Michael McLarney, President & Editor mike@hardlines.caBeverly Allen, Publisher bev@hardlines.caJohn Caulfield, Contributing Editor Phone: 416-489-3396
January 26, 2009, Volume xv, #4
In This Issue

“Some people are always grumbling because roses have thorns. I am thankful because thorns have roses.” — Alphonse Karr, (French journalist and novelist, 1808-1890)

RONA offers incentives for Quebec tax credit
BOUCHERVILLE, Que. — RONA inc. has announced it will offer incentives adding to the Quebec government’s new tax credit program for residential renovations and improvements. As part of this initiative, RONA is offering 10% cash back that can be redeemed in gift cards. The cards can be applied to purchases at RONA or Reno-Depot stores throughout the province on eligible projects, which must be done by accredited contractors.Consumers who use RONA or Reno-Depot Installation services to complete their project will also benefit from 10% cash back. The gift card cash back will be applied on all eligible purchases up to $7,500 before taxes. The project or materials have to be paid using RONA’s Visa credit card, which is operated through Desjardins. Purchases through the card’s “Multi-Purchase Renovation Plan” are charged interest rates as low as 6% on financing of $2,500 and up. According to Claude Bernier, RONA’s executive vice-president, marketing and customer innovations, “… [w]e wanted to offer our support to Quebec consumers by providing them with additional savings on their renovation and improvement projects. This initiative could even inspire some consumers to start projects that would otherwise have been impossible for them to realize, since savings are applied on the first dollar they spend on their renovations.” Under the RONA Visa Desjardins card’s Multi-Purchase Renovation Plan, consumers will be able to complete their purchases during a two-month period, after which their total spending will be divided into 36 equal payments. “We are happy that Desjardins is collaborating with us in implementing this competitive program. We believe the government’s measure is helping consumers, the industry as a whole, as well as contractors, who — let’s hope — will benefit from a higher number of projects in the year to come,” Bernier added.

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TIM-BR MART dealer optimistic about upside opportunities
HAVELOCK, Ont. — For someone who’s supposed to be retired, Brian Macey is one busy guy. He just took over a TIM-BR MART store in this town in Northeastern Ontario and is looking for ways to capitalize on what is generally regarded as a down economy.Macey, who spent many years as senior vice-president of marketing and sales for Westroc in Western Canada, started freelancing after he “semi-retired”, investing in some businesses and helping them turn around. But when Steve Stremecki, vice-president retail services for TIM-BR MARTS Ltd., called him and suggested he invest in a store, he took the opportunity. (Macey observes that Stremecki worked for him at Westroc years ago). The store, Newton TIM-BR MART, was purchased from Wayne Newton, and will remain a member of the giant national LBM buying group, now under the name Havelock TIM-BR MART. The role will be a hands-on one for Macey, working with existing staff. “We’ll start by upgrading the marketing and presentation of the store,” he says. Why invest now? He expects that a lot of people who have lost their jobs, especially in sectors such as the automotive industry, will have time on their hands to fix up their cottages, and he wants to be there to serve that market. “We think there are some upside opportunities for building the business.” Macey also thinks there is opportunity beyond this business. “We’re not stopping here,” he adds.

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Home Hardware launches interactive 3D room planner
ST. JACOBS, Ont. — Home Hardware Stores Limited has introduced a Virtual Planner for its stores, a fully interactive 3D web visualization and space-planning tool, from 20-20 Technologies. The Virtual Room Planner will allow homeowners planning a renovation to plan their kitchen or storage project before purchasing products.“We wanted to create an easy-to-use tool to help homeowners and Home store owners work together to visualize, plan, and design kitchens and other storage areas using products available from Home,” says Mark Nykamp, product manager – kitchen cabinetry and flooring, at Home Hardware Stores. Visitors to the Home Hardware Virtual Room Planner can select from pre-designed rooms or begin space-planning from blank 2D/3D floor plans, adding dimensions and items to complete the design. The manufacturer-specific data in the Virtual Planner allows homeowners to view full product details for Home Hardware’s own range of kitchens and storage products.

