HARDLINES Canada’s electronic information service for the home improvement industry April 30, 2001 Volume vii, #17 Michael McLarney, Editor & Publisher Phone: 416.489.3396 Fax: 416.489.6154 email: mike@hardlines.ca <mailto:mike@hardlines.ca%20> http://hardlines.ca <https://hardlines.ca>

* * * * * * IN THIS ISSUE:

* TruServ close to regaining ownership from U.S. parent * Re-merchandising program makes Kenroc more trades friendly * Softwood lumber dispute moves on to hearings

* * * * * * DAILY UPDATES FROM HARDLINES Join us each morning at hardlines.ca <https://hardlines.ca/> . News updated every day. ______________________________________________

TRUSERV IN NEGOTIATIONS TO SEVER TIES WITH U.S. PARENT

TruServ Canada is close to regaining financial control of itself. Since the takeover of Macleod-Stedman Inc. a decade ago by TruServ Corp. (then Cotter & Co.), the U.S. co-op has been a majority shareholder of the Winnipeg-based co-operative. Under the new arrangement, the U.S. parent has agreed to sell the Canadian operation back to its Canadian members.

A letter of intent was approved last week by the boards of directors of TruServ in both Canada and the U.S. for a financing deal that is expected to be finalized within 90 days. Under the new arrangement, the Canadian membership, which comprises some 600 stores, will have 100% ownership of the company. Currently, the U.S. company holds 47% of the financial control and 87% of voting control.

"The big issue was regaining control of our own destiny by having 100% voting control of the co-operative," says Léo Charrière, COO of TruServ Canada. The finalization of this deal, he adds, is a full decade ahead of the timeline anticipated when the deal was originally struck.

TruServ Canada will continue to maintain ties with its U.S. counterpart, including the payment of a licensing fee for use of the TruServ name.

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Softwood lumber dispute moves on to hearing stage

The $8-billion softwood lumber dispute went into court earlier last week, after a failure of Canadian and U.S. political leaders to come to any agreement during the recent Summit of the Americas in Québec City. Trade Minister Pierre Pettigrew was criticized by industry leaders for not having thrown himself wholeheartedly into negotiations.

The head of Weyerhaeuser Co. even entered the fray, sending a letter to U.S. and Canadian leaders requesting their support for a government-sponsored envoy process to solve the dispute. But the idea found little support in Washington. Pettigrew has said it is unlikely the potentially crippling dispute would be solved by envoys.

The U.S. International Trade Commission’s hearing is based on claims by the U.S. lumber industry that a flood of "illegally" low-priced Canadian softwood imports has contributed to the closure of more than 150 American lumber mills. The industry is demanding anti-dumping duties of between 26% and 38%.

Unbelievably, Robert Byrd, a Virginia Senator, has introduced legislation that would allow producers to keep any U.S. award regardless of whether it is eventually overturned by an international panel such as the World Trade Organization. (Another example of why cousins shouldn’t marry — Michael)

However, support for these tactics is far from unanimous, even in the U.S. On the second day of the hearing, U.S. home builders and lumber dealers testified against two of the Trade Commission’s petitions, saying different types of lumber are not interchangeable. If hidden taxes make Canadian lumber unfeasible, "we will have no choice but to turn to European producers," said Stephen P. Conwell, global product merchant, lumber, for Home Depot in Atlanta.

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KENROC REFITS STORES TO TARGET ELUSIVE TRADE CUSTOMER

Kenroc Building Materials has undergone a re-merchandising of its seven stores in Western Canada and the one in Minneapolis, MN. The refit was a full interior upgrade that gives the stores a "crisper look," more like a Canadian Tire store than a cluttered warehouse store, says Ken Sexton, CEO of Kenroc Building Materials Co. Ltd.

The privately owned chain, which supplies drywall, insulation, ceiling systems, stucco and steel framing to the trades, has expanded its range of products by about 400 SKUs. "We’ve moved more heavily into cement and masonry, because they overlap with the stucco trades so much," says Sexton.

Kenroc specializes in wholesaling drywall and related supplies to local building supply dealers, as well as serving the trades. The latter, acknowledges Sexton, are an elusive group. That’s why Kenroc initiated "tradesmen’s recognition nights" at each of its stores this year. The Calgary store’s event attracted close to 200; the next one will be held in Minneapolis on May 16.

