January 17, 2000 - Volume vi, #2
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154 HARDLINES AT CHS: Invitations are now going out to Hardlines subscribers and special guests to join us at our very special Fifth Annual Show Breakfast to kick off the Canadian Hardware & Building Materials Show. If you haven't received your invitation yet, watch for it in the days ahead. It's our 5th birthday, and we are, quite frankly, going to rock!Also presenting the 1999 Hardlines Newsmaker of the Year Award!Sunday, February 6, 2000, 7:30 a.m. to 9:00 a.m. in Room 103 at the National Trade Centre, CNE grounds. Featuring R&B Legend Bobby Dean Blackburn and his Trio. For more information, call or email us right away!With huge thanks to this year's sponsors:
CANADIAN HARDWARE & HOUSEWARES MANUFACTURERS ASSOCIATION
********HARDLINES IN COLOGNE:Thinking of going to the world's largest hardware show this spring? You should be &endash; the Cologne International Hardware Fair/DIY'Tec, March 12-15, 2000, is the largest of its kind in the world and this is the year all the biggies will be there. That's why we've put together an incredible travel package to Cologne, Germany, with the support of External Affairs Canada. Call or email us for info! But act quickly on this because all the good hotel rooms are booking up fast! -- Michael This week in Hardlines:CANADIAN TIRE CEO WILL RETIRE THIS YEARStephen E. Bachand, president and CEO of Canadian Tire Corp., has announced his intention to retire by the end of this year. Bachand, age 61, will quit even sooner if a replacement is found before that. In the interim, he will maintain his full duties, continuing to oversee the rollout of the company's current strategic plans and manage its day-to-day operations.Bachand joined the company on March 1, 1993, after some 30 years at Hechinger's in the U.S. There, he ended up overseeing that company's own large format concept, Home Quarters, which had 45 stores. When he arrived at CTC, the company faced unrest from its dealers, uncertainty from its shareholders, a new gremlin-plagued distribution centre and the onslaught of U.S.-style retailers, particularly Wal-Mart and Aikenhead's. In an interview with Hardware Merchandising magazine in 1994 (when I had a real job &emdash; M.M.), he observed that "the company hasn't kept pace with a number of the changes that have been going on in retailing over the past few years, so I think we've fallen behind."Years of diminishing profits finally reversed under Bachand's tenure. With a common foe (Wal-Mart), the dealers came onside, and with a huge infusion of cash (a projected $1.5 billion), CTC began re-formatting and expanding its stores, a process that is now about halfway complete. After being stalled at around $3 billion in 1992 and 1993, sales began to climb again. Both sales and shareholder value have increased by more than $1 billion since Bachand took over.A selection committee chaired by Gilbert S. Bennett, chairman of Canadian Tire, will conduct a search for Bachand's replacement. One possible candidate is Wayne Sales, executive vice-president of CTC, considered by many to be instrumental in the company's revived fortunes.********BANKRUPT THUNDERBIRD CLOSES ITS DOORS After more than three decades serving western markets, Thunderbird Bath & Kitchen closed its doors finally on Saturday. Under the auspices of the receiver, PricewaterhouseCoopers, the company went into bankruptcy on November 3, 1999. A selloff of merchandise began then, with stores closing one after another and merchandise moved to remaining stores.By last Saturday, only three stores were left to complete the merchandise selloff. Any remaining inventory was moved to Thunderbird's warehouse, where all remaining assets will be sold off by January 31.At its peak in the early '90s,Thunderbird's sales reached $45 million through 25 stores. In 1998, sales were down around $30 million from 13 stores. By the end, sales had dropped to about $18 million from 11 remaining stores. The company suffered a further setback last year when its president, Marty Thorbeck, died suddenly. ********HOME HARDWARE'S WALTER HACHBORN NAMED TO ORDER OF CANADAThe man who co-founded Home Hardware Stores Ltd.has been named to the Order of Canada. Walter Hachborn, president of Home Hardware, introduced the dealer-owned hardware co-op in Canada, providing a viable retail model for the independent dealer. Hachborn, with partners Henry Sittler and Arthur Zilliax, founded the company in 1964 with a group of 120 dealers. The co-op model allowed the retailers to reduce costs by taking ownership of their distribution.The award comes on the heels of the announcement that Hachborn has been recognized as retailer of the century by Hardware Merchandising magazine. This award will be presented on February 6 at the Outstanding Retailer Awards during the Canadian Hardware and Building Materials Show in Toronto.COMPANIES IN THE NEWSOntario Premier Mike Harris announced a job creation program during a visit to the new Woodbridge Revy store near Toronto on January 13. John Kitchen, president of Lansing Buildall and vp of Revy's Ontario division, gave Harris a tour of the store. The announcement included the $220 million investment Revy plans to make in the province, which will result in 3,000 jobs.Sales for MAAX Inc. in its third quarter ended November 30, 1999. reached $108.7 million, compared with $87.1 million for the same period of last year, a 24.7% increase. This marked its seventh consecutive quarter of growth. Net income grew by 36.1% to $6.35 million, up from $4.67 million during the third quarter of the previous year. For the first nine months, sales rose by 42.4% to $333.6 million, up from $234.3 million. Weyerhaeuser Co. has acquired controlling interest in TJ International, which owns 51% of Trus Joist MacMillan. Weyerhaeuser already owns 49% of Trus Joist. Weyerhaeuser will purchase all outstanding shares of TJ International for US$42 per share, making it the world's largest producer of engineered wood products.Cameron Ashley Building Products had sales of US$1.14 billion in its fiscal year ended October 31, 1999, up 26.7% from U.S.$899.2 million in 1998. Net income was US$17.1 million, up from U.S.$15.3 million. CANADIAN STOCK WATCH
CANADIAN HARDWARE & HOUSEWARES MANUFACTURERS ASSOCIATION
