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Beverly Allen, Publisher bev@hardlines.ca Vicky Sanderson, Editor vicky@hardlines.ca John Caulfield, Contributing Editor Phone: 416-489-3396 |
February 25, 2008, Vol. xiv, #8 |
In This Issue | ||||||
“I never think of the future - it comes soon enough.” Albert Einstein |
||||||
RONA sees sharp drop in sales in 2007 | ||||||
BOUCHERVILLE, QC — RONA reported 2007 earnings of $185.million on $4.8 billion in sales, down 2% from 2006, a drop the company is attributing to the fact that 2006 had an extra selling week. On a comparable basis, the company says, sales actually increased 7.1%, spurred by acquisitions that included Noble Trade, Curtis Lumber, and Mountain Building Centres, and by new store openings. Consolidated sales for 2007 stood at $4,785 million, or 5.1% higher than the $4,551 million posted in 2006. Excluding a drop caused by a fall in the average price of forest products and the impact of the 53rd week in 2006, same-store sales decreased by 0.8% over the year. But the fourth quarter of 2007 was undeniably tough for RONA. Net earnings stood at $30.5 million, down 20% from $38.1 million in 2006. Consolidated sales for the quarter were down 4.8% from the previous year, while operating income stood at $75.9 million, down 12.5% from the corresponding quarter in the previous year. RONA president and CEO Robert Dutton says the slowdown is reflective of what’s happening across the sector, adding that same-store sales rose in Western Canada, where the economy continues to boom, but Quebec and Ontario felt the effect of heavy losses in manufacturing jobs in 2007. | ||||||
New plan aims to reposition RONA | ||||||
BOUCHERVILLE, QC — RONA CEO Robert Dutton stresses that although the company did not achieve its objective of $7 billion in annualized retail sales in 2007, it will take action to combat the increasing effect of a slowing economy. Those measures will be explained in detail on Feb. 27, when the company unveils its strategic plan for 2008-2011. That plan is expected to expand on some of the initiatives to which Dutton alluded during a conference call last week to announce the company’s year-end results. They include improving staff training and customer service, promoting loyalty programs such as Air Miles more heavily, speeding up the launch of new stores, and reducing shrinkage. More importantly, RONA will review the performance of some of its long-established corporate stores that chronically underperform. These would likely include its big boxes in Ontario, which continue to struggle to be profitable. | ||||||
Designer Depot may be on sale block | ||||||
TORONTO — Hudson’s Bay Co. is in talks with Isaac Benitah, who runs several Canadian retail chains, about selling its Designer Depot division, according to a report in the Globe and Mail. Hbc spokeswoman Hillary Marshall was quoted in the report as saying that Hbc is “looking at its options” for the nine-store chain that launched in 2004. The report also cited industry sources who suggested that the sale might be part of larger plan by owner Jerry Zucker to shed other Hbc formats, which include The Bay, Zellers, Home Outfitters and Fields. Designer Depot, a discount chain that has a home and housewares component, has stores in Ontario and Alberta. But a separate report by the Canadian Press said that the sale did not in fact indicate a broader disposal of assets. “No, no. That's ridiculous,” that report quotes Marshall as saying. “There's just nothing to it.” Zucker, who bought Hbc two years ago, said at the time that he wanted to improve performance across the company by providing customers with better assortments and enhanced service. Earlier this year, after a disappointing holiday season, Hbc cut 100 employees, a move the company said was tied to its decision to transfer most head office operations from Toronto to Brampton. Hbc has more than 600 retail outlets and nearly 70,000 associates in Canada. | ||||||
Selkirk celebrates 75th anniversary | ||||||
![]() |
||||||
Builders Show a barometer of industry's struggles | ||||||
ORLANDO, FL — Are you green enough? And are you going to survive? Those were the two questions that were on the minds of the builders and suppliers who attended the annual International Builders Show here this week. Attendance at the show was about 92,000, down 12% from last year, reflecting an industry that’s in the depths of a housing slump and credit crunch which is negatively impacting the entire U.S. economy. In fact, some the best-attended seminars at the show dealt with the topic of how to survive the downturn. The news, right before the show, that Wheeler’s, a once-highflying pro dealer based in Georgia, had filed for bankruptcy protection only accentuated the vulnerability of dealers that cater to the construction industry. However, not everyone sees the downturn or the show’s lighter attendance in dire terms. “The people who are at this show are the ones who are going to survive,” predicts Frank Cicero, executive vice-president of operations for 84 Lumber, one of several dealers that exhibited at the show. Others included ProBuild, Carter Lumber, and Home Depot and Lowe’s, which each had huge booths. Many of the exhibitors promoted the “greenness” of their products, and green building took centre stage with the National Association of Home Builders’ launch of its National Green Building certification program. | ||||||
|
||||||
Marketplace |
||||||
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 $2.75 per word for three weeks in the classifieds.
