerce

I nterviews with 10 of our industry’s top buyers

78 BENDCAP oth sides now:

RONA’s urban store

PRO CORNER

NEWSROUNDUP

PAGE 12

RONA gets a new CEO, converts Lowe’s stores in Canada to RONA+ Home Hardware launches its Scene+ loyalty program

HUMAN RESOURCES

BANDING TOGETHER

KEEPING CONTRACTORS LOYAL at 68 Aprolookincentive

programs in Canada

an Alberta building 24 How centre has built a great team

At 45 years old, Lee Valley is still growing—and having fun BMR joins European alliance of home improvement retailers Organized retail crime is a growing concern Orgill steps up customer service with more Canadian reps

MARKETING

SOCIAL STUDIES three dealers 60 How are using social

media to build traffic Canac invests $200 million to expand Doing good: It’s good for business, too

FOURTH QUARTER / 2023

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EDITOR’S ME S S AGE

STEVE PAYNE, EDITOR

THE DIGITAL DIVIDE There are three tiers of e-commerce in the world of retailing.

As an independent, you are probably in the third tier—but there are things you can do to compete

T

here are three tiers to the world of e-commerce.

The top tier has only one member—and it’s a monster. At US$514 billion in sales last year, Amazon is approximately the size of the entire U.S. home improvement retail industry. That makes it 10 times larger than the Canadian home improvement industry.

The world’s largest (by far) e-retailer has recently rolled out Supply Chain by Amazon, taking aim at the wholesaler and B2B industries.

If you’re a hardware store, your topselling lines are already available from Amazon.

Let’s look at the second tier of online retailing. Two of the biggest players are the bricks-and-mortar giants: Walmart and Home Depot. Walmart announced that it did almost US$80 billion in online sales last year—or 13 percent of its total sales. Home Depot, which doesn’t disclose its online sales, is thought by analysts to do about US$22 billion online—or 14 percent of its total annual sales.

According to the Hardlines 2023 Retail Report, Home Depot and RONA do about

www.hardlines.ca

10 percent of their sales online in Canada, while Canadian Tire does more than eight percent.

The third tier of online retailers includes virtually every other bricksand-mortar retailer in our industry.

And their e-commerce numbers are tiny.

Independent retailers in our industry do an average of 0.1 percent of their sales via e-commerce, according to our annual Hardlines Retail Report.

So how do you compete online, if you are a 0.1 percenter?

Well, you can stop thinking you have to sell online yourself to have a digital presence. You can participate in the digital world through your banner group’s online inventory (like Home Hardware is doing)—and via social media. The latter is powerful and you can manage it yourself, or hire a specialist (or have your buying group do it for you, like BMR is doing).

Our feature story on social media for independents starts on page 60.

“

Amazon racked up US$514 billion in sales last year, the vast majority of it from e-commerce.

”

steve@hardlines.ca

Hardlines Home Improvement Quarterly

FOURTH QUARTER / 2023

11

NEWSROUNDUP OF THE HOME IMPROVEMENT INDUS TRY

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

RONA CONVERTS LOWE’S STORES TO NEW BANNER, CLOSES THREE BIG BOXES

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he takeover of RONA inc. by new owners, Sycamore Partners, a New York-based private equity firm, has provided new leadership and returned the company to privately-held status. But more changes were inevitable, including the likelihood that some Lowe’s and RONA stores would be re-evaluated in certain overlapping markets.

Sure enough, shortly after the deal closed early in February of this year, RONA inc. started making changes. It got a new CEO, Andrew Iacobucci, a 30-year retail veteran—the past 20 years in the grocery business—who replaced Tony Cioffi in June.

And it developed a strategy to manage the future of its 60-plus Lowe’s-bannered stores in Canada.

That strategy involved converting those stores to the RONA banner, but with a twist. The stores bear a new RONA designation, RONA+. The first 25 conversions of Lowe’s stores to the new banner took place between July and September in Ontario.

When those switchovers were completed, RONA announced its next nine Lowe’s to RONA+ conversions. They will be in British Columbia (Vancouver Grandview, Nanaimo, Victoria Langford, and Victoria Tillicum), Saskatchewan (Regina South, Saskatoon West), and Manitoba (Winnipeg East, Winnipeg South). The stores will remain open during the conversions.

“This is an important step in our vision for the future of RONA,” said Catherine Laporte, vice-president of marketing at RONA. “With these conversions, we are making a significant investment and renewing our commitment to the RONA brand.”

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One of the first conversions of Lowe’s Canadian stores to the RONA+ livery was marked with a grand reopening on July 27, 2023, in Niagara Falls, Ont. Laporte called the new banner “the first step in a wider plan aimed at redefining how Canadians shop for home improvement, creating new opportunities to improve how we serve them.”

Of the roughly 440 stores in RONA’s stable of corporate and dealer-owned locations, 61 were Lowe’s big boxes, although none were in RONA’s home province of Quebec, where RONA’s own big box stores—as well as a group of pro-focused Réno-Dépôt stores—are firmly established. As the Lowe’s stores are converted, Lowe’s products will continue to be available—and gift cards and warranties will continue to be honoured—in the new-look RONA+ stores.

The timetable for the conversion or disposition of the remaining Lowe’s stores in

Hardlines Home Improvement Quarterly

Canada has not been revealed. But as of press time, three big box stores in Ontario had been slated for closure. One was the Lowe’s in Vaughan, Ont., just north of Toronto, along with two RONA locations, one in Belleville and the other in London.

“To improve our impact on the market and be better aligned with customers’ needs, we conducted an in-depth analysis of our network in the Belleville and London areas, and decided to reduce our store footprint in areas where some locations were in close proximity to one another,” a spokesperson from RONA told Hardlines.

“We will be consolidating our retail and pro activities at selected stores in these areas, where the teams will keep serving local homeowners and professionals with renewed passion and dedication.” www.hardlines.ca

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

HOME HARDWARE LAUNCHES ITS NEW SCENE+ LOYALTY PROGRAM

A

fter more than a year of planning, Home Hardware Stores Ltd. has gone live with its rollout of its new loyalty program, Scene+. Customers can now collect points by using either a Scene+ card or a Scotiabank Scene+ Visa card.

“We are incredibly excited that Scene+ is now available at Home Hardware locations across the country,” said Kevin Macnab, president and CEO of Home Hardware Stores Ltd. Home Hardware joins a growing roster of retailers aligning themselves with Scene+, which started as a rewards program for Scotiabank customers to access free cinema tickets. Scene+ now boasts 13 million members across the country who access it through dozens of grocery stores, movie theatres, electronics stores, restaurants, play centres, pharmacies, banks, and travel companies.

“We’ve seen the stores respond in amazing fashion,” Michael Gawtrey, director of marketing, loyalty and CRM, pro and consumer at Home Hardware Stores, told Hardlines.

Home Hardware Stores Ltd. officially launched Scene+ on Sept. 7, 2023. The rollout had been planned for a year.

“We’ve really seen our stores embracing Scene+ and that’s exciting for us.”

Most importantly, the new rewards program will enable Home Hardware to learn more about what their customers want.

“Yes, loyalty programs do offer retailers the opportunity to leverage that data to better serve their customers,” said Gawtrey.

“Home Hardware, like other retailers, definitely has plans to be able to use that data to better serve our customers. Whether that’s service offerings, or product assortments, it gives us an understanding of how our customers shop and what they purchase. It’s important for us as a business.”

Home Hardware also recognizes the value of a good loyalty program for its contractor customers. Will Scene+ fit into that scenario? “We are definitely thinking about our contractors. They are a very important customer base for Home, as you know. So contractors are part of our future loyalty strategy. Some of that has not been brought to market yet,” Gawtrey said, adding that more details will be available in the future.

BRIEFLY BMR SIGNS GROUPE ANCTIL BMR Group has signed a Quebec home improvement retailer, Groupe Anctil, as its newest member. Founded by Joseph Anctil in 1935, the family business began with a general store and today is a major player in Quebec’s Eastern Townships, with stores in St-Denis-de-Brompton and Magog.

CASTLE SIGNS NEW MEMBERS Island Home & Garden in Gabriola, B.C., is returning to the Castle buying group after stints with other banners. In Edmonton, Everything Exterior, a locally owned building materials store that specializes in decking, siding, and stone, has also joined. And in Whitehorse, Castle has added a new member, Prefab Yukon, to its commercial building supplies division.

REAL CANADIAN SUPERSTORE TO SELL APPLIANCES A Real Canadian Superstore in Red Deer, Alta., is the latest store in the Loblaw Cos. family to add appliances. The program is being rolled out in partnership with Canadian Appliance Source using a store-within-a-store model. Loblaw announced its first foray into appliance sales in May at its store in Milton, Ont., and has since added the program to a store in Richmond, B.C.

BOA CONSTRICTOR FOUND IN CANADIAN TIRE A boa constrictor was found in a shrub at a Canadian Tire garden centre. Officials at the store in Calgary’s Richmond Square said the non-venomous snake was spotted by an employee. One staffer who is knowledgeable about snakes, the Calgary Herald reported, made a makeshift home for the snake where it could warm up until a proper home could be found for it.

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Hardlines Home Improvement Quarterly

FOURTH QUARTER / 2023

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NEWSROUNDUP

BMR JOINS EUROPEAN ALLIANCE OF HOME IMPROVEMENT RETAILERS

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MR Group, the Boucherville, Que.based buying group and wholesaler, has joined a major European buying organization. As part of the A.R.E.N.A. Alliance, BMR becomes that group’s sole North American partner.

A.R.E.N.A. is a Paris-based umbrella buying group of hardware and home improvement retailers (called DIY stores in Europe). The group is focused on sourcing, negotiation, and quality benchmarks for hardware, garden, and home improvement products. It also has offices in Shanghai, Ho Chi Minh City, Warsaw, and New Delhi.

Some of Europe’s leading independent DIY retailers make up the A.R.E.N.A. alliance: Groupement Les Mousquetaires (France), hagebau (Germany), Jumbo (Switzerland), Gruppo Bricofer (Italy), Dedeman (Romania), Pevex (Croatia), Maxeda DIY Group (Benelux countries), and now BMR Group in Canada. Collectively, the eight retail companies, which largely represent groups of independent dealers like BMR, account for more than 15.5 billion euros ($22.4 billion) in sales, and are located in 12 European countries plus Canada.

BMR had been in negotiations with A.R.E.N.A. for two years before joining. For the Canadian buying group and wholesaler, the deal responds to the direction in which many of the industry’s players are headed.

“When we look at the overall market, we see the biggest players getting bigger,” says Charles Grégoire-Béliveau, vice-president of merchandising at BMR Group. The alliance with A.R.E.N.A. helps level the playing field. “We were looking at joining something bigger so we can compete better in certain categories.”

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BRIEFLY

GILLFOR TO DISTRIBUTE TRUS JOIST Gillfor Distribution has partnered with Weyerhaeuser to distribute the manufacturer’s line of Trus Joist engineered wood products in western Canada. The line will be distributed through Gillfor’s six DCs from British Columbia to Manitoba. Earlier, Gillfor signed a deal to distribute lines by Tando Composites.

CLOVERDALE UPGRADES PLANT, OPENS DC

Charles Grégoire-Béliveau

Cloverdale Paint has made upgrades to its Surrey, B.C., manufacturing plant and established a distribution facility and warehouse in North Surrey. It’s invested in automated, high-speed paint processing which, says the company, more than doubles its decorative paint production capability. Cloverdale has also moved its finished goods DC and warehouse from Surrey to a new 60,000-squarefoot high-bay facility.

