What Are American Big Boxes and Co-Ops Up to in Canada?

Just within the past six months or so, three American home improvement companies have modified and begun expanding their approaches to selling within Canada – drawing attention to the Canadian home improvement market, which has an ever-expanding competitive American position within it.

On Oct. 1, Orgill finalized a deal to buy the assets of a Canadian distribution company, and in February, Lowe’s announced its pending purchase of Canada’s RONA, Inc. Ace Hardware, which currently has a licensing agreement with RONA, plans now to partner with Lowe’s in its expansion in the country.

With those changes happening, taking a look at the U.S. competitive presence in the Canada market makes sense. Here’s a roundup of what the biggest American home improvement players are doing in the country:

Ace Hardware Corp., Oak Brook, Illinois

• Ace has 55 member stores in Canada, with a goal of having more than 100 total locations by the end of 2016, and more moving forward. Lowe’s will own the licensing rights to use the Ace Canada branding once the big box closes a deal to buy Ace’s Canadian big-box partner, RONA, this year.

Do it Best Corp., Fort Wayne, Indiana

• Do it Best doesn’t have any stores in the country, but the Indiana cooperative has a buying partnership with Canadian home improvement cooperative Home Hardware, which is dealer owned and has about 1,100 stores. The partnership gives both co-ops greater buying power.

The Home Depot, Atlanta

• The Home Depot operates 182 stores across Canada. Stores average more than 100,000 square feet. Stores stock as many as 40,000 home improvement products, tailored to the communities they serve.

Lowe’s, Mooresville, North Carolina

• Lowe’s Canada has 40 locations in the country. The company is working to finalize a deal to buy Canadian big-box retailer RONA, which will expand Lowe’s foothold in Canada by about 500 locations, as well as give Lowe’s the licensing rights to use Ace Canada’s brand.

Orgill, Inc., Memphis

• In October 2015, Orgill bought the assets of Chalifour, a distribution arm of Canada’s TIM-BR MART Group, a member-owned buying group headquartered in Calgary, Alberta. Through the purchase, Orgill gained a London, Ontario, distribution facility and expanded Orgill’s selling and distribution reach in Canada.

True Value Co., Chicago

• True Value has about 40 Home & Garden Showplace members in Canada, which are also members of the Canadian co-op, Garden Centre Group.