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Beverly Allen, Publisher Vicky Sanderson, Editor John Caulfield, Contributing Editor Phone: 416-489-3396 Email: bev@HARDLINES.ca |
| January 14, 2008, Vol. xiv, #2 | |
| In This Issue | ||
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"Discipline is the bridge between goals and accomplishments." (Anonymous) |
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| RONA acquires heating specialist Best-MAR | ||
| BOUCHERVILLE, QC — RONA has bought Best-MAR Plumbing and Heating Supplies Inc., further bolstering its position in specialized plumbing and heating market in Ontario. The acquisition of Best-MAR, which generates annual sales of about $20 million from three locations in the Ottawa-Gatineau,ON region, will also boost RONA’s plans to expand in the rapidly-growing institutional, commercial and industrial market. Best-MAR, which employs 45 people, will be integrated into Noble Trade, the heating and plumbing distributor that RONA acquired in February 2007. The transaction is expected to close in the first quarter of this year. Representatives for both RONA and Best-MAR spoke of the potential synergies between the two companies. “Best-MAR represents an excellent fit with our existing operations and provides us with a springboard in the greater Ottawa-Gatineau region,” Michael Storfer, RONA’s vice-president and president of the commercial and professional division, said in a prepared statement. | ||
| NRHA Canada inks deal with regional associations | ||
| TORONTO — The North American Retail Hardware Association Canada will begin providing product knowledge training to Canada’s regional building supply associations. The Building Supply Industry Association of British Columbia, the Western Retail Lumber Association, the Lumber and Building Materials Association of Ontario, L’association des détaillants de matériaux du Québec, and the Atlantic Building Supply Dealers Association, are represented collectively under the Canadian Retail Building Supply Council (CRBSC), which will now make NRHA Canada’s product knowledge training available to all members at discounted rate. “Our associations have an important mandate to offer training to our members, such as Forklift Operation, Estimating, Yard Foreman, Plumbing and Electrical and Health and Safety. The product knowledge training from NRHA Canada makes an excellent addition to our existing programs,” says Gary Hamilton, executive director of the WRLA, and current chair of the CRBSC. “We are pleased to make this important training available to CRBSC members,” says Michael McLarney, managing director of NRHA Canada, and president of HARDLINES Inc., which manages NRHA Canada. “Product knowledge is what sets the independent apart from their larger competitors.” Plans are under way to translate the program into French, as well. For more information about NRHA Canada, contact Michael McLarney at 416-489-3396; mike@HARDLINES.ca. | ||
| Increased interest in Canadian Home Improvement Show | ||
| TORONTO — Exhibitors at the 2008 Canadian Home Improvement Show, formerly the LBMAO Winter Buying Show, will increase by about 15% over last year, according to LBMAO president Dave Campbell. With its new location in Toronto, the show is also attracting more visitors, especially from northern and eastern Ontario, says Campbell. “We won’t have numbers until after the show, but indications are that we’re going to have an overall increase as well.” Exhibitors and visitors are responding to the expanded assortment in the show, which now includes building materials, hardlines, lawn and garden, paint and décor, and power tools. Asked about recent news that the National Hardware Show Canada, organized by Reed Exhibitions, has been cancelled, Campbell says he was not surprised. “We were approached to consider co-hosting, but we were uncomfortable trying to promote a national show at a time of year when so many national groups have their own dealer shows,” he explains. Campbell added that the LBMAO changed the name of its event to reflect the expanded scope of vendors, rather than because of any aspirations to mount a national buying show of its own. “We are a regional show to Ontario, and I don’t see that changing,” says Campbell. The HARDLINES team will report next week on the 2008 Prairie Showcase Buying Show & Convention, which runs Jan 18 – 19 in Saskatoon. For a full list of upcoming shows, click here to see HARDLINES Calendar. | ||
| Home Furniture presents new trends showcase | ||
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ST. JACOB’S, ON — Home Furniture dealers, staff and vendors gathered here last week for an annual three-day event that allows dealers to preview and purchase new furniture and share information on both the business and décor side of their businesses. This year’s show is particularly significant in that it marks Home Furniture’s 30th anniversary. Over the last three decades, Home Furniture has grown to over 70 stores. Trends emerging this year are smaller pieces suited to lofts and condos, and a continued focused on darker woods and distressed finishes, says Morgan McCabe, merchandise manager for Home Furniture stores. “Pieces are definitely getting smaller, even the sofas, and they tend to have clean, simple lines,” says McCabe. He adds that there’s growing demand for stylish, but practical, pieces for the den and home office. “I call it common sense furniture,” he says.  Home Furniture is also rolling out additions to the Irish Coast line it introduced last year, which is crafted from reclaimed lumber. This year, redesigned bedroom furniture, as well as items for the living and dining room, is being added to the line.
