January 10, 2000 - Volume vi, #1
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154 REVY TO CLOSE BOX IN VANCOUVER, OPENS ONE IN TORONTORevy Home Centres Inc. will close an underperforming store this spring in what might be considered the first casualty in Canada's big box wars. However, Al Cheney, vice-president store operations for Revy, says the store was not in a preferred site in the first place. It was part of the deal when Revy bought Eagle Hardware and Garden in 1994 and has been a chronic underperformer.The store is at the south end of the Patullo Bridge in Surrey, in a predominantly commercial/working class neighborhood. "The site did not meet with Revy's criteria when we bought Eagle," says Cheney. "But we had to open it anyway." All full- and most part-time staff will be relocated to other stores.The Surrey market, Cheney adds, is being well-served by the Fleetwood store, which Revy acquired when it took over Lumberland Building Materials in 1997. That store was fully refitted with big box racking last year.Revy continues its expansion plans in other parts of the country, however, particularly in the Greater Toronto Area. It opened its second store there on Saturday, this one in Woodbridge, just north of the city. The 168,000-sq.ft. outlet carries 50,000-plus SKUs, will employ 300 and represents a $22 million investment. Pushing the all-Canadian angle, the national anthem replaced a company cheer to kick off the opening proceedings.The next store is slated to open is in Toronto's west end (Stockyards). Other openings scheduled for this year are Scarborough, at Warden and Eglinton, and a store in Kitchener. Also announced: a store in Mississauga's Square One Mall and another in London, Ont., at a site to be announced.********SODISCO-HOWDEN TO REDUCE FINANCIAL EXPENSES WITH REFINANCINGSodisco-Howden Group Inc. has renegogiated with its largest debenture holder, a member company of the Paribas Group, which owns more than 87% of the outstanding debentures. According to the agreement, Sodisco-Howden will modify the terms and conditions of the debentures so holders can convert them on or before March 23, 2000, to receive a cash premium of $0.025 for each dollar of principal amount of the debentures plus interest payable at the time of the conversion. A total of $11.3 million in series D and DD debentures is involved. In addition, Sodisco-Howden's board of directors has approved the redemption of series E debentures not converted on March 24, 2000. "This very important step will allow our company to finally turn the page on the last portion of the financial structure inherited from Unigesco," says Tony Molluso, president and CEO of Sodisco-Howden. More than $3 million in financial expenses are expected to be eliminated for the year ending December 31, 2000.********CHS OFFERS NEW PROGRAMS TO BOOST BUYING AT SHOWThe Canadian Hardware Show will offer briefing sessions to exhibitors on February 4 and 5 during the show's setup at the National Trade Centre. The show is hosted by the Canadian Retail Hardware Association in conjunction with the Lumber & Building Materials Association of Ontario,The purpose of the sessions, says CRHA executive director Bob Elliott, is to help exhibitors generate sales at the show, which will be held February 6-8 in Toronto. In addition, the show will feature cash incentives to attending dealers &endash; $1,000 will be given out every hour during the show's three days. For more information, contact the CRHA at: 905-821-3470.********RETAIL SALES ON A ROLL, INDEPENDENT MERCHANTS SAYThe 1999 holiday sales season was the best for Canadian retailers in a decade. According to a report by Retail Council of Canada, 60% of independent storeowners surveyed across the country say their sales soared over the 1998 holiday season by an average of 18%. And they expect the good times to continue through 2000. Nearly 70% of respondents expect their sales to rise this year by an average of 14%. One-fifth of survey respondents said their 1999 holiday sales were about the same as the previous year, and another 20% said their holiday sales were down by an average of 15% from 1998. More than 350 independent merchants responded to the survey, which was conducted January 4-6.COMPANIES IN THE NEWSThe deal for Sears Canada Inc. to purchase all outstanding common shares of Eaton's has been approved by Eaton's creditors and shareholders and sanctioned by the Superior Court of Justice of Ontario, effective December 30, 1999. The acquisition includes the Eaton's name and the following 16 Eaton's locations:Brentwood Mall, Burnaby, B.C.; Orchard Park Shopping Centre, Kelowna, B.C.; Eaton Centre, Victoria; Pacific Centre, Vancouver; South Centre Mall, Calgary; Eaton Centre, Calgary; St. Vital Centre, Winnipeg; Polo Park, Winnipeg; Westmount Shopping Centre, London, Ont.; Sherway Gardens, Toronto; Yorkdale Shopping Centre; Toronto; Scarborough Town Centre, Toronto; Eaton Centre, Toronto; Rideau Centre, Ottawa; Galleries La Capitale, Québec City; Halifax Shopping Centre, Halifax. Sears will lease two stores formerly occupied by Eaton's at the following locations: Guildford Place, Surrey, B.C. and Don Mills Centre, Toronto.Newell Industries Canada has relocated its head office to Rubbermaid's facility at 2562 Stanfield Road, 2nd Floor, Mississauga, Ont.; phone: 905-281-7305, fax: 905-281-7363.Hudson's Bay Co. will acquire two former Eaton's locations &endash; one in Nanaimo, B.C., and another in Sherbrooke, Qué.Malco Tools International has announced that McCully & Associates will represent its tools across Canada. Malco, with Kenyon Tools, manufactures a full range of specialty hand tools for use in the roofing, HVAC, fastening and gardening markets.T.A. Drummond Metal Products has sold off its Lycor Products division to Canada Wood Specialties of Orillia, Ont. The transaction involved all of Drummond's specialty lines, including dowels and plugs, shelves and brackets, shutters and cabinet doors, and veneer edging. Drummond's intention is to focus on its core product lines of flooring trim and accessories.Arrow Lock Manufacturing (Canada) Inc. has been acquired by Swedish lock company Assa Abloy for CDN$5.18 million. Arrow Canada is an independent distributor for Arrow Lock of Brooklyn, N.Y., which is already owned by Assa Abloy.TruServ Corp., through its commercial/industrial division, has made a five-year strategic alliance with Equalfooting.com to serve TruServ's 800 commercial/industrial division. Equalfooting.com is a new online purchasing network designed to help small businesses compare pricing from a number of national and regional suppliers in Canada and the U.S. and then purchase their industrial supplies. The service will feature more than 500,000 industrial supplies and equipment. ({ HYPERLINK http://www.equalfooting.com }www.equalfooting.com)Sears department stores in the Greater Toronto Area have teamed up with Toronto's Chill Out program with a two-month long clothing drive for needy families. Throughout January and February 2000, community members across the city can drop off new and clean used clothing at 16 Sears locations across the GTA. CANADIAN STOCK WATCH