HARDLINES™
Five years serving Canada's home improvement industry
July 10, 2000 - Volume vi, #27
Michael McLarney , Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com Check out our incredible Classifieds section! COTTAGE FOR RENT: LAKE HURON Available August 19-26 and August 26-September 2, this 3-bedroom lakefront cottage sleeps 5 and has shallow-entry sandy beach ideal for kids, TV, fireplace, canoe. Pets ok. On Howdenvale Beach, near Owen Sound and north of Sauble Beach at the foot of the Bruce Peninsula. $775 for each week. For more information, contact Hardlines at: 416-480-3396, or e-mail: buzz@hardlinesfax.com* * * * * *
PROVINCE GIVES $$ TO RETAIL PROPERTY DEVELOPER Independent dealers in New Brunswick are up in arms following a land development deal between a power centre that includes a Home Depot and two levels of government. The new store, which will go up in Moncton some time in early 2001, is located off Wheeler Blvd.
The province has agreed to pay the property developer of the power centre $500,000 for off ramps from the highway that will feed right into Home Depot's parking lot. The city of Moncton will contribute another $125,000 to build arterial roads.
The infusion of government money has many baffled - and concerned it may set a precedent. "It's usually the other way around," admits one retail planning consultant, adding that the arrangement is "a little unusual," but points out that the amount of government funding is likely to account for only a fraction of the total cost of road construction, which can reach into the millions of dollars.
The new 20-acre power centre, designated as Trinity Rd. II, will reportedly add Wal-Mart as another tenant. The site is diagonally across from Trinity Rd. I, an existing power centre that includes Costco and a Kent big box. This centre has no direct access from the highway.
Representatives of the Atlantic Building Supply Dealers' Association are meeting today with the NB minister of export and investments, Peter Mescheaux to voice their protest. "Two of the largest retail organizations in the world and we're paying for the off ramps," says Don Sherwood, executive director of the ABSDA. "A tremendous amount of input has come from our members throughout Atlantic Canada as a result of this."
TIM-BR MART BASEBALL TIE-IN GETS NATIONAL PROMOTION A summer promotion between Honda Canada, the Toronto Blue-Jays and TIM-BR Mart branded stores throughout Ontario and the Atlantic provinces will see four finalists from Ontario and four finalists from Atlantic Canada each win a trip for two to a TIM-BR Mart Tuesday Blue Jays game at the SkyDome. Two 2000 Honda CR-V EXs will be given away, one on August 15 and one on September 19. The promotion is being advertised on television and radio, through sale event flyers, exterior pole wrappers for store parking lots, interior POP and the TIM-BR Mart website.
COMPANIES IN THE NEWS
Canadian Tire launches its "Radio Days" summer promotion today. For the next two weeks, two products each day will be featured at "Flash Back" prices - costing what the would have in the '60s and '70s. For the duration of the summer, Retro Tuesdays and Thursdays will continue the pricing promotion. In addition, CTC is holding a consumer contest, giving away retro-styled products like a Chrysler PT Cruiser, bicycles and scooters.
Hudson's Bay Co. has formed an alliance with IBM Canada, Microsoft Canada and Oracle Corp. Canada to implement a new e-commerce business strategy for HBC. According to the release, they will "enable HBC's enterprise-wide integration of the next-generation technology solutions and the renovation of HBC into an e-enabled retail leader in North America." Got that?
Home Depot Canada opened the doors to its first store in Belleville on June 6, the company's 57th in Canada. More than 170 locals have been hired to fill full- and part-time staff positions.
Lowe's Home Improvement Warehouse has moved up to the #2 ranking in appliance sales nationwide and the company is the #1 seller of appliances among home improvement centres. The ranking, by the Stevenson Co., is based on total shipments of appliances to all U.S. appliance retailers in 2000. Lowe's stocks more than 250 major appliances, including Whirlpool, KitchenAid, Frigidaire, Maytag, Jenn-Air and General Electric. Lowe's Appliance Advantage includes an additional 2,500 appliances available through special order.
