HARDLINES
HARDLINES™
Canada’s electronic information service for
the home improvement industry
July 9, 2001
Volume vii, #28
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlines.ca
hardlines.ca <https://hardlines.ca/>
* * * * * *
IN THIS ISSUE:
* Allroc anticipates billions in U.S. sales growth
* Canadians shop patriotically — sometimes
* Wal-Mart remains #1 U.S. retailer, Home Depot hits
#3
* Wood beetle could cost B.C. forest industry billions
* Residential building permits increase
* * * * * *
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!
* * * * * *
THE HARDLINES QUARTERLY REPORT
Get the trends. The numbers. The research. The insights.
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.
The latest issue includes:
- A store-by-store analysis of big box merchandising
strategies
- Benchmarking standards of hardware and building
centre dealers
- The incredible Buying Group Org Chart ™
- Analysis of the latest housing and building statistics
GET A SHARPER FOCUS ON THE INDUSTRY. SUBSCRIBE TODAY!
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 <https://hardlines.ca/>
. Every day.
* * * * * *
ALLROC LOOKS EAST, SOUTH FOR EXPANSION
Calgary-based Allroc Building Products continues
to look to Eastern Canada for expansion opportunities. "We are kicking
lots of tires in Ontario and picked up a few members there," says Bob Hancock,
who has held the position of vice-president purchasing, sales and marketing
since March of this year.
Of its 90 members, about one-half are traditional
LBM dealers and the others are gypsum supply dealers. Nonetheless, about 80%
of the group’s volume is generated by GSD. "We’ve got a thrust
to expand our LBM and gypsum drywall base in Atlantic Canada," says Hancock.
"2001 was the beginning of a very expansionist period for Allroc, geared
to growing our LBM presence throughout Canada, while maintaining our dominance
in GSD."
Allroc has also been sniffing around Atlantic Canada,
where recent movement within the buying groups there has exposed the issue of
member liability for defaulting members. Because Allroc works strictly as a
buying group with a rebate program for its customers, the only risk from defaults
is to Allroc itself, making it, says Hancock, an appealing alternative. He expects
Allroc’s Canadian business to grow by $250 million over the next two years,
largely through the picking up traditional LBM dealers versus GSD. Sales by
all its retail members were $600 million in 2000.
But Allroc is not limiting itself to Canada: U.S.
expansion is part of its growth strategy, focussing entirely on GSD. It’s
a market Hancock is familiar with. Before taking over the vice-president role
in March, he ran Allroc’s retail GSD chain, Winroc, in the U.S. And with
the appointment of a new vice-president and general manager in the U.S. (see
"People on the move"), Hancock says the U.S. business can grow to
US$1 billion over the next two years.
_____________________________________________
BEETLE ADDS TO LUMBER WOES IN BRITISH COLUMBIA
A massive infestation of beetles in 7 million hectares
of B.C. forest could severely affect industry bottom lines. More than $4 billion
worth of timber may be cut in a measure to control damages. Analysts say the
threat that so much wood could suddenly become available for sale is likely
to put pressure on lumber prices.
"This is an
immense problem because of the magnitude of the infestation," said Greg
Jadrzyk, president of the Northern Forest Products Association (NFPA), which
represents about 55 operations in central B.C.
Industry officials are concerned that the tiny black
beetle will affect producer profits by increasing production costs. They fear
that Japanese buyers will shy away from wood that has an ink-like blue stain
caused by the beetle. Companies with large holdings in the affected area include
Canfor Co., Slocan Forest Products Ltd., Weldwood of Canada Ltd., West Fraser
Timber Co. Ltd., Ainsworth Lumber Co. and Lignum Ltd.
NFPA has asked the B.C. government to streamline
harvesting regulations, allowing companies to react quickly to the situation
by harvesting trees in areas where it is deemed necessary.
______________________________________________
CANADIAN CONSUMERS WILL SHOP CANADIAN ... SOMETIMES
Canadian consumers feel that home-grown retailers
do a better job than their U.S. competitors, but not by a huge margin. Of those
surveyed, 36% disagreed that U.S. retailers do a better job than their Canadian
counterparts, while 23% agreed and 41% were neutral on the issue. Vancouverites,
the report says, favoured U.S. retailers, while Montréalers were most
likely to support Canadian retailers.
These results appeared in Major Market Research Report
2001, a consumer survey conducted by Kubas Consultants in Toronto.
