HHIQ_3Q

Top 20
Canada , s
FEATURE
TOP 20 VS. THE OVERALL MARKET
13.2%
Rest of the
industry
86.8%
Top 20 Retail
Groups
2017
Top 20 Retail Groups $41,883
Rest of the Industry $6,350
Total Industry $48,233
Market Share of Top 20 86.8%
• The Top 20 retail groups managed
to increase their overall share of the
Canadian home improvement market by a
small margin, from 86.4 percent in 2016.
RANKING OF THE BUYING GROUPS BY SALES ($MILLIONS)
Buying Group 2017
Home Hardware Stores* $4,307
ILDC** $3,928
TIMBER MART $2,935
Castle $2,073
Sexton Group $2,070
Groupe BMR $1,240
Delroc Industries $743
TORBSA $408
Rest of the Industry $31,769
* Home Hardware’s home centre and building centre dealers only.
** ILDC’s sales here include BMR, which is also a member of ILDC.
• Home Hardware is not strictly a buying
group, but in fact a dealer-owned cooperative.
However, its stores that sell
building materials (Home Hardware
Building Centres and Home Building
Centres) act as a buying group to
negotiate those purchases. Therefore,
the company is included here.
• Among what we recognize as traditional
LBM buying groups, ILDC ranks as number
one, with TIMBER MART as number two.
BUYING GROUP SALES YEAR-OVER-YEAR ($MILLIONS)
Buying Group 2016 2017 Change
Groupe BMR* $1,200 $1,240 3.3%
Castle Building Centres $1,950 $2,073 6.3%
Delroc Industries $713 $743 4.2%
Home Hardware Stores** $4,114 $4,307 4.7%
ILDC $3,800 $3,928 3.4%
Sexton Group $1,800 $2,070 15.0%
TIMBER MART $2,800 $2,935 4.8%
TORBSA $371 $408 10.0%
TOTAL $15,548 $16,464 5.9%
* BMR’s sales are not included in the total, to avoid double counting, as it is also a member of ILDC.
** Home Hardware’s home centre and building centre dealers only.
has targeted the lucrative young adult customer.
With this brand-new marketing
slogan and a shift from product to project
promotion, as well as an emphasis on its
Canadian-owned and operated status, the
co-op hopes to increase its popularity with
a new generation.
Canadian Tire has made a few attempts
to refine its loyalty program over the last
few years, only to find resistance from
Canadians. The company’s new digital
rewards program, Triangle Rewards,
doesn’t replace the paper money, but it
now offers shoppers the ability to acquire
points digitally and use them across the
company’s many divisions—Canadian
Tire, Sport Chek, and participating Mark’s
and Atmosphere locations.
For its part, Lowe’s has been working to
sort out its plans for the assortment of banners
it acquired when it purchased RONA.
The company announced earlier this year
the conversion of its Marcil stores to the
RONA banner. The stores, known for catering
to a mix of DIY and contractor customers,
will fit into RONA’s format for its small
to medium-sized building centres, known
internally as “proximity stores”. While the
move reflects a common direction taken
by many companies to unify their brand
with fewer banners, it also points to Lowe’s
commitment to continue to support the
RONA banner, at least in Quebec, where it
remains dominant.
IT’S ALL ABOUT OMNI-CHANNEL
This past year also brought a big push from
each of the top four to refine their omnichannel
offerings. Home Depot headquarters
in Atlanta have been investing
considerable resources in the company’s
online initiatives. The company also plans
to build seven e-commerce fulfillment
centres to help speed up deliveries to customers’
homes or job sites and hire 1,000
technology professionals—including 100
in Canada—over the next year. It’s part of
an $11 billion overall plan to re-engineer
28 THIRD QUARTER / 2018
Hardlines Home Improvement Quarterly
www.hardlines.ca