To celebrate the opening of its 1000th store, Home Depot turns Wall Street orange today. A huge orange apron is being draped over the exterior of the nine-story New York Stock Exchange building. Inside, Chairman Bernie Marcus and President and CEO Arthur Blank, joined by staff from all 11 North American divisions, will ring the bell to open the exchange. Pauline Atwaters from the Langley, BC, store is representing the Canadian division. MAAX Inc. closed its first quarter ended May 31 with a 20.8% increase in sales, which reached $133.4 million, up from $110.4 million. Net income rose 8.8% to $7.4 million, compared with $6.8 million for the first quarter of the previous year. This followed a 38% increase in sales for its fiscal year ended February 29, to $431.9 million.
Premdor Inc. has signed an agreement to acquire certain assets of Wing Industries, Inc., a subsidiary of Atrium Cos. Wing specializes in the fabrication and distribution of value-added interior door products to the U.S. retail home improvement industry. The deal is expected to close within 45 days, subject to approvals.
CANADIAN STOCK WATCH "Tis better to be alone than in bad company." - George Washington (1732-1799)
PEOPLE ON THE MOVE Mark Coffey has joined Home Depot Canada as the hard goods merchant for seasonal. He comes over from Growmark, where he spent nine years. Prior to that he was at Beaver Lumber. (416-609-0852)
Dave Browne, vice-president of sales at Danbel Inc., has left the company.
Jim Morgan has joined Duxton Windows as sales manager. A 25-year veteran of the window and door industry, he will be responsible for building Duxton's distributor network for its pultruded fiberglass windows and doors, especially in western Canada. (204-339-6456)
* * * * * *
NEW REPORTING AT HOME HARDWARE REFLECTS BEAVER CONSOLIDATION Eric Konecsni has been named vice-president, operations, at Home Hardware Stores Ltd. He heads up a new operations group comprising corporate stores, real estate, dealer support, dealer development, distribution and warehousing, the Paint and Home Products division, and Home Furniture. Beaver Lumber, which is also part of the group, will continue to be Konecsni's responsibility
until the conversion is complete … Jim Baird, vice-president - eastern operations, and Lance Shipley, vice-president - western operations, keep their management roles with Beaver Lumber and their positions as directors on the boards of individual Beaver joint-venture companies until the conversion to Home Hardware is complete.
Senior management team (reporting to Paul Straus, vice-president and CEO):
Terry Davis, Vice-president, Information Technology
Ray Gabel, Vice-president, Merchandising and Marketing - Hardlines
Stew Gingrich, Director, Human Resources
Eric Konecnsi, Vice-president, Operations
Dianne McTavish, Corporate Secretary
Bill Simpson, Vice-president, Finance and Administration
Bruce White, Vice-president, Merchandising and Marketing - Building Supply
Information technology team (reporting to Terry Davis, vice-president, information technology):
Brent Horst, Corporate Systems Development
Bernie Henry, Corporate Computing
John Rogez, Retail Systems Development
Glen Seibel, Retail Technology
Rich Clemmer, Enterprise Architecture
Merchandising and Marketing - Hardlines group (reporting to Ray Gabel, vice-president, merchandising and marketing - hardlines):
Dick Plata, Sales & Promotions Manager - Hardlines
Neil Schmidt, Merchandise Services Manager - Hardlines
Bruce Shuh, Director, Marketing - Hardlines
Joel Marks, Director, Merchandising - Hardlines. Marks was most recently director, merchandising at Beaver Lumber, where he has been part of the team since 1981.
