HHIQ_2Q_17_Complete-low

H A R D L I N E S . C A 

C O N N E C T I N G T H E H O M E I M P R O V E M E N T I N D U S T R Y 

SECOND QUARTER / 2017 

CHANGING 

CHANNELS 

How to successfully 

navigate the digital 

retail experience 

FEATURE STORY 

BY THE 

NUMBERS 

Research reveals 

challenges, 

opportunities 

ahead for 

independents 

THE FUTURE 

IS FEMALE 

How to win over 

the business of 

these influential 

shoppers 

HOME IMPROVEMENT QUARTERLY 

THERE’S NO 

PLACE LIKE HOME 

Inside and out, Canadians 

are looking at and interacting 

with their homes in ways they 

never have before. 

Canadian Publications Mail Agreement # 42175020. POSTMASTER: Send address changes to Hardlines Home Improvement Quarterly, 528 Queen Street East, Toronto, ON M5A 1V2

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BUILDING PRODUCTS


SECOND QUARTER / 2017 • VOLUME 7, NO. 2 

528 Queen Street East, Toronto, ON M5A 1V2 • 416-489-3396 

EDITOR-IN-CHIEF 

Michael McLarney 

mike@hardlines.ca 

PUBLISHER 

Beverly Allen 

bev@hardlines.ca 

VP BUSINESS DEVELOPMENT 

David Chestnut 

david@hardlines.ca 

EDITOR 

Sigrid Forberg 

sigrid@hardlines.ca 

MARKETING DIRECTOR 

Katherine Yager 

kate@hardlines.ca 

CONTRIBUTING WRITERS 

Geoffrey McLarney, Robert Howard, 

Bill Wilson 

ACCOUNTING 

Margaret Wulff 

margaret@hardlines.ca 

ADMINISTRATION 

Maggie MacKinlay 

maggie@hardlines.ca 

ART DIRECTION 

Shawn Samson 

TwoCreative.ca 

Hardlines Home Improvement Quarterly is 

published four times a year by Hardlines Inc., 

528 Queen Street East, Toronto, ON M5A 1V2. 

$25 per issue or $90 per year for Canada. 

Subscriptions to the Continental United States: 

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(Air mail $60 per year additional) 

Subscriber Services: To subscribe, renew 

your subscription, or change your address 

or contact information, please contact our 

Circulation Department at 289-997-5408; 

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Canadian Publications 

Mail Agreement # 42175020 

POSTMASTER: Send address changes to 

Hardlines Home Improvement Quarterly, 

528 Queen Street East, Toronto, ON M5A 1V2. 

All editorial contents copyrighted 2017 by 

Hardlines Inc. No content may be reproduced 

without prior permission of the publisher. 

www.hardlines.ca 

STEVE CHOQUETTE 

General Manager 

Kelly Lake Building Supplies 

Sudbury, Ontario 

“For over 30 years, TORBSA has been my buying 

group. As a full line dealer, TORBSA provides me with 

the competitive edge to supply products to all types 

of building projects.As shareholders, we are a group 

of tight-knit, experienced, like-minded, independent 

owners that have the opportunity to negotiate with 

our vendors directly and ensure full transparency of all 

programs. This is one of our greatest strengths, and 

why I chose to be with TORBSA.“ 

NUMBER ONE 

IN THE HOME IMPROVEMENT 

INDUSTRY. ONLINE AND PRINT. 

HHIQ is just one facet of the Hardlines Information Network. 

Since 1995, we’ve been delivering the most up-to-date 

information directly to you online, in print, and in person. 

Find out how you can get your message out with us. 

Contact Beverly Allen, Publisher: 

PHONE: 

416.489.3396 

MOBILE: 

647.880.4589 

EMAIL: 

bev@hardlines.ca 

For More Information about TORBSA, 

Call Bob Holmes at 1-866-865-1689 

www.torbsa.com

YOU’RE HERE 

TO STAY. 

WE’RE HERE 

TO HELP. 

HOME-OWNER.CA 100% CANADIAN OWNED 

We know the competition, and we know the hard work 

that you put into your business. None of that is going 

anywhere, and neither are you. 

“When we joined Home Hardware in December 2008, we 

had struggled every year to grow our bottom line, despite 

a great customer base and steady sales increases. Since 

then, our sales have grown 16% while margin increased 

by more than 1.6%; this despite a recession and a brand 

new CTC store across the street. Home has provided us 

with a reliable distribution system and new skus added to 

available products weekly. National advertising keeps our 

name out there, and at a very reasonable cost. Home has all 

the back end support a small business could ever dream of. 

We have enlarged our store twice in these same few years, 

 

 

comfortable retirement in my future.” 

John Glover 

Upper Tantallon, NS 

Visit home-owner.ca to learn how you could benefit by joining Home.

COVER STORY 

24 

36 

THERE’S NO 

PLACE LIKE HOME 

Inside and out, Canadians 

are looking at and 

interacting with their 

homes in ways they 

never have before. 

MEMORIAM 

REMEMBERING 

WALTER HACHBORN 

The humble visionary behind 

Home Hardware changed the home 

improvement industry in Canada 

NEWSROUNDUP 

14 

Orgill expects to reduce 

delivery times to Western 

Canada with new DC 

BMR expands services for 

its new range of banners 

Canadian Tire ad goes viral 

Castle continues to grow 

CITT upholds gypsum tariff, 

stands by dumping ruling 

Kent buys up Central 

Home Improvements 

National dealer association 

prepares for next steps 

Home Depot targets pro 

customers with data 

E-COMMERCE 

Effectively navigate 

this paradox in 

order to survive 

and thrive in the 

digital economy 

CONTENTS 

NAVIGATING THE DIGITAL 

EXPERIENCE PARADOX 

30 

WOMEN IN THE INDUSTRY 

DIVERSE PERSPECTIVES 

INSPIRE EVOLUTION 

38 

How can retailers better 

appeal to the female shopper? 

SELLING TO PROS 

HOW THE BIG GUYS 

SELL TO CONTRACTORS 

40 

And what can you 

learn from them? 

VOLUME 7, NO. 2 


DEPARTMENTS 

9 

10 

12 

20 

22 

32 

34 

42 

46 

50 

EDITOR’S MESSAGE 

It’s simple: don’t 

sell pegboard 

BUSINESS CONDITIONS 

Fourth quarter 2016 

MARKET REPORT 

The biggest players 

by province 

PRODUCT SPOTLIGHT 

Crystal hardware, 

bicycle care, and more 

NEWS SPOTLIGHT 

Lowe’s Canada has 

big plans for 2017 

NEWS FEATURE 

TSC’s focus 

remains on 

execution 

RETAIL TRENDS 

Optimism and 

opportunities abound 

for the independent 

SHOW REPORT 

A roundup of the first 

shows of the year 

STORE MANAGEMENT 

Maximizing your sales by 

merchandising efficiently 

ENDCAP 

Resourceful family turns 

around struggling store 


7

Recommended by 

Jim Caruk, Master Contractor, 

HGTV Host and Editor-in-Chief 

of Renovation Contractor Magazine 

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EDITOR’S MESSAGE 

IT’S SIMPLE: 

DON’T SELL PEGBOARD 

Out of stocks are not only dangerous, they are completely 

unnecessary. Don’t give up valuable space to empty shelves. 

And don’t give your customer a reason to shop elsewhere. 

MICHAEL McLARNEY, EDITOR 

“ 

Are you managing 

your out-of-stocks? 

Are you financing your 

inventory properly? 

The downside is simple 

and dangerous: a lost 

sale one time, but a 

lost customer over 

the longer term. 

” 

I 

n conversation with a contractor 

friend recently, he explained why he 

shops one local dealer in his small 

town over the other, competing store. The 

one dealer, he says, is often out of stock 

on important items, such as anchors or 

brackets in an adequate range of sizes. This 

forces him to shop down the road. 

“You have to have the product in stock 

or it wastes my time,” he says, adding 

the contractor’s favourite adage, “Time is 

money.” Granted, the less-favoured dealer 

is also more of a traditional yard, whereas 

the competitor, a home centre, offers a 

wider range of hardware and housewares. 

However, a potential for a greater strength 

in the back end at the building centre just 

isn’t there. “Nope, in fact, both stores have 

great quality lumber,” my friend assures me. 

So just how is this building centre dealer 

going to compete adequately if they don’t 

stand out with their LBM? They can start 

by being more diligent about out-of-stocks. 

Even in the off season, there’s just no 

excuse: “Don’t assume we won’t need what 

you should be selling.” 

Our NRHA Retail Advisor Bill Wilson 

urges dealers to keep a full range of A and 

B items in stock all the time (see his latest 

column in this issue on page 46). Are you 

managing your out-of-stocks? Are you 

financing your inventory properly? The 

downside is simple and dangerous: a lost sale 

one time, but a lost customer over the longer 

term. As Bill says, don’t sell pegboard. Every 

square foot of your store, every lineal foot, 

must work to maximize sales for your store. 

The flip side of this equation, of course, 

is keeping too much old or dead stock. 

Maintaining proper inventory levels while 

making room to drive best-selling items 

is a balance every dealer must work on 

continually. Like Bill says, walk your store 

every single week and identify empty 

shelves and hooks. 

Spring is here and your business is picking 

up. Now, more than ever, take the time 

to ensure you’re getting the most out of 

your shelf space. Remember, you’ll help 

your customer get the best out of their 

experience in your store. And you’ll keep 

them from going down the road to shop 

your competitor. 

mike@hardlines.ca 

www.hardlines.ca Hardlines Home Improvement Quarterly SECOND QUARTER / 2017 9

QUARTERLY BUSINESS CONDITIONS 

FOURTH QUARTER 2016 

I 

n our latest survey of dealers and suppliers, the outlook for 

the year ahead has remained consistently positive after a 

year of increased business across the board. 

After a winter of wild temperature swings and heavy snowfall 

in both the West and Atlantic Canada, both retailers and vendors 

reported that they expect sales to increase over the next 12 months. 

Part of their plan to help their businesses grow includes offering new 

products and/or services in 2017. 

The top issues right now for retailers are staffing, training, 

and decreasing margins, while vendors are concerned about the 

exchange rate with the U.S. dollar, higher raw material and shipping 

costs, and retail consolidation. 

How did your business compare with the same time last year? 

Do you expect your sales to increase over the next 12 months? 

21.1% 

SAME 

27.3% 

DOWN 

RETAILERS 

51.6% 

UP 

23.1% 

DOWN 

11.5% 

SAME 

VENDORS 

65.4% 

UP 

33.9% 

UNSURE 

RETAILERS 

17.8% 

NO 

48.3% 

YES 

4.0% 

4.0% 

NO 

UNSURE 

VENDORS 

92.0% 

YES 

The percentage of retailers 

experiencing better sales than 

last year has dropped down from 

63.6 percent to 51.6 percent 

in Q4 2016. 

The percentage of vendors 

experiencing better sales than the 

same time last year was up more 

than nine percentage points from 

Q4 2015, when 56.0 percent of 

vendors reported increased sales. 

Retailers’ outlook for the year ahead 

has remained positive; the percentage 

of retailers expecting increased 

sales remained virtually flat, while 

the number of retailers expecting 

decreased sales went down more 

than 13 percentage points from 

31.5 percent in Q4 2015. 

Vendors are extremely optimistic 

about the coming year. Year over year, 

the percentage of vendors predicting 

increased sales has gone up compared 

to Q4 2015’s 68.0 percent. And the 

number of those predicting decreased 

sales is down to four percent from 

eight percent in Q4 2015. 

Did your conversion 

rate increase in Q4 2016? 

Compared to 2015, are your 

sales per customer up? 

Did you receive more orders 

in Q4 2016 than in Q4 2015? 

In 2016, how did your business 

compare with 2015? 

40.0% 

EQUAL 

RETAILERS 46.7% 

INCREASED 

26.7% 

NO 

RETAILERS 

15.4% 

NO 

15.4% 

SAME 

VENDORS 

12.0% 

NO 

8.0% 

UNSURE 

VENDORS 

13.3% 

DECREASED 

73.3% 

YES 

69.2% 

YES 

80.0% 

YES 

The percentage of retailers 

who experienced an increased 

conversion rate compared to 

Q4 2015 remained consistent 

with that quarter’s 42.3 percent. 

The number of retailers 

experiencing more sales per 

customer has increased more 

than 10 percentage points from 

62.9 percent in 2015. 

Year over year, the number of vendors 

that received more orders in Q4 2016 

compared to Q4 2015 increased more 

than 10 percentage points, from 

54.2 percent that quarter. 

Year over year in Q4 2016, the number 

of vendors who experienced better sales 

went up 12 percentage points compared 

to Q4 2015, when 68.0 percent of 

vendors experienced more sales. 

10 SECOND QUARTER / 2017 

Hardlines Home Improvement Quarterly 

www.hardlines.ca

FOURTH QUARTER 2016 

BUSINESS CONDITIONS 

RETAILERS: Top issues in fourth quarter 

1. Staffing 

2. Training 

Did you offer new 

products/services in 

Q4 to better compete? 

Did you offer more 

products in Q4 to 

better compete? 

3. Decreasing margins 

4. Increased competition 

5. Succession 

RETAILERS 

64.3% 

NO 

35.7% 

YES 

40.0% 

NO 

VENDORS 

60.0% 

YES 

5. Customer retention 

5. E-commerce challenges 

8. Adding new services 

8. Exchange rate with U.S. dollar 

10. Supplier consolidation 

Year over year, the percentage of 

retailers offering new products 

and/or services to better compete 

was down significantly from 

55.6 percent in Q4 2015. 

Source: HARDLINES Quarterly Business Conditions Survey 

Looking back at 2016, the percentage 

of vendors that offered more products 

to better compete went up from 

50.0 percent in Q4 2015, increasing 

10 percentage points. 

10. Expanding products 

10. Increased presence of U.S. retailers 

13. Cross-border shopping 

14. Mortgage interest rates 

VENDORS: Top issues in fourth quarter 

1. Exchange rate with U.S. dollar 

2. Higher raw material/shipping costs 

3. Retail consolidation 

4. Competition from Asian sourcing 

5. Increased retailer demands 

6. Housing market 

6. E-commerce challenges 

8. In-store merchandising and replenishment 

9. Increased presence of U.S. retailers 

Bricks and Clicks 

November 14-15, 2017 

Sheraton on the Falls 

Niagara Falls, ON 

www.hardlinesconference.ca 

10. Cross-border shopping 


MARKET REPORT 

FLE 

WHO ARE THE TOP RETAILERS BY PROVINCE? 

