HHIQ_3Q_17_Complete

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 

THIRD QUARTER / 2017 

THE POWER OF 

YOUR PEOPLE 

Your business is only as 

strong as your weakest 

employee. Here’s how 

to find—and retain— 

the best workers. 

BACK FIELDS 

AND BACKYARDS 

Peavey’s found 

success in embracing, 

not resisting, the 

increasing urbanization 

of its market. 

THE HARD SELL 

OF “GREEN” 

Eco products are 

becoming more 

popular, but how do 

you get contractors 

on board, too? 

HOME IMPROVEMENT QUARTERLY 

Our definitive report on 

the top 20 players in the 

Canadian home improvement 

and hardware industry 

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

THE POWER 

TO BUILD 

Teamwork reflected in results 

For more information, contact Pierre Nolet, Senior director - Business development 

Telephone: 1-800-361-0885


THIRD QUARTER / 2017 • VOLUME 7, NO. 3 

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

@Hardlinesnews • www.hardlines.ca 

EDITOR-IN-CHIEF 

Michael McLarney 

mike@hardlines.ca 

PUBLISHER 

Beverly Allen 

bev@hardlines.ca 

EDITOR 

Sigrid Forberg 

sigrid@hardlines.ca 

STAFF WRITER 

Geoffrey McLarney 

CONTRIBUTING WRITERS 

John Caulfield 

Robert Howard 

Bill Wilson 

ART DIRECTION 

Shawn Samson 

TwoCreative.ca 

VP BUSINESS DEVELOPMENT 

David Chestnut 

david@hardlines.ca 

MARKETING DIRECTOR 

Katherine Yager 

kate@hardlines.ca 

ACCOUNTING 

Margaret Wulff 

margaret@hardlines.ca 

ADMINISTRATION 

Maggie MacKinlay 

maggie@hardlines.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. 

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information, please contact our Circulation Department at 289-997-5408; hardlines@circlink.ca. 

GREG DROUILLARD 

PRESIDENT 

Target Building Materials 

Windsor, Ontario 

As we(Target Building Materials) celebrate our 50th year in business, 

we reflect on some of the strengths and highlights that helped us to 

achieve this milestone. TORBSA certainly has played a pivotal role 

in those successes. TORBSA has always been a respected buying 

group and the members continue to make this an enjoyable and 

profitable venture we are all proud to be a part of. TORBSA has 

always been on the forefront of new and innovative opportunities 

afforded to us by the numerous vendors that are eager to get 

involved with us all. The group operates with a skillful staff as well 

as a very effective Board of Directors that encourages all members 

to step up and participate. It is very gratifying! 

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. 

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 

Office: 416.489.3396 • Mobile: 647.880.4589 

Email: bev@hardlines.ca 

David Chestnut 

VP BUSINESS DEVELOPMENT 

Mobile: 416.425.7992 

Email: david@hardlines.ca 

For More Information about TORBSA, 

Call Bob Holmes at 1-866-865-1689 

www.torbsa.com

CONTENTS 

VOLUME 7, NO. 3 


COVER STORY 

How the top 

22 20 players 

are driving growth 

in the home 

improvement and 

hardware industry 

DEPARTMENTS 

7 

EDITOR’S MESSAGE 

Crunching the numbers 

to help you be your best 

BUYING GROUPS 

2017 BANNER MAP 

CENTRE SPREAD PUILL-OUT 

Our helpful pull-out chart 

breaks down the retail home 

improvement players in 

Canada—from locally owned 

independents to foreignowned 

national chains 

NEWSROUNDUP 

Feds pledge loan 

support for beleaguered 

softwood industry 

Lowe’s promises best 

of both worlds with 

Edmonton RONA store 

Lowe’s Canada introduces 

next-gen virtual-reality 

project planning 

TIMBER MART 

hosts open house 

12 

Slegg celebrates anniversary 

with trade show, acquisition 

CRBSC reorganizes following 

former chair’s resignation 

HR & STAFFING 

PUTTING THE HUMAN 

IN RESOURCES 

32 

How do you find motivated, 

knowledgeable, and helpful 

employees? 

MERCHANDISING 

RELY ON YOUR 

SOLID FOUNDATION 

40 

REGIONAL SPOTLIGHT 

COMMON GROUND 

FROM THE ROCKIES 

TO THE PRAIRIES 

42 

Competing with e-commerce 

doesn’t have to be as hard as 

you think. 

Each province has its 

own distinct geography, 

resources, and 

unique needs. 

8 

10 

18 

20 

30 

38 

44 

46 

50 

BUSINESS CONDITIONS 

First quarter 2017 

NEWS SPOTLIGHT 

Canac eyes Ontario, 

focused on Montreal 

PRODUCT SPOTLIGHT 

10” rough-in toilet, WiFi 

mouse trap, and more 

EXECUTIVE INTERVIEW 

TIMBER MART’s 

Bernie Owens 

SHOW PREVIEW 

22nd annual 

Hardlines Conferenceence 

SHOW REPORT 

National Hardware 

Show in Las Vegas 

SELLING TO PROS 

Contractors still resist 

choosing green 

products on their own 

STORE MANAGEMENT 

Retail shrinkage: 

what is it costing you? 

ENDCAP 

Doug Anderson, 

president and CEO of 

Peavey Industries 


5

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EDITOR’S MESSAGE 

SIGRID FORBERG, EDITOR 

CRUNCHING THE NUMBERS 

TO HELP YOU BE YOUR BEST 

It’s that time of the year once again where we do our annual 

check-in with the industry. Yes, it’s probably the most stressful 

thing we do all year, but it also informs everything we do for the 

next 12 months. And we hope you find it helpful, too. 

E 

very year for this issue, we analyze 

the Canadian home improvement 

industry—how big is it? Who are the 

Top 20 retailers? What have they done this 

year that’s led them to climb or fall in our 

ranking? How will it all impact everyone in 

the coming years? 

I started with HHIQ two years ago, just 

in time for this giant research project. I 

was new to the industry—so forget getting 

your feet wet; it was like getting tossed 

in to the deep end with no life jacket. As 

retailers, I’m sure you’re all aware that a lot 

can happen in a year. It was a lot to absorb 

in a short period of time. 

This year, armed with an understanding 

of what a buying group is, how distribution 

works, and an understanding of the issues 

that keep independent retailers up at night, 

I felt prepared to take on this assignment. 

With all the changes we’ve seen in the past 

few years, it’s helpful to pause and reflect on 

how much has changed. (And what hasn’t!) 

In this issue, we also have a fantastic pullout 

that breaks down how all the banners 

across this industry are organized. It’s bigger 

and more comprehensive than any of our 

previous iterations. Feel free to rip it out and 

tack it up on your wall just as you or your 

kids might have done with Teen Bop-type 

posters. Or use it however you like to help 

make sense of this industry, it’s your poster! 

Finally, after all this talk about the 

banners and their ranking, we get down 

to what really determines their successes: 

the people. Wolf Gugler, president of Wolf 

Gugler Executive Search, gives us some pro 

tips on how to first find and then how to 

retain the right employees for your business 

on page 32. And on page 46, Bill 

Wilson, our NRHA Retail Advisor, breaks 

“ 

down the issue of shoplifting and how to 

prevent both external and internal theft 

through employee engagement. 

And of course we have some of your 

stories in this issue, as well. I had the 

pleasure of speaking with several dealers 

from our Western provinces for a regional 

spotlight on the West. Read about their 

experiences on page 42. Our end cap 

features the story of Peavey Industries, 

a formidable Western farm chain that’s 

figuring out how to continue catering to 

its traditionally rural customers in a rapidly 

urbanizing market. 

When we’re looking at all these 30,000- 

foot views of the industry, it can be easy to 

get lost in the data. But Peavey is a great 

example of a company doing interesting 

things. Independent retailers are always 

finding creative ways of working around 

hard-hit or diminishing markets to reach 

new customers as well as adapt to their 

current clients’ changing needs. The home 

In this issue, we have a fantastic pull-out that 

breaks down how all the banners across this industry 

are organized. It’s bigger and more comprehensive 

than any of our previous iterations. 

” 

improvement industry in Canada was worth 

nearly $46 billion last year. We know there’s 

a person behind each of those dollars sold 

and our job is to give you the information 

and best practices to make your business 

the best it can be. 

sigrid@hardlines.ca 

www.hardlines.ca Hardlines Home Improvement Quarterly THIRD QUARTER / 2017 7

QUARTERLY BUSINESS CONDITIONS 

FIRST QUARTER 2017 

I 

n our latest survey of dealers and suppliers, 

there was overall optimism in regards to future 

sales, but it was more subdued compared to the 

same time last year. 

This year, both retailers and vendors expressed their 

intention to invest in buildings, machinery, or equipment 

in the next 12 months, displaying a commitment to the 

further development of their businesses. 

The top issues right now for retailers are staffing, 

customer retention, and increased competition, while 

vendors are concerned with higher raw material and 

shipping costs, retail consolidations, and the exchange 

rate with the U.S. dollar. 

How did your business compare 

with the same time last year? 

At year-end 2017, how do you expect sales 

for this year to have gone? 

22.5% 

SAME 

20.0% 

SAME 

22.5% 

SAME 

23.3% 

SAME 

30.0% 

DOWN 

RETAILERS 

47.5% 

UP 

30.0% 

DOWN 

VENDORS 50.0% 

UP 

15.0% 

DOWN 

RETAILERS 

62.5% 

UP 

6.7% 

DOWN 

VENDORS 

70.0% 

UP 

The percentage of retailers experiencing 

better sales than last year has 

increased more than 10 percentage 

points from 37.0 percent in Q1 2016 

to 47.5 percent in Q1 2017. 

Looking back, the percentage of 

vendors experiencing better sales 

than last year was down significantly 

from Q1 2016, when 73.3 percent of 

vendors reported increased sales. 

Looking ahead to the end of the 

year, the percentage of retailers 

that predict sales will go up 

has decreased, compared to 

67.9 percent in Q1 2016. 

Looking ahead at the rest of the year, the 

percentage of vendors that predict sales will go 

up went down significantly from 93.3 percent in 

Q1 2016, while the percentage expecting sales to 

go down increased from 0.0 percent in Q1 2016. 

8 THIRD QUARTER / 2017 

Hardlines Home Improvement Quarterly 

www.hardlines.ca

FIRST QUARTER 2017 

BUSINESS CONDITIONS 

Did you offer new products/ 

services in Q1 to better compete? 

52.5% 

NO 

Did you receive more orders 

in Q1 2017 than in Q1 2016? 

25.0% 

SAME 

47.5% 

RETAILERS YES 

VENDORS 50.0% 

YES 

25.0% 

NO 

RETAILERS: Top issues in the first quarter 

1 Staffing 

2 Customer retention 

3 Increased competition 

4 Training 

5 Decreasing margins 

Year over year, the percentage of 

retailers offering new products and/or 

services to better compete was down 

from 53.6 percent in Q1 2016. 

Year over year, the number of vendors that 

received the same amount of orders dropped 

nearly 15 percentage points from 64.3 percent 

in Q1 2016, while the number of vendors 

that received the same number of orders 

increased more than 17 percentage points. 

5 E-commerce challenges 

7 Succession 

7 Adding new services 

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

9 Exchange rate with the U.S. dollar 

25.0% 

NO 

10.0% 

UNSURE 

RETAILERS 

65.0% 

YES 

30.0% 

UNSURE 

6.7% 

NO 

VENDORS 63.3% 

YES 

10 Expanding products 

11 Supplier consolidation 

12 Increased presence of U.S. retailers 

13 Mortgage interest rates 

14 Cross-border shopping 

The percentage of retailers expecting sales to 

increase in the next six months has remained 

consistent from 64.3 percent in Q1 2016. 

Optimism for the next six months experienced 

a significant drop as the percentage of vendors 

anticipating sales increases in the next six 

months decreased by 30 percentage points 

from 93.3 percent in Q1 2016. 

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

VENDORS: Top issues in the first quarter 

1 Higher raw material/ shipping costs 

2 Retail consolidation 

35.0% 

UNSURE 

RETAILERS 

20.0% 

NO 

45.0% 

YES 

The percentage of retailers expecting increased 

sales fell more than 12 percentage points from 

a year ago, while the number of retailers not 

expecting increased sales over the next 12 months 

remained consistent with 21.4 percent in Q1 2016. 

10.0% 

NO 

16.7% 

UNSURE 

VENDORS 

73.3% 

YES 

Year over year, the percentage of vendors predicting 

increased sales has dropped 20 percentage points 

from Q1 2016’s 93.3 percent. And the number 

of those predicting decreased sales has risen 

dramatically from zero percent in Q1 2016. 

