February 7, 2000 - Volume vi, #5 Michael McLarney, Editor & Publisher Ph: 416-489-3396 Fx: 416-489-6154  
Check out our incredible Classifieds section!
VISIT HARDLINES AT CHS: BOOTH #5117 Drop by and visit us at the Canadian Hardware and Building Materials Show, February 6-8, 2000. Say 'hello', share the latest industry gossip and help us celebrate our fifth anniversary "We can't believe we're still in business" celebration! The Hardlines Show Breakfast is going to be packed!   With huge thanks to this year's sponsors: * * * * * * * Time to build the sales team? Looking for agents or new lines? Want to announce new products or services? See our "Page Three Marketplace" at the bottom of this issue. Hardlines Classifieds get results fast. They cost only $16 per line for two weeks. Call Beverly at 416-489-3396, ext. 2, for more details. -- Michael  
This week in Hardlines:   NEWSMAKERS HONOURED AT SHOW BREAKFAST Home Hardware and Sodisco-Howden Group shared the honour of being chosen Hardlines Newsmaker of the Year for 1999. The awards were presented at the fifth annual Hardlines Show Breakfast, which opened the Canadian Hardware and Building Materials Show on February 6, 2000. In a deal that had become a lightning rod for industry speculation for years, Beaver was acquired by Home Hardware last fall. Home will add Beaver's 138 joint venture dealers, with sales of $684 million in 1998, to its own $2.1 billion network of 960 hardware and building centres. This deal has conceivably had more impact on this industry than any other event of 1999. The last year of the century would have been a banner year for Sodisco-Howden even if its Howden Division had not been preparing to celebrate its 100th anniversary. A series of aggressive initiatives regularly put Sodisco-Howden in the news. The reformation of the Spancan buying group, a groundbreaking deal with I.L.D.C., aggressive streamlining of its banner programs, and the development of the Air Miles and Welcome Neighbour dealer programs were all part of a strategic plan that was capped by several successive quarters of increased * * * * * * * RONA ADDS NEW DIVISION, NEW VP As part of RONA's plan to go national, it has appointed former Wal-Mart vp Rick Blickstead as president and COO of a newly formed retail division. The move is part of a senior management reorganization at RONA that will separate the company's retail, management, and wholesale functions. Blickstead will oversee development of RONA's large surface stores into Ontario and the rest of Canada. He'll also be in charge of the box stores within Québec. Blickstead's lengthy career in retail includes BiWay and Wal-Mart, both in Canada and the U.S. * * * * * * * DEPOT FOUNDER WILL SPEAK AT HARDLINES CONFERENCE The man who "invented" the big box home improvement retail store concept will be the keynote speaker at the Hardlines Fifth Anniversary Marketing Conference on September 14, 2000. Pat Farrah, executive vice president of merchandising for Home Depot in Atlanta, will head up a roster of industry speakers at the event. They include Bob Obernesser, retail consultant for MacMillan/Doolittle in Chicago, Tim Silk, from the faculty of Ivey Business School at the University of Western Ontario, and Will Rapp, CEO of Gardener's Supply in Burlington, Vermont. The Hardlines Marketing Conference will take place in Toronto on September 14, 2000, from 8:30 a.m. to 3:00 p.m. Close to 200 senior decision makers in hardware and home improvement retailing, wholesaling and manufacturing will attend. Since its inauguration in 1995, the Hardlines Marketing Conference has featured significant players in the Canadian and U.S. hardware and home improvement sindustry as keynote speakers. For more information about the Conference this year, just call us at 416-489-3396. * * * * * * * MUTUAL ADDS MEMBERS Mutual Hardware Inc. has added two new members. Ace Hardware Canada has joined the hardware buying group, along with Gregg Distributors, an industrial hardware distributor based in Edmonton. It specializes in automotive, farm and plumbing hardware. Mutual represents retail, wholesale and industrial distributors. It merged last year with industrial wholesale buying group AHW and now has 28 members, including TruServ Canada, Castle and Federated Co-op.  
