Top business reporter joins retail leaders at Hardlines Conference

WORLD HEADQUARTERS, TORONTO–Canada's most important annual gathering for home improvement executives has finalized its lineup of speakers for its new location and a new date–October 16th and 17th at the Toronto Congress Centre. Our keynote speaker for lunch on Oct. 16 is Bridgitte Anderson, the host of Report on Business Television's AM Business. This highly respected business journalist will provide her insights into the business of keeping track of Canada's business community. What trends and issues will impact this industry? Join us for lunch and find out! To close off the Conference, we've invited back Anthony Stokan of Anthony Russell and Associates, who will give us his take on the latest trends driving retail today. Guaranteed to be insightful and thought provoking! Please note this important change to the lineup, as well: Roger Plamondon of Home Depot Canada is being replaced by Dan McAreavey – President, Home Depot Supply Canada. Find out how the country's largest home improvement retailer wants to build its contractor and commercial business with this fast growing division. The Hardlines Conference also offers interactive seminars on business and demographics trends, the latest news and data on important market segments, and sector-specific breakout sessions on retail issues. And plan now to attend the Industry Awards Gala, with Hardware Merchandising's Outstanding Retailer Awards and HARDLINES' Newsmaker of the Year Awards on the evening of Oct. 17th. It's your chance to celebrate the industry success stories of the year. For more information on the Hardlines Conference, click here.

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RONA puts the push on big box openings

Winnipeg–RONA opened new big boxes in Winnipeg and Langford, B.C., last week, and this coming Wednesday big-box number 69 opens in Barrie, Ont. The raft of openings marks a mid-year push by Canada's number-two home improvement retailer to match its forecast of 5-10 new big box openings this year. While these three may fall short of that mark, the company has exceeded its targets for acquisitions and dealer recruitment. Also last week, RONA completed the previously announced acquisition of Curtis Lumber, a leading independent, with six locations, in British Columbia's lower mainland. That company adds almost $80 million to RONA's $5.2 billion in retail sales, in addition to about $100 million in annual retail sales from 17 new dealers that were recruited in the first quarter. RONA has also been busy with other new store openings, but these have been smaller formats, mainly building or home centres and a so-called proximity store, a "mini" big box concept that is tailored for smaller or urban markets. In Quebec, the company has also begun a major refurbishing and expansion of its Réno-Dépôt division.

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Can-Cell celebrates 30 years of specialized service

EDMONTON–In an industry that is seeing consolidation at all levels–including wholesale distribution–the ability of a regional player to flourish may appear somewhat anachronistic. Yet Can-Cell Industries Inc. has been serving dealers in Western Canada for three decades, a milestone that was celebrated recently at the company's headquarters here. Through its eight distribution centres, Can-Cell services more than 2,000 customers from North Western Ontario to Vancouver Island. The celebration played host to a number of these customers, as well as some of Can-Cell's key vendors. The secret, says Harold Tiemstra, who, along with his wife Wally, owns Can-Cell, is defining a select range of products for customers. "We try to find our merchandise where we feel there's a need in the marketplace," he says. Not only does Can-Cell rely on some key vendors in North America, but the company has, in the last two years, been buying from factories in Asia, as well. For a time, Can-Cell was adding more and more hardware items, but, says Tiemstra, in recent years, those lines have been cut back, enabling the company to focus on its core strength of specialty building products. According to Wally Tiemstra, the formula for success is a simple one: "We service the hell out of our retailers, and we keep adding new lines."

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CanWel expands its engineered wood offerings with Boise lines

VANCOUVER–CanWel Building Materials Ltd. has negotiated to become the sole national distributor for Boise Engineered Wood Products in Canada. Considered a significant growth opportunity in the Canadian marketplace, the new lines, which are manufactured by Boise Building Solutions Manufacturing Holdings Corp., a subsidiary of Boise Cascade L.L.C., will be added to CanWel's national network of distribution centres for sale to its retail and buying group customers. "The engineered wood product category has been an area that CanWel has been developing a strategy on for several years," said Tom Donaldson, CEO of CanWel. "The key was to identify and develop a partnering relationship with a world class manufacturer such as Boise." CanWel Distribution is a wholly owned subsidiary of CanWel Building Materials Income Fund, one of Canada's largest national LBM distributors, with 17 distribution centres across the country.

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Kingfisher's results dampened by sales at home

LONDON–Europe's biggest home improvement retailer, Kingfisher plc, had encouraging results in its second quarter everywhere except on its home turf, where the U.K. economy remains in the doldrums. Overall sales for Kingfisher, whose banners include B&Q and Castorama, rose 8.7% in the quarter, pulled down by a 1.3% drop in the U.K. Same-store sales in the U.K. fell by 1.3%, as well. However, sales in France were up by 6.9%, with same-store sales up by 1.3%. Stores in the rest of Europe enjoyed a healthy increase of 26.6%, with same-store sales up 8.4%. According to Gerry Murphy, Group CEO, "Kingfisher's second quarter featured a strong international performance and early signs of progress at B&Q in the UK, despite a continuing weak consumer market for home improvement." The company is investing £200 million (US$372 million) to upgrade 110 of its B&Q big box stores. The first new-look store opened last week, with more emphasis on complete home renovations and décor, rather than just a DIY product focus. Kingfisher's business in Asia continues to return the greatest sales increases, although profits are harder to squeeze out of this relatively new marketplace. Kingfisher's business in the Far East, where it has stores in China and South Korea, rose by a whopping 76.2%, due to a rash of new-store openings plus the impact of the acquisition last year of a group of stores from rival OBI. Same-store sales were up 9.0%. "Kingfisher's international development programme has continued on track this year, with 20 new stores opened so far and good like-for-like growth from stores open for more than one year, Murphy added. Kingfisher is the third-largest home improvement retailer in the world (after Home Depot and Lowe's in the U.S.), with more than 680 stores in 11 countries. Besides the B&Q, Castorama, Brico Dépôt, and Screwfix Direct banners, Kingfisher has a 21% interest in Hornbach, Germany's leading big box DIY retailer. Hornbach has more than 120 stores throughout Europe.

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Quarterly profits rise for Sears Canada

TORONTO–While the sale of its Credit and Financial Services division at the end of last year affected its revenues, profits for Sears Canada Inc. in the second quarter were up. Revenue for the second quarter reached $1.43 billion, down 6.2% from $1.52 billion a year earlier. Same store sales decreased 3.0%. However, 2Q profits were $18.1 million, from $10.9 million in the same quarter last year. Year-to-date sales were $2.65 billion, down 6.8% from $2.84 billion for the same period last year; same-store sales decreased 2.8%. Profits for the first six months, including non-comparable items, narrowed from $24.8 million to $6.3 million. Gross margins for the first six months increased by 105 basis points over the same period last year. Total expenses were reduced by 13.4%, approximately 60% of which are related to the sale of the Credit and Financial Services operations.

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