HHIQ_3Q_17_Complete

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%
www.hardlines.ca Hardlines Home Improvement Quarterly THIRD QUARTER / 2017 23