********HARDLINES IN COLOGNE:Thinking of going to the world's largest hardware show this spring? You should be &endash; the Cologne International Hardware Fair/DIY'Tec, March 12-15, 2000, is the largest of its kind in the world and this is the year all the biggies will be there. That's why we've put together an incredible travel package to Cologne, Germany, with the support of External Affairs Canada. Call or email us for info! But act quickly on this because all the good hotel rooms are booking up fast! -- Michael This week in Hardlines:CANADIAN TIRE CEO WILL RETIRE THIS YEARStephen E. Bachand, president and CEO of Canadian Tire Corp., has announced his intention to retire by the end of this year. Bachand, age 61, will quit even sooner if a replacement is found before that. In the interim, he will maintain his full duties, continuing to oversee the rollout of the company's current strategic plans and manage its day-to-day operations.Bachand joined the company on March 1, 1993, after some 30 years at Hechinger's in the U.S. There, he ended up overseeing that company's own large format concept, Home Quarters, which had 45 stores. When he arrived at CTC, the company faced unrest from its dealers, uncertainty from its shareholders, a new gremlin-plagued distribution centre and the onslaught of U.S.-style retailers, particularly Wal-Mart and Aikenhead's. In an interview with Hardware Merchandising magazine in 1994 (when I had a real job &emdash; M.M.), he observed that "the company hasn't kept pace with a number of the changes that have been going on in retailing over the past few years, so I think we've fallen behind."Years of diminishing profits finally reversed under Bachand's tenure. With a common foe (Wal-Mart), the dealers came onside, and with a huge infusion of cash (a projected $1.5 billion), CTC began re-formatting and expanding its stores, a process that is now about halfway complete. After being stalled at around $3 billion in 1992 and 1993, sales began to climb again. Both sales and shareholder value have increased by more than $1 billion since Bachand took over.A selection committee chaired by Gilbert S. Bennett, chairman of Canadian Tire, will conduct a search for Bachand's replacement. One possible candidate is Wayne Sales, executive vice-president of CTC, considered by many to be instrumental in the company's revived fortunes.********BANKRUPT THUNDERBIRD CLOSES ITS DOORS After more than three decades serving western markets, Thunderbird Bath & Kitchen closed its doors finally on Saturday. Under the auspices of the receiver, PricewaterhouseCoopers, the company went into bankruptcy on November 3, 1999. A selloff of merchandise began then, with stores closing one after another and merchandise moved to remaining stores.By last Saturday, only three stores were left to complete the merchandise selloff. Any remaining inventory was moved to Thunderbird's warehouse, where all remaining assets will be sold off by January 31.At its peak in the early '90s,Thunderbird's sales reached $45 million through 25 stores. In 1998, sales were down around $30 million from 13 stores. By the end, sales had dropped to about $18 million from 11 remaining stores. The company suffered a further setback last year when its president, Marty Thorbeck, died suddenly. ********HOME HARDWARE'S WALTER HACHBORN NAMED TO ORDER OF CANADAThe man who co-founded Home Hardware Stores Ltd.has been named to the Order of Canada. Walter Hachborn, president of Home Hardware, introduced the dealer-owned hardware co-op in Canada, providing a viable retail model for the independent dealer. Hachborn, with partners Henry Sittler and Arthur Zilliax, founded the company in 1964 with a group of 120 dealers. The co-op model allowed the retailers to reduce costs by taking ownership of their distribution.The award comes on the heels of the announcement that Hachborn has been recognized as retailer of the century by Hardware Merchandising magazine. This award will be presented on February 6 at the Outstanding Retailer Awards during the Canadian Hardware and Building Materials Show in Toronto.COMPANIES IN THE NEWSOntario Premier Mike Harris announced a job creation program during a visit to the new Woodbridge Revy store near Toronto on January 13. John Kitchen, president of Lansing Buildall and vp of Revy's Ontario division, gave Harris a tour of the store. The announcement included the $220 million investment Revy plans to make in the province, which will result in 3,000 jobs.Sales for MAAX Inc. in its third quarter ended November 30, 1999. reached $108.7 million, compared with $87.1 million for the same period of last year, a 24.7% increase. This marked its seventh consecutive quarter of growth. Net income grew by 36.1% to $6.35 million, up from $4.67 million during the third quarter of the previous year. For the first nine months, sales rose by 42.4% to $333.6 million, up from $234.3 million. Weyerhaeuser Co. has acquired controlling interest in TJ International, which owns 51% of Trus Joist MacMillan. Weyerhaeuser already owns 49% of Trus Joist. Weyerhaeuser will purchase all outstanding shares of TJ International for US$42 per share, making it the world's largest producer of engineered wood products.Cameron Ashley Building Products had sales of US$1.14 billion in its fiscal year ended October 31, 1999, up 26.7% from U.S.$899.2 million in 1998. Net income was US$17.1 million, up from U.S.$15.3 million. CANADIAN STOCK WATCH