vol. viii, #31 August 19, 2002

* Home Depot cuts deal with Enbridge in GTA * Chicago Show gets mixed reviews * Retail guru John Williams joins Hardlines Conference * Home Hardware to expand Atlantic distribution centre * Sodisco-Howden recorded 24% increase in 2Q

"Half the agony of living is waiting." - Alexander Rose (American writer)

The next issue of Hardlines will be out September 3. But don't worry! The World Headquarters remains open during this time, as we prepare for our Hardlines Conference Series on September 12-13. If you haven't registered yet, act fast - you'll want to be part of the most incredible information and networking event of the year!

CONFERENCE HOTEL SPECIAL: The Four Points Sheraton has extended the deadline for our special low conference rate. Call before August 31 and the price is only $149 per night. Contact: 800-737-3211 or 905-624-1144; email: mevans@fourpointsairport.com . - Michael
Toronto, ON - Home Depot Canada continues to expand its maintenance and installed services for homeowners with heating and air conditioning installations. The program, in association with Enbridge Home Services, will deliver sales and installation of Trane HVAC systems through 31 Home Depot locations in the extended Greater Toronto Area. Home Depot has a three-year exclusive deal with Trane in the U.S. that's been under way for just over a year, but Trane's dealer network in Canada isn't as widespread as it is south of the border. Therefore, Enbridge got involved, becoming a Trane preferred dealer here. "This category has been identified as one of the key areas of growth and we're already well established in areas like kitchens and flooring," says Keith Bertram, Home Depot Canada's divisional manager for At-Home-Services. "But the new initiative identifies programs outside the store, aimed at the 'do-if-for-me' market." Trane products won't be carried in the stores, but will be displayed in the At-Home-Services selling centres within the stores. During prime time shopping hours, Enbridge Home Services representatives will also be on hand. Purchasing for the program falls under the aegis of Lyne Castonguay, divisional product merchant for plumbing and HVAC. The pilot program includes all Home Depot stores between Ancaster in the West, Oshawa in the East, St. Catharines in the South and North to Orillia. The retailer intends to go national with the program in time, says Bertram, who was himself formerly with Enbridge. He says that company wants to go national, and the Home Depot alliance will give it the means to do so as the program is rolled out coast-to-coast. Home Depot Canada already has a national carpet and upholstery cleaning service, while duct cleaning, window replacement and roofing programs are gradually expanding into all areas of the country, as well. At-Home-Services is enjoying growth "in the high double digits" and Bertram's team is on the lookout for new opportunities.
St. Jacobs, ON - Home Hardware Stores Ltd. plans to expand its Debert, NS distribution centre by adding 109,000 sq.ft. to its existing 365,000-sq.ft. facility. Construction will begin in fall 2002 with completion expected by spring 2003. The total cost of the project is estimated at $4.2 million. The Debert distribution centre supplies Home dealers in Eastern Québec and the Atlantic provinces, including Iles-de-la-Madeleine and St. Pierre et Miquelon. The facility, which was built in 1980, recently underwent a conveyor retrofit and the addition of extra storage bins to improve productivity. Additional distribution centres are located in Wetaskiwin, AB, Elmira, ON and St. Jacobs, ON, totalling more than two million sq.ft. of warehousing space and housing 60,000 SKUs.
Chicago, IL - The National Hardware Show, August 11-13 in Chicago, got mixed reviews, but was still deemed worthwhile even to the gripers. One manufacturer said the lack of key buyers from companies like Lowe's and Home Depot, gave his sales team more time to devote to "second-tier" buyers. However, others found the aisles painfully empty. What was once prime real estate at the show was filled with smaller importers and dozens of empty booth spaces. Last year, 53,310 industry trade professionals attended the show, with attendees from 90 countries represented. It also shrank down to three days from four in 2001. This year, the show was reduced to two buildings and included a housewares section for the first time.