Merchandising and marketing - building supply group (reporting to Bruce White, vice-president, merchandising and marketing - building supply):
Eric Caldwell, Merchandising and Marketing Manager - Building Supply, Atlantic
Daniel Verville, Merchandising and Marketing Manager - Building Supply, Quebec
Doug Shantz, Merchandising and Marketing Manager - Building Supply, Ontario
Mel Bandravala, Merchandising and Marketing Manager - Building Supply, Western
Terry Little, Director, Merchandise Services - Building Supply
Jack Baillie, Director, Marketing - Building Supply Reporting to Bruce Smith, Jack Baillie was most recently director, marketing at Beaver Lumber, having worked there for 13 years. Terry Little brings 12 years of experience at Beaver Lumber, most recently as Manager, Pricing and Product Information. He'll also report to Smith. Each of these people has continuing duties in the integration of Beaver, and will divide their time between St. Jacobs and Markham, ON.
OVERHEARD...
"This arrangement goes well beyond e-tailing and ensures that our e-business initiatives will be executed based on an integrated approach and impact our company from front to back." - PR gobbledy-gook, attributed to George Heller, president and CEO, Hudson's Bay Corp., from a release announcing HBC's partnership with IBM, Oracle and Microsoft to develop HBC' e-commerce business.
… "Transforming your business into an e-business is about how to use the Internet to run your company with dramatically increased efficiencies." - Bill Bergen, president of Oracle Corp. Canada Inc., explains that being on the Internet is all about, well, being on the Internet. Or something. From the same press release as above.
MARKET INDICATORS
The value of building permits issued by municipalities in May declined 0.8% from April, to $2.9 billion. The overall decline was due to commercial permits, which fell 9.3% to $1.2 billion. Residential permits were up, however, to 1.6 billion, a 6.7% increase. Multiple-family dwelling permits were up 20% to $441 million, while single-family permits rose 2.5% to $1.2 billion.
HARDLINES WHO'S WHO:
Directory of Canadian Hardware & Home Improvement Retailers, Wholesalers, Buying Groups and Mass Merchants. This has become an industry standard. With more than 100 listings of the key companies in the country, including executives, buyers, sales and more. No salesperson should be without this little beauty in their briefcase. Third edition available in July.
HARDLINES INDUSTRY REPORT:
HOME IMPROVEMENT RETAILING IN CANADA: Back by popular demand! This incredible report is a soup-to-nuts on how the home improvement business works in Canada. It tells who the players are, what the trends are, how the industry is responding to the big boxes, etc. It also updates home improvement and renovation spending and figures out just how big this business is! FIFTH ANNUAL HARDLINES MARKETING CONFERENCE:
September 14, 2000. An incredible one-day symposium featuring some of North America's leaders in retail, including Home Depot, McMillan/Doolittle, Gardener's Supply, J&H Builder's Warehouse and much more! Expect about 200 retail and vendor executives to attend!THE WOMEN'S CONSUMER PRODUCTS NETWORK
August 15: Breakfast meeting during the CGTA Show. Featuring the proven communication methods of Robin Kennedy, vice-president of Communicare. September 21: "Fully Alive From 9 to 5!" Featuring author Louise LeBrun. Details coming soon. Meanwhile, check out her website at: www.partnersinrenewal.com For more information about these events, please phone: (905) 212-3826; fax: (905) 274-7646; email: wcpn99@yahoo.com , or check out their website: www.wcpncanada.org Hardlines Classifieds Got new products? Looking for new staff or lines? Hardlines Classifieds are read each week by North America's key decision makers in home improvement retailing and manufacturing. If you want to build your sales team or find new agents or new lines, this is the place! Only $16 per line. Call Beverly at 416-489-3396, ext. 2, for more details. * * * * * * *
HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: bev@hardlinesfax.com © 2000 by Michael McLarney. Reproduction in whole or in part is strictly forbidden. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST=$212.75) per year (GST #13987 0398 RT). Please make cheque payable to McLarneyCom.
