"Look out for the fellow who lets you do all the talking." - Frank McKinney (American humorist, 1868-1930)
vol. viii, #3 January 21, 2002  
* Women prefer local hardware store, Canadian Tire * Smaller sites force boxes into smaller stores * Home Depot cuts one division in the U.S. * Lee Valley Tools will open 10th store * Wholesale trade up slightly in November

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
Canadian women prefer to shop at well-established stores that are close to home, says the latest research from Hardlines Quarterly Report. A survey of men and women across the country, conducted by ACNielsen Canada for HQR, the sister publication to Hardlines, reveals that women rank the convenience and brand recognition of Canadian Tire and neighbourhood hardware stores above big boxes or building centres. Once inside a big box store, women are more inclined than men to spend money, says the report. But for purchases over $200, women are most inclined to spend at a building centre or lumber yard than a big box. (The results of this exclusive survey, plus tons of other research - and an interview with the head of Home Depot Canada - all appear in the 1Q issue of HQR, available February 3 - MM)
Home Depot Canada is the latest big box player to start downsizing its stores - and for once the consumer isn't driving the change. Faced with fewer and fewer good large urban sites, Home Depot, Réno-Dépôt and Rona are all looking for ways to put a full assortment into stores that are 10% or 20% smaller than the traditional footprint. Eric Peterson, vice-president merchandising for Home Depot Canada, says the move is a pragmatic one in response to the tight demand for real estate. But, he adds, the big box model doesn't get compromised by the downsizing; in fact, older Home Depot stores were typically closer to 95,000 sq.ft. than the current model of 115,000-plus sq.ft. - plus garden centre, that is. Peterson says Home Depot has four sizes "on the boards": 81,000, 90,000 (Peterson's personal favourite!), 95,000-100,000 and 110,000 sq.ft. In each case the garden centre adds about 20,000 sq.ft. Sylvain Toutant, president and CEO of Réno-Dépôt, says his company has encountered the same challenge. While stores in the Montréal area reach 165,000 sq.ft., a recent opening in Sherbrooke, QC weighed in at 124,000 sq.ft. Some of its Building Box stores currently under development, including one slated to open in Windsor ON this Spring, will likely be around 130,000 sq.ft. Even Rona has been cautious in opening large-size stores. Although it's currently building a Rona Warehouse in Gloucester, ON, Its latest opening in the Montréal area - in Laval - was in fact a smaller box format Regional store.
Canadian Tire 28.20 17.15 26.50
Canfor 12.60 8.05 9.70
Emco 7.50 2.60 5.75
Goodfellow 9.90 8.00 9.00
Home Depot 53.73 30.30 49.41
Hudson's Bay 20.10 30.30 13.60
Lowe's Cos. 47.14 18.87 46.31
Sears Canada 26.95 12.50 17.40
Sodisco-Howden 2.80 0.75 1.30
Taiga Forest 10.80 6.80 9.80
West Fraser 40.00 23.00 37.75
Sales for Sears Canada were up slightly in 2001, to $6.726 billion, from $6.356 billion in 2000. Profits dropped to $94.1 million from $225.8 million a year earlier. Sales dropped 1.6% in December, and same-store sales for the month were down 3.5%. Home Depot in the U.S. will combine two of its nine divisions into a new unit to service stores in the U.S. Southeast and Caribbean. The Southern division in Tampa, FL will be rolled into the Atlanta-based Midsouth division. Lee Valley Tools will open its 10th store by Fall 2002. It will be located in Burlington, ON on a site that will be shared with Home Depot, Staples and other retailers. American Tool Cos. Canada Inc. will move to new offices effective February 1 ,2002: 391B Matheson Blvd. East, Mississauga, ON L4Z 2H2. Phone and fax remain the same: 905-890-0334; fax: 905-890-7037. Do-it Best Corp. will offer an executive symposium for its retail members throughout the month of February. Called "Maximize your retail image, your profits, your growth," the program is aimed at updating members on current industry trends to help them refine their growth strategies. The one-day event will be hosted in 36 locations throughout the U.S. Home Depot in the U.S. slipped from number one to 19th place in this year's consumer survey of corporate reputation. Cluttered aisles and lack of product knowledge led the list of gripes by shoppers who were surveyed, says a study by Harris Interactive and the Reputation Institute. Wal-Mart ranked 17th.
Phil Brown, formerly vice-president of Growmark Canada's consumer division, has departed on the heels of a restructuring of the Canadian operation at the hands of Growmark's parent, Growmark Inc. in the U.S. Tony Di Emanuele, director of merchandising and marketing, will handle retail concerns until the new structure is finalized. (905-826-0200)
Sales by large retailers were up 6.4% to $7.6 billion in November 2001, from November 2000. According to Statistics Canada, the hardware, lawn and garden category was up 9.0%; home furnishings and electronics were up 12.8%. Wholesale trade in Canada rose a modest 0.4% in November, says Statistics Canada. Strongest gains were in the "other" category, which includes toys and sporting goods, while hardware and plumbing fell 1.8%. Wholesale sales weakened in all provinces except Manitoba, Newfoundland and Québec.
"I don't even pretend to understand, anymore, why we continue to grow." - Leonard Lee, president of Lee Valley Tools, reflecting on company sales growth in December 2001 from a year earlier. which was more than double its forecast.

Pre-registrations for the 2002 Canadian Hardware and Building Materials Show are up substantially compared with the same period last year. To date, advance registration is up by 16%. While registrations from Ontario are at par with last year, CHS is enjoying increased registration from Western Canada and the Atlantic provinces. Québec is the only province with fewer registrants to date.

"Registration in the all-important retailer attendee category is up by 23%, a figure which bodes well for booth activity at CHS," says Bob Elliott, president of the Canadian Retail Hardware Association, which co-hosts the show. A good portion of this year's advance registration is in the interior design/decorator attendee category. The show's new alliance with the Walls Windows Furnishings Association has resulted in a surge of interest in the show's Décor Showcase - which is expected to benefit related home improvement exhibits. The show runs February 3-5 at The National Trade Centre in Toronto.
****HARDLINES MARKETPLACE**** Check out Hardlines Classifieds on the web: https://hardlines.ca/html/classifieds_new.asp BUSINESS OPPORTUNITY: Quality Craft is Looking for People to Start New Divisions. We are a well-established importer with offices in Canada, The U.S. and Europe. We specialize in supplying high volume Asian made products to discount, department and DIY retailers. We are looking for highly motivated people to start new divisions. If you have experience selling to mass merchants in Canada and have good product category knowledge in almost any field, we would like to talk to you about starting a new division on a profit sharing basis. We are particularly interested in lighting, seasonal, hardware, lock sets and furniture. For more information, call: John Brice, 1-800-663-2252. Confidentiality assured. CATEGORY MANAGER: Located in Calgary, we are a progressive and dynamic agricultural cooperative seeking a Hardlines Category Manager with a proven track record of 5 years in the Category Management discipline. If you are a goal-oriented team leader who is committed and passionate in achieving results, you should apply no later than February 8, 2002 to: Human Resources United Farmers 1016-68 Ave. SW Calgary, AB. Canada T2V 4J2 Fax: (403) 258-7630 E- Mail: resumes@ufa.com (040202) * * * * * * 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! _____________________________________________
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