August 2, 1999 - Volume v, #32
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

Get the big picture on how retailers can stay successful in the next millennium. Join me at the Fourth Annual Hardlines Marketing Conference and hear from a who's who of North American retail experts:

-Dan Cotter of TruServ Corp.,
-David Krawzyk of Wickes Lumber,
-Larry Moore of Sears Canada,
-Mike Largent of Stambaugh Hardware,
-John MacDougall of AWARD!

September 16, 1999, at the Sheraton Parkway Hotel, just north of Toronto. Only $249 for subscribers; way more for non-subscribers. Register now!!!

HOTEL RESERVATION DEADLINE: To secure your room reservation at the low Hardlines Conference rate of $149.00 or the adjoining Best Western Hotel at $119, you must call call the Sheraton Parkway Toronto North Hotel by August 16: 1-800-668-0101.

My thanks to this year's sponsors:

-The Watt Group
-Cologne International Hardware Fair/DIY'Tec
-Intactix
-Sterling Commerce
-Logistics Solutions.

ACE TO LAUNCH ITS OWN DEALER MARKET

Ace Hardware will host its first annual dealer market in Canada on October 24 and 25 at the Toronto Congress Centre. The timing is right, says Wolf Gruber, president of Ace Hardware Canada. "We are now of the size, and have progressed, such that we can have our own show.

"All Ace customers [in Canada] will be invited to that show - and those that want to be Ace customers will also be invited," says Gruber. Ace claims to ship to more than 500 customers each week.

The show will have much in common with a typical dealer market, including show specials, prizes and guest speakers. But the highlight, says Gruber, will be the unveiling of Ace's Canadian Discovery Programs, "the next generation of category management approaches to merchandising." The theme of the event is "Discover Ace."

No information is available yet on when Ace will introduce a spring market in addition to the fall one.

Despite delays, the Lansing division of Revy Home & Garden will begin opening stores this fall in the Greater Toronto Area. The first is scheduled for September 18 at the Erin Mills location in Mississauga, Ont. The next one will open its doors in Vaughan, north of the city, sometime before the end of the year, according to Revy president Carl Grittner. "We may even get a third store up by the end of the year," he adds. Two more sites, for a total of five, have been finalized, including one in Scarborough, south of Highway 401, in a power centre alongside a Wal-Mart and a Canadian Tire.

Revy is also looking at sites in southwestern Ontario, including one in Kitchener. "But Toronto is our key market," Grittner says.

Home Depot Canada opened its latest store in Toronto last Thursday. The store is in Etobicoke, on Kipling Avenue just north of Highway 401. Other openings in coming weeks include a store in Ajax, followed by a new store in Scarborough (referred to as "Scarborough South"), at Eglinton Avenue East and McCowan Road.

* * * * * * * *

Le Groupe Forex Inc. has received an offer from Boise Cascade Corp. for the acquisition of all the shares of Forex valued at $30 cash per share. The offer must be approved by Forex shareholders, who have until August 9 to decide. The Boise Cascade offer exceeds the offer of $26 per share made by Louisiana-Pacific.

* * * * * * * *

DAP Products Inc. and DAP Canada Corp. have entered into an agreement to be purchased by RPM Inc. RPM, which also owns Tremco, made the deal with DAP's parent company, Wassall PLC. The sale is expected to close on or around August 5.

* * * * * * * *

The involvement of the Lumber and Building Materials Association of Ontario in the Canadian Hardware and Building Materials Show, February 6-8, 2000, has spurred exhibitor involvement by LBM suppliers. There are 95 LBM companies already booked for the show, including a number of first-time exhibitors that were formerly at the LBMAO's now-defunct Canadian Home Centre Show.

Also: the cost of onsite registration for CHS will increase from $20 to $25. About 4% of attendees register at the door.

* * * * * * * *

Home Depot Inc. has been sending letters out to its vendors asking them not to sell directly to consumers on the Internet. Home Depot sees e-commerce as a huge growth opportunity and has made it clear that it will be reluctant to do business with vendors who become competitors by selling online. Home Depot spokesman Jerry Shields said the letter was not intended to sound coercive. The company doesn't sell online yet, but Shields said it hopes to start in late 1999 or early 2000.

* * * * * * * *

CLARIFICATION: Castle's buying agreement with Ace Hardware Canada, as reported last week, is not a preferred agreement, but a wholesale supply arrangement only, and bears no similarity to Castle's deal with TruServ Canada.

CANADIAN STOCK WATCH

"Four things I'd been better without: Love curiosity, freckles, and doubt."
&endash; Dorothy Parker

PEOPLE ON THE MOVE

CMHC's second quarter market analysis states that housing starts in primary and secondary urban markets will decline by 2.1% in 1999, due largely to weakness in British Columbia and in Alberta, which will have a declining influx of population. Ontario, and especially Toronto, will remain strong, while Quebec and the Atlantic region will be healthy. The decrease in 1999 follows a 1.4% decrease in 1998. Drops will occur in both multiple and single family starts.

* * * * * * *

HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: hardline@terraport.net © 1999 by Michael McLarney. Reproduction in whole or in part is strictly forbidden. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST=$212.75) per year (GST #13987 0398 RT). Please make cheque payable to McLarneyCom.