To place your ad, call Brady Peever at 416-489-3396 or email: brady@hardlines.ca
|
||||||
To ensure you receive your HARDLINES newsletter each week, please add admin@HARDLINES.ca to your address book.
Did your email system make this newsletter unreadable? You can read it online instead . Publishing Details: HARDLINES is published weekly (except monthly in December and August) by HARDLINES Inc. 360 Dupont Street Toronto, Ontario, Canada M5R 1V9 © 2008 by HARDLINES Inc. HARDLINES™ the electronic newsletter www.HARDLINES.ca ; Phone: 416.489.3396; Fax: 416.489.6154 Beverly Allen, Publisher - bev@HARDLINES.ca Vicky Sanderson - Editor - vicky@HARDLINES.ca Michael McLarney - President - mike@HARDLINES.ca Brady Peever - Circulation Manager - brady@HARDLINES.ca The HARDLINES "Fair Play" Policy:Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read HARDLINES each week - but let us handle your internal routing from this end! Subscription: $285 (Canadian subscribers add $14.25 GST = $299.25 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $46 (Canadian subscribers add $2.30 GST = $48.30). Ask about our reduced rate for branch offices. You can pay online by VISA/MC/AMEX at our secure website or send us money. Please make cheque payable to HARDLINES. |
Are you ready for 2008? Do you know the four hot trends that will help you prosper this year? How Canadian Tire infiltrated Lowe’s merchandise mix? Which pivotal events in 2007 will guide your business in the year ahead? Find out in the 1Q edition of HQR, available soon! |
COMPANIES IN THE NEWS |
BOUCHERVILLE, QC — RONA has partnered with a new television channel just launched in Quebec. Titled “Les idees des ma maison,” it will feature original content produced by RONA, including “Les idees des Martin,” a short program hosted by Québécois actor Martin Thibaudeau that will run three times daily. Thibaudeau will invite RONA experts into his workshop to give advice and tips. RONA hopes that the channel will mirror the success of specialty home-and-garden programming being produced in the U.S. and provide a direct link to Quebec television viewers. NEW YORK — Manulife Financial Corp., Canada's largest insurance company, has entered the resources sector with a $1.7 billion deal to acquire a 9,000-acre land portfolio spread across Texas, Arkansas and Louisiana. The move is expected to shield the company from volatile stock prices. With a log shortage looming for the lumber and paper industries, the land’s value is expected to increase sharply. SAN FRANCISCO — Wal-Mart will no longer carry Toshiba’s HD-DVD format, choosing instead to offer Sony’s Blu-Ray technology. The announcement came in the same week that electronics giant Best Buy announced that they too would stock only Blu-Ray titles. Toshiba reacted to the news by cancelling development of any new HD-DVD devices. The company will continue to sell HD-DVD equipment in stores but has ceased new production. |
People on the Move |
Eric Hodson has been named manager of the IRLY Building Centre in Sorrento, BC. Hodson had previously managed IRLY Building Centres in Clinton, Prince Rupert and Salmon Arm. Ronald L. Jadin has been promoted to senior vice-president and chief financial officer at W. W. Grainger Inc. Building Material Holding Corp. has named Stanley Wilson as its new president and COO. |
Economic Indicators |
Consumer prices rose 2.2% during the 12-month period leading into January, just below the 2.4% posted in December. The merchandise trade surplus shrank to its lowest level in nine years in December 2007. Exports fell 3.1% to $36.7 billion, while prices rose 3.6%. Manufacturing sales dropped 3.4% to $48.6 billion in December 2007, the lowest level in three years. Wholesale sales fell 2.9% in December to $42.7 billion. The decline was the largest since April and brought monthly sales to their lowest level since November 2006. (StatsCan) |
In Memoriam |
Bob Hilton, formerly manager of sales for 3M Canada, passed away last week. Bob was a good friend and a loyal supporter of HARDLINES. We’ll miss him. |
![]() |
Beverly Allen, Publisher bev@hardlines.ca Vicky Sanderson, Editor vicky@hardlines.ca John Caulfield, Contributing Editor Phone: 416-489-3396 |
February 25, 2008, Vol. xiv, #8 |
In This Issue | ||||||
“I never think of the future - it comes soon enough.” Albert Einstein |
||||||
RONA sees sharp drop in sales in 2007 | ||||||
