vol. viii, #30 July 29, 2002

* Canadian Tire shopped by 90% of Canadians * Rona prepares to access capital market * Seminar gives tips for building international sales * Emco nixes purchase from BC Gas * Wholesale plumbing and heating sales up in June

"I am only one; but still I am one. I cannot do everything, but still I can do something; I will not refuse to do something I can do." - Helen Keller (1880-1968)

Please note that Hardlines will be published only once next month, on August 19. There will be no issues on August 5, August 12, and August 26. The World Headquarters remains open during this time however, as we prepare for our incredible Hardlines Conference Series in Toronto, September 12-13. - Michael

Toronto, ON - Retail sales in Canada are expected to grow by 4.7% in 2002, to $303.1 billion, with almost half of that coming from six major urban markets. And Canadian Tire remains the most shopped retailer in the country. The Vancouver, Edmonton, Calgary, Toronto, Ottawa-Hull and Montréal markets make up 48% of the retail industry in Canada, says the latest Major Market Retail Report from Kubas Consultants. The Toronto area alone comprises 17% of the national market, while Montréal accounts for another 11%. Among shoppers surveyed, 75% said they have visited a hardware or home improvement store within last 12 months. Big boxes continue to stir interest, as 70% of shoppers said they're "very" or "somewhat" interested in shopping at one. However, only 51% of shoppers aged 30-39 cared to venture into a power centre. And the appeal drops as shoppers get older: only a quarter of those aged 65 and older are interested in shopping at power centres. More than 90% of Canadians shopped in a Canadian Tire store over the past 12 months, followed by Shoppers Drug Mart, Zellers, Wal-Mart and The Bay, says the survey. The MMMR 2002 Report measures consumer confidence and shopping preferences. It's based on a survey of 1,540 consumers aged 18 or more. Check out www.kubas.com for more info.
Boucherville, QC - Rona Inc. held a series of meetings with its dealers and other major shareholders last week. The meetings were part of a process of restructuring the company's shareholder agreements as part of a process that restructures the by-laws of the company following the purchase of Revy Home Centres last summer. Rona CEO Robert Dutton has indicated the company's intention to access the capital market, likely in the form of a public share offering before the end of 2005. Rona's agreement with its primary lenders in the Revy deal, including the Caisse de dépot du Québec, can result in negative implications for Rona if the IPO doesn't go through before the 2005 deadline. But Rona is prepared to exercise patience given the current poor performance of the stock market. "We're going to look at the situation month by month and wait until all the planets are in alignment," Dutton says. "However, I'm sure we're going to be public before 2005."
World Headquarters, Toronto - Finding business overseas is the subject of a new seminar from Hardlines. "Global selling: Tools for Opening Overseas Markets" will precede the Retail Strategies Symposium in Toronto on September 12. The workshop will provide an overview of the global home improvement market, identifying key international markets and leading retailers in Europe and Asia. In addition, experts on tax and export law will share tips to keep paperwork down and get sales up. The benefits of Canadian participation in the world's largest hardware show, Practical World: the Cologne International Hardware Fair/DIY'TEC, will also be presented. Any company looking for more international customers or greater access to global buying will benefit from this workshop. It includes practical tips on finding representation, meeting buyers and stickhandling the ins and outs of foreign business. "Global selling: Tools for Opening Overseas Markets" is presented free of charge as part of the two-day Hardlines Conference Series, September 12-13, 2002. Day one features the Global Sales seminar in the morning, followed by the Retail Strategies Symposium in the afternoon. Day two features a full day of presentations and workshops in our Hardlines Marketing Conference. For more information about the Hardlines Conference Series, September 12-13, 2002, call Nancy at 416-489-3396, nancy@hardlines.ca Click here to register.
After advancing in April, retail sales fell in May by 1.3% to $25.1 billion. This followed almost unchanged sales in February and March. Stores classified as "other retail," including hardware, reported a 2.7% sales drop. Wholesalers report good sales for June, though down modestly from May, according to the Canadian Institute of Plumbing and Heating. June sales were up an estimated 5% from June 2001 and year-to-date sales are up 10% from 2001. Business is up in all regions of Canada: Québec and Ontario are up an estimated 10%, while year-to-date sales in British Columbia are ahead 7%. The Consumer Price Index advanced 1.3% in June from June 2001, after rising 1.0% in May, says Stats Canada. Just over half of the advance in June came from an increase in cigarette prices due to a hike in taxes.  