The biggest players by province for the most part reflect the leaders nationally. 

However, there are some unique regional differences. (Calculations based on 2015 sales.) 

A 

n analysis of the top home 

improvement retailers in each 

province by sales indicates that 

most regions are dominated by the country’s 

largest player, Home Depot Canada. 

With sales exceeding $7 billion in this 

country, Home Depot Canada is particularly 

strong in provinces with large urban 

hubs, namely British Columbia, where it 

has 26 stores, and in Ontario, where it has a 

whopping 88 outlets. (In fact, almost half of 

Home Depot’s sales in Canada come from 

that province.) 

Conversely, in Quebec, Lowe’s/RONA is 

by far the largest player there, with more 

than a quarter of the market from 225 

stores. Its biggest competitor is Groupe 

BMR, which has 17 percent of the market 

from 303 stores. 

In smaller, and especially more rural, 

provinces, Home Hardware Stores Ltd. 

is most often the market leader. The 

exceptions are in Saskatchewan, where 

Federated Co-operatives Ltd. has the 

top spot, with 112 hardware and home 

improvement stores representing 14 percent 

of that province’s market. 

The other exceptions are in smaller markets, 

particularly Prince Edward Island, 

where Kent Building Supplies is number 

one; and in Nunavut, where Castle has two 

members that represent just over 40 percent 

of that market. 

Yukon is one of the country’s smallest 

markets, and perhaps its most fragmented. 

There, the lion’s share of home improvement 

sales is in the hands of independent, unaffiliated 

dealers, as well as Igloo Building 

Supply, which is a member of Independent 

Top Retailers per Region by Volume (2015 sales) 

Province Company Prov. Sales 

Lumber Dealers Co-operative and has its 

head office in Edmonton. 

In Manitoba, Home Hardware is hot on 

Home Depot’s heels, with 13.9 percent of the 

market from 47 stores. But in other regions, 

the runners up are varied. In Ontario, the 

largest market—but also the most crowded 

in terms of banners—Home Hardware is 

virtually tied with Canadian Tire for the 

number-two spot. 

In Saskatchewan, Home Depot is actually 

in the number-four spot. Home Hardware 

and Sexton Group are in second and third 

No. of 

Stores 

% of 

Prov. Mkt 

British Columbia Home Depot $1,038,135,714 26 22.4 

Alberta Home Depot $1,019,939,900 27 20.3 

Saskatchewan Federated Co-op $273,793,466 112 14.0 

Manitoba Home Depot $237,197,802 6 14.1 

Ontario Home Depot $3,548,479,121 88 26.3 

Quebec Lowe’s (RONA) $2,347,122,887 225 25.4 

New Brunswick Home Hardware $361,826,786 54 25.2 

Prince Edward Island Kent Building Supplies $84,928,160 5 33.8 

Nova Scotia Home Hardware $421,377,832 67 27.5 

Nfld. & Labrador Home Hardware $350,710,655 52 28.0 

Yukon Independents $36,346,091 9 34.3 

North West Territories Home Hardware $29,604,776 5 25.9 

Nunavut Castle $12,500,000 2 43.2 

place, respectively. TIMBER MART is next, 

with 11.2 percent of sales in the province 

from an estimated 44 stores. 

It’s worth noting that in a number 

of provinces, the lead by Home Depot 

Canada does not go unchallenged. In 

Alberta, for example, Canadian Tire 

is in second place, with 56 stores and 

12.1 percent of the market. And while 

Home Hardware is number three, the 

fourth-largest retailer is UFA, with almost 

eight percent of the Alberta market from 

39 stores. 

Source: HARDLINES 2016 Retail Report 



www.hardlines.ca

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NEWSROUNDUP 

OF THE HOME IMPROVEMENT INDUSTRY 

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

ORGILL EXPECTS TO REDUCE DELIVERY TIMES 

TO WESTERN CANADA WITH NEW DC 

Members of the London, Ont., 

distribution centre were on hand at 

Orgill’s most recent dealer market 

to discuss the enhancements to 

the Canadian distribution network. 

A 

s Canadian dealers prepared to 

fly down to New Orleans for the 

latest Orgill Dealer Market, the 

giant Memphis-based hardware distributor 

was ramping up its logistics to better 

serve those dealers. 

Orgill has launched the first phase of 

operations at its new Post Falls, Idaho, 

distribution centre, shipping to customers 

in certain regions of British Columbia. 

While the company originally planned to 

service just B.C. and Alberta from this facility, 

Orgill has since expanded its planned 

coverage. “When the distribution centre 

becomes fully operational in April, we will 

also service our Saskatchewan customers 

from Post Falls,” says Ron Beal, Orgill president, 

chairman, and CEO. Most customers 

in Western Canada will then be serviced by 

Orgill Canada trucks, which will result in 

faster delivery times and reduced freight 

costs, the company says. 

Over the past 18 months, 

Orgill, Inc. has invested significantly 

in its Canadian distribution 

network and infrastructure 

to provide greater service 

and flexibility to its growing 

customer base throughout the 

country. Customers in British 

Columbia will receive their deliveries 

within two days of their 

orders filling and trucks will service 

Alberta and Saskatchewan 

customers within three business days. 

“This is significant because it means that 

these customers can count on a consistent, 

pre-scheduled time of delivery with a driver 

they know,” explains Randy Williams, 

Orgill general manager of distribution. 

“It also means that the product will be 

delivered in a heated trailer to minimize 

any potential freezing or weather-related 

damage.” 

The latest Orgill Dealer Market offered a full range of 

products for the Canadian market. 

The company saw a strong showing of 

Canadians in New Orleans in mid-February, 

where Orgill showcased “a full offering of 

Canadian-focused products, programs, and 

services,” says Beal. Members of Orgill’s 

London, Ont., and Post Falls operations 

and logistics management teams were on 

hand to meet with customers, answer questions, 

and discuss the enhancements to the 

Canadian distribution network. 



www.hardlines.ca

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

BMR EXPANDS SERVICES FOR 

ITS NEW RANGE OF BANNERS 

S 

ince developing a range of banners 

to accommodate the various 

store formats it serves, Groupe 

BMR has been working to refine the programs 

associated with those banners. 

Late last year the company unveiled 

a new branding strategy for its stores: 

BMR Express for its hardware stores, 

BMR Expert for its building centres catering 

to contractors, and BMR Extra for its 

large-surface outlets. The BMR name 

will continue to be used as a standalone 

banner for home centres that cater to 

the general DIY customer with a mix of 

hardware and building materials. 

Now those different identities are being 

reflected in BMR’s advertising programs. 

Each banner gets a specially tailored flyer, 

featuring different product offerings that 

reflect the sales and expertise of each 

BMR banner. 

Of the group’s 230 BMR stores, the 

plan is to switch about 70 stores over 

to BMR Express by the end of this year. 

In 2018, conversions will continue, with 

23 becoming BMR Extra, and 21 taking 

the BMR Expert banner. The remaining 

120 BMR stores will stay with the generic 

BMR brand. 

Over time, another 60 stores will retain 

the Unimat banner. That banner became 

part of the BMR portfolio when BMR was 

taken over by La Coop fédérée in 2015. 

The company also has about three dozen 

farm and hardware stores carrying the 

Agrizone banner. 

CANADIAN TIRE AD GOES VIRAL 

An ad by Canadian Tire that features a theme 

of inclusion has drawn considerable attention 

on social media. While the ad was launched six 

months before, it had been gaining views at the 

end of February, thanks to a heartwarming story 

line that features neighbourhood children inviting 

a boy in a wheelchair to join their basketball game. 

Called “Wheels,” the ad grew from 800,000 views 

to more than 50 million views and 1.7 million 

shares in one week. 

BRIEFLY 

LUMBERZONE ACQUIRES NORTH 

AMERICAN LUMBER STORES 

The LumberZone, a TIMBER MART memberdealer, 

has announced its acquisition of the 

business operations and assets of North 

American Lumber’s Winnipeg and Stonewall, 

Man., locations, in a deal that took effect at the 

beginning of March. North American Lumber 

will honour any sales and contracts before this 

date. LumberZone partners Joel Hartung, Jon 

Penner, and Ira Dyck will add more than 24,500 

square feet of additional retail and warehouse 

space to their existing facilities in Steinbach. 

All existing staff will retain their jobs. 

RENO-DEPOT LAUNCHES 

CLICK AND COLLECT PROGRAM 

Lowe’s has introduced a “Click and Collect” 

program for its Reno-Depot stores across 

Canada. The buy online, pick up in store 

plan allows customers to pay for purchases 

online and collect them within two hours. 

Each of the 21 Reno-Depot stores will serve 

as pick-up points for the service. In a second 

phase of the online service, customers will 

be offered at-home delivery through Reno- 

Depot’s delivery fleet. 

MAAX BATH SOLD 

TO AMERICAN COMPANY 

Bath maker MAAX is being sold off to the 

American Bath Group by owner Brookfield 

Asset Management. The value of the sale was 

not disclosed. MAAX has four plants in Canada, 

three of them in Quebec, and four more in 

the U.S. Founded 47 years ago in Quebec, 

the company says it will keep its production 

facilities in place, working independently 

from Tennessee-based American Bath. It will 

continue to be headed by CEO Mark Gold. 

www.hardlines.ca w 

Hardlines Home Improvement Quarterly SECOND QUARTER / 2017 15

NEWSROUNDUP 

CASTLE CONTINUES TO GROW 

C 

astle Building Centres Group 

continues to grow its ranks, as its 

mandate to leave member-dealers 

to operate under their own banners in their 

own markets resonates with independents. 

Florence Mill Inc. is a family-owned 

business in Florence, Ont., that was 

founded back in the early 1970s. Over 

time, the business evolved into a fullservice 

lumber, building materials, and 

hardware store now owned and operated 

by Jeff and Sue Rickman, along with 

their son Chris. Another new member is 

Matériaux Direct in La Pocatière, Que., 

which in the Lower Saint Lawrence region 

north of Quebec City. The store was 

established by Dany Levesque and Maxime 

Bossinotte, who identified a growing 

demand for LBM by the contractors 

in their market. They plan to hold an 

official grand opening for the store in 

early spring. 

Another recent store to join is also a 

new member for Quebec. Quincaillerie 

Touraine is a family-owned operation with 

two stores in the Ottawa region. The first 

was established in Gatineau 45 years ago; 

the second store, in Cantley, was installed in 

2005. Both stores, which sell a full complement 

of LBM and hardware, will hold grand 

re-opening celebrations this spring. 

And in Alma, N.S., Shady Lane Building 

Centre recently joined. The store was 

founded 10 years ago by Abe Plett. His 

sons Andre and Eldon grew up in the 

family business and help operate it now. 

Their product assortment includes lumber, 

building material products, and hardware. 

Another addition is G & C Hardware in La 

Scie, Nfld. The business, founded by Glen 

and Cathy Newbury, opened in this Baie 

Verte Peninsula coastal town in 2010. As 

part of the move to Castle, G & C Hardware 

will close its existing location and move to 

a larger footprint at a newly acquired store 

just minutes away. 

These latest recruitments follow the 

signing of two other dealers late last year. 

Parliament Building Supplies, a fixture in 

downtown Toronto’s Portlands area for 

more than a century, switched to Castle 

under a new owner, Fastway Group. Fastway 

is a division of Mill Street and Co., an 

investment group that purchased Thorold 

Lumber in December. Thorold Lumber was 

already a Castle member. And in Yarmouth, 

N.S., E & J Millworks, which specializes in 

custom millwork design, also signed with 

Castle. That business has been a part of its 

community for 40 years. 

CITT UPHOLDS GYPSUM TARIFF, 

STANDS BY DUMPING RULING 

In its ruling, Canada’s international trade 

regulator upheld complaints made by 

domestic drywall manufacturers about 

the dumping of U.S. gypsum in the Western 

provinces. 

The federal government will cut duties 

on U.S. drywall imports to Western Canada 

by 32%. At the same time it is pouring 

$12 million from duties collected to date 

into a rebuilding grant for the wildfirestricken 

community of Fort McMurray. 

The duties were imposed to combat the 

dumping of U.S. drywall into the Canadian 

market, but Canada’s International Trade 

Tribunal agreed with complaints from 

Western homeowners and contractors that 

the tariffs were hurting their economy. 

In its December decision and the full 

report published in January, the tribunal 

found that the dumping of U.S. gypsum 

into the Canadian market was injurious 

to Canada’s economy, but that tariffs at 

the rates originally imposed were more 

harm than help. U.S. drywall has been a 

boon to the restoration efforts around 

Fort McMurray, Alta., where thousands of 

residents were evacuated last May during 

a two-month wildfire outbreak. 

The Canadian International Trade Tribunal 

has upheld complaints of gypsum dumping 

in Western Canada and recommended 

imposing final duties. 

The tribunal found that the duties would 

lead to “house buyers paying thousands of 

dollars more for a typical home... in a market 

where builders and ultimately house buyers 

have already seen other major increases 

in costs.” 



www.hardlines.ca

KENT BUYS UP CENTRAL 

HOME IMPROVEMENTS 

C 

entral Home Improvements, 

a fixture in Nova Scotia since 

1976, became part of the Kent 

Building Supplies group of stores in 

January. Central’s founder Steve Smith 

noted at the time of the announcement 

that the company had reached 

“a crossroads.” Smith said in an email 

that “demographics are changing and 

with [that] has come greater pressures 

to invest heavily in infrastructure and 

technology in order to grow and expand.” 

He was persuaded to sell to Kent, a 

division of J.D. Irving, in part because 

of the New Brunswick-based conglomerate’s 

roots and its track record in 

the Maritimes. 

The business, which is wholly owned 

by Smith, is part of the Central Group of 

Companies, along with Atlantic Windows, 

Central Truss, and a number of other 

companies related to residential and commercial 

real estate and land development. 

Central has seven Nova Scotia stores, 

primarily in Northeastern Nova Scotia, 

with one location in Windsor. Stores 

range from big boxes in Stellarton, 

Antigonish, and Sydney to small and midsized 

stores in Guysborough, Inverness, 

Windsor, and Port Hawkesbury. They 

will be added to Kent’s existing network 

of 43 stores throughout Atlantic Canada. 

The new owner has said Central’s current 

400 employees will keep their jobs. 

Kent Building Supplies group purchased Nova Scotia 

fixture Central Home Improvements in January. 

