July 12, 2019
Physical Retail Remains Most Prevalent
Physical retail is still the most prevalent form of shopping for Canadians at 47 per cent and for Americans at 35 per cent, even amidst the growing popularity of online shopping, says Lightspeed. It's report, '2019 Summer Shopping Habits Survey,' says 52 spend between $50 and $250 per shopping excursion. Most shoppers spend their money on food during the summer, but they also spend on supplies for hobbies and home furnishings. Americans spend more in the winter, while Canadians spend more in the summer. Over 36 per cent of Canadians spend the most money on shopping and dining in the summer, whereas over 36 per cent of Americans spend the most in the winter.
Trex Offers Free Rycyclability Testing
Trex Company now offers free recyclability testing for polyethylene packaging applications to packaging engineers, manufacturers, and brand owners in companies in Canada and the U.S. through its NexTrex Recycling Program. Each year, Trex diverts more than 400 million pounds of plastic film, bags, and wrap from landfills and uses it to manufacture its composite decking, which is made from 95 per cent recycled material. Among its largest sources are retailers and makers of consumer packaged goods who partner with the company to responsibly dispose of plastic shopping bags and polyethylene film used to wrap products and pallets. This testing validates whether the material is capable of being recycled in the Trex recycling stream. Once packaging samples have been tested and approved by Trex, companies may qualify for a Trex Commercial Recycling Partnership.
Royal Building Products Launches First Coloured Column Wraps
Royal Building Products, a Westlake company, has added the first colour to its line of PVC Royal Column Wraps. 'Sand Dune' is a neutral beige tone and is available in Traditional, Craftsman, and Contractor styles. In addition to Sand Dune, the column wraps are available in a ready-to-install white finish that can also be painted with vinyl-safe paint. The column wraps feature a 'clam shell' design with three pre-assembled sides that surround the existing post for a seamless appearance. The fourth side is applied to enclose the entire column.
Ross To Lead Williams-Sonoma
Ryan Ross will be president of the Williams-Sonoma brand, effective August 1. He is currently executive vice-president of emerging brands.
Fastenal Sales Rise
Fastenal Company had net sales of $1,368 million for the second quarter of 2019, a 7.9 per cent increase over net sales of $1,268 million for the second quarter of 2018. Sales were driven by unit sales and contribution from industrial vending. Sales of fastener products grew 5.5 per cent on a daily basis over the year-ago period, while non-fastener product sales increased 9.5 per cent. Gross profit for the quarter was $641 million, an increase of 3.8 per cent over gross profit of $618 million. Gross profit was 46.9 per cent of sales compared to 48.7 per cent of sales. Net earnings were $205 million compared to $211 million, a decrease of 3.1 per cent.
July 11, 2019
BMR Group Invests In Lefebvre & Benoit
BMR Group has acquired a stake in Lefebvre & Benoit, a construction materials provider for contractors. BMR says the two Canadian companies will benefit from their complementary expertise to enhance their respective offerings and strengthen their position in the hardware and construction materials sectors. This is BMR's first foray into the sale of materials to contractors that work on commercial buildings and multi-unit housing throughout Canada. "We are confident that this alliance will drive the development of our hardware division, as well as Lefebvre & Benoit’s – a model company in its category – to new heights both in Quebec and across Canada," says Ghislain Gervais, president of La Coop fédérée, BMR's parent company.
Negative Shipping Experience Costs Customers
While eCommerce and shipping have a symbiotic relationship, shipping often becomes an afterthought for online retailers. For customers, however, a brand’s shipping experience can carry just as much weight as the product it sells and how it is marketed to them, says a report by BigCommerce, an eCommerce SaaS platform. The report says an alarming 77 per cent of consumers have abandoned an online purchase due to unsatisfactory shipping options, while 58 per cent have actually stopped shopping with particular retailers altogether as a result of a negative shipping experience. However, 47 per cent of merchant respondents are unaware of their online cart abandonment rate, nor the percentage of cart abandonment caused by shipping options. The mass adoption of Amazon Prime’s free two-day shipping, as well as similar efforts from big box retailers like Walmart, have changed consumer expectations. In the past 12 months, 84 per cent of consumers have made a purchase from an online retailer specifically because it offered free shipping, and half say that they avoid shopping with retailers that do not offer delivery at no-cost. Yet only 13 per cent of merchants offer free shipping on all purchases, while a larger percentage (39 per cent) give consumers free shipping on purchases over a designated dollar amount.
