December 6, 1999 - Volume v, #49
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

I get asked this question a lot, so we've created this directory. Our new TOP 50 DIRECTORY OF LEADING HOME IMPROVEMENT RETAILERS IN THE U.S. is a handy, affordable way to check out the action south of the border. Complete with company name, address, phone and fax, chief executive, number of stores and annual sales. Just $45 for subscribers. Call or e-mail us for more information.

* * * * * * *

THE NEW HARDLINES WHO'S WHO

The Hardlines Who's Who (1999-2000 Edition) is a comprehensive guide to Canada's leading hardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops. More than 100 listings include sales, product mix, SKUs, store types, executives and key buyers and their responsibilities. The cost for the Hardlines Who's Who is only $105 for Hardlines subscribers and $135 for non-subscribers. Order your own copy of the Hardlines Who's Who today!

REVY REVS UP ONTARIO EXPANSION IN 2000

Revy Home & Garden has confirmed its expansion plans for the Ontario market with the announcement of four new sites. According to Randy Cockrill, who oversees real estate and new store development for Revy from the head office in Surrey, B.C., the company has secured a site in the southwest end of Kitchener, at Highway 7 and Highway 8. (A Home Depot already exists at Highway 8 above Highway 401.)

Cockrill says a deal for property has been struck in Oshawa, making it the first Revy east of Toronto. Two more have been confirmed within the GTA, one which will likely be open before the end of next year.

Revy has two stores in the GTA so far, one in Mississauga at Winston Churchill Blvd., and another that will open in Vaughan, just north of the city, later this month. The so-called "stockyards" store and another in Scarborough, at Warden and Eglinton, as well as the Kitchener site,will open in 2000. The Oshawa store is scheduled to open in 2001.

ORGANIZERS OPTIMISTIC ABOUT BSDA SHOW

The fate of the BSDA of B.C.'s second annual trade show and conference is still up in the air, but it's not from any lack of interest on the part of exhibitors. It already has 80 booths filled, with a waiting list of suppliers. Entitled "West Coast 2000 &emdash; Gateway to Prosperity," the event will be held March 3-4, 2000, at the Delta Pacific Resort and Conference Centre in Richmond.

The final go-ahead for the second edition of this event hinges on dealer pre-registration &emdash; and the goal is 100 by December 9.

"I'm fairly comfortable that we'll hit our target," says John Physick, general manager of Delroc Industries and chairman of the trade show and convention committee. The boost, he says, will come from making it a buying show, with support from suppliers to offer real show deals, prizes and specials.

Home Depot Canada has confirmed its initial sites for Québec, all of them in the Montréal area. The first one will be in Lachanie, followed by Gatineau. Laval is one of the areas being considered for a third site. All are expected to open in 2000.

For the third quarter ended October 31, Hudson's Bay Co. had sales and revenues of $1,743.4 million, up 1.6% over the same period last year. Sales and revenue at the Bay increased by 3.4% to $615.6 million and at Zellers the by 0.5% to $1,103.1 million. Same-store sales increased by 4% at the Bay and by 0.9% at Zellers. In the third quarter the company increased net earnings to $14.8 million, from $11.2 million. Both the Bay and Zellers increased profitability as a result of improved merchandising margins. Earnings before interest and taxes (EBIT) at the Bay increased by 6.6% to $25.7 million from $24.1 million. At Zellers EBIT increased 7.8% to $27.7 million from $25.7 million.

Hudson's Bay Co. will acquire seven former Eaton's locations and "additional considerations." The company is negotiating with landlords on several other locations. They are: Pickering and Moncton (to become Bay stores); Ville d'Anjou and Mississauga (Zellers); one new Home Outfitters Superstore in Hamilton; three Bay stores relocated and upgraded in Saskatoon Regina, and Hamilton; and two Bay expansions in Stoney Creek and Laval. In Saskatchewan, the downtown Bay stores in both Regina and Saskatoon will be relocated into the former Eaton's locations in each of these cities. The two existing stores will be closed. In the Lime Ridge Mall in Hamilton, Ont., the Bay store is to be relocated into the larger, former Eaton's location and a Home Outfitters Superstore will be introduced into the current Bay Home store location. New Bay stores will also be opened in the Pickering Town Centre in Pickering, Ont., and in Highfield Square Shopping Centre in Moncton, New Brunswick. It is anticipated that all locations will be open by spring 2000. New Zellers stores will be opened by spring 2000 in Les Galeries d'Anjou in Ville d'Anjou, Qué., and in the Erin Mills Town Centre in Mississauga,Ont.