BOUCHERVILLE, QC — RONA reported 2007 earnings of $185.million on $4.8 billion in sales, down 2% from 2006, a drop the company is attributing to the fact that 2006 had an extra selling week. On a comparable basis, the company says, sales actually increased 7.1%, spurred by acquisitions that included Noble Trade, Curtis Lumber, and Mountain Building Centres, and by new store openings. Consolidated sales for 2007 stood at $4,785 million, or 5.1% higher than the $4,551 million posted in 2006. Excluding a drop caused by a fall in the average price of forest products and the impact of the 53rd week in 2006, same-store sales decreased by 0.8% over the year. But the fourth quarter of 2007 was undeniably tough for RONA. Net earnings stood at $30.5 million, down 20% from $38.1 million in 2006. Consolidated sales for the quarter were down 4.8% from the previous year, while operating income stood at $75.9 million, down 12.5% from the corresponding quarter in the previous year. RONA president and CEO Robert Dutton says the slowdown is reflective of what’s happening across the sector, adding that same-store sales rose in Western Canada, where the economy continues to boom, but Quebec and Ontario felt the effect of heavy losses in manufacturing jobs in 2007. | ||||||
New plan aims to reposition RONA | ||||||
BOUCHERVILLE, QC — RONA CEO Robert Dutton stresses that although the company did not achieve its objective of $7 billion in annualized retail sales in 2007, it will take action to combat the increasing effect of a slowing economy. Those measures will be explained in detail on Feb. 27, when the company unveils its strategic plan for 2008-2011. That plan is expected to expand on some of the initiatives to which Dutton alluded during a conference call last week to announce the company’s year-end results. They include improving staff training and customer service, promoting loyalty programs such as Air Miles more heavily, speeding up the launch of new stores, and reducing shrinkage. More importantly, RONA will review the performance of some of its long-established corporate stores that chronically underperform. These would likely include its big boxes in Ontario, which continue to struggle to be profitable. | ||||||
Designer Depot may be on sale block | ||||||
TORONTO — Hudson’s Bay Co. is in talks with Isaac Benitah, who runs several Canadian retail chains, about selling its Designer Depot division, according to a report in the Globe and Mail. Hbc spokeswoman Hillary Marshall was quoted in the report as saying that Hbc is “looking at its options” for the nine-store chain that launched in 2004. The report also cited industry sources who suggested that the sale might be part of larger plan by owner Jerry Zucker to shed other Hbc formats, which include The Bay, Zellers, Home Outfitters and Fields. Designer Depot, a discount chain that has a home and housewares component, has stores in Ontario and Alberta. But a separate report by the Canadian Press said that the sale did not in fact indicate a broader disposal of assets. “No, no. That's ridiculous,” that report quotes Marshall as saying. “There's just nothing to it.” Zucker, who bought Hbc two years ago, said at the time that he wanted to improve performance across the company by providing customers with better assortments and enhanced service. Earlier this year, after a disappointing holiday season, Hbc cut 100 employees, a move the company said was tied to its decision to transfer most head office operations from Toronto to Brampton. Hbc has more than 600 retail outlets and nearly 70,000 associates in Canada. | ||||||
Selkirk celebrates 75th anniversary | ||||||
![]() |
||||||
Builders Show a barometer of industry's struggles | ||||||
ORLANDO, FL — Are you green enough? And are you going to survive? Those were the two questions that were on the minds of the builders and suppliers who attended the annual International Builders Show here this week. Attendance at the show was about 92,000, down 12% from last year, reflecting an industry that’s in the depths of a housing slump and credit crunch which is negatively impacting the entire U.S. economy. In fact, some the best-attended seminars at the show dealt with the topic of how to survive the downturn. The news, right before the show, that Wheeler’s, a once-highflying pro dealer based in Georgia, had filed for bankruptcy protection only accentuated the vulnerability of dealers that cater to the construction industry. However, not everyone sees the downturn or the show’s lighter attendance in dire terms. “The people who are at this show are the ones who are going to survive,” predicts Frank Cicero, executive vice-president of operations for 84 Lumber, one of several dealers that exhibited at the show. Others included ProBuild, Carter Lumber, and Home Depot and Lowe’s, which each had huge booths. Many of the exhibitors promoted the “greenness” of their products, and green building took centre stage with the National Association of Home Builders’ launch of its National Green Building certification program. | ||||||
|
||||||
Marketplace |
||||||
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 $2.75 per word for three weeks in the classifieds.
