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This podcast series is dedicated to interviews with industry leaders from the retail, wholesale, and vendor sides of home improvement retailing. Get insights into the trends and challenges confronting retailers in general and in particular the dealers who sell products and services for building, repairing, and renovating homes.
Episodes
Wednesday May 22, 2024
Wednesday May 22, 2024
Hardlines Assistant Editor Geoff McLarney and Senior Editor, Steve Payne, interview Author Nicole Gallucci about the characteristics of Generation Z and how leaders and employers can help Gen Z be successful in the workplace.
Listen in for generational wisdom and thoughtful advice.
Key Takeaways:
[:20] Geoff McLarney and Steve Payne welcome Business Coach Nicole Gallucci to What’s in Store to discuss the HR aspects of hiring Gen Z. Each generation has nuances and things that are more important to them, as they transition through life.
[1:16] Gen Z faces a lot of challenges. As we come out of COVID-19, we have wars and economic challenges. Gen Z is looking at what older generations have done and asking themselves what is the right path for them.
[2:10] Gen Z is graduating, feeling financial pressure, and wondering what they want to do for their job for the next 30 years. They do not believe that the world is their oyster.
[2:37] Gen Z faces the challenge of deciding whether to work from home or in an office. Do they want freedom and latitude? The older generations didn’t have that question. Seeing people on social media traveling and working all over the world is a challenge for Gen Z.
[3:46] Can they sustain themselves and provide a degree of professional focus so they feel they have purpose and are contributing? At the same time, more than any other generation, they want to live. They’re living spontaneously, for the moment.
[4:07] The older generations are hiring them, and the challenges of Gen Z can be confusing for Boomers and Gen X. Gen Z doesn’t have the same connection to their job as Boomers. Gen Z is going to rewrite the rules for how we work but it’s not going to be an easy rewrite.
[4:54] Nicole contrasts Millennials and Gen Z. Millennials have been good at establishing boundaries appropriately in the workplace. That came as we transitioned from desktop computers to laptop computers and now to cell phones. We can always be on, all the time, as employees or entrepreneurs. Millennials called time-out for a work-life balance.
[5:47] Nicole finds that some Millennials are frustrated by Gen Zs. Millennials have had the benefit of daily in-office coaching and problem-solving. Gen Z, on Teams. Slack and text, aren’t being coached to solve work problems. Learning by osmosis doesn’t happen as easily now.
[6:57] There’s some angst between the two groups as they experience different work-life challenges and work arrangements.
[7:22] Nicole wrote Life Blueprint: A Step-by-Step Guide for Creating an Extraordinary Life for two reasons. The first was to help herself. She faced hard challenges and needed plans. She wrote it to duplicate systems from the work world for strategic planning, annual planning, quarterly reporting, and monthly reporting. These systems are not present in people’s lives.
[8:10] Nicole cobbled together a strategy to get control of her life and make the things happen that she had intended for her children. In doing so, she started to achieve her goals. People around her noticed her surfacing from personal chaos to personal success. Her personal and professional lives were aligning.
[8:45] This led to many conversations with people struggling to figure out life. Nicole was teaching and coaching this methodology and offering it in workshops. People asked her for it. The second reason she wrote the book was to respond to those who needed the process as she had and make it more available to people.
[9:42] About Jeld-Wen’s JWC8500 Series Windows.
[10:11] Two years ago, Nicole was not teaching AI. Now Nicole is teaching it and learning it along with her students. It’s growing and changing at a rapid rate. Nicole compares a carpenter using tools to frame a home and businesses using AI to create things spontaneously from data.
[11:30] AI provides good fuel for thought, provokes interesting conversations, and helps us get through our work more quickly. That being said, it’s not a finished product. It doesn’t have a personality. It’s not you, although you can start to train it to speak more like you and to have some of those tones. We have to decide how much authenticity is important to us.
[12:12] We’re going to have to figure out where our values lie and how we want to go forward with it. Nicole and her students use it as a tool to leapfrog and see the viability of ideas. They still pick a focus and execute it using their minds and talents. No one knows the future of AI but it’s here and Nicole would feel foolish not teaching it to her students.
[13:01] In the late 1980s and early 1990s, banks started launching banking machines. Banks reduced their hours and issued bank cards. People were afraid “they” were trying to control our money. Now, we use e-wallets on our phones. Back in the ’90s, people were freaking out. We thought people were going to lose jobs. It was part of an evolution.
[13:41] A few years later came the .com evolution. AI is a piece of that. In the short term, there is going to be pain and angst. It’s new and unknown. Let’s have this conversation ten years from now! We’ll say we had no idea! There’s going to be good and bad that comes out of it. It’s going to fall upon all of us to choose how we want to use it.
[14:34] There is so much anxiety in Gen Z in 2024. Customer service is very difficult for Gen Z. They are used to playing games alone on their phones, not talking to customers. Technology has isolated them. During COVID-19 they were locked up for a couple of years. They missed socialization, prom, graduation, and other highlights and milestones.
[16:08] Now we are telling them to be sociable. They haven’t learned those social skills. A lot of the teaching Nicole does at George Brown and Loyalists is presentations, conversations, and breakouts so they are interacting with each other. They need to see how to work together and communicate both between colleagues and with customers.