In line with this support of home-grown business,
Canadian Tire continues to be the most shopped retailer. It attracts over 90%
of consumers over a one-year period partly as a result of its large coverage
of the market. Rounding out the top stores are Zellers, Shoppers Drug Mart,
Sears, The Bay and Wal-Mart.
Kubas Consultants is expecting $289.6 billion in
retail sales for 2001. This 4.5% gain compares with the 6.4% growth recorded
in 2000. Projected retail spending across the country registers positive expectations.
All of the major city centres surveyed had high percentages of respondents who
expect to increase their spending in retail stores this year.
Consumer confidence is sharply down: the number of
respondents saying that things are getting better is at its lowest in the survey’s
five-year-long history. Personal economic circumstances, however, are improving
for approximately 40% of consumers surveyed.
__________________________________________________
COMPANIES IN THE NEWS
Richelieu Hardware has announced a two-for-one split
of its outstanding common shares, effective July 20, 2001. The specialty hardware
distributor, which sells to both furniture/kitchen cabinet manufacturers and
hardware retailers, has been growing aggressively through expansion in recent
years.
Tim-BR-Marts Ltd. and LBMX have formed a partnership
to develop a private, web-based trading community for the exchange of electronic
documents between the Tim-BR-Marts head office and its trading partners. The
program will be implemented in two phases, starting with the exchange of electronic
invoices from suppliers to the Tim-BR-Marts head office. In the second phase,
dealers will be able to issue electronic P.O.s directly to suppliers.
Wal-Mart Stores Inc. has held on to its position
as the largest retailer in the U.S., according to a new poll. Food retailer
Kroger stayed in the number-two spot, while Home Depot jumped to number three,
beating out Sears, Roebuck and Co.
Do it Best Corp. has entered into an exclusive partnership
with MRM Inc. to give Do it Best members access to products within MRM’s
Floor To Ceiling franchise. This includes an expanded selection of home décor
products such as flooring, kitchen cabinets, bath vanities, wall coverings,
and other products from major, national-brand manufacturers.
Bowater Inc. and Alliance Forest Products Inc. have
received requests for additional information in connection with the announced
acquisition of Alliance by Bowater. The companies still expect to complete the
transaction within 30 days after compliance of the request.
Canada's Trade Ministry filed 250,000 pages of evidence
last week in the U.S. countervailing duty case against the Canadian softwood
lumber industry. Canada wants free trade in softwood lumber, used mainly in
home building, where annual exports reach about $10 billion. Ottawa accuses
the United States of protectionism in trying to prevent the free flow of wood
under the North American Free Trade Agreement.
Lowe's Cos. has added the full line of Amana appliances
to its appliance department. Nearly 700 Lowe’s stores will begin carrying
the Amana products as part of the retailer's aggressive strategy to expand in
this high-growth area and establish a "house of brands" in appliances.
USG Co. has filed for protection under Chapter 11
as a route to solve its asbestos-related litigation. USG has paid out more than
US$450 million to claimants of personal-injury lawsuits, and expects to pay
out another US$275 million in 2001. The company’s subsidiaries, United
States Gypsum, USG Interior and L&W Supply also filed for protection. USG’s
international operations, including CGC Inc., were not included in the filing.
No impact is expected on Canadian operations.
Mexican conglomerate Grupo Alfa has closed the sale
of its retail unit, Total Home, to Home Depot Inc. Total Home is the second
largest DIY chain in Mexico, with three stores in the northern industrial city
of Monterrey and one in Mexico City.
____________________________________________
CANADIAN STOCK WATCH
| COMPANY |
52-WK HIGH |
52-WK LOW |
CLOSE (FRI) |
| Canadian Tire |
25.20 |
15.05 |
25.39 |
| Canfor |
16.95 |
7.65 |
9.90 |
| Goodfellow |
11.00 |
8.00 |
8.95 |
| Home Depot |
49.74 |
47.61 |
45.36 |
| Hudson's Bay |
17.65 |
12.40 |
17.40 |
| Lowe's |
64.90 |
34.25 |
34.60 |
| Sears Canada |
37.25 |
18.55 |
21.80 |
| Taiga Forest |
10.00 |
6.80 |
9.12 |
| West Fraser |
36.50 |
21.00 |
34.80 |
______________________________________________
"Nothing shames
the human more persistently and eloquently than nature."