2 Exchange rate with the U.S. dollar 

4 Housing market 

4 Competition from Asian sourcing 

6 E-commerce sales 

6 

In-store merchandising 

and replenishment 

8 Increased presence of U.S. retailers 

9 Cross-border shopping 

Source: HARDLINES Quarterly Business Conditions Survey 


NEWS SPOTLIGHT 

FLE 

CANAC EYES ONTARIO, BUT MONTREAL 

MARKET IS ITS CURRENT FOCUS 

One of Quebec’s largest independent chains is committed to getting even bigger still. 

Groupe Canac’s president, Jean Laberge, wants to continue expanding his chain by 

adding new stores—and when he’s finished with Quebec, he sees no reason why he 

couldn’t start putting stores across the border in Ontario. 

C 

anac is considered one of the country’s 

largest independent home 

improvement retailers. With sales 

reaching $600 million from two dozen 

stores throughout the province of Quebec, 

the privately held Quebec City-based company 

will finish filling in the market in its 

hometown in 2018, with plans for a store 

in Pont-Rouge, on the west side of the city. 

And while Quebec City and environs have 

been the company’s base for years, it has 

gradually expanded down the eastern part 

of the province, and is steadily encroaching 

on the Montreal market. One year ago it 

erected its first store in the greater Montreal 

area, in Beauharnois, southwest of the city 

on the south shore. 

Also this year, stores are going into 

Thetford Mines, Que., and more 

significantly, in Granby, about an hour 

east of Montreal. Built at a cost of $5.5 

million and employing about 85 people, 

the 60,000-square-foot Granby store will 

be Canac’s 25th. Sewing up markets on the 

east side of the St. Lawrence River will be 

the store slated for Rivière-du-Loup. “It will 

complete for us the east side of the province,” 

says Jean Laberge, president of Canac. 

“We are getting big growth from our new 

stores in new markets.” 

Next year, he plans to erect a store even 

closer to the island. “We hope to have a 

store in Montreal in 2018, on the south 

shore.” That store will be in St. Hubert, 

in Longueuil. After that, Laberge says the 

company will expand on the north shore. 

“Mirabel and Laval are also on the books.” 

LONG-TERM GROWTH PLANS 

Once it has tapped out the Quebec market, 

Larberge says Canac is looking to its 

western neighbour, Ontario, for further 

growth. In anticipation of an opening in 

an Anglophone market as early as 2019, 

Canac has translated its website and flyers 

into English, though negotiations for 

a site continue. And while he considers the 

Ottawa market well served, he says there are 

other opportunities in the province. 

“We looked for land in Ontario, near the 

border, where we could install Canac stores. 

We are almost ready to go into the English 

market,” he says. 

But for now, Laberge says the company’s 

focus remains on Quebec, at a pace of about 

two stores a year, something that Canac’s 

Groupe Canac’s president, Jean Laberge, 

hopes to have a store in Montreal in 

2018, on the south shore. After that, 

he says, the company will expand on 

the north shore. 

infrastructure can manage and maintain over 

the next two to three years. Each store costs 

up to $6 million and employs 90 staff. 



www.hardlines.ca

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SOMETHING 

BIGGER! 

Join us and 

SEE first-hand 

the power of our 

NEW NETWORK. 

Ace dealers from across Canada (top to bottom): Port Hardy, BC; Thorndale, ON; 

Buck Lake, AB; Sainte-Cecile-de-Masham, QC; Fraser Lake, BC 

Email: 

becomeadealer@ace-canada.ca 

or call 1-844-364-4223

NEWSROUNDUP 

OF THE HOME IMPROVEMENT INDUSTRY 

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

FEDS PLEDGE LOAN SUPPORT FOR 

BELEAGUERED SOFTWOOD INDUSTRY 

T 

he Canadian government has 

pledged $867 million in loans and 

loan guarantees to the softwood 

lumber industry, following the imposition 

of countervailing tariffs on softwood 

exports to the U.S. The feds will work 

in concert with the provinces to support 

the industry. 

Not surprisingly, the U.S. lumber industry 

is railing against the move, claiming 

it’s yet another example of government 

subsidies, which tip the balance of trade in 

favour of Canadian exports. 

The loans are designed to help softwood 

producers offset the impact of the U.S. tariffs, 

which range from three percent to 23 

percent, depending on the company and 

province it’s in. The loans should be used, 

say insiders, to help the Canadian industry 

become less reliant on the U.S. by developing 

other offshore markets. 

The Forest Products Association of 

Canada voiced its support for the government 

measures in a release: “We appreciate 

that the federal government is standing 

tall for Canadian forestry communities 

by launching a comprehensive package in 

the face of trade actions that we believe 

are without merit,” said Derek Nighbor, 

CEO of FBAC. “This support will assist 

our efforts in continuing to transform our 

sector, diversify our markets, and support 

our workers.” 

Softwood lumber has been a perennial 

sticking point in trade relations between 

Canada and the United States since 1981. 

The dispute has seen countervailing tariffs 

imposed intermittently on Canadian softwood, 

but adjudicators for both the North 

American Free Trade Agreement and the 

World Trade Organization have consistently 

overturned the charges that they are violations 

of free trade. 

U.S. President Donald Trump had made 

revisiting the NAFTA agreement a point 

of his election campaign. He hinted on 

his Twitter account that other industries 

may be targeted next, complaining that 

Canadian dairy imports hurt farmers in 

Softwood lumber has been a perennial 

sticking point in trade relations between 

Canada and the U.S. since 1981. 

Wisconsin and the border states. (Trump 

has since backed off on his threat to dismantle 

NAFTA.) 

In Canada, most forests are on crown 

land, and prices for harvesting trees on that 

land by private companies are set by the government 

as stumpage fees. Those stumpage 

fees are considered artificially low by the 

U.S. side, thereby constituting a government 

subsidy. In the U.S., most of the forest land 

harvested for softwood is privately held, and 

prices for the trees are market driven. 

Is your store doing something that you think is newsworthy? 

Let us know! Give us a call at 416-489-3396, ext. 3, or send us an email at sigrid@hardlines.ca. 



www.hardlines.ca

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LOWE’S PROMISES BEST 

OF BOTH WORLDS WITH 

EDMONTON RONA STORE 

L 

owe’s Canada will gradually convert 

RONA’s big box Home and 

Garden stores to the Lowe’s banner. 

The first, Namao RONA in Edmonton’s 

north end, was completed early this summer. 

The store underwent a full reracking 

and remerchandising, while staff were to 

be trained according to Lowe’s guidelines. 

The second, Langford RONA Home and 

Garden in Victoria, will also undergo a renovation 

and re-merchandising of the existing 

store and is expected to be completed 

by the fall. The 16-week process includes 

construction, departmental sequencing of 

new racking and re-merchandising, branding, 

and IT conversion. 

The Namao store will take on Lowe’s 

own private brands such as Kobalt, and add 

The Edmonton RONA store is the 

first to convert banners to Lowe’s. 

heavy appliances. However, don’t expect 

it to be a strict cookie cutter example of 

existing Lowe’s stores. According to Alan 

Blundell, divisional vice president, merchandising 

for Lowe’s Canada, the refurbished 

outlet will combine the best of both 

banners, especially in the case of RONA’s 

expertise in catering to contractors. 

“RONA knows pros and we have to 

make sure we build on that,” he said during 

a presentation at a recent Hardlines 

event. That means providing the breadth 

and depth of product that pro customers 

count on. 

The new store will also reflect a move by 

Lowe’s Canada to depart from the current 

model, which was developed to cater largely 

to the Ontario market. With this refit, 

Lowe’s will look for ways to let local markets 

drive assortments to a greater degree. 

The new Namao Lowe’s will feature 

97,429 square feet of retail sales space, a 

30,188-square-foot garden centre, and 

a lumberyard that comprises 16,922 

square feet. 

BRIEFLY 

BMR WINS COMPANY 

OF THE YEAR AWARD 

Groupe BMR won the Company of the Year 

Award in the category of large-scale organization 

during the 2017 edition of the Les 

Mercuriades business contest. This award 

acknowledges the outstanding work that 

was accomplished by BMR to serve two times 

more dealers after the acquisition of Groupe 

BMR by La Coop fédérée in 2015. In addition, 

the company, which celebrates its 50th anniversary 

this year, earned the Improvement of 

Productivity Award. 

TORBSA HELPS SET UP BURSARY 

TORBSA has contributed $2,000 to the Lumber 

and Building Materials Dealers Association of 

Ontario to support a special student bursary 

in celebration of the LBMAO’s 100th anniversary 

this year. The bursary will be awarded 

at the end of September to one person who 

is currently an employee or dependent of a 

full-time employee of any retailer or supplier 

member of the association. 

TAIGA HELPS 

FORT MAC RESIDENTS 

Taiga Building Products has made good on its 

pledge to provide additional funds to support 

Fort McMurray’s rebuilding efforts by donating 

$3 per pair of 2Undr boxers given out to 

customers. Taiga handed out 800 pairs of the 

garments, while giving a hand to the wildfireravaged 

area in Alberta. The company says 

it will be topping up its 2016 contribution of 

$20,000 with $2,400 more going directly to 

the Wood Buffalo Food Bank, thanks to the 

WRLA dollars. 


NEWSROUNDUP 

LOWE’S CANADA INTRODUCES NEXT-GEN 

VIRTUAL-REALITY PROJECT PLANNING 

L 

owe’s Canada has taken its virtualreality 

“Holoroom” to the next 

level. The Holoroom, designed by 

Lowe’s own Innovation Labs, is an immersive 

design and visualization tool that was 

first tested in Canada. It lets users customize 

the Holoroom with paint colours and 

décor features that simulate their own 

home. Now, the virtual reality experience of 

the Holoroom’s latest iteration, “How To,” 

will allow customers to simulate using and 

installing products in a virtual skills clinic. 

The technology debuted this spring in a 

Lowe’s store in Burlington, Ont., followed 

by a RONA store in Beloeil, Que., a few 

weeks later. 

Lowe’s claims it’s the first retailer to apply 

augmented reality (AR) and virtual reality 

(VR) technology beyond design assistance, 

to actually address the evolution of 

home improvement learning and skills. 

The Holoroom How To proof-of-concept 

made its first appearance at a Lowe’s store 

in Framingham, Mass., in the Boston area. 

Building on the first generation of the 

Holoroom program released in 2014, the 

How To app combines the former’s augmented 

and virtual reality visioning capabilities 

with instructional features and realtime 

practice for DIY users. 

“We are excited to be a partner of Lowe’s 

Innovation Labs and to make the Holoroom 

How To experience available to our Canadian 

customers, as it clearly illustrates how innovation 

can enable us to go one step further in 

supporting and inspiring our customers in 

their renovation projects,” says Claire Bara, 

vice-president, strategy and business insights 

for Lowe’s Canada. 

The Holoroom How To is “a different 

experience” from the original Holoroom, 

Lowe’s Canada is using augmented reality 

and virtual reality to offer customers the 

chance to simulate using and installing 

products in virtual skills clinics. 

with a different objective—actually teaching 

how to do home improvement projects, 

says Bara. She has already taken it for a spin 

herself. “It really feels like you are actually 

doing the tiling of the shower yourself, with 

the sensation of the tools in your hand.” 

Bara adds that the system is great for 

customers who lack the skills, or even just 

the confidence, to take on a DIY project 

on their own: “The beauty of it is you 

can mess up, because it’s not real!” She 

notes that consumer tests compared the 

Holoroom How To experience against a 

control group who simply watched tutorial 

videos on YouTube. 

“Customers who used the Holoroom How 

To had a 36 percent better recall” of the steps 

involved, compared with the YouTube viewers, 

Bara told HHIQ, a result she attributed 

to the value of muscle memory. “People 

learn more easily by doing. This is why the 

virtual reality is so efficient.” 



www.hardlines.ca

TIMBER MART 

HOSTS OPEN HOUSE 

T 

IMBER MART hosted an open 

house at its new 27,000-squarefoot 

LBM distribution centre 

in Langley, B.C., at the end of April. 

Members and customers were given facility 

tours and offered open-house specials 

from the assortment of LBM products 

TIMBER MART opened up its 

new Langley DC to members 

and customers this spring. 

housed at the facility and three-acre yard, 

from Tolko lumber products to Malarkey 

shingles and Johns Manville insulation. 

The facility also offers Orgill hardlines 

products—which are cross-docked 

through the facility—as well as combined 

weekly LBM and hardware shipments. 

SLEGG CELEBRATES ANNIVERSARY 

WITH TRADE SHOW, ACQUISITION 

Slegg Lumber, a dominant dealer on 

Vancouver Island, added a 12th location 

recently with the acquisition of Dodd’s 

Lumber in Duncan, B.C. “Buying Dodd’s was 

a big one for us, because it fills a geographic 

hole on the island,” says Tim Urquhart, 

president of Slegg. The company has stores 

in Nanaimo and Langford, and had a small, 

older facility in Duncan, which the Dodd’s 

acquisition replaces. 

