HARDLINES
HARDLINES
Canada’s electronic information service for
the home improvement industry
July 23, 2001
Volume vii, #31
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlines.ca
* * * * * *
IN THIS ISSUE:
* Lansing’s John Kitchen: the final days
* Rona loses legal battle to low-price independent
* TSC plans Ontario expansion
* * * * * *
The Retail Strategies Symposium is a half-day education
seminar featuring industry overviews from Hardlines on the Canadian and U.S.
markets. Learn how the key retail players are positioned for growth, how Canadian
distribution channels work, and how the big box retailers are capturing share
of the Canadian market.
September 12, 2001, at the Four Points Sheraton Hotel,
Toronto Airport. Call for details!
* * * * * *
A NEW STUDY: WOMEN AND DIY
GET THE FACTS ABOUT WOMEN STORE AND RENOVATION
PREFERENCES.
Where they prefer to shop. What projects they make
the decisions about.
THE HARDLINES QUARTERLY REPORT
The latest issue includes:
- A new AC Nielsen survey of women’s shopping
and DIY habits
- Benchmarking standards of hardware and building
centre dealers
- Regional breakout of the size of the Canadian retail
home improvement industry
- Analysis of the latest housing and building statistics
HQR is a quarterly executive summary of the issues
and news driving hardware and home improvement retailing. Each issue is jam-packed
with thought provoking articles, in-depth analysis and exclusive survey results
of industry performance and benchmarks.
SUBSCRIBE TODAY! Just $349 per year.
Contact: Nancy Wright, Circulation Manager.
Phone: 416-489-3396; mailto:nancy@hardlines.ca
* * * * * *
INDUSTRY NEWS. EVERY DAY — Our website has daily
updates on retail and industry news that matter to you. Keep informed. Visit
hardlines.ca.
Every day.
* * * * * *
JOHN KITCHEN AND LANSING BUILDALL:
AFTER THE REVY SALE
On Friday, July 13, when West Fraser Timber was signing
over Revy to Rona Inc., the person who profited most from the deal was nowhere
to be seen. And even though he had been on the phone until 10 p.m. the night
before helping West Fraser and its lawyers work out final details, he didn’t
even know when that deal was to close.
Instead, John Kitchen was sitting in his office in
Toronto, pondering his second-last day on the job. This was the company his
dad started four years before John himself was born; the company where he grew
up. The same company he once left — and the one he came back to eventually
take over.
And now it was the company whose sale half an hour
earlier had made him a millionaire many times over.
Lansing Buildall has been on the scene since 1951,
founded by John’s father, Bill Kitchen. Over that time competitors have
come and gone. Somehow, through it all, John’s dad managed to fend off
pretenders to become one of the largest home improvement retailers in the Toronto
area.
Then the big box arrived, and business was never
the same again. That change was for John to face alone: after his dad died,
John Kitchen was at the helm. Now, a day away from leaving it all behind, he
reflected on the business.
"We were just fortunate because we happened
to be in the biggest market in the country. We became a fairly large fish in
this big pond," he says matter-of-factly of the Toronto area his 11-store
chain has prospered in.
He attributes a large part of that success to staying
inside the city. "We resisted growing outside Toronto," he continues.
"We understand the urban market, where we can focus on a segment or niche
enough to sustain us. But in a rural market, where the local dealer is part
of the community, you have to be all things to all people." That, he adds,
is likely part of Home Depot’s success in some of those secondary markets
— "because they have lots to offer."
Conversely, Lansing’s position in the greater
Toronto area was never threatened by a strong contender. "Beaver was always
in secondary and rural markets, whereas Beaver never made a significant dent
in Toronto. When Beaver left, Lansing picked up very little extra business,"
says Kitchen.
"The biggest success I’ve had is being
able to ‘ID’ trends and ride them. Trends such as millwork, French
doors, and now ceramic tiles and hardwood flooring. If you can be at the front
of the wave, you have a real advantage before anyone catches up."
Kitchen says the industry has matured — and
one indication of that is its greater willingness to share information. He again
credits Home Depot. On one hand, it was part of a wave of U.S. retailers who
came up and brought with them an openness and frankness alien to an industry
that had traditionally been driven by family-run companies. But Home Depot also
embodied a common enemy, and independents like Kitchen felt compelled to form
a united front against it. So they started comparing notes more carefully than
ever before.