— Jonathan
Raban (British writer)
_______________________________________________
MARKET INDICATORS
The value of building permits issued by Canadian
municipalities declined in May to $3.2 billion, says Statistics Canada. This
represents a 0.6% reduction against April due to a drop in building intentions
in the non-residential sector. May's slide of 10.6% in the value of non-residential
building permits followed a strong advance in April. Industrial construction
intentions dropped for the fourth month in a row in May. Building permits for
housing rose 9.4% from April to $1.7 billion, halting three consecutive monthly
declines.
Statistics Canada has reported unchanged department
store sales of $1.64 billion over the April-May period. May's result follow
two successive months of increases, 0.6% in April and 0.4% in March. The upward
movement that began in the Spring of 2000 has continued despite stable sales
in May. Average department store sales per location totalled $2.24 million.
U.S. consumer sentiment rose for a second straight
month in June. The University of Michigan's consumer sentiment index rose to
92.6 in June from 92.0 in May. The June reading was far above the recent trough
of 90.6 scored in February, its lowest in nearly five years. The preliminary
June reading, released mid-month, was 91.6.
______________________________________________
PEOPLE ON THE MOVE
Pete Welly has been named vice-president for the
North American acoustical business at Allroc Building Products Ltd. and regional
operations manager for the mountain states region. He is located in Salt Lake
City, UT. (403-236-5388)
Don Hoye, president and CEO of TruServ Corp., has
been asked to step down, effective immediately. The company has been dogged
by troubles since it merged with ServiStar in 1997. Accounting errors as a result
of the merger left the co-op with US$130.8 million
net loss in fiscal 1999. Bill Blagg, a dealer from Texas and chairman of the
TruServ board, has stepped in temporarily as acting CEO. (773-695-5000)
At its annual general meeting this week, MAAX Inc. announced the appointment
of André Heroux as president and CEO. Heroux joined MAAX in 1999 as vice-president
and general manager, operations, and was soon after appointed president and
COO. (418-387-4155)
______________________________________________
OVERHEARD …
… "We have no plans to ally ourselves with
anybody else. We haven’t missed a beat."
— Bob Hancock,
vice-president purchasing, sales and marketing for Allroc Building Products,
on his buying group’s departure from the umbrella group, Evergreen Building
Materials, more than three years ago.
… "I feel Don Hoye's personal financial
statement should be made available to the membership. I also feel a re-election
of a new board of directors would clear up some troubled waters. Don't let Don
Hoye resign without a full and complete accounting of himself. I hope [TruServ
Corp.] can bring in someone with vision and concern for the dealers. They make
the whole thing work. Ask John Cotter, he knew. P.S.: Don should make good on
all the outstanding stock payments before he skips down the yellow brick road."
— rant from an online chat room for TruServ dealers, where the hot topic
last week was griping about their exiting CEO.
* * * * * *
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?
http://www.noralmarketing.com/
or call 519-439-6800 ext. 201
* * * * * *
BUSINESS DEVELOPMENT ASSOCIATE:
The Canadian Retail Hardware Association, producer
of the Toronto-based Canadian Hardware and Building Materials Show, seeks to
add a Sales overachiever to the Association’s team.
Reporting to the Show Manager, you will analyze,
develop and implement sales strategies aimed at securing new Exhibitors. This
will involve both in-office duties and face to face Customer presentations with
senior industry decision-makers. Travelling to regional shows and to the Chicago
NHS show will augment idea development and lead generation. You’ll also
act as a team member at the CHS, ensuring Exhibitor satisfaction.
Your background includes a home improvement industry
sales role where your team-based activities have gained you success and respect
from your colleagues. Developing and securing new business and the resultant
benefits attached to over-achievement are your personal motivators.
Bilingualism would also be a definite asset.
Please contact, in confidence, Wolf Gugler, quoting
file #02-103. Wolf Gugler & Associates Limited, 1370 Don Mills Road, Suite
300, Don Mills, Ontario M3B 3N7. Phone: (416) 386-1719; fax: (416) 386-1721;
email: admin@wolfgugler.com
* * * * * *
BUILDING MATERIALS REPRESENTATIVE:
Can-Save, a building materials distributor based
in Barrie, ON is looking for a building material representative to call on all
lumber and building materials retailers in the GTA and Niagara peninsula.
Experience is an asset. Contact Larry Koza or Dan
Clements, phone: 800-461-5411; fax: 705-722-1124; email: lkoza@can-save.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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Reproduction in whole or in part is very uncool and
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Call for information on multiple subscriptions or a site license for your company.