Barry Hill Sales Associates has been appointed by Better Living Products of Canada to represent its lines in Atlantic Canada.

Atlanta-based Lowe's Cos. has finalized plans to erect a 1.2 million-sq.ft. distribution centre on 100 acres in Perris, Calif. The facility, which will open in 2001, will serve Lowe's growing network of stores in the west and Pacific northwest.

Unican Security Systems Ltd. has acquired 100 % of the shares of Lodging Technology in Roanoke, Va. The company, which specializes in infrared, sensor based systems, has annual sales of $2 million.

Canadian Tire will donate $5 from the sale of its artificial Christmas trees this season to group of six family shelters across Toronto. Through CTC's Foundation for Families organization, contributions will be made to Redwood Shelter for Abused Women, Covenant House in Toronto, North York Women's Shelter, Youth Without Shelter in Etobicoke, Interim Place 1 in Mississauga and Touchstone Youth Service in East Toronto.

Inline Fiberglass America Ltd., a wholly owned subsidiary of Inline Fiberglass Ltd., has entered into an agreement to acquire Owens Corning's patented proprietary fiberglass pultrusion technology and its fiberglass window manufacturing assets located in Hazleton, Penn. As part of the agreement, Owens Corning will supply Inline with heavy density fiberglass insulation, which is an integral part of the window frame and sash to be manufactured by Inline at the Hazleton facility.

Wal-Mart Stores in the U.S. reported net sales for the four-week period ended November 26 of US$15,023 million, a 24% increase over the US$12,113 million in the similar period a year earlier. Sales for the 43-week period were US$130,319 million, an increase of 19.5% from the US $109,026 million in the similar period in the prior year.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	34.40
Canfor	16.40	4.25	16.40
Goodfellow	11.80	6.00	10.60
Hudsons Bay	23.85	4.00	18.75
MacMillan Blo.	27.85	12.05	24.50
Sears Canada	38.70	15.25	38.70
Taiga Forest	14.75	8.65	13.40
West Fraser	41.00	9.05	29.35

"Talent is formed in quiet, character in the stream of human life."
&emdash; Goethe

PEOPLE ON THE MOVE

Carlyle Smith has been named chairman of LBM sales for Canada at Mitten Vinyl Inc.. This responsibility has been added to his current position as the territory manager for Nova Scotia, Newfoundland and P.E.I. He reports directly to the president. (902-468-3363) … Ernie Klinger has been promoted to western regional manager for Canada. His most recent position was territory manager for Mitten's branches in Alberta. He reports directly to the president. (780-468-5222)

Al Dueck has joined Inline Fiberglass Ltd. as vice-president marketing . He was formerly with Willmar Windows. (416-679-1171)

Tim Surbey has been apppointed western regional manager for Canadian In-Store Merchandising Ltd. He was formerly with Aikenheads/Home Depot as an assistant store manager, then with Staples as a store manager. (800-265-0154)

John Alston is retiring at the end of January, 2000, as head of Hoover Canada … Alston's replacement is Les Pulchinski, who started at Hoover on November 29. Pulchinski's retail experience includes store manager responsibilities and head office responsibilities with Eaton's. (905-335-3311)

&endash; Shoplifters are most likely to target CDs, sneakers, earrings and health and beauty products this Christmas season, according to a U.S. survey, Retail Theft Trends Report. But shoplifters should think twice before pilfering from discount stores, as they lead the nation's retailers in apprehending shoplifters. The report analyzes 166,000 shoplifting incidents submitted by 101 retail firms.