The 1998 merger with Revy was a tangible embodiment
of that common front, one that Kitchen remembers with mixed feelings. "It
was tough giving up control of the family business," he says, "but
it was a ‘no-brain’ decision because a business has a life cycle,
like people. You must recognize the changes in that life cycle. The downfall
of many family businesses is to hold on to them too long and hide behind the
notion of a legacy."
The sang-froid to treat the company with dispassionate
professionalism also came from John’s dad: "My father taught me to
maintain a certain detachment from the business — it has to be run like
a business — don’t get fooled into thinking that you’re invincible.
My father said, ‘the business can never become bigger than the family’."
But it sure became pretty big, anyway. When it was sold to Revy Home Centres
three years ago, the Kitchen family netted $25 million — and 15% of Revy.
Now that 15% adds up to $33 million. Friday the 13th
was definitely John Kitchen’s lucky day. His plans for the immediate future
likely include more family time than anything, a decision helped along by a
two-year non-compete clause. "It will take me two years to learn how to
play golf," he jokes.
______________________________________________
RONA LOSES LEGAL BATTLE AGAINST INDEPENDENT
Rona big box operators in Québec have lost
their battle against Matériaux à bas prix (a.k.a. Bargain Building
Supplies), a discount LBM chain with 11 stores. The dealers, representing Rona
L’entrepôt stores, along with Rona Inc., tried to get an injunction
against Matériaux’s advertising tactics, but was rebuffed three
times in Québec provincial court. It continually runs ads comparing its
prices to Rona’s — and showing Matériaux’s to be cheaper.
The latest ruling leaves Christian Richer, the head
of Matériaux de bas prix, very pleased. Not only does it allow him to
continue doing comparative pricing in his ads, but it requires Rona to pay all
Matériaux’s costs for the case, which has dragged on for three years.
"I want my customers to know that the independent
dealer can sell cheaper than the big box," says Richer.
The 15-year old company has enjoyed 15%-20% sales
increases each year selling discount and used building materials. Today, it
has nine stores in Québec and two in Ontario, both near Ottawa. The company
has almost $20 million in sales, and Richer plans to open one or two more stores
each year, including more in Ontario. "[The Ontario] market is very good
and especially since the competition is so great in Québec, we’re
getting very good sales from Ontario."
______________________________________________
TSC LOOKS FOR NEW MARKETS IN SOUTHERN ONTARIO
Since taking over TSC Stores Ltd. in September 2000,
Roy Carter has been committed to growing the business — at the rate of
a couple of stores per year over the next five years. He would like to see the
London, ON-based chain of farm and hardware stores expand along the corridor
from the Ontario-Québec border in the east down to Windsor/Sarnia in
the southwest.
TSC last opened a store in Belleville two years ago.
But Carter wants to pick up the pace. The next opening will be in Cambridge,
ON in mid-October, in a former Zellers building. Two more openings are slated
for next spring, one in Peterborough and the other in Bowmanville, both east
of Toronto. "Our plan is to fill in a few more stores in Southwestern Ontario,
and then continue to move east," Carter says.
There’s room for the TSC format, which is a
cross between Canadian Tire and a farm co-op, he insists. "We’ve got
requests from people from all over Southern Ontario for our type of store. We
feel it’s a little off from your traditional hardware or farm store."
______________________________________________
COMPANIES IN THE NEWS
Taiga Forest Products Ltd. recorded sales for the
first quarter ended June 30, 2001 of $235.5 million compared with $245.5 million
for the same period last year. Earnings for the quarter were $2.7 million, up
significantly from the same period in 2000.
Domtar Inc. announced second quarter results with
net sales of $944 million, versus $832 million for the same period last year.
Operating profits reached $88 million, compared with an operating profit of
$120 million for the second quarter of 2000.
International Forest Products Ltd. cited a deteriorating
Japanese market as it reported a loss of $658,000 for the second quarter. Sales
revenue declined to $184 million, compared with $206 million in the same quarter
last year. The figures include income from Primex Forest Products Ltd., which
was acquired on May 1.
The Government of Canada has called upon the U.S.
Department of Commerce to terminate the anti-dumping case against Canadian softwood
lumber producers, citing fundamental inaccuracies in the U.S. lumber industry's
petition. Eight organizations, such as the Free Trade Lumber Council and various
provincial lumber manufacturers associations, have joined in support of this
action.
