HARDLINES
HARDLINES
Canada’s electronic information service for the home
improvement industry
July 30, 2001
Volume vii, #32
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlines.ca
hardlines.ca <https://hardlines.ca/>
* * * * * *
IN THIS ISSUE:
* Rona reorganizes executive structure
* Harron Lumber escapes parent’s bankruptcy
* New studies refute U.S. softwood countervailing charges
* Weyerhaeuser 2Q profits take a tumble
* * * * * *
The Retail Strategies Symposium is a half-day education
seminar that will feature industry overviews from authorities 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!
* * * * * *
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 at the Four Points Sheraton
while attending either Conference, call 1-800-737-3211.
* * * * * *
INDUSTRY NEWS. EVERY DAY – Our website has daily
updates on retail and industry news that matter to you. Keep informed. Visit
hardlines.ca <https://hardlines.ca/>
. Every day.
* * * * * *
RONA REORGANIZES EXECUTIVE STRUCTURE
After its purchase of Revy Home Centres, Rona Inc. faced
the challenge of consolidating a management team that included more than 25
presidents and vice-presidents. The first casualty of the deal was Rick Blickstead,
the high-profile president and COO of Rona’s retail division, based in
Toronto.
Now, the executive team is: Jean Émond, senior vice-president,
people and culture. Both Evelyn Ross, in charge of Rona Retail’s HR, and
Sarah McLellan, human resources administrator for Lansing Buildall, will report
to Émond. Michel Robin is now interim vice-president, big box stores.
The Toronto office of Rona, including Glen French, will report to Robin for
the near term. In addition, Al Cheney, vice-president, operations at Revy’s
Surrey, BC headquarters, will report to Robin.
Executive vice-president, traditional stores, is Claude
Bernier. Reporting to him is Terry Crofford, vice-president operations and development
for Revelstoke stores, and Rob Wilbrink, now vice-president operations and development
for Lansing and Cashway. Formerly vice-president of retail operations for Lansing,
he fills in the void left by last week’s departure of John Kitchen at Lansing,
and now the departure of Jim Pybus, who had been president of Rona Cashway.
On the buying side, Marc Dufresne is executive vice-president,
purchasing and logistics. Reporting to him are: Jeff Kilgour, vice-president,
purchasing, forest products; Larry Jarvis, vice-president, building materials;
and Pierre Pelletier, vice-president, logistics and procurement.
The latest appointments are widely considered just the first
step in reorganizing the Rona organization and its four separate businesses,
namely Rona, Cashway, Lansing Buildall and Revy. Amdist the uncertainty that
future change portends, each executive vice-president is expected to develop
his own team and report to Rona president and CEO Robert Dutton sometime in
September.
______________________________________________
HARRON ESCAPES BANKRUPTCY FATE OF
PARENT COMPANY
Ownership of Harron Hardware and Building Supplies has been
placed back in the hands of the Harron family after the bankruptcy of its holding
company, Network Forest Products. Harron had been bought by Network in early
2000.
The Moorefield, ON-based store, whose 22-year-old history
includes a six-year start as a Home Hardware dealer, has been considered a viable
concern. It is now backed financially by GMAC and has been reinstated as a Castle
member in its own right. Harron’s previous membership with Castle was as
a division of Network.
Cutler Forest Products, acquired by Network in 2000, will
also go back to its original family owners.
Harron’s prospects look positive. "We are getting out
of the woods and, in fact, doing very well for the situation," says Jeff Harron,
company president. "This could be a record month in our history." Harron’s
sales in 2000 were $22.5 million, a 12.5% increase over the year before.
Harron’s viability, and its renewed membership to Castle
represents a significant strengthening of Castle’s position. Cashway’s
acquisition of six Do-it centers from Hensall District Co-op in 1999 was a big
loss for the buying group. "In one full swoop, this replaces the loss from the
Hensall business," says Dave Morton, national marketing manager for Castle.
"As well, Harron’s position is strengthened as an individual member," he
adds.
Network Forest Products is a wholly-owned subsidiary of
Value Holdings Inc., which is largely owned by the Ziner family. When Network
was put into receivership in May 2001, the board of directors of Value resigned,
with the exception of Robert Ziner, who stayed on as director of Value Holdings.