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Former TSC chief exec invests in window business
LONDON, Ont. — A veteran of the hardware business is starting a new retail door and window operation, despite the downturn in the economy.Roy Carter, former president and CEO of TSC Stores Ltd., a chain of farm and hardware stores based here, has invested, along with a couple of partners who are both active in the door business, to establish “WiseBuys Window and Door Store”, an 8,000-sq.ft. warehouse-style cash and carry outlet that will serve both consumers and installers. “It’s very consumer friendly, in fact,” says Carter. “We’ve actually had an interior decorator choose the colours for it.” The front of the store is carefully merchandised, and then warehouse racking continues throughout the rest of the store. The building, on Exeter Rd. in south London, is the former home of a construction equipment rental business that moved to a bigger building. The store will carry lines from major door and window suppliers, with those relationships being firmed up over the coming months. Of course, we have to ask the question on all our readers’ minds: why a door and window store, and why now? “We think in the renovation and do-it-yourself market, there is an opportunity [for homeowners] to reduce their costs significantly by cutting out the middle man,” says Carter. “We are trying to offer some more economical options.” The store will also carry B-grade products for lower-cost projects. Opportunities for expansion exist, as well, he adds, calling this first store a chance for him to “get his feet wet in the door and window business.” Additional investments are limited only by difficulties in securing financing in the current economic climate.

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Home Hardware dealer to build bigger store
TILLSONBURG, Ont. — A Home Hardware Building Centre dealer in this town in Southwestern Ontario is preparing for the downturn by… building a new and expanded building supply store. According to the Tillsonburg News, the application, by Fred Schiedal of Schiedal Construction Inc., is for a new store on the site of the existing store, which will also incorporate another smaller Home Hardware store in town, putting both locations under one roof.The end result will be more than 34,000 sq.ft. in size and include a 3,000-sq.ft. open storage building and outdoor lumberyard. The original store will stay open until the new one is completed, then the old buildings will be torn down.

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Home Depot Canada launches paint and battery recycling
MISSISSAUGA, Ont. — Home Depot Canada, in partnership with Stewardship Ontario, has launched two Ontario-wide in-store recycling programs. Ontario residents can now bring their old non-rechargeable batteries and paint into any of Home Depot’s 85 locations across the province to have them recycled through Stewardship Ontario.To recycle old non-rechargeable batteries, consumers can simply bring them in to any Ontario Home Depot store, where they will find a battery recycling unit located at the front entrance. All reusable material in the expired batteries will be recycled. Consumers wishing to recycle old paint can bring in the unused portion in a clearly labeled container to the Returns Desk. The recycled paint will be used to create a new line of environmentally preferred paint products.

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Classifieds

NATIONAL ACCOUNTS MANAGER

We are an established manufacturer/distributor seeking an experienced sales professional to join our organization. The person that we are looking for must have a minimum of 3 years selling experience in the retail home improvement industry coupled with strong relationships/contacts at the major accounts. The individual hired will be based out of our GTA office with Canada wide responsibility, working closely with our sales agents and customer support team to manage and grow our business. Please email your resume and salary expectations to: admin@hardlines.ca with P.O. Box 42 in the subject line

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Resumés
Know someone who is between jobs? We will send a complimentary subscription to anyone who is seeking a job. We also offer a free Online Resumé Service. Ask them to call or email us here at the World Headquarters. (And why not tell your HR department about this service!) Email Brady for more info. —Beverly
Marketplace
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Publishing Details: HARDLINES is published weekly (except monthly in December and August) by HARDLINES Inc. 360 Dupont Street Toronto, Ontario, Canada M5R 1V 9 © 2009 by HARDLINES Inc. HARDLINES™ the electronic newsletter www.HARDLINES.ca ; Phone: 416.489.3396; Fax: 416.489.6154 Michael McLarney - Editor & President - mike@HARDLINES.ca Beverly Allen, Publisher - bev@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:$285 (Canadian subscribers add $14.25 GST = $299.25 per year/ GST #13987 0398 RT).Secondary subscriptions at the same office are only $46 (Canadian subscribers add $2.30 GST = $48.30).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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Welcome to our recession-busting GOOD NEWS issue of HARDLINES! Frankly, we’re kinda tired of hearing all the bad news out there. Some companies are actually finding opportunity in the face of this economic downturn. So that’s what we’re reporting on this week. If you’ve got a good news story, let me know! —Michael

