"Hire people who will treat the switchboard operator as friendly as they'll treat the managing director." - Richard Branson
vol. viii, #4 January 28, 2002  
* Peterson leaves Home Depot Canada * Canac-Marquis expands hardware store format * Weyerhaeuser seals deal with Willamette * Saskatoon show generates big sales * Wal-Mart now biggest company in the world
INTRODUCING THE RETAIL SERVICES SHOWCASE

Hardlines is pleased to announce a new forum for service companies, which target suppliers and retailers in hardware/home improvement. These companies will be participating - check them out!

COLOGNE INTERNATIONAL TRADE SHOWS JDA INC. TRANS CANADA CREDIT SERVICES STERLING COMMERCE NEWS MARKETING CANADA BLACK EAGLE CONSULTING CANADIAN HARDWARE AND BUILDING MATERIALS SHOW DIMENSIONS RETAIL SYSTEMS/SILK HARDWARE MERCHANDISING/CONTRACTOR CONNECTION NESBITT BURNS, PRIVATE CLIENT DIVISION COLLETT DESIGNS INC. NORAL INSTORE PROFORMA WOLF GUGLER & ASSOCIATES If you want your company to be part of this exciting new Showcase, contact Beverly Allen: 416-489-3396, bev@hardlines.ca
CANAC-MARQUIS GRENIER EXPANDS SUCCESSFUL HARDWARE FORMAT
A new store scheduled for Victoriaville, QC marks the first outside the Québec City region for Canac-Marquis Grenier - and its second store to sell just hardware. Canac-Marquis Grenier, an ILDC member with 11 stores and $100 million in retail sales, has had great success selling to a mix of DIY and trade customers. That success has been reflected in its growth - three new stores since 1998. But the most profitable of the three has been the 16,000-sq.ft. location that opened last year in Sainte-Foy - which doesn't carry building materials. Guy Bedard, general manager of Canac-Marquis Grenier, says the 26,000-sq.ft. store in Victoriaville will follow suit. "This is the first time Canac-Marquis Grenier is going outside of the Québec City region," he says, noting the difficulty of finding a good site that will allow a lumber yard anywhere except on the outskirts of town. "It's so hard to attract people to a store like that." The other challenge is shipping. Building materials shipped from Canac-Marquis Grenier's distribution centre in Québec City will incur added costs and cut into margins. Given the success of the Sainte-Foy store, the hardware-only model is a good solution, says Bedard. "We'll be the 'big box' in Victoriaville for hardware. We think we'll do well." The store is expected to open by the end of March. Canac-Marquis Grenier intends to keep growing, with stores planned for Beauceville, Rimouski, or even the north shore across from Victoriaville. However, Bedard says the company has no plans to enter the competitive Montréal market.
HOME DEPOT CANADA VP HEADS FOR ATLANTA
Eric Peterson has left his position as vice-president merchandising for Home Depot Canada to join the newly formed Southeast division in Atlanta. He will act as regional vice-president of operations for the division, which will serve the U.S. Southeast and the Caribbean. An eight-year veteran of the company, Peterson joined the Toronto office two years ago as right-hand to Annette Verschuren, president. His influence is regarded by many observers as having helped tie the Canadian division more closely to Atlanta. His merchandising skills were respected by vendors and competitors alike and his role within the Canadian division was considered a significant one. In fact, when both he and Verschuren spoke at the Hardlines Marketing Conference in 2000, she signified his importance by referring to him as her "partner" in the operation of the business. No replacement has been named for Peterson in Toronto as yet.
PRAIRIE SHOWCASE GARNERS KUDOS FOR HEAVY BUYING ACTIVITY
At the Prairie Showcase held last week in Saskatoon, SK, vendors enjoyed strong sales and dealers expressed a buoyant mood, reflecting the event's success as a buying show. And, even though attendance was down slightly over last year, overall sales generated by the event were up. "I've never heard such excitement on the show floor before," says Judy Huston, executive director of the Western Retail Lumber Association, which put on the event. "Exhibitors were saying it's better than last year." In fact, for some vendors, it was their best buying show in many years, with dealers lined up at 8 a.m. on opening day, waiting for the doors to open. The show benefited from the support of regional buying groups, including Tim-BR-Marts, Sexton Group and Castle Building Centres, which all held dealer meetings in conjunction with the show.