HARDLINES™
Five years serving Canada's home improvement industry
July 10, 2000 - Volume vi, #27
Michael McLarney , Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com Check out our incredible Classifieds section! COTTAGE FOR RENT: LAKE HURON Available August 19-26 and August 26-September 2, this 3-bedroom lakefront cottage sleeps 5 and has shallow-entry sandy beach ideal for kids, TV, fireplace, canoe. Pets ok. On Howdenvale Beach, near Owen Sound and north of Sauble Beach at the foot of the Bruce Peninsula. $775 for each week. For more information, contact Hardlines at: 416-480-3396, or e-mail: buzz@hardlinesfax.com* * * * * *
PROVINCE GIVES $$ TO RETAIL PROPERTY DEVELOPER Independent dealers in New Brunswick are up in arms following a land development deal between a power centre that includes a Home Depot and two levels of government. The new store, which will go up in Moncton some time in early 2001, is located off Wheeler Blvd.
The province has agreed to pay the property developer of the power centre $500,000 for off ramps from the highway that will feed right into Home Depot's parking lot. The city of Moncton will contribute another $125,000 to build arterial roads.
The infusion of government money has many baffled - and concerned it may set a precedent. "It's usually the other way around," admits one retail planning consultant, adding that the arrangement is "a little unusual," but points out that the amount of government funding is likely to account for only a fraction of the total cost of road construction, which can reach into the millions of dollars.
The new 20-acre power centre, designated as Trinity Rd. II, will reportedly add Wal-Mart as another tenant. The site is diagonally across from Trinity Rd. I, an existing power centre that includes Costco and a Kent big box. This centre has no direct access from the highway.
Representatives of the Atlantic Building Supply Dealers' Association are meeting today with the NB minister of export and investments, Peter Mescheaux to voice their protest. "Two of the largest retail organizations in the world and we're paying for the off ramps," says Don Sherwood, executive director of the ABSDA. "A tremendous amount of input has come from our members throughout Atlantic Canada as a result of this."
TIM-BR MART BASEBALL TIE-IN GETS NATIONAL PROMOTION A summer promotion between Honda Canada, the Toronto Blue-Jays and TIM-BR Mart branded stores throughout Ontario and the Atlantic provinces will see four finalists from Ontario and four finalists from Atlantic Canada each win a trip for two to a TIM-BR Mart Tuesday Blue Jays game at the SkyDome. Two 2000 Honda CR-V EXs will be given away, one on August 15 and one on September 19. The promotion is being advertised on television and radio, through sale event flyers, exterior pole wrappers for store parking lots, interior POP and the TIM-BR Mart website.
COMPANIES IN THE NEWS
Canadian Tire launches its "Radio Days" summer promotion today. For the next two weeks, two products each day will be featured at "Flash Back" prices - costing what the would have in the '60s and '70s. For the duration of the summer, Retro Tuesdays and Thursdays will continue the pricing promotion. In addition, CTC is holding a consumer contest, giving away retro-styled products like a Chrysler PT Cruiser, bicycles and scooters.
Hudson's Bay Co. has formed an alliance with IBM Canada, Microsoft Canada and Oracle Corp. Canada to implement a new e-commerce business strategy for HBC. According to the release, they will "enable HBC's enterprise-wide integration of the next-generation technology solutions and the renovation of HBC into an e-enabled retail leader in North America." Got that?
Home Depot Canada opened the doors to its first store in Belleville on June 6, the company's 57th in Canada. More than 170 locals have been hired to fill full- and part-time staff positions.
Lowe's Home Improvement Warehouse has moved up to the #2 ranking in appliance sales nationwide and the company is the #1 seller of appliances among home improvement centres. The ranking, by the Stevenson Co., is based on total shipments of appliances to all U.S. appliance retailers in 2000. Lowe's stocks more than 250 major appliances, including Whirlpool, KitchenAid, Frigidaire, Maytag, Jenn-Air and General Electric. Lowe's Appliance Advantage includes an additional 2,500 appliances available through special order.