Toronto, ON - The latest trends in retail worldwide will be given fresh commentary, as retail guru John Williams, of J.C. Williams Group, joins the Retail Strategies Symposium on September 12, 2002. Williams focuses on business strategies for retailers, shopping centres, cities and manufacturers. He heads up one of the foremost retail and shopping centre consultancies in North America. At the Hardlines Marketing Conference on the following day, September 13, David Day has agreed to participate in our breakout session on maximizing public relations. Day, formerly director of communications at Home Depot Canada, is now vice-president of Temple Scott Associates, a leading public relations and government relations firm. He will talk about how to drive sales through PR (a tool that is drastically underused in this industry - Michael). "It's an effective way to drive the bottom line," says Day. "Looking to the future, both manufacturers and retailers need to make this part of their marketing arsenal." He'll be joined by Michael McLarney, editor and publisher, etc., who's been on the receiving end of some pretty dismal PR over the years. He'll explain what works and what doesn't when communicating with the media. For more information about the Hardlines Conference Series, September 12-13, 2002, click here for more Conference details or call Nancy at 416-489-3396, nancy@hardlines.ca Click here to register.
Canadian Tire 33.15 18.50 29.90
Canfor 11.70 8.08 9.30
Emco 12.77 3.71 11.45
Goodfellow 13.99 8.00 10.75
Home Depot 52.60 26.10 28.10
Hudson's Bay 20.10 6.45 8.03
Lowe's Cos. 49.99 24.99 36.79
Sears Canada 25.10 12.50 17.25
Sodisco-Howden 2.20 0.75 1.60
Taiga Forest 6.90 3.75 6.50
West Fraser 44.42 26.14 37.50
The New Housing Price Index rose 0.2% in June from May, while year-over-year it was up 4.1%, says Stats Canada. Monthly increases occurred in 14 of the 21 urban centres surveyed. The largest monthly advance was in Kitchener-Waterloo, ON, up 1.2%, followed by Regina, up 0.9%. Winnipeg and London each rose 0.6%, and Calgary's index was up 0.4%. Québec City and St. John's were both up 0.3%, while Montréal, Saskatoon and Ottawa were up 0.2%. Halifax, Charlottetown, Toronto, Windsor and Vancouver were unchanged from June. Housing starts in Canada slipped 0.2% in July to 200,300 units from 200,800 units seasonally adjusted in June, according to CMHC. Urban multiple starts rose 4.6%, while urban singles fell 4.6%. Rural starts were also down, to 24,400 units seasonally adjusted from a preliminary 25,900 units. Sales by large retailers were up 6.1% in June from June 2001, says Stats Canada, while sales for the first half of the year were up 6.6% over the same period of 2001. Every major commodity group posted a strong gain from June 2001, except housewares and food and beverages, which showed small increases. Retail sales in the U.S. rose 1.2% to US$304.28 billion seasonally adjusted. Excluding automotive, sales rose 0.2%. The news comes as the Central Bank announces that interest rates will remain unchanged.
"Customers will see something new every time they come into a White Rose store. We are going to be the location of choice for the latest in gardening and decorating ideas and high quality products." - Fern Reeves, the new head of buying for White Rose Home & Garden Centres Ltd.
Canadian Tire's retail sales from all banners in the second quarter were up 9.4% to $2.05 billion. Profits rose 9.7% to $58.6 million, from $53.4 million in the same quarter of 2001. Canadian Tire stores had sales of $1.70 billion, a 4.7% increase, while same-store sales were up 1.5%. Sodisco-Howden Group recorded revenues of $148.4 million for the second quarter, up 24% over last year. The increase was due largely to added business from the acquisition of the hardware and building materials assets of Marchands Unis and from the strong performance of the LBM sector. 2Q profits reached $1.7 million. Revenues for the first six months were $235.0 million, up 22.2%, but year-to-date losses deepened to $1.0 million from $0.6 million a year earlier. If the real estate was available, Home Depot would open two more stores in Calgary, says the Calgary Herald. While in town to help with an all-women Habitat for Humanity event last week, Home Depot Canada president Annette Verschuren bemoaned the lack of available sites, where the retailer already has four. Coming out from under its bankruptcy protection, the management of White Rose has re-incorporated as White Rose Home & Garden Centres Ltd., named Fern Reeves to head up the turnaround, and will buy back 24 White Rose locations from the receiver. After a brief absence from the market, McCulloch Canada is back under new owners, Taiwan-based Jenn Feng Industrial Co. Ltd. McCulloch carries a full line of gas and electric products and power tools. Jenn Feng produces for Hitachi, Ryobi Australia, Metabo and Milwaukee. GSW Inc. has purchased the assets of the vinyl gutter business of Bemis Manufacturing Co. as part of