COMPANIES IN THE NEWS   Réno-Dépôt has announced the locations for two more Building Box stores in Ontario. The first will open in Cambridge, where it will join an existing Wal-Mart and Canadian Tire at the corner of Hespeler and Highway 401 by September, 2000. The next is in Mississauga at the corner of Highway 401 and Winston Churchill Drive. It will be part of a power centre with at least two other big box stores. Each store will be 125,000 sq.ft. and employ about 300. The Building Box is a division of Réno-Dépôt Inc., which is itself a subsidiary of the French company, Groupe Castorama.   Home Depot Canada opened its fifth store in Edmonton on February 3. The company now employs 950 in that city, including staff at its western lumber distribution centre. Another store will open February 10 in Orleans, Ont., near Ottawa. This will be the third outlet in the capital region.   Canadian Tire Corp. ended 1999 with total sales of $4.7 billion, up 8.8% from $4.3 billion in 1998. Canadian Tire associate dealers saw total retail sales climb 7.7% over 1998, reflecting the increased number of larger, new-format stores. Same-store sales, however, rose only 2.9%. The retail division accounted for sales of $3.8 billion, up 8.2% from the $3.5 billion recorded in 1998. The increase was driven by higher retail sales, which resulted in a year-over-year 8% increase in shipments to associate dealers.   RONA's 12th big box L'entrepôt opened in Brossard, Qué., on February 2. It will comprise 163,000 sq.ft. of selling space and cost $20 million to build.  
  CANADIAN STOCK WATCH
COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
Canadian Tire 46.00 32.50 26.40
Canfor 19.25 4.25 15.50
Goodfellow 12.25 7.50 10.05
Hudsons Bay 23.85 14.00 13.70
Sears Canada 42.50 18.25 39.60
Taiga Forest 14.75 9.40 10.80
West Fraser 41.00 28.00 37.50
    "We have watered our horses in Helicon." &endash; George Chapman (Hey, don't ask me, it just sounds good! &endash; M.M.)  
PEOPLE ON THE MOVE   The Building Box has added to its management team in its new offices in Markham, Ont. John Whicher joins as lumber and building materials merchant. He was formerly vice-president , commodity lumber products at Cashway … Stan Curry, formerly with White Rose, has joined as merchant for nursery and seasonal &endash; Ron Ishmael moves over from Lansing/Revy as hardware and plumbing merchant &endash; Peter Stephens has been appointed merchant in charge of hardlines, paint and electrical. He was formerly with Wal-Mart Canada &endash; Rob McDonald has been appointed director of instore merchandising. His background includes Zellers and Home Depot/Aikenhead's ... Two store managers have also been appointed: Elizabeth Hemmerling comes over from The Office Place &endash; John Patrick, formerly vice-president operations with Zellers, has also become a store manager. (905-479-2500)  
Overheard &endash; "I've got a few things up my sleeve. Other sites are under consideration. We are well ahead of our plan. We're having fun!"&endash; Sylvain Toutant, vice-president marketing and development for Réno-Dépôt Inc., on the company's expansion plans for its Building Box banner in Ontario.    
MARKET INDICATORS   Homeowners spent an average of $1,670 on repairs and renovations in 1998, says Stats Canada, basically unchanged from 1997 and well below the peak of $2,710 in 1989. In 1998, average spending on work contracted out was $1,070. Spending by homeowners on materials has decreased as contractor spending has risen, however. In 1998, they spent an average of $600 on materials for their homes. Rural homeowners spent more than their urban counterparts on repairs and renovations &emdash; $1,720 versus $1,660. They also spent more on materials than urban owners ($800 versus $540). Retail trade climbed 0.6% to $22.0 billion from October to November, 1999, according to Stats Canada. Excluding auto sales, however, the number dropped 0.5%. Department store sales dropped 8.2%, accounting for most of the decline. Retail sales year-to-date were up 5.4% over the first 11 months of 1998, though.  
Hardlines Classifieds   Need to build your sales team? Looking for agents or new lines? Use Hardlines classified ads. They're read by more than 3,000 people every week &emdash; and they get results fast. Only $16 per line for two weeks. Call Beverly Allen at 416-489-3396, ext. 2, for more details. * * * * * * * 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 © 2000 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  
  February 7, 2000 - Volume vi, #5 Michael McLarney, Editor & Publisher Ph: 416-489-3396 Fx: 416-489-6154  
Check out our incredible Classifieds section!