To celebrate the opening of its 1000th store, Home Depot turns Wall Street orange today. A huge orange apron is being draped over the exterior of the nine-story New York Stock Exchange building. Inside, Chairman Bernie Marcus and President and CEO Arthur Blank, joined by staff from all 11 North American divisions, will ring the bell to open the exchange. Pauline Atwaters from the Langley, BC, store is representing the Canadian division. MAAX Inc. closed its first quarter ended May 31 with a 20.8% increase in sales, which reached $133.4 million, up from $110.4 million. Net income rose 8.8% to $7.4 million, compared with $6.8 million for the first quarter of the previous year. This followed a 38% increase in sales for its fiscal year ended February 29, to $431.9 million.
Premdor Inc. has signed an agreement to acquire certain assets of Wing Industries, Inc., a subsidiary of Atrium Cos. Wing specializes in the fabrication and distribution of value-added interior door products to the U.S. retail home improvement industry. The deal is expected to close within 45 days, subject to approvals.
CANADIAN STOCK WATCH "Tis better to be alone than in bad company." - George Washington (1732-1799)
PEOPLE ON THE MOVE Mark Coffey has joined Home Depot Canada as the hard goods merchant for seasonal. He comes over from Growmark, where he spent nine years. Prior to that he was at Beaver Lumber. (416-609-0852)
Dave Browne, vice-president of sales at Danbel Inc., has left the company.
Jim Morgan has joined Duxton Windows as sales manager. A 25-year veteran of the window and door industry, he will be responsible for building Duxton's distributor network for its pultruded fiberglass windows and doors, especially in western Canada. (204-339-6456)
* * * * * *
NEW REPORTING AT HOME HARDWARE REFLECTS BEAVER CONSOLIDATION Eric Konecsni has been named vice-president, operations, at Home Hardware Stores Ltd. He heads up a new operations group comprising corporate stores, real estate, dealer support, dealer development, distribution and warehousing, the Paint and Home Products division, and Home Furniture. Beaver Lumber, which is also part of the group, will continue to be Konecsni's responsibility
until the conversion is complete … Jim Baird, vice-president - eastern operations, and Lance Shipley, vice-president - western operations, keep their management roles with Beaver Lumber and their positions as directors on the boards of individual Beaver joint-venture companies until the conversion to Home Hardware is complete.
Senior management team (reporting to Paul Straus, vice-president and CEO):
Terry Davis, Vice-president, Information Technology
Ray Gabel, Vice-president, Merchandising and Marketing - Hardlines
Stew Gingrich, Director, Human Resources
Eric Konecnsi, Vice-president, Operations
Dianne McTavish, Corporate Secretary
Bill Simpson, Vice-president, Finance and Administration
Bruce White, Vice-president, Merchandising and Marketing - Building Supply
Information technology team (reporting to Terry Davis, vice-president, information technology):
Brent Horst, Corporate Systems Development
Bernie Henry, Corporate Computing
John Rogez, Retail Systems Development
Glen Seibel, Retail Technology
Rich Clemmer, Enterprise Architecture
Merchandising and Marketing - Hardlines group (reporting to Ray Gabel, vice-president, merchandising and marketing - hardlines):
Dick Plata, Sales & Promotions Manager - Hardlines
Neil Schmidt, Merchandise Services Manager - Hardlines
Bruce Shuh, Director, Marketing - Hardlines
Joel Marks, Director, Merchandising - Hardlines. Marks was most recently director, merchandising at Beaver Lumber, where he has been part of the team since 1981.