______________________________________________
NEW STUDIES IN LUMBER DISPUTE DEBUNK
U.S. ARGUMENTS
Two reports from three respected forestry industry consultants
and a leading American academic have destroyed key arguments in the U.S. countervailing
case against Canada.
"We have the definitive proof that the U.S. lumber lobby's
cry of ‘unfair subsidy’ is completely without basis," said John Allan,
President of the B.C. Lumber Trade Council.
The first report, by three forestry consulting firms in
Québec City, Vancouver and Washington, concludes that cross-border stumpage
rate comparisons are wrong legally and factually. The U.S. lumber industry,
the report says, has failed to take into account many factors that go into the
calculation of stumpage rates – regulations, taxation levels, capital and
labour costs, exchange rates and timber and client conditions, which vary widely
between Canada and the U.S.
The legal analysis submitted with the report shows that
the U.S. Department of Commerce itself considers cross-border comparisons such
as those used by the U.S. industry to be "illegal, flawed and capricious."
The second report concludes that log export restrictions
do not amount to a subsidy since price gaps observed between export and domestic
sale of logs are normal. The report emphasizes that these gaps exist in countries
with no log export restrictions, and that these restrictions long ago ceased
to have any significant effect on the price of logs in British Columbia.
This report was created by Dr. Edward E. Leamer, an international
trade expert, the Chauncey J. Medberry chair in management, a professor of Statistics,
and Economics, as well as the director of the business forecast project at UCLA.
The studies, originally commissioned by Government of British
Columbia and
the B.C. Lumber Trade Council, have been sent to the U.S.
Department of Commerce, which is examining the U.S. lumber industry's trade
complaint filed in the wake of the
Canada-US softwood lumber agreement.
______________________________________________
COMPANIES IN THE NEWS
West Fraser Timber announced second quarter results for
the period ended June 30, 2001. Sales during the quarter were $416 million,
compared with $402 million in 2000. Earnings for the first half of 2001 were
$71 million on sales of $791 million. This compares with earnings of $85 million
on sales of $796 million in the corresponding period of 2000.
Weyerhaeuser Co. reported second quarter net earnings of
US$171 million on net sales of US$3.9 billion. This compares with US$203 million
on sales of US$4.2 billion for the second quarter of 2000.
Kohler Windows and Entrance Systems has completed expansion
of its manufacturing facility in Debert, NS. The expansion adds 30,000 sq.ft.
to the facility, increasing the total size to 100,000 sq.ft.
Do It Best Corp. has announced a 30% increase in international
sales over the last year, largely due to the co-op’s addition of 20 international
stores to its roster. Locations include Mexico, Saint Lucia, Yap Island, San
Maarten, El Salvador, Costa Rica, the British Virgin Islands, Thailand and Venezuela.
Home Depot in Atlanta has launched an information campaign
throughout its more than 1,200 stores to meet rapidly growing consumer interest
in products that reduce home energy consumption. Several hundred products currently
on store shelves will be prominently marked with displays bearing a bright green
``E-plus'' logo, and carrying energy-saving information.
Two of the biggest Internet retailers retreated from their
ambitious plans to operate as stand-alone companies and said they would be folded
into the brick-and-mortar retail giants that helped get them launched in the
first place. Wal-Mart Stores is acquiring all the minority interest in Walmart.com,
which will remain a separate business unit within Wal-Mart. San Francisco-based
BlueLight.com, said its offline affiliate Kmart Co. would buy the 40% of the
company that it does not already own.