[16:57] Another thing important to Gen Z is that they need to know why. “Why does this matter? Why do I have to go up and talk to that person? I don’t care if they found what they wanted. What relevance is that to me?” Talk to Gen Z about why the company is here and why we want to help that person. Teach them how the vision, mission, and values impact them.
[17:38] Nicole lists some reasons this generation needs help. It’s not one thing. We do have to help this generation. They are extremely anxious from a work perspective. Nicole was on the phone that morning with a top student, well-spoken, who couldn’t get a co-op position. Times are challenging. The economy is challenging.
[18:21] Everyone is on pins and needles, more than ever before, trying to figure out how to stabilize and move ahead. We all have to be nicer to each other and hold hands a little more. As leaders, we’ve all got to go a little easier on each other and have better conversations to reduce anxiety.
[18:50] We’re talking about mental health and wellness and anxiety more than we ever have before. That’s a positive.
[18:58] Geoff thanks Nicole Gallucci, Business Coach and Author of Life Blueprint: A Step-by-Step Guide for Creating an Extraordinary Life, for joining us from London, England on What’s In Store to unpack some of these big questions.
About Us:
What’s in Store is a podcast series of the Hardlines Information Network. Today’s episode is brought to you by Jeld-Wen.
Resources:
Guest: Nicole Gallucci
Life Blueprint: A Step-by-Step Guide for Creating an Extraordinary Life
Sponsor: Jeld-Wen
Quotes:
Gen Z is going to rewrite some of the rules and regs for how we work but I don’t think it’s going to be an easy rewrite. — Nicole Gallucci
AI provides good fuel for thought, for provoking interesting conversations, and for helping us get through our work more quickly. That said, it doesn’t serve up a fait accompli. It’s not a finished product. — Nicole Gallucci
I don’t know what the future is going to hold for AI. None of us do. I would feel foolish not teaching it to my students because it’s here. — Nicole Gallucci
We all have to be nicer to each other and hold hands a little more. As leaders, we’ve all got to go a little easier on each other and then have better conversations to reduce anxiety. — Nicole Gallucci
Wednesday Mar 27, 2024
Wednesday Mar 27, 2024
Hardlines Editor and podcast host Steve Payne, interviews Barry Eidt of Arthur, Ontario Ace, winner of the Hardlines Young Retailer of the Year. Barry tells about growing up in and growing up with the family business, and how he got into co-owning stores with his father. He talks about the division of responsibilities in the business, and how he pulled off the investment financially at a young age.
Listen in for an inspiring entrepreneurial story in a family retail business.
Key Takeaways:
[:28] Steve introduces and welcomes Barry Eidt, the Hardlines Young Retailer of the Year, to the Hardlines Whistler, BC boardroom for the What’s In Store podcast. Steve congratulates Barry for winning that prize, which he did the night before this episode was recorded. Barry Thanks Steve for having him on the show.
[1:16] The Young Retailer of the Year award goes to a retailer age 35 or under. Barry, age 29, is the co-owner of Arthur Ace. Arthur is two hours west of Toronto in Southwestern Ontario. His family also has stores in Mitchell and Exeter. Barry’s parents started the store in Mitchell 16 years ago in 2007. He has his parents to thank for getting him into the industry.
[2:01] In 2019, Barry and his father went 50-50 on Exeter as a second store. It was an independent Orgill. Back then, Ace was with RONA. Then, after COVID-19, Arthur came up. It wasn’t on their radar. It was farther out than Barry and his father had expected to go. Ace wanted a store in Arthur and they helped Barry and his father the entire way.
[3:23] Barry’s Mom, Julie, works for Canada Post but helps in the business. Since Barry came into the business, Jule has stepped back as Barry has taken on more duties. Barry and his father, Doug, split the ownership and divide the duties of running the three stores. Barry works with the managers. Doug drives the truck five days a week on deliveries and vendor pick-ups.
[4:55] The judging panel for the Young Retailer of the Year award was shocked to learn that at age 16, Barry was in charge of the installation program. As soon as he had a driver’s license, he worked after school. Since Barry was a child, he was drawn to it. Being in the store made more sense to him than playing games. He lived about five houses down from the store.
[6:35] Barry studied Accounting at Conestoga College, which he could apply in the hardware store business.
[7:02] To have more cash flow to go 50-50 with his father in the store, Barry moved. He had bought a house just before the pandemic. To go 50-50 in the store, he sold his house, bought a commercial building, and moved into the upstairs apartment. He rents the downstairs to a hair salon, giving him a little extra income. He wasn’t expecting that, but it’s good. He appreciates all that he has.
[9:12] Steve thanks Barry for telling his story on What’s In Store and congratulates Barry again.
About Us:
What’s in Store is a podcast series of the Hardlines Information Network. Today’s episode is brought to you by Jeld-Wen.
