John Caulfield, Contributing Editor
 vol. ix, #30 July 28, 2003

* Co-op Fédérée adds dealers to Unimat program * International seminar features tips on building overseas sales * Hudson’s Bay adds Westinghouse branded kitchenwares * Lowe’s execs prepare for big move * B&D faces sales drop, product recalls

“Goodness consists not in the outward things we do but the inward things we are.” — Edwin Hubbell Chapin (1814-80, American clergyman and author)
Please note that Hardlines will not publish on the following dates: August 4, August 11, and August 25. But never fear – the World Headquarters will remain open during this time.Be sure you’ve registered for the Hardlines Conference Series: International Business Seminar Hardware Merchandising PR Awareness Lunch Retail Strategies Symposium Hardlines Marketing conference And be sure and join us for our first ever Hardlines Gala Reception and Dinner on September 3! Michael
Trois Rivières, QC — An old name is new again in this province. Unimat, the name of a now defunct wholesaler, is the latest banner to be offered to independent dealers. It’s the effort of the regional dealer-owned wholesaler, Co-opérative Fédérée de Québec, to develop a retail program for independent hardware and building centre dealers who aren’t co-op members. Since its inception late last year, two renovation centres and one hardware store have been signed to the new banner. Claude Gingras, director, hardware and building materials for Co-op Fédérée, won’t say what long-term potential he sees for the Unimat banner in Quebec. He merely insists his organization will develop dealers one at a time, as independents seek out alternatives to other banner programs. “We have a structure for both kinds of retailer,” Gingras says. “We have a good program – an offer for independents.” Co-op Fédérée has also been busy updating its member stores. Averaging 12 upgrades a year since 2000, the company has converted 53 in total. However, the co-op wholesaler has already converted 15 this year, with another six planned by the end of 2003. “This will be our biggest year,” says Gingras. The group has 156 stores in total, representing about $245 million in retail sales. Updated stores often involve adding square footage and new merchandising, as well as a new colour scheme and updated Co-op store logo. A big part of the renovations allow for the expansion of product lines that appeal to an increasingly important customer – women. “This helps very much with increasing the variety of décor products and helping to bring in more women,” says Gingras. Featuring more and better lighting creates a more pleasant shopping environment, he adds, enabling shoppers to find things easily and encouraging the purchase of impulse products.
Toronto — Hudson’s Bay Co. has forged an exclusive agreement with Lake Forest, IL-based Salton to offer Westinghouse branded small appliances in all three of HBC’s retail divisions. It’s the latest step in a strategy to provide brands that are exclusive to HBC stores. The following Westinghouse products will be launched at select Zellers and Home Outfitters stores beginning this fall: small kitchen appliances, microwave ovens, vacuum cleaners, fans, clocks, timers, alarm clocks, personal care appliances, heaters, humidifiers and air cleaners. Additional product categories will be introduced over the next 12 months. Salton operates in Canada under the Maxim Toastmaster name. Part of the branding strategy includes the launch of a series of “beyond” appliances, which are designed to enhance the functionality of conventional appliances, starting with a line of technologically advanced vacuums that are cordless and run on batteries.

Toronto, ON — What services and support are available to companies looking south of the border or overseas for new business? The International Business Seminar, which kicks off the Hardlines Conference Series on September 3, 2003, will feature concrete information on finding customers and distributors for your products in other countries.