CORRECTION: Last week I referred to Allroc’s status
as an independent buying group. It was never a member of Evergreen Building
Materials, but rather a member of BID, the predecessor to Evergreen. Evergreen’s
membership comprises Castle Building Centres, Co-op Fédérée,
Delroc Industries, Federated Co-op and Irly Distributors. Combined retail sales
were $2 billion in 2000. (For a complete breakdown of buying group affiliations
in Canada, see the latest issue of Hardlines Quarterly Report! – MM)
______________________________________________
CANADIAN STOCK WATCH
| COMPANY |
52-WK HIGH |
52-WK LOW |
CLOSE (FRI) |
| Canadian Tire |
25.20 |
15.05 |
24.79 |
| Canfor |
16.95 |
7.65 |
10.60 |
| Emco |
7.50 |
2.60 |
6.50 |
| Goodfellow |
11.00 |
8.00 |
9.00 |
| Home Depot |
49.74 |
47.61 |
49.65 |
| Hudson's Bay |
17.65 |
12.40 |
17.90 |
| Lowe's |
64.90 |
34.25 |
38.90 |
| Sears Canada |
37.25 |
18.55 |
21.65 |
| Taiga Forest |
10.00 |
6.80 |
10.35 |
| West Fraser |
36.50 |
21.00 |
31.35 |
______________________________________________
"We know nothing about motivation. All we can do is write
books about it."
– Peter Drucker (American business guru)
______________________________________________
MARKET INDICATORS
The composite index edged up 0.1% in June, after no change
in April and a 0.1% decline in May. This marked the first increase since December
2000. The housing index posted a third straight increase in June. Housing starts
rose after vacancy rates in May touched a low for the year, while existing home
sales set a new record high in June. Household demand for big-ticket items remained
the most buoyant sector of the economy.
Retail sales advanced 0.2% in May to $24.3 billion, following
an 1.8% increase in April. Higher prices were reported for gasoline, cigarettes
and fresh fruit. Retail sales have gained since November 2000, after four consecutive
months with essentially no gains. Retail stores classified as "other" posted
a 1.5% sales increase in May. Within this sector, the group of stores that includes
hardware stores, bookstores, and lawn and garden centres saw their largest gain,
3.5%. Since the start of 2001, sales in this group regained the ground lost
in the second half of 2000. Sales by large retailers totalled $6.8 billion in
May, an 8.9% increase over May 2000. Each commodity group recorded a year-over-year
sales increase in May. The largest gains were posted for health and personal
care products, hardware, lawn and garden products, and sporting and leisure
goods.
U.S. retail sales at discount, chain and department stores
rose 1.3% during the first two retail weeks of July as demand for seasonal goods
picked up on better weather conditions and increased promotions, according to
the Redbook Retail Sales Average.
______________________________________________
PEOPLE ON THE MOVE
Philip Marinaro as been has appointed Ontario branch manager
at Roland Boulanger. Marinaro was formerly Ontario sales manager with Sauder
Moulding; he has over 11 years of industry experience. (416-819-0358)
Home Depot in Atlanta has reorganized its merchandising
unit in an effort to strengthen relations with vendors. Jerry Edwards is now
senior vice-president for merchandising; he will be responsible for merchandising
operations, reporting to CEO Bob Nardelli ... Dick Sullivan has been appointed
senior vice-president of marketing ... Wayne Gibson is now senior vice-president
of global logistics. Both Gibson and Sullivan will report to Nardelli. They
had previously reported to the former chief merchandising officer, Mark Baker,
who is leaving the company ... Bill Patterson is now president of the Northwest
division; he will report directly to Nardelli, as well. (770-433-8211)
______________________________________________
NOTED ...
With the abolition of Germany's 70-year-old law against
discounts, shoppers will finally be able to enjoy coupons, two-for-one deals
and haggling for extras. Under the old law, retailers were prevented from offering
customers discounts of more than 3% outside of traditional Summer and Winter
sales, or promotional offers such as "buy two, get one free."
______________________________________________
OVERHEARD …
"The first thing was to put the pieces in place and prove
to vendors that we’re serious. I think we’ve done that. Now we can
look for new members and move forward. We’re looking to add something from
the standpoint of hardlines."
– Andrew Battagliotti, general manager of ILDC, comments
on possible growth of SpanCan, the umbrella buying group that comprises ILDC
and Sodisco-Howden Group.
______________________________________________
* * * * 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?
http://www.noralmarketing.com/
or call 519-439-6800 ext. 201
* * * * * *
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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Reproduction in whole or in part is very uncool and strictly
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us handle your internal routing from this end!