GSW's Building Products Division in Barrie, ON. The deal includes patents, trademarks and tooling relating to its Rain Master brand and is intended to strengthen GSW's vinyl gutter and downspout business throughout the U.S. and Canada. Terms of the deal are not disclosed. Do it Best Corp. ended its 2002 fiscal year on June 30 with US$2.39 billion in sales, up 9.5%. Rebates reached US$95.7 million, or 12.9% of total purchases, to the co-op retailer's 4,300 members. During the fiscal year, Do it Best added 266 new members. Lowe's is working with its suppliers to convert pressure-treated wood from CCA to Alkaline Copper Quaternary (ACQ) lumber by this fall. The company wants to stay ahead of the EPA's voluntary phase-out of the arsenical treating method,6 even though no reasonable risk has been attached to CCA. Total sales for Wal-Mart in its second quarter were US$59.694 billion, an increase of 13.1% over last year. Net income for the quarter was US$2.038 billion, up from US$1.622 billion. Net sales for the six-month period were US$114.654 billion, an increase of 13.7%. Costco Wholesale Corp. reported net sales of US$2.96 billion for July, up 10% from US$2.70 billion in July 2001. For the first 48 weeks of its 2002 fiscal year, the company reported net sales of US$34.97 billion, an increase of 11%. The FBI, working with agents from the Securities and Exchange Commission, and a U.S. House subcommittee are gathering evidence as part of a probe into bankrupt Kmart Corp., to determine if charges should be laid against any Kmart executives following the retailer's Chapter 11 filing last January.
Brian Warr, owner of Warr's Castle Building Centre in Springdale, NF has been elected to the board of directors of the National Retail Hardware Association. Warr is a member of the board of the Canadian Retail Hardware Association, which is affiliated with the 42,000-member U.S. association. He also sits on the Castle board. (Contact Brian at: 709-673-3922) Don Fawcett has joined Ingersoll-Rand Security and Safety as national accounts sales manager. He was formerly with Scott's. (905-278-6128) The folks at Imperial Manufacturing Group have asked me to clarify that Bill Mair's new role with the company is of a contractual nature only. He comes to IMG as an independent contractor to launch new marketing initiatives, not as a full time product manager. (506-523-9117) Larry Mercer, executive vice-president in charge of store operations for Home Depot in Atlanta, will retire later this year. A 23-year company veteran, Mercer will remain with the company as an advisor to Home Depot CEO Bob Nardelli until February 2004.
As the Canadian Hardware and Building Materials Show gears up for 2003, it has managed to retain a number of repeat vendors. So far, 62.5% of CHS 2003 exhibitors have participated five or more years in the show. Of those companies, one-third have exhibited for more than 20 years.
How big is the Canadian hardware/home improvement industry? Which sectors are growing fastest? Know the answers - read the Hardlines Quarterly Report!.... CLICK HERE to find out more!
****HARDLINES MARKETPLACE**** Check out Hardlines Classifieds on the web: https://hardlines.ca/html/classifieds_new.asp POSITIONS SOUGHT SALES EXECUTIVE AVAILABLE Sales executive available full time or on a contract basis. Plugged into retailers in Canada and the U.S. Contacts in the electrical, lighting and building materials categories. Excellent references. Results guaranteed. Email: integralsm@hotmail.com ************************************************************************************  HELP WANTED NATIONAL ACCOUNT MANAGER Maxtech Consumer Products Group, an innovative and expanding designer, manufacturer and distributor of power tool accessories and hand tools currently has an opening for a high-level Account Manager/Sales Executive to grow our product penetration and expand our customer base, largely in the U.S. We offer a solid customer base, a unique and innovative product line, and a very dynamic work environment. The ideal candidate will be a self-starter with experience in the hardware/DIY tool market and a proven track record of growing sales and market share, a willingness to travel and be highly motivated. If you are interested, please forward cover letter and resumé to jobs@maxtech-mfg.com or fax: 519-885-6066 ************************************************************************************ DISTRICT SALES MANAGER – NORTHERN ONTARIO Porter-Cable Delta, a recognized leader of quality woodworking, portable electric, equipment and air tools products, currently requires an enthusiastic professional as: District Sales Manager—Northern Ontario A resourceful individual able to organize and communicate successfully, you will based in Sudbury directing the operations for your territory and meeting strategic objectives. As a high achiever, you have a minimum of 3 years sales experience in the hardware, automotive and/or HVAC industry. You have a valid driver’s