BRIEFLY 

WAL-MART, VISA END 

THEIR FEES DISPUTE 

Wal-Mart Canada and Visa reached a confidential 

agreement, ending their dispute 

over card fees for retailers. Last year, Wal- 

Mart began refusing the card at stores in 

Northwestern Ontario and Manitoba over 

what it described as excessive fees, threatening 

to roll out the ban to its 400 Canadian 

stores. Visa countered by offering cardholders 

a $10 credit for buying groceries from 

Wal-Mart’s competitors. Neither company 

released details of the agreement. 

REGAL IDEAS RECOGNIZED AT IBS 

Regal ideas, manufacturer of aluminum railing 

systems, won the Best of IBS Award for 

Most Innovative Building Product at this 

year’s NAHB International Builders Show 

held in Orlando, Fla. Regal ideas’ LED lighting 

and railing systems, including Crystal Rail, 

were among more than 400 entries in nine 

categories being considered for the awards. 

In addition, Regal’s Quick Step Stair System 

was selected as a finalist for Best Outdoor 

Living Product. 

COLOGNE INTERNATIONAL 

HARDWARE FAIR TO EXTEND 

HOURS, REACH IN 2018 

In 2018, Eisenwarenmesse–the International 

Hardware Fair will be held in Cologne from 

March 4 to 7, returning to a four-day format. 

The show, which is run every two years, 

attracted some 44,000 trade visitors from 

124 countries to Cologne in 2016. That year, 

the show shrank to three days. However, 

the reduced schedule led to an increased 

concentration of the business activities 

of the trade fair participants, encouraging 

organizers to return to four days. 

www.hardlines.ca Hardlines Home Improvement Quarterly SECOND QUARTER / 2017 17

NEWSROUNDUP 

NATIONAL DEALER ASSOCIATION 

PREPARES FOR NEXT STEPS 

T 

he confederacy of regional 

LBM associations, the 

Canadian Retail Building 

Supply Council (pictured here 

with their regional chairs), is moving 

ahead with efforts to work 

more closely together on issues 

common to dealers across the 

country. Positioning itself as a national voice for the industry, the CRBSC invited input 

from other industry leaders at its Leadership Summit, held in Halifax on March 22, during 

day one of the ABSDA Buying Expo. 

The executives of CRBSC sent out an invitation to senior industry leaders to provide 

input in a series of high-level discussions that will focus primarily on the following 

industry needs: advocacy, education, and labour force development. 

According to a letter signed by current CRBSC chair Richard Darveau, who is also 

president and CEO of the Quebec association, AQMAT, the discussions will seek ways 

to guide the regional associations “to align their service delivery models to better serve 

our dealers, suppliers, and manufacturers across Canada.” 

HOME DEPOT TARGETS PRO 

CUSTOMERS WITH DATA 

Data mining is just one of the ways Home 

Depot is trying to improve its offering 

to its pro and contractor customers. At 

the National Retail Federation’s annual 

convention in New York, David Abbott, Home 

Depot’s vice president of integrated media 

and online marketing, talked about how his 

company is motivating customers to shop 

at Home Depot. 

While that initiative will continue to include 

a heavy focus on advertising its products, 

the company is also exploring capabilities to 

reach specific audiences, Abbott says. 

“We want to go after some of the targeting 

capabilities that exist right now. Our email and 

our [customer relationship management] 

team are pretty robust in terms of how 

they’re approaching segmentation, but now 

the tools on other digital media are catching 

up,” he said. “We’re leveraging that more and 

more through data-management platforms.” 

The company is using data to analyze the 

existing customers the company attracts. 

“[Pros and contractors equal] about 10% of 

our customers in terms of number, but they 

make up about 40% of our sales,” Abbott 

says. “So if we know we can acquire or retain 

a pro and spend an extra dollar for a longer 

term, more and more success metrics will be 

moving in that direction over time.” 

(For more on how Home Depot is appealing 

to pro customers, turn to page 40.) 

BRIEFLY 

CANADIAN TIRE MAKES 

PROPERTY TAXES DEAL 

Canadian Tire has reached a deal with 

the body that assesses property 

taxes in Ontario to reduce the value of 

their properties, with taxpayers making 

up the difference. A Memorandum of 

Understanding with the Municipal Property 

Assessment lowers the retailer’s tax 

liability, ultimately leading to tax refunds. 

“These big box stores go vacant, they 

tend to stay on the market for a long 

time,” MPAC’s VP and COO, Rose McLean, 

explained to the CBC. “They’re not easy 

to repurpose. That’s why we’ve made a 

decision to increase the depreciation on 

the stores, because they don’t hold their 

value.” The amount of the refund will vary 

by municipalities. Other retailers who 

have applied for similar breaks include 

Lowe’s, Home Depot, and Costco. 

AQMAT RECOGNIZES 

FAMILY BUSINESS 

Roland Boulanger & Cie ltee was awarded 

the prestigious Prix Patrimoine from the 

Quebec Hardware and Building Materials 

Association (AQMAT) at its annual Gala 

Reconnaissance, held in Quebec City on 

February 18. The award honours family 

tradition in the hardware and building 

materials industry, celebrating businesses 

where two or more generations work 

together. Boulanger, which produces 

mouldings, exterior wood siding, ceilings, 

and recycled plastic deck boards, is now 

in the hands of the third generation of 

the Boulanger family. The award served 

to kick off the company’s 75th year in 

business. 



www.hardlines.ca

Well Connected. 

Sexton Member’s Story... 

Ed Stol, 

Penhold Building Supplies 

Penhold, Alberta 

“Our company involvement and support in 

our community is something we take great 

pride in. Over the years we have supported 

many projects and events in our surrounding 

communities. There is no greater feeling than 

having that support reciprocated back when 

you need it. These people are not only our 

customers, but friends as well. It’s extremely 

comforting and uplifting to be part of this 

community.” 

Please Contact Steve Buckle: 1-800-665-9209 

Go to www.sextongroup.com and watch what’s going on in our dealers’ communities.

BY GEOFFREY McLARNEY 

ProductSPOTLIGHT 

Nostalgic Warehouse crystal hardware 

Nostalgic Warehouse has unveiled a new collection of brightly coloured crystal knobs, available 

in two of their most popular styles—the Crystal and the Waldorf. The knobs may be mixed and 

matched with 12 different plates in designs ranging from elaborate scrolls to simple rosettes. The 

hardware is crafted from hot-forged brass, providing a strong, durable surface for intricate design 

work. Further customization options feature eight finishes: antique brass, antique pewter, bright 

chrome, oil-rubbed bronze, polished brass, satin nickel, timeless bronze, and unlacquered brass. 

www.nostalgicwarehouse.com 

WD40 bicycle care products 

WD40’s BIKE line offers cyclists a range of products to keep their 

bikes clean and in good condition. It includes wet and polymer 

formula dry lubes, which extend the life of a chain by preventing 

friction damage, and an All Conditions Chain Lubricant. These lubes 

contain no wax and won’t leave build-up. The Chain Cleaner and 

Degreaser uses a precision aerosol spray to remove grease and 

grime with a fast-acting foam. Rounding out the kit is the 24 oz. 

All Purpose Bike Wash, which contains powerful surfactants to 

dissolve grime. It’s biodegradable and safe for all bike surfaces. 

www.wd40.com 

Cinaton hands-free vessel faucet 

Cinaton’s B3004 hands-free vessel faucet makes washing your hands 

easier and more hygienic. Its five infrared sensors provide control over 

13 functions, from temperature to water flow, but are concealed by 

the faucet’s simple silhouette. The B3004 includes a “pause” function 

and battery-back up, as well as three user-defined pre-sets and a 

maximum temperature setting to prevent accidental scalding. With its 

germ-free operation, it is as suited for a medical or office setting as for 

a butler’s pantry or bar. The solid brass construction is available in two 

finishes: brushed nickel and polished nickel with a PVD coating. With its 

intermittent water flow and an automatic shut-off feature, the B3004 

claims to reduce water usage by as much as 70 percent. 

www.cinaton.com 



www.hardlines.ca

PRODUCT SPOTLIGHT 

Weiser Kevo Convert smart lock conversion kit 

With Weiser’s Kevo Convert, any lock can be a smart lock, controlled from the user’s mobile device. 

The conversion kit, which transforms any deadbolt into a smart lock, is now available in Canada. 

The Convert expands Weiser’s Kevo platform to include touch-to-open smart locks and conversion 

kits. Users can easily assign keys and control access, while the InHome Locking and Unlocking 

feature gives the user the ability to control front doors from smartphones within Bluetooth range. 

www.weiserlock.com 

Sunroom Solutions sunroom additions 

Sunroom Solutions provides a customized home retreat for spring, 

summer, and fall. These sunroom additions offer protection from 

wind, rain, sun, and allergens. Vinyl pane windows, a less expensive 

alternative to glass, are suitable for porch enclosures, gazebos, 

sunrooms, and home additions. Consumers can relax in a screened-in 

enclosure or slide the panels up to shield from the elements. 

www.sunroomsolutions.ca 

Milwaukee M18 Fuel 1/4" Die Grinder 

Milwaukee’s M18 Fuel 1/4" Die Grinder is capable of removing material faster 

than a corded grinder and can grind for up to 20 minutes on a single charge. 

According to the manufacturer, it has up to 10 times longer motor life, and can 

remove up to twice as much weld as any cordless die grinder on the market. 

The grinder combines Milwaukee’s Powerstate brushless motor 

with the RedLithium battery pack and Milwaukee’s exclusive 

RedLink Plus technology, built into each tool to improve 

performance and prevent overheating. 

www.milwaukeetool.ca 

Nokori oval-shaped freestanding tub 

The Nokori Oval 6737 is BainUltra’s latest addition to the Nokori 

Collection. The oval-shaped freestanding bath incorporates flowing 

curves and clean lines. The exterior of the tub is stark and stylish, 

without ornamentation, while the interior has been designed to 

accommodate two bathers comfortably. The tub holds 66 gallons of 

water for an immersive soak. Crafted exclusively of durable white 

acrylic, it has a seamless appearance and a made-to-last finish in a 

choice of glossy or UltraVelour, a new matte finish exclusive to BainUltra. 

www.bainultra.ca 


NEWS SPOTLIGHT 

FLE 

Lowe’s will be closing the Ace head office and operating the 

independent banner out of its head office in Boucherville, Que. 

LOWE’S CANADA HAS BIG PLANS FOR 2017 

Between converting RONA stores to the Lowe’s banner, closing the Ace Canada Winnipeg and 

Kitchener offices and distribution centres, and continuing to open stores, Lowe’s Canada has had a 

busy first quarter this year. And the company has plenty more planned for the rest of the year. 

L 

owe’s Canada has announced it is stepping up its investment 

in the Ace independent business that it owns through 

its acquisition of RONA. Lowe’s will bring the management 

and support of the Ace program into the Lowe’s Canada 

regional service centre in Toronto, while moving distribution 

for Ace to Lowe’s existing distribution centres in Boucherville, 

Que., and Calgary. 

The move will result in the closing of the Ace head office and 

warehouse in Winnipeg, the closing of Ace’s distribution centre in 

Kitchener, Ont., and leveraging of the Calgary and Boucherville 

locations to continue serving Ace dealers. 

Winnipeg is scheduled to close by August, while Kitchener is 

expected to shut its doors by late fall. 

Industry observers have previously speculated about Lowe’s longterm 

interest in Ace and the independent network it serves but 

with this move the company is affirming its willingness to invest 

resources to support and grow the entire independent retailer network. 

It plans to enhance dealer growth by fostering marketing support, 

growing the Ace product offering, and providing improved 

product pricing. 

“Our goal is to support Ace dealer sales growth and profitability 

by establishing a dynamic dealer support program that offers 



www.hardlines.ca

our dealers a better share in their markets,” said Alain 

Brisebois, executive vice president of affiliated dealers. 

“We strongly believe in independent retailers, a key 

vector for our growth. Within this context, investing 

in Ace programs will ensure a successful longer-term outcome.” 

Ace will continue to be treated as a distinct business unit within 

the Lowe’s organization, alongside the big box, Reno-Depot, and 

RONA proximity segments. Brisebois emphasized that Lowe’s 

regards Ace as an important part of the company’s success. “Lowe’s 

will continue to invest in the Ace program to ensure this success.” 

He added that Lowe’s will make every effort to ensure a smooth 

transition, providing resources that actively support employees, 

dealers, vendors, and customers. The company will ensure all dealers 

continue to be served during the switch to the new distribution 

centres, a process that will involve converting their systems to the 

same ones used by RONA affiliate dealers. 

RONA CONVERSIONS BEGIN 

Meanwhile, the company has also begun converting RONA 

big box stores to the Lowe’s banner. Namao RONA Home and 

Garden store, in Edmonton’s north end, is the first such store to 

rebrand. The Namao store will undergo an extensive renovation 

and remerchandising. That process is expected to be completed 

by this summer. 

But beginning in mid-February, the store launched a 16-week 

physical transformation that involves construction, departmental 

sequencing of new racking and re-merchandising, branding, and 

IT conversion. As well, staff there received the benefit of Lowe’s 

extensive training program. When completed, the store will feature 

97,429 square feet of retail sales space, an adjacent garden centre 

with 30,188 square feet, and a 16,922-square-foot lumber yard. 

“The store will remain open during the conversion and we are 

committed to minimizing any impact on customers so that we can 

Left: The Namao store in Edmonton will be the first RONA big box to convert 

to the Lowe’s banner; Right: Lowe’s latest Reno-Depot store opened recently 

in Boucherville, Que., just minutes from the company’s head office. 

continue to offer the best shopping experience possible during the 

conversion process,” said Jim Caldwell, EVP of Lowe’s Canada Big 

Box Retail. 

One of the key changes to the store will be the addition of large 

appliances, a core strength for Lowe’s stores. Lowe’s will also add 

installation services across a number of categories, warranty plans 

for products such as appliances, tools, and outdoor power equipment, 

and online shopping options, including the “Click & Collect” 

program for in-store pickup and local truck delivery and parcel 

shipping. This service was introduced at its Reno-Depot stores 

recently. 

COMMITMENT TO INDEPENDENT STORES REMAINS 

Although the company has begun the transition of RONA’s big 

box stores with the Namao store, the RONA brand will continue 

to be part of Lowe’s Canada’s strategy for its smaller proximity 

stores and for its independent, or affiliate, dealers. Four new 

RONA proximity stores will open in the coming months, all 

of them in Quebec. Three will be corporate stores, located in 

St-Félix-de-Valoix, Carignan, and Rouyn; one affiliate store is 

planned for Blainville. 

