News
June 29, 2018
Fear Of Missing Out Drives Homebuyers
Canadian homebuyers are influenced by fear of missing out, perceived impact of foreign investor activity, and expectations of future price growth, says the ‘Housing Market Insight’ (HMI) report by the Canada Mortgage and Housing Corporation (CMHC). In both Vancouver, BC, and Toronto, ON, 48 per cent of homebuyers respectively spent more than they budgeted on their home purchase while only 24 per cent of homebuyers in Montréal, QC, exceeded their budget. The data suggests the ‘fear of missing out’ hypothesis could have an impact on buyers' budgets. About 55 per cent of buyers experienced a bidding war in Toronto and Vancouver, which is much larger than the 17 per cent recorded in Montréal. In Vancouver, 68 per cent of respondents believe foreign investors have a lot of influence in driving up home prices while 48 per cent of respondents in Toronto believe foreign investors have a lot of influence driving up home prices.
Global Decathlon Focuses On Sustainable Homes
After months of preparation, teams from all over the world will depart for Dezhou, China, on July 3 to participate in the ‘Solar Decathlon 2018’ competition, which brings together 21 teams from 11 countries and 43 universities. From July 11 to 29, the teams will build sustainable homes, which will be judged based on 10 criteria. The winner will be announced on August 17. “Our committed involvement to developing homes of the future, which are intelligent and adapted to a new market, is already bearing fruit. This is a unique opportunity to be on the front lines, to anticipate our clients' needs, and to be ready for what's coming next,” says Geneviève Fournier, vice-president – customers at Hydro-Québec Distribution, which is sponsoring TeamMTL. “The Solar Decathlon encompasses a broad range of important issues such as affordable housing, environmental and cultural sustainability, Chinese and Canadian cooperation, and the future of Quebec's energy and export industries,” says James Nicell, dean of the faculty of engineering at McGill University.
Unifor Launches 'I Shop Canada' Campaign
In support of workers and good paying jobs, private sector union Unifor has launched a national 'I Shop Canada' campaign to promote and increase the purchase of made-in-Canada products and services. The campaign is featured on social media platforms for consumers, workers, and companies to share information on made-in-Canada goods and services. Unifor says the online awareness campaign comes in response to the escalating trade war with the U.S. and a growing sentiment among Canadian consumers to support homegrown industries. “By choosing to shop Canada, you are investing in good paying jobs while also providing a boost to the economy,” says Jerry Dias national president at Unifor. “Together we can make a difference – one purchase at a time.”
Fire Protection Market Poised For Growth
The global fire protection materials market for construction was estimated at US$3.92 billion in 2016 and is forecast to reach $8.10 billion by 2025, says Grand View Research. Increasing use of fire protection materials for various types of constructions owing to the introduction of strict fire safety regulations and building codes is estimated to drive the market over the forecast period. In addition, increasing public awareness regarding fire safety of residences and workplaces is likely to propel the market. North America follows strict building codes, making the region a major consumer of fire protection materials. Awareness among people and high disposable income will help North America retain its dominance throughout the forecast period. The high price of fire protection materials due to the use of expensive raw materials in the products is acting as a restraint in this market. Moreover, extensive research and development heightens the selling cost of the final product. Sealant is expected to dominate the market over the forecast period while putty will increase due to increased construction activity in North America and Asia Pacific.
June 28, 2018
Retail Sales Take A Dive
Total retail sales increased only 2.6 per cent year-over-year for the three months ending April, the slowest three-month growth since mid-2015, says Ed Strapagiel, retail consultant. He adds that all major retail sectors and most retail store types are suffering the same fate. The deteriorating trend started last December, and the underlying 12-month trend has now turned downward and is on track to weaken further in the next few months. After enjoying rising trends for much of last year, the store merchandise sector has come back down to earth, he says. Year-over-year retail sales were up 3.4 per cent. Electronics and appliance stores and miscellaneous store retailers still managed to increase retail sales by 10.1 per cent each, year-over-year. Canadian eCommerce sales were up 12.3 per cent year-over-year for the three-months ending April, but this is less than half the 28.8 per cent gain recorded in the same period a year ago. While eCommerce retail sales gains are still in double digit territory, it appears that their growth may be slowing down.
