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Top Stories from our weekly HARDLINES e-Newsletter
Vol. xix, no. 20, May 20, 2013
RONA will hold on to its remaining
big boxes
BOUCHERVILLE, QC — RONA says it will not sell off any more of its big box stores. However, it would not reveal just how it intends to improve sales at these stores, as many of them, especially in Southern Ontario and British Columbia markets, are underperforming. Five big boxes were closed...
Home Hardware's five-year plan pays record dividends
TORONTO — At a breakfast seminar hosted by the Canadian Hardware and Housewares Manufacturers Association last week, Home Hardware's executive vice president and COO Terry Davis shared details about where Home Hardware started and how its strategic plan focused the company for more aggressive growth.
Davis outlined that the goal of Home’s 2008-2012 strategic plan was aggressive growth spurred by...
Davis outlined that the goal of Home’s 2008-2012 strategic plan was aggressive growth spurred by...
Cold weather impacts RONA's first-quarter results
BOUCHERVILLE, QC — RONA's first quarter saw revenues dip 0.5% to $929.4 million, a decline of $4.6 million from the same quarter last year. Same-store sales were up...
Sears Canada introduces new Hometown Store format
Four retailers account for more than 50% the industry: exclusive report
SPECIAL REPORT — In 2011, four retailers led the Canadian hardware/home improvement industry and their sales accounted for more than half the industry's sales. RONA inc., Home Depot Canada, Home Hardware, and Canadian Tire together generated over 50% of sales made in this industry.
These are just some of the findings in the Hardlines Annual Retail Report, which takes an in-depth look at how the industry is changing and what we can expect in the future.The Annual Retail Report further reveals that sales in building centres and big boxes were in step with the industry average, showing a 2.1% increase. Big boxes account for just...
(For a free sample of the Hardlines Annual Retail Report, click here! )
(For a free sample of the Hardlines Annual Retail Report, click here! )
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McMunn & Yates buys up McDiarmid assets
WINNIPEG — McMunn & Yates has bought up most of the assets of home improvement chain McDiarmid Lumber Ltd. According to the Winnipeg Free Press, the deal with Dauphin, MB-based McMunn & Yates includes all the McDiarmid stores, except one in Winnipeg and the location in Sioux Lookout, ON.
Full story in the next important issue of HARDLINES!What? You don't receive the Hardlines e-Newsletter every Monday? Click here to fix that!
BREAKING: Lowe's gains disappoint
MOORESVILLE, NC — Lowe's Q1 saw net income rise just shy of 3% but its stock nevertheless lost value as revenues, including same-store revenue, dropped. Wall Street analysts predicted a share price of 51 cents but instead shares fell by more than 4% in premarket trading this week. Full story in the next awe-inspiring issue of HARDLINES!Not getting your own weekly copy of HARDLINES? You're only one click away!
Building materials sales flat in March
OTTAWA — Retail sales were flat in March, holding at $39.5 billion, reports Stats Canada. After removing the effects of price changes, particularly lower gasoline prices, retail sales in volume terms rose 0.7%. Sales at building material and garden equipment and supplies dealers edged up 0.1%.
Home Depot posts positive first-quarter results
ATLANTA — Despite harsh weather, the recovering housing market in the U.S. helped boost Home Depot's first-quarter results. The giant retailer reported sales of $19.1 billion for the first quarter of fiscal 2013, a 7.4% increase from the first quarter of 2012. (The first quarter of 2012 had an extra week that added approximately $574 million to sales.) On a like for like basis, same-store sales for the quarter were positive 4.3%, and up 4.8% for its U.S. stores. Net earnings were up 20% to $1.2 billion.
Techniseal named company of the year
MONTREAL — The Montreal South Shore Chamber of Commerce's 29th annual Prix Excellence awards honoured Techniseal Inc. as "best company of the year." A leader in the production of polymeric joining sand, the Candiac, QC-based company also took home hardware in the manufacturing category.