Lowe’s Canada has also opened a new RONA affiliate dealer in 

Tsawwassen Commons, B.C. With a retail space of 44,000 square 

feet and a 12,000-square-foot drive-through lumber yard, the store 

is served by 40 employees. 

As for RONA’s Reno-Depot chain, those big boxes will remain a 

separate banner, focusing more on pros and contractors. The latest 

Reno-Depot store opened recently in Boucherville, Que., just 

minutes from Lowe’s Canada’s head office. 


BY SIGRID FORBERG 

THERE’S NO 

PLACE LIKE 

HOME 

Inside and out, Canadians are looking 

at and interacting with their homes in 

ways they never have before. Here, we 

look at some of the trends retailers and 

manufacturers are seeing, and what 

kinds of products you can expect to 

see increasing in popularity. 


Hardlines Home Improvement Quarterly

FEATURE 

EMERGING CATEGORIES 

H 

omeowners are looking at their 

dwellings differently these days. 

Whether it’s in response to the dollar’s 

value, or the desire to make a political 

statement, many Canadians are choosing not 

to travel abroad and sticking closer to home. 

And with the money they would be 

spending on trips, they’re instead investing 

in making their homes a place of comfort 

and safety, and reflective of their individual 

personalities. 

STYLISH ALL SUMMER LONG 

When winters are as long and harsh as they 

can be in Canada, it’s natural that summer 

becomes a highly anticipated season. One 

trend retailers have picked up on in recent 

years is that Canadians are eager to make 

the most of their longer days by effectively 

living outside during the summer months. 

Valérie Brien, BMR’s director of purchasing 

for hardware, says the company started 

to focus on outdoor living and seasonal 

back in 2012, and launched its first seasonal 

catalogue the following year. “People want 

to make the summer last as long as they can 

and they want to spend their time outside,” 

says Brien. “We see changes in the sales; 

we’re seeing increases in sales of sectionals 

and seating sets because people want to sit 

outside, comfortably.” 

At Home Depot Canada, Megan 

Schroeder, divisional merchant for patio, 

has noticed the same thing. She says the 

trend right now is to turn the patio space 

into an outside living room, complete with 

garden décor items like carpeting, lanterns, 

and string lights to give it that homey feel. 

And she adds shoppers are not looking to 

sacrifice style, either. 

“We’re looking for items that are ontrend 

and fashionable,” says Schroeder. 

“Years ago there used to be a lot of brown 

patio furniture out there, but the ’70s had 

their time. Now, we’re seeing a lot of things 

are grey and much more like what you’d put 

inside your home as opposed to just outside 

for a short season.” 

BMR’s director of purchasing says consumers are 

turning their patios into outdoor living rooms. 

Other major retailers have been responding 

to the demand for stylish outdoor furniture 

and accessories. Canadian Tire for 

its part has been releasing more trendy 

outdoor items under its Canvas brand, 

promoting all the accessories to make an 

outdoor space a “stylish retreat,” such as 

lanterns, throw pillows, and planters. 

Of course, there are many households— 

especially in urban areas—that may not 

have space for large sectionals and dining 

tables. With the growing number of 

apartments and condo-dwellers, there’s 

Home Depot buyer Megan Schroeder says 

shoppers are looking for patio furniture 

that’s comfortable and stylish. 

also a market for smaller-sized patio items 

that can fit on a balcony. At Home Depot, 

Schroeder says they carry small, bistro-size 

tables as well as half-size umbrellas. 

MAKING THE MOST OF THE SEASON 

Brien and Schroeder agree that while style 

is a huge factor in what shoppers are looking 

for from their outdoor living products 

right now, there’s another consideration 

that often trumps all else: price. 

“What dealers and consumers are looking 

for in this category is always quality, 



style, and pricing,” says Brien. “They want 

good-looking styles with affordable prices.” 

Once they’ve managed to decorate their 

outdoor space to their liking, Canadians 

are then looking for any way to extend the 

amount of time they can enjoy the summer 

season. At BMR, Brien says this means people 

are adding features like fire pits, pizza 

ovens, and all-season barbecues. 

BMR also recently partnered with BBQ 

Québec, and is selling the Quebec highend 

barbecue company’s products in 20 

stores, as well as carrying planograms of 

accessories and spices through another 70 

locations. She says they’re very optimistic 

about the partnership and its offerings. 

“They’re the number-one destination for 

barbecue lovers,” says Brien. “Their customers 

want to be able to cook barbecue 

all year long so that is something different 

and new for us.” 

And with their high-end outdoor appliances, 

the food Canadians are preparing 

outside is more in line with the general 

FEATURE 

“foodie” trend that has overtaken home 

cooking in recent years. 

“People want to grow their own vegetables,” 

says Brien. “So we’re seeing that 

they’re buying garden beds, seeds, planters, 

and accessories.” For their customers 

interested in gardening and nursery projects, 

BMR started distributing an annual 

gardening catalogue in 2015 and Brien says 

there’s been a huge interest in that. 

And it’s not just about growing your own 

vegetables. In the last few years there has been 

a big push for home gardeners to think about 

issues such as biodiversity and bee populations. 

Gardening experts like Mark Cullen, 

Home Hardware’s garden spokesperson, 

and Melinda Myers have used their public 

platforms to remind homeowners of the role 

pollinators play in our food production and 

plant reproduction. There’s a wider demographic 

looking to cultivate their gardens and 

their concerns go beyond the most attractive 

blooms. Retailers with garden centres are 

wise to learn about their region’s biodiversity. 

GREEN ON THE INSIDE, TOO 

As concerns surrounding the environment 

continue to increase, consumers are also 

looking for alternative products that both 

ease their conscience and actually work. 

When green cleaning products started to 

gain popularity in the Canadian market in 

the 1990s, there was a perception that when 

you removed the chemicals from a cleaner, 

you also took away its efficacy. 

A study done in 2014 revealed that the 

Canadian demographics most interested 

in green products are under 35 years of age 

and households with children, but a growing 

awareness of environmental issues is 

making eco-friendly more appealing for a 

wider demographic. As more young people 

are buying homes and having families, it’s 

only prudent for retailers to keep an eye on 

green products as they continue to gain in 

popularity. 

Bill Waters is the marketing director for 

SciCorp, a sustainable cleaning products 

business based out of Barrie, Ont. Waters 

Form meets function with well designed, high-tech devices 

BY MICHAEL McLARNEY 

The best examples of good design are usually 

the simplest. But to secure a place in today’s 

home, they must be appealing, unobtrusive, 

as well as functional. Take the kitchen faucet. 

Even though its role in the kitchen limits 

how much the basic design can be tinkered 

with, technology has opened the door to all 

kinds of space-age tweaks. Delta offers a 

line of faucets with a choice of “Touch2O” 

technology, allowing the faucet to be turned 

off by touching the handle. It even includes 

an LED light to signal desired temperatures. 

At Moen, a line of faucets with “MotionSense” 

technology activates water flow with the 

wave of a hand. 

But other examples of good design smack 

of reinvention. Just look at the Nest, which 

transforms the digital box that serves as a 

thermostat into a sleek intuitive device that 

would be more at home in a space-age movie 

set. It has taken the round shape that evokes 

the traditional wall thermostat that graced 

the walls of homes for almost a century, and 

added the high-tech functionality of a programmable 

thermostat—and then some. 

Lighting has become a style element itself. 

Phillips’ Hue lighting system, which lets you 

change not just the brightness, but the colour 

of a light, from a mobile device, has rethought 

the way lighting can interact with the living 

space. The system is driven by a “bridge” and 

add-ons include smart-looking motion detectors 

and a tap switch that stores lighting combinations 

for reuse. 

Even low-tech standbys of the home can 

benefit from new technologies that free up 

design options. Bathtubs today are open to all 

kinds of new looks, especially when it comes 

to freestanding units. MAAX’s tubs make 

use of the latest materials and processes 

to offer everything from very traditional looks 

to tubs with rounded curves, embossed 

sides, and multiple colour choices—including 

“Pink Martini.” 

Dealers selling products that feature good 

design as well as great function can rise to the 

challenge by creating stylish and imaginative 

merchandising of their own that showcases 

the look of these items, while offering important 

user information to help customers better 

understand the new technologies. 



www.hardlines.ca

partnership. unmatched. 

Contact us at: 416.275.1670 or email: benjamin.waksdale@festoolcanada.com 

“Festool provides us with consistent and 

attractive margins and an industry leading 

service program. With Festool’s distribution, 

I don’t have to worry about competing with the 

large format stores down the road.” 

Steve Running 

Contractor Sales Representative 

Home Hardware Centre Woodstock 

festoolcanada.com


says while he thinks people want to be ecofriendly, 

they’re also suspicious of products 

that tout themselves as green. 

“The consumer is having a really tough 

time believing in various retailers and 

various products,” he says. “The demand 

is there, and it’s being driven by regional 

and political initiatives such as waste diversion, 

but people are really trying to figure 

out how to filter the good from the bad, the 

wheat from the chaff.” 

SciCorp, which has licensed the WM/ 

Waste Management name, has developed 

a natural cleaner made from plant-based 

micronutrients. In addition to cleaning 

effectively, the product also touts its odourneutralizing 

power. Waters says the product 

is beginning to gain traction with retailers 

across Canada, especially in cities, where 

the cleaner is perfect for organic waste bins, 

which attract all kinds of pests ranging 

from raccoons to rats. 

“When you talk about the urban side of 

things and the need there, I think it’s just 

going to continue to expand,” says Waters. 

ALL IN THE PALM OF YOUR HAND 

In an increasingly technology-driven 

world, homeowners are eager for new 

products to help make their lives easier. 

According to Berg Research, there were 

12.7 million smart homes in North 

America by the end of 2015 and the category 

has only continued to increase in 

popularity. Lighting is one area in particular 

that has seen a lot of growth in 

recent years as the products continue to 

evolve beyond the old familiar options. 

Connected lighting is one of the top three 

categories of interest to consumers. 

Annie Stavridis, integrated communications 

manager for Philips Lighting Canada, 

says personalized lighting is very much on 

trend right now. The company has several 

products on the market that consumers can 

control from their smartphones, tablets, or 

even through voice control, and can customize 

with different light settings, to “create 

the right ambiance for any moment.” 

FEATURE 

(Left) Lowe’s Canada’s Alan Blundell says Nest has been one of the company’s most 

popular smart home products. (Right) Blundell is particularly enthusiastic about a robotic 

lawn mower Lowe’s is carrying this spring. 

One especially popular product from 

the company is the Philips Hue, which can 

also be synced to match a homeowner’s 

activities. “It gives you peace of mind and 

enhances your daily activities and routines, 

allowing you to enjoy immersive entertainment 

experiences, such as syncing with 

music, movies, TV shows, and games,” says 

Stavridis. 

When it comes to the smart home category, 

Lowe’s is working hard to stay on 

the leading edge. Alan Blundell, Lowe’s 

Canada’s divisional vice president for merchandising, 

says it’s a category that fits into 

the company’s overall strategy well. 

“Lowe’s is focused on thinking about our 

strategy overall in terms of research and 

development and being innovative,” says 

Blundell. “And this is definitely a rapidly 

growing category and we’re continuing to 

add products all the time.” 

Blundell points out that with the 10-year 

anniversary of the smartphone’s invention 

this year, everyone’s looking at more ways to 

continue to integrate the devices with products. 

But it’s really been in the last three 

to five years that he says he’s noticed the 

category gaining in popularity, establishing 

itself in the marketplace. 

He adds that at first, it was a category 

for young, Millennial “early adopters”, but 

products are becoming more accessible 

for users of a variety of devices, and the 

category has opened itself up for all kinds 

of consumers. 

The Nest thermostats, from Nest Labs, 

a home automation producer of programmable, 

self-learning, sensor-driven, WiFienabled 

thermostats, smoke detectors, and 

other security systems, have become one 

of Lowe’s most popular products. With 

these devices, consumers are able to control 

all those products from an app on their 

phone. Blundell says the Nest products have 

enjoyed prominent placement as a feature 

end cap at Lowe’s stores for the last year. 

Innovation is a priority for Lowe’s head 

office, Blundell says, and they’ll definitely 

be keeping their eyes out for new products 

that are integrating technology to help meet 

customers’ needs even better. One product 

that he’s particularly enthused about, coming 

this spring, is a robotic lawn mower. 

“People can just set it and sit back and 

watch it mow their lawns,” he says. “The 

smart category is everywhere. What customers 

are really looking for is the convenience 

factor. We’re looking for items that 

are going to help them save time, to protect 

customers, and we’re always thinking about 

good value.” 

What consumers are looking for in the 

smart home category is essentially what 

they want from all the products they buy 

for their homes—a mixture of comfort and 

innovation. 



www.hardlines.ca

What would sales growth between 

10% and 100% do for your bottom line? 

BMF has renovated nearly 200 stores and has 

supplied fixtures or displays to virtually every home 

centre, building centre and box store in the country. 

In the process we’ve seen the impact a professionally 

renovated store has on sales, staff pride, customer 

loyalty, market share, and, of course, the bottom line. 

We work closely with each dealer to understand their unique 

needs and strategically allocate space to best support the 

entire business. This has proved much more effective than 

simply bolting on categories. 

BMF has designed the industry’s most efficient and attractive 

fixture systems to properly display and stock the wide range of 

products in a typical building centre. Our millwork shop supports 

each project with high quality service desks and displays custom 

built to fit. We work seamlessly with your chosen vendors to 

design and build customized displays ensuring timely execution. 

Our signage systems integrate beautifully with the fixtures 

we supply. The graphics are customized to fit the needs and 

preferences of each dealer. Our installation teams complete their 

work fast and efficiently to minimize disruption to your business. 

As a result, our clients consistently achieve sales growth ranging 

from 10% to 100% and margin growth of 1-3 points. 

Helping the industry grow its bottom line since 2003 

1-866-441-4497 • www.bmfonline.com 

Proud to be named to the Canadian Business list of 

fastest growing companies for 4 consecutive years. 

STORE LAYOUT & DESIGN • RACKING • SHELVING • METAL DISPLAYS • MERCHANDISING ACCESSORIES • MILLWORK • SIGNAGE • INSTALLATION • FINANCING

E-COMMERCE 

FLE 

NAVIGATING THE DIGITAL 

EXPERIENCE PARADOX 

BY ROBERT HOWARD 

The digital channel shift represents one of the greatest opportunities—and challenges—the retail industry 

has ever faced. As digital influence on the retail experience increases, retailer influence declines. Retailers 

must effectively navigate this paradox in order to survive and thrive in the digital economy. 