For its second quarter, Sears Canada had total revenues
of $1.585 billion, compared with $1.462 billion for the corresponding quarter
last year, an increase of 8.4%. Merchandise sales increased 10.8% in the quarter.
Same-store sales increased 4.4%.
Dekor, the upstart home improvement department store
founded by former Home Depot execs, will expand its appliance lines this Fall.
The chain will add six additional brands and remodel part of its stores as part
of its new strategy to increase profits.
Maytag Co.'s sales in the second quarter of this
year were US$1.069 billion, down 3% from US$1.104 billion in the second quarter
of 2000. Sluggish industry-wide sales prevailed in all the business sectors
where Maytag competes. Despite lower industry sales of major appliances, Maytag
had strong sales of washers, dryers and dishwashers, which led to an overall
increase in sales of major appliances from the prior year.
Black & Decker posted second-quarter revenues
of US$1.07 billion, a 5% decrease from US$1.13 billion last year, citing weak
consumer demand in the United States and Europe. The company said it expects
third-quarter sales will be flat to slightly up.
Stanley Works announced net sales fell 4% to US$676.5
million. Lower unit sales volume and prices as well as the weakness of foreign
currencies against the dollar weighed on sales.
A suspect was arrested in conjunction with two mail
bombings at two Atlanta facilities of Home Depot’s air conditioning and
plumbing supply subsidiary, Apex Supply Co. Thousands of workers at the two
Apex sites were evacuated when package bombs exploded; two people had minor
injuries in one of the bombings. Also last week, Home Depot's corporate headquarters
in Atlanta was evacuated when a vibrating package was discovered. The parcel
turned out to be a box of vibrating pagers. Last weekend, three people were
killed in a shooting at a Home Depot store in Morrow, GA.
______________________________________________
CANADIAN STOCK WATCH
| COMPANY |
52-WK HIGH |
52-WK LOW |
CLOSE (FRI) |
| Canadian Tire |
25.20 |
15.05 |
25.99 |
| Canfor |
16.95 |
7.65 |
9.90 |
| Emco |
7.50 |
2.60 |
6.25 |
| Goodfellow |
11.00 |
8.00 |
9.25 |
| Home Depot |
49.74 |
47.61 |
47.24 |
| Hudson's Bay |
17.65 |
12.40 |
16.32 |
| Lowe's |
64.90 |
34.25 |
72.55 |
| Sears Canada |
37.25 |
18.55 |
21.80 |
| Taiga Forest |
10.00 |
6.80 |
9.10 |
| West Fraser |
36.50 |
21.00 |
34.50 |
______________________________________________
"Superman never made any money for saving the
world from Solomon Grundy,
Sometimes I despair the world will never see another
man like him."
Brad Roberts — (the Canadian band Crash Test
Dummies, "Superman’s Song")
______________________________________________
MARKET INDICATORS
Principal residences accounted for 38% of family
assets compared with 29% for all financial assets combined, according to a Statistics
Canada survey released recently. As of 1999, principal residences were valued
at over $1.1 trillion, the largest asset class held by families. (For a full
report on "Homes, Canadians’ biggest asset, biggest debt," read
2Q issue of Hardlines Quarterly Report.)
The rate of increase for the prices of goods and
services included in the Consumer Price Index basket slowed to 3.3% in June
compared with June 2000. This 12-month percentage change is down from 3.9% in
May and 3.6% in April. The CPI rose 0.1% from May to June, the fifth consecutive
month-to-month increase. Electricity prices rose 2.6%, mainly owing to higher
prices in Ontario.
Wholesale sales cracked the $32-billion mark for
the first time last July, culminating a period of rising sales that started
in mid-1998. During the latter half of 2000, wholesale sales weakened and levelled
out. Although there is still some volatility in the industry, wholesale sales
have been rising slowly in 2001. Nine of the 11 wholesale sectors reported increases
in May. Strong wholesale sales were reported in farm machinery, equipment and
supplies (+7.5%); lumber and building materials (+5.7%); and motor vehicles,
parts and accessories (+3.6%).
______________________________________________
PEOPLE ON THE MOVE
David Lépine has joined the management team
of Cameron Ashley Building Products as vice-president — Québec region.
He joins the company with 20 years of management experience in the construction
industry, including three years with Weyerhaeuser Co. and 10 years with St.
