| CANADIAN TIRE REPORTS STRONG RESULTS |
Toronto, ON — Despite a soft December, Canadian Tire Corp. ended the fourth quarter — and the year — on a strong note. Overall 4Q retail sales reached $2.1 billion, up 12.6% over the same period a year earlier, while earnings hit $62.3 million, a 55.8% increase.
 Lack of snow before Christmas in many markets depressed seasonal sales for Canadian Tire dealers. In addition, the company's retreat from low-margin home electronics and toys to more high-end giftwares adversely affected sales more than anticipated. As a result, sales in the fourth quarter dropped 0.4% from 4Q 2001 and same-store sales fell 2.5%.
For the year, however, total sales at retail (a combination of Canadian Tire retail, Mark's Work Wearhouse, PartSource and gas stations) climbed 11.6% to $7.2 billion. Although sales by Mark's were essentially flat, the Mark's acquisition added incremental sales of $480 million. Sales by Canadian Tire member dealers were up only 4.7% to $5.8 billion in 2002. Same-store sales were up 1.4%.
Consolidated operating revenue for the whole company reached $5.9 billion, a 10.6% increase over the company's top line in 2001. Net earnings grew 14.6% to $202.4 million from $176.7 million in 2001.
|
| KENT READIES FOR HOME DEPOT ARRIVAL IN MONCTON |
Moncton, NB — The much anticipated arrival of Home Depot to this city will occur later this Spring. It will be only the third Home Depot store in Atlantic Canada (the others are in Halifax and Dartmouth, NS). The store is expected to be about 95,000 sq.ft., but despite its slightly smaller size, Moncton is considered by many to be overstored already in the home improvement sector.  Either way, the Kent Superstore, located on Trinity Drive, right on the other side of the highway, has been preparing for the new competition for at least a year.
The big box store has been undergoing a fine tuning, including better displays and extensive remerchandising. The store, which has typically enjoyed some healthy margins, has also been getting more competitive, as prices have been lowering over the past year. |
| RONA JOINS FORCES WITH QUÉBEC CREDIT CARD COMPANY |
| Boucherville, QC — Rona Inc. has signed a 10-year partnership agreement with Desjardins Group, the largest financial institution in Québec and sixth largest in Canada. The deal, effective this Spring, enables Rona to offer customers a trio of credit card options with no fees, called "Rona Visa Desjardins" in Québec and "Rona Community Visa" in the rest of Canada.
The first card, for consumers, is a Visa card co-branded with Rona. It's usable anywhere and gives customers access to special card options at Rona stores. It also makes card holders eligible for personal financing instore. Called "Financement accord D" in Québec, and "Community Retail Financing" in the rest of Canada, the program creates a profile of each card holder. This profile, accessible at POS, gives the customer the option to use either their Visa card or get longer-term financing at favourable interest rates when buying materials for larger projects.
The program has been on trial for about 18 months in Rona's big box store in Brossard, QC. "A lot of consumers find this possibility for financing good, because it's an easier way to get credit for a home improvement project," says Sylvain Morissette, communications director for Rona. "It takes only about 20 minutes — right in the store."
The other two cards, one for contractors and one for institutions and government agencies, will be a private-label card. "For our professional customers, it's another way for them to lower their cost of operations," says Morissette. "It provides a monthly bill that's easier than establishing credit at just one Rona store." |
| COMPANY |
52-WEEK HIGH |
52-WEEK LOW |
CLOSE THURS.AM. |
| Canadian Tire |
33.65 |
23.96 |
29.14 |
| Canfor |
11.70 |
6.83 |
9.46 |
| Costco |
46.90 |
27.09 |
28.92 |
| Emco |
14.23 |
7.25 |
14.00 |
| Goodfellow |
13.99 |
9.50 |
10.95 |
| Home Depot |
52.60 |
20.10 |
21.35 |
| Hudson's Bay |
15.55 |
5.87 |
8.98 |
| Lowe's Cos. |
49.99 |
32.50 |
34.96 |
| Rona Inc. |
14.75 |
11.75 |
12.35 |
| Sears Canada |
25.10 |
15.15 |
17.51 |
| Sodisco-Howden |
2.20 |
1.06 |
1.50 |
| Taiga Forest |
7.00 |
5.05 |
6.85 |
| Wal-Mart |
63.94 |
43.72 |
46.15 |
| West Fraser |
44.42 |
28.90 |
40.00 |
|
| MARKET INDICATORS |
| The rate of housing starts in Canada fell 8.7% in January to 183,200 seasonally adjusted, compared with 200,700 units in December, says CMHC. Urban single starts decreased 7.6% to 97,800 units in January from 105,800 units in December; urban multiples decreased 8.0% to 63,700 units in January from 69,200 seasonally adjusted in December. Estimated actual urban housing starts for January 2003 are 17.2% lower than for January 2002 (9,683 units compared with 11,689 units). The single-detached market increased 6.0%, while multiples decreased 34.2%. The slow start to the year is attributed to extremely cold temperatures and the high levels of housing starts in preceding months. In fact, rates overall in 2002 were up 25.9% over 2001.