F 

or centuries, the retail value chain 

was simple. It centered almost 

exclusively around the store, where 

customers came to explore, shop, try, and 

buy goods they desired from someone they 

trusted. 

This seemingly perfect ecosystem remained 

unchanged for centuries—from ancient village 

markets to the multipurpose shopping 

malls of today. Traditionally, the store represented 

a singular opportunity to manage 

the customer experience in a fully controlled 

environment. In this environment, the retail 

customer experience was defined and measured 

almost exclusively within the four walls 

of the store, where the retailer controlled 

every aspect of the experience—from merchandising 

and customer service to lighting, 

layout, and even the music playing overhead. 

THE DIGITAL REVOLUTION TURNED 

THIS MODEL ON ITS HEAD 

In just a few short decades, the consumer 

has been introduced to multiple waves of 

digital disruption. Consumers can now 

shop online, on their mobile phones, and 

even through social networking sites. 

Emerging technologies and approaches 

like augmented reality and the “Internet of 

Things” are changing the model even further. 

With each wave of digital disruption, 

the consumer’s retail experience is flooded 

with an increasingly wide array of digital 

touchpoints—many of which are no longer 

under the direct control of the retailer. 

As digital evolves, it brings with it a corresponding 

change in consumer behaviours. 

For example, approximately 44 percent of 

consumers now use Amazon—more than 

even Google—as their primary starting 

point for a product search, according to 

BloomReach. Social media ratings and 

reviews alone currently influence nearly 

half (45 percent) of all digital shopping 

behaviour, according to a recent article by 

eMarketer, and digital overall is forecast to 

influence nearly two-thirds (60 percent) of 

retail sales in the next few years. 

From Amazon and mobile wallets to 

Facebook, Pinterest, and Snapchat, new 

third-party digital domains are impacting the 

customer experience. Because of this, retailers 

have a diminishing ability to orchestrate 

or influence the customer experience across 

a set of channels that are largely out of their 

direct control. As a result, while digital represents 

a unique opportunity for customers 

to engage with retailers in a more meaningful 

and personal way, unless retailers transform 

30 S EC OND QU A R T ER / 2017 


www.hardlines.ca

their digital practices, their customers’ experiences 

are likely going to be disconnected 

and impersonal. 

The exponential growth in digital touchpoints 

represents an unparalleled opportunity 

to engage customers in a more seamless 

and personal way, yet the retailer’s ability to 

orchestrate or influence the customer experience 

is declining. We call this the digital 

experience paradox. 

RETAILERS MUST INTEGRATE 

ONLINE AND IN-STORE 

EXPERIENCES 

Many retailers have been at the forefront of 

online and mobile commerce adoption, yet 

the ever-increasing pace of digital disruption 

has made it difficult for even the most 

forward-thinking organizations to keep up. 

While many retailers point to digital 

commerce as the metric for digital proficiency, 

it actually generates only 10 percent 

of total e-commerce revenues, according 

to eMarketer. These numbers pale in 

comparison, however, to the estimated 60 

percent of retail sales that are influenced 

by digital, and many retailers are falling 

further behind in a rapidly evolving digital 

ecosystem. 

And while digital is hugely important, 

the retail customer experience is not keeping 

pace with expectations, as 60 percent of 

in-store digital experiences are perceived as 

average or below average by the customer, 

according to a survey done by InReality. 

Furthermore, research from nChannel 

shows that the great majority of consumers 

(84 percent) believe that retailers should 

be doing more to integrate their online and 

offline channels. 

According to Kurt Salmon research, the 

reasons for the decline in influence and 

orchestration are numerous and include 

digital experience leadership—more than 

two-thirds (68 percent) of retailers have no 

single owner of the customer experience 

across channels and functions, leading to a 

lack of organization around implementing 

new ideas. 

As a result, retailers are faced with a 

growing digital engagement gap which, if 

not addressed, will leave them exposed to 

potential market share loss and customer 

loyalty erosion. 

THE RETAIL CALL TO ACTION 

We anticipate that the digital experience 

paradox will ignite an epic battle for influence 

over the consumer relationship. As 

digital touchpoints and technologies continue 

to expand at an exponential pace, so 

does the opportunity for competitors to 

disrupt the retailer-consumer relationship. 

Amidst the rampant digital transformation 

that is forever changing the retailerconsumer 

relationship, retailers must build 

and orchestrate a broad portfolio of new 

digital capabilities—or expose themselves 

to an unfettered battle for influence over 

their consumers’ hearts, minds, and wallets. 

Digital continues to break down the onceexclusive 

retailer-to-consumer relationship. 

We expect that retailers will increasingly 

compete across multiple digital domains— 

and against new digital competitors—to gain 

influence over the customer experience. As a 

result, retailers will need to re-evaluate their 

competitive positioning and alliance strategies 

to expand their influence beyond the 

store to encompass online, mobile, marketing, 

social, and other emerging digital domains. 

In order to design, innovate, integrate, 

and adapt to new, fast-changing digital 

capabilities and ever-changing consumer 

preferences, retailers should: 

1. Reinvent the digital customer experience: 

In order to capitalize on digital’s potential, 

retailers need to design and develop a seamless 

digital experience that is as simple as a 

single click. Many current digital offerings 

require multiple steps, are disconnected, 

and have gaps in the customer experience. 

Future capabilities should enable customer 

experiences that seamlessly incorporate all 

channels and touch points, which enhances 

the customer experience and brings control 

back to the retailer. 

2. Innovate to influence: Emerging technologies 

such as artificial intelligence, chatbots 

and the “Internet of Things” are becoming 

increasingly common in consumers’ 

lives. Retailers need to develop strategies 

that incorporate new approaches, integrating 

virtual assistants such as Apple’s Siri, 

Amazon’s Alexa, or Google’s Assistant. 

3. Integration is the new black: With the 

explosion of digital capabilities and touch 

points, the ability to integrate these technologies 

into a connected and seamless 

experience will become the new competitive 

advantage for successful companies. 

Retailers must reinvent the way they 

approach systems integration and increasingly 

embrace cloud, web services, wireless, 

and near-field-communication- and 

Bluetooth-based integration solutions. 

4. Channel and ecosystem warfare: To 

remain competitive and relevant, retailers 

need to boost their digital capabilities on 

a channel-by-channel basis. In addition, 

they’ll need to align and assemble a portfolio 

of capabilities into an ecosystem of 

digital solutions to help their customers 

track, manage, and achieve their personal 

goals. 

5. Leverage consumer insights: Retailers 

will need to reinvent their customer insight 

capabilities so that they incorporate all digital 

channels. This will enable them to more 

rapidly identify and react to changing consumer 

perceptions and behaviours. 

Robert Howard is a partner in Kurt Salmon’s 

Retail and Consumer Goods Group and leads 

Kurt Salmon Digital. He brings 20-plus 

years of experience delivering personalized, 

engaging, and seamless shopping experiences 

through innovative mobile, digital, social and 

in-store technologies to help retailers prepare 

for what’s next. And he’ll be speaking at the 

Hardlines Conference in Niagara Falls, Ont., 

November 14 to 15. For more information, 

visit www.hardlinesconference.ca. 


T 

NEWS FEATURE 

he merger of Peavey Industries 

and TSC Stores has been called 

“a match made in farm hardware 

heaven”. Peavey Industries owns 37 Peavey 

Mart stores and three MainStreet Hardware 

outlets. TSC Stores is a chain of 51 farm and 

hardware outlets stretched across Ontario, 

and into Manitoba, which focus on rural, 

pet, and agro markets. Doug Anderson, 

president of Peavey Industries, says his team 

is identifying similarities between the two 

companies and looking for ways to generate 

synergies. However, TSC will continue to 

operate as a separate entity, which includes 

maintaining its own buying office. 

“We’re starting to really look at how we 

can work together and really maximize 

both businesses,” says Anderson. 

PREPARING FOR THE MERGER 

For well over a year, TSC has been working 

on cleaning up its floor plan and merchandising 

and aligning its practices better to 

prepare for the takeover by Peavey. 

On a tour of its flagship store, a few minutes 

from TSC’s head office in London’s 

east end, Darryl Jenkins, president of TSC, 

walks proudly through the aisles, showing 

off the company’s retail strengths. Right 

at the front of the store, just to the right 

of the checkouts, is a workwear section—a 

very large section given the overall size of 

the store. “We want to own the workwear 

business,” Jenkins says, pointing out the 

array of brands that get strong billing here. 

They include Carhartt, Dickies, Kodiak, 

and TSC’s private brand name, Ox Gear. 

He notes that other companies have pulled 

back from this category, opening up an 

opportunity for TSC. 

FLE 

AMIDST TAKEOVER BY PEAVEY, 

TSC’S FOCUS REMAINS ON EXECUTION 

Peavey Mart, a well-known farm and hardware retailer in Western Canada, took a bold step last year when it 

bought controlling interest in London, Ont.-based TSC Stores. Now, six months into the merger, both sides are 

learning how to work together. 

Meanwhile, TSC has revamped other areas, 

including a discount section at the front of 

the store on the left side of the checkouts. 

Considered a poor use of prime retail real 

estate, the area was changed to seasonal, with 

large outdoor power equipment now featured 

there, including snow blowers for wintertime. 

Another strong category for TSC is pet 

food and pet supplies. Jenkins says the company’s 

biggest supplier is pet food maker 

Purina. Pet sales, especially food and care 

products, are repeat sales that bring customers 

back every month, he says. 

OPTIMISTIC FOR THE FUTURE 

Peavey will increase its interest in TSC 

over the next two years until it owns TSC 

outright. However, Anderson stresses that, 

even after that time, both companies will 

be operated as separate businesses. 

As systems get integrated—Anderson says 

the two companies are working on aligning 

their IT systems over the next five years—the 

Darryl Jenkins, president 

of TSC: “We want to own 

the workwear business.” 

buying function will get more harmonized. 

“We’re meeting with select vendors at this 

point and creating plans around key relationships 

to work better with those key vendors 

to maximize those relationships.” 

He’s optimistic about what the future 

holds for the takeover, noting that the executive 

teams from both sides are “really working 

well together. I think it’s exciting to look 

at the growth of the respective businesses 

and find ways to leverage their strengths.” 

For his part, Jenkins says after some 

initial distractions, typical of any takeover, 

he’s now happy to be able to get back to what 

he says is the main business: taking care of 

TSC’s core customers. 

32 S EC OND QU A R T ER / 2017 


www.hardlines.ca

RETAIL TRENDS 

FLE 

OPTIMISM AND OPPORTUNITIES 

ABOUND FOR THE INDEPENDENT 

Last year, the NRHA asked North American home improvement retailers about the challenges 

and opportunities they’re facing. The results offer insight into the priorities of the industry’s independents. 


D 

an Tratensek, vice president of Publishing for the North 

American Retail Hardware Association, sees the association’s 

role as a voice for independent retailers. In fulfilling 

that responsibility, the NRHA conducts a number of surveys 

throughout the year to help gauge those retailers’ needs and priorities. 

Last year, the organization polled 1,000 retailers in the United 

States and Canada, asking them what was going on in their businesses, 

what they’re concerned about, and what opportunities 

they’re looking to explore both in the short term and a few years 

down the road. 

“There are between 35,000 and 45,000 independent home 

improvement retailers in the United States and Canada,” says 

Tratensek. “There are more independent home improvement 

retailers than there are McDonalds. More than there are Starbucks. 

And they all have different needs and wants.” 

But Tratensek says that while the retailers are a diverse group 

of individuals, a common thread runs through their motivations, 

needs, and future plans. 

POSITIVE OUTLOOK OF THE FUTURE 

Tratensek started his research off by asking dealers what motivates 

them to get up and go to work every day. While they were allowed 

to list multiple motivators, 75 percent responded that pride and 

ownership in the family business is what keeps them going. That’s 

not surprising, Tratensek says, when you consider that 98 percent 

of the independent home improvement companies are family-run 

businesses. 

Another huge motivator was being an active member of their 

communities. “Contributing to the success of their community is 

a huge deal to these independent retailers,” says Tratensek. 

And clearly their communities reciprocate that support. Fiftyfive 

percent of respondents reported that sales for 2016 were either 

moderately or significantly up compared to 2015. Tratensek adds 

that Canadians reported even more positive results with 67 percent 

indicating moderate to significant growth. 

Looking down the road, that optimism is even higher for 2017. 

Three-quarters of the retailers polled are predicting that 2017 is going 

to be a better year for them than 2016. And breaking out the Canadian 

retailers once more, Tratensek says that 85 percent of them have high 

expectations for the year. 

NRHA’s Dan Tratensek: 85 percent of Canadian 

dealers have high expectations for 2017. 

INVESTING IN THE RIGHT PLACES 

So where do they see this growth coming from? The single biggest 

thing identified as contributing to their growth is new products 

and niches outside of their core categories. Other areas of growth 

included adding a new location and improving marketing. But one 

especially significant category Tratensek identified was looking 

internally at investing in their teams. 

“The general employee attitude or workforce has changed in the 

last five years. It’s becoming a serious opportunity and challenge 

for independent home improvement retailers,” says Tratensek. 

He says many retailers have recognized that to grow their business, 

having the right people is a crucial element. Whether they 

want to add a new category or a new location, they don’t have 

much of a chance at success if they don’t have the right support. 

“Fifty-five percent of the retailers we surveyed said they do 

not have a succession plan in place,” says Tratensek. “They don’t 

know what’s going to happen to their business when they retire 

or if, God forbid, they got sick or passed away. You know what 

happens to those businesses? They’re liquidated.” 

Tratensek says this same problem persists across the board, 

whether the retailer is in Ontario or Mississippi, or is a hardware 

store or lumberyard. But if retailers invest in their foundations, 

focusing internally before looking out, he says the future is 

certainly bright for the independent. 

NRHA is represented in Canada by Hardlines Inc. If you’d like to 

learn more about investing in your team through NRHA’s training 

programs and other services, go to www.hardlines.ca/nrha. 

PHOTO: CALLUM PINKNEY 



www.hardlines.ca

Bring your ideas to the table. 

NRHA creates opportunities for 

conversations between independent 

home improvement retailers of all 

affiliations and sizes, so you can share 

your ideas and learn new ones from a 

variety of industry professionals. 

Let’s talk. 

How can you get involved? 

NRHA offers topic-focused roundtables, 

educational conferences, events and retail 

management programs. With dozens of 

options and ways to engage, you can explore 

what’s most important to you. Regardless of 

how involved you are, your voice matters. 

