If the format looks incorrect or you would like to print this newsletter why not view the PDF version? This week's password is "kite" please note our "fair play" policy still applies to printed and .pdf documents. | |
![]() |
Michael McLarney, President & Editor mike@hardlines.ca Beverly Allen, Publisher bev@hardlines.ca John Caulfield, Contributing Editor Phone: 416-489-3396 |
December 1, 2008, Vol. xiv, #45 |
In This Issue | |||||||||||||||||||||||||||||||||
“God is in the roses, and the thorns.”—Roseanne Cash (American singer and songwriter, daughter of Johnny Cash, 1955 -. From her excellent album,“ Pink Cadillac”) |
|||||||||||||||||||||||||||||||||
RONA show highlights sustainable products, practices | |||||||||||||||||||||||||||||||||
![]() Top. |
|||||||||||||||||||||||||||||||||
RONA introduces proprietary brands | |||||||||||||||||||||||||||||||||
TORONTO — The RONA Spring Market, held here last week, featured products that reflect RONA’s aggressive push to expand its private-label offerings. Currently, 17% of the company’s SKUs are house brands, with the goal to push that to 20% near-term and 25% longer-term.![]() |
|||||||||||||||||||||||||||||||||
Home Depot Canada cuts jobs, realigns | |||||||||||||||||||||||||||||||||
TORONTO — Home Depot Canada, in response to declining consumer spending, has cut 180 jobs across the country, including 39 from its head-office store support centre. However, of the total people being realigned, 26 have been offered other positions.“It’s a reflection of what we’re seeing with the customer,” says Tiziana Baccega, spokesperson for Home Depot Canada. “They’re tightening their grip on spending.” As a result, the company is focusing on what the customer appears to want — more affordable expenditures. “We’re also seeing a real push by customers on small projects,” Says Baccega Home Depot’s advertising and promotional efforts have reflected that shift, most recently with the announced reduction on the prices of almost 1,000 items on its shelves. “We’re educating our customers on how to do those smaller projects. For example, they aren’t as likely to replace a kitchen now, so they’ll change their lighting fixtures and cabinet hardware, instead.” Home Depot employs more than 30,000 associates in this country. | |||||||||||||||||||||||||||||||||
UFA to purchase U.S. sporting goods chain | |||||||||||||||||||||||||||||||||
CALGARY — UFA Co-operative Ltd. is poised to acquire a majority interest in Sportsman’s Warehouse, increasing the co-operative’s annual revenue by $800 million. Sportsman’s Warehouse is a privately-owned U.S.-based outdoor outfitter with annual revenue topping $800 million and 67 stores in 38 American states. The acquisition aligns with UFA’s strategy to diversify beyond its traditional businesses to pursue its loyal rural and agro customer in Western Canada. It already has 36 hardware and ranch stores, and acquired another sporting goods chain, Calgary-based Wholesale Sports, in July 2008.“UFA is a co-operative serving the people who live, work and play in rural communities,” says Dallas Thorsteinson, president and CEO of UFA. “Acquiring Sportsman’s Warehouse fits perfectly with our strategy to create sustained valued for our owners by expanding to become a well-rounded rural marketer.” UFA will acquire a majority interest in Sportsman’s Warehouse, subject to successful completion of negotiations and a comprehensive due diligence process. UFA has already made what it calls “a significant cash injection” into the U.S. retailer to ensure it’s well stocked for the holiday retail season. UFA is driving a controlled diversification strategy that includes construction and outdoor-lifestyle businesses. As a rural marketer, outdoor recreational products and services are a logical extension of UFA’s existing relationship with customers and members. With the addition of Wholesale Sports and Sportsman’s Warehouse, UFA is a major North American force in the outdoor adventure industry. UFA’s 2007 revenues were more than $1.8 billion, ranking it among the 40 largest Alberta companies in terms of revenue, according to PricewaterhouseCoopers and Alberta Venture magazine. In 2008, UFA revenues will top $2 billion for the first time, having surpassed the $1 billion mark just four years ago. Sales through its Farm and Ranch Supply outlets and retail building supply business are estimated to reach $400 million this year (source: HARDLINES Who Directory). | |||||||||||||||||||||||||||||||||
|
OUR RETAIL HOME IMPROVEMENT REPORT:
![]()
|
COMPANIES IN THE NEWS |