______________________________________________
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HARDLINES
Canada’s electronic information service for the home
improvement industry
July 30, 2001
Volume vii, #32
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlines.ca
hardlines.ca <https://hardlines.ca/>
* * * * * *
IN THIS ISSUE:
* Rona reorganizes executive structure
* Harron Lumber escapes parent’s bankruptcy
* New studies refute U.S. softwood countervailing charges
* Weyerhaeuser 2Q profits take a tumble
* * * * * *
The Retail Strategies Symposium is a half-day education
seminar that will feature industry overviews from authorities 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!
* * * * * *
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 at the Four Points Sheraton
while attending either Conference, call 1-800-737-3211.
* * * * * *
INDUSTRY NEWS. EVERY DAY – Our website has daily
updates on retail and industry news that matter to you. Keep informed. Visit
hardlines.ca <https://hardlines.ca/>
. Every day.
* * * * * *
RONA REORGANIZES EXECUTIVE STRUCTURE
After its purchase of Revy Home Centres, Rona Inc. faced
the challenge of consolidating a management team that included more than 25
presidents and vice-presidents. The first casualty of the deal was Rick Blickstead,
the high-profile president and COO of Rona’s retail division, based in
Toronto.
Now, the executive team is: Jean Émond, senior vice-president,
people and culture. Both Evelyn Ross, in charge of Rona Retail’s HR, and
Sarah McLellan, human resources administrator for Lansing Buildall, will report
to Émond. Michel Robin is now interim vice-president, big box stores.
The Toronto office of Rona, including Glen French, will report to Robin for
the near term. In addition, Al Cheney, vice-president, operations at Revy’s
Surrey, BC headquarters, will report to Robin.
Executive vice-president, traditional stores, is Claude
Bernier. Reporting to him is Terry Crofford, vice-president operations and development
for Revelstoke stores, and Rob Wilbrink, now vice-president operations and development
for Lansing and Cashway. Formerly vice-president of retail operations for Lansing,
he fills in the void left by last week’s departure of John Kitchen at Lansing,
and now the departure of Jim Pybus, who had been president of Rona Cashway.
On the buying side, Marc Dufresne is executive vice-president,
purchasing and logistics. Reporting to him are: Jeff Kilgour, vice-president,
purchasing, forest products; Larry Jarvis, vice-president, building materials;
and Pierre Pelletier, vice-president, logistics and procurement.
The latest appointments are widely considered just the first
step in reorganizing the Rona organization and its four separate businesses,
namely Rona, Cashway, Lansing Buildall and Revy. Amdist the uncertainty that
future change portends, each executive vice-president is expected to develop
his own team and report to Rona president and CEO Robert Dutton sometime in
September.
______________________________________________
HARRON ESCAPES BANKRUPTCY FATE OF
PARENT COMPANY
Ownership of Harron Hardware and Building Supplies has been
placed back in the hands of the Harron family after the bankruptcy of its holding
company, Network Forest Products. Harron had been bought by Network in early
2000.
The Moorefield, ON-based store, whose 22-year-old history
includes a six-year start as a Home Hardware dealer, has been considered a viable
concern. It is now backed financially by GMAC and has been reinstated as a Castle
member in its own right. Harron’s previous membership with Castle was as
a division of Network.
Cutler Forest Products, acquired by Network in 2000, will
also go back to its original family owners.
Harron’s prospects look positive. "We are getting out
of the woods and, in fact, doing very well for the situation," says Jeff Harron,
company president. "This could be a record month in our history." Harron’s
sales in 2000 were $22.5 million, a 12.5% increase over the year before.
Harron’s viability, and its renewed membership to Castle
represents a significant strengthening of Castle’s position. Cashway’s
acquisition of six Do-it centers from Hensall District Co-op in 1999 was a big
loss for the buying group. "In one full swoop, this replaces the loss from the
Hensall business," says Dave Morton, national marketing manager for Castle.
"As well, Harron’s position is strengthened as an individual member," he
adds.
Network Forest Products is a wholly-owned subsidiary of
Value Holdings Inc., which is largely owned by the Ziner family. When Network
was put into receivership in May 2001, the board of directors of Value resigned,
with the exception of Robert Ziner, who stayed on as director of Value Holdings.