The expansion ties in with Slegg’s 70th 

anniversary. The business was founded in 

Nanaimo by the Slegg family, then sold to 

WSB Titan at the beginning of 2015. 

Urquhart says Titan’s influence on Slegg 

has been a positive one, bringing new 

procedures and greater discipline to the 

company and how it approaches the market. 

One relatively new aspect of Slegg’s business 

is an annual trade show for its contractor 

customers. The first one was held last 

year, drawing more than 600 builders and 

trades. This year’s event was held April 27 

in a community centre in Langford, drawing 

more than 1,000 attendees this time. 

“It’s a changing environment and a 

changing market that we’re in,” Urquhart 

observes. 

BRIEFLY 

HOME DEALERS RECOGNIZED 

Hanover Home Hardware Building Centre 

is the recipient of this year’s Walter J. 

Hachborn Store of the Year Award. The award 

was presented to dealer-owners Dan and 

Emily Moulton at the company’s spring 

dealer market. In addition to their customer 

service and expert advice, the store team’s 

social conscience was cited, as expressed 

through the support of many organizations 

including the Hanover and District Hospital 

and projects assisting several youth, 

seniors, and community groups. 

QUEBEC TAX CREDIT EXTENDED 

The provincial budget submitted in April 

to Quebec’s National Assembly includes 

a one-year extension of the RénoVert tax 

credit. Homeowners who spend more than 

$2,500 on sustainable renovations are 

eligible for a 20 percent rebate capped at 

$10,000. Expenditures must be made by 

January 1, 2019, to qualify. In unveiling the 

budget, Finance Minister Carlos Leitão also 

announced an $8 million subsidy to support 

businesses that make renovations to 

improve accessibility for those with physical 

disabilities. 

STORESUPPORT ANNOUNCES 

NEW PARTNERSHIP 

Storesupport has announced a new partnership 

with Marketing Force, a Canadian digital 

marketing agency, to expand the retail 

merchandising services that Storesupport 

offers to brands. With this partnership, 

Storesupport will be providing a range of 

new digital services, which include brand 

management, brand ambassadors, and 

retail merchandisers. 


NEWSROUNDUP 

CRBSC REORGANIZES 

FOLLOWING FORMER 

CHAIR’S RESIGNATION 

R 

ichard Darveau, president and CEO 

of the Quebec industry association, 

AQMAT, announced he was leaving 

his position as chair of the Canadian 

Retail Building Supply Council (CRBSC) 

in April. His sudden resignation, which 

came halfway through his two-year term, 

forced the association to reorganize. 

The CRBSC was originally founded as 

an umbrella of provincial and regional 

building supply dealers’ groups, including 

the ABSDA, LBMAO, WRLA, and 

BSIA. It was legally incorporated in 2016 

when the regional associations identified 

the need to unite as a structured entity 

to better respond to the changes in the 

building supply industry, specifically at 

the national level. 

However, when announcing his resignation 

as chair, Darveau cited his move as 

the result of the difficulty of successfully 

co-ordinating the multiple different associations 

within the umbrella organization. 

“Trying to act and talk as a unified voice 

when there are five founding resources 

with more differences … than common 

ground is too heavy a task in comparison 

with thin and slow results,” he said in a 

statement. AQMAT’s board then met in 

June to consider how the Quebec body 

can respond to federal and international 

advocacy needs directly. 

Following Darveau’s announcement, 

the CRBSC’s board of directors appointed 

Denis Melanson as its new chair. The association 

is now working on unrolling a plan 

for its near future. Melanson, who is president 

of the ABSDA, will serve as chair for 

a two-year term. 

The CRBSC has reorganized following 

the abrupt resignation of former 

chair and AQMAT president and CEO, 

Richard Darveau. 

As part of its national mandate, the 

CRBSC hosted a meeting with key industry 

stakeholders on March 22 in Halifax. “We 

were thrilled to host 33 industry leaders 

from across the country at our leadership 

summit,” said Melanson. “They assisted in 

a program which validated exactly what the 

CRBSC’s priorities should be when charting 

a plan for the future.” 

Four strategic priorities were identified 

at that meeting, with the need for a unified 

national voice at the top of the list. “The 

absence of a national voice hindered us 

from advocating as one on issues and topics 

that affect our industry. Going forward, 

the CRBSC will act as a unified national 

voice for the building supply industry,” 

Melanson continued. 

The association held a national meeting 

in Montreal in June to finalize an action 

plan based on the recommendations and 

strategic direction provided at the Halifax 

leadership summit. 

BRIEFLY 

IMPERIAL RECOGNIZED 

FOR BEST MANAGED 

COMPANIES PROGRAM 

Imperial Manufacturing Group has achieved 

Platinum Club status with the Canada’s Best 

Managed Companies program by retaining 

its Best Managed designation for seven consecutive 

years. Normand Caissie, accompanied 

by his executive management team, 

accepted the national award during the 

recent gala celebrations in Toronto. Imperial 

is a manufacturer of HVAC, stove, and fireplace 

maintenance and building products 

founded by Caissie in a 6,000-square-foot 

building in 1979. Since then, the company 

has established locations in New Brunswick, 

Nova Scotia, Ontario, Quebec, and the U.S., 

representing more than 800,000 square 

feet of manufacturing and warehouse space. 

HOME DEALER NAMED 

YOUNG RETAILER 

The North American Retail Hardware 

Association has recognized eight dealers 

as Young Retailers of the Year. The program, 

now in its 21st year, recognizes individual 

achievements of retailers up to the age of 

35 from the U.S. and Canada. The Canadian 

winner, in the multiple stores category, 

is Matthew Payzant, general manager of 

Payzant Home Hardware Building Centre 

in Lower Sackville, N.S. “These honourees 

have reached impressive professional 

milestones, are strong leaders in their communities, 

and are committed to moving the 

independent home improvement industry 

forward,” says Bill Lee, NRHA president 

and CEO. The awards banquet was held in 

May, prior to the opening of the National 

Hardware Show in Las Vegas. 



www.hardlines.ca

Well Connected. 

Sexton Member’s Story... 

Albert Pike 

Pike’s Building Centre, 

Burin Bay Arm, NL 

“ When we first opened Pike’s 

Building Centre, we were the new kid in town, 

competing against guys who have been 

around for 50 years. A fresh new look and a 

focus on service were priorities. I wanted to 

create more interaction with customers and 

provide them with a level of service that 

I would appreciate. 

One day a customer wanted a 16 foot piece 

of lumber cut in half because his regular dealer 

wouldn’t help him. He came to us and my guys 

said sure no problem and didn’t charge for it. 

He has been a loyal customer ever since. 

Going that extra mile with service and 

a smile. That’s my passion.” 

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

Go to www.sextongroup.com 

Watch what’s going on in our dealers’ communities.

BY GEOFFREY McLARNEY 

ProductSPOTLIGHT 

ICERA Malibu II 10” Rough-in Toilet 

The new Malibu II 10” Rough-in Toilet from ICERA is designed to fit in smaller bathrooms without 

sacrificing style. A compact-elongated bowl and fully skirted profile create a sleek exterior, while 

an oversize 2-1/8” trapway and 3” flush valve is designed to prevent clogging. Finally, precision rim 

jets and a MicroGlaze stain-resistant, anti-microbial finish make for an easy-to-maintain bowl. 

www.icerausa.com 

Ideal Security Ladder-Aide extension 

From Ideal Security, the Ladder-Aide extension is billed as “the quickest, easiest, and 

safest” way to use a ladder on stairs. The compact and portable unit doesn’t require 

permanent installation on the user’s ladder. It sets up quickly for ease of movement from 

stair to stair, and works with a variety of ladders. With an anti-skid surface and microadjustable 

height (to within 1/8”), it creates a stable, level base for use on all stairways. 

At 7.2 pounds, the Ladder-Aide is self-storing and supports type III and type II ladders. 

www.idealinc.com 

Victor WiFi-enabled Smart-Kill mouse trap 

The rodent control specialists at Victor have unveiled their WiFi-enabled Smart-Kill line. The 

rat and mouse traps use advanced smart-circuit technology to quickly sense and dispatch 

a rodent once it enters the trap. With each catch, the trap sends a real-time notification 

to the connected mobile device to let the user know to empty the trap. Users download 

Victor’s Smart-Kill app and can monitor traps from any location using their mobile device. 

www.woodstreambrands.ca 

Painter’s Mate Double-Sided Poly-Hanging Tape 

For painting or remodeling projects that require protection of surfaces such as windows or cabinets, 

the Painter’s Mate brand now offers Double-Sided Poly-Hanging Tape to save time and money while 

hanging poly-sheeting. The exposed side of the tape is a premium-grade painter’s tape adhesive, 

which allows for a 21-day clean removal from painted walls, trim, glass, or metal surfaces. Once the 

exposed side is applied to the surface, remove the liner on the other side to reveal an aggressive 

adhesive, which holds securely to poly-sheeting, plastic drop cloths, and other protective coverings. 

Double-Sided Poly-Hanging Tape is ideal for projects involving painting, sanding, or cleaning. 

www.paintersmategreen.com 



www.hardlines.ca

Dupont tFlashing Systems 

Dupont’s Flashing Systems tapes and wraps are now available in three shorter sizes of rolls for singleuse 

projects or smaller applications. Flashing Tape is self-adhering and the new 4” x 33’ roll is suited 

for flashing a standard flanged door up to 6’ 8” high x 5’ wide, or a flanged window up to 6’ high x 7’ 

wide, excluding the sill flashing. The new 9”x15’ roll of FlexWrap NF can be used to flash two 6’ wide 

window or door sills, or an arched window top and sill, as well as exterior wall penetrations such as 

electrical, HVAC, and plumbing areas. The double-sided StraightFlash VF forms a durable seal 

around non-flanged or brick-mould doors and windows, and is now available in a 6” x 25’ roll. 

www.dupont.ca 

PRODUCT SPOTLIGHT 

Lenova PermaClean Apron Front Ledge Prep Sink 

Lenova PermaClean Apron Front Ledge Prep Sink puts a modern spin on a classic look 

with sleek lines and a bowed front. It comes in a single- or double-bowl configuration, 

the latter with a low divider to accommodate large pots with long handles. The sink’s 

engineered platform ledge allows it to convert to a food prep centre when accessorized 

with an 

optional stainless steel colander, roll-up grid drainer, and bamboo cutting board. 

Crafted from durable commercial-grade 304 stainless steel, the Ledge Prep Sink features 

Lenova’s PermaClean drain system to eliminate drain lines and maintain cleanliness, 

including removable splash guards and strainer baskets. 

www.lenovasinks.com 

Bosch ProGuard line 

Bosch’s ProGuard line offers tools and attachments designed to reduce dust 

inhalation and silica exposure. When using the correct setup and following 

manufacturer’s instructions, Bosch dust collection systems help keep the air cleaner 

by using HEPA filters that claim to capture more than 99.97 percent of dust particles 

0.3 microns and larger. The ProGuard line includes a hammer drill, speed clean dust 

extraction drill bits, and a variety of attachments to minimize exposure to dust. 

www.boschtools.ca 

DynaTrap electronic indoor/outdoor insect trap 

DynaTrap is an electronic indoor/outdoor insect trap offering protection against 

mosquitoes, biting flies, moths, and wasps. Unlike other bug prevention solutions, 

DynaTrap is free of pesticides and other chemicals, and environmentally friendly. 

It uses UV light and carbon dioxide to mimic human beings and maximize predatory 

insect attraction. Its fan then vacuums the insects into a retaining cage. 

When left to run all day during mosquito season, DynaTrap works to 

disrupt the mosquito life-cycle and keep homes and yards bug-free. 

www.dynatrap.com 


EXECUTIVE INTERVIEW 

BERNIE OWENS 

TIMBER MART’S BERNIE OWENS: 

WE HAVE TO BE EYES-OPEN 

As TIMBER MART kicked off its 50th anniversary earlier this year, President Bernie Owens 

sat down with HHIQ to talk about the group’s past and his thoughts on its future. 

T 

he 50th anniversary of TIMBER 

MART finds President Bernie 

Owens enthusiastic, but also reflective. 

For him, the milestone offers a chance 

to look back at the evolution of this industry 

and question what lies ahead. “Talking 

about the next 50 years, the pace of change 

and consolidation in the industry, especially 

in recent years, I look at it and say, 

‘How are we going to differentiate ourselves 

going forward?’ ” 

In conversation with HHIQ at the group’s 

annual trade show in Toronto, he touched 

on a lot of themes, but with a big-picture 

perspective. For example, the recent overtures 

by competitors to increase off-the-top 

rebates on invoices had him worried about 

the entire eco-system of the Canadian supply 

chain. For him, all sides have to succeed, 

for the sake of a strong Canadian-based 

industry—including vendors. His group 

works from that principle: “We have that 

intimacy with the vendor community, but 

we have to make sure we’re buying right for 

our members,” he adds. 