Resources:
Guest: Barry Eidt
Sponsor: Jeld-Wen
Quotes:
Then Arthur came along. It was post-pandemic and we were ready to grow again. Arthur wasn’t on our radar because it’s further out than we were expecting to go. Ace said, here’s a town that doesn’t have much for retail or hardware. They helped us, the entire way. — Barry Eidt
As long as I had a driver’s license, I was doing after-school stuff. That’s a family business, right there. I’m naturally drawn to the family business. I always have been, since I was a kid. So, being a part of something bigger, I just wanted to do that right away — Barry Eidt
What I bought was a commercial building. It has a hair salon on the main floor and then I live upstairs in the apartment. I have some rental income and I think that’s lucky more than anything. I was not expecting that. And I get the third store. I appreciate it all. — Barry Eidt
Saturday Mar 23, 2024
Saturday Mar 23, 2024
Hardlines President and podcast host Michael McLarney interviews Tanja Fratangeli, Chief People Officer of IKEA Canada.
Listen in for some profitable wisdom.
Key Takeaways:
[:28] Michael welcomes Tanja Fratangeli, Chief People Office at IKEA Canada to What’s In Store. Tanja celebrated her fifth anniversary with IKEA in January. Working at IKEA is exciting for Tanja; it brings together her passions for home design and people. Tanja has worked in people, culture, and human resources for almost 30 years.
[1:30] Before IKEA, Tanja was with Conagra Foods for eight years in a similar role. It’s a different sector but with people, there are a lot of transferable skills. It’s understanding the business and how to apply people strategies to support the business. That’s exciting!
[2:53] IKEA handled the COVID-19 shutdown by changing its business model from in-store to online in 24 hours. Sales of office furniture for homes skyrocketed. Early on, IKEA committed to protecting the jobs of all its coworkers. There was not one layoff during the pandemic lockdowns.
[4:30] IKEA retrained coworkers to support coworkers in an online capacity, through delivery or Click and Collect. IKEA developed and upskilled coworkers online to do new jobs. In addition to training, IKEA focused on mental health. People were concerned about their well-being, and their families’ well-being and wanted to know what was happening.
[6:16] In Canada, the government supported IKEA in its commitment not to lay anyone off. IKEA had the resources to lean in on coworkers’ mental health and provide solutions that would support coworkers in difficult times. IKEA partnered with Maple (owned by Telus) to provide online physician services when it was hard to get into a hospital.
[7:14] IKEA Canada is continuing to focus on mental health challenges around astronomical inflation, the cost of living, mortgages, and putting food on the table. There’s a program for leaders to help understand the struggles of their coworkers. The IKEA coworker benefits package has about $1K dedicated to each coworker for mental health support.
[9:08] One in four Canadians is suffering from bad mental health. It could be anxiety; it could be depression or a number of different challenges. IKEA has invested in training its joint health and safety committees with a mental health/first aid facilitator who can respond in a crisis to complement traditional first aid support. This is an evolving area.
[10:24] Tanja says silent quitting was more common years ago than now. IKEA has not seen too much of it. IKEA has been focusing on turnover and retention strategies such as upskilling and reskilling. IKEA has 21 units across Canada with different turnovers. In Quebec, the turnover was close to 70%. In other areas, it was up to 45%. Now it’s under 30% and dropping.
[13:02] One of Tanja’s most important jobs is to listen to coworkers. From the head office perspective, leaders are there to serve their coworkers. It’s about paying attention to what’s important to the coworkers. Tanja believes that will help her to be successful in connecting with coworkers and have an impact on turnover.
[15:02] IKEA addresses affordability for customers and coworkers. IKEA recently announced an $80 million investment in lowering prices on over 1,500 products during these difficult economic times. More price lowering will be coming. During the holidays, IKEA offers additional employee discounts. IKEA offers subsidized meals. There is a comprehensive benefits package.
[18:10] IKEA owns a lot of the chain locations. Lowering prices is about choice. Going into this fiscal year, IKEA decided it was necessary to lower prices. IKEA wanted to get back to its roots. It has been a challenge in terms of being able to continue to grow.
[18:53] IKEA is about ensuring the right visitation, attracting consumers, and ensuring the volume of visitors to the stores; that’s how IKEA manages low costs. It boils down to choice.
[19:59] Canadians want to shop with purpose-led brands. They expect accountability and transparency from those businesses. They want to find employers and retailers that align with their values. IKEA has always put this in the foreground, who we are and how we operate.
[21:07] About Jeld-Wen’s JWC8500 Series Windows.
[22:06] To help coworkers during this financially difficult time, IKEA provides coworker discounts and additional holiday discounts. IKEA provides competitive compensation. IKEA Canada has introduced some financial services recently for customers and coworkers to support a payment plan for purchases.
[23:27] Tanja says that IKEA is a purpose-led organization with its values and caring about its coworkers setting the company apart. Tanja enjoys her job because people are prioritized together with business. People and business are discussed together. Tanja’s role leading the People agenda at IKEA is extremely fulfilling. IKEA’s genuine care is felt in everything it does.
[25:45] Tanja discusses balancing IKEA’s values against profit. By leading with values and purpose, IKEA chose to support its coworkers, which led to being able to sustain the business. Tanja believes if you take care of your people, they will take care of you. IKEA has made value-led choices of where to invest, and where not to invest.
[27:16] Four years after the pandemic started, IKEA is still feeling the repercussions of that monumental event. It’s about working together, which is one of IKEA’s key values, across all functions, with people at the center, that will drive success.