METRIE PLANS FACILITY Grégoire-Béliveau points out that the membership in A.R.E.N.A. will not mean BMR is going to have direct negotiations with the European offices of any of its domestic vendors—though he anticipates picking up important merchandising and packaging ideas. Rather, BMR will continue to support its relationship with ILDC, which works with the Spancan hardware buying group in this country.

The deal will be for products that A.R.E.N.A. sources overseas, such as outdoor living products, which are almost entirely manufactured in the Far East, often for private labels. “So we’ve found a good fit with buying better and sharing best practices among the other dealers,” Grégoire-Béliveau adds. The result, he says, will be broader assortments, better prices, and improved margins. “It’s good news for the dealers.”

Hardlines Home Improvement Quarterly

Millwork manufacturer Metrie is planning a new manufacturing facility in Woodbridge, Ont. The mill is set to be fully operational by year-end and houses state-of-the-art technology that will enable Vancouver-based Metrie to improve production of pre-finished moulding and trim, says the company.

AMAZON COMMITS TO 100,000 ELECTRIC VANS Amazon, the world’s largest online retailer, has committed to buy 100,000 electric delivery vans (EDVs) from Irvine, Calif.-based Rivian Automotive Inc. by 2030. Amazon already operates about 3,000 Rivian EDVs in North America. Amazon owns approximately 18 percent of Rivian and Ford owns about 12 percent.

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NEWSROUNDUP

45 YEARS OLD, LEE VALLEY TOOLS IS STILL GROWING—AND HAVING FUN

S

ince its inception in 1978, Ottawabased Lee Valley Tools has remained a family business. The company has 18 specialty hardware, tool, garden, and specialty products stores across Canada.

And building on its pre-internet roots as a mail-order catalogue seller, it maintains a considerable online presence as well.

The company’s founders, Leonard Lee and his wife, Lorraine, launched Lee Valley out of Leonard’s love of hand tools and woodworking. A civil servant before he launched the company, Lee was a brilliant promoter. He told the audience at a Hardlines Conference many years ago that the famous, and somewhat romantic, company name was something he made up because, well, it sounded cool.

Today, the company is led by the Lees’ son, Robin, as CEO, and president Jason Tasse, who’s been with Lee Valley for 25 years. (Robin took over as CEO in 2002; Leonard passed away in 2016.) Coming through the pandemic, a lot has changed, says Robin. “We’ve all faced challenges coming through Covid and had to make a lot of changes to adapt. But we’ve also had a lot of time to consider what’s changed and how to grow.”

“

Robin Lee, CEO of Lee Valley Tools, says the challenges of Covid also gave him and his team time to consider new ways to grow the company.

Robin has seen a lot of smaller hardware and tool manufacturers examine their businesses during the pandemic and decide they didn’t want to invest in the massive changes that technology and

A lot of specialty operations are selling out to larger aggregators or just closing their doors.

Lee Valley does a lot of its own product development and has its own manufacturing, under the Veritas name, right in Ottawa, where its head offices are located.

In fact, the company makes 30 percent of the products it sells.

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FOURTH QUARTER / 2023

”

post-Covid shopping behaviours have demanded of businesses. “A lot of specialty operations are selling out to larger aggregators or just closing their doors,” Robin says. “So we’ve been busy acquiring some of these companies.”

Hardlines Home Improvement Quarterly

The three latest acquisitions are Hock Tools, The Beall Tool Co., and Leigh Industries, all family-owned and all long-time suppliers of their product lines to Lee Valley. The production of these suppliers has been absorbed into the Lee Valley operations, “while protecting and preserving the proprietary products that these companies had.”

Lee Valley’s 45th anniversary has provided a chance to have some fun, such as a line of clothing—fleece sweatshirts that are made in Canada and baseball caps assembled domestically. The company is also marking its anniversary by offering instore workshops for $45 on subjects such as leatherworking and wood carving.

“The 45th is us practicing for our 50th,” Robin quips. www.hardlines.ca

“ We chose RONA to help grow our business and expand our stores’ footprints in our region. When we met with the team in 2010, it was clear RONA had an aggressive growth plan, so it made sense for us to join forces with them. Despite the challenges our industry faced and the changes that happened over the past few years, RONA has always been there with us to create sustainable growth for our business and to provide support. Since the start of our partnership, RONA’s commitment to that goal has never wavered”

Nancy Powell Quinn & D’Arcy Quinn, Moffatt & Powell Group

Dealer owners of 9 RONA stores

RONA London, Mitchell, Strathroy, Tillsonburg, Atwood, Exeter, Hanover, Seaforth, and RONA Grand Bend Since 2010

There are so many options for growing your business and increasing your market shares when you partner with RONA. We know the Canadian market because we’ve been around for nearly 85 years. Whether you’re opening a new store, expanding an existing store, building a new showroom, or consolidating your offering with other stores, we have the expertise to support your business goals.

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NEWSROUNDUP

ORGANIZED RETAIL CRIME IS A GROWING CONCERN

A

n ongoing increase in shoplifting linked to professional organized crime rings, often combined with violence, has executives in our industry sounding the alarm. The U.S.-based National Federation of Retailers has issued a report on organized retail crime (ORC) that says the problem is growing in scope and complexity.

Home Depot in the U.S. has said that shoplifting at its stores is increasing at double-digit rates annually. Much of this is related to big-ticket items that are stolen

and resold online by sophisticated shoplifting organizations. Last fall, 12 people were arrested in Windsor, Ont., and charged with shoplifting more than $700,000 in products in a series of thefts from the city’s two Home Depot stores.

The Retail Council of Canada talked about the different kinds of retail shoplifting scams at its conference on loss prevention earlier this year. Returns fraud is now a big business. Perpetrators can be individuals looking for a quick buck—or working as part of a returns scam ring.

E-commerce has generated its own types of shoplifting scams and frauds. Customers will complain that the item in their online purchase packaging is different from what they ordered. This is another type of scam occurring along the supply chain.

Independent retailers are taking steps to arm themselves against the new wave of shoplifters. Nova Scotia’s Jeff Redden, shortly before selling his Windsor Home Hardware and Windsor Home Furniture stores to Payzant Building Products earlier this year, installed a state-of-the-art video security system that cost almost $50,000.

“If [shoplifters] feel that Windsor [Home Hardware] is protected, they’re going to go where the lowest-hanging fruit is. They’re going to go where they don’t run into any opposition or any resistance,” he said.

UP TO

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Hardlines Home Improvement Quarterly

UP TO

www.hardlines.ca

HOME DEPOT’S ESG REPORT OUTLINES ETHICAL ‘GOALS IN PROGRESS’

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or many businesses, maximizing returns for shareholders is no longer enough. Corporate social responsibility, or environmental, social, and governance (ESG) reports are increasingly claiming prominence alongside quarterly results. Younger consumers, in particular, are interested in investing in—and working for—brands that prioritize the ethical impact of their business.

A study by market research firm First Insight found that Gen Z consumers (those born since the mid-’90s) take ecological factors seriously into account, to the point that almost three

NG™ H RE OL O

PE

R

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E

ES

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STR

by some 92,000 metric tons—equivalent to taking more than 20,000 cars off the road for a year.

In the “goals in progress” section, the report stated that all private-brand fibre packaging for new products will be compostable, recyclable, or contain recycled content by 2027. By the end of fiscal 2028, more than 85 percent of U.S. and Canadian sales in outdoor power equipment will run on rechargeable battery technology instead of gas.

A spokesperson for Home Depot Canada told Hardlines that “sustainability is a driving force behind the success of our business.”

G

IMPACT

quarters will choose to pay more for a sustainably produced product. Meanwhile, Nielsen has found that three-quarters of millennials will adjust their buying habits in relation to ecological concerns.

It’s not surprising, then, that many companies are complementing their financial updates with ESG reports. Take Home Depot. This summer, the retailer published its annual ESG report outlining progress on various environmental and socially aware pillars, ranging from production and supply to packaging and sourcing. In 2022, the company says, it reduced its carbon emissions

CHAR

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NEWSROUNDUP

ORGILL STEPS UP CUSTOMER SERVICE WITH MORE CANADIAN REPS

U.

S.-based hardware wholesaler Orgill has made investments to accommodate the strong growth it has experienced since the beginning of Covid. That includes expanding its field sales team by as much as 10 percent. Orgill already has more than 400 field service people working with its retailer customers in North America and around the world.

“We really put an emphasis on consultative selling,” said David Mobley, Orgill’s executive vice-president of sales. “We want our team of sales professionals to serve as an extension of our customers’ businesses—an extra set of eyes and ears to help them find ways to grow and improve their operations.”

And that includes the team in Canada.

Earlier this year, Orgill announced plans to expand its retail campus in

Collierville, Tenn. A large part of the expansion will include the construction of a 500,000-square-foot “Concept Centre.”

The new facility is expected to be completed in 2024 and will replace Orgill’s existing 250,000-square-foot Concept Centre in Olive Branch, Miss.

“Having access to a Concept Centre is critical to how we help our customers,” says John Sieggreen, executive vice-president of retail at Orgill. “The Concept Centre is a real-world retail laboratory, where we can build and test retail concepts. We use this facility for everything from building and experimenting with the model stores we set up at our Dealer Markets to setting up full categories or departments for our customers to see prior to implementing in their stores.”

CANAC INVESTING $200 MILLION TO EXPAND Canac is pursuing an aggressive growth strategy, with several new store openings in the works. It’s investing $20 million to open a 40,000-square-foot store in Sorel-Tracy, about 100 km down the Saint Lawrence from Montreal. The family-owned Quebec chain broke ground on the project earlier this fall, in anticipation of an opening next spring.

“We’re currently opening one or sometimes two outlets a year,” CEO Martin Gamache said in an interview with La Presse.

“We aim to do at least two and eventually a few more per year.”

Sorel-Tracy is just half an hour from Contrecœur, northeast of Montreal, where Canac opened its 32nd store, including a warehouse, at the beginning of this year following pandemic-related delays. That site anchors the Cité 3000 commercial hub, part

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of an extension to the Port of Montreal along its south shore.

Meanwhile in Magog, in the Eastern Townships, a planned Canac store is moving toward regulatory approval. Residents already approved a plan that would involve Canac assuming responsibility for a neighbouring strip of roadway. Rivière-du-Loup is another market in which Canac wants to put a new store. Work on that store 200 km northeast

Hardlines Home Improvement Quarterly

David Mobley

Orgill now operates eight distribution centres in North America, including one in London, Ont., with 6.7 million square feet of total capacity and more than 75,000 SKUs in each DC.

of Quebec City is expected to begin by early 2024, with an opening to follow in the fall. And the company has yet another new store in its sights, this one in Salaberry-de-Valleyfield, Que., 40 km southwest of Montreal. It’s scheduled to open in the middle of 2025.

All told, Canac has said it is investing $200 million in its expansion efforts over the next five years. In addition to store openings, those include a new fulfilment centre opposite Quebec City, on the south shore of the St. Lawrence River, this coming fall.

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NEWSROUNDUP

DOING GOOD: IT’S GOOD FOR BUSINESS, TOO

R

etail brands continue to find ways to focus on projects, initiatives, and causes that tie in with their communities while providing a focus for the philanthropic efforts of both customers and staff.

Take RONA inc. The giant home improvement retailer has redefined the mission of its charitable arm, the RONA Foundation. In the past, the foundation had worked to raise funds to contribute to the improvement of the lives of children and their families around the world—especially those living with disease, in poverty, or with disabilities.

Now, the foundation is continuing in a similar vein, but bringing the objectives closer to home. Its new mission is to improve the quality of life of Canadians in need by revitalizing their living environments or making it easier to access housing. In particular, the RONA Foundation aims to help victims of domestic violence and their children, low-income families, and people with disabilities or mental health issues.