While Home Furniture stores are currently only found in what McCabe refers to as “B and C” markets, he expects that at some point there will be a move into key urban centres. Already, the company is shipping furniture on a weekly basis to larger centres, such as Toronto and Kitchener, as consumers become acquainted with the product through the company’s website.
Top
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| Wal-Mart Canada uses technology to spur sales | ||
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TORONTO — New instore “narrowcasting” programming, designed to build customer loyalty and improve the shopping experience, has been launched in 60 Wal-Mart Canada stores. Created by the London,ON-based EK3 Technologies Inc., the broadcasts revolve around “Lisa”, an animated character with a husband and three children. Narrowcasting uses a company’s customer data to deliver timed electronic messages to shoppers, which are designed to influence buying decisions. Lisa “hosted” Wal-Mart Canada's narrowcasting content during the holiday season with five 30-second pieces shown on 42- and 48-inch monitors throughout the stores. The animations also featured national advertisements and other narrowcasting elements, such as store-specific content and local information. Wal-Mart Canada expects to have displays in all its Canadian stores by the end of 2008. Top |
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Marketplace |
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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
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|
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 © 2007 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: $265 (Canadian subscribers add $15.90 GST = $280.90 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $42 (Canadian subscribers add $2.52 GST = $44.52). 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. |
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************************************ Effective presentations use the latest information from the HARDLINES Retail Report 2007-2008. Updated information on the Buying Groups is included. If you don’t already have this powerhouse presentation, order it now! Contact Brady Peever or click here to order online. ************************************ |
| COMPANIES IN THE NEWS |
| MONTREAL — The void left by the demise of Mutual Hardware on Jan. 2 has been partly filled by the creation of a new hardware division within the OCTO Purchasing Group, which is based here. Primarily a plumbing and heating buying group, it already has a number of Mutual members within its ranks, including Castle Building Centres, Groupe BMR, and Canac-Marquis Grenier. These three have signed on with OCTO’s new hardware division, and all of Mutual’s remaining members are expected to sign eventually, says OCTO. NEW YORK — A state judge has dismissed Wal-Mart's request for a $33.5 million tax rebate. Superior Court Judge Clarence Horton Jr. ruled that the company’s practice of paying itself rent, then claiming tax deductions for it, does not “have any real economic substance” other than to reduce Wal-Mart’s tax obligations. Wal-Mart has paid the amount owing and has declined to comment. NEW YORK — Bed Bath & Beyond, which opened its first Canadian store in December of last year, reported 3Q 2007 earnings of $138.2 million, down from $142.4 million for the same period of the previous year. ISSAQUAH, WA — Costco reported net sales of $7.55 billion for the five weeks ending Jan. 6, an increase of 10% over the same period last year. Same-store sales were up 7% across the company, with a 5% rise in sales in the U.S. and a 16% jump in international sales. Excluding gasoline price inflation, U.S. same-store sales would have been up 4%. Favourable foreign exchange rates, particularly in Canada and the U.K., contributed to the strong international results, which rose 5% on a local currency basis. BENTONVILLE, AR — Wal-Mart saw sales rise 8.4% to$46.5 billion in 1Q 2008. Sales at Wal-Mart stores were up 5.6% to $29.6 billion, while Sam’s Club sales rose 4.3% to $4.9 billion. When fuel sales are excluded, those numbers drop to 2.6% and 1.3%, respectively. The strong performance was driven by sales in grocery, pharmacy and electronics, according to a company report. LAS VEGAS — Retailers and wholesalers interested in trends in retailing and new products in the U.S. can tour some of America’s most successful retailers during the 2008 National Hardware Show, being held here May 6-8. The paid tour, which is being organized by show management and the Worldwide DIY Council, will include visits to