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______________________________________________
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HARDLINES™
Canada’s electronic information service for
the home improvement industry
July 9, 2001
Volume vii, #28
Michael McLarney, Editor & Publisher
Phone: 416.489.3396
Fax: 416.489.6154
email: mike@hardlines.ca
hardlines.ca <https://hardlines.ca/>
* * * * * *
IN THIS ISSUE:
* Allroc anticipates billions in U.S. sales growth
* Canadians shop patriotically — sometimes
* Wal-Mart remains #1 U.S. retailer, Home Depot hits
#3
* Wood beetle could cost B.C. forest industry billions
* Residential building permits increase
* * * * * *
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!
* * * * * *
THE HARDLINES QUARTERLY REPORT
Get the trends. The numbers. The research. The insights.
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.
The latest issue includes:
- A store-by-store analysis of big box merchandising
strategies
- Benchmarking standards of hardware and building
centre dealers
- The incredible Buying Group Org Chart ™
- Analysis of the latest housing and building statistics
GET A SHARPER FOCUS ON THE INDUSTRY. SUBSCRIBE TODAY!
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 <https://hardlines.ca/>
. Every day.
* * * * * *
ALLROC LOOKS EAST, SOUTH FOR EXPANSION
Calgary-based Allroc Building Products continues
to look to Eastern Canada for expansion opportunities. "We are kicking
lots of tires in Ontario and picked up a few members there," says Bob Hancock,
who has held the position of vice-president purchasing, sales and marketing
since March of this year.
Of its 90 members, about one-half are traditional
LBM dealers and the others are gypsum supply dealers. Nonetheless, about 80%
of the group’s volume is generated by GSD. "We’ve got a thrust
to expand our LBM and gypsum drywall base in Atlantic Canada," says Hancock.
"2001 was the beginning of a very expansionist period for Allroc, geared
to growing our LBM presence throughout Canada, while maintaining our dominance
in GSD."
Allroc has also been sniffing around Atlantic Canada,
where recent movement within the buying groups there has exposed the issue of
member liability for defaulting members. Because Allroc works strictly as a
buying group with a rebate program for its customers, the only risk from defaults
is to Allroc itself, making it, says Hancock, an appealing alternative. He expects
Allroc’s Canadian business to grow by $250 million over the next two years,
largely through the picking up traditional LBM dealers versus GSD. Sales by
all its retail members were $600 million in 2000.
But Allroc is not limiting itself to Canada: U.S.
expansion is part of its growth strategy, focussing entirely on GSD. It’s
a market Hancock is familiar with. Before taking over the vice-president role
in March, he ran Allroc’s retail GSD chain, Winroc, in the U.S. And with
the appointment of a new vice-president and general manager in the U.S. (see
"People on the move"), Hancock says the U.S. business can grow to
US$1 billion over the next two years.
_____________________________________________
BEETLE ADDS TO LUMBER WOES IN BRITISH COLUMBIA
A massive infestation of beetles in 7 million hectares
of B.C. forest could severely affect industry bottom lines. More than $4 billion
worth of timber may be cut in a measure to control damages. Analysts say the
threat that so much wood could suddenly become available for sale is likely
to put pressure on lumber prices.
"This is an
immense problem because of the magnitude of the infestation," said Greg
Jadrzyk, president of the Northern Forest Products Association (NFPA), which
represents about 55 operations in central B.C.
Industry officials are concerned that the tiny black
beetle will affect producer profits by increasing production costs. They fear
that Japanese buyers will shy away from wood that has an ink-like blue stain
caused by the beetle. Companies with large holdings in the affected area include
Canfor Co., Slocan Forest Products Ltd., Weldwood of Canada Ltd., West Fraser
Timber Co. Ltd., Ainsworth Lumber Co. and Lignum Ltd.
NFPA has asked the B.C. government to streamline
harvesting regulations, allowing companies to react quickly to the situation
by harvesting trees in areas where it is deemed necessary.
______________________________________________
CANADIAN CONSUMERS WILL SHOP CANADIAN ... SOMETIMES
Canadian consumers feel that home-grown retailers
do a better job than their U.S. competitors, but not by a huge margin. Of those
surveyed, 36% disagreed that U.S. retailers do a better job than their Canadian
counterparts, while 23% agreed and 41% were neutral on the issue. Vancouverites,
the report says, favoured U.S. retailers, while Montréalers were most
likely to support Canadian retailers.
These results appeared in Major Market Research Report
2001, a consumer survey conducted by Kubas Consultants in Toronto.