“

“Housing is a basic need for individuals and families. We decided to focus our philanthropic efforts on this cause because we believe that by helping people in need to have access to a safe home and a healthy living environment, we can improve their quality of life and offer them a better future,” she adds. Given RONA’s role in the construction and home improvement sector, “It’s a natural choice for us to opt for this mission, which is perfectly aligned with our business operations.”

At The Home Depot Canada, doing good is also an important part of the corporate identity. The Home Depot Canada Foundation, through its Orange Door Project, is committed to battling youth homelessness. It provides funds to organizations working with youth at risk of—or experiencing—homelessness. By 2030, the company intends to have invested $125 million toward this cause.

But a good cause is part of the DNA of most retailers. Timberkids Charitable Foundation gives TIMBER MART dealers a platform to help give back to their local

We believe that by helping people in need to have access to a safe home and a healthy living environment, we can improve their quality of life and offer them a better future.

The RONA Foundation plays “an essential role in the vision we have for the future of RONA,” says Catherine Laporte, vice-president of marketing at RONA.

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”

communities. Every year, TIMBER MART members from across Canada make numerous donations to help their local children’s charities and Timberkids matches

Hardlines Home Improvement Quarterly

As RONA’s VP of marketing, Catherine Laporte recognizes the importance of strong community support. She says the RONA Foundation is an essential part of the retailer’s vision for the future. them. It’s an investment, the company says, in improving the lives of children and the well-being of future generations of Canadians.

And at Home Hardware, dealer-owners have worked with Tree Canada over the past 30 years to plant more than 30,000 trees in communities across the country.

That’s in addition to the many causes the retailer takes up both nationally and at the store level.

Examples abound in this industry of retailers doing good. At a local level, most stores find ways to give back to their communities and their customers in their own way. These efforts become a way to rally the community, inspire staff, and provide a balance of commerce and caring for store owners and their affiliated groups. www.hardlines.ca

Putting our members first in everything we do.

“

The Cedar Shop has been a Sexton member since 1993. Having the Sexton Group on our side has permitted us to compete in a very volatile market for many years. Today we are Canada’s largest Cedar showroom which would not be possible without access to the vendors and pricing that Sexton has made available.

Rebates are timely and in our hands, allowing us to use the funds to grow and improve bottom line profitability. Joining the Sexton Group is a sound business decision for your future.”

—Mitch Wile, President, The Cedar Shop

Hear about our story at

1.800.665.9209

Our Promise to You: Our strength as a buying group is built on four major advantages:

Learn about our story at

sextongroup.com

We’re a dedicated team of industry professionals focused on your success.

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

Driven by our member’s success.

HUMAN RESOURCES

F LE

Nicole Weatherbee and Josh Hengen took over the running of their parents’ building centre north of Calgary in 2018.

BANDING TOGETHER

How Josh Hengen and Nicole Weatherbee have built an unstoppable force out of their Sundre, Alberta, Home Hardware Building Centre staff

T

he first sign that Sundre Home Hardware Building Centre was a good place for the personal development of talent came almost 20 years ago.

That year, 2005, Josh Hengen got a promotion to the role of manager of the Home Installs program at the store.

What’s so unusual about that?

He was 16.

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But it made sense. In spite of still being in high school, Josh was a retail veteran.

He’d been in charge of barbecues, lawn mowers, and bikes at his family’s store 100 km northwest of Calgary since he was 14.

Today, Josh Hengen and his sister, Nicole Weatherbee, are co-owners of the family business. Their parents, Les and Michele

Hardlines Home Improvement Quarterly

Hengen, had bought the business in 1994.

After a quarter century of successful home improvement retailing, Les and Michele moved over to ranching full-time in 2018, fully confident that Josh and Nicole knew what they were doing.

Hardlines interviewed Josh and Nicole about the human resources practices that are a big reason for the store’s success. www.hardlines.ca

LIKE A FAMILY

One of the things that sets Sundre Home Hardware Building Centre apart is that the business has always treated its staff and customers like family.

A big family—there are 33 full-time staff and six part-timers.

Given that the town of Sundre only has 2,600 permanent residents, that makes the store one of the town’s major employers.

Maybe not the biggest, but one that matters.

Nicole is in charge of the human resources function at the store.

“How we operate the staff as a family here is really something that our dad started.

And Josh and I very much believe in it. Our staff knows that we have their backs. And so they’re far more apt to step up and have our backs, too! I often joke that we’re one giant dysfunctional family! We’re in a small town. We care about our people’s personal lives—we are invested in them at a personal level. I think that when you band together, that makes a really big difference in people wanting to stay with us!”

Six staff members have been with the business for more than 10 years. 13 staff have been at the store for between five and nine years.

Josh and Nicole try to spend a portion of their time training on the floor with their staff. They offer an RRSP contribution matching program, as well as a benefits package which includes coverage for dental, vision, prescription medications, and more.

That longevity of employment is not common in the retail world, Nicole admits, and it all stems for the “community-

“

The staff of Sundre Home Hardware Building Centre is truly a family. When Josh married Carlee in 2017, wedding photos were taken in the store.

OWNING THE TASK

Ownership of a job in its entirety matters, too, Josh says.

“The more ownership you can give the staff, the better. One example is with the truck drivers. When you tell them, ‘You are the main driver for this particular truck— as opposed to just rotating all the drivers through them—you find that the driver keeps it clean and organized.”

We care about our people’s personal lives—we are invested in them at a personal level.

minded atmosphere” in which the store operates.

The store also hires students and believes in providing a positive “first job experience.” www.hardlines.ca

”

In the 1970s, that method of treating employers with respect by making them responsible for their own actions was called “empowerment.”

It’s a term that’s fallen out of fashion but as Generation Z enters the workplace (people born between 1997 and 2014, between nine and 26 years old), it’s worth considering how you manage this age cohort.

“Do I really belong?” is a common theme among this generation of workers. Yes, you do. And we trust you and count on you, is an effective managerial style for this age group of workers.

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MEET THE BUYERS AND LEARN WHAT’S TRENDING

BY STEVE PAYNE & GEOFF McLARNEY

20 pages featuring interviews with our industry’s top home improvement buyers. Plus 25 products for 2024 curated by the editors from selected vendors.

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www.hardlines.ca

www.hardlines.ca

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P R O D U C T S

F LE team of buyers was set up to relaunch RénoDépôt. I was in charge of the paint, decor, storage and housewares categories. Paint has always been part of my core business; it’s a sector I know and master well, and above all, it’s a category I enjoy immensely.

What are some criteria for a successful vendor relationship with RONA inc.?

I’d say that openness, respect, transparency, and communication are the key values for successful business relationships with our suppliers. They facilitate negotiations and enable us to find common ground, even when discussions are not easy.

Marie-Yannick Carrière

What are you always on the lookout for, when it comes to introducing new vendors or products?

RONA inc., Boucherville, Que.

Right off the bat, I see four: innovation, problem solving, clear packaging for the consumer, well priced. To illustrate what I mean by problem solving, let’s take paint that dries quickly, is more washable, more

CATEGORY DIRECTOR, MERCHANDISING, PAINT

How and when did you get into your role as category manager at RONA? I started at RONA in 2012, when a new

durable, or different products for different applications, for example. Like wood stain that’s weather-resistant and can be applied to damp surfaces, or primers that correct marks left by water damage or smoke.

How do your dealers and managers inform you of their desires for specific products?

It’s pretty straightforward. We have a very efficient internal network, so I get information and feedback directly from store staff.

It usually stems from consumer comments and requests. I also factor in comments from our vendors as well.

Are there specific branded products that excite you for 2024?

We actually did a massive product line review just recently and introduced several novelties. There is obviously more to come in 2024, also coinciding with the postCovid effect, but for obvious competitive reasons, we cannot disclose any specifics at this stage.

Make fall clean-up easier on the user–and the earth Gardena’s Leaf and Lawn Collector is a quiet and eco-friendly manual solution for garden upkeep.

Designed with ergonomics in mind, it offers back-friendly operation as you effortlessly gather leaves and grass cuttings without the need for noisy machinery. With adjustable sweeping height, an integrated collection container, and a foldable design, it’s a space-saving alternative to raking. www.gardena.com

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Hardlines Home Improvement Quarterly

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P R O D U C T S

F LE

Can you name a couple of general consumer trends in your product area?

How and when did you get into your role as buyer at Home Hardware?

When it comes to paint, customers are looking for a quality product for maximum results. They are looking for a specific paint for a specific need. This requires guidance and advice, as customers are increasingly involved in their renovation projects, and paint is often at the heart of these projects.

We also offer environmentally-friendly paints for customers who want to minimize their carbon footprint.

I started with Home Hardware in fall 2020 but have been in a buying position for over 10 years.

What are some criteria for a successful vendor relationship with your firm?

Can you tell us something about you as a person, outside of work?

I love to travel with my family, and I am a foodie, I enjoy cooking. And, no surprise, I like to paint and test products, I’m a DIY enthusiast at heart!

Kristen Fromm

HOUSEWARES MERCHANDISE MANAGER

Home Hardware Stores, St. Jacobs, Ont.

I truly view all my relationships with vendors as a partnership. There must be openness and transparency between both parties to ensure that a strong partnership can be formed.

I’m always looking for partners who come to the table looking to drive my business, provide innovation, exclusivity, and competitive pricing. However, the partnership goes beyond the products and pricing—is the supplier going to provide cost concession when market shifts occur? Are they meeting

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Hardlines Home Improvement Quarterly

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A R E YOU R EA DY FO R A FA NTAST IC A DVENT UR E?

The North American Hardware and Paint Association offers programs and assessments to help you build the people side of your business and improve communication, reduce conflict and increase overall productivity.

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Ask her about getting started with a free one-hour consultation to get immediate feedback and advice for your business.

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P R O D U C T S

F LE

shipping dates? And, just as important, are they communicating in a timely manner when shipping dates need to be adjusted?

our dealers. They often will email or call to provide us with insights on products they are looking for. During our line review process, we also have several opportunities where we connect with dealers to get their feedback on our strategies and product assortments.

What are a couple of consumer trends in your product areas?

Are there specific branded products that excite you for 2024?

Can you tell us something about you as a person, outside of work?

I’m excited to see the growth of our private label assortment, MOSAIC, into the market. We recently introduced MOSAIC into our small appliances category, and it will complement the housewares items we updated in late 2022. I’m very excited with some of our new national brand partnerships within the small appliances line review, such as Swan Nordic and the Zwilling Enfinigy line of appliances.

I currently live in the Kitchener/ Waterloo area and love running and hiking our local trails with my daughter and pup year-round. Starting my career in the non-profit, fair-trade industry, I am thrilled to have found a position at Home Hardware, a Canadian-owned and -operated company supporting business owners across Canada that aligns with my values.

What are you looking for when it comes to introducing new vendors or products?

Innovation and newness in the marketplace.

At Home Hardware we want to provide the customers what they want and when they want it. Housewares is a very competitive category that changes often with fashion and innovation trends. We need to make sure that our assortment is providing customers with what they are looking for.

How do the dealers inform you of their desires for specific products?

We have ongoing open communication with

Customers are looking for items that do more with less. And multifunctionality is still a strong trend as well as the ongoing fashion trend.

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The Infiniti dial featured on both showerheads provides unlimited spray and coverage options so you can find the perfect shower to meet your needs. Simply slide the dial to seamlessly switch between spray modes with no pause in experience. The rainshower and handshower can each run separately or together for a customized experience. The handshower includes Moen’s Magnetix technology that includes a magnetic dock for easy release of the handshower and a secure snap back into place. www.moen.ca

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D-2917 Pub full page HHIQ_FINAL Updated Q3.indd 1

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P R O D U C T S

F LE I started in the retail industry right out of university. After store operations and marketing roles, I moved into merchandising. In 2019, I joined Home Hardware as the merchandise manager for fashion plumbing.