We’re stronger together. 

“I have met so many successful retailers 

through NRHA. Regardless of what flags 

we fly, we thrive by banding together.” 

Adam Busscher | Picton Home Hardware | Member since 2006 

JOIN US TODAY AT NRHA.ORG/MEMBERSHIP

IN MEMORIAM 

WALTER HACHBORN 

HOME HARDWARE FOUNDER 

REMEMBERED AS HUMBLE VISIONARY 

WalterHachbornleavesbehindapubliclegacyasapioneeringbusinessman leaves behind a legacy as a pioneering businessman, butthose 

those 

who knew him remember him as a genuine friend with seemingly limitless energy. 


W 

alter Hachborn grew up in St. 

Jacobs, Ont., right behind the 

small town’s hardware store. At 17, 

the store’s owner, Gordon Hollinger, gave 

him his first job in the industry, hiring him 

on as a janitor. 

By the 1940s, the young Hachborn had 

been working at the store for several years. 

During the Second World War, he served as 

a Staff Sergeant with the Royal Canadian 

Ordnance Corps in London, Ont. He 

learned a lot about stores and vehicles in his 

role as warehouse foreman, and he brought 

this knowledge back to the store after the 

war had ended. 

When Hollinger died in 1948, Hachborn, 

who’d be working as his assistant, took 

over running the store. Two years later, 

Hollinger’s widow also passed away, and 

the business went up for sale. Hachborn and 

Henry Sittler, along with a silent partner, 

Arthur Zilliax, managed to get the money 

together to make a bid. The young janitor 

who had started with a salary of less than 

$500 a year was suddenly the co-owner of a 

growing business with annual sales of more 

than half a million dollars. And he was only 

getting started. 

A CONSUMMATE SALESMAN 

In 1956, Hachborn read an article in an 

American trade magazine, Hardware Age, 

which outlined a dealer-owner model for 

retail, and he was convinced it could be 

imported into Canada. At the time, large 

department stores were on the rise in the 

Canadian market and Hachborn wanted 

to find a way to help protect independent 

retailers from going under. In 1964, 

Hachborn and Sittler founded what would 

become Home Hardware, beginning with 

just 122 stores. Today, the co-op boasts 

almost 1,100 stores across Canada. 

Ray Gabel, Home Hardware’s senior 

merchandise advisor, started working for 

Hachborn in 1950 at Hollinger Hardware 

Wholesale. Gabel remembers visiting stores 

with Hachborn in the early days of Home 

Hardware, and how Hachborn, in the driver’s 

seat, would be so focused on the task 

at hand that he would often forget to stop 

for lunch. “He was running on something 

other than food,” he muses. 

Paul Straus, Home Hardware’s president, 

started at Home in 1963, and he recalls 

those long afternoons in the car, too. “He 

just kept going,” says Straus. “It wasn’t until 

a few years later that we found out he used 

to keep a bag of licorice in his pocket and he 

used to nibble on them to keep him going 

until suppertime.” 

A natural leader, it was Hachborn’s pioneering 

vision of uniting Canada’s independent 

hardware stores that first sold dealers 

on the co-op model. But it was his integrity 

that inspired loyalty from vendors, dealers, 

and employees alike. “He was very trustworthy, 

his word was his bond,” says Gabel. 

And while Hachborn worked hard for his 

dealers, he expected everyone to put in their 

best as well. Straus recalls in the early days 

of Home Hardware, there was a dealer who 

had a complaint for them at every meeting. 

“I remember at the time, Walter just said, 

‘Hey, you’re picking the fly specks out of the 

pepper. If you would spend as much time 

selling as you do complaining, you’d be a 

lot better off.’ ” 

A CULTURE OF CARING 

Home Hardware, now one of Canada’s 

most recognizable brands, has built its 

reputation around being helpful. Gabel says 

it was Hachborn himself who cultivated and 

nurtured the company’s unique culture 

and dedication to helping. Whether it was 

loading trucks on a Sunday night, taking 

his coffee break with the warehouse staff, or 

offering Straus and his new wife his cottage 

for their honeymoon, Hachborn wasn’t 

one for airs or pretensions. He was “in the 

people business.” 

What I learned from Walter was how to 

be humble and how to be kind. I think what 

he did for this industry, what he did for “his dealers, will stand the test of time. 

” 

“When you think about the culture, it’s 

so embedded into the DNA of our company,” 

says Rob Wallace, marketing director 

for Home. People talk about Hachborn’s 

uncanny ability to remember names, but 

Wallace says it went beyond that. He took 

the time to ask people about their lives, 

their families, and their experiences, and 

he remembered their answers. It was more 



www.hardlines.ca

than just going through the motions. He 

really cared about others. That example of 

leadership is what Wallace says Hachborn 

impressed on everyone he worked with. 

Hachborn inspired many individuals 

to devote their careers to home improvement—and 

not just Home employees. Rick 

Kenny, of KS Solutions Sales and Service, 

first met Hachborn when he was just 18 at 

a Home Hardware market. He says that he 

didn’t even realize at first he was speaking 

with the company’s CEO because of how 

casual and easy their rapport was. It was his 

dealings with Hachborn and his company 

that have kept Kenny in the industry for 

more than three decades. 

“What I learned from Walter was how to 

be humble and how to be kind,” says Kenny. 

“I think what he did for this industry, what 

he did for his dealers, will stand the test of 

time. I don’t think anyone ever had a bad 

thing to say about him—how many other 

people in your life can you say that about?” 

THIRST FOR KNOWLEDGE 

While he stepped back from the business 

in 1988, he retained the title of President 

Emeritus, and until a few years ago, was a 

familiar face, happily greeting dealers, at 

every Home Hardware market. And every 

other year, for more than four decades, 

Hachborn led a group of Home employees 

on a study tour in a different area of 

the world. 

“He had that gumption and determination—just 

a zest for life,” says Wallace. “For 

him, it was continuous learning. He never 

stopped taking an interest in new things 

and sharing the interests of others.” 

Faith was also an incredibly important 

aspect of his life—he was a committed 

member of the Lutheran church. Hachborn 

and his late wife, Jean Marie, served on the 

board of St. James’ Evangelical Lutheran 

Church in town. He was also a dedicated 

philanthropist. Under his leadership, Home 

Hardware donated regularly to causes 

such as Special Olympics Canada, Tree 

Canada, and the Hospital for Sick Children 

Foundation. 

And personally, Hachborn was closely 

involved with Habitat for Humanity. Despite 

never wanting to be publicly acknowledged 

for his good work, friends recall what a 

personal highlight it was for Hachborn to 

work on a Habitat build alongside former 

U.S. President Jimmy Carter in 1996. 

HELPING WAS ITS OWN REWARD 

Hachborn received a number of accolades 

during his lifetime, including an honorary 

Doctor of Laws degree from Laurier 

University in 1985. Four years later, he was 

inducted into the Canadian Hardware Hall 

of Fame. Hardware Merchandising magazine 

named him Hardware Retailer of the Century 

in 1999. He was appointed a Member of the 

Order of Canada in 2000, and received the 

Queen’s Golden Jubilee Medal in 2003. In 

2007, the Retail Council of Canada conferred 

on him a Lifetime Achievement Award in 

recognition of his business and community 

leadership, and in 2015 he was inducted into 

the Order of the Business Hall of Fame. 

While he appreciated each and every 

recognition he received, Hachborn was a 

naturally humble man. Kenny jokes that 

he was the kind of guy who’d tell you that 

you needed your eyes checked if you told 

him he was looking good. And when he was 

awarded the Order of Canada, he’s reported 

to have questioned why he was selected, 

stating he was “really a dull person.” Gabel 

says his greatest honour, though, was when 

he was named the Hardware Retailer of the 

Century. Hachborn cherished knowing that 

he’d been “the catalyst in helping so many 

independent hardware and building supply 

members reach their goals.” 

Walter J. Hachborn passed away on 

the morning of December 17, 2016 at the 

age of 95. He is survived by his children, 

Susan Heard, Elizabeth Hachborn, and 

Bill Hackborn, and five grandchildren. 


WOMEN IN THE INDUSTRY 

FLE 

DIVERSE PERSPECTIVES 

INSPIRE INDUSTRY EVOLUTION 


When it comes to home improvement, women are often the primary decision-makers in the home, if not at least 

equally involved in the process. But for an industry that has traditionally catered to a male aesthetic, how can 

retailers better appeal to the female shopper? 

L 

ast fall, the Hardlines Conference 

brought together a panel of women 

from across the industry to weigh 

in on the role women have in the future and 

growth of the home improvement industry. 

Moderated by HARDLINES’ own publisher, 

Beverly Allen, the panellists consisted 

of Sherri Amos, director of dealer support 

for Home Hardware; Sara Clarkson, president 

of Storesupport Canada; Christine 

Joannou, key account manager for MAAX 

Bath; and Jillian Sexton, COO of Hector 

Building Supplies. 

Allen recalls during her early days with 

Hardlines how the rising popularity of 

home improvement channels fundamentally 

changed the way people thought about 

their homes. “Suddenly, home improvement 

Women from across the industry weighed in on 

catering to the female shopper during a panel 

discussion at last fall’s 21st Hardlines Conference. 

was on TV,” says Allen. “It was something 

people did for entertainment; to change 

things up. My mother decorated her kitchen 

when we moved into the house and it had 

never been redone when we sold it.” 

In 2003, HARDLINES conducted a survey 

in conjunction with ACNielsen that backed 

up Allen’s own observations with data. The 

survey found that 76 percent of Canadians 

were planning home renovations that year, 

up from 60 percent the year before. And the 

real revelation was that 80 percent of the 

time, women—whether alone or in combination 

with their partners—were making 

the decisions about what to buy. And 

nearly 15 years later, female shoppers are 

still predominantly the primary decision 

makers in a household. 

REPRESENTATION AT 

ALL LEVELS IS CRUCIAL 

But how do both retailers and vendors go 

about reaching this all-important demographic? 

The first step is ensuring female 

representation at all levels of business— 

something the industry has been working 

towards over the last 20 years. While home 

improvement remains a fairly male-dominated 

field, there are many women who have 

chosen to build their careers in the industry. 

Sherri Amos started with Home Hardware 

17 years ago. She told the audience, “Like 

many of you in this room, I’m sure, it was 

a happy accident that I found myself in this 

industry. But what I can say is that once I 

arrived, I really fell in love with what we do 

and how critical it is; how it’s a foundation 

within Canada and the stability it offers.” 

Sexton, despite being born into the 

industry, nevertheless surprised her father 

with her decision to make a career in the 

family’s Nova Scotia chain of stores. Beyond 

the fact that having a thriving company that 

you can simply walk into is an opportunity 

not everyone gets, she says she found the 

field universally relevant. “Everyone has a 

home or wants a home,” says Sexton. “The 

industry isn’t going away. It may change or 

grow, but everyone’s always going to need 

things to build and modify their homes.” 

Joannou, who works in fashion bath, 

started her career in clothing retail before 

moving into sporting goods. Having been 

in the home improvement industry for 

11 years, she says her gender offers her an 

advantage in the field as her category’s target 

customer is the female shopper. “Being 

PHOTOS: CALLUM PINKNEY 



www.hardlines.ca

“ ” 

Who doesn’t want a bright, clean store? 

a woman gives me the insight to enable me 

to relate to the customer better and target 

our offerings and marketing correctly for 

our target customer.” 

IMPROVEMENTS IMPACT EVERYONE 

That ability to relate to your customers helps 

retailers adapt better and faster to meet their 

needs. And many of the changes that have 

been made to appeal to female shoppers in 

this industry have been universally beneficial 

for shoppers, regardless of gender. “In 

1994, we talked about [former Home Depot 

Canada President] Annette Verschueren 

making all kinds of headlines because she 

said women like brighter stores. Who doesn’t 

like being able to see what you’re buying?” 

says Allen. “It hasn’t hurt anyone to think 

about store design and sight lines; it’s not 

just women who like that.” 

However, Clarkson says if there’s one thing 

retailers should keep in mind when trying to 

appeal to female shoppers it’s that time has 

increasingly become a scarce commodity. 

Sherri Amos, director of dealer support 

for Home Hardware, advises retailers 

that a good website benefits both 

your customer’s online and in-store 

experiences. 

— Jillian Sexton 

“I think the women of today are different. I 

don’t think we have as much time to browse 

and look at things,” says Clarkson. “It’s convenience 

we need. It’s a pivotal change for all 

retailers—not just in hardware.” 

And to that point, Amos says it’s now 

more critical than ever to have a good web 

presence. “Even if I’m not making that purchase 

on your website, what I want to know 

is if that item is in stock. I have an hour to 

do my shopping so I want to know if it’s 

there,” says Amos. 

She gives the example of one shopping 

experience where she looked up an item 

on a company’s site, found out the store 

had it in stock, and drove down to pick it 

up. “That transaction took 10 minutes at 

most, but I had an hour,” says Amos. “So 

what did I do? I spent the rest of the time in 

their store. I think it’s really key as a retailer 

to think about where these transactions 

start. We hear it time and time again that 

it is starting to happen in the home and on 

mobile devices.” 

SERVICE A TOP PRIORITY 

After convenience, the panellists agreed 

that service should be one of a retailer’s 

highest priorities. For Sexton, that means 

keeping in mind what usually brings customers 

into her store. “A lot of times, when 

people are coming into my store, they have 

a dream,” says Sexton. “They’re building a 

house and that’s not something people take 

lightly or do lightly.” 

She says one important thing she and her 

staff do with their female customers is to 

avoid treating them differently. If a couple 

comes in, she doesn’t direct all the questions 

to the man and she avoids making any 

assumptions about a woman’s knowledge or 

role in the project or renovation. 

Jillian Sexton, COO of Hector Building 

Supplies, says a lot of the changes the 

industry has made for female shoppers 

have universal appeal. 

And for Joannou, from a manufacturer’s 

perspective, service means providing as 

much product information to retailers 

as possible, in an easy-to-understand 

format aimed at the end user. “A lot of 

things used to be just geared towards 

professionals,” says Joannou. “We have to 

tailor the information to make sure that 

any question a consumer could possibly 

have, or any information a retailer might 

need, can be grabbed from our website 

quickly and easily.” 

Joannou believes the future of the home 

improvement industry lies in adapting to 

the needs of Millennials as they continue 

to join the ranks of proud homeowners. As 

Clarkson points out, DIY and home renovations 

have become “sexy” and young 

homeowners—male and female—present 

a great opportunity for home improvement 

retailers to grow and build their 

businesses. 