Home Depot and Lowes, Costco, Wal-Mart and Target stores. The Council will also provide participants with a profile of each store—its sales, strategy, profits, etc., and will lead discussions about these stores during the tour. For more information, contact Don Droesch, executive secretary of the Worldwide DIY Council (www.wdiyc.org) at ddroesch@cox.net. The National Hardware Show has also expanded its international retailer program to include a state-of-the-sector presentation, an international reception, a visitor’s lounge and a host hotel to provide a community setting for international visitors to the show. GLENFIELD, NZ — A battle is shaping up between Bunnings, the Australian big-box retailer that entered New Zealand in 2001, and Mitre 10, the co-operative group which, like RONA, has dealer-owned big boxes of its own. Mitre 10 operates 15 Mitre Mega 10 warehouse stores, while Bunnings currently operates 14 warehouse stores and has plans for another two or three to open annually. Analysts expect market saturation to slow the opening of new stores here, pointing to signs that spending on discretionary goods is dropping. LONDON — UK retail sales rose only 0.3% on a same-store basis, compared with December 2006, when sales were up 2.5%, according to the British Retail Consortium. December's growth was the weakest since the decline in March 2006, when sales were hit by Easter falling in April. It was the worst December figure since 2004. SARAJEVO — IKEA may form a joint venture with Bosnia's indebted state-owned furniture maker Krivaja, according to Reuters. The report quotes Bosnian privatization official Enes Ganic, who said IKEA representatives were willing to invest in a new production facility in Krivaja, in the central Bosnian town of Zavidovici. |
| People on the move |
| Mona Caplan has joined Richelieu Hardware as sales manager for the Nystrom division for North America. (416-663-4448, ext. 33) The addition of Ron Craighead to its commercial division is just the latest change at Castle Building Centres, the national LBM buying group. Craighead, whose background on the vendor side includes a stint at LaFarge, has been named business development manager for Commercial Builders Supplies (CBS), which specializes in serving commercial and pro yards. The appointment comes on the heels of the surprise announcement that Castle would leave the umbrella buying group Reliance. Lora Deighton has been promoted to communications manager for TruServ Canada Inc. (204-453-9526) George Tracey has retired as president of the Building Supply Industry Association of BC. He has been replaced by Thomas Foreman. (604-513-2205) |
| Economic Indicators |
| Housing starts reached an estimated 229,600 in 2007, up 1% over 2006. But drops in the multiple and single-detached segments caused starts to fall from 233,000 in November to 187,500 in December. Housing starts are forecast to decrease to 214,300 units in 2008. (CMHC) 2007 3Q retail sales stood at $106.8 billion – their lowest since 2Q 2004, but still 4.1% up over 3Q 2006. Furniture, home furnishings and electronics sales were up 7.0% to $9.7 billion. Within the category, home furnishings were up 12.5%, while indoor furniture rose 5.7% and home electronics were up 4.5%. Hardware, lawn and garden products amounted to $8 billion, up 5.0% from 2006, but the lowest increase since 1Q 2005. Hardware and home renovation products climbed 6.1% and LBM rose 7.2%. (StatsCan) Building permits fell in November to $6 billion, down 9.9% from October, with drops in both starts in residential and non-residential buildings. From January to November, permits hit $68.1 billion, up 12.4% from the same period a year earlier, and 2.8% higher than the previous annual record of $66.3 billion set in 2006. (StatsCan) |
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Beverly Allen, Publisher Vicky Sanderson, Editor John Caulfield, Contributing Editor Phone: 416-489-3396 Email: bev@HARDLINES.ca |
| January 14, 2008, Vol. xiv, #2 | |
| In This Issue | ||
|
"Discipline is the bridge between goals and accomplishments." (Anonymous) |
||
| RONA acquires heating specialist Best-MAR | ||
| BOUCHERVILLE, QC — RONA has bought Best-MAR Plumbing and Heating Supplies Inc., further bolstering its position in specialized plumbing and heating market in Ontario. The acquisition of Best-MAR, which generates annual sales of about $20 million from three locations in the Ottawa-Gatineau,ON region, will also boost RONA’s plans to expand in the rapidly-growing institutional, commercial and industrial market. Best-MAR, which employs 45 people, will be integrated into Noble Trade, the heating and plumbing distributor that RONA acquired in February 2007. The transaction is expected to close in the first quarter of this year. Representatives for both RONA and Best-MAR spoke of the potential synergies between the two companies. “Best-MAR represents an excellent fit with our existing operations and provides us with a springboard in the greater Ottawa-Gatineau region,” Michael Storfer, RONA’s vice-president and president of the commercial and professional division, said in a prepared statement. | ||