To place your ad, call Brady Peever at 416-489-3396 or email: brady@hardlines.ca
|
||||||
To ensure you receive your HARDLINES newsletter each week, please add admin@HARDLINES.ca to your address book.
Did your email system make this newsletter unreadable? You can read it online instead . Publishing Details: HARDLINES is published weekly (except monthly in December and August) by HARDLINES Inc. 360 Dupont Street Toronto, Ontario, Canada M5R 1V9 © 2008 by HARDLINES Inc. HARDLINES™ the electronic newsletter www.HARDLINES.ca ; Phone: 416.489.3396; Fax: 416.489.6154 Beverly Allen, Publisher - bev@HARDLINES.ca Vicky Sanderson - Editor - vicky@HARDLINES.ca Michael McLarney - President - mike@HARDLINES.ca Brady Peever - Circulation Manager - brady@HARDLINES.ca The HARDLINES "Fair Play" Policy:Reproduction in whole or in part is very uncool and strictly forbidden and really and truly against the law. So please, play fair! Call for information on multiple subscriptions or a site license for your company. We do want as many people as possible to read HARDLINES each week - but let us handle your internal routing from this end! Subscription: $285 (Canadian subscribers add $14.25 GST = $299.25 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $46 (Canadian subscribers add $2.30 GST = $48.30). Ask about our reduced rate for branch offices. You can pay online by VISA/MC/AMEX at our secure website or send us money. Please make cheque payable to HARDLINES. |
Are you ready for 2008? Do you know the four hot trends that will help you prosper this year? How Canadian Tire infiltrated Lowe’s merchandise mix? Which pivotal events in 2007 will guide your business in the year ahead? Find out in the 1Q edition of HQR, available soon! |
COMPANIES IN THE NEWS |
BOUCHERVILLE, QC — RONA has partnered with a new television channel just launched in Quebec. Titled “Les idees des ma maison,” it will feature original content produced by RONA, including “Les idees des Martin,” a short program hosted by Québécois actor Martin Thibaudeau that will run three times daily. Thibaudeau will invite RONA experts into his workshop to give advice and tips. RONA hopes that the channel will mirror the success of specialty home-and-garden programming being produced in the U.S. and provide a direct link to Quebec television viewers. NEW YORK — Manulife Financial Corp., Canada's largest insurance company, has entered the resources sector with a $1.7 billion deal to acquire a 9,000-acre land portfolio spread across Texas, Arkansas and Louisiana. The move is expected to shield the company from volatile stock prices. With a log shortage looming for the lumber and paper industries, the land’s value is expected to increase sharply. SAN FRANCISCO — Wal-Mart will no longer carry Toshiba’s HD-DVD format, choosing instead to offer Sony’s Blu-Ray technology. The announcement came in the same week that electronics giant Best Buy announced that they too would stock only Blu-Ray titles. Toshiba reacted to the news by cancelling development of any new HD-DVD devices. The company will continue to sell HD-DVD equipment in stores but has ceased new production. |
People on the Move |
Eric Hodson has been named manager of the IRLY Building Centre in Sorrento, BC. Hodson had previously managed IRLY Building Centres in Clinton, Prince Rupert and Salmon Arm. Ronald L. Jadin has been promoted to senior vice-president and chief financial officer at W. W. Grainger Inc. Building Material Holding Corp. has named Stanley Wilson as its new president and COO. |
Economic Indicators |
Consumer prices rose 2.2% during the 12-month period leading into January, just below the 2.4% posted in December. The merchandise trade surplus shrank to its lowest level in nine years in December 2007. Exports fell 3.1% to $36.7 billion, while prices rose 3.6%. Manufacturing sales dropped 3.4% to $48.6 billion in December 2007, the lowest level in three years. Wholesale sales fell 2.9% in December to $42.7 billion. The decline was the largest since April and brought monthly sales to their lowest level since November 2006. (StatsCan) |
In Memoriam |
Bob Hilton, formerly manager of sales for 3M Canada, passed away last week. Bob was a good friend and a loyal supporter of HARDLINES. We’ll miss him. |