One of the featured presenters, Bill Macheras, is a marketing and trade officer with Industry Canada’s International Trade Centre. His job is to assist Canadian companies, particularly small and medium-sized companies, with their exporting needs. With a specialty sector is building products, he has been with the International Trade Centre for three years and has previous public and private sector experience in banking, law and communications. Hardlines will provide an overview of key retail customers overseas, while members of the Council of American States in Canada will present the many programs available for U.S. trade. For more information about the International Business Seminar and the Hardlines Conference Series, call 416-489-3396 or click here.
Wikesboro, NC — Robert Tillman, Lowe’s Home Improvement Warehouse’s chairman and CEO, will move his office into the company’s new customer service centre in Mooresville, NC, which is on schedule to open this September. Tillman will be joined by many of the retailer’s senior-level executives, who will be among the first wave of 1,000 to 1,200 employees to relocate into the new facility from Lowe’s headquarters offices here. The company’s store operations, merchandising, finance and marketing departments will operate out of Mooresville, while its real estate, accounting and information technology departments will remain at Wilkesboro, which currently is home to between 2,800 and 3,000 employees. The Mooreville facility, which will be on a campus that includes a seven-acre lake, is expected to eventually expand to 1.2 million sq.ft. The decision to add this new support centre is in line with Lowe’s ongoing retail expansion, which will add 270 new stores in 2003 and 2004.  
Canadian Tire 37.29 26.80 34.58
Canfor 10.34 6.83 8.80
Costco 39.02 27.00 36.53
Goodfellow 12.65 9.75 10.95
Home Depot 34.90 20.10 32.00
Hudson's Bay 12.75 5.87 9.39
Lowe's Cos. 48.08 32.50 48.23
Rona Inc. 19.40 11.75 18.30
Sears Canada 20.95 13.60 16.82
Sodisco-Howden 2.19 1.15 2.02
Taiga Forest 7.65 5.85 7.35
Wal-Mart 58.03 43.72 56.19
West Fraser 39.05 26.27 32.50
Hardlines is truly international! We’ve gone live as the daily news link for the 2004 National Hardware Show in Las Vegas. Check out the site: for more info!
Federal Way, WA — Profits rose for Weyerhaeuser Co. in its second quarter, even though sales stayed flat. Net earnings increased to US$157 million on net sales of US$4.9 billion, up from $72 million, on identical sales in the second quarter of 2002. Earnings include the a charge of US$19 million and a gain of US$95 million for the sale of timberlands in Western Washington. Montreal, QC — Tembec Inc. reported a drop in gross sales for the third quarter to $808.9 million, down from $872.6 million in the same period a year earlier. Net earnings inched up to $70.5 million, compared with $68.7 million in the corresponding quarter of 2002 and $34.2 million in the second quarter of this year. Cleveland, OH — Sherwin Williams reported that its sales for the second quarter increased only 1.3% to US$1.5 billion. Its earnings rose 2.4% to US$110.1 million. The company said wet weather hindered its sales growth. Its paint stores saw their sales for the quarter increase 2.4% to US$933.8 million. Same-store sales inched up 1.7%, but this segment’s operating income declined 0.8% to US$122.6 million. Through six months, Sherwin Williams’ stores reported a 2.6% gain in sales to US$1.65 billion, a 1.6% increase in same-store sales and a 6.8% decline in operating income to US$152.6 million. Townson, MD — Cost cutting is paying off for Black & Decker, which reported that its profits for the quarter ended June 29 rose 14.5% to US$75.7 million. However, the company couldn’t completely weather lower orders from its two largest customers, Home