August 23, 2010, Volume xvi, #33

“A successful life is one that is lived through understanding and
pursuing one's own path, not chasing after the dreams of others.”
— Chin-Ning Chu (Chinese American business consultant, 1947-2009)

  Summer Publishing Schedule:

HARDLINES will NOT be published Aug. 30. We will be back to our regular weekly schedule on Sept. 6. So hang in with us for one more HARDLINES-free week after this, and remember that the World Headquarters remains open as we get ready for Amazing 15th Anniversary HARDLINES Conference on Oct. 28 & 29. —Michael

TIM-BR MARTS confirms dates for own show

CALGARY — TIM-BR MARTS Ltd. has confirmed that it will host its own buying show. Called the TIM-BR MART National Buying Show, it will be held at the Toronto Congress Centre March 31-April 2, 2011.

TIM-BR MARTS has created the show to provide the national buying group’s member dealers with a central venue for more than 250 preferred LBM and hardlines vendors. The event is also intended to provide a forum for networking and information exchange amongst industry colleagues.

The event will kick off with an opening evening “meet and greet,” followed by two days of buying activity. More than 350 TIM-BR MART dealers are expected to attend from across Canada.

“For three days, our dealers and vendors will see the power of Canada’s leading buying group for independents in action,” says Steve Stremecki, VP Retail Services at TIM-BR MARTS Ltd.”

 The show comes as a result of continued growth from a group that now manages some $2 billion in purchases annually.  “Our buying power has  reached a point where we can deliver the most value to our dealers and help our vendors build their business by bringing them together in an exclusive environment,” says Randy Martin, VP Procurement at TIM-BR MARTS.

The show is being managed by London, Ont.-based KCI Management, which also handles the Lumber and Building Materials Dealers Association’s annual buying show, the Canadian Home Improvement Show. Vendor registration will begin Aug. 30, with a limited number of booths available. Dealers will be able to begin registering in October.

More information will be available at www.timbrmartbuyingshow.com; vendors can also contact KCI directly at 519-963-4476.

back to top

Home Depot and Lowe’s enjoy increases in second quarter

  ATLANTA — The Home Depot announced second-quarter results last week, which included a 1.8% increase in sales to $19.4 billion. Same-store sales were up by 1.7%. Net earnings reached $1.2 billion, up slightly from $1.1 billion in 2Q 2009.

These results, though positive, fall short of the numbers reported by Home Depot’s biggest rival, Lowe’s Cos., which reported its second quarter a day earlier. Lowe’s had net earnings of $832 million for the quarter, a 9.6% increase from the same period a year ago. Sales for the quarter increased 3.7% to $14.4 billion.

Same-store sales for the second quarter increased 1.6% and for the first half of 2010 increased 2.0%. Performance was especially strong for Lowe’s Canadian stores, which enjoyed a 2.4% increase in same-store sales in Canadian dollars and more than 11% in U.S. dollars.

While Home Depot’s same-store sales were up for only the second consecutive quarter since 2005, the severity of the economic climate in the U.S. kept those sales to a rise of only 1.0% domestically. The 0.7% boost came from the company’s international operations in Mexico and China. However, its 179 stores in Canada turned in flat same-store sales, as the division continued to feel the impact of slowdowns in some parts of Western Canada.

In a conference call with analysts, Home Depot President and CEO Frank Blake warned against a quick turnaround, “There are reasons to be cautious across our business.” He cited a slow return of business from the pro side, coupled with a still-flagging housing market in the U.S. “All of these factors counsel caution as we enter the back half of the year.”

back to top

RONA continues to gain ground in second quarter

BOUCHERVILLE , Que. — RONA’s second-quarter results reflect continued recovery that started in the first quarter: Total consolidated sales increased 2.1% to $1.4 billion, while same-store sales were up 0.9% (representing a 2.6% increase in corporate and franchised stores segment sales and a 0.2% increase in distribution segment sales).

The company said both corporate and franchised stores did well in the early part of the second quarter, thanks to good weather through much of the country and a lift in housing starts. Things slowed down a bit later in May and in June, due in part to less-favourable weather.

The company’s net earnings were up 11.6%, however, excluding unusual items related to the cost of store closures, they were up 2.0%.

