HHIQ_3Q_17_Complete
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and a full-line lumber wholesaler. Under<br />
the aegis of President Bernie Owens, the<br />
group has methodically and determinedly<br />
returned to its collective purchasing roots.<br />
Owens has refocused the group as a buying<br />
powerhouse negotiating purchases on<br />
behalf of its approximately 700 members<br />
across the country. Those members include<br />
a network of gypsum supply dealers that<br />
generates the largest volume of drywall<br />
sales of any group in the country.<br />
CASTLE BUILDING<br />
CENTRES GROUP<br />
RANK 2015 2016 change<br />
# 7 $1,875 $1,950 4.0%<br />
Castle has been growing its ranks aggressively<br />
in recent years. That includes going further<br />
afield than some other groups, embracing upand-coming<br />
dealers in traditional building<br />
centre formats as well as a growing number<br />
of specialty outlets such as door and window<br />
dealers. The group has been especially successful<br />
in recruiting strong dealers in Quebec,<br />
and in adding new members in smaller communities<br />
in Newfoundland and Labrador.<br />
Nevertheless, Castle’s growth continues to<br />
come from its core business areas of lumber<br />
and plywood, roofing, gypsum, insulation,<br />
siding, and millwork—and from a fierce commitment<br />
to independents.<br />
SEXTON GROUP<br />
RANK 2015 2016 change<br />
# 8 $1,885 $1,800 -4.5%<br />
Formed in 1985 by Ken Sexton, owner of a<br />
(then) small chain of gypsum supply outlets,<br />
this privately owned buying group now<br />
has 370-plus members. While still centred<br />
mainly in Western Canada, it has dealers<br />
in every province and territory. A number<br />
of pre-fab home builders on the Prairies<br />
have become members of Sexton, while its<br />
growth overall continues across the country<br />
and includes a range of store types.<br />
GROUPE BMR<br />
RANK 2015 2016 change<br />
# 9 $1,200 $1,200 0.0%<br />
Since being acquired outright by La Coop<br />
fédérée in 2015, BMR has been focusing on<br />
growth markets mainly in Quebec, including<br />
the closure of its Ottawa-area corporate<br />
store, Builder’s Warehouse, the same year.<br />
Committed to being the largest domestically<br />
owned player in its home province,<br />
BMR is investing in its stores more than<br />
ever. It has refined the strategies for its two<br />
brands, BMR and Unimat, a process that<br />
includes revamped branding, fine-tuned<br />
marketing, and, most recently, efforts to<br />
beef up its e-commerce strategy.<br />
KENT BUILDING SUPPLIES<br />
RANK 2015 2016 change<br />
# 10 $769 $784 2.0%<br />
As part of the J.D. Irving group of businesses,<br />
Kent has deep roots in its home<br />
province of New Brunswick. Those roots<br />
have helped it grow the business aggressively<br />
through a combination of greenfields<br />
expansion and acquisitions of local competitors.<br />
Mastermind of much of that growth<br />
has been Stew Valcour, who stepped back<br />
(somewhat) from his role as general manager<br />
in 2015 and turned day-to-day management<br />
of the company over to current<br />
GM Michael Simms. Last year, in what was<br />
considered the worst-kept secret in Atlantic<br />
Canada, Kent purchased fellow ILDC member<br />
Central Home Improvement, doubling<br />
its presence in the Nova Scotia market.<br />
DELROC INDUSTRIES<br />
RANK 2015 2016 change<br />
# 11 $750 $713 -4.9%<br />
This British Columbia-based buying<br />
group has most of its member dealers in<br />
the West, making it especially vulnerable<br />
to the downturn of the oil industry there.<br />
However, General Manager Dave Boyce says<br />
that slowdown bottomed out last year, and<br />
the group, with its focus on contractor-oriented<br />
yards, has been adding members in<br />
Eastern Canada. With almost 140 members,<br />
Delroc is no lightweight, but it’s nevertheless<br />
not a familiar name in the East. But that<br />
is proving to be a positive for the company:<br />
in increasingly crowded markets, Delroc<br />
offers an alternative to better-known<br />
brands that may have little or no room for<br />
new members. One to watch.<br />
CANAC<br />
RANK 2015 2016 change<br />
# 12 $540 $580 7.4%<br />
This chain of building centres is only in<br />
Quebec, but it’s likely one of the largest family-owned<br />
businesses in the entire country.<br />
It’s also a fierce retail competitor, expanding<br />
into markets outside of its home turf in the<br />
Quebec City area—currently at the rate of<br />
about two per year—and offering aggressive<br />
pricing. While this company may have<br />
made enemies along the way, it represents the<br />
entrepreneurial spirit that built this industry<br />
in Canada. Next stop: Ontario.<br />
FEDERATED CO-OPERATIVES LTD.<br />
RANK 2015 2016 change<br />
# 13 $554 $554 0.0%<br />
With its focus on the farm and rural markets<br />
of the Prairie provinces, Federated<br />
Co-operatives has always worked closely<br />
with those communities. That community<br />
mindedness is reflected in activities such<br />
as FCL’s annual “In Full Colour” campaign,<br />
wherein it donates $400,000 worth<br />
of paint to various communities in the<br />
West. (Needless to say, the residents of Fort<br />
McMurray have benefited most recently.) At<br />
the store level, it has been busy upgrading<br />
its home centre outlets, bringing them up<br />
to state-of-the-art status.<br />
www.hardlines.ca Hardlines Home Improvement Quarterly THIRD QUARTER / 20<strong>17</strong> 27