Depot and Lowe’s, which caused its sales for the quarter to decline about 1% to US$1.12 billion. Sales of power tools and accessories specifically were off 6% in the quarter. Through six months, B&D sales increased 0.5% to US$2.09 billion, and its net income rose 20.2% to $119.1 million. New Britain, CT — Net income at Stanley Works for the second quarter fell a whopping 80% to US$12 million, on sales of US$700 million, which increased 8% over the same period a year ago. The company attributed the decline to US$48 million in charges related to its closing its Mac Direct business, as well as severance and pension benefits for John Trani, who will retire as the company’s CEO later this year. Among the factors that contributed to Stanley’s ongoing financial difficulties was the decision by Home Depot to drop the supplier’s line of entry doors from one of its regions. St. Paul, MN — Sales worldwide increased 10% for 3M in its second quarter, pushing earnings up nearly 15%, from US$539 million to US$619 million. Quarterly revenue went from US$4.16 billion last year to US$4.58 billion. Duncan, BC — Doman Industries continues to struggle through restructuring, and has obtained an extension of its bankruptcy protection from the Supreme Court of British Columbia as it considers a new loan package, this time from Tricap, which was part of an earlier loan deal. Doman is an integrated forest products company and the second-largest coastal woodland operator in BC. Greensboro, NC — Mohawk Industries has reached an agreement to buy the Lees Carpet division of Burlington Industries, which is now in Chapter 11 bankruptcy proceedings. Lees Carpet had US$262 million in sales last year, accounting for more than one-quarter of Burlington’s sales. Mohawk is the second largest carpet maker in the U.S. and the country’s biggest floor coverings manufacturer.  
Peter Clarke has joined Grant Brothers Sales as president of the Hardware Division. Prior to joining GBS, Clarke was the Canadian director of sales for American Tool Cos. He reports to John D. Grant, president of Grant Brothers. (905-677-7299)
Retail sales increased 0.3% in May to $26.2 billion, reports Statistics Canada. This is the first gain in three months. Before that, sales had fallen 0.8% in April and 0.7% in March. In the first five months of 2003, retail sales grew on average 0.3% per month, maintaining the same pace as in 2002. All sectors saw growth except grocery stores, which were down 2.3%, while department stores gained 3.7% in May. In the first five months of 2003, retail sales grew on average 0.3% per month, maintaining the same pace as in 2002. The composite leading index posted a moderate gain of 0.3% in June, slightly stronger than last year’s growth over the same period, says Statistics Canada. All the indicators of household demand rose or were stable, led by housing, which was up 0.7% in June, its best since a 2.2% advance in February. Both housing starts and existing home sales increased, as employment rebounded from two consecutive losses and mortgage rates stayed low. Sales of durable goods, which have been very volatile in recent months due to rebate programs for autos, also turned up. Although their sales increased in 2001, non-store retailers – who reach consumers through everthing from infomercials, direct-response advertising, catalogues, door-to-door sales, home parties and by vending machines, still only accounted for 3% of all Canadian retailing, says Statistics Canada. They provided $10.5 billion in goods and services, a 2.9% increase over 2000. Sales of new single-family houses were up 4.7% in June to 1.16 million seasonally adjusted, says the U.S. Census Bureau. While the increase is a healthy one over the previous month, it’s also fully 21.0% higher than the rate in June 2002.