[28:26] Keeping turnover down is a goal because losing a coworker is a difficult cost to calculate as it is a multi-dimensional loss, including replacement and competence loss. Without keeping turnover sustainably low, it is not possible to make investments in the business.
[28:59] At IKEA, meeting the customer is one of the most important parts of the coworkers’ jobs. Having that competence is critical to IKEA’s success.
[30:12] Having managed compensation strategies for many years, Tanja says wages typically tracked inflation. At the end of 2022, coworkers were getting offers of up to $5.00 more, going to other employers. The wage battle began. Tanja had never seen such an increase in wages: 6% to 7% in retail. Still, it was not in keeping with the inflation rate!
[31:29] To buck the trend of turnover and ensure that IKEA was being competitive, there was no choice but to increase the wages to match. IKEA’s growth and sales were not at the same pace because people didn’t have the discretionary income to spend on home furnishings. Industry growth is not yet in line with inflation but it’s getting closer.
[32:09] Employers need to pay attention to trends so their coworkers are earning competitive wages. The challenge comes in the correlation to inflation. Wage increases are not enough to combat inflation. At a point, wage increases start to impact company profits. Profits are necessary for investments in benefits and upskilling. Coworkers support company growth.
[33:19] It will be interesting to see, over the next year or so, where inflation rates land. IKEA continues to hear from coworkers that it’s still not enough but they recognize that IKEA is taking care of them. Tanja works with coworkers to understand their needs and challenges the management team to continue to make investments to balance values and business.
[35:02] It’s a matter of differentiating IKEA from its competitors. With a purpose-led approach and values, IKEA captures the hearts and minds of its coworkers and they are proud to be IKEA coworkers.
[35:21] Michael calls out to other retailers to get on board to address those pressures for their companies to keep wages up or they will lose a competitive advantage to companies like IKEA, that do.
[36:19] Looking ahead, Tanja says IKEA is going to continue on its affordability journey with customers and coworkers. IKEA is looking at strategies to grow the business for the future and take care of its coworkers. IKEA is identifying priorities now for the next three to five years to ensure the right strategies going forward, keeping IKEA affordable for the many.
[37:30] Michael thanks Tanja Fratangeli, HR Lead at IKEA Canada, for joining us on What’s In Store and sharing insights on how to take care of customers and staff through trying times.
About Us:
What’s in Store is a podcast series of the Hardlines Information Network. Today’s episode is brought to you by Jeld-Wen.
Resources:
Guest: Tanja Fratangeli
Sponsor: Jeld-Wen
Quotes:
With people and culture, there are a lot of transferable skills. You’re dealing with people. There are a lot of commonalities. It’s just understanding the business and how to apply people strategies to support the business. — Tanja Fratangeli
As we all know, there is one in four Canadians now that is suffering with mental health. It could be anxiety, it could be depression, it could be a number of different challenges. — Tanja Fratangeli
One of my most important jobs is to listen to my coworkers. From a service office perspective — that’s what we call our head office — we believe that we’re there to serve our coworkers. It’s about making sure you’re paying attention to what’s important to them. — Tanja Fratangeli
Our customers want to shop and work with purpose-led brands. They expect greater transparency and accountability from those businesses. — Tanja Fratangeli
We wouldn’t have a business without our people. In all conversations at the table, we talk people and business together. That makes me really proud. — Tanja Fratangeli
Wednesday Feb 28, 2024
Wednesday Feb 28, 2024
Hardlines President and podcast host Michael McLarney interviews Pierre Battah, a leading HR advisor in Canada and best-selling author of Humanity at Work: Leading for Better Relationships and Results. Pierre shares HR wisdom and focuses on engagement, which has a direct connection to sales and profitability. Pierre offers great advice on supporting engagement, and why the HR team does not replace the employee’s relationship with the boss.
Listen in for some profitable wisdom on dealing with the people you hire.
Key Takeaways:
[:43] Michael welcomes Pierre Battah, a leading HR advisor in Canada, a regular on CBC Radio and Radio Canada, and the best-selling author of Humanity at Work: Leading for Better Relationships and Results, to What’s In Store.
[2:07] The HR function is often managed “on the fly” by the store manager in smaller businesses. Having an HR center of expertise to step in with pay and benefits, disciplinary issues, and recruitment does not absolve the dealer or store manager from dealing with people every day. With or without HR people, working with people is a messy business.
[3:01] The primary concerns here are sales and profitability. This is about how to create the kinds of conditions with the people working in the shop that the enterprise is successful, customers are happy, and sales and profitability are positive as a result of the people in the shop.
[3:52] The front-line supervisor, owner, or store manager bears the brunt of managing people.
[4:32] If your people are reasonably happy, satisfied, and engaged, that will flow through to your customers. Engaged people show up and are attentive, go the extra mile, and are positive in how they speak to customers, colleagues, and friends. This positive signaling impacts the clients and community.
[6:16] It’s so hard to find people. When we can finally get those folks in the door, if we just pay a little more attention, on a day-to-day basis, we can engage our folks and hang onto them a little longer
[7:21] Recruitment, safety, training, onboarding, and all functions of HR are necessary. All indicators suggest that if we pay attention to engagement, we’ll positively impact the other roles of HR.
