HARDLINES™
Five years serving Canada's home improvement industry
December 11, 2000 - Volume vi, #47
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com Check out our incredible Classifieds section!* * * * * *
* Rona committed to national expansion
* Réno-Dépôt passed on buying Revy
* Sears launches new tool merchandising strategy in U.S.
* Seminar program beefs up action at Canadian Hardware Show
* Home Depot in the U.S. gets new CEO
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Please make a note that Hardlines will not be published on December 18, December 25 or January 1. See you again on January 8. - Michael* * * * * *THINKING OF ATTENDING THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY'TEC? Contact Trade Show Travel by phone (877-873-7469) or fax (403-247-2448) to arrange your trip. BOOK EARLY! Packages include return air fare and accommodations, as well as admission to the Exhibition. And don't forget the Canada Night Reception sponsored by Hardlines and Cologne International Trade Shows! We'll see you in Cologne.* * * * * *SAVE BIG ON YOUR PURCHASE OF THE HARDLINES INDUSTRY REPORT: "Hardlines Industry Report: Home Improvement Retailing in Canada" is almost ready to ship! This incredible book is a comprehensive overview of the size of the market, how many stores are out there, who the key players are, their market position, the size and growth of the big boxes, the trends in housing and renovations, market trends - and much, much more! 120-plus pages filled with charts, graphs and photos. Regular price: $945, only $750 for subscribers. BUT CALL, or e-mail, BEV RIGHT AWAY because she's cooked up even more SAVINGS if you order before December 31!!!RONA PREZ AFFIRMS NATIONAL EXPANSION PLANSRona's plan to become the number-two player in the Canadian hardware market with $3 billion in sales by 2003 was outlined at a recent breakfast meeting in Toronto of the Canadian Hardware and Housewares Manufacturers Association. There, Rick Blickstead, president of Rona Retail Canada, described Rona's intention to be a serious contender in Canada's big box game. "I think what will emerge is two national players - plus one niche player. Our American competitor will be number one and we are committed to be number two," he said. "It is in our best interest to consolidate, or risk being marginalized."Blickstead also explained the reason for the delay of Rona's first Ontario big box store, which was to open earlier this year in Brampton, ON. He stopped construction shortly after joining the company to reconsider what form their large-format stores should take. "Imagine Ikea meets Rona meets DisneyWorld," said Blickstead to describe the store's new look.Rona's strategy includes becoming an integrated "clicks and bricks" company with a strong web presence to sell everything from the gift items to industrial/commercial products. But that requires creating a retail culture out of Rona's traditional wholesale business, which involves getting away from a "pick and choose" mentality for dealers to a more sharply defined product assortment. "We have thousands of products that we sell two or less of each year through the entire chain."A greater focus on sell-through rather than just sell-in has resulted in a review of 35,000 SKUs over the past year. Despite rationalizing assortments, though, Rona remains open to, and seeks out, new and innovative products, said Blickstead.* * * * * *RÉNO-DÉPÔT NOT INTERESTED IN REVY, SAYS CHAIRMANRumours of an imminent buyout of one of the battling big box companies in Canada persist. But scratch Réno-Dépôt off the list of possible purchasers, says company chairman Pierre Michaud.Michaud, in Toronto the other week for the opening of the first two Building Box stores in Ontario, told Hardlines that Réno-Dépôt had considered acquiring Revy, but chose against it. "We looked and we thought about it," said Michaud, "but we wanted to grow inside." The focus of Réno-Dépôt's expansion outside Québec will be organic. "We want to bring in our own people focusing on our own strategy," he added.Réno-Dépôt plans to open up to 15 big box stores in southern Ontario under the Building Box name within the next three years.* * * * * *SEARS LAUNCHES NEW TOOL CONCEPT IN U.S. MALL STORESSears in the U.S. is trying to capitalize on its Craftsman tool brand by expanding displays in its mall stores and adding selected national brands. Called Tool Territory, the new program is an effort by Sears to revitalize its 700-plus mall stores south of the border.Stress is placed on the fact that most Craftsman tools are made in the U.S. However, Sears has now developed a secondary, lower-priced brand called "Companion," which is manufactured almost entirely in China. Tool Territory will offer the range of price points through the two brands.For a number of years Sears has advertised "the softer side of Sears." Tool Territory is regarded as a major effort to recapture some of the male-oriented business it might have lost in that campaign.- Thanks to Bob Vereen of Vereen & Associates for this item (wdiyc@netdirect.net)* * * * * *STRONG SEMINAR PROGRAM WILL BEEF UP CANADIAN HARDWARE SHOWA more comprehensive educational program is just one of the highlights of the upcoming Canadian Hardware and Building Materials Show, held February 4-6, 2001 at the National Trade Centre in Toronto.The show will comprise 1,500 exhibits in hardware, home improvement, home trends & décor, and seasonal product categories. The hardware and home improvement sections will constitute more than two-thirds of the show and the new product showcase will feature some 500 items. Joe Edwards, CHS show manager, says the show's speaker program has been expanded to include product knowledge courses and creative learning opportunities.New product knowledge and certification courses, sponsored by the CRHA and PDRA, will complement the fair's educational component by offering in-depth product education for dealers and store staff. Subjects will include plumbing and electrical as well as certification courses in paint, faux finishing and interior decorating.The show's social calendar includes the Hardlines Show Breakfast (held exclusively for subscribers and guests of Hardlines) and the Industry Gala at the Sheraton Centre Hotel, a charity event for the Easter Seals presented by the Canadian Hardware & Housewares Manufacturers Association. The CHS Awards Night will recognize the best product innovations and industry winners of the year.For more information about the show, call: 905-821-3470. www.crha.comCOMPANIES IN THE NEWSMore than 40 product managers from the Alliance International LLC (Do it Best Corp., and Canadian companies RONA Inc. and Home Hardware Stores Ltd.) attended a training conference in Port Huron, Mich., Nov.15-17 to learn about new negotiating strategies for 2001. The conference focused on giving the product managers new approaches to using the significant clout of the Alliance International. Speakers included Bob MacDonald, vice president and principal of General Management Technologies, and Patrick Rodmell, vice president of global marketing for the Watt Group.Ontario buying group Torbsa Ltd. has moved to 2 Marconi Court, unit 13, Bolton, ON L7E 1E5; phone: 905-857-5811, fax: 905-951-9923.Weyerhaeuser Co.'s West Island Timberlands operations near Port Alberni have achieved certification to the Canadian Standards Association's Sustainable Forest Management system standard. Weyerhaeuser expects to have all units third-party certified to the ISO 14001 EMS standard by 2002 and to the CSA's Sustainable Forest Management standard by 2003.General Paint Inc. recently opened its first Ontario store and distribution centre in Cambridge. The facility represents a first step in building a contractor and dealer network in that province. The company plans to open 3-4 more stores within the first six months of 2001, all located in secondary markets outside the GTA. Talon Int'l Machinery Corp. has moved to 525 Southgate Drive, unit 2, Guelph, ON N1G 3W6; phone: 1-800-454-2215, fax: 519-780-1498. CLARIFICATION: Last week we reported on ILDC's efforts to harmonize its buying. Part of the message by general manager Andrew Battagliotti was that, while the group recognizes regional and promotional buys are occasionally necessary, it does not tolerate side deals of any kind and has a process in place by which to deal with such situations should they occur.CANADIAN STOCK WATCH