COMPANY 52-WEEK HIGH 52-WEEK LOW CLOSE (FRI.)
Canadian Tire 28.20 18.50 24.70
Canfor 12.60 8.08 9.47
Emco 7.50 3.35 6.70
Goodfellow 14.20 8.00 9.26
Home Depot 53.73 30.30 47.00
Hudson's Bay 20.10 12.50 14.66
Lowe's Cos. 48.88 21.33 44.70
Sears Canada 26.95 12.50 17.70
Sodisco-Howden 2.80 0.75 1.43
Taiga Forest 10.80 6.80 9.80
West Fraser 60.35 22.71 39.95
COMPANIES IN THE NEWS
J&H Builder's Warehouse, Saskatoon, SK, has joined Independent Lumber Dealers Association. The former Tim-BR-Mart member follows on the heels of McMunn & Yates, which joined ILDC before Christmas. Despite 7% growth in its last quarter, sales by Matco Ravary for the year ended October 31, 2001 were down 2.4% to $58.8 million, compared with $60.2 million the previous year. The company blamed the shortfall in part on weak LBM prices. Weyerhaeuser has finally succeeded in its bitter takeover battle for Willamette Industries Inc., paying US$5.50 a share, totalling about US$6.1 billion. Willamette's board was holding out in an effort to merge with Georgia Pacific. The deal is not expected to have any immediate impact on Weyerhaeuser's Canadian operations. Master Lock Co. has appointed Action Marketing to handle its commercial sales and marketing in Québec. Celca Marketing will manage all other retail accounts and store servicing in Québec. McCullough Sales will provide store servicing and manage all sales and marketing for retail accounts in Ontario. International Forest Products suffered a $1.9 million loss in its fourth quarter, down from a profit of $7.6 million in the same period a year earlier. Results reflect a provision made for duties from the U.S. Overall, Interfor's sales revenue declined to $175 million in the 4th quarter from $193 million in the 3rd quarter. Poor holiday sales and tough competition from Wal-Mart and Target have driven Kmart to file for bankruptcy protection. Strapped for cash, with its credit rating plummeting, the company says its 2,100 stores will remain open during restructuring. With US$220 billion in sales in 2001, Wal-Mart has pulled ahead of Exxon Mobil Corp. as the largest company in the world, according to Fortune magazine. With 1,165 stores from Argentina to South Korea, it's also truly global.
MARKET INDICATORS
Expect near-zero growth in Canada's construction industry for the year ahead, says the Canadian Construction Association. Construction will grow from $46.8 billion in 2001 to $47.9 billion, says CCA, but mostly due to inflation, not real growth. Commercial construction is expected to dip 0.8% in 2002. However, residential housing is expected to rise by 1.2%.Retail sales grew again in November, this time by 1.4% to $24.6 billion. This follows a 1.8% increase in October. November's increase was due largely to incentive-driven sales by auto dealers. Not counting auto sales, retail sales fell 0.6% in November. In constant dollars, retail sales advanced 2.1% in November after a similar gain in October (+2.4%). Consumers paid only 0.7% more for goods and services in Canada in December 2001 than they did in December 2000. Lower energy prices kept the consumer price index down. Excluding energy, the CPI was up 2.0%.
OVERHEARD
"They offer a competitive program and seem to be progressive in the style of how they negotiate." - Don Neufeld, president of J&H Builders Warehouse, on his decision to join the ILDC buying group.