VISIT HARDLINES AT CHS: BOOTH #5117 Drop by and visit us at the Canadian Hardware and Building Materials Show, February 6-8, 2000. Say 'hello', share the latest industry gossip and help us celebrate our fifth anniversary "We can't believe we're still in business" celebration! The Hardlines Show Breakfast is going to be packed!   With huge thanks to this year's sponsors: * * * * * * * Time to build the sales team? Looking for agents or new lines? Want to announce new products or services? See our "Page Three Marketplace" at the bottom of this issue. Hardlines Classifieds get results fast. They cost only $16 per line for two weeks. Call Beverly at 416-489-3396, ext. 2, for more details. -- Michael  
This week in Hardlines:   NEWSMAKERS HONOURED AT SHOW BREAKFAST Home Hardware and Sodisco-Howden Group shared the honour of being chosen Hardlines Newsmaker of the Year for 1999. The awards were presented at the fifth annual Hardlines Show Breakfast, which opened the Canadian Hardware and Building Materials Show on February 6, 2000. In a deal that had become a lightning rod for industry speculation for years, Beaver was acquired by Home Hardware last fall. Home will add Beaver's 138 joint venture dealers, with sales of $684 million in 1998, to its own $2.1 billion network of 960 hardware and building centres. This deal has conceivably had more impact on this industry than any other event of 1999. The last year of the century would have been a banner year for Sodisco-Howden even if its Howden Division had not been preparing to celebrate its 100th anniversary. A series of aggressive initiatives regularly put Sodisco-Howden in the news. The reformation of the Spancan buying group, a groundbreaking deal with I.L.D.C., aggressive streamlining of its banner programs, and the development of the Air Miles and Welcome Neighbour dealer programs were all part of a strategic plan that was capped by several successive quarters of increased * * * * * * * RONA ADDS NEW DIVISION, NEW VP As part of RONA's plan to go national, it has appointed former Wal-Mart vp Rick Blickstead as president and COO of a newly formed retail division. The move is part of a senior management reorganization at RONA that will separate the company's retail, management, and wholesale functions. Blickstead will oversee development of RONA's large surface stores into Ontario and the rest of Canada. He'll also be in charge of the box stores within Québec. Blickstead's lengthy career in retail includes BiWay and Wal-Mart, both in Canada and the U.S. * * * * * * * DEPOT FOUNDER WILL SPEAK AT HARDLINES CONFERENCE The man who "invented" the big box home improvement retail store concept will be the keynote speaker at the Hardlines Fifth Anniversary Marketing Conference on September 14, 2000. Pat Farrah, executive vice president of merchandising for Home Depot in Atlanta, will head up a roster of industry speakers at the event. They include Bob Obernesser, retail consultant for MacMillan/Doolittle in Chicago, Tim Silk, from the faculty of Ivey Business School at the University of Western Ontario, and Will Rapp, CEO of Gardener's Supply in Burlington, Vermont. The Hardlines Marketing Conference will take place in Toronto on September 14, 2000, from 8:30 a.m. to 3:00 p.m. Close to 200 senior decision makers in hardware and home improvement retailing, wholesaling and manufacturing will attend. Since its inauguration in 1995, the Hardlines Marketing Conference has featured significant players in the Canadian and U.S. hardware and home improvement sindustry as keynote speakers. For more information about the Conference this year, just call us at 416-489-3396. * * * * * * * MUTUAL ADDS MEMBERS Mutual Hardware Inc. has added two new members. Ace Hardware Canada has joined the hardware buying group, along with Gregg Distributors, an industrial hardware distributor based in Edmonton. It specializes in automotive, farm and plumbing hardware. Mutual represents retail, wholesale and industrial distributors. It merged last year with industrial wholesale buying group AHW and now has 28 members, including TruServ Canada, Castle and Federated Co-op.  