Target ups ante with Canadian brand
TORONTO — Target is upping its Canadian content by teaming up with Roots Canada's Beaver Canoe brand to create home décor products with a "nostalgic" twist. Check out ctvnews.ca
e-commerce best defence against American invasion, merchants told
TORONTO — Canadian retailers will have to ramp up online offerings in order to contend with American competitors and offset cross-border shopping, industry members heard this week. Check out financialpost.com
Wal-Mart Q1 results fall short
BENTONVILLE, AK — Wal-Mart reported a weaker showing than expected in its first quarter, with shares dropping about 2% and same-store sales down 1.4% Factors specific to the quarter were at play: a late-running winter delayed consumer interest in outdoor projects, and a delay in the issuance of U.S. income tax refunds affected spending habits. If the two-week delay is adjusted, sales would be flat. Full story at usatoday.com
Home builder index up in May
WASHINGTON — The National Association of Home Builders/Wells Fargo index of home builder confidence showed industry sentiment looking up in May. The index, which hasn't surpassed a rating of 50 since April of 2006, stepped cautiously toward the mark, rising from to 44 from 41 (adjusted from original reports of 42). Find out what it bodes for the housing recovery at reuters.com
U.S. building permits rise in April
WASHINGTON — Building permits in April were at a SAAR of 1,017,000, up 14.3% from the revised March rate and up 35.8% from April 2012. Housing starts in April 2013 were at a seasonally adjusted annual rate of 853,000, down 16.5% from the revised March estimate but up 13.1% from April 2012.
Personnel shuffle just part of RONA's re-org
BOUCHERVILLE, QC — RONA has a new CEO, a revamped board, and a senior VP devoted to operational efficiency, but will still have to weather U.S. competition and less-than-enthusiastic consumer spending in the months to come if it is to realize its goal of positioning itself as a lean, mean retail company, reports theglobeandmail.com
Shortlist leaked in Wal-Mart CEO succession
BENTONVILLE, AK — Wal-Mart CEO Mike Duke has indicated no plans for his departure yet, but company brass are already looking to identify potential successors, insiders say. The favourites? International chief Doug McMillon and U.S. operations head Bill Simon. Duke, 63, is the company's fourth CEO since Sam Walton took the company public in 1970 with himself at the helm. Read on at bloomberg.com
Unemployment flat in April
OTTAWA — Canada's unemployment rate in April stayed put at 7.7%, where it had fallen from the previous month, amounting to a 0.9% increase year over year, according to the latest StatCan numbers. Total hours worked rose 1.5%
U.S. retail sales tick up in April
WASHINGTON — The U.S. Census Bureau announced that advance estimates of U.S. retail and food services sales for April, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $419 billion, an increase of 0.1% from the previous month, and 3.7% above April 2012.
Fewer "improving" housing markets: U.S. study
WASHINGTON — The number of U.S. metro areas with housing markets on the rise fell to 258 in May, down from 273, according to the National Association of Home Builders/Wells Fargo index. Check out thehill.com
WORLD HQ, TORONTO — The market shares and sales of all the major banners, in all the Provinces and Territories, plus the market shares of the provinces, are now available in our latest Hardlines Market Share Report. This important Report now features 2010-2011 year-over-year data with our forecasts for 2012 and beyond.Housing starts down in April
OTTAWA — Housing starts in Canada were trending at 182,754 units in April compared to 188,369 in March, according to Canada Mortgage and Housing Corporation (CMHC). The standalone monthly SAAR was 174,858 units in April, down from 181,146 in March. The SAAR of urban starts decreased by 2.5 per cent in April to 153,528 units, led by a 3.5 per cent decline in multiple urban starts to 93,469 units. Single urban starts remained relatively unchanged from March at 60,059 units in April.
Construction thaw boosts CanWel Q1 numbers
VANCOUVER — CanWel's Q1 revenues increased to $162 million, compared to $156 million in the first quarter of 2012. Better conditions for construction materials contributed the bulk of the gains, with net earnings of $1 million up from $900,000 from last year.
Hardware show owner buys Mexican show
LAS VEGAS, NV — Expo Nacional Ferretera, a major hardware show in Mexico, has been acquired by Reed Exhibitions, which owns the National Hardware Show. The Mexican event showcases more than 1,300 exhibiting companies occupying 50,000 square metres, and 80,000 buyers from 30 countries who gather in Guadalajara.