Owens talks about the independents 

competing alongside the big chains and 

offers some sobering thoughts about the 

next wave of consolidation that this country 

could face. Besides Lowe’s and Home 

Depot, there are numerous smaller, regional 

chains in the U.S. that are still huge by 

Canadian terms. He points out the acquisition 

last summer of the Construction 

Products division of Superior Plus (which 

includes Allroc and Winroc), which was 

bought by Foundation Building Materials 

in California. 

“That company didn’t exist two years 

ago,” he says. “It’s all private-equity money.” 

Could this become a larger trend that could 

impact more Canadian companies? “We 

have to be eyes-open that it’s an evolving 

industry.” 

Nevertheless, Owens sees the independent 

model as both sustainable and healthy, 

one that the buying groups are an important 

part of. The volume purchases that 

TIMBER MART can achieve for members, 

both big and small, he notes, provide 

plateaus that give them all a competitive 

advantage against the large chains. 

He believes the buying group model is a 

good one that will continue to serve independents. 

Owens also points out that the 

groups in Canada, unlike their U.S. counterparts, 

“are not channel specific.” Groups 

here can have members that range from pro 

dealers and gypsum supply dealers (GSDs) 

to home centres and hardware stores. 

“With us, it’s got its pros and cons—but 

more pros that we have different segments, 

so if one slows down the others keep going.” 

He points out, for example, that alongside 

Bernie Owens spoke with the HHIQ 

team at TIMBER MART’s annual 

trade show, where the group was 

celebrating its 50th anniversary. 

the traditional dealers in his group’s ranks, 

TIMBER MART represents the largest volume 

by GSDs in Canada. 

But he’s very selective about which commercial 

dealers can join. And that directive 

goes for any member, for that matter. 

There’s no cap in size, he says, but “if it’s a 

well-run business and we have a fit in our 

group, we can sign them.” 

He points to a larger affiliation, as well. 

TIMBER MART’s membership in yet 

another buying group, Spancan, gives 

his members access to a strong source of 

hardware supply. And in return he says his 

group can provide loyalty to drive volumes. 

“When a vendor wins it, he gets the business,” 

Owens says. 

The relationship with Spancan keeps 

growing, he says. With that group, his members 

can negotiate vendor-direct programs. 

For fill-in and less-than-vendor-direct 

orders, he praises the role that hardware 

wholesaler Orgill provides in supplying a 

full range of hardlines to his members. 



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

22 THIRD QUARTER / 2017 Hardlines Home Improvement Quarterly 

www.hardlines.ca

FEATURE 

Our definitive report on the top 20 players in the Canadian home improvement 

and hardware industry for 2016 breaks down who to watch for, their successes, 

and what you can learn from them as these retailers jockey for position. 

BY SIGRID FORBERG 

A 

lthough it was a year of big changes 

within the industry, the top 20 

retailers remained consistent from 

the year before. The four major companies 

competing for first position continued to 

develop strategies and programs that would 

set them apart from the pack. 

The Home Depot Canada continues to 

dominate the market—coming in at first 

on our list for the third year in a row. Rising 

near the top with the acquisition of RONA 

(and with it, a foot in the door to the previously 

untapped Quebec market) last 

year, Lowe’s Canada ranks second. Home 

Hardware Stores Ltd., the proudly Canadian 

and nationally recognizable brand, holds 

steady this year in third place. And finally, 

Canadian Tire rounds out the top four, ranking 

well, despite its disappointing online 

performance as well as a CEO change-up 

half-way through the year. 

The other 16 companies that comprise 

this year’s top 20 retailers also went through 

their share of difficulties and growth in 

2016. New to the list is Peavey Industries, 

which was bumped up the Top 20 list with 

the acquisition of TSC Stores. 

NARROWING COMPETITION 

Consolidation continues to be a theme 

among this year’s top 20 retailers. While the 

biggest acquisition that continues to impact 

everyone was Lowe’s Canada’s purchase of 

RONA, 2016 also saw some major changes 

regionally: Peavey Industries acquired TSC 

Stores, Kent Building Supplies took over 

Central Home Improvements, and Groupe 

BMR rejoined ILDC, which puts ILDC 

firmly in place as Canada’s largest home 

improvement buying group. 

As the competition continues to heat up, 

retailers are fine-tuning their strategies to 

better serve their current customers and to 

reach new demographics. 

LA BELLE PROVINCE 

Lowe’s Canada has been eyeing the Quebec 

market since it opened its first Canadian 

stores 10 years ago. With the purchase of 

RONA, it’s finally gained access to the province. 

And the Quebec-based companies like 

BMR, Canac, and Patrick Morin have been 

sharpening their elbows, prepared to fight 

for every inch of the market. 

But don’t count out Home Hardware. 

The company has happily seized upon the 

country’s 150th celebrations this year to 

Where do we get this information? 

We use sales and statistics from the companies themselves in most cases, combined 

with competitive intelligence—much of it proprietary. Sales and store counts for each 

company are as of year-end 2016, and based on company data and/or HARDLINES 

estimates. HARDLINES has tracked the growth of the retail home improvement industry 

in Canada since 1997. 

The industry, as measured by HARDLINES, comprises sales at retail by all hardware 

stores, building centres, and home centres in Canada, including related hardware and 

home improvement sales by Canadian Tire, club stores, co-ops, and mass merchants. 

All data drawn from the 2017-2018 Hardlines Retail Report by the Editors of 

HARDLINES. Sales in $ millions. Go to hardlines.ca and click on “Publications & 

Reports” for more information. 

Industry Size 

BILLIONS 

$46 

$45 

$44 

$43 

$42 

$45.91 

$44.62 

2015 2016 

Y-O-Y 

INCREASE 

2.9% 


FEATURE 

remind dealers and Canadians alike of its 

Canadian heritage. And other retailers like 

Castle and TIMBER MART are also amping 

up their efforts to increase their presence in 

the Quebec market. 

ECOMMERCE, ECOMMERCE, 

ECOMMERCE 

Just a few years ago, no one would have ever 

thought you could sell hardware or building 

materials online. Now, it’s crucial to have 

an omnichannel business plan. That means 

much more than simply having a basic website—you 

need to have active social media 

accounts and your site needs to be up-todate 

and informative because it’s often the 

first (and last) place your customers will 

choose to interact with your brand. 

That also leads into the bricks-and-mortar 

side. Dealers need to be very conscious 

of building a complete retail experience. 

Merchandising, product knowledge, and 

customer service are all important factors in 

this. More and more, dealers are looking for 

ways to lock in customer relations training 

and product knowledge training to make 

their stores destinations for consumers in 

search of not only products, but knowledge 

about how to use those products. 

COMPETING FOR THE 

CONTRACTOR 

The Home Depot and Lowe’s are fighting 

hard for that lucrative contractor customer’s 

loyalty. Home Depot is replacing its 

single contractor counters, and installing 

a series of smaller desks where each contractor 

can be served separately by a store 

associate. And the company has carried out 

a closer review of the brands that appeal to 

pros and increased the availability of job-lot 

quantities. Stores also have designated pro 

parking, special carts for pros, and “fastlane” 

checkouts for contractors. 

Lowe’s is also investing heavily to woo 

contractors and trades. With the expectation 

that housing is going to hold steady, the 

company has high hopes for its contractor 

Buying groups year-over-year changes 

Buying group 2015 2016 Change 

Groupe BMR $1,200 $1,200* 0.0% 

Castle Building Centres $1,875 $1,950 4.0% 

Delroc Industries $750 $713 -4.9% 

Home Hardware Stores** $3,930 $4,114 4.7% 

ILDC $2,650 $3,800 43.4% 

Sexton Group $1,885 $1,800 -4.5% 

TIMBER MART $2,840 $2,800 -1.4% 

TORBSA $350 $371 6.0% 

TOTAL $15,480 $15,548 0.4% 

*BMR sales not included in 2016 total to avoid double-counting against ILDC membership 

** Sales by Home’s building centre and home centre members only 

TOP FOUR 

42.4% 

Rest of the 

industry 

12.4% 

Canadian 

Tire Retail* 

16.8% 

Home Depot 

Canada 

13.0% 

Home 

Hardware 

15.0% 

Lowes 

Canada 

and pro business to continue to expand. It 

also doesn’t hurt that its Reno-Depot banner, 

which came with the RONA acquisition, 

is targeted at contractors and heavy 

DIYers. 

INDEPENDENT EDGE 

So what can we learn from this data that 

will help the independent stay competitive 

with all these factors at play? Independents 

have an advantage over their larger-scale 

competitors: they’re flexible. Being able to 

pivot your business plan in response to your 

customers’ needs is a real asset. And owners 

BIG BOX SALES 

Home 

Depot 

Canada 

Lowes 

Canada* 

Kent* 

Rest 

of the 

market 

$7.7 

16.8% share 

$3.9 

8.5% share 

$0.3 

0.6% share 

$34.0 

74.1% share 

0 $10 $20 $30 $40 

*Sales from big boxes only 

BILLIONS 

(or designated employees they trust) are in 

the store every day with their finger on the 

pulse. 

The most successful companies find and 

develop their niches, but don’t neglect the 

other sides of their business in doing so. It’s 

important not to put all your efforts into 

your ecommerce store and let your bricksand-mortar 

location fall apart, or vice versa. 

Some customers may come to you for something 

specific they can’t find elsewhere, but 

don’t overlook potential online customers 

you could also build relationships with and 

cultivate loyalty as widely as possible. 



www.hardlines.ca

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3M and Cool Flow are trademarks of 3M. Used under license in Canada. © 2017, 3M. All rights reserved. BA-17-24039 

170608925 E

BY MICHAEL McLARNEY 

FEATURE 

These 20 retail groups represent the 

lion’s share of all sales in home 

improvement retailing, with half those 

sales coming from just three groups. 

CANADA’S BIGGEST HOME IMPROVEMENT GROUPS 

The companies listed here account for more than 85 percent of all sales by Canada’s retail home improvement 

industry. Find out how they do it. 

THE HOME DEPOT CANADA 

RANK 2015 2016 change 

# 1 $7,195 $7,699 7.0% 

After a meteoric rise to the top during the 

1990s, the Canadian market is a mature one 

for this big box juggernaut. Unlike its rival, 

Lowe’s, it has opened only three stores in 

recent years, all in dense and growing urban 

markets, with two in the Greater Toronto 

Area and one in British Columbia’s Lower 

Mainland. The goal now is increased sales 

from existing stores—especially among its 

contractor customers—and through internet 

sales. And it’s doing a great job of both. 

LOWE’S COS. CANADA 


# 2 $6,600 $6,900 4.5% 

While it’s the number-two player in the 

U.S.—and the world, for that matter—its 

10-year growth plan in Canada was hampered 

by a) a worldwide recession, b) a 

paucity of good real estate, and c) tough 

competition from both Home Depot and a 

strong segment of independents. However, 

Canada’s steady, if unspectacular, economic 

recovery solved the first problem and Target 

Canada’s exit satisfied the second one. Of 

course, the acquisition of RONA enabled 

Lowe’s to absorb much of that tough competition 

in one fell swoop. Now, Lowe’s 

owns a range of banners, including the 

Canadian license for Ace. 

HOME HARDWARE STORES 


# 3 $5,865 $6,140 4.7% 

Slow and steady holds the course. At least 

that’s what Home Hardware was always 

known for. But an aggressive campaign to 

recruit new dealers that began a decade ago 

set off a scramble throughout the industry 

as the banners began vying for dealers 

in earnest. Home managed a net gain of 

80 stores over that time, putting its store 

count at almost 1,100 across the country. 

Those stores represent hardware dealers, 

home centres, building centres—and even 

furniture stores. However, the LBM side is 

now the biggest part of Home’s DNA, so it’s 

been increasing its promotion of that side 

of the business, including the development 

of a new company slogan. 

CANADIAN TIRE RETAIL 


# 4 $5,435 $5,690 4.7% 

With tentacles that extend into everything 

from sporting goods, fuel, and automotive 

service to financial services and a real estate 

income trust, the main part of Canadian 

Tire Corporation’s business is generated 

through 500 Canadian Tire-bannered stores. 

Of those stores, a percentage of sales is generated 

in hardware and home improvement. 

Even just measuring those sales and eliminating 

the hockey sticks and tires, this prodigious 

retail entity generates enough sales in 

the hardware/home improvement segment 

to keep it in the number-four spot. 