JennAir Unveils Luxury Campaign
JennAir unveiled its luxury brand campaign in Canada, Bound By Nothing, a creative mission built from consumer luxury category insights. With a focus on personalization, the Bound By Nothing platform features JennAir's latest line of major appliances that launched in spring. Along with the brand campaign, this spring, JennAir unveiled two design expressions - RISE and NOIR. These expressions represent a rebellion within the luxury appliance category that urges consumers to tear down stale luxury conventions and usher in a new era of luxury standards. The campaign - which won gold at this year's North American Effie Awards - will launch in Canada through national print, digital, online, out-of-home advertising, social channels, and earned media efforts.
Lightspeed Improves Inventory Management Software
Global POS software provider Lightspeed has added inventory-focused features to Lightspeed Retail's suite of tools. These features are designed to improve inventory management control, offering retailers added insight into how their business is performing. New features include a negative inventory report, omnichannel impact, home-data driven dashboard, vendor returns, and newly supported images dimensions and formats.
BB&B Prioritizes Transformation After Loss
Bed Bath & Beyond Inc. had a net loss of $371.1 million for the first quarter of its fiscal 2019 year, a decrease of net earnings of $43.6 million in the first quarter of 2018. Net sales for the quarter were $2.6 billion, a decrease of 6.6 per cent compared to net sales of $2.8 billion for the prior-year period. Gross profit was $887 million compared to $965 million. "We recognize that there needs to be a fundamental change in our approach to executing the company's business transformation," says Mary A. Winston, interim CEO. "We have set four key near-term priorities that include stabilizing and driving top-line growth; resetting the cost structure; reviewing and optimizing the company's asset base, including our portfolio of retail banners; and refining our organization structure."
July 10, 2019
June Housing Starts Trend Higher
The trend in housing starts was 205,838 units in June, compared to 200,530 units in May, says the Canada Mortgage and Housing Corporation (CMHC). This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts. The increase is primarily due to higher trending row and apartment starts in urban areas. The Vancouver, BC, census metropolitan area (CMA); Edmonton, AB, CMA; Saskatoon, SK, CMA; Winnipeg, MB, CMA; Halifax, NS, CMA; and the Quebec City, QC, region housing starts all trended higher in June. Starts in the Kingston, ON, CMA were slower following a strong performance in 2018. The Toronto, ON, CMA remained virtually unchanged over May and the Sherbrooke, QC, CMA had particularly strong housing starts since the beginning of the year. The standalone monthly SAAR of housing starts for all areas in Canada was 245,657 units in June, up 26 per cent from 196,809 units in May. The SAAR of urban starts increased by two per cent in June to 234,238 units. Multiple urban starts increased by 31 per cent to 185,804 units in June while single-detached urban starts increased by eight per cent to 48,434 units. Rural starts were estimated at a seasonally adjusted annual rate of 11,419 units.
Understanding Consumer Behaviour Crucial
Understanding consumer behaviour and the dynamics of how and why customers make buying decisions is essential to the success of all businesses, says Ken Jenkins, president of Castle Building Centres Group. Writing on his blog, 'Insights,' he says, "At its most basic, it is understanding how consumers buy goods and services, use them, and, ultimately, dispose of them." Understanding, at least partially, the cultural, psychological, anthropological, social, and economic factors that affect customers’ lives and buying decisions helps retailers to not only meet their needs today but anticipate future ones. To succeed in business, retailers must not simply address the practical or rational needs of their customers (the problem) — for example, providing them the tool needed for a job — but also their hidden emotional needs. Developing a deeper understanding of the behavioural dynamics that impact consumers will open doors to better engage and interact with customers. "The benefits of understanding consumer behaviour does not begin and end with your brand," says Jenkins. "It can drive the successful decisions and priorities you make moving forward. . . . The more you know about your customers, the more you know about your own business."