Soft openings for 24 western Target stores
MISSISSAUGA, ON — Target has announced the soft opening dates for its first stores in Western Canada, including 22 locations opening on May 7 and two locations opening on May 14. The soft openings include stores in British Columbia, Alberta and Manitoba and follow the opening of 24 stores across Ontario. As previously announced, Target plans to open 124 stores across Canada throughout 2013.
Chalifour wins silver Communicator Award
LONDON, ON — Chalifour Canada took home silver in the category of Integrated Campaigns in the Communicator Awards, which honour creative excellence in small firms. Some 6,000 entries represented participants from across North America and worldwide.
RONA welcomes Brisebois as executive VP
BOUCHERVILLE, QC — Alain Brisebois will join RONA as executive vice-president and chief commercial officer, as the firm continues to restructure for greater efficiency. He previously served in VP positions at Metro and Couche-Tard.
Newell Rubbermaid will sell Hardware assets
ATLANTA — As part of its ongoing efforts to reduce overhead and improve margins, Newell Rubbermaid will liquidate its Hardware and Teach Platform holdings. Among the brands affected are Bulldog, Ashland, and Amerock. CEO Michael Polk's approach has paid off so far, with shares gaining by 19% this year.
IN MEMORIAM: Bob Mondy has passed away
We sadly pass along the news that Robert G. (Bob) Mondy passed away on May 1. Bob played a major role at Sexton Group in Winnipeg, when owner Ken Sexton brought Bob on as general manager when the group was founded in 1985. Bob was instrumental in the growth of the Sexton Group and an icon in the industry until he retired in 2009. A man who combined fairness and kindness in both personal and professional matters, He was also a great supporter of HARDLINES from its inception.
Castle launches 50th anniversary promotion
MISSISSAUGA, ON — Celebrating its 50th anniversary this year, Castle Building Centres Group has developed a promotion to commemorate the milestone. Castle dealers across the country will be offering their customers the chance to win $50,000. Called "The Castle 50K Giveaway," customers can enter by filling in a ballot at participating dealer locations.
Allroc parent's profits up on smaller revenue
CALGARY — Superior Plus Corp., the diversified business with divisions in energy, chemicals and construction materials, enjoyed an improvement in its gross profit in the first quarter, even as overall revenue shrank. Revenue dipped to $1.05 billion from $1.07 billion, while gross profit was up to $253.1 million, from $238.1 million. In its Construction Products Distribution division, gross profit was slightly higher than a year ago, going from $44.0 million to $45.1 million... full story in our weekly edition of HARDLINES!
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U.S. construction falls in March
WASHINGTON — The U.S. Census Bureau announced that construction spending in March was $856.7 billion seasonally adjusted, a drop of 1.7% from February. Private construction decreased the least, at a rate of 0.6%, while public construction fell 4.1% from February.
Spectrum Brands suffers loss on HHI acquisition
MADISON, WI — Spectrum Brands, which owns brands ranging from Rayovac to Remington, reported a net loss in its second quarter of $41.2 million, deepening from a net loss of $28.7 million a year earlier, due to the $1.4 billion acquisition last year of Stanley Black & Decker's hardware and home-improvement business (HHI).
U.S. existing-home sales down slightly in March
NEW YORK — Existing-home sales eased in March from inventory constraints, which continued to pressure home prices, according to the National Association of Realtors. Total existing-home sales declined 0.6% to a seasonally adjusted annual rate of 4.92 million in March from 4.95 million in February, but remain 10.3% higher than the 4.46 million-unit pace in March 2012.
Castle welcomes Delaney as Nfld. manager
MISSISSAUGA, ON — Bob Delaney will join Castle Building Centres as the firm's new business development manager for Newfoundland & Labrador. Previously, he managed his family's lumber dealership in Stephenville, NL. Founded in 1956 by Delaney's father Jerome, the store joined the Castle banner in 1978.
Tembec posts Q2 gains
in lumberMONTREAL — Despite overall losses, Tembec Inc. saw sales go up in its forest products division, largely owing to higher selling prices for lumber. Lower shipments partially offset the gains... full story in the next edition of our weekly HARDLINES e-newsletter!