______________________________________________
NEW STUDIES IN LUMBER DISPUTE DEBUNK
U.S. ARGUMENTS
Two reports from three respected forestry industry consultants
and a leading American academic have destroyed key arguments in the U.S. countervailing
case against Canada.
"We have the definitive proof that the U.S. lumber lobby's
cry of ‘unfair subsidy’ is completely without basis," said John Allan,
President of the B.C. Lumber Trade Council.
The first report, by three forestry consulting firms in
Québec City, Vancouver and Washington, concludes that cross-border stumpage
rate comparisons are wrong legally and factually. The U.S. lumber industry,
the report says, has failed to take into account many factors that go into the
calculation of stumpage rates – regulations, taxation levels, capital and
labour costs, exchange rates and timber and client conditions, which vary widely
between Canada and the U.S.
The legal analysis submitted with the report shows that
the U.S. Department of Commerce itself considers cross-border comparisons such
as those used by the U.S. industry to be "illegal, flawed and capricious."
The second report concludes that log export restrictions
do not amount to a subsidy since price gaps observed between export and domestic
sale of logs are normal. The report emphasizes that these gaps exist in countries
with no log export restrictions, and that these restrictions long ago ceased
to have any significant effect on the price of logs in British Columbia.
This report was created by Dr. Edward E. Leamer, an international
trade expert, the Chauncey J. Medberry chair in management, a professor of Statistics,
and Economics, as well as the director of the business forecast project at UCLA.
The studies, originally commissioned by Government of British
Columbia and
the B.C. Lumber Trade Council, have been sent to the U.S.
Department of Commerce, which is examining the U.S. lumber industry's trade
complaint filed in the wake of the
Canada-US softwood lumber agreement.
______________________________________________
COMPANIES IN THE NEWS
West Fraser Timber announced second quarter results for
the period ended June 30, 2001. Sales during the quarter were $416 million,
compared with $402 million in 2000. Earnings for the first half of 2001 were
$71 million on sales of $791 million. This compares with earnings of $85 million
on sales of $796 million in the corresponding period of 2000.
Weyerhaeuser Co. reported second quarter net earnings of
US$171 million on net sales of US$3.9 billion. This compares with US$203 million
on sales of US$4.2 billion for the second quarter of 2000.
Kohler Windows and Entrance Systems has completed expansion
of its manufacturing facility in Debert, NS. The expansion adds 30,000 sq.ft.
to the facility, increasing the total size to 100,000 sq.ft.
Do It Best Corp. has announced a 30% increase in international
sales over the last year, largely due to the co-op’s addition of 20 international
stores to its roster. Locations include Mexico, Saint Lucia, Yap Island, San
Maarten, El Salvador, Costa Rica, the British Virgin Islands, Thailand and Venezuela.
Home Depot in Atlanta has launched an information campaign
throughout its more than 1,200 stores to meet rapidly growing consumer interest
in products that reduce home energy consumption. Several hundred products currently
on store shelves will be prominently marked with displays bearing a bright green
``E-plus'' logo, and carrying energy-saving information.
Two of the biggest Internet retailers retreated from their
ambitious plans to operate as stand-alone companies and said they would be folded
into the brick-and-mortar retail giants that helped get them launched in the
first place. Wal-Mart Stores is acquiring all the minority interest in Walmart.com,
which will remain a separate business unit within Wal-Mart. San Francisco-based
BlueLight.com, said its offline affiliate Kmart Co. would buy the 40% of the
company that it does not already own.