The study was conducted by Loss Prevention Specialists - Prevention Strategies Group with a funding grant from Sensormatic Electronics.

While a majority of shoplifters are adults, juveniles continue to represent a disproportionate percentage of shoplifters as compared to the overall U.S. population. Teenagers between aged 13-17 represented 25% of all shoplifters, the largest age group of shoplifters in the study. The average theft amount per incident was US$60.74, up from US$58.43 in 1997. More males (43%) than females (34%) were reported as shoplifters.

Here's why:

1. Escorted travel from Toronto to Cologne via Frankfurt -let us help you make your voyage worry-free by taking care of the details.

2. "Canada Night" Reception in Cologne&endash; A night of networking with fellow Canadian retailers and vendors, and a presentation by key European buyers.

3. Pre-show seminar &endash; Hardlines and the Canadian office of the Cologne Trade Fairs will jointly present tips on how to maximize your presence at the Show.

4. Hardlines Handbook of the European market &endash; a helpful guide to European markets.

5. Store tours &endash; We'll take you on a tour of the European big-boxes and independents so you can take home the latest ideas for merchandising, packaging and store layout.

6. Spouses' program &endash; Join us to discover the sights and scenes of historic Cologne.

Come to the Cologne International Hardware Fair/DIY'TEC with HARDLINES, March 12-15, 2000, in Cologne, Germany.

Travel to the International Hardware Fair in Cologne to position yourself as a key player in the 21st century. Find out where the growth opportunities lie, discover how the world's markets are changing and learn about the latest new products.

Hardlines has arranged special travel packages that will make your trip painless and affordable. Not only will we help you with your travel arrangements, but we'll also ensure your trip is beneficial to both you and your company.

Affordable, comprehensive travel packages are available in two- and five-star accommodations. Just email us for more information. Our recommended Canadian travel agent will contact you to arrange your personalized travel package.

* * * * * * *

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.

December 6, 1999 - Volume v, #49
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154

I get asked this question a lot, so we've created this directory. Our new TOP 50 DIRECTORY OF LEADING HOME IMPROVEMENT RETAILERS IN THE U.S. is a handy, affordable way to check out the action south of the border. Complete with company name, address, phone and fax, chief executive, number of stores and annual sales. Just $45 for subscribers. Call or e-mail us for more information.

* * * * * * *

THE NEW HARDLINES WHO'S WHO

The Hardlines Who's Who (1999-2000 Edition) is a comprehensive guide to Canada's leading hardware and home improvement retailers, wholesalers, buying groups, mass merchants and co-ops. More than 100 listings include sales, product mix, SKUs, store types, executives and key buyers and their responsibilities. The cost for the Hardlines Who's Who is only $105 for Hardlines subscribers and $135 for non-subscribers. Order your own copy of the Hardlines Who's Who today!

REVY REVS UP ONTARIO EXPANSION IN 2000

Revy Home & Garden has confirmed its expansion plans for the Ontario market with the announcement of four new sites. According to Randy Cockrill, who oversees real estate and new store development for Revy from the head office in Surrey, B.C., the company has secured a site in the southwest end of Kitchener, at Highway 7 and Highway 8. (A Home Depot already exists at Highway 8 above Highway 401.)

Cockrill says a deal for property has been struck in Oshawa, making it the first Revy east of Toronto. Two more have been confirmed within the GTA, one which will likely be open before the end of next year.

Revy has two stores in the GTA so far, one in Mississauga at Winston Churchill Blvd., and another that will open in Vaughan, just north of the city, later this month. The so-called "stockyards" store and another in Scarborough, at Warden and Eglinton, as well as the Kitchener site,will open in 2000. The Oshawa store is scheduled to open in 2001.

ORGANIZERS OPTIMISTIC ABOUT BSDA SHOW

The fate of the BSDA of B.C.'s second annual trade show and conference is still up in the air, but it's not from any lack of interest on the part of exhibitors. It already has 80 booths filled, with a waiting list of suppliers. Entitled "West Coast 2000 &emdash; Gateway to Prosperity," the event will be held March 3-4, 2000, at the Delta Pacific Resort and Conference Centre in Richmond.