What are some criteria for a successful vendor relationship with Home Hardware?

Renee at the Base Camp of Mount Everest.

Renee Gratton

FASHION PLUMBING MERCHANDISE MANAGER

Home Hardware Stores, St. Jacobs, Ont.

How and when did you get into your role as buyer?

Firstly, having a category management mindset is imperative. As Home Hardware transitions from a wholesaler to an integrated retailer, we are looking for partners that can offer strategic product assortments.

Secondly, having the ability to provide our dealers with unparalleled customer service is unique to our business model. Creating relationships with and servicing our dealers so that they can serve their communities sets us apart. And lastly, having clear and transparent communication is always something that I have valued in my career.

What are you looking for when it comes to introducing new vendors or products?

Innovation and product development is something that I am always on the lookout for. Vendors that are focused on evolving their categories are key to long term growth for any business. New innovations can come in many different formats. It can be as simple as finishes and product design, to new materials or better functionality, to innovative technologies.

How do the dealers inform you of their desires for specific products?

We are in constant contact with our dealers and store managers. As much as we can, we get out to visit our dealers’ stores so we can get information from the people that are working directly with customers. The feedback that we get is imperative for us to ensure that we create the best programs and improve the quality of the products we

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Hardlines Home Improvement Quarterly

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buy. We have also created dealer advisory boards to get feedback on our strategic plans, program roll outs, promotional strategies, and more.

Are there specific branded products that excite you for 2024?

We have introduced Pfister faucets and you will start to see them on store shelves in the fall. Also in the faucet category, we have three new collections from Moen (Durani kitchen faucets and the Mikah and Beric bathroom faucets) as well as the Archdale bathroom collection from Delta.

Beginning in late 2023, we will have new programs for Klayr and Scott McGillivray bathroom vanities, which are exclusive to Home Hardware and are available in fresh new colours and styles. I’m also thrilled to

share the introduction of InStyle vanities–a private label program which offers affordable luxury.

What are some of the consumer trends in your product area?

There is a strong ’70s influence in home décor right now. This is coming to life with green hues in vanities, from light, soft greens to darker sage and olive tones.

Natural woods in light and warm midtones are also back in a big way. There has also been a shift from dark navy to softer shades of blue. This nature-inspired colour palette brings a calming atmosphere to the home. For faucets and product hardware, black is where it is at—from faucets to kitchen sinks, to cabinet hardware and shower doors. The big surprise is the

longevity of brushed gold. The market was not sure about the longevity of this finish but it is really holding its own and growing in popularity.

Can you tell us something about you as a person, outside of work?

My two great loves are animals and the great outdoors. As much as I can, I spend time hiking up in Northern Ontario with my dogs Max and Marley. Being able to unplug from technology and get outside with them is what reenergizes me. Ten years ago, I had the opportunity to hike to the Base Camp of Mount Everest. This was part of a fundraiser for a former retail employer and it was an experience of a lifetime. I hope to take on a new hiking adventure in the next few years.

A screwdriver with seamless connection TurnX Tools’ ULT Ultimate Multi Screwdriver is billed as the world’s first interchangeable impact bit and screwdriver system. Easy access bit storage provides a seamless connection between the screwdriver and power drive machines. The screwdriver is powered by quick-connect, double-end, colour-coded PHLiPBiT bits. www.turnxtools.com

Customized wood siding The Bespoke collection from Cape Cod Finished Wood Siding offers a wide range of options to suit any contemporary design. The new Brushed Face and Hidden Fastener help define the line. Can’t find the right look? Try a custom siding profile.

Add special lengths, pressure treatment, semi-transparent and new metal accents to finish off your project. Once the exterior of the home is complete, its time to move to the interior with Bespoke Shades, Whitewash, and Sugi Ban. www.capecodsiding.com www.hardlines.ca

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P R O D U C T S

F LE How and when did you get into your role as lumber buyer at Castle?

I got into this industry when I was graduating from Wilfrid Laurier University.

Maritime Lumber, a wholesaler on the East Coast, had a recruiting event on campus in 1987. Then I went to Angus Lumber, joined Weyerhaeuser, then I was at Eacan Timber, all in Ontario. I’ve been in the commodity lumber business for almost 37 years. I’ve been at Castle for just over 10 years.

What are some criteria for a successful vendor relationship with your firm?

Kelvin Johnston

SENIOR BUYER, COMMODITY LUMBER & PANELS

Castle Building Centres Group, Mississauga, Ont.

The term “partnerships” is often overused but for us—as a group of independent dealers—it’s really important. So, we are looking for a relationship where the group and the vendors both work together for our dealers. Everybody can be successful, at the

end of the day. Everyone has to make money to be around for the next month.

What are you looking for when it comes to introducing new vendors or products?

Well, there aren’t a lot of new vendors on the lumber side. But I would say our distribution partners have added a bunch of new lines. We are looking for products that will be very easy to sell at the retail level and make our dealers successful.

How do your Castle dealers inform you of their desires for specific products?

I would say I’m a little more old school—I still like to have people call me. Sure, I get lots of emails saying, ‘Hey, can you find this?

Can you find that?’ But I know from being a wholesaler in the ’80s and ’90s, if you’re not on the phone, you’re not doing your job.

The biggest thing is communication. Every

New finishes from American Standard Five of American Standard’s best-selling collections are now available in Matte Black and Brushed Cool Sunrise finishes. Studio S, Delancey, Town Square S, Townsend, and Spectra add a decorator’s touch to kitchens and bathrooms.

With a durable finish, they resist scratches and corrosion for lasting beauty. www.americanstandard.ca

Bendable straw sprays hard-to-reach spaces WD-40 EZ Reach features an eight-inch bendable straw which can be formed to reach the spaces that are hard to get to. Once formed to your liking, the flexible straw keeps its shape, leaving a hand free to work as needed. The penetrating oil and unique WD-40 formula is perfect for precision work, allowing the user to lubricate hard-to-reach areas or into tight spaces, such as under sinks, on garage doors, bolts hidden behind corners, and into machine parts. www.wd40.ca

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Who We Are

BMF is a family business, founded in 2003 to help Independent Home Improvement Retailers renovate their stores. If you’re planning to build a new store or renovate an existing one, we have all the expertise to walk you through the process from design to installation.

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P R O D U C T S

F LE

Thursday afternoon I do a weekly report to the dealers [on the direction of commodity prices]. I also summarize it in a little one minute video. I don’t rely on the lumber price reports, or other news sources—I do it myself. I talk to our vendors, whether it’s Taiga or the other big distributors, and I say, ‘Hey, how’s business for you guys?’

I talk to the dealers. I go on the road.

Communication is key.

In August 2020, the market went crazy, and then we collapsed down. Then in 2021, we did the same spike again. And I was

on the road and did a little tour of treating plants and saw that they were filled to the brim on lumber. And I thought, we shouldn’t have this much lumber at the treaters in June and I predicted that the market was going crazy. So a lot of it is personal observation and constant communication.

What are the trends that excite you for 2024?

In terms of lumber, I think we’re going to see more southern yellow pine. As productions come down at Canada’s mills, they are using

a bunch of the profits to buy mills in the U.S.—mills which are now large producers of yellow pine [framing lumber]. It is a much faster-growing product and it has bigger grain, so it really accepts pressure treating much better than our pine. It’s a fantastic looking product. In term of consumer trends, energy efficiency is the obvious one, right? Black window frames. Brass doorknobs are coming back again. Then there’s regional differences. For example, in Newfoundland, they prefer their pressure-treated lumber green, not brown.

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INTRODUCING HARDLINES PREMIUM What it includes:

aving a subscription to the weekly Hardlines H newsletter has always been the best way to keep in touch with the changes and trends in hardware and home improvement retailing.

And paying for the Hardlines subscription has always meant special benefits for you that our ordinary readers simply can’t get.

Every Monday morning, Hardlines provides up-to-date news, offer. insightful articles, and industry intel that no one else can kind Your ongoing support is important to us. I know it sounds of part are you makes n criptio r-Subs of corny, but your Membe our Hardlines Family.

4 Hardlines Weekly Report 4 Breaking News 4 HHIQ: 1 issue per office quarterly.

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Hardlines Premium Membership prices start at $545 plus tax and have packages that range from 1-3 people up to 100 people. Prices will be increasing in 2024 so sign up now to get your package at a discounted price.

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And now, the benefits of that Member-Subscription are stronger than ever. The savings you can get from the many other products we offer will quickly make up for the cost of your Member-Subscription. So please make sure your to company’s Member-Subscribers are up to date—and be sure

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OUR BRANDS Previously Hardlines Weekly Newsletter. This newsletter arrives in your inbox first thing every Monday morning.

Packed with the latest news, trends analysis, interviews with industry leaders, and statistics on housing and retail, we ensure our subscribers start the week fully informed.

Breaking News, an exclusive for Hardlines Premium Members. If something big breaks in the industry, you’ll be the first to know!

Hardlines Home Improvement Quarterly is an industry trade publication carefully designed to meet the needs of the modern home improvement decision maker. Each issue is filled with the latest trends shaping home improvement retailing. It provides the latest strategic intelligence on the industry’s top retailers and suppliers—what they are doing to gain market share, strengthen their operations and improve their position in the marketplace. And it tells stories about the independent dealers who are winning in their local markets.

Reach a targeted audience of home improvement managers and executives with Hardlines Classified Ads. Our Classifieds appear each week in our Subscriber-Member publication, Hardlines Weekly Report, which goes out to managers, executives, and leading retailers every Monday morning.

Your ad will also reside on our Classifieds page.

Hardlines Classifieds are immediate, affordable, and most of all highly targeted to the top talent within this industry.

The Annual Retail Report includes everything we know about the industry, newly expanded with more analysis and data than ever before! Featuring industry sales data as of yearend 2022 and up-to-date analysis of marketplace trends.

This is without a doubt our most popular “must-have” Report. This report contains proprietary information about the industry that’s not available anywhere else. We make it easy for you to plan—and to present your plans—for the year ahead. No Sales Director or Marketing Manager should be without this indispensable industry intelligence tool.

The Annual Market Share Report includes information on the market share in every store format, region and province.

This report features sales by province and region of every hardware and home improvement retailer in the country, market share broken down by store format, charts, and graphs to visually represent all data, and more!

As the only national event for the home improvement industry that is open to all banners and suppliers, we take great pride in being able to host top retailers and buying group executives from across the country, as well as leading wholesalers and manufacturers.

At the next Hardlines Conference, you will join your colleagues and customers for two incredible days of information and trends, as well as a fantastic networking experience. This year’s speaker line-up includes execs from RONA, Federated Co-operatives Ltd, North American Hardware & Paint Association, Altus Group and many more.

The next Hardlines Conference will take place in Charlevoix, Quebec, at Fairmont Le Manoir Richelieu from Oct. 21-23, 2024

FOR MORE INFORMATION SCAN HERE: Questions? Email michelle@hardines.ca

P R O D U C T S

F LE

Can you tell us something about you as a person, outside of work?

How and when did you get into your role as director of programs at Sexton?

I grew up in a small town called Norwood, Ontario, east of Peterborough. I’ve got five children. The youngest of my five is at Brock, taking international business.

The oldest went to Laurier, where my wife and I both went, and she’s a lawyer now. My one son was born with special needs—so that’s how I got into coaching sledge hockey, which I’ve been doing for 17 years now. I also coach soccer with my other kids. I love curling, usually go to the Brier every year, if I can.