Lawrence Cement. (450-641-4760)
The Home Depot in Atlanta has named Rebecca W. Bass
as its first vice-president for e-business. Bass, former CEO of Galileo Development
Systems, an Atlanta based Web-software company, was also an executive with LEXIS-NEXIS
and Motorola. (770-433-8211)
______________________________________________
OVERHEARD
…
… "I feel strongly about the fact that
this is a good company and I’d like to make a contribution."
— Jos Wintermans, the new president and CEO
of Sodisco-Howden Group, who took over last week from Tony Molluso.
* * * * * *
BIG NAMES, NETWORKING, AT NEXT
HARDLINES MARKETING CONFERENCE:
Join Canadian Tire, RONA, Ace Hardware, American
Tool, Turkstra Lumber and more. Where? The Sixth Annual Hardlines Marketing
Conference — September 13, 2001 at the Four Points Sheraton! I am confident
this conference will turn out to be the single best day of education, insights
and networking you’ll have all year. Period. Only $389.00 per person —
includes continental breakfast, lunch, cocktails, prizes and more! Contact bev@hardlines.ca
for more info, or call me direct: 416-489-3396. — Michael
(Some sponsorships still available for the event
— call me for details.)
(go to https://hardlines.ca/html/conferences.html)
To get our special hotel rate for the Hardlines Marketing
Conference at the Four Points Sheraton, call 1-800-737-3211.
______________________________________________
* * * * HARDLINES MARKETPLACE* * * *
Check out Hardlines Classifieds on the web: https://hardlines.ca/html/classifieds_new.asp
______________________________________________
NORAL MARKETING:
Representing leading manufacturers since 1986. We
ensure high profile retail presence for a wide range of product lines. Why not
make yours one of them?
* * * * * *
AWARD WINNING COMPANY: Canadian-In store Merchandising
Canadian-In store Merchandising is pleased to announce
it has received "Outstanding Merchandising Award for Toro Lawn and Garden Products"
in
North America from The Toro Company. Canadian In-store
is proud of the work it has done on Toro’s behalf to develop relationships
and merchandise Toro products to help drive sales in the Canadian market. These
efforts helped us to increase Toro’s sales and market share with its own
customers.
* * * * * *
SALES PROFESSIONALS:
CanWel, one of Canada’s leading distributors
of building materials to the retail and industrial markets, is focusing on growth
strategies. We are looking for motivated individuals to help us grow. To meet
these challenges, you will need strong communication, interpersonal and negotiation
skills coupled with a proven track-record. A familiarity with the building materials
industry would be beneficial.
SALES MANAGERS:
Reporting to the general manager and drawing on your
outstanding motivational skills, you will assume a hands-on leadership role
and oversee a team of inside sales representatives while ensuring profitable
growth in the Ontario region.
Your motivational and mentoring abilities have been
proven excellent, and you have at least 5 years’ sales/supervisory experience.
A sales-driven team builder will thrive in this role. You will be based in Brampton,
Ontario.
We are also looking for Account Managers and Inside
Sales Representatives. Please refer to our website for details.
In return for your contribution, a competitive salary/benefits
package is offered. Please forward your resume, by August 3, 2001 to: Human
Resources, CanWel Distribution Ltd., 15 West Drive, Brampton, Ontario L6T 3T5;
fax 905-457-3668. Website: http://www.canwel.com
______________________________________________
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Publish your ad where it matters. Get industry exposure
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THEN YOU WILL NEED HARDLINES INDUSTRY REPORT:
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much, much more! 120-plus pages filled with charts, graphs and photos. Regular
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phone: 416-489-3396.
(go to https://hardlines.ca/html/industry_report.html)
______________________________________________
Hardlines is published weekly (except monthly in
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by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario,
Canada M4S 2M7
© 2001 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Eugenia Canas, Assistant Editor: buzz@hardlines.ca
Beverly Allen, Marketing Manager: bev@hardlines.ca
Nancy Wright, Circulation Manager: nancy@hardlines.ca
______________________________________________
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HARDLINES
Canada’s electronic information service for
the home improvement industry
July 23, 2001
Volume vii, #31
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlines.ca
* * * * * *
IN THIS ISSUE:
* Lansing’s John Kitchen: the final days
* Rona loses legal battle to low-price independent
* TSC plans Ontario expansion
* * * * * *
The Retail Strategies Symposium is a half-day education
seminar featuring industry overviews from Hardlines on the Canadian and U.S.
markets. Learn how the key retail players are positioned for growth, how Canadian
distribution channels work, and how the big box retailers are capturing share
of the Canadian market.