Merchandising and marketing - building supply group (reporting to Bruce White, vice-president, merchandising and marketing - building supply):
Eric Caldwell, Merchandising and Marketing Manager - Building Supply, Atlantic
Daniel Verville, Merchandising and Marketing Manager - Building Supply, Quebec
Doug Shantz, Merchandising and Marketing Manager - Building Supply, Ontario
Mel Bandravala, Merchandising and Marketing Manager - Building Supply, Western
Terry Little, Director, Merchandise Services - Building Supply
Jack Baillie, Director, Marketing - Building Supply Reporting to Bruce Smith, Jack Baillie was most recently director, marketing at Beaver Lumber, having worked there for 13 years. Terry Little brings 12 years of experience at Beaver Lumber, most recently as Manager, Pricing and Product Information. He'll also report to Smith. Each of these people has continuing duties in the integration of Beaver, and will divide their time between St. Jacobs and Markham, ON.
OVERHEARD...
"This arrangement goes well beyond e-tailing and ensures that our e-business initiatives will be executed based on an integrated approach and impact our company from front to back." - PR gobbledy-gook, attributed to George Heller, president and CEO, Hudson's Bay Corp., from a release announcing HBC's partnership with IBM, Oracle and Microsoft to develop HBC' e-commerce business.
… "Transforming your business into an e-business is about how to use the Internet to run your company with dramatically increased efficiencies." - Bill Bergen, president of Oracle Corp. Canada Inc., explains that being on the Internet is all about, well, being on the Internet. Or something. From the same press release as above.
MARKET INDICATORS
The value of building permits issued by municipalities in May declined 0.8% from April, to $2.9 billion. The overall decline was due to commercial permits, which fell 9.3% to $1.2 billion. Residential permits were up, however, to 1.6 billion, a 6.7% increase. Multiple-family dwelling permits were up 20% to $441 million, while single-family permits rose 2.5% to $1.2 billion.
HARDLINES WHO'S WHO:
Directory of Canadian Hardware & Home Improvement Retailers, Wholesalers, Buying Groups and Mass Merchants. This has become an industry standard. With more than 100 listings of the key companies in the country, including executives, buyers, sales and more. No salesperson should be without this little beauty in their briefcase. Third edition available in July.
HARDLINES INDUSTRY REPORT:
HOME IMPROVEMENT RETAILING IN CANADA: Back by popular demand! This incredible report is a soup-to-nuts on how the home improvement business works in Canada. It tells who the players are, what the trends are, how the industry is responding to the big boxes, etc. It also updates home improvement and renovation spending and figures out just how big this business is! FIFTH ANNUAL HARDLINES MARKETING CONFERENCE:
September 14, 2000. An incredible one-day symposium featuring some of North America's leaders in retail, including Home Depot, McMillan/Doolittle, Gardener's Supply, J&H Builder's Warehouse and much more! Expect about 200 retail and vendor executives to attend!THE WOMEN'S CONSUMER PRODUCTS NETWORK
August 15: Breakfast meeting during the CGTA Show. Featuring the proven communication methods of Robin Kennedy, vice-president of Communicare. September 21: "Fully Alive From 9 to 5!" Featuring author Louise LeBrun. Details coming soon. Meanwhile, check out her website at: www.partnersinrenewal.com For more information about these events, please phone: (905) 212-3826; fax: (905) 274-7646; email: wcpn99@yahoo.com , or check out their website: www.wcpncanada.org Hardlines Classifieds Got new products? Looking for new staff or lines? Hardlines Classifieds are read each week by North America's key decision makers in home improvement retailing and manufacturing. If you want to build your sales team or find new agents or new lines, this is the place! Only $16 per line. Call Beverly at 416-489-3396, ext. 2, for more details. * * * * * * *
HARDLINES the electronic newsletter. Michael McLarney, Editor & Publisher. Published weekly (except monthly in December and August) by McLARNEYCOM 283 Belsize Dr., Toronto, ON Canada M4S 1M5. 416-489-3396; fax: 416-489-6154. E-mail: bev@hardlinesfax.com © 2000 by Michael McLarney. Reproduction in whole or in part is strictly forbidden. Subscription: $185+$12.95 GST = $197.95 (or $27.75 HST=$212.75) per year (GST #13987 0398 RT). Please make cheque payable to McLarneyCom.