And then last year, I took on coaching a wheelchair curling team, allowing me to combine my love of curling with support of disabled programs.

I used to work for Princess Auto in their retail division. I stayed in that role for about five years and then moved into purchasing with them in 1995. Then I spent about seven years in an entrepreneurial venture called The Northern Shop, where I was a minority shareholder. I was in purchasing and marketing.

For the next 16 years, I worked with a large LBM dealer in southern Manitoba, managing the location and overseeing purchasing. That entrepreneurial experience—and the ownership experience—has stood me in good stead.

What are some criteria for a successful vendor relationship with Sexton?

John Magri

After almost 30 years of purchasing, I can say that one of the things that makes a great

DIRECTOR OF PROGRAMS

Sexton Group, Winnipeg, Man.

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vendor is a desire to grow their business with us, to grow the relationship. The vendors that are most valued at Sexton are the ones that communicate with us, that are willing to work with us on the ups and downs for the long term. There are a lot of vendors out there that can make you some quick sales growth.

But the biggest thing is: where do they sit in terms of a long-term relationship with us?

How do your dealers inform you of their desires for specific products?

What are you looking for when it comes to introducing new vendors or products?

Now that the pandemic is over, we’re realizing that there’s certain categories and certain vendors within those categories that are really stepping up. In energy efficiency, and windows and doors, there are a lot of new things happening.

Regional preferences also have their role.

Some areas are moving from traditional roofing to metal roofing. Another trend is black trims, soffits, and windows. We are also seeing

We get a lot of inquiries from those who want to be a Sexton vendor. One of the first questions we ask is: do our members actually have an interest in buying from this vendor? Is it the right category? Does the vendor fit our profile? We are coast-to-coast and we have a great variety of members.

Does the vendor dovetail with their needs?

We are constantly reaching out to our membership. We will take any opportunity to get in front of our members. Our business development managers are a major source of vendor introductions and inquiries.

What are a couple of consumer trends in your product areas?

a move from traditional vinyl siding to higher end siding—such as James Hardie and also backed vinyl product. And we are seeing a huge array of colours and styles of siding.

Can you tell us something about you as a person, outside of work?

My passion for purchasing and buying— and finding a deal—has definitely been a part of my personal side, too. I’ve bought and sold sports and other collectibles for years—everything from hockey jerseys to movie memorabilia to coins. And I have made, at times, a decent return. I started off about 25 years ago selling coins on eBay. I’ve since given that business over to my daughter, but it’s definitely been a passion of mine. Just as I enjoy negotiating with a vendor on a program, I enjoy negotiating with a buyer over a game-used jersey.

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P R O D U C T S

F LE How and when did you get into your role as buyer?

I started in this industry at Schurman Building Supplies in Summerside, P.E.I., in 1975. I worked in many roles within that company. I joined Totem Building Supplies as a DC manager and moved to a buyer position in 1984. I left Totem in 1995 to join Home Depot as a merchant/ buyer. In 2000, I joined the TIMBER MART buying team as a buyer and then was promoted to vice-president of procurement in 2006.

What are some criteria for a successful vendor relationship with your banner?

Randy Martin

VICE-PRESIDENT OF PROCUREMENT

TIMBER MART, Calgary, Alta.

We value our vendor relationships and work hard to manage those relationships on behalf of our member-shareholders. I like to use the analogy that we work in a very consultative triangle with each of our

stakeholders—TIMBER MART corporate staff, vendors, and our members.

What we look for in our vendor partners are current and relevant products that are in demand by our dealers’ customers— whether they’re DIYers, contractors, residential builders, commercial builders, or RTM housing builders. Our 450 vendor partners are both national and regional to ensure we meet our dealers’ needs across the country. We need our vendor partners to keep us competitive and to supply our dealers with on-time deliveries and 100 percent fill rates. We want vendors to be innovative with product offerings and logistics that allow our dealers to maximize their potential for sales, profits, and inventory turns.

What are you always on the lookout for when it comes to introducing new vendors or products?

Combine power and cleanliness with no-touch flush American Standard’s Studio Touchless Toilet combines reliable touchless technology with the Cadet flushing system to offer a hygienic bathroom experience. A slow wave of the hand within 1.5 inches of the sensor will activate the powerful Cadet flush. www.americanstandard.ca

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F LE

Innovation, particularly as building codes and the needs of contractors evolve. Our vendor partners are key to keeping our program offerings to our members current and relevant.

Are there specific nationally branded products that excite you for 2024?

How do your dealers and managers inform you of their desires for specific products?

We regularly visit and consult with our dealers and vendors on vendor programs and products offered. We also have numerous events and regional meetings that allow us to network and receive feedback from our dealers. Our management team is very accessible to our dealers and they, in turn, provide us with valuable feedback on products and categories.

No specific brands but we are excited about our dealer’s ability to go after large projects, homebuilders, and commercial projects.

Our industry is in a very good position for continued growth as our immigration policies remain open, creating a strong demand for housing in Canada.

What are a couple of consumer trends you are noticing?

I think we will continue to see strong renovation demand by homeowners. A large part of this is driven by the various renovation shows that are currently on TV. Also, design trends, colours, quality, and innovations are driving consumer demand.

Lastly, as building and energy codes evolve, it creates higher sales volumes for products going into new home construction.

Can you tell us something about you as a person, outside of work?

I was born in North Bay, Ontario, and have lived in many different cities and towns across the country, including Trenton, Ontario; Gimli, Manitoba; Summerside, P.E.I.; Calgary, Vancouver, and Cochrane, Alberta—where I live today. I have been married to my lovely wife Kathy for 40 years, have two adult children, and a dog. This industry has become deeply entrenched in my life both professionally and personally, as one of my favourite hobbies is woodworking and creating art with wood.

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P R O D U C T S

F LE How and when did you get into your role as buyer at Orgill?

After college, I started with AutoZone on their B2B side. Fortunately, I had a family friend who was at Orgill for some 40 years and one day he encouraged me to apply for an associate category manager position here in the outdoor living category. I was blessed enough to be hired on. And over the last six years I’ve had the privilege to work in multiple categories at Orgill—and spent some time as an inventory analyst.

Then tools and automotive as a merchandise manager and, most recently, senior category manager.

Ryan Platt

What are some criteria for a successful vendor relationship with your firm?

Orgill Inc., Collierville, Tenn.

I think the key ingredient for any relationship—whether we’re speaking about work or not—is collaboration. I think we see the

SENIOR CATEGORY MANAGER, TOOLS AND AUTOMOTIVE

most success with vendors who really assist in helping our customers be successful. So that means vendors that are willing to have their reps spend time out in the field with our customers. Or participating in our spring dealer market, or our seasonal online buying events. And exhibiting the ability to get creative promotionally. And then lastly, having an attention to detail.

What are you looking for when it comes to introducing new vendors or products?

Specific to the tools category, innovation is key. When you see the cordless market really take over in the last five or 10 years, it’s clear that the ability of vendors to evolve their product lines is critical. It’s not uncommon to see retailers at this point with well over 80 percent of their power tools being cordless versus corded. To win in the tools category as a distributor or as a

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retailer, you have to be dialed into the latest and greatest technology.

How do your dealer customers inform you of their desire for specific products?

I don’t think it’s any secret that Orgill has a dominant presence with our salesforce both in the USA and Canada. Our very experienced team works hand in hand with customers to identify needs and to collaboratively work to find solutions. Our merchandising team works closely with our sales team to track, manage, and evaluate all new items suggested—and to monitor the feedback we get from customers.

What are some of the consumer trends in your product areas?

We’ve already spoken about the shift to cordless over corded. And I really expect it to grow in the heavy-duty, pro-oriented

field, too. We’ve got cordless concrete cutters and breakers now. Outside of that, in the power tools category—and also the accessories—we’re starting to see a shift to quality over price. There’s not as much need for an OPP or mid-tier price point, you’re seeing consumers—beginning with the pandemic—spend that extra money for that quality tool or accessory. Versus opting for the cheap option.

Can you tell us something about you as a person, outside of work?

I’ve been happily married for six years and we’ve got two beautiful kiddos, one a boy that is in kindergarten—he’ll be six in January—and a little girl that just started pre-kindergarten. She’s just a wild, sassy thing, who keeps us on our toes! Other than that, I’m big into the outdoors. I go out to kayak rivers—as much as I can with two kids—on multi-day trips.

Konstance Sevastos

SEASONAL PRODUCT MERCHANT

Home Depot Canada, Toronto, Ont.

How and when did you get into your role as buyer?

I’ve been with The Home Depot Canada for 23 years. In 2010, I had the opportunity to be one of the first online merchants when we

Slide planks easily into kit Hoft’s Kit A4 includes one black powder-coated aluminum end post and all necessary hardware to create privacy screens and fences. The fast and easy slide installation system is a sturdy, no-nail assembly.

Customers choose their preferred wood or composite planks and slide them in. Designed for 5/4 wood boards and one-inch composite boards, the kit is available exclusively in black. www.hoftsolutions.com

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P R O D U C T S

F LE

re-launched the e-commerce website. From there, I spent six years as an online merchant in various categories and was promoted to the position of retail merchant, which I have been in for the past seven years.

There are a variety of things I look out for including innovation, trends, sustainability, and exclusivity. I’m also close with my North American counterparts and work closely with them on Canada-U.S.-Mexico vendor relationships. The customer is always top of mind, so ensuring we have an assortment of product is very important.

What are some criteria for a successful vendor relationship with The Home Depot?

Trust, partnership, honesty, integrity, and open communication are a few of the key qualities I expect from my vendor partners.

What are you always on the lookout for when it comes to introducing new vendors or products?

How do your managers inform you of their desires for specific products?

Our store and assistant store managers have direct communication with me. They are able to provide feedback on specific asks they’ve received from their customers in

regard to new products they are looking to see in our assortment.

Are there specific branded products that excite you for 2024?

I’m excited for the upcoming Halloween and holiday assortment for 2023 as we have a lot of exclusive products in the lineup. In 2024, I’m thrilled for our new live goods Vigoro line-up, along with what we have planned for our lawn and garden categories.

What are a couple of general consumer trends in your product areas?

Matte black and white continue to be popular colour-wise in many of my

Faucet keeps drips and germs away The Colony PRO Touchless Single-Handle Kitchen Faucet from American Standard is equipped with the Selectronic infrared sensor to turn water on and off with just a wave of the hand. A touchless, hands-free design helps to reduce the spread of germs.

This contemporary, drip-free faucet features a high-arc swivel spout and dual function, pull-down spray head with stream to quickly fill large pots, spray for easy rinsing, and pause to stop water without turning off the faucet. www.americanstandard.ca

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Why Canadian Douglas Fir G1S? Canadian Douglas Fir Good-One-Side is a premium quality veneer core plywood that’s suitable for interior and exterior applications.

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P R O D U C T S

F LE How and when did you get into your role as category manager at RONA?

categories—such as indoor and outdoor planters and décor items like our Christmas villages, which will be a part of our Holiday 2023 assortment.

Fifteen years ago I joined RONA and, after gaining experience in supply chain and import logistics, I joined the buying team.

I was fortunate to have the opportunity to transition into the buyer role, which allowed me to apply my knowledge and skills in a new and exciting way.

Can you tell us something about you as a person, outside of work?

Over the past 23 years, during my time at The Home Depot Canada, I’ve had significant milestones in my life, such as getting married, and growing my family. I am actively engaged with the Greek community in Toronto. During my leisure time, I enjoy camping and traveling with my family, always seeking out new adventures and experiences. Shopping remains one of my passions, fueling my deep connection to the world of retail.