In line with this support of home-grown business,
Canadian Tire continues to be the most shopped retailer. It attracts over 90%
of consumers over a one-year period partly as a result of its large coverage
of the market. Rounding out the top stores are Zellers, Shoppers Drug Mart,
Sears, The Bay and Wal-Mart.
Kubas Consultants is expecting $289.6 billion in
retail sales for 2001. This 4.5% gain compares with the 6.4% growth recorded
in 2000. Projected retail spending across the country registers positive expectations.
All of the major city centres surveyed had high percentages of respondents who
expect to increase their spending in retail stores this year.
Consumer confidence is sharply down: the number of
respondents saying that things are getting better is at its lowest in the survey’s
five-year-long history. Personal economic circumstances, however, are improving
for approximately 40% of consumers surveyed.
__________________________________________________
COMPANIES IN THE NEWS
Richelieu Hardware has announced a two-for-one split
of its outstanding common shares, effective July 20, 2001. The specialty hardware
distributor, which sells to both furniture/kitchen cabinet manufacturers and
hardware retailers, has been growing aggressively through expansion in recent
years.
Tim-BR-Marts Ltd. and LBMX have formed a partnership
to develop a private, web-based trading community for the exchange of electronic
documents between the Tim-BR-Marts head office and its trading partners. The
program will be implemented in two phases, starting with the exchange of electronic
invoices from suppliers to the Tim-BR-Marts head office. In the second phase,
dealers will be able to issue electronic P.O.s directly to suppliers.
Wal-Mart Stores Inc. has held on to its position
as the largest retailer in the U.S., according to a new poll. Food retailer
Kroger stayed in the number-two spot, while Home Depot jumped to number three,
beating out Sears, Roebuck and Co.
Do it Best Corp. has entered into an exclusive partnership
with MRM Inc. to give Do it Best members access to products within MRM’s
Floor To Ceiling franchise. This includes an expanded selection of home décor
products such as flooring, kitchen cabinets, bath vanities, wall coverings,
and other products from major, national-brand manufacturers.
Bowater Inc. and Alliance Forest Products Inc. have
received requests for additional information in connection with the announced
acquisition of Alliance by Bowater. The companies still expect to complete the
transaction within 30 days after compliance of the request.
Canada's Trade Ministry filed 250,000 pages of evidence
last week in the U.S. countervailing duty case against the Canadian softwood
lumber industry. Canada wants free trade in softwood lumber, used mainly in
home building, where annual exports reach about $10 billion. Ottawa accuses
the United States of protectionism in trying to prevent the free flow of wood
under the North American Free Trade Agreement.
Lowe's Cos. has added the full line of Amana appliances
to its appliance department. Nearly 700 Lowe’s stores will begin carrying
the Amana products as part of the retailer's aggressive strategy to expand in
this high-growth area and establish a "house of brands" in appliances.
USG Co. has filed for protection under Chapter 11
as a route to solve its asbestos-related litigation. USG has paid out more than
US$450 million to claimants of personal-injury lawsuits, and expects to pay
out another US$275 million in 2001. The company’s subsidiaries, United
States Gypsum, USG Interior and L&W Supply also filed for protection. USG’s
international operations, including CGC Inc., were not included in the filing.
No impact is expected on Canadian operations.
Mexican conglomerate Grupo Alfa has closed the sale
of its retail unit, Total Home, to Home Depot Inc. Total Home is the second
largest DIY chain in Mexico, with three stores in the northern industrial city
of Monterrey and one in Mexico City.
____________________________________________
CANADIAN STOCK WATCH
| COMPANY |
52-WK HIGH |
52-WK LOW |
CLOSE (FRI) |
| Canadian Tire |
25.20 |
15.05 |
25.39 |
| Canfor |
16.95 |
7.65 |
9.90 |
| Goodfellow |
11.00 |
8.00 |
8.95 |
| Home Depot |
49.74 |
47.61 |
45.36 |
| Hudson's Bay |
17.65 |
12.40 |
17.40 |
| Lowe's |
64.90 |
34.25 |
34.60 |
| Sears Canada |
37.25 |
18.55 |
21.80 |
| Taiga Forest |
10.00 |
6.80 |
9.12 |
| West Fraser |
36.50 |
21.00 |
34.80 |
______________________________________________
"Nothing shames
the human more persistently and eloquently than nature."