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COMPANIES IN THE NEWS

Home Hardware has introduced paint cards with peel-off colour chips for its Beauti-Tone line of paint. The chips can be peeled off the colour brochure and stuck like Post-it notes on a wall for easy viewing. Fifty new neutrals are featured in the peel-off system, with more to come. A first for Canada.

Rona recently held a staff appreciation event for the winners of its AGP training program. Some 400 staff were treated to a disco-themed party in Montréal. The AGP program ("acknowledge, guide, propose") educates and rewards Rona staff who work at its large-surface Regional and l’entrepôt stores. The program was designed to empower staff to make customer-related decisions on the spot. The program will eventually be rolled out to all Rona stores.

Black Eagle Consulting, headed up by Richard Simms, has a new location: 928 Queen Street W., Unit 53C, Mississauga, ON. L5H 4K5. Phone: 905-891-5712; fax: 905-891-5682.

CLARIFICATION re last week’s Home Depot story: Okay, okay. It’s Hilti. Hilti. Hilti. I got it already! (Can you believe a Hilti service van actually drove by the World Headquarters the morning after the last issue came out. Some greater power reminding of my folly. Scary, kids! — Michael)

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PEOPLE IN THE MOVE

Jennifer Smith has joined the Canadian Retail Hardware Association handling member services & legislative affairs. She replaces Bernadette Morin, who has left the industry. (905-821-3470)

Irene Hopmans, manager of marketing and communications for Homecare Building Centres Ltd., retired at the end of April. No replacement has been named as yet. (905-671-2424)

Apex Sales Development Group Inc. has announced that Manfred Gangl has joined as a full partner to the firm. Gangl held senior sales and marketing positions with General Electric and Anchor Hocking Canada, a division of Newell Rubbermaid. (1-866-791-0281) _____________________________________________

CANADIAN STOCK WATCH

COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.) Canadian Tire 24.90 15.05 23.35 Canfor 19.80 7.65 10.92 Goodfellow 12.55 8.50 9.20 Home Depot 70.00 34.68 48.10 Hudsons Bay 19.10 12.40 17.75 Lowe’s 67.25 34.25 62.10 Sears Canada 41.00 19.60 20.75 Taiga Forest 14.20 6.80 7.35 West Fraser 38.00 21.00 33.80

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"A puritan’s a person who pours righteous indignation into the wrong things." — G.K. Chesterton (1874-1936) _______________________________________________

MARKET INDICATORS

Prices of goods and services in the Consumer Price Index (CPI) basket rose an average of 2.5% in March, compared with March 2000. This is the lowest increase since August 2000. Higher food and energy prices were responsible for almost 50% of the advance in the CPI in March. February’s increase had been 2.9%.

Wholesalers saw their sales fall in February as a result of the slump in the automobile sector, which accounts for 17% of wholesale activity. Total wholesale sales fell to $31.8 billion, down 1.6% from January. Had it not been for the decline in motor vehicles and related products, wholesale sales would have risen a modest 0.3%. Increases were reported in seven out of the 11 groups, including the lumber and building materials sector, which rose 1.3%.

Statistics Canada's confidential report for the Canadian Institute of Plumbing & Heating shows that plumbing and heating wholesalers’ sales for March continue to strengthen. Sales for March were $237 million, bringing the year-to-date total to $642 million for 2001. That is a 1% increase from the record sales of 2000. Considering the tough weather in January and February, which hampered construction across Canada, the results are surprising. First quarter sales in Alberta were up 10% from 2000, and 1.5% in Atlantic. No change in British Columbia. All other regions showed declines: Québec 3%, Ontario 1%, West down 2%. By product group, changes were as follows: first quarter sales of hydronics were up 17%; PVF sales were up 4%; HVAC/R reported no change; plumbing sales decreased by 1% and waterworks sales were down by 2%.

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* * * * *HARDLINES MARKETPLACE* * * * ______________________________________________ ______________________________________________

NORAL MARKETING:

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SALES MANAGER – SOUTH WESTERN ONTARIO: EMCO Building Products is a manufacturer and distributor of building materials used in residential and new construction markets.

Primary duties & responsibilities: supervise and evaluate activities of sales staff; oversee all sales in their region; selection and development of roofing contractors for our building materials — maintain contact with major accounts; preparing forecast information; determining district potential; managing customer relations.

Applicant requirements include a post secondary education in business/accounting management; previous sales management experience; strong analytical, problem solving & decision making skills; excellent communication skills — computer skills; ability to work well in a fast paced team environment.