TORONTO — At its annual meeting with vendors last week, Home Depot Canada laid out plans for 2009. Those plans will focus on productivity improvement as the company utilizes its SAP systems to develop electronic planogramming for stores. The new system will enable Home Depot merchants to planogram stores according to local market needs, rather than being based solely on national programs. The company also expressed its desire to increase its “pro” or contractor business in Canada.TORONTO — Sears Canada’s sales for the third quarter increased 5.5% to $1.44 billion, from $1.37 billion, while net earnings for the quarter, excluding unusual items, increased 47.4% to $67.8 million, or 63 cents per share, from $46.0 million, or 44 cents per share, in the same quarter last year. Unusual items were related to the sale of the company’s headquarters building, and as a result, net earnings decreased 33.8% to $68.9 million or 64 cents. MONTREAL — Shops in Downtown Montreal will be able to stay open past five p.m. on weekends. Stores in tourist areas of Old Montreal, Chinatown, and the Old Port, have been able to stay open later for years. The move recognizes the 20,000 tourists that come to Montreal each weekend (and likely responds to tightening spending by consumers). The program is a trial for 18 months. EDMONTON — Home Depot opened another store here last week, its seventh in Edmonton. It’s located in the city’s oldest mall, Westmount Centre. The store employs about 100 staff. Another store, in the city’s toney Windmere district, will open Dec. 11. LONDON — For its third quarter, Kingfisher plc, whose retail divisions include B&Q, Castorama, Screwfix, and Hornbach, reported that retail sales were flat, at £2.6 billion, while retail profit was down 4.0% to £176 million. Same-store sales were down 5.1%. In the flat French market, sales and retail profit both grew. In the weak U.K. market, retail profit was £36 million, down £9 million, with margin and cost initiatives helping to offset the impact of lower sales. While its businesses in Eastern Europe delivered strong sales and profit growth, market conditions in China continued to deteriorate, impacting trading. “Consumer confidence has clearly been shaken over the last few months by international economic events and this has impacted demand in all our markets,” said Ian Cheshire, Group CEO. “However, we enter this period of slowdown in a strong position with a robust balance sheet, international market leadership, retail brands with a strong value positioning, and significant buying scale.” He added, “There are clearly more challenging times ahead and we are concentrating on trading effectively in difficult markets by managing our working capital, cash and costs tightly.” CALGARY, — RenoWorks Software, based here, has been recognized, along with its client, Home Hardware Stores Ltd., by the International Academy of the Visual Arts with a Silver Davey Award for HomeWorks Software, a state-of-the-art visualization software created for Home Hardware by RenoWorks to allow homeowners to try Home Hardware building products on images of their own home — before they buy. HomeWorks users have access to more than 2,500 Home Hardware products from more than 30 major building materials manufacturers. In addition to the software, the awards recognized a nationally run contest that saw thousands of design ideas submitted by homeowners and over $10,000 in prizes. “HomeWorks is a unique product that partners homeowner creativity with Home Hardware products through technology,” said Doug Vickerson, RenoWorks CEO. “The recognition of a Davey Award confirms that we are providing an innovative solution for Home Hardware”. MISSISSAUGA, Ont. — Wal-Mart Canada will operate 192 of its 310 stores nationwide around the clock in December. The stores will open their doors on December 1 and leave them open until closing time on Christmas Eve, 576 hours later. |
PEOPLE ON THE MOVE |
![]() ![]() |
ECONOMIC INDICATORS |
Retail sales totalled $36.3 billion in September, up 1.1% from August and the strongest rise in sales in eight months. Sales by new car dealers were up for the first time since January, by 2.2%, accounting for most of this growth. Factoring in price changes, sales rose by 0.7%. |
OVERHEARD… |
“We have to show the market that, no matter what the economic conditions, we have the best model for growth.” —Robert Dutton, president and CEO of RONA inc. Speaking last week to investors and media, he explained why RONA’s dealer development team now reports directly to him. This new role will find him getting back on the road to meet with dealers personally over the coming year. RONA has recruited 26 new dealers so far in 2008, representing $125 million in annualized sales. Another 50 dealers from other banners attended the show. |
Resumés |
Just Posted Achievement-oriented, entrepreneurial and creative. Ability to motivate and lead others. Extensive experience in marketing, sales and retail operations.. |
Posted last week A highly qualified sales/marketing and senior buyer with over 25 years experience and a proven track record is seeking a senior management position with a growth-oriented corporation where leadership and strong communication skills will have an impact on profitability, productivity and market share. |
Sales professional - established relationships with key clients in the hardware, building materials, and paint industries, team player, superior business development skills, competitive, enjoys challenges. |
Hardlines Products |
Hardlines Quarterly Report (New Report out now!) Hardlines Retail Report (Just released!)Hardlines Hot Product ShowcaseHardlines TV Free daily news updates |
Did you know you can have this newsletter sent to someone else in your office for only $3.83 a month per person? Click the link below to spread the news to your whole office! |