September 12, 2001, at the Four Points Sheraton Hotel,
Toronto Airport. Call for details!
* * * * * *
A NEW STUDY: WOMEN AND DIY
GET THE FACTS ABOUT WOMEN STORE AND RENOVATION
PREFERENCES.
Where they prefer to shop. What projects they make
the decisions about.
THE HARDLINES QUARTERLY REPORT
The latest issue includes:
- A new AC Nielsen survey of women’s shopping
and DIY habits
- Benchmarking standards of hardware and building
centre dealers
- Regional breakout of the size of the Canadian retail
home improvement industry
- Analysis of the latest housing and building statistics
HQR is a quarterly executive summary of the issues
and news driving hardware and home improvement retailing. Each issue is jam-packed
with thought provoking articles, in-depth analysis and exclusive survey results
of industry performance and benchmarks.
SUBSCRIBE TODAY! Just $349 per year.
Contact: Nancy Wright, Circulation Manager.
Phone: 416-489-3396; mailto:nancy@hardlines.ca
* * * * * *
INDUSTRY NEWS. EVERY DAY — Our website has daily
updates on retail and industry news that matter to you. Keep informed. Visit
hardlines.ca.
Every day.
* * * * * *
JOHN KITCHEN AND LANSING BUILDALL:
AFTER THE REVY SALE
On Friday, July 13, when West Fraser Timber was signing
over Revy to Rona Inc., the person who profited most from the deal was nowhere
to be seen. And even though he had been on the phone until 10 p.m. the night
before helping West Fraser and its lawyers work out final details, he didn’t
even know when that deal was to close.
Instead, John Kitchen was sitting in his office in
Toronto, pondering his second-last day on the job. This was the company his
dad started four years before John himself was born; the company where he grew
up. The same company he once left — and the one he came back to eventually
take over.
And now it was the company whose sale half an hour
earlier had made him a millionaire many times over.
Lansing Buildall has been on the scene since 1951,
founded by John’s father, Bill Kitchen. Over that time competitors have
come and gone. Somehow, through it all, John’s dad managed to fend off
pretenders to become one of the largest home improvement retailers in the Toronto
area.
Then the big box arrived, and business was never
the same again. That change was for John to face alone: after his dad died,
John Kitchen was at the helm. Now, a day away from leaving it all behind, he
reflected on the business.
"We were just fortunate because we happened
to be in the biggest market in the country. We became a fairly large fish in
this big pond," he says matter-of-factly of the Toronto area his 11-store
chain has prospered in.
He attributes a large part of that success to staying
inside the city. "We resisted growing outside Toronto," he continues.
"We understand the urban market, where we can focus on a segment or niche
enough to sustain us. But in a rural market, where the local dealer is part
of the community, you have to be all things to all people." That, he adds,
is likely part of Home Depot’s success in some of those secondary markets
— "because they have lots to offer."
Conversely, Lansing’s position in the greater
Toronto area was never threatened by a strong contender. "Beaver was always
in secondary and rural markets, whereas Beaver never made a significant dent
in Toronto. When Beaver left, Lansing picked up very little extra business,"
says Kitchen.
"The biggest success I’ve had is being
able to ‘ID’ trends and ride them. Trends such as millwork, French
doors, and now ceramic tiles and hardwood flooring. If you can be at the front
of the wave, you have a real advantage before anyone catches up."
Kitchen says the industry has matured — and
one indication of that is its greater willingness to share information. He again
credits Home Depot. On one hand, it was part of a wave of U.S. retailers who
came up and brought with them an openness and frankness alien to an industry
that had traditionally been driven by family-run companies. But Home Depot also
embodied a common enemy, and independents like Kitchen felt compelled to form
a united front against it. So they started comparing notes more carefully than
ever before.
The 1998 merger with Revy was a tangible embodiment
of that common front, one that Kitchen remembers with mixed feelings. "It
was tough giving up control of the family business," he says, "but
it was a ‘no-brain’ decision because a business has a life cycle,
like people. You must recognize the changes in that life cycle. The downfall
of many family businesses is to hold on to them too long and hide behind the
notion of a legacy."