Keson Partners With SOLA Measuring Tools
Measuring and marking product manufacturer Keson LLC has partnered with SOLA Measuring Tools to bring levels from both brands to the North American market. Keson has launched a two-brand strategy that will position SOLA branded levels at the high-end of the market while Keson-branded levels are positioned as the best of the mid-tier levels. All levels for the campaign will be made for Keson at one of SOLA’s two European manufacturing facilities in Austria and Hungary. Keson has introduced more than 60 different level products under the SOLA and Keson brands. The levels feature SOLA's FOCUS vial technology that show higher contrast and allow reading from a distance and in low-light settings.
Gratton Veaudry Named Merchandise Manager
Renee Gratton Veaudry is merchandise manager, plumbing/fashion with Home Hardware Stores Limited. She has nearly 20 years of experience in category management, marketing, and merchandising including as vice-president of sales at Talon Systems Inc.
WD-40 Sales Up
WD-40 Company had total net sales of $114 million for the third quarter of fiscal 2019, an increase of seven per cent compared to net sales of $107 million in the third quarter of 2018. Net income for the quarter was $18.1 million, an increase of 12 per cent compared to the prior-year quarter. Gross margin was 54.5 per cent compared to 54.8 per cent. Net sales for the Americas segment were $53 million, flat compared to the same quarter in 2018. Net sales of maintenance products was up six per cent and homecare and cleaning products was up 16 per cent.
July 9, 2019
June Dodge Momentum Index Increases
The Dodge Momentum Index moved four per cent higher in June to 146.1 from the revised May reading of 140.5. The index, issued by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for non-residential building projects in planning in the U.S., which have been shown to lead construction spending for U.S. non-residential buildings by a full year. The June increase reflected a 6.1 per cent jump by its institutional component and a 2.4 per cent gain by its commercial component. However, despite the improvement, planning for commercial and institutional building projects has clearly stepped back from the torrid pace set during the first half of 2018. The average of the overall Momentum Index through the first six months of 2019 was 4.3 per cent lower than the same period a year ago, with the commercial component down 5.2 per cent and the institutional component down three per cent. What June’s improvement does affirm is that the broader pullback by the index remains gradual, and that there are still ample projects at the planning stage to maintain stability for construction spending in the near term.
RONA VeRONA Celebrates 90th Anniversary
Lowe's Canada affiliate store RONA VeRONA Hardware is celebrating its 90th anniversary. The store is the oldest business in Verona, ON, and is owned by Nicole and Chad Van Camp. They celebrated on July 6 with a fundraising barbecue and raffle. The local hardware shop was founded in 1929 by Steven and Victor Merrill in what is now Nicole’s Gifts, also owned by the Van Camps. Forty-two years later, entrepreneur Ken Harper bought the store. In 1994, Ken and his wife Evelyn moved the business to its current 10,000-square-foot location. Chad and Nicole acquired the store in 2004.
Feldman Timber Joins Group BMR
Timmins, ON-based Feldman Timber has joined BMR Group. The family-owned business, which settled in Timmins nearly 110 years ago, will undergo renovations to allow the 23,000-square-foot store to display the BMR banner in the upcoming months. The façade of the store will be revamped and the interior design will be modernized. "Our goal is to be the leader in our marketplace," says Lorne Feldman, owner. "With competitive pricing, integrated distribution, exciting new products in many categories, and a dynamic marketing program, BMR provides us the tools to give our customers an exceptional shopping experience along with great value."
3,000 Western Forest Employees Go On Strike
Roughly 3,000 Western Forest Products Inc. employees have gone on strike, says the company in a press release. The strike affects all of the company's United Steelworkers (USW) certified manufacturing and timberlands operations in British Columbia. Western has been working to negotiate a new collective agreement, as has been achieved in the northern and southern interior of British Columbia, where the USW and the Council on Northern Interior Forest Employment Relations and Interior Forest Labour Relations Association, respectively, have ratified new collective agreements. The actions taken by the USW come at a time when British Columbia forestry companies are curtailing production and shutting down mills due to poor market conditions. The company has commenced its work stoppage contingency plan and is working to mitigate the potential impact of the strike on its business partners and customers.