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More is more in Menards
border surgeDETROIT — As smaller formats trend among large retailers, privately-owned Menards is keeping big boxes alive, with a rush of expansion in the Metro Detroit area, close to the border with Windsor, Ontario. The firm's first Metro Detroit store, opened in February, is already being joined by several other area locations. The new stores are almost double the typical Home Depot or Lowe's layout. Check out detroitnews.com
Shoppers Drug cautiously optimistic on latest results
TORONTO — Shoppers Drug Mart saw a relatively flat Q1, with share prices edging up by three cents, in line with analyst expectations. Same-store sales rose 2.5% Shoppers will now face the task of holding its progress against Target, which arrived shortly after the quarter's end. Get all the details at timescolonist.com
RONA issues update on corporate sustainability
BOUCHERVILLE, QC — RONA was something of a leader in Canadian retail when it came to sustainable wood sourcing and product life cycle sustainability. In its 2012 Sustainability Report, RONA intends, by 2015, to reduce its house brand packaging by 10% and ensure that... full story in this week's heart-pounding edition of HARDLINES!
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TORBSA adds two new members
BOLTON, ON — TORBSA has announced the addition of two new members to its buying group ranks. Yvon Building Supply, in Burlington, ON, is a gypsum supply dealer owned and operated by Tom Scott. Grossi Tile & Building Centre is a family-run business in St. Catharines, ON.
Stanley B&D's first quarter helped by acquisitions
NEW BRITAIN, CN — Stanley Black & Decker's first-quarter financial results included a 33% drop in profits to $81.1 million from $121.8 million in the previous year. Net sales were up 3% to $2.5 billion.
Canadians are shopping online, but with international e-retailers
SPECIAL REPORT — Canadians are indeed shopping more online, but that does not necessarily translate into good news for Canadian retailers. According to a new report by Forrester Research, two-thirds of Canadian online shoppers report that they've made online purchases from U.S. or international sites at least once.
Lowe's to open sixth
Alberta storeEDMONTON — Lowe's Canada will open the doors officially to its third Edmonton location next Tuesday, April 30, at 10 a.m., in North East Edmonton... full story in our weekly edition of HARDLINES!
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Ikea says new Montreal store will be its most eco-friendly
BURLINGTON, ON — A new wave of Ikea stores in Canada, starting with Ottawa, Richmond, BC, Winnipeg, and most recently the one being built in Montreal will be 40% more energy efficient than the last stores built in the early 2000s, says the company. This one will feature geothermal, an enhanced solar water heater system, and a hybrid heating and cooling system.
U.S. durable goods sales take a big drop
WASHINGTON — New orders for manufactured durable goods in March 2013 decreased 5.7%, to $216.3 billion. Excluding transportation, new orders decreased 1.4%, reports the U.S. Dept. of Commerce.
Retail sales show slight gains for LBM in February
OTTAWA — Retail sales rose 0.8% to $39.5 billion in February, reports Stats Canada, a second consecutive monthly sales gain. Building material and garden equipment and supplies dealers were up 0.1 % in February, but down 1.6% from the same month a year ago.
Canadian Tire goes with BlackBerry
TORONTO — Canadian Tire is adopting the BlackBerry as its official smartphone for employees, a coup for the Waterloo-based tech giant as it contends with Android and iPhone devices in an ever-more competitive field. The company will provide the new-generation Z10 and the Q10, which will be released next month and features a physical keyboard... read more at ctvnews.ca
Brantford Home Hardware wins Store of the Year award
ST. JACOBS, ON — Home Hardware Stores Limited has recognized Brantford Home Hardware in Brantford, ON, as its 2012 Walter J. Hachborn Store of the Year Award winner. It was selected from close to 1,100 stores across Canada for achieving the highest standards in retailing, merchandising, Staff performance, and overall quality and service.
The Brantford store was recognized for its outstanding performance at Home Hardware's annual shareholders' meeting on April 15. The award was presented to dealer-owners Dave Liesemer and Ron Cicuttini by Paul Straus, President and CEO, Home Hardware Stores Limited.