The sang-froid to treat the company with dispassionate
professionalism also came from John’s dad: "My father taught me to
maintain a certain detachment from the business — it has to be run like
a business — don’t get fooled into thinking that you’re invincible.
My father said, ‘the business can never become bigger than the family’."
But it sure became pretty big, anyway. When it was sold to Revy Home Centres
three years ago, the Kitchen family netted $25 million — and 15% of Revy.
Now that 15% adds up to $33 million. Friday the 13th
was definitely John Kitchen’s lucky day. His plans for the immediate future
likely include more family time than anything, a decision helped along by a
two-year non-compete clause. "It will take me two years to learn how to
play golf," he jokes.
______________________________________________
RONA LOSES LEGAL BATTLE AGAINST INDEPENDENT
Rona big box operators in Québec have lost
their battle against Matériaux à bas prix (a.k.a. Bargain Building
Supplies), a discount LBM chain with 11 stores. The dealers, representing Rona
L’entrepôt stores, along with Rona Inc., tried to get an injunction
against Matériaux’s advertising tactics, but was rebuffed three
times in Québec provincial court. It continually runs ads comparing its
prices to Rona’s — and showing Matériaux’s to be cheaper.
The latest ruling leaves Christian Richer, the head
of Matériaux de bas prix, very pleased. Not only does it allow him to
continue doing comparative pricing in his ads, but it requires Rona to pay all
Matériaux’s costs for the case, which has dragged on for three years.
"I want my customers to know that the independent
dealer can sell cheaper than the big box," says Richer.
The 15-year old company has enjoyed 15%-20% sales
increases each year selling discount and used building materials. Today, it
has nine stores in Québec and two in Ontario, both near Ottawa. The company
has almost $20 million in sales, and Richer plans to open one or two more stores
each year, including more in Ontario. "[The Ontario] market is very good
and especially since the competition is so great in Québec, we’re
getting very good sales from Ontario."
______________________________________________
TSC LOOKS FOR NEW MARKETS IN SOUTHERN ONTARIO
Since taking over TSC Stores Ltd. in September 2000,
Roy Carter has been committed to growing the business — at the rate of
a couple of stores per year over the next five years. He would like to see the
London, ON-based chain of farm and hardware stores expand along the corridor
from the Ontario-Québec border in the east down to Windsor/Sarnia in
the southwest.
TSC last opened a store in Belleville two years ago.
But Carter wants to pick up the pace. The next opening will be in Cambridge,
ON in mid-October, in a former Zellers building. Two more openings are slated
for next spring, one in Peterborough and the other in Bowmanville, both east
of Toronto. "Our plan is to fill in a few more stores in Southwestern Ontario,
and then continue to move east," Carter says.
There’s room for the TSC format, which is a
cross between Canadian Tire and a farm co-op, he insists. "We’ve got
requests from people from all over Southern Ontario for our type of store. We
feel it’s a little off from your traditional hardware or farm store."
______________________________________________
COMPANIES IN THE NEWS
Taiga Forest Products Ltd. recorded sales for the
first quarter ended June 30, 2001 of $235.5 million compared with $245.5 million
for the same period last year. Earnings for the quarter were $2.7 million, up
significantly from the same period in 2000.
Domtar Inc. announced second quarter results with
net sales of $944 million, versus $832 million for the same period last year.
Operating profits reached $88 million, compared with an operating profit of
$120 million for the second quarter of 2000.
International Forest Products Ltd. cited a deteriorating
Japanese market as it reported a loss of $658,000 for the second quarter. Sales
revenue declined to $184 million, compared with $206 million in the same quarter
last year. The figures include income from Primex Forest Products Ltd., which
was acquired on May 1.
The Government of Canada has called upon the U.S.
Department of Commerce to terminate the anti-dumping case against Canadian softwood
lumber producers, citing fundamental inaccuracies in the U.S. lumber industry's
petition. Eight organizations, such as the Free Trade Lumber Council and various
provincial lumber manufacturers associations, have joined in support of this
action.
For its second quarter, Sears Canada had total revenues
of $1.585 billion, compared with $1.462 billion for the corresponding quarter
last year, an increase of 8.4%. Merchandise sales increased 10.8% in the quarter.
Same-store sales increased 4.4%.
Dekor, the upstart home improvement department store
founded by former Home Depot execs, will expand its appliance lines this Fall.
