"Why should I care about posterity? What's posterity ever done for me?" - Groucho Marx (1890-1977)

vol. viii, #2 January 14, 2002

* Editors' roundtable will discuss retail issues at CHS * Ace signs with technology partner * Sears Canada remains committed to carpet business * BSDA show will be twice as big this year * Home Depot's international president resigns

EDITORS WILL AIR THEIR VIEWS AT CHS
Hardlines is pleased to announce a new forum for service companies that target suppliers and retailers in hardware/home improvement. These companies can help you run your business better - whether it's logistics, EDI, HR, printing services, instore merchandising, etc., etc. The Retail Services Showcase will run during our Show Breakfast on Sunday, February 3, 2002 in Room 103, starting at 8 a.m. and stay open right up until noon that day. The Retail Services Showcase is going to be an amazing value-added for our sponsors - and a great addition for our guests to get the most out of the Show. If you want your company to be part of this exciting new Showcase, just contact Bev Allen: 416-489-3396, bev@hardlines.ca
ACE CANADA PICKS CCITRIAD AS TECHNOLOGY PARTNER
Ace Hardware Canada has selected CCITriad as its preferred retail computer provider of choice for its Canadian-based stores. Under the agreement the two companies promote the installation of CCITriad's Eagle system. Paul Ingevaldson, senior vice-president international and technology for Ace Hardware, says, "Ace Canada is committed to retail success, and this partnership is one more step we are taking to help our retailers be even more competitive in the Canadian marketplace." This alliance agreement is an extension of the partnership Ace in the U.S. formed with CCITriad in September 2000. Under that agreement, Ace exclusively endorsed CCITriad as the preferred computer provider for its 5,000 participating U.S. retailers.
EDITORS WILL AIR THEIR VIEWS AT CHS
Some of the industry's keenest observers will voice their observations at the upcoming Canadian Hardware and Building Materials Show. "Hardlines Uncensored" will feature the editors of some of the leading trade publications in Canada in a round table discussion where they'll tackle topics such as the challenge of globalization to Canadian suppliers, the long-term effectiveness of the big box as a retail model and new competitive threats to the independent retailer. The participants will be Rob Gerlsbeck of Hardware Merchandising, Donald O'Hara of Quart de Rond and Joe Hornyak of Home Improvement Retailing. Michael McLarney of Hardlines (who dat? - Editor) will moderate the panel. Presented by Hardlines in conjunction with CHS, "Hardlines Uncensored" will be held February 4, 2002 at noon in Toronto's National Trade Centre, as part of the show's education program.
COMPANY	52-WEEK HIGH	52-WEEK LOW	CLOSE (FRI.)
Canadian Tire	28.20	17.10	26.03
Canfor	12.60	8.05	10.45
Emco	7.50	2.60	6.75
Goodfellow	9.90	8.00	9.25
Home Depot	53.73	30.30	9.25
Hudson's Bay	20.10	30.30	50.46
Lowe's Cos.	45.55	18.87	42.03
Sears Canada	26.95	12.50	19.55
Sodisco-Howden	2.80	0.75	1.77
Taiga Forest	10.80	6.80	10.10
West Fraser	40.00	23.00	38.50

VANCOUVER SHOW WILL DOUBLE IN SIZE
After taking what it calls "baby steps," the annual trade show and convention of the Building Supply Dealers of British Columbia is moving into a new, larger venue this year, one that will let it expand from 109 booths to 192. The trade show portion of Westcoast 2002 will be held in Vancouver's Pacific Coliseum, while the conference will be at the Executive Inn in nearby Coquitlam. Shuttle buses will move delegates between locations. The combined event, put on by the BSDA, will take place March 8-9. "The retailers were very clear as to what we needed to be a successful show," says Diane McConnell, show manager. "To make it a proper show we had to expand into a larger facility with a full range of suppliers." McConnell expects to sell out the few remaining booths by the end of this week. The new venue will put all exhibitors on one floor, each with their own full-sized booth. "In previous years, we had to squeeze them into every nook and cranny," says McConnell. The show is not the only thing that's grown. McConnell expects 350 people to attend the gala on March 9.

COMPANIES IN THE NEWS

Sears Canada will be unaffected by the decision of Sears Roebuck in the U.S. to exit the carpet business there. Sears currently has 38 independently owned floorcovering stores across Canada, and is continuing to roll out more. Sears in the U.S. will get out of the carpet business in February. It sells carpet through 560 stores. Observers say Home Depot and Lowe's are taking a big chunk of the floorcovering business. KM Agency, headed up by Sid Smith, has been appointed to represent RCR International Inc. in Atlantic Canada. Smith's team will be responsible for all accounts, including RCR's major accounts in the region. Hardware and home improvement products at Canadian Tire enjoyed double-digit sales growth in December, as holiday sales proved strong for the company. Its retail sales increased 5.0% over December, 2000. With 64% of Willamette shares already tendered, Weyerhaeuser Co. is confident an extension of its US$55 per share offer for Willamette Industries will result in a successful takeover versus rival bidder Georgia-Pacific. Sears in the U.S. plans to open 15 new stores the end of this year and refurbish another 50. This will begin a program to renovate 600 of the retailer's largest stores over the next four years.

PEOPLE ON THE MOVE

Anders Möberg, president of the international division of Home Depot, will resign effective January 25. He oversaw Canada, Mexico and South America. While Canada has flourished, the company is pulling back in South America, and plans for European expansion have stalled. Annette Verschuren, president of Home Depot Canada, who formerly reported to Möberg, will now report directly to CEO Robert Nardelli.