INDEPENDENT LUMBER 

DEALERS CO-OPERATIVE* 


# 5 $2,650 $3,800 43.4% 

The list quickly goes from national to regional 

with this next player. ILDC is a buying group 

that represents some of the industry’s largest 

regional chains, including Kent in Atlantic 

Canada, Copp in Southwestern Ontario, 

and McMunn and Yates on the Prairies. A 

mandate to represent only large independent 

groups and to maintain a membership 

below two dozen companies has been bent 

somewhat in recent years. The addition of 

Federated Co-operatives almost a decade ago 

and Groupe BMR last summer has swelled 

its ranks by hundreds of points of sale while 

technically maintaining a lid on the size of 

its membership. 

TIMBER MART 


# 6 $2,840 $2,800 -1.4% 

Celebrating its 50th anniversary this year, 

TIMBER MART has been many things 

in recent years—a hardware wholesaler, 

a full-service retail operations provider, 

Continues after buying group insert 



www.hardlines.ca

and a full-line lumber wholesaler. Under 

the aegis of President Bernie Owens, the 

group has methodically and determinedly 

returned to its collective purchasing roots. 

Owens has refocused the group as a buying 

powerhouse negotiating purchases on 

behalf of its approximately 700 members 

across the country. Those members include 

a network of gypsum supply dealers that 

generates the largest volume of drywall 

sales of any group in the country. 

CASTLE BUILDING 

CENTRES GROUP 


# 7 $1,875 $1,950 4.0% 

Castle has been growing its ranks aggressively 

in recent years. That includes going further 

afield than some other groups, embracing upand-coming 

dealers in traditional building 

centre formats as well as a growing number 

of specialty outlets such as door and window 

dealers. The group has been especially successful 

in recruiting strong dealers in Quebec, 

and in adding new members in smaller communities 

in Newfoundland and Labrador. 

Nevertheless, Castle’s growth continues to 

come from its core business areas of lumber 

and plywood, roofing, gypsum, insulation, 

siding, and millwork—and from a fierce commitment 

to independents. 

SEXTON GROUP 


# 8 $1,885 $1,800 -4.5% 

Formed in 1985 by Ken Sexton, owner of a 

(then) small chain of gypsum supply outlets, 

this privately owned buying group now 

has 370-plus members. While still centred 

mainly in Western Canada, it has dealers 

in every province and territory. A number 

of pre-fab home builders on the Prairies 

have become members of Sexton, while its 

growth overall continues across the country 

and includes a range of store types. 

GROUPE BMR 


# 9 $1,200 $1,200 0.0% 

Since being acquired outright by La Coop 

fédérée in 2015, BMR has been focusing on 

growth markets mainly in Quebec, including 

the closure of its Ottawa-area corporate 

store, Builder’s Warehouse, the same year. 

Committed to being the largest domestically 

owned player in its home province, 

BMR is investing in its stores more than 

ever. It has refined the strategies for its two 

brands, BMR and Unimat, a process that 

includes revamped branding, fine-tuned 

marketing, and, most recently, efforts to 

beef up its e-commerce strategy. 

KENT BUILDING SUPPLIES 


# 10 $769 $784 2.0% 

As part of the J.D. Irving group of businesses, 

Kent has deep roots in its home 

province of New Brunswick. Those roots 

have helped it grow the business aggressively 

through a combination of greenfields 

expansion and acquisitions of local competitors. 

Mastermind of much of that growth 

has been Stew Valcour, who stepped back 

(somewhat) from his role as general manager 

in 2015 and turned day-to-day management 

of the company over to current 

GM Michael Simms. Last year, in what was 

considered the worst-kept secret in Atlantic 

Canada, Kent purchased fellow ILDC member 

Central Home Improvement, doubling 

its presence in the Nova Scotia market. 

DELROC INDUSTRIES 


# 11 $750 $713 -4.9% 

This British Columbia-based buying 

group has most of its member dealers in 

the West, making it especially vulnerable 

to the downturn of the oil industry there. 

However, General Manager Dave Boyce says 

that slowdown bottomed out last year, and 

the group, with its focus on contractor-oriented 

yards, has been adding members in 

Eastern Canada. With almost 140 members, 

Delroc is no lightweight, but it’s nevertheless 

not a familiar name in the East. But that 

is proving to be a positive for the company: 

in increasingly crowded markets, Delroc 

offers an alternative to better-known 

brands that may have little or no room for 

new members. One to watch. 

CANAC 


# 12 $540 $580 7.4% 

This chain of building centres is only in 

Quebec, but it’s likely one of the largest family-owned 

businesses in the entire country. 

It’s also a fierce retail competitor, expanding 

into markets outside of its home turf in the 

Quebec City area—currently at the rate of 

about two per year—and offering aggressive 

pricing. While this company may have 

made enemies along the way, it represents the 

entrepreneurial spirit that built this industry 

in Canada. Next stop: Ontario. 

FEDERATED CO-OPERATIVES LTD. 


# 13 $554 $554 0.0% 

With its focus on the farm and rural markets 

of the Prairie provinces, Federated 

Co-operatives has always worked closely 

with those communities. That community 

mindedness is reflected in activities such 

as FCL’s annual “In Full Colour” campaign, 

wherein it donates $400,000 worth 

of paint to various communities in the 

West. (Needless to say, the residents of Fort 

McMurray have benefited most recently.) At 

the store level, it has been busy upgrading 

its home centre outlets, bringing them up 

to state-of-the-art status. 


WSB TITAN 


# 14 $511 $500 -2.2% 

The triumvirate of some of the largest gypsum 

dealers in Canada is hell-bent on delivering 

drywall quickly and inexpensively. 

Heck, it even does the drywall deliveries 

for Home Depot in the Greater Toronto 

Area. It’s also mindful of growth: in 2015 it 

bought BC Ceiling, with four locations, and 

Slegg Lumber, which has a dozen outlets on 

Vancouver Island. 

UFA LIMITED 


# 15 $392 $408 4.1% 

UFA (née United Farmers of Alberta) has 

huge investments in farm, fuel, and fertilizer, 

but its retail operation, Farm and Ranch, 

has 36 stores on its own. In total, the co-op 

represents more than $1.3 billion in total 

revenues. The company has picked up a lot 

of new talent in recent years, including Carol 

Kitchen, who formerly ran a dairy co-op 

based in Minnesota, ex-Home Depot VP 

Glenn Bingley, and Mark DiGioacchino, formerly 

a merchandise manager at Home Depot 

Canada—and brother of ex-Home Depot 

and Walmart executive Gino DiGioacchino. 

UFA is a member of Sexton Group. 

PEAVEY INDUSTRIES 


# 16 $443 $377 -14.9% 

A solid, well-respected retail chain of farm 

and hardware stores (In 2015, it was named 

one of Canada’s 10 Most Admired Corporate 

Cultures), the Red Deer, Alta.-based company 

has been making news—and moves— 

since the original owners sold off five years 

ago, resulting in the placement of Doug 

Anderson into the president’s role. Most 

notably, it shot from the bottom of our Top 

FEATURE 

20 list to the number-16 position thanks to 

the acquisition of controlling interest in TSC 

Stores in July 2016. While rural customers 

remain Peavey’s driving focus, its product 

mix is broad and appeals to large-scale 

farming operations as well as smaller-scale 

hobby farmers. 

TORBSA 


# 17 $350 $371 6.0% 

TORBSA has traditionally been among the 

smallest of the buying groups, both in sales 

and store counts. With a focus on Ontario and 

sometimes Quebec, that size was historically 

part of the group’s identity and the resulting 

intimacy part of its appeal among members. 

In the past couple of years, however, TORBSA 

has been looking to grow. That includes 

expanding its geographic reach. In 2015 it 

signed its first dealer in British Columbia, 

and is considering other new members as the 

opportunity presents itself. 

FOUNDATION BUILDING MATERIALS 


# 18 $500 $350 -30.0% 

This company did not exist two years ago. 

Private equity money is now looking at the 

home improvement industry, especially 

dealers serving the U.S. housing market. 

California-based FBM’s acquisition of Allroc 

in 2016 was its first foray into Canada. While 

it has a network of almost 200 gypsum supply 

dealers throughout North America, just 

29 of them are in Canada, most under the 

Winroc banner. 

PATRICK MORIN 


# 19 $304 $293 -3.6% 

Another family-owned business, and again 

in Quebec. Patrick Morin is part of ILDC, 

with 21 stores catering mainly to DIY customers. 

Stores average about 45,000 to 

50,000 square feet in size, large enough to 

be one-stop shopping destinations while 

being small enough to avoid being as overwhelming 

as big boxes twice that size. 

Patrick Morin opened its latest store in May 

2017 in the province’s Laurentides region 

and has set its sights on further expansion 

throughout the province. In addition, it’s 

investing $25 million into a major expansion 

of its distribution centre in Saint-Paulde-Joliette. 

WINDSOR PLYWOOD 


# 20 $230 $225 -2.2% 

Privately held, this chain of building 

centres based in Langley, B.C., has been 

a solid presence in Western Canada since 

its inception in 1967. Like the name says, 

Windsor Plywood specializes in plywood, 

catering to both contractors and the 

do-it-yourself market. Besides plywood, 

the company specializes in finishing 

products such as hardwood flooring and 

doors, and mouldings. 

Top 20 Revenue 

BILLIONS 

$40 

$39 

$38 

$37 

$38.64 

$39.67 

2015 2016 

Y-O-Y 

INCREASE 

2.7% 

The increase in overall sales growth 

by the Top 20 reflects the intensified 

consolidation that occurred in 2016, 

with Lowe’s acquisition of RONA, 

Peavey’s takeover of TSC, 

and BMR’s entry into ILDC. 



www.hardlines.ca

SHOW PREVIEW 

BRICKS-AND-MORTAR GIANTS, E-COMMERCE 

EXPERTS, AND EVERYTHING IN BETWEEN 

W 

ith a theme of Bricks and Clicks, the 

22nd annual Hardlines Conference 

will address one of the biggest 

concerns for Canadian retailers today: 

e-commerce. 

Kicking off the conference on November 

14, Robert Howard of retail consultancy 

Kurt Salmon will provide an overview 

of the latest trends in the battle between 

online and bricks-and-mortar retail. 

22 ND ANNUAL HARDLINES CONFERENCE 

This year’s Hardlines Conference, taking place in Niagara Falls, Ont., from November 14 to 15, will focus on delivering 

insights into how independents and large retailers alike can survive and prosper amidst the rise of online selling. 

The 22nd annual Hardlines Conference, taking 

place in Niagara Falls, Ont., from November 14 

to 15, will address one of the biggest concerns 

for Canadian retailers today: e-commerce. 

REGIONAL AND GLOBAL 

PERSPECTIVES 

The conference will also feature some 

of the country’s most powerful regional 

retailers. Daniel Lampron is general manager 

of the giant Quebec home improvement 

chain Patrick Morin. He has been an 

instrumental part of the team guiding this 

family-owned business on a course of tremendous 

growth in recent years, proving 

that a healthy bricks-and-mortar presence 

remains crucial to a strong retail strategy. 

In addition, we’re pleased to announce 

that Doug Anderson, president of Peavey 

Industries, will join the conference as a keynote 

speaker. Anderson’s company made 

news last year for its investment in London, 

Ont.-based TSC Stores, which will make 

Peavey a farm and hardware powerhouse 

from British Columbia to Ontario. 

John Herbert, general secretary of EDRA, 

the European DIY Retail Association, will 

return to the Hardlines stage this year. 

Herbert will offer an analysis of the leading 

home improvement retailers globally that 

point the way for the future of this industry. 

CONCERNING RETAILERS 

To better understand how independent 

dealers are coping with the rise of online 

selling, Dan Tratensek, vice president 

of publishing at the North American 

Retail Hardware Association, will share 

the latest research from his association. 

Peter Norman, vice president and chief 

economist at Altus Group, is an industryrecognized 

urban economist and forecaster. 

He will bring his special take on housing 

and renovation trends to his presentation 

on the Canadian economy. 

How can bricks-and-mortar retailers 

use e-commerce to their own benefit? Emil 

Cermak of FedEx Canada will offer insights 

into the shifts in this industry and the retail 

landscape in general through the eyes of a 

carrier. And he’ll unravel the mystery of 

what happens with product in that last mile 

to the customer’s door. 

Closing out the conference will be 

Sylvain Prud’homme, president and CEO 

of Lowe’s Canada. Prud’homme piloted 

Lowe’s through its takeover of RONA and 

is currently working with his teams to build 

Lowe’s retail presence in multiple formats 

across the country. 

(For more information on speakers and conference 

registration, go to www.hardlinesconference.ca.) 



www.hardlines.ca

The eRetailer Summit is 

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HR & STAFFING 

FLE 

BY WOLF GUGLER 

PUTTING THE 

HUMAN 

IN RESOURCES 

Sales associates play a crucial role in your store’s success. But how do you find those motivated, knowledgeable, 

and helpful employees? And once you’ve identified them, how do you keep them on your payroll? 