The chain will add six additional brands and remodel part of its stores as part
of its new strategy to increase profits.
Maytag Co.'s sales in the second quarter of this
year were US$1.069 billion, down 3% from US$1.104 billion in the second quarter
of 2000. Sluggish industry-wide sales prevailed in all the business sectors
where Maytag competes. Despite lower industry sales of major appliances, Maytag
had strong sales of washers, dryers and dishwashers, which led to an overall
increase in sales of major appliances from the prior year.
Black & Decker posted second-quarter revenues
of US$1.07 billion, a 5% decrease from US$1.13 billion last year, citing weak
consumer demand in the United States and Europe. The company said it expects
third-quarter sales will be flat to slightly up.
Stanley Works announced net sales fell 4% to US$676.5
million. Lower unit sales volume and prices as well as the weakness of foreign
currencies against the dollar weighed on sales.
A suspect was arrested in conjunction with two mail
bombings at two Atlanta facilities of Home Depot’s air conditioning and
plumbing supply subsidiary, Apex Supply Co. Thousands of workers at the two
Apex sites were evacuated when package bombs exploded; two people had minor
injuries in one of the bombings. Also last week, Home Depot's corporate headquarters
in Atlanta was evacuated when a vibrating package was discovered. The parcel
turned out to be a box of vibrating pagers. Last weekend, three people were
killed in a shooting at a Home Depot store in Morrow, GA.
______________________________________________
CANADIAN STOCK WATCH
| COMPANY |
52-WK HIGH |
52-WK LOW |
CLOSE (FRI) |
| Canadian Tire |
25.20 |
15.05 |
25.99 |
| Canfor |
16.95 |
7.65 |
9.90 |
| Emco |
7.50 |
2.60 |
6.25 |
| Goodfellow |
11.00 |
8.00 |
9.25 |
| Home Depot |
49.74 |
47.61 |
47.24 |
| Hudson's Bay |
17.65 |
12.40 |
16.32 |
| Lowe's |
64.90 |
34.25 |
72.55 |
| Sears Canada |
37.25 |
18.55 |
21.80 |
| Taiga Forest |
10.00 |
6.80 |
9.10 |
| West Fraser |
36.50 |
21.00 |
34.50 |
______________________________________________
"Superman never made any money for saving the
world from Solomon Grundy,
Sometimes I despair the world will never see another
man like him."
Brad Roberts — (the Canadian band Crash Test
Dummies, "Superman’s Song")
______________________________________________
MARKET INDICATORS
Principal residences accounted for 38% of family
assets compared with 29% for all financial assets combined, according to a Statistics
Canada survey released recently. As of 1999, principal residences were valued
at over $1.1 trillion, the largest asset class held by families. (For a full
report on "Homes, Canadians’ biggest asset, biggest debt," read
2Q issue of Hardlines Quarterly Report.)
The rate of increase for the prices of goods and
services included in the Consumer Price Index basket slowed to 3.3% in June
compared with June 2000. This 12-month percentage change is down from 3.9% in
May and 3.6% in April. The CPI rose 0.1% from May to June, the fifth consecutive
month-to-month increase. Electricity prices rose 2.6%, mainly owing to higher
prices in Ontario.
Wholesale sales cracked the $32-billion mark for
the first time last July, culminating a period of rising sales that started
in mid-1998. During the latter half of 2000, wholesale sales weakened and levelled
out. Although there is still some volatility in the industry, wholesale sales
have been rising slowly in 2001. Nine of the 11 wholesale sectors reported increases
in May. Strong wholesale sales were reported in farm machinery, equipment and
supplies (+7.5%); lumber and building materials (+5.7%); and motor vehicles,
parts and accessories (+3.6%).
______________________________________________
PEOPLE ON THE MOVE
David Lépine has joined the management team
of Cameron Ashley Building Products as vice-president — Québec region.
He joins the company with 20 years of management experience in the construction
industry, including three years with Weyerhaeuser Co. and 10 years with St.
Lawrence Cement. (450-641-4760)
The Home Depot in Atlanta has named Rebecca W. Bass
as its first vice-president for e-business. Bass, former CEO of Galileo Development
Systems, an Atlanta based Web-software company, was also an executive with LEXIS-NEXIS
and Motorola. (770-433-8211)
______________________________________________
OVERHEARD
…
… "I feel strongly about the fact that
this is a good company and I’d like to make a contribution."