CFIB Fights For Fair Small Business Tax Rates
Canada's provincial and territorial finance ministers must break away from the federal government's example in order to support small business, says the Canadian Federation of Independent Business (CFIB). The organization believes the new passive investment tax rules implemented at the federal level unfairly punish small business owners and create an environment that discourages growth. The 2018 federal budget included new rules that will shut out some small businesses from accessing the small business tax rate if they have more than a certain amount of pre-existing passive investments, taxing them like big businesses. If provinces choose to implement similar rules, small businesses will pay thousands of dollars more in provincial taxes next year on top of higher federal taxes. Only Ontario and Prince Edward Island have indicated they would follow the federal government's lead on passive investment rules. CFIB is calling on the newly elected Ontario government to revisit that decision before it goes into effect in 2019.
eBay Canada Launches Price Guarantee Program
eBay Canada launched the ‘Best Price Guarantee’ program, offering shoppers 110 per cent of the price difference on items found for less on an approved competitor's website. The program improves on eBay's current price match offering and runs site-wide through the month of July on Canadian items. Users who find an eligible item available for less on an approved competitor's website can contact customer service within 48 hours of their purchase on eBay.ca to be issued an eBay coupon for 110 per cent of the difference, upon confirmation by the eBay team.
Nova Scotians Eligible For Solar Rebates
The governments of Canada and Nova Scotia together have launched the SolarHomes program, which will provide rebates for residents of Nova Scotia to reduce the costs of solar-electricity systems for their homes. Through the government of Canada's Low Carbon Economy Fund, Nova Scotia is eligible to receive $56 million for programs that generate clean growth and reduce carbon pollution. A portion of that funding will support the SolarHomes program. The program will provide rebates of up to 30 per cent off the purchase and installation costs of rooftop solar-electricity systems. The program is expected to make solar power more affordable and accessible for at least 2,000 Nova Scotian households over the next four years, and participants in the program will save an average of $1,300 per year in energy costs. Nova Scotia is investing $74.9 million toward programs that help increase renewable-energy use and make homes more energy efficient.
ROCKWOOL Breaks Ground On WV Facility
ROCKWOOL (North America) broke ground on its second stone wool insulation manufacturing facility in the Ranson, WV. The 460,000-square-foot facility represents an investment exceeding US$150 million and will employ around 150 people in positions ranging from management to the production line. The facility, which sits on a 130-acre site, will manufacture a full lineup of ROCKWOOL stone wool insulation products.
Pratt Head Of National Plumbing Sales
Lisa Pratt is national sales manager for the wholesale plumbing division of Spectrum Brands Inc. With more than 20 years of experience in sales and leadership in the wholesale plumbing industry, she joins the company from Wolseley Canada, where she was the national sales manager for private label.
June 27, 2018
Report Compares Ontario, BC Housing
Single-detached houses dominate the Ontario housing market, accounting for almost two-thirds of residential properties in the province. In British Columbia, in turn, the proportion of this property type is less than half, says the ‘Canadian Housing Statistics Program’(CHSP), a comparison of housing between British Columbia and Ontario produced by Statistics Canada and the Canada Mortgage and Housing Corporation. The overall mix of residential property types differs significantly in British Columbia and Ontario. Single-detached houses account for 44.1 per cent of the close to 1.7 million residential properties in British Columbia compared to 64.2 per cent of the close to 4.8 million residential properties in Ontario. Conversely, the proportion of condominium apartments is nearly twice as high in British Columbia as in Ontario (close to 20 per cent versus 10 per cent), while the share of properties with multiple residential units in British Columbia is nearly three times (10.1 per cent) the proportion in Ontario (3.3 per cent).
Home Hardware Wins Fleet Safety Award
Home Hardware Stores Limited has been awarded the ‘Large Fleet Safety Award’ at the Private Motor Truck Council of Canada’s (PMTC) annual conference. This marks the eighth time that its fleet has received this honour. The fleet is based in the company’s four distribution centres in St. Jacobs and Elmira, ON, Debert, NS, and Wetaskiwin, AB. Employing 157 fleet-related professionals, it operates 141 trucks and averages 17.7 million kilometers a year. The awards program was created by the PMTC to encourage improved road safety for the general public and promote best practices in private fleet safety management. The awards recognize the private truck fleets that are committed to safety improvement, especially those that exceed National Safety Code requirements.