RONA made a number of strides during the quarter: the acquisition of Pierceys in Halifax helped to consolidate RONA’s positioning in the region; a 73,000-square-foot store was opened in Saskatoon and a 35,000 square-foot store was renovated and re-opened in St. John’s; and RONA’s sponsorship of the Canadian Football League was renewed through to 2012.

In addition, six independent dealers have joined RONA since the beginning of the year. They represent more than $45 million in annual retail sales.

While lumber and plumbing/HVAC were strong sellers on both the retail and commercial side, other categories were affected by poor weather in May and June, particularly in Alberta and Quebec. Other factors dampening sales included a decline in consumer confidence, a slowing down of the housing market, and delays in imports from China. Those delays hit the seasonal and garden categories especially hard.

back to top

Downs and Simko named to run CanWel divisions

VANCOUVER — Two key appointments at CanWel Building Materials Group Ltd. resolve one of the big question marks surrounding the largest industry takeover in Canada last year.

CanWel purchased Broadleaf Logistics from Rudy Holding, folding it into CanWel’s own building materials distribution business. Bob Simko, formerly President and CEO of Broadleaf, has been named President of the new entity, called CanWel+Broadleaf Division. With combined sales of about $1.5 billion annually, it is Canada’s largest building materials distributor.

CanWel’s building materials division was previously headed by Tom Donaldson, who left the company for personal reasons, returning to his family roots in Nova Scotia.

Simultaneous with Simko’s announcement, CanWel Chairman Amar Doman announced the promotion of Robert Downs to President of the CanWel Hardware Division. He was formerly Vice-President and General Manager.

The appointments are effective Sept. 7. Both men will report directly to Amar Doman, Chairman and CEO of the company.

Earlier this month, CanWel Building Materials Group announced its second-quarter results, the first full quarter that includes operations from the former Broadleaf Logistics. Sales topped $404 million, up from $185 million for the comparable period in 2009. In that period, gross margin climbed to $43.7 million, or 10.8% of sales, vs. $25.4 million, or 13.7% of sales in 2009.

back to top

Seasonal sales up for Canadian Tire in second quarter

TORONTO — Canadian Tire Corp. recorded a 2.5% increase in retail sales for its second quarter to $2.86 billion, while net earnings were up 15.6% from the prior year. Adjusted net earnings were up 14.8 %.

At Canadian Tire Retail, total retail sales in the second quarter increased 1.3% and same-store sales were up 0.8%. Sales increased in gardening and backyard living, due to a strong marketing campaign during the quarter. Kitchen and household cleaning also saw year-over-year increases in sales.

During the quarter, CTR retrofitted 39 of its “Smart” stores, and expects to have 59 retrofits completed this year. Two new Smart stores were opened, as well, and the company expects to open six more this year. CTR also opened two “Small Market” stores, with one more planned by year’s end.

back to top

Certainteed offers educations seminars

OAKVILLE , Ont. — A series of seminars is being produced by Certainteed for its pro customers, including architects, designers, builders and contractors. The series, called “Be Certain”, features information on Certainteed’s lines of roofing, insulation, drywall, ceilings, fence products and foundations.

A seminar on “Minimizing the Threat of Mould and Mildew in Wall Systems” will also be part of the program, presented by Lucas Hamilton, an authority on building science.

The seminars will be held in Calgary, Sept. 1; Oakville, Ont., Sept. 16; and Vancouver, Sept. 21. For more information, call 1-800-233-8990.

back to top

Classifieds

Resumés

• A conscientious, highly motivated manager with a results-oriented track record in developing new business. view this resumé
• A goal oriented sales director that has superior management skills, customer oriented, with in depth knowledge of the industry and the ability to achieve results. view this resumé
• National Field Sales Manager with twelve plus years in power tools and hardware sales/merchandising. view this resumé
• Business Manager with U.S. & Canadian experience with retail & industrial customers seeks a new opportunity. view this resumé
• An experienced merchandising executive possessing passion, vision, and a strategic approach to delivering bottom-line. view this resumé
• Senior sales/marketing leader with experience in all classes of trade wishing new HARDLINES career. view this resumé
• Very Experienced Business Unit Manager, great passion for generating sales and building relastionships.view this resumé
• Worked through my career within the manfucaturer, wholesale and consumer goods industries. view this resumé
• Senior Sales Manager with vast experience in retail and wholesale sales growth in Canada. view this resumé

Connect with us!