H 

iring and retaining store-level staff 

can be just as perplexing as hiring a 

store manager. Many feel no matter 

how much homework you do, it’s still a 

gamble or calculated risk. Here are a few 

suggestions to help you hire smarter and 

retain the good performers. 

First, a few successful retailers known to 

us were good enough to offer some hiring 

tips they’ve used when looking for new 

staff members: 

• “We have a simple skills test that 

includes addition, subtraction, multiplication, 

and division. Also, we have a 

graphic of a ruler with arrows pointing 

to specific measurements. It’s true that 

95 percent of our applicants cannot read 

a ruler.” 

• “We have them figure out a five-percent 

discount on a box of 50 pieces at a certain 

price, and calculate sales tax at eight 

percent on the total. (We have computer 

registers, but they should understand the 

concept). Get creative, but be sure to test 

only what they will actually be required 

to do.” 

• “The last few years we have done well hiring 

the attitude and training the skill. We 

have also done well asking the staff for 

their recommendations. Once an associate 

told me, “you’re not going to offer her 

a job, are you? She tried to hire me to go 

over to Lowe’s.” 



www.hardlines.ca

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“ 

HR & STAFFING 

• “What we do is have the applicant fill out a 

basic application. In addition to that, there is 

a small math test I give that basically lets me 

know if they can calculate BASIC math— 

you would be surprised at how many college 

kids don’t know how many feet are in 

a yard. After the applications, I schedule 

interviews based on first impressions and 

what I see on their applications. Then I 

re-evaluate how the applicant is doing a 

couple of weeks after they start with us.” 

NARROW THE SEARCH, 

BUT KEEP AN OPEN MIND 

Although experience and knowledge is 

important, don’t overlook a good candidate 

from another retail segment. Many 

successful retailers find great employees 

over a meal in a restaurant with a topnotch 

server. U.S. hardware retailer Tractor 

Supply does well in hiring store people from 

the welding trade as they understand some 

of the issues hobby farmer customers face. 

AFTER YOU’VE FOUND 

THE RIGHT CANDIDATE 

In a recent online survey, over half of the 

retail respondents said that a lack of training 

led to their decision to leave their employer. 

That starts from the first day on the job— 

don’t shortcut the onboarding and learning 

process. Make sure they have the knowledge 

and tools to perform successfully and 

to delight your customers. Formal training 

is available through organizations such 

as the North American Retail Hardware 

Association. The cost of training versus 

turnover is minimal and far less disruptive 

to both you and your customers. 

Give participants a certificate of achievement; 

it costs virtually nothing to create 

one and print off enough copies to hand 

FLE 

We have a graphic of a ruler with arrows pointing 

to specific measurements. It’s true that 95 percent 

of our applicants cannot read a ruler. 

” 

out. People respond positively to recognition 

and it translates into loyalty. I recently 

saw an employee’s certificates of completion 

posted at the service desk where they worked. 

Empower your employees to make it right 

for your customer. That can even mean in the 

small cases, as well. For instance, in my local 

travel plaza, the cashiers can give customers 

a free coffee at their discretion. Employees 

love to feel as if they have some control. It 

makes them feel that they’re valued. 

Don’t forget to reward people when you 

catch them doing something well. It could 

be as simple as a “thanks”. Keep a few gift 

cards to local restaurants handy; an expression 

of thanks goes a long way toward how 

staff treat customers and interact with their 

fellow employees. If you don’t want to give 

a cash reward—and assuming you have 

enough staff on the floor—tell them to 

come in an hour late the next time they’re 

scheduled to work, as a reward. 

Integrate fun into your day-to-day tasks. 

You can even bring in a boom box to play 

upbeat songs first thing in the morning 

before opening, or as you’re closing the 

store. Get everyone moving and in a good 

mood! I’ve witnessed this in a local store; 

the employees all started their day smiling. 

As Joe Scarlett, retired chairman of Tractor 

Supply titled in his TSC success book: Work 

Hard, Have Fun, Make Money. 

Wolf Gugler is President of Wolf Gugler Executive 

Search, celebrating its 20th year in business as a 

leader in locating top talent for home improvement 

retailers and their suppliers throughout 

Canada, the U.S., and the Caribbean. 

He can be reached at 1-888-848-3006 or 

wolf@wolfgugler.com. For more information, or 

to read more articles about staff development and 

retention, visit his website: www.wolfgugler.com. 

REFERENCE 

CHECKS 

When you speak 

to a reference, here 

are a few questions 

you might ask: 

Have you seen them 

under a stressful situation 

with a customer? How do 

they deal with and 

handle it? 

Can you give me 

an example of a time they 

should brag about the 

customer service 

they provided? 

Don’t ask about 

weaknesses; no one likes to 

admit they have any. Instead, 

ask, “Is there something skill or 

knowledge-wise that we can 

help them improve?” 

Ask the reference if 

they know of someone else who 

knows your candidate and reach 

out to them; they should provide 

you with a completely unbiased 

opinion and commentary. 



www.hardlines.ca

WITH GREAT 

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RONA dealer since April 2011 

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RONA affiliates get the most for the least.” 

Discover a host of benefits that will help you grow your business in your 

community by contacting your Regional Operations Director, 

RONA Dealer Sales and Support: 

WESTERN CANADA 

Erin Harrison 

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ONTARIO & ATLANTIC 

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ERS OF THE HOME IMPROVEMENT INDUSTRY

SHOW REPORT 

NATIONAL HARDWARE SHOW 

NEW PRODUCTS AND INNOVATION ABOUND 

AT NATIONAL HARDWARE SHOW IN LAS VEGAS 

The range of new products being featured 

at this year’s National Hardware Show was 

nothing short of impressive. Innovation ranged 

from high-tech robotics to distinctly low-tech 

but eminently practical vintage stylings. 

T 

he National Hardware Show, which was held from 

May 9 to 11 in Las Vegas, long-ago established itself 

as the destination for vendors and retailers in the 

Canadian hardware industry. Buyers from such retail groups 

as Canadian Tire, Home Hardware, Groupe BMR, Federated 

Co-operatives, TIMBER MART, Spancan, and Home Depot 

Canada were down walking the show floor this year. 

And there was plenty for them to see, as new products 

and innovations were particularly in evidence this year. 

The show again featured a strong showing by Canadian 

vendors, including RCR, Nuvo Iron, Task Tools, EAB, 

CTM Hardware, and Richelieu Hardware, which was 

exhibiting for the first time in more than a decade. There 

was even a group stand sponsored by Export Québec. 

Due to the sheer size of the show, lawn and garden 

and outdoor living warrant their own separate halls. 

Export Québec brought down several 

Quebec delegates to showcase 

several of the province’s vendors. 

Max Lavoie, of BBQ Québec, was part of a group stand sponsored by Export Québec. He was 

showcasing his Barbecue Experts store-within-a-store concept for a range of barbecue 

accessories. BMR has already partnered with his company in almost 70 stores in Quebec. 



www.hardlines.ca

At the Norton/Saint-Gobain Abrasives booth, the emphasis was on results as 

much as products. This beautifully restored vintage Flyte Camp trailer shows 

how Norton grinding, cutting, and polishing tools could be used for detailed 

applications, even polishing and restoring the original stove inside the camper. 

Honeywell’s newest item in safety gear, the 

Sync Wireless Earmuff, is being marketed 

as a solution to having to wear two products 

or choose between headgear with hearing 

protection and MP3 or AM/FM radio capabilities. 

Worx featured the Landroid, a robot 

that cuts grass. It is designed to be 

operating all the time, trimming grass 

on a consistent, ongoing basis. It can 

manoeuvre around obstacles, it knows 

when to come in from the rain, and a 

sensor even leads it back to its charger 

when the battery gets low. 

Dan Roche, director of 

marketing-portable 

power and cleaning 

systems, for Briggs 

& Stratton shows off 

the company’s new 

QuietPower Series 

Invertor Generator, 

which is touted as 

more than 60 percent 

quieter, 30 percent 

lighter, and 45 percent 

more compact than 

standard portable 

generators. 

At the NRHA Village, the National Retail Hardware 

Association hosted a number of presentations and 

seminars for independent retailer attendees. This year’s 

Top Guns event took a different approach by having four 

“Young Guns” from across the U.S. and the industry talk 

about important topics such as succession and working 

with different generations. 


MERCHANDISING 

FLE 

BRICKS-AND-MORTAR STORES 

SHOULD RELY ON THEIR SOLID FOUNDATIONS 

Competing with e-commerce doesn’t have to be as hard as you think. Bricks-and-mortar retailers just need to focus 

on their strengths and the edge they have over the internet to continue to jockey for that all-important market share. 

BY ROB WILBRINK 

B 

ricks-and-mortar retailers facing 

the new realities of online selling 

are looking for ways to defend 

against eroding sales. Brand-name manufacturers 

are also under threat as a new 

breed of online competitors, often sourcing 

from the same offshore factories, are 

commoditizing their products. 

One of the best ways both sides of the 

industry are defending themselves is by 

increased emphasis on display. A welldisplayed 

product does several things. It 

makes the customer aware of its availability 

for purchase and makes it much easier to 

evaluate whether that product meets their 

needs for style, quality, colour, size, and 

price point. This is much more difficult 

to do online, which is one reason returns 

average about 15 percent of sales for online 

purchases—about two and a half times as 

high as in-store purchases. 

DISPLAYS ARE CRUCIAL 

A well-organized display can lead the buyer 

through a selling process that helps them 

make the right selection. Viewing, touching, 

and feeling the product is a much better 

way to evaluate it than just seeing words and 

pictures on a screen. 

Proper displays absolutely reduce shrink 

and write downs. Customers don’t like to 

buy ripped boxes, yet feel compelled to tear 

open products that aren’t on display to do 

their evaluations and inspections. Without 

displays, unsellable product multiplies, 

wastes valuable shelf space, and fuels customer 

frustration. 

Having the product in the store in the first 

place is a key part of driving sales for most 

products. The box stores taught us this. 

A high-volume building centre I was 

responsible for in the late ’90s was looking 

for space to add product lines. We 

decided to test moving all of our mouldings 

out of the store into the warehouse 

to free up space. We convinced ourselves 

that after 20 years the neighbourhood we 

served was well aware we sold mouldings, 

so we no longer needed to show them. Sales 

instantly dropped 30 percent in this core 

part of our business—despite huge signs 

directing customers to our warehouse to 

purchase mouldings. After six months, we 

aborted the test and moved mouldings back 

in to the store. Sales instantly returned to 

normal levels. 

SHOW ALL THE CHOICES 

At BMF, a retailer client of ours had been 

selling composite decking for several years 

to customers who asked for it. It was mostly 

special order, though the dealer stocked a 

limited quantity of one colour in his warehouse. 

We installed a simple but attractive 

display of the product showing available 

colours on one of his LBM end frames and 

his category sales increased by 50 percent. 

Viewing, touching, and feeling is a much 

better way to evaluate a product than just 

seeing words and pictures on a screen. 

A common problem for building centres 

is the preponderance of sample boards supplied 

by vendors and pasted to the walls like 

postage stamps. They come in all shapes 

and sizes and are often out of date or obsolete. 

Vendors change, disappear, or update 

their product lines, but no one thinks to get 

rid of the old displays. 

But some retailers are fighting back creating 

their own selection centres to help consumers 

wade through available options and 

adopting a uniform format that they control 

and ask vendors to follow. This organizes the 

category for the customer. It provides the 

information needed to make a decision, 

shows the available choices (often a wide 

range), and allows the customer to touch and 

feel—something the internet can’t do. 

Rob Wilbrink is the president and CEO 

of Burlington Merchandising and Fixtures 

(BMF). BMF provides a full range of services 

for independent dealers, including category 

strategy development, store layout and design, 

assortment planning, project management, 

design, supply, and installation of store fixturing 

and signage, carpentry, and merchandising. 



www.hardlines.ca

WE’RE STRONGER 

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No matter who you are, you are one of us. 

NRHA brings together 35,000 independent home 

improvement retailers in the United States and Canada. 

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Educate yourself and your staff. NRHA has everything you need to provide 

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Invest in your team, your business and your future. 

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REGIONAL SPOTLIGHT 

FLE 

COMMON GROUND FROM 

THE ROCKIES TO THE PRAIRIES 

BY SIGRID FORBERG 

Each province that comprises Canada’s West has its own distinct geography, resources, and unique needs. 

But one thing retailers across British Columbia, Alberta, Saskatchewan, and Manitoba share is the passion 

and drive to uncover their customers’ specific needs and do their best to meet them. 

J 

osh Beusekom owns the TRU 

Hardware in Fort Macleod, Alta. 