The New Housing Price Index rose 0.3% in December from November, says Stats Canada. Year over year, the index of contractors' selling prices was up 5.1%, the highest 12-month increase in more than 12 years. Monthly rises occurred in 12 of the 21 urban centres surveyed, with the largest increases in St. Catharines-Niagara (+0.9%) and Calgary (+0.8%).
In December, consumers cut back their spending in department stores, says Stats Canada, causing sales to decline 0.3% from their November level to $1.75 billion seasonally adjusted. Department store sales levels have remained high since the start of 2002, hovering around a monthly average of $1.75 billion. Sales in 2002 totalled $21.0 billion, up 6.0% from 2001, which in turn was up 7.9%. The sales growth recorded in 2002 from 2001 was accompanied by an increase in the number of locations, with the annual average rising from 732 to 742 department stores in Canada. |
|
|
| COMPANIES IN THE NEWS |
| Oregon-based Jeld-Wen has announced a strategy to consolidate its brands in North America under the Jeld-Wen name. This includes the changing its Canadian operation from Henderson Wholesale Building Materials to come under the Jeld-Wen name. Jeld-Wen of Canada acquired Henderson in 1998. The move is expected to establish much greater awareness for company's brand name to consumers, distributors and builders alike.
Taiga Forest Products recorded 3Q sales of $203 million. That's up from $182 million for the same period in the previous year. Earnings for the quarter were $364,000, compared with $1.8 million. Sales for the nine months ending December 31, 2002 were $703 million, up from $648 million. Profits for the same period climbed to $8.5 million from $5.5 million. During the quarter, Taiga acquired LP Corp.'s Rocklin, CA building products distribution centre.
West Fraser Timber Co. Ltd. announced 4Q earnings of $36 million on sales of $405 million, compared with earnings of $11 million on sales of $364 million in 4Q 2001. For the year, earnings were $138 million on sales of $1.63 billion, up from earnings of $115 million on sales of $1.56 billion in 2001. The yearly earnings increase was due primarily to increased production, along with lower unit costs.
Home Depot chairman and CEO Bob Nardelli says the company needs a president as part of its succession planning, but he hasn't given a timetable for the appointment. He has hinted, though, that the job will be given to someone inside the company. Nardelli left GE in 2000 to become president and CEO of Home Depot. He assumed the chairman's title last year.
Shoppers Drug Mart, Canada's largest pharmacy chain, posted 4Q profits of $62 million, up from $4 million for the same period a year earlier. For the year, the retailer earned $209 million, up from $7 million. Sales for the year rose 8.9% to $5.44 billion; same-store sales increased 7%. Shoppers expects sales in 2003 to increase 11%-12%, with growth coming from the development of large-format stores and expansion of its merchandise offerings. It also wants to revitalize its private label offerings.
JDA Software Group Inc. has awarded $5.24 million of JDA Portfolio space, category management and planning software and services to Ryerson University, School of Retail Management. Ryerson will use the Portfolio applications to teach visual merchandising, product and demand planning, customer data analysis and assortment optimization. The Ryerson School of Retail Management offers the only university-level degree in retail management in Canada.
Americans are responding to the threat of war with Iraq by stocking up on supplies at their local hardware stores. People are buying everything from wood stoves and drums to collect rainwater to duct tape and plastic sheeting. Stores are stocking up on lamp oil, batteries and other emergency supplies.