“I’m really excited about the hardware 

industry,” says Clarkson. “It continues to 

evolve. From the supplier side, we see your 

stores changing, we see what’s going on 

at retail and it’s very exciting to see that 

there’s lots of opportunity to be able to 

grow and build.” 


SELLING TO PROS 

FLE 

HOW ARE THE BIG GUYS SELLING 

TO CONTRACTORS AND WHAT 

CAN YOU LEARN FROM THEM? 

The sweet spot for many independents is the pro and contractor customer 

that walks through the door every single day. But guess who’s coming 

after that customer. 

BY MICHAEL McLARNEY 

T 

hough they are the number-one and 

two retailers by sales in this country, 

the Canadian divisions of Home 

Depot and Lowe’s are small divisions for their 

parent companies. Yet both American businesses 

are flourishing here, despite a comparatively 

slower economy north of the border. 

Home Depot’s estimated Canadian sales 

are more than $7.4 billion. Lowe’s Canada 

was a $1.5 billion company until its U.S. 

parent bought RONA inc. That acquisition 

had a direct, positive impact on Lowe’s top 

line and sales growth, but its own organic 

growth is also driving sales. Lowe’s Canada 

opened a dozen Lowe’s stores in Canada 

last year, in addition to a number of RONA 

openings, which are expected to push total 

sales for year-end 2016 to almost $7 billion. 

Expansion so far this year indicates that 

this growth vector will continue unabated. 

CONTRACTORS DRIVE BIG SALES 

Both big box retailers acknowledge how 

important the contractor customer has 

been to that growth. For Home Depot in 

the U.S., pros account for just four percent 

Separate entrances, like at this North York, Ont., Lowe’s store, 

help pro customers find what they need more efficiently. 

of the customer base, but represent 40 percent 

of the retailer’s sales. That share is 

estimated to be lower in Canada—leaving 

a huge opportunity for growth. 

Likewise, Lowe’s is investing heavily to 

woo contractors and trades. Expecting that 

“housing will continue to be a bright spot in 

the economy” for its U.S. business, Lowe’s 

CEO and Chairman Robert Niblock said he 

expects the company’s contractor and pro 

business to keep growing. 

“Pro continues to outperform and we 

remain focused on deepening our relationship 

with this important customer,” he noted. 

Like Home Depot, Lowe’s sees its focus on 

national brands, including brands exclusive 

to their stores, to drive pro sales. Those 

brands include Marshalltown, which Niblock 

considers “a trusted pro brand,” as well as 

exclusive brands such as Hitachi and Bostitch 

pneumatic tools, Vaughan hammers, and its 

own private-label line of Kobalt tools. 

At Home Depot, pro sales are driving bigticket 

sales as well. Sales over $900 account 

for about one-fifth of Home Depot’s overall 

turnover. While these sales include heavy 

appliances, they represent a lot of 

the pro spend, as well. Categories 

showing increased sales to contractors 

include commercial and 

industrial lighting, fencing, plywood, pressure-treated 

decking, and interior doors. 

While Lowe’s has lots of room to expand 

in Canada, Home Depot has saturated the 

market with an optimal number of stores. 

New store openings come much less frequently 

and reflect growing urban markets 

rather than holes that need to be filled in the 

retail marketplace. In fact, it’s only opened 

two stores in recent years, one in North 

Brampton, on Toronto’s northeast fringe, 

where nearby farmers’ fields are rapidly 

being turned into housing developments, 

and Vaughan, Ont., a well-to-do, thriving 

community directly north of Toronto. 

In addition, Lowe’s specialty big box banner, 

Reno-Depot, is targeted at contractors 

and heavy DIYers. The latest Reno-Depot 

to open is a store in Boucherville, Que., just 

minutes from Lowe’s Canada’s head office. 

The store features expanded assortments, 

giant endcap quantities, and simplified 

signage to help pros get in and out quickly. 

SELLING ONLINE 

IS IMPORTANT TO PROS 

Both Lowe’s and Home Depot see the value 

of the rising e-commerce market, and 

online sales now account for more than five 

percent of Home Depot’s overall sales. So 

capturing that business for pros is critical to 

the growth of both big box players. 

At Lowe’s Canada, President and CEO 

Sylvain Prud’homme identifies two distinct 

customer segments that his stores are targetting: 

women and contractors. He has stated 

numerous times the importance of blending 

online sales with mobile and bricks and mortar—what 

he refers to as Lowe’s omni-channel 

strategy. In fact, Lowe’s Canada’s own website 

is considered cutting edge in online selling. 

EVEN WITH DIGITAL, 

KEEP IT PERSONAL 

Home Depot Canada follows its own game 

plan of combining the strength of its big 

box footprint with online sales, called its 

inter-connected strategy. 



www.hardlines.ca

Reno-Depot’s new Boucherville store 

features expanded assortments, giant 

endcap quantities, and simplified signage. 

Home Depot collects data from digital 

resources such as its website, promotional 

emails, and social media, and uses that 

information to drive traffic to stores and 

better target its advertising and marketing 

efforts. A Home Depot executive discussed 

those methods recently at the National Retail 

Federation’s annual convention in New York. 

Customer personalization can help boost 

sales to DIYers and, even more importantly, 

to pros, David Abbott, Home Depot’s vice 

president of integrated media and online 

marketing, said. Contractors and trades are 

in a store multiple times a week, so creating 

personal relationships is key. 

“In the store operation, we have individuals 

who manage our pro accounts. If 

we have a contractor that spends $1 million 

a year, they have someone they can call. 

What we want to do is provide our associates 

enough information about the pro customer 

to be able to give a well-rounded look 

at what that customer’s needs are. That’s 

one of the things we’ll be focusing on in 

2017—figuring out what information we 

can provide to the stores to provide more 

relevant information to the customers.” 

In Canada, the digital strategy is an 

important one, as well. The company studies 

carefully how pros use online tools to 

purchase products and complete projects. 

HOME DEPOT CANADA IS LASER-FOCUSED 

ON THE CONTRACTOR CUSTOMER 

If you had a customer that came into your store more often, bought more stuff, asked 

fewer questions, and just plain spent more money, wouldn’t you go out of your way to 

cater to them? For most dealers, that typifies their contractors. But you can be sure that 

Home Depot Canada is paying a lot of attention to this customer segment. 

The company continues rolling out services and programs for contractors. “Buy online, 

pick up in store” has been operating successfully for years, getting orders ready for pros 

within two hours. The company’s “hot shot deliveries” will send a truck right to a contractor’s 

jobsite if they’ve forgotten something during their last visit to the store. Another initiative 

that has gained in popularity is larger tool and vehicle rentals, which specializes in compact 

power equipment such as backhoes and track loaders. 

Meanwhile, the retailer has spent recent years beefing up its national brands, to make 

sure the brands pros prefer are in stock. 

“The pro customer has really evolved,” says Jamal Hamad, director of pro and tool rental 

for Home Depot Canada. “A new generation of pro customers is coming up that are more 

digitally savvy. They’re really looking at their business differently.” 

The secret to staying close to those changes, Hamad says, is paying attention to their 

needs. “We’re listening,” he says very simply. “We’re 100 percent listening to the pros.” 

He points out that some things just don’t change, such as the importance of having 

job-lot quantities and providing a quick in-and-out for those time-pressured customers. 

“The service component is so vital to this segment of the business.” 

To that end, the company is testing a pilot in its Caledonia store in central Toronto. 

Hamad calls it a “pro-centric store,” with amenities that include a closer review of the 

brands that appeal to pros, and increasing the availability of job-lot quantities. In addition, 

the store has designated pro parking and special carts for pros. The checkouts offer 

“fast-lane” service for contractors. 

As a result of these tweaks, the whole store has a more pro-oriented feel. “There’s a 

different vibe within that store as it relates to the pro,” Hamad adds. 

Home Depot’s new Caledonia store in central Toronto is a pro-centric store; Home Depot even 

provides pro customers with parking spaces, helping them get in and out of the store quickly. 

“Pro Extra” is a rewards program launched 

late in 2016. Contractors can create an 

account, then log in to see their entire purchase 

history with Home Depot. The program 

includes delayed payment terms (60 

days with no interest), a no-hassle return 

policy for up to one year, and fuel rewards. 

Home Depot and Lowe’s both use data 

to analyze their existing customers to 

improve their relations with those customers. 

Retaining those important trade 

customers comes from understanding them 

better, but that doesn’t always have to be 

a high-tech process. Sometimes it’s just as 

effective to ask them—a strategy that will 

work for any dealer, large or small. 


SHOW REPORT 

FLE 

The latest Western Retail Lumber Association Buying Show held in Calgary 

featured 250 vendors across 170,000 square feet of space at the BMO Centre. 

A ROUNDUP OF THE 

FIRST SHOWS OF THE YEAR 

Show season has officially begun and it’s shaping up to be a banner 

year with new locations, anniversaries, and shifting formats. 

ACE CANADA ELIMINATES 

SPRING SHOW, OFFERS 

ONLINE ALTERNATIVES 

Ace Canada has cancelled its Spring Buying 

Show in Winnipeg this year. Instead, the 

hardware wholesaler, which is a division 

of Lowe’s Canada, will offer dealers the 

opportunity to make their bookings online, 

including special promotions, pallet offers, 

vendor specials, and extended dating for 

their fall and winter seasonal needs. 

The show was originally scheduled 

for April 22 to 24 at the Winnipeg RBC 

Convention Centre. 

The move is aimed at saving time and 

travel costs for Ace’s independent customers. 

It also reflects some of the changes moving 

through all aspects of Lowe’s Canadian 

business since it took over RONA last year. 

“Dealers have told us that they would 

save money by booking their products 

online. Vendors have expressed interest 

in attending only one show per year,” said 

Bill Morrison, divisional vice president 

of Ace Canada. Lowe’s Canada has since 

confirmed it will host a buying show in 

Montreal for both its Ace and RONA dealers, 

September 20 to 22. (For more on the 

changes at Ace, go to page 20.) 

DEALERS, VENDORS GATHERED IN 

CALGARY FOR WRLA BUYING SHOW 

Dealers travelled from across Western 

Canada to look for deals and to network 

at the latest Buying Show of the Western 

Retail Lumber Association. The show, held 

in Calgary from January 18 to 20, featured 

250 vendors across 170,000 square feet of 

space at the BMO Centre. 

Even though many vendors felt dealer 

attendance may have been flat compared to 

last year, the majority of the vendors HHIQ 

spoke with managed to keep busy engaging 

with customers, who included some 

of the West’s top dealers. North American 

Lumber, McMunn & Yates, Alta-Wide 

Builders Supplies, and other large independents 

from every major banner and buying 

group kept busy on the show floor, amidst an 

atmosphere that was fairly positive despite 

the slow economies in much of the West. 

This show, the first of the year in the 

industry, is considered something of a bellwether 

of the industry’s mood. While many 

parts of Canada had a strong year in 2016, 

dealers from Alberta and Saskatchewan in 

particular were still feeling the effects of 

the slow economies in those regions. That 

reality certainly had a sobering effect on 

the mood of the show, which was otherwise 

fairly positive. 



www.hardlines.ca

RE 

IMAGINE 

RETAIL 

Rethink the way you do retail. Take a fresh look at the industry’s most comprehensive 

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What’s in store for you? www.nationalhardwareshow.com 

May 9–11, 2017 

Las Vegas Convention Center

SHOW REPORT 

FLE 

Nevertheless, according to many exhibitors, 

dealers were there to buy. “The attitude 

of and response from our customers and 

potential customers is tremendous,” said 

Steve Goulding, director of Canadian retail 

sales at Hillman Group. He noted that he’d 

seen a lot of key customers by mid-morning 

on day one of the show. 

Michèle Ashton, business development 

manager for Topring, which produces compressed-air 

products, was exhibiting for the 

second time. “Last year was okay, but this 

year is unreal busy,” she said enthusiastically. 

“It’s a great way of meeting the banners 

from across the regions.” 

TIMBER MART CELEBRATES 

50TH ANNIVERSARY WITH 

CONVENTION AND TRADE SHOW 

TIMBER MART kicked off its 50th anniversary 

celebrations at its national annual 

convention at the Grand Velas Riviera 

Nayarit resort in Puerto Vallarta, Mexico, 

from January 22 to 29. The event played 

host to record attendance of more than 460 

dealers, vendors, and staff, who celebrated 

with a birthday party complete with fireworks 

and birthday cake, dinners, live 

entertainment, and excursions. 

The convention also anticipated the buying 

group’s annual national buying show, 

which took place February 14 and 15 at 

the Toronto Congress Centre. It managed 

to draw about 350 dealers from across the 

country, despite snowstorms in many parts 

of the country, including conditions in 

Atlantic Canada that prevented about 30 

dealers from getting to the show. 

The show featured 150-plus vendors in 

225 booths. While the show is considered 

a small one by the vendor community, it 

appeared to draw enough customers to 

make the effort pay off. One vendor noted 

that attendance was “surprisingly good out 

of the gate,” while another noted the quantity 

and quality of attendees exceeded their 

expectations. 

TIMBER MART President Bernie Owens 

views the intimacy of this event as an 

Dealers gathered in Toronto for TIMBER MART’s buying 

show in February. 

important part of what TIMBER MART 

is trying to accomplish with it: to offer a 

forum for dealers to connect and for the 

group to share and fortify the group’s culture 

and range of services. 

ORGILL SHOW DRAWS CANADIANS 

FROM A RANGE OF BANNERS TO 

NEW ORLEANS 

Orgill’s latest show in New Orleans, 

February 16 to 18, attracted 350 accounts 

from across Canada despite poor weather in 

parts of the Northeast that prevented some 

dealers from completing their trek. 

And with the opening of another distribution 

centre to serve Canadian customers, 

Memphis-based Orgill continues to 

enhance its presence in this country and 

Canadians got to 

see a rental option 

for the first time at 

the last Orgill show. 

its appeal for Canadian dealers. 

(The new DC in Post Falls, 

Idaho, will serve the Western 

Canadian market.) 

For dealers heading down, 

the sheer size of the event 

requires a rigorous schedule of 

visiting the many vendors, the 

new products, and—perhaps 

most importantly—the “hot 

buys” and other show specials 

that make the show so attractive 

to Canadian dealers. 

The latest show featured 

some upgrades to its model stores. Maple 

Ridge Home Centre, aimed specifically at 

Canadian customers, featured a full inventory 

of Canadian-compliant products. It 

also offered expanded sections of lawn and 

garden, housewares, and paint. Another 

model store, Walnut Grove Hardware & 

Supply, featured 10,000 square feet of retail 

space, with a focus on lawn and garden, outdoor 

living, farm, and pet, while showcasing 

a variety of merchandising techniques 

to maximize floor space. 