What are some criteria for a successful vendor relationship with RONA inc.?

Mathieu Villemaire

CATEGORY DIRECTOR, MERCHANDISING, HAND TOOLS

RONA inc., Boucherville, Que.

Clear and effective communication, timely and accurate delivery of goods, and a steady supply of quality products. Building trust and maintaining open lines of communication are crucial in order to address any

Paint and primer rolls on smoothly Rust-Oleum introduces Colour Spark, a premium pre-tinted wall paint and primer that rolls on smoothly, allowing for a single, effortless coat. The palette showcases designercurated colours that are trendy under all lighting conditions. The complementary hues make it simple to create a cohesive palette throughout the home. www.rustoleum.ca

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D I S T R I B U T I O N

P R O D U C T S

F LE

issues or challenges. Additionally, a strong understanding of the retailer’s goals and needs is important for providing products that align with our customers’ preferences.

stores, through channels like store walks, emails, and phone calls, is essential for effectively managing promotions, product assortment, and inventory to meet customer needs. Feedback and communications are key!

What are you always on the lookout for when it comes to introducing new vendors or products?

I am always on the lookout for several factors. First and foremost, the quality and consistency of the vendor and their track record in the industry. I also assess the uniqueness and marketability of the products, ensuring they align with customer needs. Finally, I consider the vendor’s pricing and terms to ensure we are getting the best value for our customers.

How do your dealers and managers inform you of their desires for specific products?

Clear communication between buyers and

Are there specific branded products that excite you for 2024?

New brands are exciting for me as a tools buyer because they bring fresh innovation and unique features to the market, offering potential improvements in performance and functionality. Additionally, exploring new brands provides me with an opportunity to expand our product assortment, and cater to a wider range of customer preferences and needs.

Whare are a couple of recent consumer trends in your product areas?

Trends include the increasing demand for ergonomic design and the growing interest in tools with new technology.

Customers are seeking tools that are comfortable to use for extended periods of time, reducing strain and increasing productivity. Additionally, there is a rising preference for tools that incorporate new technology to enhance performance.

Can you tell us as something about you as a person?

As someone fortunate enough to come from a family that has been rocking the retail business for what feels like forever, I’m excited to keep the tradition alive while putting my own spin on things. With the invaluable knowledge and experience passed down from my grandfather and dad, I’m bringing a wave of fresh ideas and innovation to this industry.

Faster cuts and longer life Diablo’s diamond segmented turbo rim masonry cut-off discs provide extreme durability, faster cuts, and longer life in concrete, concrete with rebar, brick, and cinder block. The disc’s industrial-grade diamonds with hardened disc body deliver durability and maximize cutting quality in hardened materials even in extreme applications. Diamond segment SPEED-Edge slot design reduces vibration, providing high cutting speeds and producing tall segments containing superior quality diamonds. The hardened disc body absorbs vibration and increases impact resistance to deliver superior quality cuts in hardened materials. www.diablotools.com

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How and when did you get into your role as buyer at Orgill?

In 2016 I started here as associate category manager for home products: cleaning chemicals, housewares, tabletop appliances—it’s a huge category with a lot of impulse items and consumables. I was there for my first six years. Then I was senior category manager for a year. Then at the beginning of this year, I transitioned to the paint category.

What are some criteria for a successful vendor relationship with your firm?

Jordan Wakefield

PAINT AND PAINT SUNDRIES BUYER

Orgill Inc., Collierville, Tenn.

Really, when we are looking at a vendor, we are looking at their willingness to support our dealers—whether that’s competitive pricing or promotions. And are they active participants in our dealer markets and online? And do they have product

innovation? Because we want to be at the forefront of innovation, making sure that we’re bringing products to our customers sooner and not being the last one at the table, so to speak. We like to have vendors that are clear and consistent communicators. And they align with our mission statement: which is to help our customers be successful.

What are you looking for when it comes to introducing new vendors or products?

It’s especially great if they have something unique to the marketplaces we serve.

Some things may work for Canada, but not make sense for the U.S.—and vice versa.

Competitive pricing is essential, plus reliability and consistency. We don’t want to make the mistake of setting up a new

Resist mould with lowmaintenance panels The garage organization market is booming thanks to products like Trusscore Wall&CeilingBoard and Trusscore SlatWall. The lightweight, low maintenance, and long-lasting PVC wall panels combine high-strength storage capacity with bright, durable, water-resistant walls that will never grow mould or mildew.

Available in white and grey, they’re the perfect alternative to traditional drywall and medium density fibreboard storage systems in garages. www.trusscore.com

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vendor and find out that they can’t manage their supply chain logistics. They have to provide a high service level and fill rate.

And have sales staff out there with product knowledge to support the dealers.

on annual volumes. If we’re converting a product from a competitor, we look at the products that they are buying from us and take that into account.

growth is going to favour companies who have reinvested in the paint coating category.

What are a couple of consumer trends in your product area?

I’m a big baseball guy—“America’s pastime” and all that. I was reading Moneyball [the book] the other day for something like the fourth time. I’m into anything sports related.

With a couple of my buddies, I coached our two young girls at tee ball. I used to coach soccer. I went to the University of North Alabama on a scholarship where I majored in business. Our family, we love being outdoors: going to the beach, walking the dog.

And sports, did I mention that?

How do your retail customers inform you of their desires for specific products?

Informally, sometimes our sales reps come in and tell us, they don’t want product X anymore. But there’s also a formal process—and we’ve tried to make it more formal in recent years. We have standard operating procedures for collecting information from the retailer. We look at historical data

We anticipate that paint sales will remain steady—even if there is an ongoing recession. When it comes to trends right now, I think there’s a refocus on industrial and architectural paint products. You’re seeing the postponing of DIY remodeling projects, primarily due to the volatility of material prices. And, with inflation being an issue, budget concerns. So, I think market share

Can you tell us something about you as a person, outside of work?

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Leaf vacuum doubles as leaf blower

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The Einhell Venturro 36/240 cordless leaf vacuum takes the tedium out of leaf collecting.

The powerful 36-volt leaf vacuum, which is also a leaf blower, is completely cordless and has an integrated shredder. Twin-Pack technology combines two 18-volt batteries, while the brushless motor makes for more power and a longer runtime.

A changeover switch can be used to change between suction and blowing functions quickly and easily. www.einhell.ca FOURTH QUARTER / 2023

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Tips and information for Tips and information for home improvement dealers Tips and information for home improvement dealers to your inbox every month! home dealers to yourimprovement inbox every month! to your inbox every month!

Targeted squarely at store owners and managers, Hardlines Dealer News is a monthly email Targeted squarely at store owners and managers, newsletter with content designed especially Hardlines Dealer News is a monthly email for dealerssquarely and who want to runmanagers, their Targeted at store owners and newsletter withowners content designed especially businesses at maximum efficiency.

Hardlines News is a monthly for dealersDealer and owners who want toemail run their newsletter with contentDealer designed businesses atHardlines maximum efficiency.

Each issue of Newsespecially features: for dealers and owners owners who want to run on their 4 Newsissue to helpof store andDealer managersNews stay current the Each Hardlines features: businesses at maximum efficiency. latest trends in their market 4 News to help store owners and managers stay current on the 4 Tips for smartof retailers who want to identify waysfeatures: to manage latest trends in their market Each issue Hardlines Dealer News their operations more successfully Tips for retailers whoand want to identify ways to manage 4 News to smart help store owners managers stay current on the 4 Insights to help dealers hire smarter, merchandise better their operations more successfully latest trends in their market and manage more effectively

Insights to helpretailers dealerswho hire want smarter, merchandise better 4 Tips for smart to identify ways to manage 4 Concrete ideas for managing budgets, merchandising and manage more effectively their operations more successfully products and identifying best practices.

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DIGITAL MARKETING

F LE

SOCIAL STUDIES

How three Canadian dealers are using social media to build their brands, connect with their customers, and improve their sales

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DIGITAL MARKETING lato suggested that the penalty for declining to get involved in politics is to be ruled by someone inferior

to you.

Translating this timeless truism to the digital world, can we infer that the penalty for declining to get involved in social media is to be beaten by a retailer inferior to you?

In 2023, social media has become an essential component of a home improvement retailer’s marketing strategy. An increasing percentage of your customers are using social media for finding information about who they want to do business with—and as a way to connect to brands they identify with.

Using social media to provide valuable home improvement tips while displaying product images and ideas is a great way to build a community for your store.

IF YOU BUILD IT, WILL THEY COME?

Gone are the days when you could simply slap together a Facebook page or Instagram account and think you have the digital side covered. In the digital world of today,

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F LE engagement (interaction with the viewer, plus comments, likes, and shares—and, yes, traffic and sales) is the most important goal of all.

Beyond engaging your customer base, social media gives you a valuable tool to potentially expand your sales by reaching new people. According to an April 2023 study by Datareportal, 4.8 billion people (around 60 per cent of the world’s population) use social media.

Still think this is a fad?

Some key things to bear in mind as you navigate the digital world: know your customer demographics so you can focus your efforts on this segment; make sure your website is a well-oiled machine (given that, in most instances, you’ll be using social media to ultimately drive people to it); and don’t forget to include videos (instructional videos are particularly engaging).

Without further ado, we present a trio of mini case-studies, each examining how a specific retailer has approached social media and how they are measuring its success.

Hardlines Home Improvement Quarterly

WOLF CREEK BUILDING SUPPLIES (CASTLE) Lacombe, Morinville, and Sylvan Lake, Alberta GOAL Dealer-owner Rob de Regt says that with three stores with different trading areas, they wanted to build brand awareness within these communities and the surrounding areas. “We found that most consumers are looking for good companies with good service and morals that are on par,” he says. “Social media allows us to share a bit of that and start conversations.” de Regt and his team believe brand awareness will lead to increased sales and foot traffic while helping them engage with both existing clients and potential new business.

With locations in different trading areas, this dealer has used social media to help its stores become better known across a wider region.

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Rob de Regt is the dealer-owner of Wolf Creek Building Supplies, a Castle member with three locations in Alberta.

HOW DO YOU DEVISE YOUR STRATEGY? de Regt says his team reviews the previous year to determine what worked and what didn’t. Store managers actively offer ideas and feedback on the various platforms— consistent with Wolf Creek’s open-door policy. In terms of content, Wolf Creek tries to maintain a blend ranging from staff photos, community involvement, and completed projects.

OUTSOURCE OR IN-HOUSE? For Wolf Creek, it’s a bit of both; a longterm employee who had the prerequisite skills offered to grow their social media platforms and does so after hours at a contracted rate.

“

SOCIAL MEDIA PLATFORMS USED Instagram. For reels, staff and product showcasing, and sales. Tip: “Put your ‘personal business’ touch on marketing,” de www.hardlines.ca

Regt advises. “We promote ‘support local’ and ‘one stop shop’ in a lot of our posts.”

Facebook. For employee showcasing, community support, projects and sales. Tip: “Personalize with staff showcasing and community support and keep it professional.”

LinkedIn. For professional posts highlighting the company and its strengths and goals. Tip: “We encourage staff who have platforms to follow/like and share to grow our network.” de Regt says they’ve been using all three platforms to push a recently launched e-commerce program. Earlier this year, they started using TOOLBX at their Sylvan Lake location. “We are doing a one-year

”

trial, and if it goes well, we will expand the program to all locations,” he says. So far, so good, as de Regt revealed that each month they’ve been seeing an online sales increase.

METRICS TO MEASURE SUCCESS Engagements, impressions and likes play the biggest role in determining success, de Regt says. He adds that Instagram and Facebook, in particular, are good vehicles to advertise that the stores are now online, using TOOLBX to gain an edge in e-commerce. However, he says there is room to grow and re-strategize each year to help build their brand. “We want Wolf Creek Building Supplies to be known across Alberta. With our three locations, we are pleased that we are continually doing this,” de Regt says.