| NRHA Canada inks deal with regional associations | ||
| TORONTO — The North American Retail Hardware Association Canada will begin providing product knowledge training to Canada’s regional building supply associations. The Building Supply Industry Association of British Columbia, the Western Retail Lumber Association, the Lumber and Building Materials Association of Ontario, L’association des détaillants de matériaux du Québec, and the Atlantic Building Supply Dealers Association, are represented collectively under the Canadian Retail Building Supply Council (CRBSC), which will now make NRHA Canada’s product knowledge training available to all members at discounted rate. “Our associations have an important mandate to offer training to our members, such as Forklift Operation, Estimating, Yard Foreman, Plumbing and Electrical and Health and Safety. The product knowledge training from NRHA Canada makes an excellent addition to our existing programs,” says Gary Hamilton, executive director of the WRLA, and current chair of the CRBSC. “We are pleased to make this important training available to CRBSC members,” says Michael McLarney, managing director of NRHA Canada, and president of HARDLINES Inc., which manages NRHA Canada. “Product knowledge is what sets the independent apart from their larger competitors.” Plans are under way to translate the program into French, as well. For more information about NRHA Canada, contact Michael McLarney at 416-489-3396; mike@HARDLINES.ca. | ||
| Increased interest in Canadian Home Improvement Show | ||
| TORONTO — Exhibitors at the 2008 Canadian Home Improvement Show, formerly the LBMAO Winter Buying Show, will increase by about 15% over last year, according to LBMAO president Dave Campbell. With its new location in Toronto, the show is also attracting more visitors, especially from northern and eastern Ontario, says Campbell. “We won’t have numbers until after the show, but indications are that we’re going to have an overall increase as well.” Exhibitors and visitors are responding to the expanded assortment in the show, which now includes building materials, hardlines, lawn and garden, paint and décor, and power tools. Asked about recent news that the National Hardware Show Canada, organized by Reed Exhibitions, has been cancelled, Campbell says he was not surprised. “We were approached to consider co-hosting, but we were uncomfortable trying to promote a national show at a time of year when so many national groups have their own dealer shows,” he explains. Campbell added that the LBMAO changed the name of its event to reflect the expanded scope of vendors, rather than because of any aspirations to mount a national buying show of its own. “We are a regional show to Ontario, and I don’t see that changing,” says Campbell. The HARDLINES team will report next week on the 2008 Prairie Showcase Buying Show & Convention, which runs Jan 18 – 19 in Saskatoon. For a full list of upcoming shows, click here to see HARDLINES Calendar. | ||
| Home Furniture presents new trends showcase | ||
|
ST. JACOB’S, ON — Home Furniture dealers, staff and vendors gathered here last week for an annual three-day event that allows dealers to preview and purchase new furniture and share information on both the business and décor side of their businesses. This year’s show is particularly significant in that it marks Home Furniture’s 30th anniversary. Over the last three decades, Home Furniture has grown to over 70 stores. Trends emerging this year are smaller pieces suited to lofts and condos, and a continued focused on darker woods and distressed finishes, says Morgan McCabe, merchandise manager for Home Furniture stores. “Pieces are definitely getting smaller, even the sofas, and they tend to have clean, simple lines,” says McCabe. He adds that there’s growing demand for stylish, but practical, pieces for the den and home office. “I call it common sense furniture,” he says. Home Furniture is also rolling out additions to the Irish Coast line it introduced last year, which is crafted from reclaimed lumber. This year, redesigned bedroom furniture, as well as items for the living and dining room, is being added to the line.
