It’s brewed at the hardware store in Quebec. While Canac is growing rapidly due to its low prices and new store openings, Groupe BMR has just joined the ARENA Alliance, which ranks this European organization 4the World ranking in terms of purchasing power in the hardware sector.
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“The purchase will bring profits and that will allow us to be much more aggressive in the market. We are starting to open the books and see the possibility of significant savings for our customers,” explains Alexandre Lefebvre, CEO of Groupe BMR from Europe, where he signed the final details of the alliance earlier this week.
With the integration of BMR, ARENA now has eight major hardware conglomerates purchasing a combined $23.5 billion.
“Better customer service, better quality at an unbeatable price: this is the positioning that we will make. I don’t think we have a choice because the market is very competitive and we can’t afford not to be the best,” says Mr. Lefebvre.
ARENA was already married to RONA in the early 2000s until it was acquired by Lowe’s in 2016. Joining the alliance gives BMR better antennas on deliveries from Europe and Asia.
Alexandre Lefebvre, CEO of Groupe BMR Maxime Gousse Photo
be hunted
For Richard Darveau, President of the Quebec Hardware and Construction Materials Association (AQMAT), BMR had a duty to create value for its customers in a very tight market.
“I think they understand that the market is changing and that we need to act differently to stay in the game and even increase our market shares,” he said.
Groupe BMR, a subsidiary of Sollio Groupe Coopératif, brings together 275 home improvement centers and hardware stores in Quebec, Ontario and the Maritime provinces with sales in excess of $1.5 billion. This makes it the largest brand in Quebec. But Canac is a close competitor with just 32 stores and half the space, with sales of $1.4 billion, according to AQMAT data.
“In the hardware arena, Canac is no longer the little guy who bit everyone’s pants because the company has gained significant market share,” says Richard Darveau. According to their data, there is only one difference between BMR and Canac in terms of market share in Quebec.
BMR claims to have increased its revenue by $800 million over the past six years.
“I don’t think there’s a player from Quebec who has done that. It’s enormous. Even in Ontario there is no player that has seen such strong growth,” says the CEO of BMR.
BMR’s growth is primarily due to the integration of independent hardware stores, although the number of points of sale has decreased compared to the previous year. The recent opening of the H. Dagenais renovation centers in the Laurentians represents a significant addition. Inflation also allowed Groupe BMR to increase its sales, but its market share fell slightly, from 14.45% in 2021 to 13.64% in 2022.
Alexandre Lefebvre, CEO of Groupe BMR, right, during the signing with the ARENA Alliance. Photo courtesy of Groupe BMR
Thanks to the purchasing power gained through the merger with ARENA, the implementation of the price reductions at BMR is already beginning, but consumers will benefit from this, especially from the autumn.
BMR group
- 275 points of sale
- $1.5 billion in sales
- 13.64% of Quebec hardware market share
- 8000 employees
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