Francis Appointed CEO
Julian G. Francis is president and chief executive officer of Beacon Roofing Supply, effective September 1. He is currently president of the insulation business at Owens Corning.
July 8, 2019
Business Optimism Up Sharply
Canadian business leaders are more optimistic about the prospects of the Canadian economy heading into the summer, says a survey from the Chartered Professional Accountants of Canada (CPA Canada). Optimism about the economy over the next 12 months is up sharply among professional accountants in leadership positions. Almost one in three (31 per cent) of the survey respondents were optimistic in the second quarter of 2019, up from 22 per cent the previous quarter. About a quarter of respondents (24 per cent) were pessimistic, while cautious neutrality continues to be the opinion of the largest group (44 per cent), very similar to last quarter (47 per cent). What is interesting about the latest findings is that optimism and pessimism essentially flipped in the second quarter when compared with the year's opening three months. The top three challenges to the Canadian economy were cited as protectionist trade sentiment in the U.S. (19 per cent); uncertainty surrounding the Canadian economy (16 per cent); and the state of the U.S. economy (11 per cent).
Double Digit Residential Sales Growth In GTA
There were 8,860 residential sales in the Greater Toronto, ON, Area (GTA) in June, representing a 10.4 per cent increase compared to June 2018, says the Toronto Real Estate Board (TREB). Over the same time period, total new listings remained at a similar level for the month of June and active listings at month-end were down by 5.7 per cent. Sales and new listings statistics for the first half of 2019 compared to the same period in 2018 painted a similar story to that of June. Sales were up by 8.5 per cent, while new listings were up by less than one per cent. This shows that sales accounted for a greater share of listings compared to last year, which means that competition between buyers increased, resulting in renewed price growth in many segments of the market. TREB says buyers started moving off the sidelines in the spring, as evidenced by strong year-over-year price growth throughout the second quarter. However, because there was virtually no change in the number of new listings, market conditions tightened and price growth picked up.
Lowe's Canada Donates To Charles-Bruneau Foundation
Lowe's Canada has presented $1.3 million to the Charles-Bruneau Foundation in support of pediatric cancer research. The donation was presented at the finish line of the '24th Tour CIBC Charles-Bruneau' on July 5 in Boucherville, QC. This was the company' second fundraising campaign as a Diamond Partner. Several initiatives were carried out for the campaign including a team of 120 cyclists made up of employees, affiliated dealers, and vendor partners who took part in various tour treks. Together, they biked over 13,000 km to support the cause. In addition, from June 1 to July 5, participating RONA, Reno-Depot, and Ace corporate and affiliated dealer stores in Quebec led a fundraising campaign at checkout counters. Employees also held various activities to involve customers in the campaign.
Outdoor Living Drives Landscaping Products Sales
Consumers are crazy about outdoor living, and it's positively impacting demand for higher value hardscape products and outdoor heating implements, says The Freedonia Group. Outdoor living includes lounging, cooking and dining, entertaining, gardening and landscaping, and tailgating. As consumers seek to expand the square footage of their homes by creating more elaborate 'outdoor rooms' that emulate the comfort and aesthetics of indoor living areas, they'll increasingly invest in more expensive hardscape products. Demand for hardscape products is expected to increase 5.4 per cent per year through 2023, driven by interest in higher value products such as stamped concrete plank pavers that resemble wood, natural stone products, porcelain pavers, and permeable pavers that can help prevent issues with water runoff and flooding. Furthermore, outdoor living stalwarts like fire pits and chimeneas - part of the $665 million 'other landscaping products- category - will see renewed interest from homeowners seeking to add ambience to their outdoor rooms and extend their outdoor leisure time past sunset, particularly in cooler climates where outdoor living is seasonally limited.