The final go-ahead for the second edition of this event hinges on dealer pre-registration &emdash; and the goal is 100 by December 9.

"I'm fairly comfortable that we'll hit our target," says John Physick, general manager of Delroc Industries and chairman of the trade show and convention committee. The boost, he says, will come from making it a buying show, with support from suppliers to offer real show deals, prizes and specials.

Home Depot Canada has confirmed its initial sites for Québec, all of them in the Montréal area. The first one will be in Lachanie, followed by Gatineau. Laval is one of the areas being considered for a third site. All are expected to open in 2000.

For the third quarter ended October 31, Hudson's Bay Co. had sales and revenues of $1,743.4 million, up 1.6% over the same period last year. Sales and revenue at the Bay increased by 3.4% to $615.6 million and at Zellers the by 0.5% to $1,103.1 million. Same-store sales increased by 4% at the Bay and by 0.9% at Zellers. In the third quarter the company increased net earnings to $14.8 million, from $11.2 million. Both the Bay and Zellers increased profitability as a result of improved merchandising margins. Earnings before interest and taxes (EBIT) at the Bay increased by 6.6% to $25.7 million from $24.1 million. At Zellers EBIT increased 7.8% to $27.7 million from $25.7 million.

Hudson's Bay Co. will acquire seven former Eaton's locations and "additional considerations." The company is negotiating with landlords on several other locations. They are: Pickering and Moncton (to become Bay stores); Ville d'Anjou and Mississauga (Zellers); one new Home Outfitters Superstore in Hamilton; three Bay stores relocated and upgraded in Saskatoon Regina, and Hamilton; and two Bay expansions in Stoney Creek and Laval. In Saskatchewan, the downtown Bay stores in both Regina and Saskatoon will be relocated into the former Eaton's locations in each of these cities. The two existing stores will be closed. In the Lime Ridge Mall in Hamilton, Ont., the Bay store is to be relocated into the larger, former Eaton's location and a Home Outfitters Superstore will be introduced into the current Bay Home store location. New Bay stores will also be opened in the Pickering Town Centre in Pickering, Ont., and in Highfield Square Shopping Centre in Moncton, New Brunswick. It is anticipated that all locations will be open by spring 2000. New Zellers stores will be opened by spring 2000 in Les Galeries d'Anjou in Ville d'Anjou, Qué., and in the Erin Mills Town Centre in Mississauga,Ont.

Barry Hill Sales Associates has been appointed by Better Living Products of Canada to represent its lines in Atlantic Canada.

Atlanta-based Lowe's Cos. has finalized plans to erect a 1.2 million-sq.ft. distribution centre on 100 acres in Perris, Calif. The facility, which will open in 2001, will serve Lowe's growing network of stores in the west and Pacific northwest.

Unican Security Systems Ltd. has acquired 100 % of the shares of Lodging Technology in Roanoke, Va. The company, which specializes in infrared, sensor based systems, has annual sales of $2 million.

Canadian Tire will donate $5 from the sale of its artificial Christmas trees this season to group of six family shelters across Toronto. Through CTC's Foundation for Families organization, contributions will be made to Redwood Shelter for Abused Women, Covenant House in Toronto, North York Women's Shelter, Youth Without Shelter in Etobicoke, Interim Place 1 in Mississauga and Touchstone Youth Service in East Toronto.

Inline Fiberglass America Ltd., a wholly owned subsidiary of Inline Fiberglass Ltd., has entered into an agreement to acquire Owens Corning's patented proprietary fiberglass pultrusion technology and its fiberglass window manufacturing assets located in Hazleton, Penn. As part of the agreement, Owens Corning will supply Inline with heavy density fiberglass insulation, which is an integral part of the window frame and sash to be manufactured by Inline at the Hazleton facility.