Submit résumé before May 4th, 2001 to Herb deJong EMCO Ltd.; 1108 Dundas St., London, ON, N5W 3A7

* * * * * * SALES MERCHANDISING REPRESENTATIVE: Canadian manufacturer of quality products requires a SALES MERCHANDISING REP. to start immediately.

The position includes: major emphasis on box store businesses plus other account responsibilities in the GTA.

Requirements: 1-3 years related exp. with consumer products, excellent computer skills and the ability to travel frequently. A post —secondary education in Business Administration or Marketing is an asset. Fax résumé to 904-459-2791.

* * * * * * BUYER — BUILDING SUPPLIES: UFA, formed in 1909, is a farm supply and petroleum marketing co-operative owned by over 100,000 members.

Reporting to the Senior Buyer, the successful candidate will be required to negotiate the purchase of products, contracts and distribution of merchandise, and to source new products and technologies, determining preferred suppliers in the building supplies area. You will work closely with other buyers and the marketing group.

Applicants must have a sound knowledge of purchasing, inventory management, warehousing and distribution management functions, and proficiency with Microsoft Office products. Minimum P.M.A.C. Level 3 or equivalent experience is required. Product knowledge in building supplies is essential. An agricultural background is an asset.

Interested applicants are invited to forward their résumé in confidence by April 18, 2001, quoting competition number HR01-46. Mail to: Human Resources, United Farmers of Alberta, 1016-68th Avenue SW; Calgary, AB; T2V 4J2; fax: 403-258-7630; email: resumes@ufa.com. We thank all applicants for their interest in UFA. Only applicants being considered will be contacted.

* * * * * * DIRECTOR, MEMBER OPERATIONS, and REGIONAL DISTRICT MANAGERS: Our client, TruServ Canada Cooperative Inc., a major retail/distribution franchise dealer organization with a broad merchandise assortment and stores throughout Canada expressed by two major banners –True Value Hardware Stores and V&S Department stores – wishes to add several key executives to the operational/member division of the company.

The right candidates for these different opportunities will be highly motivated, intelligent, articulate, goal-oriented individuals who bring exceptional interpersonal skills to these leadership and teamwork opportunities.

To be a candidate you must have: solid operations understanding and experience; a successful track record in recruiting and developing new retail dealers/members; the ability to work within a team framework; strong leadership using both mentoring and coaching skills; a proven ability to achieve results; a clear understanding of financial budgeting, analysis, and actions required.

This unique opportunity to expand our team for the present and the future requires us to find management executives who can blend into an existing group while at the same time bring their own positive personality and characteristics.

The primary location for these positions will be the company head office in Winnipeg, but there will also be a number of opportunities throughout Canada.

Send résumé to Robert Scurfield, Robert R. Scurfield & Associates, 238 Oxford St., Winnipeg, MB, R3M 3J6; phone: 204-981-5605; fax: 204-489-6204; or email: rscurf@mb.sympatico.ca

* * * * * * TERRITORY SALES REPRESENTATIVE: A progressive sales agency, representing brand leaders in the hardware industry, requires an experienced and enthusiastic sales representative to maintain and grow existing accounts and establish new accounts in Ontario. Responsibilities include calling on industrial and contractor supply accounts, and end-user calls. The ideal candidate will have: a minimum of 3 years field sales experience; the self-motivation necessary to achieve goals with an aggressive approach to promoting product lines; and a working knowledge of computers. We offer a competitive salary and benefits package including car allowance and expenses.

Please forward your résumé to Sales Tools, 4325 Steeles Ave. W. Suite 200, Toronto, ON, M3N 1V7; or email salestools@sprint.ca. We thank all applicants in advance and advise that only those candidates selected for an interview will be contacted. * * * * * *

B.C. SALES AGENT — PAINT SUNDRIES: Deft Inc., a leading manufacturer of interior wood stains and finishes, is seeking a manufacturer’s SALES AGENT for the territory of British Columbia.

The ideal candidate is currently servicing the B.C. market with other non-conflicting paint sundry lines. Send résumé via email to deftsales@home.com; or fax 905-951-0977. ______________________________________________

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HARDLINES™ the electronic newsletter hardlines.ca <https://hardlines.ca/> Phone: 416.489.3396; Fax: 416.489.6154 Michael McLarney, Editor & Publisher: mike@hardlines.ca Eugenia Canas, Assistant Editor: buzz@hardlines.ca Beverly Allen, Marketing Manager: bev@hardlines.ca <mailto:hardlines@on.aibn.com> Nancy Wright, Circulation Manager: nancy@hardlines.ca

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