CORRECTION: Last week I referred to Allroc’s status
as an independent buying group. It was never a member of Evergreen Building
Materials, but rather a member of BID, the predecessor to Evergreen. Evergreen’s
membership comprises Castle Building Centres, Co-op Fédérée,
Delroc Industries, Federated Co-op and Irly Distributors. Combined retail sales
were $2 billion in 2000. (For a complete breakdown of buying group affiliations
in Canada, see the latest issue of Hardlines Quarterly Report! – MM)
______________________________________________
CANADIAN STOCK WATCH
| COMPANY |
52-WK HIGH |
52-WK LOW |
CLOSE (FRI) |
| Canadian Tire |
25.20 |
15.05 |
24.79 |
| Canfor |
16.95 |
7.65 |
10.60 |
| Emco |
7.50 |
2.60 |
6.50 |
| Goodfellow |
11.00 |
8.00 |
9.00 |
| Home Depot |
49.74 |
47.61 |
49.65 |
| Hudson's Bay |
17.65 |
12.40 |
17.90 |
| Lowe's |
64.90 |
34.25 |
38.90 |
| Sears Canada |
37.25 |
18.55 |
21.65 |
| Taiga Forest |
10.00 |
6.80 |
10.35 |
| West Fraser |
36.50 |
21.00 |
31.35 |
______________________________________________
"We know nothing about motivation. All we can do is write
books about it."
– Peter Drucker (American business guru)
______________________________________________
MARKET INDICATORS
The composite index edged up 0.1% in June, after no change
in April and a 0.1% decline in May. This marked the first increase since December
2000. The housing index posted a third straight increase in June. Housing starts
rose after vacancy rates in May touched a low for the year, while existing home
sales set a new record high in June. Household demand for big-ticket items remained
the most buoyant sector of the economy.
Retail sales advanced 0.2% in May to $24.3 billion, following
an 1.8% increase in April. Higher prices were reported for gasoline, cigarettes
and fresh fruit. Retail sales have gained since November 2000, after four consecutive
months with essentially no gains. Retail stores classified as "other" posted
a 1.5% sales increase in May. Within this sector, the group of stores that includes
hardware stores, bookstores, and lawn and garden centres saw their largest gain,
3.5%. Since the start of 2001, sales in this group regained the ground lost
in the second half of 2000. Sales by large retailers totalled $6.8 billion in
May, an 8.9% increase over May 2000. Each commodity group recorded a year-over-year
sales increase in May. The largest gains were posted for health and personal
care products, hardware, lawn and garden products, and sporting and leisure
goods.
U.S. retail sales at discount, chain and department stores
rose 1.3% during the first two retail weeks of July as demand for seasonal goods
picked up on better weather conditions and increased promotions, according to
the Redbook Retail Sales Average.
______________________________________________
PEOPLE ON THE MOVE
Philip Marinaro as been has appointed Ontario branch manager
at Roland Boulanger. Marinaro was formerly Ontario sales manager with Sauder
Moulding; he has over 11 years of industry experience. (416-819-0358)
Home Depot in Atlanta has reorganized its merchandising
unit in an effort to strengthen relations with vendors. Jerry Edwards is now
senior vice-president for merchandising; he will be responsible for merchandising
operations, reporting to CEO Bob Nardelli ... Dick Sullivan has been appointed
senior vice-president of marketing ... Wayne Gibson is now senior vice-president
of global logistics. Both Gibson and Sullivan will report to Nardelli. They
had previously reported to the former chief merchandising officer, Mark Baker,
who is leaving the company ... Bill Patterson is now president of the Northwest
division; he will report directly to Nardelli, as well. (770-433-8211)
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NOTED ...
With the abolition of Germany's 70-year-old law against
discounts, shoppers will finally be able to enjoy coupons, two-for-one deals
and haggling for extras. Under the old law, retailers were prevented from offering
customers discounts of more than 3% outside of traditional Summer and Winter
sales, or promotional offers such as "buy two, get one free."
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OVERHEARD …
"The first thing was to put the pieces in place and prove
to vendors that we’re serious. I think we’ve done that. Now we can
look for new members and move forward. We’re looking to add something from
the standpoint of hardlines."
– Andrew Battagliotti, general manager of ILDC, comments
on possible growth of SpanCan, the umbrella buying group that comprises ILDC
and Sodisco-Howden Group.
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* * * * 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?
http://www.noralmarketing.com/
or call 519-439-6800 ext. 201
* * * * * *
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
______________________________________________
THE HARDLINES "FAIR PLAY" POLICY:
Reproduction in whole or in part is very uncool and strictly
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