PEOPLE ON THE MOVE
After 10 years as executive director of the Western Retail Lumber Association, Judy Huston has announced her retirement effective March 2003. Under her aegis, the association grew tremendously and launched a successful regional trade show, despite the scepticism at the time of the editor of one national trade magazine (oh, don't tell me, let me guess - MM). The WRLA board will begin their search for a replacement by next Fall. (204-957-1077)Stan Burkholder, co-owner of Burkholder Building Supply in Fairview, AB, has been named the new president of the Western Retail Lumber Association. He replaces Merv Weiss of Nor-Sask Investments Ltd. (204-957-1077) Mark Flor, formerly director of merchandising and marketing for Ace Hardware Canada, has joined Nesbitt Burns, private client division, as an investment advisor. (416-359-7649) (He'll also be joining us as an exhibitor at our Retail Services Showcase during the Hardlines Show Breakfast on February 3!) Debbie Lambert has been appointed vice-president of sales and marketing at Outdoor Inspirations. She was formerly national sales manager at Colorite Swan … Lambert joins Trent Coleman, who is president of the new company. He was formerly lead category manager for lawn & garden at Canadian Tire Corp. (905-852-9930) A number of appointments have been made at Master Lock Co.: John Collins, retail sales manager, will now hold responsibility for all regional sales activities across Canada and continue to manage national retail accounts … Andrew deBogyay has been promoted to retail accounts executive based in Québec … Kimberley Underhay has been promoted to retail accounts executive based in Ontario … Steve Burgess has been promoted to director of marketing & new business development … Kevin Draper has been appointed commercial sales manager for the Locker Lock business. (800-227-9599) Coleman Powermate in the U.S. has appointed Cindy Malin vice-president of business development - home centres. She will be responsible for strengthening the company's relationship with the likes of Home Depot, Lowe's, Menard's, Northern Tool and Fingerhut. She was most recently vice-president sales for Coleman's Outdoor Leisure Products group.
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CANWEL DISTRIBUTION ENHANCES SERVICE TO OTTAWA VALLEY
Lumber and Building supply dealers are excited over CanWel’s recent announcement that February 1, 2002 is the official date they will be servicing the Ottawa Valley from their distribution facility in Brampton Ontario. The Brampton facility is eager to serve the needs of our Ottawa Valley customers comments Jack Charlebois, CanWel’s Account Manager who will service this region. Initially the new run schedule will include weekly deliveries to the Gananoque and Deep River areas and twice a week delivery to the Ottawa Valley area. The delivery schedule will be reviewed as customers demands warrant changes. For more information contact Mike Piggot at 1-800-772-4118 ext # 263 or e-mail: mike_piggot@canwel.com
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 or email:jbrice@qualitycraft.com Confidentiality assured. *********************************************************************************** NATIONAL ACCOUNT MANAGER: Due to increased growth, The MIBRO Group, a leading North American supplier of Power Tool Accessories, Chain, Chain Accessories, Hand Tools & Lawn and Garden products, is adding to its growing sales team. The National Account Manager will be responsible for the sales and overall customer service of selected major accounts in both Canada and the United States. The ideal candidate will have a proven track record of sales, a personable approach to selling, high self-motivation, a competitive nature, and the ability to work in a team environment. Computer skills including the use of Excel, ability to travel, strong business writing capabilities, and knowledge of hardware products and the marketplace are essential. We offer a competitive compensation and benefits package. If you are interested in exploring this opportunity, and working in a high energy fast growing company, please visit our booth at The Canadian Hardware Show or forward your resumé to esmith@mibro.com or via confidential fax to (416) 285-9623. *********************************************************************************** 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 * * * * * ****************************************************************** 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. * * * * * *************************************************************************** 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! _____________________________________________
Hardlines is published weekly (except monthly in December and August) by McLARNEYCOM 542 Mount Pleasant Rd., Suite 302, Toronto, Ontario, Canada M4S 2M7 © 2002 by Michael McLarney. HARDLINES™ the electronic newsletter hardlines.ca Phone: 416.489.3396; Fax: 416.489.6154 Michael McLarney, Editor & Publisher: mike@hardlines.ca Beverly Allen, Marketing Manager: bev@hardlines.ca Nancy Wright, Circulation Manager: nancy@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: $199+$13.93 GST = $212.93 per year (GST #13987 0398 RT). Secondary subscriptions at the same office are only $28 + $1.96 GST = $29.98. Ask about our reduced rate for branch offices. You can pay online by VISA at our secure website or send us money. Please make cheque payable to McLarneyCom.