2,021 followers 1,900 followers; 1,500 likes 286 followers (despite only starting on this platform earlier this year)

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DIGITAL MARKETING

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Ryan Buck (centre, left) says he delegates his two stores’ social media posts to an outside supplier, allowing him to focus on running the business.

BUCK’S HOME BUILDING CENTRE

AND NEW GERMANY HOME

HARDWARE BUILDING CENTRE

Bridgewater and New Germany, Nova Scotia GOAL The focus is less on product and more on showcasing staff, whether it be accomplishments, anniversaries or just to give customers a sense of connection when they recognize a familiar face from a post, says owner Ryan Buck. Dave Welsford, an outside supplier who was hired to run their social media last year, describes the focus as being on culture. But the other big one here, Buck says, is contractor relationships, accomplished through frequent site visits and then posting about current projects to help promote those businesses.

HOW DO YOU DEVISE YOUR STRATEGY? Buck says they work their posts around things like retail promotions, in-store sales, events they have at the store (contractor

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breakfasts, barbecues, etc.) and the launch of new merchandising areas.

OUTSOURCE OR IN-HOUSE As mentioned above, Buck opted to outsource the task, offering the following rationale: “As an owner-operator of three locations, you need to stick to your strengths, so I hired a professional.” He says Welsford, also a professional photographer, regularly visits their contractors’ job sites to take photos to promote their partnerships, while photographing store staff and creatively showcasing their sales and flyers.

SOCIAL MEDIA PLATFORMS USED Facebook. The focus is on staff, product and contractors. Welsford says that, based on local demographics, they go photo-heavy on this platform. Tip: Ensure high quality images that tell stories.

Instagram. For videos, and to illustrate that the stores are exciting and are a

Hardlines Home Improvement Quarterly

fun place to be. Based on brand searches, this platform also helps the retailer create a digital footprint which builds trust, Welsford says. Tip: Use Instagram to grab mindshare of a younger demographic now, so in a few years, the store will be top of mind when they are home improving.

METRICS TO MEASURE SUCCESS “For us, it’s being present,” Buck explains.

“It’s about building brand equity, letting our customers know about our culture, what we are supporting in the community, celebrating our staff, and celebrating our contractors.” It also sends a message to the region that the stores can be a supply partner for projects of all sizes.

9,400 followers between both locations; 5 out of 5 review ranking 328 followers Review ranking of 4.5 out of 5, with reviews praising them for their customer service, knowledge, and wide selection

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DIGITAL MARKETING

F LE BMR Windsor Building Centre uses social media to increase brand awareness in an area where BMR is not a household name.

BMR WINDSOR BUILDING CENTRE Windsor, Ontario GOAL “The ultimate goal of our social media is brand awareness,” says the store’s CIO/ marketing manager Brendan Rodd. Given that BMR is mostly a Quebec-based banner, with only eight stores in Ontario, the brand awareness can use a digital marketing boost.

“As long as we have been with BMR, it is still not a household name that everyone recognizes (here),” Rodd says. Longtime area residents mostly know the store, but Rodd says his store needs to get on the radar of newer families that have relocated

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there. To achieve this, Rodd says, the store employs local magazine ads, Facebook, and its own LED roadside sign.

Further, he adds, “Social media is fast-acting, allowing us to communicate with very specific audiences, extremely quickly.” For instance, they can alert local residents about a pending storm, and let them know they have sump pumps and generators in stock.

Or, in the case of a heat wave, which air conditioners they have in stock. “It allows a store to react very quickly to current events,” Rodd explains.

HOW DO YOU DEVISE YOUR STRATEGY? Rodd says this was already in place when he became the marketing manager.

Hardlines Home Improvement Quarterly

OUTSOURCE OR IN-HOUSE? After a few years, the store outsourced the day-to-day posting, but Rodd says he still adds quick local content and responds to customer inquiries. Since BMR Group started offering social media management as part of its marketing strategy five years ago, his store signed up, he says. “Using BMR keeps our social media accounts uniform with other BMR stores and also allows us to offer the most up-to-date offers.” In addition to social media, BMR also helps with flyers, e-mail marketing, and Google AdWords.

SOCIAL MEDIA PLATFORMS USED Facebook. For brand awareness and instant sales and contact with customers. Tip: “Respond as quickly as possible to customer inquires,” Rodd suggests.

Instagram. For brand awareness. Tip: You need to find good visual images to make an impact, but most images with text embedded go unnoticed, he says.

X (Twitter) The store set up an account for flash sales, but the platform is not currently employed.

Rodd says that Google—although not considered a social media platform—is a valuable tool, especially Google Maps and new acquisition Pointy, which he says lists the products the store has in stock. “I more closely monitor our Google analytics than I do my social media accounts,” he says, because those that call directly or ask for directions from the app are more likely to be real customers.

METRICS TO MEASURE SUCCESS “The main metric is eyes viewing our posts, since our main focus is brand awareness,” Rodd says.

1,400 likes, 4.1 rating out of 64 reviews 4.1 rating out of 238 reviews

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PRO CORNER

F LE

BY JOHN CAULFIELD

KEEPING CONTRACTORS

LOYAL

Two of the industry’s giants, Home Depot Canada and RONA, have been personalizing their loyalty programs for pro customers

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69

PRO CORNER

A

re loyalty programs that reward pro customers for their purchases a perk for frequent shopping or a necessity to keep those customers coming back?

Loyalty programs are almost as old as retailing itself. SoLoyal, which works with myriad loyalty programs in Canada, lists among its clients health clubs, skin care merchants, car dealers and renters, hockey leagues, hotels, software suppliers, pizza shops, airports, and telecommunications carriers.

Contractors and renovators who shop home improvement outlets in Canada are faced with a wide range of loyalty programs. The granddaddy of loyalty programs in the building supply business is Air Miles, which first appeared in Canada in 1992. RONA, Réno-Dépôt, and Lowe’s left the program in February 2021, but it’s still used by the TIMBER MART buying group to reward contractors and homeowners alike.

Not that the program hasn’t experienced turbulent waters. Air Miles’ owner, Loyalty One, declared bankruptcy on both sides of the border earlier this year. On June 1, the Bank of Montreal took over the program, which had been hurt by a number of high-profile retailer defections over the past two years, including—in addition to the RONA group—the Liquor Control Board of Ontario, Staples Business Depot, Sobeys, and Safeway.

Last spring, customers could go to TIMBER MART’s Instagram page to enter for a chance to win four prizes of 5,000 miles.

Four suppliers—James Hardie, Rockwool, Trex, and CGC—cosponsored the giveaway.

Neither Sexton Group nor Castle Building Centres Group has a pros-only loyalty program for its dealer-members.

“We tried a customizable solution a few years ago; however, there was not very much interest, for the most part because our contractor-focused member locations already had their own programs in place,”

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F LE explained Jennifer Mercieca, Castle’s director of communications, in an email.

Loyalty programs also have the potential for exposing dealers and their buying groups to greater scrutiny. Last November, the Federal Court of Canada authorized the Canada Revenue Agency (CRA) to examine Kent Building Supplies’ records for its pro and commercial customers, in search of “underground economy” transactions and benefits. Kent was required to provide the names, CRA business numbers, and total transaction amounts for all pro customers who had spent more than $20,000 with the retailer since January 2019. A similar “priority audit” was authorized in late 2019 of Home Depot Canada’s pro customer transactions.

Undaunted, Home Depot Canada’s Pro Xtra program continues to provide benefits to untold thousands of loyal pro customers, as does RONA’s VIPpro program, and Home Hardware Stores’ PRO Top Notch Rewards program. Each of these is part of a broader marketing effort designed to engender a stronger bond between customer and store.

Home Hardware notes on its website that many of its dealer-members have their own loyalty programs that often include discounts on purchases. As for Top Notch, pros earn points from their purchases to redeem merchandise offered in the program’s catalog.

Home Hardware Stores Ltd. was, at the time of writing, in the middle of launching Scene+, a widespread and popular loyalty program that Home Hardware joined a year ago. Scene+ offers a vast number of rewards across a broad spectrum of partners that includes entertainment venues, restaurants, and online, catalog, and bricks-and-mortar retailers.

Powered by Expedia, Scene+ is also the official Canadian loyalty partner of the NBA, giving members access to prizes and experiences.

HHIQ spoke with officials from Home Depot Canada and RONA about the value of their pro loyalty programs, and how they can grow. Here’s what they told us.

RONA inc. counts on its VIPpro loyalty program to attract pros to its RONA, Réno-Dépôt, and Lowe’s stores (the latter being currently replaced by the RONA+ brand).

Hardlines Home Improvement Quarterly

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PRO CORNER

F LE

RONA’S VIPPRO

RONA launched its VIPpro app in September 2020. “It’s a muscle we’ve been exercising for three and a half years,” says Bill Goguen, the retailer’s divisional vice-president for pro services. The program provides pro customers with access to discounts and preferred prices (including for bulk purchases), as well as to exclusive events.

Goguen asserted that VIPpro has become a “key strategy” for enhancing pro customers’ overall experience at RONA. It also provides the company with a better understanding of these pros’ purchasing patterns and preferences. For example, if a contractor buys a lot of flooring, RONA can alert him or her to special offers or clearances in that product category. “We’re sending out notifications that are useful to them and save them time and money,” said Goguen.

Goguen wouldn’t provide an exact number of pros whose companies benefit from VIPpro, except to say it is in the “tens of thousands.” What’s attractive to both new and existing customers, he acknowledged, is the “immediate discount” (5 percent off all purchases, 10 percent off paint and sundries). The program also has a 365-day return policy.

“Plus,” Goguen adds, “they can find all of their transactions in one place.”

In RONA’s corporate and affiliated stores, pros receive personalized services that include self-checkout kiosks that

“

and Réno-Dépôt. Goguen noted that, as some of RONA’s outlets cater to different customers, like homebuilders, VIPpro is built around a model of products and one-on-one services suitable to their specific needs.

I was talking with a customer a few weeks ago, and he pointed to his 40 [jobsite] workers and said ‘I have to babysit them, so I shouldn’t have to babysit you, too.’

are programmed for the VIPpro app, which is usable across all of the retailers’ banners, including RONA, RONA+ (which is replacing the Lowe’s banner),

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”

When asked about how RONA’s loyalty program can be refined, Goguen said with a laugh that “the dealers want the app to do their jobs; we’re not quite there yet.” He

Hardlines Home Improvement Quarterly

Bill Goguen, RONA inc.’s divisional vicepresident for pro services, says his company’s VIPpro loyalty program is “a muscle that we’ve been flexing for three and a half years.” did note, though, that the app, which was created by Kinetic Commerce in Toronto, has since been brought in-house.

Goguen wouldn’t share what changes, if any, are in store for VIPpro. He did say, though, that RONA has been conducting one-on-one interviews with pro customers about how the app might serve them better. “I was talking with a customer a few weeks ago and he pointed to his 40 [jobsite] workers and said, ‘I have to babysit them, so I shouldn’t have to babysit you, too.’ ”

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PRO CORNER

F LE Jamal Hamad, senior director of contractor services and sales at Home Depot Canada, says his firm’s Pro Xtra program’s lead service is a “huge benefit” for contractors.

HOME DEPOT’S PRO XTRA

Home Depot Canada’s program “allows pros to build a business with us,” said Jamal Hamad, senior director of contractor services and sales. For example, becoming a Pro Xtra member gives customers access to free leads. “That’s a huge benefit,” said Hamad, compared to other lead-generating platforms that charge for this service. Pro Xtra also sends out personalized offers based on the pro member’s purchasing history, which the customer can also keep track of via the Pro Xtra app.