August 2, 1999 - Volume v, #32
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

Get the big picture on how retailers can stay successful in the next millennium. Join me at the Fourth Annual Hardlines Marketing Conference and hear from a who's who of North American retail experts:

-Dan Cotter of TruServ Corp.,
-David Krawzyk of Wickes Lumber,
-Larry Moore of Sears Canada,
-Mike Largent of Stambaugh Hardware,
-John MacDougall of AWARD!

September 16, 1999, at the Sheraton Parkway Hotel, just north of Toronto. Only $249 for subscribers; way more for non-subscribers. Register now!!!

HOTEL RESERVATION DEADLINE: To secure your room reservation at the low Hardlines Conference rate of $149.00 or the adjoining Best Western Hotel at $119, you must call call the Sheraton Parkway Toronto North Hotel by August 16: 1-800-668-0101.

My thanks to this year's sponsors:

-The Watt Group
-Cologne International Hardware Fair/DIY'Tec
-Intactix
-Sterling Commerce
-Logistics Solutions.

ACE TO LAUNCH ITS OWN DEALER MARKET

Ace Hardware will host its first annual dealer market in Canada on October 24 and 25 at the Toronto Congress Centre. The timing is right, says Wolf Gruber, president of Ace Hardware Canada. "We are now of the size, and have progressed, such that we can have our own show.

"All Ace customers [in Canada] will be invited to that show - and those that want to be Ace customers will also be invited," says Gruber. Ace claims to ship to more than 500 customers each week.

The show will have much in common with a typical dealer market, including show specials, prizes and guest speakers. But the highlight, says Gruber, will be the unveiling of Ace's Canadian Discovery Programs, "the next generation of category management approaches to merchandising." The theme of the event is "Discover Ace."

No information is available yet on when Ace will introduce a spring market in addition to the fall one.

Despite delays, the Lansing division of Revy Home & Garden will begin opening stores this fall in the Greater Toronto Area. The first is scheduled for September 18 at the Erin Mills location in Mississauga, Ont. The next one will open its doors in Vaughan, north of the city, sometime before the end of the year, according to Revy president Carl Grittner. "We may even get a third store up by the end of the year," he adds. Two more sites, for a total of five, have been finalized, including one in Scarborough, south of Highway 401, in a power centre alongside a Wal-Mart and a Canadian Tire.

Revy is also looking at sites in southwestern Ontario, including one in Kitchener. "But Toronto is our key market," Grittner says.

Home Depot Canada opened its latest store in Toronto last Thursday. The store is in Etobicoke, on Kipling Avenue just north of Highway 401. Other openings in coming weeks include a store in Ajax, followed by a new store in Scarborough (referred to as "Scarborough South"), at Eglinton Avenue East and McCowan Road.

* * * * * * * *

Le Groupe Forex Inc. has received an offer from Boise Cascade Corp. for the acquisition of all the shares of Forex valued at $30 cash per share. The offer must be approved by Forex shareholders, who have until August 9 to decide. The Boise Cascade offer exceeds the offer of $26 per share made by Louisiana-Pacific.

* * * * * * * *

DAP Products Inc. and DAP Canada Corp. have entered into an agreement to be purchased by RPM Inc. RPM, which also owns Tremco, made the deal with DAP's parent company, Wassall PLC. The sale is expected to close on or around August 5.

* * * * * * * *

The involvement of the Lumber and Building Materials Association of Ontario in the Canadian Hardware and Building Materials Show, February 6-8, 2000, has spurred exhibitor involvement by LBM suppliers. There are 95 LBM companies already booked for the show, including a number of first-time exhibitors that were formerly at the LBMAO's now-defunct Canadian Home Centre Show.

Also: the cost of onsite registration for CHS will increase from $20 to $25. About 4% of attendees register at the door.

* * * * * * * *

Home Depot Inc. has been sending letters out to its vendors asking them not to sell directly to consumers on the Internet. Home Depot sees e-commerce as a huge growth opportunity and has made it clear that it will be reluctant to do business with vendors who become competitors by selling online. Home Depot spokesman Jerry Shields said the letter was not intended to sound coercive. The company doesn't sell online yet, but Shields said it hopes to start in late 1999 or early 2000.

* * * * * * * *

CLARIFICATION: Castle's buying agreement with Ace Hardware Canada, as reported last week, is not a preferred agreement, but a wholesale supply arrangement only, and bears no similarity to Castle's deal with TruServ Canada.

CANADIAN STOCK WATCH

"Four things I'd been better without: Love curiosity, freckles, and doubt."
&endash; Dorothy Parker

PEOPLE ON THE MOVE

CMHC's second quarter market analysis states that housing starts in primary and secondary urban markets will decline by 2.1% in 1999, due largely to weakness in British Columbia and in Alberta, which will have a declining influx of population. Ontario, and especially Toronto, will remain strong, while Quebec and the Atlantic region will be healthy. The decrease in 1999 follows a 1.4% decrease in 1998. Drops will occur in both multiple and single family starts.

* * * * * * *

HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: hardline@terraport.net © 1999 by Michael McLarney. Reproduction in whole or in part is strictly forbidden. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST=$212.75) per year (GST #13987 0398 RT). Please make cheque payable to McLarneyCom.