[8:03] The goal of managing a team is engagement. There’s a straight-line relationship between people being engaged and profitability, sales, fewer accidents, and less theft. Whether or not you have HR leads or advisors, it’s how we manage day-to-day that makes the most difference.
[9:10] About 30% of our folks are “born engaged.” About 20% of our folks see a job as a transactional relationship and won’t be engaged. If we do the right things, we have a shot to engage the remaining 50% of people. The most important relationship employees have is with their boss. If daily interaction is reasonably positive, the employee will likely become engaged.
[10:56] It comes down to small things. For example, clarity in what’s expected overshadows everything else. Be absolutely clear on the priority of the day; the manager or supervisor checks in with the employees to make sure the priority is understood. That has a huge impact on how people will do their jobs.
[12:28] There’s a handful of things that if you keep them present in how you interact with your people, you stand a good chance of having people give you their best, show up, and be positive when they’re there.
[13:07] Revisit what is expected frequently so there is never any doubt about what’s expected. Pierre shares an example.
[14:01] Catch people doing something right, and in the moment, make a quick comment about it. Don’t just say “Good job!” but tell what was good and why. That puts credits in the bank, so when you do have to have a corrective conversation, you’ve got a fair amount of goodwill in place, already.
[16:20] Are your people clear on what’s expected? Are you giving them positive feedback when they’re doing a good job? Do you listen to them? Does their opinion matter to you? Do you care about them as human beings? Do you provide them with learning opportunities? The check-in is a wonderful opportunity to do all the things that engage people.
[17:19] Pierre explains the key difference between checking in and checking up. Both are necessary activities. Checking in is a brief one-to-one conversation with everybody, maybe at the start of the shift. A morning meeting is great, but you still need to check in, one-to-one.
[20:08] Yes morning meetings can help, staff meetings can help, but If I can’t convince you to go one-to-one, then as you’re managing by walking around, slow down to say hello, ask people how they’re doing, how their day is going, and hear them out a little bit.
[20:46] People need to be seen, they need to be heard, they need to be valued, and they need to be encouraged. That’s what we’re working toward.
[21:26] Listening to what people have to say is important. Salespeople are gifted active listeners. They understand the simple power of asking simple, open-ended questions. Make good eye contact and nod with folks as they’re speaking, be present as they are sharing whatever they want to share, and do not interrupt. Be curious about what’s going on.
[24:16] If you own too many stores to know everyone by name and family, just be present and curious about the person you are talking to. People will remember that.
[25:46] Pierre shares a case study of engineers asking advice from hourly workers in a mine. Even though the advice was not used, the workers felt honored to be asked. When they were told why the advice was not used, it helped them learn more about the operation.
[27:23] People engage when they feel heard and that their opinions matter. There is enormous value in asking for their opinion.
[28:17] People want to know if they are meeting expectations. Managers have an obligation to catch people doing things right and have mostly positive conversations but also take the less frequent opportunity to correct when needed. Pierre shares a framework for that corrective conversation. To conclude the correction, move into problem-solving mode and encouragement.
[31:50] Michael thanks Pierre Battah for the great instruction and invites listeners to replay the last few minutes to capture all the points. Michael thanks Pierre for joining us on What’s In Store. Thank you to all of our listeners, wherever you are.
About Us:
What’s in Store is a podcast series of the Hardlines Information Network. Today’s episode is brought to you by Jeld-Wen.
Resources:
Humanity at Work: Leading for Better Relationships and Results, by Pierre Battah
Guest: Pierre Battah
Sponsor: Jeld-Wen
Quotes:
The primary concern here, of course, is sales and profitability. Let’s get down to it. … This is about how do I create the kinds of conditions with the people in the shop that I recruit and retain, in such a way that the enterprise is successful? — Pierre Battah
By and large, it’s the people on the floor, as front-line supervisors, managers, or owners, who are bearing the brunt of having to manage people. — Pierre Battah
Whether or not you have HR leads or advisors, how we manage day-to-day makes the most difference. — Pierre Battah
The absence of some one-on-one connection with my folks is a great way to disconnect them, and disconnecting means we’re on our way to disengagement here, and when we’re on our way to disengagement, we’re potentially on our way to a departure. — Pierre Battah
We’ve learned that people need to be seen, they need to be heard, they need to be valued, and they need to be encouraged. That’s what we’re working toward, ultimately. — Pierre Battah
Wednesday Jan 31, 2024
Wednesday Jan 31, 2024
Hardlines Editor and podcast host Steve Payne interviews Jest Sidloski, Vice President of Marketing and Customer Experience for Peavey Industries. Steve and Jest discuss Peavey Mart, Peavey Industries, Ace Canada, and the different channels of lumber, rural farm, and urban hardware. They discuss the Hardlines Young Retailer of the Year, Barry Eidt. Jest tells about employee ownership opportunities and the value of the Ace brand in Canada as well as the difference between Peavey Mart, Ace Canada, and competing brands.
Key Takeaways:
[:28] Steve introduces and welcomes Jest Sidloski, Vice President of Marketing and Customer Experience for Peavey Industries in Red Deer, Alberta. Peavey Industries goes to business under the well-known Peavey Mart, and since 2020, also has had the license in Canada for the Ace banner.