Wal-Mart's anti-union policies are finally catching up with it. It currently faces about 40 lawsuits in the U.S. from employees for everything from unpaid overtime to sexual discrimination. Labour groups are starting to work together, intensifying efforts to get higher wages and better conditions. |
| PEOPLE ON THE MOVE |
| Kingfisher plc has named Philippe Tible the new chief executive of Castorama France, effective February 17. He will report to Kingfisher CEO Gerry Murphy. A veteran retailer, Tible spent a decade with French home improvement retailer Leroy Merlin. He was most recently CEO of Mille Amis, a pet food retailer. He replaces Didier Hernoux, who has been acting chief executive since August 2002. |
|
|
****HARDLINES MARKETPLACE****
Check out Hardlines Classifieds on the web:
https://hardlines.ca/html/classifieds_new.asp
HELP WANTED
NATIONAL SALES MANAGER—CANADA
Air King Limited, a leading and growing Manufacturer of Consumer Ventilation & Humidification Products since 1961, is currently seeking a National Sales Manager — Canada.
This senior-level individual must have the ability to initiate, expand and maintain relationships with primary retail customers and retail buying groups. The person will call on national retail accounts and manage a network of successful retail sales representatives. Candidate must have 3-5 years of retail customer sales experience preferably with seasonal products. Communication ability, analytical/organizational skills, effective computer use, and leadership qualities are essential. Minimum expectation is an undergraduate degree; MBA is preferred. Travel required.
We are prepared to offer an attractive starting salary plus a comprehensive benefit package. If interested, send your Resumé with salary history to: Air King Limited, 110 Glidden Road, Brampton, ON L6T 2J3. Fax: (905) 456-1015; Attention: Human Resources Department. No Phone Calls Please.
***********************************************************************************
ONTARIO SALES REPRESENTATIVE
Leading manufacturer of Flooring Related Products has an immediate opening for an ONTARIO SALES REPRESENTATIVE. The ideal candidate will have 3-5 years of sales experience as well as a post-secondary degree/diploma in a related field. Your sales background will include thorough knowledge in sales forecasting/budgeting as well as call reporting using the MS Office Suite. You must have strong communication and interpersonal skills, the ability to recognize customer and market needs and a proven ability to follow up and close on those opportunities.
This position is best suited to individuals who possess mechanical/technical aptitude and who feel comfortable demonstrating products and various applications. Knowledge of the Flooring Industry would be an asset. A clean driving record and the ability to travel within Ontario is a must. If you feel you are qualified for this role, please email your resumé, along with income requirements bev@hardlines.ca (put Box 317 in the subject line) or fax c/o Box 317, 416-489-6154.
***********************************************************************************
SALES REP AND TRAINER
Cognicase-Omni, the largest provider of Turn-Key Management Solutions for the Hardware and Building Supply Industry, is now expanding by opening an office in the Vancouver area. We are looking for career minded individuals who enjoy working in the hardware and building material business and have an interest in assisting dealers by providing management solutions.
Computer experience is not necessary but preference will be given to those that have industry experience and want to work closely with a proven Software system. Positions are available in Sales and Training.
Please submit a resumé by email to Frank Rizzo, frizzo@attcanada.ca
***********************************************************************************
REP/AGENCY WANTED
Polar Distribution is looking for reps calling on the electrical distributors and retail electrical departments. We are introducing a new ETL/CSA approved mounting block (e-mount) for exterior applications for light fixtures and electrical receptacles.
Please forward your companies details to dynamics@rogers.com. Click on www.polardistribution.com for product details.
***********************************************************************************
NEW PRODUCTS
 Look at what’s new from Bakor, Canada’s leader in roofing, waterproofing and air barrier systems.
We can show you how to increase profit performance and customer satisfaction plus build your contractor business with our quality programmes for roof repair, waterproofing and driveway maintenance.
Visit www.bakor.com to find out more or call Kim Whitehouse 1-800-387-9598, ext. 227.
**********************************************************************************
SERVICES OFFERED
YOU CAN’T SELL WHAT YOU DON’T KNOW!
NORAL INSTORE:
We train sales associates to understand
your products. Because in retail,
KNOWLEDGE IS SALES!
Visit http://www.noralmarketing.com
or call Al Vanderveen at 519-439-6800 ext. 201
**********************************************************************************
SELL YOUR COMPANY - OR BUY ONE - WITH HARDLINES CLASSIFIEDS!
DO YOUR EXECUTIVE SEARCH, FIND NEW LINES OR GET NEW REPS IN THE HARDLINES MARKETPLACE.
ONLY $18 PER LINE FOR THREE WEEKS IN THE CLASSIFIEDS, OR ASK FOR THE NEW PRODUCT SPECIAL RATES!
TO PLACE YOUR AD, CALL US AT 416-489-3396 OR EMAIL: bev@hardlines.ca
|
vol. ix, 7 February 17, 2003