HARDLINES™
Five years serving Canada's home improvement industryApril 17, 2000 - Volume vi, #15
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com Check out our incredible Classifieds section at the end of this issue!* * * * * *
* Beaver name to disappear starting in December
* Home Hardware introduces installed sales at spring market
* WINROC buys another U.S. drywall distributor
* Slocan reports record earnings for 1Q
* Revy's stockyards store delayed by bad weather
* * * * * *CALENDAR UPDATE:PEOPL ARE SIGNING UP LIKE CRAZY! OUR AMAZING NETWORKING EVENT.Nitty Gritty C&W at Spadina and College! El Rancho Relaxo Bar & Grille: Toronto, May 24, 4-9 pm "Getting Organized" - Management Workshop with organizational guru Estelle Gee. Enough about all this e-commerce stuff already. I can't even find anything on my desk! You too? Ok then. Join us. We'll have some fun breaking the ice and learning some important self-management skills. Plus: Killer country & western band The Wayward Angels. Don't forget to bring lots of business cards - and your cowboy boots!Ticketsare only $79 + GST each and include drinks, fajitas, entertainment, door prizes, giveaways, free parking and more!Who should attend? Any vendor, retailer or service provider in packaged goods retailing who wants to increase their business contacts - and just have fun.Check out last year's event!* * * * * *Looking for new personnel or new lines? Hardlines Classifieds are read each week by North America's key decision makers in home improvement retailing and manufacturing. Get results fast. Only $16 per line. Call Beverly at 416-489-3396, ext. 2, for more details.* * * * * *HOME WILL DROP BEAVER NAME STARTING DECEMBERBeaver Lumber stores will begin converting to Home Hardware commencing December 15. Beaver dealers will become either Home Building Centres if they are traditional lumber yards, or Home Hardware Building Centres if they offer broader assortments of hardware, housewares and giftwares in their stores. The 138 Beaver dealers will bring Home's ranks of LBM stores to 474.The December date is also the beginning of Home's conversion of the Beaver stores from Ace Hardware to its own distribution system and products - and to full ownership of their stores. The changeover will be ongoing until the end of March. During that period, as each store is converted, it will change its banner as well. "We feel we can make the whole transition [of each store] all at once," says Paul Straus, vice-president and CEO of Home Hardware Stores. "We realized two banners would have worked, but one banner will work even better," he adds. He expects all the Beaver dealers to have achieved full ownership of their businesses by March 31.There were 25 markets where Home and Beaver stores were in direct competition. Two areas have already been resolved. In Duncan, B.C., the Home dealer wanted to exit the business, so the Beaver dealer bought him out. In Cranbrooke, B.C., the corporately- owned Home outlet was closed and inventory sold to the Beaver, who owns a parcel on the edge of town, near a Wal-Mart. "We hope to build a new, bigger store there," says Straus.The remaining stores that are in conflict will be sorted out on a case-by-case basis.* * * * * * *WINROC GROWS ITS U.S. PRESENCECalgary building materials distributor WINROC Corp. has bought up a wholesaler in Salt Lake City, Utah, its sixth in the U.S. Wasatch Building Materials is a specialty drywall distributor to the wall and ceiling industry. Founder Terry Smith joins WINROC as head of its newly formed Layton Division. WINROC has 19 distribution centres across Canada.WINROC is on the lookout for further acquisitions, seeking to add to its geographic diversity and build on its current sales of $300 million.COMPANIES IN THE NEWSRevy's "stockyards" store in Toronto's west end will have its soft opening today, with a grand opening on April 29. The store was supposed to open earlier this month, but was delayed because the development of a parcel of land adjoining the store that will house the store's lumber yard was held up by zoning and by last week's cold snap, which held up the paving of the yard. Sales in the first quarter of 2000 for Slocan Forest Products Ltd. were $268.9 million, compared with sales of $251.6 million in the first quarter of 1999, a 7% improvement. Net earnings were $31.8 million, compared with net earnings of $18.8 million a year earlier, a 69% increase. The strong results are reflected in the value of the company's stock, which has risen by more than $6.21 &endash; or 14% per share &endash; during the first quarter.Parts of Canadian Tire's erstwhile distribution centre in North York, Ont., were converted last year into a retail "lab." Called Retail City, it features fully merchandised "A" and "C" sized test stores, and a PartSource store. The test stores are used for everything from staff training and line reviews to focus groups and TV commercials. CTC's latest move, to more upscale assortments in lines such as sporting goods and housewares, was fine-tuned at Retail City.Home Hardware's Spring Market is on now until Tuesday in St. Jacob's, Ont. New programs being introduced include a kitchen and bath projects book for consumers and an installed sales program for its LBM dealers, following the lead of other groups, such as A.WA.R.D. and Castle, which already have programs of their own.Cameron Ashley Building Products continues its discussions with potential buyers. A bid of US$18.25 per share from a team led by CABP's management has been accepted by the board, but needs ratification by shareholders. Meanwhile Guardian Industries, through its subsidiary Guardian Fiberglass Inc., has countered with a bid of US$18.50.Home Depot will begin resume carrying Maytag appliances, including high-end Jenn-Air brand products, in Canada and the U.S. beginning in May.Sears began offering lawn and garden tools and equipment online last week. The site, www.sears.com, features more than 600 lawn and garden tools and equipment, including hand tools, portable power lawn tools, mowers and trimmers, gas grills. Larger products, such as lawn tractors, are available to view online and purchase at local Sears stores and will be available for online purchase and delivery in June.Profitmaster Canada has joined the growing ranks of companies offering online services. www.openorderdesk.com allows retailers to link directly with their contractors and other customers electronically. The system will be launched June 1.CANADIAN STOCK WATCH