[1:41] Jest shares the evolution of Peavey Mart. Peavey Mart started in 1968 under the National Farmway banner as an agriculture supply store for rural communities across Western Canada. Peavey Mart still serves the rural farm customer, ensuring that customer knows that Peavey Mart is still that brand for them. At the same time, farm life has changed in the last decades.
[2:35] Peavey Mart is now in urban areas as well. They have two locations in Winnipeg and a location in Edmonton. The stores range in size from thousands of square feet to nearly 50 thousand square feet. Each of those markets targets either a rural audience, an urban audience, or a hybrid audience.
[3:38] Before bringing Peavey Mart to Atlantic Canada, Peavey Mart acquired TSC Stores in 2016. In 2021, they rebranded the Ontario TSC stores to Peavey Mart. Peavey Mart is a 100% Canadian-owned successful retail store.
[4:26] Peavey Industries is the parent company of Peavey Mart. Doug Anderson is the President, CEO, and Owner. They are based in Red Deer, Alberta. Doug Anderson opened the company up to employee ownership, with every employee eligible to buy into Peavey Industries. There is a buy-in opportunity once a year. Ownership gives employees pride in the organization.
[7:37] Peavey owns about 100 Ace Hardware Stores in Canada. Some are not bannered officially as Ace but are still owned by Peavey Industries.
[9:06] Jest congratulates Barry Eidt of Arthur, Ontario Ace for winning the Hardlines Young Retailer of the Year at a conference in Whistler. Ace is one of the world’s most recognized retail brands. There is a lot of opportunity in Canada for retailers like Ace that aren’t strictly lumber and building. There are also Farm and Ranch Ace Canada and your typical small hardware store.
[9:55] The Ace Canada difference from some of the other brands is that it doesn’t have to be everything. Each market is going to dictate what should be successful or what wouldn’t be. Each Ace Canada is different, similar to each Peavey Mart, and they all take the lifestyle of that community. Barry Eidt has had great success with the Farm and Ranch version of Ace Canada.
[10:38] Jest heard a few people at the conference in Whistler say that Ace is the best-kept secret and they like it that way. It’s not over-saturated. The marketing is not 24/7, it just works. It has the identity and it allows them to be a little bit different than the competitors. That speaks to the dealers that were in the room at the conference.
[11:00] Peavey Industries has private labels and is part of several buying groups. Ace Canada has a private label. Ace dealers have a remarkable opportunity to be involved in both sides of that.
[11:17] Steve mentions that Peavey Industries is a unique company, with its Peavy Mart brands and Ace brands. Steve thanks Jest Sidloski for joining the Hardlines What’s In Store podcast and telling about Peavey Industries, Peavey Mart, and Ace Canada.
About Us:
What’s in Store is a podcast series of the Hardlines Information Network. Today’s episode is brought to you by Jeld-Wen.
Resources:
Guest: Jest Sidloski
Sponsor: Jeld-Wen
Quotes:
In 2021, … we decided to rebrand the Ontario TSC brand to Peavey Mart. Peavey Mart is a truly 100% Canadian-owned successful retail store. — Jest Sidloski
The Ace Canada difference from some of the other brands is that it can be a certain channel, it doesn’t have to be everything. Because we know that each market is going to dictate what should be successful or what wouldn’t be. — Jest Sidloski
I heard a few people say at the conference that Ace is the best-kept secret and they like it that way. It’s not over-saturated. The marketing is not 24/7, it just works. It has the identity and it allows them to be a little bit different than the competitors. — Jest Sidloski
Thursday Jan 11, 2024
Thursday Jan 11, 2024
Hardlines Vice President, Publisher, and podcast host David Chestnut interviews Liz Kovach, President of the WRLA. Liz speaks about what the Let’s Go Build program can mean for Western lumber and building retailers and manufacturers, and why the WRLA has invested so many resources into it. Now it’s up to the members to share it!
Key Takeaways:
[:30] David welcomes Liz Kovach, President of the WRLA, to What’s In Store.
[1:23] Liz tells how the Let’s Go Build program began. Seven years ago, the WRLA started talking about its aging demographic and retaining the intellectual capital of those approaching retirement. They started a Next Gen program but rebranded it to shift the focus.
[2:03] They were getting close to launching it when COVID-19 hit. They had to figure out how to survive and add value to their members when there were more questions than answers. So they parked the program. What they learned during the pandemic helped shape the program into what it is today and develop the tagline, “Let’s Go Build.”
[2:39] Let’s Go Build is the marketing arm of the WRLA’s new strategic plan. The first pillar of the plan is to attract talent to the industry.
[2:48] When asking for government funding to support the program, they needed hard data to support them. In 2021, the WRLA was successful in having a home renovation tax credit implemented in Saskatchewan because they had invested in a supporting case. They spent the money to get data for the industry where there was very little data.
[3:26] The WRLA spent much time connecting with the government. They needed a brand to put in front of them to showcase facts and data and they came up with “Let’s Go Build.” They conducted a labor study with the funding support of the Alberta government.
[3:49] Some statistics from the study challenged their thoughts. One surprising fact is that 63% of the people who come into the LBM industry leave, which is too high, added to the 20% who are going to be retiring in the next four years. A program like Let’s Go Build is necessary. They need to promote the industry to job seekers and the public aggressively.