— Jos Wintermans, the new president and CEO
of Sodisco-Howden Group, who took over last week from Tony Molluso.
* * * * * *
BIG NAMES, NETWORKING, AT NEXT
HARDLINES MARKETING CONFERENCE:
Join Canadian Tire, RONA, Ace Hardware, American
Tool, Turkstra Lumber and more. Where? The Sixth Annual Hardlines Marketing
Conference — September 13, 2001 at the Four Points Sheraton! I am confident
this conference will turn out to be the single best day of education, insights
and networking you’ll have all year. Period. Only $389.00 per person —
includes continental breakfast, lunch, cocktails, prizes and more! Contact bev@hardlines.ca
for more info, or call me direct: 416-489-3396. — Michael
(Some sponsorships still available for the event
— call me for details.)
(go to https://hardlines.ca/html/conferences.html)
To get our special hotel rate for the Hardlines Marketing
Conference at the Four Points Sheraton, call 1-800-737-3211.
______________________________________________
* * * * HARDLINES MARKETPLACE* * * *
Check out Hardlines Classifieds on the web: https://hardlines.ca/html/classifieds_new.asp
______________________________________________
NORAL MARKETING:
Representing leading manufacturers since 1986. We
ensure high profile retail presence for a wide range of product lines. Why not
make yours one of them?
* * * * * *
AWARD WINNING COMPANY: Canadian-In store Merchandising
Canadian-In store Merchandising is pleased to announce
it has received "Outstanding Merchandising Award for Toro Lawn and Garden Products"
in
North America from The Toro Company. Canadian In-store
is proud of the work it has done on Toro’s behalf to develop relationships
and merchandise Toro products to help drive sales in the Canadian market. These
efforts helped us to increase Toro’s sales and market share with its own
customers.
* * * * * *
SALES PROFESSIONALS:
CanWel, one of Canada’s leading distributors
of building materials to the retail and industrial markets, is focusing on growth
strategies. We are looking for motivated individuals to help us grow. To meet
these challenges, you will need strong communication, interpersonal and negotiation
skills coupled with a proven track-record. A familiarity with the building materials
industry would be beneficial.
SALES MANAGERS:
Reporting to the general manager and drawing on your
outstanding motivational skills, you will assume a hands-on leadership role
and oversee a team of inside sales representatives while ensuring profitable
growth in the Ontario region.
Your motivational and mentoring abilities have been
proven excellent, and you have at least 5 years’ sales/supervisory experience.
A sales-driven team builder will thrive in this role. You will be based in Brampton,
Ontario.
We are also looking for Account Managers and Inside
Sales Representatives. Please refer to our website for details.
In return for your contribution, a competitive salary/benefits
package is offered. Please forward your resume, by August 3, 2001 to: Human
Resources, CanWel Distribution Ltd., 15 West Drive, Brampton, Ontario L6T 3T5;
fax 905-457-3668. Website: http://www.canwel.com
______________________________________________
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
DOING YOUR MARKETING STRATEGY? PLANNING THE BUDGET?
THEN YOU WILL NEED HARDLINES INDUSTRY REPORT:
"Home Improvement Retailing in Canada"
is a comprehensive overview of the size of the market, how many stores are out
there, who the key players are, their market position, the size and growth of
the big boxes, the trends in housing and renovations, market trends — and
much, much more! 120-plus pages filled with charts, graphs and photos. Regular
price: $945, only $750 for subscribers! For more information, contact Nancy
Wright at nancy@hardlines.ca;
phone: 416-489-3396.
(go to https://hardlines.ca/html/industry_report.html)
______________________________________________
Hardlines is published weekly (except monthly in
December and August)
by McLARNEYCOM
542 Mount Pleasant Rd., Suite 302, Toronto, Ontario,
Canada M4S 2M7
© 2001 by Michael McLarney.
HARDLINES™ the electronic newsletter hardlines.ca
Phone: 416.489.3396; Fax: 416.489.6154
Michael McLarney, Editor & Publisher: mike@hardlines.ca
Eugenia Canas, Assistant Editor: buzz@hardlines.ca
Beverly Allen, Marketing Manager: bev@hardlines.ca
Nancy Wright, Circulation Manager: nancy@hardlines.ca
______________________________________________
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