Torontonians Have Most Contractor Issues
Toronto, ON, is the city where people encounter the most problems with renovation contractors in Canada, finds a survey by Reno-Assistance. Homeowners in Toronto also have the most difficulty finding a trustworthy renovation contractor in Canada, with 78 per cent finding it difficult and 25 per cent finding it very difficult. Torontonians also have a higher probability of encountering more than one major problem with a contractor on a single project – such as stolen deposits, poor finishing, sloppy work, or theft. Despite Torontonians making more verifications than the rest of the country on their contractors, the fact remains that too few make the necessary verifications. More than two-thirds of respondents do not verify that the company they are working with legally exists, has proper insurance, a valid licence, a clean legal history, no criminal record, and more. More than 80 per cent of people do not make any verification whatsoever regarding the financial health of their contractor before entrusting them with projects sometimes worth tens of thousands of dollars.
mPOS Use To Increase Threefold
Adoption of mPOS (mobile point-of-sale) devices connecting wirelessly or via mobile devices will drive annual mPOS transactions to more than 87 billion by 2023, says data from Juniper Research. This will represent a threefold increase over an estimated 28 billion transactions in 2018. The average price of an mPOS device will drop from $40 in 2018 to approximately $33 by 2023. This affordability, coupled with the simplicity of the devices, will make them highly attractive to smaller, previously cash-driven businesses. The research also forecasts that biometrics will become an increasingly common part of mPOS offerings. It cited national identity schemes using biometrics as a mechanism for card-free authentication, giving merchants the opportunity to avoid card network charges. This will drive biometric-enabled mPOS devices to reach almost two million globally by 2023, just under four per cent of total mPOS terminals in use by then.
June 26, 2018
U.S. Home Sales Increase More Than Expected
Sales of new U.S. single-family homes increased more than expected in May as sales in the south surged to their highest level in nearly 11 years, says the Commerce Department. New home sales jumped 6.7 per cent to a seasonally adjusted annual rate of 689,000 units last month, the highest level since November 2017. April's sales pace was revised down to 646,000 units from the previously reported 662,000 units. Sales in the south, which accounts for the bulk of transactions, rebounded 17.9 per cent to a rate of 409,000 units in May, the highest level since July 2007. The increase ended two straight months of declines. Sales tumbled 10 per cent in the northeast and dropped 8.7 per cent in the west. They were unchanged in the midwest. New home sale permits increased 14.1 per cent from a year ago. The department says new home sales are getting a boost from an inventory crunch in the market for previously owned houses.
Castle Announces Member-store Milestones
Castle Building Centres Group Ltd. member Wolf Creek Building Supplies, in Morinville, AB, celebrated its grand opening. Wolf Creek also has locations in Lacombe and Sylvan Lake, AB. Rivest et Fils celebrated the fourth anniversary of its St-Charles Borromée, QC, location. The company also has a location in Saint-Félix-de-Valois, QC. John-Rogers Hardware, in Baie Verte, NL, celebrated its grand opening in the town in White Bay on the northeast coast of the province. The retailer plans to grow the building supply area of its business to be the dominant player in Baie Verte. Van Dolder's Home Team celebrated the grand opening of its Collingwood, ON, store. The business has another location in Owen Sound, ON. Burnstown Building Supplies in Ottawa Valley, ON, is now open to the public. The grand opening celebrations for Burnstown will take place August 2.
Ford Cancels GreenON Program
Doug Ford, the incoming PC premier of Ontario, has canceled the GreenON program that provided rebates and incentives for homeowners to make their homes more energy efficient. Ford, who will become premier on June 29, has also announced plans to end Ontario’s cap-and-trade program which funded the GreenON program and other initiatives. This means Ontario homeowners will no longer have access to rebates for a number of improvements from free smart thermostats to new windows, insulation, and more. It also cancels several commercial initiatives including ‘The GreenON Challenge.’ The GreenON website says it will honour rebates for homeowners that have signed a work agreement with a participating contractor for work that will be completed by the end of August 2018 and for applications submitted by September 30.
Home Hardware Holds Annual Golf Tournament For Charity
Approximately 600 Home Hardware dealer-owners, staff, suppliers, and friends teed up for charity June 19 at Home Hardware’s ‘Annual Charity Golf Tournament’ in support of KW Counselling Services. Golfers hit the links at Elmira Golf Club, Whistle Bear Golf Club, Grey Silo Golf Club, and Rebel Creek Golf Club and attended a dinner at Bingemans Conference Centre with a silent auction of over 80 items donated by Home Hardware and its suppliers and partners. Last year, nearly $62,000 was raised from the tournament and silent auction in support of Alzheimer Society Waterloo Wellington. In the past 20 years, the tournament has raised nearly $630,000 for various local charities.
