HARDLINES™
Five years serving Canada's home improvement industry
January 15, 2001 - Volume vii, #2
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com Check out our incredible Classifieds section!* * * * * *
* Canadian retailers see mixed results from Christmas sales
* Home Depot Opens third Québec store
* Rona big box introduces instore financing
* Former DeWlt whiz Joe Galli joins Newell Rubbermaid
* ILDC names new board
* Wal-Mart eyes Japanese market
* Unican sold to the Swedes* * * * * *PLEASE JOIN HARDLINES AT ITS SIXTH ANNUAL SHOW BREAKFAST to kick off the Canadian Hardware & Building Materials Show.Don't miss this key industry event on Sunday, February 4, 2001, 7:30 a.m. to 9:00 a.m. in Room 103 at the National Trade Centre, CNE grounds, where we will present the 2000 Newsmaker of the Year Award. We're ecstatic over how popular this event has become, but the result is that space gets really limited. Please book early to avoid disappointment! RSVP Nancy at 416-489-3396, send a fax to 416-489-6154; or email: hardline2@on.aibn.com* * * * * *HARDLINES CLASSIFIEDS AT CHS: Put your classified ad in our February 5th, 2001 issue of Hardlines, and take advantage of our INCREASED CHS CIRCULATION. That's thousands of industry eyeballs! Plus, you get all the regular benefits of The Hardlines Marketplace: your ad is read by over 3,000 people for two weeks in the fax version, three weeks in the email version and on our website. All that for just $16 per line. Deadline for all classified ads for CHS issue is January 30, 2001. Please contact Eugenia at 416-489-3396 or email: buzz@hardlinesfax.comCHRISTMAS BRINGS MIXED RESULTS FOR RETAILERSA national survey of retailers conducted January 4-9, 2001, by the Retail Council of Canada showed that only 44% of retailers had sales above last year's record; of that, the average rise was 9.7%. Another 18% said their sales were similar to 1999. A third said sales were down by an average of 10%. Larger retailers and online merchants who responded to the survey reported somewhat higher returns for the holiday season than independent retailers.Consumer electronics was the big winner in 2000, followed by sporting goods. Big ticket items such as appliances and automobiles lagged. Demand for electronic goods, particularly wireless gadgets and DVDs, gave Future Shop an impressive 22% sales increase while its same-store sales grew 17% in December alone.Online sales ramped up during the year as more retailers did business on the Internet or unveiled new websites, including Hudson's Bay Co. and Canadian Tire Corp."The results of this year's survey are in line with our expectations," says Diane Brisebois, president and CEO of RCC. "We knew it would be a challenge for retailers to match 1999's exceptional sales performance. Retail sales growth began to plateau in mid-2000, and some retailers reported a slow start to their holiday season. However, the final week before Christmas was particularly strong, and that pushed many retailers' sales for the season over the top." Sales by Canadian retailers from the 2000 Christmas shopping season are expected to indicate slower consumer spending. Total sales were estimated to come above 1999's record $260.4 billion, although analysts say growth slipped to disappointing levels in 2000. In November, industry watchers had predicted a sales increase of about 3% for the year, down from about 6% in 1999. But stock market volatility, signs of a slowing economy and cold weather discouraged shoppers: a lot of retailers didn't have the traffic they were hoping for.* * * * * *RONA BIG BOX TESTS INSTORE FINANCINGThe Fédération des caisses populaires Desjardins de Montréal et de l'Ouest-du-Québec and the Rona L'entrepôt in Brossard have launched Desjardins en magasin, an in-store financial services centre. With this alliance the two organizations hope to increase their accessibility and clientele contact."We are convinced of the usefulness of quickly making financial services available to our clientele, who will find - exclusively at Rona - the best potential for carrying out their projects and dreams," says Rick Blickstead, Rona's president and COO.More financial services centres are planned for other Rona stores throughout the province.COMPANIES IN THE NEWSHome Depot Canada opened its third store in Québec last week, this one in Gatineau, making it the company's first for the Outaouais region. The 115,000-sq.ft. store has 150 full- and part-time staff and includes tool rental, garden and design centres. (for more complete details of Home Depot's Canadian expansion plans in 2001, inquire about our newest publication, Hardlines Quarterly Report, availableFebruary 4!)Sears Canada has opened a Sears Furniture and Appliancesstore at Island Home Centre in Victoria, BC. The48,000-sq.ft. store, dedicated exclusively to furniture,rugs, accent-décor items and major home appliances, will bethe third Sears store of its kind in B.C. - and one of morethan 30 across Canada.Rona inc. has announced its sponsorship of Québec City's IceHotel. The sponsorship was in the form of tools andmaterials. Rona will promote this winter tourist destinationthrough various igloo construction events and activities atits participating big box stores. The Swedish style hotelincludes an ice bar, movie theatre and two art galleries.Wal-Mart plans to open its first store in Japan in 2002reportedly considering Makuhari, which is a 20-minute trainride from Tokyo, and Nagoya, a major city between Osaka andTokyo. Wal-Mart, which is rapidly expanding internationally,plans to establish a Japanese subsidiary this summer tofacilitate future openings.Kmart Corp. and its e-commerce unit, BlueLight.com, haveinstalled 3,500 Internet shopping kiosks in 1,100 stores.Shoppers will use the kiosks to access BlueLight.com andpurchase items that cannot be found in Kmart stores, oritems that are on sale but are out of stock. Kmart plans tohave kiosks in the all of its 2,100 stores by 2002.Wolf Gugler & Associates Ltd. has opened its new U.S.offices in Oklahoma City as part of its effort to keep pacewith growing demand in the North American market. Thecompany offers a range of retainer-based executive searchservices specializing in retailers and their suppliers.Sico Inc. has signed an agreement to purchase ChemcraftInternational Inc., a North Carolina-based wood and metalcoatings manufacturer. Sico will acquire Chemcraft'sindustrial metal coatings operations, as well as a plant inBrantford, ON, for US$11 million. At the same time, Sicowill sell its industrial wood coatings division to Chemcraftfor US$1.5 million.Unican Security Systems Ltd. has agreed to a takeover byKaba Holding AG of Switzerland at a price of $36 per share.This deal is expected to close by the end of the firstquarter of 2001.For the third quarter ending November 30, 2000, Maax Inc.had sales of $372.4 million, up 11.63% over thecorresponding period the previous year. Maax has achievedinternal sales growth of 7.3% over the past nine months.DeWalt Industrial Tools and Accessories has purchased EmgloAir Compressor Co., a Johnstown, PA, manufacturer of aircompressors for the contractor and industrial markets. Emglowas previously owned by Stonewood Capital Management Inc., aPittsburgh-based private venture capital and managementbuyout firm that owned Emglo since 1996.CANADIAN STOCK WATCH