GOOD NEWS IN BRIEF
WINNIPEG — The gloves are on for the manager of Johns Manville in Canada, and watch out — he packs a wallop. Gino Allegro, manager of Canadian sales for Johns Manville, will participate on March 7 in an “executive white collar” boxing night. The charity event has been developed to raise money for Youth at Risk. According to Allegro, he’ll be pitted against lawyers, doctors, brokers and other professionals working in downtown Winnipeg. If you can wangle a ticket to this sold-out black-tie affair, which is attracting people from all over north America, it’s being held at the Pan-Am Boxing Centre. Allegro, who trained as a youth, took up boxing again seven years ago. It tops off a career that includes competing in the Mr. Manitoba body building competition… well, more years ago than he cares to remember.NIPAWIN, Sask. — At a recent chamber of commerce dinner here, awards were given to companies for various achievements in service, heritage, and retail. In the retail category, the award went to Pinecrest RONA Lumber, a family business started in 1983, which has, over the years, grown from 2,400 sq.ft. to 10,000 sq.ft. WINDSOR & BARRIE, Ont. — Lowe’s Canada opens two more stores here this week, completing its announced expansion plans for its 2008 fiscal year (Lowe’s year end is Jan. 31, 2009). The stores open to contractor customers today, then to the public tomorrow, with grand opening celebrations through the weekend. Lowe’s now has 11 stores in Canada, all of them weighing in at 117,000 sq.ft., with an additional 31,500 sq.ft. or more devoted to a garden centre. CAMPBELL RIVER, B.C. — A Home Depot store is slated to open here Feb. 19 — a month ahead of schedule. Even though the town is facing job losses, the manager of the store, Nancy Gurr, expects the new outlet to bring jobs to Campbell River, and help keep consumers from going to nearby Courtenay or Nanaimo to shop. Gurr has been with Home Depot for 12 years, most recently opening and managing the store in Abbotsford. Home Depot Canada has two more openings confirmed for this year: Fort Saskatchewan, Alta., on Feb. 5; and Duncan, B.C., on Aug. 6. TORONTO — HBTC, the private equity company that owns Hudson’s Bay Company has said it will invest $70 million in the chain, which comprises The Bay, Zellers, Home Outfitters, and Fields. Another $60 million will be injected into the company’s U.S. retail chain, Lord & Taylor. BURLINGTON, Ont. — Wal-Mart Canada is opening its first environmental demonstration store here, which, it claims, features a “first-of-its-kind application of geothermal technology in a large-scale Canadian retail operation”. The site also includes energy-conserving lighting innovations and other sustainable features. This year, Wal-Mart Canada will roll out more of these prototype stores, which are, the company says, 30% more energy efficient. The new Burlington supercentre is expected to use an estimated 60% less energy than a typical Wal-Mart supercentre store and to reduce carbon emissions by an estimated 141 tonnes. It is also expected to divert an estimated 85% of its waste from landfill through a variety of recycling programs. TORONTO — Canadian Tire is pulling the plug on its online selling service. It’s just taking up too much time and money (besides, don’t 85% of Canadians live within 15 minutes of a Canadian Tire outlet?). Like other retailers, Canadian Tire has found the online presence works best providing product information for customers, which takes the pressure of staff in-store. DUNCAN, B.C. — Western Forest Products, the integrated Canadian forest products company, has completed its $50 million rights offering, which was announced on Dec. 1, 2008. Approximately 188.7 million common shares were subscribed for by right holders pursuant to the basic subscription right, including exercise of the basic subscription right by Tricap Management, Western’s largest shareholder, for proceeds of approximately $35.9 million. The shares will be issued not later than Jan. 27, 2009.
 Meet hardware sourcing partners from  the Far East at Asia-Pacific Sourcing 2009