****HARDLINES MARKETPLACE**** Dont' miss the products and services on the Hardlines web Marketplace: And check out Hardlines Classifieds on the web:

HELP WANTED NATIONAL SALES MANAGER / U.S.A. Leading manufacturer of Flooring Accessories with multiple locations in the U.S. and Canada is seeking a dynamic individual to drive our continued growth within the U.S. marketplace. The individual selected will report directly to and work closely with our VP Sales. Specific responsibilities include product presentations of both our Commercial and Consumer Products, to existing and potential accounts. You will assist with the establishing of product assortments, merchandising, customer pricing and channels of distribution. Setting of forecasts, budgets, goals and objectives is expected. A very large component will include feedback on new market / product / account potential as well as ongoing competitor and trend analysis. You are a sales professional from a manufacturing setting, with a minimum 8 years successful career history working with the major retail and / or wholesale accounts in the U.S. Please respond via e-mail to indicating your qualifications and remuneration expectations (required information). Only those considered for a follow-up interview will be contacted. No phone calls please.

********************************************************************************** WANTED: TWO TRAIL BLAZING SALES MANAGERS

Ready to bounce ideas off the Canadian executive team instead of waiting for Head Office U.S.A. to give its blessing? An entrepreneurial Canadian supplier of a wide range of branded and private label products sold to the home improvement and mass merchant markets is growing. Their expansion has lead to new opportunities in various categories in Retail and Industrial Markets. As the Ontario-based Regional Sales Manager, you'll continue the growth and addition of new business with accounts such as Wal-Mart, Zellers, Home Hardware and others. You'll also develop opportunities in the automotive aftermarket, electronic, food and drug channels, while supervising the company service merchandising function. As the U.S. Sales Manager, you'll trail blaze and pursue opportunities in major home improvement and retail accounts with the support and the encouragement of a Canadian marketing and product development team. Build and work with a network of sales agents to keep your efforts top-of-mind with your Customers. U.S.-based candidates preferred. Both positions require a minimum of five years' sales success in the home improvement and/or retail markets. The ability to work autonomously, yet communicate effectively with key company contacts is a must. The returns include a competitive compensation package and a chance to be recognized within a dynamic, growing enterprise. Please contact Wolf Gugler in complete confidence, quoting Trail Blazer-Canada or Trail Blazer-U.S. Wolf Gugler & Associates Limited, (416)386-1719 or (405)848-3006. Email: Web site: ********************************************************************************** REPS/AGENTS WANTED SALES AGENTS NEEDED Kempston Canada Ltd, a supplier of premium wood working accessories to the retail market, requires sales agents for the province of Alberta and the Maritimes. Previous experience in the woodworking industry is desirable and pioneering spirit a must. Please forward resume by email to, or by fax: 905 513 7924, Attn National Sales Manager. Kempston CANADA LTD, 250 Shields Court, Unit 23, Markham, Ontario, Canada L3R 9W7. Phone: 905-513-6843; Fax: 905-513-7924; ; ********************************************************************************** SERVICES OFFERED RETAIL IS DETAIL. Let Noral Instore, a national service company, handle your service requirements in Canada. Noral serves some of America's leading manufacturers, managing their lines for Canada's top hardware retailers, big boxes and mass merchandisers. Contact Al Vanderveen at 519-439-6800, ext. 201, to find out how Noral can boost your sales in Canada. ********************************************************************************** CANADIAN PATENT CONFIRMED FOR THE DRICORE® SUBFLOOR SYSTEM The Canadian Intellectual Office of Industry Canada confirmed that, effective May 13, 2003, the DRIcore Division of Longlac Wood Industries has been awarded a patent for its free-floating sub-floor panel. The DRIcore subfloor system is designed as the first step to a successful finished basement. Since Dricore panels are raised off the porous concrete floor on polyethylene cleats it works to mitigate the transfer of cold and dampness and helps prevent the formation of mold and mildew. The result is a subfloor that installs faster and performs better than conventional subfloors and provides a comfortable, durable platform for most finished floors. For more information visit or call 1 866-976-6374. ANNOUNCING THE DRICORE SALES & MARKETING TEAM Sam Mowat, General Manager, Sales & Marketing, Longlac Wood Industries is pleased to announce the reorganization of the sales and marketing team at the DRIcore Division to better service its customers. Dave Murray, Director of Marketing, brings to Dricore his versatile marketing experience with Canadian manufacturers of home improvement products, most notably, Premdor Inc. (now Masonite International). Grant Cowx, Sales Manager - North America joins DRIcore after sales and marketing assignments at Scott Paper Ltd and Duracell Canada Inc. Kim Laurienzo, Trade Services Marketing Manager, provides DRIcore with her proven skills in trade marketing in the retail box store environment after her tenure at Bailey Metal Products Limited. Gilles Quirion, Sales Representative, brings his enthusiastic energy to DRIcore as one of the original sales team when Longlac Wood Industries established the DRIcore Division in Mississauga in 1999. For more information call Sam Mowat at 888-566-4522, ext 224 ********************************************************************************** SELL YOUR COMPANY - OR BUY ONE - WITH HARDLINES CLASSIFIEDS! DO YOUR EXECUTIVE SEARCH, FIND NEW LINES OR GET NEW REPS IN THE HARDLINES MARKETPLACE. ONLY $2.50 PER WORD FOR THREE WEEKS IN THE CLASSIFIEDS. TO PLACE YOUR AD, CALL PHYLLIS NOWELL AT 416-489-3396 OR EMAIL:
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