license, a post secondary degree/diploma preferably in Business and are computer literate. A background in power tool sales and bilingual communication skills are desirable. If you are looking for a progressive organization and a competitive compensation package, please fax your resumé to Human Resources at 519-836-9352, or email: TMAJOR@PORTERCABLE-DELTA.COM or mail to 505 Southgate Drive, P.O. Box 848, Guelph, Ontario N1H 6M7. We thank all applicants; however only candidates selected for an interview will be contacted. ************************************************************************************ INDUSTRIAL SALES AGENT WANTED TradeMASTER Tools, a full line power tool distributor, is looking for an experienced agent to build industrial/automotive accounts in Ontario. Fax reply to Sales Manager at 519-622-4472 or email: sales@trademasterltd.com ************************************************************************************ CANADIAN SALES MANAGER: LADDERS Located in Richmond Hill, ON, and reporting to the U.S. Director of Sales, the Canadian Sales Manager plans and directs the Ladder Division's sales strategy including sales volume objectives, sales profitability objectives, key account management, & marketing/merchandising programs. Qualifications include four year college or university degree - in sales marketing or equivalent; 3 plus years experience in the hardlines/building products industry; excellent verbal and written communication skills; well organized and good problem solver; high energy level and self motivated team player; bilingual (French and English) preferred. Interested candidates may submit their résumé no later than Monday, August 19, 2002 to: Lee Bennett, William L Bonnell Co., 25 Bonnell Street, Newnan, Georgia 30263; fax 770-254-7708 or e-mail:clbennett@bonlalum.com ************************************************************************************ FIELD SALES MANAGER - EASTERN CANADA Porter-Cable Delta, a recognized leader of quality woodworking, portable electric, equipment and air tools products, currently requires an enthusiastic professional as Field Sales Manager - Eastern Canada. A resourceful individual able to organize and communicate successfully, you will direct the industrial sales operations for Eastern Canada. A high achiever, you have a minimum of 5 years sales experience in the hardware, automotive and/or HVAC industry. Your minimum of 3 years supervisory experience, bilingual spoken and written skills (English/French) and exceptional computer literacy will allow you to direct the Eastern Canada sales force and key accounts to meet strategic objectives. You are located within commuting distance to Guelph, Ontario for weekly meetings (approximately 2days per week); you have a willingness to travel, a valid driver's license and a post secondary degree/diploma preferably in Business. If you are looking for a progressive organization and a competitive compensation package, please contact Wolf Gugler in complete confidence, quoting file number C-11. Wolf Gugler & Associates Limited, 1370 Don Mills Road, Suite 300, North York, Ontario M3B 3N7. Phone: 416-386-1719 email: resumes@wolfgugler.com. web site: www.wolfgugler.com ************************************************************************************ SERVICES OFFERED Brand building power-assist · Corporate ID modernizing · Product packaging revitalizing · Marketing program development · Marketing Audit … reality check cjohnston@synmark.net or phone: 905 849 4850 *********************************************************************************** NORAL INSTORE: Don’t leave your products’ display management to chance! Let Noral Instore take care of your instore merchandising. Visit http://www.noralmarketing.com or call Al Vanderveen at 519-439-6800 ext. 201 ********************************************************************************** SELL YOUR COMPANY - OR BUY ONE - WITH HARDLINES CLASSIFIEDS! DO YOUR EXECUTIVE SEARCH, FIND NEW LINES OR GET NEW REPS IN THE HARDLINES MARKETPLACE. ONLY $18 PER LINE FOR THREE WEEKS! TO PLACE YOUR AD, CALL US AT 416-489-3396 OR EMAIL: bev@hardlines.ca
Hardlines is published weekly (except monthly in December and August) by McLARNEYCOM 542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7 © 2002 by Michael McLarney. HARDLINES™ the electronic newsletter hardlines.ca Phone: 416.489.3396; Fax: 416.489.6154 Michael McLarney, Editor & Publisher: mike@hardlines.ca Beverly Allen, Marketing Manager: bev@hardlines.ca Nancy Wright, Circulation Manager: nancy@hardlines.ca ______________________________________________ THE HARDLINES "FAIR PLAY" POLICY: Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read Hardlines each week – but let us handle your internal routing from this end! ______________________________________________ Subscription: $199+$13.93 GST = $212.93 per year (GST #13987 0398 RT). Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98. Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.