Wal-Mart Stores in the U.S. reported net sales for the four-week period ended November 26 of US$15,023 million, a 24% increase over the US$12,113 million in the similar period a year earlier. Sales for the 43-week period were US$130,319 million, an increase of 19.5% from the US $109,026 million in the similar period in the prior year.

CANADIAN STOCK WATCH

COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	46.00	29.00	34.40
Canfor	16.40	4.25	16.40
Goodfellow	11.80	6.00	10.60
Hudsons Bay	23.85	4.00	18.75
MacMillan Blo.	27.85	12.05	24.50
Sears Canada	38.70	15.25	38.70
Taiga Forest	14.75	8.65	13.40
West Fraser	41.00	9.05	29.35

"Talent is formed in quiet, character in the stream of human life."
&emdash; Goethe

PEOPLE ON THE MOVE

Carlyle Smith has been named chairman of LBM sales for Canada at Mitten Vinyl Inc.. This responsibility has been added to his current position as the territory manager for Nova Scotia, Newfoundland and P.E.I. He reports directly to the president. (902-468-3363) … Ernie Klinger has been promoted to western regional manager for Canada. His most recent position was territory manager for Mitten's branches in Alberta. He reports directly to the president. (780-468-5222)

Al Dueck has joined Inline Fiberglass Ltd. as vice-president marketing . He was formerly with Willmar Windows. (416-679-1171)

Tim Surbey has been apppointed western regional manager for Canadian In-Store Merchandising Ltd. He was formerly with Aikenheads/Home Depot as an assistant store manager, then with Staples as a store manager. (800-265-0154)

John Alston is retiring at the end of January, 2000, as head of Hoover Canada … Alston's replacement is Les Pulchinski, who started at Hoover on November 29. Pulchinski's retail experience includes store manager responsibilities and head office responsibilities with Eaton's. (905-335-3311)

&endash; Shoplifters are most likely to target CDs, sneakers, earrings and health and beauty products this Christmas season, according to a U.S. survey, Retail Theft Trends Report. But shoplifters should think twice before pilfering from discount stores, as they lead the nation's retailers in apprehending shoplifters. The report analyzes 166,000 shoplifting incidents submitted by 101 retail firms.

The study was conducted by Loss Prevention Specialists - Prevention Strategies Group with a funding grant from Sensormatic Electronics.

While a majority of shoplifters are adults, juveniles continue to represent a disproportionate percentage of shoplifters as compared to the overall U.S. population. Teenagers between aged 13-17 represented 25% of all shoplifters, the largest age group of shoplifters in the study. The average theft amount per incident was US$60.74, up from US$58.43 in 1997. More males (43%) than females (34%) were reported as shoplifters.

Here's why:

1. Escorted travel from Toronto to Cologne via Frankfurt -let us help you make your voyage worry-free by taking care of the details.

2. "Canada Night" Reception in Cologne&endash; A night of networking with fellow Canadian retailers and vendors, and a presentation by key European buyers.

3. Pre-show seminar &endash; Hardlines and the Canadian office of the Cologne Trade Fairs will jointly present tips on how to maximize your presence at the Show.

4. Hardlines Handbook of the European market &endash; a helpful guide to European markets.

5. Store tours &endash; We'll take you on a tour of the European big-boxes and independents so you can take home the latest ideas for merchandising, packaging and store layout.

6. Spouses' program &endash; Join us to discover the sights and scenes of historic Cologne.

Come to the Cologne International Hardware Fair/DIY'TEC with HARDLINES, March 12-15, 2000, in Cologne, Germany.

Travel to the International Hardware Fair in Cologne to position yourself as a key player in the 21st century. Find out where the growth opportunities lie, discover how the world's markets are changing and learn about the latest new products.

Hardlines has arranged special travel packages that will make your trip painless and affordable. Not only will we help you with your travel arrangements, but we'll also ensure your trip is beneficial to both you and your company.

Affordable, comprehensive travel packages are available in two- and five-star accommodations. Just email us for more information. Our recommended Canadian travel agent will contact you to arrange your personalized travel package.

* * * * * * *

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.