Canadian Tire 33.15 18.50 29.20
Canfor 11.70 8.08 10.00
Emco 12.77 3.71 11.20
Goodfellow 13.99 8.00 12.25
Home Depot 52.60 27.25 29.30
Hudson's Bay 20.10 12.30 12.33
Lowe's Cos. 49.99 24.99 35.59
Sears Canada 25.10 12.50 20.95
Sodisco-Howden 2.20 0.75 1.44
Taiga Forest 13.50 7.49 13.50
West Fraser 44.42 26.13 36.75
Taiga Forest Products Ltd. had sales of $258.2 million in its first quarter, up 9.6% from the same period a year earlier. Profit reached $1.6 million, down from $2.7 million. Results don't reflect the reversal of $13.6 million in duties on softwood lumber to the U.S. that will be included in the 2Q results. Emco Ltd. announced it will not proceed with the acquisition of the wholesale waterworks supply business of bcgSERVICES Inc., a wholly-owned subsidiary of BC Gas Inc. Emco announced back in April that it had signed an agreement to acquire the business from BC Gas. However, the two sides couldn't agree on the price and have terminated the agreement. Net sales by Canfor Corp. in its second quarter were $577.1 million, an increase of $70.4 million over the previous quarter, largely due to higher lumber shipments, higher pulp prices and additional log sales on the B.C. coast. 2Q net income was $70.2 million, up from $10.1 million for the same period in 2001. Net income for the year to date was $81.3 million, up from $28.9 million a year earlier. Net income for the quarter benefitted from the reversal of $48.0 million in previously expensed countervailing and anti-dumping duties and a $10.0 million after-tax gain on the sale of a sawmill. Sales for Doman Industries in the second quarter were $158.2 million, up from $214.8 million a year earlier. Sales in the first six months of 2002 were $290.0 million, compared with $434.7 million. EBITDA in the second quarter was $22.9 million, compared with $10.9 million in the second quarter of 2001. Slocan Forest Products earned $43.4 million in the second quarter, up 73% from $25.1 million a year earlier, because of an accounting change that reflected refunded duties in the ongoing Canadian-U.S. softwood trade fight. The board of directors of Emco Ltd. has decided to initiate a strategic alternatives review, as parent company Masco Corp. wants to sell off all or part of the 42.1% ownership it has in Emco. Abitibi-Consolidated Inc. reported a drop in 2Q profits, which fell to $203 million from $232 million a year earlier, due to lower newsprint prices and fallout from the U.S. softwood lumber dispute. Sales for the second quarter fell to $1.39 billion, compared with $1.5 billion a year earlier.
Neil Anderson has joined Quality Craft Ltd., in the Mississauga, ON office as regional sales manager for Ontario. He was formerly with Brother (905-564-7577) Brock Senner has also joined Quality Craft as Western Canada regional manager, working out of Calgary. He was most recently with Bosch. (403-256-0355) The Canadian Hardware and Building Materials Show has added to its sales team: Lynn Cronin has been appointed sales associate. Cronin is a 17-year veteran of industry trade shows, including the National Home Show, the LBMAO's erstwhile Canadian Home Centre Show, and the Ottawa Home ShowJonathan Lee has also been named sales associate for CHS. He was most recently acting senior vice-president of Canada Cash Control. (905-821-3470) The following appointments have been made at the power tool division of Robert Bosch Inc. in Canada: Greg Ferguson has been named brand manager - Skil Power Tools. He joins Bosch from Supplierpipeline, where he served as marketing manager … Bryan Sue has been appointed national account manager for Skil/Bosch, responsible for key customers, namely Wal-Mart, Home Hardware, Canadian Tire and SearsTony Varghese joins the company as product manager - accessories. Formerly with Rona/Lansing in Toronto, he has recently completed an MBA at McMaster University. (905-826-6060) Michael Robitaille is no longer with Maxtech Manufacturing, where he served as sales and marketing manager. (519-885-5336) Office Depot has appointed David W. D'Arezzo executive vice-president, merchandising at its Delray, FL head office. Formerly senior vice-president of merchandising for Wegmans Food Markets, he will be in charge of merchandising for the company's retail, contract, catalogue and e-commerce businesses. (561-438-4930)
How big is the Canadian hardware/home improvement industry? Which sectors are growing fastest? Know the answers - read the Hardlines Quarterly Report!.... CLICK HERE to find out more!