While Home Furniture stores are currently only found in what McCabe refers to as “B and C” markets, he expects that at some point there will be a move into key urban centres. Already, the company is shipping furniture on a weekly basis to larger centres, such as Toronto and Kitchener, as consumers become acquainted with the product through the company’s website.
Top
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| Wal-Mart Canada uses technology to spur sales | ||
|
TORONTO — New instore “narrowcasting” programming, designed to build customer loyalty and improve the shopping experience, has been launched in 60 Wal-Mart Canada stores. Created by the London,ON-based EK3 Technologies Inc., the broadcasts revolve around “Lisa”, an animated character with a husband and three children. Narrowcasting uses a company’s customer data to deliver timed electronic messages to shoppers, which are designed to influence buying decisions. Lisa “hosted” Wal-Mart Canada's narrowcasting content during the holiday season with five 30-second pieces shown on 42- and 48-inch monitors throughout the stores. The animations also featured national advertisements and other narrowcasting elements, such as store-specific content and local information. Wal-Mart Canada expects to have displays in all its Canadian stores by the end of 2008. Top |
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Marketplace |
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|
||
|
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 © 2007 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: $265 (Canadian subscribers add $15.90 GST = $280.90 per year/ GST #13987 0398 RT). Secondary subscriptions at the same office are only $42 (Canadian subscribers add $2.52 GST = $44.52). 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. |
|
************************************ Effective presentations use the latest information from the HARDLINES Retail Report 2007-2008. Updated information on the Buying Groups is included. If you don’t already have this powerhouse presentation, order it now! Contact Brady Peever or click here to order online. ************************************ |
| COMPANIES IN THE NEWS |
| MONTREAL — The void left by the demise of Mutual Hardware on Jan. 2 has been partly filled by the creation of a new hardware division within the OCTO Purchasing Group, which is based here. Primarily a plumbing and heating buying group, it already has a number of Mutual members within its ranks, including Castle Building Centres, Groupe BMR, and Canac-Marquis Grenier. These three have signed on with OCTO’s new hardware division, and all of Mutual’s remaining members are expected to sign eventually, says OCTO. NEW YORK — A state judge has dismissed Wal-Mart's request for a $33.5 million tax rebate. Superior Court Judge Clarence Horton Jr. ruled that the company’s practice of paying itself rent, then claiming tax deductions for it, does not “have any real economic substance” other than to reduce Wal-Mart’s tax obligations. Wal-Mart has paid the amount owing and has declined to comment. NEW YORK — Bed Bath & Beyond, which opened its first Canadian store in December of last year, reported 3Q 2007 earnings of $138.2 million, down from $142.4 million for the same period of the previous year. ISSAQUAH, WA — Costco reported net sales of $7.55 billion for the five weeks ending Jan. 6, an increase of 10% over the same period last year. Same-store sales were up 7% across the company, with a 5% rise in sales in the U.S. and a 16% jump in international sales. Excluding gasoline price inflation, U.S. same-store sales would have been up 4%. Favourable foreign exchange rates, particularly in Canada and the U.K., contributed to the strong international results, which rose 5% on a local currency basis. BENTONVILLE, AR — Wal-Mart saw sales rise 8.4% to$46.5 billion in 1Q 2008. Sales at Wal-Mart stores were up 5.6% to $29.6 billion, while Sam’s Club sales rose 4.3% to $4.9 billion. When fuel sales are excluded, those numbers drop to 2.6% and 1.3%, respectively. The strong performance was driven by sales in grocery, pharmacy and electronics, according