COMPANIES IN THE NEWS   Réno-Dépôt has announced the locations for two more Building Box stores in Ontario. The first will open in Cambridge, where it will join an existing Wal-Mart and Canadian Tire at the corner of Hespeler and Highway 401 by September, 2000. The next is in Mississauga at the corner of Highway 401 and Winston Churchill Drive. It will be part of a power centre with at least two other big box stores. Each store will be 125,000 sq.ft. and employ about 300. The Building Box is a division of Réno-Dépôt Inc., which is itself a subsidiary of the French company, Groupe Castorama.   Home Depot Canada opened its fifth store in Edmonton on February 3. The company now employs 950 in that city, including staff at its western lumber distribution centre. Another store will open February 10 in Orleans, Ont., near Ottawa. This will be the third outlet in the capital region.   Canadian Tire Corp. ended 1999 with total sales of $4.7 billion, up 8.8% from $4.3 billion in 1998. Canadian Tire associate dealers saw total retail sales climb 7.7% over 1998, reflecting the increased number of larger, new-format stores. Same-store sales, however, rose only 2.9%. The retail division accounted for sales of $3.8 billion, up 8.2% from the $3.5 billion recorded in 1998. The increase was driven by higher retail sales, which resulted in a year-over-year 8% increase in shipments to associate dealers.   RONA's 12th big box L'entrepôt opened in Brossard, Qué., on February 2. It will comprise 163,000 sq.ft. of selling space and cost $20 million to build.  
  CANADIAN STOCK WATCH
COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
Canadian Tire 46.00 32.50 26.40
Canfor 19.25 4.25 15.50
Goodfellow 12.25 7.50 10.05
Hudsons Bay 23.85 14.00 13.70
Sears Canada 42.50 18.25 39.60
Taiga Forest 14.75 9.40 10.80
West Fraser 41.00 28.00 37.50
    "We have watered our horses in Helicon." &endash; George Chapman (Hey, don't ask me, it just sounds good! &endash; M.M.)  
PEOPLE ON THE MOVE   The Building Box has added to its management team in its new offices in Markham, Ont. John Whicher joins as lumber and building materials merchant. He was formerly vice-president , commodity lumber products at Cashway … Stan Curry, formerly with White Rose, has joined as merchant for nursery and seasonal &endash; Ron Ishmael moves over from Lansing/Revy as hardware and plumbing merchant &endash; Peter Stephens has been appointed merchant in charge of hardlines, paint and electrical. He was formerly with Wal-Mart Canada &endash; Rob McDonald has been appointed director of instore merchandising. His background includes Zellers and Home Depot/Aikenhead's ... Two store managers have also been appointed: Elizabeth Hemmerling comes over from The Office Place &endash; John Patrick, formerly vice-president operations with Zellers, has also become a store manager. (905-479-2500)  
Overheard &endash; "I've got a few things up my sleeve. Other sites are under consideration. We are well ahead of our plan. We're having fun!"&endash; Sylvain Toutant, vice-president marketing and development for Réno-Dépôt Inc., on the company's expansion plans for its Building Box banner in Ontario.    
MARKET INDICATORS   Homeowners spent an average of $1,670 on repairs and renovations in 1998, says Stats Canada, basically unchanged from 1997 and well below the peak of $2,710 in 1989. In 1998, average spending on work contracted out was $1,070. Spending by homeowners on materials has decreased as contractor spending has risen, however. In 1998, they spent an average of $600 on materials for their homes. Rural homeowners spent more than their urban counterparts on repairs and renovations &emdash; $1,720 versus $1,660. They also spent more on materials than urban owners ($800 versus $540). Retail trade climbed 0.6% to $22.0 billion from October to November, 1999, according to Stats Canada. Excluding auto sales, however, the number dropped 0.5%. Department store sales dropped 8.2%, accounting for most of the decline. Retail sales year-to-date were up 5.4% over the first 11 months of 1998, though.  
Hardlines Classifieds   Need to build your sales team? Looking for agents or new lines? Use Hardlines classified ads. They're read by more than 3,000 people every week &emdash; and they get results fast. Only $16 per line for two weeks. Call Beverly Allen at 416-489-3396, ext. 2, for more details. * * * * * * * 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 © 2000 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