From General Store to Building Materials Distributor — Groupe Gagnon

Michael McLarney, Hardlines Editor and podcast host, interviews Geneviève Gagnon, President of Groupe Gagnon, and CEO of Évolution Structures and Évolution Distribution. Joining the discussion is Geoffrey McLarney, Quebec Hardlines Assistant Editor and representative of all things francophone.

 

Key Takeaways:

[1:07] Michael welcomes Geneviève to the podcast.

[1:25] There was no fence between the house where Geneviève was born and the lumber yard. When she was five, she would climb on the bundles, so her parents put up a fence. Geneviève has always been involved in the family business.

[2:47] Geneviève went abroad for her education. She studied international finance in Copenhagen, then worked in South Africa and Tunisia.

[4:14] Geneviève found it challenging to work in Tunisia. She came back home and soon told her father she wanted to work for him in the family business.

[5:01] Geneviève’s father gave her the mandate to evaluate a store. After a week, she reported that they needed to close that store. They relocated the employees and closed the store. Geneviève went to work at the head office in Chénéville. Groupe Gagnon is somewhat decentralized, with different functions at different offices, based on where the employees live.

[7:33] This is Groupe Gagnon’s 49th year in business. Geneviève attributes its longevity to its people. Geneviève’s father started the business by buying his parent’s small general store in Chénéville in May of 1973, turning it into a hardware store and lumber yard.

[9:03] Geneviève credits the people of Groupe Gagnon with its growth. The employees treat it as if it were their company. Geneviève also notes the relationships Groupe Gagnon has with its vendors, thanks to her father. The supply chain vendors have stuck with Groupe Gagnon through the COVID-19 pandemic.

[10:52] Since January 2020, Groupe Gagnon has been independent of any buying group.

[11:20] In May 2012, Michael visited the opening of the Groupe Gagnon store at Saint-André-Avellin. He was struck by how bright and innovative it was, with its interior wood, geothermal heating and cooling, and living plant wall. Groupe Gagnon was ahead of its time in the environmental movement. Geneviève does what she can to make the future brighter.

[14:22] Groupe Gagnon has built other stores after the same green model. Ten years ago they adopted all-electronic pricing, saving trees.

[16:07] Part of Geneviève’s education was in tax law. She always had an interest in law, relating to selling and buying companies.

[17:32] Geneviève has three businesses. She discusses some of her ideas for growth. There are a lot of opportunities. She talks about business succession in retail. It is a challenge to attract young people to work in an industry that is not very technological.

[20:51] Michael mentions how much of an industry giant Geneviève’s father is, and how good he was to Hardlines through the years. Michael is glad Geneviève is applying her intellect and intuition to follow in the footsteps of her father. Geneviève talks of her father’s encyclopedic knowledge and experience that she still uses. Her father’s first love, with his wife, is the farm!

[22:59] Évolution Distribution started in 2010, manufacturing roof trusses. Geneviève wanted to be in that business to serve her customers more fully. In 2015 she purchased Cott Lumber company and that business has exploded. Besides roof trusses, they manufacture floor trusses and wall panels in three manufacturing sites and distribute lumber and building materials.

[25:17] Évolution Distribution started as independents in 2020. All the members in Évolution Distribution have a volume large enough to buy direct. Évolution Distribution is a member of the OCTO hardware purchasing group and serves 17 locations for hardware.

[26:59] Geneviève explains the business model of Évolution Distribution as a regional distributor. The 17 locations share buying power and business knowledge and handle all importation for the group from one distribution center.

[28:33] Geoffrey and Geneviève discuss the health foundations Groupe Gagnon donates to as a major partner in the area. Geneviève’s sister is a doctor and her sister’s husband is a doctor in palliative care in a region where there was great need. That touched Geneviève and her father to the point where they wanted to help people in their last days be close to home and family.

[31:35] Geneviève hopes for future improvements and changes in what Groupe Gagnon can offer to its employees and customers without losing their human touch.

[33:39] Geneviève sees the possibility of new sides to the business but not making for major changes. The stores will add some new services. She won’t neglect the stores she has now to expand or grow. The base must be solid.

[34:49] Michael thanks Geneviève for being on What’s in Store.

 

About Us:

What’s in Store is a podcast series of the Hardlines Information Network, brought to you by RDTS: Innovative strategies to maximize your ROI.

Resources:

Michael McLarney

Geoffrey McLarney

Groupe Gagnon

Évolution Structures

Évolution Distribution

OCTO

 

Quotes:

“Most of the administrative tasks at Groupe Gagnon come out of our office at Chénéville but we have a decentralized way of doing things at Gagnon, and that’s because we’re based on our people. … We do not limit ourselves to a store or a region.” — Geneviève

 

“Wanting to make a difference for us is at several levels. Yes, into our community, in being involved in supporting our community but also environmentally speaking. I do strongly feel that we have to try to make a difference. We have to do what we can do.” — Geneviève

 

“We didn’t want to have a certification; we didn’t want to have the title of being green. We wanted to be green. That’s how it was developed.” — Geneviève

 

“It’s volume, and in LBM, volume speaks.” — Geneviève