It’s an old town; the community 

of about 3,500 was founded as the North- 

West Mounted Police’s (now the RCMP) 

first settlement. In the foothills of the 

Rocky Mountains, it’s a picturesque community 

with a bustling hub of culture—it’s 

home to multiple pottery clubs as well as 

a local theatre—and there’s no shortage 

of activities to keep people busy. But it 

maintains a small-town feel, with a focus 

on supporting local businesses. 

Beusekom was 21 years old when he 

opened the store with his brother and 

father. New to the industry, he threw himself 

into understanding both the business 

and customer service sides of his new venture. 

And it helps that Fort Macleod’s business 

community is very supportive. 

“When our customers come in looking 

for something we don’t have, we send them 

down the street to our competitors,” says 

Beusekom. “It might seem counterintuitive 

to some retailers, but I think as a smallbusiness 

owner, we have a responsibility to 

see money be spent in town.” 

On the other side of the Prairies is Joel 

Hartung, co-owner of The LumberZone, a 

three-store chain in Manitoba. Hartung also 

recently joined the industry, after having left 

the automotive industry and working with 

two partners to open a store in Steinbach in 

2013. Since then, they’ve also acquired two 

other stores in southeast Manitoba. 

Like Beusekom, Hartung has invested 

a lot of energy in engaging the tight-knit 

community of Steinbach, and is now doing 

the same in LumberZone’s new Stonewall 

and Transcona locations. According to 

Hartung, his shoppers are a mix of ultracontemporary 

and old-fashioned sensibilities. 

With an appreciation of that, he’s able 

to cater to a wide array of needs. 

“I think understanding who your customer 

is helps you deal with them,” says 

Hartung. “What the customer wants, we 

will sell them.” 

FOCUSING ON THEIR STRENGTHS 

While the recession has been especially difficult 

for Alberta, Saskatchewan has been 

impacted as well. Mark Westrum, owner 

of Westrum Lumber, with four locations in 

Saskatchewan, says the decreased value of 

the province’s natural resources has resulted 

in a consumer reluctance to spend on things 

that have been deemed non-essential. 

“People are holding onto their money. 

They’re making sure that they’re not spending 

frivolously,” says Westrum. But that 

doesn’t mean he expects them to close their 

wallets completely. “I don’t think it’s going 

to be as much new build, but there will be 

a lot of renovations.” 

With increasing competition for every 

dollar, the best strategy these retailers 

have is to focus inward, rather than on the 

Josh Beusekom owns the TRU Hardware 

in Fort Macleod, Alta. 

competition. Lethbridge, which is about 

30 minutes away from Fort Macleod, is 

Beusekom’s biggest competition. But with 

a focus on customer service and having 

fun, he’s made the store just as much a 

destination for his loyal clientele. “I have 

a customer who’s about half-way between 

here and Lethbridge, and when they need 

something, they’ll come in to our store first 

to see if we have it,” he says. 

The same goes for Hartung. He says his 

young, passionate team is excited to help 

customers with their projects, whatever the 

size or significance of the job—and that 

earns a certain loyalty from their clientele. 

“I think people buy from us because we 

are a smaller operation with hands-on guys 

and management,” says Hartung. “No job is 

too unimportant for any of us to do.” 

DIVERSE CHALLENGES 

Of the four provinces in the West, British 

Columbia is much more its own entity. The 

coastal province boasts plentiful resources— 

both agriculture- and tourism-related—that 



www.hardlines.ca

Hipperson Home Hardware and Nelson 

Home Hardware Building Centre in 

Nelson, B.C. 

are very different from its neighbours, and as 

such B.C. hasn’t been as negatively impacted 

as the Prairie provinces lately. 

“Last year was our best year ever and the 

year before that was probably our second 

best, so things are going fine,” says Randy 

Horswill, owner of Hipperson Home 

Hardware and Nelson Home Hardware 

Building Centre in Nelson, B.C. 

Horswill is the fourth generation to be 

involved in the family business. Nelson 

faces the challenge of being built at the 

bottom and up the side of a mountain. 

Horswill describes it as a bit of a blessing 

as well as a curse. “There’s no flat land for 

Mark Westrum, owner of Westrum Lumber, 

with four locations in Saskatchewan. 

people to build their houses on so they have 

to be pretty creative,” says Horswill. “It’s 

hard for our store too because we don’t have 

enough land—our building supplies yard is 

too small. But it’s the geography that keeps 

Nelson pretty unique.” 

One challenge the store faces that’s also 

specific to the geography is delivering building 

materials. “They can be an adventure,” 

says Horswill. “Sometimes these houses are 

literally down a bank from the road and 

it’s very challenging. But people want to be 

here, so they make it happen.” 

A UNIQUE COMMUNITY 

While Westrum and Horswill were born into 

the industry, Hartung and Beusekom both 

came to it on their own. It can be a steep learning 

curve, but Beusekom says his community 

makes it easy. While he was young when the 

store opened, he’s not the only young business 

owner in the area. On the main strip of Fort 

Macleod where his store is located, there are 

a number of other businesses, ranging from 

bakeries to clothing boutiques, owned and 

operated by young retailers. And they are collectively 

very community-oriented. 

The business owners lean on each other 

for advice and help, remembering that in a 

small town, the adage that a rising tide lifts 

all boats rings true. 

For Hartung, whose first job after college 

was at a building supply centre, what drew 

him to the industry was more than just an 

interest in the products he was selling; it 

was the rapport he built with customers and 

co-workers alike and the opportunities the 

industry offers. 

“This is an industry that rewards hard 

work and experience,” says Hartung. “There 

aren’t many industries where you can start 

as a minimum-wage warehouse clerk and 

eventually work your way up to a business 

owner of three stores, but it happened, and 

I’m very thankful for all the people in the 

industry who have taught me so much.” 

FUTURE OFFERS 

OPPORTUNITIES, GROWTH 

Looking ahead, all four retailers are optimistic 

for the rest of 2017. While times may 

have been a little tougher in some areas, 

they also recognize that the market is cyclical. 

Especially when a province is dependent 

on natural resources, the harder times 

help retailers make the most of and appreciate 

the good times. And they recognize that 

neither period lasts forever. 

“We’re optimistic,” says Westrum. “It’s not 

like everybody’s stopped using oil or stopped 

using potash; it’s just a correction in the market. 

It happens every once in a while. And 

nobody’s going hungry, but of course we all 

want to make our share of the profit.” 

While economic conditions in Alberta 

have been weak over the past few years, the 

province is projected to lead the country 

in economic growth for 2017. According to 

the Conference Board of Canada, jobs are 

returning and there’s an increase in consumer 

demand in the housing sector. 

And through the ups and downs, home 

improvement retailers have maintained 

their focus on what’s important: getting 

the job done, helping customers, and satisfying 

everyone involved in the process. 

“We will whistle while we work, market 

our company in our unique and passionate 

way, and press forward while we are young 

and full of energy,” says Hartung. 


SELLING TO PROS 

FLE 

GROWING 

BY JOHN CAULFIELD 

THE GREEN SECTION 

OF YOUR SALES 

For many homeowners, “green” equals 

“safer”. But contractors still resist 

choosing green products on their own. 

O 

ver the past 20 years, products 

that claim to be less harmful to 

the environment have entered the 

mainstream, as energy efficiency, sustainability, 

and more recently, resiliency and 

wellness have worked their way into the 

vernacular and codes for residential and 

commercial construction practices. 

Spending for green residential construction 

in the United States is forecast to hit 

US$100.4 billion in 2018, from US$55 billion 

in 2015, according to a recent survey 

that Booz Allen Hamilton prepared for the 

U.S. Green Building Council. 

That survey also projects that spending 

for green residential maintenance and 

repair would reach US$40.2 billion in 2018, 

compared to US$22 billion in 2015. The 2018 

figure would represent nearly 18 percent of 

all green maintenance and repair spending. 

In Canada, as in the U.S., consumers 

drive demand for green products. “People 

are concerned about any chemicals coming 

into their homes, and are looking for alternatives,” 

says Wendy McKinley, a customer 

salesperson for Frasers Pro Home Centre in 

Berwick, N.S. 

A growing number of homeowners are 

also taking control over their energy and 

water consumption costs. 

However, Canadian home improvement 

dealers say many of their pro customers still 

resist choosing eco-friendly products unless 

their clients specify them. 

“Demand is slight among pros,” says 

Brad Butt, purchasing manager for Stan 

Dawe Ltd., in Corner Brook, Nfld. “We’re 

a little behind the rest of the country when 

it comes to building codes. So green building 

products are a very small part of our 

inventory.” 

Moffatt & Powell in London, Ont., which 

gets 95 percent of its sales from contractors, 

also doesn’t stock many green products. 

“There’s practically no demand,” says 

merchandiser Kevin Brownlee. 

Consumer-oriented retailers, on the 

other hand, have found green products to 

be a reliable niche. Last November, Lowe’s 

Canada conducted an online survey of 

13,000 customers and employees, and 



www.hardlines.ca

found that consumers were more likely than 

pros to request green products. In 2016, 

green products accounted for 11 percent 

of sales for Lowe’s Canada’s RONA- and 

Réno-Dépôt-bannered stores, according to 

Jules Foisy Lapointe, director of sustainable 

development. 

With a few exceptions like Frasers, independent 

pro dealers seem to have ceded 

the green products market to their larger, 

national competitors, most of which have 

had some form of “eco” labeling for years. 

Home Hardware Stores’ EarthCare label 

has been around since 1991, and is currently 

attached to 872 products, according 

to a company spokesperson, who adds that 

Home’s eco-friendly Natura brand is one of 

its fastest-growing paint products. 

Home Depot Canada’s Eco Options program 

dates back to 2004, and during the 

ensuing years customer expectations— 

about products and the retailers that sell 

them—have changed. 

“We have seen a significant transformation 

in the market to be more sustainable on 

not only products but also how businesses 

operate, whether through improvements 

in supply-chain efficiencies, reduction of 

energy consumption by investing in solar 

power, or implementation of sustainable 

packaging design,” says Paul Berto, Home 

Depot Canada’s director of corporate 

communications, external affairs, and 

sustainability. 

SAVVY CUSTOMERS REQUIRE 

PRODUCT KNOWLEDGE 

Eco labeling is important to the sale of green 

products, says Lapointe, because it helps to 

simplify customers’ choices. “The benefits 

of some green products, like low-VOC 

paint or longer-life light bulbs, are easier 

for customers to understand,” Lapointe 

explains. “But the benefits of other products 

can be complicated and confusing. A lot 

of customers still don’t know what ‘chain 

of custody’ is, or what the certification of 

forests and mills actually means.” 

A label, he says, tells customers that the 

retailer is accountable for a product’s green 

claims. And products tagged “eco responsible” 

in RONA’s stores might provide more 

information. 

Dealers agree that selling green products 

requires their associates to convey a 

higher level of product knowledge, because 

eco-conscious consumers ask a lot of questions. 

“It’s never a simple discussion; I’ve 

had 30-minute conversations over a can 

of paint,” says Joel Hirshberg, president 

and co-owner of Green Building Supply in 

Fairfield, Iowa, a 25-year-old company that 

claims to be the first green building products 

specialty retailer in the U.S. 

Hirshberg says that what most consumers 

want from green products is safety. “It’s all 

about health; they couldn’t care less about 

LEED points.” 

McKinley at Frasers agrees that more consumers 

are “doing their homework” before 

coming into the store for green products. “So 

your salespeople need to be on their game”, 

which means stores need to step up their 

efforts, too, with better PK training. 

To that end, RONA is updating videos it 

has used since 2009 to train its employees 

on selling green products. 

Frasers separates some green products 

from the rest of its inventory. McKinley 

notes, too, that code changes over the years 

are causing dealers to feature greener products 

in their lighting and plumbing departments. 

Frasers recently switched to Knauf 

as its insulation supplier, which refers to its 

“eco batts” that take into account Knauf’s 

production practices. 

Frasers also calls out green products 

in its advertising. “When you push ‘eco’, 

you’re hitting a whole different market,” 

says McKinley. 

In 2015, customers told Home Depot 

Canada they wanted more LED lighting. 

So the chain expanded its assortment of 

Energy Star-certified LEDs by more than 

50 percent, and added several value-pack 

sizes from Philips, Cree, and Ecosmart. 

Now, “our Energy Star LED light bulb section 

is extensive and growing,” says Berto. 

Depot also identifies eco-friendly products 

in its appliance, window, door, and HVAC 

departments, and features Energy Starcertified 

products in its weekly flyers. 

TESTING WHICH CLAIMS 

ARE BELIEVABLE 

As green products have proliferated, so 

has “greenwashing”, where manufacturers 

make unsubstantiated or exaggerated 

claims about their products’ benefits. “You 

have to be aware of production at all of the 

steps,” says McKinley, whose company 

primarily relies on suppliers to verify their 

claims. 