to a company report. LAS VEGAS — Retailers and wholesalers interested in trends in retailing and new products in the U.S. can tour some of America’s most successful retailers during the 2008 National Hardware Show, being held here May 6-8. The paid tour, which is being organized by show management and the Worldwide DIY Council, will include visits to Home Depot and Lowes, Costco, Wal-Mart and Target stores. The Council will also provide participants with a profile of each store—its sales, strategy, profits, etc., and will lead discussions about these stores during the tour. For more information, contact Don Droesch, executive secretary of the Worldwide DIY Council (www.wdiyc.org) at ddroesch@cox.net. The National Hardware Show has also expanded its international retailer program to include a state-of-the-sector presentation, an international reception, a visitor’s lounge and a host hotel to provide a community setting for international visitors to the show. GLENFIELD, NZ — A battle is shaping up between Bunnings, the Australian big-box retailer that entered New Zealand in 2001, and Mitre 10, the co-operative group which, like RONA, has dealer-owned big boxes of its own. Mitre 10 operates 15 Mitre Mega 10 warehouse stores, while Bunnings currently operates 14 warehouse stores and has plans for another two or three to open annually. Analysts expect market saturation to slow the opening of new stores here, pointing to signs that spending on discretionary goods is dropping. LONDON — UK retail sales rose only 0.3% on a same-store basis, compared with December 2006, when sales were up 2.5%, according to the British Retail Consortium. December's growth was the weakest since the decline in March 2006, when sales were hit by Easter falling in April. It was the worst December figure since 2004. SARAJEVO — IKEA may form a joint venture with Bosnia's indebted state-owned furniture maker Krivaja, according to Reuters. The report quotes Bosnian privatization official Enes Ganic, who said IKEA representatives were willing to invest in a new production facility in Krivaja, in the central Bosnian town of Zavidovici. |
| People on the move |
| Mona Caplan has joined Richelieu Hardware as sales manager for the Nystrom division for North America. (416-663-4448, ext. 33) The addition of Ron Craighead to its commercial division is just the latest change at Castle Building Centres, the national LBM buying group. Craighead, whose background on the vendor side includes a stint at LaFarge, has been named business development manager for Commercial Builders Supplies (CBS), which specializes in serving commercial and pro yards. The appointment comes on the heels of the surprise announcement that Castle would leave the umbrella buying group Reliance. Lora Deighton has been promoted to communications manager for TruServ Canada Inc. (204-453-9526) George Tracey has retired as president of the Building Supply Industry Association of BC. He has been replaced by Thomas Foreman. (604-513-2205) |
| Economic Indicators |
| Housing starts reached an estimated 229,600 in 2007, up 1% over 2006. But drops in the multiple and single-detached segments caused starts to fall from 233,000 in November to 187,500 in December. Housing starts are forecast to decrease to 214,300 units in 2008. (CMHC) 2007 3Q retail sales stood at $106.8 billion – their lowest since 2Q 2004, but still 4.1% up over 3Q 2006. Furniture, home furnishings and electronics sales were up 7.0% to $9.7 billion. Within the category, home furnishings were up 12.5%, while indoor furniture rose 5.7% and home electronics were up 4.5%. Hardware, lawn and garden products amounted to $8 billion, up 5.0% from 2006, but the lowest increase since 1Q 2005. Hardware and home renovation products climbed 6.1% and LBM rose 7.2%. (StatsCan) Building permits fell in November to $6 billion, down 9.9% from October, with drops in both starts in residential and non-residential buildings. From January to November, permits hit $68.1 billion, up 12.4% from the same period a year earlier, and 2.8% higher than the previous annual record of $66.3 billion set in 2006. (StatsCan) |