[5:10] The WRLA plans to dig deeper into the labor issue to find how the 63% that leave the industry are divided between the retail and vendor-manufacturer sides and whether any of the 63% return to the industry after leaving it. They will dive deeper into this in the next phase of their labor study.l At the moment, they are taking the data they have to shape their programs.
[5:53] One of the other key recommendations that came out of this study is that we need to look at how we’re training and developing our staff. What type of professional development is there? Not everyone knows where lumber and building materials come from. During the pandemic, we learned a lot about logistics. We needed to educate our customers on the supply chain.
[6:52] One of the things the WRLA is working on is establishing an onboarding program that is standard for members across all the provinces, giving basic information. Next year, when the WRLA launches its member renewal, the new onboarding programs will be available. There is a terminology course to teach industry jargon and the basics of the building materials they sell.
[8:25] Liz mentions different sizes of lumberyards and how they fit their communities. Not everyone has a big marketing budget. Let’s Go Build is a turnkey marketing campaign. The biggest thing members can do is take the program and share it. Liz pictures a snowball rolling down a hill. The more members engage with it, the more people are going to see it.
[10:01] Liz and Chris Allinotte of WRLA have worked very closely on Let’s Go Build. Everybody at WRLA has bought into taking Let’s Go Build to the next level. Liz gives credit to committee leader Micah Flaig of Lumberworld in Victoria. The board of directors supports Let’s Go Build.
[11:24] The WRLA deals both with provincial governments and the federal government. It’s important to have representation at all levels of government. They do their best to represent at the municipal level and the provincial level. They want Ottawa to know that when people move into the country, they can have a great quality of life in the prairies.
[12:19] Liz wants to make sure that Ottawa sees the western lumber and building community as a relevant partner and that there are so many members in rural communities that are building to welcome that immigrant population.
[12:46] To grow the Let’s Go Build program nationally means to continually share the message. The WRLA invests 25% of its budget for the Let’s Go Build campaign into the curriculum. It’s a huge investment for them but it’s a necessary investment for the industry. The more people share the message, the more it can grow nationally.
[14:23:] David congratulates Liz on the WRLA Showcase celebrating its 30th anniversary on January 17‒19, 2024. The theme of the conference and the showcase is Framing the Future. There are great events in store! There are good professional development opportunities for attendees. Lauren Johnson is the keynote speaker at the Thursday a.m. kickoff.
[16:03] David thanks Liz for being on What’s In Store!
About Us:
What’s in Store is a podcast series of the Hardlines Information Network. Today’s episode is brought to you by Jeld-Wen.
Resources:
Guest: Liz Kovach
Showcase Keynote Speaker Lauren Johnson
Sponsor: Jeld-Wen
Thursday Dec 21, 2023
Thursday Dec 21, 2023
Hardlines Associate Editor and podcast host Geoff McLarney, and Senior Editor Steve Payne, interview Lisa Bergeron, Director of Business Development and Regulatory Affairs at Jeld-Wen. Lisa tells about changes to the National Building Code coming in 2025, and how they impact fenestration. The energy requirement will be the same for new construction and alterations to existing buildings, leveling the playing field and protecting Canadians.
Listen in for some important details of these changes to the National Building Code.
Key Takeaways:
[:42] Geoff welcomes Lisa Bergeron, Director of Business Development and Regulatory Affairs at Jeld-Wen, to What’s In Store.
[1:09] There are changes in the National Building Code, effective in 2025, that will impact fenestration. To mitigate the risk of overheating, there will be solar heat-gain caps on fenestration based on the window-to-wall ratios in homes without mechanical cooling. There are proposed trade-offs available to obtain energy conservation points to qualify for higher tiers.
[1:52] Climactic data are being updated for future projections. Certain localities will have more stringent performance requirements and changes in flashing detail for the fenestration products in those localities.
[2:10] A new section will be introduced on alterations to existing buildings, also known as the long-awaited renovation code.
[2:55] Provinces will be able to set thresholds at different tiers. British Columbia has announced that they will be at Tier 3. Energy conservation points are important. The better the window, the more conservation points it will give a builder that they can use to build to a higher tier. Jeld-Wen has windows that will help builders achieve that through the dealer network.
[4:29] The section on alterations to existing buildings has long been awaited by our industry. The structural requirements for fenestration won’t be required for existing buildings as they are for new buildings. The energy requirement will be the same for both new and existing buildings. The introduction of a renovation chapter in the code is a step toward leveling the playing field.
[5:44] Geoff et Lisa discutent du fonctionnement du déploiement du code national de construction entre les provinces et le pays. (Geoff and Lisa discuss how rolling out the national construction code will function between the provinces and the nation.) Il s’agit véritablement d’une tâche monumentale pour les provinces. (It is truly a monumental task for the provinces.)
[9:23] This year, Jeld-Wen launched the Jeld-Wen 8500 Series, a high-performance casement, awning, and fixed platform, with a U value of .82. In the 2025 code those numbers will help builders obtain energy conservation points. Jeld-Wen uses proven and affordable technology. From an energy perspective, it’s a top performer. It can be serviced from the inside.
[10:22] Jeld-Wen also designed a patent-pended cantilever hardware cover with a section to integrate a flex-screen without a screen bar that gives you an unobstructed view.