MARKET INDICATORS

The New Housing Price Index rose 0.3% in November from October. Compared with November 2000, this index of contractors' selling prices increased 2.7%. The rate of housing construction from November to December increased 4.0% to 175,500, reports Canada Mortgage and Housing Corp. The greatest growth was in multiple starts, which were up 7.9% to an annual rate of 68,300 units. Urban singles rose 2.0% to an annual rate of 85,700 units from 63,300 in November. Estimated rural starts remained unchanged at a seasonally adjusted annual rate of 21,500 units. Building permits in both residential and non-residential sectors exceeded $3.5 billion in November - only the second time that's happened in the last decade, says Statistics Canada. Residential permits were up 6.6% from October.

NOTED

Absolutely the coolest business card I've seen in a long while was handed to me recently by Bernie Bosch. She's the Canadian sales director for Plantation Products, which sells seeds and related products. Her business card is actually a card-sized packet of - you guessed it - seeds. (Mine were forget-me-nots.) - Michael

INTRODUCING THE RETAIL SERVICES SHOWCASE

The Retail Services Showcase is going to be an amazing value-added for our sponsors - and a great addition for our guests to get the most out of the Show. If you want your company to be part of this exciting new Showcase, just contact Bev Allen: 416-489-3396, bev@hardlines.ca

Hardlines is pleased to announce a new forum for service companies that target suppliers and retailers in hardware/home improvement. These companies can help you run your business better - whether it's logistics, EDI, HR, printing services, instore merchandising, etc., etc. The Retail Services Showcase will run during our Show Breakfast on Sunday, February 3, 2002 in Room 103, starting at 8 a.m. and stay open right up until noon that day.

INDUSTRY NEWS. EVERY DAY.

OUR WEBSITE HAS DAILY UPDATES ON RETAIL AND INDUSTRY NEWS THAT MATTER TO YOU. KEEP INFORMED. VISIT hardlines.ca - EVERY DAY!

* * * * * * CALLING ALL EMPLOYERS! Wolf Gugler & Associates Limited, the undisputed leader in executive search and management appraisals for home improvement Retailers and their Suppliers and a proud Sponsor of the Hardlines Breakfast Sunday February 3, will be participating in the new Retail Services Showcase at CHS '02. You'll find us in Room 103 on Sunday from 8 a.m. until noon. Please stop by to confidentially discuss your proposed recruitment requirements with Wolf Gugler in person, or to arrange a convenient alternative time. You can also contact us prior to the show at 800-830-1090, or via email: wolf@wolfgugler.com to meet you at your booth during the show. * * * * * * KEY SALES AND MARKETING POSITIONS: As an international manufacturer and distributor of bath/shower organizational products and pioneers of the original award-winning shower organizer The Dispenser, Better Living Products is looking for key people to join our growing North American sales and marketing team. The following are immediate opportunities: National Sales Manager - Canada Sales & Marketing Co-ordinator - U.S.A Key Account Executive - U.S.A/Canada Territory Account Manager, Secondary Markets - U.S.A/Canada Inside Sales/Telemarketing Representative - U.S.A. All positions will be located at our world-wide headquarters in Woodbridge, Ontario. For further information, please forward resume indicating the position being applied for to: Camillo Caperchione, Vice President Sales & Marketing, Better Living Products, 201 Chrislea Rd., Vaughan Ont. L4L 8N6. Tel: 905-264-7100, Fax: 905-264-3690. Or email to camillo@dispenser.com * * * * * * NORAL INSTORE: BOOST your retail profile with instore sales support for your products and merchandising Visit http://www.noralmarketing.com or call 519-439-6800 ext. 201 * * * * * * THE HARDLINES MARKETPLACE: just $16 per line. A classified ad with Hardlines is the most direct way to industry eyes. Over 3,000 executives in the industry come in contact with our email and fax publications … … and have you seen our Marketplace in our new website? https://hardlines.ca/html/classifieds_new.asp Publish your ad where it matters. Get industry exposure today. Contact us at 416-489-3396 or email: buzz@hardlines.ca NEW: POWERPOINT PRESENTATION ON THE CANADIAN MARKET A point-by-point illustration of the Canadian market and the growth of its key players. Dazzle your bosses and impress your friends with this one! ($179 + taxes for subscribers, $449 + taxes for non-subscribers.) Call Nancy Wright at 416.489.3396, email her at: nancy@hardlines.ca, or go online: https://hardlines.ca/html/order.html to order any of the above publications. EUROPE IS STILL OPEN FOR BUSINESS! CANADIANS SHOULD BE THERE! THE COLOGNE INTERNATIONAL HARDWARE FAIR/DIY'TEC: March 3-6, 2002. For show information, contact: Edel Wichmann, 416-598-3343; or colognet@idirect.com. To book your flight and hotel, call Carol-Ann Itel at Trade Show Travel by phone: 1-877-873-7469; fax: 403-247-2448; or tradeshowtravel@shaw.ca to arrange your trip. Packages include return airfare and accommodations, as well as admission to the Exhibition. BOOK EARLY! Packages also include an invitation to the internationally famous Canada Night Reception on Sunday, March 3, 2002, sponsored by Hardlines and Cologne International Trade Shows. We'll see you in Cologne! _____________________________________________ Hardlines is published weekly (except monthly in December and August) by McLARNEYCOM 542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7 © 2002 by Michael McLarney. HARDLINES™ the electronic newsletter hardlines.ca Phone: 416.489.3396; Fax: 416.489.6154 Michael McLarney, Editor & Publisher: mike@hardlines.ca Beverly Allen, Marketing Manager: bev@hardlines.ca Nancy Wright, Circulation Manager: nancy@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: $199+$13.93 GST = $212.93 per year (GST #13987 0398 RT). Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98. You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.