Cologne, Germany 1-3 March, 2009 www.asia-pacificsourcing.com 

PEOPLE ON THE MOVE

The Canadian Hardware & Housewares Manufacturers Association has announced its 2009 Industry Hall of Fame inductees. Gaetan Martel, executive vice-president of RCR International Inc. (retired) and Wayne Sales, former CEO of Canadian Tire Corp. (retired) will be inducted into the Industry Hall of Fame on April 1, 2009 at the CHHMA’s Industry Gala Dinner. The Industry Hall of Fame was established in 1984 to recognize the achievements of our industry’s leaders and pioneers. Through the years, such notables as the founders of Canadian Tire, Home Hardware, Revelstoke Stores, RONA, and London Drugs from the retail side, along with inventors such as P. L. Robertson and George Cluthé, and icons such as Les Groves, Keith Russell, Shelly Lush, and Bill Sparling on the manufacturing side, have been inducted into the Hall of Fame. For more info and to register for the Dinner, go to www.chhma.ca.At RONA inc., Paul Jovian has been appointed senior vice-president, supply chain management, reporting directly to Robert Dutton, RONA’s president and CEO. In this newly created role, Jovian will be responsible for management of the company’s entire supply chain, under policies within RONA’s strategic plan, which aims to optimize the network and supporting business growth through 2011. Jovian was most recently vice-president of supply chain major projects at Canadian Tire Corp., in a career that has spanned 25 years. At RONA, Jovian’s team consists of logistics, demand planning, and supply chain management. Marty Hawthorn has expanded his former role of Ontario manager allied products at Taiga Building Products to become market development manager for Johns Manville insulation products in Southern Ontario. (mhawthorn@taigabuilding.com or 1-800-268-5095) Hudson’s Bay Trading Company (HBTC), the parent of Hudson’s Bay Company, has realigned its retail team. Jeffrey Sherman’s role has been expanded to CEO of HBTC, overseeing all retail banners, which comprise The Bay, Zellers, Home Outfitters, and Fields in Canada and Lord & Taylor and Creative Design Studios in the U.S. The result of the restructuring is the creation of a new “Shared Services Group”, created to streamline and integrate central functions including finance, IT, supply chain, logistics, and operations. Don Watros, COO of HBTC Shared Services Group, will head up this new division and report directly to Sherman. Reporting to Watros: Mike Culhane, senior vice-president, finance, HBC, Canadian banners … Chris Sim, senior vice-president, finance, U.S. banners … Dan Smith, chief information officer, HBC, Canadian and U.S. banners … Gary MacDonald, senior vice-president, supply chain, logistics, central operations, real estate, Canadian banners … Bill Tracy, executive vice-president, supply chain and logistics, U.S. banners … Parker Vaughey, vice-president, strategic planning and internet. In addition, Bob Kolida will be appointed executive vice-president, Human Resources, HBTC, and will report directly to Sherman. Outgoing svp and CFO Steve Richardson will leave the company in mid-March to pursue other interests. To place a listing in our People on the Move section, please send information, including the person’s name, title and contact email or phone number, if desired, to mike@hardlines.ca. HARDLINES reserves the right to edit items for length.

ECONOMIC INDICATORS

(Okay, you’ve got me here. I couldn’t find any good news for this section, we’re leaving it empty for this issue—Michael)
Industry Resumés
I am a goal-oriented, project driven, sales and marketing professional looking to join your sales team. I have fifteen years experience in the hardware industry, encompassing retail sales, account management, and brand marketing. My experience working with regional and national accounts, combined with my marketing experience, allows me to drive sales and meet budgets cost effectively.

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I am an accomplished sales professional and solution-oriented person who thrives in challenging, fast paced environments where my performance directly impacts the bottom line. In addition, I have solid organizational leadership and decision-making skills that can make an immediate contribution to your operations and business development. Currently, I am seeking a position where I can continue to uphold strong sales and performance standards.

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Experienced Sales Accounts Manager - Senior Buyer with 20 years of knowledge and contacts in the building supply industry. Excellent organizational and analytical skills complimented by my outgoing and positive attitude will make me a great asset to your companies team

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Enthusiastic, versatile buyer/category manager with experience in sourcing a wide assortment of goods and services. Offers experience in negotiations, brand development, merchandising, vendor management, competitive analysis, inventory management and business development.

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Entrepreneurially focused, front-line retail marketing professional with organizational and strategic marketing talents; combines a unique blend of product and market knowledge with solid business development abilities.

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Achievement-oriented, entrepreneurial and creative. Ability to motivate and lead others. Extensive experience in marketing, sales and retail operations.. Full computer literacy, Cad, Coral, Windows etc.

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Seasoned Territory Manager - skilled in building and maintaining customer relationships in the retail building supply channel and industrial tooling & consumables sector. Looking for an exciting new challenge with progressive, growth oriented company calling on all sectors from distribution to end users.

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Well respected Sales Professional, established relationships in Mid West and South West Ontario. An excellent team player who achieves ongoing success with peers and customers by building morale, maintaining teams' self-confidence and encouraging them to build the sale by improving their people skills, communication skills and Product Knowledge.

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“Strategic Sales and Marketing Executive available to achieve your top line and bottom line results during these challenging economic times…..If it is leadership, entrepreneurial spirit and passion you seek, look no further…..”

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Achievement-oriented, entrepreneurial and creative. Ability to motivate and lead others. Extensive experience in marketing, sales and retail operations..

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A highly qualified sales/marketing and senior buyer with over 25 years experience and a proven track record is seeking a senior management position with a growth-oriented corporation where leadership and strong communication skills will have an impact on profitability, productivity and market share.

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Sales professional - established relationships with key clients in the hardware, building materials, and paint industries, team player, superior business development skills, competitive, enjoys challenges.

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