****HARDLINES MARKETPLACE**** Check out Hardlines Classifieds on the web: https://hardlines.ca/html/classifieds_new.asp POSITIONS SOUGHT SALES EXECUTIVE AVAILABLE Sales executive available full time or on a contract basis. Plugged into retailers in Canada and the U.S. Contacts in the electrical, lighting and building materials categories. Excellent references. Results guaranteed. Email: integralsm@hotmail.com ************************************************************************************  HELP WANTED NATIONAL ACCOUNT MANAGER Maxtech Consumer Products Group, an innovative and expanding designer, manufacturer and distributor of power tool accessories and hand tools currently has an opening for a high-level Account Manager/Sales Executive to grow our product penetration and expand our customer base, largely in the U.S. We offer a solid customer base, a unique and innovative product line, and a very dynamic work environment. The ideal candidate will be a self-starter with experience in the hardware/DIY tool market and a proven track record of growing sales and market share, a willingness to travel and be highly motivated. If you are interested, please forward cover letter and resumé to jobs@maxtech-mfg.com or fax: 519-885-6066 ************************************************************************************   DISTRICT SALES MANAGER – NORTHERN ONTARIO Porter-Cable Delta, a recognized leader of quality woodworking, portable electric, equipment and air tools products, currently requires an enthusiastic professional as: District Sales Manager—Northern Ontario A resourceful individual able to organize and communicate successfully, you will based in Sudbury directing the operations for your territory and meeting strategic objectives. As a high achiever, you have a minimum of 3 years sales experience in the hardware, automotive and/or HVAC industry. You have a valid driver’s license, a post secondary degree/diploma preferably in Business and are computer literate. A background in power tool sales and bilingual communication skills are desirable. If you are looking for a progressive organization and a competitive compensation package, please fax your resumé to Human Resources at 519-836-9352, or email: TMAJOR@PORTERCABLE-DELTA.COM or mail to 505 Southgate Drive, P.O. Box 848, Guelph, Ontario N1H 6M7. We thank all applicants; however only candidates selected for an interview will be contacted. ************************************************************************************ INDUSTRIAL SALES AGENT WANTED TradeMASTER Tools, a full line power tool distributor, is looking for an experienced agent to build industrial/automotive accounts in Ontario. Fax reply to Sales Manager at 519-622-4472 or email: sales@trademasterltd.com ************************************************************************************ CANADIAN SALES MANAGER: LADDERS Located in Richmond Hill, ON, and reporting to the U.S. Director of Sales, the Canadian Sales Manager plans and directs the Ladder Division's sales strategy including sales volume objectives, sales profitability objectives, key account management, & marketing/merchandising programs. Qualifications include four year college or university degree - in sales marketing or equivalent; 3 plus years experience in the hardlines/building products industry; excellent verbal and written communication skills; well organized and good problem solver; high energy level and self motivated team player; bilingual (French and English) preferred. Interested candidates may submit their résumé no later than Monday, August 19, 2002 to: Lee Bennett, William L Bonnell Co., 25 Bonnell Street, Newnan, Georgia 30263; fax 770-254-7708 or e-mail:clbennett@bonlalum.com ************************************************************************************ FIELD SALES MANAGER - EASTERN CANADA Porter-Cable Delta, a recognized leader of quality woodworking, portable electric, equipment and air tools products, currently requires an enthusiastic professional as Field Sales Manager - Eastern Canada. A resourceful individual able to organize and communicate successfully, you will direct the industrial sales operations for Eastern Canada. A high achiever, you have a minimum of 5 years sales experience in the hardware, automotive and/or HVAC industry. Your minimum of 3 years supervisory experience, bilingual spoken and written skills (English/French) and exceptional computer literacy will allow you to direct the Eastern Canada sales force and key accounts to meet strategic objectives. You are located within commuting distance to Guelph, Ontario for weekly meetings (approximately 2days per week); you have a willingness to travel, a valid driver's license and a post secondary degree/diploma preferably in Business. If you are looking for a progressive organization and a competitive compensation package, please contact Wolf Gugler in complete confidence, quoting file number C-11. Wolf Gugler & Associates Limited, 1370 Don Mills Road, Suite 300, North York, Ontario M3B 3N7. 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