— Jonathan
Raban (British writer)
_______________________________________________
MARKET INDICATORS
The value of building permits issued by Canadian
municipalities declined in May to $3.2 billion, says Statistics Canada. This
represents a 0.6% reduction against April due to a drop in building intentions
in the non-residential sector. May's slide of 10.6% in the value of non-residential
building permits followed a strong advance in April. Industrial construction
intentions dropped for the fourth month in a row in May. Building permits for
housing rose 9.4% from April to $1.7 billion, halting three consecutive monthly
declines.
Statistics Canada has reported unchanged department
store sales of $1.64 billion over the April-May period. May's result follow
two successive months of increases, 0.6% in April and 0.4% in March. The upward
movement that began in the Spring of 2000 has continued despite stable sales
in May. Average department store sales per location totalled $2.24 million.
U.S. consumer sentiment rose for a second straight
month in June. The University of Michigan's consumer sentiment index rose to
92.6 in June from 92.0 in May. The June reading was far above the recent trough
of 90.6 scored in February, its lowest in nearly five years. The preliminary
June reading, released mid-month, was 91.6.
______________________________________________
PEOPLE ON THE MOVE
Pete Welly has been named vice-president for the
North American acoustical business at Allroc Building Products Ltd. and regional
operations manager for the mountain states region. He is located in Salt Lake
City, UT. (403-236-5388)
Don Hoye, president and CEO of TruServ Corp., has
been asked to step down, effective immediately. The company has been dogged
by troubles since it merged with ServiStar in 1997. Accounting errors as a result
of the merger left the co-op with US$130.8 million
net loss in fiscal 1999. Bill Blagg, a dealer from Texas and chairman of the
TruServ board, has stepped in temporarily as acting CEO. (773-695-5000)
At its annual general meeting this week, MAAX Inc. announced the appointment
of André Heroux as president and CEO. Heroux joined MAAX in 1999 as vice-president
and general manager, operations, and was soon after appointed president and
COO. (418-387-4155)
______________________________________________
OVERHEARD …
… "We have no plans to ally ourselves with
anybody else. We haven’t missed a beat."
— Bob Hancock,
vice-president purchasing, sales and marketing for Allroc Building Products,
on his buying group’s departure from the umbrella group, Evergreen Building
Materials, more than three years ago.
… "I feel Don Hoye's personal financial
statement should be made available to the membership. I also feel a re-election
of a new board of directors would clear up some troubled waters. Don't let Don
Hoye resign without a full and complete accounting of himself. I hope [TruServ
Corp.] can bring in someone with vision and concern for the dealers. They make
the whole thing work. Ask John Cotter, he knew. P.S.: Don should make good on
all the outstanding stock payments before he skips down the yellow brick road."
— rant from an online chat room for TruServ dealers, where the hot topic
last week was griping about their exiting CEO.
* * * * * *
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
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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?
http://www.noralmarketing.com/
or call 519-439-6800 ext. 201
* * * * * *
BUSINESS DEVELOPMENT ASSOCIATE:
The Canadian Retail Hardware Association, producer
of the Toronto-based Canadian Hardware and Building Materials Show, seeks to
add a Sales overachiever to the Association’s team.
Reporting to the Show Manager, you will analyze,
develop and implement sales strategies aimed at securing new Exhibitors. This
will involve both in-office duties and face to face Customer presentations with
senior industry decision-makers. Travelling to regional shows and to the Chicago
NHS show will augment idea development and lead generation. You’ll also
act as a team member at the CHS, ensuring Exhibitor satisfaction.
Your background includes a home improvement industry
sales role where your team-based activities have gained you success and respect
from your colleagues. Developing and securing new business and the resultant
benefits attached to over-achievement are your personal motivators.
Bilingualism would also be a definite asset.
Please contact, in confidence, Wolf Gugler, quoting
file #02-103. Wolf Gugler & Associates Limited, 1370 Don Mills Road, Suite
300, Don Mills, Ontario M3B 3N7. Phone: (416) 386-1719; fax: (416) 386-1721;
email: admin@wolfgugler.com
* * * * * *
BUILDING MATERIALS REPRESENTATIVE:
Can-Save, a building materials distributor based
in Barrie, ON is looking for a building material representative to call on all
lumber and building materials retailers in the GTA and Niagara peninsula.
Experience is an asset. Contact Larry Koza or Dan
Clements, phone: 800-461-5411; fax: 705-722-1124; email: lkoza@can-save.com
______________________________________________
THE HARDLINES MARKETPLACE: just $16 per line.
A classified ad with Hardlines is the most direct
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Over 3,000 executives in the industry come in contact
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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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