Inflation ticks up in March
OTTAWA — The Consumer Price Index rose 1.0% in the 12 months to March, following a 1.2% increase in February, according to data published by StatCan. Declining gasoline prices were the primary contributor to a slower increase in March. Excluding gasoline, the index increased 1.1% in the 12 months to March, matching the rise in February.
Canadian Tire and dealers reach new agreement
TORONTO — Canadian Tire Corp. and its associate dealers have reached an agreement over terms of the CTR franchise agreement, with new contracts in place that will cover the period through to the end of 2024.
Non-residential construction up in the first quarter
OTTAWA — Investment in non-residential building construction grew to $12.4 billion in the first quarter, up 1.0% from the previous quarter. Investment rose in four provinces, reports Stats Canada, with the largest increase in Quebec, followed by Alberta, British Columbia, and Manitoba.
CPI inflation ticks up
OTTAWA — The Consumer Price Index rose 1.0% in the 12 months to March, following a 1.2% increase in February, according to data published by StatCan. Declining gasoline prices were the primary contributor to a slower increase in March. Excluding gasoline, the index increased 1.1% in the 12 months to March, matching the rise in February.
CanWel acquires North American Wood Preservers
VANCOUVER — CanWel Building Materials has completed acquisition of Abbotsford, BC North American Wood Preservers, adding its assets to CanWel's existing wood treatment holdings. Included are five operating treating plants, two planer facilities and 18 distribution centres located across Canada.
True Value reports increased same-store sales for 2012
CHICAGO — True Value reported the co-op's same-store sales were up 1.4% on a revenue basis, while retailer same-store sales were up 1.5%, based on more than 1,600 reporting retailers. Revenue was almost $1.4 billion for 2012, an increase of 0.4% or $5 million, from the same period a year ago.
Walmart Canada launches
store magazineMISSISSAUGA, ON — Just two days after Target launched a 28-page flyer to highlight offerings at its Canadian stores, Walmart hit back with a free glossy magazine weighing in at 100 pages. Published for the retailer by Rogers Media, the periodical will be released six times a year and will providelifestyle coverage, with the featured products from Walmart's shelves... full story at thestar.com
Chalifour will relocate its Vancouver distribution centre
LONDON, ON — Chalifour Canada has announced it will relocate its Vancouver distribution centre to a modern industrial park in nearby Delta, BC. In a release issued today, Chalifour said the new DC will be in the Tilbury Industrial Park, approximately 20 minutes from its current site in Surrey. It's being built to service Chalifour's growing dealer customer base, and to and get improved access for commercial trucking. Chalifour expects the facility to be completed by mid-2014.
Home Depot fined for air quality violations
LOS ANGELES — The Home Depot has been forced to pay $8 million in fines for selling paints in California that violated that state's air pollution laws... full story at latimes.com
Richelieu posts Q1 profits
MONTREAL — Richelieu Hardware reported Q1 profits of $8.2 million, a gain from $8 million in the same period last year. Higher overall sales contributed to the increase, though sales in Canada were down 2.9% from a year ago... check out winnipegfreepress.com
Ace announces new president and CEO
OAK BROOK, IL — John Venhuizen has been named president and CEO of Ace Hardware Corporation. Venhuizen's appointment has been part of a strategic leadership transition that was announced last September. At that time, Venhuizen was named president and COO of Ace, while Ace's outgoing leader, Ray Griffith, maintained the title of CEO.
CanSave confirms date for annual buying show
BARRIE, ON — CanSave, the specialty building materials distributor, will hold its annual Expo for its dealer customers on May 30 at the Barrie Molson Centre. New for this show: an introduction to software for quoting door orders. Entertainment for the night's closing concert is Myles Goodwin and April Wine.
Acceo buys up POS systems company OGC
MONTREAL — IT and POS software giant ACCEO Solutions has acquired OGC. Now, says the company, the ACCEO Solutions offering will include three custom software platforms to meet the needs of hardware retailers, building centres, and gardening centres: Omni, ProfitMaster Canada, and OGC.
Exclusive Report: market share of Canada's key dealers
The Market Share Report is one of our most requested studies. Another HARDLINES Exclusive − natch! Click here for more info.
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