HARDLINES™
Five years serving Canada's home improvement industry
July 31, 2000 - Volume vi, #30
Michael McLarney, Editor & Publisher
Ph: 416-489-3396 Fx: 416-489-6154
E-mail: buzz@hardlinesfax.com Check out our incredible Classifieds section!* * * * * *
* IN THIS ISSUE:
* Revelstoke sees growth in its traditional stores
* Canadian housing starts expected to continue growing into 2001
* Wal-Mart may cut a deal with German competitor
* * * * * *NO HARDLINES FOR THE NEXT TWO WEEKSWe're taking our summer hiatus, so Hardlines will be published only once this month. The next issue will come out August 21, following our trip to the National Hardware Show in Chicago. However, the World Headquarters will remain open during this time, with business continuing as usual. - MichaelREVELSTOKE: MORE THAN JUST BIG BOXESIts big box stores may seem to stay in the spotlight, but Revelstoke continues to develop its traditional home centres, as well. While new locations are on hold as expansion efforts focus on Revy big boxes in the the Greater Toronto Area, the company continues to invest in existing stores under 65,000 sq.ft.A 35,000-sq.ft. site in Calgary (West Hill) has been refurbished to accommodate about 30% more inventory, for a total of 30,000 SKUs. The more traditional gondolas have been replaced by palette presentation, reflecting big box merchandising in a more upscale environment, says Terry Crofford, vice-president store operatons for Revelstoke's home centre division. "The site has a big box store look and feel and presentation," he notes. In addition, aisles have been narrowed and lighting levels improved.The Calgary store is in a mall location with a one-acre yard, a formula that has proved successful elsewhere. A mall store in Maple Ridge, BC was refurbished last fall.The 34 traditional Revelstoke stores, which serve a combination of contractors and DIYers, depending on the market, accounted for an estimated 45% of Revelstoke's $800 million in sales last year. Even though the Revelstoke stores had healthy sales in the first part of the year, the whole company suffered, starting in March, as poor weather throughout much of Canada began to take its toll. Sales for the latest quarter for the entire Revelstoke division were $21 million, about the same as last year. * * * * * * WAL-MART EYES DEAL WITH GERMAN RIVALWal-Mart Stores Inc. is considering an alliance with German rival Metro AG whereby the two retailers would exchange stakes in firms and avoid the other's business specialty, according to the German newspaper Welt am Sonntag. Under the proposed agreement, Metro would transfer its Real department store chain and Extra grocery chain to Wal-Mart, speeding up that company's expansion in Germany. Metro, in turn, would take over Wal-Mart's Sam's Club wholesale chain of some 1,000 stores, bolstering its profitable Cash & Carry division. The deal may be a result of shareholder resistance to Wal-Mart's out-and-out takeover of Metro. Three main shareholders own more than 60% of its stock. Duesseldorf-based Metro made a profit on ordinary activities of 1.35 billion DM last year on sales of 85.7 billion DM.COMPANIES IN THE NEWSRona's first big-box style store in the GTA is now slated to open in spring 2001. The store, to be located in Brampton, has been delayed from November 2000. It will be followed by a store in Mississauga.In anticipation of the fall re-opening of Eatons stores across the country, Sears is holding career fairs in Victoria, Calgary and Toronto. It intends to hire about 2,500 people over the next few weeks.Imperial Manufacturing Group made two acquisitions earlier this month. Design Krolon Ltd., a maker of aluminum columns and associated products, will fall under Imperial's Kool-Ray banner starting in 2001. The second purchase was Vancouver-based Break Thru Products Inc., a seller of pop-up vent deflectors, which will now be manufactured in Imperial's register plant.Ace Hardware Corp. in the U.S. broke ground last week on a new 778,000-sq.ft. distribution centre in Prince George, VA, about 35 km south of Richmond, according to a report in The Hard Fax. The new facility will house about US$40 million worth of inventory and serve some 325 Ace retailers in the U.S. mid-Atlantic region.Envirogard Products Ltd. has appointed J. Wright Sales Ltd. as its manufacturer's agent for Atlantic Canada, handling both the plumbing and retail channels. In Manitoba and Saskatchewan, J.L. Sales Ltd. has been appointed to handle Envirogard's wholesale plumbing market. Canwest Agencies Ltd. will handle those duties in Alberta and Barclay Sales will cover British Columbia.Distribution America, a US$3.1 billion independent distributor network, and Solutions On-Site (SOS), a web-based, customizable product selection service for the residential home building industry, have announced a strategic alliance. The SOS service helps design and building professionals guide their customers through the selection process of a full range of products for new home construction and renovation/remodelling. CANADIAN STOCK WATCH