This was the second time the show was 

held in New Orleans and Orgill received 

positive response from customers. As a 

result, the company has announced plans 

to add the venue into its rotation of host 

cities going forward. 



www.hardlines.ca

The Networking Event for the Home Improvement Industry 

5 th Global 

DIY-Summit 

2017 

A New Era – 

A Glimpse into the Future ure 

of Home Improvement 

8– 9 June 2017 

Maritim Hotel Berlin, Germany 

uture 

nt 

Speakers: 

Sergio Giroldi 

CEO 

OBI 

Yasunori Ishiguro 

Executive VP 

DCM Holdings 

Neil Cowie 

CEO 

Mitre 10 

Patrick Cassidy 

Board Director 

Bricoalliance 

powered by 

5 th Global 

DIY-Lifetime Award 2017 

Peter Rosseel 

Director, Management 

Consulting Research 

Kai Herzberger 

Director EMEA 

Facebook 

Paul Martin 

UK Head of Retail 

KPMG 

wie 

Christian May 

Managing Director 

Retail Channels 

Alfred Kärcher 

Patrick Cassidy 

Board Director 

Bricoalliance 

Amongst the highlights of the first day will be 

the festive presentation of the 5 th Global DIY-Lifetime 

Award 2017 

Jim Inglis 

President 

Inglis Retailing 

David Domoney 

CEO 

Domoney Ltd 

Richard van 

Hooijdonk 

Trendwatcher 

Jeremy Hodara 

Co-CEO 

Jumia & Founder 

Foto: Fotolia/JFL FL Photography 

Régis Degelcke 

Vice President ADEO 

President EDRA 

Reinhard Wolff 

Managing Partner 

wolfcraft 

President fediyma 

Special guests: 

Paul Moers 

Managing Director 

Paul Moers Strategic 

Marketing Services 

Ken Hughes 

Consumer & Shopper 

Behaviouralist 

Store Tour on 7 June 2017 

Get-Together on 7 June 2017 

Global DIY 2017 International Congress Exhibition 

Gala Dinner on 8 June 2017 

For more information and online registration visit us on http://diysummit.org 

Platinum Sponsors

STORE MANAGEMENT 

FLE 

BY BILL WILSON, RETAIL ADVISOR, NRHA CANADA 

MAXIMIZING 

YOUR SALES 

BY MERCHANDISING EFFICIENTLY 

Are you optimizing your sales in every square foot of your store? 

I 

once encountered a retailer who 

wanted to create a more open, 

visual appearance in his store, but 

was concerned about shoplifting. He made 

the decision to lower the height of his store’s 

gondolas. But this change required not only 

reducing product on display, it resulted in 

fewer facings, less shelf space for products, 

and lower SKUs. The visual appearance of 

the store was brighter, it was easier to see 

throughout the whole store, but sales per 

square foot fell dramatically. After a year, 

he decided to remerchandise again to regain 

that space and product, but getting back the 

customers he lost when he had cut back his 

products took time. 

It’s a fine balance to find the right merchandising 

set-up that doesn’t sacrifice sales 

for shrinkage. But it’s not impossible. 

To maximize square-foot sales, you 

need to make maximum use of the cube 

while still maintaining what your customers 

expect from your store: good lighting, 

open aisles, and good traffic flow. Today, 

most stores are using five- or six-foot aisle 



www.hardlines.ca

gondolas, and seven- or eight-foot walls. 

You also need to make certain that inventory 

turns are in line for profitability. 

HOW CAN YOU GAIN SALES 

FROM MERCHANDISING? 

Walk the store with each department manager 

looking for areas that require updates. 

Are the shelves clean and has the product 

been faced up? 

Here are some other tips on merchandising 

to improve your selling area size: 

Don’t sell pegboard. It can contribute to 

an unappealing appearance that products 

are out of stock, sold out, or not available. 

Improper spacing can also contribute to 

this look. 

Count your empty hooks and bins. Make 

a commitment to count your empty hooks 

and bins weekly to check the number of outof-stock 

items. With a SKU base of 8,000 to 

10,000 items, you shouldn’t have more than 

200 items out of stock, not including seasonal 

products that are out of season. Many 

stores are counting holes at least two times 

weekly. You may be shocked during your 

first counts by the great opportunities for 

sales gains. Check against your POS inventory 

to make certain that your POS count 

is accurate. 

Review your A and B items. When was the 

last time that you completely reviewed each 

section for the A and B items that should 

be 80 percent of your sales? A rebuild using 

your distributor’s planograms should be 

your basic stock inventory. I always believe 

they are 90 percent-plus correct, and then 

you can make changes for regional requirements. 

New goods should always be reviewed 

regularly for additions. Fifteen to 20 percent 

of your sales should be coming from new 

products added in the last 12 months. 

Build new lifestyle departments. For 

example, in bath you could show a complete 

bathroom with all the components. You’re 

probably thinking you have no room, but 

do you have a back room that you can renovate? 

Can you move your storage room? 

NRHA COST OF DOING BUSINESS STUDY 2016 

Use it to evaluate your own store’s performance. 

Selling Area 

(Square Feet) 

Total Area 

(Square Feet) 

Sales per Square Foot 

(Selling Area) 

Inventory per Square 

Foot (Selling Area) 

Installed sales are another opportunity for 

increasing square-foot sales and also gaining 

new customers. 

Review your min-max inventory quantities. 

Review these quantities on A items so 

that you have sufficient quantities to not be 

out of stock between orders. When determining 

your A or B item lists, check both 

unit sales and dollar sales. I would suggest 

that unit sales are the best criteria. Running 

out of receptacles or boxes will hold a project 

up and your customer expects you to 

be in stock. 

Carry impulse sales. Merchandising for 

impulse sales can make a big difference 

in your sales—if it’s done right. I’ve seen 

research showing anywhere from 35 to 65 

percent of customers will make an impulse 

purchase. How can you take advantage of 

that? The retailer must know what appeals 

to their customer. Retail pricing must 

be competitive and various products are 

driven by sale pricing. Impulse merchandising 

must be strong throughout your store. 

Use a combination of drive aisle baskets, 

pallets, manufacturer’s display, and other 

ideas you may have to hold product. Keep 

room for your customers to travel freely 

through the aisles. 

Depending on your customer traffic and 

volume, you may decide to use two products 

per end for add-on sales. Price signs 

must be on all displays using sale and regular 

pricing. Impulse purchases also come 

Hardware Stores Home Centers LBM Outlets 

Typical High-Profit Typical High-Profit Typical High-Profit 

9,500 10,250 12,429 9,333 8,125 6,500 

13,000 12,250 37,923 37,626 91,723 126,700 

$176 $214 $253 $334 $565 $974 

$56 $48 $60 $71 $104 $136 

from departments where key products are 

merchandised at eye level. 

Don’t forget add-on sales. Have you 

trained your staff on how to gain add-on 

sales? With any project there are a lot of 

opportunities to sell the tools and parts 

required to complete a project. At your 

staff meetings discuss add-on sales. As an 

example, when selling paint, they should 

be able to suggest at least 10 add-on items. 

An increase of $3 on an average sale 

increases total sales by $117,000 based on 

39,000 customers annually. 

And don’t forget that with the availability 

of information online, many consumers feel 

they know more about a product than the 

store associate. Employee training is very 

important and your staff should be supplied 

with both training and the online tools to 

have the answers. 

The North American Retail Hardware 

Association has created new training modules 

on selling skills, merchandising, and 

project selling. Check out these programs 

at www.nrha.org. 

Bill Wilson is Retail Advisor 

for the North American Retail 

Hardware Association Canada 

and an ORA judge. He has a 

background of more than 40 years of experience 

in hardware and home improvement 

retailing and distribution and is committed 

to training for independents. 


AD INDEX 

ADVERTISERS: SECOND QUARTER / 2017 

Ace Canada 

www.ace-canada.com 

13 

National Hardware Show 

www.nationalhardwareshow.com 

43 

auto-stak Systems, Inc. 

www.autostak.com 

33 

NRHA Canada 

www.nrha.org 

35 

BMR 

www.bmr.co 

2 

Orgill Canada 

www.orgill.ca 

51 

Burlington Merchandising & Fixtures 

www.bmfonline.com 

29 

Owens Corning 

www.owenscorning.ca 

8 

Festool 

www.festoolcanada.com 

27 

Richelieu Inc. 

www.richelieu.com 

4 

Hardlines Outstanding Retailer Awards 

www.oras.ca 

49 

Sexton Group 

www.sextongroup.com 

19 

Hardlines Conference 

www.hardlinesconference.ca 

11 

Spruce Computer Systems 

www.ecispruce.com 

52 

Home Hardware Stores Limited 

www.home-owner.ca 

6 

Tando 

www.tandobp.com 

3 

Global DIY Summit 

www.diysummit.org 

45 

TORBSA 

www.torbsa.com 

5 

IN THE 

NEXT 

ISSUE 

OF HHIQ: 

The industry’s Top 20 and 

Buying Group Org Chart 

PLUS: What’s big in small stores; 

Selling contractors on green products; 

The link between sightlines and security 

in your store; Spring show report. 


Publication Date: July 7, 2017 • Ad Reservations: June 1, 2017 (contact bev@hardlines.ca) • Ad Material Due: June 14, 2017 



www.hardlines.ca

You know your 

store is a winner… 

Isn’t it time you were 

recognized for it? 

APPLY FOR THE 2017 OUTSTANDING RETAILER AWARDS! 

“In 2014, our store applied for the Best Building Centre 

under 25,000 square feet—and we won! It was the first 

time a Co-op had entered the ORAs and the first time a 

Co-op won, it sent an overwhelming energy throughout 

our organization…not only did I feel a sense of personal 

accomplishment, I felt incredibly proud of our staff and 

organization in achieving the highest award in our industry.” 

— Jeff Lelond, Rocky Mountain Co-op, ORA Winner 

DEADLINE FOR ENTRIES IS 

JULY 28, 2017 

Nominate yourself or someone you know! Retailers and Vendors may submit entries. 

CATEGORIES TO ENTER: 

• Best Hardware Store (any size) 

• Best Building Supply/Home Centre (under 15,000 square feet) 

• Best Building Supply/Home Centre (over 15,000 square feet) 

• Young Retailer Award (a store manager 35 or under) 

• Marc Robichaud Community Leader 

• Best Large Surface Retailer (over 65,000 square feet) 

• Best Contractor Specialist Store 

WINNERS WILL RECEIVE 

• A trip for two to the Hardlines Conference in Niagara 

Falls, Ont., including hotel, airfare, and admission to 

the conference 

• A marketing package that includes photos, write ups, 

and videos of your store 

• An inscribed plaque 

• The title of 2017 Outstanding Retailer 

Visit www.oras.ca for more info, sample applications, 

tickets to the Gala, frequently asked questions, and more.

ENDCAP 

FLE 

RESOURCEFUL FAMILY 

TURNS AROUND STRUGGLING STORE 

When times got tough in their small mining town, this family saved their business by 

putting an emphasis on the personal touch and meeting the community’s new needs. 

BY GEOFFREY McLARNEY 

T 

he city of Thetford Mines, Que., 

traces its story back to the first 

decade of Confederation, when one 

of the country’s largest asbestos deposits 

was found in the area. It quickly became 

the centre of one of the biggest asbestos 

mining operations in the world. But with 

concerns growing through the 20th century 

over the adverse health effects of the 

mineral, local businesses had to adapt 

to stay afloat. One success story is Raoul 

Paré’s family-owned hardware business, 

which began with its first store in 1967. It 

was a rocky start: a tornado levelled the 

first building just two years later, and its 

replacement was felled by fire in 1974. After 

that, Paré stepped back for a time, earning 

a living through odd jobs but always with 

an eye to rebuilding once again. 

That goal came to life in 1985, when 

Paré brought his son and daughter, Sylvain 

and Louise, on board to reboot the family 

business with a 5,000-square-foot store in 

East Broughton. The business grew, and a 

second store was added in 1994 in nearby 

Robertsonville, with Louise and Sylvain 

buying up Raoul’s shares in the company. 

This store was so successful that it allowed 

the Parés to acquire a 49 percent stake in 

the RONA store in Thetford Mines. They 

then closed the Robertsonville store, 

moving its staff to Thetford Mines, and 

concentrated their energies on the joint 

venture there, which hadn’t been profitable 

since 2008. 

The Thetford Mines asbestos operation, 

the last in the Quebec asbestos belt, 

finally dried up in 2011, after decades of 

the mineral’s declining popularity. For the 

communities so long defined by it, the end 

The Paré family took over the Thetford Mines store at a 

time when the community was facing an identity crisis. 

of the era has meant not only economic 

challenges, but a loss of identity. 

The Parés moved quickly to turn the 

Thetford Mines store’s fortunes around, 

expanding with the purchase of a woodstove 

and fireplace business with a solid 

local reputation. In their first year of joint 

ownership, that business alone brought in 

$950,000 in sales. The family continued 

expanding the business with an overhaul 

of the flooring department and the addition 

of an interior design boutique in 

2013, upgrading the lumberyard the same 

year. Just last year, the store unveiled a 

1,200-square-foot garden centre, with 

plans to triple its size this year. 

As a family operation, the store can 

focus on personal attention to customer 

service to ensure shoppers find what they 

need. Pro customers can seek assistance 

by calling one of two mobile phone lines 

day or night, seven days a week. The Parés 

maintain the personal connection with 

their clientele, not just on the individual 

level, but in the community as well. That 

includes fundraising and volunteer work. 

Louise sits on the board of Fondation 

Renaissance, an organization serving 

people with intellectual disabilities, and 

Sylvain volunteers as a firefighter and 

serves school breakfasts to children from 

low-income families. 

While many “company towns” don’t 

outlive their dominant industries, the Paré 

family is a living and working example of 

how ingenuity, diversification, and great 

customer service can turn around a business’s 

fortunes even in the toughest of conditions. 

RONA Thetford Mines has found a 

way to meet a variety of consumer needs by 

focusing on its strengths and has prospered 

without sacrificing its personal touch. 



www.hardlines.ca

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For more information about how Orgill can help you grow your business, contact us today! 

1-888-742-8417 ext. 2009 • contactus@orgill.com • www.orgill.ca • Orgill Canada 3232 White Oak Road London, ON N6E 1L8

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