Snell Becoming GM
Anthony Snell is general manager of Coast Distributors (Nanaimo) Ltd., effective July 9. He joined Coast three years ago, but brings many years of experience to the role. Snell succeeds Brad McCluskie, owner and general manager. Once Snell takes the position, McCluskie will manage the growth of the company and build its brand.
RCC To Discuss Cannabis In Retail
The Retail Council of Canada (RCC) is holding its first-ever conference focused on providing retailers with deeper clarity on the cannabis legislation in Canada and how these policies and opportunities will affect them. The ‘RCC Cannabis in Retail Forum’ takes place September 21 at the International Centre in Mississauga, ON. For more information, visit RCC Cannabis in Retail Forum
June 25, 2018
Retail Sales Drop In April
Following three consecutive monthly increases, retail sales in April declined 1.2 per cent to $49.5 billion, says Statistics Canada. The decrease was primarily due to lower sales at motor vehicle and parts dealers. Inclement weather in many parts of Canada may have contributed to the overall decline in April. Sales were down in eight of 11 subsectors, representing 65 per cent of retail trade. Removing the effect of price changes, retail sales in volume terms declined 1.4 per cent. Building material and garden equipment and supplies dealers (3.3 per cent) reported a decrease in sales for the fifth time in six months. Six provinces reported lower sales in April, with the overall decline concentrated in Ontario and Quebec. Sales increased in British Columbia (1.1 per cent) for the third consecutive month. On an unadjusted basis, retail eCommerce sales totalled $1.3 billion, representing 2.7 per cent of total retail trade. On a year-over-year basis, retail eCommerce rose 8.8 per cent while total unadjusted retail sales increased 0.8 per cent.
Castle Holds Cross-country Buying Expos
Castle Building Centres Group Ltd. members from across Canada joined Castle vendor partners in various regions for the Castle Buying Expo. The expos included a Castle 360 educational session, a full day of buying, and some buying deals in the pallet buy areas. The Quebec Expo was held in the Laurentian town of Saint Sauveur, QC, where members from the Quebec and northern New Brunswick regions gathered for the second annual event. The Western Expo was held in Saskatoon, SK, and welcomed members from Manitoba to British Columbia. The Central Expo welcomed members from Ontario at the Deerhurst Resort in Huntsville, ON for two days of buying and an afternoon of golf and adventure.
CFIB Lauds Montreal For Construction Compensation
The Canadian Federation of Independent Business (CFIB) has recognized Montreal, QC, for being the first municipality in Canada to compensate small businesses severely impacted by construction. Infrastructure projects can spell closure for small businesses in their path and this policy is a promising first step to help them stay in business. The organization recently released a report, ‘Paving a Smoother Road: Helping small businesses survive infrastructure work,’ which shows that since 2012, as many as 65,000 businesses have been seriously affected by infrastructure projects. CFIB also issued a challenge to municipalities to compensate small businesses and adopt a coherent construction mitigation policy that includes a ‘no surprise’ rule, a comprehensive planning approach, an improved contracting process, and a business liaison officer for each project.
Painting Increases Home Value
Home Hardware Stores Limited ran an experiment that raised the value of a Hamilton, ON, house by $110,000 just by giving it a coat of paint. As part of the latest campaign for its Beauti-Tone division, the retailer was trying to prove that painting a home is the best investment a homeowner can make. They had a realtor appraise the house. Then they painted it top to bottom, and inside and out. Then a realtor who had never seen the home before came to evaluate it and give an appraisal. That appraisal was $110,000 more than the original. Snippets of the experiment will appear on TV and pre-roll during Beauti-Tone’s paint event. Home Hardware created the experiment with its creative agency, john st.
Think3 Acquires MyAlerts
Think3 has acquired MyAlerts Inc., an eCommerce marketing platform used by retail and consumer sites to capture purchase intent and convert browsers into buyers. Sites, including Home Depot, JCPenney, Target, and Cars.com, utilize MyAlerts to offer consumers automated alerts such as back-in-stock to registry and price alerts. As part of the Think3 portfolio, MyAlerts will become a key component of the Think3 Prime program.