[10:48] This window was designed as a backbone to a versatile platform. In March of 2024, a hybrid 8500 Series window adds an external aluminum cladding to give depth to an already sturdy product. The hybrid will allow the melding of architectural aluminum cladding with energy-efficient vinyl.
[11:40] Later in 2024, Jeld-Wen will introduce a wood interior to the 8500 platform window and in 2025, an interior aluminum cladding will be available, as well, all with the same energy efficiency of the vinyl version launched in 2023.
[11:58] Geoff asks Lisa Bergeron for her last words on Jeld-Wen, which she supplies in French.
[12:43] Geoff thanks Lisa Bergeron for being with us on What’s In Store. Thank you to all of our listeners, wherever you are.
About Us:
What’s in Store is a podcast series of the Hardlines Information Network. Today’s episode is brought to you by Jeld-Wen.
Resources:
Guest: Lisa Bergeron
Sponsor: Jeld-Wen
Wednesday Nov 01, 2023
Wednesday Nov 01, 2023
Hardlines Assistant Editor and podcast host Geoff McLarney, and Hardlines Editor Steve Payne, interview Richard Darveau, President of the Association québécoise de la quincaillerie et des matériaux de construction (AQMAT). Richard recounts the history of AQMAT and the trends of both AQMAT in the Province of Quebec and Well Made Here — Bien Fait Ici in all the provinces.
Key Takeaways:
[:28] Geoff introduces Richard Darveau. Richard is the President of AQMAT, which reunites the hardware and building materials industry in Quebec. The topic is the story of AQMAT.
[:49] Richard tells the history of AQMAT, created in 1940. At first, it was almost all males and only for retailers. With time, it included suppliers and vendors. Today AQMAT represents equally the interests of independent dealers, corporate stores, buying groups, and suppliers.
[1:32] AQMAT is active on five levels: the Community, with galas and golf tournaments; AQMAT College, training thousands of employees; Information, being oriented toward journalism with the AQMAT Magazine and a newsletter; and Real Estate, buying and selling stores. AQMAT owns its building.
[6:36] About Bien Fait Ici — Well Made Here. The idea started as Quebec Frontiers. AQMAT didn’t want to be out of bounds with the other provinces. But manufacturers refused to change their packaging for a provincial market and insisted on the full Canadian market. So AQMAT chartered a nonprofit organization at the federal level, Well Made Here — Bien Fait Ici.
[8:06] Well Made Here — Bien Fait Ici, started on October 21st, 2018. Because of COVID-19, Richard feels it is still in the startup phase. So far, it’s going very well. The idea is to have customers and contractors consider Candian-made products that satisfy the various codes of construction, health, and security standards for the workers who install those materials.
[8:49] Well Made Here — Bien Fait Ici products need to come from a plant on Canadian territory, and be in phase with Canadian construction codes and any other Canadian quality standards. So far, they have 7,000 products in the program, coming from about 120 suppliers. The suppliers don’t have to be Canadian-owned but operate on Canadian territory.
[9:47] The sandy brown color of the Well Made Here — Bien Fait Ici logo does not relate to the color of any buying group and it is a color found in many homes and materials. The logo rapidly conveys that it is about homes and Canada but it’s not the Canadian flag.
[11:27] The structure of the industry has changed over the last 15‒20 years. One merchant used to operate one store. There are about 900 stores in Quebec, but they are now owned by about 350 different companies. The consolidation will continue. Some regional players are expanding, for example, Patrick Morin and Canac. At least 10 merchants have five stores or more.
[13:24] There has been more consolidation of stores in Quebec than in some other provinces. Richard mentions other acquisitions and consolidations. People are moving between brands or banners.
[14:34] Geoff thanks Richard Darveau for joining What’s In Store and sharing what’s going on with AQMAT in the Province of Quebec.
About Us:
What’s in Store is a podcast series of the Hardlines Information Network. Today’s episode is brought to you by Jeld-Wen.
Resources:
Steve Payne
Guest: Richard Darveau
Sponsor: Jeld-Wen
Quotes:
AQMAT has changed over the decades. We were created in 1940. It was almost all males that were members and it was only for retailers. With time, we understood that the presence and participation of the suppliers were as important. — Richard Darveau
Well Made Here - Bien Fait Ici products have to come from a plant on Canadian territory and be in phase with Canadian standard construction codes and any other Canadian quality standards. So far, they have 7,000 products in the program from about 120 suppliers. — Richard Darveau
The sandy brown color of the Well Made Here - Bien Fait Ici logo does not relate to the color of any buying group and it is a color found in many homes and materials. The logo rapidly conveys that it is about homes and Canada but it’s not the Canadian flag. — Richard Darveau
Wednesday Sep 27, 2023
Wednesday Sep 27, 2023
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:
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
Wednesday Sep 06, 2023
Wednesday Sep 06, 2023
In this episode of What’s in Store, we talk to pioneering Home Depot executive Jim Inglis, author of Breakthrough Retailing: How a Bleeding Orange Culture Can Change Everything.
Inglis looks back on the early years of the company and the skepticism it was met within the industry. He also delves into Home Depot’s entry into Canada through the acquisition of Aikenhead’s.