Home Depot Canada’s Pro Xtra pays out quarterly rewards based on purchases: the rebates, via gift cards, range from 0.5 percent for quarterly purchases up to $9,999, two percent for purchases up to $49,999, and four percent for purchases $50,000 or higher. Pro members also receive quarterly

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rebates up to 20 percent for paint purchases, and one percent for all purchases paid for with a Home Depot Commercial credit card.

Hamad said that Home Depot Canada tries to add a new benefit to its Pro Xtra menu each year. “Pro Xtra needs to be fluid.” To that end, the retailer conducts

“

trying to come up with new ideas.” One that the retailer has kicked around of late is free takeoff services for pro members, which otherwise might cost between $500 and $1,500.

Hamad said that Home Depot Canada is now working on a more personalized approach for Pro Xtra, with different kinds of perks (which he referred to as “cookies”), along with possible tie-ins with the stores’ tool rental departments, installation sales, and outside sales teams.

Hamad added that the retailer is also studying loyalty programs outside the industry, like those offered by Las Vegas hotel brands; as well as extending Pro Xtra membership to trade schools.

Does Pro Xtra make shopping easier and buying faster? “We’re not 100 percent there yet,” Hamad admitted. The questions that Home Depot is always trying to answer, he said, is “whether Pro Xtra is driving the right behaviour? Are pro members looking at us as a partner? Are they buying more? What are they using the loyalty rewards for?”

Pro Xtra allows pros to build a business with us.

regular focus groups with members; purchase tracking is one of the services that came out of these sessions.

Home Depot Canada is “constantly thinking about the competitive environment, and

Hardlines Home Improvement Quarterly

”

As for growing the program, Hamad said that he’d rather have fewer Pro Xtra members who bought more from Home Depot than more members who look at the program casually.

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Publication Date: January 12, 2024 • Ad Reservations: November 24, 2023 (contact david@hardlines.ca) • Ad Material Due: December 8, 2023

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Hardlines Home Improvement Quarterly

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Get Get a a new new perspective perspective from from industry industry leaders leaders What’s in Store What’s in Store What’s in Storewith industry leaders from all parts of A free podcast series from Hardlines that features interviews A free podcast series from Hardlines that features interviews with industry leaders from all parts of A free podcast series from Hardlines that features interviews with industry leaders from all parts of the the home home improvement improvement industry. industry. Listen Listen while while you you are are in in the the car, car, or or from from the the comfort comfort of of your your office. office. the homeYou improvement industry.

Listen while you are in the car, or from the comfort of your office. will be entertained, educated and that much more connected to the industry!

You will be entertained, educated and that much more connected to the industry!

You will be entertained, educated and that much more connected to the industry!

RECENTLY ADDED PODCASTS RECENTLY ADDED PODCASTS RECENTLY ADDED PODCASTS

Russ Perman Jim Inglis Russ Perman Hardlines associate editor and podcast host Geoff McLarney Jim Inglis is a world-renowned retail expert with 60 years Russ Perman Hardlines associate editor and podcast host Geoff McLarney

Joel Joel Seibert Seibert Michael McLarney, Hardlines president and podcast host, Joel Seibert Michael McLarney, Hardlines president and podcast host,

Frances Frances Sologuk Sologuk Frances Sologuk is the owner of Osoyoos Home Hardware Frances Sologuk Frances Sologuk is the owner of Osoyoos Home Hardware

Geneviève Geneviève Gagnon Gagnon An interview with the leader of a five-store chain of home Geneviève Gagnon An interview with the leader of a five-store chain of home

and senior editor Steve Payne interview RussGeoff Permann, of experience in the retail home improvement industry.

Jim Hardlines editor and podcast host McLarney and seniorassociate editor Steve Payne interview Russ Permann, president and of Taiga Building Products onin how was senior the EVP ofCEO merchandising for Home Depot theTaiga early and editor Steve Payne interview Russ Permann, president and CEO of Taiga Building Products on how Taiga weathered theCEO pandemic, supply chainon looks years. He then wentofon tohow be athe special advisor to the today, boards president Taiga Building Products how Taiga weatheredand the pandemic, how the supply chain looks today, and his expectations for technology improvements the of leading home improvement retailers around thefor world, weathered the pandemic, how the supply chain looks today, and his expectations for technology improvements for the business and the industry. including Sodimac infor Chile, Hornbach in Germany, Bunnings and his expectations technology improvements for the business and the industry. in Australia Zealand, and Komeri in Japan. business andand theNew industry.

in B.C.’s Okanagan Sheof shares the story how her Frances Sologuk is Valley. the owner Osoyoos Homeof in B.C.’s Okanagan Valley.

She shares the story ofHardware how her family’s hardware store was “un-renovated” to of reveal in B.C.’s Okanagan Valley.

She shares the story howits her family’s hardware store was “un-renovated” to reveal its historic building materials, reclaimed from a nearby mining family’s hardware store was “un-renovated” to reveal its historic building materials, reclaimed from a nearby mining camp.

The store materials, now serves as a museum the town’s local historic building fromof a nearby mining camp. The store now servesreclaimed as a museum of the town’s local history, and it’s a big draw for customers! camp. The servesfor ascustomers! a museum of the town’s local history, andstore it’s anow big draw history, and it’s a big draw for customers!

interviews Joel Seibert, the owner of Mountain Viewhost, Michael McLarney, Hardlines president and podcast interviews Joel Seibert, the owner of Mountain View Building Materials on building teamofmembers individually. interviews Joel Seibert, the owner Mountain View Building Materials on building team members individually.

Building Materials on building team members individually.

centres in Quebec, La leader Grande Quincaillerie An interview with the a five-store (The chainGreat of home centres in Quebec, La GrandeofQuincaillerie (The Great Hardware Store). Geneviève talks about her(The experiences centres in Quebec, La Grande Quincaillerie Great Hardware Store). Geneviève talks about her experiences growing upStore). in the family business run byher her famous Hardware talks about growing up in theGeneviève family business run by herexperiences famous father Yves Gagnon, former president of Groupe BMR, growing up in the family business run by her famous father Yves Gagnon, former president of Groupe BMR, and how she’s making her own mark on the business. father Yves Gagnon, president ofthe Groupe BMR, and how she’s makingformer her own mark on business. and how she’s making her own mark on the business.

Plus Plus many many more more podcasts podcasts to to choose choose from! from!

Plus many more podcasts to choose from!

Listen today for free at hardlinespodcast.ca Listen Listen today today for for free free at at hardlinespodcast.ca hardlinespodcast.ca Jim Inglis, recent podcast guest, is a world-renowned retail expert with 60 years of Romain Mercier Jim Inglis, recent podcast guest, is a world-renowned retail expert with 60 years of

inHardlines the retail home-improvement Jim has helped shape theand industry Jim recent guest, is a world-renowned retail expert with 60 years ofco-founder at In experience this Inglis, episode editor Steve Payne industry. talks to Romain Mercier, partner experience in the podcast retail home-improvement industry.

Jim has helped shape the industry worldwide as a special advisor to the boards of leading home-improvement retailers experience in the retail home-improvement industry.

Jim has helped shape the industry expert.

Vancouver-based PS&Coadvisor Data Lab—and a customer engagement and communications worldwide as a special to the boards of leading home-improvement retailers arounddiscusses the world: Sodimac in Chile, Germany, Bunnings in Australia andbe daunting worldwide a special advisor to of theHornbach boards ofin home-improvement retailers Romain the importance e-commerce and why getting started needn’t around the as world: Sodimac in Chile, Hornbach inleading Germany, Bunnings in Australia and Zealand; and Komeri ininJapan.

Jim is speaking at the 2023 Hardlines Conference around the world: Sodimac Chile, Hornbach in Germany, Bunnings in Australia and forNew independent dealers.

Romain also explains the Canadian Digital Adoption Program which New Zealand; and Komeri in Japan. Jim is speaking at the 2023 Hardlines Conference in Whistler, B.C. onKomeri October andJim 18th.

Scan hereatfor New Zealand; and in 17th Japan. is speaking the 2023details!

Hardlines Conference provides funding to having over $3 million inmore sales over the last three years. in Whistler, B.C. onbusinesses October 17th and 18th.

Scan here for more details! in Whistler, B.C. on October 17th and 18th. Scan here for more details!

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F LE

BY GEOFF McLARNEY

BOTH SIDES NOW

Two former RONA employees, who four years ago opened a hardware store in Walnut Grove, B.C., have expanded it into the banner’s first urban store in western Canada

I

n June, RONA debuted a new urban store in partnership with T&T Hardware Group. Partners Michael Trentalance and Al Tsuchiya are both veterans of RONA. “We were familiar already with the workings of RONA,” Trentalance says. “I worked for corporate RONA for more than 20 years.

I had an idea of how RONA works.”

When the pair opened their Ace store in the Walnut Grove neighbourhood of Langley, B.C., in 2019, Tsuchiya had already spent nearly a decade running his own store in Port Coquitlam. Their respective skill sets dovetailed. “I always knew in the back of my mind I wanted to do something,” Trentalance reflects, “but it’s just a question of having the right person.”

The Ace format made sense, too. “We looked at other banners but [chose] the RONA banner—and back then the Ace banner—because the product lines were set for us and I knew the inner workings” of the business.

“I think Al’s maybe a little deeper on the back end because he had his own store,”

“

Michael Trentalance’s corporate knowledge is a perfect complement to Al Tsuchiya’s front-line retail expertise at their unique urban-format RONA store. in good stead “working with the public and product lines.”

The urban format allows the store to deliver a wide range of products to city dwellers on a smaller scale. Trentalance describes the concept as “same idea as a big

I always knew in the back of my mind I wanted to do something, but it’s just a question of having the right person.

Trentalance said. “On the corporate side, even as a store manager, you only do so much. Being on your own there’s a lot more you have to dive into.”

On the other hand, Trentalance notes, his corporate background has stood him

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FOURTH QUARTER / 2023

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box store, but everything compressed into a smaller store.”

RONA, he says, “had presented us with the urban concept. They’ve come up with this urban setting so we can still serve the customers everything they need but in a

Hardlines Home Improvement Quarterly

smaller location.”

Reflecting on his transition, Trentalance says: “Working on the corporate side was fantastic. At the same time, “a lot of decisions are made for you.” Tsuchiya’s support is crucial. “Having a partner is huge,” says Trentalance.

Still, even Tsuchiya’s experience in Coquitlam doesn’t always translate to Walnut Grove. “You would think the products would be the same, but it changes. “We’re in a pretty affluent area.

In Coquitlam, a customer might just want to fix something.” In Walnut Grove, homeowners often use everyday repairs as a springboard to larger renos.

Critical to the store’s success has been the support of Walnut Grove. “It’s been phenomenal. We couldn’t ask for a better community,” Tsuchiya said. www.hardlines.ca

“Castle understands the needs of the independent and that a cookie cutter corporate brand doesn’t always work, especially in a smaller market.

Castle gets out of our way so we can run our business.”

Jordan Hodgins, Hodgins Building Centre New Castle Member 2023

As an entrepreneur, you have your own unique way of doing things and have worked hard to build your brand and your reputation. Nobody knows your business better than you do, so don’t let your buying group take control of your business decisions. You deserve to shine without your buying group getting in the way!

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That’s why Castle is the fastest-growing buying group in Canada!

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It’s your business and Castle gives you the liberty and flexibility to run your business your way. Find out what Castle can do for your business.

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2023-09-05 3:13 PM