Home Depot Canada’s defense against 

greenwashing, says Berto, is to “leverage” 

recognizable and reputable certifications 

like Energy Star, WaterSense, EcoLogo, 

the Forest Stewardship Council, Organic 

Materials Research Institute, and Design 

for Environment. 

RONA recognizes more than 100 green 

certifications in different product categories, 

but also has its team work with thirdparty 

verifiers to make sure products sold 

as green actually perform as claimed. 

Hirshberg, though, doesn’t trust any certification 

programs because, he says, “they’re 

all pay-as-you-go propositions.” His family 

independently analyzes every product it sells, 

many of them on his own house. “It’s a longer 

process, not something you can do overnight, 

but half of the products we test fail.” 

Green Building Supply, which operates a 

10,000-square-foot store, generates between 

$3 million and $5 million in annual sales, 

about 85 percent of which are online. 

Hirshberg says his site has “thousands” of 

customers across the U.S. And he hasn’t 

given up on selling to pros, either. 

“You have to educate them, hold their 

hands, and work with them on price. And 

it’s important to have the product available 

when they want it,” especially when it 

comes to paint and finishes, he adds. 


STORE MANAGEMENT 

FLE 

BY BILL WILSON, RETAIL ADVISOR, NRHA CANADA 

RETAIL SHRINKAGE: 

WHAT IS IT COSTING 

Loss prevention at many hardware 

and building supply dealers is 

not always top of mind or 

communicated regularly 

to employees, which can 

lead to retail shrinkage 

that will significantly 

affect your bottom line. 

YOU? 

H 

ow big of a problem is shoplifting? 

The 2016 National Retail Security 

Survey, conducted by the National 

Retail Federation, quotes that shrinkage 

(including shoplifting, employee theft, 

and breakage) costs retailers about 1.38 

percent of total sales. And for the second 

year in a row, shoplifting “has surpassed 

employee theft as the greatest cause of 

inventory shrink.” 

WHAT ARE THE SIGNS OF 

SHRINKAGE PROBLEMS? 

Have you seen margin shrinkage and aren’t 

aware of the reason as your sales mix hasn’t 

changed substantially? Do you have empty 

packages left on counters or excessive nosales 

or voids? It’s time to communicate 

your concerns about shrinkage problems to 

your management team and find out what 

they know or have observed. 



www.hardlines.ca

WHAT SHOULD BE REVIEWED 

FOR BETTER CONTROL? 

• Employee theft rates—it could be more 

of a problem than you think 

• Shoplifting—look for the tell-tale signs 

• Merchandise on display at storefront—is 

it chained so that it doesn’t “walk away”? 

(e.g. power equipment, wheelbarrows, 

gas barbecues) 

• Inventory errors—is your hole count 

greater than your POS out of stocks? 

• Vendor errors on inventory receiving— 

do you count the product and match to 

receiver? 

• Damaged product—do you have a process 

for handling this product? It could be 

going in the garbage or staff could be taking 

it home to sell to flea market vendors 

• Return goods—what is in-store signoff 

procedure? What is your process on 

handling back to inventory or vendor? 

• Gift card or credit card fraud 

• Data security—nearly one in three retailers 

has already suffered revenue losses 

because of a cyberattack 

• Truck delivery controls 

INTERNAL THEFT PREVENTION 

I was invited to attend a major retail managers’ 

conference and the president spoke 

about shrinkage. While locked cabinets for 

inventory helped cut back on shoplifting, 

employee theft accounted for much more 

than they were saving. 

Basic signs to watch for would be concealed 

merchandise leaving the premises (potentially 

in trash removal), in storage areas, vehicles, 

or backpacks. When leaving, have all employees 

exit through the front door, and either 

you or a designated manager should be by 

the door, with a friendly comment, to watch 

backpacks for unusual signs of merchandise. 

All exit doors should be closed and alarmed. 

Check the trash for boxes or trash bags for 

inventory. Having staff lockers for personal 

belongings helps to eliminate staff losses 

from purses and backpacks and makes it 

more difficult to hide product. 

Other areas of losses can be cash drawer 

theft through fraudulent discounts and 

return goods that are not received. Cash 

missing through theft or sales voids the 

use of exception reports and surprise cash 

audits can help with this. To combat this 

problem, it’s a must to have detailed procedures 

for the handling of return goods, 

with sign off from supervisor. 

I remember being in a store when a customer 

brought back a specialty paint product 

with no receipt, when it was checked, stock 

showed the store only carried two units and 

since one was already on the shelf with no 

sales shown, the product was probably stolen. 

EXTERNAL THEFT PREVENTION 

In many cases, the losses are coming from 

retail crime rings, whether in organized 

groups or simply amateurs. The NRSS found 

that the average loss per shoplifting incident 

was $377, a nearly $60 increase from 2014. 

“ 

The best measure you can take to prevent 

shoplifting is simply providing good customer 

service: be sure to greet customers 

when they come into your store. A simple, 

“Hello, how may we help you today?” is a 

great way to greet customers. It also sends a 

message to potential shoplifters that you’re 

paying attention. 

Walk your store looking for weak spots 

vulnerable to shoplifting. Are there blind 

spots that you can’t see from main aisles? 

Narrow aisles tend to have less traffic, 

making it easier for pocketing product or 

switching product tags. With slow sales 

growth, stores have cut back on associates 

and with fewer eyes watching, shoplifting 

increases. Closed circuit TV cameras and 

convex mirrors help to better monitor 

the store where it’s hard to see employees, 

customers, or shoplifters busy at work. 

RECOGNIZING THE SIGNS 

• Shoplifters will often wear bulky clothes 

and coats to hide items 

• They’ll also often be looking around to 

spot store personnel and cameras 

• They constantly handle product and pick 

at price tags 

• Keep an eye out for price tickets or 

bar codes that look like they’ve been 

switched. Does product description 

match the product? 

• And check the bottom of carts 

There are many more signs to look for; 

good employee training can save you a lot 

of money, and guide you in the proper procedures 

for confronting the suspect. 

NRHA has a great Loss Prevention 

Program that includes three separate 

The best measure you can take to prevent shoplifting 

is simply providing good customer service: be sure to 

greet customers when they come into your store. 

” 

modules covering internal theft prevention, 

external theft prevention, and store safety. 

This training program is designed to help 

retail home improvement stores develop 

a safe and secure retail environment for 

both employees and customers. It includes 

complete testing and record-keeping. For 

more information, check our website at 

www.nrha.org. 

Bill Wilson is Retail Advisor 

for the North American Retail 

Hardware Association Canada. 

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: THIRD QUARTER / 2017 

3M 

www.3mcanada.ca 

25 

Orgill Canada 

www.orgill.ca 

51 

Ace Canada 

www.ace-canada.com 

11 

Polar Bear Products 

www.PolarBearProducts.com 

Centre pull-out 

auto-stak Systems, Inc. 

www.autostak.com 

29 

Richelieu Inc. 

www.richelieu.com 

4 

BMR 

www.bmr.co 

2 

RONA 

www.rona.ca 

35 

Festool 

www.festoolcanada.com 

21 

Sexton Group 

www.sextongroup.com 

17 

Hardlines Outstanding Retailer Awards 

www.oras.ca 

49 

Spruce Computer Systems 

www.ecispruce.com 

33 

Hardlines Conference 

www.hardlinesconference.ca 

36, 37 

Techniseal 

www.techniseal.com 

6 

Home Improvement eRetailer Summit 

www.eretailersummit.com 

31 

TORBSA 

www.torbsa.com 

3 

NRHA Canada 

www.nrha.org 

41 

Taiga Building Products 

taigabuilding.com 

52 

IN THE 

NEXT 

ISSUE 

OF HHIQ: 

Exploring the category 

of maintenance, 

repairs, and operations 

PLUS: Industry leaders’ forecasts for 2018; 

Regional spotlight on the Atlantic; Selling 

safety to pros; Merchandising update. 


Publication Date: October 10, 2017 • Ad Reservations: August 31, 2017 (contact bev@hardlines.ca) • Ad Material Due: September 13, 2017 



www.hardlines.ca

Come to support 

the winners, 

leave inspired 

by their stories. 

THE 2017 OUTSTANDING 

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ENDCAP 

FLE 

A CLIENTELE FROM FARM TO TABLE, 

AND STORES FROM WEST TO EAST 

BY GEOFFREY McLARNEY 

Red Deer, Alta.-based Peavey Mart made the news last summer when it announced that it was acquiring a 

controlling interest in southern Ontario-based TSC Stores. Peavey’s president and CEO spoke with HHIQ about 

the company’s plans to harmonize and grow the two businesses in the rapidly urbanizing Canadian market. 

D 

oug Anderson, president and CEO 

of Peavey Industries, isn’t too concerned 

about the increasing urbanization 

of his market. While rural customers 

remain Peavey’s driving focus, the appeal 

of its product mix is broader. Customers 

include not only owners of multi-acre agricultural 

operations, but smaller-scale hobby 

farmers and DIY foodies. “A lot of our products 

are relevant not only to rural people,” 

he explains, citing seasonal, work wear, 

and automotive categories as especially 

popular both within Peavey’s primary base 

and beyond. Still, the company knows its 

customers and Anderson’s commitment is 

unequivocal: “Our overall focus will always 

be to tailor our product mix to the needs of 

the rural consumer.” 

At the same time, even as Canada’s 

population becomes more and more concentrated 

in urban areas, in many ways 

they’re taking the country there with them. 

Anderson notes that some of the more 

conventionally rural items are gaining in 

popularity in cities and suburbs. Notably, 

while Peavey Mart customers have been 

able to order bees and chicks for decades, 

Anderson describes a rise in “urban interest 

in what would traditionally be considered a 

rural application” as more municipalities 

make provisions for backyard beekeeping 

and chicken-raising. 

“People want to take control of their food 

chain,” Anderson explains. The relaxation 

in recent years of by-laws in cities from 

Montreal to Edmonton encourages the 

already budding interest in urban homesteading 

and local food. And as Anderson 

puts it: “Where else are you going to go but 

“A lot of our products are relevant 

not only to rural people,” explains 

Doug Anderson, president and 

CEO of Peavey Industries. 

a farm store?” It helps that for lots of Peavey 

staff the work is personal. “We have many 

staff who have backyard chickens—and 

bees as well—as part of our overall lifestyle.” 

GROWTH, WITH INTENTION 

In taking on TSC, Peavey can tap into a similar 

rural base in Canada’s most populous 

province. But the company is prizing quality 

over quantity, and the stores’ locations 

are naturally not in the biggest population 

centres. Anderson doesn’t rule out further 

regional expansion in the long term but the 

company is determined to smartly navigate 

its current growth first. “Right now our 

focus is really on alignment between the 

two businesses, but we definitely have the 

intention of continuing to grow,” he said, 

pointing to expansion in B.C. as one of 

Peavey’s more pressing priorities. 

With TSC, Peavey has landed its third 

banner. In 2012, the company opened 

the first of its smaller-format MainStreet 

Hardware stores, in Blackfalds, Alta. Where 

the addition of TSC has Peavey serving a 

similar customer profile in a new region, 

MainStreet inverts the product mix at the 

three Alberta locations open to date. Here, 

the general merchandise lines that complement 

Peavey’s core agricultural segments 

are the main attraction, rounded out with a 

selection from the broader range of Peavey 

inventory. 

“For the most part, it’s a smaller footprint” 

at these proximity stores, Anderson 

says, though he added that some of the 

smaller Peavey Marts are comparable in 

size. As with the other banners, the strategy 

is to plan for slow and steady growth. 

Anderson says the company is “taking a 

cautious approach overall” but the retail 

concept’s first stores have been a success. 

“We’re continuing to add locations as we 

find the opportunity.” 



www.hardlines.ca

A Strong Partner 

Orgill helps us with multiple facets of our business! 

“Orgill invited us to a Dealer Market so we could see what they had to offer. It didn’t take 

me more than two seconds at that Market to know this was who I wanted to buy from.” 

Travis Nanninga | BV Home Centre | Two locations in British Columbia | An Orgill Customer Since 2009 

Online Know-How 

“Technology is a challenge for everyone. Orgill has the skills 

and knowledge we need. We put the online catalog on our 

website and had our first online sale less than a week later.” 

Advertising Experts 

“I run a monthly special and promote it with fliers from 

Orgill’s advertising program. It’s so easy, and it puts us 

miles ahead of where we were before.” 

Plenty to See at Dealer Markets 

“Between the new products and the model stores at the 

Markets, there is so much for us to see. We like to take our 

time so we don’t miss anything.” 

Large Product Selection 

“Because Orgill has such a wide variety of products available 

to us, it helps us stay one step ahead of everything our 

customers need.” 

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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